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HARMONY GOLD MINING COMPANY LIMITED - Operational update for the nine months ended 31 March 2022

Release Date: 12/05/2022 15:15
Code(s): HAR     PDF:  
Wrap Text
Operational update for the nine months ended 31 March 2022

Harmony Gold Mining Company Limited
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
("Harmony" or "the Company")



OPERATIONAL UPDATE
for the nine months ended 31 March 2022 ("Q3 FY22")


RETREATMENT OPERATIONS SHINE; LONG-TERM OBJECTIVES AND FULL YEAR GUIDANCE STILL ON TRACK DESPITE A TOUGH THIRD QUARTER

Johannesburg, South Africa. Thursday, 12 May 2022. Harmony
Gold Mining Company Limited ("Harmony" or "the Company") is
pleased to report its operational performance for the nine months ended
31 March 2022.

Over the past few quarters, there has been a renewed wave of uncertainty,
specifically for gold, as inflation seems to be returning after an almost
30-year hiatus. This uncertainty has been compounded by concerns of low
economic growth, the increasing risk of conflict and further supply chain
disruptions.

Despite our stringent controls and leaner operating model, we are not
immune to the effects of rising costs. Cost increases are now a worldwide
concern and it is imperative we continue to scrutinise our costs while
adapting to what seems to be a period of higher inflation with protracted
supply chain disruptions.

Encouragingly, Harmony has made significant progress in resolving and
adapting to the various disruptions which impacted production across its
operations in South Africa and Papua New Guinea during the course of this
financial year.

Amidst the global uncertainty, we remain focused on our long term goals
and objectives. Uncertainty creates both risks and opportunities but we
continue investing in our people and in quality assets to improve our
structural profitability. We remain committed to creating shared value
through the effective and disciplined allocation of capital in order to
take advantage of these opportunities. Our strategy is to produce safe,
profitable ounces and improve margins through operational excellence and
value-accretive acquisitions. By delivering on our four strategic pillars, the
balance between meeting our short-term goals and achieving our longer-
term objectives will be maintained as we continue "Mining with Purpose".


Nine months of the financial year 2022 ("FY22") – Key operational metrics(*)(#)
                                                                                     Nine         Nine
                                                                    Y-on-Y         months       months
                                                   Unit                  %           FY22         FY21   Comments
 Gold revenue                                      Rm                   2%         30 669       30 166   Higher gold price received and higher production from South African operations
 Gold price                                        R/kg                 1%        877 249      868 964   Higher US$ gold price amidst global geopolitical uncertainty and inflation concerns contributed to a higher Rand gold price received
 Gold produced total                               kg                  (2%)        34 357       34 969   Overall production was impacted in the third quarter as a result of the Hidden Valley overland conveyor belt failure, adverse ground
                                                   oz                  (2%)     1 104 598    1 124 274   conditions at Moab Khotsong, and safety-related stoppages at Mponeng and Bambanani as a result of seismicity. Continuous load-
                                                                                                         shedding and water outages in the Free State have negatively impacted the square meters mined
 Gold production - South Africa                    kg                   2%         32 051       31 470   9-months production from Mponeng and Mine Waste Solutions in this reporting period compared to 6-months in the comparable period
 Gold production – Hidden Valley                   kg                 (34%)         2 306        3 499   Lost production as a result of the failure of the overland conveyor belt
 Underground total tonnes milled                   t'000                3%          4 762        4 618   Improvement from Tshepong Operations, Moab Khotsong, Joel and Doornkop alongside a full 9-months production from Mponeng
 Underground yield                                 g/t                 (3%)          5.39         5.54   Adverse ground conditions at Moab Khotsong alongside the seismicity at Mponeng and Bambanani. We are mining out Bambanani and
                                                                                                         this mine will be closed at the end of June 2022
 On-going development capital                      Rm                  21%          2 074        1 717   Normalisation of capital expenditure post Covid-19. Tshepong Operations, Mponeng and Doornkop primary drivers of the increase
 Major capital                                     Rm                  67%            787          470   Planned capital expenditure at Tshepong sub-75 decline, the Zaaiplaats project and Great Noligwa pillar project at Moab Khotsong,
                                                                                                         Mponeng Carbon Leader project and West complex pump station project
 All-in sustaining cost ("AISC")                   R/kg                15%        825 925      720 572   Normalisation of capital expenditure post-Covid-19, lower Q3 FY22 production at Hidden Valley, Bambanani, Tshepong Operations,
                                                   US$/oz              20%          1 703        1 416   Target 1, Moab Khotsong and Mponeng
 Average exchange rate                             US$/Rand            (5%)         15.09        15.82   Rand strengthened against the US$ year on year
 Adjusted EBITDA(**)                               Rm                 (19%)         7 613        9 439   Lower production and higher AISC

