UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
Form 6-K
REPORT OF FOREIGN PRIVATE
ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES
EXCHANGE ACT OF
1934
For March 19,
2018
Harmony Gold Mining Company
Limited
Randfontein Office
Park
Corner Main Reef Road and
Ward Avenue
Randfontein,
1759
South Africa
(Address of principal executive
offices)
*-
(Indicate by check mark
whether the registrant files or will file annual reports under
cover of Form 20- F or Form 40-F.)
|
Form 20-F
☒
|
|
Form 40-F
☐
|
(Indicate by check mark
whether the registrant by furnishing the information contained in
this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.)
|
Yes
☐
|
|
No ☒
|
Updated Wafi-Golpu Feasibility Study
Monday, 19 March 2018, Harmony Gold Mining Company Limited
(Harmony) has today released an updated Wafi-Golpu Feasibility
Study prepared by the Wafi-Golpu Joint Venture (WGJV) project
team.
This Study incorporates the findings from the earlier
Pre-Feasibility and Feasibility Studies announced in February 2016,
interpretation of the additional orebody data derived from further
drilling and geotechnical studies, together with further work
undertaken on mine design, hydrology, tailings and port and power
options. The updated Study draws on extensive data collection
undertaken since 2016, providing a deeper understanding of the
project’s geotechnical, oceanographic, environmental and
social parameters.
Summary of Study findings (100%
terms)1
|
● Lowest
decile C1 cost copper production of US$0.26/lb (or minus
US$2,128/oz AISC in gold production terms)
|
|
● Initial
capital expenditure to commercial production of approximately
US$2.8bn
|
|
● Life
of Mine capital expenditure of approximately US$5.4bn
|
|
● NPV
of approximately US$2.6bn and IRR in real terms of approximately
18.2%2
|
|
● Life
of Mine (LoM) of ~28 years3
|
|
● First
ore milled estimated to be ~4.75 years from grant of Special Mining
Lease (SML)
|
Summary of key changes from 2016
Preliminary Study findings4
|
● Proposed
starter block cave is larger (16mpta) and deeper; three block caves
in total
|
|
● Proposed
processing plant to include onsite self-generation of bulk power
and associated fuel handling
|
|
● Deep
Sea Tailings Placement (DSTP) identified as the preferred method of
tailings management
|
|
● Life
of Mine capital expenditure ~US$1bn lower
|
|
● Port
location confirmed and Memorandum of Agreement concluded with PNG
Ports
|
Next steps
|
● Submission
of amended supporting documentation for SML on 20 March
2018
|
|
● Targeting
submission of Environmental Impact Statement (EIS) by end of June
2018
|
Peter Steenkamp,
chief executive officer said “Harmony owns 50% of this tier 1
copper-gold asset. Project economics set out in the Updated Study
demonstrates significant free cash flow generation. Once in
production, the asset has the potential of being one of the lowest
decile cost copper-gold producers. Current copper market trends
highlight the potential for increased copper prices, further
enhancing the economic fundamentals of the
project.”
Peter added:
“We look forward to working with the government of Papua New
Guinea during the permitting process, which is a critical step in
advancing this important project in the best interests of our
shareholders and the people of Papua New
Guinea”.
