Company announcements

Harmony reports record cash flows; enhances asset base through its growth strategy and declares an interim dividend

February 23, 2021

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Highlights (H1FY21 vs H1FY20)

• In Phase 2 of embedding a proactive safety culture focused on leadership and behaviour
• Our health initiatives combined with the COVID-19 standard operating plans embed our commitment to the “S” (social) in ESG (environmental, social and governance)
• 65% increase in production profit to R6.8bn from R4.1bn
• 5% increase in underground recovered grade to 5.58g/t from 5.29g/t
• 8% increase in gold production to 23 183kg from 21 411kg
• 69% increase in operating free cash flow margin to 22% from 13%
• 336% increase in net profit to R5.8bn from R1.3bn
• 58% reduction in net debt to R580m from R1.4bn
• 31% increase in gold price received to R896 587/kg from R683 158/kg
• R902m net gain on derivatives
• HEPS increased by 211% to 775 SA cents from 249 SA cents
• Net debt to EBITDA at 0.1X
• Interim dividend of 110 SA cents declared

Johannesburg, Tuesday, 23 February 2021. Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) is pleased to report an exceptional performance for the period ended 31 December 2020 (“H1FY21”) in comparison to the six months ended 31 December 2019 (“H1FY20”).

“The exceptional performance achieved during H1FY21 substantiates the growth strategy that we set out to pursue at the beginning of 2016. Through astute acquisitions, we have successfully added quality ounces and de-risked our asset portfolio. Harmony is no longer a marginal gold producer, but an emerging market mining specialist”, said chief executive officer, Peter Steenkamp.

Steenkamp added “we have transformed into a company capable of creating value throughout the cycle. We have optimised our existing portfolio and improved our asset mix and continue to make decisions that benefit all stakeholders. We have acquired assets and lengthened their lives when others no longer saw it fit to do so.”

“All of these actions have resulted in better margins which we have been able to lock in through an effective hedging strategy. These effective business practices have allowed us to create a robust yet flexible balance sheet, with a war chest of available cash and facilities to deploy in both opportune or uncertain times. All this has been done to ensure we deliver positive shareholder returns through sustainable mining practices. We are therefore pleased to declare an interim dividend of 110 SA cents”, concluded Steenkamp.

Please refer to Harmony’s website www.harmony.co.za for the results booklet and results presentation in support of this press release, where the US dollar amounts will be reflected as well.

For more details contact:

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

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

Marian van der Walt
Senior Group Executive: Enterprise Risk and Investor Relations
+27 (0) 82 888 1242

JSE Sponsor:
JP Morgan Equities South Africa Propriety Limited

Harmony Gold Mining Company Limited (Harmony), a world-class gold mining and exploration company, has operations and assets in South Africa and Papua New Guinea (PNG). Harmony has more than 70 years’ experience in the industry. Company assets include one open pit mine and several exploration tenements in PNG, as well as 9 underground mines and 1 open pit operation and several surface sources in South Africa. In addition, Harmony owns 50% of the significant Wafi-Golpu copper-gold project – a tier 1 asset in a joint venture in PNG.

The Company’s primary stock exchange listing is on the JSE with a secondary listing on the New York Stock Exchange. The bulk of our shareholders are in South Africa and the United States. Additional information on the company is available on the corporate website, www.harmony.co.za.