Report of Foreign Issuer (6-k)

Date : 08/20/2019 @ 2:04PM
Source : Edgar (US Regulatory)
Stock : Harmony Gold Mining Company Limited (HMY)
Quote : 3.36  0.09 (2.75%) @ 12:44AM
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Last Trade
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Report of Foreign Issuer (6-k)

 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6­K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a­16 OR 15d­16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For August 20, 2019

Harmony Gold Mining Company Limited

Randfontein Office Park
Corner Main Reef Road and Ward Avenue Randfontein, 1759
South Africa
(Address of principal executive offices)
*-­
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20­ F or Form 40­F.)

Form 20F ☒ Form 40F ☐

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3­2(b) under the Securities Exchange Act of 1934.)

Yes ☐ No ☒


 




FY19 RESULTS
FOR THE YEAR ENDED 30 JUNE 2019
Harmony Gold Mining Company Limited
(“Harmony” or “company”)
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
FY19 KEY FEATURES
17% increase in gold production to 1.438Moz, resulting in a 23% increase in production profit
2% increase in underground recovered grade to 5.59g/t
Moab Khotsong and Hidden Valley boost cash flow – generated R1 375 million (US$97 million) in operating free cash flow
Successful hedging strategy topped up – secured cash flow margins, contributing R477million (US$34 million) to cash flow
19% increase in headline earnings per share to 204 SA cents (8% increase to 14 US cents)
OPERATING RESULTS
 
Year ended
June 2019

Year ended
June 2018

%
Change

Gold produced
kg
44 734

38 193

17

oz
1 438 231

1 227 934

17

Underground grade
g/t
5.59

5.48

2

Gold price received
R/kg
586 653

570 709

3

US$/oz
1 287

1 380

(7
)
Cash operating costs
R/kg
439 722

421 260

(4
)
US$/oz
965

1 018

5

Total costs and capital¹
R/kg
544 487

499 028

(9
)
US$/oz
1 194

1 207

1

All-in sustaining costs²
R/kg
550 005

508 970

(8
)
US$/oz
1 207

1 231

2

Production profit
R million
6 588

5 356

23

US$ million
465

416

12

Exchange rate
R/US$
14.18

12.85

10

¹ FY18 excludes investment capital for Hidden Valley
² Excludes share-based payment charge
FINANCIAL RESULTS
 
Year ended
June 2019

Year ended
June 2018

%
Change

Basic loss per share
SA cents
(498
)
(1 003
)
50

US cents
(35
)
(72
)
51

Headline earnings
R million
1 067

763

40

US$ million
75

58

29

Headline earnings per share
SA cents
204

171

19

US cents
14

13

8

HARMONY'S ANNUAL REPORTS
Harmony’s Integrated Annual Report and its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for the financial year ended 30 June 2019 will be available on our website (www.harmony.co.za/invest) on 24 October 2019. Mineral resource and reserve information as at 30 June 2019 is included in this report.



SHAREHOLDER INFORMATION
Issued ordinary share capital at 30 June 2019
539 841 195

Issued ordinary share capital at 30 June 2018
500 251 751

MARKET CAPITALISATION
At 30 June 2019 (ZARm)
17 135

At 30 June 2019 (US$m)
1 215

At 30 June 2018 (ZARm)
10 615

At 30 June 2018 (US$m)
774

HARMONY ORDINARY SHARES AND ADR PRICES
12-month high (1 July 2018 – 30 June 2019) for ordinary shares
R32.06

12-month low (1 July 2018 – 30 June 2019) for ordinary shares
R20.63

12-month high (1 July 2018 – 30 June 2019) for ADRs
US$2.27

12-month low (1 July 2018 – 30 June 2019) for ADRs
US$1.44

FREE FLOAT
100%

 
 
ADR RATIO
1:1

 
 
JSE LIMITED
HAR

Range for year (1 July 2018 – 30 June 2019 closing prices)
R21.14 – R31.74

Average daily volume for the year (1 July 2018 – 30 June 2019)
1 954 268 shares

Range for previous year (1 July 2017 – 30 June 2018 closing prices)
R19.24 – R28.80

Average daily volume for the previous year (1 July 2017 – 30 June 2018)
1 678 662 shares

NEW YORK STOCK EXCHANGE
HMY

Range for year (1 July 2018 – 30 June 2019 closing prices)
US$1.62 – US$2.27

Average daily volume for the year (1 July 2018 – 30 June 2019)
3 715 154

Range for previous year (1 July 2017 – 30 June 2018 closing prices)
US$1.52 – US$2.50

Average daily volume for the previous year (1 July 2017 – 30 June 2018)
3 933 313

INVESTORS' CALENDAR
Release of Harmony’s FY19 Integrated Annual Report
24 October 2019

Annual General Meeting
22 November 2019





DIRECTORATE AND ADMINISTRATION
CORPORATE OFFICE
Randfontein Office Park
Po Box 2, Randfontein 1760, South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: www.harmony.co.za
DIRECTORS
PT Motsepe* (chairman)
M Msimang*^ (lead independent director)
JM Motlaba*^ (deputy chairman)
PW Steenkamp (chief executive officer)
F Abbott (financial director)
JA Chissano*1^, FFT De Buck*^, KV Dicks*^, Dr DSS Lushaba*^
HE Mashego**, HG Motau*^, KT Nondumo*^, VP Pillay*^
GR Sibiya*^, MV Sisulu*^, JL Wetton*^, AJ Wilkens*
* Non-executive
** Executive
^ Independent
1 Mozambican
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Mobile: +27 82 759 1775
Telephone: +27 11 411 2314
Website: www.harmony.co.za
COMPANY SECRETARIAT
Telephone: +27 11 411 6020
E-mail: companysecretariat@harmony.co.za
TRANSFER SECRETARIES
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, Ameshoff Street, Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: 0861 546 572
E-mail: info@linkmarketservices.co.za
Fax: +27 86 674 4381
ADR* DEPOSITARY
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries: db@amstock.com
Toll free (within US): +1-886-249-2593
Int: +1-718-921-8124
Fax: +1-718-921-8334
*ADR: American Depositary Receipts
SPONSOR
JP Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
TRADING SYMBOLS
JSE Limited: HAR
New York Stock Exchange, Inc.: HMY
REGISTRATION NUMBER
1950/038232/06
Incorporated in the Republic of South Africa
ISIN
ZAE 000015228




