Try our mobile app
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: 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 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
(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: 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
(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
