UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6­K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a­16 OR 15d­16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For September 15, 2020

Harmony Gold Mining Company Limited

Randfontein Office Park
Corner Main Reef Road and Ward Avenue Randfontein, 1759
South Africa
(Address of principal executive offices)
*-­
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20­ F or Form 40­F.)

Form 20F ☒ Form 40F ☐

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3­2(b) under the Securities Exchange Act of 1934.)

Yes ☐ No ☒


 




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*
FY20 RESULTS for the year ended 30 June 2020
Note: these results are provisional and Harmony's full and final annual results will be available towards the end of October 2020.
HIGHLIGHTS – FINANCIAL YEAR 2020 ("FY20") VS FINANCIAL YEAR 2019 ("FY19")
Responsible
stewardship
Operational
excellence
Cash
certainty
Effective capital allocation
• Agile COVID-19 response and measures implemented embed our commitment to the “S” in ESG**
• Improved scores as a FTSE4Good constituent for 2020
• Included in the Bloomberg Gender Equality Index (GEI) 2020 for a second consecutive year
• 9% increase in production profit
• Higher underground recovered grade of 5.72g/t mined in Q4 of FY20
• Better than expected production performance in Q4 of FY20
• 85% increase in operating free cash flow margin
• 25.4% increase in gold price received
• Successful capital raise for the Mponeng and Mine Waste Solutions acquisition
• Pipeline of organic projects

* As from 18 September 2020
**ESG = Environmental, Social and Governance
OPERATING RESULTS
 
12 months
ended
30 June 2020

12 months
ended
30 June 2019

%
Change

Gold produced
kg
37 863

44 734

(15
)
oz
1 217 323

1 438 231

(15
)
Underground grade
g/t
5.45

5.59

(3
)
Gold price received
R/kg
735 569

586 653

25

US$/oz
1 461

1 287

14

Cash operating costs
R/kg
553 513

439 722

(26
)
US$/oz
1 099

965

(14
)
Total costs and capital
R/kg
647 364

544 487

(19
)
US$/oz
1 286

1 194

(8
)
All-in sustaining costs
R/kg
651 356

550 005

(18
)
US$/oz
1 293

1 207

(7
)
Production profit
R million
7 197

6 588

9

US$ million
459

465

(1
)
Exchange rate
R:US$
15.66

14.18

10

FINANCIAL RESULTS
 
 
12 months
ended
30 June 2020

12 months
ended
30 June 2019

%
Change

Basic loss per share
SA cents
(164
)
(498
)
67

US cents
(10
)
(35
)
71

Headline earnings/(loss)
R million
(828
)
1 067

(178
)
US$ million
(53
)
75

(171
)
Headline earnings/(loss) per share
SA cents
(154
)
204

(175
)
US cents
(10
)
14

(171
)
Please refer to our website for the full results presentation: https://www.harmony.co.za/invest/presentations/2020



CONTENTS
PAGE
2
Shareholder information
3
Forward-looking statements
3
Competent person's declaration
4
Message from the chief executive officer
8
Summary update of Harmony's mineral resources and mineral reserves
12
Operating results – year on year (Rand/Metric)
14
Operating results – year on year (US$/Imperial)
16
Review report from external auditor
17
Condensed consolidated income statement (Rand)
18
Condensed consolidated statement of comprehensive income (Rand)
18
Condensed consolidated statement of changes in equity (Rand)
19
Condensed consolidated balance sheet (Rand)
20
Condensed consolidated cash flow statement (Rand)
21
Notes to the condensed consolidated financial statements
44
Segment report (Rand/Metric)
45
Condensed consolidated income statement (US$)
46
Condensed consolidated statement of comprehensive income (US$)
46
Condensed consolidated statement of changes in equity (US$)
47
Condensed consolidated balance sheet (US$)
48
Condensed consolidated cash flow statement (US$)
49
Segment report (US$/Imperial)
50
Development results – Metric and Imperial
IBC
Directorate and administration
 
SHAREHOLDER INFORMATION
Issued ordinary share capital 30 June 2020
603 142 706

Issued ordinary share capital 30 June 2019
539 841 195

MARKET CAPITALISATION
As at 30 June 2020 (ZARm)
43 342

As at 30 June 2020 (US$m)
2 494

As at 30 June 2019 (ZARm)
17 135

As at 30 June 2019 (US$m)
1 215

HARMONY ORDINARY SHARES AND ADR PRICES
12-month high (1 July 2019 – 30 June 2020)
for ordinary shares (ZAR)
73.69

12-month low (1 July 2019 – 30 June 2020)
for ordinary shares (ZAR)
30.31

12-month high (1 July 2019 – 30 June 2020)
for ADRs (US$)
4.21

12-month low (1 July 2019 – 30 June 2020)
for ADRs (US$)
1.93

FREE FLOAT
85
%
American Depositary Receipt ("ADR") RATIO
1:1

JSE LIMITED
HAR

Range for the year
(1 July 2019 – 30 June 2020 closing prices)
R30.31 – R73.69

Average daily volume for the year
(1 July 2019 – 30 June 2020)
3 203 868

Range for the previous year
(1 July 2018 – 30 June 2019 closing prices)
R21.14 – R31.74

Average daily volume for the year
(1 July 2018 – 30 June 2019)
1 954 268

NEW YORK STOCK EXCHANGE
HMY

Range for the year
(1 July 2019 – 30 June 2020 closing prices)
US$1.93 – US$4.21

Average daily volume for the year
(1 July 2019 – 30 June 2020)
7 937 641

Range for the previous year
(1 July 2018 – 30 June 2019 closing prices)
US$1.62 – US$2.27

Average daily volume for the year
(1 July 2018 – 30 June 2019)
3 715 154

INVESTORS' CALENDAR
Annual General Meeting
20 November 2020

Post year-end: Included in the FTSE/JSE Africa TOP 40 Index

2


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 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" or "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; 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 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; 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.

COMPETENT PERSON'S DECLARATION
Harmony Gold Mining Company Limited’s statement of mineral resources and mineral reserves as at 30 June 2020 is produced in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves ("SAMREC"). It should be noted that the mineral resources are reported inclusive of the mineral reserves.
In South Africa, Harmony employs an ore reserve manager at each of its operations who takes responsibility as competent person for the compilation and reporting of mineral resources and mineral reserves at their operations. In Papua New Guinea, competent persons are appointed for the mineral resources and mineral reserves for specific projects and operations.
The mineral resources and mineral reserves in this report are based on information compiled by the following competent persons:
Mineral resources and mineral reserves of South Africa:
Jaco Boshoff, BSc (Hons), MSc, MBA, Pr.Sci.Nat, MSAIMM, MGSSA, who has 25 years’ relevant experience and is registered with the South African Council for Natural Scientific Professions ("SACNASP"), a member of the South African Institute of Mining and Metallurgy ("SAIMM") and a member of the Geological Society of South Africa ("GSSA").
Mr Boshoff is Harmony's Lead Competent Person.
 
