Full Year 2024 Harmony Gold Mining Company Ltd Earnings Call Transcript
Key Points
- Harmony Gold Mining Co Ltd (HMY) reported a record year with gold production increasing by 6% to 1.56 million ounces, surpassing their upwardly revised guidance.
- The company achieved a significant improvement in underground recovered grades, which increased by 6% to 6.11 grams per tonne.
- Operating free cash flow increased by over 100% to a record ZAR13 billion (USD681 million) at a margin of 22%, driven by higher recovered grades and strong gold prices.
- Harmony Gold Mining Co Ltd (HMY) has strengthened its balance sheet, now in a net cash position of ZAR2.9 billion (USD115 million).
- The company is making substantial investments in high-quality assets and key projects, such as the Eva Copper Project and Wafi-Golpu, which are expected to be transformational and move Harmony further down the global cost curve.
- Despite the positive financial performance, Harmony Gold Mining Co Ltd (HMY) reported the loss of seven colleagues during the financial year, indicating ongoing safety challenges.
- The company expects lower grades at the Hidden Valley mine in FY 25, which could impact production levels.
- Capital expenditure is set to increase significantly to ZAR10.8 billion (just under USD600 million) in FY 25, indicating a period of higher capital intensity.
- The all-in sustaining cost is expected to rise to between ZAR1.02 and ZAR1.1 million per kilogram in FY 25, reflecting higher development capital spend and inflationary increases.
- The company faces challenges in securing permits for the Wafi-Golpu project, which is critical for its long-term growth strategy.
Good morning.
My name is Peter Steenkamp. I'm the CEO of Harmony, and it's a pleasure to be here today presenting the full year results for the financial year that ended on the 30th of June 2024.
Please note the note of the Safe Harbor statement and allow me to start with a short update on Harmony and our strategy. Omni is a gold mining specialist with a growing international copper footprint. We also produce small amounts of solar and Iranian, and we have over 74 years of gold mining experience in South Africa, and we have been operating for over two decades in Papua New Guinea on mineral resources and mineral reserve declaration of close 237 million ounces and 40 million ounces of gold and gold and governance respectively, positions Harmony as a significant global mining company. Currently, our diversified portfolio of operating assets include nine underground mines, two open pit mines and the significant tailings retreatment business. Surface retreatment is a great ESG story with a potential
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