Wrap Text
Operational update for the nine months ended 31 March 2024 (9MFY24)
Harmony Gold Mining Company Limited
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
("Harmony" or "the Company")
OPERATIONAL UPDATE
for the nine months ended 31 March 2024
(9MFY24)
KEY HIGHLIGHTS
(9MFY24 vs 9MFY23)
- Group LTIFR# at 5.60 from 5.50; long-term safety performance
trending in the right direction but more needs to be done
- We have revised our FY24 production and grade guidance upwards
and reduced our cost and capital guidance
- 8% increase in average underground recovered grades to 6.16g/t
from 5.68g/t
- 10% increase in total gold production to 36 777kg (1 182 405oz)
from 33 349kg (1 072 195oz)
- 2% decrease in group all-in sustaining costs (AISC) to
R877 965/kg (US$1 457/oz) from R893 985/kg (US$1 592/oz)
- Conclusion of landmark five-year wage agreement on 4 April 2024
ensures stability and predictability of our labour costs
- 17% increase in average rand gold price received to
R1 162 048/kg (US$1 928/oz) from R992 566/kg (US$1 768/oz)
- 26% increase in gold revenue to R42 397 million (US$2 262 million)
from R33 539 million (US$1 921 million)
- 171% increase in group operating free cash flow to R8 774 million
(US$468 million) from R3 237 million (US$186 million) driven
by higher recovered grades at Mponeng, Moab Khotsong,
Hidden Valley and Mine Waste Solutions
- Robust balance sheet with net cash increasing to R1 544 million
(US$82 million) from R74 million (US$4 million) in H1FY24
- Rolling gold hedge book expanded in anticipation of higher capital
expenditure programme
- Execution of key projects namely Moab Khotsong extension
and Mine Waste Solution on track, preparatory work started at
Mponeng and early works to begin at Eva Copper Project
# LTIFR - lost-time injury frequency rate per million hours worked
Unless otherwise indicated, all currency conversions for this reporting period are at the
average exchange rate of R/US$18.75 (9MFY23: R/US$17.46)
Please note that financial information has not been reviewed or audited by the Company's
external auditors
OPERATIONAL EXCELLENCE AND HIGH RECOVERED GRADES ENSURE STRONG
PRODUCTION AND FREE CASH FLOW GENERATION. ANNUAL GUIDANCE ADJUSTED ON
THE BACK OF OUTSTANDING PERFORMANCE
Johannesburg, South Africa. Tuesday, 30 April 2024. Harmony Gold
Mining Company Limited (Harmony or the Company) is pleased to report its
operational update for the nine months ended 31 March 2024 (9MFY24).
For this reporting period, Harmony continued delivering an excellent operating
performance across its operations, underpinned by higher recovered grades
at Mponeng, Moab Khotsong, Hidden Valley and Mine Waste Solutions.
The higher recovered grades ensured improved production and lower all-in
sustaining costs (AISC) compared to the previous nine-month period ended
31 March 2023 (9MFY23). The higher rand gold price continues to provide
Harmony with significant tailwinds, boosting margins and free cash flow
generation. Harmony continues to demonstrate operational consistency as
a result of its structural advantage and position as a leader in South African
gold mining.
While the third quarter is traditionally slower due to the January start up
and public holidays in March, this is in the plans and we remain on track to
comfortably beat our original production, cost and grade guidance for the
financial year 2024 (FY24). On the back of this and the strong year-to-date
performance, guidance for FY24 has been revised as follows:
- Total production guidance increased to approximately 1 550 000 ounces
from 1 380 000 to 1 480 000 ounces
- All-in sustaining cost guidance reduced to approximately R920 000/kg, from
below R975 000/kg
- Grade guidance increased to approximately 6g/t, from 5.6 to 5.75g/t
- Capital guidance for FY24 is adjusted lower to R8 600 million
(US$459 million) from R9 500 million (US$507 million), mainly as a result of
lower plant and services capital.
A full comparison of quarter-on-quarter and year-on-year production metrics
is provided in the summary table below and in the operating tables which are
available in the booklet and on the website at http://www.harmony.co.za.
Average recovered grades at the South African underground operations
increased by 8% to 6.16g/t from 5.68g/t in the previous reporting period. Our
high-grade underground operations, Mponeng and Moab Khotsong, continue
to be the primary drivers behind the improvement in underground recovered
grades year to date. Underground recovered grades at these mines increased
by 18% to 8.90g/t from 7.53g/t year-on-year and we expect the good grades
at Mponeng to be sustained as we mine through the high-grade areas on the
123 and 126 levels. We are encouraged that development grades at Mponeng
also continue to trend higher.
