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Harmony Gold Mining Company (JSE:HAR) News - Operational update for the three months ended 30 September 2021
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 three months ended 30 September 2021 ("Q1FY22")
DE-RISKED PORTFOLIO DRIVES QUARTER-ON-
QUARTER PRODUCTION GROWTH
Johannesburg, South Africa. Thursday, 11 November 2021.
Harmony Gold Mining Company Limited ("Harmony" or "the Company")
is pleased to report our operational performance for the three months
ended 30 September 2021 ("Q1FY22").
OVERVIEW
The operational results for the first quarter of the financial year 2022
were underpinned by a diversified and de-risked portfolio. Newly
acquired assets and assets that we have reinvested in, now represent
62% of operating free cash flow, while our surface source operations
accounted for 34% of operating free cash flow this quarter. Assets which
have been in Harmony's portfolio for many years accounted for only
4% of the operating free cash flow this quarter, which illustrates how
we have transformed our portfolio through the acquisition of quality
ounces. Harmony's re-engineered portfolio has shown a 27% increase
in underground tonnes milled for the September 2021 quarter when
compared to the September 2020 quarter and a 26% increase in gold
production from our underground mines. Total gold production was 32%
higher this quarter when compared to Q1FY21.
Some of the key highlights in Q1FY22 include a 3% increase in
production by the surface source operations and a 4% increase in tonnes
milled by the underground operations. The quarter-on-quarter increase in
underground production was on the back of improved grades and tonnes
milled at our Moab Khotsong, Kusasalethu, Target 1 and Doornkop
operations. Overall production was more or less steady quarter-on-
quarter with 12 868kg (413 714oz) of gold produced in Q1FY22
compared to 12 786kg (411 078oz) produced in Q4FY21. Encouragingly,
total production excluding Mponeng and related assets and Unisel mine
(which was closed in October 2020) - delivered an additional 6% of
gold production compared with the September 2020 quarter as a result
of higher tonnes milled as production normalised post the Covid-19
disruptions and improved efficiencies on the back of various optimisation
projects.
Harmony's balance sheet remains strong, with net debt to EBITDA now at 0.05 times at the end of the quarter (0.1 times in the previous quarter) as we
further reduced our net debt by R139 million (US$9 million) to R454 million (US$30 million).
The Company's strategy remains unchanged - delivering on safe profitable ounces and increasing margins, while focusing on our four strategic pillars
namely: responsible stewardship, operational excellence, cash certainty and effective capital allocation. A quality portfolio, deleveraged balance sheet,
commitment to best environment, social and governance (ESG) practices and an exciting pipeline of projects will ensure Harmony continues to create value
for all shareholders and stakeholders.
THREE MONTHS OF THE FINANCIAL YEAR 2022 ("Q1FY22") - KEY OPERATIONAL METRICS*
Q-on-Q Y-on-Y
Unit Q1FY22 Q4FY21 (%) Q1FY21 (%) Comments (Q-on-Q)
Gold price R/kg 832 756 803 207 4 922 398 (10) Higher gold price received was mainly due to a
weaker rand
Underground yield g/t 5.27 5.44 (3) 5.31 (1) Lower grade as a result of safety-related stoppages at
high-grade panels at Mponeng, Moab Khotsong and
Tshepong South and reduced recoveries at Harmony
One plant
Adjusted EBITDA# Rm 1 786 1 544 16 2 457 (27) Driven predominantly by a higher gold price received
Adjusted EBITDA margin % 16 14 14 27 (41)
Gold produced total kg 12 868 12 786 1 9 758 32 Stable gold production as a result of improved
oz 413 714 411 078 1 313 725 32 production at Moab Khotsong, Kusasalethu,
Doornkop and surface source business
Production - South Africa kg 11 730 11 596 1 8 775 34 Stable gold production as a result of improved
production at Moab Khotsong, Kusasalethu, Target 1,
Doornkop and surface source operations
Production - Hidden Valley kg 1 138 1 190 (4) 983 16 Lower production due to reduction in grade as a
result of predominantly stockpile material being fed to
the mill, with ore delivery from Stage 6 impacted by
geotechnical and dewatering constraints
All-in sustaining cost R/kg 795 086 729 680 (9) 728 465 (9) Higher winter electricity tariffs and decrease in
("AISC") US$/oz 1 691 1 607 (5) 1 341 (26) grade as a result of safety incidents and lower plant
recoveries
* The financial information has not been reviewed by the Company's 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
RESPONSIBLE STEWARDSHIP
The Company continues to place a strong focus on our ESG initiatives as
a good corporate citizen. We believe in full transparency and adherence to
global best practice. As part of our commitment to open and transparent
disclosure, the ESG report and Taskforce for Climate-related Financial
Disclosure (TCFD) report are now available as part of the suite of reports
for FY21 which were published on 28 October 2021. These reports can be
accessed at http://www.harmony.co.za.
