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HARMONY GOLD MINING COMPANY LIMITED - Operational Update for the three months ended 30 September 2019

Release Date: 13/11/2019 14:12:00      Code(s): HAR       PDF(s):  
Operational Update for the three months ended 30 September 2019

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


OPERATIONAL UPDATE FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2019

Johannesburg. Wednesday, 13 November 2019. Harmony Gold Mining Company (“Harmony” or “the
company”) is pleased to report that good momentum at most of its mines, together with a
higher Rand gold price received, resulted in much stronger cash operating cash flows in
the first quarter of financial year 2020 (FY20).



Gold production from the South African underground operations quarter on quarter was 7%
higher at 8 736kg, Total gold production rose by 1.5% to 11 231kg. Underground recovered
grade reduced by 5.4% to 5.26g/t at the South African underground operations.

Lower grades were anticipated at Joel and Hidden Valley, and at the South African
underground mines nearing the end of their lives (Bambanani, Masimong and Unisel). Higher
grades are expected from both Joel and Hidden Valley (as we transition from stage 5 to
stage 6 cutbacks) towards the fourth quarter.



An unexpected geological structure in one high grade raiseline at Kusasalethu resulted in
four panels being stopped. Given the erratic nature of the Ventersdorp Contact Reef, some
high grade areas are currently being mined at lower grades than expected. We believe
Kusasalethu should be back on plan towards the end of FY20.



Total gold revenue was 20% higher at about R8 billion – a consequence mainly of a 12%
increase in the average Rand gold price received to
R683 572/kg and the increase in gold sold during the quarter. Production profit was 34%
higher at R2.4 billion. Total cash operating costs increased by 10.9% (R536 million).
Once-off winter electricity tariffs (R271 million) and annual wage increases of R181
million were the primary contributors, accounting for 5.5% and 3.7% respectively of the
increase in total cash costs.



*Operating free cash flow margin is defined as revenue – cash operating cost – capital
expenditure + impact of run of mine (ROM) costs as per operating results.
OPERATING RESULTS SUMMARY

                                                                                     Comparative
                                          Quarter   Quarter     Q-on-Q     Quarter       Q-on-Q*
                                        September      June   Variance   September     Variance*
                                             2019      2019          %        2018             %

Gold produced                      kg      11 231    11 061          2      11 773           (5)

                                   oz     361 085   355 620          2     378 510           (5)

Underground grade                 g/t        5.26      5.56        (5)        5.68           (7)

Gold price received              R/kg     683 572   607 723         12     570 545            20

                              US$/oz        1 449     1 315         10       1 263            15

Cash operating costs             R/kg     484 604   443 590        (9)     428 826          (13)

                              US$/oz        1 027       960        (7)         949           (8)

All-in sustaining costs          R/kg     589 597   570 149        (3)     526 747          (12)

                              US$/oz        1 250     1 234        (1)       1 166           (7)

Production profit           R million       2 379     1 775         34       1 678            42

                          US$ million         162       123         32         119            36

Exchange rate                   R/US$       14.68     14.37          2       14.05             4

* September 2019 quarter and September 2018 quarter comparison
Quarter-on-quarter operating tables have been included on pages 3 to 4 (R/metric) and
pages 5 to 6 (US$/imperial).

The operational update has not been reviewed by the company’s external auditors. Detailed
financial and operational results are provided on a six monthly basis at the end of
December and June.


WAFI-GOLPU

Permitting delays have necessitated the Wafi-Golpu Joint Venture (“WGJV”) revising the
work programme previously planned to start this financial year. The legal proceedings
giving rise to these delays remain unresolved, and an ongoing review by the PNG
Government of policies governing the mining industry may further delay permitting
timelines.
It is difficult to estimate the duration of the delay and the market will be advised when
discussions resume. The Government continues to signal its support for the project.
Harmony continues to pursue safe profitable production and increased margins, as well as
value-accretive opportunities and organic growth, to replenish mined ounces.


