[20-F] HARMONY GOLD MINING CO LTD Files Annual Report (Foreign Issuer)
Filing Impact
Filing Sentiment
Form Type
20-F
Table of contents
As filed with the Securities and Exchange Commission on 31 October 2025
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________
FORM 20-F
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended 30 June 2025
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Date of event requiring this shell company report
For the transition period from___ to___
Commission file number: 001-31545
(Exact name of registrant as specified in its charter)
(Jurisdiction of incorporation or organisation)
(Address of principal executive offices)
Tel: +27 11 411 2359 , shela.mohatla@harmony.co.za , fax: +27 11 696 9734 ,
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
No* | ||
* Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission. ☑
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
The number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the last full fiscal year covered by this
Annual Report was 634,767,724 ordinary shares, with no par value per share
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934. Yes ☐ No ☑
Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their
obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit
and post such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition
of “large accelerated filer," "accelerated filer,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Accelerated filer ☐ | Non-accelerated filer ☐ | Emerging growth company |
If an emerging growth company that prepares its financial statements in accordance with US GAAP, indicate by check mark if the registrant has elected not to use
the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting
Standards Codification after 5 April 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit
report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect
the correction of an error to previously issued financial statements. ☑
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive- based compensation received by any
of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
US GAAP ☐ | Other ☐ |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:
Item 17 ☐ Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☑
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of
1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐
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Table of contents
TABLE OF CONTENTS
PART I | |||
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | 1 | |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE | 1 | |
ITEM 3. | KEY INFORMATION | 1 | |
ITEM 4. | INFORMATION ON THE COMPANY | 37 | |
ITEM 4A. | UNRESOLVED STAFF COMMENTS | 160 | |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS | 160 | |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES | 178 | |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | 179 | |
ITEM 8. | FINANCIAL INFORMATION | 179 | |
ITEM 9. | THE OFFER AND LISTING | 180 | |
ITEM 10. | ADDITIONAL INFORMATION | 181 | |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 187 | |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | 190 | |
PART II | |||
ITEM 13. | DEFAULTS, DIVIDEND ARREARS AND DELINQUENCIES | 191 | |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 191 | |
ITEM 15. | CONTROLS AND PROCEDURES | 191 | |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT | 193 | |
ITEM 16B. | CODE OF ETHICS | 193 | |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 193 | |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | 193 | |
ITEM 16E. | PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS | 194 | |
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | 194 | |
ITEM 16G. | CORPORATE GOVERNANCE | 194 | |
ITEM 16H. | MINE SAFETY DISCLOSURE | 194 | |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | 199 | |
ITEM 16J. | INSIDER TRADING POLICIES | 199 | |
ITEM 16K. | CYBERSECURITY | 200 | |
PART III | |||
ITEM 17. | FINANCIAL STATEMENTS | 202 | |
ITEM 18. | FINANCIAL STATEMENTS | 202 | |
ITEM 19. | EXHIBITS | 203 | |
SIGNATURE | |||
This document comprises the annual report on Form 20-F for the year ended 30 June 2025 (“Harmony 2025 Form 20-F”)
of Harmony Gold Mining Company Limited (“Harmony” or the “Company”). Certain of the information in the Harmony's 2025
suite of reports, including from its Integrated report 2025 as well as the Sustainability report 2025, included in Exhibit 15.1
(“Integrated Annual Report for the 20-F 2025”) is incorporated by reference into the Harmony 2025 Form 20-F, as specified
elsewhere in this report, in accordance with Rule 12b-23(a) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). With the exception of the items so specified, the Integrated Annual Report for the 20-F 2025 is not deemed to
be filed as part of the Harmony 2025 Form 20-F.
Only (i) the information included in the Harmony 2025 Form 20-F, (ii) the information in the Integrated Annual Report for the
20-F 2025 that is expressly incorporated by reference in the Harmony 2025 Form 20-F and (iii) the exhibits to the Harmony 2025
Form 20-F that are required to be filed pursuant to the Form 20-F (the “Exhibits”), shall be deemed to be filed with the
Securities and Exchange Commission (“SEC”) for any purpose. Any information in the Integrated Annual Report for the 20-F
2025 which is not referenced in the Harmony 2025 Form 20-F or filed as an Exhibit, shall not be deemed to be so incorporated
by reference.
Financial and other material information regarding Harmony is routinely posted on and accessible at the Harmony website,
www.harmony.co.za. No material referred to in this annual report as being available on our website is incorporated by reference
into, or forms any part of, this annual report. References herein to our website shall not be deemed to cause such incorporation.
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USE OF TERMS AND CONVENTIONS IN THIS ANNUAL REPORT
Harmony Gold Mining Company Limited is a corporation organised under the laws of the Republic of South Africa. As used
in this Harmony 2025 Form 20-F, unless the context otherwise requires, the terms “Harmony” and “Company” refer to Harmony
Gold Mining Company Limited; the term “South Africa” refers to the Republic of South Africa; the terms “we”, “us” and “our”
refer to Harmony and, as applicable, its direct and indirect subsidiaries as a “Group”.
In this annual report, references to “R”, “Rand” and “c”, “cents” are to the South African Rand, the lawful currency of South
Africa, “A$” and “Australian dollars” refers to Australian dollars, “K” or “Kina” refers to Papua New Guinean Kina and references
to “$”, “US$” and “US dollars” are to United States dollars.
This annual report contains information concerning our gold reserves. While this annual report has been prepared in
accordance with United States Securities and Exchange Commission Regulation S-K 1300, it is based on assumptions which
may prove to be incorrect. See Item 3: “Key Information - Risk Factors - Risks Related to Our Operations and Business -
Estimations of our reserves are based on a number of assumptions, including mining and recovery factors, future cash costs of
production, exchange rates, and relevant commodity prices; as a result, metals produced in future may differ from current
estimates.”
This annual report contains descriptions of gold mining and the gold mining industry, including descriptions of geological
formations and mining processes. We have explained some of these terms in the Glossary of Mining Terms included in this
annual report. This glossary may assist you in understanding these terms.
All references to websites in this annual report are intended to be inactive textual reference for information only and
information contained in or accessible through any such website does not form a part of this annual report.
PRESENTATION OF FINANCIAL INFORMATION
Harmony is a South African company and the majority of the Group operations are located in South Africa. Accordingly, our
books of account are maintained in South African Rand and our annual financial statements are prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). This
annual report includes our consolidated financial statements prepared in accordance with IFRS presented in the functional
currency of the Company, being South African Rand. All financial information, except as otherwise noted, is stated in accordance
with IFRS.
In this annual report, we also present “cash costs”, “cash costs per ounce”, “cash costs per kilogram”, “all-in sustaining
costs”, “all-in sustaining costs per ounce”, “all-in sustaining costs per kilogram” and "adjusted free cash flows", which are non-
GAAP measures. An investor should not consider these items in isolation or as alternatives to production costs, cost of sales,
cash generated by operating activities or any other measure of financial performance or liquidity calculated in accordance with
IFRS. The calculation of cash costs, cash costs per ounce/kilogram, all-in sustaining costs, all-in sustaining costs per ounce/
kilogram and adjusted free cash flows, may vary significantly among gold mining companies and, by themselves, do not
necessarily provide a basis for comparison with other gold mining companies. Nevertheless, Harmony believes that cash costs,
cash costs per ounce/kilogram, all-in sustaining costs and all-in sustaining costs per ounce/kilogram are useful indicators to
investors and management as they provide an indication of efficiency and profitability, efficiency and cash flows, the trend in
costs as the mining operations mature over time on a consistent basis and an internal benchmark of performance to allow for
comparison against other mines, both within the Group and at other gold mining companies. For further information, see Item 5:
“Operating and Financial Review and Prospects - Key factors affecting our results – Costs" and :- Reconciliation of Non-GAAP
Measures”.
We have included the US dollar equivalent amounts of certain information and transactions in Rand, Kina and A$. Unless
otherwise stated, we have translated assets and liabilities at the spot rate for the day, while the US$ equivalents of income
statement line items as well as cash costs and all-in sustaining costs have been translated at the average rate for the year
(R18.15 per US$1.00 for fiscal 2025 and R18.70 per US$1.00 for fiscal 2024). By including these US dollar equivalents in this
annual report, we are not representing that the Rand, Kina and A$ amounts actually represent the US dollar amounts, as the
case may be, or that these amounts could be converted at the rates indicated.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This annual report contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of
the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), with respect to our
financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities
for existing services, plans and objectives of management, markets for stock and other matters.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues, and
the potential benefit of acquisitions (including statements regarding growth and cost savings) wherever they may occur in this
annual report and the exhibits to this annual report, and including any climate change-related statements, targets and metrics,
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 this annual report. All statements other than statements of historical facts included in this report may be forward-looking
statements. Forward-looking statements also often use words such as “will”, “forecast”, “potential”, “estimate”, “expect” and
words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future
events and circumstances and should be considered in light of various important factors, including those set forth in this
disclaimer. Readers are cautioned not to place undue reliance on such statements. Important factors that could cause actual
results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation:
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•overall economic and business conditions in South Africa, Papua New Guinea, Australia and elsewhere;
•the impact from, and measures taken to address infectious, communicable and other diseases, such as HIV, tuberculosis
and silicosis;
•high and rising inflation, supply chain issues, volatile commodity costs and other inflationary pressures exacerbated by the
Russian invasion of Ukraine and subsequent sanctions;
•estimates of future earnings, and the sensitivity of earnings to gold and other metals prices;
•estimates of future gold and other metals production and sales;
•estimates of future cash costs;
•estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices;
•estimates of provision for silicosis settlement;
•increasing regulation of environmental and sustainability matters such as greenhouse gas (“GHG”) emission and climate
change, and the impact of climate change on our operations;
•estimates of future tax liabilities under the Carbon Tax Act (as defined below);
•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 and other metals;
•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;
•ageing infrastructure, unplanned breakdowns and stoppages that may delay production, increase costs and industrial
accidents;
•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 or sufficient gender diversity in
management positions or at Board level;
•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, as well as the
impact of South Africa exchange control regulations;
•the adequacy of the Group’s insurance coverage;
•any further downgrade of South Africa's credit rating;
•socio-economic or political instability in South Africa, Australia, Papua New Guinea and other countries in which we
operate;
•changes in technical and economic assumptions underlying our mineral reserves estimates;
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•geotechnical challenges due to the ageing of certain mines and a trend toward mining deeper pits and more complex, often
deeper underground, deposits; and
•actual or alleged breach or breaches in governance processes, fraud, bribery or corruption at our operations that leads to
censure, penalties or negative reputational impacts.