Every effort is made to ensure the safety of the close to 60% (almost
30 000 people) of our workforce actively involved in mining operations
every day. We believe that zero loss of life is possible. Our Humanistic
Transformation Programme, or Thibakotsi journey, is aimed at all
employees and contractors and will create a pro-active safety culture and
an environment where employees at all levels live the company values and
experience high levels of engagement, mutual trust, respect, and hope.
Through continual reinforcement, we believe we can embed a changed
behaviour with a positive attitude towards safe living and working.
Through this change in behaviour we will see a significant reduction in
accidents and ultimate elimination of loss of life.
Although we are making progress in creating safer working areas,
loss-of-life incidents still do occur for numerous reasons. Each incident
is meticulously investigated, scrutinised and learnt from to ensure we
eliminate and reduce the chance of re-occurrence. Tragically, three
employees lost their lives during the quarter:
1. On 15 July 2021 at Tshepong Operations, Mr Thembile Simon Mabala
was caught by a scraper winch rope during sweeping operations.
2. On 6 August 2021 at Moab Khotsong, Mr Pule Jan Mokhatsi was busy
with cleaning operations in a stope panel when a gravity-related fall of
ground occurred.
3. On 1 September 2021 at Mponeng, Mr Richard Mohapi was busy
with drilling operations in a stope panel when a seismic-related fall of
ground occurred.
The management of Harmony sends their heartfelt condolences to families,
friends and colleagues of those who lost their lives with assurances to all
our stakeholders that we are doing all we can to eliminate these tragedies.
It takes time to carefully assess and plan which underground areas are in
fact safe enough to mine and change embedded behaviour. We exclude
unsafe areas from our operational plans - even if it means that we sacrifice
production ounces. All our employees are encouraged to notify their line
managers of areas they deem unsafe and every person has the right to
not enter an area if they do not feel completely safe to do so. Harmony
distributes digital reports on a daily basis to all of our mining staff
highlighting any potential risks which helps awareness whilst encouraging
a mindset prioritising safety above all else.
During the past quarter, our lost time injury frequency rate (LTIFR) improved
from 6.10 to 6.04 per million hours worked compared to the last quarter.
The fall of ground injury frequency rate (FOGIFR) improved from 1.53 to
1.48 per million hours worked. Seismicity, fatigue and poor discipline
were among the reasons for a regression in the reportable injury frequency
rate (RIFR) from 3.49 to 4.24 and the fatal injury frequency rate (FIFR)
regressing from 0.00 to 0.12 per million hours worked.
We had some notable achievements during the quarter and it is important
to give credit to all Harmony employees who helped achieve these
important milestones as we strive for a safe working environment:
- At the end of Q4FY21, Harmony's South African operations recorded
107 fatal-free days - which represents 3 259 048 fatal-free shifts.
Furthermore, on 14 July 2021, we recorded 121 fatal-free days and
3 682 069 fatal-free shifts. This is the highest number of fatal-free shifts
achieved in Harmony's history
- Our South African underground operations achieved 3 million fatal-free
shifts, of which Tshepong and Doornkop achieved 1 million fatal-free
shifts each
- Mponeng and Saaiplaas Plants achieved 39 000 and 22 000 fatal-free
production shifts respectively
Please see the Company's FY21 integrated annual report and website for
more information on our safety initiatives and the incidents reported during
the quarter: http://www.harmony.co.za.
