Wrap Text
Operational update for the nine months ended 31 March 2023
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 2023 (9M FY23)
SALIENT FEATURES
(9M FY23 vs 9M FY22*)
- South Africa total LTIFR# at 5.55, trending below 6.00 for
six consecutive quarters
- Phase 1 of 30MW renewable solar power to be commissioned
before the end of FY23
- 11% increase in gold revenue to R33 982 million
(US$1 946 million) from R30 669 million (US$2 033 million)
- 49% increase in group operating free cash flow to R3 237 million
(US$186 million) from R2 174 million (US$144 million)
- 94% increase in South African underground operating free cash
flow to R2 695 million (US$154 million) from R1 392 million
(US$92 million) driven by higher recovered grades
- Mponeng contributed 39% towards group operating free
cash flow
- 5% increase in underground recovered grades to 5.68g/t
from 5.39g/t
- 2% increase in total gold production to 33 785kg (1 086 213oz)
from 33 241kg (1 068 718oz) after adjusting for closure of
Bambanani at the end of FY22
- 13% increase in average gold price received to R992 899/kg
(US$1 769/oz) from R877 249/kg (US$1 809/oz)
- 8% increase in group all-in sustaining costs (AISC) to
R895 580/kg (US$1 595/oz) from R825 925/kg (US$1 703/oz)
- Net debt to EBITDA improved to 0.5 times from 0.6 times in
previous quarter
- We remain on track to meet our FY23 production, cost and
grade guidance
* 9M FY22 – nine-month period ended 31 March 2022
# LTIFR – lost-time injury frequency rate
HIGHER RECOVERED GRADES AND EXCELLENT MINING DISCIPLINE DRIVE STRONG
PERFORMANCE FROM SOUTH AFRICAN UNDERGROUND OPERATIONS
Johannesburg, South Africa. Wednesday, 10 May 2023. Harmony
Gold Mining Company Limited ("Harmony" or "the Company") is pleased to
report its operational performance for the nine months ended 31 March 2023
(9M FY23).
Average recovered grades at the South African underground operations
increased by 7% to 5.68g/t for this reporting period from 5.39g/t in the
previous reporting period ending 31 March 2022 (9M FY22) after adjusting for
the closure of Bambanani mine at the end of FY22. The higher underground
recovered grades continued through from the first half of the financial year into
the third quarter, driving a solid group performance in 9M FY23.
Group revenue in 9M FY23 increased by 11% to R33 982 million
(US$1 946 million) from R30 669 million (US$2 033 million) in the previous
reporting period. This was mainly driven by a higher average gold price
received, which increased by 13% to R992 899/kg (US$1 769/oz) from
R877 249/kg (US$1 809/oz) alongside the abovementioned increase in
underground recovered grades over this reporting period.
Group production in 9M FY23 increased by 2% to 33 785kg (1 086 213oz)
from 33 241kg (1 068 718oz) in 9M FY22, after adjusting for the closure
of Bambanani. Cost increases continue to remain within our planning
parameters. Cash operating costs in 9M FY23 increased by only 7% to
R745 682/kg (US$1 328/oz) from R697 146/kg (US$1 437/oz) in 9M FY22.
All-in sustaining costs (AISC) increased by 8% to R895 580/kg (US$1 595/oz)
from R825 925/kg (US$1 703/oz) in the previous reporting period. All-in costs
increased by 10% to R940 559/kg (US$1 675/oz) from R851 291/kg
(US$1 755/oz). As a result, group operating free cash flow in 9M FY23
increased by 49% to R3 237 million (US$186 million) from R2 174 million
(US$144 million) in 9M FY22.
Major capital is being allocated to quality ounces across Harmony as we
continue the transition towards a higher-margin, lower-risk gold producer with
a meaningful copper footprint.
Our investment in quality ounces is paying off as Mponeng delivered a 192%
increase in operating free cash flow of R1 274 million (US$73 million) for this
reporting period from R437 million (US$29 million) in the previous nine-month
period ending 31 March 2022. Key projects including the extension of the
Kareerand tailings storage facility at Mine Waste Solutions and the Zaaiplaats
decline at Moab Khotsong are also progressing well. In Papua New Guinea,
the mining operation at Hidden Valley mine is expected to intercept the
higher-grade Big Red portion of the ore body. This will result in improved gold
and silver recovered grades for the remainder of the financial year.