The foregoing factors and others described under “Risk Factors” 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.
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PART I
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
A. [Reserved]
B. CAPITALISATION AND INDEBTEDNESS
Not applicable.
C. REASONS FOR THE OFFER AND USE OF PROCEEDS
Not applicable.
D. RISK FACTORS
In addition to the other information included in this annual report and the exhibits, you should also carefully consider the
following factors related to our ordinary shares and American Depositary Shares ("ADSs"). There may be additional risks that
we do not currently know of or that we currently deem immaterial based on information currently available to us. Although we
have a formal risk policy framework in place, the maintenance and development of which is undertaken on an ongoing basis so
as to help management address systematic categories of risk associated with our business operations, any of these risks could
have a material adverse effect on our business, financial condition or results of operations, leading to a decline in the trading
price of our ordinary shares or our ADSs. The risks described below may, in retrospect, turn out to be incomplete and therefore
may not be the only risks to which we are exposed. Additional risks and uncertainties not presently known to us or that we now
believe are immaterial (and have therefore not been included), could also adversely affect our business, results of operations or
financial condition. The order of presentation of the risk factors below does not indicate the likelihood of their occurrence or the
magnitude or the significance of the individual risks.
Summary of Risk Factors
Risks Related to Our Industry
1.We are exposed to the impact of any significant decreases in the commodity prices on our production
2.The impact from, and measures taken to address infectious and communicable diseases, such as HIV/AIDS,
malaria and tuberculosis, pose risks to us in terms of productivity and costs and may adversely affect our
people, and may impact our business continuity, operating results, cash flows and financial condition
3.The nature of our mining operations presents safety risks
4.Mining companies face strong competition and industry consolidation
5.Laws governing health and safety affect our business and could impose significant costs and burdens
6.Since our labour force has substantial trade union participation in South Africa, we face the risk of disruption
from labour disputes and other industrial action resulting in loss of production and increased labour costs
impacting negatively on production and financial results
7.Laws governing mineral rights affect our business and could impose significant costs and obligations;
mineral rights in the countries in which we operate could be altered, suspended or cancelled for a variety of
reasons, including breaches in our obligations in respect of such mining rights
8.Our financial flexibility could be constrained by the Exchange Control Regulations of the countries in which
we operate
Risks Related to Our Operations and Business
1.Risks associated with pumping water inflows from closed mines adjacent to our operations, including related
closure liabilities, could adversely affect our operational results
2.Infrastructure constraints and ageing infrastructure could adversely affect our operations
3.Disruptions to electricity supply and rising power costs: Impact on operations and financial results
4.Illegal mining and other criminal activity at our operations, including theft of gold and gold-bearing material,
could pose a threat to the safety of employees, result in damage to property and could expose us to losses,
business disruption and liability
5.Actual and potential shortages of production inputs and supply chain disruptions may affect our operational
results
6.Fluctuations in insurance cost and availability could adversely affect our operating results and our insurance
coverage may prove inadequate to satisfy future claims
7.We compete with mining and other companies for key human resources with critical skills and our inability to
retain key personnel could have an adverse effect on our business
8.The use of contractors at certain operations may expose us to delays or suspensions in mining activities and
increases in mining costs
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9.We are dependent on a number of highly-integrated communication and information and technology (''IT'')
systems, any major disruption to which could have an adverse effect on our operations and financial results
10.Estimations of our reserves are based on a number of assumptions, at a specific point in time, including
mining and recovery factors, future cash costs of production, exchange rates, and the relevant commodity
prices; as a result, metals produced in future may differ from current estimates
11.Our operations have limited proved and probable reserves; exploration for additional resources and reserves
is speculative in nature, may be unsuccessful and involves many risks
12.We are subject to the risk of litigation, the causes and costs of which are not always known
13.The risk of unforeseen difficulties, delays or cost in implementing our business strategy and projects may
lead to us not delivering the anticipated benefits of our strategy and projects; in addition, actual cash costs,
capital expenditure, production and economic returns may differ significantly from those anticipated by
feasibility studies for new development projects
14.Certain of our operations are dependent on trackless mobile machinery (“TMM”), which exposes us to
interruptions, delays, and increased operational risk.
15.Our recent appointment of a new independent registered public accounting firm could result in additional
costs, which could adversely impact our business.
Risks Related to ESG
1.We may fail to meet ESG performance expectations and targets, which could result in reputational damage,
loss of stakeholder confidence, and material adverse effects on our business and access to capital
2.Climate change may present physical and transition risks that could materially and adversely affect our
operations, profitability, and long-term sustainability
3.We are subject to extensive environmental regulations in the countries in which we operate, and compliance
costs, regulatory changes, and potential non-compliance could have a material adverse effect on our
business, operating results and financial condition
4.The socio-economic landscape in the regions in which we operate may have an adverse effect on our
operations and profits
5.Given the nature of mining and the type of mines we operate, we face a material risk of liability, delays and
increased cash costs of production from environmental and industrial accidents and pollution compliance
breaches
6.Mining companies are increasingly expected to provide benefits to affected communities; failure to comply
with, and/or go beyond, our legal obligations could result in lawsuits, additional operational costs, investor
divestment and impact our “social license to operate”, which could adversely impact our business, operating
results and financial condition; we are finding increasing expectations on our business to provide social
investment beyond our legal obligations especially as communities demand services and basic
infrastructure from companies such as Harmony (where gaps in local government services are perceived or
experienced)
7.Compliance with emerging climate change regulations could result in significant costs for us
8.The cost of occupational health care services and the potential liabilities related to occupational health
diseases may increase in future and may be substantial
9.Our operations are subject to water use and other regulatory licenses, which may impose significant
compliance costs and operational constraints
10.Compliance with tailings management requirements and standards, and potential liabilities in the event of a
failure to timely comply or an incident involving a tailings storage facility ("TSF"), could adversely impact our
financial condition, our operational results and our reputation
11.We may have exposure to rehabilitate potential groundwater and land pollution, which may include
salination, and radiation contamination that may exist where we have operated or continue to operate;
implementation of the financial provision regulations adopted in by the Minister of Environmental Affairs in
November 2015, as they have subsequently been amended "Financial Regulations, 2015" may require us to
include provision in our financial statements for rehabilitation
12.Compliance with new and changing corporate governance and public disclosure requirements adds
uncertainty to our compliance policies and increases our costs of compliance
Risks Related to Our Corporate and Financing Structure and Strategy
1.Our inability to maintain effective disclosure controls and procedures, and an effective system of internal
control over financial reporting may have an adverse effect on investors’ confidence in the reliability of our
financial statements and other disclosures
2.We may experience problems in identifying, financing and managing new acquisitions or other business
combination transactions and integrating them with our existing operations; we may not have full
management control over future joint venture projects
3.Certain factors may affect our ability to support the carrying value of our property, plant and equipment, and
other assets on our balance sheet, resulting in impairments
4.Our ability to service our debt will depend on our future financial performance and other factors
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5.We are subject to the imposition of various regulatory costs, such as mining taxes and royalties, changes to
which may have a material adverse effect on our operations and profits; our operations and financial
condition could also be adversely affected by policies and legislation related to greater state intervention in
the mining sector and potentially the expropriation of mining assets without compensation
6.Sales of large quantities of our ordinary shares and ADSs, or the perception that these sales may occur,
could adversely affect the prevailing market price of such securities
7.As we have a significant number of shares that may be issued in terms of the employee share schemes, our
ordinary shares are subject to dilution
8.The continued status of South Africa’s credit rating as non-investment grade, as well as the grey-listing of
South Africa by the Financial Action Task Force ("FATF"), may have an adverse effect on our ability to secure
financing on favourable terms.
9.We may not pay dividends or make similar payments to our shareholders in the future
Market Risks
1.The profitability of our operations, and cash flows generated by those operations, are affected by changes in
the price of gold and other metals; a fall in the gold price below our cash cost of production and capital
expenditure required to maintain production for any sustained period may lead to losses and require us to
curtail or suspend certain operations
2.Fluctuations in input production prices linked to commodities may adversely affect our operational results
and financial condition
3.Foreign exchange fluctuations could have a material adverse effect on our operational results and financial
condition
4.Fluctuations in the exchange rate of currencies may reduce the market value of our securities, as well as the
market value of any dividends or distributions paid by us
5.Rising inflation and geopolitical risks may have a material adverse effect on our business, operating results
and financial condition
6.Investors may face liquidity risk in trading our ordinary shares on the JSE Limited
7.Shareholders outside South Africa may not be able to participate in future issues of securities (including
ordinary shares)
8.Global, social, political and economic conditions could adversely affect the profitability of our operations
Other Regulatory and Legal Risks
1.Failures of our IT security processes and violations of data protection laws may adversely impact our
business activities and lead to public and private censure, regulatory penalties, fines and/or sanctions and
may damage our reputation
2.Breaches in cybersecurity may adversely impact or disrupt our business.