HEALTH
Harmony's vaccination drive - in collaboration with the South African
Government and the Minerals Council of South Africa - aimed at
vaccinating at least 80% of our employees before the end of November
2021, has progressed exceptionally well. Following various education and
engagement initiatives, close to 80% of our employees have received their
first vaccination while close to 61% of our workforce is fully vaccinated.
Throughout the Company, we continue with our initiatives to reduce the
spread of Covid-19 infections through the implementation of precautionary
measures, education, awareness and improved hygiene and infection
control practices. Strict adherence to our existing Covid-19 protocols
remain in place at all our operations.
OUR PEOPLE
At Harmony, we understand that our people are central to our success.
Testimony to this, was the conclusion of a historic three-year wage
agreement which saw all five unions signing the wage deal on the
same day. As South Africa's largest gold miner by volume, Harmony
has an on-going and important role to play in creating value for all our
stakeholders. Effective capital allocation extends not only to projects
and operations, but also to the people who work at Harmony. This
in turn creates infinite opportunities through the mining of a finite
resource, thereby ensuring the lives of the people and the many host
communities who benefit from the Harmony operations are improved
each and every day. Also refer to our ESG report for more information:
http://www.harmony.co.za.
ENVIRONMENT
Looking to the future, Harmony's strategy includes a decarbonisation plan
aimed at a greener and more equitable future for all. We are in the process
of finalising our short-term emissions targets and our net-zero strategy.
We are rolling out the first phase of our renewable energy programme, by
erecting a 30MW solar energy plant in the Free State province. The Tier 1
Wafi-Golpu project remains a key deliverable as Harmony entrenches itself
as an emerging market copper-gold mining specialist with exposure to
green metals. More information can be found in our TCFD and ESG reports:
http://www.harmony.co.za.
PRODUCTION
A 4% higher gold price received of R832 756/kg (US$1 771/oz)in Q1FY22
compared to R803 207/kg (US$1 769/oz) in Q4FY21 and a 1% increase in gold
production of 12 868kg (413 714oz) for Q1FY22 compared to 12 786kg
(411 078oz), resulted in a 3% growth in gold revenue to R10 959 million
(US$749 million) from R10 531 million (US$746 million) in the previous
quarter.
Despite the increase in tonnes milled, underground grade declined by 3%
to 5.27g/t from the 5.44g/t achieved in the previous quarter. This was
primarily a result of the safety incidents which occurred and impacted
particularly the high grade panels at Mponeng, as the affected area was
temporarily closed for further investigation. Moab Khotsong and the
Tshepong Operations were also impacted following the safety incidents
at each of the mines during the reporting period. Underground yield was
further impacted by a reduction in the gold recovered at the Harmony One
and Target plants as a result of inconsistent flow through from the belt to
the treatment section. Towards the end of the quarter this was resolved
and the average recovered grade of 5.40g/t and 5.57g/t guided for the
financial year 2022 will be achieved.
The sequential increase quarter-on-quarter in gold production was largely
due to:
- a 4% increase in underground tonnes milled to 1.794 million tonnes
from 1.726 million tonnes
- Moab Khotsong saw a 1% increase in grade to 6.88g/t from 6.8g/t but
achieved a 10% increase in production on the back of higher tonnes
milled
- a significantly higher contribution from Kusasalethu which saw a 39%
improvement in grade to 7.39g/t and a 41% improvement in production
to 1 271kg (40 864oz) from 904kg (29 064oz)
- a 15% increase in production from Target 1 as grades improved by 13%
from 2.97g/t to 3.35g/t
- Doornkop delivered a 9% increase in gold produced at 1 097kg
(35 269oz) from 1 007kg (32 376oz) in the previous quarter
- a 21% increase in production from Mine Waste Solutions to 830kg
(26 685oz) from 685kg (22 023oz) as well as a 22% increase in grade
to 0.13g/t from 0.11g/t
Operating free cash flow for Q1FY22 was down 33% to R921 million
(US$63 million) compared to R1 230 million (US$87 million) for the
previous three-month period ended 30 June 2021 ("the comparable period").
