Harmony’s strong cash flows underpin profitable quarter
- 04 February 2016
- Safety parameters improving; working towards zero harm
- 7% increase in underground recovered grade
- 2% increase in production
- All-in sustaining costs down by 7% at R434 834/kg (down 15% to US$950/oz)
- 84% increase in production profit to R1.29 billion (68% to US$91 million)
- Headline earnings of R74 million (US$5 million)
- Net debt reduction of R127 million (US$29 million)
Johannesburg: Thursday, 4 February 2016. Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) is pleased to announce that it recorded another solid set of results for the second quarter of financial year 2016 - three consecutive quarters of increased delivery.
Underground grade was 7% higher, with the majority of Harmony’s operations producing higher kilograms and generating net free operational cash flow. Combined with a 7% increase in the average R/kg gold price received of
R507 490/kg, revenue increased by 10% to R4.57 billion (to US$321 million) during the quarter.
Harmony’s production profit increased by 84% to R1.29 billion (68% to US$91 million) quarter on quarter, mainly due to a 7% increase in the gold price received and supported by a 2% increase in gold production.
“Higher production means that Harmony’s cash flow is strengthened, our margins are growing, we are able to repay our debt and to fund Golpu. The higher R/kg gold price is simply an added bonus”, said chief executive officer, Peter Steenkamp.
All-in sustaining costs for all operations decreased by 7% to R434 834/kg in the December 2015 quarter, compared to R466 061/kg in the September 2015 quarter (15% decrease to US$950/oz).
Better production results resulted in Harmony recording headline earnings of R74 million (US$5 million).
Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)
Investor Relations Manager
+27 (0) 82 759 1775 (mobile)