6-K 1 provisionalcondensedafsjun.htm 6-K Document




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 August 31, 2021

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 ☒





FY21 RESULTS*
for the year ended 30 June 2021
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)
HIGHLIGHTS for the financial year 2021 (FY21) vs financial year 2020 (FY20)
RESPONSIBLE STEWARDSHIPCASH CERTAINTYOPERATIONAL EXCELLENCEEFFECTIVE CAPITAL ALLOCATION
• 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" in ESG
• Covid-19 vaccination drive protecting our employees
• Upgraded MSCI score from “CCC” to “B” rating
• FTSE4Good constituent
• Included in the Bloomberg Gender Equality Index 2021
• 43% increase in revenue to R41 733m (US$2 710m) from R29 245m (US$1 867m)
• 83% increase in operating free cash flow to R6.5bn (US$424m) from R3.6bn (US$228m)
• 758% increase in net profit of R5.6bn (US$352m) from a loss of R850m (US$56m)
• 60% reduction in net debt to R542m (US$38m) from R1 361m (US$79m)
• Net debt to EBITDA at 0.1x from 0.2x
• HEPS increased by 699% to 923 SA cents (60 US cents) from a net loss per share of 154 SA cents (10 US cents)
• 66% increase in production profit to R12bn (US$777m) from R7.2bn (US$459m)
• 1% increase in underground recovered grade to 5.51g/t from 5.45g/t
• 26% increase in gold production to 47 755kg (1 535 352oz) from 37 863kg (1 217 323oz)
• 19% increase in total mineral resources
• 16% increase in total mineral reserves
• Successful integration of Mponeng and related assets
• Deleveraged balance sheet provides optionality for projects and acquisitions
• Strong pipeline of organic projects to drive production profile and margin expansion
• Final dividend** of 27 SA cents (1.8 US cents)^ per share declared
• Total FY21 dividend yield of 2.4%#
* These annual financial results have been reviewed by our external auditors, PricewaterhouseCoopers Incorporated
** See dividend notice on page 8 for the details
^ Illustrative equivalent based on the closing exchange rate of R14.72/US$1 as at 27 August 2021
# As at 27 August 2021


OPERATING RESULTS
12 months
ended
30 June 2021		12 months
ended
30 June 2020		%
Change
Gold produced
kg47 755 37 863 26 
oz1 535 352 1 217 323 26 
Underground grade
g/t5.51 5.45 1 
Gold price received
R/kg851 045 735 569 16 
US$/oz1 719 1 461 18 
Cash operating costs
R/kg600 592 553 513 (9)
US$/oz1 213 1 099 (10)
Total costs and capital
R/kg707 445 647 364 (9)
US$/oz1 429 1 286 (11)
All-in sustaining costs
R/kg723 054 651 356 (11)
US$/oz1 460 1 293 (13)
Production profit
R million11 958 7 197 66 
US$ million777 459 69 
Average Exchange rate
R:US$15.40 15.66 (2)
FINANCIAL RESULTS
12 months
ended
30 June 2021		12 months
ended
30 June 2020		%
Change
Basic earnings/(loss) per shareSA cents919 (164)>100
US cents58 (10)>100
Headline earnings/(loss) R million5 575 (828)>100
US$ million362 (53)>100
Headline earnings/(loss) per shareSA cents923 (154)>100
US cents60 (10)>100
Please refer to our website for the full results presentation: https://www.harmony.co.za/invest/presentations/2021

FORWARD-LOOKING STATEMENTS
This booklet 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 booklet, 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 prices 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 operation, 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 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 (www.har.co.za) 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.


CONTENTS
PAGE
2Forward-looking statements
3Shareholder information
4Message from the chief executive officer
8Notice of final gross cash dividend
9Summary update of Harmony's mineral resources and mineral reserves
13Operating results – year on year
(Rand/Metric)
15Operating results – year on year
(US$/Imperial)
17Review report from external auditor
18Condensed consolidated income statement (Rand)
19Condensed consolidated statement of comprehensive income (Rand)
19Condensed consolidated statement of changes in equity (Rand)
20Condensed consolidated balance sheet (Rand)
21Condensed consolidated cash flow statement (Rand)
22Notes to the condensed consolidated financial statements
42Segment report (Rand/Metric)
43Condensed consolidated income statement (US$)
44Condensed consolidated statement of comprehensive income (US$)
44Condensed consolidated statement of changes in equity (US$)
45Condensed consolidated balance sheet (US$)
46Condensed consolidated cash flow statement (US$)
47Segment report (US$/Imperial)
48Development results – Metric and Imperial
50Competent person's declaration
50Directorate and administration


SHAREHOLDER INFORMATION
Issued ordinary share capital
30 June 2021		616 052 197
Issued ordinary share capital
30 June 2020
603 142 706
MARKET CAPITALISATION
As at 30 June 2021 (ZARm)32 503
As at 30 June 2021 (US$m)2 276
As at 30 June 2020 (ZARm)43 342
As at 30 June 2020 (US$m)2 494
HARMONY ORDINARY SHARES AND ADR PRICES
12-month high (01 July 2020 – 30 June 2021) for ordinary shares (ZAR)
124.95
12-month low (01 July 2020 – 30 June 2021) for ordinary shares (ZAR)
51.88
12-month high (01 July 2020 – 30 June 2021) for ADRs (US$)
7.10
12-month low (01 July 2020 –
30 June 2021) for ADRs (US$)
3.68
FREE FLOAT100 %
American Depositary Receipt (ADR) RATIO1:1
JSE LIMITEDHAR
Average daily volume for the year (1 July 2020 – 30 June 2021)3 816 188
Average daily volume for the previous year (1 July 2019 – 30 June 2020)
3 203 868
NEW YORK STOCK EXCHANGEHMY
Average daily volume for the year (1 July 2020 – 30 June 2021)
6 591 645
Average daily volume for the previous year (1 July 2019 – 30 June 2020)
7 937 641
INVESTORS' CALENDAR
Annual General Meeting
26 November 2021
3

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
OVERVIEW
As we reflect on the past financial year (FY21), the resilience and determination shown throughout the company ensured we achieved our strategic objectives and delivered a stellar set of full-year results. The ongoing Covid-19 pandemic has been unprecedented, yet we adapted to a changed environment. The successful acquisition and integration of Mponeng and related assets are reflecting in our numbers and demonstrates how we have further transformed our earnings profile through the acquisition of high grade assets, while delivering on our strategy of safe, profitable ounces and increasing margins.
The safety and health of our employees and their families remains our top priority. FY21 saw us continue our safety journey to embed a proactive safety culture throughout the company. We also embarked upon a successful Covid-19 vaccination programme in South Africa and Papua New Guinea. In South Africa, four of our facilities having been registered and authorised to store and administer vaccines to our employees and communities and a further six sites awaiting accreditation. We continue to encourage our employees and their families to get vaccinated at one of our vaccination sites and so far, the numbers are encouraging with around 44% of our employees partially vaccinated and 12% fully vaccinated. We expect to reach our goal of 80% by October 2021.
Wage negotiations are still ongoing and we expect to reach an agreement in the first quarter of FY22.
Revenue increased by 43% to a record R41 733 million (US$2 710 million) for FY21 compared to R29 245 million (US$1 867 million) in the 12 months ended 30 June 2020 (FY20). The company realised a net profit of R5 590 million (US$352 million) compared to a net loss of R850 million (US$56 million) in FY20 as a result of a 26% increase in production year-on-year, the provisional gain on bargain purchase and our hedge
position, as well as improved production and a higher average Rand/kg gold price received.
Operating free cash of R6 528 million (US$424 million) for the reporting period allowed us to reduce our net debt by 60% or R819 million (US$41 million) year-on-year, ensuring our balance sheet remains healthy.
Our new assets and strong, flexible balance sheet have presented numerous exciting opportunities for Harmony and we will be focusing on exploration and brownfield projects in order to take advantage of our existing assets and operational leverage.
Through integrated environmental, social and governance (ESG) practices, investment in our people, optimisation of our assets and allocating our capital towards higher quality, longer life assets, we have created value for our shareholders and stakeholders alike.
We are also delighted to declare a full year dividend of 27 SA cents (1.8 US cents) per share as we aim to deliver positive total shareholder returns alongside our growth aspirations, bringing our total dividend for FY21 to 137 SA cents (9.3 US cents).
RESPONSIBLE STEWARDSHIP
Safety and health
Safety is a foundational value at Harmony and safe production at all our operations at all times is
non-negotiable. It is for this reason that the achievement of our third-ever fatality-free quarter was cause for celebration. We have invested in embedding a pro-active culture of safety throughout Harmony and are now in phase 2 of our humanistic transformation journey, which we have aptly named ‘Thibakotsi’, which means ‘to prevent harm’ in Sesotho. Thibakotsi is about understanding the importance of one another, caring for one another and requires a conscious shift in how we think about ourselves and others. Developing safety leadership capabilities, embedding good safety practices, embracing a proactive safety culture, improving employee engagement and learning from incidents are assisting in entrenching safe behaviour within all
our employees and help us achieve our goal of zero loss of life.
The results of our hard work are evident in that the majority of our key safety metrics are trending in the right direction. Our South African operations' lost time injury frequency rate (LTIFR) improved by 3% to 6.46 per million shifts from 6.69 in FY20. Some of the notable milestones we achieved in FY21 include:
•3 382 378 fatality-free shifts achieved across the group in Q4 FY21. This is the highest number of fatality-free shifts in our 71-year history and highlights the progress we are making
•South African operations: achieved 9 million fall of ground fatality-free shifts and 13 million rail bound equipment fatality-free shifts while all of our plants achieved a fatality-free year
•Moab Khotsong: achieved 8 million fall of ground fatality-free shifts
•Masimong and Kalgold: achieved 2 million fatality-free shifts
•Hidden Valley: zero lost time injuries in FY21, 3 million fatality-free shifts
To further assist in ensuring all our work areas are safe at all times, we have introduced a number of initiatives such as standardisation of process maps, missing persons’ locators and electronic reporting to further drive improvements in safety and health. We have appointed risk managers, we conduct triple verification checks and have implemented visuals of global best practice guides throughout our operations. We have an integrated approach to risk management and further digitisation and training will ensure we are aligned to global best practices. These advancements are yielding very good results and will further assist in eliminating fatalities and work-related injuries.
Our new assets have been successfully integrated and Harmony's safety practices have been adopted throughout.
Despite the progress we have made, accidents remain a constant and real threat. Our year-on-year fatality injury frequency rate regressed from 0.08 in FY20 to 0.11 in FY21 which is unacceptable.
It is with great sadness that we report the following colleagues who lost their lives in mine-related incidents in FY21. We pay our respects to Zamokuhle Shabane (team leader, Bambanani), Zakhele Lubisi, (artisan, Kusasalethu), Alexis Lesiamang Ntjantso (driller, Doornkop), Tsoaela Botsane (team leader, Tshepong), Tisetso Pati (winch operator, Tshepong), Rakitsi Seseli (driller, Kusasalethu), Makhetha Allerdice Makobane (driller, Bambanani), Flip Kearabetswe Mahloko (contractor, Free State Surface Operations), Tsietsi Petrus Mateane (driller, Phakisa), Neo Mofokeng (underground assistant, Target 1) and Peter Bangixhanti Fosilara (artisan, Moab Khotsong). We extend our deepest condolences to their families, friends and colleagues.
Covid-19 remains a major focus and is considered a material risk to our business. There is continued coordination from all stakeholders, management and employees towards fighting the pandemic in both South Africa and Papua New Guinea. We are continuing with our initiatives to reduce the spread of Covid-19 infections through implementation of precautionary measures, including education and awareness, improved hygiene and infection control practices. As at 28 August 2021, Harmony had 122 active Covid-19 cases, representing just 0.27% of our workforce. We mourn the loss of 73 of our colleagues to the pandemic and continue to urge all our employees, their families and communities to remain vigilant as we battle the Covid-19 pandemic. Covid-19 standard operating procedures as they relate to mine health and safety, continue to be enforced throughout the company.
In South Africa, we are monitoring incidences on a weekly basis and to date, the number of infections has been lower than those experienced during the second wave. In Papua New Guinea, we are maintaining a high level of on site testing in addition to screening employees at our entry-point centres to prevent as far as possible, any occurrence of Covid-19 on site. We are still maintaining a heightened level of awareness and safety.
In line with the government programme in South Africa, Harmony commenced its vaccine roll-out at our four regional vaccination sites in June this year and we continue to encourage and highlight the importance to our employees to get vaccinated. We
4

are also pleased to report that the testing rates at our sites are above the national and mining sector average. In Papua New Guinea an employee vaccination programme is also being rolled out with support from the National and Provincial Health departments.
While we continue to focus on limiting or eliminating the spread of Covid-19 at all our operations and keeping our employees safe, it is important to emphasise that we have continued with our other healthcare and occupational disease initiatives. We remain committed to providing active healthcare to all our employees, ensuring their wellbeing alongside our management of the pandemic. We have seen the results of the good work being done by our health teams through the low Covid-19 infection rate as well as the strides made in managing other occupational illnesses within our workforce.
ESG
Good governance is overarching and embodies everything we do as a business. Ethical leadership equals ethical mining. We have implemented the necessary governance frameworks to ensure that we are held accountable and deliver on our sustainability targets and ambitions. Our sustainable development strategy is an all-encompassing risk-based strategy – one in which all the components of the business are considered, and the various capitals are weighed up against each other. E, S and G are all interlinked and inform our sustainability framework.
On 22 June 2021, Harmony held its inaugural investor ESG day. The virtual event was streamed via Harmony’s dedicated YouTube channel, ‘Harmony Gold’. The theme for the day was “Who cares, wins” with the key message being that we understand the importance of mining for the future, and as the South African gold mining champion, we have illustrated time and again that sustainability is the driving force of our business.
Our copper-gold aspirations will ensure we continue to deliver on the “E” in ESG while our response to the Covid-19 pandemic, combined with our existing health and wellness initiatives, job creation and enterprise development, clearly demonstrate that the “S” in ESG is part of Harmony’s DNA. Good
governance is non-negotiable and is demonstrated through our transparency and governance structures throughout our company.
Renewable energy and power
We are pleased to report a reduction in our water, energy and emission intensities as a result of our focus on driving efficiencies combined with our sizeable surface source business. In addition, we have embarked on our renewable energy journey which will be rolled out in a phased approach. Our initial phase will see the construction 3 x 10 Megawatts (MW) (30MW) solar plants in the Free State province, with plans in the next phase for an additional 70-80MW of renewable energy over the next 18 months. In addition to these two phases, we have a pipeline of renewable and alternative energy projects in various stages of development.
We have also implemented more than 200 energy savings initiatives which have yielded an estimated savings of R1 billion since 2016 and an energy reduction of approximately 1.3 terawatt hours or 1.2 million tonnes of carbon dioxide.
Climate change and environmental reporting
In October 2021, we will publish our second Task Force for Climate-related Financial Disclosure report alongside our ESG report and as part of our suite of annual reports.
External recognition
Our ESG efforts have resulted in our inclusion in the FTSE4Good Index where we continue to outperform the gold sub-sector and basic metals sector averages.
In FY21, MSCI upgraded Harmony’s score to a ‘B’ rating on the back of our strong governance framework. We were included in the Bloomberg Gender-Equality Index for a third consecutive year as well as the Standard Bank Top gender empowerment company 2021. It is evident from these external recognitions and continual improvements in our ratings that we are committed to a greener and more equitable future, creating and sharing value for all our stakeholders.
OPERATIONAL EXCELLENCE
Operational results for the financial year ended 30 June 2021 (compared to FY20)
We are pleased to report that total gold production for FY21 was 26% higher at 47 755kg (1 535 352oz) compared to 37 863kg (1 217 323 ounces (oz)) in FY20. The higher gold production was in line with guidance and mainly due to the inclusion of Mponeng and related assets into our portfolio. This number was further enhanced as a result of the group achieving its operational plans and regaining mining flexibility at the majority of our mines after the impact of Covid-19.
The newly acquired assets added 8 948kg (287 685oz) in FY21 comprising – 5 446kg or 175 093oz from Mponeng underground, 862kg or 27 714oz from Mponeng surface, 583kg or 18 744oz from Kopanang surface and 2 57kg or 66 134oz from Mine Waste Solutions. Combined, this accounted for 19% of total group production. Mponeng had an excellent performance during the nine months since we took ownership, exceeding expectation across production metrics while the surface dumps also performed well.
The average underground recovered grade increased by 1% to 5.51g/t from 5.45g/t as a result of higher grades achieved at Kusasalethu and Mponeng. Based on underground free cash flow margins, Mponeng (9 months' production), was also our most profitable operation for the reporting period followed by Bambanani and Moab Khotsong, delivering R1 356 million (US$88 million), R448 million (US$29 million) and R1 569 million (US$102 million) in operating free cash at margins of 29%, 27% and 26% respectively.
Production from our surface sources increased by 86% to 8 088kg (260 034oz) in FY21 from 4 349kg (139 823oz) in FY20 due to the contribution of Mine Waste Solutions and the waste rock dumps.
The South African operations are seeing significant improvement in production after all our operations were impacted by the Covid-19 pandemic. We were primarily impacted in FY21 by the reduced flexibility
and the slow start up after the December 2020 break as a result of Covid-19 protocols for our employees from neighbouring countries crossing over the borders into South Africa and Papua New Guinea.
We are pleased to report our operations have regained most of their flexibility and expect to see an improved production at the majority of our underground operations going forward. While Target 1 continues to be a challenge as a result of the dual pillar failures and backfill dilution, we are continuing our capitalisation project to bring the infrastructure closer to the mining areas. Improved production results are expected once these projects are complete and we start mining the higher grade massives again.
Kalgold is also regaining flexibility after the mining of high grade ore was prioritised during the Covid-19 lockdowns.
Hidden Valley’s FY21 gold production declined by 4% to 4 689kg (150 755oz) from 4 872kg (156 639oz) in FY20 while silver production also declined by 32% to 63 482kg or 2 040 994oz from 93 858kg (3 017 620oz). Gold and silver production were negatively impacted by the Covid-19 outbreak and related international travel restrictions and operational constraints in addition to mechanical repairs required for some major infrastructure. Despite these events, production profit was 10% higher driven by a 10% improvement in recovered gold grade to 1.37g/t from 1.25g/t in FY20 and a 12% higher gold price received of R847 027/kg (US$1 711/oz) compared to R757 348/kg (US$1 504/oz) in FY20. Operating free cash flow increased by 28% to R1 117 million (US$73 million) compared to R871 million (US$56 million) in FY20.
Hidden Valley’s mining lease extension was also granted by the Papua New Guinea government for a period of five years and is valid until March 2030. The granting of the mining lease extension affirms Harmony’s well-established relationship with government. The Hidden Valley extension project will result in an extended mine life to 2027 with expected production of 975 000oz of gold and 13 million ounces (Moz) of silver over the life of mine. The project will be cash-flow positive for its duration.
Total cash operating costs for FY21 for total operations increased by 37% to R28 681 million
5