Summary of Findings from Updated
Feasibility Study (100% terms)1
|
Area
|
Measure
|
Unit
|
2016 Pre -Feasibility Study5
|
2018
Feasibility Study
|
|
Production
|
Maximum Ore
throughput
|
Mtpa
|
14
|
17
|
|
Life of Mine
(LOM)3
|
Years
|
35
|
28
|
|
|
Ore
mined
|
Mt
|
379
|
376
|
|
|
Average copper
grade
|
%
|
1.26
|
1.27
|
|
|
Average gold
grade
|
g/t
|
0.91
|
0.90
|
|
|
Copper produced
LOM
|
Kt
|
4,547
|
4,520
|
|
|
Gold produced
LOM
|
Koz
|
7,058
|
7,445
|
|
|
Average annual
copper production
|
Kt
|
130
|
161
|
|
|
Average annual
gold production
|
Koz
|
202
|
266
|
|
|
Gold
recoveries
|
%
|
64
|
68
|
|
|
Copper
recoveries
|
%
|
95
|
95
|
|
|
Capital
|
Project
capital6
|
US$m
(real)
|
2,656
|
2,825
|
|
Sustaining
capital7
|
US$m
(real)
|
3,725
|
2,557
|
|
|
Total life of
project capital8
|
US$m
(real)
|
6,381
|
5,382
|
|
|
Operating
|
Total operating
cost9 (real)
|
US$/t
|
23.95
|
17.33
|
|
Cash
cost10 (C1) (copper-basis)
|
US$/lb
Cu
|
0.60
|
0.26
|
|
|
Total production
costs (copper-basis)
|
US$/lb
Cu
|
1.23
|
0.81
|
|
|
All-In Sustaining
Cost (gold-basis)
|
US$/oz
sold
|
(1,685)
|
(2,128)
|
|
|
Economic
assumptions
|
Gold
price
|
US$/oz
|
1,200
|
1,200
|
|
Copper
price
|
US$/lb
|
3.00
|
3.00
|
|
|
AUD/USD exchange
rates
|
(real)
|
0.80
|
0.75
|
|
|
PGK/USD exchange
rate
|
(real)
|
2.85
|
3.10
|
|
|
Discount
Factor
|
%
(real)
|
8.5
|
8.5
|
|
|
Financials
|
Net Present Value
(NPV)
|
US$m
|
1,954
|
2,604
|
|
|
Internal Rate of
Return (IRR)2
|
%
(real)
|
17.5
|
18.2
|
|
|
Maximum
cumulative negative free cashflow11
|
US$m
(real)
|
1,763
|
2,823
|
|
|
Payback
period
|
Years
|
10
|
9.5
|
|
|
Free cash flow
generation
|
US$m (real)
LOM
|
12,726
|
13,157
|
Production and Cashflow profile1
Figure 1 below
shows the ore production profile from the three block caves (BC) -
BC44, BC42 and BC40 - together with the associated gold and copper
production profiles.
The periods of
lower ore production around 13 and 19 years post SML grant relate
to the transition between caves as production from the higher cave
ceases and the next (lower) cave starts in higher grade ore.
Further orebody drilling, data analysis and detailed design will
target opportunities to minimise the production variation due to
cave development interactions.
Figure 1: Proposed ore and metal production
Annual
unleveraged cash flows (i.e. cash flows after deducting for capital
costs, operating costs, taxes and royalties, but before any
withholding tax on interest or dividends) are presented in Figure
2. The maximum cumulative negative free cash flow is estimated to
be reached in the second year of mill start-up (approximately six
years after the SML grant), after which the mine is projected to
consistently produce positive free cashflow until
closure.
The project is
projected to generate free cashflow averaging around US$0.9bn per
annum in the first ten years post commercial production (including
being over US$1bn in five of these years) in line with the grade
(and recovery) profile of the ore milled. Periods of lower annual
free cash flow reflect lower grade (and recovery) of the ore milled
(generally towards the end of production from the first two caves),
together with the capital expenditure required to develop
additional block cave extraction levels.
Relative to the
prior studies, maximum negative cash flow11 has increased by
approximately US$1bn. This is predominantly due to the adoption of
DSTP (which has higher upfront capital expenditure but lower life
of mine capital expenditure), construction costs associated with
the on-site power plant, a deeper (and larger) initial block cave
and the larger processing plant. However, over the life of the mine
the total capital expenditure has decreased compared with the
previous study by approximately US$1bn, primarily related to the
lower ongoing costs of DSTP.
