Harmony Gold Mining Company Limited (NYSE:HMY) Q4 2020 Earnings Conference Call - Final Transcript
Sep 15, 2020 • 02:30 am ET
Good day, ladies and gentlemen, and welcome to Harmony Gold Results for the Year -- for the Financial Year Ended June 2020. [Operator Instructions] Please note that this conference is being recorded.
I'd now like to hand the conference over to Mr. Peter Steenkamp. Please go ahead, sir.
Thank you, Judith, and good morning, everybody. Thanks for joining us here at the financial and operating results for FY'20 at the year ending on the 30th of June 2020. With me in the team we have got Boipelo, Frank, and Mashego. Executive Directors, Max, Marian, and also Herman. So, feel free to ask any questions later.
Just in terms of our results, our key features of our results is really a 9% increase in production profit to ZAR7.1 billion -- close to ZAR7.2 billion. We had a 3% increase in average underground -- or decrease in average recovered grade of 4.45 [Phonetic] versus 5.59 we had in the previous year. And a 9% increase in revenue to ZAR25.2 billion [Phonetic]. The Company achieved a better-than-expected production performance in the fourth quarter of the -- of FY'20 despite the COVID-19 challenges, and we are at 25% increase in the average gold price received. So that has really been quite a good tailwind that we had.
We make -- continues to make a good progress in executing its -- our strategy of producing safe, profitable ounces and increasing our margins. Our drive for safe ounces was never more applicable than in the last quarter of the financial year as we faced the challenges of managing and mitigating the risks presented by the COVID-19 pandemic. Despite the impact of the South African lockdown and phased restart of the mining in the country, we are pleased to report higher than anticipated production and substantial delivery against our strategy in the last quarter of the year.
We are well-positioned to benefit from the anticipated continuing strength of the gold price. The newly acquired assets will help grow our production and, as conditions improve, Harmony has other Tier 1 projects such as Wafi-Golpu and a pipeline of organic projects in South Africa to incorporate into its portfolio.
We will take any questions if you have.