(US$1 862 million) compared to R20 958 million (US$1 338 million) in FY20. The increase of R7 723 million (US$524 million) was driven mainly by the inclusion of Mponeng and related assets which contributed R5 067 million (US$329 million) in new costs. The other major contributors to the production cost increase were labour costs which increased by R1 316 million (US$85 million), consumables which added R629 million (US$41 million), royalties which increased by R266 million (US$17 million) as a result of higher revenues and Covid-19 related expenses which amounted to R290 million (US$19 million).
Group all-in sustaining cost of R723 054/kg (US$1 460/oz) was slightly above our amended guidance for FY21 which was between R700 000/kg and R720 000/kg (US$1 375/oz and US$1 415/oz). This was mainly as a result of lower than expected gold production at Target 1, Joel, Kalgold and Hidden Valley. Group capital expenditure for FY21 increased by 44 % to R5 103 million (US$331 million) from R3 553 million (US$227 million) in FY20 due to the inclusion of Mponeng and related assets and a normalisation of capital expenditure in South Africa and Papua New Guinea.
CASH CERTAINTY
Financial results for the financial year ended 30 June 2021 (compared to FY20)
Revenue
Revenue increased by R12 488 million or 43% to R41 733 million, mainly due to the operational expansion from the acquisition of Mponeng and related assets as well as an increase in the gold price received. The acquired assets contributed R7 920 million while the average gold price received increased by 16% to R851 045/kg from R735 569/kg in FY20. In US dollar terms revenue increased by US$843 million or 45% to US$2 710 million. The average gold price received increased by 18% to US$1 719/oz from US$1 461/oz in FY20.
Production costs
Production costs increased by R7 726 million or 35% to R29 774 million during FY21 predominantly due to the operational expansion as well as annual price increases. In US dollar terms production costs increased by US$524 million or 37% to US$1 933 million.
Impairment of assets
An impairment loss of assets of R1 124 million (US$79 million), attributable to Bambanani, Target 3 and Tshepong, has been recognised for FY21. The recoverable amounts were below their net asset values due to factors such as a lower projected grade and the impact on forecast discounted cash flows. Refer to note 8 in the financial statements.
Gains and expenses included in operating profit
A foreign exchange translation gain of R670 million (US$44 million) compared to a R892 million loss (US$57 million) in FY20 is predominantly caused by favourable translations on US dollar loan balances. The favourable translations on US dollar loans are attributable to the Rand strengthening against the US dollar evidenced by an improved average and closing exchange rate of R15.40/US$1 (FY20: R15.66/US$1) and R14.27/US$1 (FY20: R17.32/US$1) respectively.
Gain on bargain purchase
The fair value of the assets and liabilities from the Mponeng operations and related assets, which have been determined on a provisional basis, exceeded the consideration paid, resulting in a gain on bargain purchase of R1 153 million (US$69 million). The gain has been determined in accordance with the requirements of IFRS 3. Refer to note 13 in the financial statements for further detail.
Taxation
The taxation expense for the group increased to R1 153 million (US$75 million) from R255 million (US$17 million) for FY21. An increase in taxable profits, mainly due to the significant revenue, higher gains on derivatives and increased foreign exchange translation gains has contributed to the increased current tax expense. The deferred tax expense
increase is mainly caused by the utilisation of assessed losses and unredeemed capital expenditure, as well as the impact of tax rate increases on certain statutory companies across the group. Refer to note 6 in the financial statements.
Net profit/(loss)
Harmony’s financial performance reflects a net profit increase of 758% to R5 590 million (US$352 million), compared to a net loss of R850 million (US$56 million) in the previous year. Headline earnings improved to 923 SA cents per share (60 US cents) compared with a headline loss of 154 SA cents (10 US cents) per share for FY20.
Net debt
As at 30 June 2021, net debt decreased by R819 million (US$41 million) to R542 million (US$38 million). The cash generated by operations were more than enough to pay for capital expenditure, a dividend and significantly reduce the group's debt. The reduction in debt as well as the stronger Rand resulted in lower finance costs incurred during FY21 of R228 million (US$15 million) compared with R424 million (US$27 million).
Derivatives and hedging
Harmony continues to enjoy favourable commodity and foreign exchange pricing on the unhedged portion of its exposure, while locking in higher prices as part of its derivative programme when available. The current period records a net gain on derivatives of R1 022 million (US$66 million) compared to a net loss of R1 678 million (US$107 million) in FY20 as a consequence of the Rand strengthening against the US dollar during FY21.
Derivatives recorded a net realised cash outflow of R2 544 million (US$165 million) in FY21, principally due to a R2 210 million (US$143 million) cash outflow on Rand/gold derivatives. Revenue includes a hedging loss of R2 296 million (US$149 million) in FY21 and R1 397 million (US$89 million) in FY20 relating to the realised effective portion of hedge-accounted gold derivatives.
The derivative programme stood at a net positive value of R1 587 million (US$111 million) as at
30 June 2021, mainly due to hedging done during the first half of the financial year when the gold price was higher and we could lock in a margin of in excess of 25% above cost.
Refer to notes 3 and 10 in the financial statements for details on the derivative programme.
EFFECTIVE CAPITAL ALLOCATION
Investing in growth
Our strategic objective of producing safe profitable ounces is underpinned by our four strategic pillars which are responsible stewardship, operational excellence, cash certainty and effective capital allocation. The solid FY21 performance was a result of successful execution across all of these pillars.
One of the key events during FY21 was the successful acquisition and integration of Mponeng and related assets. This transaction, along with the acquisition of Moab Khotsong in 2018, was strategically important and set Harmony on a new growth trajectory. We improved the profitability and grade of our underground portfolio and managed to expand our surface source business, while at the same time adding life of mine and identifying value enhancing brownfield opportunities. The payback on Moab Khotsong was less than three years and we anticipate another quick payback for Mponeng and related assets due to the strong free cash generated. Another key milestone was reached in Q4 FY21, as the payback of the US$175 million Hidden Valley reinvestment project, undertaken during FY16 was achieved.
We have concluded our life of mine planning process for the existing and new operations and have concluded our reconciliation and assessment of the mineral reserves and resources based on updated models and the new life of mine plan. Below infrastructure areas at Mponeng are being reassessed and new project studies will be commissioned to evaluate the economic viability of these blocks of ground. We have therefore made adjustments to the reserves and resources originally published by AngloGold Ashanti Limited at the end of 2019 and factored these into our life of mine plans.
6

Despite these reconciliations, the company’s attributable gold and gold equivalent mineral resources are now declared as 141.2Moz as at 30 June 2021, a 19.12% increase year-on-year from the 118.6Moz declared as at 30 June 2020. The total gold contained in the mineral resources at the South African operations represents 70.8% of the company total, with the Papua New Guinea operations representing 29.2% of Harmony’s total gold and gold equivalent mineral resources as at 30 June 2021.
Harmony’s attributable gold and gold equivalent mineral reserves amounts to 42.45Moz, a 16.32% increase from the 36.49Moz declared at 30 June 2020. The gold reserve ounces in South Africa represent 58.3% while the Papua New Guinea gold and gold equivalent reserve ounces represent 41.7% of Harmony’s total mineral reserves as at 30 June 2021.
In addition to the acquisitions, FY21 brought with it some other opportunities as the increased production alongside a higher gold price enabled Harmony to reduce net debt, creating a robust and flexible balance sheet which is well positioned for growth. While value-accretive acquisitions will remain part of our strategy, we will only pursue mergers and acquisitions in continental Africa and South East Asia if it makes strategic and financial sense.
Projects
We have identified substantial opportunities in our existing portfolio through exploration and brownfield projects which will extend the life of some of our larger and higher-grade assets, adding lower-risk, higher-margin ounces to Harmony's portfolio. Each project brings multiple benefits to Harmony and exceeds all our minimum criteria for allocating capital. We will continue to focus on ensuring all our mines operate safely and optimally and will continue investing across all our operations to ensure optimal production.
The salient features of our key projects are:
a.Zaaiplaats project: Zaaiplaats is located to the south west of the Moab Khotsong mine in South Africa and has significant resources of 3.5Moz below the last infrastructure level. This project is expected to produce over 200 000
ounces per annum and add 24 years’ life of mine at a yield of approximately 9g/t and an estimated, real all-in sustaining cost of R512 300/kg. The major capital expenditure will be funded by Moab Khotsong. There are significant benefits to pursuing this project such as leveraging existing infrastructure, increasing ounces and sustaining jobs. Harmony has proven its ability to extract value and add life of mine time and again throughout its 71-year history
b.Mine Waste Solutions: This operation was acquired in October 2020 and is a reclamation operation in the Stilfontein/Orkey area in the North West province, and treats 2.2 million tonnes per month from historical tailings facilities through the Mine Waste Solution plant. Residue is then deposited on the existing Kareerand Tailings Storage Facility. However, this facility is running out of tailings deposition capacity. The project will require major capital to extend the existing deposition site to enable the full development of our tailings resource in the region. This project will be funded out of group cash and will deliver excellent cash flow margins once this project is completed and the Franco-Nevada streaming agreement comes to an end. This project is expected to produce approximately 100 000 ounces of gold per annum and add 16 years' life of mine at an estimated all-in sustaining cost of R572 000/kg over the life of mine
c.Hidden Valley extension: This project in Papua New Guinea will be self-funded and will extend the life of mine to 2027. We expect the project to deliver approximately 160 000-200 000oz of gold per annum and 2.1-3.1Moz of silver per annum at a life of mine all-in sustaining cost of $1 017/oz
d.Other projects already in execution: These include the Doornkop levels 207 and 212 mining and engineering infrastructure upgrade, the Tshepong sub-75 development, the Target 1 re-capitalisation and decline development as well as our renewable energy projects (which are expected to realise significant energy savings)
Wafi-Golpu project
Harmony is committed to realising its aspiration of being a specialist emerging market copper-gold producer. In December 2020, following a rigorous environmental impact assessment, the Environmental Permit for the Wafi-Golpu project was approved by the Papua New Guinean Conservation and Environment Protection Authority and issued by the Director of Environment.
The Environmental Permit is required under the Papua New Guinean Environment Act and is a prerequisite for the grant of a Special Mining Lease under the Mining Act. Harmony, together with its Wafi-Golpu Joint Venture partner Newcrest Mining Limited, is currently engaging with the State of Papua New Guinea to progress permitting of the Wafi-Golpu Project and has commenced discussions with the State in relation to the Special Mining Lease.
The Wafi-Golpu Joint Venture Social License to Operate is in good standing and continues to receive support from the Project Impact Area communities, including the various coastal communities.
During the quarter, several meetings took place between the Prime Minister, Deputy Prime Minister and the Wafi-Golpu Joint Venture proponents on the resumption of the permitting process, with the Prime Minister expressing his government’s desire to have it expedited.
Final dividend
In line with our existing dividend policy, and following on the payment of an interim dividend in April 2021, we are pleased to announce that Harmony has declared a final dividend of 27 SA cents (1.8 US cents) per share on the back of our reduction in net debt and strong free cash flow. This, in addition to the interim dividend paid, translates to a full year dividend yield of approximately 2.4% based on our recent share price.
The decision to pay a dividend is made on the basis that it will be sustainable and will not inhibit future expansion opportunities. When declaring a dividend, the board of directors takes the following into account: the dividend will be 20% of net free cash subject to future major capital expenditure, net debt
to EBITDA not being greater than 1.0x, solvency and liquidity requirements in line with the South Africa Companies Act and current banking covenants.
FY22 GROUP PRODUCTION AND COST GUIDANCE
Production guidance for FY22 is estimated to be between 1.547Moz and 1.630Moz at an all-in sustaining cost of between R765 000/kg to R800 000/kg. Underground recovered grade is planned to be about 5.40g/t to 5.57g/t.
CONCLUSION
As the largest gold producer in South Africa by volume, we embrace a moral obligation to not only ensure the well-being and safety of our people, but also that the value created by our operations extends to all our stakeholders and shareholders. We have shown in both South Africa and Papua New Guinea that we are able to create significant value through the effective allocation of capital to existing assets while further optimising and improving productivity across our entire portfolio.
By re-engineering our portfolio and deleveraging our balance sheet, we have created optionality for the business.
Harmony is more than just mining, we are about people. We are committed to creating opportunities through sustainable mining, while enhancing the returns for our shareholders and stakeholders.


Peter Steenkamp
Chief Executive Officer
7

NOTICE OF FINAL GROSS CASH DIVIDEND
Our dividend declaration for the six months ended 30 June 2021 is as follows:
Declaration of final gross cash ordinary dividend no. 90
The Board has approved, and notice is hereby given, that a final gross cash dividend of 27 SA cents (1.8 US cents*) per ordinary share in respect of the six months ended 30 June 2021, has been declared payable to the registered shareholders of Harmony on Monday, 18 October 2021.
In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE Listings Requirements, the following additional information is disclosed:
•The dividend has been declared out of income reserves;
•The local Dividend Withholding Tax rate is 20% (twenty percent);
•The gross local dividend amount is 27.00000 SA cents (1.83423 cents*) per ordinary share for shareholders exempt from the Dividend Withholding Tax;
•The net local dividend amount is 21.60000 SA cents per ordinary share for shareholders liable to pay the Dividend Withholding Tax;
•Harmony currently has 616 052 197 ordinary shares in issue (which includes 5 941 462 treasury shares); and
•Harmony’s income tax reference number is 9240/012/60/0.
A dividend No. 90 of 27.00000 SA cents (US 1.83423 cents*) per ordinary share, being the dividend for the six months ended 30 June 2021, has been declared payable on Monday 18 October 2021 to those shareholders recorded in the books of the company at the close of business on Friday, 15 October 2021. The dividend is declared in the currency of the Republic of South Africa. Any change in address or dividend instruction to apply to this dividend must be received by the company’s transfer secretaries or registrar not later than Friday, 8 October 2021.
Dividends received by non-resident shareholders will be exempt from income tax in terms of section 10(1)(k)(i) of the Income Tax Act. The dividends withholding tax rate is 20%, accordingly, any dividend will be subject to dividend withholding tax levied at a rate of 20%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation (“DTA”) between South Africa and the country of residence of the shareholder.
Should dividend withholding tax be withheld at a rate of 20%, the net dividend amount due to non-resident shareholders is 21.60000 SA cents per share. A reduced dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident shareholder has provided the following forms to their CSDP or broker, as the case may be in respect of uncertificated shares or the company, in respect of certificated shares:
(a)    a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
(b)    a written undertaking to inform the CSDP or broker, as the case may be, should the circumstances affecting the reduced rate change or the beneficial owner ceases to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident shareholders are advised to contact their CSDP or broker, as the case may be, to arrange for the abovementioned documents to be submitted prior to the payment of the distribution if such documents have not already been submitted.
In compliance with the requirements of Strate Proprietary Limited (Strate) and the JSE Listings Requirements, the salient dates for payment of the dividend are as follows:
Last date to trade ordinary shares cum-dividend isTuesday, 12 October 2021
Ordinary shares trade ex-dividendWednesday, 13 October 2021
Record dateFriday, 15 October 2021
Payment dateMonday, 18 October 2021
No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 13 October 2021 and Friday, 15 October 2021, both dates inclusive, nor may any transfers between registers take place during this period.
On payment date, dividends due to holders of certificated securities on the SA share register will either be electronically transferred to such shareholders' bank accounts or, in the absence of suitable mandates, dividends will be held in escrow by Harmony until suitable mandates are received to electronically transfer dividends to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to such shareholders' accounts with the relevant Central Securities Depository Participant (CSDP) or broker.
The holders of American Depositary Receipts (ADRs) should confirm dividend details with the depository bank. Assuming an exchange rate of R14.72/US$1* the dividend payable on an ADR is equivalent to US 1.83423 cents for ADR holders before dividend tax. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.
*Based on an exchange rate of R14.72/US$1 at 27 August 2021. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.
8

SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES
Harmony’s statement of mineral resources and mineral reserves as at 30 June 2021 is produced in accordance with the South African Code for the Reporting of 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 Report on 27 October 2021, 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 2021.
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 27 October 2021.
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 quality 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. In FY21, Harmony acquired the remainder of the AngloGold Ashanti South African assets – Mponeng and related assets.