3.Failure to comply with laws, regulations, codes and standards, policies and procedures or contractual
obligations may lead to fines and penalties, loss of licenses or permits, may negatively affect our financial
results, and adversely affect our reputation
4.Investors in the United States may have difficulty bringing actions, and enforcing judgments, against us, our
directors and our executive officers based on the civil liabilities provisions of the federal securities laws or
other laws of the United States or any state thereof
5.US securities laws do not require us to disclose as much information to investors as a US company is
required to disclose, and investors may receive less information about us than they might otherwise receive
from a comparable US company
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Risks Related to Our Industry
We are exposed to the impact of any significant decreases in the commodity prices on our production
As a rule, we sell our gold and silver at the prevailing market price. In order to manage commodity price risk, we maintain a
commodity hedging program for a portion of our future production. Our remaining unhedged future production is not protected
against decreases. If the gold or silver price should decrease significantly, our revenues may be materially adversely affected,
which could in turn, materially adversely affect our operating results and financial condition.
The impact from, and measures taken to address infectious and communicable diseases, such as
HIV/AIDS, malaria and tuberculosis, pose risks to us in terms of productivity and costs and may adversely affect our
people, and may impact our business continuity, operating results, cash flows and financial condition
Many of our employees and contractors work in close proximity to each other in underground and surface mines, and live
in close quarters in accommodation provided or supported by us. This renders them particularly vulnerable to the spread of
communicable diseases.
In South Africa, the prevalence of HIV in Harmony remains high due to historical migrant labour repercussions, as well as
other factors. A high proportion of affected employees have been identified and placed in treatment, however, the status of a
significant population remains unknown - potentially posing labour availability and cash flow uncertainty. Furthermore,
tuberculosis ("TB") in Harmony (and in the gold-mining industry generally) remains high despite the progress made by
Harmony's management program. Although there is a declining trend in the TB incident rate, it remains a factor and is still
subject to close monitoring as it is influenced by HIV and the exposure to silica dust.
In the Independent State of Papua New Guinea (“PNG”), communicable diseases similarly remain a threat.
We are committed to allocating financial resources on preventative measures such as vaccine rollouts, promotion and
education. Any new measures may result in additional costs incurred or interference with management's and/or employees’
productivity.
Our property and business interruption insurance and liability may not cover or be sufficient to fully cover any of our losses
resulting from public health emergencies and other events that could disrupt our operations. See “– Risks related to Our
Operations and Business - Fluctuations in insurance cost and availability could adversely affect our operating results and our
insurance coverage may prove inadequate to satisfy future claims”.
The full extent to which infectious and communicable diseases will impact our operational and financial performance,
whether directly or indirectly, will depend on future developments, which are highly uncertain and cannot be predicted. Any
disruption to production or increased operational costs as a result of these diseases could have a material adverse effect on our
business, operating results and financial condition.
The nature of our mining operations presents safety risks
Mining, and particularly the conduct of activities underground, is an inherently risky activity, presenting potential health,
safety, industrial, environmental and other risks for our operations, employees and communities within which we operate. These
and other risks identified elsewhere in this annual report also could lead to the suspension and potential closure of operations
for indeterminate periods. Safety risks, even in situations where no injuries occur, can have a material adverse effect on our
results of operations and financial condition. See Item 4: “Information on the Company - Business Overview - Regulation -
Health and Safety - South Africa”, "Business Overview - Regulation - Health and Safety - Australia” and "Business Overview -
Regulation - Health and Safety - PNG”. Also see “Integrated Annual Report for the 20-F 2025 – Social stewardship – Safety
transformation towards zero harm" on pages 129 to 140 and “Social stewardship – Holistic health and wellness“ on pages 141
to 153.
Mining companies face strong competition and industry consolidation
The mining industry is competitive in all of its phases. We compete with other mining companies and individuals for
specialised equipment, components and supplies necessary for exploration and development, for mining claims and leases on
exploration properties and for the acquisition of mining assets. These competitors may have greater financial resources,
operational experience and technical capabilities than us. Competition may increase our cost of acquiring suitable claims,
properties and assets, which could have a material adverse effect on our financial condition.
Further, industry consolidation may lead to increased competition due to lesser availability of mining and exploration
assets. Similar consolidations in the form of acquisitions, business combinations, joint ventures, partnerships or other strategic
relationships may continue in the future. The companies or alliances resulting from these transactions or any further
consolidation involving our competitors may benefit from greater economies of scale as well as significantly larger and more
diversified asset bases than us.
Such developments could have a material adverse effect on our business, operating results and financial condition.
Laws governing health and safety affect our business and could impose significant costs and burdens
South Africa
In South Africa, the Mine Health and Safety Act, 29 of 1996 (“MHSA”), requires that employers implement various
measures to ensure the safety and health of persons working at a mine as far as reasonably practicable. This obligation may be
extended by the employer in terms of an agreement with independent contractors who work at the mine. However, contractor
employees are regarded as the employees of the employer for purposes of the MHSA. The obligations of the employer include
the identification and assessment of risk, implementation of codes of practice and standards setting out safe work procedures,
proper and appropriate training, supervision, medical surveillance and the provision of safe equipment, machinery and personal
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protective equipment. Further, pursuant to the MHSA we must ensure compliance with various licenses, permissions or
consents that have been issued to it pursuant to the various provisions of applicable legislation.
In June 2022, the Minister of Mineral Resources and Energy ("Minister") released a draft Mine Health and Safety
Amendment Bill 2022 (the "MHSA Amendment Bill") for public comment which closed 29 July 2022. In October 2024, the
Minister published an explanatory summary of an updated amendment bill ("MHSA Amendment Bill, 2024") was gazetted 14
October 2024. However, the MHSA Amendment Bill, 2024 has not yet been tabled in Parliament. In terms of the MHSA
Amendment Bill certain provisions of the MHSA will be amended. The MHSA Amendment Bill contained a number of provisions
which, if enacted in their present form, could have a material adverse effect on our business, operating results and financial
condition. The MHSA Amendment Bill provided for (among other things) an increase in the monetary value of the fines that may
be imposed in respect of instances of non-compliance, more direct involvement of executives (particularly chief executive
officers (“CEOs”)), stricter liability in instances of non-compliance, and changes to the obligations relating to training and the
formulation of training programs. The MHSA Amendment Bill also introduced a new offence of corporate manslaughter, being
that the employer will contravene or fail to comply with the MHSA if it fails to comply with a duty in terms of the MHSA and if
such conduct resulted in a person’s death or in serious injury or illness of a person. The effect of the provisions in the MHSA
Amendment Bill are of that the defences on which the employer may rely to escape liability, are limited.
See Item 4: “Information on the Company - Business Overview - Regulation - Health and Safety - South Africa”
Australia
In the State of Queensland, where our Eva Copper Project is situated, the safety of employees, contractors and third
parties concerning mining operations is regulated by the Mining and Quarrying Safety and Health Act 1999 (Qld) (the "MQSH
Act") and the Mining and Quarrying Safety and Health Regulation 2017 (the "MQSH Regulations"). The MQSH Act and the
MQSH Regulations contain provisions that place certain obligations on Harmony to protect the safety and health of persons at
mines and persons who may be affected by its operations. The MQSH Act was amended by the Resources Safety and Health
Legislation Amendment Act 2024 (Qld) ("RSHLA Act"), with key amendments expanding safety obligations for mine operators
including the requirement to implement critical controls within safety and health management systems.
Resources Safety and Health Queensland (“RSHQ”) is the independent regulator responsible for administering, monitoring
and enforcing compliance with the MQSH Act in Queensland. Responsibility for prosecution of “serious offences” under the
MQSH Act fall with the independent Office of the Work Health and Safety Prosecutor of Queensland (the "WHS Prosecutor"). A
“serious offence” is committed where a person who has a safety and health obligation breaches it in circumstances where the
breach:
•causes death, or grievous bodily harm, or bodily harm;
•involves exposure of a person to a substance likely to cause death or grievous bodily harm;
•is an offence under the Industrial Manslaughter provisions of the MQSH Act; or
•amounts to an offence prescribed by the MQSH Regulations.
Other offences (i.e., non-serious offences) may be prosecuted by either the WHS Prosecutor or the chief executive officer
of RSHQ. Queensland legislation also allows any person to request that the WHS Prosecutor commence a prosecution against
another person in certain circumstances, i.e., when the person reasonably considers the other person has committed a “serious
offence” and no prosecution has been brought in relation to the act, in which instance the WHS Prosecutor has three months to
investigate and respond.
Breaches of these obligations may result in prosecutions leading to material fines and other penalties including
imprisonment; they may also result in a direction to suspend operations. Any such penalties could have a material adverse effect
on our business, operating results and financial condition.
See Item 4: “Information on the Company – Business Overview – Regulation – Health and Safety – Australia”.
Papua New Guinea
In PNG, the safety of employees, contractors and third parties at our mining operations is regulated by the PNG Mining
(Safety) Act 1977 (the "PNG Mining (Safety) Act") and the Regulations issued thereunder. Pursuant to section 6(1)(e)(i) of the
PNG Mining (Safety) Act, an inspector has the power to order the cessation of operations on any part of a mine for such
unlimited time as he or she considers may be necessary to satisfy the safety provisions of the PNG Mining (Safety) Act. Such
order for cessation can often result in lower or a total stoppage of production resulting in significant financial losses during and
following the cessation.
The mining regime in PNG, including the PNG Mining (Safety) Act and related Regulations, is currently the subject of
comprehensive ongoing review, which may result in changes which will affect our operations and projects in PNG. In 2021, the
PNG Ministry of Mining’s Department of Mineral Policy and Geohazards Management (“DMPGM”) released a draft Mine and
Works (Safety and Health) Bill 2021 (the "MWSH Bill") and has subsequently proposed various other amendments to the PNG
Mining (Safety) Act, however has not enacted the MWSH Bill or other amendments.
New laws, if enacted, could increase the overall regulatory burden on our operations and projects in PNG.
See Item 4: “Information on the Company – Business Overview - Regulation - Health and Safety – Papua New Guinea”.
General - Fines, Penalties and Costs of Compliance
An employer may be subjected to significant penalties and/or administrative fines for non-compliance under applicable
health and safety laws and regulations in the jurisdictions in which we operate.