Operating free cash flow margin decreased from 12% in the previous
comparable period to 9% for the reporting period on the back of:
- a 3% decrease in average underground grade to 5.27g/t (5.44g/t at the
end of June 2021)
- a 15% decrease in grade at Mponeng on the back of lower volumes
blasted post the safety incident and associated stoppages and an 11%
decrease in recovered grade at Tshepong
- incentive bonuses which were paid in this reporting period as well as the
incremental wage increase on the back of the three-year wage deal
- R442 million increase in services as a result of higher winter tariffs on
electricity
At our Papua New Guinea operations ("PNG"), Hidden Valley continues
to be impacted by Covid-19 related staffing issues as vaccine hesitancy
remains a large problem across PNG. While international travel isolation
requirements into PNG for fully vaccinated employees is now no longer
required, return travel into Queensland, Australia, now requires an
additional three days' self-isolation with a third polymerase chain reaction
(PCR) screen test post the two weeks' hotel quarantine which all have an
impact on work rosters and production at the mine.
Total tonnes mined was up by 57% compared to the previous quarter.
The Hidden Valley crushing and overland conveyor circuit throughput
of 1 104 556 tonnes was higher by 76% quarter-on-quarter. This is the
highest since Q2FY20 and the first time since then that the total tonnes
transported via the overland conveyor circuit exceeded 1 000 000 tonnes
for the quarter.
However, geotechnical stability of the eastern wall of the stage 6 pit
and lower than planned productivity in the south end of the stage 7 cut
back due to soft ground and re-cutting of walls for geotechnical stability
did impact the ability to further increase production. Furthermore, the
dewatering of the pit during the September 2021 quarter also adversely
impacted mining volumes. Lower grade stockpiles were thus processed
to supplement the ore feed and this resulted in a 39% decrease in grade
from 1.78g/t to 1.08g/t and a 43% reduction in operating free cash
to R149 million (US$10 million) from the R260 million (US$18 million)
reported in the previous quarter. Silver production for the quarter increased
by 41% to 17 358kg (558 077oz) from 12 313kg (395 882oz) on the back
of the increase in tonnes milled.
Harmony's AISC for the reporting period increased by 9%
to R795 086/kg from R729 680/kg (an increase of 5% to US$1 691/oz
from US$1 607/oz in Q4FY21). The primary driver being the reduction in
underground recovered grade, specifically impacted by the safety incidents
at Mponeng and Tshepong, the lower plant recoveries in the Free State
province which have now been resolved and the lower grade at Hidden
Valley (as we continue with stage 6 and 7 cut backs). There are however,
improvements in grade at Target 1 and Kalgold, while Joel is seeing a
significant improvement in volumes post the completion of the decline
project, which will ensure that we meet our annual cost guidance for FY22
of R765 000/kg to R800 000/kg. The Target 1 project is anticipated to be
complete in 2022 and Kalgold is also starting to see improved grades and
production on the back of an increase in feed grades and milling tonnes.
EXECUTIVE MANAGEMENT
Phillip Tobias, Chief Operating Officer for New Business Development,
Corporate Strategy and Projects will be leaving Harmony in November
2021. Beyers Nel, Chief Operating Officer for the South African operations
will take over Projects and Johannes van Heerden, Chief Executive Officer
for South East Asia will take over New Business Development. We would
like to thank Phillip for his valuable contribution to Harmony over the past
seven years and wish him well with his future endeavours.
Shela Mohatla, Group Company Secretary, has joined the Group Executive
Committee and is now part of the group executive management team. We
would like to congratulate Shela on her appointment.
WAFI-GOLPU PROJECT
Harmony and our joint venture partner Newcrest Mining Limited,
continue to work with the PNG Government to progress permitting of
the Wafi-Golpu Project and obtain a Special Mining Lease. This included
engagement with the PNG Government during the quarter regarding
potential terms of a Mining Development Contract, which is required for a
Special Mining Lease.