Jaco Boshoff
 
Physical address:
Postal address:
Randfontein Office Park
Corner of Main Reef Road and Ward Avenue
Randfontein
South Africa
PO Box 2
Randfontein
1760
South Africa
Mineral resources and mineral reserves of Papua New Guinea:
Gregory Job, BSc, MSc, who has 31 years’ relevant experience and is a member of the Australian Institute of Mining and Metallurgy (AusIMM).
Greg Job
 
Physical address:
Postal address:
Level 2, 189 Coronation Drive
Milton, Queensland
4064
Australia
PO Box 1562
Milton, Queensland
4064
Australia
Both these competent persons, who are full-time employees of Harmony, consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

3


MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
OVERVIEW
Harmony continues to make good progress in executing its strategy of producing safe, profitable ounces and increasing margins. Our drive for safe ounces was never more applicable than in the last quarter of the financial year as we faced the challenge of managing and mitigating the risks presented by the COVID-19 pandemic. Despite the impact of the South African lockdown and phased re-start of mining in the country, we are pleased to report higher than anticipated production and substantial delivery against our strategy in the last quarter of the year.
COVID-19 PANDEMIC
Harmony’s response to COVID-19 demonstrated once again our ability to respond quickly to challenging issues; in this case, protecting the lives and livelihoods of our employees, ensuring the continued viability of our business, and contributing to the wellbeing of the communities around us and of the countries in which we operate.
The risks were considerable. We employ tens of thousands of people, travelling to and from work together, working together both underground and on surface, and interacting with the communities around us and further afield.
However, we engaged with and rapidly began implementation of both national and international preventive guidelines, in consultation with all of our stakeholders. We conducted a thorough risk assessment and by the time we could start the phased recall of employees from lockdown in South Africa, our own COVID-19 Standard Operating Procedure ("SOP") was in place.
Key elements of the SOP, augmented in South Africa by the Department of Minerals and Energy’s Code of Practice, are:
Ongoing preventive measures
Continuing risk assessment of workplaces and monitoring of vulnerable employees
Screening, testing, tracing, isolation, quarantine, reporting and management of cases
Collaboration regionally with our peer companies and public health authorities
In Papua New Guinea, Harmony South East Asia has been guided both by the SOP and its own COVID-19 Emergency Business Continuity Plan.
There is no doubt that our ability to continue work during lockdown at Hidden Valley in Papua New Guinea and at our South African surface operations, our preparedness for resuming work in terms of the "new normal" at our underground operations in South Africa, together with the high level of co-operation received from our employees, unions and other stakeholders, meant that production in the fourth quarter of FY20 was better than anticipated. By the end of August 2020, most of our employees, including those from neighbouring Southern African countries, were back at work.
It is pleasing that, notwithstanding the challenges described above, we have also been able to deliver into the "S" of the Environmental, Social and Governance ("ESG") criteria during this time of crisis, bringing emergency help and support in various forms to families most in need in our neighbouring communities, both in South Africa and Papua New Guinea.
As at 10 September 2020, 4.1% of our workforce tested positive for COVID-19, with 94% already recovered and 61 active cases.
With family, friends and colleagues, we mourn the loss of 29 employees to the pandemic. We continue to urge all of our employees, their families and communities to remain vigilant.
For more details, refer to Harmony’s COVID-19 portal: www.harmony.co.za/responsibility/covid-19.
SAFETY
Harmony remains determined to eradicate all mining-related fatalities and injuries at its operations. No person should lose their life or be hurt while at work. We continue to address specific causes of work-related events resulting in injury and death, focusing on improving our safety in general and embedding a proactive safety culture.
Sadly, we report six fatalities in the financial year ended 30 June 2020. Our colleagues who died in mining-related incidents were: Siyabonga Ntika (rock drill operator), John Thabang Mamogale (metallurgical assistant), Elphas Nkosi (supervisor), Tshepang Lebajoa (loco operator), Sibusiso Mngomezulu (winch operator) and Papa Ernest Dael (development team member). We extend our heartfelt condolences to their families, friends and colleagues.
Our overall safety performance improved in FY20, with the group fatality injury rate improving to 0.08 (FY19: 0.12). Frequency rates are measured per million hours worked. Although we saw a decrease in the number of lost-time injuries year on year, our group lost-time injury frequency rate deteriorated slightly from 6.16 per million hours worked in FY19, to 6.33 per million hours worked in FY20. Across our operations, we are reinforcing the key elements of our safety strategy – leadership, risk management and attainment of a pro-active safety culture, our aim being the elimination of fatalities.
Testimony to the progress that we have made in our safety journey, is the number of operations which recorded exceptional safety achievements. During FY20, Hidden Valley, Moab Khotsong, Target 1 and Harmony One Plant recorded 2 million fatality-free shifts, Tshepong Operations and Joel recorded 1 million fatality-free shifts.
YEAR-ON-YEAR FINANCIAL RESULTS
Revenue
Revenue increased by R2 333 million or 9% to R29 245 million, mainly due to the higher gold price received. The average gold price received increased by 25% to R735 569/kg from R586 653/kg in FY19. In US dollar terms revenue decreased by US$31 million or 2% to US$1 867 million. The average gold price received increased by 14% to US$1 461/oz from US$1 287/oz in FY19.

4


Production costs
Production costs increased by R1 724 million or 8% to R22 048 million during FY20 mainly due to annual labour and electricity rate increases in South Africa. In US dollar terms production costs decreased by US$24 million or 2% to US$1 409 million mainly due to the exchange rate.
Depreciation
Amortisation and depreciation decreased by R546 million or 13% to R3 508 million for FY20 mainly due to the impact that the South African national lockdown had on production levels. In US dollar terms amortisation and depreciation decreased by US$62 million or 22% to US$224 million for FY20.
Other operating expenses
Other operating expenses for FY20 includes an unrealised foreign exchange translation loss on the US dollar borrowings of R967 million (US$62 million) compared to a R99 million (US$7 million) loss in the comparative period. The foreign exchange translation loss is mainly as a result of the weakening of the US dollar:Rand exchange rate during the year.
Net loss
Harmony’s net loss decreased to R850 million (US$56 million) in FY20, compared to a loss of R2 607 million (US$185 million) the previous year. The headline loss decreased to 154 SA cents per share (10 US cents) compared with headline earnings of 204 SA cents (14 US cents) per share for FY19.
Net debt
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 from AngloGold Ashanti Limited. The cash from the placement, combined with the cash generated by the operations, resulted in net debt decreasing by R3 561 million (US$227 million) to R1 361 million (US$79 million) as at the end of June 2020.
Derivatives and hedging
Harmony continues to enjoy favourable commodity and foreign exchange pricing on the unhedged portion of its exposure, while simultaneously locking in the current higher prices as part of its derivative programme. Since the inception of the derivative programmes in FY16, these programmes have realised net gains of R2 168 million (US$183 million).
The South African COVID-19 lockdown resulted in reduced gold production during the June 2020 quarter. As a result, we restructured the derivative programme and rolled forward some transactions, which assisted in matching the derivatives to the changed gold production profile during the lockdown. The US dollar gold and US dollar silver derivatives were not restructured as they relate to the Hidden Valley mine which continued operating during this time.
The weakening of the rand against the US dollar during the 12 months under review negatively impacted on the valuation of the foreign exchange derivatives. The increase in the gold price – both in US dollar and in rand terms – negatively impacted on the valuation of the gold derivatives. Derivatives recorded a net realised negative cash flow of R1 778 million (US$114 million) in FY20, principally due to a R1 492 million (US$95 million) negative cash flow on R/gold derivatives. Refer to note 11 for details of our derivative programme.
OPERATIONAL RESULTS – FY20 COMPARED TO FY19
Year on year, total annual gold production was 15% lower at 37 863kg, or 1.2Moz, mainly due to the impact of electricity constraints during the third quarter of FY20, the COVID-19 national lockdown and the phased recovery in South Africa in the fourth quarter of FY20. The average underground recovered grade was almost 3% lower at 5.45g/t (FY19: 5.59g/t) with the decrease attributed to the impact of remedial actions to address geological challenges and seismicity at Kusasalethu.
Our approach to produce the maximum amount of ounces in a safe and responsible manner during the lockdown, was to prioritise panels to be mined applying the following criteria: grade, face length and strike distance. This resulted in higher recovered underground grade of 5.72g/t being mined during the last quarter of FY20, which exceeds our FY20 revised grade guidance of approximately 5.50g/t to 5.57g/t.
All development was stopped in April 2020 and development crews only returned to the mines during June 2020. Priority has been given to critical development ends that will create mineable face length to ensure flexibility in the short term.
Year on year, surface operations posted a 4% improvement in grade to 0.267g/t (FY19: 0.257g/t). Hidden Valley’s recovered grade decreased to 1.25g/t at year-end from 1.60g/t in FY19 principally due to its transition from Stage 5 to Stage 6 in mining the pit.
In the last quarter, several cost-saving initiatives were implemented to reduce expenditure on both cash cost and capital. Lower year-on-year production resulted in an 18% increase in production all-in sustaining costs to R651 356/kg (FY19: R550 005/kg). In US dollar terms, all-in sustaining costs increased by only 7% to US$1 293/oz (FY19: US$1 207) as the Company benefited from a weaker average rand exchange rate against the US dollar in FY20.
Total capital expenditure for FY20 decreased by 24% to R3 553 million (FY19: R4 687 million) due to the lockdown imposed on South African operations, as well as cost saving measures implemented during this period.
The gold price had rallied to an all-time high following the global economic fallout around COVID-19 and ongoing geopolitical uncertainty, reflecting its safe-haven status with investors. The average gold price received for FY20 was 25% higher at R735 569/kg (FY19: R586 653/kg) (in dollar terms, the gold price increased by 14% from US$1 287/oz to US$1 461/oz), resulting in strong operating cash flows year on year. The operating free cash flow margin for FY20 doubled from 7% in FY19 to 13% in FY20.


