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Harmony delivers solid operational performance

Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today announced vastly improved operational results.

The merged company reported combined increased cash operating profits, up 1%, from R330,4 million to R332,9 million. This was achieved through a combination of increased production as well as good management of working costs following the granting of annual labour increases, in excess of 10%, in July 2003. Cash costs increased by 3% from R73 480/kg to R75 319/kg, quarter on quarter. The gold price increased by 2% from R84 507/kg to R86 364/kg over the same period.

On an operational level the merger has progressed well with the integration of the various activities of the underlying companies. Whilst Harmony returned improved operational results, ARMgold performed in line with predictions following the expected reduction in output from its Welkom/Orkney Operations.

Basic earnings per share excluding the mark to market of financial instruments increased by 132% to 44 cents per share. The company made a loss of 24 cents per share with the inclusion of the negative mark to market movement of the hedge book, of R166 million quarter on quarter. This hedge book was inherited with the acquisition by Harmony of New Hampton and Hill 50 in Australia. The company reported a comparative loss of 134 cents per share for June 2003.

“As predicted, the South African Rand continued its strong trend against the US Dollar. This company however proved its robustness by returning a solid operational performance as well as effectively dealing with the impact of the annual wage increases through productivity improvements,” commented Bernard Swanepoel, Chief Executive.

During October 2003 the company disposed of its shareholding in both Highland Gold and High River Gold. These investments which were acquired at a cost of US$41,1 million was disposed of for an amount of US$141,4 million, a return of some 270%. The profit realised from these transactions totalled approximately R528,2 million or 206 cents per share and will be reflected in the Q2/F2004.

As a result of the challenges faced by non-Russian companies in operating in Russia and the improved exploration results from Wafi, a project within Abelle Limited, the company deemed it necessary to look at ways of strengthening its balance sheet to fund its future non-South African growth.

“Harmony has, over the past seven years, had to deal with the volatile cycles in the US Dollar gold price as well as the SA Rand. The current low R/kg gold price scenario has again presented the company with the challenge to restructure its operations and as in the past, position itself to deal with its changing environment. The company has demonstrated on many occasions its ability to deal pro-actively with the adverse situations. It was under these conditions that the company completed some 25 acquisitions, and became the fifth largest gold producer in the world,” concluded Bernard.

Performance highlights
Production- kg30 14529 9591
Production- oz969 179963 2001
Revenue- R/kg86 36484 5072
Cash cost- R/kg3623406
Revenue- US$/oz75 31973 480 (3)
Cash cost- US$/oz316296(7)
Exchange rate- R/US$7,427,73(4)

Performance highlights
Cash earnings per share130133(2)
Basic earnings per share excluding mark to market of financial instruments and impairment charges4419132
Basic earnings per share including mark to market of financial instruments and impairment charges(24)(134)82
For more details contact:

Bernard Swanepoel
on +27(0)83 303 9922


Ferdi Dippenaar
on +27(0)82 807 3684

Investor Relations Officer
Corné Bobbert
Tel +27 11 684 0146
Mobile +27(0)83 380 6614


This document includes certain information that is based on management’s reasonable expectations and assumptions. These “forward-looking statements” include, but are not limited to, statements regarding estimates, intentions and beliefs, as well as anticipated future production, mine life, market conditions and costs. While management has prepared this information using the best of their experience and judgment, and in all good faith, there are risks and uncertainties involved which could cause results to differ from projections.

Cautionary Note to US Investors – The United States Securities and Exchange Commission (the “SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this document, such as “resources”, that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our public filings with the SEC available from us at Harmony Gold Mining Company Limited, Suite Nr. 1, Private Bag X 1, Melrose Arch, 2076 South Africa, for the attention of: Mr. Ferdi Dippenaar, Commercial Director. You can also obtain these filings from the SEC by calling 1-800-SEC-0330.

Annual report

Integrated annual report 2016
Integrated annual report 2017


Investor brief

Harmony Investor brief, Sep 2017
September 2017 -
Harmony Investor brief

(PDF - 6.5MB)

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