Harmony confident it will continue to deliver long-term positive returns

“We are confident in our ability to deliver long-term positive shareholder and stakeholder returns and remain committed to achieving our strategic objective of safe, profitable ounces,” CEO Peter Steenkamp said in a statement.

He noted that, “through careful and strategic capital allocation decisions”, almost all of the miner’s metrics – both financial and non-financial – had improved.

Covid-19 characterised much of the past financial year and the company’s Covid-19 vaccination programme is under way after it was granted accreditation to administer the vaccine by the South African government.

Five vaccination sites were certified in Gauteng, the Free State and North West and the company is doing bulk registrations for those who wish to receive the vaccine.

In Papua New Guinea (PNG), an employee vaccination programme is also being rolled out with the support of the national and provincial health departments in that country.

Meanwhile, Harmony’s successful acquisition and integration of Mponeng and related assets has been a game changer, enabling the company to grow its gold ounces and de-risk its portfolio, while expanding its margins and improving cash flows “well into the future”.

“Not only are we now the largest gold producer in South Africa by volume, but we have a substantial surface source business with an exciting pipeline of both brownfield and greenfield opportunities,” Steenkamp enthused.

PNG PROJECT
In December last year, Harmony obtained the environmental permit for its tier one Wafi-Golpu project in PNG, further advancing its copper/gold aspirations.

Discussion with the PNG government regarding the special mining lease for Wafi-Golpu restarted during the fourth quarter of the 2021 financial year, which ended on June 30.

Further, the Hidden Valley operation’s mining lease extension was granted by the PNG government for a period of five years and is valid until March 2030. This will allow for further cutbacks and mine-extension opportunities at the operation and highlights Harmony’s strong stakeholder relations in PNG.

From a sustainability perspective, Harmony hosted its inaugural environmental, social and governance (ESG) day in the fourth quarter of the 2021 financial year under the theme of “Who Cares, Wins”.

This, Steenkamp said, allowed Harmony’s management to unpack its integrated and risk-based sustainable development strategy, further emphasising its commitment to sustainable mining, transparent governance and its people.

In addition, the announcement by South African President Cyril Ramaphosa of an increase in the licensing-exemption cap on self-generation to 100 MW was “especially positive” and would further assist the miner in optimising and decarbonising its business through a significant renewable energy programme.

Overall, through the "continual and unwavering commitment to operational excellence", Harmony continued to deliver on its promises to stakeholders and had, as such, met its yearly gold production guidance for the 2021 financial year by producing more than 1.5-million ounces.