(*)  The financial information has not been reviewed by the Company's external auditors
(**) The Company reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) and non-recurring events. For the reporting period, the non-recurring events include the gain on bargain purchase and acquisition-related costs. 
     Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to and not as a substitute for other measures of financial 
     performance and liquidity
(#)  Quarter-on-quarter operational tables are available on our website: http://www.harmony.co.za


HEALTH AND SAFETY

The Company continues to prioritise the safety of its employees.
Through passionate leadership, resilient management systems, effective
risk management and organisational learning, Harmony is developing
an engaged and interdependent workforce who display a proactive
relationship to safety.

January and February 2022 already served as testimony that we are on
the correct trajectory, with zero loss of life incidents recorded during these
two months. Several notable milestones and achievements were recorded
during the third quarter of FY22. The lost-time injury rate was maintained
below 6 for the second consecutive quarter at 5.99 per million shifts.

It is therefore with deep regret that Harmony reports that one employee,
Mr. Makoae Cosmas Makhang, a tramming team leader at Doornkop, lost
his life in a work-related incident on 11 March 2022. The Company sends
its heartfelt condolences to the family and loved ones of our colleague who
tragically passed away.

We are still in the process of investigating the multiple loss of life
which occurred during routine engineering infrastructure-related work
at our Kusasalethu mine, near Carletonville, which we announced on
9 May 2022. While the timing of the incident happened outside of this
reporting period, we pay our respect to those who lost their lives. It is
our priority to support the families of the deceased as well as everyone
impacted by this tragedy and ensure it never happens again. The names
of those who passed away will be released once all family members have
been informed.

Harmony applies a holistic approach to the health of its employees. This
approach includes initiatives aimed at preventing the spread of Covid-19,
mitigating the impact thereof, curbing occupational diseases and
improving the overall wellness of its employees. The Covid-19 response
and vaccination teams have invested significant time in the management
of Covid-19 at our operations. Currently, all employees are eligible to be
vaccinated at the vaccination sites established at our operations with 85%
of our employees having received a second vaccination.

Please see the Company's website for more information on its safety and
health initiatives and the incidents reported during the quarter, as well as
the Harmony Risk Management guide.


OPERATIONAL PERFORMANCE TO DATE

The South African operations delivered a 2% increase in production to
32 051kg (1 030 459oz) for the nine months ended 31 March 2022 from
31 470kg (1 011 778oz) for the nine-month period ended 31 March 2021
("the comparable period"). Much of this increase was attributable to the
additional three months' production from Mponeng and related assets in
this nine-month period compared to only six months' production in the
comparable period.

Gold production during quarter three of financial year 2022 has been
particularly challenging with electricity and water supply constraints
persisting at our South African operations. With safety as our top priority,
we delayed accessing certain higher-grade areas at Moab Khotsong to
ensure that these areas were structurally well-supported before mining
activities continued and stopped mining in areas impacted by seismicity
at Mponeng and Bambanani. We are mining out Bambanani and this
operation will be closed at the end of June 2022.

Overall production quarter on quarter was down 11% to 10 131kg
(325 719oz) in Q3 FY22 from 11 358kg (365 165oz) in Q2 FY22.
Group cash operating unit cost increased by 14% quarter-on-quarter to
R767 292/kg from R672 745/kg (an increase of 16% to US$1 569/oz from
US$1 356/oz) – primarily as a result of Hidden Valley. We expect Hidden
Valley to return to normalised levels of production in the fourth quarter 
of FY22.

