Harmony Gold Sees 132% EPS Jump, Record Cash Flow in FY24

Ticker: HGMCF · Form: 6-K · Filed: Sep 5, 2024 · CIK: 1023514

Harmony Gold Mining CO LTD 6-K Filing Summary
FieldDetail
CompanyHarmony Gold Mining CO LTD (HGMCF)
Form Type6-K
Filed DateSep 5, 2024
Risk Levelmedium
Pages16
Reading Time19 min
Key Dollar Amounts$681 million, $1, $3, $2, $117 million
Sentimentbullish

Sentiment: bullish

Topics: earnings, dividend, gold, financial-results

Related Tickers: HMY

TL;DR

Harmony Gold crushed FY24: EPS up 132%, cash flow up 111%, dividend declared. Gold price and grades are driving this!

AI Summary

Harmony Gold Mining Company Limited reported its FY24 results for the year ended June 30, 2024. Headline earnings per share surged 132% to 1,852 SA cents (99 US cents), and operating free cash flow increased 111% to R12,743 million (US$681 million). The company declared a final dividend of 94 SA cents (5 US cents) per share, driven by higher recovered grades and an increased average gold price received.

Why It Matters

This report indicates strong operational performance and financial health for Harmony Gold, potentially signaling increased shareholder value and a positive outlook for the company's gold production.

Risk Assessment

Risk Level: medium — While results are strong, the mining industry is subject to commodity price volatility, operational risks, and regulatory changes.

Key Numbers

Key Players & Entities

FAQ

What was the LTIFR for FY24 and how does it compare to previous years?

The group LTIFR for FY24 was 5.53, which is below 6 for the third consecutive financial year, slightly up from 5.49 in the prior year.

What was the headline earnings per share for FY24?

Headline earnings per share for FY24 was 1,852 SA cents (99 US cents).

What is the declared final dividend per share?

A final dividend of 94 SA cents (5 US cents) per share has been declared.

How much did operating free cash flow increase in FY24?

Operating free cash flow increased by 111% to R12,743 million (US$681 million).

What was the percentage increase in group revenue for FY24?

Group revenue increased by 25% to R61,379 million (US$3,282 million).

Filing Stats: 4,771 words · 19 min read · ~16 pages · Grade level 11.9 · Accepted 2024-09-05 09:48:26

Key Financial Figures

Filing Documents

From the Filing

a6kfiling2024-09x05 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6­K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a­16 OR 15d­16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For September 5, 2024 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 20­F or Form 40­F.) Form 20F Form 40F (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 12g3­2(b) under the Securities Exchange Act of 1934.) Yes No 1 HARMONY GOLD MINING COMPANY LIMITED FY24 RESULTS FOR THE YEAR ENDED 30 JUNE 2024 Proactive safety strategy with group LTIFR1 of 5.53 from 5.49 per million hours worked, below 6 for third consecutive financial year 132% increase in headline earnings per share to 1 852 SA cents (99 US cents) per share from 800 SA cents (45 US cents) per share A final dividend2, 3 declared of 94 SA cents (5 US cents) per share Record operating free cash flow4, up 111% to R12 743 million (US$681 million) driven by higher recovered grades and a higher average gold price received 6% increase in underground recovered grades to 6.11g/t from 5.78g/t 6% increase in total gold production to 48 578kg (1 561 815oz) from 45 651kg (1 467 715oz) Increase in production of 17% at Mponeng, 34% at Mine Waste Solutions and 17% at Hidden Valley due to improved recovered grades 1% increase in group all-in sustaining costs (AISC) to R901 550/kg (US$1 500/oz) from R889 766/kg (US$1 558/oz) 16% increase in average gold price received to R1 201 653/kg (US$1 999/oz) from R1 032 646/kg (US$1 808/oz) 25% increase in group revenue to R61 379 million (US$3 282 million) from R49 275 million (US$2 774 million) Operating free cash flow of R2 188 million (US$117 million) generated by Hidden Valley due to excellent recovered grades, compared to R615 million (US$35 million) Strong, flexible balance sheet now in a net cash position of R2 899 million (US$159 million) Liquidity of R12 649 million (US$695 million) in cash and undrawn facilities Copper represents 21% of total declared Mineral Resources of 136.5 million ounces (Moz); declared Mineral Reserves increased by 2% to 40.3Moz Expanded renewable programme to over 500MW from 363MW to support life-of-mine extensions MESSAGE FROM THE CHIEF EXECUTIVE OFFICER OVERVIEW In the past financial year, Harmony delivered an exceptional combined performance across our operations. This achievement was a result of clear strategic intent and successful execution, enabling us to deliver above plan and capitalise on higher gold prices. This resulted in a record year for the Company. We aim to excel at what we do and I believe we achieved this goal. While the gold price received continues to provide sustained tailwinds, the true driver of value has been our investment in quality ounces alongside our demonstrated capability in the regions we operate. As we transform into a global gold-copper producer, the foundations are in place which will enable us to continue on this growth trajectory through the extraction of safe, profitable ounces and value accretive acquisitions. Sustainable mining and embedded environmental, social and governance (ESG) practices have resulted in a lower overall risk profile. Safety remains our priority. We continue to strive for zero harm through the proactive monitoring of leading indicators, the use of real-time data and the continual reinforcement of personal ownership of safety. Our long-term safety record continues to trend in the right direction. Our lost time injury frequency rate for FY24 is 5.53 per million hours worked from 5.49 in FY23. We remain on the right path, evidenced by our leading and lagging safety indicators which continue to improve. Our strong operational metrics, which include grade, costs and production, have resulted in an expansion in operating free cash flow margins and improved profitability. Our ongoing investment in quality ounces is delivering the desired results resulting in improved cash certainty. We have created a long, diversified production profile with substantial gold and copper Mineral Resources of 136.5 million ounces and Mineral Reserves of 40.3 million ounces. This offers excellent Mineral Reserve conversion potential and cash generation, both now and in years to come. Group production for this reporting period increased by 6% to 48 578kg (1 561 815oz) from 45 651kg (1 467 715oz) in FY23. This was mainly due to higher recovered grades at Mponeng, Hidden Valley and Mine Waste Solutions. Recovered grades at the South African underground operations increased by 6% to 6.11g/t from 5.78g/t in the previous reporting period. This was driven by our high-grade operat

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