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HARMONY GOLD MINING COMPANY LIMITED - Operational update for the nine months ended 31 March 2021
2021/05/11 08:30:00Download PDF Stock report
Operational update for the nine months ended 31 March 2021
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 2021
SIGNIFICANT JUMP IN EBITDA MARGIN TRANSLATES INTO STRONG CASH GENERATION
Johannesburg, South Africa. Tuesday, 11 May 2021. Harmony
Gold Mining Company Limited ('Harmony' or 'the Company') is
pleased to report its operational performance for the nine months ended
31 March 2021.
Harmony has delivered another strong set of operational results
year-on-year on the back of the successful integration of Mponeng and
related assets into its portfolio, and a stronger Rand per kilogram gold
price. The combination of a higher gold price received and improved
EBITDA margin has resulted in strong cash generation and further
strengthening of the Company's balance sheet. Growing the Company's
ounces and margins in a safe and capital-responsible manner will guide
each of its decisions as it continues to invest in both its people and
its assets.
With a sturdy balance sheet and astute capital decisions, Harmony is
well positioned for the next phase of its growth strategy. The Company
has a pipeline of cash-enhancing projects which will boost its cash flow
margins and sustain its production for many years to come. In addition,
the tier 1 Wafi-Golpu project offers both commodity and geographic
diversification, further transforming Harmony's portfolio as it focuses on
becoming a lower risk and higher margin business.
Harmony has a proven track record in sustaining communities, creating
jobs and unlocking significant value from assets well beyond their initial
life of mine. Environmental, Social and Governance ('ESG') practices are
embedded in how the Company operates and makes decisions to ensure
sustainable mining. Through its successful track record, Harmony has
become not only the South African gold mining champion, but also an
established player in Papua New Guinea.
Harmony has an exciting story to tell and a wealth of emerging market
experience. The combination of its existing asset portfolio, Wafi-Golpu
and other brownfield projects will allow the Company to build on its
copper-gold story while it continues to create value for all shareholders
and stakeholders.
NINE MONTHS OF THE FINANCIAL YEAR 2021 ('FY21') - KEY OPERATIONAL METRICS*
Nine Nine
Y-on-Y Y-on-Y months months
Unit move % FY21 FY20 Comments
Gold price R/kg Up 23.3 868 964 704 965 Higher US$ gold price and weaker Rand contributed to
a higher Rand gold price received
Underground yield g/t Up 2.6 5.54 5.40 Improved grade at Kusasalethu, as well as the
introduction of higher grades from Mponeng
Adjusted EBITDA# Rm Up 360 9 439 2 050 Increased due to an improved Rand gold price received
and higher average grade and production post
acquisition of Mponeng and related assets
Adjusted EBITDA margin % Up 241 31 9 Increased on the back of improved Rand gold price
received and higher margins received at Mponeng and
surface source operations
Gold produced total kg Up 13.5 34 969 30 814 Successful integration of Mponeng and related assets
and improved production year-on-year
oz Up 13.5 1 124 274 990 691
Production - South Africa kg Up 15.9 31 470 27 154 Successful integration of Mponeng and related assets
Production - Hidden Valley kg Down (4.4) 3 499 3 660 As a result of lower labour productivity due to
COVID-19 working roster and travel restrictions
All-in sustaining cost R/kg Up (15.8) 720 572 622 458 Higher royalties, unplanned COVID-19 related
('AISC') expenses and increased labour costs due to overtime.
Other expenses which contributed to higher costs
US$/oz Up (9.1) 1 416 1 298 were consumables and contractors while Target 1 also
contributed to an overall higher AISC
* The financial information has not been reviewed by the Company's Auditors
# The Company reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) and non-recurring events. For the reporting period, the non-recurring events include
the gain on bargain purchase and acquisition-related costs. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure
of performance under IFRS and should be considered in addition to and not as a substitute for other measures of financial performance and liquidity
SAFETY
It is with deep regret that Harmony reports that five of its employees lost
their lives in work-related incidents during the March 2021 quarter. The
Company sends its deepest condolences to the families and loved ones
of the colleagues who died. Zero loss of life remains the Company's
non-negotiable objective.
