Solid results support margin and production growth
Half year achievements
- 49% increase in headline earnings per share to 224 SA cents
(55% increase to 17 US cents)
- 6% increase in South African gold production
- 4% increase in underground recovered grade to 5.26g/t
- 2% decrease in all-in sustaining costs to R500 248/kg
(2% increase to US$1 161/oz)
Johannesburg, Tuesday, 13 February 2018. Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) is pleased to announce that operational excellence has resulted in a solid production performance in the six months ended 31 December 2017, with a 49% increase in headline earnings to 224 SA cents per share (17 US cents per share) compared to 150 SA cents per share (11 US cents per share) for the December 2016 period.
“We are on track to achieve our group production guidance of 1.1Moz, after producing 560 000 ounces in the six months ended 31 December 2017. Shareholder returns inform every decision we make. We will therefore relentlessly pursue the production of safe, profitable ounces”, said Peter Steenkamp, chief executive officer of Harmony.
Gold production for the group for the six months ended 31 December 2017 increased by 191kg (1%) to 17 418kg (560 003 oz), compared to 17 227kg (553 862oz) for the six months ended 31 December 2016.
All-in sustaining costs for all operations decreased by 2% to R500 248/kg in the six months ended 31 December 2017 when compared to the previous comparable period of 31 December 2016. In US dollar terms all-in sustaining costs increased by 2% to US$1 161/oz mainly due to the strengthening of the Rand against the US dollar in the six months ended 31 December 2017.
The net profit for the six months ended 31 December 2017 was R897 million (US$65 million), compared to R1 539 million (US$111 million) for the comparative period which included a gain on bargain purchase of R848 million (US$61 million).
For more details contact:
Investor Relations Manager
+27 (0) 071 607 1498 (mobile)
Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)
J.P. Morgan Equities South Africa Proprietary Limited
Harmony Gold Mining Company Limited (Harmony), a world-class gold mining and exploration company, has operations and assets in South Africa and Papua New Guinea (PNG). Harmony, which has more than 60 years’ experience in the industry, is the third largest gold producer in South Africa. Our assets include one open pit mine and several exploration tenements in PNG, as well as 9 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, we own 50% of the significant Golpu project in a joint venture in PNG.
The company’s primary stock exchange listing is on the JSE with a secondary listing on the New York Stock Exchange. The bulk of our shareholders are in South Africa and the United States. Additional information on the company is available on the corporate website, www.harmony.co.za.