Harmony – Total
The company’s attributable gold and gold equivalent mineral resources are declared as 141.2Moz as at 30 June 2021, a 19% increase year-on-year from the 118.6Moz declared as at 30 June 2020. The total gold contained in the mineral resources at the South African operations represents 71% of the company total, with the Papua New Guinea operations representing 29% of Harmony’s total gold and gold equivalent mineral resources as at 30 June 2021.
Harmony’s attributable gold and gold equivalent mineral reserves amounts to 42.5Moz, a 16% increase from the 36.5Moz declared at 30 June 2020. The gold reserve ounces in South Africa represent 58%, while the Papua New Guinea gold and gold equivalent ounces represent 42% of Harmony’s total mineral reserves as at 30 June 2021.
South Africa
South African underground operations
The company’s mineral resources at the South African underground operations as at 30 June 2021 are 84.0Moz (262.1Mt at 9.96g/t), an increase of 33% year-on-year from the 62.9Moz (214.8Mt at 9.10g/t) declared as at 30 June 2020. This increase is mainly due to additional mineral resources from the Mponeng acquisition.
The company’s mineral reserves at the South African underground operations as at 30 June 2021 are 14.3Moz (70.46Mt at 6.31g/t), an increase of 33% year-on-year from the 10.8Moz (56.95Mt at 5.87g/t) declared as at 30 June 2020. The increase in ounces is mainly due to the reserves added from the Mponeng acquisition and inclusion of the Zaaiplaats project at Moab Khotsong.
South African surface operations, including Kalgold
The company’s mineral resources at the South African surface operations as at 30 June 2021 are 16.0Moz (1 769.9Mt at 0.28g/t) an increase of 53% mainly due to the acquisition of AngloGold Ashanti South African surface sources.
The company’s mineral reserves after normal depletion at the South African surface operations as at 30 June 2021 are 10.4Moz (1 236.6Mt at 0.26g/t), an increase of 57% due to the acquisition of AngloGold Ashanti South African surface sources.
Papua New Guinea
Papua New Guinea operations
The company’s attributable gold and gold equivalent mineral resources at the Papua New Guinea operations as at 30 June 2021 are 41.3Moz, a decrease of 9% year-on-year from the 45.4Moz declared as at 30 June 2020. This decrease is mainly due to a new resource model at Hidden Valley (Kaveroi), commodity price ratio changes affecting the gold equivalent ounces negatively, and depletion.
The company’s gold and gold equivalent mineral reserves at the Papua New Guinea operations as at 30 June 2021 are 17.7Moz, a decrease of 7.3% year-on-year from the 19.1Moz declared as at 30 June 2020. The decrease is mainly due to depletion and a change in the commodity price ratios. There was a year-on-year increase of 0.5Moz of gold reserves at Hidden valley due to the addition of Stage 8 to the life of mine plan.
ASSUMPTIONS
In converting the mineral resources to mineral reserves, the following commodity prices and exchange rates were applied:
•A gold price of US$1 500/oz
•An exchange rate of R/US$14.51
•The above parameters resulted in a Rand/kg gold price of R700 000/kg for the South African assets
•The Hidden Valley mine and the Wafi-Golpu project used commodity prices of US$1 500/oz Au, US$20.70/oz Ag, US$10.00/lb Mo and US$3.00/lb Cu at an exchange rate of AUD1.39 per US$
•Gold equivalent ounces are calculated assuming US$1 500/oz Au, US$3.00/lb Cu and US$20.70/oz Ag, and assuming a 100% recovery for all metals
9

SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES continued
Independent review
Harmony’s South African mineral resources and reserves at Doornkop and Mponeng 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 equivalentsMeasuredIndicatedInferredTotal
Tonnes
(Mt)
g/tGold
 ‘000oz
Tonnes
(Mt)
g/tGold
‘000oz
Tonnes
(Mt)
g/tGold
‘000oz
Tonnes
(Mt)
g/tGold
‘000oz
SA underground
74.2 8.93 21 301 88.6 10.50 29 909 99.3 10.25 32 746 262.1 9.96 83 957 
SA surface including Kalgold
337.1 0.27 2 968 1 368.6 0.28 12 361 63.3 0.32 642 1 769.0 0.28 15 971 
Total South Africa
411.3 24 268 1 457.1 42 271 162.6 33 389 2 031.1 99 928 
Hidden Valley
3.4 0.95 103 55.9 1.44 2 585 1.6 1.11 57 60.9 1.40 2 746 
Wafi-Golpu system*
— — — 394.0 0.86 10 800 114.0 0.75 2 700 508.0 0.82 13 400 
Kili Teke
— — — — — — 237.0 0.24 1 810237.0 0.24 1 810 
Total Papua New Guinea
3.4 103 449.9 13 385 352.6 4 567 805.9 17 956 
Total gold resources
414.7 24 372 1 907.1 55 656 515.2 37 956 2 837.0 117 884 
Hidden Valley – gold equivalent ounces
3.4 26 54.1 534 1.4 13 58.9 573 
Wafi-Golpu – gold equivalent ounces*
— — 340.0 16 482 94.0 2 755 434.0 19 237 
Kili Teke – gold equivalent ounces
— — — — 237.0 3 538 237.0 3 538 
Total gold equivalent resources**
3.4 26 394.1 17 016 332.4 6 306 729.8 23 347 
Total Harmony gold and gold equivalent resources**
414.7 24 398 1 907.1 72 672 515.2 44 262 2 837.0 141 231 
Mineral resources:
Silver and copper (used in equivalent calculations)		MeasuredIndicatedInferredTotal
Tonnes
(Mt)
g/tSilver
‘000oz
Tonnes
(Mt)
g/tSilver
‘000oz
Tonnes
(Mt)
g/tSilver
‘000oz
Tonnes
(Mt)
g/tSilver
‘000oz
Hidden Valley
3.4 17.3 1 886 54.1 22.3 38 682 1.4 20.6 941 58.9 21.9 41 508 
MeasuredIndicatedInferredTotal
Tonnes
(Mt)
%Copper
‘Mlb
Tonnes
(Mt)
%Copper
‘Mlb
Tonnes
(Mt)
%Copper
‘Mlb
Tonnes
(Mt)
%Copper
‘Mlb
Golpu*
— — — 340.0 1.1 8 250 70.0 0.9 1 250 410.0 1.0 9 500 
Nambonga*
— — — — — — 24.0 0.2 104 24.0 0.2 104 
Kili Teke
— — — — — — 237.0 0.3 1 767237.0 0.3 1 767 
Total
— — — 340.0 1.1 8 250 331.0 0.4 3 120 671.0 0.8 11 370 

10

SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES continued

Mineral reserves:
Gold and gold equivalents
ProvedProbableTotal
Tonnes
(Mt)
g/tGold
‘000oz
Tonnes
(Mt)
g/tGold
‘000oz
Tonnes
(Mt)
g/tGold
‘000oz
SA underground
39.6 5.85 7 453 30.8 6.91 6 846 70.5 6.31 14 299 
SA surface including Kalgold
207.2 0.28 1 890 1 029.4 0.26 8 550 1 236.6 0.26 10 440 
Total South Africa246.8 9 343 1 060.3 15 397 1 307.1 24 739 
Hidden Valley
3.4 0.95 103 20.1 1.59 1 030 23.5 1.5 1 134 
Wafi-Golpu system*
200.0 0.86 5 500 200.0 0.86 5 500 
Total Papua New Guinea
3.4 103 220.1 6 530 223.5 6 634 
Total gold reserves
250.2 9 446 1 280.4 21 927 1 530.6 31 373 
Hidden Valley – gold equivalent ounces
3.4 26 19.9 240 23.3 266 
Wafi-Golpu – gold equivalent ounces*
200.0 10 814 200.0 10 814 
Total gold equivalent reserves**
3.4 26 219.9 11 054 223.3 11 080 
Total Harmony gold and gold equivalent reserves**
250.2 9 472 1 280.4 32 981 1 530.6 42 453 
Mineral reserves:
Silver and copper (used in equivalent calculations)
ProvedProbableTotal
Tonnes
(Mt)
g/tSilver
‘000oz
Tonnes
(Mt)
g/tSilver
‘000oz
Tonnes
(Mt)
g/tSilver
‘000oz
Hidden Valley
3.4 17.31 1 886 19.9 27.18 17 363 23.3 25.75 19 249 
ProvedProbableTotal
Tonnes
(Mt)
%Copper
‘Mlb
Tonnes
(Mt)
%Copper
‘Mlb
Tonnes
(Mt)
%Copper
‘Mlb
Golpu*— — — 200 1.20 5 400 200 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
Note: Rounding of numbers may result in slight computational discrepancies

11

SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES continued
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 FY21 exploration programme include:
•brownfield exploration at Hidden Valley and Kalgold to optimise existing open pit operations and extend mine life and
•brownfield exploration at our underground operations in South Africa
•greenfields exploration at Target North
•reviewing exploration opportunities as part of our new business strategy
During the year these work streams continued to be impacted as a result of the global Covid-19 pandemic, with some work programmes suspended in the interest of the health and safety of our employees and the host communities we work in, and to preserve capital during these challenging times.
A detailed report of the Exploration Results will be provided as part of the suite of annual reports to be published on 27 October 2021.

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 of 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.
12

OPERATING RESULTS – YEAR ON YEAR (RAND/METRIC)
Year
ended		SOUTH AFRICA
UNDERGROUND PRODUCTION
Tshepong
Operations		Moab
Khotsong		MponengBambananiJoelDoornkopTarget 1KusasalethuMasimongUniselTOTAL
UNDER-
GROUND
Ore milled- t'000Jun-211 558903683227359851488708510576 344
Jun-201 41774602003496815436154892195 259
Yield- g/tonneJun-214.767.947.978.783.974.313.285.653.954.335.51
Jun-205.158.840.0010.663.994.404.134.904.094.485.45
Gold produced- kgJun-217 4197 1665 4461 9921 4243 6701 6033 9992 01224734 978
Jun-207 2936 59202 1321 3912 9942 2443 0151 99998228 642
Gold sold- kgJun-217 3537 0955 2991 9751 4143 6031 6193 9801 99324234 573
Jun-207 3996 79902 1621 4123 0382 2373 0852 02799429 153
Gold price received- R/kgJun-21845 031852 392896 474854 392848 131853 957870 640854 201820 780925 979857 441
Jun-20736 863736 533—735 972734 620747 282681 388743 153691 282684 727729 159
Gold revenue¹(R'000)Jun-216 213 5126 047 7214 750 4161 687 4251 199 2573 076 8071 409 5663 399 7181 635 815224 08729 644 324
Jun-205 452 0515 007 690—1 591 1721 037 2832 270 2441 524 2662 292 6271 401 229680 61921 257 181
Cash operating cost
(net of by-product credits)		(R'000)Jun-214 919 0233 846 0632 901 6961 168 4841 134 9022 185 6701 662 4962 969 0651 440 261178 15422 405 814
Jun-204 251 9483 282 504—1 024 682998 7711 699 4911 504 9322 562 0921 240 988572 77517 138 183
Inventory movement(R'000)Jun-21(54 316)(3 609)36 298(12 789)(10 911)(46 133)4 702(13 651)(13 465)3 679(110 195)
Jun-2046 29161 007—15 44511 26530 661(5 754)15 05417 0887 503198 560
Operating costs(R'000)Jun-214 864 7073 842 4542 937 9941 155 6951 123 9912 139 5371 667 1982 955 4141 426 796181 83322 295 619
Jun-204 298 2393 343 511—1 040 1271 010 0361 730 1521 499 1782 577 1461 258 076580 27817 336 743
Production profit(R'000)Jun-211 348 8052 205 2671 812 422531 73075 266937 270(257 632)444 304209 01942 2547 348 705
Jun-201 153 8121 664 179—551 04527 247540 09225 088(284 519)143 153100 3413 920 438
Capital expenditure(R'000)Jun-211 111 907632 578492 52171 195172 120425 312368 414204 97229 331—3 508 350
Jun-20929 680497 628—49 880150 893280 694346 833188 38423 7777 4872 475 256
Cash operating costs- R/kgJun-21663 030536 710532 812586 588796 982595 5501 037 115742 452715 835721 271640 569
Jun-20583 018497 953—480 620718 024567 632670 647849 782620 804583 274598 358
Cash operating costs- R/tonneJun-213 1574 2594 2485 1483 1612 5683 4074 1942 8243 1263 532
Jun-203 0014 400—5 1232 8622 4962 7724 1662 5382 6153 259
Cash operating cost and Capital- R/kgJun-21812 903624 985623 250622 329917 853711 4391 266 943793 708730 414721 271740 870
Jun-20710 493573 442—504 016826 502661 384825 207912 264632 699590 898684 779
All-in sustaining cost- R/kgJun-21815 333626 795659 760641 426936 296680 5241 232 098814 048764 577782 126749 971
Jun-20713 202566 942—522 990826 970649 041817 066923 054655 888613 382686 598
Operating free cash flow margin²%Jun-213 %26 %29 %27 %(9)%15 %(44)%7 %10 %20 %13 %
Jun-205 %25 %— %32 %(11)%13 %(21)%(20)%10 %15 %8 %

13

Year
ended		SOUTH AFRICAHidden
Valley		TOTAL
HARMONY
SURFACE PRODUCTIONTOTAL
SOUTH
AFRICA
Mine waste solutionsPhoenixCentral
plant
reclamation		DumpsKalgoldTOTAL
SURFACE
Ore milled- t'000Jun-2117 6656 1904 02010 1071 50739 48945 8333 42049 253
Jun-2006 2274 0204 4761 54116 26421 5233 90625 429
Yield- g/tonneJun-210.1160.1260.1400.3540.740.200.941.370.97
Jun-200.0000.1310.1550.3920.750.271.531.251.49
Gold produced- kgJun-212 0577795633 5801 1098 08843 0664 68947 755
Jun-2008186251 7531 1534 34932 9914 87237 863
Gold sold- kgJun-212 0437775663 5271 1128 02542 5984 75547 353
Jun-2008236251 7801 1514 37933 5324 94938 481
Gold price received- R/kgJun-21729 882798 310851 505872 960859 070825 869851 494847 027851 045
Jun-20—715 787749 216779 835742 533753 623732 354757 348735 569
Gold revenue¹(R'000)Jun-211 888 528620 287481 9523 078 929955 2867 024 98236 669 3064 027 61540 696 921
Jun-20—589 093468 2601 388 107854 6563 300 11624 557 2973 748 11728 305 414
Cash operating cost
(net of by-product credits)		(R'000)Jun-211 035 977395 858270 7892 126 639775 7974 605 06027 010 8741 670 37628 681 250
Jun-20—363 169233 624853 347673 6032 123 74319 261 9261 695 71920 957 645
Inventory movement(R'000)Jun-21101 237(2 601)56219 752146119 0968 90148 42057 321
Jun-20—2 7228157 316(1 834)9 019207 579(56 565)151 014
Operating costs(R'000)Jun-211 137 214393 257271 3512 146 391775 9434 724 15627 019 7751 718 79628 738 571
Jun-20—365 891234 439860 663671 7692 132 76219 469 5051 639 15421 108 659
Production profit(R'000)Jun-21751 314227 030210 601932 538179 3432 300 8269 649 5312 308 81911 958 350
Jun-20—223 202233 821527 444182 8871 167 3545 087 7922 108 9637 196 755
Capital expenditure(R'000)Jun-2169 9583 90912 75139 264208 265334 1473 842 4971 260 2985 102 795
Jun-20—6 88311 8751 76098 598119 1162 594 372959 1413 553 513
Cash operating costs- R/kgJun-21503 635508 162480 975594 033699 546569 369627 197356 233600 592
Jun-20—443 972373 798486 792584 218488 329583 854348 054553 513
Cash operating costs- R/tonneJun-21596467210515117589488582
Jun-20—5858191437131895434824
Cash operating cost and Capital- R/kgJun-21537 645513 180503 623605 001887 342610 683716 421625 010707 445
Jun-20—452 386392 798487 796669 732515 718662 493544 922647 364
All-in sustaining cost- R/kgJun-21601 978511 946501 947619 692905 253636 015728 121677 659723 054
Jun-20—453 937389 611484 507690 239519 293664 451562 648651 356
Operating free cash flow margin²%Jun-2126 %36 %41 %30 %(4)%25 %15 %28 %16 %
Jun-20— %37 %48 %38 %10 %32 %11 %23 %13 %
¹Includes a non-cash consideration to Franco-Nevada (Jun-21:R397.380m, Jun-20:R.m), excluded from the gold price calculation
²Excludes run of mine costs for Kalgold (Jun-21:-R7.439m, Jun-20:R1.204m) and Hidden Valley (Jun-21:R19.561m, Jun-20:-R222.416m)