|
Year
post grant of SML and board approval
|
Basis
|
1
|
2
|
3
|
4
|
5
|
6
|
|
Undiscounted free
cashflow (US$m)
|
50%
|
(67)
|
(187)
|
(233)
|
(502)
|
(383)
|
(41)
|
|
100%
|
(133)
|
(374)
|
(465)
|
(1,003)
|
(766)
|
(82)
|
Figure 2: Projected free cash flow profile
Metal price sensitivity
analysis1
The estimated IRR of the project will vary accordingly to the
copper and gold prices realised. The table below shows how the
estimated Base Case 18.2% project IRR varies using different price
assumptions:
|
Scenario
|
US$/lb
Cu
|
US$/oz
Au
|
IRR
%
|
|
Base
Case
|
3.00
|
1,200
|
18.2
|
|
Low Price
scenario
|
2.50
|
1,000
|
15.1
|
|
High Price
scenario
|
3.50
|
1,300
|
20.5
|
Mine development1
Based on the
geotechnical analysis of the data received from the 2016
Geotechnical Drilling Program, the updated Feasibility Study
proposes utilisation of the following exploration, design,
development and mining approach:
●
Initial underground access
via the Nambonga Decline, offering the following
advantages:
o
Earlier and quicker access to
underground drill platforms in support of an extensive underground
drilling program (geology, geotechnical, hydrogeological,
metallurgical)
o
Affords access to an
underground work front in support of developing the twin Watut
Declines from both surface and from underground
o
De-risks Project Execution
and the critical path to achieving first production
o
Has future use as a second
means of egress, and replaces a blind-sunk intake ventilation
shaft
●
Primary underground access
via the Watut Portal and the twin Watut Declines to the underground
block cave mine. The Watut Declines also form part of the primary
ventilation circuit and materials handling system conveying ore to
the Watut Process Plant
●
A ‘Cave Engineering
Level’ established above the Reid Fault at 4,870 metres
reduced level (mRL)12 for data gathering, further refinement
of the rock mass, monitoring of the cave and potentially for
dewatering
●
Ore extracted via three block
caves producing ore at 17Mtpa (design capacity)
Figure 3: Proposed mine design
Due to the
improved understanding of the rock mass gained from the 2016
drilling program, significant effort has been applied to the
extraction level layouts to improve safety and long term production
integrity. The main design improvements have been:
●
Applied learnings from Cadia
East to improve safety of design
●
Production footprints
maximised for capital efficiency
●
Placement of crusher chambers
in barren porphyry
●
Improved extraction level
design enhancing cave stress management
Further drill
data is required for final cave design and positioning. This
drilling will be conducted from the cave engineering level
underground, accessed via the Nambonga Decline.
It is proposed
that the first block cave, BC44, be situated at 4,400 mRL. This
deeper block cave with a larger footprint, compared to prior
studies, results in a net increase in mining capital expenditure of
approximately US$70m. The second block cave, BC42, will be situated
at 4,200 mRL. These block caves are expected to be mined for 7 and
9 years respectively during the first 14 years of the mine life.
The third block cave, BC40, proposed to be situated at 4,000 mRL,
is expected to be mined for 16 years leading to a total mine life
of 28 years from first production of the processing plant
(excluding construction and closure phases). The ore body remains
open at depth and ultimate life of mine is still to be
determined.
During caving
operations, ore from the block cave drawpoints is planned to be
delivered by autonomous load-haul-dump vehicles to underground
crushers. The proposed Material Handling System (MHS) includes two
crushers on each level, from which the crushed ore is to be
conveyed to the surface via dedicated transfer conveyors. The ore
conveyor emerging at the portal terrace on the surface will
continue overland to deliver crushed ore to a coarse ore stockpile
adjacent to the Watut Process Plant. The MHS is designed to manage
17Mtpa.
Due to high
surface ambient temperatures and humidity, and the depth of the
mine, considerable ventilation and cooling capacity is expected to
be installed to ensure the health and safety of mine workers. Bulk
air cooling facilities have been designed for both the Watut portal
and in underground chambers to ensure that the air is cooled close
to work areas for health and safety as well as for efficiency and
effectiveness.
The mine
dewatering designs include the dewatering from the block caves to
surface using a cascade pumping system. Emergency dewatering in the
case of extreme rainfall entering the cave through the subsidence
zone is also catered for. The extraction level is sloped away from
the crusher chambers to provide emergency surge storage capacity.
In addition, all pump stations and electrical equipment associated
with dewatering are installed above the flood line, to ensure mine
dewatering can still be achieved during and after a flood
event.
Processing plant1
The proposed
Watut Process Plant is a compact copper concentrator that is
progressively built (in line with the profile of the mine ramp up)
to be capable of safely and efficiently processing 17Mtpa of
crushed ore to produce a high-grade copper
concentrate.
