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HARMONY GOLD MINING COMPANY LIMITED - Results for the year ended 30 June 2021

Release Date: 31/08/2021 07:05
Code(s): HAR     PDF:  
Wrap Text
Results for the year ended 30 June 2021

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)


Johannesburg. Tuesday, 31 August 2021. Harmony Gold Mining Company
Limited is pleased to announce its financial and operating results
for the year ended 30 June 2021 (FY21).

-   In Phase 2 of embedding a proactive safety culture focused on
    leadership and behaviour
-   Covid-19 vaccination drive protecting our employees
-   66% increase in production profit to R12.0bn (US$777m) from R7.2bn
-   1% increase in underground recovered grade to 5.51g/t from 5.45g/t
-   26% increase in gold production to 47 755kg (1 535 352oz) from 37
    863kg (1 217 323oz)
-   19% increase in total mineral resources to 141.2Moz
-   16% increase in total mineral reserves to 42.45Moz
-   43% increase in revenue to R41 733m (US$2 710m) from R29 245m
    (US$1 867m)
-   83% increase in operating free cash flow to R6.5bn (US$424m) from
    R3.6bn (US$228m)
-   758% increase in net profit of R5.6bn (US$352m) from a loss of
    R850m (US$56m)
-   60% reduction in net debt to R542m (US$38m) from R1 361m (US$79m)
-   Net debt to EBITDA at 0.1x from 0.2x
-   HEPS increased by 699% to 923 SA cents (60 US cents) from a
    comparative headline loss per share of 154 SA cents (10 US cents)
-   Interim dividend declared and paid during FY21 of 110 SA cents (7.7
    US cents) per ordinary share (June 2020: nil)
-   Final dividend of 27 SA cents (approximately 1.8 US cents) per
    ordinary share declared (June 2020: nil)
-   30MW in renewable energy to be rolled out in the first phase of
    our strategy to decarbonise.


                                     Year ended 30   Year ended 30     %
                                         June 2021       June 2020 change
Gold produced         Kg                   47 755          37 863    26
                      Oz                1 535 352       1 217 323    26
Underground grade     g/t                    5.51            5.45     1
Gold price received   R/kg                851 045         735 569    16
                      US$/oz                1 719           1 461    18
Cash operating costs  R/kg                600 592         553 513    (9)
                      US$/oz                1 213           1 099   (10)
Total costs and       R/kg                707 445         647 364    (9)
capital               US$/oz                1 429           1 286   (11)
All-in sustaining     R/kg                723 054         651 356   (11)
costs                 US$/oz                1 460           1 293   (13)
Production profit     R million            11 958           7 197    66
                      US$ million             777             459    69
Average Exchange rate R:US$                 15.40           15.66    (2)


                                       Year ended    Year ended 30      %
                                     30 June 2021        June 2020 change
Basic earnings/(loss)    SA cents            919             (164)   >100
per share                US cents             58              (10)   >100
Headline earnings/(loss) R million         5 575             (828)   >100
                         US$                 362              (53)   >100
Headline earnings/(loss) million
                         SA cents            923             (154)   >100
per share                US cents
                         million              60              (10)   >100

FY22 group production and cost guidance

Production guidance for FY22 is estimated to be between 1.547Moz and
1.630Moz at an all-in sustaining cost of between R765 000/kg to
R800 000/kg. Underground recovered grade is planned to be about
5.40g/t to 5.57g/t.

“We delivered a stellar set of full-year results as the resilience
and determination shown throughout the company ensured we achieved
our strategic objectives. We adapted to a changed environment in the
face of the ongoing Covid-19 pandemic with the successful acquisition
and integration of Mponeng and related assets reflecting in our
numbers. This demonstrates how we have further transformed our
earnings profile through the acquisition of high grade assets, while
delivering on our strategy of safe, profitable ounces and increasing
margins,” said chief executive officer, Peter Steenkamp.

“Our re-engineered portfolio and deleveraged balance sheet will allow
us to extract further value from our assets while at the same creating
optionality for the business. As we continue on our growth strategy,
we have identified substantial opportunities in our existing portfolio
through exploration and brownfield projects which will extend the life
of some of our larger and higher-grade assets, adding lower-risk,
higher-margin ounces to Harmony's portfolio,” concluded Steenkamp.

Notice of Final Gross Cash Dividend

Our dividend declaration for the six months ended 30 June 2021 is as
Declaration of final gross cash ordinary dividend no. 90

The Board has approved, and notice is hereby given, that a final gross
cash dividend of 27 SA cents (US 1.8 cents*) per ordinary share in
respect of the six months ended 30 June 2021, has been declared payable
to the registered shareholders of Harmony on Monday, 18 October 2021.

In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the
JSE Listings Requirements the following additional information is

  •   The dividend has been declared out of income reserves;
  •   The local Dividend Withholding Tax rate is 20% (twenty percent);
  •   The gross local dividend amount is 27.00000 SA cents (1.83423
      cents*) per ordinary share for shareholders exempt from the
      Dividend Withholding Tax;
  •   The net local dividend amount is 21.60000 SA cents per ordinary
      share for shareholders liable to pay the Dividend Withholding
  •   Harmony currently has 616 052 197 ordinary shares in issue
      (which includes 5 941 462 treasury shares); and
  •   Harmony’s income tax reference number is 9240/012/60/0.

A dividend No. 90 of 27.00000 SA cents (US 1.83423 cents*) per
ordinary share, being the dividend for the six months ended 30 June
2021, has been declared payable on Monday 18 October 2021 to those
shareholders recorded in the books of the company at the close of
business on Friday, 15 October 2021. 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, 8 October 2021.

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 21.60000 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 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, 12 October 2021

Ordinary shares trade ex-dividend            Wednesday, 13 October 2021

Record date                                     Friday, 15 October 2021

Payment date                                    Monday, 18 October 2021

No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 13 October 2021 and Friday, 15 October
2021, 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

Dividends in respect of dematerialised shareholdings will be credited
to such shareholders' accounts with the relevant Central Securities
Depository Participant (CSDP) or broker.

The holders of American Depositary Receipts (ADRs) should confirm
dividend details with the depository bank. Assuming an exchange rate
of R14.72/US$1* the dividend payable on an ADR is equivalent to US
1.83423 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 R14.72/US$1 at 27 August 2021. 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 announcement
(results booklet) and does not contain full or complete details
published on the Stock Exchange News Service, via the JSE link at
and on Harmony’s website ( on 31 August 2021.

The financial results as contained in the condensed consolidated
financial statements for the financial year ended 30 June 2021, from
which this short-form announcement has been correctly extracted, have
been reviewed by PricewaterhouseCoopers 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 booklets 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 link,
referred to above.

The results booklet is also available for inspection at the registered
office of the Company, Randfontein Office Park, Randfontein, 1760,
Corner Main Reef Road/Ward Avenue, Randfontein, by emailing and at the offices of the sponsors, JP Morgan.
Inspection of the full announcement is available to investors and/or
shareholders at no charge, during normal business hours from today,
31 August 2021, together with the aforementioned review report by the
Company’s external auditors.


For more details, contact:

Jared Coetzer
Head: Investor Relations
+27 (0)82 746 4120

Johannesburg, South Africa
31 August 2021

J.P. Morgan Equities South Africa Proprietary Limited

Date: 31-08-2021 07:05:00
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