6-K 1 provisionalcondensedfsdece.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 February 23, 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 ☒





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”)
INTERIM RESULTS FY21*
for the six-month period ended 31 December 2020
HIGHLIGHTS for the six-month period ended 31 December 2020 (H1FY21) vs
the six-month period ended 31 December 2019 (H1FY20)**
RESPONSIBLE
STEWARDSHIP
• 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#
• Ranked first in ESG disclosure among
South African mining companies
• FTSE4Good constituent
• Included in the Bloomberg Gender Equality
Index 2021
• Runner-up in the Sunday Times Top 100
Companies Awards 2020
    
OPERATIONAL
EXCELLENCE
• 65% increase in production profit
to R6.8bn (US$417m) from R4.1bn (US$280m)
• 5% increase in underground recovered grade
to 5.58g/t from 5.29g/t
• 8% increase in gold production
to 23 183kg (745 314oz) from
21 411kg (688 379oz)
• 42% increase in total mineral resources
• 20% increase in total mineral reserves



CASH
CERTAINTY
• 69% increase in operating free
cash flow margin to 22% from 13%
• 336% increase in net profit
to R5.8bn (US$356m) from R1.3bn (US$91m)
• 58% reduction in net debt
to R580m (US$40m) from R1.4bn (US$79m)
• 31% increase in Rand gold price received
to R896 587/kg (US$1 716/oz)
from R683 158/kg (US$1 447/oz)
• R902m (US$56m) net gain on derivatives
• HEPS increased by 211% to 775 SA cents
(48 US cents) from 249 SA cents (17 US cents)
• Net debt to EBITDA at 0.1x
    
EFFECTIVE
CAPITAL ALLOCATION
• Successful integration of Mponeng
and Mine Waste Solutions – 3 months of
production resulting in a significant increase
in our overall grade, production and cash flow
• Strong pipeline of organic projects to drive
production profile and margin expansion
• Interim dividend^ of 110 SA cents (7.5 US) cents
per share declared





*    These interim results have been reviewed by our external auditors, PricewaterhouseCoopers Incorporated
**     For the US$ comparative % increase please see our results presentation
#     ESG = Environmental, social and governance
†    The mineral reserves are included in the business valuation of the operations acquired from AngloGold Ashanti Limited, while the resources are per their mineral resources statement as at December 2019
^    See dividend notice on page 7 for the details
‡    Illustrative equivalent based on the exchange rate of R14.64 as at 19 February 2021
1


OPERATING RESULTS
Six months
ended
December 2020
Six months
ended
December 2019
%
Change
Six months
ended
June 2020*
% change relates to the six months ended June 2020 vs December 2020
Gold producedkg23 183 21 411 16 452 41 
oz745 347 688 379 528 944 41 
Underground gradeg/t5.58 5.29 5.69 (2)
Gold price receivedR/kg896 587 683 158 31 805 300 11 
US$/oz1 716 1 447 19 1 504 14 
Cash operating costsR/kg596 047 499 139 (19)624 276 
US$/oz1 141 1 057 (8)1 166 
Total costs and capitalR/kg697 026 603 302 (16)704 708 
US$/oz1 334 1 278 (4)1 316 (1)
All-in sustaining costsR/kg715 837 605 911 (18)711 818 (1)
US$/oz1 370 1 283 (7)1 329 (3)
Production profitR million6 780 4 110 65 3 086 120 
US$ million417 280 49 185 125 
Exchange rateR:US$16.25 14.69 11 16.65 (2)
* Six-month period ended June 2020 included to illustrate the impact of COVID-19 on operations during the first half of the calendar year
FINANCIAL RESULTS
Six months
ended
December 2020
Six months
ended
December 2019
%
Change
Basic earnings per shareSA cents966 249 288 
US cents59 17 247 
Headline earningsR million4 644 1 331 249 
US$ million286 91 214 
Headline earnings per shareSA cents775 249 211 
US cents48 17 181 
Please refer to our website for the full results presentation: https://www.harmony.co.za/invest/financials/fy21
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), with respect to our financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters. These forward-looking statements, including, among others, those relating to our future business prospects, revenues, and the potential benefit of acquisitions (including statements regarding growth and cost savings) wherever they may occur in this presentation and the exhibits to this presentation, are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in our integrated annual report. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: overall economic and business conditions in South Africa, Papua New Guinea, Australia and elsewhere; impact of COVID-19 on our operational and financial estimates and results; estimates of future earnings, and the sensitivity of earnings to the prices of gold and other metals 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 operations; fluctuations in the market price of gold; the occurrence of hazards
associated with underground and surface gold mining; the occurrence of labour disruptions related to industrial action or health and safety incidents; power cost increases as well as power stoppages, fluctuations and usage constraints; supply chain shortages and increases in the prices of production imports and the availability, terms and deployment of capital; our ability to hire and retain senior management, sufficiently technically-skilled employees, as well as our ability to achieve sufficient representation of historically disadvantaged persons in management positions; our ability to comply with requirements that we operate in a sustainable manner and provide benefits to affected communities; potential liabilities related to occupational health diseases; changes in government regulation and the political environment, particularly tax and royalties, mining rights, health, safety, environmental regulation and business ownership including any interpretation thereof; court decisions affecting the mining industry, including, without limitation, regarding the interpretation of mining rights; our ability to protect our information technology and communication systems and the personal data we retain; risks related to the failure of internal controls; the outcome of pending or future litigation or regulatory proceedings; fluctuations in exchange rates and currency devaluations and other macroeconomic monetary policies; the adequacy of the 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.
2


CONTENTS
PAGE
2Forward-looking statements
3Shareholder information
4Message from the chief executive officer
7Notice of cash dividend
8Operating results – year-on-year (Rand/metric)
10Operating results – year-on-year (US$/imperial)
12Review report from external auditor
13Condensed consolidated income statement (Rand)
14Condensed consolidated statement of comprehensive income (Rand)
14Condensed consolidated statement of changes in equity (Rand)
15Condensed consolidated balance sheet (Rand)
16Condensed consolidated cash flow statement (Rand)
17Notes to the condensed consolidated financial statements
35Segment report (Rand/metric)
36Condensed consolidated income statement (US$)
37Condensed consolidated statement of comprehensive income (US$)
37Condensed consolidated statement of changes in equity (US$)
38Condensed consolidated balance sheet (US$)
39Condensed consolidated cash flow statement (US$)
40Segment report (US$/imperial)
41Development results – metric and imperial
42Competent person's declaration
43Directorate and administration

SHAREHOLDER INFORMATION
Issued ordinary share capital 31 December 2020616 052 197
Issued ordinary share capital 30 June 2020603 142 706
MARKET CAPITALISATION
As at 31 December 2020 (ZARm)44 109
As at 31 December 2020 (US$m)3 003
As at 30 June 2020 (ZARm)43 342
As at 30 June 2020 (US$m)2 494
HARMONY ORDINARY SHARES AND ADR PRICES
12-month high (1 January 2020 – 31 December 2020) for ordinary shares (ZAR)124.95
12-month low (1 January 2020 – 31 December 2020) for ordinary shares (ZAR)33.62
12-month high (1 January 2020 – 31 December 2020) for ADRs (US$)7.10
12-month low (1 January 2020 – 31 December 2020) for ADRs (US$)1.93
FREE FLOAT100 %
American Depositary Receipt ("ADR") RATIO1:1
JSE LIMITEDHAR
Average daily volume for the year
(1 January 2020 – 31 December 2020)
4 320 919
Average daily volume for the previous year
(1 January 2019 – 31 December 2019)
2 313 153
NEW YORK STOCK EXCHANGEHMY
Average daily volume for the year
(1 January 2020 – 31 December 2020)
7 601 064
Average daily volume for the previous year
(1 January 2019 – 31 December 2019)
6 152 535
INVESTORS' CALENDAR
FY21 results presentation31 August 2021
3


MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
OVERVIEW
Harmony delivered an outstanding set of numbers for the first half of the financial year ("H1FY21"), in line with our strategy of producing safe, profitable ounces and increasing margins. These results are a true reflection of how Harmony has transformed and de-risked its business since January 2016. While the majority of our gold still comes from underground mining, we have increased the contribution from higher margin and lower risk surface sources to approximately 30% of our total production (from 15% in January 2016).
Our people and their safety have never been more important as we continue to face and manage the challenges brought about by the COVID-19 pandemic.
Net profit increased by 336% to R5 812 million (US$356 million) for H1FY21 compared to R1 332 million (US$91 million) in the six months ended 31 December 2020 ("H1FY20") as a result of an increase in the average recovered underground grade and higher production from our underground operations, supported by a higher average R/kg gold price received. We have successfully integrated Mponeng and Mine Waste Solutions into our portfolio and have already seen an increase in grade, production and cash flow since we took ownership of these assets on 1 October 2020.
Operating free cash flow of R4 702 million (US$289 million) for the period allowed us to repay a significant portion of our debt, resulting in a robust balance sheet.
As a result of our investment in growth assets, a stronger operational performance from our mines in H1FY21 and a strategy aimed at delivering positive shareholder returns, we are pleased to announce an interim dividend of 110 SA cents (7.5 US cents).
RESPONSIBLE STEWARDSHIP
Safety and health
Safety is a foundational value at Harmony and it is of utmost importance that we ensure safe production at all our operations. The development of safety leadership capability, embedded safety practices, embracing a safety culture and improved employee engagement will entrench safe behaviour across all our employees at all times.
Risk management is an essential step in ensuring that our employees and working areas are safe at all times. Harmony remains committed to the elimination of work-related injuries and fatalities. We continue to address specific causes of work-related events resulting in injury and loss of life, focusing on improving our safety in general and embedding a proactive safety culture. It remains a continuous journey of engagement, training, creating awareness, learning from each other and caring for each other.
It is therefore with great sadness that we report six of our colleagues lost their lives in mine-related incidents in the six-month period ended 31 December 2020. It is simply not acceptable and will never be acceptable. We pay our respects to Zamokuhle Shabane (team leader, Bambanani), Zakhele Lubisi, (artisan, Kusasalethu), Alexis Lesiamang Ntjantso (driller, Doornkop), Tsoaela Botsane (supervisor, Tshepong), Tisetso Pati (winch operator, Tshepong) and Rakitsi Seseli (driller, Kusasalethu) and extend our deepest condolences to their families, friends and colleagues.
A number of our mines have recorded some significant safety milestones and we are seeing progress as we work on embedding a proactive safety culture. Our total injury and accident frequency rate has improved over the past decade and is now at 7.69 per million hours worked as we strive towards our goal of zero loss of life. Despite this progress, the group fatality injury frequency rate regressed in H1FY21, increasing to 0.13 per million hours (FY20: 0.08).
COVID-19 remains a major focus with continued co-ordination from all stakeholders, management and employees towards fighting the pandemic. The focus remains on limiting or eliminating the spread of COVID-19 at all our operations and keeping our employees safe.
A multi-disciplinary response team was established at the start of the pandemic to ensure compliance and alignment of all COVID-19 related processes. Harmony also developed and implemented a Standard Operating Procedure to assist in the prevention and transmission of COVID-19 at its operations in South Africa and Papua New Guinea (PNG).
Employees who were scheduled to go home for the festive season were required to sign a registration form and full screening was conducted. A return to work process was designed and implemented to ensure a safe return of all employees to the workplace. About 7 000 of our employees travelled outside South Africa's borders over the December 2020 period, all of whom were allowed to return through the borders provided they were able to produce a negative COVID-19 test result.
As at 19 February 2021, Harmony had 94 active COVID-19 cases, representing only 0.2% of our workforce. We mourn 40 employees lost to the pandemic and continue to urge all our employees, their families and communities to remain vigilant as we battle the second wave of the pandemic.
Harmony is committed to playing an active role, with our social partners, to help with the vaccine roll-out. While the South African government is primarily responsible for funding the vaccine roll-out and is the single buyer, Harmony will play an important role by accelerating the vaccination programme on our mines and in host communities. As guided by the Department of Health, our healthcare workers and other frontline workers will receive vaccines first, followed by our remaining employees as per our internal COVID-19 vaccine roll-out plan.
We will continue to prioritise our other healthcare initiatives, particularly those relating to occupational and lifestyle diseases despite the current challenges presented by COVID-19.
The COVID-19 pandemic combined with our existing health and wellness initiatives have given added impetus and reinforced our commitment to environmental, social and governance (ESG) matters and to sustainable development. Our response to the COVID-19 pandemic clearly demonstrated that the “S” in ESG is part of Harmony’s DNA. Caring for those who contribute to, support and benefit from our company has been key to our success.
ESG reporting
Harmony ranked first in ESG disclosures for mining companies in South Africa based on a recent study conducted by Risk Insights and Instinctif Partners. The research was based on ESG metrics using Risk Insight’s own ESG rating tool which analyses publicly available disclosures, integrated reports and media coverage. Harmony was also runner-up in the Sunday Times Top 100 Companies in 2020. This award acknowledged Harmony as a JSE-listed company for creating wealth and value for shareholders over a five-year period.
It is evident from these external recognitions that a successful ESG strategy delivers positive shareholder returns.
OPERATIONAL EXCELLENCE
Operational results for the six-month period ended 31 December 2020
Total gold production for H1FY21 was 8% higher at 23 183kg (745 347oz) compared to 21 411kg (688 379oz) in H1FY20. Higher gold production was due to the inclusion of Mponeng and related assets into our portfolio and achieving our operational plans at the majority of our mines.
The newly acquired assets added 3 220kg (103 525oz) for the December 2020 quarter comprising; 1 874kg or 60 250oz from Mponeng underground,
4