5


MINERAL RESOURCES AND RESERVES
The Company’s attributable gold and gold equivalent mineral resources are declared as 118.6Moz as at 30 June 2020, a 1.12% increase year on year from the 117.3Moz declared as at 30 June 2019.
The total gold contained in the mineral resources at the South African operations represents 62% of the company’s total, with the Papua New Guinea operations representing 38% of Harmony’s total gold and gold equivalent mineral resources as at 30 June 2020.
Harmony’s attributable gold and gold equivalent mineral reserves amount to 36.5Moz, a 0.1% increase from the 36.45Moz declared at 30 June 2019. The gold reserve ounces in South Africa represent 48%, while the Papua New Guinea gold and gold equivalent ounces represent 52% of Harmony’s total mineral reserves as at 30 June 2020.
See page 8 for our mineral resources and mineral reserves statement.
MARKET CAPITALISATION STRENGTHENED
During the June 2020 quarter the share price rallied sharply, closing 82% higher at R71.86 compared to R39.55 at the end of March 2020 – largely due to the COVID-19 impact on global markets, driving investors to return to gold as a safe haven. Harmony’s market capitalisation increased to R43.3 billion (US$2.5 billion) at 30 June 2020 from R17.1 billion (US$1.2 billion) on 30 June 2019.
Harmony’s share price increased by 316% as from 18 January 2016 to the end of FY20 – testimony that the company was well positioned to benefit from a higher gold price.
GROWING OUR OUNCES
Update on acquisition of Mponeng and Mine Waste Solutions
Harmony’s intention to acquire the last of AngloGold Ashanti’s assets in South Africa was announced in February 2020.
The transaction, 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 a year and increases the group’s South African reserves by 8.04 million ounces (December 2019 number, excluding Mponeng below infrastructure reserves).
Harmony will pay US$200 million in cash on completion of the Acquisition (the "Acquisition Consideration"). Furthermore, Harmony has agreed to pay to AngloGold Ashanti:
A contingent consideration of US$260 per ounce on underground gold production from the Mponeng, Savuka and TauTona mines that exceeds 250 000 ounces per annum for a period of six years commencing on 1 January 2021 ("Mponeng Contingent Consideration"). Based on AngloGold's current production forecast, the Mponeng Contingent Consideration has a value of approximately US$100 million
A contingent consideration of US$20 per ounce in relation to underground production sourced within the West Wits mineral rights (comprising the Mponeng, Savuka and TauTona mines) below the current infrastructure if it is developed
Harmony’s share placement for the funding of Mponeng and Mine Waste Solutions took place on 24 June 2020. Harmony’s placement received significant support from existing and new shareholders. As a result, the placing was 4.75 times oversubscribed. The amount raised fully covers the cash portion of the purchase price. The purchase price will be paid to Anglogold Ashanti once the transaction concludes.
Aside from improving Harmony’s portfolio mix between surface and underground operations, the acquisition has the potential to improve the group’s overall recovered grade and increase cash flow margins. Several surface synergies have been identified in the West Wits area, but we will only be able to estimate the full benefit of the integration once our planning parameters have been applied and we take ownership of the assets.
On 14 September 2020, Harmony announced that all conditions precedent relating to the acquisition had been met and accordingly we have now concluded the transaction. The transaction is scheduled to close in accordance with the transaction agreement on 30 September 2020, upon which Harmony will assume full ownership and operation of Mponeng, MWS and all other assets and liabilities that form part of the transaction. Harmony will take effective control of the assets as from 1 of October 2020.
Wafi-Golpu Project
Harmony, together with its Wafi-Golpu Joint Venture partner, Newcrest Mining Limited, looks forward to progressing the negotiation of its application for a Special Mining Lease for the Wafi-Golpu Project. We are encouraged by recent statements by the Prime Minister of Papua New Guinea that Wafi-Golpu is a project of national priority to be urgently advanced, and we look forward to re-engaging with the state’s negotiating team at the earliest opportunity.
DECISION OF MINISTER OF MINERAL RESOURCES AND ENERGY TO WITHDRAW APPEAL
Post year-end, South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, withdrew his notice of appeal to the Supreme Court of Appeal in respect of the declaratory order issued in April 2018 by the High Court of South Africa (Gauteng Division).
The declaratory order held that black economic empowerment ("BEE") ownership transactions should continue to be recognised for regulatory certainty purposes and for the duration of the mining right – even where the BEE partner has sold or transferred part of or all its equity. We are pleased that this issue is no longer in dispute and that the standing decision of the court does not have an impact on the application for a review of the 2018 Mining Charter’s provision regarding recognition of continuing consequences.
As a member of the Minerals Council South Africa, we agree that the Minister’s decision opens the way for further engagement between the government and the mining industry and, in the long run, the achievement of much needed regulatory certainty in the sector. Harmony continues to participate in the discussions on the provisions of the new charter to ensure that the interests of all our stakeholders are protected.


