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HARMONY GOLD MINING COMPANY LIMITED - Operational Update for the nine months ended 31 March 2020

Release Date: 06/05/2020 13:00:00      Code(s): HAR       PDF(s):  
Operational Update for the nine months ended 31 March 2020

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


OPERATIONAL UPDATE for the nine months ended 31 March 2020


OPERATING FREE CASH FLOW MARGIN MORE THAN DOUBLES

Johannesburg, South Africa. Wednesday, 6 May 2020. Harmony
Gold Mining Company Limited ("Harmony" or "the Company")
is pleased to report that its operating free cash flow margin for
the nine months ended 31 March 2020 more than doubled to
13% from 6% for the nine months ended 31 March 2019.

This was due largely to a 21.6% increase in the average Rand
gold price received for the period to R704 965/kg. Operating free
cash flow increased by more than 100%, from R1.3 billion to
R3.0 billion.

Total gold production was 8.5% lower at 30 814kg
(or 990 691oz), affected by South Africa's COVID-19 national
lockdown regulations, compliance with which resulted in six
full days of operation lost at the company's nine South African
underground mines at the end of the reporting period, and
loadshedding by Eskom earlier in the quarter.

The average underground recovered grade was 3.6% lower at
5.40g/t, due primarily to the negative impact of Kusasalethu's
previously reported geological challenges and seismicity. Quarter
on quarter, however, Kusasalethu mined above the planned
grade, reporting an increase of approximately 14% to 5.08g/t,
reflecting the positive impact of ongoing remedial actions to
address the afore-mentioned geological challenges and seismicity.

Harmony achieved a recovered grade of 5.68g/t for its
underground operations for the March 2020 quarter. The grade
performance at most of the South African operations was good
with an overall increase of 0.37g/t or 7% quarter on quarter.

Production at Hidden Valley in the March quarter was impacted
by a 14-day mill stoppage in January 2020, due to a fault in
the mill's electronic management system, which has since been
resolved.

For the nine months, Harmony's all-in sustaining unit costs were
14.5% higher at R622 458/kg (8.3% higher at US$1 298/oz) due to
the lower production recorded.

Balance sheet and liquidity

In the nine months, the Company's net debt position increased by
R697 million to R5.0 billion (decreased by US$26 million to
US$280 million), increasing our net debt to EBITDA ratio from
0.7x at the end of December 2019 to only 0.8x at the end of
March 2020.

At the end of the quarter, Harmony had combined cash balances
of R1.65 billion (US$ 92 million). In addition, the Company drew
down approximately R1.8 billion (US$100 million) on its existing
loan facilities shortly after the March 2020 quarter end to ensure
it has sufficient liquidity to see through the disruption caused by
the COVID-19 lockdown period.

In terms of our bank covenants we have to comply with the
following covenants:

- Net debt to EBITDA must be below 2.5
- EBITDA to net interest paid must be above 5
- Tangible Net Worth ("TNW") to net debt must be above 4

Harmony believes the first two covenants will comfortably be
complied with, as the benefit from the higher Rand gold price
supports the Company's EBITDA significantly.

Given the volatility in the financial markets, Harmony is engaging
with its lenders to relax the TNW covenant as a precautionary
measure.

Responsible stewardship

The principles of sustainable development are embedded in our
business strategy and decision-making. Responsible stewardship
is our fourth pillar of our strategy and underpins our operating
philosophy, which is profit with purpose and hinges on
maintaining strong relationships by engaging and collaborating
with stakeholders.

Harmony's response to the COVID-19 pandemic has further
demonstrated the Company's commitment to involving all of
its stakeholders in risk management and the application of
environmental, social and governance practices ("ESG").

Harmony's own COVID-19 Standard Operating Procedure
("SOP") is aimed at ensuring a safe return to work for each of its
employees and meeting the conditions contained in the amended
lockdown regulations published in the South African Government
Gazette on 16 April 2020 for the safe resumption of operations.

It has been informed by guidelines provided by the Department
of Mineral Resources and Energy ("DMRE"), the National
Council for Infectious Diseases ("NCID"), and the World Health
Organisation ("WHO"), and by discussions with our trade unions
and the Minerals Council South Africa. We remain committed
to protecting the health of our employees and ensuring a safe
working environment.

In the nine months to date, the fatal injury frequency rate for the
period remained constant at 0.08. We have, however, seen an
improvement in the lost time injury frequency rates as they relate
to falls of ground and seismicity. During the March 2020 quarter,
Moab Khotsong recorded 2 million and Tshepong Operations
1 million fatality free shifts. These achievements took them 475
and 165 days respectively to achieve.

