Company profile (PDF - 847KB)
Harmony Gold Mining Company Limited is the fifth largest gold producer in the world, with operations and projects in South Africa, Australia and Papua New Guinea (PNG). In FY06, Harmony produced 2.4Moz of gold, predominantly from its operations in South Africa.
Harmony also owns one of the world’s largest gold ore resources, with mineral resources as at 30 June 2006 of 537.6Moz at a cut-off grade of 250cmg/t. Of this and using a long-term gold price of R105 000/kg, 56.0Moz are in the ore reserve category.
Our active and aggressive growth campaign in South Africa and PNG means that we have five large-scale projects under way, at a capital cost in FY06 of R561 million (US$88 million). Together these projects will exploit 19.3 million life-of-mine ounces of which 15.2Moz forms part of the company’s existing reserve base . Additionally, our exploration programme gained significant momentum during the year under review with investigative activities focused on large parts of Latin America, Africa, South East Asia and Europe.
KEY FEATURES
FY06
- Production of 2.4Moz of gold
- Loss reduced to R525 million – boosted by doubling of cash operating profit in the fourth quarter of the year
- Benefits of extensive restructuring process starting to become evident aimed at eliminating unproductive assets and maximising productivity of those with potential; extensive cost savings now being recorded
- Good progress made with five growth projects with a total of R1.7 billion (US$266 million) spent in capex
- New focus on ore reserve management – emphasis on net present value in evaluating potential mining areas
- Good progress being made with implementation of Conops, resulting in improved face advance, production and cashflows
- Upgrade of Wafi Golpu resource by more than 20%
UNLOCKING VALUE
FY07 – FY10
- Plan to grow gold production to 3.5Moz annually by FY10
- Reduce cash operating cost to less than $400/oz
- Capex to be spent on maintaining our position on the growth curve:
- development of orebodies at South African operations
- further expansion opportunities at Hidden Valley and Wafi Golpu in PNG
- Implementation of process to ‘buy back our mines’ – aim at promoting innovation, reducing costs and improving performance
- Committed to being the lowest cost gold producer with a focus on cost per tonne
Share Price Performance
| JSE | 12-month high | R117.05 |
| 12-month low | R46.62 | |
| NYSE and Nasdaq | 12-month high | US$18.84 |
| 12-month low | US$7.21 | |
| Free float | 100% | |
| ADR ratio | 1:1 |
JSE and NYSE Share Price
Our operations:
Enlarge global operations map
Our South African operations are managed in three categories:
- Quality assets include the Evander shafts, Randfontein Cooke shafts, Target, Tshepong and Masimong 5.
- Leveraged assets include Bambanani, Joel, West, Nyala, St Helena, Harmony 2, Merriespruit 1 and 3, Unisel, Brand 3, Orkney 2 and 4.
- Growth projects include Doornkop shaft and South Reef project, Elandsrand shaft and New Mine project, Phakisa shaft and Tshepong decline project.
In addition, there are a number of surface operations, including Kalgold.
Australasia
- Harmony’s operations in Australia are centred at Mount Magnet and South Kal in Western Australia.
- Current projects in Papua New Guinea are Hidden Valley and Wafi Golpu.