318kg or 10 224oz from Mponeng surface, 216kg or 6 944oz from Kopanang surface and 812 kg or 26 106oz from Mine Waste Solutions.
The average underground recovered grade increased by 5% to 5.58g/t from 5.29g/t as a result of higher grades at Kusasalethu, Mponeng and Joel operations. Moab Khotsong was our most profitable operation for the reporting period followed by Mponeng, delivering R1 143 million (US$70 million) and R547 million (US$34 million) in free cash respectively.
Production from our surface sources increased by 86% from 2 009kg in H1FY20 to 3 741kg in H1FY21 due to higher throughput from Mine Waste Solutions and waste rock dumps. However, average surface grade decreased by 12% to 0.23g/t (H1FY20: 0.26g/t). The acquisition of Mine Waste Solutions, a high-volume, low-grade operation, was primarily responsible for this decline. We are however, confident that we are able to lower the overall cost base at Mine Waste Solutions and achieve synergies.
Hidden Valley’s recovered grade decreased by 5% to 1.20g/t at H1FY21 from 1.26g/t in H1FY20 as planned, whilst the open pit was transitioning between stages 5 and 6. Grade is expected to increase in the second half of FY21 as more stage 6 ore becomes available. Gold production was 17% lower for the period as a result of lower mill throughput due to a major shutdown and additional maintenance work being carried out in the first half of FY21 compared to the comparable period.
Total production costs increased by 30% to R14 808 million (US$911 million) compared to R11 366 million (US$774 million) in H1FY20. The increase of R3 442 million (US$212 million) was driven mainly by the inclusion of the acquired operations which contributed R1 751 million (US$108 million) in new costs. The other major contributors to the production cost increase were labour which increased by R585 million (US$36 million), royalties which increased by R267 million (US$16 million) as a result of higher revenues, and COVID-19 related expenses which amounted to R215 million (US$13 million). Hidden Valley's production costs were R363 million (US$22 million) higher for the period due to additional COVID-19 related expenses, run of mine stockpiles being maintained and a decrease in the deferred stripping credit.
Group all-in sustaining costs was therefore 18% higher for H1FY21 at R715 827/kg compared to H1FY20 at R605 911kg.
Group capital expenditure for H1FY21 increased by 5% to R2 341 million (US$144 million) from R2 230 million (US$151 million) in H1FY20 due to the inclusion of Mponeng mine and related assets. The impact of COVID-19 resulted in lower than planned capital expenditure but this is expected to normalise.
The capitalisation project at Target 1 to bring infrastructure closer to the mining areas is continuing but unfortunately pillar failures and backfill dilution in two of our massive stopes impacted grade and volume. We have adopted a revised plan which will take into account the delay caused by these events. We expect this to be resolved by Q4FY21.
For the June 2020 to December 2020 period, total gold production increased by 41% to 23 183kg (745 347oz) from 16 452kg (528 944oz) as production normalised post COVID-19 lockdowns in South Africa and due to the inclusion of the newly acquired assets.
CASH CERTAINTY
Financial results for the six-month period ended 31 December 2020
Revenue
Revenue increased by 39% from R15 477 million (US$1 054 million) to R21 588 million (US$1 328 million), mainly due to a stellar performance from our underground South African operations, supported by a higher R/kg gold price received and the inclusion of our newly acquired assets. The average R/kg gold price received increased by 31% in H1FY21 to R896 587/kg from R683 158/kg in H1FY20. In US dollar terms, revenue increased by US$274 million or 26% to US$1 328 million and the average gold price received increased by 19% to US$1 716/oz from US$1 447/oz in H1FY20.
Gains and expenses included in operating profit
Corporate, administrative and other expenditure includes a 58% increase relating to higher management incentive payments and the integration costs in respect of the acquisition of the Mponeng operations and related assets.
The foreign exchange translation gain is predominantly due to the impact of the strengthening of the Rand from R17.32/US$ at 30 June 2020 to R14.69/US$ at 31 December 2020 on the US dollar borrowings, resulting in a translation gain of R652 million (US$40 million) compared to R36 million (US$2 million) in the comparative period.
Gain on bargain purchase
Harmony reported a R1 153 million (US$69 million) gain on bargain purchase from the acquisition of the Mponeng operations and related assets in terms of IFRS 3. This gain was reported after taking into account fair value adjustments and provisions between the consideration paid and the net asset value of the acquired assets and liabilities assumed. The fair value exercise has been provisionally concluded and will be finalised in the 12 months permitted by IFRS. Refer to note 13 in the financial statements for further detail.
Taxation
The taxation expense for the group increased to R772 million (US$48 million) for H1FY21 from R157 million (US$11 million) for H1FY20. The current taxation expense for the reporting period is higher mainly due to gains on derivatives and foreign exchange gains on the US dollar loans. The deferred taxation expense for H1FY21 is higher mainly as a result of the utilisation of assessed losses and unredeemed capital expenditure due to increased profitability.
Net profit
Harmony’s net profit increased to R5 812 million (US$356 million) in H1FY21, compared to a profit of R1 332 million (US$91 million) in H1FY20. Headline earnings increased to 775 SA cents per share (48 US cents) compared with headline earnings of 249 SA cents (17 US cents) per share for H1FY20.
Net debt
As at the end of December 2020, Harmony's net debt decreased by R781 million (US$40 million) to R580 million (US$39 million). The cash generated by operations was more than sufficient to pay for the new assets and significantly reduce our debt.
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. For the current period we recorded a net gain of R902 million (US$56 million) compared to a R157 million (US$11 million) gain for the six months period to December 2019 mainly due to a stronger Rand:US$ exchange rate.
Since the inception of the derivative programmes in FY16, these programmes have realised net gains of R159 million (US$10 million). Going forward we will be more selective before entering into hedges only hedging when a margin of 25% above cost and inflation can be locked in.

5


EFFECTIVE CAPITAL ALLOCATION
Growing our ounces
The strong performance in H1FY21 provided Harmony with an opportunity to accelerate some of our key strategic financial objectives which include cash certainty, debt reduction and balance sheet flexibility.
Harmony has successfully integrated Mponeng and related assets as from 1 October 2020. The integration of these assets into our portfolio is expected to increase group resources by 43% to 169.8 million ounces from 118.6 million ounces and group mineral reserves by 20% to 43.8 million ounces from 36.5 million ounces (as per AngloGold Ashanti Limited mineral resources declaration as at December 2019). We also expect these assets potentially to enhance our near-term production by approximately 275 000oz to 282 000oz for FY21 based on 9-month production figures as well as potential other surface and service synergies (subject to further feasibility studies).
Harmony is now one of the largest processors of tailings and waste rock dumps globally after our acquisition of Mine Waste Solutions. This is a compelling opportunity for Harmony due to surface source assets being safe, low-risk, long-life assets, with increased margins and ensuring diversification of our asset portfolio.
There are a number of exploration projects underway which include extending the life of some of our mines both in South Africa and PNG. All projects are carefully assessed to establish if the returns will meet our criteria for capital deployment.
Our strong balance sheet affords us flexibility to pursue our strategic growth objectives through mergers and acquisitions, alongside our pipeline of organic projects, while at the same sharing returns with investors.
Wafi-Golpu Project
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, look forward to re-engaging with the State of Papua New Guinea and progressing discussions on the Special Mining Lease.
Interim dividend
Harmony has reviewed its existing dividend policy and is pleased to confirm a more definitive policy aimed at paying a return of 20% of net free cash generated to shareholders. The new dividend policy is aimed at being more predictable, meaningful and sustainable. While the dividend policy is reviewed every two years, the payment of a dividend will be at the discretion of the board and will be decided on every six months.
When declaring a dividend, the board of directors will take the following into account: future major capital expenditure, net debt to EBITDA not being greater than 1.0x, solvency and liquidity requirements in line with the SA Companies Act and current banking covenants.
As a result of a significant reduction in net debt, it was deemed appropriate to return cash to shareholders. As such, we are pleased to announce that Harmony has declared an interim dividend of 110 SA cents (7.5 US cents) per share on the back of our strong free cash flow. This translates to a dividend yield of approximately 2% based on our recent share price. The decision to pay a dividend was made on the basis that it will be sustainable and will not inhibit future expansion opportunities. See page 7 for details.