FORWARD LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), with respect to our financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues, and the potential benefit of acquisitions (including statements regarding growth and cost savings) wherever they may occur in this report and the exhibits, are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward looking statements should be considered in light of various important factors, including those set forth in this report. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: overall economic and business conditions in South Africa, Papua New Guinea, Australia and elsewhere; estimates of future earnings, and the sensitivity of earnings to gold and other metals prices; estimates of future gold and other metals production and sales; estimates of future cash costs; estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices; estimates of provision for silicosis settlement; statements regarding future debt repayments; estimates of future capital expenditures; the success of our business strategy, exploration and development activities and other initiatives; future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings and financing plans; estimates of reserves statements regarding future exploration results and the replacement of reserves; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as well as at existing operations; fluctuations in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labor disruptions related to industrial action or health and safety incidents; power cost increases as well as power stoppages, fluctuations and usage constraints; supply chain shortages and increases in the prices of production imports and the availability, terms and deployment of capital; our ability to hire and retain senior management, sufficiently technically-skilled employees, as well as our ability to achieve sufficient representation of historically disadvantaged HDSAs in management positions; our ability to comply with requirements that we operate in a sustainable manner and provide benefits to affected communities; potential liabilities related to occupational health diseases; changes in government regulation and the political environment, particularly tax and royalties, mining rights, health and safety, environmental regulation and business ownership including any interpretation thereof; court decisions affecting the South African mining industry, including, without limitation, regarding the interpretation of mining rights; our ability to protect our information technology and communication systems and the personal data we retain; risks related to the failure of internal controls; the outcome of pending or future litigation or regulatory proceedings; fluctuations in exchange rates any further downgrade of South Africa's credit rating; and currency devaluations and other macroeconomic monetary policies; the adequacy of the Group’s insurance coverage; and socio-economic or political instability in South Africa, Papua New Guinea, Australia and other countries in which we operate.
For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the Company’s latest Integrated Annual Report and Form 20-F which is on file with the Securities and Exchange Commission, as well as the Company’s other Securities and Exchange Commission filings. The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law. The foregoing factors and others described under “Risk Factors” should not be construed as exhaustive.




COMPETENT PERSON'S DECLARATION
In South Africa, Harmony employs an ore reserve manager at each of its operations who takes responsibility for the compilation and reporting of mineral resources and mineral reserves at their operations. In Papua New Guinea, competent persons are appointed for the mineral resources and mineral reserves for specific projects and operations.
The mineral resources and mineral reserves in this report are based on information compiled by the following competent persons:
Resources and reserves of South Africa:
Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA, who has 24 years’ relevant experience and is registered with the South African Council for Natural Scientific Professions (SACNASP), a member of the South African Institute of Mining and Metallurgy (SAIMM) and a member of the Geological Society of South Africa (GSSA).
Mr Boshoff is Harmony's Lead Competent Person.
Jaco Boshoff
 
Physical address:
Postal address:
Randfontein Office Park
Corner of Main Reef Road and Ward Avenue
Randfontein
South Africa
PO Box 2
Randfontein
1760
South Africa
Resources and reserves of Papua New Guinea:
Gregory Job, BSc, MSc, who has 31 years’ relevant experience and is a member of the Australian Institute of Mining and Metallurgy (AusIMM).
Greg Job
 
Physical address:
Postal address:
Level 2
189 Coronation Drive
Milton, Queensland 4064
Australia
PO Box 1562
Milton, Queensland
4064
Australia
Both these competent persons, who are full-time employees of Harmony Gold Mining Company Limited, consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.




CONTENTS
PAGE
Shareholder information and contact details
Competent person's declaration
Message from the chief executive officer
Summary update of Harmony's mineral resources and mineral reserves
Operating results – year on year (Rand/Metric)
12
Operating results – year on year (US$/Imperial)
Condensed consolidated income statements (Rand)
Condensed consolidated statements of comprehensive income (Rand)
Condensed consolidated statement of changes in equity (Rand)
Condensed consolidated balance sheets (Rand)
Condensed consolidated cash flow statements (Rand)
Notes to the condensed consolidated financial statements
Segment report (Rand/Metric)
Condensed consolidated income statements (US$)
Condensed consolidated statements of comprehensive income (US$)
Condensed consolidated statement of changes in equity (US$)
Condensed consolidated balance sheets (US$)
Condensed consolidated cash flow statements (US$)
Segment report (US$/Imperial)
Development results – Metric and Imperial




MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
SAFETY
Having tragically lost 11 employees in FY19, I wish to extend my personal, heartfelt condolences to their families, colleagues and friends at the outset of my message to Harmony’s shareholders. Safety is my number one value and also that of Harmony.
Together with each and every employee, my aim is to ensure safe production, by preventing fatalities and embedding a safety culture. It is important that every employee returns home each day – both safe and healthy.
Harmony has set out the following strategic priorities in order to achieve a safe working place by focusing on leadership, risk management and people:
Passionate and active leadership
Effective risk and critical control management
Effective safety management systems
Ongoing organisational learning
A proactive safety culture and an engaged workforce
Harmony embarked on its safety improvement journey in FY16 in order to align with global best practice and move towards a pro-active and risk based approach. Harmony has subsequently adopted a four-layered risk management safety approach, rolled out the associated safety training, implemented new safety systems and have put in place a secondary level safety assurance team. Our safety improvement journey is continuous and will consistently entrench safe behaviour.
We have seen improvements in FY19. Harmony's group lost time injury frequency rate improved to 6.12 (6.26 in FY18) and the group fatality injury frequency rate improved to 0.12 (0.16 in FY18) (frequency rates are per 1 000 000 hours worked).
YEAR-ON-YEAR OPERATIONAL RESULTS
In line with our strategy to produce safe, profitable ounces and increasing margins through operational excellence and value accretive acquisitions, both annual gold production and cash flows were boosted by the inclusion of a full year of production from Moab Khotsong and Hidden Valley respectively.
The group achieved a 17% increase in gold production at 1.44 million ounces, in line with annual production guidance of 1.45 million ounces. Underground recovered grade increased by 2% to 5.59g/t, the seventh consecutive year of increasing grade.
The performance from our operations is summarised below:
Moab Khotsong: the first full financial year inclusion of Moab Khotsong in our portfolio resulted in gold production of 7 928kg (254 891oz), achieving a recovered grade of 8.17g/t. We are confident that the operation will improve its grade performance in FY20;
Hidden Valley: safety, good operational momentum and disciplined cost management contributed to Hidden Valley achieving gold production of 6 222kg (200 042oz) and generating operational free cash flow of R573 million (US$40 million) (at a margin of 16%). Stripping of the cutbacks will continue for the next two and a half years, to deliver an average life of mine all-in sustaining cost of below US$950/oz;
Kusasalethu: gold production increased by 13% to 4 989kg (160 400oz), as a result of an 11% increase in tonnes milled to 742 000t and a 2% increase in recovered grade to 6.72g/t. The operation has been free cash flow positive for the past three financial years, generating operating free cash flow of R283 million in FY19, a more than 100% increase year on year;
Unisel: operational free cash flow increased by more than 100% to R99 million ( more than a 100% to US$7 million) as a result of the 39% increase in recovered grade to 4.73g/t. Gold production decreased by 5% to 1 212kg (38 966oz), following the successful restructuring of the operation in the second half of FY18 where mining is focused on targeted high grade areas of the shaft pillar;
Waste rock dumps: gold production increased by 40%, as a result of a 53% increase in tonnes milled to 4 307 000t. Higher production is mainly due to the treatment of a full financial year of the Moab Khotsong waste rock dumps and increased production from processing of the Doornkop waste rock dumps;
Central plant reclamation: gold production increased by 15% to 579kg (18 615oz), mainly due to a 14% increase in grade recovered to 0.150g/t;
Phoenix (tailings retreatment): gold production increased by 3% to 756kg (24 306oz), due to a 3% increase in tonnes processed to 6.133Mt;
Bambanani: gold production decreased by 11% to 2 515kg (80 860oz), due to the 10% decrease in recovered grade to 10.93g/t. This is in line with an overall lower grade profile as the shaft pillar is extracted;
Kalgold: gold production remained flat at 1 249kg (40 156oz);
Doornkop: gold production decreased by 5% to 3 273kg (105 229oz), as a result of a 9% decrease in recovered grade to 4.48g/t, partially offsetting a 5% increase in tonnes milled;
Joel: Gold production decreased by 4% to 1 567kg (50 379oz), as a result of a 6% decrease in tonnes milled to 429 000t. Grade increased by 1% to 3.65g/t. The Joel decline project is nearing completion and an increase in both production and grade is expected in FY20;
Target 1: gold production decreased by 7%, due to a 14% decrease in tonnes milled to 588 000t, partially offsetting the 7% increase in recovered grade to 4.51g/t. A capital efficiency project to move the ore and rock crusher, associated mining activities and services closer to the working areas is underway to improve the overall efficiency and productivity of the mining circuit at Target 1;
Masimong: gold production decreased by 12% to 2 309kg (74 237oz), due to a 5% decrease in recovered grade to 3.84g/t and a 7% decrease in tonnes milled to 602 000t. The operations performance was impacted by a reduction in higher grade B reef year on year;



Tshepong operations: gold production decreased by 15% to 7 967kg (256 146oz), due to a 10% decrease in recovered grade to 4.94g/t and a 6% decrease in tonnes milled. The performance of the Tshepong Operations was mainly impacted by a lack of flexibility due to a reduction in the availability of stoping panels to mine. Post year end we have already seen improvements in the mine’s overall performance, following stoping development and improving overall mining and grade discipline.
All-in sustaining unit costs for the group increased by 8% to R550 005/kg in FY19 mainly due to lower production at Tshepong and inflationary increases in wages and salaries and Eskom electricity tariff increases. In US dollar terms, all-in sustaining unit costs decreased by 2% to US$1 207/oz, mainly due to the weakening of the average Rand exchange rate against the US dollar by 10% to R14.18 in FY19.
Capital expenditure for FY19 increased by 9% to R4 687 million (decrease of 1% to US$331 million). The increase is mainly due to the inclusion of Moab Khotsong for the full twelve month period in FY19 (compared to the four months in FY18).
YEAR-ON-YEAR FINANCIAL RESULTS
Revenue
Revenue increased by R6 460 million or 32% (US$307 million or 19%) mainly due to an 18% increase in gold sold and a R515 million (US$36 million) increase in silver sales. The average gold price received increased by 3% to R586 653/kg (from R570 709/kg in FY18).
Forward gold sale contracts of 6 998kg (or 225 000oz) with an average price of R638 007/kg matured during FY19.
Production costs
Production costs increased by R5 240 million or 35% (US$259 million) during FY19 mainly due to the inclusion of Moab Khotsong for the full year as well as continuing production at Hidden Valley for the full year.
Amortisation and depreciation
Amortisation and depreciation is R1 484 million (US$105 million) higher for FY19 year owing mainly to full year production at Hidden Valley (R1   604 million (US$113 million) increase) as well as Moab Khotsong (R178 million (US$13 million) increase) included for the full year.
Impairment of assets
An increase in the planned long term gold price assumption of R585 000/kg was offset by an increase in costs (both working costs and capital expenditure), which was further compounded by the inclusion of carbon tax, in both the life-of-mine and resource base models. Although there was an increase in the group’s overall net present value of the life-of-mine models, the revision of the areas included in certain of the resource base models resulted in lower grades which negatively impacted on the cash flows and ultimately the recoverable amounts.
Gains on derivatives
Gains on derivatives recorded a net gain of R484 million (US$34 million) for FY19 (FY18: R99 million (US$8 million)). The gains relate primarily to foreign exchange derivatives entered into during the year when the spot US$/Rand exchange rate was weaker than the closing rate of US$/R14.13.
The hedging programmes realised cash gains of R477 million (US$34 million) for FY19. Management continues to top-up these programmes when the market presents attractive opportunities to do so. Refer to note 10 for a summary of all the open hedging contracts as at 30 June 2019.
Net loss and headline earnings
The net loss for FY19 was R2 607 million (US$185 million), compared to a loss of R4 473 million (US$321 million) for FY18. Moab Khotsong and Hidden Valley’s inclusion for a full financial year as well as lower impairments recorded in FY19 contributed to the improvement.
Headline earnings amounted to 204 SA cents (14 US cents) compared to 171 SA cents (13 US cents) in FY18.
Borrowings
Borrowings as at 30 June 2019 include US$175 million utilised on the US$ term facility and US$120 million on the US$ revolving credit facility (RCF). The group’s South East Asia operations have an outstanding loan of US$20 million used to finance the acquisition of fleet equipment. R1.5 billion has been utilised on the group’s R2 billion facility. Net debt remained stable at R4 922 million at 30 June 2019 compared to R4 908 million at 30 June 2018 (in US$ terms a decrease of US$9 million from US$357 million to US$348 million).
MINERAL RESOURCES AND MINERAL RESERVES
Year-on-year, Harmony's total attributable gold and gold equivalent mineral resources remained steady at 117.3Moz as at 30 June 2019. The total gold contained in the mineral resources at the South African operations represents 61% of the company total, with the Papua New Guinea (PNG) operations representing 39% of Harmony’s total gold and gold equivalent mineral resources as at 30   June 2019.
Harmony’s total attributable gold and gold equivalent mineral reserves amounts to 36.5Moz, a 0.8% decrease from the 36.8Moz declared at 30 June 2018. The gold reserve ounces in South Africa represent 47%, while the PNG gold and gold equivalent ounces represent 53% of Harmony’s total mineral reserves as at 30 June 2019. See page 7 for our reserves and resources statement.
SILICOSIS CLASS ACTION UPDATE
On 26 July 2019, the South Gauteng High Court approved the class action silicosis settlement agreement proposed between the Gold Working Group companies, which includes Harmony, and the representatives of the claimants in the mineworkers class-action. This is a historic settlement, resulting from three years of extensive negotiations. The agreement provides meaningful compensation to all eligible workers suffering from silicosis and/or tuberculosis who worked in the Gold Working Group companies’ mines from 12 March 1965 to date. This is the very first class action settlement of its kind in South Africa. The agreement affects mineworkers who contracted silicosis or pulmonary  tuberculosis during or after being employed as gold miners from March 1965.