The Company continues to prioritise the safety of its employees. It is
continuously working to avoid any work-related injuries and continue
its safety journey as it focuses on a humanistic transformation at all its
operations. Through passionate leadership, resilient management systems,
effective risk management and organisational learning, it is developing
an engaged and interdependent workforce who display a proactive
relationship to safety.
Several notable milestones were recorded during the quarter:
- Kalgold achieved 3 750 000 fatality-free shifts
- Moab Khotsong, Doornkop and Mponeng mines each achieved
1 million fatality-free shifts
- Joel mine achieved 1 421 684 fatality-free shifts
Also see the Company's website at Harmony Safety for more information
on its safety initiatives and the incidents reported during the quarter.
Harmony remains committed to preventing the spread of COVID-19 and
mitigating the impact thereof, while still prioritising other healthcare
initiatives aimed at curbing occupational diseases and improving the
wellness of its employees.
ESG
Harmony continues to place a strong focus on its ESG initiatives as good
corporate citizens. As a result, the Company is pleased to announce
that MSCI has upgraded Harmony from a ‘CCC' to a ‘B' rating in the
March 2021 quarter, while it was once again included in the Bloomberg
Gender-Equality index for the third consecutive year. The latest FTSE4Good
ESG ratings revealed improved scores for Harmony, with the company
outperforming both the sub-sector average for gold mining companies
and the industry average for basic materials. These improved ratings are
testimony to its embedded approach to ESG and sustainability throughout
its entire business. In addition to its continuous environmental and social
obligations, the importance of governance cannot be overemphasised.
Harmony remains committed to operating ethically and honestly while
mining in a sustainable and impactful manner.
Harmony's virtual ESG Investor Day will be held on 22 June 2021, where
the Company plans to share more on its ESG initiatives with the market.
Details will be shared on the Company's website in due course.
PRODUCTION
Operating free cash flow for the nine months ended 31 March 2021
('the reporting period') was up 78% to R5 297 million (US$335 million)
compared to R2 970 million (US$199 million) for the previous nine-month
period ended 31 March 2020 ('the comparable period').
Operating free cash flow margin increased from 13% in the previous
comparable period to 18% for the reporting period on the back of:
- a 2.6% increase in underground grade to 5.54g/t (5.40g/t at the end
of March 2020)
- a 23% increase in gold price received to R868 964/kg from
R704 965/kg in the previous reporting period ended 31 March 2020
- US$/oz gold price received increased by 16% from US$1 470/oz to
US$1 708/oz
- the Rand weakened by 6% against the US$ from R14.91 to R15.82
year-on-year
- a 13.5% increase in production from 30 814kg (990 691oz) to
34 969kg (1 124 274oz)
The sequential increase year-on-year in production and free cash flow was
largely due to the successful integration of Mponeng and related assets
into its portfolio, as well as a higher R/kg gold price received.
Despite COVID-19 and the seasonal challenges typically faced in the third
quarter of FY21, the Company managed to catch up on its development
and production in the third quarter of FY21.
Quarter-on-quarter, production declined 12.2% from 13 425kg
(431 622oz) to 11 786kg (378 927oz). The decline in production was
predominantly as a result of an uncharacteristically slow start-up in January
2021 after the December 2020 break. COVID-19 compliance rules further
exacerbated the seasonal slow return post the holidays - especially as
it relates to employees returning through the South African borders and
COVID-19 hotspot areas.
At its Papua New Guinea operations, Hidden Valley was impacted by
COVID-19 and geotechnical stability of the eastern wall of the stage 6 pit
during the March 2021 quarter, which resulted in a decrease in the grade
of the ore. Despite this, Hidden Valley still managed a 15% increase in
average recovered grade to 1.41g/t in Q3 FY21 from 1.23g/t in Q2 FY21,
which resulted in a 16% increase in quarter-on-quarter gold production to
1 351kg (43 436oz) from 1 165kg (37 456oz).
Despite an increase in positive COVID-19 cases in Papua New Guinea,
gold production at Hidden Valley has continued and contingencies are in
place which seek to minimise disruption to the operation in the event of a
significant number of operational employees and/or contractors contracting
the virus. Production at the Hidden Valley mine in the June 2021 quarter
will be impacted by major fixed plant maintenance and repairs with a
mill re-lining taking place as well as a belt splice repair on the overland
conveyor.