Net debt decreased to R4 512 million (US$253 million) from R4 710 million
(US$277 million) as at 31 December 2022. The Company's balance sheet
remains strong with net debt to EBITDA decreasing to 0.5 times from 0.6 times
a result.
We remain focused on safety, effective cost management and delivering
consistent production. Harmony has managed to ensure production was not
meaningfully impacted by the ongoing energy shortages in South Africa through
proactive engineering and mining practices.
We have a phenomenal choice of greenfield and brownfield projects at our
disposal while our copper projects offer good optionality and diversification.
The high-grade assets of Mponeng and Moab Khotsong transformed the
Harmony portfolio due to their high-quality ounces. Progress continues to
be made on the permitting of Wafi-Golpu with the signing of a non-binding
Memorandum of Understanding on 6 April 2023. The results of the updated
feasibility study for Eva Copper will be complete and published before the
end of the calendar year.
Allocating major capital towards our high-grade underground operations,
high-margin surface retreatment operations and a growing international gold
and copper portfolio is core to creating long term value. A global production
profile split between gold and copper, underground and surface mining,
and our world-class projects will continue to de-risk the portfolio, improve
margins and drive an increase in profitability.
Sustainable mining is demonstrating we care for all our stakeholders
while striking a balance between short-term cash generation and
investing for long-term growth and prosperity. This is what we call
"Mining with Purpose".
HEALTH AND SAFETY
Ensuring the safety of each employee remains the number one priority
throughout Harmony. Our approach to safety has shifted from a reactive to a
proactive safety approach, with risk management transforming the way we
operate. The modernisation and digitisation strategy continues to improve
access to real-time data, ensuring that decision makers and employees in
the work places are able to take proactive decisions to mitigate risks. This,
together with our humanistic culture transformation programme not only
ensures that we have the necessary capacity in our systems but also ensures
all our hearts and minds are engaged to achieve zero harm.
Some of the notable milestones achieved year to date include the
sixth consecutive quarter where the lost-time injury frequency rate (LTIFR)
was below 6.00 per 1 million hours worked. The LTIFR for our South African
operations for this reporting period is 5.55. For the second year in a row we
had a loss-of-life free January and February. Seven out of nine underground
operations now exceed 1 million loss-of-life free shifts, demonstrating a clear
improvement in the approach and relationship to safety throughout Harmony.
It is however with much sadness and regret that we report two of our
colleagues lost their lives during the third quarter of FY23. We pay our respects
to Luyanda Nkwane, a development team member from Tshepong Mine and
Tshimane Isaac Matabane, a stope team member from Kusasalethu Mine who
both tragically lost their lives in mine-related incidents.
Occupational-related illnesses continue to be actively managed as we strive to
ensure all employees and their families remain healthy.
Please see the Company's website for more information on our safety and
health initiatives, as well as the Harmony Risk Management guide.
OPERATIONAL PERFORMANCE TO DATE
South African high-grade underground
The South African high-grade operations, namely Moab Khotsong and
Mponeng, delivered improvements in all operating metrics for this reporting
period. Recovered grades improved by 6% to 7.53g/t from 7.12g/t in the
previous reporting period. This resulted in a 7% increase in production to
10 012kg (321 892oz) from 9 370kg (301 252oz).
Cash operating costs remained largely flat year on year at R681 748/kg
(US$1 214/oz). AISC increased by only 1% to R790 492/kg (US$1 408/oz)
from R780 338/kg (US$1 609/oz) in 9M FY22.
It is worth highlighting that the Mponeng AISC actually decreased by 7% to
R785 880/kg (US$1 400/oz) from R847 203/kg (US$1 747/oz) due to the
13% increase in its underground recovered grades to 8.25g/t from 7.32g/t.
Production at Mponeng also increased 18% to 5 314kg (170 848oz) from
4 502kg (144 742oz) in the previous reporting period.
Operating free cash flows from the high-grade portfolio therefore increased by
88% to R1 986 million (US$114 million) from R1 056 million (US$70 million)
in 9M FY22.
