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HARMONY GOLD MINING COMPANY LIMITED - Harmony meets its strategic objectives for financial year 2021

Release Date: 07/07/2021 14:18
Code(s): HAR     PDF:  
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Harmony meets its strategic objectives for financial year 2021

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

Harmony meets its strategic objectives for financial year 2021

Johannesburg, Wednesday, 7 July 2021. Peter Steenkamp, chief executive officer
of Harmony Gold Mining Company Limited (“Harmony” and/or “the Company),
reflects on the Company’s past financial year which came to an end on 30 June
2021 (“FY21”).

“While the past financial year will be defined and remembered as a year of
extremes, our consistency and determination has lifted us and given us all a
new sense of hope, compassion and motivation, ensuring that we at Harmony
deliver on what we promised to our stakeholders and shareholders.

Safety and health

From the very beginning of the pandemic, we knew we had to focus on the
well-being, health and safety of our employees and host communities. At the
same time, it was also imperative to steer the company through these
unprecedented times to realise our strategic objectives. I am proud to report
that we did both.

Not only have our comprehensive health and safety operating procedures
resulted in our teams remaining safe, but our commitment to operational
excellence has ensured we remained on track to meet our production guidance
for FY21. These successes do not happen in isolation and it is due to the
unwavering dedication and commitment from our safety and health teams in
ensuring our employees’ wellness, as well as the contribution from each and
every one of our employees, that we maintained our momentum. We trust that
the imbedded COVID-19 preventative and mitigating measures will enable us to
continue producing safe, profitable ounces in the year to come.

The company’s COVID-19 vaccination programme is also currently underway
following the granting of Harmony accreditation to administer the vaccine by
the South African government. Five vaccination sites were certified in
Gauteng, the Free State and North West and the company is doing bulk
registrations for those who wish to receive the vaccine. In PNG an employee
vaccination programme is also being rolled out with support from the National
and Provincial Health Departments.

As we celebrate our successes, it is important to acknowledge and address the
lowlights. Most tragically, was the loss of 9 of our employees’ lives through
safety related incidents, during the course of FY21, while COVID-19 has
claimed 55 of our colleagues lives to date. I send my heartfelt condolences
to each and every family member and friend of our colleagues who are no longer
with us.
As we strive to reach our goal of zero loss of life, we are working day and
night to ensure we continue to prioritise the health and safety of our people
at all times.    We care about our people and we are therefore spending a
significant amount of resources to develop our leaders’ capabilities, ensuring
we achieve our safety objectives. Embedded practices throughout the company
stipulate what is expected of each person, but also challenges unsafe routines
and unsafe habits.      We are running various safety awareness campaigns
throughout the company. Impactful safety days are held, videos are shared on
safe behaviour and we are continuously addressing Harmony’s overall culture.

During the last quarter of FY21, Harmony recorded its third fatality-free
quarter in the history of the company. Thank you to each and every Harmonite
and stakeholder for assisting in achieving this outstanding accomplishment.

Growing quality gold ounces

The successful acquisition and integration of Mponeng and related assets has
been a game changer for Harmony. We have managed to grow our gold ounces and
de-risk our portfolio while expanding our margins and improve our cash flows
well into the future. Not only are we now the largest gold producer in South
Africa by volume, but we have a substantial surface source business with an
exciting pipeline of both brownfield and greenfield opportunities.

Advancing our copper-gold footprint in Papua New Guinea (“PNG”)

In December last year we obtained approval of the Environmental Permit for
our Tier-1 Wafi-Golpu project in PNG, further advancing our copper-gold
aspirations. Discussion with the PNG government as it relates to the special
mining lease recommenced during the fourth quarter of FY21.

Hidden Valley’s mining lease extension was also granted by the PNG government
for a period of 5 years and is valid until March 2030. This will allow for
further cutbacks and mine-extension opportunities at the operation and
highlights our strong stakeholder relations in PNG.

Environmental, Social and Governance factors (“ESG”) entrenched in our

From a sustainability perspective, we hosted our inaugural ESG day in the
fourth quarter of FY21 under the theme of “Who Cares Wins”. This allowed the
management of Harmony to unpack our integrated and risk based sustainable
development strategy, further emphasising our commitment towards sustainable
mining, transparent governance and our people. In addition, the announcement
by the South African President to increase the cap on self-generation to 100MW
was especially positive and will further assist us in optimising and
decarbonising our business through a significant renewable energy programme.

Achieving our annual production guidance

The continual and unwavering commitment to operational excellence has ensured
our mines are hitting their straps, ensuring we deliver on our promises to
each of our stakeholders. As such, Harmony has met its annual gold production
guidance for FY21 by producing between 1.50Moz to 1.55Moz up to 30 June 2021.
In conclusion

As we head into financial year 2022, we will further benefit from the many
opportunities we have created through our acquisitions. Through careful and
strategic capital allocation decisions, we have improved almost all our
metrics both financial and non-financial.

We are confident in our ability to deliver long-term positive shareholder and
stakeholder returns and remain committed to achieving our strategic objective
of safe, profitable ounces.

FY21 was anything but easy, therefore I again thank our over 46,000 employees
who have demonstrated resilience and commitment. I would also like to say
thank you to our many shareholders and stakeholders for the trust you have
placed in us. It is because of this trust that we have a strong foundation on
which to further build our business and continue delivering positive
shareholder returns through sustainable mining for many years to come.
Please stay safe and healthy. We look forward to sharing more detailed
operational and financial information with you as it relates to our FY21
results via a virtual platform on 31 August 2021.”


For more details, contact:

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

Max Manoeli
Investor Relations Manager
+27 (0) 82 759 1775

JSE Sponsor:
JP Morgan Equities South Africa Propriety Limited


This presentation 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 presentation and the exhibits to this
presentation, are necessarily estimates reflecting the best judgment of our
senior management and involve a number of risks and uncertainties that could
cause actual results to differ materially from those suggested by the forward-
looking statements. As a consequence, these forward-looking statements should
be considered in light of various important factors, including those set forth
in our Integrated Annual Report. Important factors that could cause actual
results to differ materially from estimates or projections contained in the
forward-looking statements include, without limitation: overall economic and
business conditions in South Africa, Papua New Guinea, Australia and
elsewhere; impact of COVID-19 on our operational and financial estimates and
results; estimates of future earnings, and the sensitivity of earnings to the
prices of gold and other metals; estimates of future production and sales for
gold and other metals; estimates of future cash costs; estimates of future
cash flows, and the sensitivity of cash flows to the prices of gold and other
metals; estimates of provision for silicosis settlement; estimates of future
tax liabilities under the Carbon Tax Act; 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
Company’s insurance coverage; any further downgrade of South Africa’s credit
rating and socio-economic or political instability in South Africa, Papua New
Guinea and other countries in which we operate.
The foregoing factors and others described under “Risk Factors” in our
Integrated Annual Report ( and our Form 20F should not be
construed as exhaustive. We undertake no obligation to update publicly or
release any revisions to these forward-looking statements to reflect events
or circumstances after the date of this annual report or to reflect the
occurrence of unanticipated events, except as required by law. All subsequent
written or oral forward-looking statements attributable to Harmony or any
person acting on its behalf are qualified by the cautionary statements herein.

Date: 07-07-2021 02:18:00
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