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Depending on the particular circumstances, litigation (criminal and/or civil) may be instituted against an employer in respect
of an accident or incident which has resulted in the injury, death or occupational disease contracted by an employee (or
contractor employee). In some of the jurisdictions in which we operate, the regulatory authority is also empowered to issue
closure notices for the operation or parts thereof, following the threat of potential occurrence of an injury or death. In the past,
certain of our operations have also been temporarily suspended for safety reasons. Such closure notices or suspensions, if of
sufficient magnitude, could have a material adverse effect on our business, operating results or financial condition.
Any further changes to the health and safety laws and regulations in the jurisdictions in which we operate which increase
the burden of compliance on us and impose higher penalties for non-compliance may result in us incurring further significant
costs, which could have a material adverse effect on our business, operating results and financial condition. In addition, our
reputation could be damaged by any significant governmental investigation or enforcement of health and safety laws,
regulations, codes or standards, which could also have a material adverse effect on our business, operating results and financial
condition.
Since our labour force has substantial trade union participation in South Africa, we face the risk of disruption from
labour disputes and other industrial action resulting in loss of production and increased labour costs impacting
negatively on production and financial results
South Africa
In South Africa, our labour force has substantial trade union participation. There are periods when various stakeholders are
unable to resolve disputes through resolution processes. Dispute resolution processes are governed by legislative regulations.
Due to the high level of unionisation and union membership, which is about 95% among our employees, there is always risks of
production stoppages for indefinite periods due to strike action, especially in the form of wildcat strike action. Preemptive issue
identification and preemptive dialogue, together with existing early warning systems enhances the ability to timeously intervene.
Inter-union rivalry also contribute to the risk of labour relations instability. In addition, in South Africa, a variety of legacy issues
such as housing, migrant labour, education, poor service delivery and youth unemployment can lead to communities and unions
working together to create instability in and around mining operations.
On 4 April 2024, Harmony announced the acceptance of a five-year wage agreement by the unions, effective from 1 July
2024. However, we are not able to predict whether we will experience significant labour disputes in the future, nor what the
financial impact of any such disputes may be. Any labour unrest and disruptions caused by labour disputes could have a
material adverse effect on our results of operations and financial condition. See Item 4: “Information on the Company –
Business Overview – Regulation – Labour Relations”, “Integrated Annual Report for the 20-F 2025 – Social stewardship – An
engaged workforce” on pages 154 to 165.
South African employment law sets out minimum terms and conditions of employment for employees. Although these may
be improved by agreements between us and the trade unions, prescribed minimum terms and conditions form the benchmark
for all employment contracts. See “Integrated Annual Report for the 20-F 2025 – Harmony – Material matters” on pages 35 to
38.
We are required to submit a report under South African employment law detailing the progress made towards achieving
employment equity in the workplace. If this report is not submitted, we could incur substantial penalties.
Developments in South African employment law may increase our cash costs of production or alter our relationship with
our employees and trade unions, which may have an adverse effect on our business, operating results and financial condition.
Australia
In Queensland, there are a number of well-established mining unions, particularly in the coal and energy sectors. At
present, our Australian workforce is not unionised. However, as the Eva Copper Project moves into the development and
operational phases, there is a risk that unionisation may occur and participation could be significant; moreover, unions could
initiate enterprise bargaining under the Fair Work Act 2009 (Cth), which is a formal process in which an employer and a group of
employees (usually represented by unions) negotiate a legally-binding enterprise agreement.
Increased unionisation may give rise to increased costs or labour disruptions, which could have a material adverse effect
on our results of operations and financial condition.
Papua New Guinea
In PNG, the workforce in our mining operations is not unionised, and attempts to unionise have had little employee support
to date, however, as the labour environment in PNG continues to evolve, there is a risk that unionisation may occur.
General
In the event that we experience industrial relations related interruptions at any of our operations or in other industries that
impact our operations, or increased employment-related costs due to union or employee activity, these may have a material
adverse effect on our business, production levels, operating costs, production targets, operating results, financial condition,
reputation and future prospects. In addition, mining conditions can deteriorate during extended periods without production, such
as during and after strikes; lower levels of mining activity can have a longer term impact on production levels and operating
costs, which may affect our mines’ operating life, which could have a material adverse effect on our business, operating results
and financial condition.
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Laws governing mineral rights affect our business and could impose significant costs and obligations; mineral rights
in the countries in which we operate could be altered, suspended or cancelled for a variety of reasons, including
breaches in our obligations in respect of such mining rights
Our operations in South Africa, Australia and PNG are subject to legislation regulating mineral rights. Certain of the
Company’s properties may be subject to the rights or the asserted rights of various community stakeholders, including
indigenous peoples. The presence of those stakeholders may therefore have an impact on our ability to develop or operate our
mining interests.
South Africa
In South Africa, we are governed by the Mineral and Petroleum Resources Development Act, 28 of 2002 (“MPRDA”). See
Item 4: “Information on the Company - Business Overview - Regulation - Mineral Rights - South Africa - MPRDA” for a
description of the principal objectives set out in the MPRDA.
On 11 July 2024, during the Department of Mineral and Petroleum Resources ("DMPR'') 2024/25 Budget announcement
following South Africa's general elections, the Minister announced that the DMPR would split into two separate ministries: the
Department of Mineral and Petroleum Resources and the Department of Electricity and Energy, which split has been
subsequently implemented. In addition, the Minister indicated that the DMPR was in the process of drafting amendments to the
MPRDA to address certain perceived deficiencies and to bring the legislation in line with international best practice.
The South African Government published the Mineral Resources Development Bill of 2025 and subsequent correction (the
“MPRD Bill”) for public comment on 20 May 2025 and 9 June 2024, respectively. It invited interested and affected parties to
submit their comments on the Bill on or before 13 August 2025.
Among other things, the MPRD Bill, if promulgated, would achieve the following:
• Black Economic Empowerment
The MPRD Bill proposes regulate Black Economic Empowerment in terms of Regulations to be published pursuant to the
MPRD Bill. It is unclear what requirements will be contained in these Regulations and the extent to which they will be based on
or replace Mining Charter III.
• Ownership of tailings created before 1 May 2004
Historic tailings are not regulated in terms of the MPRDA; however, the MPRD Bill purports to amend the MPRDA so as to
render historic tailings subject to regulation under the MPRDA, resulting in the South African government gaining custodianship
of historic tailings. The current owners of these historic tailings will be afforded an opportunity to apply for amendments to
existing rights or new rights over the historic tailings within two years of Bill being introduced as law.
• Transfers of interests in companies
The MPRD Bill proposes amendments which are unclear but could suggest that a transfer of any interest in an unlisted
company, where such company holds a prospecting right or mining right, requires the prior consent of the Minister.
• Mineral beneficiation
The MPRD Bill seeks to make it mandatory for the Minister to “initiate or promote the beneficiation of minerals and
petroleum resources in the Republic of South Africa”. The MPRDA Bill affords the broad discretion over beneficiation, without
providing any criteria under which such discretion should be exercised.
• Strategic Minerals
The Minister may, in consultation with other relevant Ministers, declare certain minerals or a class of minerals as being
"strategic" to advancing Government imperatives and accordingly restrict their prospecting or mining. The MPRD Bill does not
elaborate on what minerals could be declared strategic.
• Penalties
The MPRD Bill proposes to introduce fines of up to 10% of the offender's annual turnover in the Republic and exports from
the Republic during the preceding financial year, for contraventions of the MPRDA.
• Issue of a closure certificate
The MPRD Bill envisages that a rights holder will remain liable for any latent or residual environmental and associated
damage caused by prospecting and mining operations, even after (and notwithstanding) the issue of a closure certificate by the
Minister. This means that a rights holder will no longer be indemnified from liability after the issue of a closure certificate.
The definition of “This Act” will be amended to elevate status of the the Codes of Good Practice for the South African
Minerals Industry (“Codes of Good Practice”) and the Housing and Living Conditions Standards for the Minerals Industry (“Living
Standards”), from policy documents to law.
There is a large degree of uncertainty regarding the changes that will be brought about in the event that the MPRD Bill is
made law in its current form.
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Regulations under the MPRDA
On 27 March 2020 the Minister published for implementation amendments to the regulations promulgated pursuant to the
MPRDA in 2004 (the “MPRDA Regulations” and as amended the “Amended Regulations”). The Amended Regulations include
the following notable changes:
•Mining right applicants must “meaningfully consult” with landowners, lawful occupiers and interested and affected parties in
accordance with the procedures contemplated under the Environmental Impact Assessment Regulations, 2014 (the “EIA
Regulations”). The office of the Regional Manager is permitted to participate as an observer in these processes.
•Mining right holders must, pursuant to their social and labour plans (“SLPs”), contribute to the socio-economic
development in the areas in which they operate and labour sending areas (i.e. a local municipality which a majority of mine
workers consider to be their primary residence). This requirement may impose obligations on mining right holder to effect
measures in communities that are located far away from the mine and/or could give rise to some social issues.
•Although most of the provisions regulating environmental matters have been deleted from the Amended Regulations, those
sections dealing with mine closure have been retained but have been amended to state that mine closure must be
regulated pursuant to the National Environmental Management Act, 107 of 1998 (“NEMA”), the EIA Regulations and the
Financial Provision Regulations, 2015. As discussed in Item 4: “Information on the Company – Business Overview –
Regulation - Laws and Regulations Pertaining to Environmental Protection – South Africa” it is anticipated that the
Financial Provision Regulations, 2015 will be replaced by revised regulations following further engagement with the mining
industry.
•The appeal process in the MPRDA Regulations has been replaced with a more comprehensive procedure that includes
specific time periods within which appellants, respondents and the competent authority must submit appeals, responses or
consider appeals (as the case may be). Although there is no guarantee that the parties will comply with these time periods,
the time periods are intended to hold the parties accountable and to ensure that appeals are resolved in a timely manner.
