Harmony reports strong investment

Harmony Gold Mining Company Ltd is continuing to have a strong investment, according to the company.
Harmony noted this in its results for the year ending June 30.
The South African company owns 50 per cent of the Wafi-Golpu project in a joint venture in Morobe.
Chief executive Peter Steenkamp said the company’s production is now safer.
“Production is safer and more predictable, grade management is disciplined, production delivery exceeds guidance, operations are generating operational free cash flow and the hedging strategy secures cash margins,” Steenkamp said.
“Combined with Harmony’s low net debt compared to peers and its excellent growth opportunities, Harmony continues to have a strong investment case. Our priorities are to grow our ounces and to pay dividends from profits. Focused exploration targets, unlocking the value of Golpu and identifying value accretive acquisitions remain key in improving the quality of Harmony’s assets, driving down costs and achieving its aspiration of being a 1.5 Moz (million ounces) producer in financial year 2019.
“In financial year 2017, the company obtained 100 per cent ownership in Hidden Valley (180,000oz per annum) and commenced with its central plant reclamation project (15,000oz per annum).”
Harmony noted key features year on year which included:

Milestone fatality free quarter achieved during the June 2017 quarter, annual fatality rates improved;
l Met production guidance for a second consecutive year, underground grade increased for fifth consecutive year to 5.07g/t (grams per tonne);
l 35 per cent increase in headline earnings per share (HEPS) of 47 per cent to US22cents (K0.68);
l Continuing to secure cash margins through a successful hedging strategy, realising gains of US$128 million (K397.15 million);
l 18 per cent reduction in net debt to eight per cent to US$68 million (K211 million);
l Sustainable and inclusive solutions sought to address silicosis claims; and,
l Declaring a final dividend for the financial year of US3cents (K0.10).