At our South African optimised underground portfolio, recovered grades
increased by 2% to 4.96g/t from 4.87g/t, driven by improved performances at
Tshepong North, Tshepong South, Kusasalethu and Target 1.
Recovered grades at Hidden Valley remained high into the third quarter of the
2024 financial year, increasing by 65% to 1.65g/t from 1.00g/t in the previous
nine-month reporting period as we mined through the high-grade 'Big Red'
part of the ore body. Going forward, recovered grades at Hidden Valley will be
lower as we are now mining through lower-grade areas, as planned.
At our South African surface operations, recovered grades increased by 29%
to 0.22g/t from 0.17g/t. This was mainly due to a 41% increase in recovered
grades at Mine Waste Solutions to 0.168g/t from 0.119g/t.
Group gold production in 9MFY24 increased by 10% to 36 777kg
(1 182 405oz) from 33 349kg (1 072 195oz) in the previous reporting period.
Most of our operations continue to deliver an improved operating performance
year-on-year and we have good momentum and flexibility heading into the final
quarter of FY24.
The rand gold price remains high and increased by 17% to R1 162 048/kg
(US$1 928/oz) from R992 566/kg (US$1 768/oz) year-on-year. This has allowed
us to further strengthen the balance sheet which remains robust as a result
of the strong free cash flow generation. Net cash increased to R1 544 million
(US$82 million) from R74 million (US$4 million) at the end of the first six
months of this financial year (H1FY24). We currently have R11 591 million
(US$612 million(1)) in headroom available through cash and undrawn facilities.
(1) Converted at an exchange rate of R/US$18.94
Gold revenue increased by 26% to R42 397 million (US$2 262 million) in
9MFY24 from R33 539 million (US$1 921 million) for 9MFY23.
Silver production from Hidden Valley increased by 61% to 85 371kg
(2 744 728oz) from 53 003kg (1 704 070oz) in 9MFY23. The average
silver price received also increased by 21% to R14 147/kg (US$23.47/oz)
from R11 723/kg (US$19.45/oz) in 9MFY23. As a result, we generated
R1 197 million (US$64 million) in silver revenue at Hidden Valley for this
reporting period.
Uranium is a by-product from the gold extraction process at Moab Khotsong.
Uranium production increased by 28% to 203 334kg (448 274lb) in 9MFY24
from 159 122kg (350 804lb) in 9MFY23. Uranium sold increased by 21% to
160 118kg (353 000lb) from 132 449kg (292 000lb). The average uranium
price received has increased by 43% to US$65.74/lb from US$45.97/lb in
9MFY23, resulting in uranium revenue of R435 million (US$23 million) for the
nine-month period. Uranium sales of 73 049kg (161 000lb) was not realised
within the quarter due to export challenges. This will be realised during the
fourth quarter.
Cost control remains of critical importance, especially as gold prices continue
rising to record levels. While our cost metrics per unit have remained steady
in rand terms, we have seen a meaningful improvement in US dollar terms
as a result of the weaker rand. Over 90% of our input costs are in rand, with
electricity and labour comprising roughly 70% of our operating costs. Further
cost improvement has been on the back of sustained higher by-product credits
from silver and uranium.
- Cash operating costs increased by only 1% to R747 669/kg (US$1 241/oz)
from R742 145/kg (US$1 322/oz)
- All-in sustaining costs decreased by 2% to R877 965/kg (US$1 457/oz)
from R893 985/kg (US$1 592/oz)
- All-in costs (AIC) were flat in rand at R942 150/kg (US$1 563/oz) from
R939 547/kg (US$1 674/oz)
Group operating free cash flows increased by 171% in the 9MFY24 to
R8 774 million (US$468 million) from R3 237 million (US$186 million) in
9MFY23. Group operating free cash flow margins increased to 21% in this
reporting period from 10% in the previous nine-month reporting period,
driven mainly by operating free cash flows at our South African high-grade
underground mines, Hidden Valley and South African surface operations.
Operating free cash flow margins from our South African optimised portfolio, or
legacy assets, improved to 8% from 5%. Harmony has significantly improved
the quality of its portfolio and will continue allocating capital in a manner that
drives further margin expansion and higher returns.
We have a comprehensive project pipeline and remain on track with our
key projects that are in execution. These include the tailings storage facility
expansion at Mine Waste Solutions, on track for completion in FY25, and
the life of mine extension project at Moab Khotsong. At Mponeng, we have
commenced preparatory work to ensure the timeous start of the life of mine
extension project in July 2024. This project extends the life of mine
at Mponeng to 20 years, adding approximately 2.3Moz to Mineral Reserves.