ALL-IN SUSTAINING COST ('AISC')
Harmony's AISC for the reporting period increased by almost 16% to
R720 572/kg (US$1 416/oz) from R622 458/kg (US$1 298/oz). The primary
drivers behind this increase were again royalties on the back of an increase
in the Rand gold price and COVID-19 related costs, while the Company has
also seen an increase in costs relating to safety as it continues on its safety
transformation journey. The Company's safety costs were further impacted
by the increase in steel prices as it maintains and continues to install safety
steel netting at all of its mines to eliminate incidents due to seismicity
and fall of ground. Target 1 experienced pillar failure and backfill dilution
during the March 2021 quarter, which further weighed on the AISC for the
reporting period.
WAFI-GOLPU PROJECT
In December 2020, following a rigorous environmental impact assessment,
the Papua New Guinea Conservation and Environment Protection Authority
approved, and the Director of Environment issued the Environment Permit
for the Wafi-Golpu Project. The Environment Permit is required under the
Papua New Guinea Environment Act and is a prerequisite for the grant of a
Special Mining Lease under the Mining Act 1992.
Subsequently, the Governor of Morobe province and the Morobe Provincial
Government have commenced legal proceedings in the National Court
in Papua New Guinea seeking judicial review of the decision to issue the
Environmental Permit. The participants in the Wafi-Golpu Joint Venture
(WGJV) are not defendants to the proceedings.
The National Court is yet to hear and determine this judicial review
application. At this stage, project and permitting activities can still
progress. Harmony, together with its WGJV partner, Newcrest Mining
Limited, looks forward to re-engaging with the State of Papua New
Guinea and progressing discussions on the Special Mining Lease for the
Wafi-Golpu Project.
The Papua New Guinea government has indicated that Wafi-Golpu is a
project of national importance with the permitting thereof a priority.
HEDGING
The Company's hedging strategy is proving to be successful as its
approach to hedge more selectively supports stronger margins and cash
flows. The average forward Rand gold price on the hedge book has now
increased from R892 000/kg (US$1 889/oz) as at 31 December 2020 to
R936 000/kg (US$1 971/oz) as at 31 March 2021. Harmony will only
hedge when it is certain that it can achieve a minimum margin of 25%
above AISC and inflation. The Company will not hedge if it is not able to
lock-in the required margin. The improved performance of its hedge book
is also on the back of a weaker Rand gold price with approximately 15%
of its gold production currently hedged.
HEDGE POSITION AS AT 31 MARCH 2021
FY2021 FY2022 FY2023
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 TOTAL
Rand gold
Forward contracts koz 86 79 72 63 52 38 5 - 395
R'000/kg 790 863 933 1 022 1 070 1 084 1 025 - 936
Dollar gold
Forward contracts koz 12 12 12 11 10 9 6 - 72
$/oz 1 521 1 561 1 606 1 723 1 802 1 911 1 904 - 1 692
Total gold koz 98 91 84 74 62 47 11 - 467
Currency hedges
Rand dollar
Zero cost collars $m 61 47 42 27 - - - - 177
Floor R/$ 15.91 16.32 16.93 17.99 - - - - 16.56
Cap R/$ 17.28 17.90 18.54 19.65 - - - - 18.09
Forward contracts $m 12 9 9 8 - - - - 38
R/$ 16.93 18.18 18.41 18.71 - - - - 17.95
Total dollar $m 73 56 51 35 - - - - 215
Dollar silver
Zero cost collars koz 375 365 335 315 285 245 165 30 2 115
Floor $/oz 18.42 18.61 19.52 20.05 20.43 24.07 26.10 26.38 20.51
Cap $/oz 20.02 20.26 21.35 22.05 22.49 26.57 28.98 29.88 22.50
ANNUAL PRODUCTION, COST AND GRADE GUIDANCE
As a result of the major repair work and fixed plant maintenance at
Hidden Valley which occurred in the beginning of Q4 FY21, the Company
feels it prudent to make a small adjustment to its production guidance to
1.50Moz to 1.55Moz from its previous production guidance of 1.56Moz to
1.6Moz for FY21.
Harmony remains confident that it will achieve its underground grade
guidance of 5.47g/t to 5.64g/t and its overall cost guidance of
R700 000/kg to R720 000/kg for FY21.
