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HARMONY GOLD MINING COMPANY LIMITED - Operational Update for the three months ended 30 September 2020

Release Date: 09/11/2020 14:47:00      Code(s): HAR       PDF(s):  
Operational Update for the three months ended 30 September 2020

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 "Company")

CONSTITUENT OF THE FTSE/JSE AFRICA TOP 40 INDEX


OPERATIONAL UPDATE
for the three months ended 30 September 2020


STRONG OPERATIONAL PERFORMANCE BOOSTS PRODUCTION PROFIT,
INCREASES OPERATING FREE CASH FLOW MARGIN

TOTAL GOLD PRODUCTION INCREASED BY 38%
FREE OPERATING CASH FLOW MARGIN INCREASED BY 20%
NET DEBT TO EBITDA REDUCED FROM 0.8X TO 0.5X NORMALISED(#)

(#)Net debt to EBITDA ratio normalised to exclude the capital raise.


Johannesburg. Monday, 9 November 2020. Harmony Gold Mining Company Limited ("Harmony" or "the Company") is pleased to
report a strong operational performance in the first quarter of financial year 2021 ("FY21").

"A solid operational performance, further aided by the gold price, has significantly strengthened our balance sheet, allowing us to
achieve an operating free cash flow margin of 20%. We are in the process of integrating our newly acquired assets in line with our
growth strategy and believe that we will be able to unlock further value through increased ounces and various surface and service
synergies", said Peter Steenkamp, chief executive officer of Harmony.


OPERATING RESULTS
                                                                                                                               Comparative
                                                                                             Quarter-on-                       quarter-on-
                                                           Quarter             Quarter           quarter           Quarter         quarter*
                                                         September                June          variance         September        variance
                                                              2020                2020                 %              2019               %

Gold produced                                    kg          9 758               7 049                38            11 231             (13)
                                                 oz        313 725             226 632                38           361 085             (13)

Underground grade                               g/t           5.31                5.72                (7)             5.26               1

Gold price received                            R/kg        922 398             875 341                 5           683 572              35
                                             US$/oz          1 698               1 518                12             1 449              17

Cash operating costs                           R/kg        627 830             699 829                10           484 216             (30)
                                             US$/oz          1 156               1 213                 5             1 026             (13)

All-in sustaining costs                        R/kg        728 465             783 336                 7           589 597             (24)
                                             US$/oz          1 341               1 358                 1             1 250              (7)

Production profit                         R million          2 782               1 251               122             2 384              17
                                        US$ million            165                  70               136               162               2

Exchange rate                                 R/US$          16.90               17.94                (6)            14.68              15

*September 2020 quarter and September 2019 quarter comparison.
Quarter-on-quarter operating results tables have been included on pages 4 to 5 (R/metric) and 6 to 7 (US$/imperial).
This operational update is the responsibility of the directors and has not been reviewed or audited by the Company's auditors. Detailed financial and operational results are
provided on a six-monthly basis at the end of December and June.


SAFETY

The Company continues to be vigilant in its management and response to the COVID-19 pandemic at all of its operations and to
adhere to the strict protocols put in place.

Regrettably, three Harmony employees died in work-related incidents during the September 2020 quarter. Harmony has adopted
global best practice safety standards, developed and implemented a four-layered risk management based approach, introduced
modernised safety systems and intensified its focus on leadership development and training to address behaviour.


OPERATIONAL PERFORMANCE

Quarter-on-quarter, production increased by 38% from 7 049kg (226 632oz) to 9 758kg (313 725oz), with a 64% increase in
gold production at the South African underground operations from 4 578kg (147 187oz) in the June 2020 quarter to 7 528kg
(242 029oz) at the end of September 2020. This is mainly as a result of all underground operations resuming work at 100% of
capacity after the COVID-19 lockdown restrictions were lifted.

During the COVID-19 lockdown, Harmony mined higher grade panels, which impacted the quarter-on-quarter performance of the
South African underground operations and resulted in a 7.2% decrease quarter-on-quarter. The September 2020 quarter reflects a
return to a more normalised grade of 5.31g/t, which is more or less in line with the underground recovered grade achieved in the
comparable period in September 2019.