South African optimised underground
The optimised underground portfolio consists of Tshepong North, Tshepong
South, Joel, Target 1, Masimong, Kusasalethu and Doornkop. These mines
continue to perform well and most operations delivered good performances
across the key operational metrics year on year.
Gold production from the optimised operations declined by only 2% to
14 839kg (477 085oz) from 15 197kg (488 593oz) in the previous reporting
period, excluding Bambanani. Underground recovered grades increased by 6%
to 4.87g/t from 4.60g/t.
Cash operating costs increased by 12% to R831 255/kg (US$1 481/oz)
from R744 488/kg (US$1 535/oz). AISC increased by 11% to R962 330/kg
(US$1 714/oz) from R867 564/kg (US$1 789/oz).
Operating free cash flows increased by 161% to R691 million (US$40 million)
from R265 million (US$18 million).
The strong performances from Tshepong South, Joel, Masimong and Doornkop
in this reporting period were offset by ongoing challenges at Target 1 and lower
than anticipated recovered grades at Kusasalethu.
At Target 1, we have been progressing the optimisation project while still
continuing with mining operations. This has resulted in a significantly higher
AISC. This project is expected to be completed towards the end of this
financial year.
South African surface
The South African surface operations consist of the Kalgold open pit mine,
the tailings retreatment operations which include Mine Waste Solutions,
Phoenix, Central Plant reclamation, Savuka tailings and the rock dumps. As
we mine out the rock dumps, total production from the South African surface
operations declined by 6%, as planned, to 6 000kg (192 906oz) from 6 368kg
(204 734oz) in the previous reporting period.
Cash operating costs increased by 19% to R719 241/kg (US$1 281/oz) in
9M FY23 from R604 427/kg (US$1 246/oz) in 9M FY22. AISC increased by
21% to R778 412/kg (US$1 387/oz) from R645 432/kg (US$1 331/oz). This
was mainly due to the lower waste rock dump production and the increase in
the cost of reagents, specifically cyanide.
Total capital expenditure increased by R499 million (US$26 million) to
R791 million (US$45 million) in 9M FY23 from R292 million (US$19 million) in
9M FY22 as construction of the Kareerand tailings storage facility extension at
Mine Waste Solutions continues.
Operating free cash flows decreased by 58% to R515 million (US$30 million)
from R1 239 million (US$82 million). Notwithstanding the large project capital
deployed towards the Kareerand tailings storage facility extension, operating
free cash flows were higher than anticipated due to the favourable gold
price received. A reminder that the Kareerand extension project and the
Franco-Nevada streaming agreement at Mine Waste Solutions will both end
in FY25. This will result in significantly improved free cash flows and higher
margins from Mine Waste Solutions.
International
Production from the Hidden Valley mine increased by 27% to 2 934kg
(94 330oz) in 9M FY23 from 2 306kg (74 139oz) in 9M FY22. Volumes on
the overland conveyor belt have returned to normalised levels resulting in the
significantly improved production compared to the previous reporting period.
Tonnes milled increased by 28% to 2.94 million tonnes from 2.29 million
tonnes in the previous reporting period. Recovered grades however decreased
by 1% to 1.00g/t from 1.01g/t as we continue with waste stripping to access
the higher grade portion of the ore body.
We expect improvements in both silver and gold grades from Hidden Valley
mine in the final quarter of the year as the mining operations reach the higher
grade Big Red portion of the ore body.
Cash operating costs during this reporting period improved by 11% to
R585 122/kg (US$1 042/oz) from R658 725/kg (US$1 358/oz). AISC also
improved by 6% to R1 168 565/kg (US$2 081/oz) from R1 239 065/kg
(US$2 555/oz).
Operating free cash flow improved to R27 million (US$2 million) in 9M FY23
from a negative R457 million (US$30 million) in the previous reporting period.
During the third quarter, work continued on the Eva Project study update, with
the commencement of sterilisation and resource definition drilling on site to
further inform study outcomes and proposed site infrastructure location.
The signing of the non-binding Memorandum of Understanding on the
6th of April 2023 is a significant milestone towards the permitting of the
Wafi-Golpu project in Papua New Guinea. It sets out the key fiscal and
non-fiscal terms between the parties to be adopted in the Mining Development
Contract. This includes, but is not limited to, State equity participation,
royalties, taxes and legislative and fiscal stability. The terms negotiated are
expected to maintain returns similar to those shown by the 2018 feasibility
study update.