HEDGING UPDATE

During the quarter, the volatility and weakening of the Rand exchange rate against the US
dollar, combined with the increase in the gold price, presented an opportunity to top up
and maintain our hedging programme.
The table below shows the open position at 30 September 2019:
Harmony Gold Hedge position as at 30 September 2019
                                 FY 2020                     FY2021                 FY2022
                           Q2        Q3      Q4      Q1      Q2       Q3      Q4        Q1   TOTAL
Rand Gold
Forward           koz       95        95      96      77      75       74      61       25     598
Contracts
              R’000/kg     642       648     661     672     679      690     728      787     675
Dollar Gold
Forward           koz       12        12      12      12       9        7       4        2      70
Contracts
               US$/oz    1 363     1 357   1 370   1 413   1 417   1 456    1 477    1 532   1 400
Total Gold        koz      107       107     108      89      84       81      65       27     668
Currency
Hedges
Rand Dollar
Zero Cost          $m       79        76      74      64      59       52      29        5     438
Collars
                Floor    14.63     14.82   14.99   15.30   15.32   15.46    15.62    15.91   15.09
                  R/$
              Cap R/$    15.44     15.66   15.85   16.22   16.38   16.54    16.76    17.31   16.03
Forward            $m       45        64      60      61      35       24       6        –     295
Contracts
                  R/$    15.13     15.28   15.44   15.89   15.82   15.96    16.23        –   15.49
Total Rand         $m      124       140     134     125      94       76      35        5     733
Dollar
Dollar
Silver
Zero Cost         koz      300       300     300     240     220      210     180      140   1 890
Collars
                Floor    17.06     17.06   17.06   17.38   17.93   18.07    18.32    18.43   17.54
                 $/oz
              Cap $/oz   18.43     18.43   18.43   18.79   19.38   19.53    19.82    19.95   18.95


Approved hedging limits: 25% currency (R/US$) over a 24-month period;23% gold over a 24-
month period; 50% silver over a 24-month period.

FY20 GUIDANCE UPDATE
Harmony’s plans to produce approximately 1.46Moz in FY2020 remain unchanged.
Cost guidance remains at an all-in sustaining unit cost of R579 000/kg.
OPERATING RESULTS – QUARTER ON QUARTER (RAND/METRIC)
                                                                                                                     SOUTH AFRICAN OPERATIONS

                                                                                     UNDERGROUND PRODUCTION                                                                   SURFACE PRODUCTION
                                                                                                                                                                                                                                Papua New
                                  Three                                                                                                               TOTAL                  Central                                   TOTAL       Guinea
                                 months     Tshepong       Moab                                                                                      UNDER-                    plant                         TOTAL     SOUTH       Hidden     TOTAL
                                  ended   operations   Khotsong   Bambanani      Joel    Doornkop   Target 1   Kusasalethu   Masimong   Unisel       GROUND    Phoenix   reclamation    Dumps    Kalgold   SURFACE    AFRICA       Valley   HARMONY

                       – t’000   Sep-19          469        249          64       129         192        150           171        167       69        1 660      1 637         1 008      978        414     4 037     5 697          974     6 671
Ore milled
                                 Jun-19          401        207          54       110         152        142           196        144       67        1 473      1 521           988    1 058        399     3 966     5 439        1 038     6 477

                             –   Sep-19         4.97       9.28        9.86      3.23        4.06       3.56          4.98       3.77     3.62         5.26      0.134         0.151    0.338       0.71      0.25      1.71         1.54      1.68
Yield                  g/tonne
                                 Jun-19         4.94       8.56       11.37      4.11        3.95       3.59          6.94       4.27     4.27         5.56      0.131         0.152    0.358       0.86      0.27      1.70         1.73      1.71

                         – kg    Sep-19        2 333      2 311         631       417         779        534           851        630      250        8 736        219           152      331        296       998     9 734        1 497    11 231
Gold produced
                                 Jun-19        1 982      1 772         614       452         600        510         1 361        615      286        8 192        199           150      379        345     1 073     9 265        1 796    11 061

                         – kg    Sep-19        2 398      2 435         649       429         823        560           933        648      257        9 132        227           154      349        296     1 026    10 158        1 528    11 686
Gold sold
                                 Jun-19        2 012      1 673         623       469         591        514         1 341        624      290        8 137        198           150      370        348     1 066     9 203        1 762    10 965