Gold production at Hidden Valley decreased by 19% quarter-on-quarter to 983kg (31 604oz) from 1 212kg (38 967oz). Production
was impacted by a planned major shut down of the processing plant as well as a result of lower mined grade as the mine
transitioned between various stages of the open pit. The key focus in FY21 will be to safely mine the current cutback to produce
between 172 300 to 177 700 ounces, while starting the next planned pushback of the main Hidden Valley pit.

Operational excellence boosts production

For the full version of Harmony's operational performance, please go to 
https://www.harmony.co.za/downloads/send/167-q1-fy2021/3656-operational-update-for-the-three-months-ended-september-2020

All-in sustaining costs ("AISC") were 7% lower at R728 465/kg (US$1 341/oz) compared to R783 336/kg (US$1 358/oz) in the
previous quarter, due to higher production.

Harmony's operating free cash flow almost tripled quarter-on-quarter to R1.8 billion, compared to R603 million in the previous
quarter, due to higher production and a 5.4% increase in the R/kg price of R922 398/kg (US$1 698/oz, 12% higher) quarter-on-
quarter. The Company's operating free cash flow margin doubled in the same period, from 10% to 20%.


BALANCE SHEET AND LIQUIDITY

Stronger production cash flows enabled us to reduce our net debt to EBITDA ratio from normalised 0.8x in June 2020 to 0.5x by
quarter end. Before normalising for the equity placement, the ratio stood at 0.2x at 30 June 2020. Net debt at 30 September 2020
was at R3.25 billion (US$194 million) after paying for the newly acquired assets.

In June 2020, Harmony raised US$200 million (R3 466 million) by way of a share placement to fund the US$200 million cash portion
of the consideration price relating to the acquisition of the Mponeng mine and Mine Waste Solutions. The cash from the placement,
combined with the cash generated by the operations, resulted in net debt of R1 361 million (US$79 million) as at the end of June
2020. The inclusion of the newly acquired assets will increase our future EBITDA meaningfully.

With current favourable market prices and current levels of production prevailing, we expect to be in a net cash position by the end
of March 2021.


INTEGRATION OF MPONENG MINE, MINE WASTE SOLUTIONS AND RELATED ASSETS

Harmony assumed full ownership of Mponeng mine, Mine Waste Solutions and related assets on 1 October 2020. Integration
of these assets is currently under way. We expect cash flows to be boosted, as we unlock value through potential synergies with
existing surface and service infrastructure, as well as adding quality replacement ounces to the Company's reserves and resources.

Harmony will provide an update to its current market guidance of producing between 1.26Moz and 1.3Moz at an all-in sustaining
cost of R690 000/kg to R710 000/kg at the Company's half year results in February 2021.


WAFI-GOLPU ("THE PROJECT")

Harmony, together with its Wafi-Golpu Joint Venture partner Newcrest Mining Limited, looks forward to re-engaging with the State
of Papua New Guinea (PNG) and progressing discussions on the Special Mining Lease for the Wafi-Golpu Project.

With regard to the permitting of the Project under the Environment Act of 2000, we are awaiting a decision by the Minister for
Environment, Conservation and Climate Change regarding the assessment of the Environment Impact Statement for the Project.
Harmony considers Deep Sea Tailings Placement to be the safest and most environmentally and socially responsible tailings
management solution for the Project for the duration of its operations and beyond mine closure, which conclusion is supported by
industry leading scientific studies and extensive data gathered by over four years of oceanographic investigations.

We continue to engage with all stakeholders concerned to ensure that we agree on the safest and most environmentally and socially
responsible tailings management solution for Wafi-Golpu.