HEDGING
During the quarter, the rand gold hedge book was filled in response to the
sharp rise in the rand gold price. The average forward rand gold price on the
hedge book is at R1 135 000/kg on a net position of 552 000oz at the end of
the third quarter. Harmony will only hedge when it is certain that it can achieve
a minimum margin of 25% above AISC and inflation.
ANNUAL PRODUCTION, COST AND GRADE
GUIDANCE
With one quarter's production remaining for FY23, we remain confident of
achieving our annual guidance of:
- 1 400 000 to 1 500 000oz in total production
- overall AISC guidance of below R900 000/kg
- underground grade guidance at 5.45 to 5.60g/t
KEY OPERATIONAL METRICS(1, 2) FOR THE FINANCIAL YEAR 2023 ("FY23") TO DATE
Nine Nine Third Third
Y-on-Y months months Q-on-Q quarter quarter
Unit % FY23 FY22 % FY23(3) FY22(4)
Gold revenue Rm 11 33 982 30 669 23 11 232 9 158
US$m (4) 1 946 2 033 5 633 602
Gold price R/kg 13 992 899 877 249 15 1 058 335 918 412
US$/oz (2) 1 769 1 809 (1) 1 855 1 879
Underground yield g/t 5 5.68 5.39 5 5.68 5.40
Gold produced total kg (2) 33 785 34 357 6 10 748 10 131
oz (2) 1 086 213 1 104 598 6 345 558 325 719
Gold production – South Africa underground high-grade kg 7 10 012 9 370 23 3 381 2 757
oz 7 321 892 301 252 23 108 701 88 640
Gold production – South Africa underground optimised kg (2) 14 839 15 197 (8) 4 291 4 685
oz (2) 477 085 488 593 (8) 137 960 150 626
Gold production – South Africa surface kg (6) 6 000 6 368 8 2 125 1 974
oz (6) 192 906 204 734 8 68 322 63 465
Gold production – International kg 27 2 934 2 306 119 951 435
oz 27 94 330 74 139 119 30 575 13 986
Cash operating cost R/kg (7) 745 682 697 146 (1) 755 836 767 292
US$/oz 8 1 328 1 437 (16) 1 324 1 569
All-in sustaining cost R/kg (8) 895 580 825 925 2 906 343 885 126
US$/oz 6 1 595 1 703 (12) 1 588 1 810
All-in cost(5) R/kg (11) 946 882 855 403 5 966 305 923 966
US$/oz 4 1 687 1 764 (10) 1 693 1 890
Operating free cash flow Rm 49 3 237 2 174 >100 1 288 (98)
US$m 29 186 144 >100 73 (6)
Major capital Rm (62) 1 407 866 (55) 516 332
Average exchange rate US$/Rand 16 17.46 15.09 17 17.75 15.21
Net debt/EBITDA(6) times 0.5 0.1 0.5 0.1
(1) The financial information has not been reviewed or audited by the Company's external auditors
(2) Quarter-on-quarter operational tables are available on our website: http://www.harmony.co.za
(3) Three-months ended 31 March 2023
(4) Three-months ended 31 March 2022
(5) Figures include non-production costs from Eva Copper and Wafi-Golpu and therefore differ from the operating tables
(6) 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
OPERATING RESULTS – NINE MONTHS ON NINE MONTHS (RAND/METRIC)
SOUTH AFRICA
Nine UNDERGROUND PRODUCTION
months Moab Tshepong Tshepong Total
ended Khotsong Mponeng North South Doornkop Joel Target 1 Kusasalethu Masimong Bambanani(3) Underground
Ore milled t'000 Mar 23 685 644 598 386 665 323 266 453 357 — 4 377
Mar 22 701 615 734 433 657 315 345 458 365 139 4 762
Yield g/tonne Mar 23 6.86 8.25 4.19 6.65 4.86 4.54 3.53 5.77 4.27 — 5.68
Mar 22 6.94 7.32 3.85 5.54 4.06 3.36 4.13 7.46 3.85 8.03 5.39
Gold produced kg Mar 23 4 698 5 314 2 504 2 565 3 232 1 465 938 2 612 1 523 — 24 851
Mar 22 4 868 4 502 2 829 2 397 2 668 1 057 1 424 3 415 1 407 1 116 25 683