14

OPERATING RESULTS – YEAR ON YEAR (US$/IMPERIAL)
Year
ended		SOUTH AFRICA
UNDERGROUND PRODUCTION
Tshepong
Operations		Moab
Khotsong		MponengBambananiJoelDoornkopTarget 1KusasalethuMasimongUniselTOTAL
UNDER-
GROUND
Ore milled- t'000Jun-211 718995753250396938537780563636 993
Jun-201 56282202213847505986785392425 796
Yield- oz/tonJun-210.1390.2320.2330.2560.1160.1260.0960.1650.1150.1260.161
Jun-200.1500.2580.0000.3100.1160.1280.1210.1430.1190.1300.159
Gold produced- ozJun-21238 526230 391175 09264 04445 783117 99351 536128 57064 6877 9411 124 563
Jun-20234 475211 938068 54544 72296 25972 14696 93464 26931 573920 861
Gold sold- ozJun-21236 404228 109170 36763 49845 461115 83952 052127 95964 0767 7801 111 545
Jun-20237 882218 592069 51045 39797 67371 92199 18565 16931 958937 287
Gold price received- $/ozJun-211 7071 7221 8111 7261 7131 7251 7581 7251 6581 8701 732
Jun-201 4631 46301 4611 4591 4841 3531 4761 3731 3601 448
Gold revenue¹($'000)Jun-21403 475392 709308 469109 57377 874199 79391 530220 761106 22214 5511 924 957
Jun-20348 078319 7080101 58666 224144 94097 314146 36989 45943 4531 357 131
Cash operating cost
(net of by-product credits)		($'000)Jun-21319 417249 744188 42175 87673 695141 926107 954192 79793 52411 5681 454 922
Jun-20271 459209 567065 41963 765108 50296 080163 57379 22936 5681 094 162
Inventory movement($'000)Jun-21(3 527)(234)2 357(830)(709)(2 996)305(886)(874)239(7 155)
Jun-202 9553 89509867191 958(367)9611 09147912 677
Operating costs($'000)Jun-21315 890249 510190 77875 04672 986138 930108 259191 91192 65011 8071 447 767
Jun-20274 414213 462066 40564 484110 46095 713164 53480 32037 0471 106 839
Production profit($'000)Jun-2187 585143 199117 69134 5274 88860 863(16 729)28 85013 5722 744477 190
Jun-2073 664106 246035 1811 74034 4801 601(18 165)9 1396 406250 292
Capital expenditure($'000)Jun-2172 20241 07631 9824 62211 17827 61823 92313 3111 904—227 816
Jun-2059 35531 76903 1859 63417 92122 14412 0271 518478158 031
Cash operating cost- $/ozJun-211 3391 0841 0761 1851 6101 2032 0951 5001 4461 4571 294
Jun-201 15898909541 4261 1271 3321 6871 2331 1581 188
Cash operating costs- $/tJun-21186251250304186151201247166184208
Jun-201742550296166145161241147151189
Cash operating cost and Capital- $/ozJun-211 6421 2621 2591 2571 8541 4372 5591 6031 4751 4571 496
Jun-201 4111 13901 0011 6411 3131 6391 8121 2561 1731 360
All-in sustaining cost- $/ozJun-211 6471 2661 3331 2951 8911 3742 4881 6441 5441 5801 515
Jun-201 4161 12601 0391 6421 2891 6231 8331 3021 2181 363
Operating free cash flow margin²%Jun-213 %26 %29 %27 %(9)%15 %(44)%7 %10 %20 %13 %
Jun-205 %25 %— %32 %(11)%13 %(21)%(20)%10 %15 %8 %


15

OPERATING RESULTS – YEAR ON YEAR (US$/IMPERIAL)
Year
ended		SOUTH AFRICAHidden
Valley		TOTAL
HARMONY
SURFACE PRODUCTIONTOTAL
SOUTH
AFRICA
Mine waste SolutionsPhoenixCentral
plant
reclamation		DumpsKalgoldTOTAL
SURFACE
Ore milled- t'000Jun-2119 4796 8274 43411 1451 66243 54750 5403 77254 312
Jun-2006 8664 4334 9361 70017 93523 7314 30728 038
Yield- oz/tonJun-210.0030.0040.0040.0100.0210.0060.0270.0400.028
Jun-200.0000.0040.0050.0110.0220.0080.0450.0360.043
Gold produced- ozJun-2166 13325 04618 101115 09935 655260 0341 384 597150 7551 535 352
Jun-20026 29920 09456 36037 070139 8231 060 684156 6391 217 323
Gold sold- ozJun-2165 68424 98218 197113 39535 752258 0101 369 555152 8761 522 431
Jun-20026 45920 09357 22937 006140 7871 078 074159 1131 237 187
Gold price received- $/ozJun-211 4741 6121 7201 7631 7351 6681 7201 7111 719
Jun-2001 4211 4881 5491 4741 4971 4541 5041 461
Gold revenue¹($'000)Jun-21122 63240 27831 296199 93062 032456 1682 381 125261 5332 642 658
Jun-20037 61029 89588 62254 564210 6911 567 822239 2931 807 115
Cash operating cost
(net of by-product credits)		($'000)Jun-2167 27225 70517 583138 09450 376299 0301 753 952108 4661 862 418
Jun-20023 18614 91554 48043 006135 5871 229 749108 2601 338 009
Inventory movement($'000)Jun-216 574(169)361 28397 7335783 1443 722
Jun-20017452467(117)57613 253(3 611)9 642
Operating costs($'000)Jun-2173 84625 53617 619139 37750 385306 7631 754 530111 6101 866 140
Jun-20023 36014 96754 94742 889136 1631 243 002104 6491 347 651
Production profit($'000)Jun-2148 78614 74213 67760 55311 647149 405626 595149 923776 518
Jun-20014 25014 92833 67511 67574 528324 820134 644459 464
Capital expenditure($'000)Jun-214 5432548282 55013 52421 699249 51581 838331 353
Jun-2004397581126 2947 603165 63461 236226 870
Cash operating cost- $/ozJun-211 0171 0269711 2001 4131 1501 2677191 213
Jun-2008827429671 1609701 1596911 099
Cash operating costs- $/tJun-2134412307352934
Jun-2003311258522548
Cash operating cost and Capital- $/ozJun-211 0861 0361 0171 2221 7921 2331 4471 2621 429
Jun-2008987809691 3301 0241 3161 0821 286
All-in sustaining cost- $/ozJun-211 2161 0341 0141 2521 8281 2851 4711 3831 460
Jun-2009017749621 3711 0311 3191 1201 293
Operating free cash flow margin²%Jun-2126 %36 %41 %30 %(4)%25 %15 %28 %16 %
Jun-20— %37 %48 %38 %10 %32 %11 %23 %13 %
¹Includes a non-cash consideration to Franco-Nevada (Jun-21:US$25.804m, Jun-20:US$0m), excluded from the gold price calculation
²Excludes run of mine costs for Kalgold (Jun-21:-US$0.483m, Jun-20:US$0.077m) and Hidden Valley (Jun-21:US$1.270m, Jun-20:-US$14.200m).
16

finalreviewreport-harmonyf.jpg
17

CONDENSED CONSOLIDATED INCOME STATEMENT (RAND)
Year ended
Figures in millionNotes30 June 2021

(Reviewed)		30 June 2020
Re-presented
(Audited)
Revenue341 733 29 245 
Cost of sales4(35 657)(25 908)
Production costs(29 774)(22 048)
Amortisation and depreciation(3 893)(3 508)
Impairment of assets(1 124)— 
Other items(866)(352)
Gross profit6 076 3 337 
Corporate, administration and other expenditure5(1 068)(611)
Exploration expenditure(177)(205)
Gains/(losses) on derivatives101 022 (1 678)
Foreign exchange translation gain/(loss)
1 & 11
670 (892)
Other operating expenses
1 & 13
(562)(309)
Operating profit/(loss)5 961 (358)
Gain on bargain purchase131 153 — 
Acquisition-related costs13(124)(45)
Share of profits from associates83 94 
Investment income9331 375 
Finance costs5(661)(661)
Profit/(loss) before taxation6 743 (595)
Taxation6(1 153)(255)
Current taxation(543)(58)
Deferred taxation(610)(197)
Net profit/(loss) for the year5 590 (850)
Attributable to:
Non-controlling interest37 28 
Owners of the parent5 553 (878)
Earnings/(loss) per ordinary share (cents)7
Basic earnings/(loss)919 (164)
Diluted earnings/(loss)901 (166)
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 2021 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 31 August 2021.
These condensed consolidated financial statements have been reviewed by the group's external auditors, PricewaterhouseCoopers Incorporated. The unmodified review opinion is included on page 17. The auditor’s report does not necessarily report on all of the information contained in these results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement they should refer to the auditor’s report.

18

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (RAND)
Year ended
Figures in millionNotes30 June 2021

(Reviewed)		30 June 2020
Re-presented
(Audited)
Net profit/(loss) for the year
5 590 (850)
Other comprehensive income for the year, net of income tax
3 251 (1 958)
Items that may be reclassified subsequently to profit or loss
3 233 (1 998)
Foreign exchange translation gain/(loss)
2(1 234)1 199 
Remeasurement of gold hedging contracts
104 467 (3 197)
Items that will not be reclassified to profit or loss
118 40 
Total comprehensive income for the year8 841 (2 808)
Attributable to:
Non-controlling interest58 12 
Owners of the parent
8 783 (2 820)
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 2021
Figures in millionShare capitalAccumulated lossOther
reserves		Non-controlling interestTotal
Balance – 1 July 202032 937 (12 583)3 017 4 23 375 
Share issue costs(3)— — — (3)
Share-based payments— — 156 — 156 
Partial purchase of non-controlling interest— — (4)(1)(5)
Net profit for the year— 5 553 — 37 5 590 
Other comprehensive income for the year— — 3 230 21 3 251 
Dividends paid1
— (677)— (7)(684)
Balance – 30 June 2021 (Reviewed)32 934 (7 707)6 399 54 31 680 
Balance – 1 July 201929 551 (11 710)4 773 — 22 614 
Issue of shares3 386 — — — 3 386 
Share-based payments— — 186 — 186 
Recognition of non-controlling interest— 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 (Audited)32 937 (12 583)3 017 4 23 375 
1On 19 April 2021, Harmony paid an ordinary dividend of 110 cents per share.

The accompanying notes are an integral part of these condensed consolidated financial statements.
19

CONDENSED CONSOLIDATED BALANCE SHEET (RAND)
At
Figures in millionNotes30 June 2021

(Reviewed)		30 June 2020
Re-presented
(Audited)
ASSETS
Non-current assets
Property, plant and equipment834 366 29 186 
Intangible assets8365 536 
Restricted cash and investments
1 & 13
5 232 3 642 
Investments in associates126 146 
Deferred tax assets6198 531 
Other non-current assets9332 435 
Derivative financial assets10328 50 
Total non-current assets40 947 34 526 
Current assets
Inventories2 542 2 421 
Restricted cash and investments167 62 
Trade and other receivables1 652 1 308 
Derivative financial assets101 471 18 
Cash and cash equivalents2 819 6 357 
Total current assets8 551 10 166 
Total assets49 498 44 692 
EQUITY AND LIABILITIES
Share capital and reserves
Attributable to equity holders of the parent company31 626 23 371 
Share capital32 934 32 937 
Other reserves6 399 3 017 
Accumulated loss(7 707)(12 583)
Non-controlling interest54 4 
Total equity31 680 23 375 
Non-current liabilities
Deferred tax liabilities62 202 996 
Provision for environmental rehabilitation134 662 3 408 
Other provisions1926 910 
Borrowings112 974 7 463 
Contingent consideration liability13417 — 
Other non-current liabilities178 101 
Derivative financial liabilities106 879 
Streaming contract liability12695 — 
Total non-current liabilities12 060 13 757 
Current liabilities
Other provisions1175 175 
Borrowings11387 255 
Trade and other payables134 594 3 006 
Derivative financial liabilities10206 4 124 
Streaming contract liability12396 — 
Total current liabilities5 758 7 560 
Total equity and liabilities49 498 44 692 
The accompanying notes are an integral part of these condensed consolidated financial statements.
20

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (RAND)
Year ended
Figures in millionNotes30 June 2021
(Reviewed)		30 June 2020
(Audited)
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated by operations159 741 5 031 
Dividends received85 — 
Interest received171 86 
Interest paid(234)(370)
Income and mining taxes paid(584)(24)
Cash generated from operating activities9 179 4 723 
CASH FLOW FROM INVESTING ACTIVITIES
Increase in restricted cash and investments(48)(21)
Amounts refunded from restricted cash and investments34 5 
Redemption of preference shares from associates36 59 
Acquisition of Mponeng operations and related assets13(3 363)— 
ARM BBEE Trust loan repayment9264 — 
ARM BBEE Trust loan advanced9(264)— 
Capital distributions from investments8 7 
Proceeds from disposal of property, plant and equipment11 2 
Additions to property, plant and equipment15(5 142)(3 610)
Cash utilised by investing activities(8 464)(3 558)
CASH FLOW FROM FINANCING ACTIVITIES
Borrowings raised11— 6 541 
Borrowings repaid11(3 491)(5 661)
Proceeds from the issue of shares— 3 466 
Partial repurchase of non-controlling interest(5)— 
Dividend paid(684)(3)
Lease payments(119)(38)
Cash generated/(utilised) by financing activities(4 299)4 305 
Foreign currency translation adjustments46 (106)
Net increase/(decrease) in cash and cash equivalents(3 538)5 364 
Cash and cash equivalents – beginning of year6 357 993 
Cash and cash equivalents – end of year2 819 6 357 
The accompanying notes are an integral part of these condensed consolidated financial statements.
21

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
1.    ACCOUNTING POLICIES
Basis of accounting
The condensed consolidated financial statements for the year ended 30 June 2021 are prepared in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act no. 71 of 2008 of South Africa. The Listings Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the condensed consolidated financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements. There were no new standards, amendments to standards or interpretations that became effective that had a material impact on the group's results or financial position.
The condensed consolidated financial statements have been prepared on a going concern basis.
Comparative information
As a result of the acquisition of AngloGold Ashanti Limited's (AGA) remaining South African assets, collectively Mponeng operations and related assets (refer to note 13), a change in the materiality thresholds applied by management resulted in certain of the financial statement line items either being aggregated or disaggregated in the related primary financial statement as at and for the year ended 30 June 2021. As a result and in accordance with the requirements of IFRS, the comparatives were also re-presented accordingly, as noted in the table below.
Line item
Presentation in FY21 condensed financial statements
Presentation in FY20 condensed financial statements
Condensed consolidated income statement
Foreign exchange translation gain/(loss)
Disaggregated and disclosed as a separate line item
Included in other operating expenses. The total for other operating expenses for FY20 was R1 201 million.
Condensed consolidated statement of comprehensive income
Items that will not be reclassified to profit or loss
Aggregated
Disaggregated
Condensed consolidated balance sheet
Restricted cash
Aggregated and disclosed in the restricted cash and investments line item
Disclosed as a separate line item. The FY20 balance for the non-current portion was R107 million and the balance for the current portion was R62 million.
Restricted investments
Aggregated and disclosed in the restricted cash and investments line item
Disclosed as a separate line item. The balance for FY20 was R3 535 million.
Non-current inventories
Aggregated and disclosed in the other non-current assets line item
Disclosed as a separate line item. The balance for FY20 was R47 million.
Retirement benefit obligation
Aggregated and disclosed in the other provisions line item
Disclosed as a separate line item. The balance for FY20 was R193 million.
Provision for silicosis settlement
Aggregated and disclosed in the other provisions line item
Current and non-current portion disclosed as a separate line item. The FY20 balance for the non-current portion was R717 million and the balance for the current portion was R175 million.

22

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
2.    COVID-19 IMPACT
South Africa
The national lockdown that began on 27 March 2020 to curb the spread of the Coronavirus (Covid-19) and allow the country time in which to prepare for the demands the pandemic would have on its health care system is still in place. Harmony continues with the risk assessment-based Covid-19 prevention strategy which was rolled out across all of its operations before the lockdown was announced. This approach has allowed management to identify, evaluate and rank the hazards associated with any exposures to Covid-19 and potential infections. It has allowed the company to reduce or eliminate the probability of an employee contracting Covid-19 and to limit the severity should an employee be infected.
Harmony’s Covid-19 Standard Operating Procedure (SOP) has been adopted and rolled out, ensuring a safe return to work and work environment for each of its employees. The SOP was informed by guidelines provided by the Department of Mineral Resources and Energy, the National Council for Infectious Diseases and the World Health Organisation.
All requisite staffing, facilities and equipment are in place to ensure continuous rigorous screening of employees at work, as well as isolate or quarantine employees infected by or exposed to Covid-19, with subsequent testing and treatment. Management adapt the approach continuously as more information becomes available and new best practices evolve.
Papua New Guinea
Harmony’s Hidden Valley mine in Papua New Guinea has continued to operate during the Covid-19 State of Emergency declared in that country, however restrictions on international travel and the implementation of strict Covid-19 control protocols, required longer employee rosters, which includes rostered days off on site to manage fatigue, which has negatively impacted productivity. Work is being done to mitigate this impact. The delivery of essential supplies to the mine has continued, with strict isolation control measures in place. All non-essential staff have been temporarily removed from site and certain activities and expenditures have been curtailed to focus on safe, profitable operations during the pandemic. Protocols were adopted to allow the safe movement of personnel to and from site.
Vaccines
The roll-out of vaccine programmes globally since November 2020, despite the subsequent discovery of several mutations, or variants, is seen as a positive move to prevent severe disease and hospitalisation. Harmony has four accredited mass vaccination sites in South Africa and three in Papua New Guinea, with plans to accredit six more sites in South Africa. Harmony aims to vaccinate 80% of its employees that are willing to be vaccinated by October 2021 and can then assist with the vaccination of employees' families and the communities in which we operate.
Financial risk management
The effects of Covid-19 and other macro developments have increased financial risks such as exchange rate, interest rate and commodity price volatility, while also impacting on liquidity and credit risk. Management has put various measures in place to mitigate and/or manage the risks and continues monitoring the situation closely. Refer to note 14 for additional detail.
Market impact
Exchange rates
Due to the impact of the Covid-19 pandemic, during the 2020 financial year the Rand weakened significantly against the US dollar and the Australian dollar, closing at R17.32/US$1 and R11.96/A$1 on 30 June 2020. During the 2021 year, the Rand strengthened against the two currencies, closing at R14.27/US$1 and R10.72/A$1 on 30 June 2021. In addition, the Papua New Guinea Kina weakened against the Australian dollar from PGK2.38/A$1 at 30 June 2020 to PGK2.63/A$1 at 30 June 2021. These movements in the currencies expose the group's operations to foreign currency gains and losses on foreign-denominated receivables and liabilities, including derivatives, and also impact the group’s translation of its International operating results and net assets into its Rand presentation currency, which resulted in a foreign exchange translation gain of R1.2 billion for the 2020 year, while a foreign translation loss of R1.2 billion was recognised for the 2021 year. In addition, a net foreign exchange translation gain of R670 million (R892 million net loss in FY20) was recognised in profit or loss for the 2021 year, primarily on the US$ borrowings.
Commodity prices
Gold prices have rallied to all-time highs during the 2020 and 2021 years following the global economic fallout of Covid-19 and ongoing geopolitical uncertainty supporting its safe haven status with investors. The price of gold in US$ terms closed at US$1 770/oz on 30 June 2021, relatively unchanged from the price of US$1 781/oz on 30 June 2020. However, spot gold prices have traded in a range of between US$1 681/oz and US$2 063/oz (FY20: US$1 384/oz and US$1 781/oz) during the year, which was driven by factors such as the announcement of the successful developments of vaccines as well as the various waves of the Covid-19 infections being experienced globally.
Interest rates
The United States of America (US) as well as South African market interest rates remain stable at the recent low levels and are expected to remain low for some time to come, as economies all over the world are still impacted by the economic impact of the Covid-19 pandemic.
Since the US Federal Reserve dropped the Fed Funds rate to a maximum of 0.25% in March 2020, there have been no changes to the rate. Similarly in South Africa, the South African Reserve Bank (SARB) has kept the repo rate at a low of 3.50% since reducing it to that level on 23 July 2020. In the first half of 2020 the SARB lowered the repo rate by 2.75% from 6.50% to 3.75%. Management's expectation is for interest rates to remain low as inflation is well within the target band.