OPERATING RESULTS

                                                   Nine months      Nine months
                                                         ended            ended           %     March 2020   March 2019            %
                                                    March 2020       March 2019     Variance       Quarter      Quarter      Variance

Gold produced                                kg         30 814           33 673          (8)         9 403       10 314            (9)
                                             oz        990 691        1 082 611          (8)       302 312      331 603            (9)
Underground grade                           g/t           5.40             5.60          (4)          5.68         5.48             4
Gold price received                        R/kg        704 965          579 778          22        754 870      595 814            27
                                         US$/oz          1 470            1 278          15          1 528        1 324            15
Cash operating costs                       R/kg        520 041          438 452         (19)       567 637      457 911           (24)
                                         US$/oz          1 085              966         (12)         1 149        1 017           (13)
Total costs and capital                    R/kg        620 427          539 182         (15)       659 421      569 775           (16)
                                         US$/oz          1 294            1 188          (9)         1 335        1 266            (5)
All-in sustaining costs                    R/kg        622 458          543 432         (15)       660 323      578 785           (14)
                                         US$/oz          1 298            1 198          (8)         1 336        1 286            (4)
Production profit                     R million          5 946            4 813          24          1 836        1 428            29
                                    US$ million            399              341          17            119          102            17
Exchange rate                             R/US$          14.91            14.11           6          15.37        14.00            10

The operational update report has not been reviewed or audited 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.

Papua New Guinea ("PNG") – Wafi-Golpu

Discussions with the PNG Government on securing a special
mining lease for the Wafi-Golpu project were delayed during
2019 by a national court stay order. The order was uplifted
in February 2020, but the resumption of discussions has
been constrained by the COVID-19 pandemic and ongoing
uncertainties regarding the provisions and application to the
project of proposed new PNG mining legislation.

The Prime Minister of PNG has notified Harmony of the
Government's desire to progress permitting discussions on
Wafi-Golpu as one of three priority projects in the country,
and Harmony has indicated its willingness to do so. However,
given the above constraints, it is difficult to estimate what the
permitting timeline for the Wafi-Golpu project will be.

Acquisition of Mponeng and Mine Waste Solutions

On 12 February 2020, the Company announced that it had
agreed to acquire AngloGold Ashanti's South African business,
thereby consolidating Harmony's position as South Africa's
primary gold producer.

The acquisition, which will see Mponeng and Mine Waste
Solutions incorporated into the Harmony portfolio, enhances
Harmony's near-term production by adding annual gold
production of approximately 350 000oz per annum; increases
Harmony's South African reserves by 8.27 million ounces
(excluding Mponeng below infrastructure reserves) and improves
Harmony's portfolio mix between surface and underground
operations.

A natural strategic fit with its existing asset base, the acquisition
of Mponeng and Mine Waste Solutions represents a compelling
opportunity to enhance Harmony's position as a robust
cash-generative gold mining company, particularly at current gold
price levels.

During April 2020, the Competition Commission approved the
transaction. It is anticipated that the transaction will conclude
in the coming months, subject to Section 11 approval from
the Department of Minerals and Energy and other customary
conditions precedent.

US$200 million of the acquisition consideration is
payable on the date of fulfilment of the last of the conditions
precedent, which is expected to be in the coming months.

Harmony is taking proactive steps by seeking authority from
its shareholders to issue ordinary shares for cash (pursuant to a
general authority to issue ordinary shares for cash and/or by way
of a vendor consideration placing), for a maximum aggregate
subscription consideration of up to $200 million. The subscription
proceeds will be used by the Company to fund part of the
consideration payable for the acquisition. In doing so, Harmony
will stand to significantly benefit from balance sheet flexibility
and optionality given the current uncertainty caused by the
COVID-19 pandemic.

Notice to shareholders of the proposed Extraordinary General
Meeting ("EGM") was given to shareholders today in a separate
announcement. The EGM will be held entirely by electronic
communication, on Thursday, 11 June 2020 at 11:00 (SAST) in
order for shareholders to consider and, if deemed fit, pass, with
or without modification, the resolutions set forth in the Notice of
EGM (which forms part of the Circular posted today).

To ensure the transaction is concluded timeously, Harmony is also
in the process of arranging a bridging finance facility in the event
any delays or disruptions are experienced in the equity capital
markets.