6


HARMONY INCLUDED IN FTSE/JSE AFRICA TOP 40 INDEX
On 2 September 2020, the FTSE announced that Harmony will be included in the FTSE/JSE Africa Top 40 Index as from the 18 September 2020. The FTSE/JSE Africa Index includes the two South African blue-chip indices, the Top 40 and the Shareholder weighted (SWIX) Top 40 Index. Both indices consist of the 40 most investable companies, ranked by market capitalisation. The SWIX Index, however, uses an alternate free float factor which represents the proportion of a constituent’s share capital that is held in dematerialised form and registered on the South African share register.
We are delighted with our achievement. It points to investor interest in and support for both Harmony’s strategy to produce safe profitable ounces and increase margins through operational excellence and value-accretive acquisitions, and in our product, gold. Joining the Top 40 is all the more significant as we and the world at large continue to manage the challenges of the COVID-19 pandemic.
FY21 GROUP PRODUCTION AND COST GUIDANCE
Production guidance for FY21 is estimated to be between 1.26Moz and 1.3Moz at an all-in sustaining cost of between R690 000/kg to R710 000/kg. Underground recovered grade is planned to be about 5.53g/t to 5.58g/t. Guidance will be updated once Mponeng and Mine Waste Solutions have been integrated into Harmony’s asset portfolio.
IN CONCLUSION
Despite the impact of the pandemic, the need for collective action has revealed our interdependencies and strengthened our relationships with Harmony's various stakeholders. It is from this basis that we look forward to moving together into FY21.
As we head into FY21, our focus remains on the safety and health of our employees. We are uncertain how long the world will be faced with COVID-19 and its impact on people and the economy. It has also compelled each one of us to reconsider what we value. At Harmony, it has driven home the value of all stakeholders and the need for all to be involved in finding solutions.
Global health and economic risks continue to support higher gold prices and while there is still much uncertainty in the world, gold remains a timeless investment.
Harmony is well-positioned to benefit from anticipated continuing strength of the gold price. The newly acquired assets will help grow production and, as conditions improve, Harmony has other Tier 1 projects such as Wafi-Golpu and a pipeline of organic projects in South Africa to incorporate into its portfolio.


Peter Steenkamp
Chief Executive Officer

7


SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES
AS AT 30 JUNE 2020
Harmony’s statement of mineral resources and mineral reserves as at 30 June 2020 is produced in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves ("SAMREC"). It should be noted that the mineral resources are reported inclusive of the mineral reserves.
This report provides a summary of the update, while the detailed statement of the mineral resources and mineral reserves will be published in the Integrated Annual Report on 23 October 2020, which will be available at www.harmony.co.za/invest. Refer to the website (www.harmony.co.za) for the updated reserves and resources tables as at 30 June 2020.
Harmony uses certain terms in the summary such as "measured", "indicated" and "inferred" resources, which the United States Securities and Exchange Commission guidelines strictly prohibit companies registered in the United States from including in their filings with the commission. United States investors are urged to consider the disclosure in this regard in our Form 20-F which will be available on our website at www.harmony.co.za/invest/annual-reports on 29 October 2020.
Introduction
Harmony’s strategy is to produce safe, profitable ounces and increase margins. This includes delivering safely on our operational plans, reducing costs and improving productivity. Harmony’s growth journey entails acquiring higher grade assets. In FY17, Harmony invested in the life of mine extension at Hidden Valley and in FY18 acquired and integrated the higher grade Moab Khotsong operations. The acquisition of the remainder of the South African assets of AngloGold Ashanti Limited is currently in progress.
Harmony – Total
The company’s attributable gold and gold equivalent mineral resources are declared as 118.6Moz as at 30 June 2020, a 1.11% increase year on year from the 117.3Moz declared as at 30 June 2019. The total gold contained in the mineral resources at the South African operations represents 62% of the company total, with the Papua New Guinea operations representing 38% of Harmony’s total gold and gold equivalent mineral resources as at 30 June 2020.
Harmony’s attributable gold and gold equivalent mineral reserves amounts to 36.5Moz, a 0.1% increase from the 36.45Moz declared at 30 June 2019. The gold reserve ounces in South Africa represent 48%, while the Papua New Guinea gold and gold equivalent ounces represent 52% of Harmony’s total mineral reserves as at 30 June 2020.
South Africa
South African underground operations
The company’s mineral resources at the South African underground operations as at 30 June 2020 are 62.9Moz (214.8Mt at 9.10g/t), an increase of 3.7% year on year from the 60.6Moz (210.4Mt at 8.96/t) declared as at 30 June 2019. This increase is due to additions at Tshepong Operations, Moab Khotsong and Kusasalethu.
The company’s mineral reserves at the South African underground operations as at 30 June 2020 are 10.8Moz (56.9Mt at 5.87g/t), an increase of 1.1% year on year from the 10.6Moz (56.7Mt at 5.83g/t) declared as at 30 June 2019. The increase in ounces is due to the reserves added from Moab Khotsong, Tshepong Operations, Target and Masimong.
South African surface operations, including Kalgold
The company’s mineral resources at the South African surface operations as at 30 June 2020 are 10.4Moz (1 092.8Mt at 0.30g/t). A decrease of 3.5% mainly due to depletion and the updated geological model at Kalgold based on new drilling information.
The company’s mineral reserves after normal depletion at the South African surface operations as at 30 June 2020 are 6.6Moz (801.1Mt at 0.26g/t), an increase of 0.1% due to the incorporation of Windmill South and Henry's pit into the reserves of Kalgold.
Papua New Guinea (PNG)
Papua New Guinea operations
The company’s attributable gold and gold equivalent mineral resources at the Papua New Guinea operations as at 30 June 2020 are 45.4Moz, a decrease of 1% year on year from the 45.9Moz declared as at 30 June 2019. This decrease is mainly due to a new resource model at Hidden Valley (Kaveroi) and depletion. The company’s gold and gold equivalent mineral reserves at the Papua New Guinea operations as at 30 June  2020 are 19.1Moz, a decrease of 0.4% year on year from the 19.2Moz declared as at 30 June 2019. The decrease is mainly due to depletion, which was mostly offset by the change in mine design at Hidden Valley that added additional ounces.
ASSUMPTIONS
In converting the mineral resources to mineral reserves, the following commodity prices and exchange rates were applied:
A gold price of US$1 350/oz
An exchange rate of R14.51/US$
The above parameters resulted in a Rand gold price of R630 000/kg for the South African assets
The Hidden Valley mine and the Golpu project used commodity prices of US$1 350/oz Au, US$17.00/oz Ag, US$10.00/lb Mo and US$3.00/lb Cu at an exchange rate of US$0.72/A$
Gold equivalent ounces are calculated assuming US$1 350/oz Au, US$3.00/lb Cu and US$17.00/oz Ag, and assuming a 100% recovery for all metals

8


Independent review
Harmony’s South African mineral resources and reserves at Kusasalethu and Joel as well as the group SAMREC statement were independently reviewed by The Mineral Corporation for compliance to SAMREC.
Note: Au = gold; Cu = copper; Ag = Silver, Mo = Molybdenum, Moz = million ounces.
 
