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Trading statement and operating update for the six months ended 31 December 2024
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")
Trading statement and operating update for the six months ended
31 December 2024
Johannesburg, Thursday, 27 February 2025. In terms of paragraph 3.4(b)
of the Listings Requirements of the JSE Limited ("JSE"), a company listed
on the JSE is required to publish a trading statement as soon as they
are satisfied that a reasonable degree of certainty exists that the
financial results for the next period to be reported upon - being its
interim results for the six months ended 31 December 2024 ("H1FY25") -
will differ by at least 20% from the financial results for the comparable
six months ended 31 December 2023 ("the previous comparable period" or
"H1FY24").
"The outstanding H1FY25 results are on the back of continuous investment
in safety, operational excellence and higher quality ounces. We have a
stable, predictable, rand-based cost structure and have been delivering
operational consistency across the entire group. Our disciplined
approach to capital allocation has enabled us to leverage the current
high gold price environment to generate exceptionally robust operating
free cash flows. Mining with purpose ensures we take Harmony forward
sustainably and responsibly as we continue using our wealth of experience
and specialised skills to create long-term value for all," says Beyers
Nel, CEO.
Expected basic and headline earnings for H1FY25
Shareholders of Harmony are advised that a reasonable degree of certainty
exists that basic earnings for H1FY25 will be higher than for H1FY24.
This is due to an increase in revenue as a result of the delivery of
safe, predictable and consistent production and a higher average gold
price received. The average gold price received increased by 23% to
R1 405 020/kg in H1FY25 from R1 141 424/kg in H1FY24. In US dollar terms,
the average gold price received increased by 28% to $2 437/oz in H1FY25
from $1 900/oz in H1FY24.
The increase in earnings was partially offset by the following:
• an increase in production costs due to planned above-inflation
increases in labour and electricity costs
• an increase in the current taxation due to higher taxable income and
higher royalty taxes driven by an increase in revenue and profitability
resulting from favourable gold prices.
Consequently, earnings per share ("EPS") are expected to be between 1182
and 1355 South African cents per share, which represents an increase of
between 24% and 42% on the EPS of 956 South African cents per share for
the previous comparable period. In United States ("US") dollar terms,
the EPS are expected to be between 66 and 76 US cents per share, which
is an increase of between 29% and 48% on the EPS of 51 US cents per
share reported for the previous comparable period.
Headline earnings per share ("HEPS") are expected to be between 1188 and
1361 South African cents, which represents an increase of between 24%
and 42% from the HEPS of 956 South African cents reported in the previous
comparable period. In US dollar terms, the HEPS are expected to be
between 67 and 77 US cents per share, which is an increase of between
31% and 50% on the headline earnings of 51 US cents per share reported
for the previous comparable period.
Harmony will publish its financial results for the six months ended
31 December 2024 on Tuesday, 4 March 2025. Please see Harmony's website
for more details: www.harmony.co.za.
The financial information on which this trading statement is based has
not been reviewed or reported on by Harmony's external auditors.
For more details, contact:
Jared Coetzer
Head of Investor Relations
+27 (0) 82 746 4120
Johannesburg, South Africa
27 February 2025
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
FORWARD-LOOKING STATEMENTS
This market release contains forward-looking statements within the
meaning of the safe harbour provided by Section 21E of the Exchange Act
and Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), 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 forward-looking statements, including, among others, those
relating to our future business prospects, revenues, and the potential
benefit of acquisitions (including statements regarding growth and cost
savings) wherever they may occur in this market release, are necessarily
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 our integrated annual report. All statements other than
statements of historical facts included in this market release may be
forward-looking statements.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances and should be
considered in light of various important factors, including those set
forth in this disclaimer. Readers are cautioned not to place undue
reliance on such statements. 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; the impact from, and measures taken to address,
Covid-19 and other contagious diseases, such as HIV and tuberculosis;
high and rising inflation, supply chain issues, volatile commodity costs
and other inflationary pressures exacerbated by the geopolitical risks;
estimates of future earnings, and the sensitivity of earnings to 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 gold and other metals
prices; estimates of provision for silicosis settlement; increasing
regulation of environmental and sustainability matters such as
greenhouse gas emission and climate change, and the impact of climate
change on our operations; estimates of future tax liabilities under the
Carbon Tax Act (South Africa); statements regarding future debt
repayments; estimates of future capital expenditures; the success of our
business strategy, exploration and development activities and other
initiatives; future financial position, plans, strategies, objectives,
capital expenditures, projected costs and anticipated cost savings and
financing plans; 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, as well as at existing operations;
fluctuations in the market price of gold and other metals; the occurrence
of hazards associated with underground and surface gold mining; the
occurrence of labour disruptions related to industrial action or health
and safety incidents; power cost increases as well as power stoppages,
fluctuations and usage constraints; ageing infrastructure, unplanned
breakdowns and stoppages that may delay production, increase costs and
industrial accidents; supply chain shortages and increases in the prices
of production imports and the availability, terms and deployment of
capital; our ability to hire and retain senior management, sufficiently
technically-skilled employees, as well as our ability to achieve
sufficient representation of historically disadvantaged persons in
management positions or sufficient gender diversity in management
positions or at Board level; our ability to comply with requirements
that we operate in a sustainable manner and provide benefits to affected
communities; potential liabilities related to occupational health
diseases; changes in government regulation and the political
environment, particularly tax and royalties, mining rights, health,
safety, environmental regulation and business ownership including any
interpretation thereof; court decisions affecting the mining industry,
including, without limitation, regarding the interpretation of mining
rights; our ability to protect our information technology and
communication systems and the personal data we retain; risks related to
the failure of internal controls; the outcome of pending or future
litigation or regulatory proceedings; fluctuations in exchange rates and
currency devaluations and other macroeconomic monetary policies, as well
as the impact of South African exchange control regulations; the adequacy
of the Group's insurance coverage; any further downgrade of South
Africa's credit rating and socio-economic or political instability in
South Africa, Papua New Guinea, Australia and other countries in which
we operate; changes in technical and economic assumptions underlying our
mineral reserves estimates; geotechnical challenges due to the ageing
of certain mines and a trend toward mining deeper pits and more complex,
often deeper underground, deposits; and actual or alleged breach or
breaches in governance processes, fraud, bribery or corruption at our
operations that leads to censure, penalties or negative reputational
impacts.
The foregoing factors and others described under "Risk Factors" in our
Integrated Annual Report (www.har.co.za) and our Form 20-F should not
be construed as exhaustive. We undertake 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. All subsequent written or oral forward-looking statements
attributable to Harmony or any person acting on its behalf are qualified
by the cautionary statements herein.
Date: 27-02-2025 09:05:00
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