The facility
comprises a semi-autogenous grinding mill, two ball mills and a
recycle crushing configuration, flotation, thickening, concentrate
pumping and tailings pumping systems. The facility is designed to
recover copper and gold on average over Life of Mine at 94% and 68%
respectively. Concentrate grade average over the Life of Mine is
assessed to be 29% copper and 15g/t gold.
The Watut Process
Plant is designed to treat approximately 8.4Mtpa of ore for the
first three years of operation. The slow mine production ramp-up
will necessitate intermittent operation, particularly during the
first two years of mine life. The inclusion of an additional ball
mill and additional flotation cells in the fourth year is designed
to enable the Watut Process Plant to ramp up to approximately
17Mtpa. The proposed installation of the Golpu pyrite flotation and
regrind circuit the following year facilitates the processing of
ore containing a higher metasediment content from year five
onwards.
Figure 4: Proposed Watut Process Plant
Tailings management
Three types of
tailings management options have been considered during the various
studies undertaken since 2012, those being various terrestrial
tailings storage facilities, dry-stacking and DSTP.
The study of 45
sites for terrestrial tailings storage options for the Wafi-Golpu
Project has highlighted the following:
●
The required storage volumes
would result in a large disturbance footprint over an area which
can have high traditional heritage and economic value, high
biodiversity, and/or displacement of communities and their
livelihoods
●
The project area has high
seismicity and complex geology, including active faulting, which
could at some sites result in liquefiable soils. Complex design
would be required to partly mitigate such factors, and that would
carry high risk and high cost in both construction and ongoing
operation
●
The project area has high
rainfall and large water catchment, which would require significant
and costly water management treatment solutions. Any structure
would contain very large amounts of water with commensurate
risks
●
Due to terrain and
geotechnical complexity, multiple storage sites and types of
tailings management would be required for a life of mine
solution
●
The mining operation would be
exposed to complex tailings operations, closure and rehabilitation
risk and the residual risks for terrestrial tailing storage
facilities would remain high in perpetuity
The assessment on
dry-stacking concluded that the risks of dry-stacking are
essentially the same as a conventional terrestrial tailings storage
facility.
DTSP studies have
been conducted as part of the 2017-18 work program. Oceanographic
and environmental studies in the Western Huon Gulf to date have
confirmed that area to be a highly suitable environment for DSTP.
It hosts a deep canyon leading to a very deep oceanic basin with no
evidence of upwelling of deeper waters to the surface. The tailings
are expected to mix and co-deposit with a significant, naturally
occurring loading of riverine sediments from the Markham, Busu and
other rivers that also are conveyed via the Markham Canyon to the
deep sea. Around 60mtpa of sediment has been estimated. The
pelagic, deep-slope and sea floor receiving environment has a very
low biodiversity as a result of the riverine sediment transport,
deposition and regular mass movements (underwater landslides).
These same riverine sediments are expected to also bury the
co-deposited tailings at closure and promote benthic recovery to
pre-mine conditions.
Oceanographic
studies have confirmed that a 200m deep outfall for the tailings
disposal will meet the draft Papua New Guinea (PNG) Guidelines for
Deep Sea Tailings Placement, prepared by the Scottish Association
for Marine Sciences on behalf of the State of Papua New
Guinea.
In the light of
the factors considered in relation to terrestrial tailings storage,
the outcomes from the study of 45 terrestrial sites and the
outcomes of the DSTP study work undertaken to date, the updated
Feasibility Study identifies the use of DSTP as the preferred
tailings management solution.
Papua New Guinea
has three existing active DSTP operations (Lihir, Simberi, Ramu
Nickel), one permitted (Woodlark) and one closed
(Misima).
Associated
infrastructure1
To ensure a
reliable base load power supply, a modular designed power plant is
proposed in the Feasibility Study Update with an installed capacity
of 140MW, together with associated fuel supply infrastructure. The
facility is proposed to be located proximate to the Watut Process
Plant with a 22 day fuel storage capacity on site, with a fuel
off-loading and storage facility located in the Port of Lae with 45
day fuel storage and constructed along with an 87km pipeline for
delivery of fuel oil from Lae to the power generation facility. The
decision to build a power plant has increased project capital by
approximately US$170m and reduced operating costs by approximately
US$(4.30)/t milled over life of mine.3 Further work will
continue on identifying other power solutions which may include
hydro, gas, renewable and hybrid.