FY2020 guidance update

As of the date of this operating update, Harmony's South African
operations had attained an estimated 50% return to operational
capacity permitted in terms of the eased lockdown regulations
pertaining to the mining sector announced by the South African
Government on 16 April 2020. The return to and resumption
of work are in strict compliance with our COVID-19 SOP and
has progressed smoothly. Surface operations and Hidden Valley
continued to operate during the lockdown period. During
April 2020, we managed sales of approximately 1 tonne of gold in
South Africa.

Due to the impact of COVID-19 and the continued uncertainty as
to when our mines will be allowed to return to full production,
we have decided to withdraw our annual production guidance
of 1.4Moz for FY20 as previously provided. Harmony's gold
production for the nine months ended 31 March 2020 was
30 814kg (or 990 681 ounces).

Hedging update

As previously announced, Harmony has restructured its hedge
book and rolled forward some hedging transactions. The
COVID-19 lockdown for the South African mines has resulted in
reduced gold production during the June 2020 quarter and the
restructure was done to better match the hedges to the gold
production profile.

The US$ gold and US$ silver hedges were not restructured as
they relate to the Hidden Valley mine which continued operating
during this time.


HARMONY GOLD HEDGE POSITION AS AT 31 MARCH 2020

                                                FY2020                             FY2021                                   FY2022
                                                    Q4            Q1           Q2           Q3           Q4         Q1        Q2      Q3    TOTAL

Rand Gold
Forward Contracts                     koz           96            80           78           77           71         60        42      14      518
                                 R'000/kg          661           675          682          694          737        802       842     880      719
Dollar Gold
Forward Contracts                     koz           12            12           12           12           12         12        12       5       89
                                   US$/oz        1 370         1 413        1 442        1 489        1 521      1 561     1 606   1 661    1 496
Total Gold                            koz          108            92           90           89           83         72        54      19      607
Currency Hedges
Rand Dollar
Zero Cost Collars                      $m           93            99           98           82           65         47        36      21      541
                                Floor R/$        15.03         15.38        15.43        15.48        15.91      16.32     16.59   17.71    15.66
                                  Cap R/$        16.01         16.47        16.62        16.68        17.28      17.90     18.18   19.35    16.90
Forward Contracts                      $m           52            59           37           29           12          9         9       8      215

                                      R/$        15.57         15.92        15.88        16.20        16.93      18.18     18.41   18.71    16.16
Total Rand Dollar                      $m          145           158          135          111           77         56        45      29      756
Dollar Silver
Zero Cost Collars                      $m          360           360          340          300          270        230        90      10    1 960
                                Floor R/$        17.16         17.47        17.87        18.01        18.17      18.21     17.86   18.40    17.77
                                  Cap R/$        18.57         18.92        19.37        19.50        19.70      19.75     19.44   20.15    19.26

Board approved hedging limits:

25% currency (R/US$) over a 24 month period; 20% gold over a 24 month period; 50% silver over a 24 month period.


Conclusion

There is much about the future that remains unknown, but we
are grateful we mine a commodity from which people continue
to derive confidence in times of turmoil. We will continue to
mine with the safety and health of our employees uppermost, as
productively and cost-effectively as the global recovery from the
pandemic allows.

We have been and continue to be encouraged by the support
we have received from all of our stakeholders for the cautious
journey we have mapped – employees, trade unions, regulators,
investors and communities – and know we will have to call on
their further support, collectively and individually, to manage the
uncertainties lying ahead.


Harmony will host a conference call to address
questions as they relate to its operational performance
for the nine months ended 31 March 2020.

Date: Wednesday, 6 May 2020

Time: 14:00 South African time (US EST: 08:00; UK 13:00;
      Sydney 22:00)

Conference call access:

Participants can register for the conference by navigating to:
http://www.diamondpass.net/4099255

Please note that only registered participants will receive the
dial-in details. These will be supplied upon registration.


OPERATING RESULTS – NINE MONTHS ON NINE MONTHS (RAND/METRIC)