The Tshiamiso Trust (Setswana word meaning “to make good” or “to correct”) will track and trace class members and administer claims and payments to eligible claimants following the completion of the legal opt out period as set out be the Court.
For more details refer to www.silicosissettlement.co.za or www.oldcollab.co.za.
WAFI-GOLPU PERMITTING UPDATE
Wafi-Golpu is a quality copper-gold ore body and tier one asset, which has the potential to contribute substantial benefits to all stakeholders.
Permitting of the Wafi-Golpu project has been delayed by the period culminating in the PNG Parliament’s election of a new Prime Minister, as well as the delay associated with legal proceedings between the National Government and the Morobe Provincial Government regarding the internal distribution of PNG’s economic interests in the project.
The permitting delays compelled the Wafi-Golpu Joint Venture (“WGJV") to defer and revise the planned work program it had planned to commence this calendar year.
The PNG Government continues to signal its support for the project and the WGJV is well placed to resume discussions with the PNG Government, given the constructive progress already made on the various agreements required for completion of the permitting process and the grant of a Special Mining Lease. It is difficult to estimate the duration of this delay and the market will be advised when discussions recommence.
Harmony and Newcrest Mining Limited each currently own 50% of Wafi-Golpu through the WGJV. The State of PNG retains the right to purchase, at a pro rata share of accumulated exploration expenditure, up to 30% equity interest in any mineral discovery at Wafi-Golpu, at any time before the commencement of mining.
FY20 GROUP PRODUCTION AND COST GUIDANCE
In the next financial year, we plan to produce approximately 1.46Moz at an all-in sustaining unit cost of R579 000/kg.
IN CONCLUSION
Global economic risks, combined with an ever evolving gold industry, support a higher gold price. As a highly geared gold share, Harmony is well positioned to benefit from the uplift in gold prices. Not only do we have a tier 1 project such as Wafi-Golpu in our portfolio, but we also have a pipeline of organic projects to consider. Harmony is known for its competitive strength of establishing mutually beneficial partnerships with stakeholders, enabling the company to produce more than 1.4 million ounces of gold per annum in a rising gold price environment.
Throughout FY20, we will continue to focus on producing safe, profitable production, pursue safe, value accretive acquisitions and strengthen our cash flows. Value – rather than volume – will translate to shareholder returns in the long term.




SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES AS AT 30 JUNE 2019
Harmony’s statement of mineral resources and mineral reserves as at 30 June 2019 is produced in accordance with the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC). It should be noted that the mineral resources are reported inclusive of the mineral reserves.
This report provides a summary of the update, while the detailed statement of the mineral resources and mineral reserves will be available on our website as from 20 August 2019 and published in the Integrated Report on 24 October 2019, which will be available at www.harmony.co.za/invest. Refer to the website (www.harmony.co.za) for the updated reserves and resources tables as at 30 June 2019.
Introduction
Harmony’s strategy is to produce safe, profitable ounces and increase margins. This includes delivering safely on our operational plans, reducing costs and improving productivity. Harmony’s growth journey entails acquiring higher grade assets.
Harmony – Total
The company’s attributable gold and gold equivalent mineral resources are declared as 117.3Moz as at 30 June 2019, a 0.4% decrease year on year from the 117.8Moz declared as at 30 June 2018. The total gold contained in the mineral resources at the South African operations represents 61% of the company total, with the PNG operations representing 39% of Harmony’s total gold and gold equivalent mineral resources as at 30 June 2019. Harmony’s attributable gold and gold equivalent mineral reserves amounts to 36.5Moz, a 0.8% decrease from the 36.8Moz declared at 30 June 2018. The gold reserve ounces in South Africa represent 47%, while the PNG gold and gold equivalent ounces represent 53% of Harmony’s total mineral reserves as at 30   June 2019.
South Africa
South African underground operations
The company’s mineral resources at the South African underground operations as at 30 June 2019 are 60.6Moz (210.4Mt at 8.96g/t), a decrease of 1.1% year on year from the 61.3Moz (216.7Mt at 8.79/t) declared as at 30 June 2018. The company’s mineral reserves at the South African underground operations as at 30 June 2019 are 10.6Moz (56.7Mt at 5.83g/t), an increase of 4.9% year on year from the 10.1Moz (52.4Mt at 6.02g/t) declared as at 30 June 2018. The increase is mainly due to the reserves added from Moab Khotsong, Tshepong and Doornkop.
South African surface operations, including Kalgold
The company’s mineral resources at the South African surface operations as at 30 June 2019 are 10.8Moz (1 109.5Mt at 0.30g/t) an increase of 14.6% mainly due to the exploration drilling at Kalgold. The company’s mineral reserves after normal depletion at the South African surface operations as at 30 June 2019 are 6.6Moz (808.8Mt at 0.26g/t), a decrease of 2.0% due to depletion.
Papua New Guinea (PNG)
Papua New Guinea operations
The company’s attributable gold and gold equivalent mineral resources at the PNG operations as at 30 June 2019 are 45.9Moz, a decrease of 2.5% year on year from the 47.1Moz declared as at 30 June 2018. This decrease is mainly due to depletion, a new resource model at Hidden Valley and changes in the metal price. The company’s gold and gold equivalent mineral reserves at the PNG operations as at 30 June 2019 are 19.3Moz, a decrease of 3.4% year on year from the 19.9Moz declared as at 30 June 2018.
ASSUMPTIONS
In converting the mineral resources to mineral reserves, the following commodity prices and exchange rates were applied:
A gold price of US$1 290/oz
An exchange rate of US$/R14.11
The above parameters resulted in a rand gold price of R585 000/kg for the South African assets
The Hidden Valley mine and the Wafi-Golpu project used commodity prices of US$1 290/oz Au, US$17.00/oz Ag, US$9.00/lb Mo and US$3.00/lb Cu at an exchange rate of AUD1.36 per US$
Gold equivalent ounces are calculated assuming US$1 290/oz Au, US$3.00/lb Cu and US$17.00/oz Ag, and assuming a 100% recovery for all metals
Independent review
The Mineral Corporation has reviewed Harmony’s SAMREC statement and performed a detail review of the mineral resources and reserves at Doornkop. The mineral resources and reserves at Moab Khotsong and the Wafi-Golpu Joint Venture were reviewed by SRK Consulting. Hidden Valley's mineral reserves and resources were reviewed by Derisk Geomining Consultants.