Major capital for the extension of Mponeng is planned at R7.9 billion over
the life of the project. As previously guided, this project will result in an
approximately R1 billion (US$53 million) in additional capital expenditure both
in FY25 and FY26. The Company does not provide capital guidance beyond
two years.
Our projects are well-sequenced to ensure capital expenditure remains
affordable, with all existing project capital internally funded. Our robust balance
sheet and effective hedge programme provide further support should there be
an adverse movement in the gold price.
Safety, effective cost management and delivering operational excellence
across all our operations go hand-in hand. A proactive safety culture and
operational excellence have resulted in the continued improvement in our
safety performance.
HEALTH AND SAFETY
Long-term safety indicators continue to trend in the right direction and we
remain encouraged by the remarkable improvement in safety over the past
few years. We continue working tirelessly to improve safety as we embed a
proactive safety culture throughout Harmony.
There has been a slight regression in the group LTIFR for 9MFY24 to
5.60 per million hours worked, from 5.50 in 9MFY23. This was a result
of an increase in the less severe agencies such as slip-and-fall. Accidents
from traditional high-energy agencies such as fall-of-ground and rail-bound
equipment continue trending lower.
We extend our heartfelt condolences to the family of Mr Santos Ernesto
Uenzane, Mine Overseer at Mponeng, who tragically lost his life from a heat-
related incident on 4 January 2024 during the pre-start up inspection after the
December 2023 break.
Each life lost reminds us that we can never be complacent and more needs to
done as we continue our relentless pursuit of achieving zero loss of life.
We continue to deliver pro-active and holistic healthcare to all our employees
ensuring their health and well-being.
STABLE LABOUR RELATIONS - FIVE-YEAR WAGE AGREEMENT CONCLUDED
On 4 April 2024, Harmony concluded a landmark five-year wage agreement
in respect of increases to wages and other conditions of service at its South
African operations with its five labour unions, being the Coalition (comprising
the NUM, UASA and Solidarity), AMCU and NUMSA. The agreement is for
the period 1 July 2024 to 30 June 2029, and will take effect on 1 July 2024.
This is testimony to the strength of our labour relations and ensures stability
and continued certainty on our fixed labour costs for the next five years. The
wage negotiations were carried out in good faith and Harmony commends
all parties for demonstrating good leadership by engaging constructively. This
agreement will result in an increase in South African operations labour costs
of approximately 6% per annum over the five-year period which is within
Harmony's planning parameters.
As part of our endeavours to create long-term value for all our stakeholders,
including our employees and host communities, on 11 December 2023, the Company
proposed two broad-based black economic empowerment (B-BBEE) transactions involving:
- the specific issue of no par value convertible preference shares by Harmony
to the trustees for the time being, of the Harmony Gold Community Trust;
and
- the specific issue of no par value ordinary shares by Harmony to the trustees
for the time being, of the Harmony Employee Share Ownership Plan Trust
for the benefit of Eligible Employees.
These transactions create shared value and strengthen partnerships as we
grow our business and develop thriving communities where we operate.
EVA COPPER PROJECT: INTERIM UPDATE
ON FEASIBILITY STUDY AIMED AT DE-RISKING
THE PROJECT
The Eva Copper Project (the Project), located in the tier 1 mining jurisdiction
of north-west Queensland, Australia, was acquired by Harmony in December
2022. It brings the potential for near-term, low-cost copper production into
the Harmony production profile, providing the Company with counter-cyclical
diversification in what has historically been a pure gold portfolio.
Since acquisition, Harmony has been conducting a robust, risk-based and
rigorous feasibility study assessment of Eva Copper. Our focus has been on
increasing confidence in the resource and completing further technical and
economic trade-off analysis to identify, inform and confirm the preferred option
for project development. These studies underpin achieving a high-quality, and
sustainable mining operation.
An extensive resource drilling programme was initiated in March 2023 and is
ongoing, with over 70 000 metres drilled to date. The drilling has:
a. added to the Project's resource base and increased confidence in, and
understanding of the project area's geology, geohydrology, metallurgy and
geotechnical composition
b. demonstrated good prospectivity including potential for life of
mine extension
Drilling continues in parallel with Project definition to expand the existing
resource base and to convert other deposits in Harmony's tenement area.
Harmony has significantly increased the copper and gold Mineral Resource
since acquisition. Our current declared Mineral Resource for Eva Copper sits
at 354Mt @ 0.42% Cu for 1 492Kt of copper and 184Mt @ 0.07g/t Au for
431Koz of gold. This is a significant increase over the previous owners Resource of
307Mt @ 0.42% Cu for 1 289Kt of copper and 148Mt @ 0.08g/t Au for 379Koz of gold.