Two other
pipelines are proposed from the mine – a tailings pipeline to
a DSTP outfall location at the coast and a concentrate pipeline to
the proposed new port facilities at Lae. The proposed new port
facilities will be established within the Port of Lae and be
designed to handle, store and export the peak production rate of
84,000 wet metric tonnes (wmt) of copper concentrate per month. A
conventional storage shed will be designed to hold 70,000wmt of
copper concentrate. The copper concentrate is filtered at the port
via two filter presses and then stored. The design incorporates the
loading of two ship holds simultaneously with the entire shipment
parcel completed within 48 hours. A Memorandum of Agreement has
been signed with PNG Ports Corporation Limited to negotiate the
terms of tenure, make the preferred port location available and not
encumber that preferred location whilst tenure is being secured as
part of the permitting process.
A surface
workshop to serve the maintenance requirements of heavy equipment,
light vehicles, process plant equipment (mechanical and
electrical), general machine shop and warehouse is planned to be
built at site.
Permanent
accommodation facility for rostered employees, is proposed to house
1,400 people along with a temporary construction camp for 1,000
people.
The mine and
processing facilities involve the handling and management of large
volumes of water from underground, waste water and rainfall
run-off. Optimising water management has included the
identification and quantification of the different uses of water,
understanding the risks associated with various source and disposal
pathways, and managing water efficiently to maximise the economic
benefit and minimise the social and environmental impacts
associated with the mining and processing of the ore. The plant is
designed to re-use recycled water where possible. The water
treatment facilities are multistage modules producing water
primarily for re-use and excess water for disposal, at quality
levels within PNG guidelines, into the Watut River.
A new Northern
Access Road is intended to be a 35km long extension from the
Highlands Highway to the Mine Site boundary. The road will be flat,
relatively straight and designed to facilitate safer driving
conditions and reduce travelling time and cost. The road crosses
the Markham and Watut rivers which will require the construction of
two significant bridges and three further bridges across secondary
rivers/creeks.
The cost of the
Northern Access Road, bridges and the two new community roads are
included in the project capital expenditure. These additional roads
will significantly benefit the region and improve social
development by providing remote communities with access to markets
for their agricultural produce.
Continued engagement with local communities and the PNG
Government
Over the past two
years the project has continued its proactive consultation and open
engagement with local communities, including on the plans for DSTP.
Regular updates have been provided to local communities on all
aspects of the project. Local community feedback has been very
supportive and reflected both the rigour of the scientific studies
being undertaken and the ongoing consultative approach. A program
of regular community engagement is scheduled for the coming year,
including a Development Forum which is mandated under the PNG
Government permitting process.
The project will
continue to help local communities throughout the project area
benefit from the social and economic opportunities flowing from
project activities. Community development programs have a strong
focus on unlocking Morobe’s agribusiness potential, working
with 1000 cocoa-growing families towards cultivating 2000 hectares
of cocoa by 2020. Since 2010, the Program has also been investing
in water and sanitation, health, literacy, and road infrastructure
in Morobe Province. Community development flowing from the project
will complement and support National Government’s Vision 2050
goals as well as the Morobe Provincial Government’s Kundu
Vision 2048; the province’s 30-year strategy for Morobe
economic and social development potential.
The PNG
Government recognises the potential of the project to make a
significant economic and social contribution to the country.
Capital expenditure, increased GDP and export earnings, employment,
community investment, and infrastructure are among the benefits
expected to flow to PNG from the project. The PNG Government has
committed to progress the regulatory assessment and approval
process for the project as efficiently as possible.