Mineral resources: Gold and gold equivalents
Measured
Indicated
Inferred
Total
 
Tonnes
(Mt)

g/t

Gold
 ‘000oz

Tonnes
(Mt)

g/t

Gold
‘000oz

Tonnes
(Mt)

g/t

Gold
‘000oz

Tonnes
(Mt)

g/t

Gold
‘000oz

 
SA underground
70.3

8.74

19 775

70.5

9.31

21 092

73.9

9.25

21 986

214.8

9.10

62 853

 
SA surface including Kalgold
251.0

0.30

2 404

781.4

0.29

7 389

60.4

0.32

615

1 092.8

0.30

10 408

 
Total South Africa
321.4

 
22 179

851.9

 
28 481

134.3

 
22 601

1 307.5

 
73 261

 
Hidden Valley
2.3

1.32

98

61.9

1.53

3 052

1.5

1.08

50

65.7

1.52

3 201

 
Wafi-Golpu system*



399.0

0.84

10 800

110.0

0.76

2 700

504.0

0.83

13 500

 
Kili Teke






237.0

0.24

1 810

237.0

0.24

1 810

 
Total Papua New Guinea
2.3

 
98

460.9

 
13 852

348.4

 
4 561

806.6

 
18 511

 
Total gold resources
323.7

 
22 277

1 312.8

 
42 333

482.7

 
27 162

2 114.2

 
91 772

 
Hidden Valley – gold equivalent ounces
2.3

 
26

60.0

 
566

1.3

 
10

63.6

 
602

 
 
Wafi-Golpu – gold equivalent ounces*

 

345.0

 
19 150

90.0

 
3 200

430.0

 
22 350

 
 
Kili Teke – gold equivalent ounces

 


 

237.0

 
3 926

237.0

 
3 926

 
 
Total gold equivalent resources**
2.3

 
26

405.0

 
19 716

328.2

 
7 136

730.5

 
26 877

 
Total Harmony gold and gold equivalent resources**
323.7

 
22 303

1 312.8

 
62 049

482.7

 
34 297

2 114.2

 
118 649

Mineral resources: Silver and copper (used in equivalent calculations)
Measured
Indicated
Inferred
Total
Tonnes
(Mt)

g/t

Silver
‘000oz

Tonnes
(Mt)

g/t

Silver
‘000oz

Tonnes
(Mt)

g/t

Silver
‘000oz

Tonnes
(Mt)

g/t

Silver
‘000oz

Hidden Valley
2.3

27.37

2 029

60.0

23.29

44 917

1.3

19.92

808

63.6

23.37

47 754

 
Measured
Indicated
Inferred
Total
Tonnes
(Mt)

%

Copper
‘Mlb

Tonnes
(Mt)

%

Copper
‘Mlb

Tonnes
(Mt)

%

Copper
‘Mlb

Tonnes
(Mt)

%

Copper
‘Mlb

Golpu*



345.0

1.00

8 250

70.0

0.85

1 250

410.0

1.00

9 500

Nambonga*






20.0

0.20

88

20.0

0.20

88

Kili Teke






237.0

0.34

1 767

237.0

0.34

1 767

Total



345.0

1.00

8 250

327.0

0.44

3 105

667.0

0.77

11 355


Mineral reserves:
Gold and gold equivalents
Proved
Probable
Total
Tonnes
(Mt)

g/t

Gold
‘000oz

Tonnes
(Mt)

g/t

Gold
‘000oz

Tonnes
(Mt)

g/t

Gold
‘000oz

SA underground
39.9

5.85

7 508

17.0

5.92

3 242

56.9

5.87

10 750

SA surface including Kalgold
164.0

0.30

1 576

637.1

0.25

5 072

801.1

0.26

6 648

Total South Africa
203.9

 
9 084

654.1

 
8 314

858.0

 
17 398

Hidden Valley
2.3

1.32

98

14.5

1.61

749

16.8

1.57

847

Wafi-Golpu system*



200.0

0.86

5 500

200.0

0.86

5 500

Total Papua New Guinea
2.3

 
98

214.5

 
6 249

216.8

 
6 347

Total gold reserves
206.2

 
9 182

868.6

 
14 563

1 074.8

 
23 746

Hidden Valley – gold equivalent ounces
2.3

 
36

14.2

 
178

16.5

 
214

Wafi-Golpu – gold equivalent ounces*
 
 
 
200.0

 
12 538

200.0

 
12 538

Total gold equivalent reserves**
2.3

 
36

214.2

 
12 716

216.5

 
12 752

Total Harmony gold and gold equivalent reserves**
206.2

 
9 218

868.6

 
27 279

1 074.8

 
36 497






9


Mineral reserves:
Silver and copper
(used in equivalent calculations)
Proved
Probable
Total
Tonnes
(Mt)

g/t

Silver
‘000oz

Tonnes
(Mt)

g/t

Silver
‘000oz

Tonnes
(Mt)

g/t

Silver
‘000oz

Hidden Valley
2.3

27.37

2 029

14.2

24.83

11 314

16.5

25.18

13 343

 
Proved
Probable
Total
Tonnes
(Mt)

%

Copper
‘Mlb

Tonnes
(Mt)

%

Copper
‘Mlb

Tonnes
(Mt)

%

Copper
‘Mlb

Golpu*



200.0

1.20

5 400

200.0

1.20

5 400

*
Represents Harmony’s equity portion of 50%.
**
In instances where individual deposits may contain multiple valuable commodities with a reasonable expectation of being recovered (for example gold and copper in a single deposit), Harmony computes a gold equivalent to more easily assess the value of the deposit against gold-only mines. Harmony does this by calculating the value of each of the deposits' commodities, then dividing the product by the price of gold. For example, the gold equivalent ounces for the copper portion of a deposit would be calculated as follows: (copper pounds x copper price per pound)/gold price per ounce. All gold equivalent calculations are done using metal prices and parameters as stipulated above.
***
Rounding of numbers may result in slight computational discrepancies.
EXPLORATION
Our exploration strategy is to predominantly pursue brownfields exploration targets close to existing infrastructure. This will drive short- to medium-term organic ore reserve replacement and growth to support our current strategy of increasing quality ounces and to mitigate the risk of a depleting ore reserve base.
Key work streams underpinning the FY20 exploration programme include:
Brownfield exploration at Hidden Valley and Kalgold to optimise existing open pit operations and extend mine life;
Brownfield exploration at our underground operations in South Africa;
Greenfields exploration at Target North
South Africa
B-Reef
High-grade B-Reef areas have been identified at Tshepong shaft which has become part of the life of mine plan. B-Reef exploration commenced at Phakisa during FY18 and is planned to continue during FY21. An area of interest has been identified and footwall development has commenced during FY20 and will be used as a drilling platform to confirm and delineate the anticipated B-Reef channel.
Kalgold
The brownfield drilling campaign focused on infill drilling at the Windmill Zone. Six holes totalling 1 929m were drilled during the year. Drilling results allowed an upgrade of the Windmill resource into indicated category resulting in inclusion of the Windmill zone into the Kalgold Life of Mine.
The systematic soil sampling programme was carried out to test the numerous anomalies identified by an Airborne Electro-Magnetic ("AEM") survey. A total of 4 162 auger holes were drilled and 1 902 of outcrop samples were obtained and analysed. Integration of the AEM data with regional magnetics and geochemical sampling results indicates potential targets which will be explored by RC drilling.
Target North
The exploration drilling programme from surface progressed well and borehole MAL21 (initial hole) was completed. The hole reached a depth of 3 022.77m and intersected the VCR package. The deflection drilling has commenced and results from this borehole will be shared once all deflections have been completed.

10


ADMINISTRATIVE INFORMATION FOR PROFESSIONAL ORGANISATIONS
SACNASP – THE LEGISLATED REGULATORY BODY FOR NATURAL SCIENCE PRACTITIONERS IN SOUTH AFRICA
Private Bag X540, Silverton, 0127
Gauteng Province, South Africa
Telephone: +27 (12) 841 1075
Facsimile: +27 (86) 206 0427
http://www.sacnasp.org.za/
SAIMM – THE SOUTHERN AFRICAN INSTITUTE OF MINING AND METALLURGY
Private Bag X540, Silverton, 0127
Gauteng Province, South Africa
Telephone: +27 (12) 841 1075
Facsimile: +27 (86) 206 0427
http://www.saimm.co.za
AUSIMM – THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY
PO Box 660, Carlton South
Victoria, 3053, Australia
Telephone: +61 3 9658 6100
Facsimile: +61 3 9662 3662
http://www.ausimm.com.au/
LEGAL ENTITLEMENT TO THE MINERALS BEING REPORTED UPON
Harmony’s South African operations operate under new order mining rights in terms of the Minerals and Petroleum Resources Development of Act, 2002 (Act No. 28 of 2002) ("MPRDA"). In Papua New Guinea, Harmony operates under the Independent State of Papua New Guinea Mining Act 1992. All required operating permits have been obtained, and are in good standing. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Competent Person.

