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Harmony Gold Mining Company Limited (HMY) H1 2023 Earnings Call Transcript
2023-03-03 19:04
Financial Data and Key Metrics Changes - Revenue increased by 6% to R23.3 billion from R22 billion, while headline earnings per share rose by 18% to R2.93 [25] - EBITDA decreased by 12% to R8.1 billion from R9.3 billion [25] - Group operating free cash flow decreased by 14% to R1.9 billion from R2.3 billion, attributed to major capital projects [25] - Net debt increased to R4.7 billion from R757 million, with net debt to EBITDA remaining below one times [26] Business Line Data and Key Metrics Changes - Year-on-year gold production was down 5%, primarily due to the closure of Bambanani, but production was largely flat when adjusted for this closure [16] - Operating free cash flow from South African underground operations increased by 96% to R815 million, contributing significantly to group production [18] - High-grade assets, Mponeng and Moab Khotsong, showed strong performance with recovered grades improving by 6% to nearly 8 grams per tonne [20] Market Data and Key Metrics Changes - The first 30 megawatts of renewable solar energy is expected to come online in the fourth quarter of the financial year, contributing to cost savings [29] - The acquisition of Eva Copper was completed for US$170 million, enhancing Harmony's copper portfolio [26] Company Strategy and Development Direction - Harmony aims to produce safe, profitable ounces and improve margins through operational excellence and value-accretive acquisitions [33] - The company is focusing on high-grade and higher-margin projects, with a clear set of investment criteria to lower overall risk and improve margins [32] - The strategic objective includes progressing renewable energy projects to enhance energy security and reduce costs [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining good grades at high-grade mines despite variability, emphasizing the importance of mining practices and seismic response management [36][38] - The company is actively managing load curtailment impacts and has implemented strategies to mitigate its effects on operations [53] Other Important Information - The company has a strong focus on sustainability and ESG practices, with initiatives aimed at improving safety and reducing environmental impact [12][13] - Harmony's dividend policy is to pay a return of 20% of net free cash generated, but no interim dividend was declared for this reporting period due to capital requirements [26][39] Q&A Session Summary Question: Variability at Moab and Mponeng grades - Management indicated that grade variability is special in nature and attributed to mining practices and seismic response management [36][38] Question: Outlook on final dividend - The decision not to declare a dividend was based on capital requirements and net debt considerations, with future dividends at the discretion of the Board [39] Question: Renewable energy program costs and risks - The first phase of the renewable energy program is expected to yield significant cost savings, with further phases planned to enhance energy security [44][29] Question: Investment in digital technologies for operational excellence - The company is actively investing in technology to improve operational efficiency and safety protocols [41][43] Question: Broader strategy for diversification into other metals - Harmony is currently focused on gold and copper, with no immediate plans to diversify into other metals [62] Question: Ability to extract cash from Papua New Guinea amid FX shortages - Management acknowledged the challenges but expressed confidence in their ability to manage cash extraction from PNG [68]
Harmony(HMY) - 2023 Q4 - Earnings Call Presentation
2023-03-03 18:18
© Harmony HARMONY" H1FY23 RESULTS PRESENTATION FORWARD LOOKING STATEMENTS Competent Person's statement 1 March 2023 JSE ticker code: HAR NYSE ticker code: HMY MINING WITH PURPOSE 2 The foregoing factors and others described under "Risk Factors" in our Integrated Annual Report (www.har.co.za) and our Form 20-F should not be construed as exhaustive. We undertake no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of th ...
Harmony(HMY) - 2022 Q4 - Annual Report
2022-10-31 12:26
HARMONY GOLD MINING COMPANY LIMITED Technical Report Summary of the Mineral Resources and Mineral Reserves for Wafi-Golpu Project Morobe Province, Papua New Guinea Effective Date: 30 June 2022 Final Report Date: 12 July 2022 Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission ...
Harmony(HMY) - 2021 Q4 - Annual Report
2021-10-29 16:27
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 October 29, 2021 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 40F.) Form 20F ☒ ...
Harmony(HMY) - 2021 Q4 - Earnings Call Transcript
2021-08-31 16:06
Harmony Gold Mining Company Limited (NYSE:HMY) Q4 2021 Earnings Conference Call August 31, 2021 4:00 AM ET Company Participants Peter Steenkamp - CEO Boipelo Lekubo - Financial Director Harry Ephraim - Executive Director Marian van der Walt - Senior Group Executive, Enterprise Risk and Investor relations Herman Perry - CFO, Treasury Jared Coetzer - Head of IR Conference Call Participants Adrian Hammond - SBG Securities Leroy Mnguni - HSBC Jared Hoover - RMB Morgan Stanley Peter Steenkamp Good day. And thank ...
