Blueprint
UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
Form 6-K
REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR
15d-16 UNDER THE SECURITIES
EXCHANGE ACT OF
1934
For February 12,
2019
Harmony Gold Mining Company
Limited
Randfontein
Office Park
Corner Main Reef
Road and Ward Avenue
Randfontein,
1759
South
Africa
(Address of principal executive
offices)
*-
(Indicate by
check mark whether the registrant files or will file annual reports
under cover of Form 20- F or Form 40-F.)
(Indicate by
check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.)
HARMONY’S
INVESTMENT STRATEGY BOOSTS CASH FLOWS
Overview of
operating and financial performance for the six months ended
31 December 2018
●
Improved safety performance
– best ever quarterly lost time injury frequency rate
(“LTIFR”) of 4.84 achieved by the South African
operations in the December 2018 quarter
●
7% increase in underground
recovered grade to 5.65g/t
●
34% increase in production
– boosted by full six months of Moab Khotsong and Hidden
Valley production
●
R1.1 billion (US$81 million)
operational free cash flow1 generated by
operations (more than 100% increase)
●
Net debt reduced by R333
million (US$39 million) to R4.6 billion (US$317
million)
●
Wafi-Golpu memorandum of
understanding agreement signed – key to progressing the grant
of the special mining lease
Johannesburg,
Tuesday, 12 February 2019. Harmony Gold Mining Company Limited
(“Harmony” and/or “the Company”) is pleased
to announce that the inclusion of Moab Khotsong and Hidden Valley
in our asset portfolio has boosted the company’s production
and cash flow in the first half of the 2019 financial year
(“H1FY19”), demonstrating the quality of these assets
in line with our investment strategy.
“We remain
committed to our strategy of producing safe, profitable ounces and
increasing our margins to ensure our operations benefit from the
positive sentiment in the gold market. We have seen an improvement
at our mines in terms of our safety performance and the group is on
track to achieving annual production guidance of 1.45 million
ounces of gold in FY19,” said Peter Steenkamp, chief
executive officer of Harmony.
The production
profit 2
for H1FY19 was 25% higher at R3 385 million (US$239 million),
compared to R2 712 million (US$203 million) for the comparative six
month period ended 31 December 2017
(“H1FY18”).
Operational free
cash flow increased by more than 100% to R1.1 billion(US$81
million) for the same period.
Depreciation is
higher in the December 2018 six months owing mainly to Hidden
Valley’s return to full production which contributed R896
million (US$63 million) of the increase.
The weakening in
the average exchange rate from R/$13.40 in H1FY18 to R/$14.17 in
H1FY19 resulted in a translation loss of R180 million on the US
denominated debt compared to a translation gain of R196 million
recorded in the previous comparable period. Gains on derivatives
were R20 million (US$1 million) compared to R337 million (US$25
million) in H1FY18.
Earnings per
share (“EPS”) have decreased to 15 South African cents
per share, which is 93% lower than the 203 South African cents per
share reported for the previous comparable period. In US dollar
terms, EPS are 1 US cents per share, which is 93% lower than
H1FY18.
Net debt
decreased to R4 575 million (US$317 million) at the end of December
2018 from R4 908 million (US$356 million) at the end of June
2018.
Our all-in
sustaining unit cost guidance for FY19 has been adjusted to a range
of between R520 000 /kg and R530 000/kg.
Harmony’s
interim results for the six months ended 31 December 2018 are
available on the company’s corporate website: www.harmony.co.za.
1 Production profit as
per operating results (revenue less production cost).
2 Operational free
cash flow as per operating results (production profit less capital
expenditure and excludes gold inventory and stockpile (run of mine)
movements).
For more details
contact:
Lauren
Fourie
Investor
Relations Manager
+27(0)71 607 1498
(mobile)
Marian van der
Walt
Executive:
Investor Relations
+27(0)82 888 1242
(mobile)
Johannesburg,
South Africa
12 February
2019
Sponsor:
J.P. Morgan
Equities South Africa Proprietary Limited
Ends.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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Harmony Gold Mining Company
Limited
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Date: February 12,
2019
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By:
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/s/ Frank Abbott
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Name
Frank
Abbott
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Title
Financial
Director
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