Our Integrated Annual Report 2016 tells the story of Harmony Gold Mining Company Limited (Harmony) for our 2016 financial year (FY16), from 1 July 2015 to 30 June 2016. Certain comparative historical information is presented where relevant and to provide insight into our future plans.
As our reporting and the activities discussed can be improved through feedback, should you have any comments or suggestions on this report, send them to our investor relations team: HarmonyIR@harmony.co.za.
Who WE ARE
Harmony, a gold mining and exploration company with more than six decades of experience, has operations in South Africa – one of the world’s best known gold mining regions – and in Papua New Guinea – one of the world’s premier new gold regions.
In FY16, Harmony was the third largest gold producer in South Africa and the twelfth largest in the world. At Harmony, we understand the impact that our company has on the lives of the people we employ, the communities that surround our mines and the environment, as well as the economic contribution that we make to the countries in which we operate.
Key features year-on-year
- 6% increase in RECOVERED UNDERGROUND GRADE
- 54% reduction in net debt to R1.08 billion (61% to US$74 million)
- Net loss turned into net profit of R949 million (US$66 million)
- Dividend declared of 50 SA cents (4 US cents)
- Headline loss per share turned into headline earnings per share of 221 SA cents (15 US cents)
- Our share price OUTPERFORMED INDICES, GOLD PRICE AND OUR PEERS
- Enhancing our portfolio of GOLD-COPPER ASSETS
How we create value
LOCATE AND IDENTIFY EXPLORATION TARGETS
Obtain geological information
Feasibility studies to determine economic viability of ore bodies
ESTABLISH INFRASTRUCTURE AND BUILD OR ACQUIRE MINES
Obtain financing and create infrastructure to access or acquire mineral resources
Extraction of mineral reserves and ensuring safety of our people
MARKETING AND BENEFICIATION
Extracting the gold from the ore and refining
DIVESTMENT AND CLOSURE
Mine closure and land rehabilitation
- PEOPLE EMPLOYED 30 547
- RESERVES CONVERTED TO PRODUCTION 1.08Moz
- PRODUCTION COSTS R13 250m
- CAPITAL EXPENDITURE AND EXPLORATION R2 629m
- POWER CONSUMED 2 597GWh
- R18 334m REVENUE
- R964m HEADLINE EARNINGS
- 1.08Moz GOLD PRODUCED
- R5 084m PRODUCTION PROFIT
- 50 SA cents a share DIVIDEND DECLARED
- 1.33Moz SILVER PRODUCED
Harmony creates value through more channels than just monetary spend. We continue to help improve education, build infrastructure, provide healthcare, stimulate local economies and rehabilitate the environment.
VALUE DISTRIBUTION FY16
- South Africa R7 473m
- Papua New Guinea R429m
- R2 073mSouth Africa
- R556m Papua New Guinea
- R219mSouth Africa
- R34m Papua New Guinea
- R1 960mSouth Africa
- R87m Papua New Guinea
- R2 633mSouth Africa
- R506m Papua New Guinea
- R69mSouth Africa
- R0m Papua New Guinea
This report contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, 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 include all statements other than statements of historical fact, including, without limitation, any statements proceeded by, followed by, or that include the words “targets”, “believes”, “expects”, “aims” “intends” “will”, “may”, “anticipates”, “would”, “should”, “could”, “estimates”, “forecast”, “predict”, “continue” or similar expressions or the negative thereof.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, wherever they may occur in this report and the exhibits to this report, are essentially 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 this 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, estimates of future earnings, and the sensitivity of earnings to the 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 the gold and other metals prices, statements regarding future debt repayments, estimates of future capital expenditures, the success of our business strategy, development activities and other initiatives, 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, fluctuations in the market price of gold, the occurrence of hazards associated with underground and surface gold mining, the occurrence of labour disruptions, power cost increases as well as power stoppages, fluctuations and usage constraints, supply chain shortages and increases in the prices of production imports, availability, terms and deployment of capital, changes in government regulation, particularly mining rights and environmental regulation, fluctuations in exchange rates, the adequacy of the group’s insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea and other countries in which we operate.
For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the company’s latest Integrated Annual Report on Form 20-F which is on file with the Securities and Exchange Commission, as well as the Company’s other Securities and Exchange Commission filings. The company undertakes 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.I have read and accepted this disclaimer