HARMONY GOLD MINING COMPANY LIMITED - Harmony delivers phase 1 of Kareerand TSF extension on time and within budget

Harmony delivers phase 1 of Kareerand TSF extension on time and within budget

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

HARMONY DELIVERS PHASE 1 OF KAREERAND TSF EXTENSION ON TIME AND
WITHIN BUDGET

Company to benefit fully from higher gold price after final delivery
into streaming contract at Mine Waste Solutions

Johannesburg. Wednesday, 23 October 2024. Harmony Gold Mining
Company Limited ("Harmony" or the "Company") is pleased to
confirm that the final delivery has been made into the streaming
agreement between Franco-Nevada and Mine Waste Solutions (MWS) on
23 October 2024 (quarter 2 of financial year 2025).

With this contract completed, MWS's average gold price received will
increase and will now be in line with market prices. Consequently,
MWS's free cash flow would increase by more than R1 billion on an
annualised basis, assuming the current spot rand per kilogram gold
price.

Furthermore, Phase 1 of the Kareerand tailings storage facility
(TSF) expansion project has been commissioned and delivered on
time and within budget. This increased storage capacity will
enable the continued re-mining of old tailings in the region and
extend MWS's life of mine by 15 years to 2040. This facility has
been constructed in line with the guidelines of the Global
Industry Standards on Tailings Management and now covers an area
of 900 hectares in total.

The broader expansion plans for MWS also included the addition of a
fourth processing stream, increasing plant throughput capacity from
25 to 28 million tonnes annually. As a result, gold production at
MWS is forecast to average approximately 110 000 ounces per annum
over the life of this operation.

We have guided for a further R1.2 billion in major capital
expenditure to be deployed at MWS in FY25 as we complete phase 1
of the extension. A total of R2.3 billion was allocated to the
TSF extension project in FY24 and FY25, with the bulk being used
to complete phase 1.

The phase 2 scope of work entails completing all outstanding
aspects related to the construction of the entire area covered by
the Kareerand TSF. This includes the installation of the
necessary infrastructure and services to reticulate the tailings
for cyclone deposition. While phase 1 (55% of the project)
involved preparing the low-lying basin of the facility, phase 2
(45%) applies to the north-western side of the basin. Phase 2 is
scheduled to be completed and commissioned by the end of the 2025
calendar year, after which operating free cash flow margins will
be further boosted.
"The conclusion of the Franco-Nevada streaming contract will
allow MWS to fully deliver on the value of its production and
contribute meaningfully to the broader Harmony group. This
project will be repaid within 3 years. The profitability of this
operation more than justifies the capital invested at Mine Waste
Solutions. Expanding our surface retreatment business is in line
with our strategy to invest in low-cost, high-margin quality
ounces," noted Harmony's CEO, Peter Steenkamp.

Background of the streaming agreement:

Harmony's subsidiary, Chemwes, the owner of the MWS operation,
entered a contract with Franco-Nevada Barbados (Franco-Nevada),
where Franco-Nevada was entitled to receive 25% of all the gold
produced through MWS at a predetermined price. As part of the
acquisition of Mponeng and related assets on 1 October 2020, MWS
was included in the transaction. Harmony assumed the obligations
determined in the Franco-Nevada contract and delivered the
outstanding 100 686 ounces.

The contract was a streaming agreement that commenced on 17
December 2008. Franco-Nevada paid US$125 million upfront for the
right to purchase 25% of the gold production through MWS for a
fixed amount of consideration until the balance of the gold cap
is delivered. The gold cap was a provision included in the
contract, which stipulated the maximum quantity of gold to be
sold to Franco-Nevada over the term of the agreement. It was
calculated that the gold would be delivered throughout the
original life of the mine and would terminate once the required
gold had been delivered. The consideration for the contract was
determined as the lower of the quoted spot gold price as per the
London Metals Exchange, or US$400 per ounce, adjusted with an
annual escalation adjustment.
Conference call and additional information:

Harmony will host a call today, 23 October 2024, at 14h00 (South
African Standard Time) to discuss the MWS TSF extension project
and completion of the streaming contract. If you would like to
register for the call, please contact Memory Johnstone at
Memory@rasc.co.za to obtain a Teams link to the call.

For more information on the Kareerand TSF expansion project,
watch this video: https://youtu.be/eQlVx-HdKnM

See our fact sheet here: https://www.harmony.co.za/wp-
content/uploads/2024/10/factsheet-2024-mws-kareerand-expansion-
project.pdf


Ends.
For more details contact:

Jared Coetzer
Head of Investor Relations
+27 (0) 82 746 4120

Johannesburg, South Africa
23 October 2024

Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited

Date: 23-10-2024 11:54:00
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