Gold sold kg Mar 23 4 792 5 325 2 533 2 584 3 263 1 478 923 2 625 1 538 19 25 080
Mar 22 4 866 4 515 2 850 2 413 2 730 1 064 1 421 3 476 1 416 1 125 25 876
Gold price received R/kg Mar 23 1 005 035 1 006 119 1 001 939 1 004 336 999 162 1 002 123 1 001 800 1 003 207 1 002 371 962 579 1 003 439
Mar 22 885 941 917 957 884 351 886 127 879 473 884 992 890 521 885 622 889 311 877 664 890 681
Gold revenue(1) R'000 Mar 23 4 816 127 5 357 584 2 537 911 2 595 203 3 260 266 1 481 138 924 661 2 633 418 1 541 647 18 289 25 166 244
Mar 22 4 310 989 4 144 574 2 520 401 2 138 225 2 400 962 941 631 1 265 431 3 078 421 1 259 265 987 372 23 047 271
Cash operating cost R'000 Mar 23 3 264 576 3 561 088 1 982 004 1 767 438 2 189 263 1 164 298 1 499 283 2 473 995 1 258 717 — 19 160 662
(net of by-product credits) Mar 22 3 098 908 3 279 364 2 153 176 1 618 324 1 829 006 957 203 1 336 876 2 300 049 1 119 348 891 578 18 583 832
Inventory movement R'000 Mar 23 39 696 (10 665) 23 341 14 680 26 754 10 392 (21 387) 26 347 10 311 15 728 135 197
Mar 22 (68 962) 37 140 12 949 9 632 29 239 3 221 (5 821) 14 389 715 9 918 42 420
Operating costs R'000 Mar 23 3 304 272 3 550 423 2 005 345 1 782 118 2 216 017 1 174 690 1 477 896 2 500 342 1 269 028 15 728 19 295 859
Mar 22 3 029 946 3 316 504 2 166 125 1 627 956 1 858 245 960 424 1 331 055 2 314 438 1 120 063 901 496 18 626 252
Production profit R'000 Mar 23 1 511 855 1 807 161 532 566 813 085 1 044 249 306 448 (553 235) 133 076 272 619 2 561 5 870 385
Mar 22 1 281 043 828 070 354 276 510 269 542 717 (18 793) (65 624) 763 983 139 202 85 876 4 421 019
Capital expenditure R'000 Mar 23 839 413 522 547 397 785 367 453 512 171 165 899 291 910 179 296 33 675 — 3 310 149
Mar 22 592 872 428 026 750 349 340 164 328 257 145 839 275 462 148 239 36 609 25 444 3 071 261
Cash operating costs R/kg Mar 23 694 886 670 133 791 535 689 060 677 371 794 743 1 598 383 947 165 826 472 — 771 022
Mar 22 636 588 728 424 761 109 675 146 685 534 905 585 938 817 673 514 795 557 798 905 723 585
Cash operating costs R/tonne Mar 23 4 766 5 530 3 314 4 579 3 292 3 605 5 636 5 461 3 526 — 4 378
Mar 22 4 421 5 332 2 933 3 737 2 784 3 039 3 875 5 022 3 067 6 414 3 903
Cash operating cost R/kg Mar 23 873 561 768 467 950 395 832 316 835 840 907 984 1 909 587 1 015 808 848 583 — 904 222
and capital Mar 22 758 377 823 498 1 026 343 817 058 808 569 1 043 559 1 132 260 716 922 821 576 821 704 843 168
All-in sustaining cost R/kg Mar 23 795 616 785 880 962 164 831 932 787 518 912 417 1 901 201 1 048 045 890 793 827 789 892 911
Mar 22 718 295 847 203 978 177 822 322 777 090 1 048 263 1 124 321 726 124 850 225 842 684 834 860
All-in cost R/kg Mar 23 893 742 792 473 973 338 851 607 860 259 931 875 2 030 078 1 048 545 892 846 827 789 931 746
Mar 22 769 511 857 489 1 044 023 835 750 825 697 1 065 246 1 187 187 726 596 862 979 845 071 864 934
Operating free cash flow % Mar 23 15% 24% 6% 18% 17% 10% (94)% (1)% 16% 100% 11%
margin(2) Mar 22 14% 11% (15)% 8% 10% (17)% (27)% 20% 8% 7% 6%
(1) Includes a non-cash consideration to Franco-Nevada (Mar 23: R261.980m, Mar 22: R370.984m), excluded from the gold price calculation
(2) Excludes run-of-mine costs for Kalgold (Mar 23: R4.424m, Mar 22: R1.224m) and Hidden Valley (Mar 23: R115.995m, Mar 22: R293.954m)
(3) The Bambanani operation closed in June 2022.