                       – R/kg    Sep-19      685 373    691 927     686 963   683 343     693 610    647 448       682 840    659 838   656 339     682 667    665 291       691 455   686 599   689 524   683 457   682 747      689 058   683 572
Gold price received
                                 Jun-19      607 648    604 077     607 610   608 258     610 597    604 368       606 926    609 325   606 662     606 927    602 955       606 427   607 495   609 371   607 114   606 949      611 764   607 723

                       (R’000)   Sep-19    1 643 524      1 684     445 839   293 154     570 841    362 571       637 090    427 575   168 679       6 234    151 021       106 484   239 623   204 099   701 227     6 935        1 052     7 988
                                                            842                                                                                         115                                                              342          880       222
Gold revenue
                                 Jun-19    1 222 587      1 010     378 541   285 273     360 863    310 645       813 888    380 219   175 932       4 938    119 385        90 964   224 773   212 061   647 183     5 585        1 077     6 663
                                                            621                                                                                         569                                                              752          928       680

                       (R’000)   Sep-19    1 152 940    906 800     281 024   278 038     431 551    386 523       687 942    342 972   161 941       4 629     96 329        57 793   176 602   177 036   507 760     5 137      305 102     5 442
Cash operating cost                                                                                                                                     731                                                              491                    593
(net of by-product
credits)                         Jun-19    1 016 090    797 715     250 599   252 017     388 784    356 421       612 656    298 950   140 679       4 113     90 190        48 708   173 901   185 855   498 654     4 612      293 983     4 906
                                                                                                                                                        911                                                              565                    548

                       (R’000)   Sep-19       27 617     55 231      10 517     4 733      26 897     15 126        35 676     10 573    5 816      192 186      4 051            11    5 538    (2 225)     7 375   199 561     (33 232)   166 329
Inventory movement
                                 Jun-19       13 944   (39 264)      29 669   (10 685)   (19 220)        222       (7 104)      8 887    4 678      (18 873)       189           141   (2 108)     2 605       827   (18 046)         356   (17 690)

                       (R’000)   Sep-19    1 180 557    962 031     291 541   282 771     458 448    401 649       723 618    353 545   167 757       4 821    100 380        57 804   182 140   174 811   515 135     5 337      271 870     5 608
                                                                                                                                                        917                                                              052                    922
Operating costs
                                 Jun-19    1 030 034    758 451     280 268   241 332     369 564    356 643       605 552    307 837   145 357       4 095     90 379        48 849   171 793   188 460   499 481     4 594      294 339     4 888
                                                                                                                                                        038                                                              519                    858

                       (R’000)   Sep-19      462 967    722 811     154 298    10 383     112 393   (39 078)      (86 528)     74 030      922        1 412     50 641        48 680   57 483     29 288   186 092     1 598      781 010     2 379
                                                                                                                                                        198                                                              290                    300
Production profit
                                 Jun-19      192 553    252 170      98 273    43 941     (8 701)   (45 998)       208 336     72 382   30 575      843 531     29 006        42 115   52 980     23 601   147 702   991 233      783 589     1 774
                                                                                                                                                                                                                                                822

                       (R’000)   Sep-19      267 564    152 598      17 455    43 865      87 091     78 477        52 542      7 593    1 884      709 069          –         1 647        –     23 007    24 654   733 723      498 293     1 232
                                                                                                                                                                                                                                                016
Capital expenditure
                                 Jun-19      299 969    140 258      14 176    52 867      91 964     69 738        77 161     29 300   15 200      790 633      2 262         2 420    1 247     19 788    25 717   816 350      478 292     1 294
                                                                                                                                                                                                                                                642

                       – R/kg    Sep-19      494 188    392 384     445 363   666 758     553 981    723 826       808 392    544 400   647 764     529 960    439 858       380 217   533 541   598 095   508 778   527 788      203 809   484 604
Cash operating costs
                                 Jun-19      512 659    450 178     408 142   557 560     647 973    698 865       450 151    486 098   491 885     502 186    453 216       324 720   458 842   538 710   464 729   497 848      163 688   443 590