1 These figures are estimates from the updated
Feasibility Study (as at 19 March 2018) and as such were prepared
with the objective of being subject to an accuracy range of
±15%, with the exception of block cave 40 (due to limited
geotechnical data; further work is planned to obtain orebody data
to confirm rock strength across the BC40 footprint) and associated
infrastructure which was prepared with a prefeasibility accuracy
range of ±25%. As timing for finalisation of the SML or a
suitable fiscal and stability framework and supporting arrangements
is uncertain, valuation outcomes are shown at the time of
commencement of earthworks for the access Nambonga decline. Costs
are based on December 2017 real estimates. Neither the costs nor
real cost escalation impacts prior to commencement of earthworks
are included in the valuation outcomes. The figures are subject to
all necessary permits, regulatory requirements and Board approval
and further works as described below. Ore Reserves information can
be found on page 9, based on Harmony’s 50% interest in the
project. The production target utilises 98% of the full
project’s probable Ore Reserves contained metal. The
production target underpinning the forecast financial information
is contained in the graphs on page 3
2 Project IRR is after all taxes but before any
withholding taxes on dividends or interest
3 From first production of the processing plant
(excluding construction and closure phases)
4 Changes to 2016 Feasibility study update. Refer
to market release 15 February 2016 entitled “Golpu
feasibility study confirms robust investment case” for
further information
6 Project
capital up to commercial production (including US$200m of
capitalised net revenue)
7 Sustaining
capital is all capital incurred post the start of commercial
production and includes both sustaining and expansionary
capital
8 Including
US$200m of capitalised net revenue
9 Total
operating costs include mining costs, processing costs,
infrastructure costs and general and administrative
costs.
10 Cash costs
are total operating costs plus realisation costs, less gold
by-product revenue, divided by total copper
production.
11 Maximum
cumulative negative free cashflow comprises undiscounted free cash
flow from commencement of construction until first year of positive
free cashflow
12 As
measured from sea level being (5000mRL)
Golpu Ore Reserve
The Feasibility Study Update Ore Reserve is estimated to contain
5.5 million ounces of gold and 2.5 million tonnes of copper
(Harmony’s 50% interest). This estimate is materially in line
with previous estimates and reflects updated long term cost and
metal price assumptions and optimised designs in the Golpu
Feasibility Study Update (Refer Golpu Ore Reserve Table
below).
BC44 and BC42, which are at a feasibility level of accuracy,
account for 49% of gold reserves and 52% of copper reserves. BC40,
which is at a pre-feasibility level of accuracy, accounts for 51%
of gold reserves and 48% of copper reserves.
Golpu Ore Reserve13
|
|
Tonnes(Mt)
|
Gold Grade(g/t Au)
|
Copper Grade(% Cu)
|
Insitu Gold(Moz)
|
Insitu Copper(Mt)
|
|
Probable Ore Reserve
|
200
|
0.86
|
1.2
|
5.5
|
2.5
|
The Mineral Resources for the
Wafi-Golpu Project remain unchanged14. Mineral Resources are reported
inclusive of Ore Reserves.
About the Wafi-Golpu Project
Harmony and
Newcrest each currently own 50% of Wafi-Golpu through the
WGJV.
The State of PNG
retains the right to purchase, at a pro rata share of accumulated
exploration expenditure, up to 30% equity interest in any mineral
discovery at Wafi-Golpu, at any time before the commencement of
mining. If the State of PNG chooses to take-up its full 30%
interest, the interest of each of Newcrest and Harmony will become
35%.
The Golpu deposit
is located approximately 65km south-west of Lae in the Morobe
Province of PNG which is the second largest city in PNG and will
host the Wafi-Golpu export facilities. The proposed mine site sits
at an elevation of approximately 200 metres above sea level in
moderately hilly terrain and is located near the Watut River
approximately 30km upstream from the confluence of the Watut and
Markham rivers.
For further information please contact
|
Lauren Fourie
+27 (0)71 607 1498
lauren.fourie@harmony.co.za
|
Marian van der Walt
+27 (0)82 888 1242 Marian@harmony.co.za
|
|
This information is available on our website at
www.harmony.co.za
13 Data is reported to two significant figures to
reflect appropriate precision in the estimate and this may cause
some apparent discrepancies in totals. The Ore Reserve shown
represents Harmony’s 50% interest
14 See
Harmony’s Mineral Resources and Ore Reserves as at 30 June
2017 which is available at
http://www.har.co.za/17/download/HAR-RR17.pdf
Forward Looking Statements
This report contains forward-looking statements within the meaning
of the safe harbor provided by Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended, 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 include all statements other than statements of
historical fact, including, without limitation, any statements
preceded by, followed by, or that include the words
“targets”, “believes”,
“expects”, “aims”, “intends”,
“will”, “may”, “anticipates”,
“would”, “should”, “could”,
“estimates”, “forecast”,
“predict”, “continue” or similar
expressions or the negative thereof.