11


OPERATING RESULTS – YEAR ON YEAR (RAND/METRIC)
 
Year
ended
SOUTH AFRICA
Hidden
Valley

TOTAL
HARMONY

UNDERGROUND PRODUCTION
SURFACE PRODUCTION
TOTAL
SOUTH
AFRICA

Tshepong
Operations

Moab
Khotsong

Bambanani

Joel

Doornkop

Target 1

Kusasalethu

Masimong

Unisel

TOTAL
UNDER-
GROUND

Phoenix

Central
plant
reclamation

Dumps

Kalgold

TOTAL
SURFACE

Ore milled
- t'000
Jun-20
1 417
746
200
349
681
543
615
489
219
5 259
6 227
4 020
4 476
1 541
16 264
21 523
3 906
25 429
Jun-19
1 612
970
230
429
730
588
742
602
256
6 159
6 133
3 872
4 307
1 619
15 931
22 090
3 886
25 976
Yield
- g/tonne
Jun-20
5.15
8.84
10.66
3.99
4.40
4.13
4.90
4.09
4.48
5.45
0.131
0.155
0.392
0.75
0.27
1.53
1.25
1.49
Jun-19
4.94
8.17
10.93
3.65
4.48
4.51
6.72
3.84
4.73
5.59
0.123
0.150
0.352
0.77
0.26
1.74
1.60
1.72
Gold produced
- kg
Jun-20
7 293
6 592
2 132
1 391
2 994
2 244
3 015
1 999
982
28 642
818
625
1 753
1 153
4 349
32 991
4 872
37 863
Jun-19
7 967
7 928
2 515
1 567
3 273
2 653
4 989
2 309
1 212
34 413
756
579
1 515
1 249
4 099
38 512
6 222
44 734
Gold sold
- kg
Jun-20
7 399
6 799
2 162
1 412
3 038
2 237
3 085
2 027
994
29 153
823
625
1 780
1 151
4 379
33 532
4 949
38 481
Jun-19
7 922
7 794
2 495
1 612
3 255
2 685
5 028
2 291
1 207
34 289
750
577
1 497
1 263
4 087
38 376
6 192
44 568
Gold price received
- R/kg
Jun-20
736 863
736 533
735 972
734 620
747 282
681 388
743 153
691 282
684 727
729 159
715 787
749 216
779 835
742 533
753 623
732 354
757 348
735 569
Jun-19
591 331
573 522
591 962
593 531
593 301
590 298
591 742
593 003
590 468
587 680
577 889
592 359
587 483
593 482
588 265
587 742
579 902
586 653
Gold revenue
(R'000)
Jun-20
5 452 051
5 007 690
1 591 172
1 037 283
2 270 244
1 524 266
2 292 627
1 401 229
680 619
21 257 181
589 093
468 260
1 388 107
854 656
3 300 116
24 557 297
3 748 117
28 305 414
Jun-19
4 684 522
4 470 030
1 476 946
956 772
1 931 194
1 584 950
2 975 279
1 358 570
712 695
20 150 958
433 417
341 791
879 462
749 568
2 404 238
22 555 196
3 590 755
26 145 951
Cash operating cost (net of by-product credits)
(R'000)
Jun-20
4 251 948
3 282 504
1 024 682
998 771
1 699 491
1 504 932
2 562 092
1 240 988
572 775
17 138 183
363 169
233 624
853 347
673 603
2 123 743
19 261 926
1 695 719
20 957 645
Jun-19
4 007 667
3 166 555
984 749
967 021
1 593 279
1 478 422
2 376 844
1 213 849
568 559
16 356 945
344 260
212 125
691 557
694 797
1 942 739
18 299 684
1 370 850
19 670 534
Inventory movement
(R'000)
Jun-20
46 291
61 007
15 445
11 265
30 661
(5 754)
15 054
17 088
7 503
198 560
2 722
815
7 316
(1 834)
9 019
207 579
(56 565)
151 014
Jun-19
(34 242)
(65 616)
9 166
4 417
(29 489)
12 921
17 679
(8 683)
(4 204)
(98 051)
(3 083)
(78)
(7 358)
5 149
(5 370)
(103 421)
(8 794)
(112 215)
Operating costs
(R'000)
Jun-20
4 298 239
3 343 511
1 040 127
1 010 036
1 730 152
1 499 178
2 577 146
1 258 076
580 278
17 336 743
365 891
234 439
860 663
671 769
2 132 762
19 469 505
1 639 154
21 108 659
Jun-19
3 973 425
3 100 939
993 915
971 438
1 563 790
1 491 343
2 394 523
1 205 166
564 355
16 258 894
341 177
212 047
684 199
699 946
1 937 369
18 196 263
1 362 056
19 558 319
Production profit
(R'000)
Jun-20
1 153 812
1 664 179
551 045
27 247
540 092
25 088
(284 519)
143 153
100 341
3 920 438
223 202
233 821
527 444
182 887
1 167 354
5 087 792
2 108 963
7 196 755
Jun-19
711 097
1 369 091
483 031
(14 666)
367 404
93 607
580 756
153 404
148 340
3 892 064
92 240
129 744
195 263
49 622
466 869
4 358 933
2 228 699
6 587 632
Capital expenditure
(R'000)
Jun-20
929 680
497 628
49 880
150 893
280 694
346 833
188 384
23 777
7 487
2 475 256
6 883
11 875
1 760
98 598
119 116
2 594 372
959 141
3 553 513
Jun-19
1 130 180
558 876
61 093
187 092
308 324
297 265
315 921
109 386
45 426
3 013 563
5 757
7 084
7 682
61 179
81 702
3 095 265
1 591 274
4 686 539
Cash operating costs
- R/kg
Jun-20
583 018
497 953
480 620
718 024
567 632
670 647
849 782
620 804
583 274
598 358
443 972
373 798
486 792
584 218
488 329
583 854
348 054
553 513
Jun-19
503 033
399 414
391 550
617 116
486 795
557 264
476 417
525 703
469 108
475 313
455 370
366 364
456 473
556 283
473 954
475 168
220 323
439 722
Cash operating costs
- R/tonne
Jun-20
3 001
4 400
5 123
2 862
2 496
2 772
4 166
2 538
2 615
3 259
58
58
191
437
131
895
434
824
Jun-19
2 486
3 264
4 282
2 254
2 183
2 514
3 203
2 016
2 221
2 656
56
55
161
429
122
828
353
757
Cash operating cost
and Capital
- R/kg
Jun-20
710 493
573 442
504 016
826 502
661 384
825 207
912 264
632 699
590 898
684 779
452 386
392 798
487 796
669 732
515 718
662 493
544 922
647 364
Jun-19
644 891
469 908
415 842
736 511
580 997
669 313
539 740
573 077
506 588
562 883
462 985
378 599
461 544
605 265
493 887
555 540
476 073
544 487
All-in sustaining cost
- R/kg
Jun-20
713 202
566 942
522 990
826 970
649 041
817 066
923 054
655 888
613 382
686 598
453 937
389 611
484 507
690 239
519 293
664 451
562 648
651 356
Jun-19
636 281
477 581
441 226
701 644
572 132
662 816
556 621
593 408
523 823
566 572
462 579
378 038
462 178
624 147
500 426
558 494
497 399
550 005
Operating free cash flow margin¹
%
Jun-20
5
 %
25
%
32
%
(11
)%
13
%
(21
)%
(20
)%
10
%
15
%
8
%
37
%
48
%
38
%
10
 %
32
%
11
%
23
%
13
%
Jun-19
(10
)%
17
%
29
%
(21
)%
2
%
(12
)%
9
 %
3
%
14
%
4
%
19
%
36
%
20
%
(1
)%
16
%
5
%
16
%
7
%
¹Excludes run of mine costs for Kalgold (Jun-20:R1.204m, Jun-19:R1.966m) and Hidden Valley (Jun-20:-R222.416m, Jun-19:-R55.881m).