OPERATING RESULTS – NINE MONTHS ON NINE MONTHS (RAND/METRIC) continued
SOUTH AFRICA
Nine SURFACE PRODUCTION TOTAL
months Mine waste Central plant Savuka SOUTH Hidden TOTAL
ended solutions Phoenix reclamation Tailings Dumps Kalgold Total Surface AFRICA Valley HARMONY
Ore milled t'000 Mar 23 17 484 4 680 2 992 2 912 3 425 1 018 32 511 36 888 2 936 39 824
Mar 22 17 924 4 662 3 020 2 261 4 515 1 084 33 466 38 228 2 285 40 513
Yield g/tonne Mar 23 0.119 0.128 0.143 0.154 0.453 0.87 0.18 0.84 1.00 0.85
Mar 22 0.128 0.122 0.141 0.154 0.412 0.80 0.19 0.84 1.01 0.85
Gold produced kg Mar 23 2 086 601 427 449 1 553 884 6 000 30 851 2 934 33 785
Mar 22 2 299 567 427 348 1 861 866 6 368 32 051 2 306 34 357
Gold sold kg Mar 23 2 086 605 422 451 1 529 879 5 972 31 052 2 909 33 961
Mar 22 2 277 561 418 370 1 904 873 6 403 32 279 2 258 34 537
Gold price received R/kg Mar 23 815 451 1 002 355 1 006 417 1 003 541 1 012 812 1 005 405 940 573 991 348 1 009 448 992 899
Mar 22 748 486 883 768 890 847 918 759 890 471 882 457 839 958 880 620 829 066 877 249
Gold revenue(1) R'000 Mar 23 1 963 010 606 425 424 708 452 597 1 548 590 883 751 5 879 081 31 045 325 2 936 484 33 981 809
Mar 22 2 075 286 495 794 372 374 339 941 1 695 456 770 385 5 749 236 28 796 507 1 872 031 30 668 538
Cash operating cost R'000 Mar 23 1 354 861 377 319 244 304 233 998 1 434 657 670 305 4 315 444 23 476 106 1 716 747 25 192 853
(net of by-product credits) Mar 22 1 193 631 328 102 215 004 203 252 1 249 453 659 550 3 848 992 22 432 824 1 519 021 23 951 845
Inventory movement R'000 Mar 23 (4 616) 1 655 (4 060) 1 600 (25 371) (8 736) (39 528) 95 669 (14 105) 81 564
Mar 22 (18 057) (4 834) (3 510) 14 588 15 208 265 3 660 46 080 (47 997) (1 917)
Operating costs R'000 Mar 23 1 350 245 378 974 240 244 235 598 1 409 286 661 569 4 275 916 23 571 775 1 702 642 25 274 417
Mar 22 1 175 574 323 268 211 494 217 840 1 264 661 659 815 3 852 652 22 478 904 1 471 024 23 949 928
Production profit R'000 Mar 23 612 765 227 451 184 464 216 999 139 304 222 182 1 603 165 7 473 550 1 233 842 8 707 392
Mar 22 899 712 172 526 160 880 122 101 430 795 110 570 1 896 584 6 317 603 401 007 6 718 610
Capital expenditure R'000 Mar 23 567 394 31 640 16 166 8 501 2 870 164 457 791 028 4 101 177 1 309 153 5 410 330
Mar 22 124 165 13 140 12 519 20 133 2 739 118 960 291 656 3 362 917 1 103 885 4 466 802
Cash operating costs R/kg Mar 23 649 502 627 819 572 141 521 154 923 797 758 264 719 241 760 951 585 122 745 682
Mar 22 519 196 578 663 503 522 584 057 671 388 761 605 604 427 699 910 658 725 697 146
Cash operating costs R/tonne Mar 23 77 81 82 80 419 658 133 636 585 633
Mar 22 67 70 71 90 277 608 115 587 665 591
Cash operating cost R/kg Mar 23 921 503 680 464 610 000 540 087 925 645 944 301 851 079 893 886 1 031 322 905 822
and capital Mar 22 573 204 601 838 532 841 641 911 672 860 898 972 650 227 804 834 1 137 427 827 157
All-in sustaining cost R/kg Mar 23 706 289 681 766 615 897 541 239 923 581 963 280 778 412 870 009 1 168 565 895 580
Mar 22 557 865 600 758 540 332 644 072 661 570 910 825 645 432 797 014 1 239 065 825 925
All-in cost R/kg Mar 23 947 558 681 766 615 897 541 239 923 581 966 127 863 105 918 869 1 172 102 940 559
Mar 22 588 826 600 758 540 332 644 072 664 965 920 712 657 791 824 031 1 240 821 851 291
Operating free cash flow % Mar 23 (13%) 33% 39% 46% 7% 6% 9% 10% 1% 10%
margin(2) Mar 22 23% 31% 39% 34% 26% (1%) 23% 9% (24%) 7%