HEDGING

Harmony completed additional hedging to cover the newly acquired ounces at prices in excess of R1 million per kilogram, increasing
the average forward Rand gold price on the hedge book from R743 000/kg in the previous quarter, to R846 000/kg in the
September 2020 quarter. Our commodity price and exchange rate hedging derivative strategy and programme is implemented for a
limited portion of production and foreign exchange. The programme is intended to reduce Harmony's exposure to a strengthening
rand/US dollar exchange rate and lower commodity prices. These programmes are topped up as and when opportunities arise to
lock-in attractive margins for the business.

Harmony's hedge position as at 30 September 2020:

                                                  FY2021                                FY2022                   FY2023
                                        Q2         Q3         Q4         Q1         Q2         Q3         Q4         Q1      TOTAL

Rand gold
Forward contracts           koz         95         94         80         73         64         52         42         23        523
                       R'000/kg        712        724        772        847        921      1 021      1 077      1 117        846
Dollar gold
Forward contracts           koz         12         12         12         12         12         11         10          3         84
                         US$/oz      1 442      1 489      1 521      1 561      1 606      1 723      1 802      1 921      1 597
Total gold                  koz        107        106         92         85         76         63         52         26        607
Currency hedges
Rand dollar
Zero cost collars            $m        115         99         65         47         42         27          -          -        394
                      Floor R/$      15.40      15.44      15.91      16.32      16.93      17.99          -          -      15.94
                        Cap R/$      16.58      16.62      17.28      17.90      18.54      19.65          -          -      17.28
Forward contracts            $m         44         35         12          9          9          8          -          -        118
                            R/$      15.82      16.13      16.93      18.18      18.41      18.71          -          -      16.68
Total rand dollar            $m        159        134         77         56         51         35          -          -        512
Dollar silver
Zero cost collars            $m        375        375        375        365        335        315        285        125      2 550
                      Floor R/$      18.07      18.29      18.42      18.61      19.52      20.05      20.32      22.69      19.16
                        Cap R/$      19.60      19.84      20.02      20.26      21.35      22.05      22.49      24.89      20.91


HARMONY'S ANNUAL REPORTS

Harmony's suite of annual reports, including its annual report filed on a Form 20F with the United States' Securities and Exchange
Commission for the financial year ended 30 June 2020 are available on the website (www.harmony.co.za/invest).


OPERATING RESULTS - QUARTER-ON-QUARTER (RAND/METRIC)