12


OPERATING RESULTS – YEAR ON YEAR (US$/IMPERIAL)
 
Year
ended
SOUTH AFRICA
Hidden
Valley

TOTAL
HARMONY

UNDERGROUND PRODUCTION
SURFACE PRODUCTION
TOTAL
SOUTH
AFRICA

Tshepong
Operations

Moab
Khotsong

Bambanani

Joel

Doornkop

Target 1

Kusasalethu

Masimong

Unisel

TOTAL
UNDER-
GROUND

Phoenix

Central
plant
reclamation

Dumps

Kalgold

TOTAL
SURFACE

Ore milled
- t'000
Jun-20
1 562
822
221
384
750
598
678
539
242
5 796
6 866
4 433
4 936
1 700
17 935
23 731
4 307
28 038
Jun-19
1 777
1 069
254
473
805
650
817
664
283
6 792
6 762
4 269
4 749
1 785
17 565
24 357
4 285
28 642
Yield
- oz/ton
Jun-20
0.150
0.258
0.310
0.116
0.128
0.121
0.143
0.119
0.130
0.159
0.004
0.005
0.011
0.022
0.008
0.045
0.036
0.043
Jun-19
0.144
0.238
0.318
0.107
0.131
0.131
0.196
0.112
0.138
0.163
0.004
0.004
0.010
0.022
0.008
0.051
0.047
0.050
Gold produced
- oz
Jun-20
234 475
211 938
68 545
44 722
96 259
72 146
96 934
64 269
31 573
920 861
26 299
20 094
56 360
37 070
139 823
1 060 684
156 639
1 217 323
Jun-19
256 146
254 891
80 860
50 379
105 229
85 296
160 400
74 237
38 966
1 106 404
24 306
18 615
48 708
40 156
131 785
1 238 189
200 042
1 438 231
Gold sold
- oz
Jun-20
237 882
218 592
69 510
45 397
97 673
71 921
99 185
65 169
31 958
937 287
26 459
20 093
57 229
37 006
140 787
1 078 074
159 113
1 237 187
Jun-19
254 698
250 583
80 216
51 827
104 650
86 324
161 653
73 657
38 807
1 102 415
24 113
18 551
48 129
40 605
131 398
1 233 813
199 077
1 432 890
Gold price received
- $/oz
Jun-20
1 463
1 463
1 461
1 459
1 484
1 353
1 476
1 373
1 360
1 448
1 421
1 488
1 549
1 474
1 497
1 454
1 504
1 461
Jun-19
1 297
1 258
1 299
1 302
1 302
1 295
1 298
1 301
1 295
1 289
1 268
1 299
1 289
1 302
1 290
1 289
1 272
1 287
Gold revenue
($'000)
Jun-20
348 078
319 708
101 586
66 224
144 940
97 314
146 369
89 459
43 453
1 357 131
37 610
29 895
88 622
54 564
210 691
1 567 822
239 293
1 807 115
Jun-19
330 389
315 262
104 166
67 479
136 203
111 783
209 840
95 817
50 265
1 421 204
30 568
24 106
62 027
52 865
169 566
1 590 770
253 248
1 844 018
Cash operating cost (net of by-product credits)
($'000)
Jun-20
271 459
209 567
65 419
63 765
108 502
96 080
163 573
79 229
36 568
1 094 162
23 186
14 915
54 480
43 006
135 587
1 229 749
108 260
1 338 009
Jun-19
282 652
223 330
69 452
68 202
112 371
104 270
167 634
85 610
40 099
1 153 620
24 280
14 961
48 774
49 003
137 018
1 290 638
96 684
1 387 322
Inventory movement
($'000)
Jun-20
2 955
3 895
986
719
1 958
(367)
961
1 091
479
12 677
174
52
467
(117)
576
13 253
(3 611)
9 642
Jun-19
(2 415)
(4 628)
646
312
(2 080)
911
1 247
(612)
(296)
(6 915)
(217)
(6)
(519)
363
(379)
(7 294)
(620)
(7 914)
Operating costs
($'000)
Jun-20
274 414
213 462
66 405
64 484
110 460
95 713
164 534
80 320
37 047
1 106 839
23 360
14 967
54 947
42 889
136 163
1 243 002
104 649
1 347 651
Jun-19
280 237
218 702
70 098
68 514
110 291
105 181
168 881
84 998
39 803
1 146 705
24 063
14 955
48 255
49 366
136 639
1 283 344
96 064
1 379 408
Production profit
($'000)
Jun-20
73 664
106 246
35 181
1 740
34 480
1 601
(18 165)
9 139
6 406
250 292
14 250
14 928
33 675
11 675
74 528
324 820
134 644
459 464
Jun-19
50 152
96 560
34 068
(1 035)
25 912
6 602
40 959
10 819
10 462
274 499
6 505
9 151
13 772
3 499
32 927
307 426
157 184
464 610
Capital expenditure
($'000)
Jun-20
59 355
31 769
3 185
9 634
17 921
22 144
12 027
1 518
478
158 031
439
758
112
6 294
7 603
165 634
61 236
226 870
Jun-19
79 709
39 417
4 308
13 195
21 744
20 966
22 281
7 714
3 205
212 539
406
500
542
4 315
5 763
218 302
112 229
330 531
Cash operating cost
- $/oz
Jun-20
1 158
989
954
1 426
1 127
1 332
1 687
1 233
1 158
1 188
882
742
967
1 160
970
1 159
691
1 099
Jun-19
1 103
876
859
1 354
1 068
1 222
1 045
1 153
1 029
1 043
999
804
1 001
1 220
1 040
1 042
483
965
Cash operating costs
- $/t
Jun-20
174
255
296
166
145
161
241
147
151
189
3
3
11
25
8
52
25
48
Jun-19
159
209
273
144
140
160
205
129
142
170
4
4
10
27
8
53
23
48
Cash operating cost
and Capital
- $/oz
Jun-20
1 411
1 139
1 001
1 641
1 313
1 639
1 812
1 256
1 173
1 360
898
780
969
1 330
1 024
1 316
1 082
1 286
Jun-19
1 415
1 031
912
1 616
1 275
1 468
1 184
1 257
1 111
1 235
1 016
831
1 012
1 328
1 083
1 219
1 044
1 194
All-in sustaining cost
- $/oz
Jun-20
1 416
1 126
1 039
1 642
1 289
1 623
1 833
1 302
1 218
1 363
901
774
962
1 371
1 031
1 319
1 120
1 293
Jun-19
1 396
1 048
968
1 539
1 255
1 454
1 221
1 302
1 149
1 243
1 015
829
1 014
1 369
1 098
1 225
1 090
1 207
Operating free cash flow margin¹
%
Jun-20
5
 %
25
%
32
%
(11
)%
13
%
(21
)%
(20
)%
10
%
15
%
8
%
37
%
48
%
38
%
10
 %
32
%
11
%
23
%
13
%
Jun-19
(10
)%
17
%
29
%
(21
)%
2
%
(12
)%
9
 %
3
%
14
%
4
%
19
%
36
%
20
%
(1
)%
16
%
5
%
16
%
7
%
¹Excludes run of mine costs for Kalgold (Jun-20:US$0.077m, Jun-19:US$0.139m) and Hidden Valley (Jun-20:-US$14.200m, Jun-19:-US$3.941m).