Harmony(HMY) - 2021 Q4 - Earnings Call Presentation
2021-08-31 13:44
HARMONY © Harmony AUGUST 2021 RESULTS f o r t h e f i n a n c i a l y e a r e n d e d 3 0 J u n e 2 0 2 1 JSE Ticker Code: HAR NYSE Ticker Code: HMY Peter Steenkamp, Chief Executive Officer Boipelo Lekubo, Financial Director SUSTAINABLE GOL 2 © Harmony PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange Act and Section 27A ...
Harmony Gold Mining Company Limited (HMY) CEO Peter Steenkamp on Q2 FY21 Results - Earnings Call Transcript
2021-02-23 21:37
Harmony Gold Mining Company Limited Q2 2021 Earnings Conference Call Summary Company Overview - **Company**: Harmony Gold Mining Company Limited (NYSE:HMY) - **Date of Call**: February 23, 2021 - **Participants**: - Max Manoeli - Investor Relations Manager - Peter Steenkamp - Chief Executive Officer - Boipelo Lekubo - Financial Director Key Points Financial Performance - Harmony reported exceptional performances in the first half of 2021, supporting its growth strategy initiated in 2016 through acquisitions and portfolio optimization [4][5] - The company declared an interim dividend of ZAR 1.10, reflecting its commitment to delivering positive shareholder returns [5] Dividend Policy - The dividend is based on 20% of net free cash, defined as operating free cash flow after capital, interest, tax, and other expenses [7][9] - Future major capital expenditures and net debt to EBITDA ratios will influence dividend decisions [9][30] Cost Guidance - All-in sustaining cost guidance for the year increased to ZAR 700,000/kg to ZAR 720,000/kg due to additional production from acquired assets and increased royalties [8][13] - COVID-related costs and high royalties are impacting overall costs, but the company maintains that its all-in sustaining costs are in line with guidance [45][46] Asset Management and Acquisitions - Harmony has transformed into an emerging market mining specialist, focusing on creating value throughout the mining cycle [4] - The company has successfully integrated assets from AngloGold Ashanti, which are expected to enhance production and operational efficiency [12][14] Project Development - The Wafi-Golpu project in Papua New Guinea (PNG) has received environmental approval, and the company is re-engaging with the PNG government for further development [21][23] - The company holds 170 million ounces of resources, with a significant portion expected to convert to reserves, particularly from the Wafi-Golpu project [22] Hedging Strategy - Harmony's hedging policy remains unchanged, targeting to hedge 20% of gold production over 24 months, with a focus on locking in margins of 25% above costs [31][32] - The company aims to be selective in hedging to avoid opportunity losses during periods of high market prices [32][35] Stakeholder Engagement - Harmony emphasizes its commitment to sustainable mining practices and community engagement as part of its growth strategy [50] Risks and Challenges - The company faces challenges related to negotiations with various stakeholders in PNG regarding project licensing and fiscal arrangements [24][25] - There is a recognition that if gold prices drop significantly, the company may need to restructure, as hedging alone cannot mitigate all risks [36][37] Additional Insights - The integration of AngloGold assets is expected to yield synergies, with potential conversions of plants to retreatment facilities [16][18] - The company is cautious about its future capital expenditures, indicating that increased spending could impact dividend payouts [30] This summary encapsulates the key discussions and insights from the Harmony Gold Mining Company Limited Q2 2021 earnings conference call, highlighting the company's financial performance, strategic initiatives, and future outlook.
Harmony(HMY) - 2021 Q2 - Earnings Call Presentation
2021-02-23 14:17
HARMONY JSE Ticker Code: HAR NYSE Ticker Code: HMY 23 FEBRUARY 2021 © Harmony INTERIM RESULTS FOR THE SIX-MONTH PERIOD ENDED 31 DECEMBER 2020 Peter Steenkamp, Chief Executive Officer Boipelo Lekubo, Financial Director SUSTAINABLE GOL PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER 2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange Act and Section 27A of the Securities ...
Harmony(HMY) - 2020 Q4 - Earnings Call Transcript
2020-09-15 14:22
Harmony Gold Mining Company Limited (NYSE:HMY) Q4 2020 Results Earnings Conference Call September 15, 2020 2:30 AM ET Company Participants Peter Steenkamp - Chief Executive Officer Boipelo Lekubo - Executive Director Frank Abbott - Executive director, Business Development Harry Ephraim - Executive Director Max Manoeli - Investor Relations Marian van der Walt - Senior Group Executive, Enterprise Risk and Investor relations Herman Perry - Chief Financial Officer, Treasury Conference Call Participants Arnold V ...
Harmony(HMY) - 2020 Q4 - Earnings Call Presentation
2020-09-15 12:15
© Harmony RESULTS FOR THE YEAR ENDED 30 JUNE 2020 FY20 15 September 2020 Peter Steenkamp, Chief Executive Officer Boipelo Lekubo, Financial Director Harmony Gold Mining Company Limited JSE ticker code HAR; NYSE ticker code: HMY PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER 2 © Harmony FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange Act and Section 27A of the Securi ...