BALANCE SHEET AND LIQUIDITY
Net debt/EBITDA remained flat quarter-on-quarter at 0.1 times. Harmony
repaid debt amounting to R833 million (US$56 million) during the
March 2021 quarter. Net debt increased by R373 million (US$24 million)
to R953 million (US$64 million) at 31 March 2021 (R580 million
(US$40 million) at 31 December 2020) as a result of lower operating
cash flow received due to the lower Rand gold price and seasonally lower
production exacerbated by compliance with COVID-19 requirements,
which impacted production and thus cash flow.
OPERATING RESULTS - NINE MONTHS ON NINE MONTHS (RAND/METRIC)
SOUTH AFRICA
UNDERGROUND PRODUCTION
Nine
months Moab Tshepong Total
ended Khotsong operations Mponeng Kusasalethu Doornkop Bambanani Masimong Target 1 Joel Unisel Underground
Ore milled - t'000 Mar-21 656 1 123 442 538 624 167 383 371 257 57 4 618
Mar-20 644 1 211 — 497 561 171 431 445 306 192 4 458
Yield - g/tonne Mar-21 8.36 4.77 7.83 5.75 4.27 8.84 3.97 3.38 3.98 4.33 5.54
Mar-20 8.77 5.10 — 4.83 4.34 10.68 4.06 4.02 3.87 4.43 5.40
Gold produced - kg Mar-21 5 486 5 358 3 459 3 095 2 663 1 477 1 520 1 255 1 022 247 25 582
Mar-20 5 646 6 180 — 2 400 2 435 1 827 1 751 1 789 1 185 851 24 064
Gold sold - kg Mar-21 5 461 5 262 3 250 3 069 2 630 1 453 1 494 1 274 1 005 242 25 140
Mar-20 5 875 6 268 — 2 501 2 492 1 852 1 775 1 813 1 202 861 24 639
Gold price received - R/kg Mar-21 868 317 862 411 920 517 870 183 874 219 873 290 826 924 890 027 867 458 925 979 874 123
Mar-20 711 606 708 239 — 710 827 714 900 709 628 676 132 672 331 707 239 676 473 703 969
Gold revenue(1) (R'000) Mar-21 4 741 880 4 538 005 2 991 680 2 670 593 2 299 195 1 268 890 1 235 425 1 133 894 871 795 224 087 21 975 444
Mar-20 4 180 686 4 439 241 — 1 777 779 1 781 530 1 314 231 1 200 135 1 218 936 850 101 582 443 17 345 082
Cash operating cost (net (R'000) Mar-21 2 864 447 3 646 124 1 891 369 2 232 842 1 601 328 866 356 1 074 876 1 234 973 838 601 178 154 16 429 070
of by-product credits) Mar-20 2 529 544 3 314 981 — 2 008 493 1 319 027 809 489 984 765 1 155 162 778 436 462 693 13 362 590
Inventory movement (R'000) Mar-21 8 075 (74 187) 3 675 (15 366) (20 782) (15 032) (22 126) 6 782 (12 864) 3 679 (138 146)
Mar-20 94 789 39 407 — 44 068 38 745 12 128 11 884 15 059 9 667 5 242 270 989
Operating costs (R'000) Mar-21 2 872 522 3 571 937 1 895 044 2 217 476 1 580 546 851 324 1 052 750 1 241 755 825 737 181 833 16 290 924
Mar-20 2 624 333 3 354 388 — 2 052 561 1 357 772 821 617 996 649 1 170 221 788 103 467 935 13 633 579
Production profit (R'000) Mar-21 1 869 358 966 068 1 096 636 453 117 718 649 417 566 182 675 (107 861) 46 058 42 254 5 684 520
Mar-20 1 556 353 1 084 853 — (274 782) 423 758 492 614 203 486 48 715 61 998 114 508 3 711 503
Capital expenditure (R'000) Mar-21 457 707 769 822 343 844 147 212 316 598 48 812 17 005 274 479 128 354 — 2 503 833
Mar-20 456 406 842 486 — 170 902 236 849 42 011 20 384 282 625 134 700 6 071 2 192 434
Cash operating costs - R/kg Mar-21 522 138 680 501 546 796 721 435 601 325 586 565 707 155 984 042 820 549 721 271 642 212
Mar-20 448 024 536 405 — 836 872 541 695 443 070 562 401 645 703 656 908 543 705 555 294
Cash operating costs - R/tonne Mar-21 4 367 3 247 4 279 4 150 2 566 5 188 2 806 3 329 3 263 3 126 3 558
Mar-20 3 928 2 737 — 4 041 2 351 4 734 2 285 2 596 2 544 2 410 2 997
Cash operating cost - R/kg Mar-21 605 569 824 178 646 202 769 000 720 213 619 613 718 343 1 202 751 946 140 721 271 740 087