Note: Au = gold; Cu = copper; Ag = Silver, Mo = Molybdenum, Moz = million ounces.



 
Mineral resources: gold and gold equivalents
Measured
Indicated
Inferred
Total
 
Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

 
SA underground
68.7

8.61

19 024

69.2

9.20

20 454

72.5

9.05

21 111

210.4

8.96

60 590

 
SA surface incl Kalgold
272.8

0.30

2 589

771.6

0.30

7 371

65.1

0.39

824

1 109.5

0.30

10 784

 
Total South Africa
341.5

 
21 614

840.8

 
27 825

137.6

 
21 935

1 319.9

 
71 374

 
Hidden Valley
2.8

0.97

86

66.5

1.54

3 291

1.8

1.12

63

71.0

1.51

3 439

 
Wafi-Golpu system*



397.6

0.84

10 763

110.5

0.77

2 728

508.1

0.83

13 491

 
Kili Teke






237.0

0.24

1 810

237.0

0.24

1 810

 
Total Papua New Guinea
2.8

 
86

464.1

 
14 053

349.2

 
4 601

816.1

 
18 740

 
Total gold resources
344.3

 
21 699

1 304.9

 
41 878

486.8

 
26 537

2 136.0

 
90 115

 
Hidden Valley – gold equivalent ounces
2.7

 
24

64.5

 
713

1.5

 
16

68.6

 
753

 
 
Wafi-Golpu – gold equivalent ounces*


344.0

19 139

91.9

3 199

435.9

22 338

 
 
Kili Teke – gold equivalent ounces




237.0

4 108

237.0

4 108

 
 
Total gold equivalent resources**
2.7

 
24

408.5

 
19 852

330.4

 
7 323

741.6

 
27 200

 
Total Harmony gold and gold equivalent resource**
344.3

 
21 724

1 304.9

 
61 731

486.8

 
33 860

2 136.0

 
117 314

Mineral resources: silver and copper (used in equivalent calculations)
Measured
Indicated
Inferred
Total
Tonnes
(Mt)

g/t

Silver ‘000oz
Tonnes
(Mt)

g/t

Silver ‘000oz
Tonnes
(Mt)

g/t

Silver ‘000oz

Tonnes
(Mt)

g/t

Silver ‘000oz

Hidden Valley
2.7

21.13

1 863
64.5

26.12

54 151
1.5

25.21

1 256

68.8

25.90

57 270

 
Measured
Indicated
Inferred
Total
Tonnes
(Mt)

%

Copper ‘Mlb
Tonnes
(Mt)

%

Copper ‘Mlb
Tonnes
(Mt)

%

Copper ‘Mlb

Tonnes
(Mt)

%

Copper ‘Mlb

Golpu*


344.0

1.09

8 232
67.9

0.85

1 273

411.9

1.05

9 505

Nambonga*




24.0

0.20

104

24.0

0.20

104

Kili Teke




237.0

0.34

1 767

237.0

0.34

1 767

Total


344.0

1.09

8 232
328.8

0.43

3 143

672.8

0.77

11 375


Mineral reserves:
gold and gold equivalents
Proved
Probable
Total
Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

SA underground
40.6

5.86

7 649

16.2

5.75

2 987

56.7

5.83

10 636

SA surface incl Kalgold
173.8

0.30

1 689

634.9

0.24

4 952

808.8

0.26

6 641

Total South Africa
214.4

 
9 338

651.1

 
7 939

865.5

 
17 277

Hidden Valley
2.8

0.97

86

13.9

1.91

854

16.7

1.75

939

Wafi-Golpu system*
 
 
 
202.3

0.86

5 573

202.3

0.86

5 573

Total Papua New Guinea
2.8

 
86

216.2

 
6 427

219.0

 
6 512

Total gold reserves
217.1

 
9 424

867.3

 
14 366

1 084.5

 
23 789

Hidden Valley – gold equivalent ounces
2.7

 
25

13.6

 
175

16.3

 
199

Wafi-Golpu – gold equivalent ounces*
 
 
 
202.3

 
12 538

202.3

 
12 538

Total gold equivalent reserves**
2.7

 
25

215.9

 
12 713

218.6

 
12 738

Total Harmony gold and gold equivalent reserves**
217.1

 
9 448

867.3

 
27 079

1 084.5

 
36 527

Mineral reserves:
silver and copper
(used in equivalent calculations)
Proved
Probable
Total
Tonnes
(Mt)

g/t

Silver ‘000oz

Tonnes
(Mt)

g/t

Silver ‘000oz

Tonnes
(Mt)

g/t

Silver ‘000oz

Hidden Valley
2.7

21.13

1 863

13.6

30.41

13 271

16.3

28.85

15 134

 
Proved
Probable
Total
Tonnes
(Mt)

%

Copper ‘Mlb

Tonnes
(Mt)

%

Copper ‘Mlb

Tonnes
(Mt)

%

Copper ‘Mlb

Golpu*



202.3

1.21

5 393

202.3

1.21

5 393

* Represents Harmony’s equity portion of 50%.
**In instances where individual deposits may contain multiple valuable commodities with a reasonable expectation of being recovered (for example gold and copper in a single deposit) Harmony computes a gold equivalent to more easily assess the value of the deposit against gold-only mines. Harmony does this by calculating the value of each of the deposits commodities, then dividing the product by the price of gold. For example, the gold equivalent ounces for the copper portion of a deposit would be calculated as follows: (copper pounds x copper price per pound)/gold price per ounce. All gold equivalent calculations are done using metal prices and parameters as stipulated above.



