HomeBusiness and policyDe-risked portfolio drives production growth for Harmony

De-risked portfolio drives production growth for Harmony

Harmony Gold Mining Company’s operational results for the first quarter of the financial year 2022 were underpinned by a diversified and de-risked portfolio.

Newly acquired assets and assets that it has reinvested in, now represent 62% of operating free cash flow, while our surface source operations accounted for 34% of operating free cash flow this quarter.

Assets which have been in Harmony’s portfolio for many years accounted for only 4% of the operating free cash flow this quarter, which illustrates how it has transformed its portfolio through the acquisition of quality ounces.

Harmony’s re-engineered portfolio has shown a 27% increase in underground tonnes milled for the September 2021 quarter when compared to the September 2020 quarter and a 26% increase in gold production from our underground mines. Total gold production was 32% higher this quarter when compared to Q1FY21.

Some of the key highlights in Q1FY22 include a 3% increase in production by the surface source operations and a 4% increase in tonnes milled by the underground operations. The quarter-on-quarter increase in underground production was on the back of improved grades and tonnes milled at our Moab Khotsong, Kusasalethu, Target 1 and Doornkop operations.

Overall production was more or less steady quarter-onquarter with 12 868kg (413 714oz) of gold produced in Q1FY22 compared to 12 786kg (411 078oz) produced in Q4FY21.

Encouragingly, total production excluding Mponeng and related assets and Unisel mine (which was closed in October 2020) – delivered an additional 6% of gold production compared with the September 2020 quarter as a result of higher tonnes milled as production normalised post the Covid-19 disruptions and improved efficiencies on the back of various optimisation projects.

Harmony’s balance sheet remains strong, with net debt to EBITDA now at 0.05 times at the end of the quarter (0.1 times in the previous quarter) as we further reduced our net debt by R139 million (US$9 million) to R454 million (US$30 million).

The Company’s strategy remains unchanged – delivering on safe profitable ounces and increasing margins, while focusing on our four strategic pillars namely: responsible stewardship, operational excellence, cash certainty and effective capital allocation.

A quality portfolio, deleveraged balance sheet, commitment to best environment, social and governance (ESG) practices and an exciting pipeline of projects will ensure Harmony continues to create value for all shareholders and stakeholders.