23

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
2.    COVID-19 IMPACT continued
Impact on production
During the initial phase of the South African national lockdown, the underground operations were placed on care and maintenance and employees returned to their homes across the country and in other SADC countries. On 1 May 2020, the underground operations were granted concessions to start producing at a maximum capacity of 50% and as of 1 June 2020, operational restrictions were lifted further to allow the mining industry to operate at 100% of its labour capacity. By 1 September 2020, Harmony had completed the recall of all operational employees.
Management continuously monitors the crew availability and adapts the production models accordingly. The December break was shortened to allow for a catch-up on development which had been delayed during Level 4 & 5 of the national lockdown. It also allowed for extra production days.
Due to the protocols put in place to deal with an employee who has potentially been exposed to the virus, the disruption to production has been minimal. The reduction of the quarantine time from 14 to 10 days has also seen a quicker return after a potential exposure. The use of the rapid antigen test during the January 2021 return-to-work process significantly improved the process as employees could be cleared for work within an hour of testing. Those with a positive test were immediately isolated for further case management.
Impact on critical estimates and judgements
The group considered the impact of the Covid-19 pandemic on each of its significant accounting estimates and judgements as at 30 June 2021, some which relate to the key assumptions for the calculation of the mining assets' recoverable amounts. The increase in the US$ gold price affected the short- and medium-term views in the forecasts management received from various institutions in order to determine the assumptions for impairment testing. Refer to note 8 for further details on the assumptions used in the impairment test.
With the fair value exercise that is required for the acquisition of Mponeng operations and related assets, management made certain assumptions and estimates required in the process as at 1 October 2020. These assumptions were affected by the market volatility at the time. Refer to note 13 for further detail.
3.    REVENUE
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Revenue from contracts with customers43 632 30 642 
  Gold1
42 597 29 704 
  Silver2
857 839 
  Uranium2
178 99 
Consideration from streaming contract3
397 — 
Hedging loss4
(2 296)(1 397)
Total revenue5
41 733 29 245 
1    The increase is mainly due to the acquisition of the Mponeng operations and related assets and a higher gold price. The acquired operations contributed R7.5 billion in revenue during the year. In addition, the average gold price received increased by 15.7% to R851 045/kg from R735 569/kg in the year ended 30 June 2020.
2    Silver is derived from the Hidden Valley mine in Papua New Guinea. Uranium is derived from the Moab Khotsong operation.
3    Relates to the recognition of non-cash consideration recognised as part of revenue for the streaming arrangement. Refer to note 12 for further information.
4    Relates to the realised effective portion of the hedge-accounted gold derivatives. Refer to note 10 for further information.
5    A geographical analysis of revenue is provided in the segment report.

The points of transfer of control are as follows:
•Gold: South Africa (excluding streaming contract)
Gold is delivered and a certificate of sale is issued.
•Gold and silver: Hidden Valley
Metal is collected from Hidden Valley and a confirmation of collection is sent to and accepted by the customer.
•Uranium
Confirmation of transfer is issued.
•Streaming contract
Gold is delivered and credited into the Franco-Nevada designated gold account.
24

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
4.    COST OF SALES
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Production costs – excluding royalty1
29 137 21 721 
Royalty expense2
637 327 
Amortisation and depreciation3
3 893 3 508 
Impairment of assets4
1 124 — 
Rehabilitation expenditure5
285 47 
Care and maintenance cost of restructured shafts144 146 
Employment termination and restructuring costs6
332 40 
Share-based payments114 130 
Other(9)(11)
Total cost of sales35 657 25 908 
1    Production costs saw a significant increase in the 2021 year due to the acquisition of the Mponeng operations and related assets, which contributed R5 230 million to the increase. The remaining increase is mainly attributable to higher utilities and labour costs for the year as a result of annual increases.
2    The royalty expense increased during the 2021 year due to increased profitability as a result of the higher gold prices, which also impacted on the rates at which royalties are calculated.
3    The increase year on year is as a result of the operations running for the entire year with no shutdowns while the charge for 2020 was impacted by lower production due to the closure of underground operations as a result of the Covid-19 pandemic. The inclusion of the Mponeng operations and related operations assets in the asset base also contributes R421 million to the increase year on year.
4    During the current period impairments of R1 124 million were recognised for the property, plant and equipment of Tshepong Operations and Target 3 as well as the goodwill of Bambanani. Refer to note 8 for further details.
5    The total for the 2021 year includes the change in estimate following the annual reassessment process.
6    The increase is due to a new programme for voluntary and medical severance packages offered to employees.
5.    OTHER INCOME STATEMENT ITEM NOTES
Corporate, administration and other expenditure
The amount for the year ended 30 June 2021 increased from 30 June 2020 mainly due to integration costs of R205 million (R4 million in FY20) related to the acquisition of the Mponeng operations and related assets (refer to note 13), a general increase in corporate activity and higher employee incentive payments.
Finance costs
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Borrowings (refer to note 11)
228 424 
Other creditors and liabilities14 9 
Time value of money and inflation component of rehabilitation costs296 194 
Time value of money for other provisions74 88 
Streaming arrangements (refer to note 12)
71 — 
Interest capitalised (22)(54)
Total finance costs661 661 
6.    TAXATION
Current taxation
The movement in foreign exchange translation from losses in the prior year to gains in the current year as well as higher mining taxable income due to the increase of revenue resulted in the increase in the current tax expense during the 2021 year. This was also impacted by certain companies within the group using their unredeemed capital allowances as well as assessed losses.

25

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
6.    TAXATION continued
Deferred taxation
The R610 million deferred tax expense during the 2021 year is attributable to increased net taxable temporary differences due primarily to the utilisation of the assessed losses and unredeemed capital expenditure in certain companies as a result of higher taxable profits. The main contributors to these changes were:
•Harmony Moab Khotsong Operations (Pty) Ltd utilised its assessed loss and unredeemed capital expenditure, which contributed R224 million to the liability increase;
•Freegold (Harmony) Pty Ltd utilised its assessed loss and unredeemed capital expenditure balance, which contributed R112 million to the liability increase year on year; and
•Golden Core Trade and Investment (Pty) Ltd, which acquired the Mponeng operation as well as the West Wits closure business utilised a portion of its unredeemed capital allowance, which contributed R149 million to the liability increase.
An increase of R782 million in the deferred tax liability is due to the increase in the net derivative asset/(liability) position from 30 June 2020, which had an impact on the majority of the companies within the group.
Due to the acquisition of the Mponeng operations and related assets, a R148 million net deferred tax liability was recognised. Refer to note 13 for detail.
Movement in the net deferred tax liability recognised in the balance sheet is as follows:
At
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Balance at beginning of year465 687 
Net deferred tax liability of acquired operations at 1 October 2020148 — 
Expense per income statement610 197 
Tax expense/(credit) directly charged to other comprehensive income781 (419)
Balance at end of year2 004 465 
Deferred tax asset per balance sheet(198)(531)
Deferred tax liability per balance sheet2 202 996 
As at 30 June 2020 a deferred tax asset was recognised in Harmony Gold Mining Company Limited (Harmony Company) and Randfontein Estates Limited (Randfontein Estates). Subsequently, the net deferred tax asset balance has decreased due to the utilisation of assessed losses, unredeemed capital expenditure and a decrease in the net derivative liability. Harmony Company's deferred tax asset balance reduced to R175 million while Randfontein Estates' deferred tax asset became a deferred tax liability.
The net deferred tax asset position of Harmony Company is as follows:
At
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Deductible temporary differences6401 079
Assessed losses—574
Total6401 653
Deferred tax rate27.4 %29.8 %
Deferred tax asset175492
Furthermore, the newly acquired Chemwes (Pty) Limited (Chemwes Company) is in a net deferred tax asset position as disclosed below:
At
Figures in million30 June 2021
(Reviewed)
Deductible temporary differences212
Assessed losses—
Total212
Deferred tax rate12.8 %
Deferred tax asset23
A deferred tax asset continues to be recognised for Harmony Company and the Chemwes Company as it is probable that sufficient future taxable profits will be available against which the remaining deductible temporary differences existing at the reporting date can be utilised.
26

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
7.    EARNINGS/(LOSS) PER ORDINARY SHARE
Year ended
30 June 2021
(Reviewed)		30 June 2020
(Audited)
Weighted average number of shares (million)604 535 
Weighted average number of diluted shares (million)616 547 
Total earnings/(loss) per share (cents):
Basic earnings/(loss)919 (164)
Diluted earnings/(loss)901 (166)
Headline earnings/(loss)923 (154)
Diluted headline earnings/(loss)904 (157)
Reconciliation of headline earnings/(loss):
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Net profit/(loss) for the year attributable to owners of the parent5 553 (878)
Adjusted for:
Gain on bargain purchase1
(1 153)— 
Impairment of assets2
1 124 — 
Taxation effect on impairment of assets(93)— 
Profit on sale of property, plant and equipment(11)(2)
Taxation effect on profit on sale of property, plant and equipment2 — 
Loss on scrapping of property, plant and equipment161 62 
Taxation effect on loss on scrapping of property, plant and equipment(8)(10)
Headline earnings/(loss)5 575 (828)
1 There is no tax effect on this item.
2 This total includes the impairment of goodwill which does not have a tax effect.
8.    PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Acquisitions
One of the major contributors to the movement in property, plant and equipment is the acquisition of Mponeng operations and related assets and liabilities. Refer to note 13 for further information on the acquisition.
Impairment of property, plant and equipment (including goodwill)
Management performed an assessment for impairment triggers as well as indications of reversal of previously recorded impairment losses at 30 June 2021. Due to the net asset value (before any impairments recognised) exceeding the market capitalisation of Harmony as at 30 June 2021, the recoverable amounts for all cash-generating units (CGUs) were calculated. The recoverable amounts for these assets were determined on a fair value less cost to sell basis using assumptions in the discounted cash flow models and attributable resource values. These are fair value measurements classified as level 3.
Estimates and judgements
The recoverable amount of mining assets is determined utilising real discounted future cash flows or resource multiples in the case of undeveloped properties and certain resource bases. During this year's planning and testing, commodity price and exchange rate assumptions as per the table below were used. In determining the commodity prices and resource values to be used, management assesses the long-term views of several reputable institutions on commodity prices and based on this, derives the commodity prices and resource values. Due to the short-term volatility in the US$ commodity price and the Rand against the US$ towards the end of the financial year, management decided it would be appropriate to differentiate between short-, medium- and long-term assumptions used in the models. The long-term price was determined as part of the annual budgeting process and is used in the life-of-mine plans and is also the cut-off price for calculating reserves included in the declaration of reserves and resources in terms of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC). The resource multiple values have been updated from the prior year, due to the recent transaction between AGA and Harmony for the purchase of the Mponeng operations and related assets. The resource multiple has been further updated to differentiate between underground operations and surface source operations due to this new information and applied to the relevant resource bases. Please refer to note 13 for further information on the acquisition.
27

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
8.    PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS continued
Impairment of property, plant and equipment (including goodwill) continued
Estimates and judgements continued
The silver price has been extended during the current financial year to include short-, medium- and long-term rates. The long-term rate used is based on the rate used as part of the strategic planning process.
Post-tax real discount rates ranging between 9.3% and 12.0% (2020: 9.6% and 11.5%), depending on the asset, were used to determine the recoverable amounts for the South African operations. Hidden Valley made use of a post-tax real discount rate of 10.3%.
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
US$ gold price per ounce
– Year 11 805 1 610 
– Year 21 673 1 558 
– Year 31 582 1 469 
– Long term (year 4 onwards)1 500 1 350 
US$ silver price per ounce
– Year 125.72 17.00 
– Year 223.22 17.00 
– Year 321.70 17.00 
– Long term (year 4 onwards)20.70 17.00 
Exchange rate (R/US$)
– Year 114.54 16.72 
– Year 214.36 15.47 
– Year 314.44 15.29 
– Long term (Year 4 onwards)14.51 14.51 
Exchange rate (PGK/US$)3.50 3.45 
Rand gold price (R/kg)
– Year 1843 000 865 000 
– Year 2772 000 775 000 
– Year 3735 000 722 000 
– Long term (Year 4 onwards)700 000 630 000 
Additional resources multiples (US$/oz) (underground operations)1
Measured16.50 25.00 
Indicated9.00 8.00 
Inferred3.60 2.80 
Additional resources multiples US$/oz (surface sources)2
Measured30.00 N/A
Indicated17.50 N/A
Inferred8.00 N/A
1    The underground resource value has been applied to Target North and Doornkop's Kimberly Reef.
2    The surface resource values have been applied to the Mispah Tailings resource, Vaal River and West Wits surface sources.