                             –   Sep-19        2 458      3 642       4 391     2 155       2 248      2 577         4 023      2 054    2 347        2 789         59            57      181        428       126       902          313       816
Cash operating costs   R/tonne
                                 Jun-19        2 534      3 854       4 641     2 291       2 558      2 510         3 126      2 076    2 100        2 793         59            49      164        466       126       848          283       758

                       – R/kg    Sep-19      608 874    458 415     473 025   771 950     665 779    870 787       870 134    556 452   655 300     611 126    439 858       391 053   533 541   675 821   533 481   603 166      536 670   594 302
Cash operating cost
and Capital
                                 Jun-19      664 006    529 330     431 230   674 522     801 247    835 606       506 846    533 740   545 031     598 699    464 583       340 853   462 132   596 067   488 696   585 960      429 997   560 636

All-in sustaining      – R/kg    Sep-19      605 270    455 307     489 465   754 319     649 472    841 867       851 301    572 216   674 455     607 285    442 203       375 351   521 891   682 721   528 664   599 109      526 372   589 597
cost
                                 Jun-19      657 036    548 778     490 313   607 879     757 322    828 122       526 006    564 142   577 496     605 718    467 884       341 793   467 676   628 002   502 340   591 778      457 207   570 149

                            %    Sep-19           14         37          33      (10)           9       (28)          (16)         18           3        14         36            44       26          2        24        15           19        16
Operating free cash
flow margin¹
                                 Jun-19          (8)          7          30       (7)        (33)       (37)            15         14       11            1         23            44       22          4        19         3           30         7


¹ Excludes run of mine costs for Kalgold (Sep-19:R0.492m, Jun-19:R2.726m) and Hidden Valley (Sep-19:-R49.671m, Jun-19:R14.709m).
OPERATING RESULTS – QUARTER ON QUARTER (US$/IMPERIAL)


                                                                                                                     SOUTH AFRICAN OPERATIONS                                                                                 Papua New
                                                                                                                                                                                                                                 Guinea
                                                                                                                                                                                                                                 Hidden     TOTAL
                                                                                    UNDERGROUND PRODUCTION                                                                 SURFACE PRODUCTION                                    Valley   HARMONY

                                   Three                                                                                                         TOTAL                  Central                                      TOTAL
                                  months   Tshepong       Moab                                                                                  UNDER-                    plant                             TOTAL    SOUTH
                                   ended operations   Khotsong Bambanani    Joel    Doornkop    Target 1   Kusasalethu   Masimong   Unisel      GROUND    Phoenix   reclamation     Dumps       Kalgold   SURFACE   AFRICA

                                  Sep-19        517        275        71     142          212        165           189        184        76      1 831      1 805         1 112     1 078           457     4 452    6 283        1 074     7 357
Ore milled             – t’000
                                  Jun-19        442        228        60     121          168        157           216        159        74      1 625      1 677         1 089     1 167           440     4 373    5 998        1 145     7 143

                                  Sep-19      0.145      0.270     0.286   0.094        0.118      0.104         0.145      0.110     0.106      0.153      0.004         0.004     0.010         0.021     0.007    0.050        0.045     0.049
Yield                  – oz/ton
                                  Jun-19      0.144      0.250     0.329   0.120        0.115      0.104         0.203      0.124     0.124      0.162      0.004         0.004     0.010         0.025     0.008    0.050        0.050     0.050

                                  Sep-19     75 008     74 300    20 287   13 407      25 045     17 168        27 360     20 255     8 038     280 868     7 041         4 887    10 642         9 517    32 087   312 955      48 130   361 085
Gold produced             – oz
                                  Jun-19     63 723     56 971    19 741   14 532      19 290     16 397        43 757     19 773     9 195     263 379     6 398         4 823    12 185        11 092    34 498   297 877      57 743   355 620

                                  Sep-19     77 097     78 287    20 866   13 793      26 460     18 004        29 997     20 834     8 263     293 601     7 298         4 951    11 221         9 517    32 987   326 588      49 126   375 714
Gold sold                 – oz
                                  Jun-19     64 687     53 788    20 030   15 079      19 001     16 525        43 114     20 062     9 324     261 610     6 366         4 823    11 896        11 188    34 273   295 883      56 650   352 533