For the nine months to date, total cash operating costs for the group
increased by 14% to R23 952 million from R20 978 million (an increase
of 20% to US$1 588 million from US$1 326 million) against the
comparable period. Most of the increase is attributable to the acquisition
of Mponeng and related assets in financial year 2021 ("FY21"). Excluding
Unisel (which was closed in FY21), and Mponeng and related assets,
group cash operating costs increased by only 8% to R19 574 million
from R18 092 million (an increase of 13% to US$1 297 million from
US$1 143 million).

For the nine months to date, cash operating unit cost for the group
increased by 16% to R697 146/kg from R599 910/kg (an increase of 22%
to US$1 437/oz from US$1 179/oz) against the comparable period. The
unit cost increase was higher than the total cash cost increase due to the
abovementioned production challenges.


ANNUAL PRODUCTION, COST AND GRADE
GUIDANCE

With one quarter's production remaining for FY22, we are confident that
we will achieve our previously revised annual guidance (announced in
February 2022) of:

-  1 480 000 to 1 560 000oz in total production
-  overall AISC guidance of R805 000/kg to R835 000/kg and
-  underground grade guidance at 5.40 to 5.57g/t


AISC

Harmony's overall AISC for the reporting period increased by 15% to
R825 925/kg from R720 572/kg (an increase of 20% to US$1 703/oz from
US$1 416/oz). This remains within guidance. The primary reason for the
increase was the reduced production as a result of the overland conveyor
belt failure at Hidden Valley.

South African operations' AISC increased by 10% to R797 014/kg from
R726 100/kg (an increase of 15% to US$1 643/oz from US$1 427/oz).

At Hidden Valley, we anticipate a significant improvement in AISC as
production returns to normalised levels.


HEDGING

The Company's hedging strategy is proving to be successful as its approach
to hedge more selectively supports stronger margins and cash flows. The
average forward Rand gold price on the hedge book is at R1 037 000/kg
on a net position of 413 000oz at the end of the third quarter. Harmony
will only hedge when it is certain that it can achieve a minimum margin of
25% above AISC and inflation.


BALANCE SHEET AND LIQUIDITY

Net debt has reduced substantially over the nine months, with a
R350 million (US$24 million) decrease to R603 million (US$41 million)
at 31 March 2022 from R953 million (US$65 million) at 31 March 2021.
Quarter on quarter, net debt remained stable at R603 million
(US$41 million) compared to R612 million (US$38 million) at
31 December 2021.

Adjusted EBITDA at 31 March 2022 decreased 19% to R7 613 million
(US$521 million) compared to R9 439 million (US$639 million) at
31 March 2021.

The Company's balance sheet remains strong with net debt to EBITDA stable
at 0.1 times.

On 25 February 2022, an interim dividend of 40 SA cents (2.7 US cents)
per share was declared and paid on 11 April 2022 in line with our policy of
paying 20% of net free cash generated to shareholders.


PAPUA NEW GUINEA

Discussions with the government of Papua New Guinea are ongoing as
it relates to permitting and delivering the much-anticipated Wafi-Golpu
project. At Hidden Valley, production has normalised and the Hidden Valley
mine life extension project continues as planned.


ESG IN ACTION

Harmony remains an example of well-embedded Environment, Social and
Governance (ESG) practices in action. This is encapsulated in the words
"Mining with Purpose". More information can be found in our Task Force
on Climate-related Financial Disclosures and ESG reports at http://www.har.co.za


OPERATING RESULTS - NINE MONTHS ON NINE MONTHS (RAND/METRIC)