Due to the volatilities experienced in the markets and the uncertainty in forecasting future cash flows due to the impact of the Covid-19 pandemic, management has used various probability scenarios in determining the recoverable amounts for the CGUs at 30 June 2021 and 2020.
The factors below were considered in management's judgements. The most significant change year on year was the introduction of the vaccination programme and its impact on infection rates. The factors were:
•infection rates and the timing of the expected peaks in the provinces and/or countries that Harmony's operations are situated in;
•expected disruptions to production together with the mitigation strategies management has in place;
•expectation of the completion date of the vaccination programme at Harmony and a governmental level; and
•potential duration of the impact of the virus (prior and post vaccination) and the related restrictions in operations.
Management included estimates of the staffing costs for screening and monitoring employees at work as well as those that are in quarantine. Further costs have been included in the life-of-mine plans for the cost of the vaccination programme and the scenarios used by management include further potential costs if vaccinations are required in the future at various intervals.
28

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
8.    PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS continued
Impairment of property, plant and equipment (including goodwill) continued
Estimates and judgements continued
In preparing the various scenarios, management considered and varied:
•the potential impact on production and therefore on the revenue cash flows, based on historical trends that have been extrapolated to account for varying disruption levels;
•the duration of potential disruptions to production, ranging from 12 months to 24 months;
•the infection rates and associated costs as well as vaccination costs. This included impacts on production as well as considerations of the potential requirement to re-vaccinate in coming years.
The calculated cash flows were then weighted based on management's expectation of each of the scenarios occurring. The resulting amounts were discounted using the specific discount rate for each operation in order to determine the recoverable amount.
Results of impairment and reversal assessment
Based on the impairment tests performed, impairment of R1 124 million was recorded for the 2021 year. The impairments relate to the following operations:
•The impairment of goodwill on Bambanani was mainly as a result of a reduction in grade over the remainder of the operation's life. The reduction in grade is due to unexpected changes in the orebody and a lower mine call factor. These changes from the previous life-of-mine plan resulted in a reduced post-tax recoverable amount of R341 million and an impairment of R187 million.
•The entire carrying value of Target 3 has been impaired during the current year, resulting in an impairment of R178 million. Previous plans to explore the sale of the operation have been abandoned and further development is not a viable option at this stage. Therefore management has determined a recoverable amount of Rnil.
•An impairment of R759 million on the property, plant and equipment of Tshepong Operations was recognised at 30 June 2021. The updated life-of-mine plan included a reduction in planned gold resulting from lower grade. There was also a change in the mining profile in the revised life-of-mine plan, which impacted on the timing of cash flows, which were then later than in comparison to the prior year plan. These changes affected the discounted cash flows used to determine the recoverable amount of the operation. The post-tax recoverable amount decreased year on year to R5 784 million.
Where CGUs had previously been impaired, management considered whether the impairment loss (or the contributors to the previously recognised impairment loss) no longer exists or might have decreased. Management considered general and specific factors for each CGU and concluded that although overall the gold price had improved from the time that the impairment losses had been recognised, the specific circumstances that led to the original impairments had not reversed. Furthermore, the service potential of the asset has not increased.  Management also considered the level of uncertainty of the impact of Covid-19 on production and therefore on the cash flows. Due to the continued volatility seen in the gold prices as well as exchange rates, coupled with the fact that the factors resulting in the previously recognised impairment losses had not reversed, as well as the market capitalisation consideration, management resolved it to be appropriate for no reversal of previously recognised impairment losses to be recorded for the under review.
One of the most significant assumptions that influence the life-of-mine plans and therefore impairment assessments is the expected commodity prices. Management determined a reasonably possible long-term change of 10% in gold prices based on the standard deviation of both Harmony's long-term gold price assumption over the past five financial years and market analysts' forecasted long-term gold price assumptions. A 10% increase/decrease (pre-impairment and scrapping recognised) in the gold price and resource values used (with all other variables held constant and not taking any actions, such as stopping capital projects, into account) would have resulted in the following post-tax impairment being recorded (including the impairments recorded in the current period) as at 30 June 2021:
Figures in million30 June 2021
10% decrease
(Reviewed)
Tshepong Operations(5 314)
Mponeng*
(2 496)
Moab Khotsong1
(1 916)
Doornkop(1 914)
Target 1(1 267)
Kusasalethu(821)
Mine Waste Solutions*
(600)
Kalgold(390)
Bambanani1
(413)
Joel(363)
Target 3#
(178)
Other assets(100)
*    The potential impairments have been calculated based on carrying amounts derived from the provisional fair exercise and are subject to change. Refer to note 13 for further information.
1    The carrying amounts of these CGUs include goodwill and any impairment losses are allocated first to goodwill and then to the identifiable assets.
#    A 10% increase in the gold price assumption would result in an impairment of R178 million on Target 3 alone.
29

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
9.    OTHER NON-CURRENT ASSETS
During the 2021 financial year-end, the loan to the ARM Broad-Based Economic Empowerment Trust (the ARM BBEE Trust) was refinanced to allow a sufficient and sustainable repayment structure. Following the restructuring, Harmony advanced R264 million to the ARM BBEE Trust to which the Trust used the amount for the repayment of the outstanding balance under the previous loan agreement. The loan under the revised loan agreement is interest-free and is receivable on the maturity of the loan on 30 June 2035. The loan is unsubordinated and unsecured. The loan does not meet the requirements for amortised cost measurement as it fails the solely payments of principal and interest characteristics. It is therefore classified as a fair value through profit and loss instrument (refer to the fair value determination section in note 14 for detail). The refinancing of the loan resulted in a day 1 expense of R87 million, which is included in investment income.
10.    DERIVATIVE FINANCIAL INSTRUMENTS
Figures in millionRand gold hedging contracts (a)US$ gold hedging contractsUS$ silver contractsForeign exchange contractsRand gold derivative contractsTotal
At 30 June 2021 (Reviewed)
Derivative financial assets1 358 48 10 383 — 1 799 
Non-current279 40 9 — — 328 
Current1 079 8 1 383 — 1 471 
Derivative financial liabilities(41)(73)(98)— — (212)
Non-current— — (6)— — (6)
Current(41)(73)(92)— — (206)
Net derivative financial instruments1 317 (25)(88)383 — 1 587 
Unamortised day one net loss included above(18)(5)— — — (23)
Unrealised gains/(losses) included in other reserves, net of tax1 069 (18)— — — 1 051 
Movements for the year ended
30 June 2021
Realised losses included in revenue(2 023)(273)— — — (2 296)
Unrealised gains/(losses) on gold contracts recognised in other comprehensive income2 999 (7)— — — 2 992 
Gains/(losses) on derivatives— — (256)1 217 111 1 072 
Day one loss amortisation(42)(8)— — — (50)
Total gains/(losses) on derivatives(42)(8)(256)1 217 111 1 022 
Hedge effectiveness
Changes in the fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness2 999 (7)— — — 2 992 
Changes in the fair value of the hedged item used as the basis for recognising hedge ineffectiveness(2 999)7 — — — (2 992)
(a)    Rand gold hedging contracts
All Rand gold forward contracts entered into after 1 October 2020 were apportioned to the South African operations which included Mponeng and Mine Waste Solutions operations.
30

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
10.    DERIVATIVE FINANCIAL INSTRUMENTS continued
Figures in millionRand gold hedging contractsUS$ gold hedging contractsUS$ silver contractsForeign exchange contractsRand gold derivative contractsTotal
At 30 June 2020 (Audited)
Derivative financial assets19 8 11 30 — 68 
Non-current10 5 5 30 — 50 
Current9 3 6 — — 18 
Derivative financial liabilities(3 626)(356)(4)(760)(257)(5 003)
Non-current(717)(96)(1)(65)— (879)
Current(2 909)(260)(3)(695)(257)(4 124)
Net derivative financial instruments(3 607)(348)7 (730)(257)(4 935)
Unamortised day one net loss included above(18)(8)— — — (26)
Unrealised losses included in other reserves, net of tax(3 053)(342)— — — (3 395)
Movements for the year ended
30 June 2020
Realised losses included in revenue(1 263)(134)— — — (1 397)
Unrealised losses included in other reserves, net of tax(4 820)(391)— — — (5 211)
Gains/(losses) on derivatives— — 6 (1 235)(174)(1 403)
Unrealised losses reclassified to profit or loss as a result of discontinuance of hedge accounting(235)— — — — (235)
Day one loss amortisation(34)(6)— — — (40)
Total gains/(losses) on derivatives(269)(6)6 (1 235)(174)(1 678)
Hedge effectiveness
Changes in the fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness(4 820)(391)— — — (5 211)
Changes in the fair value of the hedged item used as the basis for recognising hedge ineffectiveness4 820 391 — — — 5 211 
Reconciliation of the hedge reserve:
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Opening balance(3 395)(214)
Remeasurement of gold hedging contracts4 467 (3 197)
Unrealised gain/(loss) on gold hedging contracts2 992 (5 211)
Unrealised losses reclassified to profit or loss as a result of discontinuance of hedge accounting— 235 
Released to revenue on maturity of the gold hedging contracts2 296 1 397 
Foreign exchange translation(39)(37)
Deferred taxation thereon(782)419 
Attributable to non-controlling interest(21)16 
Closing balance1 051 (3 395)
31

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
10.    DERIVATIVE FINANCIAL INSTRUMENTS continued
The following table shows the open position at the reporting date:
FY2022FY2023TOTAL
Q1Q2Q3Q4Q1Q2Q3Q4
Foreign exchange contracts
Zero cost collars
US$m47 42 27 — — — — — 116 
Average Floor – R/US$16.32 16.93 17.99 — — — — — 16.93 
Average Cap – R/US$17.90 18.54 19.65 — — — — — 18.54 
Forward contracts
US$m9 9 8 — — — — — 26 
Average Forward rate – R/US$18.18 18.41 18.71 — — — — — 18.43 
R/gold
000 oz – cash flow hedge79 72 63 52 38 5 — — 309 
Average R'000/kg863 933 1 022 1 070 1 084 1 025 — — 976 
US$/gold
000 oz – cash flow hedge12 12 11 11 9 9 7 2 73 
Average US$/oz1 561 1 606 1 723 1 799 1 911 1 867 1 826 1 861 1 743 
Total gold
000 oz91 84 74 63 47 14 7 2 382 
US$/silver
000 oz365 335 315 285 285 270 155 45 2 055 
Average Floor – US$/oz18.61 19.52 20.05 20.43 24.39 25.97 25.98 26.30 21.72 
Average Cap – US$/oz20.26 21.35 22.05 22.49 27.02 29.00 29.24 29.52 23.99 
Refer to note 14 for details on the fair value measurements.
11.    BORROWINGS
Summary of facilities' terms
Figures in millionUS$ term loan
US dollar		US$ RCF
US dollar		Rand term loan
SA rand		Rand RCF
SA rand		Westpac fleet loan
US dollar
Borrowings summary at 30 June 2021
Original facility200 200 600 1 400 N/A
Drawn down/ loan balance200 — 450 — 8 
Undrawn committed borrowing facilitiesN/A200 N/A*1 400 N/A*
MaturitySeptemberSeptemberNovemberNovemberJuly
20232023202220222022
Interest rateLIBOR +
3.05%		LIBOR +
2.90%		JIBAR +
2.90%		JIBAR +
2.80%		LIBOR +
3.20%
*    The amounts repaid on the facility cannot be drawn down again.

32

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
11.    BORROWINGS
Interest bearing borrowings
At
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Non-current borrowings
R2 billion facility153 1 351 
Balance at beginning of year1 351 1 489 
Draw down— 1 100 
Repayments(1 050)(1 100)
Transferred to current borrowings(150)(150)
Amortisation of issue cost2 12 
US$400 million facility2 799 5 980 
Balance at beginning of year5 980 — 
Draw down— 5 441 
Issue cost(11)(95)
Repayments(2 347)— 
Amortisation of issue cost39 12 
Translation(862)622 
US$350 million facility— — 
Balance at beginning of year— 4 143 
Repayments— (4 465)
Amortisation of issue cost— 24 
Translation— 298 
Westpac fleet loan22 132 
Balance at beginning of year132 194 
Repayments(96)(96)
Transferred to current borrowings18 (16)
Translation(32)50 
Total non-current borrowings2 974 7 463 
Current borrowings
R2 billion facility300 150 
Balance at beginning of year150 — 
Transferred from non-current borrowings150 150 
Westpac fleet loan87 105 
Balance at beginning of year105 89 
Transferred from non-current borrowings(18)16 
Total current borrowings387 255 
Also during the year ended 30 June 2021:
•On 6 July 2020 Harmony and its subsidiaries cancelled the bridge loan of US$200 million, which had been entered into for the payment of the consideration for the Mponeng operations and related assets. No draw downs were made prior to cancellation.
•The syndicate of lenders for the US$400 million facility agreed to the one-year extension during July 2020, extending the maturity date to September 2023
During June 2020, the company's lenders agreed to relax certain requirements for compliance with debt covenants until December 2020. The group complied with all debt covenants as at 31 December 2020. From 1 January 2021, the covenants reverted to the original position.
There were no breaches of the loan covenants for the 2021 and 2020 financial years. Management believes that it is very likely that the covenant requirements will be met in the foreseeable future given the current earnings and interest levels, as well as the net debt position.


33

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
11.    BORROWINGS continued
Year ended
Figures in million30 June 2021
(Reviewed		30 June 2020
(Audited)
Translation gain/(loss) on US$ facilities1
(895)(967)
Rand/US$ exchange rate:
Closing/spot14.27 17.32 
Average15.40 15.66 
1    The remainder of foreign exchange transaction gain or loss included in profit or loss relates to the translation of cash from a foreign currency to the functional currencies of the operating entities.
12.    STREAMING ARRANGEMENTS
Streaming arrangement with Franco-Nevada Barbados
Harmony's subsidiary, Chemwes, the owner of the Mine Waste Solutions operation (MWS) has a contract with Franco-Nevada Barbados (Franco-Nevada) where Franco-Nevada is entitled to receive 25% of all the gold produced through MWS. As part of the acquisition of MWS (refer to note 13), Harmony assumed the obligations enforced by the Franco-Nevada contract.
The contract is a streaming agreement that commenced on 17 December 2008 for which Franco-Nevada paid US$125 million upfront for the right to purchase 25% of the gold production through MWS for a fixed amount of consideration until the balance of gold cap is delivered. As at 1 October 2020, the US$125 million upfront payment has been settled. The gold cap is a provision included in the contract, which stipulates the maximum quantity of gold to be sold to Franco-Nevada over the term of the agreement. The consideration is determined as the lower of the quoted spot gold price as per the London Metals Exchange or US$400 per ounce adjusted with an annual escalation adjustment.
Harmony does not have an existing streaming arrangement and therefore a new accounting policy was developed for the classification and measurement of the transaction.
Accounting policy
The streaming contract was assessed and has been accounted for as an own-use customer contract. At acquisition, the Franco-Nevada contract was initially recognised at a fair value (refer to note 13) of R1.42 billion in accordance with IFRS 3. The fair value of the contract took into consideration the existing unfavourable gold price terms at acquisition, in relation to the comparative market gold price.
The obligation to deliver the contractually stipulated ounces over the remaining term of the agreement results in a significant financing component. The interest accrues on the contract liability over the remaining contractual term. As the performance obligation to deliver gold is met, the contract liability unwinds into revenue classified as "consideration from streaming contract" in note 3. Refer to note 13 for the critical estimates and judgements relating to the contract liability. Changes in the production plan will affect the subsequent measurement prospectively. This is the only input that is considered for subsequent measurement. Harmony's cost of debt of 7.7% was used to impute the finance cost for the significant financing component recognised on the contract liability.
The current portion of the liability is determined with reference to the current production profile of MWS for the next 12 months.
Contract liability and gold delivered
As at 1 October 2020, the balance of gold ounces to be delivered to Franco-Nevada amounted to 100 686oz. Subsequent to 1 October 2020, 16 257oz had been delivered to Franco-Nevada bringing the balance of gold ounces to be delivered as at 30 June 2021 to 84 429oz.
The contract price receivable in US$/oz for each ounce of gold delivered is as follows:
•1 October 2020 – 16 December 2020: US$433/oz
•17 December 2020 – 30 June 2021: US$437/oz
Reconciliation of the streaming contract liability:
At
Figures in million30 June 2021
(Reviewed)
Balance at 1 October 2020 – initial recognition1 417 
Finance costs related to significant financing component71 
Non-cash consideration for delivery of gold ounces(397)
Closing balance at 30 June 20211 091 
– Current396 
– Non-current695 

34

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
13.    ACQUISITIONS AND BUSINESS COMBINATIONS
ACQUISITION OF ANGLOGOLD ASHANTI'S REMAINING SOUTH AFRICAN OPERATIONS
On 12 February 2020, Harmony announced that it had reached an agreement with AGA to purchase the Mponeng operations and related assets. Harmony's primary goal with the acquisition was to improve the group's overall recovered grade and increase cash flow margins. The transaction includes the following assets and liabilities:
•The Mponeng, Tau Tona and Savuka mines and associated rock-dump and tailings storage facility reclamation sites, mine rehabilitation and closure activities located in the West Wits region and their associated assets and liabilities;
•Certain rock-dump reclamation, mine rehabilitation and closure activities located in the Vaal River region and their associated assets and liabilities (the VR Remaining assets);
•100% of the share capital of First Uranium (Pty) Limited which owns Mine Waste Solutions (Pty) Limited and Chemwes (Pty) Limited as well as associated tailings assets and liabilities (the FUSA Group); and
•100% of the share capital of Covalent Water Company (Pty) Limited (CWC), AngloGold Security Services (Pty) Limited and Masakhisane Investments (Pty) Limited.
The last condition precedent for the acquisition was fulfilled during September 2020, resulting in an acquisition date of 1 October 2020.
Cash generating units identified
Based on management's assessment the transaction meets the definition of a business combination as defined by IFRS 3. The following CGUs were identified in the acquisition:
•the Mponeng business, consisting of the Mponeng, Tau Tona and Savuka mines, forming a single complex, and their associated assets and liabilities, including CWC;
•the West Wits closure business, consisting of the Savuka plant and associated rock-dump and tailings storage facility reclamation sites, mine rehabilitation and closure activities located in the West Wits region and the associated assets and liabilities;
•Mine Waste Solutions (also known as MWS); and
•the Vaal River closure business, consisting of certain rock-dump reclamation, mine rehabilitation and closure activities located in the Vaal River region and their associated assets and liabilities.
Consideration transferred
Consideration for the transaction amounted to a cash payment of R3.4 billion (US$200 million), paid on 30 September 2020, and contingent consideration subject to the following criteria:
•US$260 per ounce payable on all underground production from the Mponeng, Savuka and Tau Tona mines in excess of 250 000 ounces per year for six years commencing 1 January 2021; and
•US$20 per ounce payable on underground production from the Mponeng, Savuka and Tau Tona mines sourced from levels developed in the future below the current infrastructure.
As at 1 October 2020, the contingent consideration was valued at R229 million by using a probability weighted method, discounted at a post-tax real rate of 10.6%. Subsequent to initial recognition, the assumptions applied for the valuation of the liability were updated. As at 30 June 2021, the contingent consideration was valued at R417 million using a post-tax real discount rate of 10.3%. The remeasurement of the liability of R188 million is included in Other operating expenses and relates primarily to a change in the production profile, which is based on Harmony's life-of-mine plan. The fair value calculated for the contingent consideration is level 3 in the fair value hierarchy due to the use of unobservable inputs. The contingent consideration attributable to the below infrastructure ounces of gold was valued at Rnil at both 1 October 2020 and 30 June 2021.
The amount disclosed in the cash flow statement for cash paid for the acquisition of the Mponeng operations and related assets is determined as follows:
Figures in million30 June 2021
(Reviewed)
Cash consideration paid3 366 
Cash acquired(3)
Net cash paid on 30 September 20203 363 
Acquisition and integration costs
The total of R124 million for acquisition costs for the year ended 30 June 2021 relates to various costs directly attributable to the acquisition process. These costs include attorney and advisory fees.
There have also been costs incurred for the integration of the acquired assets into Harmony's existing structures and systems. These costs include project management and consultancy fees and software licensing costs required to interface with the Harmony systems. These costs amounted to R205 million (2020: R4 million) for the year ended 30 June 2021 and have been included in Corporate, administration and other expenditure.