UPDATED FY21 GROUP PRODUCTION AND COST GUIDANCE
Following the integration of the newly acquired Mponeng mine and related assets, and taking into account the amended plan at Target, production guidance for FY21 is expected to be between 1.56Moz and 1.6Moz at an all-in sustaining cost of between R700 000/kg and R720 000/kg (previously 1.26Moz to 1.3Moz at an all-in sustaining cost of between R690 000/kg to R710 000/kg). Underground recovered grade is expected to increase from between 5.47g/t and 5.64g/t (previously 5.47g/t to 5.5g/t).
IN CONCLUSION
Harmony remains committed to safely operating our mines and expanding our reserves and margins while delivering on our ESG objectives.
The optimisation of existing and new operations, combined with a deployable war chest and a robust balance sheet ensures we remain well-positioned to take advantage of a higher gold price while delivering positive shareholder returns throughout the cycle.
As we move into the next phase of our growth plans, we will continue to service our communities, stakeholders and employees by doing what we know best – mining gold.

Peter Steenkamp
Chief executive officer
6


NOTICE OF INTERIM GROSS CASH DIVIDEND
Our dividend declaration for the six months ended 31 December 2020 is as follows:
Declaration of interim gross cash ordinary dividend no. 89
The Board has approved, and notice is hereby given, that an interim gross cash dividend of 110 SA cents (7.5 US cents*) per ordinary share in respect of the six months ended 31 December 2020, has been declared payable to the registered shareholders of Harmony on Monday, 19 April 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 110 SA cents (7.5 US cents*) per ordinary share for shareholders exempt from the Dividend Withholding Tax;
The net local dividend amount is 88 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 6 154 630 treasury shares); and
Harmony’s income tax reference number is 9240/012/60/0.
A dividend No. 89 of 110 SA cents (7.5 US cents*) per ordinary share, being the dividend for the six months ended 31 December 2020, has been declared payable on Monday 19 April 2021 to those shareholders recorded in the books of the company at the close of business on Friday, 16 April 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, 9 April 2021.
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, 13 April 2021
Ordinary shares trade ex-dividendWednesday, 14 April 2021
Record dateFriday, 16 April 2021
Payment dateMonday, 19 April 2021
No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 14 April 2021 and Friday, 16 April 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 R14.64/US$1* the dividend payable on an ADR is equivalent to US7.5 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 R14.64/US$1 at 19 February 2021. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.



OPERATING RESULTS – SIX MONTHLY (RAND/METRIC)
Six months endedSOUTH AFRICAHidden
Valley
TOTAL
HARMONY
UNDERGROUND PRODUCTIONSURFACE PRODUCTIONTOTAL
SOUTH
AFRICA
Moab
Khotsong
Tshepong
Operations
MponengKusasalethuDoornkopBambananiMasimongTarget 1JoelUnisel³TOTAL
UNDER-
GROUND
Mine waste solutionDumpsPhoenixCentral
plant
reclamation
KalgoldTOTAL
SURFACE
Ore milled- t'000Dec-20440733228375445117258280169573 1025 9044 2493 0911 97075815 97219 0741 78920 863
Dec-194568893493811233113052331363 1831 8313 2082 0108137 86211 0452 03913 084
Yield- g/tonneDec-208.474.718.226.154.368.973.853.654.054.335.580.1380.3920.1320.1440.750.231.101.201.11
Dec-198.745.044.724.2810.543.883.723.674.315.290.3480.1320.1580.780.261.711.261.64
Gold produced- kgDec-203 7253 4531 8742 3051 9401 0509941 02168524717 2948121 6654082845723 74121 0352 14823 183
Dec-193 9874 4791 6481 6321 2971 2081 13685558616 8286374243186302 00918 8372 57421 411
Gold sold- kgDec-203 7813 4611 8442 3581 9521 0509971 04068624217 4117831 6344132865753 69121 1022 20723 309
Dec-194 1354 5771 7381 6931 3251 2351 13587459817 3106554203216192 01519 3252 64421 969
Gold price received- R/kgDec-20900 063895 441946 900892 801899 556901 210840 110908 572899 453925 979900 545778 243911 155827 370899 189909 548872 407895 623905 797896 587
Dec-19690 255686 268684 306688 947686 535662 309653 573685 330664 405682 650685 690662 221682 255689 197681 329682 512687 879683 158
Gold revenue¹(R'000)Dec-203 403 1403 099 1231 746 0842 105 2251 755 933946 270837 590944 915617 025224 08715 679 392728 1681 488 827341 704257 168522 9903 338 85719 018 2491 999 09321 017 342
Dec-192 854 2063 141 0501 189 3231 166 388909 659817 951741 805598 978397 31411 816 674449 127278 133219 004426 6131 372 87713 189 5511 818 75215 008 303
Cash operating cost (net of by-product credits)(R'000)Dec-201 966 1072 494 857981 0691 553 9781 093 137593 921717 265840 041572 059178 15410 990 588379 369894 883198 590140 120394 6662 007 62812 998 216819 94313 818 159
Dec-191 740 7312 260 5721 352 242881 277549 204667 373762 800534 254313 6619 062 114337 437185 567115 329363 2881 001 62110 063 735623 32410 687 059
Inventory movement(R'000)Dec-2062 139535111 36747 1605 208(197)(2 091)10 087(178)3 679237 70995 81233 2691 855(62)899131 773369 48250 232419 714
Dec-1954 37749 85940 64541 92415 43416 607(2 292)11 4046 837234 7955 097(1 397)968(7 529)(2 861)231 934(21 131)210 803
Operating costs(R'000)Dec-202 028 2462 495 3921 092 4361 601 1381 098 345593 724715 174850 128571 881181 83311 228 297475 181928 152200 445140 058395 5652 139 40113 367 698870 17514 237 873
Dec-191 795 1082 310 4311 392 887923 201564 638683 980760 508545 658320 4989 296 909342 534184 170116 297355 759998 76010 295 669602 19310 897 862
Production profit(R'000)Dec-201 374 894603 731653 648504 087657 588352 546122 41694 78745 14442 2544 451 095252 987560 675141 259117 110127 4251 199 4565 650 5511 128 9186 779 469
Dec-191 059 098830 619(203 564)243 187345 021133 971(18 703)53 32076 8162 519 765106 59393 963102 70770 854374 1172 893 8821 216 5594 110 441
Capital expenditure(R'000)Dec-20294 292463 848218 01690 723225 13133 18711 182182 81887 5381 606 73533 79124 2051 1636 38083 976149 5151 756 250584 7512 341 001
Dec-19297 502571 512118 423167 43231 00416 863191 55791 4494 7141 490 4562 9514 09927 22934 2791 524 735705 5132 230 248
Cash operating costs- R/kgDec-20527 814722 519523 516674 177563 473565 639721 595822 763835 123721 271635 515467 203537 467486 740493 380689 976536 655617 933381 724596 047
Dec-19436 602504 705820 535539 998423 442552 461671 479624 858535 258538 514529 728437 658362 670576 648498 567534 254242 162499 139
Cash operating costs- R/tonneDec-204 4683 4044 3034 1442 4565 0762 7803 0003 3853 1263 543642116471521126681458662
Dec-193 8172 5433 8752 3134 4652 1462 5012 2932 3062 8471845857447127911306817
Cash operating cost
and Capital
- R/kgDec-20606 819856 851639 853713 536679 520597 246732 8441 001 821962 915721 271728 422508 818552 005489 591515 845836 787576 622701 425653 954697 026
Dec-19511 220632 303892 394642 591447 346566 421840 103731 816543 302627 084529 728444 618375 560619 868515 630615 197516 254603 302
All-in sustaining cost- R/kgDec-20607 898856 918724 776730 735635 501611 982753 167971 069974 546782 126736 634659 840582 838489 149512 021849 856624 799716 892705 748715 837
Dec-19506 622634 687893 959637 401466 079586 439818 370725 952561 704628 175522 953445 526369 935638 831518 035616 635527 531605 911
Operating free cash flow margin²%Dec-2034 %5 %31 %22 %25 %34 %13 %(8)%(7)%20 %20 %32 %38 %42 %43 %7 %33 %22 %28 %22 %
Dec-1929 %10 %— %(24)%10 %36 %16 %(29)%(4)%20 %11 %— %25 %32 %45 %%24 %12 %17 %13 %
¹Includes a non-cash consideration related to the streaming arrangement (refer to note 12) (Dec-20:R118.804m) under Mine Waste Solutions, excluded from the gold price calculation.
²Excludes run of mine costs for Kalgold (Dec-20:-R5.862m, Dec-19:-R3.499m) and Hidden Valley (Dec-20:-R31.984m, Dec-19:-R182.313m).
³The Unisel operation closed in October 2020.
89