                                                                                                                                               SOUTH AFRICA
                                                                                        UNDERGROUND PRODUCTION                                                                              SURFACE PRODUCTION
                                                                                                                                                                                Central
                               Three                                                                                                                       TOTAL                  plant                                            TOTAL
                              months     Tshepong       Moab                                                           Kusa-                              UNDER-               reclama-                               TOTAL        SOUTH       Hidden      TOTAL
                               ended   Operations   Khotsong    Bambanani        Joel     Doornkop    Target 1       salethu    Masimong      Unisel      GROUND    Phoenix        tion      Dumps      Kalgold     SURFACE       AFRICA       Valley    HARMONY
Ore milled        - t'000     Sep-20          344        213           58          84          224         139           195         114          46       1 417      1 547       1 008      1 196          381       4 132        5 549          843      6 392
                              Jun-20          206        102           29          43          120          98           118          58          27         801      1 516       1 015      1 530          366       4 427        5 228          970      6 198
Yield             - g/tonne   Sep-20         4.64       8.29         8.95        3.86         4.39        4.22          5.65        3.91        4.48        5.31      0.132       0.140      0.477         0.87        0.30         1.58         1.17       1.53
                              Jun-20         5.40       9.27        10.52        4.79         4.66        4.64          5.21        4.28        4.85        5.72      0.132       0.143      0.448         0.63        0.28         1.12         1.25       1.14
Gold produced     - kg        Sep-20        1 595      1 766          519         324          984         587         1 101         446         206       7 528        204         141        570          332       1 247        8 775          983      9 758
                              Jun-20        1 113        946          305         206          559         455           615         248         131       4 578        200         145        685          229       1 259        5 837        1 212      7 049
Gold sold         - kg        Sep-20        1 552      1 704          505         315          931         595         1 051         434         200       7 287        203         141        547          325       1 216        8 503        1 058      9 561
                              Jun-20        1 131        924          310         210          546         424           584         252         133       4 514        195         142        689          221       1 247        5 761        1 151      6 912
Gold price        - R/kg      Sep-20      927 352    929 144      928 943     928 479      924 352     929 661       918 190     812 129     927 125     919 545    847 729     927 191    924 612      929 911     913 493      918 680      952 278    922 398
received                      Jun-20      895 500    895 026      893 358     891 343      895 081     720 118       881 589     797 992     738 165     866 659    813 344     880 141    881 032      880 222     870 202      867 426      914 960    875 341
Gold revenue      (R'000)     Sep-20    1 439 251  1 583 261      469 116     292 471      860 572     553 148       965 018     352 464     185 425   6 700 726    172 089     130 734    505 763      302 221   1 110 807    7 811 533    1 007 510  8 819 043
                              Jun-20    1 012 810    827 004      276 941     187 182      488 714     305 330       514 848     201 094      98 176   3 912 099    158 602     124 980    607 031      194 529   1 085 142    4 997 241    1 053 119  6 050 360
Cash operating    (R'000)     Sep-20    1 281 309    978 613      303 233     284 065      532 743     428 045       793 095     344 372     141 391   5 086 866    101 192      73 058    257 932      210 766     642 948    5 729 814      396 552  6 126 366
cost (net of by-              Jun-20      936 967    752 960      215 193     220 335      380 464     349 770       553 599     256 223     110 082   3 775 593     88 753      60 733    307 464      129 234     586 184    4 361 777      571 319  4 933 096
product credits)
Inventory         (R'000)     Sep-20      (31 430)   (12 932)     (11 837)     (6 947)     (29 305)       (695)      (33 343)    (10 568)     (4 411)   (141 468)    (1 659)       (658)    (9 517)      (6 495)    (18 329)    (159 797)      70 799    (88 998)
movement                      Jun-20        6 884    (33 782)       3 317       1 598       (8 084)    (20 813)      (29 014)      5 204       2 261     (72 429)    (2 162)       (929)     2 224       (3 561)     (4 428)     (76 857)     (56 456)  (133 313)
Operating costs   (R'000)     Sep-20    1 249 879    965 681      291 396     277 118      503 438     427 350       759 752     333 804     136 980   4 945 398     99 533      72 400    248 415      204 271     624 619    5 570 017      467 351  6 037 368
                              Jun-20      943 851    719 178      218 510     221 933      372 380     328 957       524 585     261 427     112 343   3 703 164     86 591      59 804    309 688      125 673     581 756    4 284 920      514 863  4 799 783
Production        (R'000)     Sep-20      189 372    617 580      177 720      15 353      357 134     125 798       205 266      18 660      48 445   1 755 328     72 556      58 334    257 348       97 950     486 188    2 241 516      540 159  2 781 675
profit                        Jun-20       68 959    107 826       58 431     (34 751)     116 334     (23 627)       (9 737)    (60 333)    (14 167)    208 935     72 011      65 176    297 343       68 856     503 386      712 321      538 256  1 250 577
Capital           (R'000)     Sep-20      167 516    112 948       13 302      34 295       84 165      83 606        28 823       2 779           -     527 434          -       2 978      5 170       29 297      37 445      564 879      228 187    793 066
expenditure                   Jun-20       87 194     41 222        7 869      16 193       43 845      64 208        17 482       3 393       1 416     282 822      3 673       6 603        401       52 575      63 252      346 074      114 141    460 215
Cash operating    - R/kg      Sep-20      803 329    554 141      584 264     876 744      541 405     729 208       720 341     772 135     686 364     675 726    496 039     518 142    452 512      634 837     515 596      652 970      403 410    627 830
costs                         Jun-20      841 839    795 941      705 551   1 069 587      680 615     768 725       900 161   1 033 157     840 321     824 725    443 765     418 848    448 853      564 341     465 595      747 263      471 385    699 829
Cash operating    - R/tonne   Sep-20        3 725      4 594        5 228       3 382        2 378       3 079         4 067       3 021       3 074       3 590         65          72        216          553         156        1 033          470        958
costs                         Jun-20        4 548      7 382        7 420       5 124        3 171       3 569         4 692       4 418       4 077       4 714         59          60        201          353         132          834          589        796
Cash operating    - R/kg      Sep-20      908 354    618 098      609 894     982 593      626 939     871 637       746 520     778 365     686 364     745 789    496 039     539 262    461 582      723 081     545 624      717 344      635 543    709 104
cost and Capital              Jun-20      920 181    839 516      731 351   1 148 194      759 050     909 842       928 587   1 046 839     851 130     886 504    462 130     464 386    449 438      793 926     515 835      806 553      565 561    765 117
All-in sustaining - R/kg      Sep-20      928 984    639 717      628 283   1 013 547      603 082     842 757       771 949     812 287     719 524     760 131    490 310     534 596    463 592      742 288     550 773      729 854      717 309    728 465
cost                          Jun-20      926 827    843 486      754 418   1 167 919      728 268     948 751       959 197   1 100 184     898 648     900 221    467 077     459 484    450 057      847 586     524 244      818 924      605 280    783 336
Operating free    %           Sep-20         (1%)        31%          33%         (9%)         28%          8%           15%          2%         24%         16%        41%         42%        48%          21%         39%          19%          28%        20%
cash flow                     Jun-20         (1%)         4%          19%        (26%)         13%        (36%)         (11%)      (29%)        (14%)        (4%)       42%         46%        49%           7%         40%           6%          30%        10%
margin(1)