35

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
13.    ACQUISITION OF ANGLOGOLD ASHANTI'S REMAINING SOUTH AFRICAN OPERATIONS continued
Identifiable assets acquired and liabilities assumed
The fair value exercise was prepared on a provisional basis in accordance with IFRS 3. The values measured on a provisional basis included, inter alia, property, plant and equipment, the environmental rehabilitation provision and the deferred tax associated with these balances. Management is still in the process of gathering and assessing certain information on key estimations and the impact thereof on the provisional fair values. No measurement period adjustments have been recognised for the year ended 30 June 2021.
The measurement period ends on 30 September 2021. Any information that materially impacts on amounts previously recorded will be considered when finalising the fair value exercise. The necessary adjustments to the provisional balances as at 1 October 2020 and any resulting subsequent measurement adjustments will be made to the June 2021 results and financial position in reports issued after 30 September 2021, which may include the 2021 annual financial statements to be issued at the end of October 2021.
Critical estimates and assumptions of business valuations performed
Key assumptions for the valuation of the respective CGUs are the gold prices, marketable discount rates, exchange rates and life-of-mine plans. Due to the volatility associated with the potential upside driven by the higher gold prices in the short to medium term, management opted to adopt conservative gold price assumptions in order to accommodate for this, which is still in line with a market participant's view. Management has considered the impact of the Covid-19 pandemic on the valuations performed and made adjustments to the production and cost estimates for the respective CGUs.
The fair value of the identifiable net assets acquired was determined on the expected discounted cash flows based on the life-of-mine plans of the Mponeng business (Mponeng), West Wits closure business (WW), Mine Waste Solutions (MWS) and the Vaal River closure business (VR). The post-tax real discount rates used ranged from 8.5% to 11.6%, real exchange rates ranged between R14.41/US$1 and R16.75/US$1, real gold prices ranged between US$1 308/oz and US$1 784/oz. The valuation was performed as at 1 October 2020.
As part of determining the fair value of the provision for environmental rehabilitation the pre-tax risk-free rates used for discounting ranged between 5.1% and 11.5% while inflation of 5.0% was used for cost escalation.
The fair value of the unfavourable contract liability which forms part of the streaming arrangement with Franco-Nevada was measured at the difference between a market analyst consensus of gold prices and the fixed cash consideration to be received for gold delivered. A post-tax real rate of 11.6% was used to discount the liability over the expected period of delivery to settle the contract.
The deferred tax rates used to calculate deferred tax is based on the current estimate of future profitability when temporary differences will reverse based on tax rates and tax laws that have been enacted at acquisition date. The calculated deferred tax rates as at 1 October 2020 were 10.1% for Mponeng and WW, 20.8% for VR and 18.0% for MWS.
Provisional fair value determination of acquired operations
The provisional fair values as at the acquisition date are as follows:
Figures in million30 June 2021
(Reviewed)
Non-current assets
Property, plant and equipment6 547 
Restricted cash and investments1 268 
Deferred tax assets103 
Current assets
Inventories454 
Trade and other receivables1
59 
Cash and cash equivalents3 
Non-current liabilities
Deferred tax liabilities(251)
Provision for environmental rehabilitation(1 442)
Other non-current liabilities(41)
Streaming contract liability(938)
Current liabilities
Trade and other payables(535)
Streaming contract liability(479)
Fair value of net identifiable assets acquired at 1 October 2020 (provisional)4 748 
1    The gross contractual amounts receivable is equal to the fair value of the receivables as at acquisition date
36

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
13.    ACQUISITION OF ANGLOGOLD ASHANTI'S REMAINING SOUTH AFRICAN OPERATIONS continued
Identifiable assets acquired and liabilities assumed continued
Groundwater pollution liability
During an assessment of the environmental liabilities associated with the acquisition, a risk related to the potential decant and pollution of groundwater from the tailings storage facilities was identified. Management is still in the process of formulating a strategy for mitigating the risk.
A contingent liability acquired in a business combination is recognised in the acquisition accounting if it is a present obligation and its fair value can be measured reliably. Based on Harmony's initial assessment, a liability of R71 million has been raised as part of the provision for environmental rehabilitation assumed in the business combination.
Performance of acquired operations
For the nine months ended 30 June 2021, the operations acquired contributed revenue of R7 920 million and profit R1 765 million. Should the acquisition have occurred on 1 July 2020, the group’s pro forma consolidated revenue would have been R44 718 million and pro forma consolidated profit would have been R6 550 million.
Adjustments made to pro forma information
For the nine months of October 2020 to June 2021, the revenue and production cost figures as per the segmental operating results were used, with adjustments made to determine the profit/(loss) after tax of the acquired operations. These adjustments were:
•Non-cash consideration recognised from the streaming arrangement;
•Depreciation expensed;
•Costs incurred directly attributable to the acquisition;
•Investment income recognised from restricted cash and investments;
•Finance costs recognised for provisions for environmental rehabilitation; and
•Finance costs recognised for significant financing components of the streaming arrangement.
For the three months of July to September 2020 (Q1), the segment operational results of AGA was used. Adjustments made to pro forma information to determine profit/(loss) were as follows:
•Depreciation expensed for Q1 was estimated based on the fair values determined as at 1 October 2020. AGA did not recognise depreciation for Q1 in line with IFRS 5, Non-Current Assets Held For Sale.
•Non-cash consideration from the streaming arrangement, finance costs for provisions for environmental rehabilitation and the streaming arrangement for Q1 were based on the fair values determined as at 1 October 2020, using Harmony's accounting policies.
Gain on bargain purchase
Gain on bargain purchase has been recognised as follows:
Figures in million30 June 2021
(Reviewed)
Consideration paid
– Cash consideration3 366 
– Contingent consideration229 
Provisional fair value of net identifiable assets acquired(4 748)
Gain on bargain purchase (provisional)(1 153)

The provisional gain on bargain purchase realised can be attributed to the higher gold prices and R/US$ exchange rate assumptions that were used in the business valuations performed as at 1 October 2020 when compared to the assumptions used when the transaction was negotiated. The gold price and exchange rate assumptions were impacted by the market uncertainty surrounding the Covid-19 pandemic, which has had a significant impact on the short- and medium-term assumptions that were included in the valuations.
Gain on bargain purchase has been included as a separate line item in the income statement.
37

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
14.    FINANCIAL RISK MANAGEMENT ACTIVITIES
The Covid-19 pandemic continues to impact on various aspects of Harmony's operating environment. Where relevant, reference is made to certain impacts in the discussions below, however a detailed discussion thereof is included in note 2.
Foreign exchange risk
Harmony's revenues are sensitive to the R/US$ exchange rate as all revenues are generated by gold sales denominated in US$. A weakening of the Rand will increase the reported revenue total; conversely a strengthening will decrease it.
Harmony maintains a foreign currency derivative programme to manage foreign exchange risk. The limit currently set by the Board is 25% of the group's foreign exchange risk exposure for a period of 24 months. The audit and risk committee reviews the details of the programme quarterly. Refer to note 10 and the fair value determination section below for further detail on these contracts.
The Rand strengthened during the financial year ended 30 June 2021, from R17.32/U$1 on 30 June 2020 to close at R14.27/US$1 on 30 June 2021. This positively impacted on the derivative valuations. The Rand's levels also impacted positively on the translation of the US$ debt facilities at 30 June 2021. Refer to note 11 for detail.
Commodity price sensitivity
The profitability of the group’s operations, and the cash flows generated by those operations, are mainly affected by changes in the market price of gold, and in the case of Hidden Valley, silver as well. Harmony entered into derivative contracts to manage the variability in cash flows from the group’s production, in order to create cash certainty and protect the group against lower commodity prices. The general limit for gold hedging currently set by the Board is 20% for a 24-month period. The limit set by the Board is 50% of silver exposure over a 24-month period. The audit and risk committee reviews the details of the programme quarterly. Refer to note 10 and the fair value determination section below for further detail on these contracts.
Interest rate risk
The interest rate cuts by both the US Federal Reserve and the SARB had a favourable impact on the cost of debt during the year. This was supported by the strengthening of the Rand on the cost for the US$ facilities, as well as the decreased debt levels as discussed in Capital Risk Management below.
Credit risk
Financial instruments which are subject to credit risk are restricted cash and investments, derivative financial instruments and cash and cash equivalents, all of which are invested with financial institutions that meet the group's policy requirements for credit quality, as well as trade and other receivables (excluding non-financial instruments). In assessing the creditworthiness of local institutions, management uses the national scale long-term ratings.
During the June 2020 financial year, Fitch downgraded the major South African (SA) banks by one notch to AA- from AA following the impact of the Covid-19 pandemic. This rating drop did not have a significantly adverse impact on the credit worthiness of the group's counterparts (SA financial institutions). Fitch increased the credit rating of the major banks to AA+ on 22 December 2020, citing the financial institutions risk appetite and corporate conduct as key factors of the upgrade. At 30 June 2021, the rating of major SA banks remained AA+.
Taking the above events into consideration, the national scale investment grade rating of these banks remains high, between AA- and AA+, and in line with the group's credit risk policy. An assessment of the expected credit losses (ECLs) for the financial assets measured at amortised costs at 30 June 2021 resulted in an immaterial amount for each instrument. Although the credit rating of the group's Australian counterparts moved down a notch from AA- to A+, the assessed ECL remained immaterial.
Management will continue to review the underlying strength of the South African economy as well as the creditworthiness of the financial institutions during this uncertain time and make any changes deemed necessary to safeguard the assets and reduce the credit risk.
Capital risk management
The group's positive financial performance has resulted in the considerable generation of cash through-out the financial year, assisting in the repayment of debt facilities (refer to note 11). It remains the group's objective to adhere to a conservative approach to debt and maintain low levels of gearing.
Net debt is as follows:
At
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Cash and cash equivalents2 819 6 357 
Borrowings(3 361)(7 718)
Net debt(542)(1 361)

38

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
14.    FINANCIAL RISK MANAGEMENT ACTIVITIES continued
Fair value determination
The fair value levels of hierarchy are as follows:
Level 1:Quoted prices (unadjusted) in active markets
Level 2:Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is, as prices) or indirectly (that is derived from prices);
Level 3:Inputs for the asset that are not based on observable market data (that is unobservable inputs).
At
Figures in millionFair value hierarchy level30 June 2021 (Reviewed)30 June 2020 (Audited)
Fair value through other comprehensive income financial instruments
Other non-current assets (a)Level 372 77 
Restricted cash and investments (b)Level 1252 — 
Fair value through profit or loss financial instruments
Restricted cash and investments (b)Level 21 325 837 
Derivative financial assets (c)Level 21 799 68 
Derivative financial liabilities (c)Level 2(212)(5 003)
Loan to ARM BBEE Trust (d)Level 3177 306 
Contingent consideration liability (e)Level 3417 — 
(a)    The majority of the balance relates to the equity investment in Rand Mutual Assurance. The fair value of the investment was estimated with reference to an independent valuation. A combination of the "Embedded Valuation" and "Net Asset Value" techniques were applied to revalue the investment as at 30 June 2021. In evaluating the group's share of the business, common practice marketability and minority discounts as well as additional specific risk discounts were applied.
(b)    The majority of the level 2 valued assets are directly derived from the Top 40 index on the JSE, and are discounted at market interest rates. This relates to equity-linked deposits in the group's environmental rehabilitation trust funds.
The level 1 valued assets were acquired as part of the Mponeng operations and related assets (refer to note 13) and comprises of listed equity securities of R252 million designated as fair value through other comprehensive income instruments.
The remaining balance of the environmental trust funds is carried at amortised cost and therefore not disclosed here.
(c)    The mark-to-market remeasurement of the derivative contracts was determined as follows:
•Foreign exchange contracts comprise of zero cost collars and FECs: The zero cost collars were valued using a Black-Scholes valuation technique derived from spot Rand/US$ exchange rate inputs, implied volatilities on the Rand/US$ exchange rate, Rand/US$ inter-bank interest rates and discounted at a market interest rate (zero-coupon interest rate curve). The value of the FECs is derived from the forward Rand/US$ exchange rate and discounted at a market interest rate (zero coupon interest rate curve).
•Rand gold contracts (forward sale contracts): spot Rand/US$ exchange rate, Rand and dollar interest rates (forward points), spot US$ gold price, differential between the US interest rate and gold lease interest rate which is discounted at a market interest rate.
•US$ gold contracts (forward sale contracts): spot US$ gold price, differential between the US interest rate and gold lease interest rate and discounted at a market interest rate.
•Silver contracts (zero cost collars): a Black-Scholes valuation technique, derived from spot US$ silver price, strike price, implied volatilities, time to maturity and interest rates and discounted at a market interest rate investments.
(d)    Following the refinancing of the loan (refer to note 9), the current year fair value movement was calculated using a discounted cash flow model, taking into account forecasted dividends payments over the estimated repayment period of the loan at a rate of 7.9%. A discounted cash flow model, taking into account projected interest payments and the projected African Rainbow Minerals Limited (ARM) share price on the expected repayment date and using a discount rate of 9.8%, was applied to determine the prior year's fair value. A 74 basis point change in the discount rate, which would represent a reasonably possible change based on expected movements in lending rates, would not cause a material change in the fair value of the loan.
(e)    The consideration for the Mponeng operations and related assets (refer to note 13) includes a contingent consideration determined using the expected gold production profile for Mponeng at a post-tax real rate of 10.3%. Should the expected gold production profile increase by 7% or decrease by 7%, the contingent consideration liability would increase by R208 million or decrease by R183 million, respectively. This represents reasonably expected changes which were determined based on the standard deviation of previous years' production of the Mponeng operation.
The carrying values (less any impairment allowance) of short-term financial instruments are assumed to approximate their fair values. This includes restricted investments carried at amortised cost. The fair values of borrowings are not materially different to their carrying amounts since the interest payable on those borrowings is at floating interest rates. The fair value of borrowings is based on discounted cash flows using a current borrowing rate. The determination of the fair values are level 3 in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
39

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
15.    ADDITIONAL CASH FLOW DISCLOSURES
Cash generated by operations increased year on year primarily due to the higher gold price received (refer to note 3) and the inclusion of the results of the Mponeng operations and related assets (refer to note 13).
Interest received includes R53 million paid by the ARM BBEE Trust on its original loan. Refer to note 9 for detail.
Additions to property, plant and equipment
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Capital expenditure – operations4 062 2 881 
Capital and capitalised exploration and evaluation expenditure for Wafi-Golpu34 54 
Additions resulting from stripping activities1 046 675 
Total additions to property, plant and equipment5 142 3 610 
16.    COMMITMENTS AND CONTINGENCIES
At
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Capital expenditure commitments:
Contracts for capital expenditure373 368 
Authorised by the directors but not contracted for7 425 1 314 
Total capital commitments7 798 1 682 
This expenditure will be financed from existing resources and, where appropriate, borrowings. The increase year on year is due to the inclusion of a number of expansion projects in the life-of-mine plans for the 2022 financial year. These projects include the Zaaiplaats extension at Moab Khotsong, the Kareerand deposition extension at MWS and the Hidden Valley extension
Contingent liabilities not recognised
There were no significant changes during the 2021 financial year. For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended 30 June 2020.
17.    RELATED PARTIES
The table below represents the movements for the year ended 30 June 2021:
Name of director/prescribed officerShares sold in open marketPerformance and deferred shares vested and retained
P Steenkamp (Executive director)— 450 397 
B Lekubo (Executive director)— 3 581 
H Mashego (Executive director)— 3 319 
B Nel (Prescribed officer)— 173 689 
V Tobias (Prescribed officer)1 500 177 597 
M van der Walt (Prescribed officer)— 139 356 
J van Heerden (Prescribed officer)— 6 156 
•On 14 August 2020, Ms Shela Mohatla was appointed as Group Company Secretary by the board of directors. At the same time Ms Marian van der Walt was appointed as Senior Group Executive: Enterprise Risk and Investor Relations and will be regarded as a prescribed officer going forward.
•On 30 September 2020, Harmony announced the resignation of Mr Ken Dicks and Mr Max Sisulu as independent non-executive directors as well as the retirement of Mr Frank Abbott as executive director with effect from 30 September 2020.
•On 18 December 2020, Harmony announced the resignation of Ms Grathel Motau as independent non-executive director with effect from 18 December 2020.
•On 22 February 2021, Harmony announced the appointment of Mr Peter Turner as independent non-executive director with effect from 19 February 2021.
40

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2021 (RAND)
18.    SEGMENT REPORT
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM).
With the purchase of the Mponeng operations and related assets, the following CGUs were identified:
•the Mponeng business;
•the West Wits closure business;
•Mine Waste Solutions; and
•the Vaal River closure business.
The Mponeng business is disclosed separately in the segment report under the underground section while Mine Waste Solutions, the West Wits and the Vaal River Closure businesses are disclosed as part of the other surface operations.
The segment report follows on page 42.
19.    RECONCILIATION OF SEGMENT INFORMATION
Year ended
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Reconciliation of production profit to gross profit
Revenue
41 733 29 245 
– Per segment report40 698 28 307 
– Other metal sales treated as by-product credits in the segment report1 035 938 
Production costs
(29 774)(22 048)
– Per segment report(28 739)(21 110)
– Other metal sales treated as by-product credits in the segment report(1 035)(938)
Production profit per segment report
11 959 7 197 
Amortisation and depreciation
(3 893)(3 508)
Impairment of assets(1 124)— 
Other cost of sales items
(866)(352)
Gross profit as per income statement1
6 076 3 337 
1    The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

At
Figures in million30 June 2021
(Reviewed)		30 June 2020
(Audited)
Reconciliation of total segment assets to consolidated property, plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets211 331 
Undeveloped property3 989 3 681 
Other non-mining assets339 115 
Assets under construction*
2 130 2 989 
6 669 7 116 
*    Assets under construction consist of the Wafi-Golpu assets
20.    SUBSEQUENT EVENTS
On 24 August 2021, a final dividend of 27 SA cents was declared, payable on 18 October 2021.

