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 23 February 2016
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.)
Form 20-F X
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.)
Yes
No X
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Issued by Harmony Gold
Mining Company Limited
Mining Company Limited
For more details contact:
Henrika Ninham
Investor Relations Manager
+27(0) 82 759 1775
Investor Relations Manager
+27(0) 82 759 1775
Marian van der Walt
Executive: Corporate and Investor
Relations
+27(0) 82 888 1242
Executive: Corporate and Investor
Relations
+27(0) 82 888 1242
Corporate office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
Listing codes:
JSE:
JSE:
HAR
NYSE:
HMY
ISIN no:
ZAE000015228
ZAE000015228
Registration no: 1950/038232/06
Harmony Gold Mining Company Limited
(Harmony), a world-class gold mining
and exploration company, has
operations and assets in South Africa
and Papua New Guinea. Harmony,
which has more than 60 years’
experience in the industry, is the third
largest gold producer in South Africa.
Our assets include 9 underground
mines and 1 open pit operation and
several surface sources in South Africa.
Our assets in PNG – an open pit mine
(Hidden Valley), as well as the
significant Golpu project – are held in a
joint venture. We also own several
exploration tenements, in Papua New
Guinea.
(Harmony), a world-class gold mining
and exploration company, has
operations and assets in South Africa
and Papua New Guinea. Harmony,
which has more than 60 years’
experience in the industry, is the third
largest gold producer in South Africa.
Our assets include 9 underground
mines and 1 open pit operation and
several surface sources in South Africa.
Our assets in PNG – an open pit mine
(Hidden Valley), as well as the
significant Golpu project – are held in a
joint venture. We also own several
exploration tenements, in Papua New
Guinea.
The company’s primary stock exchange
listing is on the JSE with a secondary
listing
listing is on the JSE with a secondary
listing
on the New York Stock
Exchange. The bulk of our shareholders
are in South Africa and the United
States. Additional information on the
company is available on the corporate
website, www.harmony.co.za.
are in South Africa and the United
States. Additional information on the
company is available on the corporate
website, www.harmony.co.za.
Harmony secures cash flow; continues to repay debt
Johannesburg: Tuesday, 23 February 2016 . Harmony Gold Mining Company
Limited (Harmony and/or the Company) advises that it has entered into foreign
exchange hedging contracts in respect of the Rand/US dollar (“$” or “US$”) exchange
rate for a nominal US dollar value of approximately US$400 million.
“The weakness in and volatility of the rand presented an opportunity to Harmony to
establish a very attractive minimum exchange rate on the US dollars we receive when
we sell our gold, while leaving our shareholders fully exposed to the upside in the
US$ gold price. At the same time this provides more certainty on our margins and
cash flows, enabling us to reduce our debt, strengthen our balance sheet and provide
us with further confidence that we can fund the Golpu project”, said Frank Abbott,
financial director of Harmony.
These hedging contracts have been done in the form of zero cost collars* (“collars”).
The collars establish a floor or minimum exchange rate for Harmony’s future US$ gold
sale proceeds, while also establishing a cap or maximum exchange rate at which its
future US$ gold sale proceeds could be exchanged into rands.
The hedging contracts are spread over a 12 month period with an average floor price
of R15.59/$ and an average cap price of R18.60/$. To date, US$400 million
(approximately R6.2 billion) has been hedged. This amounts to approximately one
third of Harmony’s expected US$ gold sale proceeds over a 12 month period.
Since 31 December 2015, Harmony has repaid a further $20 million on the $250
million revolving credit facility leaving the utilised balance at $180 million.
* A zero cost collar comprises a purchased put option and a sold call option, where the premium paid and
premium received offset each other.
Ends.
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.
Dated: February 23, 2016
Harmony Gold Mining Company Limited
By:
/s/ Frank Abbott
Name: Frank Abbott
Title: Financial Director
Title: Financial Director