The Mining Charter
On 27 September 2018, the Minister published the Broad-Based Socio-Economic Empowerment Charter for the Mining
and Minerals Industry, 2018 (“Mining Charter III”), on which date it also became effective, as amended by the notice published
in the Government Gazette on 19 December 2018 and read with the Implementation Guidelines for the Broad Based Socio-
Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (“Implementation Guidelines”) published on the
same date. It replaces, in their entirety, the original Mining Charter negotiated in 2002 and gazetted in 2004 (the "Original
Charter") and the amended Charter gazetted in September 2010 (the “Amended Charter”).
Mining Charter III imposes obligations and increased participation by historically disadvantaged persons ("HDPs") in
relation to a mining company’s ownership, procurement of goods and services, enterprise and supplier development, human
resource development and employment equity requirements.
While the ownership requirement for HDPs in relation to existing mining rights has not increased (provided that we met the
26.0% requirement under the Amended Charter), we may be required to comply with new HDP ownership requirements in
relation to any renewals, consolidations and transfers of our existing rights and any applications for new mining rights. The
increased HDP requirements in relation to employment equity, procurement of goods and services and enterprise and supplier
development may result in additional costs being incurred by us, which could have a material adverse effect on our results of
operations and financial condition.
While Mining Charter III was effective from 27 September 2018, many of its provisions are vague and untested despite the
publication of the Implementation Guidelines. See Item 4: “Information on the Company - Business Overview - Regulation -
Mineral Rights - South Africa - Mining Charter”.
On 26 March 2019, the Minerals Council South Africa (“MCSA”) filed an application for the judicial review and setting aside
of certain clauses of Mining Charter III. The MCSA had engaged in ongoing attempts to reach a compromise with the Minister on
certain provisions that are problematic for the industry, and which would be detrimental to its sustainability.
The MCSA’s judicial review application was heard before a full bench of judges in May 2021. Judgment was handed down
on 21 September 2021 (the "2021 Judgement") setting aside certain of the problematic provisions, while providing that the
remainder of Mining Charter III should continue in force. In November 2021, the DMPR informed the National Assembly's
Portfolio Committee on Mineral Resources and Energy that it did not intend to appeal the outcome of the 2021 Judgement, but
instead would consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.
We cannot guarantee that we will meet all the targets set out by Mining Charter III. Should we breach any obligations in
complying with the MPRDA or Mining Charter III, our existing mining rights in South Africa could be suspended or cancelled by
the Minister in accordance with the provisions of the MPRDA. It may also influence our ability to obtain any new mining rights.
Any such suspension or cancellation could have a material adverse effect on our results of operations and financial condition.
Australia
In Australia, mining is regulated by the laws of the State in which the deposit is situated. Presently, our only mining activity
in Australia is the Eva Copper Project, located in the State of Queensland. Mining in Queensland is regulated by the Mineral
Resources Act 1989 (Qld) (the "Queensland MRA"), the Mineral and Energy Resources (Common Provisions) Act 2014 as
amended by the Mineral and Energy Resources and Other Legislation Amendment Act 2024 (Qld), the MQSH Act, and the
regulations, practice manual, operational policies and guidelines thereunder. See Item 4: “Information on the Company -
Business Overview - Regulation - Mineral Rights - Australia”.
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Generally, all mineral resources in Queensland are owned by the State of Queensland. These resources are managed by
the Queensland Department of Resources. Under the Queensland MRA, the Department of Resources requires all large mining
projects to apply for an applicable resource authority, being (as the case may be) an exploration permit ("EP"), a mining lease
("ML") or a mineral development license.
An EP allows the holder to carry out exploration activities to determine what minerals exist and their quality and quantity in
or under land or in the waters or sea above such land, in accordance with agreed work programs and subject to compliance with
prescribed security and financial obligations. If the holder of an EP wishes to develop a mine to exploit discovered resources,
application must be made for an ML. This entitles the holder to machine-mine specified minerals and carry out activities
associated with mining, including infrastructure to support mining operations.
The Queensland MRA, and resource authorities issued thereunder, contain provisions and conditions, the breach of which
may result in the imposition of a fine, imprisonment or the cancellation of the tenement.
Should we breach any obligations in complying with the Queensland MRA or any other laws and regulations relating to our
exploration and mining activities in Queensland, our resource authorities in Queensland could be suspended or cancelled, or we
could be subject to fines or other sanctions. Any such suspension, cancellation, fine or sanction could have a material adverse
effect on our operational and financial results.
Papua New Guinea
In PNG, mining is primarily regulated by the PNG Mining Act 1992 (the “PNG Mining Act”) and the PNG Mining (Safety)
Act and their respective Regulations. All minerals are owned by the PNG Government, which grants rights to explore for or mine
such minerals under a concessionary tenement system. See Item 4: "Information on the Company – Business Overview –
Regulation - Mineral Rights - Papua New Guinea"
Since 2009, the mining regime in PNG has been the subject of a comprehensive ongoing review involving various PNG
Government agencies and various draft revisions of the PNG mining legislation have been circulated for comment. In addition to
the review of applicable legislation, PNG mineral policy and mining-specific sector policies are also being reviewed and drafted,
including a biodiversity offsets policy, a national oceans policy, a sustainable development policy, an involuntary relocation
policy, a national content policy, and a mine closure policy and mining project rehabilitation and closure guideline.See Item 4:
"Information on the Company – Business Overview – Regulation - Mineral Rights - Papua New Guinea".
Certain of the proposed revisions, such as increased royalties and equity participation by the PNG Government or the
introduction of a production-sharing regime, if adopted and applied to our operations and projects in PNG could have a material
adverse effect on our business, operating results and financial condition.
PNG mining legislation and mining tenements contain provisions and conditions, the breach of which may result in the
imposition of a fine, imprisonment or the cancellation of the tenement. Should we breach any obligations in complying with the
PNG Mining Act or any other laws and regulations relating to our exploration and mining activities in PNG, our existing mining
rights in PNG could be suspended or cancelled, or we could be subject to fines or other sanction. Any such suspension,
cancellation or sanction could have a material adverse effect on our results of operations and financial condition.
Our financial flexibility could be constrained by the Exchange Control Regulations of the countries in which we operate
South Africa’s Exchange Control Regulations restrict the export of capital from South Africa. Transactions between South
African residents (including companies) and non-residents (excluding residents of the Republic of Namibia and the Kingdoms of
Lesotho and Eswatini, known collectively as the Common Monetary Area (“CMA”)) are subject to exchange controls enforced
by South African Reserve Bank ("SARB"). South African companies remain subject to restrictions on their ability to deploy
capital outside of South Africa. These restrictions could hinder our financial and strategic flexibility, particularly our ability to raise
funds outside South Africa, deploy capital for international acquisitions or projects, and repatriate earnings, and could therefore
have a material adverse effect on our business, operating results and financial condition.
Our operations in PNG (including the export of gold and the operation of approved offshore foreign currency accounts) are
subject to the foreign exchange control and other directives of the Bank of Papua New Guinea. PNG is presently subject to
severe shortages of foreign currency. The withdrawal of existing approvals or the imposition of restrictions could potentially
hinder our financial and strategic flexibility, limit our ability to make offshore payments, and could have a material adverse effect
on our business, operating results and financial condition.
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Risks Related to Our Operations and Business
Risks associated with pumping water inflows from closed mines adjacent to our operations, including related closure
liabilities, could adversely affect our operational results
Certain of our mining operations in South Africa are adjacent to the mining operations of other companies. A mine closure
can affect continued operations at an adjacent mine if appropriate preventative steps are not taken. In particular, this could
include the ingress of underground water when pumping operations at the closed mine are suspended. This can result in
damage to property, operational disruptions and additional pumping costs, which could adversely affect any one of our adjacent
mining operations and, in turn could adversely affect our business, operating results and financial condition.
In connection with our acquisition in 2018 of the Moab Khotsong and Great Noligwa mines from AngloGold Ashanti Limited
("AngloGold"), together with other assets and related infrastructure (the “Moab Acquisition”), we acquired a two-thirds interest
in the Margaret Water Company NPC ("Margaret Water") for all pumping and water-related infrastructure at its Margaret shaft.
The shaft operates for the purpose of de-watering the Klerksdorp, Orkney, Stilfontein, Hartbeesfontein (“KOSH”) basin
groundwater. This is to allow Moab Khotsong operations and the mine operated by Kopanang Gold Mining Company Proprietary
Limited (the mining company holding the remaining one–third interest in Margaret Water and the only other mining company
continuing to operate in the area) to remain dry and to prevent flooding of operational areas. Therefore, it remains imperative for
the shaft to continue pumping water.
Flooding and potential decant in the future resulting from a failure in pumping and water-related infrastructure could pose
an unpredicted “force majeure” type event, which could result in financial liability for us, and could have an adverse impact on
our results of operations and financial condition. Although studies indicate that we do not currently have a decant risk at our
Doornkop and Kusasalethu operations, due to the interconnectivity, any long-term water management solution would require a
regional strategy co-created with neighbouring and inter-connected mines. Although we have installed water treatment plants at
both sites for current treatment needs, which could serve as water plants for final decant should the situation arise, there can be
no assurance that such plants will be sufficient to address such risks. There is also a flooding risk at the Mponeng mine,
requiring the continuous pumping arrangement with Covalent Water Company (Pty) Limited (a wholly-owned subsidiary) to stay
in place.
Obligations in respect of the pumping and treatment of extraneous water must also be addressed in connection with our
final closure plans for each of our operations. We are responsible for these liabilities until a closure certificate is issued pursuant
to the MPRDA and possibly thereafter under the NEMA. The occurrence of any of the risks discussed above could have an
adverse effect on our operating results and financial condition. This liability is discussed in more details in Item 4: “Information
on the Company – Business Overview – Regulation – Law and Regulations Pertaining to Environmental Protection – South
Africa – NEMA”. See also “– We are subject to extensive environmental regulations in the countries in which we operate, and
compliance costs, regulatory changes, and potential non-compliance could have a material adverse effect on our business,
operating results and financial condition” below.