As previously advised, the Governor of Morobe Province and the Morobe
Provincial Government commenced legal proceedings in the National
Court in Port Moresby seeking judicial review of the decision to issue
the Environment Permit which was granted in December 2020. On
10 September 2021, the National Court made an interim order staying
the Environment Permit pending the determination of the judicial review.
However, on 15 September 2021 the State obtained leave from the
Supreme Court to appeal that National Court stay order. The judicial review
proceeding is now on hold until the State's appeal against the stay order is
decided by the Supreme Court. These events have not impacted project and
permitting activities, which continue.
ANNUAL PRODUCTION, COST AND GRADE
GUIDANCE
Production guidance for FY22 remains unchanged and is estimated to be
between 1.540Moz and 1.630Moz at an all-in sustaining cost of between
R765 000/kg to R800 000/kg. Underground recovered grade is planned to
be between 5.40g/t and 5.57g/t.
HEDGING
The Company's hedging strategy is proving to be successful as our
approach to hedge more selectively supports stronger margins and cash
flows. Realised overall derivative gains for the quarter amounted to R86
million (US$6 million). The average forward Rand gold price on the hedge
book has now increased to R1 016 000/kg as at 30 September 2021 from
R976 000kg as at 30 June 2021.
CONCLUSION
As a 1.6 million ounce gold producer with an exciting pipeline of projects,
we will continue on our growth trajectory to benefit our stakeholders
for many years to come. With a re-engineered portfolio, we are a new
Harmony - committed to doing what we have always done - mining
sustainably and putting our people first.
HEDGE POSITION AS AT 30 SEPTEMBER 2021
FY2022 FY2023 FY2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total
Rand gold
Forward contracts koz 72 63 52 38 5 — — — 230
R'000/kg 933 1 022 1 070 1 084 1 025 — — — 1 016
Dollar gold
Forward contracts koz 12 11 11 9 9 9 5 1 67
$/oz 1 606 1 723 1 799 1 911 1 867 1 826 1 842 1 828 1 783
Total gold koz 84 74 63 47 14 9 5 1 297
Currency hedges
Rand dollar
Zero cost collars $m 42 27 — — — — — — 69
Floor R/$ 16.93 17.99 — — — — — — 17.34
Cap R/$ 18.54 19.65 — — — — — — 18.98
Forward contracts $m 9 8 — — — — — — 17
R/$ 18.41 18.71 — — — — — — 18.55
Total dollar $m 51 35 — — — — — — 86
Dollar silver
Zero cost collars koz 335 315 285 285 270 155 45 — 1 690
Floor $/oz 19.52 20.05 20.43 24.39 25.97 25.98 26.30 — 22.40
Cap $/oz 21.35 22.05 22.49 27.02 29.00 29.24 29.52 — 24.79
OPERATING RESULTS - QUARTER ON QUARTER (RAND/METRIC)
SOUTH AFRICA
UNDERGROUND PRODUCTION
TOTAL
Year Tshepong Moab UNDER-
ended Operations Khotsong Mponeng Bambanani Joel Doornkop Target 1 Kusasalethu Masimong GROUND
Ore milled - t'000 Sep-21 445 268 237 57 119 248 119 172 129 1 794
Jun-21 435 247 241 60 102 227 117 170 127 1 726
Yield - g/tonne Sep-21 4.20 6.88 7.01 8.47 3.14 4.42 3.35 7.39 3.56 5.27
Jun-21 4.74 6.80 8.24 8.58 3.94 4.44 2.97 5.32 3.87 5.44
Gold produced - kg Sep-21 1 870 1 843 1 661 483 374 1 097 399 1 271 459 9 457