                                                                                                                                              SOUTH AFRICA
                                                  Nine                                                                                   UNDERGROUND PRODUCTION
                                                  months           Tshepong            Moab                                                                                                                                 Total
                                                  ended          operations        Khotsong          Mponeng      Bambanani             Joel       Doornkop       Target 1    Kusasalethu      Masimong    Unisel     Underground
Ore milled                          - t'000       Mar-22              1 167             701              615            139              315            657            345            458           365         -           4 762
                                                  Mar-21              1 123             656              442            167              257            624            371            538           383        57           4 618
Yield                               - g/tonne     Mar-22               4.48            6.94             7.32           8.03             3.36           4.06           4.13           7.46          3.85         -            5.39
                                                  Mar-21               4.77            8.36             7.83           8.84             3.98           4.27           3.38           5.75          3.97      4.33            5.54
Gold produced                       - kg          Mar-22              5 226           4 868            4 502          1 116            1 057          2 668          1 424          3 415         1 407         -          25 683
                                                  Mar-21              5 358           5 486            3 459          1 477            1 022          2 663          1 255          3 095         1 520       247          25 582
Gold sold                           - kg          Mar-22              5 263           4 866            4 515          1 125            1 064          2 730          1 421          3 476         1 416         -          25 876
                                                  Mar-21              5 262           5 461            3 250          1 453            1 005          2 630          1 274          3 069         1 494       242          25 140
Gold price received                 - R/kg        Mar-22            885 165         885 941          917 957        877 664          884 992        879 473        890 521        885 622       889 311         -         890 681
                                                  Mar-21            862 411         868 317          920 517        873 290          867 458        874 219        890 027        870 183       826 924   925 979         874 123
Gold revenue(1)                     (R'000)       Mar-22          4 658 626       4 310 989        4 144 574        987 372          941 631      2 400 962      1 265 431      3 078 421     1 259 265         -      23 047 271
                                                  Mar-21          4 538 005       4 741 880        2 991 680      1 268 890          871 795      2 299 195      1 133 894      2 670 593     1 235 425   224 087      21 975 444
Cash operating cost                 (R'000)       Mar-22          3 771 500       3 098 908        3 279 364        891 578          957 203      1 829 006      1 336 876      2 300 049     1 119 348         -      18 583 832
(net of by-product credits)                       Mar-21          3 646 124       2 864 447        1 891 369        866 356          838 601      1 601 328      1 234 973      2 232 842     1 074 876   178 154      16 429 070
Inventory movement                  (R'000)       Mar-22             22 581         (68 962)          37 140          9 918            3 221         29 239         (5 821)        14 389           715         -          42 420
                                                  Mar-21            (74 187)          8 075            3 675        (15 032)         (12 864)       (20 782)         6 782        (15 366)      (22 126)    3 679        (138 146)
Operating costs                     (R'000)       Mar-22          3 794 081       3 029 946        3 316 504        901 496          960 424      1 858 245      1 331 055      2 314 438     1 120 063         -      18 626 252
                                                  Mar-21          3 571 937       2 872 522        1 895 044        851 324          825 737      1 580 546      1 241 755      2 217 476     1 052 750   181 833      16 290 924
Production profit                   (R'000)       Mar-22            864 545       1 281 043          828 070         85 876          (18 793)       542 717        (65 624)       763 983       139 202         -       4 421 019
                                                  Mar-21            966 068       1 869 358        1 096 636        417 566           46 058        718 649       (107 861)       453 117       182 675    42 254       5 684 520
Capital expenditure                 (R'000)       Mar-22          1 090 513         592 872          428 026         25 444          145 839        328 257        275 462        148 239        36 609         -       3 071 261
                                                  Mar-21            769 822         457 707          343 844         48 812          128 354        316 598        274 479        147 212        17 005         -       2 503 833
Cash operating costs                - R/kg        Mar-22            721 680         636 588          728 424        798 905          905 585        685 534        938 817        673 514       795 557         -         723 585
                                                  Mar-21            680 501         522 138          546 796        586 565          820 549        601 325        984 042        721 435       707 155   721 271         642 212
Cash operating costs                - R/tonne     Mar-22              3 232           4 421            5 332          6 414            3 039          2 784          3 875          5 022         3 067         -           3 903
                                                  Mar-21              3 247           4 367            4 279          5 188            3 263          2 566          3 329          4 150         2 806     3 126           3 558
Cash operating cost                 - R/kg        Mar-22            930 351         758 377          823 498        821 704        1 043 559        808 569      1 132 260        716 922       821 576         -         843 168
and capital                                       Mar-21            824 178         605 569          646 202        619 613          946 140        720 213      1 202 751        769 000       718 343   721 271         740 087
All-in sustaining cost              - R/kg        Mar-22            906 720         718 295          847 203        842 684        1 048 263        777 090      1 124 321        726 124       850 225         -         834 860
                                                  Mar-21            828 079         604 840          701 250        638 621          966 315        682 872      1 164 805        788 756       745 626   782 126         749 497
Operating free cash flow            %             Mar-22               (4)%             14%              11%             7%            (17)%            10%          (27)%            20%            8%        -%              6%
margin(2)                                         Mar-21                 3%             30%              25%            28%            (11)%            17%          (33)%            11%           12%       20%             14%