Please refer to our Mineral Resources and Mineral Reserves statement as at
30 June 2023 (FY23).
Life-of-mine all-in-sustaining cost is anticipated to be in the second quartile of
the industry cost curve, ensuring Harmony as a group continues to reduce its
overall costs.
Detailed technical and commercial work to inform the preferred power solution
for the Project continues. To help Harmony achieve its ambition of being
net carbon zero by 2045, renewables have been included in the proposed
energy mix in anticipation of future grid connection as part of the Queensland
Government's CopperString project. CopperString is the largest ever economic
development project in North Queensland and aims to connect the State's
north-west minerals province to the national electricity grid by 2029.
Determining a sustainable primary water supply for the Project has required an
extensive programme of drilling, pump test work, and modelling that is due
for completion by the end of the 2024 calendar year. The Study has indicated
a potential water source on the Mining Lease that may support a proposed
increased processing rate and production profile at Eva Copper.
Eva Copper will be a conventional open-cut mine comprising multiple pits with
a low strip ratio, mined in a select sequence, feeding a copper concentrator
based on a proven processing flow sheet and technology selection. The ore
bodies at Eva Copper are wide and predictable while a modern plant design
and conventional technology will ensure low production ramp-up risk.
Based on the extensive work done to date, it is anticipated that the processing
facility will have greater capacity than indicated by the Project's previous
owner. Along with the effect of scope change and inflationary impacts since
acquisition, the Project will require a higher capital investment than what was
anticipated in the previous owner's feasibility study.
Capital cost estimates and funding models for the Project will be prepared as
part of the Feasibility Study which will be used to inform a reserve declaration.
The Project provides an excellent platform for growth, encompassing
a tenement package in excess of 2 400 square kilometres in a highly
prospective, world-class mining jurisdiction with supporting infrastructure.
Pending a positive feasibility study outcome, permitting and board approval,
Harmony is confident it will be in a strong position to fund the construction of
this mine in a manner that continues to create long-term value and is in the
best interest of all shareholders and stakeholders. Development is likely to be
funded through a combination of strong operating free cash flows, corporate
debt, leveraging our strong balance sheet and supported by our effective
hedge strategy.
Permitting
Sustainability is embedded in our operating model, and Harmony has proven
itself as the partner of choice wherever we operate. The Project has a current
Environmental Authority in place in support of development. However, based
on work done to date and noted above, the Environmental Authority will
require permit amendments in terms of the proposed power and water solution
and project configuration based on the anticipated feasibility study outcomes.
The Queensland Government's recent declaration of Eva Copper as a
'Prescribed Project', designating the Project as one of economic and social
significance to the State, will streamline the permit amendment process and
assist in expediting outcomes specifically as it relates to amendments to the
current Environmental Authority in place for the Project, which are required
to accommodate the optimised design outlined above. It is anticipated that
this process could take up to 18 months. A Final Investment Decision on the
project will therefore only be considered once all approvals have been obtained
- likely towards the end of the calendar year 2025.
In addition to ongoing feasibility study work, some initial site preparatory
works have been commissioned and will continue in the coming months to
improve and de-risk access to the site, support and de-risk current drilling
efforts on site, and prepare the site for the construction phase.
The proposed works include site access roads, temporary accommodation
facilities and associated services and infrastructure, fencing and lay down
areas. Capital for this is expected to be not material and will be easily funded
through existing cash flows.
HEDGING UPDATE
During the quarter, the gold hedge book was maintained at 20% of two years'
expected gold production. The average forward rand gold price on the hedge
book is at R1 299 000/kg on a net position of 570 000oz at the end of the
third quarter. Harmony will only hedge when it is certain that it can achieve a
minimum margin of 25% above AISC and inflation. The previous policy was to
hedge up to 20% of our production over a rolling two-year period. However,
due to the pipeline of projects and higher capital expenditure, we have
received board approval to increase the size and the term of the hedge book.
The rolling gold hedge book programme has been increased as follows:
- Year 1: percentage hedge cover increased by 10% to 30% of production
- Year 2: hedge cover unchanged at 20%
- Year 3: percentage hedge cover of 10% from zero
We remain fully exposed to spot gold prices for the unhedged production.
CONCLUSION
The excellent operating results in this reporting period have been a function of
our ongoing investment in safety, quality ounces and operational excellence.
This ensures consistent delivery throughout the gold cycle. Harmony remains
well-positioned to take advantage of the current high gold prices and we are
prudent with our allocation of capital to ensure long-term value creation.
Our costs remain under control, and being a predominantly South African
gold miner is proving advantageous due to our stable and predictable rand
cost structure.