Jun-21 2 061 1 680 1 987 515 402 1 007 348 904 492 9 396
Gold sold - kg Sep-21 1 890 1 879 1 659 489 378 1 142 358 1 331 464 9 590
Jun-21 2 091 1 634 2 049 522 409 973 345 911 499 9 433
Gold price received - R/kg Sep-21 836 664 836 334 878 547 836 084 836 550 832 151 840 053 834 670 837 194 843 149
Jun-21 801 295 799 168 858 339 801 791 800 641 799 190 799 049 800 357 802 385 812 984
Gold revenue(1) (R'000) Sep-21 1 581 295 1 571 472 1 457 510 408 845 316 216 950 317 300 739 1 110 946 388 458 8 085 798
Jun-21 1 675 507 1 305 841 1 758 736 418 535 327 462 777 612 275 672 729 125 400 390 7 668 880
Cash operating cost (R'000) Sep-21 1 354 042 1 085 430 1 194 459 324 413 337 663 642 117 459 911 830 797 396 622 6 625 454
(net of by-product credits) Jun-21 1 272 899 981 616 1 010 327 302 128 296 301 584 342 427 523 736 223 365 385 5 976 744
Inventory movement (R'000) Sep-21 17 179 (15 605) (15 283) 3 683 3 032 28 342 (36 089) 50 749 3 639 39 647
Jun-21 19 871 (11 684) 32 623 2 243 1 953 (25 351) (2 080) 1 715 8 661 27 951
Operating costs (R'000) Sep-21 1 371 221 1 069 825 1 179 176 328 096 340 695 670 459 423 822 881 546 400 261 6 665 101
Jun-21 1 292 770 969 932 1 042 950 304 371 298 254 558 991 425 443 737 938 374 046 6 004 695
Production profit (R'000) Sep-21 210 074 501 647 278 334 80 749 (24 479) 279 858 (123 083) 229 400 (11 803) 1 420 697
Jun-21 382 737 335 909 715 786 114 164 29 208 218 621 (149 771) (8 813) 26 344 1 664 185
Capital expenditure (R'000) Sep-21 363 961 182 886 142 951 19 567 43 675 100 369 89 146 49 786 10 687 1 003 028
Jun-21 342 085 174 871 148 677 22 383 43 766 108 714 93 935 57 760 12 326 1 004 517
Cash operating costs - R/kg Sep-21 724 087 588 947 719 120 671 663 902 842 585 339 1 152 659 653 656 864 100 700 587
Jun-21 617 612 584 295 508 469 586 656 737 067 580 280 1 228 514 814 406 742 652 636 095
Cash operating costs - R/tonne Sep-21 3 043 4 050 5 040 5 691 2 838 2 589 3 865 4 830 3 075 3 693
Jun-21 2 926 3 974 4 192 5 035 2 905 2 574 3 654 4 331 2 877 3 463
Cash operating cost - R/kg Sep-21 918 718 688 180 805 184 712 174 1 019 620 676 833 1 376 083 692 827 887 383 806 649
and Capital Jun-21 783 592 688 385 583 293 630 118 845 938 688 238 1 498 443 878 300 767 705 743 004
All-in sustaining cost - R/kg Sep-21 909 677 658 468 823 328 732 778 1 031 601 666 156 1 425 105 722 006 931 186 806 541
Jun-21 783 256 700 169 593 951 649 235 862 532 674 178 1 480 596 899 251 821 314 751 233
Operating free cash flow margin(2) % Sep-21 (9)% 19% 8% 16% (21)% 22% (83)% 21% (5)% 6%
Jun-21 4% 11% 34% 22% (4)% 11% (89)% (9)% 6% 9%
OPERATING RESULTS - QUARTER ON QUARTER (RAND/METRIC) continued
SOUTH AFRICA
SURFACE PRODUCTION
Central TOTAL
Year Mine waste plant TOTAL SOUTH Hidden TOTAL
ended solutions Phoenix reclamation Dumps Kalgold SURFACE AFRICA Valley HARMONY
Ore milled - t'000 Sep-21 6 416 1 609 1 011 2 316 388 11 740 13 534 1 051 14 585
Jun-21 6 454 1 544 1 008 2 914 386 12 306 14 032 670 14 702
Yield - g/tonne Sep-21 0.129 0.120 0.132 0.345 0.82 0.19 0.87 1.08 0.88
Jun-21 0.106 0.124 0.138 0.309 0.74 0.18 0.83 1.78 0.87
