Blueprint
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.)
(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.)
Harmony Gold
Mining Company Limited
Registration
number 1950/038232/06
Incorporated in
the Republic of South Africa
ISIN:
ZAE000015228
JSE share code:
HAR
("Harmony" or the
"Company")
Harmony takes tier 1 Wafi-Golpu gold-copper asset up the value
curve
Johannesburg, Monday, 19 March 2018.
Harmony Gold Mining Company Limited (“Harmony” and/or
“the Company”) is pleased to announce an updated Wafi-Golpu Feasibility Study
(“the Updated Study”) prepared by the Wafi-Golpu Joint
Venture (WGJV) project team.
The Updated 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
highlights include1:
●
33% increase in net present
value (NPV) to US$2.60 billion (applying a discount rate of
8.5%)
●
Attractive internal rate of
return (IRR) of 18.2%
●
Proposed larger mine with
increased mining rates - average annual steady state production of
161 000 tonnes of copper and 266 000 ounces of gold
●
Forecast to generate
significant free cashflows, averaging around USD900 million per
annum in the first ten years of steady state
production
-
5.5 years to early stage cash
flow
-
lowest decile cost copper
production of US$0.26/lb
●
Life of mine capital
expenditure US$1 billion lower
1 All figures
represented on a 100% basis. Harmony and Newcrest Mining Limited
each currently own 50% of Wafi-Golpu through the Wafi-Golpu Joint
Venture.
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”.
The updated and
optimised feasibility study incorporates self-generation power
supply options and supports the suitability of deep sea tailings
placement as the preferred tailings deposit solution. Progression
through stages of the project - and the timing of those stages - is
subject to market and operating conditions and receipt of all
necessary approvals, including the respective board
approvals.
Please refer to
our website at https://www.harmony.co.za/invest for additional
documents in support of this release including the forward looking
statements relating to this release.
March 2018 quarter production update
Production at
Harmony's South African operations (excluding the Moab Khotsong
operations) for the quarter ended 31 March 2018 is expected to be
in line with the production of the comparative quarter last year.
Production at Hidden Valley continues to ramp up as planned and is
expected to be over 25% higher than the comparative quarter last
year.
As announced on
20 February 2018, Harmony acquired the Moab Khotsong operations
with effect from 1 March 2018. The integration of the Moab Khotsong
operations is progressing well. June 2018 guidance for Moab
Khotsong will be provided in the published quarterly operational
update.
Harmony remains
on track to achieve its FY18 group production guidance of 1.1Moz
(in addition to the production from Moab Khotsong).
Ends.
Harmony will host an analyst call at 10:00 SA time, a media call at
11:00 SA time and an international call at 15:00 SA time on Monday
19 March 2018.
Conference calls dial-in numbers
South Africa
Toll-free:
0 800 201
648
Toll:
011 535
3600
010 201
6800
UK
0 333 300 1418
(Toll)
USA and Canada
+1 508 924 4326
(Toll)
Australia
+1 800 350 100
(Toll-free)
Other countries
Toll
+27 10 201
6800
For more details
contact:
Lauren
Fourie
Investor
Relations Manager
+27
(0)71 607 1498 (mobile)
or
Marian van der
Walt
Executive:
Corporate and Investor Relations
+27 (0) 82 888
1242 (mobile)
19 March
2018
Sponsor:
J.P. Morgan
Equities South Africa Proprietary Limited.
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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