                                                                                                                                            South Africa
                                                                                                    Underground production                                                                     Surface production
                                      Nine                                                                                                                        TOTAL                Central                                          TOTAL
                                      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
Ore milled                 – t'000    Mar-20       1 211         644          171         306          561          445          497        431         192       4 458     4 711        3 005      2 946      1 175      11 837       16 295       2 936        19 231
                                      Mar-19       1 211         763          176         319          578          446          546        458         189       4 686     4 612        2 884      3 249      1 220      11 965       16 651       2 848        19 499
Yield                      – g/tonne  Mar-20        5.10        8.77        10.68        3.87         4.34         4.02         4.83       4.06        4.43        5.40     0.131        0.160      0.363       0.79        0.26         1.67        1.25          1.60
                                      Mar-19        4.94        8.07        10.80        3.50         4.62         4.80         6.64       3.70        4.90        5.60     0.121        0.149      0.350       0.74        0.25         1.76        1.55          1.73
Gold produced              – kg       Mar-20       6 180       5 646        1 827       1 185        2 435        1 789        2 400      1 751         851      24 064       618          480      1 068        924       3 090       27 154       3 660        30 814
                                      Mar-19       5 985       6 156        1 901       1 115        2 673        2 143        3 628      1 694         926      26 221       557          429      1 136        904       3 026       29 247       4 426        33 673
Gold sold                  – kg       Mar-20       6 268       5 875        1 852       1 202        2 492        1 813        2 501      1 775         861      24 639       628          483      1 091        930       3 132       27 771       3 798        31 569
                                      Mar-19       5 910       6 121        1 872       1 143        2 664        2 171        3 687      1 667         917      26 152       552          427      1 127        915       3 021       29 173       4 430        33 603
Gold price received        – R/kg     Mar-20     708 239     711 606      709 628     707 239      714 900      672 331      710 827    676 132     676 473     703 969   685 495      710 725    715 927    709 814     707 208      704 334     709 583       704 965
                                      Mar-19     585 776     565 171      586 755     587 488      589 464      586 967      586 219    586 893     585 347     581 691   568 899      587 417    580 913    587 439     581 614      581 683     567 230       579 778
Gold Revenue               (R'000)    Mar-2    4 439 241   4 180 686    1 314 231     850 101    1 781 530    1 218 936    1 777 779  1 200 135     582 443  17 345 082   430 491      343 280    781 076    660 127   2 214 974   19 560 056   2 694 998    22 255 054
                                      Mar-19   3 461 935   3 459 409    1 098 405     671 499    1 570 331    1 274 305    2 161 391    978 351     536 763  15 212 389   314 032      250 827    654 689    537 507   1 757 055   16 969 444   2 512 827    19 482 271
Cash operating cost        (R'000)    Mar-20   3 314 981   2 529 544      809 489     778 436    1 319 027    1 155 162    2 008 493    984 765     462 693  13 362 590   274 416      172 891    545 883    544 369   1 537 559   14 900 149   1 124 400    16 024 549
(net of by-product credits)           Mar-19   2 991 577   2 368 840      734 150     715 004    1 204 495    1 122 001    1 764 188    914 899     427 880  12 243 034   254 070      163 417    517 656    508 942   1 444 085   13 687 119   1 076 867    14 763 986
Inventory movement         (R'000)    Mar-20      39 407      94 789       12 128       9 667       38 745       15 059       44 068     11 884       5 242     270 989     4 884        1 744      5 092      1 727      13 447      284 436        (109)      284 327
                                      Mar-19     (48 186)    (26 352)     (20 503)     15 102      (10 269)      12 699       24 783    (17 570)     (8 882)    (79 178)   (3 272)        (219)    (5 250)     2 544      (6 197)     (85 375)     (9 150)      (94 525)
Operating costs            (R'000)    Mar-20   3 354 388   2 624 333      821 617     788 103    1 357 772    1 170 221    2 052 561    996 649     467 935  13 633 579   279 300      174 635    550 975    546 096   1 551 006   15 184 585   1 124 291    16 308 876
                                      Mar-19   2 943 391   2 342 488      713 647     730 106    1 194 226    1 134 700    1 788 971    897 329     418 998  12 163 856   250 798      163 198    512 406    511 486   1 437 888   13 601 744   1 067 717    14 669 461
Production profit          (R'000)    Mar-20   1 084 853   1 556 353      492 614      61 998      423 758       48 715     (274 782)   203 486     114 508   3 711 503   151 191      168 645    230 101    114 031     663 968    4 375 471   1 570 707     5 946 178
                                      Mar-19     518 544   1 116 921      384 758     (58 607)     376 105      139 605      372 420     81 022     117 765   3 048 533    63 234       87 629    142 283     26 021     319 167    3 367 700   1 445 110     4 812 810
Capital expenditure        (R'000)    Mar-20     842 486     456 406       42 011     134 700      236 849      282 625      170 902     20 384       6 071   2 192 434     3 210        5 272      1 359     46 023      55 864    2 248 298     845 000     3 093 298
                                      Mar-19     830 211     418 618       46 917     134 225      216 360      227 527      238 760     80 086      30 226   2 222 930     3 495        4 664      6 435     41 391      55 985    2 278 915   1 112 982     3 391 897
Cash operating costs       – R/kg     Mar-20     536 405     448 024      443 070     656 908      541 695      645 703      836 872    562 401     543 705     555 294   444 039      360 190    511 126    589 144     497 592      548 728     307 213       520 041
                                      Mar-19     499 846     384 802      386 191     641 259      450 615      523 566      486 270    540 082     462 073     466 917   456 140      380 925    455 683    562 989     477 226      467 984     243 305       438 452
Cash operating costs       – R/tonne  Mar-20       2 737       3 928        4 734       2 544        2 351        2 596        4 041      2 285       2 410       2 997        58           58        185        463         130          914         383           833
                                      Mar-19       2 470       3 105        4 171       2 241        2 084        2 516        3 231      1 998       2 264       2 613        55           57        159        417         121          822         378           757
Cash operating cost        – R/kg     Mar-20     672 729     528 861      466 065     770 579      638 963      803 682      908 081    574 043     550 839     646 402   449 233      371 173    512 399    638 952     515 671      631 526     538 087       620 427
and capital                           Mar-19     638 561     452 803      410 872     761 640      531 558      629 738      552 080    587 358     494 715     551 694   462 415      391 797    461 348    608 775     495 727      545 903     494 769       539 182
All-in sustaining cost     – R/kg     Mar-20     674 655     523 449      484 252     767 403      631 683      786 269      914 614    592 811     569 317     647 461   449 857      369 068    506 264    652 848     517 322      632 406     549 724       622 458
                                      Mar-19     629 215     458 121      424 890     740 118      531 049      623 679      567 756    604 363     506 850     554 392   460 676      390 770    460 374    622 681     499 750      547 994     513 391       543 432
Operating free cash flow   %          Mar-20           6          29           35         (7)           13          (18)         (23)        16          20          10        36           48         30         11          28           12          21            13
margin(1)                             Mar-19         (10)         19           29        (26)           10           (6)           7         (2)         15           5        18           33         20         (3)         15            6          10             6