and capital Mar-20 528 861 672 729 — 908 081 638 963 466 065 574 043 803 682 770 579 550 839 646 402
All-in sustaining cost - R/kg Mar-21 604 840 828 079 701 250 788 756 682 872 638 621 745 626 1 164 805 966 315 782 126 749 497
Mar-20 523 449 674 655 — 914 614 631 683 484 252 592 811 786 269 767 403 569 317 647 461
Operating free cash flow % Mar-21 30% 3% 25% 11% 17% 28% 12% (33%) (11%) 20% 14%
margin(2) Mar-20 29% 6% 0% (23%) 13% 35% 16% (18%) (7%) 20% 10%
(1) Includes a non-cash consideration to Franco-Nevada (Mar-21: R231.013m, Mar-20: R0m), excluded from the gold price calculation
(2) Excludes run-of-mine costs for Kalgold (Mar-21: -R2.703m, Mar-20: R0.982m) and Hidden Valley (Mar-21: -R16.974m, Mar-20: -R167.966m)
OPERATING RESULTS - NINE MONTHS ON NINE MONTHS (RAND/METRIC) continued
SOUTH AFRICA
SURFACE PRODUCTION
Nine TOTAL
months Mine Waste Central plant SOUTH Hidden TOTAL
ended Solutions Dumps Phoenix reclamation Kalgold Total Surface AFRICA Valley HARMONY
Ore milled - t'000 Mar-21 11 211 7 193 4 646 3 012 1 121 27 183 31 801 2 750 34 551
Mar-20 — 2 946 4 711 3 005 1 175 11 837 16 295 2 936 19 231
Yield - g/tonne Mar-21 0.122 0.373 0.126 0.141 0.74 0.22 0.99 1.27 1.01
Mar-20 — 0.363 0.131 0.160 0.79 0.26 1.67 1.25 1.60
Gold produced - kg Mar-21 1 372 2 681 587 424 824 5 888 31 470 3 499 34 969
Mar-20 — 1 068 618 480 924 3 090 27 154 3 660 30 814
Gold sold - kg Mar-21 1 340 2 623 580 426 827 5 796 30 936 3 513 34 449
Mar-20 — 1 091 628 483 930 3 132 27 771 3 798 31 569
Gold price received - R/kg Mar-21 747 663 887 894 806 409 869 277 878 695 844 639 868 599 872 186 868 964
Mar-20 — 715 927 685 495 710 725 709 814 707 208 704 334 709 583 704 965
Gold revenue(1) (R'000) Mar-21 1 232 882 2 328 947 467 717 370 312 726 681 5 126 539 27 101 983 3 063 988 30 165 971
Mar-20 — 781 076 430 491 343 280 660 127 2 214 974 19 560 056 2 694 998 22 255 054
Cash operating cost (net (R'000) Mar-21 679 806 1 501 537 294 182 205 096 577 660 3 258 281 19 687 351 1 290 907 20 978 258
of by-product credits) Mar-20 — 545 883 274 416 172 891 544 369 1 537 559 14 900 149 1 124 400 16 024 549
Inventory movement (R'000) Mar-21 90 468 15 342 (5 413) 415 865 101 677 (36 469) (10 398) (46 867)
Mar-20 — 5 092 4 884 1 744 1 727 13 447 284 436 (109) 284 327
Operating costs (R'000) Mar-21 770 274 1 516 879 288 769 205 511 578 525 3 359 958 19 650 882 1 280 509 20 931 391
Mar-20 — 550 975 279 300 174 635 546 096 1 551 006 15 184 585 1 124 291 16 308 876
Production profit (R'000) Mar-21 462 608 812 068 178 948 164 801 148 156 1 766 581 7 451 101 1 783 479 9 234 580
Mar-20 — 230 101 151 191 168 645 114 031 663 968 4 375 471 1 570 707 5 946 178
Capital expenditure (R'000) Mar-21 49 580 30 463 1 163 10 591 144 501 236 298 2 740 131 899 463 3 639 594
Mar-20 — 1 359 3 210 5 272 46 023 55 864 2 248 298 845 000 3 093 298
Cash operating costs - R/kg Mar-21 495 485 560 066 501 162 483 717 701 044 553 377 625 591 368 936 599 910
Mar-20 — 511 126 444 039 360 190 589 144 497 592 548 728 307 213 520 041
Cash operating costs - R/tonne Mar-21 61 209 63 68 515 120 619 469 607
Mar-20 — 185 58 58 463 130 914 383 833
Cash operating cost - R/kg Mar-21 531 622 571 429 503 143 508 696 876 409 593 509 712 662 625 999 703 991
and capital Mar-20 — 512 399 449 233 371 173 638 952 515 671 631 526 538 087 620 427
All-in sustaining cost - R/kg Mar-21 622 149 589 913 500 945 507 282 894 631 625 868 726 100 671 901 720 572
Mar-20 — 506 264 449 857 369 068 652 848 517 322 632 406 549 724 622 458