(1) Includes a non-cash consideration to Franco-Nevada (Mar-22: R370.984m, Mar-21: R231.013m), excluded from the gold price calculation
(2) Excludes run-of-mine costs for Kalgold (Mar-22: R1.224m, Mar-21:- R2.703m) and Hidden Valley (Mar-22: R293.954m, Mar-21: -R16.974m)


OPERATING RESULTS - NINE MONTHS ON NINE MONTHS (RAND/METRIC) continued

                                                                                                                  SOUTH AFRICA
                                                   Nine                                              SURFACE PRODUCTION                                                  TOTAL
                                                   months         Mine Waste                      Central plant                                                          SOUTH        Hidden          TOTAL
                                                   ended           Solutions          Phoenix      reclamation           Dumps          Kalgold  Total Surface          AFRICA        Valley        HARMONY
Ore milled                          - t'000        Mar-22             17 924            4 662           3 020            6 776            1 084         33 466          38 228         2 285         40 513
                                                   Mar-21             11 211            4 646           3 012            7 193            1 121         27 183          31 801         2 750         34 551
Yield                               - g/tonne      Mar-22              0.128            0.122           0.141            0.326             0.80           0.19            0.84          1.01           0.85
                                                   Mar-21              0.122            0.126           0.141            0.373             0.74           0.22            0.99          1.27           1.01
Gold produced                       - kg           Mar-22              2 299              567             427            2 209              866          6 368          32 051         2 306         34 357
                                                   Mar-21              1 372              587             424            2 681              824          5 888          31 470         3 499         34 969
Gold sold                           - kg           Mar-22              2 277              561             418            2 274              873          6 403          32 279         2 258         34 537
                                                   Mar-21              1 340              580             426            2 623              827          5 796          30 936         3 513         34 449
Gold price received                  - R/kg        Mar-22            748 486          883 768         890 847          895 073          882 457        839 958         880 620       829 066        877 249
                                                   Mar-21            747 663          806 409         869 277          887 894          878 695        844 639         868 599       872 186        868 964
Gold revenue(1)                     (R'000)        Mar-22          2 075 286          495 794         372 374        2 035 397          770 385      5 749 236      28 796 507     1 872 031     30 668 538
                                                   Mar-21          1 232 882          467 717         370 312        2 328 947          726 681      5 126 539      27 101 983     3 063 988     30 165 971
Cash operating cost                 (R'000)        Mar-22          1 193 631          328 102         215 004        1 452 705          659 550      3 848 992      22 432 824     1 519 021     23 951 845
(net of by-product credits)                        Mar-21            679 806          294 182         205 096        1 501 537          577 660      3 258 281      19 687 351     1 290 907     20 978 258
Inventory movement                  (R'000)        Mar-22            (18 057)          (4 834)         (3 510)          29 796              265          3 660          46 080       (47 997)        (1 917)
                                                   Mar-21             90 468           (5 413)            415           15 342              865        101 677         (36 469)      (10 398)       (46 867)
Operating costs                     (R'000)        Mar-22          1 175 574          323 268         211 494        1 482 501          659 815      3 852 652      22 478 904     1 471 024     23 949 928
                                                   Mar-21            770 274          288 769         205 511        1 516 879          578 525      3 359 958      19 650 882     1 280 509     20 931 391
Production profit                    (R'000)       Mar-22            899 712          172 526         160 880          552 896          110 570      1 896 584       6 317 603       401 007      6 718 610
                                                   Mar-21            462 608          178 948         164 801          812 068          148 156      1 766 581       7 451 101     1 783 479      9 234 580
Capital expenditure                  (R'000)       Mar-22            124 165           13 140          12 519           22 872          118 960        291 656       3 362 917     1 103 885      4 466 802
                                                   Mar-21             49 580            1 163          10 591           30 463          144 501        236 298       2 740 131       899 463      3 639 594
Cash operating costs                 - R/kg        Mar-22            519 196          578 663         503 522          657 630          761 605        604 427         699 910       658 725        697 146
                                                   Mar-21            495 485          501 162         483 717          560 066          701 044        553 377         625 591       368 936        599 910
Cash operating costs                 - R/tonne     Mar-22                 67               70              71              214              608            115             587           665            591
                                                   Mar-21                 61               63              68              209              515            120             619           469            607
Cash operating cost                  - R/kg        Mar-22            573 204          601 838         532 841          667 984          898 972        650 227         804 834     1 137 427        827 157
and capital                                        Mar-21            531 622          503 143         508 696          571 429          876 409        593 509         712 662       625 999        703 991
All-in sustaining cost               - R/kg        Mar-22            557 865          600 758         540 332          661 570          910 825        645 432         797 014     1 239 065        825 925
                                                   Mar-21            622 149          500 945         507 282          589 913          894 631        625 868         726 100       671 901        720 572
Operating free cash flow             %             Mar-22                19%              31%             39%              28%              (1%)           22%              9%          (24%)            7%
margin(2)                                          Mar-21                22%              37%             42%              34%               0%            27%             16%           28%            18%