OPERATING RESULTS – SIX MONTHLY (US$/IMPERIAL)
Six
months
ended
SOUTH AFRICAHidden
Valley
TOTAL
HARMONY
UNDERGROUND PRODUCTIONSURFACE PRODUCTIONTOTAL
SOUTH
AFRICA
Moab
Khotsong
Tshepong
Operations
MponengKusasalethuDoornkopBambananiMasimongTarget 1JoelUnisel³TOTAL
UNDER-
GROUND
Mine waste solutionsDumpsPhoenixCentral
plant
reclamation
KalgoldTOTAL
SURFACE
Ore milled- t'000Dec-20485808251413491129285308187633 4206 5104 6863 4092 17383617 61421 0341 97323 007
Dec-195039803854201363433362571503 5102 0193 5372 2178978 67012 1802 24814 428
Yield- oz/tonDec-200.2470.1370.2400.1790.1270.2620.1120.1070.1180.1260.1630.0040.0110.0040.0040.0220.0070.0320.0350.032
Dec-190.2550.1470.1380.1250.3070.1130.1090.1070.1260.1540.0100.0040.0050.0230.0070.0500.0370.048
Gold produced- ozDec-20119 761111 01660 25074 10762 37233 75831 95832 82522 0237 941556 01126 10653 53113 1189 13118 390120 276676 28769 060745 347
Dec-19128 185144 00352 98452 47041 69938 83836 52327 48918 841541 03220 48013 63210 22420 25564 591605 62382 756688 379
Gold sold- ozDec-20121 562111 27459 28675 81162 75833 75832 05433 43722 0557 780559 77525 17452 53413 2799 19518 487118 669678 44470 956749 400
Dec-19132 943147 15355 87854 43142 60039 70636 49128 10019 226556 52821 05913 50310 32019 90264 784621 31285 006706 318
Gold price received- $/ozDec-201 7231 7141 8131 7091 7221 7251 6081 7391 7221 7731 7241 4901 7441 5841 7211 7411 6701 7151 7341 716
Dec-191 4621 4531 4491 4591 4541 4031 3841 4511 4071 4461 4521 4021 4451 4591 4431 4451 4571 447
Gold revenue¹($'000)Dec-20209 464190 752107 472129 577108 07858 24351 55458 16037 97813 793965 07144 81891 63821 03215 82932 190205 5071 170 578123 0451 293 623
Dec-19194 330213 86080 97679 41461 93555 69150 50640 78227 051804 54530 57918 93714 91129 04693 473898 018123 8311 021 849
Cash operating cost (net of by-product credits)($'000)Dec-20121 014153 55960 38595 64867 28336 55644 14851 70535 21010 965676 47323 35055 08012 2238 62424 291123 568800 04150 467850 508
Dec-19118 518153 91292 06860 00237 39345 43851 93536 37521 355616 99622 97512 6347 85224 73568 196685 19242 439727 631
Inventory movement($'000)Dec-203 825336 8552 903321(12)(129)621(11)22614 6325 8972 048114(4)558 11022 7423 09225 834
Dec-193 7023 3952 7672 8541 0511 131(156)77646615 986347(95)66(513)(195)15 791(1 439)14 352
Operating costs($'000)Dec-20124 839153 59267 24098 55167 60436 54444 01952 32635 19911 191691 10529 24757 12812 3378 62024 346131 678822 78353 559876 342
Dec-19122 220157 30794 83562 85638 44446 56951 77937 15121 821632 98223 32212 5397 91824 22268 001700 98341 000741 983
Production profit($'000)Dec-2084 62537 16040 23231 02640 47421 6997 5355 8342 7792 602273 96615 57134 5108 6957 2097 84473 829347 79569 486417 281
Dec-1972 11056 553(13 859)16 55823 4919 122(1 273)3 6315 230171 5637 2576 3986 9934 82425 472197 03582 831279 866
Capital expenditure($'000)Dec-2018 11428 55113 4185 58413 8562 04368811 2525 38898 8942 0801 490723935 1699 204108 09835 991144 089
Dec-1920 25538 9118 06211 3992 1101 14813 0426 226321101 4742012791 8532 333103 80748 035151 842
Cash operating cost- $/ozDec-201 0101 3831 0021 2911 0791 0831 3811 5751 5991 3811 2178941 0299329441 3211 0271 1837311 141
Dec-199251 0691 7381 1448971 1701 4221 3231 1331 1401 1229277681 2211 0561 1315131 057
Cash operating costs- $/tDec-2025019024123213728315516818817419841244297382637
Dec-192361572391432751321551421421761144288561950
Cash operating cost
and Capital
- $/ozDec-201 1621 6401 2251 3661 3011 1431 4031 9181 8431 3811 3959741 0579379881 6021 1041 3431 2521 334
Dec-191 0831 3391 8901 3619471 1991 7791 5501 1501 3281 1229427951 3131 0921 3031 0931 278
All-in sustaining cost- $/ozDec-201 1641 6411 3881 3991 2171 1721 4421 8591 8661 4971 4101 2631 1169369801 6271 1961 3721 3611 370
Dec-191 0731 3441 8931 3509871 2421 7331 5371 1901 3301 1079437831 3531 0971 3061 1131 283
Operating free cash flow margin²%Dec-2034 %5 %31 %22 %25 %34 %13 %(8)%(7)%20 %20 %32 %38 %42 %43 %7 %33 %22 %28 %22 %
Dec-1929 %10 %— %(24)%10 %36 %16 %(29)%(4)%20 %11 %— %25 %32 %45 %%24 %12 %17 %13 %
¹Includes a non-cash consideration related to the streaming arrangement (refer to note 12) (Dec-20:US$7.312m) under Mine Waste Solutions, excluded from the gold price calculation.
²Excludes run of mine costs for Kalgold (Dec-20:-US$0.361m, Dec-19:-US$0.238m) and Hidden Valley (Dec-20:-US$1.969m, Dec-19:-US$12.413m).
³The Unisel operation closed in October 2020.
1011


pwcopinion22022021-pagex00.jpg


CONDENSED CONSOLIDATED INCOME STATEMENT (RAND)
Six months endedYear ended
Figures in millionNotes31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
30 June
2020
(Audited)
Revenue421 588 15 477 29 245 
Cost of sales5(16 922)(13 498)(25 908)
Production costs(14 808)(11 366)(22 048)
Amortisation and depreciation(1 816)(1 926)(3 508)
Other items(298)(206)(352)
Gross profit4 666 1 979 3 337 
Corporate, administration and other expenditure6(535)(339)(611)
Exploration expenditure(76)(127)(205)
Gains/(losses) on derivatives10902 157 (1 678)
Foreign exchange translation gain/(loss)
1,11
652 36 (892)
Other operating expenses1(45)(72)(309)
Operating profit/(loss)5 564 1 634 (358)
Gain on bargain purchase131 153 — — 
Acquisition costs13(111)— (45)
Share of profits from associates65 51 94 
Investment income240 144 375 
Finance costs(327)(340)(661)
Profit/(loss) before taxation6 584 1 489 (595)
Taxation7(772)(157)(255)
Current taxation(325)(60)(58)
Deferred taxation(447)(97)(197)
Net profit/(loss) for the period5 812 1 332 (850)
Attributable to:
Non-controlling interest27 — 28 
Owners of the parent5 785 1 332 (878)
Earnings/(loss) per ordinary share (cents)8
Basic earnings/(loss)966 249 (164)
Diluted earnings/(loss)943 240 (166)
The accompanying notes are an integral part of these condensed consolidated financial statements.