These forward-looking statements, including, among others, those
relating to our future business prospects, revenues and income,
wherever they may occur in this report and the exhibits to this
report, are essentially 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
this presentation. 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, estimates of
future earnings, and the sensitivity of earnings to the 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 the gold
and other metals prices, statements regarding future debt
repayments, estimates of future capital expenditures, the success
of our business strategy, development activities and other
initiatives, 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, fluctuations in the
market price of gold, the occurrence of hazards associated with
underground and surface gold mining, the occurrence of labor
disruptions, power cost increases as well as power stoppages,
fluctuations and usage constraints, supply chain shortages and
increases in the prices of production imports, availability, terms
and deployment of capital, changes in government regulation,
particularly mining rights and environmental regulation,
fluctuations in exchange rates, the adequacy of the Group’s
insurance coverage and socio-economic or political instability in
South Africa and Papua New Guinea and other countries in which we
operate.
For a more detailed discussion of such risks and other factors
(such as availability of credit or other sources of financing), see
the Company’s latest Integrated Annual Report and Form 20-F
which is on file with the Securities and Exchange Commission, as
well as the Company’s other Securities and Exchange
Commission filings. The Company undertakes no obligation to update
publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this presentation or to reflect the occurrence of unanticipated
events, except as required by law.
Competent Person’s Statement
The information
in this report that relates to Golpu Ore Reserves is based on
information compiled by the Competent Person, Mr Pasqualino Manca,
who is a member of The Australasian Institute of Mining and
Metallurgy. Mr Pasqualino Manca, is a full-time employee of
Newcrest Mining Limited or its relevant subsidiaries, Mr Pasqualino
Manca has sufficient experience which is relevant to the styles of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the JORC Code 2012 and SAMREC 2016 (materially the
same as the JORC code). Mr Pasqualino Manca consents to the
inclusion of material of the matters based on his information in
the form and context in which it appears.
Mr Gregory Job,
BSc, MSc, who has 29 years’ relevant experience and a member
of the Australian Institute of Mining and Metallurgy (AusIMM), is
Harmony’s competent person for Papua New Guinea.
Mr Jaco Boshoff,
BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA is
Harmony’s lead competent person. Mr Boshoff who has 22
years’ relevant experience, is registered with the South
African Council for Natural Scientific Professions (SACNASP) and is
a member of the South African Institute of Mining and Metallurgy
(SAIMM) and
a member of the
Geological Society of South Africa (GSSA).
Ends.
19 March
2018
Corporate
office:
Randfontein
Office Park
P O Box
2
Randfontein
South Africa
1760
T +27 (11) 411
2000
Listing
codes:
JSE:
HAR
NYSE:
HMY
ISIN
no:
ZAE000015228
Registration no:
1950/038232/06
JSE Sponsor: J.P.
Morgan Equities South Africa Propriety Limited
Harmony Gold
Mining Company Limited (Harmony), a world-class gold mining and
exploration company, has operations and assets in South Africa and
Papua New Guinea (PNG). Harmony, which has more than 60
years’ experience in the industry, is the third largest gold
producer in South Africa. Our assets include one open pit mine and
several exploration tenements in PNG, as well as 10 underground
mines and 1 open pit operation and several surface sources in South
Africa. In addition, we own 50% of the significant Golpu project in
a joint venture in PNG.
The
company’s primary stock exchange listing is on the JSE with a
secondary listing on the New York Stock Exchange. The bulk of our
shareholders are in South Africa and the United States. Additional
information on the company is available on the corporate website,
www.harmony.co.za.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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Harmony Gold Mining Company
Limited
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Date: March 19,
2018
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By:
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/s/ Frank Abbott
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Name
Frank
Abbott
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Title
Financial
Director
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