The improvement in safety and operational flexibility alongside effective capital
allocation assures the consistent delivery of the tonnes alongside higher-
quality ounces, thereby generating positive free cash flows.
With our substantial Mineral Resource base of almost 140 million ounces,
Harmony offers an abundance of opportunity to grow our Mineral Reserves
while diversifying into copper. We continue to invest in our ore bodies,
converting resources into quality reserves and production through our
organic project pipeline. Value accretive acquisitions form part of our
strategy and we continue to look at growth opportunities in Africa, South
East Asia and Australia.
Holistic sustainability requires fundamental changes at all levels of social,
economic, political and cultural structures. Sustainable mining ensures we
always meet the needs and aspirations of both present and future generations
in a clear socio-economic, historic and environmental context by delivering
on our four strategic pillars namely, Responsible Stewardship, Operational
Excellence, Cash Certainty and Effective Capital Allocation. By embedding
sustainability in our operating model, Harmony contributes positively towards
the eradication of poverty, social injustice and inequalities wherever we
operate. This is Mining with Purpose.
Peter Steenkamp
Chief executive officer
COMPARATIVE OPERATIONAL METRICS FOR Q3FY24 VS Q3FY23 AND 9MFY24 VS 9MFY23
Q-on-q Y-on-Y
Unit Q3FY24 Q3FY23 (%) 9MFY24 9MFY23 (%)
Average gold price received R/kg 1 213 350 1 057 870 15 1 162 048 992 566 17
$/oz 2 000 1 854 8 1 928 1 768 9
Underground yield g/t 5.86 5.68 3 6.16 5.68 8
Gold produced total kg 10 888 10 540 3 36 777 33 349 10
oz 350 056 338 870 3 1 182 405 1 072 195 10
South African optimised underground(1) kg 4 269 4 291 (1) 14 576 14 839 (2)
oz 137 251 137 960 (1) 468 629 477 085 (2)
South African high-grade underground(2) kg 3 319 3 381 (2) 11 364 10 012 14
oz 106 708 108 701 (2) 365 360 321 892 14
South African surface(3) kg 2 260 1 917 18 6 786 5 564 22
oz 72 660 61 634 18 218 174 178 888 22
International (Hidden Valley) kg 1 040 951 9 4 051 2 934 38
oz 33 437 30 575 9 130 242 94 330 38
Total cash costs R/kg 823 880 749 411 (10) 747 669 742 145 (1)
$/oz 1 358 1 313 (3) 1 241 1 322 6
Group AISC R/kg 964 834 902 819 (7) 877 965 893 985 2
US$/oz 1 590 1 582 (1) 1 457 1 592 8
Group AIC R/kg 1 037 998 957 077 (9) 942 150 939 547 —
US$/oz 1 711 1 677 (2) 1 563 1 674 7
Average exchange rate R/US$ 18.87 17.75 6 18.75 17.46 7
(1) Tshepong South, Tshepong North, Target 1, Joel, Masimong, Doornkop and Kusasalethu
(2) Mponeng and Moab Khotsong
(3) Mine Waste Solutions, Phoenix, Central Plant, Savuka Tailings, Dumps and Kalgold
OPERATING RESULTS - QUARTER ON QUARTER (RAND/METRIC)
SOUTH AFRICA
UNDERGROUND PRODUCTION
Three TOTAL
months Moab Tshepong Tshepong UNDER-
ended Khotsong Mponeng North South Doornkop Joel Target 1 Kusasalethu Masimong GROUND
Ore milled/tailings t'000 Mar-24 186 213 163 96 201 86 107 138 105 1 295
processed Mar-23 213 209 189 117 214 93 71 122 122 1 350
Yield g/tonne Mar-24 7.95 8.64 4.42 6.65 4.37 4.09 4.39 6.01 3.61 5.86
Mar-23 7.23 8.81 3.81 6.68 4.18 4.54 3.58 6.48 3.52 5.68
Gold produced kg Mar-24 1 478 1 841 721 638 879 352 470 830 379 7 588
Mar-23 1 540 1 841 720 781 894 422 254 790 430 7 672
Gold sold kg Mar-24 1 372 1 647 688 609 809 336 455 743 362 7 021
Mar-23 1 488 1 775 719 779 870 421 241 761 429 7 483
Gold price received R/kg Mar-24 1 241 065 1 235 812 1 229 208 1 229 966 1 223 902 1 234 554 1 229 549 1 227 721 1 227 182 1 232 545
Mar-23 1 071 331 1 076 278 1 072 042 1 074 167 1 069 554 1 069 964 1 070 602 1 071 378 1 073 268 1 072 677