The condensed consolidated financial statements for the six months ended 31 December 2020 have been prepared by Harmony Gold Mining Company Limited’s corporate reporting team headed by Michelle Kriel CA(SA). This process was supervised by the financial director, Boipelo Lekubo CA(SA) and approved by the board of Harmony Gold Mining Company Limited on 23 February 2021. These condensed consolidated financial statements have been reviewed by the group's external auditors, PricewaterhouseCoopers Incorporated.

13

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (RAND)
Six months endedYear ended
Figures in millionNotes31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
Restated*
30 June
2020
(Audited)
Net profit/(loss) for the period5 812 1 332 (850)
Other comprehensive income for the period, net of income tax1 740 (244)(1 958)
Items that may be reclassified subsequently to profit or loss:1 729 (263)(1 998)
Foreign exchange translation gain/(loss)(1 123)(85)1 199 
Remeasurement of gold hedging contracts102 852 (178)(3 197)
Items that will not be reclassified to profit or loss:11 19 40 
Gain on assets measured at fair value through other comprehensive income11 19 25 
Remeasurement of retirement benefit obligation
Actuarial gain/(loss) recognised during the period — 17 
Deferred taxation thereon — (2)
Total comprehensive income for the period7 552 1 088 (2 808)
Attributable to:
Non-controlling interest42 — 12 
Owners of the parent7 510 1 088 (2 820)
The accompanying notes are an integral part of these condensed consolidated financial statements.
*Refer to note 2 for detail. The restated amounts are unaudited.


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (RAND)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Figures in millionShare capitalAccumulated lossOther
reserves
Non-controlling interestTotal
Balance – 1 July 202032 937 (12 583)3 017 4 23 375 
Share issue costs(2)   (2)
Share-based payments  90  90 
Partial purchase of non-controlling interest  (4)(1)(5)
Net profit for the period 5 785  27 5 812 
Other comprehensive income for the period  1 725 15 1 740 
Dividends paid   (1)(1)
Balance – 31 December 202032 935 (6 798)4 828 44 31 009 
Balance – 1 July 201929 551 (11 710)4 773 — 22 614 
Share-based payments— — 90 — 90 
Recognition of non-controlling interest— — (5)— 
Net profit for the period— 1 332 — — 1 332 
Other comprehensive income for the period— — (244)— (244)
Balance – 31 December 201929 551 (10 373)4 619 (5)23 792 
The accompanying notes are an integral part of these condensed consolidated financial statements.
14

CONDENSED CONSOLIDATED BALANCE SHEET (RAND)
AtAtAt
Figures in millionNotes31 December
2020
(Reviewed)
30 June
2020
(Audited)
31 December
2019
(Reviewed)
ASSETS
Non-current assets
Property, plant and equipment935 180 29 186 28 209 
Intangible assets9542 536 534 
Restricted cash137 107 100 
Restricted investments134 933 3 535 3 386 
Investments in associates149 146 102 
Inventories47 47 43 
Deferred tax assets7312 531 — 
Other non-current assets382 388 372 
Derivative financial assets10613 50 203 
Total non-current assets42 295 34 526 32 949 
Current assets
Inventories2 199 2 421 1 953 
Restricted cash72 62 55 
Trade and other receivables1 485 1 308 1 311 
Derivative financial assets10718 18 536 
Cash and cash equivalents4 217 6 357 1 250 
Total current assets8 691 10 166 5 105 
Total assets50 986 44 692 38 054 
EQUITY AND LIABILITIES
Share capital and reserves
Attributable to equity holders of the parent company30 965 23 371 23 797 
Share capital32 935 32 937 29 551 
Other reserves4 828 3 017 4 619 
Accumulated loss(6 798)(12 583)(10 373)
Non-controlling interest44 (5)
Total equity31 009 23 375 23 792 
Non-current liabilities
Deferred tax liabilities71 810 996 750 
Provision for environmental rehabilitation134 752 3 408 3 151 
Provision for silicosis settlement663 717 737 
Retirement benefit obligation226 193 205 
Borrowings114 407 7 463 5 454 
Contingent consideration liability13237 — — 
Other non-current liabilities127 101 86 
Derivative financial liabilities10115 879 162 
Streaming contract liability12933 — — 
Total non-current liabilities13 270 13 757 10 545 
Current liabilities
Provision for silicosis settlement175 175 175 
Borrowings11390 255 86 
Trade and other payables134 125 3 006 2 925 
Derivative financial liabilities101 627 4 124 531 
Streaming contract liability12390 — — 
Total current liabilities6 707 7 560 3 717 
Total equity and liabilities50 986 44 692 38 054 
The accompanying notes are an integral part of these condensed financial statements
15

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (RAND)
Six months endedYear ended
Figures in millionNotes31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
30 June
2020
(Audited)
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated by operations6 070 2 928 5 031 
Dividends received45 — — 
Interest received33 37 86 
Interest paid(171)(164)(370)
Income and mining taxes paid7(198)(68)(24)
Cash generated from operating activities5 779 2 733 4 723 
CASH FLOW FROM INVESTING ACTIVITIES
Increase in restricted cash(23)(15)(21)
Amounts refunded from restricted investments34 
Redemption of preference shares from associates36 59 59 
Acquisition of the Mponeng operations and related assets13(3 363)— — 
Capital distributions from investments8 — 
Proceeds from disposal of property, plant and equipment4 
Additions to property, plant and equipment15(2 366)(2 270)(3 610)
Cash utilised by investing activities(5 670)(2 223)(3 558)
CASH FLOW FROM FINANCING ACTIVITIES
Borrowings raised11 4 741 6 541 
Borrowings repaid11(2 126)(5 009)(5 661)
Proceeds from the issue of shares — 3 466 
Share issue costs(2)— — 
Lease payments(30)(17)(38)
Partial repurchase of non-controlling interest(5)— — 
Dividends paid to non-controlling interests(1)— (3)
Cash generated from/(utilised by) financing activities(2 164)(285)4 305 
Foreign currency translation adjustments(85)32 (106)
Net increase/(decrease) in cash and cash equivalents(2 140)257 5 364 
Cash and cash equivalents – beginning of period6 357 993 993 
Cash and cash equivalents – end of period4 217 1 250 6 357 
The accompanying notes are an integral part of these condensed consolidated financial statements.
16

