Harmony Gold Mining Company Limited Q4 FY2021 earnings call

ESG Progress

• Continued progress improving across all aspects of ESG, with a focus on sustainable development for a greener and more equitable future. Achieved a record 3.38 million fatality-free shifts in Q4 FY'21, implemented an effective COVID-19 vaccination strategy, spent nearly ZAR500 million on training and development, and ZAR7.9 billion on preferential procurement in SA.

Operational Performance

• Solid operational performance after acquiring Mponeng and related assets, with significant increase in production and improved grades. Excluding Mponeng, there was a 5% increase on old Harmony assets. Successfully integrated Mponeng and related assets, contributing to gold production increase. Met production and grade guidance for FY'21, with all-in sustaining cost above guidance but a good achievement considering commodity price increases.

New Projects

• Key new projects include Zaaiplaats (deepening of Moab Khotsong with 225,000 ounce per annum production, 24-year life, pre-tax real IRR of ~19%), Mine Waste Solutions Kareerand tailings expansion (~1 million ounce per annum, 16-year life, IRR of 43%), and extension of Hidden Valley Mine in Papua New Guinea (~2.5 years extension).

In FY'21, Harmony achieved a record earnings of ZAR5.6 billion, up from a loss of ZAR828 million in the previous year. EBITDA increased 64% to ZAR9.8 billion with an EBITDA margin of 23%. Excluding Mponeng and related assets, there was a 5% increase in production from old Harmony assets. The financial highlights also included a ZAR9.23 per share. The production saw an increase, with gold production contributing to the overall performance.

• FY'22 total CapEx expected to increase from ZAR5.1 billion in FY'21 to ZAR8 billion, with sustaining CapEx at 71% and major growth capital at 29%. - Production guidance for FY'22 expected to increase to just under 50 tons of gold across operations, translating to around 1.589 million ounces, a 3%-4% increase. - Dividend policy: return 20% of net free cash generated to shareholders, with a final dividend of ZAR0.27 in FY'21 and interim dividend of ZAR1.1.

• COVID-19 impact on operations and safety. - Fluctuations in commodity prices, particularly electricity and consumables. - Operational challenges in integrating new assets and managing mines reaching the end of their life. - Uncertainties around union negotiations and labor relations.

Q: Adrian Hammond asked about the ability to pay dividends given aggressive CapEx plans and reconciliation of outlook.

A: Boipelo Lekubo responded that the ZAR8 billion CapEx is for growth, and as projects come on stream, margins will open up, and the dividend will follow.

Q: Adrian Hammond asked about Mponeng B120 project and union membership.

A: Peter Steenkamp said they are considering extraction of Savuka and Tau Tona shaft pillars, and working with major unions like NUM.

Q: Leroy Mnguni asked about Tshepong impairment and production from South African surface operation.

A: Peter Steenkamp explained Tshepong impairment is due to life of mine assessment and grade model changes, and Kopanang plant surface sources are exhausted with no plans to bring them back.

Q: Jared Hoover asked about CapEx for mine solutions, gold price sensitivity, M&A focus, and SIV CapEx.

A: Peter Steenkamp provided details on CapEx spends, gold price sensitivities, ongoing M&A search, and SIV CapEx as a mix of catch-up and development.

Q: Adrian Hammond followed up on costs and cost-saving opportunities.

A: Peter Steenkamp discussed cost management through de-risking portfolio and operational improvements, and Boipelo Lekubo mentioned managing inflation within normal ranges through various strategies.