Gold revenue(1) R'000 Mar-24 1 702 741 2 035 382 845 695 749 049 990 137 414 810 559 445 912 197 444 240 8 653 696
Mar-23 1 594 140 1 910 394 770 798 836 776 930 512 450 455 258 015 815 319 460 432 8 026 841
Cash operating cost R'000 Mar-24 1 288 712 1 337 990 680 937 606 239 733 755 392 645 575 423 892 802 461 087 6 969 590
(net of by-product credits) Mar-23 991 628 1 132 512 638 589 570 908 733 545 381 549 492 279 769 345 411 601 6 121 956
Inventory movement R'000 Mar-24 (153 664) (179 998) (34 853) (24 846) (56 065) (15 134) (11 061) (81 392) (17 130) (574 143)
Mar-23 (15 349) (53 397) (3 348) (6 140) (31 954) (1 313) (16 626) (19 101) 303 (146 925)
Operating costs R'000 Mar-24 1 135 048 1 157 992 646 084 581 393 677 690 377 511 564 362 811 410 443 957 6 395 447
Mar-23 976 279 1 079 115 635 241 564 768 701 591 380 236 475 653 750 244 411 904 5 975 031
Production profit R'000 Mar-24 567 693 877 390 199 611 167 656 312 447 37 299 (4 917) 100 787 283 2 258 249
Mar-23 617 861 831 279 135 557 272 008 228 921 70 219 (217 638) 65 075 48 528 2 051 810
Capital expenditure R'000 Mar-24 356 661 212 881 130 998 130 454 151 432 39 455 109 675 48 006 7 093 1 186 655
Mar-23 295 494 142 118 122 168 128 067 162 668 46 121 88 212 69 294 13 283 1 067 425
Cash operating costs R/kg Mar-24 871 930 726 773 944 434 950 218 834 761 1 115 469 1 224 304 1 075 665 1 216 588 918 502
Mar-23 643 914 615 161 886 929 730 996 820 520 904 145 1 938 106 973 854 957 212 797 961
Cash operating costs R/tonne Mar-24 6 929 6 282 4 178 6 315 3 651 4 566 5 378 6 470 4 391 5 382
Mar-23 4 656 5 419 3 379 4 880 3 428 4 103 6 934 6 306 3 374 4 535
Cash operating cost R/kg Mar-24 1 113 243 842 407 1 126 123 1 154 691 1 007 039 1 227 557 1 457 655 1 133 504 1 235 303 1 074 887
and Capital Mar-23 835 794 692 357 1 056 607 894 974 1 002 475 1 013 436 2 285 398 1 061 568 988 102 937 093
All-in sustaining cost R/kg Mar-24 952 470 840 030 1 150 055 1 156 166 988 550 1 279 119 1 510 555 1 190 000 1 312 797 1 062 795
Mar-23 779 997 708 473 1 063 724 883 905 933 088 1 037 403 2 353 259 1 105 986 1 039 411 932 084
Operating free cash flow % Mar-24 3% 24% 4% 2% 11% (4)% (22)% (3)% (5)% 6%
margin(2) Mar-23 19% 33% 1% 16% 4% 5% (125)% (3)% 8% 10%
SOUTH AFRICA
SURFACE PRODUCTION
Three Mine Central TOTAL
months Waste Plant Savuka TOTAL SOUTH Hidden TOTAL
ended Solutions Phoenix Reclamation Tailings Dumps Kalgold SURFACE AFRICA Valley HARMONY
Ore milled/tailings t'000 Mar-24 5 385 1 525 955 1 006 1 105 353 10 329 11 624 754 12 378
processed Mar-23 5 432 1 518 971 960 939 348 10 168 11 518 944 12 462
Yield g/tonne Mar-24 0.170 0.145 0.158 0.154 0.444 0.92 0.22 0.85 1.38 0.88
Mar-23 0.124 0.138 0.148 0.163 0.469 0.84 0.19 0.83 1.01 0.85
Gold produced kg Mar-24 918 221 151 155 491 324 2 260 9 848 1 040 10 888
Mar-23 675 210 144 156 440 292 1 917 9 589 951 10 540
Gold sold kg Mar-24 939 204 156 156 492 335 2 282 9 303 1 097 10 400
Mar-23 683 209 147 152 427 296 1 914 9 397 938 10 335
Gold price received R/kg Mar-24 1 002 645 1 258 525 1 232 878 1 231 667 1 225 390 1 226 069 1 137 738 1 209 289 1 247 789 1 213 350
Mar-23 867 694 1 080 167 1 066 878 1 068 829 1 064 012 1 066 277 996 674 1 057 196 1 064 616 1 057 870
Gold revenue(1) R'000 Mar-24 1 014 675 256 739 192 329 192 140 602 892 410 733 2 669 508 11 323 204 1 368 824 12 692 028
Mar-23 666 231 225 755 156 831 162 462 454 333 315 618 1 981 230 10 008 071 998 610 11 006 681
Cash operating cost R'000 Mar-24 501 486 137 418 87 042 83 767 352 921 247 933 1 410 567 8 380 157 590 248 8 970 405
(net of by-product
Mar-23 124 088 80 999 79 406 310 533 231 697 1 257 206 7 379 162 519 628 7 898 790
credits) 430 483
Inventory movement R'000 Mar-24 4 089 (11 451) 2 546 1 205 3 688 2 076 2 153 (571 990) (76 888) (648 878)
