Skip to content skip to secondary navigation Top of the page

and events

Media coverage

Please note that the articles contained in this section of the website have been selected from articles published by the media. The facts and opinions expressed therein are those reported by the journalist and publication and therefore may not necessarily reflect those reported by the Company.

Harmony may list Evander

Journalist: Brendan Ryan

HARMONY may spin its Evander mines out through a separate listing, as part of the further restructuring of the group.

This was announced on Monday by CEO Graham Briggs during his presentation of the March quarter results, which show a 10% drop in gold production to 10,366kg (December quarter – 11,569kg).

Briggs said 4% of the drop in output was the result of production lost to holidays and work safety stoppages, while the rest was because of the closure of the Evander 2, 5 and 7 shafts as well as the Brand 3 shaft.

During the current June quarter, Harmony also started closing down operations at another three shafts – Harmony 2 and the Merriespruit 1 and 3 shafts – all of which are at Virginia in the Free State.

On Evander, the quarterly report said: “The underpinning geological resource of Evander is the variable and very rich Kimberley Reef. The mining of this resource demands strict management philosophies and capital.

“We are currently looking at ways to unlock value at Evander, as it requires further capital to fully develop the abundant resource.”

Evander’s cash operating cost of R256,013/kg (R249,411/kg) for the March quarter was among the highest recorded in the group, and compared with an average underground cost of R204,514/kg.

Briggs said Evander had “major potential” but he felt Harmony shareholders had made large sacrifices in recent quarters and were entitled to see some returns going forward.

Harmony made a cash operating profit of R633.6m for the quarter (R799.7m), but reported a total comprehensive loss of R322m (R67m profit) after amortisation, impairment, exploration and restructuring costs.

The total headline loss was 32 cents per a share (49c/share profit) which, adjusted for the employee termination and restructuring costs, was equivalent to a loss of 6c/share (50c/share profit).

Harmony’s net debt rose to R520m at March 31, from R217m on December 31.Cash flow from operations of R614m was more than used up by capital expenditure at R723m, exploration costs of R74m and restructuring costs of R120m.

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)

Register for alerts