EXPLORATION
Our exploration strategy is to pursue brownfields exploration targets close to existing infrastructure. This will drive short to medium term organic ore reserve replacement and growth to support our current strategy of increasing quality ounces and to mitigate the risk of a depleting ore reserve base. Key work streams underpinning the FY19 exploration program include:
brownfield exploration at Hidden Valley and Kalgold to optimise existing open pit operations and extend mine life;
brownfield exploration at our underground operations in South Africa; and
greenfield exploration at Target North.
South Africa
B-Reef
B Reef exploration at the Tshepong Operations continued during FY19 and a new block of ground was identified at the Phakisa Section where development towards the B Reef will commence in FY20.
Joel Mine Beatrix Reef extensions
The underground exploration drilling at Joel Mine identified well mineralised remnant blocks of Beatrix Reef within the Klippan Erosion channel. These blocks have been added to the resources and reserves of the mine.
Kalgold
A total of 26 790 meters of drilling completed in FY19 with a total to date of 48 610 meters (210 boreholes) completed on the Kalgold near mine exploration program. Drill results have been very encouraging and a mineral resource update and prefeasibility study to optimise the Kalgold operation based on the results of the exploration drilling is underway.
An airborne electro-magnetic survey was undertaken in FY19 to provide a method for rapidly assessing the regional potential of the Kalgold prospecting rights and initial interpretation has identified numerous potential targets. Further detailed interpretation and field work to put anomalies in context with geology is planned for FY20.
Zaaiplaats
Underground exploration drilling is underway in two specific blocks above infrastructure in the Zaaiplaats project area with the aim to identify opportunities for early access and mining of these blocks of ground. Drilling will continue in FY20.     
Target North
Drilling of the first borehole from surface commenced towards the end of FY19 and a total of 1 542 meters were drilled. Drilling of three initial exploration boreholes are planned to confirm the geological model and test the Ventersdorp Contact Reef, as well as the sub-cropping Dreyerskuil and Eldorado (EA) Reefs. Drilling continues into FY20.    
Papua New Guinea
Hidden Valley District (Harmony 100%)
Near mine exploration targeting potential high-grade satellite epithermal gold deposits progressed in FY19. Target development and regional exploration of the Webiak is currently underway. Mapping, trenching and surface sampling continued as part of drill target development (1 799 soil, 531 rockchip samples). Drill program planning is in progress, targeting commencement in the first quarter of FY20.
ADMINISTRATIVE INFORMATION FOR PROFESSIONAL ORGANISATIONS
GEOLOGICAL SOCIETY OF SOUTH AFRICA
P.O. Box 91230, Auckland Park, 2006
Gauteng Province, South Africa
Telephone: +27 (11) 358 0028
http://www.gssa.org.za
SACNASP – THE LEGISLATED REGULATORY
BODY FOR NATURAL SCIENCE PRACTITIONERS IN SOUTH AFRICA
Private Bag X540, Silverton, 0127 Gauteng Province, South Africa Telephone: +27 (12) 841 1075
Facsimile: +27 (86) 206 0427
http://www.sacnasp.org.za/
SAIMM – THE SOUTHERN AFRICAN INSTITUTE OF MINING AND METALLURGY
Private Bag X540, Silverton, 0127 Gauteng Province, South Africa Telephone: +27 (12) 841 1075
Facsimile: +27 (86) 206 0427
http://www.saimm.co.za



AUSIMM – THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY
PO Box 660, Carlton South,
Vic 3053, Australia
Telephone: +61 3 9658 6100
Facsimile: +61 3 9662 3662
http://www.ausimm.com.au/
LEGAL ENTITLEMENT TO THE MINERALS BEING REPORTED UPON
Harmony’s South African operations operate under new order mining rights in terms of the Minerals and Petroleum Resources Development of Act of 2002 (Act No. 28, of 2002) (MPRDA). In PNG, Harmony operates under the Independent State of Papua New Guinea Mining Act 1992. All required operating permits have been obtained, and are in good standing. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Competent Person.



OPERATING RESULTS – YEAR ON YEAR (RAND/METRIC)
 
 
Year
ended
South Africa
Hidden
 Valley¹

Total
Harmony

 
 
Underground production
Surface production
Total
South
Africa

 
 
Tshepong operations

Moab Khotsong

Bambanani

Joel

Doornkop

Target 1

Kusasalethu

 
Masimong

Unisel

Total
Under-
ground

Phoenix

Central
plant
reclamation

Dumps

Kalgold

Total Surface

 
 