(1) Excludes run of mine costs for Kalgold (Mar-20:R0.982m, Mar-19:-R0.760m) and Hidden Valley (Mar-20:-R167.966m, Mar-19:-R70.590m).

The US$/Imperial operational numbers are available on our website: www.harmony.co.za


DIRECTORATE AND ADMINISTRATION

HARMONY GOLD MINING
COMPANY LIMITED

Harmony Gold Mining Company Limited
was incorporated and registered as a public
company in South Africa on 25 August 1950
Registration number: 1950/038232/06


CORPORATE OFFICE

Randfontein Office Park
PO Box 2
Randfontein 1760
South Africa

Corner Main Reef Road and Ward Avenue
Randfontein, 1759
South Africa

Telephone: +27 11 411 2000
Website: www.harmony.co.za


DIRECTORS

PT Motsepe* (chairman)
JM Motloba* (deputy chairman)
M Msimang*^ (lead independent director)
PW Steenkamp (chief executive officer)
B Lekubo (financial director)
F Abbott (executive director)
HE Mashego (executive director)
JA Chissano*#^
FFT De Buck*^
KV Dicks*^
Dr DSS Lushaba*^
HG Motau*^
KT Nondumo*^
VP Pillay*^
GR Sibiya*^
MV Sisulu*^
JL Wetton*^
AJ Wilkens*

* Non-executive
^ Independent
# Mozambican


INVESTOR RELATIONS

E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 2314
Website: www.harmony.co.za


ACTING COMPANY SECRETARIAT

Shela Mohatla
Randfontein Office Park
Corner Main Reef Road and Ward Avenue
Randfontein, 1759
South Africa
(PO Box 2, Randfontein 1760, South Africa)

E-mail: companysecretariat@harmony.co.za


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

Operations Centre, 6201 15th Avenue
Brooklyn, NY11219

E-mail queries: db@astfinancial.com
Toll free (within 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 (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


TRADING SYMBOLS

JSE Limited: HAR
New York Stock Exchange, Inc.: HMY
ISIN: ZAE 000015228


FORWARD LOOKING STATEMENTS

This report 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 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 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, 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; 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 HDSAs 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 and safety, environmental
regulation and business ownership including any interpretation thereof; court decisions affecting
the South African 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 any further downgrade of
South Africa's credit rating; 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.

www.harmony.co.za

Johannesburg
6 May 2020
Date: 06-05-2020 01:00:00
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