                                  Sep-19      1 453      1 466     1 456   1 448        1 470      1 372         1 447      1 398     1 391      1 447      1 410         1 466     1 455         1 461     1 449    1 447        1 460     1 449
Gold price received     – $/oz
                                  Jun-19      1 315      1 307     1 315   1 316        1 321      1 308         1 313      1 319     1 313      1 313      1 305         1 312     1 315         1 319     1 314    1 313        1 324     1 315

                                  Sep-19    111 989    114 805    30 379   19 975      38 897     24 706        43 411     29 135    11 494     424 791    10 291         7 256    16 328        13 907    47 782   472 573      71 743   544 316
Gold revenue
                       ($’000)
                                  Jun-19     85 063     70 315    26 338   19 848      25 108     21 614        56 627     26 454    12 241     343 608     8 306         6 329    15 639        14 754    45 028   388 636      74 998   463 634

Cash operating cost               Sep-19     78 561     61 790    19 149   18 945      29 406     26 338        46 876     23 370    11 035     315 470     6 564         3 938    12 034        12 064    34 600   350 070      20 790   370 860
(net of by-product     ($’000)
credits)                          Jun-19     70 695     55 503    17 435   17 535      27 050     24 798        42 627     20 799     9 788     286 230     6 275         3 389    12 100        12 931    34 695   320 925      20 454   341 379

                                  Sep-19      1 882      3 763       717     323        1 833      1 031         2 431        720       396     13 096        276             1       377         (152)       502   13 598      (2 264)    11 334
Inventory movement     ($’000)
                                  Jun-19        970    (2 732)     2 064   (743)      (1 337)         15         (494)        618       325     (1 314)        13            10     (147)           181        57   (1 257)          25   (1 232)

                                  Sep-19     80 443     65 553    19 866   19 268      31 239     27 369        49 307     24 090    11 431     328 566     6 840         3 939    12 411        11 912    35 102   363 668      18 526   382 194
Operating costs        ($’000)
                                  Jun-19     71 665     52 771    19 499   16 792      25 713     24 813        42 133     21 417    10 113     284 916     6 288         3 399    11 953        13 112    34 752   319 668      20 479   340 147

                                  Sep-19     31 546     49 252    10 513     707        7 658    (2 663)       (5 896)      5 045        63     96 225      3 451         3 317     3 917         1 995    12 680   108 905      53 217   162 122
Production profit      ($’000)
                                  Jun-19     13 398     17 544     6 839   3 056        (605)    (3 199)        14 494      5 037     2 128     58 692      2 018         2 930     3 686         1 642    10 276   68 968       54 519   123 487

                                  Sep-19     18 231     10 396     1 189   2 988        5 934      5 347         3 580        517       128     48 310          –           112         –         1 568     1 680   49 990       33 954    83 944
Capital expenditure    ($’000)
                                  Jun-19     20 870      9 758       986   3 678        6 399      4 852         5 369      2 039     1 058     55 009        157           168        87         1 377     1 789   56 798       33 278    90 076

                                  Sep-19      1 047        832       944   1 413        1 174      1 534         1 713      1 154     1 373      1 123        932           806     1 131         1 268     1 078    1 119          432     1 027
Cash operating costs    – $/oz
                                  Jun-19      1 109        974       883   1 207        1 402      1 512           974      1 052     1 064      1 087        981           703       993         1 166     1 006    1 077          354       960

                                  Sep-19        152        225       270     133          139        160           248        127       145        172          4             4        11            26         8       56           19        50
Cash operating costs     – $/t
                                  Jun-19        160        243       291     145          161        158           197        131       132        176          4             3        10            29         8       54           18        48

Cash operating cost               Sep-19      1 290        972     1 003   1 636        1 411      1 846         1 844      1 179     1 389      1 295        932           829     1 131         1 432     1 131    1 278        1 137     1 260
                        – $/oz
and Capital
                                  Jun-19      1 437      1 146       933   1 460        1 734      1 808         1 097      1 155     1 180      1 296      1 005           738     1 000         1 290     1 058    1 268          931     1 213