(1) Includes a non-cash consideration to Franco-Nevada (Mar 23: R261.980m, Mar 22: R370.984m), excluded from the gold price calculation
(2) Excludes run-of-mine costs for Kalgold (Mar 23: R4.424m, Mar 22: R1.224m) and Hidden Valley (Mar 23: R115.995m, Mar 22: R293.954m)
(3) The Bambanani operation closed in June 2022.
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), KT Nondumo*^ (deputy
chairman), Dr M Msimang*^ (lead independent
director), PW Steenkamp (chief executive officer),
BP Lekubo (financial director), Dr HE Mashego
(executive director)
B Nqwababa*^, VP Pillay*^, MJ Prinsloo*^,
GR Sibiya*^, PL Turner*^, JL Wetton*^
* Non-executive
^ Independent
COMPANY SECRETARY
SS Mohatla
E-mail queries: companysecretariat@harmony.co.za
Telephone: +27 11 411 2359
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 6073 or +27 82 746 4120
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
AMERICAN DEPOSITARY RECEIPTS
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
SPONSOR
J.P. 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: ZAE000015228
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 2022, 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; the impact from, and
measures taken to address, Covid-19 and other contagious diseases, such as HIV and tuberculosis; rising inflation, supply
chain issues, volatile commodity costs and other inflationary pressures exacerbated by the Russian invasion of Ukraine
and subsequent sanctions; estimates of future earnings, and the sensitivity of earnings to gold and other metals prices;
estimates of future gold and other metals production and sales; estimates of future cash costs; estimates of future cash
flows, and the sensitivity of cash flows to gold and other metals prices; estimates of provision for silicosis settlement;
increasing regulation of environmental and sustainability matters such as greenhouse gas emission and climate change,
and the impact of climate change on our operations; estimates of future tax liabilities under the Carbon Tax Act (South
Africa); 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 operations; fluctuations in the
market price of gold and other metals; 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; ageing infrastructure, unplanned breakdowns and
stoppages that may delay production, increase costs and industrial accidents; 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 or sufficient gender diversity in management positions or
at Board level; 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, as well as the impact of South African exchange control regulations; 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, Australia and other countries in which we operate; changes in technical and economic assumptions
underlying our mineral reserves estimates; geotechnical challenges due to the ageing of certain mines and a trend toward
mining deeper pits and more complex, often deeper underground, deposits; and actual or alleged breach or breaches
in governance processes, fraud, bribery or corruption at our operations that leads to censure, penalties or negative
reputational impacts.
The foregoing factors and others described under "Risk Factors" in our Integrated Annual Report (http://www.har.co.za) and our
Form 20-F 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.
The forward-looking financial information has not been reviewed and reported on by the company's auditors.
Johannesburg
10 May 2023
Date: 10-05-2023 02:01:00
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