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Results for the year ended 30 June 2024 - Short-form announcement
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
(Harmony and/or the Company)
RESULTS FOR THE YEAR ENDED 30 JUNE 2024 AND A FINAL DIVIDEND
DECLARATION
Harmony's full-year operational performance elevates company to new
heights; declares final dividend
Johannesburg. Thursday, 5 September 2024. Harmony Gold Mining Company
Limited is pleased to announce its financial and operating results
for the year ended 30 June 2024 (FY24).
"Harmony delivered an exceptional combined performance across our
operations in FY24. This achievement was a result of clear strategic
intent and successful execution, enabling us to deliver above plan
and capitalise on higher gold prices. Our aim is to excel at what we
do and I believe we achieved this goal.
We continue to allocate most of our project capital to our higher-
grade, higher-quality, and lower-risk assets. This aligns with our
strategy of producing safe, profitable ounces and improving margins
through operational excellence and value-accretive acquisitions.
By investing in our higher-grade gold mines, expanding our surface
retreatment business, and growing our international gold and copper
assets, we will continue to transform and de-risk Harmony as we go
from strength to strength," said Peter Steenkamp, chief executive
officer of Harmony.
Key highlights of FY24 are:
- Proactive safety strategy with group lost time injury frequency
rate of 5.53 from 5.49 per million hours worked, below 6 for third
consecutive financial year
- 132% increase in headline earnings per share to 1 852 SA cents
(99 US cents) per share from 800 SA cents (45 US cents) per share
- 78% increase in EPS to earnings of 1 386 SA cents (74 US cents) per
share from 780 SA cents (44 US cents) per share
- Record operating free cash flow, up 111% to R12 743 million
(US$681 million) driven by higher recovered grades and a higher
average gold price received
- 6% increase in underground recovered grades to 6.11g/t from 5.78g/t
- 6% increase in total gold production to 48 578kg (1 561 815oz) from
45 651kg (1 467 715oz)
- Increase in production of 17% at Mponeng, 34% at Mine Waste
Solutions and 17% at Hidden Valley due to improved recovered grades
- 1% increase in group all-in sustaining costs (AISC) to R901 550/kg
(US$1 500/oz) from R889 766/kg (US$1 558/oz)
- 16% increase in average gold price received to R1 201 653/kg
(US$1 999/oz) from R1 032 646/kg (US$1 808/oz)
- 25% increase in group revenue to R61 379 million (US$3 282 million)
from R49 275 million (US$2 774 million)
- Operating free cash flow of R2 188 million (US$117 million)
generated by Hidden Valley due to excellent recovered grades,
compared to R615 million (US$35 million)
- Strong, flexible balance sheet now in a net cash position of
R2 899 million (US$159 million)
- Liquidity of R12 649 million (US$695 million) in cash and undrawn
facilities
- Copper represents 21% of total declared Mineral Resources of
136.5 million ounces (Moz); declared Mineral Reserves increases
by 2% to 40.3Moz
- Expanded renewable programme to over 500MW from 363MW to support
life of mine extensions
- A final dividend declared of 94 SA cents (approximately 5.2 US
cents) per ordinary share declared (June 2023: 75 SA cents (4.03 US
cents))
OPERATING RESULTS
Year Year
ended ended
30 June 30 June
2024 2023 %
(Reviewed) (Audited) Change
Underground recovered
grade g/t 6.11 5.78 6
R/kg 1 201 653 1 032 646 16
Gold price received
US$/oz 1 999 1 808 11
kg 48 578 45 651 6
Gold produced total
oz 1 561 815 1 467 715 6
South African high-grade kg 15 350 14 117 9
underground oz 493 512 453 871 9
South African optimised kg 19 061 19 641 (3)
underground oz 612 826 631 474 (3)
South African surface kg 9 066 7 523 21
operations oz 291 477 241 872 21
International (Hidden kg 5 101 4 370 17
Valley) oz 164 000 140 498 17
Group cash operating R/kg 758 736 735 634 (3)
costs US$/oz 1 262 1 288 2
Group all-in sustaining R/kg 901 550 889 766 (1)
costs (AISC) US$/oz 1 500 1 558 4
R/kg 969 085 938 997 (3)
Group all-in cost (AIC)
US$/oz 1 612 1 644 2
Group operating free cash R million 12 743 6 031 111
flow US$ million 681 339 101
Average exchange rate R:US$ 18.70 17.76 5
FINANCIAL RESULTS
Year Year
ended ended
30 June 30 June
2024 2023 %
(Reviewed) (Audited) Change
SA cents 1 386 780 78
Basic earnings per share
US cents 74 44 68
R million 11 474 4 941 >100
Headline earnings
US$ million 613 277 >100
Headline earnings per SA cents 1 852 800 >100
share (HEPS) US cents 99 45 >100
FY25 group production and cost guidance
Year-on-year production guidance for the group is between
1 400 000 ounces and 1 500 000 ounces at an AISC of between
R1 020 000/kg and R1 100 000/kg. Underground recovered grade for FY25
is guided at above 5.8g/t.