All-in sustaining                 Sep-19      1 283        965     1 037   1 599        1 376      1 784         1 804      1 213     1 429      1 287        937           796     1 106         1 447     1 120    1 270        1 110     1 250
                        – $/oz
cost
                                  Jun-19      1 422      1 188     1 061   1 315        1 639      1 792         1 138      1 221     1 250      1 311      1 013           740     1 012         1 359     1 087    1 281          988     1 234

Operating free cash               Sep-19         14         37        33    (10)            9       (28)          (16)         18         3         14         36            44        26             2        24       15           19        16
                             %
flow margin¹
                                  Jun-19        (8)          7        30     (7)         (33)       (37)            15         14        11          1         23            44        22             4        19        3           30         7


¹ Excludes run of mine costs for Kalgold (Sep-19:US$0.034m, Jun-19:US$0.190m) and Hidden Valley (Sep-19:-US$3 385m, Jun-19:US$1.023m).
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)
M Msimang*^ (lead independent director)
PW Steenkamp ** (chief executive officer)
F Abbott ** (financial director)
HE Mashego** (executive director)
JA Chissano*1^
FFT De Buck*^
KV Dicks*^
Dr DSS Lushaba*^
HG Motau*^
KT Nondumo*^
VP Pillay*^
GR Sibiya*^
MV Sisulu*^
JL Wetton*^
AJ Wilkens*
* Non-executive
** Executive
^ Independent
1 Mozambican


TRADING SYMBOLS
JSE Limited: HAR
New York Stock Exchange: HMY
ISIN: ZAE 000015228
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 2314
Website: www.harmony.co.za
Marian van der Walt
Executive: Corporate and Investor relations
+27 (0)82 888 1242
Marian.vanderWalt@Harmony.co.za
Max Manoeli
Senior Investor Relations Coordinator
+27(0)82 759 1775
Max.Manoeli@Harmony.co.za
James Duncan
R&A Strategic Communications
+27 (0)79 336 4010
james@rasc.co.za


COMPANY SECRETARY
Telephone: +27 11 411 2094
E-mail: companysecretariat@harmony.co.za


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


TRANSFER SECRETARIES
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House,
Ameshoff Street, Braamfontein
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: 0861 546 572
E-mail: info@linkmarketservices.co.za
Fax: +27 86 674 4381


ADR* DEPOSITARY
Deutsche Bank Trust Company Americas c/o American Stock Transfer and Trust Company
Deutsche Bank Trust Company Americas
c/o AST
Operations Centre
6201 15th Avenue
Brooklyn
NY11219
E-mail queries: db@astfinancial.com
Website: www.astfinancial.com
Toll free (within US): +1-886-249-2593
Int: +1-718-921-8124
Fax: +1-718-921-8334
*ADR: American Depositary Receipts

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
2019, are available on our website (www.harmony.co.za/invest)
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the safe harbor
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 report and
the exhibits, 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 this 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; 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 the gold and
other metals prices; estimates of provision for silicosis settlement; statements
regarding future debt repayments; estimates of future capital expenditures; the success
of our business strategy, 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; the occurrence of hazards
associated with underground and surface gold mining; the occurrence of labor disruptions;
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; changes in government regulation and the
political environment, particularly tax, mining rights, environmental regulation and
business ownership including any interpretation thereof; fluctuations in exchange rates
and currency devaluations and other macroeconomic monetary policies; the adequacy of the
Group’s insurance coverage; and socio-economic or political instability in South Africa,
Papua New Guinea, Australia and other countries in which we operate.
For a more detailed discussion of such risks and other factors (such as availability of
credit or other sources of financing), see the Company’s latest Integrated Annual Report
and Form 20-F which is on file with the Securities and Exchange Commission, as well as
the Company’s other Securities and Exchange Commission filings. The Company undertakes no
obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of this report or to reflect
the occurrence of unanticipated events, except as required by law. The foregoing factors
and others described under “Risk Factors” should not be construed as exhaustive.

Date: 13/11/2019 02:12:00
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