Gold produced - kg Sep-21 830 193 133 798 319 2 273 11 730 1 138 12 868
Jun-21 685 192 139 899 285 2 200 11 596 1 190 12 786
Gold sold - kg Sep-21 808 195 131 835 309 2 278 11 868 1 127 12 995
Jun-21 703 197 140 904 285 2 229 11 662 1 242 12 904
Gold price received - R/kg Sep-21 721 550 839 169 836 023 849 905 834 634 800 589 834 980 809 337 832 756
Jun-21 695 987 774 467 797 429 829 626 802 123 777 064 806 119 775 867 803 207
Gold revenue(1) (R'000) Sep-21 720 152 163 638 109 519 709 671 257 902 1 960 882 10 046 680 912 123 10 958 803
Jun-21 655 646 152 570 111 640 749 982 228 605 1 898 443 9 567 323 963 627 10 530 950
Cash operating cost (R'000) Sep-21 443 064 112 631 76 409 562 677 243 928 1 438 709 8 064 163 473 213 8 537 376
(net of by-product credits) Jun-21 356 171 101 676 65 693 625 102 198 137 1 346 779 7 323 523 379 469 7 702 992
Inventory movement (R'000) Sep-21 (16 999) (95) (6 086) 23 457 (13 399) (13 122) 26 525 21 999 48 524
Jun-21 10 769 2 812 147 4 410 (719) 17 419 45 370 58 818 104 188
Operating costs (R'000) Sep-21 426 065 112 536 70 323 586 134 230 529 1 425 587 8 090 688 495 212 8 585 900
Jun-21 366 940 104 488 65 840 629 512 197 418 1 364 198 7 368 893 438 287 7 807 180
Production profit (R'000) Sep-21 294 087 51 102 39 196 123 537 27 373 535 295 1 955 992 416 911 2 372 903
Jun-21 288 706 48 082 45 800 120 470 31 187 534 245 2 198 430 525 340 2 723 770
Capital expenditure (R'000) Sep-21 21 382 — 1 642 3 951 39 143 66 118 1 069 146 521 489 1 590 635
Jun-21 20 378 2 746 2 160 8 801 63 764 97 849 1 102 366 360 835 1 463 201
Cash operating costs - R/kg Sep-21 533 812 583 580 574 504 705 109 764 665 632 956 687 482 415 829 663 458
Jun-21 519 958 529 563 472 612 695 330 695 218 612 172 631 556 318 882 602 455
Cash operating costs - R/tonne Sep-21 69 70 76 243 629 123 596 450 585
Jun-21 55 66 65 215 513 109 522 566 524
Cash operating cost - R/kg Sep-21 559 573 583 580 586 850 710 060 887 370 662 044 778 628 874 079 787 070
and Capital Jun-21 549 707 543 865 488 151 705 120 918 951 656 649 726 620 622 104 716 893
All-in sustaining cost - R/kg Sep-21 577 537 578 163 549 351 705 537 897 829 666 334 779 110 963 256 795 086
Jun-21 563 530 544 335 485 714 706 098 936 077 662 400 733 484 693 951 729 680
Operating free cash flow margin(2) % Sep-21 20% 31% 29% 20% (11)% 17% 8% 16% 9%
Jun-21 23% 32% 39% 15% (17)% 16% 10% 27% 12%
(1) Includes a non-cash consideration to Franco-Nevada (Sep-21:R137.140m, Jun-21:R166.367m), excluded from the gold price calculation.
(2) Excludes run of mine costs for Kalgold (Sep-21:-R4.365m, Jun-21:-R4.736m) and Hidden Valley (Sep-21:R231.430m, Jun-21:R36.535m).
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*^#, FFT De Buck*^,
Dr DSS Lushaba*^, KT Nondumo*^, VP Pillay*^,
GR Sibiya*^, JL Wetton*^, AJ Wilkens*,
P Turner*^
* 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
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).
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.harmony.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
11 November 2021
Date: 11-11-2021 08:00:00
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