Infrastructure constraints and ageing infrastructure could adversely affect our operations
Mining, processing, development and exploration activities depend on adequate infrastructure. Reliable rail, ports, roads,
bridges, power sources, power transmission facilities and water supply are critical to the Company’s business operations and
affect capital and operating costs. The infrastructure and services are often provided by third parties whose operational activities
are outside the control of the Company.
Interference to the maintenance or provision of infrastructure, including by extreme weather conditions, scarcity of
equipment, sabotage or social unrest, could impede our ability to deliver products on time and adversely affect our business
results of operations and financial condition.
Once a shaft or a processing plant has reached the end of its intended lifespan, higher than normal maintenance and care
is required. This applies also to terrestrial tailings and waste storage facilities. Maintaining this infrastructure requires skilled
human resources, capital allocation, management and planning. Although we have implemented a comprehensive maintenance
strategy, incidents resulting in production delays, increased costs or industrial accidents may occur. Such incidents may have an
adverse effect on our operating results and financial condition.
Disruptions to electricity supply and rising power costs: Impact on operations and financial results
South Africa
South Africa's mining sector, including our operations, is heavily dependent on electricity supplied by Eskom Holdings SOC
Limited ("Eskom"), the state-owned utility that primarily relies on fossil fuels. Over the past decade, Eskom has faced significant
challenges. Harmony’s operations in South Africa remain exposed to risks associated with electricity supply instability and
escalating power costs. Systemic risks persist due to Eskom’s ageing infrastructure, financial constraints, and limited capacity
for sustained maintenance and upgrades - posing ongoing threats to electricity reliability.
Unstable power supply can damage equipment, disrupt production, and reduce recovery rates. Rising electricity costs
continue to erode free cash flow margins, potentially impacting mine life, project viability, and overall financial performance.
Given these factors, the risk of power supply disruptions remains a concern for Harmony’s South African operations and
may have an adverse effect on our operational results.
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Papua New Guinea
In PNG, our Hidden Valley mine relies on power from the state utility, PNG Power Limited ("PNG Power"). The amount of
power imported from PNG Power has had a marginal increase over the last three years, with about 67% of the mine's daily
power demand met by PNG Power, and the remaining 33% self-generated using the mine’s diesel power station.
Risks associated with self-generation include exposure to diesel price increases, danger to road users and pedestrians in
the transport of fuel to the site, and potentially higher associated greenhouse gas emissions.
See Item 5: “Operating and Financial Review and Prospects – Operating Results – Key factors affecting our results -
Electricity in South Africa.” and “Integrated Annual Report for the 20-F 2025 – Environment stewardship – Climate and energy
management” on pages 98 to 104.
Illegal mining and other criminal activity at our operations, including theft of gold and gold-bearing material, could
pose a threat to the safety of employees, result in damage to property and could expose us to losses, business
disruption and liability
The activities of illegal and artisanal miners, which include theft, has increased over the years and had become more
violent and threatens both the safety of employees and sustainability of the mining industry.
South Africa
In South Africa, artisanal and illegal miners are active on, or adjacent to, several of our properties, but were mostly active
on the surface during fiscal 2025. Artisanal and illegal miners at times may lead to interference with our operations and results in
conflict that presents a security threat to property and human life. The environmental, social, safety and health impacts of
artisanal mining are frequently attributed to formal mining activity, and it is often assumed that artisanal-mined gold is channelled
through large-scale mining operators, even though artisanal and large-scale miners have distinct supply chains. These
misconceptions impact negatively on the reputation of the industry.
The activities of the illegal miners, which include theft, can cause damage to our properties, including by way of pollution,
copper cable theft, underground fires, critical infrastructure damage, operational disruption, project delays or personal injury or
death, for which we could potentially be held responsible. Illegal and artisanal mining could contribute to the depletion of mineral
deposits, potentially making the future mining of such deposits uneconomic. Most illegal miners are found at abandoned shafts
or old work places.
Illegal and artisanal mining (which may be by employees or third parties) is associated with a number of negative impacts,
including environmental degradation and human rights abuse, such as forced labour, human trafficking, child labour, corruption,
money laundering and other violent crimes in the communities and at the mines. Effective local government administration is
often lacking in the locations where illegal and artisanal miners operate, due to rapid population growth and the lack of
functioning structures, which can create a complex, unstable social environment. The disbandment of specialised South African
Police Service ("SAPS") units has also left a huge gap in the apprehension of high-ranking criminals in the illicit gold trade.
Without the assistance of these services, combating illegal and artisanal mining is extremely difficult and poses significant risks
to Harmony including reputational risks, litigation, production losses resulting from stoppages and areas becoming unsafe as the
miners encroach on active mining sites as well as increased costs to mitigate these risks.
Papua New Guinea
Illegal and artisanal mining poses challenges to various mines in PNG.The presence of illegal miners could lead to project
delays and disputes regarding the development or operation of commercial gold deposits. In addition, illegal mining could lead to
an increase in the level of organisation and funding of criminal activity around some of our operations. Criminal activities such as
trespassing, illegal and artisanal mining, and related sabotage, theft and vandalism could lead to damage to, and disruptions at,
our operations.
Rising gold and copper prices may result in an increase in gold and copper thefts; moreover, incidences of illegal mining
may escalate as a result of social and economic conditions. The occurrence of any of these events could have a material
adverse effect on our financial condition on results of our operations.
Actual and potential shortages of production inputs and supply chain disruptions may affect our operational results
Our operational results may be affected by the availability and pricing of consumables such as fuel, chemical reagents,
explosives, tires, steel and other essential production inputs. Issues with regards to availability of consumables may result from
shortages, long lead times to deliver and supply chain disruptions, which could result in production delays and production
shortfalls. We expect cost increases and longer lead time to continue in fiscal 2026 across our operations, including as a result
of factors such as the price of oil, inflationary increases and labour costs. See “— Rising inflation, and geopolitical risks may
have a material adverse effect on our business, operating results and financial condition”.
Shortages can be attributed to geopolitical uncertainty, including the potential impact of global trade policy shifts. In South
Africa, the consequences of intermittent power outages and unplanned breakdowns have resulted in rising input costs and
longer lead times. The steel and chemical industry has experienced periodic labour actions related to wage negotiations,
affecting major local steelmakers and retailers, and creating supply constraints. These shortages has had an affect on numerous
engineering companies within our extensive supply chain network, regardless of their size.
Despite the Red Sea maritime disruptions that impacted our supply chain during fiscal 2024 having largely stabilised by
mid-year, the freight rates remain elevated compared to pre-disruption levels. Current geopolitical tensions in the Middle East
continue to pose risks of renewed disruptions. The port congestion at South African facilities, particularly Durban, has affected
the clearance time of imported items and continues to create supply chain bottlenecks.
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The pricing of consumables could continue to be impacted by these challenges, particularly if shortages become more
prevalent. Factors such as global supply and demand dynamics, governmental regulations including import parities on steel and
chemical-related products, and industrial actions, may contribute to price fluctuations. A sustained interruption in the supply of
these consumables would necessitate swift identification of alternative suppliers, potentially resulting in higher costs. Moreover,
such interruptions could adversely affect our ability to pursue our development projects. Any significant increase in the prices of
these consumables would escalate operating costs and have adverse effects on profitability. Consequently, this could impact our
financial and operating results.
Fluctuations in insurance cost and availability could adversely affect our operating results and our insurance coverage
may prove inadequate to satisfy future claims
Fluctuations in insurance costs and availability can significantly impact our operating results, and our current insurance
coverage may not fully address future claims. We maintain global insurance policies that cover general liability, directors' and
officers' liability, cyber-security, accidental loss, and material damage to our property, including resultant business interruptions.
However, the costs of sustaining adequate insurance coverage continue to rise and may persist in doing so, potentially
adversely affecting our financial performance.
We also have comprehensive third-party liability coverage, which includes unforeseen sudden and accidental
environmental liabilities. Despite this, we may still face liability for pollution or other hazards that are not insured or insurable,
including those related to past mining activities. Our property and liability insurance is aligned with industry practices but, like all
insurance policies, contains exclusions and limitations.
Additionally, there is no guarantee that insurance will always be available at economically feasible premiums.
Consequently, our insurance coverage might not protect against certain claims related to environmental or industrial accidents,
pollution, public health emergencies, data protection and cybersecurity breaches, and other events that could disrupt our
operations, such as the National Grid Collapse. These factors could materially and adversely affect our financial and operating
results.
We compete with mining and other companies for key human resources with critical skills and our inability to retain
key personnel could have an adverse effect on our business
The risk of losing senior management or being unable to hire and retain sufficient technically skilled employees or sufficient
representation by HDPs in management positions, or sufficient gender diversity in management positions or at Board level, may
materially impact on our ability to achieve our objectives. We compete with mining and other companies globally to attract and
retain key human resources at all levels with the appropriate technical skills and operating and managerial experience
necessary to continue operating our business. The global shortage of key mining specialists, including geologists, mining
engineers, mechanical and electrical engineers, metallurgists and skilled artisans has been exacerbated by increased mining
activity across the globe. Furthermore, the often remote locations of mining operations may make the mining industry
unattractive to potential employees.
In addition to this, the regions we operate in also have specific requirements which could affect our recruitment and
retention processes. In South Africa, the need to recruit, develop and retain skilled employees is particularly critical with HDPs
and women in mining in South Africa. In August 2024, the PNG Department of Commerce and Industry launched "The Papua
New Guinea National Content Policy for Resource Sectors 2023". Although it is presently uncertain the extent to which, and
how, the policy will be applied to our current operations and projects in PNG, if the localisation of the workforce policy provisions
are introduced, we believe that they would severely restrict the utilisation of offshore-based “fly-in, fly-out” expatriate employees,
and potentially also result in a tightening of legislation around the granting of work permits and visas to foreign skilled
employees. This would, in turn, adversely affect our ability in PNG to engage and retain appropriately skilled human resources,
and could necessitate the application of additional resources to the construction or provision of housing for residential
employees and the recruiting and training of local landholders and landholder businesses, all of which may have an adverse
effect on our business, operating results and financial condition.