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
1.    ACCOUNTING POLICIES
Basis of accounting
The condensed consolidated financial statements for the interim reporting period ended 31 December 2020 has been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting, the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, the SAICA Financial Reporting Guides as issued by the Accounting practices Committee, Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, JSE Listings Requirements and in the manner required by the Companies Act no. 71 of 2008 of South Africa. The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by Harmony during the interim reporting period. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. 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.
Foreign exchange translation gain/(loss) has been presented separately in the income statement. The amounts were previously included as part of other operating income/(expenses). Other operating income/(expenses) has been represented in all periods presented.
The condensed consolidated financial statements have been prepared on a going concern basis.
2.    RESTATEMENT OF DECEMBER 2019 FINANCIAL RESULTS
Subsequent to the release of the financial results for the six months ended 31 December 2019 management identified a classification error on the 'Foreign exchange translation gain/(loss)', the 'Unrealised gain/(loss) on gold contracts' and the 'Gain on asset measured at fair value through other comprehensive income' line items in the statement of other comprehensive income. The impact of the correction of the error on the December 2019 statement of comprehensive income is disclosed below:
Statement of comprehensive income
For the six months ended 31 December 2019
Figures in millionPreviously
reported
CorrectionRestated
Other comprehensive income for the period, net of income tax(244)— (244)
Items that may be reclassified subsequently to profit or loss:(244)(19)(263)
Foreign exchange translation gain/(loss)(402)317 (85)
Gain on assets measured at fair value through other comprehensive income19 (19)— 
Remeasurement of gold hedging contracts
   Unrealised gain/(loss) on gold contracts(227)(317)(544)
   Released to revenue317 — 317 
Deferred taxation thereon49 — 49 
Items that will not be reclassified to profit or loss:— 19 19 
Gain on assets measured at fair value through other comprehensive income— 19 19 
The error, and subsequent correction, net each other off within other comprehensive income and are limited to the line items mentioned. The net profit, other comprehensive income and total comprehensive income line items for the period were not impacted, nor were any earnings amounts, the cash flow statement or any other statement or other disclosure within the financial statements.
17

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
3.    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 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 during this period.
Vaccines
During November and December 2020, several pharmaceutical companies announced the successful development of vaccines against the SARS-COV-2 virus. At the time, this was considered a crucial tipping point in protecting people and preventing infections in future. However, the subsequent discovery of several mutations, or variants, worldwide is very concerning, given how quickly these occurred and whether the vaccines would still be effective against these variants.
Governments around the world are rolling out vaccine programmes, including South Africa. The initial draft of the roll-out approach includes essential workers in the second tier. South African miners have been classified as essential workers and would therefore be eligible for vaccination, along with other people in this category, following the vaccination of healthcare workers. Harmony is working together with its peers in the mining industry to consider options for the roll-out and if there are opportunities to extend this to the communities that they operate in.
Due to the high level of uncertainty and lack of official information, management is unable to reliably estimate when the roll-out would occur. Possible estimations of timelines for a government-led roll-out would be for the second tier to be vaccinated by December 2021, at best, with a possible worst-case by June 2022. This is without considering any potential negation of the effectiveness by the current and future variants.
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, the Rand has weakened significantly from the beginning of the 2020 calendar year. The Rand has since recovered from its weakest level at the beginning of April 2020 of R19.05/US$ to close at R14.69 on 31 December 2020. The Rand strengthened against the Australian dollar from R11.96/A$1 at 30 June 2020 to R11.31/A$1 at 31 December 2020. In addition, the Papua New Guinea Kina weakened against the Australian dollar from PGK2.38/A$1 at 30 June 2020 to PGK2.74/A$1 at 31 December 2020. These movements in the currencies expose the group's operations to foreign currency gains and losses on foreign-denominated receivables and liabilities, including derivatives, and also impact the group’s translation of its international operating results and net assets into its Rand presentation currency, which resulted in a foreign exchange translation loss of R1.1 billion in other comprehensive income. In addition, a net foreign exchange translation gain of R652 million was recognised in profit or loss for the six months ended 31 December 2020, primarily on the US$ borrowings. With the announcements made during November and December 2020 on the successful development of vaccines against the SARS-COV-2 virus, a marked strengthening of the Rand against the US$ has occurred. The R/US$ exchange rate at 30 June 2020 and 31 October 2020 was R17.32 and R16.24, respectively and subsequently the average R/US$ exchange rates for November and December 2020 were R15.51 and R14.85, respectively.
Commodity prices
Gold prices have rallied to an all-time high following the global economic fallout of COVID-19 and ongoing geopolitical uncertainty supporting its safe haven status with investors. The US dollar gold price received increased by 19% from $1 447 per ounce in December 2019 to $1 716 per ounce for the December 2020 period. The Rand gold price received increased by 31% from R683 158 per kilogram in December 2019 to R896 587 per kilogram for the December 2020 period. Following the announcements on the successful development of vaccines against the SARS-COV-2 virus in November and December 2020, spot gold prices experienced a pull-back, falling at one stage to $1 777 per ounce towards the end of November 2020. This drop in spot gold prices was subsequently reversed during December 2020 with prices rising as high as $1 894 per ounce as a result of the second wave of COVID-19 infections being experienced across the world.
18

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
3.    COVID-19 IMPACT continued
Market impact continued
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%. The expectation is for interest rates to remain low as inflation is well within the target band.
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.
Critical estimates and judgements
There have been no significant changes to the critical estimates and judgements for the impact of COVID-19 as at 30 June 2020. With the fair value exercise that is required for the acquisition of AngloGold Ashanti's remaining South African 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.
4.    REVENUE
Six months endedYear ended
Figures in million31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
30 June
2020
(Audited)
Revenue from contracts with customers23 240 15 794 30 642 
  Gold1
22 670 15 326 29 704 
  Silver2
510 409 839 
  Uranium2
60 59 99 
Consideration from streaming contract3
119 — — 
Hedging loss4
(1 771)(317)(1 397)
Total revenue5
21 588 15 477 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 R2.8 billion in revenue during the period. In addition, the average gold price received increased by 31% to R896 587/kg from R683 158/kg in the December 2019 six months.
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 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.
19

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
5.    COST OF SALES
Six months endedYear ended
Figures in million31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
30 June
2020
(Audited)
Production costs – excluding royalty1
14 399 11 233 21 721 
Royalty expense2
409 133 327 
Amortisation and depreciation3
1 816 1 926 3 508 
Rehabilitation expenditure3 47 47 
Care and maintenance cost of restructured shafts72 73 146 
Employment termination and restructuring costs4
151 26 40 
Share-based payments64 64 130 
Other8 (4)(11)
Total cost of sales16 922 13 498 25 908 
1    Production costs increased during the December 2020 period mainly due to the Mponeng operations and related assets acquisition which amounted to R2.0 billion. The remaining increase is mainly attributable to annual and inflationary increases related to labour costs, consumables and services.
2    The royalty expense increased during the December 2020 period due to increased profitability as a result of the higher gold price.
3    The completion of Stage 5 at Hidden Valley during the December 2019 quarter is the primary contributor for the period on period decrease.
4     The increase is due to a new programme for voluntary and medical severance packages offered to employees.
6.    CORPORATE, ADMINISTRATION AND OTHER EXPENDITURE
The amount for the six months ended 31 December 2020 increased from 31 December 2019 mainly due to higher management incentive payments and R96 million for the integration cost related to the acquisition of the Mponeng operations and related assets.
7.    TAXATION
(a)    Current taxation
The increase in gains on foreign exchange derivative contracts and foreign exchange gains as well as the increase in revenue increased taxable profits and consequently the current tax expense during the December 2020 period.
(b)    Deferred taxation
Deferred tax expense
The R350 million increase in the deferred tax expense during the December 2020 period 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.
Deferred tax balance
The increase in the deferred tax liability is due in part to the deferred tax balances for the Mponeng operations and related assets, with the exception of Chemwes (see below). This increase amounted to R251 million at acquisition date. The deferred tax rates for Golden Core Trade and Invest (Pty) Ltd (Mponeng) and Chemwes (Pty) Ltd (Chemwes) are 10.1% and 18.0% respectively. The inclusion of the Vaal River Closure business into Moab increased its rate from 17.3% to 20.8% which also contributed to the increase in the liability balance. The increase in taxable temporary differences, as discussed above in the deferred tax expense, and changes in the net derivative asset/(liability) position from 30 June 2020 had an impact on the majority of the companies within the group.
As at 30 June 2020 a deferred tax asset was recognised in Harmony Company and Randfontein Estates. Subsequently, the net deferred tax asset balance has decreased due to the utilisation of assessed losses, unredeemed capital expenditures and a decrease in the net derivative liability. Harmony Company's deferred tax asset balance reduced to R223 million and Randfontein Estates' asset became a deferred tax liability.
The net deferred tax asset position of Harmony Company is as follows:
Figures in million31 December
2020
(Reviewed)
30 June
2020
(Audited)
Deductible temporary differences7501 079
Assessed losses574
Total7501 653
Deferred tax rate29.8 %29.8 %
Deferred tax asset223492
20