Notice of Final Gross Cash Dividend
Our dividend declaration for the 12 months ended 30 June 2024 is as
follows:
Declaration of final gross cash ordinary dividend no. 95
The Board has approved, and notice is hereby given, that a final
gross cash dividend of 94 SA cents (5.27497 US cents*) per ordinary
share in respect of the 12 months ended 30 June 2024, has been
declared payable to the registered shareholders of Harmony on Monday,
14 October 2024.
In accordance with paragraphs 11.17(a)(i) to (ix) and 11.17(c) of the
JSE Listings Requirements the following additional information is
disclosed:
• The dividend has been declared out of income reserves;
• The local Dividend Withholding Tax rate is 20%;
• The gross local dividend amount is 94.00000 SA cents
(5.27497 US cents*) per ordinary share for shareholders exempt
from the Dividend Withholding Tax;
• The net local dividend amount is 75.20000 SA cents per ordinary
share for shareholders liable to pay the Dividend Withholding Tax;
• Harmony currently has 632 634 413 ordinary shares in issue (which
includes 12 698 906 treasury shares); and
• Harmony's income tax reference number is 9240/012/60/0.
A dividend No. 95 of 94.00000 SA cents (5.27497 US cents*) per ordinary
share, being the dividend for the 12 months ended 30 June 2024, has
been declared payable on Monday, 14 October 2024 to those shareholders
recorded in the share register of the company at the close of business
on Friday, 11 October 2024. The dividend is declared in the currency
of the Republic of South Africa. Any change in address or dividend
instruction to apply to this dividend must be received by the company's
transfer secretaries or registrar not later than Friday,
4 October 2024.
Dividends received by non-resident shareholders will be exempt from
income tax in terms of section 10(1)(k)(i) of the Income Tax Act. The
dividends withholding tax rate is 20%, accordingly, any dividend will
be subject to dividend withholding tax levied at a rate of 20%, unless
the rate is reduced in terms of any applicable agreement for the
avoidance of double taxation (DTA) between South Africa and the
country of residence of the shareholder.
Should dividend withholding tax be withheld at a rate of 20%, the net
dividend amount due to non-resident shareholders is 75.20000 SA cents
per share. A reduced dividend withholding rate in terms of the
applicable DTA may only be relied on if the non-resident shareholder
has provided the following forms to their Central Securities
Depository Participant (CSDP) or broker, as the case may be in respect
of uncertificated shares or the company, in respect of certificated
shares:
(a) a declaration that the dividend is subject to a reduced rate as
a result of the application of a DTA; and
(b) a written undertaking to inform the CSDP or broker, as the case
may be, should the circumstances affecting the reduced rate
change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African
Revenue Service. Non-resident shareholders are advised to contact
their CSDP or broker, as the case may be, to arrange for the
abovementioned documents to be submitted prior to the payment of the
distribution if such documents have not already been submitted.
In compliance with the requirements of Strate Proprietary Limited
(Strate) and the JSE Listings Requirements, the salient dates for
payment of the dividend are as follows:
Last date to trade ordinary shares
cum-dividend is Tuesday, 8 October 2024
Ordinary shares trade ex-dividend Wednesday, 9 October 2024
Record date Friday, 11 October 2024
Payment date Monday, 14 October 2024
No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 9 October 2024 and Friday, 11 October 2024
both dates inclusive, nor may any transfers between registers take
place during this period.
On payment date, dividends due to holders of certificated securities
on the SA share register will either be electronically transferred to
such shareholders' bank accounts or, in the absence of suitable
mandates, dividends will be held in escrow by Harmony until suitable
mandates are received to electronically transfer dividends to such
shareholders.
Dividends in respect of dematerialised shareholdings will be credited
to such shareholders' accounts with the relevant CSDP or broker.
The holders of American Depositary Receipts (ADRs) should confirm
dividend details with the depository bank. Assuming an exchange rate
of R17.82/US$1* the dividend payable on an ADR is equivalent to
5.27497 US cents for ADR holders before dividend tax. However, the
actual rate of payment will depend on the exchange rate on the date
for currency conversion.
* Based on an exchange rate of R17.82/US$1 at 30 August 2024. However,
the actual rate of payment will depend on the exchange rate on the
date for currency conversion.
Short-form announcement
This short-form announcement is the responsibility of the board of
directors of the Company.
Shareholders are advised that this short-form announcement represents
a summary of the information contained in the full financial results
(results booklet) incorporating the FY24 condensed consolidated
financial statements and does not contain full or complete details
published on the Stock Exchange News Service, via the JSE cloudlink
at https://senspdf.jse.co.za/documents/2024/jse/isse/HARE/FY24result.pdf
and on Harmony's website (www.harmony.co.za) on 5 September 2024.
The condensed consolidated financial statements for the financial year
ended 30 June 2024, from which this short-form announcement has been
correctly extracted, have been reviewed by Ernst & Young Inc., who
expressed an unmodified review conclusion thereon.
Any investment decisions by investors and/or shareholders should be
based on a consideration of the results booklet as a whole and
shareholders are encouraged to review the results booklet, which is
available for viewing on the Company's website and the JSE cloudlink,
referred to above.
Ends.
For more details, contact:
Jared Coetzer
Head: Investor Relations
+27 (0)82 746 4120
Johannesburg, South Africa
5 September 2024
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
Date: 05-09-2024 07:05:00
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