There can be no assurance that we will attract and retain skilled and experienced employees. Should we lose any of our
key personnel, our business may be harmed and our operational results and financial condition could be adversely affected. See
Item 4: “Information on the Company – Business Overview – Regulation – Labour Relations” and “Integrated Annual Report for
the 20-F 2025 – Social stewardship – An engaged workforce” on pages 154 to 165.
The use of contractors at certain operations may expose us to delays or suspensions in mining activities and
increases in mining costs
We use contractors at certain of our operations to mine and deliver ore to processing plants as well as for other purposes.
At mines employing mining contractors, contracting costs represent a significant proportion of the total operating costs of these
operations and we do not own all of the mining equipment.
Our operations could be disrupted, resulting in additional costs and liabilities, if the mining contractors at affected mines have
financial difficulties, if a dispute arises in renegotiating a contract, or if there is a delay in replacing an existing contractor and its
operating equipment to meet business needs at expected cost levels. Increases in contract mining rates, in the absence of
associated productivity increases, will also have an adverse impact on our results of operations and financial condition.
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Contractors can adversely affect our reputation, results of operations and financial condition by:
•our reduced control over those aspects of operations which are the responsibility of contractors;
•their failure to comply with applicable legal, human rights and regulatory requirements; and
•their inability to manage their workforce to provide high quality services and a high level of productivity.
This may result in us incurring liability to third parties due to the actions of contractors, which could have a material
adverse effect on our business, operating results and financial condition.
In PNG, although it is presently uncertain the extent to which, and how, the PNG Department of Commerce and Industry’s
“Papua New Guinea National Content Policy for Resource Sectors 2023" will be applied to our current operations and projects in
PNG, if these provisions are introduced, we believe they will prescribe increased levels of participation by locally-owned
businesses in the provision of goods and services, which could adversely affect our ability in PNG to manage the costs of goods
and services to our operations, which would, in turn, have an adverse effect on our business, operating results and financial
condition.
We are dependent on a number of highly-integrated communication and IT systems, any major disruption to which
could have an adverse effect on our operations and financial results
We utilise and rely on various internal and external IT systems to support our business activities. Significant damage or
interruption of our IT systems, whether due to accidents, human error, natural events or malicious acts, may lead to disruptions
to our business operations and/or essential data being irretrievably lost, exposed or damaged, thereby adversely affecting our
business, operating results and financial condition.
Estimations of our reserves are based on a number of assumptions, at a specific point in time, including mining and
recovery factors, future cash costs of production, exchange rates, and the relevant commodity prices; as a result,
metals produced in future may differ from current estimates
The mineral reserve estimates in this annual report are estimates of the mill-delivered quantity and grade of metals in our
deposits and stockpiles. They represent the amount of metals that we believe can be mined, processed and sold at prices
sufficient to recover our estimated future cash costs of production, remaining investment and anticipated additional capital
expenditures. Our mineral reserves are estimated based on a number of factors, which have been stated in accordance with the
South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition
(“SAMREC, 2016”). For the purposes of this Harmony 2025 Form 20-F, our Mineral Resources and Mineral Reserves have been
classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K. Calculations of our mineral reserves are based on
estimates of:
•future cash costs;
•future commodity prices;
•future currency exchange rates; and
•metallurgical and mining recovery rates.
These factors, which significantly impact mineral reserve estimates, are beyond our control. As a result, reserve estimates
in this annual report should not be interpreted as assurances of the economic life of our gold and other precious metal deposits
or the future profitability of operations.
Since these mineral reserves are estimates based on assumptions related to factors detailed above at a specific point in
time, should there be changes to any of these assumptions, we may in future need to revise these estimates. In particular, if our
cash operating and production costs increase or the gold price decreases, recovering a portion of our mineral reserves may
become uneconomical. This will lead, in turn, to a reduction in estimated reserves. Any reduction in our mineral reserves
estimate could materially adversely affect our business, operating results and financial condition.
Our operations have limited proved and probable reserves; exploration for additional resources and reserves is
speculative in nature, may be unsuccessful and involves many risks
Our operations have limited proved and probable reserves, and exploration and discovery of new resources and reserves
are necessary to maintain current gold production levels at these operations. Exploration for gold, other precious metals and
copper is speculative in nature, may be unsuccessful and involves risks including those related to:
•locating orebodies;
•geological nature of the orebodies;
•identifying the metallurgical properties of orebodies;
•estimating the economic feasibility of mining orebodies;
•developing appropriate metallurgical processes;
•obtaining necessary governmental permits; and
•constructing mining and processing facilities at any site chosen for mining.
Our exploration efforts might not result in the discovery of mineralisation, and any mineralisation discovered might not
result in an increase in resources or proved and probable reserves. To access additional resources and reserves, we will need
to complete development projects successfully, including extensions to existing mines and, possibly, establishing new mines.
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Development projects would also be required to access any new mineralisation discovered by exploration activities around the
world. We typically use feasibility studies to determine whether to undertake significant development projects. These studies
often require substantial expenditure. Feasibility studies include estimates of expected or anticipated economic returns, which
are based on assumptions about:
•future gold and other metal prices;
•anticipated tonnage, grades and metallurgical characteristics of ore to be mined and processed;
•anticipated recovery rates of gold and other metals from the ore; and
•anticipated total costs of the project, including capital expenditure and cash costs.
All projects are subject to project study risk. There is no certainty or guarantee that a feasibility study, if undertaken, will be
successfully concluded or that the project that is the subject of the study will satisfy our economic, technical, risk and other
criteria in order to progress that project to development.
A failure in our ability to discover new resources and reserves, enhance existing resources and reserves or develop new
operations in sufficient quantities to maintain or grow the current level of our resources and reserves could negatively affect our
business, operating results and financial condition.
We are subject to the risk of litigation, the causes and costs of which are not always known
We are subject to litigation, arbitration and other legal proceedings arising in the normal course of business, and we may
be involved in disputes that may result in litigation. Potential future litigation may arise from a variety of causes, including among
other things, business activities, environmental, health and safety matters, share price volatility, unlawful community protest
actions and failure to comply with disclosure obligations. The results of litigation, arbitration and other legal proceedings cannot
be predicted with certainty, but could include costly damage awards or settlements, fines, and the loss of licenses, concessions,
or rights, among other things.
In the event of a dispute, we may be subject to the exclusive jurisdiction of foreign courts or may not be successful in
subjecting foreign persons to the jurisdiction of courts in South Africa. An adverse or arbitrary decision of a foreign court could
have a material adverse impact on our financial performance, cash flow and results of operations.
South Africa
We are subject to numerous claims, including class actions or similar group claims relating to silicosis and other
occupational health diseases, and could be subject to similar claims in the future. A settlement in the silicosis class action claims
has been reached and a provision for silicosis has been made. A provision of R262 million has been recognised at 30 June
2025, for our potential cost to settle the silicosis and TB class actions that have been instituted against us in South Africa.
Significant judgment was applied in estimating the costs that will be incurred to settle the silicosis class action claims and related
expenditure and the final costs may differ from current cost estimates. Management believes the assumptions are appropriate,
however changes in the assumptions may materially affect the provision and final costs of settlement. There can be no
assurance that the ultimate resolution of this matter will not result in losses in excess of the recorded provision and the ultimate
settlement may have a material adverse effect on our financial position. For further information, see Item 8: “Financial
Information – Consolidated Statements and Other Financial Information – Legal Proceedings” and “Integrated Annual Report for
the 20-F 2025 – Social stewardship – Holistic health and wellness” on pages 141 to 153 for further information. See note 25
“Other Provisions – Provision for silicosis settlement” to our consolidated financial statements set forth beginning on page F-1.
It is possible that additional class actions and/or individual claims relating to silicosis and/or other occupational health
diseases will be filed against us in the future. We will defend all and any subsequent claims as filed on their merits. Should we
be unsuccessful in defending any such claims, or in otherwise favourably resolving perceived deficiencies in the national
occupational disease compensation framework that were identified in the earlier decision by the Constitutional Court, such
matters would have an adverse effect on our financial position, which could be material.
Papua New Guinea
In PNG, it is proposed to utilise deep sea tailings placement (“DSTP”) as the tailings management method for the Wafi-
Golpu Project, which method is authorised under the environment permit issued for the project. However, the grant of the permit
is currently the subject of two judicial review proceedings against the State of PNG, the first of which was instituted in March
2021 by a previous Governor of the Morobe Province in PNG who was opposed to DSTP and the second of which was instituted
in December 2022 by Huon Gulf coastal villagers represented by the Centre for Environmental Law and Community Rights Inc.
("CELCOR").
With regard to the proceedings instituted in March 2021, the Governor who succeeded the instituting Governor in
September 2022 was not opposed to DSTP and stated publicly his intention to withdraw the proceedings instituted by his
predecessor. As at 30 June 2025, he had not yet done so. The Governor passed away in September 2025 and, to the time of
filing of this report, the proceedings have not been withdrawn. With regard to the proceedings instituted in December 2022, the
matter went to substantive hearing on 12 June 2025 and, as at 27 October 2025, a ruling has not been made.
In addition to the judicial reviews, Harmony Gold (Australia) Pty Ltd ("HGA") and Newcrest Mining Limited (“Newcrest”), a
subsidiary of Newmont Corporation (“Newmont”), have been the subject of an Organisation for Economic Co-operation and
Development ("OECD") complaint lodged in November 2022 by Huon Gulf coastal villagers represented by CELCOR alleging
the breach (particularly regarding the plans to utilise DSTP) of various human rights and environmental requirements set out in
the Guidelines for Multinational Enterprises 2011 published by the OECD.
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Irrespective of the outcome of the CELCOR judicial review, it is possible that a class action or individual claim relating to
DSTP may be filed against us in the future, which (if successful) could have a material adverse impact on the Wafi-Golpu
Project.
Should we be unable to resolve disputes favourably or to enforce our rights, this may have a material adverse impact on
our financial performance, cash flow and results of operations.