Mar-23 6 481 16 1 273 (1 271) (22 836) 1 057 (15 280) (162 205) (22 125) (184 330)
Operating costs R'000 Mar-24 505 575 125 967 89 588 84 972 356 609 250 009 1 412 720 7 808 167 513 360 8 321 527
Mar-23 436 964 124 104 82 272 78 135 287 697 232 754 1 241 926 7 216 957 497 503 7 714 460
Production profit R'000 Mar-24 509 100 130 772 102 741 107 168 246 283 160 724 1 256 788 3 515 037 855 464 4 370 501
Mar-23 229 267 101 651 74 559 84 327 166 636 82 864 739 304 2 791 114 501 107 3 292 221
Capital expenditure R'000 Mar-24 256 143 3 758 2 391 6 060 375 47 874 316 601 1 503 256 497 961 2 001 217
Mar-23 239 717 4 172 13 463 1 107 3 845 36 481 298 785 1 366 210 413 701 1 779 911
Cash operating costs R/kg Mar-24 546 281 621 801 576 437 540 432 718 780 765 225 624 145 850 950 567 546 823 880
Mar-23 637 753 590 895 562 493 509 013 705 757 793 483 655 820 769 544 546 402 749 411
Cash operating costs R/tonne Mar-24 93 90 91 83 319 702 137 721 783 725
Mar-23 79 82 83 83 331 666 124 641 550 634
Cash operating cost R/kg Mar-24 825 304 638 805 592 272 579 529 719 544 912 985 764 234 1 003 596 1 046 355 1 007 680
and Capital Mar-23 992 889 610 762 655 986 516 109 714 495 918 418 811 680 912 021 981 419 918 283
All-in sustaining cost R/kg Mar-24 578 518 645 545 594 174 583 538 725 577 909 102 666 159 962 439 985 141 964 834
Mar-23 686 025 620 366 664 468 521 329 682 768 930 707 701 234 883 876 1 092 642 902 819
Operating free cash flow % Mar-24 20% 45% 53% 53% 41% 25% 33% 12% 22% 13%
margin(2) Mar-23 (13)% 43% 40% 50% 31% 16% 19% 12% 10% 12%
(1) Includes a non-cash consideration to Franco-Nevada (Mar-24:R73.191m, Mar-23:R73.596m) under Mine Waste Solutions, excluded from the gold price calculation.
(2) Excludes run of mine costs for Kalgold (Mar-24:-R10.586m, Mar-23:R3.017m) and Hidden Valley (Mar-24:R24.876m, Mar-23:R30.246m).
DIRECTORATE AND ADMINISTRATION
HARMONY GOLD MINING COMPANY
LIMITED
Harmony Gold Mining Company Limited was
incorporated and registered as a public company in
South Africa on 25 August 1950
Registration number: 1950/038232/06
CORPORATE OFFICE
Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: http://www.harmony.co.za
DIRECTORS
Dr PT Motsepe* (chairman), KT Nondumo*^ (deputy
chairman), Dr M Msimang*^ (lead independent
director), PW Steenkamp (chief executive officer),
BP Lekubo (financial director), Dr HE Mashego
(executive director)
B Nqwababa*^, VP Pillay*^, MJ Prinsloo*^,
GR Sibiya*^, PL Turner*^, JL Wetton*^
* Non-executive
^ Independent
COMPANY SECRETARY
SS Mohatla
E-mail queries: companysecretariat@harmony.co.za
Telephone: +27 11 411 2359
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 6073 or +27 82 746 4120
TRANSFER SECRETARIES
JSE Investor Services (Proprietary) Limited
(Registration number 2000/007239/07)
19 Ameshoff Street, 13th Floor, Hollard House,
Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
E-mail: info@jseinvestorservices.co.za
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
AMERICAN DEPOSITARY RECEIPTS
American Depositary Receipts
Deutsche Bank Trust Company Americas
c/o Equiniti Trust Company LLC, Peck Slip Station,
PO Box 2050, New York, NY10271-2050
Email: db@astfinancial.com
Toll free (within US): (886) 249 2593
Int: +1 718 921 8137
Fax: +1 718 921 8334
SPONSOR
JP Morgan Equities South Africa Proprietary Limited
1 Fricker Road, corner Hurlingham Road, Illovo,
Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
TRADING SYMBOLS
ISIN: ZAE000015228
HARMONY'S ANNUAL REPORTS
Harmony's Integrated Annual Report, and its annual report filed on a Form 20F with the United States'
Securities and Exchange Commission for the financial year ended 30 June 2023, are available on our website
(http://www.harmony.co.za/invest).