(1) Includes a non-cash consideration to Franco-Nevada (Mar-22: R370.984m, Mar-21: R231.013m), excluded from the gold price calculation
(2) Excludes run-of-mine costs for Kalgold (Mar-22: R1.224m, Mar-21:- R2.703m) and Hidden Valley (Mar-22: R293.954m, Mar-21: -R16.974m)


HARMONY'S ANNUAL REPORTS

Harmony's Integrated Annual Report, and its annual report filed on a Form 20F with the United States'
Securities and Exchange Commission for the financial year ended 30 June 2021, are available on our website
(http://www.harmony.co.za/invest).


DIRECTORATE AND ADMINISTRATION

 HARMONY GOLD MINING COMPANY LIMITED
 Harmony Gold Mining Company Limited was
 incorporated and registered as a public company
 in South Africa on 25 August 1950
 Registration number: 1950/038232/06


 CORPORATE OFFICE

 Randfontein Office Park
 PO Box 2, Randfontein, 1760, South Africa
 Corner Main Reef Road and Ward Avenue
 Randfontein, 1759, South Africa
 Telephone: +27 11 411 2000
 Website: http://www.harmony.co.za


 DIRECTORS

 Dr PT Motsepe* (chairman), JM Motloba* (deputy
 chairman), Dr M Msimang*^ (lead independent
 director), PW Steenkamp (chief executive officer),
 BP Lekubo (financial director),
 HE Mashego (executive director)
 JA Chissano*^#, KT Nondumo*^, VP Pillay*^,
 GR Sibiya*^, P Turner*^, JL Wetton*^, AJ Wilkens*

 * Non-executive
 ^ Independent
 # Mozambican


 INVESTOR RELATIONS

 E-mail: HarmonyIR@harmony.co.za
 Telephone: +27 11 411 6073 or +27 82 746 4120


 COMPANY SECRETARIAT

 E-mail: companysecretariat@harmony.co.za
 Telephone: +27 11 411 2359


TRANSFER SECRETARIES

JSE Investor Services (Proprietary) Limited
(Registration number 2000/007239/07)
19 Ameshoff Street, 13th Floor, Hollard House,
Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
E-mail: info@jseinvestorservices.co.za
Fax: +27 86 674 4381