Ore milled
t'000
Jun-19
1 612

970

230

429

730

588

742

 
602

256

6 159

6 133

3 872

4 307

1 619

15 931

22 090

3 886

25 976

Jun-18
1 716

327

233

454

696

680

670

 
647

376

5 799

5 962

3 810

2 821

1 550

14 143

19 942

2 499

22 441

Yield
g/tonne
Jun-19
4.94

8.17

10.93

3.65

4.48

4.51

6.72

 
3.84

4.73

5.59

0.123

0.150

0.352

0.77

0.26

1.74

1.60

1.72

Jun-18
5.47

10.08

12.11

3.60

4.93

4.20

6.61

 
4.05

3.40

5.48

0.124

0.132

0.383

0.81

0.25

1.77

1.36

1.76

Gold produced
kg
Jun-19
7 967

7 928

2 515

1 567

3 273

2 653

4 989

 
2 309

1 212

34 413

756

579

1 515

1 249

4 099

38 512

6 222

44 734

Jun-18
9 394

3 296

2 821

1 635

3 429

2 854

4 429

 
2 623

1 280

31 761

737

502

1 081

1 250

3 570

35 331

2 862

38 193

Gold sold
kg
Jun-19
7 922

7 794

2 495

1 612

3 255

2 685

5 028

 
2 291

1 207

34 289

750

577

1 497

1 263

4 087

38 376

6 192

44 568

Jun-18
9 338

3 165

2 804

1 656

3 404

2 828

4 301

 
2 609

1 272

31 377

739

508

1 074

1 231

3 552

34 929

2 763

37 692

Gold price received
R/kg
Jun-19
591 331

573 522

591 962

593 531

593 301

590 298

591 742

 
593 003

590 468

587 680

577 889

592 359

587 483

593 482

588 265

587 742

579 902

586 653

Jun-18
577 058

528 387

576 398

576 023

575 077

576 316

577 313

 
576 729

576 222

571 727

537 547

576 829

567 737

576 630

565 838

571 128

550 956

570 709

Gold revenue
(R'000)
Jun-19
4 684 522

4 470 030

1 476 946

956 772

1 931 194

1 584 950

2 975 279

 
1 358 570

712 695

20 150 958

433 417

341 791

879 462

749 568

2 404 238

22 555 196

3 590 755

26 145 951

Jun-18
5 388 567

1 672 345

1 616 221

953 894

1 957 562

1 629 821

2 483 024

 
1 504 687

732 955

17 939 076

397 247

293 029

609 750

709 832

2 009 858

19 948 934

408 809

20 357 743

Cash operating cost (net of by-product credits)
(R'000)
Jun-19
4 007 667

3 166 555

984 749

967 021

1 593 279

1 478 422

2 376 844

 
1 213 849

568 559

16 356 945

344 260

212 125

691 557

694 797

1 942 739

18 299 684

1 370 850

19 670 534

Jun-18
3 828 757

1 036 677

904 761

909 825

1 418 186

1 333 591

2 091 272

 
1 160 903

773 518

13 457 490

326 142

191 328

449 688

565 456

1 532 614

14 990 104

227 900

15 218 004

Inventory movement
(R'000)
Jun-19
(34 242)

(65 616)

9 166

4 417

(29 489)

12 921

17 679

 
(8 683)

(4 204)

(98 051)

(3 083)

(78)

(7 358)

5 149

(5 370)

(103 421)

(8 794)

(112 215)

Jun-18
(30 197)

(84 193)

(8 740)

10 019

(7 176)

(15 190)

(65 234)

 
(6 723)

(2 634)

(210 068)

575

3 536

(3 563)

(12 438)

(11 890)

(221 958)

6 007

(215 951)

Operating costs
(R'000)
Jun-19
3 973 425

3 100 939

993 915

971 438

1 563 790

1 491 343

2 394 523

 
1 205 166

564 355

16 258 894

341 177

212 047

684 199

699 946

1 937 369

18 196 263

1 362 056

19 558 319

Jun-18
3 798 560

952 484

896 021

919 844

1 411 010

1 318 401

2 026 038

 
1 154 180

770 884

13 247 422

326 717

194 864

446 125

553 018

1 520 724

14 768 146

233 907

15 002 053

Production profit
(R'000)
Jun-19
711 097

1 369 091

483 031

(14 666)

367 404

93 607

580 756

 
153 404

148 340

3 892 064

92 240

129 744

195 263

49 622

466 869

4 358 933

2 228 699

6 587 632

Jun-18
1 590 007

719 861

720 200

34 050

546 552

311 420

456 986

 
350 507

(37 929)

4 691 654

70 530

98 165

163 625

156 814

489 134

5 180 788

174 902

5 355 690

Capital expenditure
(R'000)
Jun-19
1 130 180

558 876

61 093

187 092

308 324

297 265

315 921

 
109 386

45 426

3 013 563

5 757

7 084

7 682

61 179

81 702

3 095 265

1 591 274

4 686 539

Jun-18
1 008 390

173 193

63 545

250 459

273 925

309 451

288 781

 
128 680

84 711

2 581 135

3 075

22 318

2 529

107 644

135 566

2 716 701

1 563 355

4 280 056

Cash operating costs
R/kg
Jun-19
503 033

399 414

391 550

617 116

486 795

557 264

476 417

 
525 703

469 108

475 313

455 370

366 364

456 473

556 283

473 954

475 168

220 323

439 722

Jun-18
407 575

314 526

320 724

556 468

413 586

467 271

472 177

 
442 586

604 311

423 711

442 526

381 131

415 993

452 365

429 304

424 276

287 028

421 260

Cash operating costs
R/tonne
Jun-19
2 486

3 264

4 282

2 254

2 183

2 514

3 203

 
2 016

2 221

2 656

56

55

161

429

122

828

353

757

Jun-18
2 231

3 170

3 883

2 004

2 038

1 961

3 121

 
1 794

2 057

2 321

55

50

159

365

108

752

390

741

Cash operating cost
and Capital²
R/kg
Jun-19
644 891

469 908

415 842

736 511

580 997

669 313

539 740

 
573 077

506 588

562 883

462 985

378 599

461 544

605 265

493 887

555 540

476 073

544 487

Jun-18
514 919

367 072

343 249

709 654

493 471

575 698

537 379

 
491 644

670 491

504 979

446 699

425 590

418 332

538 480

467 277

501 169

403 747

499 028

All-in sustaining cost
R/kg
Jun-19
636 281

477 581

441 226

701 644

572 132

662 816

556 621

 
593 408

523 823

566 572

462 579

378 038

462 178

624 147

500 426

558 494

497 399

550 005

Jun-18
514 537

420 286

360 462

661 921

508 065

582 200

554 302

 
513 197

678 436

516 420

446 268

420 016

417 462

552 032

470 458

509 878

466 256

508 970

Operating free cash flow margin³
%
Jun-19
(10
)%
17
%
29
%
(21
)%
2
%
(12
)%
9
%
 
3
%
14
 %
4
%
19
%
36
%
20
%
(1
)%
16
%
5
%
16
%
7
%
Jun-18
10
 %
28
%
40
%
(22
)%
14
%
(1
)%
4
%
 
14
%
(17
)%
11
%
17
%
27
%
26
%
5
 %
17
%
11
%
24
%
11
%
¹No production for Hidden Valley was capitalised during FY19. Ore milled for FY18 includes 1 914 000 tonnes that was capitalised as part of the pre-stripping of stages 5 & 6. Gold produced for FY18 includes 2 068 kilograms and gold sold 2 021 kilograms that was capitalised.
²Excludes investment capital for Hidden Valley of R1 471 million for FY18.
³Excludes run of mine costs for Kalgold (Jun-19:R1.966m, Jun-18:-R3.082m) and Hidden Valley (Jun-19:-R55.881m, Jun-18:R8.283m) as well as Hidden Valley's investment capital as per note 2.









