Harmony Gold Mining Company Limited (Harmony), a gold mining and exploration company with 68 years of experience, has operations in South Africa, one of the world’s best known gold mining regions, and in Papua New Guinea, a premier new gold-copper region.

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 of the economic contribution that we make to the countries in which we operate.

Key features year-on-year

  • Focus on safety remains a priority

  • Increase in underground recovered grade for sixth year in a row

  • Production guidance met for third year in a row

  • Successful integration of Moab Khotsong and excellent project delivery at Hidden Valley

  • Hedging strategy continues to generate positive cash flow

Harmony's timeline


Over close on seven decades, Harmony has become a global, multi-operational gold producer.



Registered on 25 August as a public company with a single mine lease, the original Harmony gold mine



Listed on the JSE



First gold poured on 11 September


Early 1970s

Acquired the Merriespruit and Virginia mines to increase mining lease area to almost 10 000ha



Initial listing in United States on Nasdaq


1998 – 2004

Acquired various mining rights, including the African Rainbow Minerals deal, in the Free State, Gauteng, Mpumalanga and North West Province in South Africa and various interests in Papua New Guinea, including Hidden valley.

ADR program launched on the NYSE in 2002.



African Rainbow Minerals, a black empowerment company, acquired a 20% stake in Harmony for approximately R1.1 billion



Morobe Mining Joint Ventures, a 50:50 partnership with Newcrest Mining Limited, established to explore, develop and manage projects and operations in Papua New Guinea, including Hidden Valley and Wafi-Golpu.



Hidden Valley reaches commercial production



Mineral resources exceeding 13Moz gold and 4Mt copper (50% basis) declared at Wafi-Golpu



The Tlhakanelo employee share ownership scheme launched



South African operations achieve first ever fatality-free quarter



Full ownership of Hidden Valley acquired



First ever company-wide fatality-free quarter achieved during the year



Acquired Moab Khotsong, a 17.5Moz resource and a low unit cost, cash-generating operation



  • US$35/oz
  • na


  • US$159/oz
  • R3 473/kg


  • US$381/oz
  • R32 162/kg


  • US$294/oz
  • R52 397/kg


  • US$872/oz
  • R231 481/kg


  • US$1 699/oz
  • R440 951/kg


  • US$1 266/oz
  • R441 523/kg


  • US$1 257/oz
  • R538 306/kg

From leadership

Chairman’s letter

“Harmony’s safety risk management strategy, its values and visible leadership underpins its determination to achieve zero harm.”

Patrice Motsepe Chairman

Download letter

Chief executive officer’s review

“At Harmony, we are committed to delivering on our market guidance. Production guidance was achieved for the third consecutive year in FY18.”

Peter Steenkamp Chief executive officer

Download review

Financial director’s report

“We’re delivering on our growth aspirations through the acquisition of Moab Khotsong and the Hidden Valley re-investment plan.”

Frank Abbott Financial director

Download report

Social and Ethics committee: chairman’s report

“Our commitment to sustainable development and all that it encompasses is a moral responsibility that is underpinned by our values and integrated into our business as we strive to create shared value.”

Dr Simo Lushaba Chairman: social and ethics committee

Download report

Remuneration report

“To ensure peak performance and that our business objectives are responsibly met, it is imperative that employees and directors of the company are fairly rewarded.”

Vishnu Pillay Chairman remuneration committee

Download report

Audit and risk committee: chairman’s report

“The committee’s diverse perspectives, independence, knowledge and experience increases the value of Harmony’s governance structures.”

Fikile De Buck Chairman audit and risk committee

Download report

Operating statistics

  • Gold production increased to

    1.23Moz (FY17: 1.09Moz)

    • 13% increase year on year
    • Exceeded guidance
  • Costs contained

    All-in sustaining cost of R508 970/kg and US$1 231/oz
    (FY17: R516 687/kg and US$1 182/oz)

  • Underground recovered grade improved by

    8% to 5.48g/t (FY17: 5.07g/t)

    • Sixth consecutive year of higher grade at South African underground operations
  • Mineral resources increased 13% to

    117.8Moz at year-end
    (FY17: 104.3Moz)

    • Inclusion of Moab Khotsong
    • Underground resources and reserves for South African operations up 31% and 12% respectively

In South Africa, our nine underground operations are located within the world-renowned Witwatersrand Basin – one in the Klerksdorp goldfield, two in the West Rand and six in the Free State, in the southern portion of the Basin.

In addition, we have an open-pit mine on the Kraaipan Greenstone Belt as well as several surface operations.



Klerksdorp goldfield
Free State
West Rand


North West
Free State

In Papua New Guinea, Hidden Valley is an open-pit gold and silver mine. Our significant gold-copper portfolio includes a 50% stake in the Wafi-Golpu project in Morobe Province, through a 50:50 joint venture with Newcrest Mining Limited (Newcrest).

Harmony’s equity interest 100% unless otherwise indicated



To produce safe, profitable ounces and increase our margins



    Prioritising safety, strict cost control and management of grades mined, disciplined mining and improved productivity

    What we did in FY18
    • Production up 13% to 1.228Moz
    • At South African operations, underground grade recovered increased by 8% – sixth consecutive annual increase
    • Lower unit costs as measured by all-in sustaining costs
    • Improved lost-time injury frequency rate by 13% to 6.26 per million hours worked
    Focus in FY19
    • Improve safety performance
    • Realise synergies at Moab Khotsong
    • Deliver on Hidden Valley plan

    Achieving operational plans, supported by the current hedging strategy, contributes to cash flow certainty

    What we did in FY18
    • Achieved or exceeded production guidance for third consecutive year
    • Hedging strategy continued to boost cash flow margins
    Focus in FY19
    • Exceed operational plans so generating free cash flow
    • Repay debt
    • Continue hedging programme

    Evaluating and prioritising organic growth opportunities and value-accretive acquisitions to ensure positive stakeholder returns and increase margins

    What we did in FY18
    • Hidden Valley re-investment plan delivered on time and on budget
    • Acquisition of Moab Khotsong has enhanced our portfolio
    Focus in FY19
    • Secure Wafi-Golpu permitting and funding
    • Evaluate organic growth opportunities


  • Safe, profitable 1.5Moz producer

    • Focus on improving safety performance
    • Moab Khotsong and Hidden Valley to contribute to annual production of 1.5Moz
    • Consistent delivery on production guidance
  • Financially

    • Operational delivery on business objectives will generate positive operational cash flow
    • Hedging programme contributing positively to cash flow
  • Real growth opportunities

    • Wafi-Golpu permitting underway
    • Organic brownfields opportunities include:
      • Tailings expansion
      • Kalgold exploration
      • Great Noligwa and Zaaiplaats
      • Hidden Valley extension
  • Offering share price uplift

    • Improved market capitalisation (up 12% year-on-year at 30 June 2018)


  • On track

    to deliver a sustainable production performance

  • Driving

    unit costs down by producing quality ounces

  • Cash flow

    on our strategy to increase margins

  • Cash flow

    to be effectively allocated to growth opportunities

Our 2018 reports

The integrated report has been compiled in line with the International Integrated Reporting Council’s Framework, the Global Reporting Initiative G4 guidelines and the King Report on Governance for South Africa 2016 (King IV report).

While the integrated report describes Harmony’s performance in delivering on its strategy and creating value for FY18, additional information is presented in the other reports making up the set of 2018 reports:

Printed copies of all our reports are available upon request, free of charge from the Investor Relations Department at HarmonyIR@harmony.co.za.