ADR* DEPOSITARY

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust
Company
Operations Centre, 6201 15th Avenue, Brooklyn,
NY 11219, United States
E-mail queries: db@astfinancial.com
Toll free (within the US): +1 886 249 2593
Int: +1 718 921 8137
Fax: +1 718 921 8334
*ADR: American Depositary Receipts


SPONSOR

JP Morgan Equities South Africa
(Proprietary) Limited
1 Fricker Road, corner Hurlingham Road, Illovo,
Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503


TRADING SYMBOLS

ISIN: ZAE 000015228


FORWARD-LOOKING STATEMENTS

This booklet contains forward-looking statements within the meaning of the safe harbour provided by
Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the "Securities
Act"), with respect to our financial condition, results of operations, business strategies, operating efficiencies,
competitive positions, growth opportunities for existing services, plans and objectives of management,
markets for stock and other matters. These forward-looking statements, including, among others, those
relating to our future business prospects, revenues, and the potential benefit of acquisitions (including
statements regarding growth and cost savings) wherever they may occur in this booklet, are necessarily
estimates reflecting the best judgment of our senior management and involve a number of risks and
uncertainties that could cause actual results to differ materially from those suggested by the forward-looking
statements. As a consequence, these forward-looking statements should be considered in light of various
important factors, including those set forth in our integrated annual report. Important factors that could cause
actual results to differ materially from estimates or projections contained in the forward-looking statements
include, without limitation: overall economic and business conditions in South Africa, Papua New Guinea,
Australia and elsewhere, impact of Covid-19 on our operational and financial estimates and results estimates
of future earnings, and the sensitivity of earnings to the prices of gold and other metals prices estimates of
future production and sales for gold and other metals, estimates of future cash costs, estimates of future
cash flows, and the sensitivity of cash flows to the prices of gold and other metals, estimates of provision
for silicosis settlement; estimates of future tax liabilities under the Carbon Tax Act, statements regarding
future debt repayments, estimates of future capital expenditures, the success of our business strategy,
exploration and development activities and other initiatives; future financial position, plans, strategies,
objectives, capital expenditures, projected costs and anticipated cost savings and financing plans; estimates
of reserves statements regarding future exploration results and the replacement of reserves, the ability to
achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as
well as at existing operation, fluctuations in the market price of gold, the occurrence of hazards associated
with underground and surface gold mining, the occurrence of labour disruptions related to industrial action
or health and safety incidents, power cost increases as well as power stoppages, fluctuations and usage
constraints, supply chain shortages and increases in the prices of production imports and the availability,
terms and deployment of capital; our ability to hire and retain senior management, sufficiently technically-
skilled employees, as well as our ability to achieve sufficient representation of historically disadvantaged
persons in management positions, our ability to comply with requirements that we operate in a sustainable
manner and provide benefits to affected communities, potential liabilities related to occupational health
diseases; changes in government regulation and the political environment, particularly tax and royalties,
mining rights, health, safety, environmental regulation and business ownership including any interpretation
thereof; court decisions affecting the mining industry, including, without limitation, regarding the
interpretation of mining rights, our ability to protect our information technology and communication systems
and the personal data we retain, risks related to the failure of internal controls, the outcome of pending or
future litigation or regulatory proceedings; fluctuations in exchange rates and currency devaluations and other
macroeconomic monetary policies; the adequacy of the Group's insurance coverage; any further downgrade of
South Africa's credit rating and socio-economic or political instability in South Africa, Papua New Guinea and
other countries in which we operate.

The foregoing factors and others described under "Risk Factors" in our Integrated Annual Report
(http://www.har.co.za) and our Form 20F should not be construed as exhaustive. We undertake no obligation to
update publicly or release any revisions to these forward-looking statements to reflect events or circumstances
after the date of this annual report or to reflect the occurrence of unanticipated events, except as required by
law. All subsequent written or oral forward-looking statements attributable to Harmony or any person acting
on its behalf are qualified by the cautionary statements herein.

Johannesburg
12 May 2022

Date: 12-05-2022 03:15:00
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