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Harmony financial results for the quarter ended 30 September 2006

Harmony Gold Mining Company Limited (NASDAQ/NYSE: HMY JSE: HAR) today announced its financial results for the September 2006 quarter. Harmony has shown a significant performance improvement for the quarter ended 30 September 2006 resulting from increased production, slightly higher grades, a higher received rand gold price and a weaker Rand/US$ exchange rate.

Gross sales revenue increased by R525 million to R2,7 billion; the increase is attributable to marginally higher tonnes milled of 5 055 tonnes (4 957 tonnes); 11% increase in grades per tonne; 9% increase in received gold price of R143 283/kg (R131 358/kg) and a weaker R/$ exchange rate of R7,14.

The group reported a 38% increase in cash operating profit to R891 million (R645 million) and a R277 million net profit compared with a loss of R41 million. Basic headline earnings of 66.33 cents per share for the quarter ending 30 September 2006, compared favourably with the loss of 51,66 cents per share for the previous quarter.

Cash operating costs increased by 4% to R97 538/kg mainly due to the previously forecast increases in annual labour wages as well as seasonal higher energy costs.

Barnard Swanepoel, Chief Executive of Harmony says, “Harmony has produced a pleasing set of results for the quarter and I am confident that we will unlock further value through vigilant cost containment and by increasing Group production to 3.5Moz over the next four years.”

Contributing factors to the improved performance of the South African underground operations included an increase in tonnes milled of 7% to 3,4Mt (3.1Mt); 6% increase in grades per tonne; 9% increase in received gold price of R143 283/kg (R131 358/kg) and a weaker R/$ exchange rate of R7,14.

Tonnes increased by 3% at our Australian operations and yields improved by 8% from 2.4g/t to 2.6g/t. This resulted in an increase in gold production rising from 59 286 oz to 65 877 oz.

Amortisation and depreciation of mining properties increased by 15% to R308 million (R267 million), driven by increased tonnes and increased development quarter on quarter. On-going care and maintenance costs at shafts previously closed, were lower at R20 million (R36 million).

Harmony closed out 25 000oz forward contracts during the quarter at a cost of R41 million (US$ 5,8 million) and 10 000oz call options at a cost of R14 million


Most of the group’s projects are within budget and Doornkop, Phakisa, Elandsrand and Hidden Valley projects are on schedule. Delays are, however, being experienced at Tshepong Sub 66 and Wafi/Golpu. Although Tshepong has encountered poor ground conditions which has resulted in slow progress with the chair-lift decline, this should not impact on production build up or full production target date. The drilling programme at Wafi/Golpu has been delayed by five months.

Capital Expenditure

Capital expenditure amounted to R577 million (R635 million) for the quarter ending 30 September 2006. Expenditure spent on the group’s five major projects amounted to R230 million (R122 million), while expansion and development expenditure at the group’s operations was lower at R347 million (R363 million).

Swanepoel concluded, “Going forward we will continue to build the robustness of the group by focusing on operational development, operating efficiencies and unit costs. The Harmony Improvement Process (HIP) initiative, aimed at reducing costs and improving volumes, is being introduced throughout the group and we remain confident that this and other initiatives currently in place will enhance our efforts in unlocking shareholder value.”

Bernard Swanepoel
Chief Executive
+27(0)83 303 9922

Amelia Soares
General Manager, Investor Relations
+27(0)82 654 9241

Lizelle du Toit
Investor Relations Officer
+27(0)82 465 1244

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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