HARMONY GOLD MINING COMPANY LIMITED - Trading statement and operating update for the six months ended 31 December 2019 and prior period restatement

Trading statement and operating update for the six months ended 31 December 2019 and prior period restatement

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 2019 and prior period restatement

Johannesburg, Thursday, 6 February 2020. Harmony Gold Mining Company
Limited (“Harmony” or the “Company”) is required in terms of paragraph
3.4(b) of the Listings Requirements of the JSE Limited (JSE), to publish
a trading statement as soon as the Company is satisfied that a reasonable
degree of certainty exists that the financial results for the period to
be reported upon next – being its interim results for the six months
ended 31 December 2019 (“H1FY20”)- will differ by at least 20% from the
financial results for the previous corresponding period.

Expected headline and basic earnings for the six month period ended
31 December 2019 (“FY20”)

Shareholders of Harmony are advised that a reasonable degree of certainty
exists that net profit for the six months ended 31 December 2019
(“H1FY20”) will be R1.3 billion or 7 111% higher than for the
corresponding six months ended 31 December 2018 (“the previous comparable
period” or “H1FY19”) primarily due to an increase in revenue.

Headline earnings per share (“HEPS”) and earnings per share (“EPS”) are
both expected to be 249 South African (“SA”) cents, which is 253 SA cents
or 6 325% higher than the restated loss of 4 SA cents for the previous
comparable period. In US dollar terms, HEPS and EPS are expected to be
17 US cents per share, compared to zero US cents per share for the
previous comparable period.

Increase in revenue

Revenue increased by R1.7 billion or 12% mainly due to the higher gold
price received. The average gold price received increased by 19% to R683
158/kg from R572 898/kg in December 2018. In US dollar terms, the average
gold price received increased by 15% to US$1 447/oz from US$1 258/oz in
December 2018.

The financial information on which this trading statement has been based
has not been reviewed or reported on by Harmony’s external auditors.

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H1FY20 operating update

Total gold produced in H1FY20 in comparison to H1FY19 was 8% lower at
21 411kg (688 379oz), largely due to a 6% reduction in underground
recovered grade to 5.29g/t (0.154oz/t). The decrease is attributable
mainly to grade issues at Kusasalethu and Target. More information on
our operational performance will be provided at our results presentation
on 11 February 2020.

The average gold price received was 19% higher at R683 158/kg, resulting
in operating free cash flow margins increasing from 8% to 13%.
All-in sustaining cost for all operations were 15% higher    at   R605 911kg
(increase of 11% to US$1 283/oz), due to lower production.

Restatement of headline and basic earnings for the six months ended 31
December 2018

The financial statements for the six months ended 31 December have been
restated due to a bona fide error related to the application of IAS 23
Borrowing costs. The restatement increases the comparative period’s
amortisation and depreciation by R10 million as well as finance costs
by R84 million and decreases net profit for the period as well as
property, plant and equipment by R94 million. There is no impact on the
comparative cash flow statement.

The restatement resulted in a loss per share of 4   SA cents (previously,
earnings of 15 SA cents) and headline loss of 6     SA cents (previously,
headline earnings of 14 SA cents). In US dollar     terms the restatement
resulted in a loss per share and headline loss      per share of zero US
cents (previously, earnings of 1 US cent).

Detailed information will be disclosed in the interim financial results.

Management has reviewed and updated the group's internal control
processes in response to the error. The error was detected and corrected
by June 2019 and therefore does not require a restatement of the June
2019 financial statements.

Harmony will publish its interim financial results for the six months
ended 31 December 2019 on Tuesday, 11 February 2020.

Ends.




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For more details contact:

Marian van der Walt
Executive: Investor Relations
+27(0)82 888 1242 (mobile)

Max Manoeli
Investor Relations
+27(0)82 759 1775 (mobile)

Johannesburg, South Africa

6 February 2020



Sponsor:

J.P. Morgan Equities South Africa Proprietary Limited




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Date: 06-02-2020 02:45:00
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