13


PWCFINALREVIEWREPORT30JUNE20.JPG

16


CONDENSED CONSOLIDATED INCOME STATEMENT (RAND)
 
 
Year ended
Figures in million
Notes
30 June 2020
(Reviewed)

30 June 2019
(Audited)

Revenue
3
29 245

26 912

Cost of sales
4
(25 908
)
(28 869
)
Production costs
 
(22 048
)
(20 324
)
Amortisation and depreciation
 
(3 508
)
(4 054
)
Impairment of assets
 

(3 898
)
Other items
 
(352
)
(593
)
 
 
 
 
Gross profit/(loss)
 
3 337

(1 957
)
Corporate, administration and other expenditure
 
(611
)
(731
)
Exploration expenditure
 
(205
)
(148
)
Gains/(losses) on derivatives
11
(1 678
)
484

Other operating expenses
5
(1 201
)
(186
)
Operating loss
 
(358
)
(2 538
)
Share of profits from associates
 
94

59

Acquisition costs
17
(45
)

Investment income
 
375

308

Finance costs
 
(661
)
(575
)
Loss before taxation
 
(595
)
(2 746
)
Taxation
6
(255
)
139

Current taxation
 
(58
)
(143
)
Deferred taxation
 
(197
)
282

 
 
 
 
Net loss for the year
 
(850
)
(2 607
)
Attributable to:
 
 
 
Non-controlling interest
 
28


Owners of the parent
 
(878
)
(2 607
)
Loss per ordinary share (cents)
7
 
 
Basic loss
 
(164
)
(498
)
Diluted loss
 
(166
)
(500
)
The accompanying notes are an integral part of these condensed consolidated financial statements.



The provisional condensed consolidated financial statements (condensed consolidated financial statements) for the year ended 30 June 2020 have been prepared by Harmony Gold Mining Company Limited’s corporate reporting team headed by Michelle Kriel CA(SA). This process was supervised by the financial director, Boipelo Lekubo CA(SA) and approved by the board of Harmony Gold Mining Company Limited on 15 September 2020. These condensed consolidated financial statements have been reviewed by the group's external auditors, PricewaterhouseCoopers Incorporated.

17


CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (RAND)
 
 
Year ended
Figures in million
Notes
30 June 2020
(Reviewed)

30 June 2019
(Audited)

Net loss for the year
 
(850
)
(2 607
)
Other comprehensive income for the year, net of income tax
 
(1 958
)
(684
)
Items that may be reclassified subsequently to profit or loss:
 
(1 998
)
(677
)
Foreign exchange translation gain/(loss)
2
1 199

(50
)
Remeasurement of gold hedging contracts
11
(3 197
)
(626
)
 
 
 
 
Items that will not be reclassified to profit or loss:
 
40

(7
)
Gain on assets measured at fair value through other comprehensive income
 
25


Remeasurement of retirement benefit obligation
 
 
 
Actuarial gain/(loss) recognised during the year
 
17

(7
)
Deferred taxation thereon
 
(2
)

 
 
 
 
Total comprehensive income for the year
 
(2 808
)
(3 291
)
Attributable to:
 
 
 
Non-controlling interest
 
12


Owners of the parent
 
(2 820
)
(3 291
)


The accompanying notes are an integral part of these condensed consolidated financial statements.


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (RAND)
FOR THE YEAR ENDED 30 JUNE 2020
Figures in million
 
Share capital

Accumulated loss

Other
reserves

Non-controlling interest

Total

Balance – 1 July 2019
 
29 551

(11 710
)
4 773


22 614

Issue of shares1
 
3 386




3 386

Share-based payments
 


186


186

Recognition of non-controlling interest2
 

5


(5
)

Net profit/(loss) for the year
 

(878
)

28

(850
)
Other comprehensive income for the year
 


(1 942
)
(16
)
(1 958
)
Dividends paid
 



(3
)
(3
)
Balance – 30 June 2020 (Reviewed)
 
32 937

(12 583
)
3 017

4

23 375

Balance – 1 July 2018
 
29 340

(9 103
)
5 227


25 464

Issue of shares
 
211




211

Share-based payments
 


230


230

Net loss for the year
 

(2 607
)


(2 607
)
Other comprehensive income for the year
 


(684
)

(684
)
Balance – 30 June 2019 (Audited)
 
29 551

(11 710
)
4 773


22 614

1 Issue of shares is shown net of transaction cost of R80 million reflected in the statement of changes in equity. Refer to note 17 for further detail.
2 Refer to note 16.

The accompanying notes are an integral part of these condensed consolidated financial statements.

18


CONDENSED CONSOLIDATED BALANCE SHEET (RAND)
 
 
At
Figures in million
Notes
30 June 2020
(Reviewed)

30 June 2019
(Audited)

ASSETS
 
 
 
Non-current assets
 
 
 
Property, plant and equipment
8
29 186

27 749

Intangible assets
8
536

533

Restricted cash
 
107

92

Restricted investments
 
3 535

3 301

Investments in associates
 
146

110

Inventories
 
47

43

Deferred tax assets
6
531

1

Other non-current assets
 
388

333

Derivative financial assets
11
50

197

Total non-current assets
 
34 526

32 359

Current assets
 
 
 
Inventories
12
2 421

1 967

Restricted cash
 
62

44

Trade and other receivables
10
1 308

1 064

Derivative financial assets
11
18

309

Cash and cash equivalents
18
6 357

993

Total current assets
 
10 166

4 377

Total assets
 
44 692

36 736

EQUITY AND LIABILITIES
 
 
 
Share capital and reserves
 
 
 
Attributable to equity holders of the parent company
 
23 371

22 614

Share capital
17
32 937

29 551

Other reserves
 
3 017

4 773

Accumulated loss
 
(12 583
)
(11 710
)
Non-controlling interest
16
4


Total equity
 
23 375

22 614

Non-current liabilities
 
 
 
Deferred tax liabilities
6
996

688

Provision for environmental rehabilitation
13
3 408

3 054

Provision for silicosis settlement
14
717

942

Retirement benefit obligation
 
193

201

Borrowings
15
7 463

5 826

Other non-current liabilities
 
101

5

Derivative financial liabilities
11
879

172

Total non-current liabilities
 
13 757

10 888

Current liabilities
 
 
 
Provision for silicosis settlement
14
175


Borrowings
15
255

89

Trade and other payables
 
3 006

2 875

Derivative financial liabilities
11
4 124

270

Total current liabilities
 
7 560

3 234

Total equity and liabilities
 
44 692

36 736

The accompanying notes are an integral part of these condensed financial statements

19


CONDENSED CONSOLIDATED CASH FLOW STATEMENT (RAND)
FOR THE YEAR ENDED 30 JUNE 2020