41

SEGMENT REPORT (RAND/METRIC)
FOR THE YEAR ENDED 30 JUNE 2021 (REVIEWED)
RevenueProduction costProduction
profit/(loss)		Segment assetsCapital expenditureKilograms produced*Tonnes milled*
30 June30 June30 June30 June30 June30 June30 June
20212020202120202021202020212020202120202021202020212020
R millionR millionR millionR millionR millionkgt'000
South Africa
Underground
Tshepong Operations
6 214 5 452 4 865 4 298 1 349 1 154 6 541 6 733 1 112 930 7 419 7 293 1 558 1 417 
Moab Khotsong
6 048 5 008 3 842 3 344 2 206 1 664 4 007 3 842 633 498 7 166 6 592 903 746 
Mponeng4 750 — 2 938 — 1 812 — 4 582 — 493 — 5 446 — 683 — 
Bambanani
1 687 1 591 1 156 1 040 531 551 327 443 71 50 1 992 2 132 227 200 
Joel
1 199 1 037 1 124 1 010 75 27 1 169 1 080 172 151 1 424 1 391 359 349 
Doornkop
3 077 2 270 2 140 1 730 937 540 2 994 2 841 425 281 3 670 2 994 851 681 
Target 1
1 410 1 524 1 667 1 499 (257)25 1 367 1 276 368 347 1 603 2 244 488 543 
Kusasalethu
3 400 2 293 2 955 2 577 445 (284)1 057 1 253 205 188 3 999 3 015 708 615 
Masimong
1 636 1 401 1 427 1 258 209 143 26 41 29 24 2 012 1 999 510 489 
Unisel1
224 681 182 580 42 101 — 6 — 7 247 982 57 219 
Surface
All other surface operations
7 025 3 302 4 724 2 135 2 301 1 167 2 499 745 335 118 8 088 4 349 39 489 16 264 
Total South Africa
36 670 24 559 27 020 19 471 9 650 5 088 24 569 18 260 3 843 2 594 43 066 32 991 45 833 21 523 
International
Hidden Valley
4 028 3 748 1 719 1 639 2 309 2 109 3 128 3 810 1 260 959 4 689 4 872 3 420 3 906 
Total international
4 028 3 748 1 719 1 639 2 309 2 109 3 128 3 810 1 260 959 4 689 4 872 3 420 3 906 
Total operations
40 698 28 307 28 739 21 110 11 959 7 197 27 697 22 070 5 103 3 553 47 755 37 863 49 253 25 429 
Reconciliation of the segment information to the consolidated income statement and balance sheet (refer to note 19)
1 035 938 1 035 938 — — 6 669 7 116 
41 733 29 245 29 774 22 048 11 959 7 197 34 366 29 186 5 103 3 553 47 755 37 863 49 253 25 429 
*    Production statistics are unaudited and not reviewed.
1    The Unisel operation closed in October 2020.
42

CONDENSED CONSOLIDATED INCOME STATEMENT (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED AND UNREVIEWED)
Year ended
Figures in million30 June 202130 June 2020
Revenue2 710 1 867 
Cost of sales(2 321)(1 655)
Production costs(1 933)(1 409)
Amortisation and depreciation(253)(224)
Impairment of assets(79)— 
Other items(56)(22)
Gross profit389 212 
Corporate, administration and other expenditure(69)(39)
Exploration expenditure(11)(13)
Gains/(losses) on derivatives66 (107)
Foreign exchange translation gain/(loss)44 (57)
Other operating expenses(36)(20)
Operating profit/(loss)383 (24)
Gain on bargain purchase69 — 
Acquisition-related costs(8)(3)
Share of profits from associates5 6 
Investment income21 24 
Finance costs(43)(42)
Profit/(loss) before taxation427 (39)
Taxation(75)(17)
Current taxation(35)(4)
Deferred taxation(40)(13)
Net profit/(loss) for the year352 (56)
Attributable to:
Non-controlling interest2 2 
Owners of the parent350 (58)
Earnings/(loss) per ordinary share (cents)
Basic earnings/(loss)58 (10)
Diluted earnings/(loss)56 (11)
The currency conversion average rates for the 12 months ended 30 June 2021: US$1 = R15.40 (30 June 2020: US$1 = R15.66).

Note on convenience translations
The requirements of IAS 21 The Effects of the Changes in Foreign Exchange Rates have not necessarily been applied in the translation of the US Dollar financial statements presented on page 43 to 47.

43

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED AND UNREVIEWED)
Year ended
Figures in million30 June 202130 June 2020
Net profit/(loss) for the year352 (56)
Other comprehensive income for the year, net of income tax211 (124)
Items that may be reclassified subsequently to profit or loss:210 (127)
Foreign exchange translation gain/(loss)
(80)77 
Remeasurement of gold hedging contracts
290 (204)
Items that will not be reclassified to profit or loss1 3 
Total comprehensive income for the year563 (180)
Attributable to:
Non-controlling interest3 — 
Owners of the parent560 (180)
The currency conversion average rates for the 12 months ended 30 June 2021: US$1 = R15.40 (30 June 2020: US$1 = R15.66).

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (US$)
FOR THE YEAR ENDED 30 JUNE 2021 (CONVENIENCE TRANSLATION) (UNAUDITED AND UNREVIEWED)
Figures in millionShare capitalAccumulated lossOther
reserves		Non-controlling interestTotal
Balance – 1 July 20202 308 (882)211 — 1 637 
Share-based payments— — 11 — 11 
Net profit for the year— 389 — 3 392 
Other comprehensive income for the year— — 226 1 227 
Dividends paid— (47)— — (47)
Balance – 30 June 20212 308 (540)448 4 2 220 
Balance – 1 July 20191 707 (675)275 — 1 307 
Issue of shares195 — — — 195 
Share-based payments— — 11 — 11 
Net profit/(loss) for the year— (51)— 2 (49)
Other comprehensive income for the year— — (112)(2)(114)
Balance – 30 June 20201 902 (726)174 — 1 350 
The currency conversion closing rates for the year ended 30 June 2021: US$1 = R14.27 (30 June 2020: US$1 = R17.32).
44

CONDENSED CONSOLIDATED BALANCE SHEET (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED AND UNREVIEWED)
At
Figures in million30 June 202130 June 2020
ASSETS
Non-current assets
Property, plant and equipment2 409 1 685 
Intangible assets26 31 
Restricted cash and investments367 209 
Investments in associates9 8 
Deferred tax assets14 31 
Other non-current assets23 25 
Derivative financial assets23 3 
Total non-current assets2 871 1 992 
Current assets
Inventories178 140 
Restricted cash and investments5 4 
Trade and other receivables116 75 
Derivative financial assets103 1 
Cash and cash equivalents198 367 
Total current assets600 587 
Total assets3 471 2 579 
EQUITY AND LIABILITIES
Share capital and reserves
Attributable to equity holders of the parent company2 216 1 350 
Share capital2 308 1 902 
Other reserves448 174 
Accumulated loss(540)(726)
Non-controlling interest4 — 
Total equity2 220 1 350 
Non-current liabilities
Deferred tax liabilities154 58 
Provision for environmental rehabilitation327 197 
Other provisions65 52 
Borrowings208 431 
Contingent consideration liability29 — 
Other non-current liabilities12 6 
Derivative financial liabilities— 51 
Streaming contract liability49 — 
Total non-current liabilities844 795 
Current liabilities
Other provisions12 10 
Borrowings28 15 
Trade and other payables325 171 
Derivative financial liabilities14 238 
Streaming contract liability28 — 
Total current liabilities407 434 
Total equity and liabilities3 471 2 579 
The balance sheet for 30 June 2021 converted at a conversion rate of US$1 = R14.27 (30 June 2020: US$1 = R17.32)
45

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED AND UNREVIEWED)
Year ended
Figures in million30 June 202130 June 2020
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated by operations633 321 
Dividends received6 — 
Interest received11 5 
Interest paid(15)(24)
Income and mining taxes paid(38)(2)
Cash generated from operating activities597 300 
CASH FLOW FROM INVESTING ACTIVITIES
Increase in restricted cash and investments(3)(1)
Amounts refunded from restricted cash and investments2 — 
Redemption of preference shares from associates2 4 
Acquisition of Mponeng operations and related assets(200)— 
ARM BBEE Trust loan repayment17 — 
ARM BBEE Trust loan advanced(17)— 
Capital distribution from investments1 — 
Proceeds from disposal of property, plant and equipment1 — 
Additions to property, plant and equipment(334)(230)
Cash utilised by investing activities(531)(227)
CASH FLOW FROM FINANCING ACTIVITIES
Borrowings raised— 418 
Borrowings repaid(227)(361)
Proceeds from the issue of shares— 200 
Dividends paid(44)— 
Lease payments(8)(2)
Cash generated/(utilised) by financing activities(279)255 
Foreign currency translation adjustments44 (31)
Net increase/(decrease) in cash and cash equivalents(169)297 
Cash and cash equivalents – beginning of year367 70 
Cash and cash equivalents – end of year198 367 
The currency conversion average rates for the 12 months ended 30 June 2021: US$1 = R15.40 (30 June 2020: US$1 = R15.66).
The closing balance translated at closing rate of 30 June 2021: US$1 = R14.27 (30 June 2020: US$1 = R17.32).
46

SEGMENT REPORT (US$/IMPERIAL)
FOR THE YEAR ENDED 30 JUNE 2021 (CONVENIENCE TRANSLATION) (UNAUDITED AND UNREVIEWED)
RevenueProduction costProduction profit/(loss)Segment assetsCapital expenditureOunces producedTons milled
30 June30 June30 June30 June30 June30 June30 June
20212020202120202021202020212020202120202021202020212020
US$ millionUS$ millionUS$ millionUS$ millionUS$ millionozt'000
South Africa
Underground
Tshepong Operations403 348 316 274 87 74 458 389 72 59 238 526 234 475 1 718 1 562 
Moab Khotsong393 320 249 213 144 107 281 222 41 32 230 391 211 938 995 822 
Mponeng308 — 191 — 117 — 321 — 32 — 175 092 — 753 — 
Bambanani110 102 75 66 35 36 23 26 5 3 64 044 68 545 250 221 
Joel78 66 73 64 5 2 82 62 11 10 45 783 44 722 396 384 
Doornkop200 145 139 110 61 35 210 164 28 18 117 993 96 259 938 750 
Target 192 97 108 96 (16)1 96 74 24 22 51 536 72 146 537 598 
Kusasalethu221 146 192 165 29 (19)74 72 13 12 128 570 96 934 780 678 
Masimong106 89 93 80 13 9 2 2 2 2 64 687 64 269 563 539 
Unisel1
15 43 12 37 3 6 — — — — 7 941 31 573 63 242 
Surface
All other surface operations456 212 306 138 150 74 175 43 21 8 260 034 139 823 43 547 17 935 
Total South Africa2 382 1 568 1 754 1 243 628 325 1 722 1 054 249 166 1 384 597 1 060 684 50 540 23 731 
International
Hidden Valley262 239 112 105 150 134 219 220 82 61 150 755 156 639 3 772 4 307 
Total international262 239 112 105 150 134 219 220 82 61 150 755 156 639 3 772 4 307 
Total operations2 644 1 807 1 866 1 348 778 459 1 941 1 274 331 227 1 535 352 1 217 323 54 312 28 038 
1    The Unisel operation closed in October 2020

47

DEVELOPMENT RESULTS
FOR THE YEAR ENDED 30 JUNE 2021
METRIC
CHANNEL
ReefSampledWidthValueGold
metersmeters(cm's)(g/t)(cmg/t)
Tshepong
Basal
8607848.46121.941 032
B Reef
459410158.1420.423 229
All Reefs
1 3191 19459.8629.841 786
Phakisa
Basal
1 0661 05642.7031.311 337
All Reefs
1 0661 05642.7031.311 337
Bambanani
Basal
—————
All Reefs
—————
Doornkop
South Reef
1 7131 41965.5313.62893
All Reefs
1 7131 41965.5313.62893
Kusasalethu
VCR Reef
28234048.9621.421 049
All Reefs
28234048.9621.421 049
Target 1
Elsburg/Dryerskuil
368176256.5910.522 700
All Reefs
368176256.5910.522 700
Masimong 5
Basal
1 04484690.7414.861 348
B Reef
791906103.1021.782 246
All Reefs
1 8351 75297.1318.661 813
CHANNEL
ReefSampledWidthValueGold
metersmeters(cm's)(g/t)(cmg/t)
Joel
Beatrix
1 8061 764137.726.87946
All Reefs
1 8061 764137.726.87946
Moab Khotsong
Vaal Reef
1 144710102.8935.343 636
C Reef
All Reefs
1 144710102.8935.343 636
Mponeng
VCR
70962270.0250.383 528
Carbon Leader1056628.3644.971 275
All Reefs
81568866.0350.163 312
Total Harmony
Basal
2 9702 68647.8426.161 252
Beatrix
1 8061 764137.726.87946
B Reef
1 2501 316261.2442.205 475
Elsburg/Dryerskuil
368176256.5910.522 700
Vaal Reef
1 144710102.8935.343 636
South Reef
1 7131 41965.5313.62893
VCR
991962118.9871.814 577
Carbon Leader1056628.3644.971 275
All Reefs10 3479 09988.2519.111 687
Rounding of numbers may result in slight computational discrepancies.
48

DEVELOPMENT RESULTS continued
FOR THE YEAR ENDED 30 JUNE 2021
IMPERIAL
CHANNEL
ReefSampledWidthValueGold
feetfeet(inch)(oz/t)(in.oz/t)
Tshepong
Basal
2 8212 5723.003.9512
B Reef
1 5061 34562.000.6037
All Reefs
4 3273 91724.000.8521
Phakisa
Basal
3 4993 46517.000.9015
All Reefs
3 4993 46517.000.9015
Bambanani
Basal
—————
All Reefs
—————
Doornkop
South Reef
5 6214 65626.000.3910
All Reefs
5 6214 65626.000.3910
Kusasalethu
VCR Reef
9241 11519.000.6312
All Reefs
9241 11519.000.6312
Target 1
Elsburg/Dryerskuil
1 206577101.000.3131
All Reefs
1 206577101.000.3131
Masimong 5
Basal
3 4242 77636.000.4315
B Reef
2 5962 97241.000.6326
All Reefs
6 0205 74838.000.5521
CHANNEL
ReefSampledWidthValueGold
feetfeet(inch)(oz/t)(in.oz/t)
Joel
Beatrix
5 9265 78754.000.2011
All Reefs
5 9265 78754.000.2011
Moab Khotsong
Vaal Reef
3 7532 32941.001.0242
C Reef
All Reefs3 7532 32941.001.0242
Mponeng
VCR
2 3272 04128.001.4541
Carbon Leader
34621711.001.3315
All Reefs
2 6732 25726.001.4638
Total Harmony
Basal
9 7438 81319.000.7614
Beatrix
5 9265 78754.000.2011
B Reef
4 1024 317103.000.6163
Elsburg/Dryerskuil
1 206577101.000.3131
Vaal Reef
3 7532 32941.001.0242
South Reef
5 6214 65626.000.3910
VCR
3 2513 15647.001.1253
Carbon Leader34621711.001.3315
All Reefs
33 94729 85235.000.5519
Rounding of numbers may result in slight computational discrepancies.
49

COMPETENT PERSON'S DECLARATION
Harmony Gold Mining Company Limited’s statement of mineral resources and mineral reserves as at 30 June 2021 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 26 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 32 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.

DIRECTORATE AND ADMINISTRATION
HARMONY GOLD MINING COMPANY LIMITED
TRANSFER SECRETARIES
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
JSE Investor Services (Proprietary) Limited
(Registration number 2000/007239/07)
19 Ameshoff Street, 13th Floor, Hollard House, Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
E-mail: info@jseinvestorservices.co.za
Fax: +27 86 674 4381
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
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
DIRECTORS
Dr PT Motsepe* (chairman), JM Motloba* (deputy chairman), M Msimang*^ (lead independent director), PW Steenkamp (chief executive officer),
BP Lekubo (financial director), HE Mashego (executive director)
JA Chissano*^#, FFT De Buck*^, Dr DSS Lushaba*^, KT Nondumo*^, VP Pillay*^, GR Sibiya*^, JL Wetton*^, AJ Wilkens*, P Turner*^
* Non-executive
^ Independent
# Mozambican
SPONSOR
JP Morgan Equities South Africa (Proprietary) 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
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Telephone: +27 11 411 6073 or +27 82 746 4120
TRADING SYMBOLS
COMPANY SECRETARIAT
ISIN: ZAE 000015228
E-mail: companysecretariat@harmony.co.za
Telephone: +27 11 411 2359
50

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Harmony Gold Mining Company Limited
Date: August 31, 2021
By: /s/ Boipelo Lekubo
Name: Boipelo Lekubo
Title: Financial Director