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
7.    TAXATION continued
Furthermore, the newly acquired Chemwes company is in a net deferred tax asset position as disclosed below:
Figures in million31 December
2020
(Reviewed)
Deductible temporary differences491
Total491
Deferred tax rate18.0 %
Deferred tax asset88
Due to the higher short-term Rand gold price 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. Consequently, a deferred tax asset continues to be recognised for Harmony Company and the Chemwes Company.
8.    EARNINGS/(LOSS) PER ORDINARY SHARE
Six months endedYear ended
31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
30 June
2020
(Audited)
Weighted average number of shares (million)599 535 535 
Weighted average number of diluted shares (million)613 549 547 
Total earnings/(loss) per share (cents):
Basic earnings/(loss)966 249 (164)
Diluted earnings/(loss)943 240 (166)
Headline earnings/(loss)775 249 (154)
Diluted headline earnings/(loss)758 240 (157)
Reconciliation of headline earnings:
Six months endedYear ended
Figures in million31 December
2020
(Reviewed)
31 December
2019
(Reviewed)
30 June
2020
(Audited)
Net profit/(loss) for the period attributable to owners of the parent5 785 1 332 (878)
Adjusted for:
Gain on bargain purchase1
(1 153)— — 
Profit on sale of property, plant and equipment(4)(1)(2)
Taxation effect on profit on sale of property, plant and equipment1 — — 
Loss on scrapping of property, plant and equipment19 — 62 
Taxation effect on loss on scrapping of property, plant and equipment(4)— (10)
Headline earnings/(loss)4 644 1 331 (828)
1 There is no tax effect on this item.
9.    PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
The major movements in property, plant and equipment are related to the acquisition of AngloGold Ashanti Limited's remaining South African producing assets and related liabilities Refer to note 13 for further information on the acquisition.
At 31 December 2020, management performed an assessment for potential indicators of impairment of assets in terms of IAS 36, Impairment of Assets. The following operations were considered to have such indicators due to the specific circumstances experienced during the six months since the last impairment assessment:
Target 1 – Production was severely hampered by a collapse of infrastructure and spillover issues resulting from the collapse. A revised life-of-mine plan for the remaining portion of FY21 has been approved by the board of directors.
Bambanani – Grade was lower than planned due to the interception of a lower grade block sooner than expected. Seismicity is a risk due to the nature of the mining.
Joel – Grade and kilograms produced is the main reason for the loss for the six months, due to mining discipline.
21

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
9.    PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS continued
These circumstances were considered to be impairment triggers and an impairment test was performed. All key assumptions disclosed remained the same as at 30 June 2020, with the exception of the discount rates for Bambanani and Target 1, which were adjusted for additional risk factors that are not included in the cash flows. The gold price was also increased to the following prices:
Short term
Year 1
Medium term
Year 2
Medium term
Year 3
Long term
Year 4
Gold price (R/kg)938 000 895 000 805 000 700 000 
The recoverable amounts of these assets have been determined on a fair value less costs to sell basis. These are fair value measurements classified as level 3.
Based on the impairment tests performed, no impairments were recorded for the period under review. On assessing for a potential reversal of previously recognised impairment losses, management concluded, similarly to the position at 30 June 2020, that although on an overall basis 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. Management also considered the level of uncertainty of the impact of COVID-19 on production and therefore on the cash flows. Due to the volatility embedded in the potential upside driven by the higher gold prices in the short to medium term, coupled with the fact that the factors resulting in the previously recognised impairment losses had not reversed, management resolved it to be appropriate for no reversal of previously recognised impairment losses to be recorded for the period under review.
One of the most significant assumptions that influences the life-of-mine plans and therefore the impairment assessment is the expected commodity prices. The sensitivity scenario of a 10% decrease in the commodity price used in the discounted cash flow models and the resource values used (with all other variables held constant) would have resulted in the following impairment being recorded as at 31 December 2020:
Joel – a 10% decrease in the gold price would have resulted in a R77 million impairment charge being recorded.
10.    DERIVATIVE FINANCIAL INSTRUMENTS
Figures in millionRand gold hedging contracts (a)US$ gold hedging contractsUS$ silver contractsForeign exchange contractsRand gold derivative contractsTotal
As at 31 December 2020 (Reviewed)
Derivative financial assets811 10  510  1 331 
Non-current508 8  97  613 
Current303 2  413  718 
Derivative financial liabilities(1 203)(290)(180)(8)(61)(1 742)
Non-current(22)(45)(48)  (115)
Current(1 181)(245)(132)(8)(61)(1 627)
Net derivative financial instruments(392)(280)(180)502 (61)(411)
Unamortised day one net loss included above30 10    40 
Unrealised losses included in other reserves, net of tax287 271    558 
Realised losses included in revenue(1 595)(176)   (1 771)
Unrealised gains/(losses) on gold contracts recognised in other comprehensive income1 670 (164)   1 506 
Gains/(losses) on derivatives  (274)1 105 101 932 
Day one loss amortisation(26)(4)   (30)
Total gains/(losses) on derivatives(26)(4)(274)1 105 101 902 
Hedge effectiveness
Changes in the fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness1 670 (164)   1 506 
Changes in the fair value of the hedged item used as the basis for recognising hedge ineffectiveness(1 670)164    (1 506)
(a)     Rand gold hedging contracts
All Rand gold forward contracts entered into after 1 October 2020 were apportioned to the Mponeng operation and will share in the gains and losses on those apportioned contracts.
22

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (RAND)
10.    DERIVATIVE FINANCIAL INSTRUMENTS continued
Figures in millionRand gold hedging contracts (a)US$ gold hedging contractsUS$ silver contractsForeign exchange contractsRand gold derivative contractsTotal
As at 31 December 2019 (Reviewed)
Derivative financial assets104 13 — 622 — 739 
Non-current86 — 109 — 203 
Current18 — 513 — 536 
Derivative financial liabilities(564)(109)(6)— (14)(693)
Non-current(142)(19)(1)— — (162)
Current(422)(90)(5)— (14)(531)
Net derivative financial instruments(460)(96)(6)622 (14)46 
Unamortised day one net loss included above24 13 — — — 37 
Realised gains/(losses) included in other reserves (289)(28)— —