(1)Excludes run of mine costs for Kalgold (Sep-20:R0.644m, Jun-20:R0.222m) and Hidden Valley (Sep-20:-R95.73m, Jun-20:-R54.45m).


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

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

* Non-executive
** Executive
^ Independent
# Mozambican


INVESTOR RELATIONS

E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 2314 or
           +27 82 759 1775
Website: www.harmony.co.za


GROUP COMPANY SECRETARY

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

JSE Investor Services (Pty) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House,
Ameshoff Street, Braamfontein
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 861 546 572
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,
NY 11219, United States
E-mail queries: db@astfinancial.com
Toll free (within the US): +1-886-249-2593
Int: +1 718 921 8137
Fax: +1 718 921 8334
*ADR: American Depositary Receipts


SPONSOR

JP Morgan Equities South Africa (Pty) 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

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 to this report, are necessarily estimates reflecting the
best judgement 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
  (including as a result of the coronavirus disease ("Covid-19") pandemic)
- 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 and the spread of other contagious diseases, such as Covid-19
- 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
- The occurrence of hazards associated with underground and surface gold mining
- The occurrence of labour disruptions related to industrial action or health and safety incidents
- Power cost increases as well as power stoppages, fluctuations and usage constraints
- Supply chain shortages and increases in the prices of production imports and the availability, terms and
  deployment of capital
- Our ability to hire and retain senior management, sufficiently technically-skilled employees, as well as our
  ability to achieve sufficient representation of historically disadvantaged persons in management positions
- Our ability to comply with requirements that we operate in a sustainable manner and provide benefits to
  affected communities
- Potential liabilities related to occupational health diseases
- Changes in government regulation and the political environment, particularly tax and royalties, mining
  rights, health, safety, environmental regulation and business ownership including any interpretation thereof;
  court decisions affecting the mining industry, including, without limitation, regarding the interpretation of
  mining rights
- Our ability to protect our information technology and communication systems and the personal data
  we retain
- Risks related to the failure of internal controls
- The outcome of pending or future litigation or regulatory proceedings
- Fluctuations in exchange rates and currency devaluations and other macroeconomic monetary policies
- The adequacy of the Group's insurance coverage
- Any further downgrade of South Africa's credit rating
- Socio-economic or political instability in South Africa, Papua New Guinea 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 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. The forward-looking financial information has not been
reviewed and reported on by the Company's auditors.

Johannesburg
9 November 2020

Date: 09-11-2020 02:47:00
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