Harmony driven by excellence
- 17 August 2016
- 6% increase in underground recovered grade
- 54% reduction in net debt to R1.08 billion (61% to US$74 million)
- Net profit of R949 million (US$64million)
- Dividend of 50 SA cents (approximately 4 US cents)
- Headline earnings per share (HEPS) of 221 SA cents (US 15 cents)
- Further enhancing portfolio of copper-gold assets
Johannesburg: Wednesday, 17 August 2016. Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) today announced its results for the six months and year ended 30 June 2016.
“Harmony is driven by excellence. We have a proactive approach to safety and health, with excellent operational and management teams, a world-class exploration team, we lead environmental rehabilitation in South Africa and we continued to differentiate ourselves through quality grade management, increasing underground grade for the fourth consecutive year – this year by 6% to 5.02g/t”, said Peter Steenkamp, chief executive officer of Harmony.
Harmony’s revenue increased by 19% and the Company recorded a net profit of R949 million (US$64 million) on the back of a 21% increase in the R/kg gold price, combined with achieving its production guidance of approximately 1.1 million ounces. Net debt was reduced by 54% to R1.08 billion (61% to US$74 million).
Production profit increased to R5.084 billion (US$350 million), up 81% from R2.802 billion (US$245 million) in FY15 after accounting for a 7% increase in cash operating costs (R821 million or US$171 million). Overall, cost increases were lower than inflation, with all-in sustaining cost (AISC) for all operations increasing by only 3% to R467 526/kg (decrease of 19% to $1 003/oz), compared to R453 044/kg ($1 231/oz) in FY15.
“Having turned around the previous year’s headline loss to headline earnings of 221 SA cents (15 US cents), we felt it prudent to declare a dividend of 50 SA cents (about 4 US cents). It was indeed a good year for Harmony”, Peter Steenkamp added.
For more details contact:
Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)