Harmony Gold Mining Co. Ltd. Q4 FY2020 earnings call

• Achieved better-than-expected production in Q4 FY '20 despite COVID-19, with a 25% increase in average gold price received.
• Progressing strategy of producing safe profitable ounces and increasing margins. Newly acquired assets and Tier 1 projects like Wafi-Golpu to grow production.
• Managed and mitigated COVID-19 risks, achieving higher-than-anticipated production in Q4. Addressed flexibility issues, with development control rooms in place to manage operations.
• Focus on safe ounces was crucial during the COVID-19 pandemic, with higher-than-anticipated production in the last quarter of the year.

Production profit increased 9% to ZAR 7.1 million. Revenue rose 9% to ZAR 25.2 billion. Average gold price received saw a 25% increase. Average underground recover grade decreased from 5.59 to 4.45. The company achieved better-than-expected production in the fourth quarter of FY '20 despite COVID-19 challenges.

• Anticipate continuing strength of the gold price. Newly acquired assets will help grow production. Tier 1 projects like Wafi-Golpu and organic projects in South Africa to be incorporated into the portfolio.
• CapEx guidance for next year to be provided in October. Hedging policy to maintain 20% on production and 25% on ForEx.
• Plan to start paying dividends again once debt is reaped and projects with strong returns are invested in, with good balance sheet flexibility to support growth.

• Uncertain impact of COVID-19 second wave. Delays in bringing back foreign nationals due to administrative hurdles. Environmental management risks with new assets, including water management and rehabilitation provisions. Uncertainty around gold price fluctuations affecting reserves and life of mine.

Q: Around flexibility and operational impact of lack of flexibility.

A: Peter Steenkamp addressed flexibility issues, redeploying crews, and development control rooms in place to manage operations.

Q: On cost-cutting initiatives and impact on productivity.

A: Boipelo Lekubo talked about labor and electricity costs, cost-saving initiatives like reduced capital spend.

Q: On derivative loss, CapEx, and hedging.

A: Boipelo Lekubo explained derivative losses, CapEx guidance to be provided in October, and hedging policy of maintaining 20% on production and 25% on ForEx.

Q: On unit costs, guidance for '21, and reserves.

A: Boipelo Lekubo and Peter Steenkamp discussed cost increases, guidance conservatism due to COVID-19 uncertainties, and reserve sensitivity to gold price.

Q: On hedging policy, integrating assets, and cash priorities.

A: Boipelo Lekubo and Peter Steenkamp talked about hedging limits, integration synergies of new assets, and cash priorities to reap debt and start paying dividends.

Q: On environmental risks with new assets.

A: Peter Steenkamp discussed environmental trust funds, water management, and uranium opportunities with new assets.

Q: On Wafi-Golpu project and production guidance.

A: Peter Steenkamp provided updates on Wafi-Golpu project progress and production guidance conservatism