OPERATING RESULTS – YEAR ON YEAR (US$/IMPERIAL)
 
 
Year
ended
South Africa
Hidden
 Valley¹

Total
Harmony

 
 
Underground production
Surface production
Total
South
Africa

 
 
Tshepong operations

Moab Khotsong

Bambanani

Joel

Doornkop

Target 1

Kusasalethu

 
Masimong

Unisel

Total
Under-
ground

Phoenix

Central
plant
reclamation

Dumps

Kalgold

Total Surface

 
 
Ore milled
t'000
Jun-19
1 777

1 069

254

473

805

650

817

 
664

283

6 792

6 762

4 269

4 749

1 785

17 565

24 357

4 285

28 642

Jun-18
1 893

360

257

501

767

749

738

 
714

415

6 394

6 575

4 201

3 110

1 709

15 595

21 989

2 757

24 746

Yield
oz/ton
Jun-19
0.144

0.238

0.318

0.107

0.131

0.131

0.196

 
0.112

0.138

0.163

0.004

0.004

0.010

0.022

0.008

0.051

0.047

0.050

Jun-18
0.160

0.294

0.353

0.105

0.144

0.123

0.193

 
0.118

0.099

0.160

0.004

0.004

0.011

0.024

0.007

0.052

0.039

0.051

Gold produced
oz
Jun-19
256 146

254 891

80 860

50 379

105 229

85 296

160 400

 
74 237

38 966

1 106 404

24 306

18 615

48 708

40 156

131 785

1 238 189

200 042

1 438 231

Jun-18
302 026

105 969

90 698

52 566

110 245

91 758

142 395

 
84 332

41 152

1 021 141

23 695

16 139

34 755

40 189

114 778

1 135 919

92 015

1 227 934

Gold sold
oz
Jun-19
254 698

250 583

80 216

51 827

104 650

86 324

161 653

 
73 657

38 807

1 102 415

24 113

18 551

48 129

40 605

131 398

1 233 813

199 077

1 432 890

Jun-18
300 223

101 757

90 151

53 242

109 440

90 922

138 281

 
83 882

40 896

1 008 794

23 759

16 333

34 530

39 577

114 199

1 122 993

88 833

1 211 826

Gold price received
$/oz
Jun-19
1 297

1 258

1 299

1 302

1 302

1 295

1 298

 
1 301

1 295

1 289

1 268

1 299

1 289

1 302

1 290

1 289

1 272

1 287

Jun-18
1 397

1 279

1 395

1 394

1 392

1 395

1 397

 
1 396

1 395

1 384

1 301

1 396

1 374

1 396

1 370

1 382

1 283

1 380

Gold revenue
($'000)
Jun-19
330 389

315 262

104 166

67 479

136 203

111 783

209 840

 
95 817

50 265

1 421 204

30 568

24 106

62 027

52 865

169 566

1 590 770

253 248

1 844 018

Jun-18
419 350

130 146

125 778

74 234

152 342

126 836

193 234

 
117 098

57 040

1 396 058

30 915

22 804

47 452

55 241

156 412

1 552 470

30 617

1 583 087

Cash operating cost (net of by-product credits)
($'000)
Jun-19
282 652

223 330

69 452

68 202

112 371

104 270

167 634

 
85 610

40 099

1 153 620

24 280

14 961

48 774

49 003

137 018

1 290 638

96 684

1 387 322

Jun-18
297 962

80 677

70 411

70 805

110 366

103 783

162 747

 
90 344

60 197

1 047 292

25 381

14 890

34 996

44 005

119 272

1 166 564

17 062

1 183 626

Inventory movement
($'000)
Jun-19
(2 415)

(4 628)

646

312

(2 080)

911

1 247

 
(612)

(296)

(6 915)

(217)

(6)

(519)

363

(379)

(7 294)

(620)

(7 914)

Jun-18
(2 350)

(6 552)

(680)

780

(558)

(1 182)

(5 077)

 
(523)

(205)

(16 347)

45

275

(277)

(968)

(925)

(17 272)

436

(16 836)

Operating costs
($'000)
Jun-19
280 237

218 702

70 098

68 514

110 291

105 181

168 881

 
84 998

39 803

1 146 705

24 063

14 955

48 255

49 366

136 639

1 283 344

96 064

1 379 408

Jun-18
295 612

74 125

69 731

71 585

109 808

102 601

157 670

 
89 821

59 992

1 030 945

25 426

15 165

34 719

43 037

118 347

1 149 292

17 498

1 166 790

Production profit
($'000)
Jun-19
50 152

96 560

34 068

(1 035)

25 912

6 602

40 959

 
10 819

10 462

274 499

6 505

9 151

13 772

3 499

32 927

307 426

157 184

464 610

Jun-18
123 738

56 021

56 047

2 649

42 534

24 235

35 564

 
27 277

(2 952)

365 113

5 489

7 639

12 733

12 204

38 065

403 178

13 119

416 297

Capital expenditure
($'000)
Jun-19
79 709

39 417

4 308

13 195

21 744

20 966

22 281

 
7 714

3 205

212 539

406

500

542

4 315

5 763

218 302

112 229

330 531

Jun-18
78 475

13 478

4 945

19 491

21 317

24 082

22 474

 
10 014

6 592

200 868

239

1 737

197

8 377

10 550

211 418

121 404

332 822

Cash operating costs
$/oz
Jun-19
1 103

876

859

1 354

1 068

1 222

1 045

 
1 153

1 029

1 043

999

804

1 001

1 220

1 040

1 042

483

965

Jun-18
987

761

776

1 347

1 001

1 131

1 143

 
1 071

1 463

1 026

1 071

923

1 007

1 095

1 039

1 027

669

1 018

Cash operating costs
$/t
Jun-19
159

209

273

144

140

160

205

 
129

142

170

4

4

10

27

8

53

23

48

Jun-18
157

224

274

141

144

139

221

 
127

145

164

4

4

11

26

8

53

26

52

Cash operating cost
and Capital²
$/oz
Jun-19
1 415

1 031

912

1 616

1 275

1 468

1 184

 
1 257

1 111

1 235

1 016

831