Operating free cash flow % Mar-21 22% 34% 37% 42% 0% 27% 16% 28% 18%
margin(2) Mar-20 0% 30% 36% 48% 11% 28% 12% 21% 13%
(1) Includes a non-cash consideration to Franco-Nevada (Mar-21: R231.013m, Mar-20: R0m), excluded from the gold price calculation
(2) Excludes run-of-mine costs for Kalgold (Mar-21: -R2.703m, Mar-20: R0.982m) and Hidden Valley (Mar-21: -R16.974m, Mar-20: -R167.966m)
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: www.harmony.co.za
DIRECTORS
Dr PT Motsepe* (chairman), JM Motloba* (deputy chairman),
M Msimang*^ (lead independent director), PW Steenkamp
(chief executive officer), BP Lekubo (financial director), HE Mashego
(executive director)
JA Chissano*^#, FFT De Buck*^, Dr DSS Lushaba*^, KT Nondumo*^,
VP Pillay*^, GR Sibiya*^, P Turner*^, JL Wetton*^, AJ Wilkens*
* Non-executive
^ Independent
# Mozambican
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 2314 or +27 82 759 1775
Website: www.harmony.co.za
COMPANY SECRETARIAT
Telephone: +27 11 411 2359
E-mail: companysecretariat@harmony.co.za
TRANSFER SECRETARIES
JSE Investor Services (Proprietary) Limited
(Registration number 2000/007239/07)
19 Ameshoff Street, 13th Floor, Hollard Building, Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 861 546 572
E-mail: info@jseinvestorservices.co.za
Fax: +27 86 674 4381
ADR* DEPOSITARY
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Operations Centre, 6201 15th Avenue, Brooklyn, NY 11219, United States
E-mail queries: db@astfinancial.com
Toll free (within the US): +1-886-249-2593
Int: +1 718 921 8137
Fax: +1 718 921 8334
*ADR: American Depositary Receipts
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: ZAE 000015228
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 2020, are available on our website
(www.harmony.co.za/invest).
FORWARD-LOOKING STATEMENTS
This presentation 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 presentation and the exhibits to this presentation, 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. 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; impact of COVID-19
on our operational and financial estimates and results; estimates of future
earnings, and the sensitivity of earnings to the prices of gold and other metals;
estimates of future production and sales for gold and other metals; estimates
of future cash costs; estimates of future cash flows, and the sensitivity of
cash flows to the prices of gold and other metals; estimates of provision
for silicosis settlement; estimates of future tax liabilities under the Carbon
Tax Act; 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; 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; 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;
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; the outcome of pending
or future litigation or regulatory proceedings; fluctuations in exchange rates
and currency devaluations and other macroeconomic monetary policies; the
adequacy of the Company's insurance coverage; any further downgrade of South
Africa's credit rating and socio-economic or political instability in South Africa,
Papua New Guinea and other countries in which we operate.
The foregoing factors and others described under 'Risk Factors' in our
Integrated Annual Report (www.harmony.co.za) and our Form 20F 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.
Johannesburg
11 May 2021
Date: 11-05-2021 08:30:00
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