FORWARD-LOOKING STATEMENTS
This booklet contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange
Act and Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), with respect to our financial condition,
results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services,
plans and objectives of management, markets for stock and other matters. These forward-looking statements, including, among
others, those relating to our future business prospects, revenues, and the potential benefit of acquisitions (including statements
regarding growth and cost savings) wherever they may occur in this booklet, are necessarily estimates reflecting the best judgment
of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from
those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered
in light of various important factors, including those set forth in our integrated annual report. By their nature, forward-looking
statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light
of various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on
such statements. Important factors that could cause actual results to differ materially from estimates or projections contained in
the forward-looking statements include, without limitation: overall economic and business conditions in South Africa, Papua New
Guinea, Australia and elsewhere; the impact from, and measures taken to address, Covid-19 and other contagious diseases, such
as HIV and tuberculosis; high and rising inflation, supply chain issues, volatile commodity costs and other inflationary pressures
exacerbated by the Russian invasion of Ukraine and subsequent sanctions; estimates of future earnings, and the sensitivity of
earnings to gold and other metals prices; estimates of future gold and other metals production and sales; estimates of future
cash costs; estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices; estimates of provision
for silicosis settlement; increasing regulation of environmental and sustainability matters such as greenhouse gas emission and
climate change, and the impact of climate change on our operations; estimates of future tax liabilities under the Carbon Tax Act
(South Africa); statements regarding future debt repayments; estimates of future capital expenditures; the success of our business
strategy, exploration and development activities and other initiatives; future financial position, plans, strategies, objectives,
capital expenditures, projected costs and anticipated cost savings and financing plans; estimates of reserves statements regarding
future exploration results and the replacement of reserves; the ability to achieve anticipated efficiencies and other cost savings in
connection with past and future acquisitions, as well as at existing operations; fluctuations in the market price of gold and other
metals; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labour disruptions
related to industrial action or health and safety incidents; power cost increases as well as power stoppages, fluctuations and usage
constraints; ageing infrastructure, unplanned breakdowns and stoppages that may delay production, increase costs and industrial
accidents; supply chain shortages and increases in the prices of production imports and the availability, terms and deployment
of capital; our ability to hire and retain senior management, sufficiently technically-skilled employees, as well as our ability to
achieve sufficient representation of historically disadvantaged persons in management positions or sufficient gender diversity in
management positions or at Board level; our ability to comply with requirements that we operate in a sustainable manner and
provide benefits to affected communities; potential liabilities related to occupational health diseases; changes in government
regulation and the political environment, particularly tax and royalties, mining rights, health, safety, environmental regulation and
business ownership including any interpretation thereof; court decisions affecting the mining industry, including, without limitation,
regarding the interpretation of mining rights; our ability to protect our information technology and communication systems and
the personal data we retain; risks related to the failure of internal controls; our ability to meet our environmental, social and
corporate governance targets; the outcome of pending or future litigation or regulatory proceedings; fluctuations in exchange
rates and currency devaluations and other macroeconomic monetary policies, as well as the impact of South African exchange
control regulations; the adequacy of the Group's insurance coverage; any further downgrade of South Africa's credit rating and
socio-economic or political instability in South Africa, Papua New Guinea, Australia and other countries in which we operate;
changes in technical and economic assumptions underlying our mineral reserves estimates; geotechnical challenges due to the
ageing of certain mines and a trend toward mining deeper pits and more complex, often deeper underground, deposits; and
actual or alleged breach or breaches in governance processes, fraud, bribery or corruption at our operations that leads to censure,
penalties or negative reputational impacts.
The foregoing factors and others described under "Risk Factors" in our Integrated Annual Report (http://www.har.co.za) and our Form
20-F should not be construed as exhaustive. We undertake no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of
unanticipated events, except as required by law. All subsequent written or oral forward-looking statements attributable to Harmony
or any person acting on its behalf, are qualified by the cautionary statements herein.
The forward-looking financial information has not been reviewed and reported on by the company's auditors.
Johannesburg
30 April 2024
Date: 30-04-2024 02:06:00
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