The risk of unforeseen difficulties, delays or costs in implementing our business strategy and projects may lead
to us not delivering the anticipated benefits of our strategy and projects; in addition, actual cash costs, capital
expenditure, production and economic returns may differ significantly from those anticipated by feasibility studies for
new development projects
The successful implementation of our business strategy and projects depends upon many factors, including those outside
our control. For example, the successful management of costs will depend on prevailing market prices for input costs. The ability
to grow our business will depend on the successful implementation of our existing and proposed projects and continued
exploration success, as well as on the availability of attractive acquisition opportunities, all of which are subject to the relevant
mining and company specific risks as outlined in these risk factors.
It can take a number of years from the initial feasibility study until development/construction of a project is completed and,
during that time, the economic feasibility of production may change. In addition, there are a number of inherent uncertainties in
project development and construction including:
•the time to secure and provisions of necessary governmental and third party permits, licenses and permissions;
•timing and cost of constructing mining and processing facilities;
•availability and cost of skilled labour, power, water, fuel, mining equipment and other materials;
•accessibility of transportation and other infrastructure, particularly in remote locations;
•availability and cost of smelting and refining arrangements;
•availability of funds to finance construction and development activities; and
•spot and expected future commodity prices of metals including gold, silver, copper, uranium and molybdenum.
All of these factors, and others, could result in our actual cash costs, capital expenditures, production and economic returns
differing materially from those anticipated by feasibility studies.
In order to maintain or expand our operations and reserve base, we have sought, and may continue to seek to enter into
joint ventures or other alliance arrangements with third parties and make acquisitions of primarily gold and copper producing
companies or assets. See “– Risks Related to Our Corporate and Financing Structure and Strategy – We may experience
problems in identifying, financing and managing new acquisitions or other business combination transactions and integrating
them with our existing operations, we may not have full management control over future joint venture projects”.
However, there is no assurance that any future development projects will extend the life of our existing mining operations
or result in any new commercial mining operations. Unforeseen difficulties, delays or costs may adversely affect the successful
implementation of our business strategy and projects, and such strategy and projects may not result in the anticipated benefits,
which could have a material adverse effect on our results of operations, financial condition and prospects.
Certain of our operations are dependent on trackless mobile machinery (“TMM”), which exposes us to
interruptions, delays, and increased operational risk
Specific operations face elevated risks associated with the reliability and availability of TMM, which is critical to
mechanised mining and project execution. Adverse underground conditions, supply chain constraints, and skills shortages
contribute to equipment downtime and operational inefficiencies. These challenges pose potential threats to production
continuity, cost control, and the timely delivery of capital projects.
Our recent appointment of a new independent registered public accounting firm could result in additional costs,
which could adversely impact our business.
We recently appointed Ernst & Young Inc. ("EY") as our independent registered public accounting firm, replacing
PricewaterhouseCoopers Inc. ("PwC"). The transition to a new auditor involves inherent risks and costs, including transition and
onboarding costs in the form of additional audit fees and management time required during the initial phase. Due to the
complexity of our environment, this could take several years, as the new auditor establishes an understanding of our operations,
systems, and accounting processes. While we do not anticipate that the auditor transition will result in changes to our previously
reported financial results, the transition process may temporarily increase costs and resource demands on our teams involved in
the external audit.
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Risks Related to ESG
We may fail to meet ESG performance expectations and targets, which could result in reputational damage, loss of
stakeholder confidence, and material adverse effects on our business and access to capital
Harmony operates in an environment of increasing scrutiny regarding ESG performance from multiple stakeholder groups,
including investors, lenders, local communities, regulatory authorities, non-governmental organisations ("NGOs"), and other
parties. These stakeholders are increasingly focused on climate-related risks, governance practices, and the environmental and
social impacts of mining operations and investments. Investment capital allocation decisions, lending decisions, and stakeholder
engagement are increasingly driven by assessments of ESG performance, particularly regarding the safe operation of mines,
mitigation of local environmental and community impacts, reduction of greenhouse gas emissions, ethical standards, workplace
culture, human rights protections, regulatory compliance, and supply chain credibility.
Risks related to ESG performance expectations
Failure to meet internally or externally adopted ESG standards, or to satisfy stakeholder expectations regardless of legal
obligation, could result in significant reputational damage, loss of social license to operate, litigation, and constrained access to
capital from investors and lenders who may reallocate or decline to commit capital based on their assessment of our ESG
practices. Additionally, certain financial institutions from whom we borrow may require compliance with internationally-
recognised environmental, health, safety and social standards and benchmarks, and deviation from such standards could
adversely affect our existing financing arrangements and ability to secure future financing. Such requirements could impose
substantial compliance costs on our operations.
Beyond local regulatory compliance, our operations are subject to increasingly stringent internationally-recognised
standards and benchmarks, whether adopted by jurisdictions in which we operate or expected by stakeholders. For example,
companies registered in OECD-member countries are subject to OECD complaint processes regarding alleged breaches of the
OECD Guidelines for Multinational Enterprises occurring anywhere in the world. In November 2022, HGA and Newcrest (in
relation to their participation in the Wafi-Golpu Joint Venture) were the subject of an OECD Specific Instance complaint lodged
with the OECD National Contact Point in Australia, alleging breaches regarding human rights and environmental requirements,
particularly concerning plans to utilise DSTP. On 29 August 2025, the OECD Examiner published its report, finding that certain
activities appeared not to align with the OECD Guidelines in some areas and making a number of recommendations. Although
compliance with such recommendations is voluntary, adverse findings carry reputational risk and may signal to stakeholders and
financiers areas requiring remediation.
Risks related to meeting ESG targets
Harmony has published quantitative targets and metrics relating to ESG aspects including greenhouse gas emissions,
energy use, and water management, which are subject to regular public reporting and external scrutiny. Our ability to meet these
targets is dependent on our own operational actions, the regulatory policy frameworks and actions of governments in countries
where we operate, clear and timely regulatory guidance to support achievement of targets, and actions of participants in our
value chain and the broader society. Unforeseen factors beyond our control, including changes in regulatory regimes,
unavailability of requisite technologies, economic constraints, supply chain disruptions, or slower-than-anticipated societal
transitions, could impede our progress toward these targets.
Failure to meet published ESG targets could result in material adverse effects on our business, operating results, and
financial condition. Additionally, such failure could expose us to reputational damage, litigation risk from stakeholders, and loss
of investor confidence, potentially affecting our share price and ability to access capital markets.
Compounding risks from political and social controversy
ESG practices, particularly regarding inclusion, diversity and equity ("ID&E"), have become increasingly subject to political
controversy in the United States in recent years. Our policies and practices regarding ID&E and other ESG-related matters,
including previously established goals and initiatives and any disclosures mandated by non-US laws, may expose us to legal
and reputational risks, including anti-ESG and anti-ID&E-related orders, investigations, legislation, litigation, media scrutiny,
boycotts, and negative publicity from investors, employees, customers, and other stakeholders.
Jurisdictional differences and evolving regulatory landscapes create conflicting expectations from various stakeholder
groups—including governments, NGOs, investors, customers, employees, and other third parties. The Company may be unable
to satisfy the divergent or conflicting expectations of all stakeholders regarding ESG matters, ID&E initiatives, and other ESG-
related aspects of our business, which could result in reputational damage and business disruption.
Cumulative impact
The cumulative effect of these interconnected ESG risks comprising of stakeholder expectations, regulatory developments,
published targets, and political controversy could have a material adverse effect on our financial condition, operating results,
share price, access to capital, social license to operate, stakeholder relationships, and overall business resilience. We may be
required to implement increasingly stringent ESG practices and standards to meet evolving stakeholder expectations and
regulatory requirements, with associated compliance costs, management attention, and operational complexity. Failure to
effectively navigate these multifaceted ESG challenges could adversely impact our reputation, brand image, ability to attract and
retain capital and talent, and long-term business sustainability.
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Climate change may present physical and transition risks that could materially and adversely affect our operations,
profitability, and long-term sustainability
Climate change is widely regarded as one of the most severe global threats, with environmental risks like extreme weather
and climate action failure dominating global risk outlooks across all timeframes. Climate change presents both physical and
transitional risks to our operations, supply chain, and long-term financial performance.
Physical climate risks are predicted to increase in frequency and intensity, posing growing threats to our mining operations
and infrastructure. These risks include altered rainfall patterns and disruption to the water cycle, rising sea levels, water scarcity,
higher temperatures, and more frequent extreme weather events such as fires, floods, droughts, and higher intensity storm
events. Climate change intensifies floods and droughts by disrupting precipitation patterns, creating compound risks of both
water scarcity and flooding damage. These events can damage critical infrastructure, disrupt mining, transport, mineral
processing, and rehabilitation activities, strain energy and water resources, potentially halt production, and elevate health and
safety risks with potential consequences for our workforce, nearby communities, and operational continuity.
Transition risks arise from evolving climate policies, carbon pricing mechanisms, regulatory requirements, and stakeholder
expectations. These include potential carbon taxes, mandatory climate disclosure requirements, emissions reduction targets,
and shifting market dynamics as governments and investors accelerate decarbonisation efforts. Such measures may result in
increased compliance costs, capital expenditure requirements for emissions reduction technologies, changes to our operating
licenses or permits, pressure to accelerate our decarbonisation pathway, and potential impacts on the competitiveness of
carbon-intensive operations. Failure to adequately respond to these transition risks could affect our access to capital,
stakeholder relations, regulatory standing, and social license to operate.
Together, these physical and transition risks could materially impact our operations, profitability, sustainability, and long-
term resilience. Our ability to manage these interconnected climate risks will be critical to maintaining operational continuity,
meeting stakeholder expectations, and ensuring the sustainability of our business model in a carbon-constrained economy.
We are subject to extensive environmental regulations in the countries in which we operate, and compliance costs,
regulatory changes, and potential non-compliance could have a material adverse effect on our business, operating
results and financial condition
As a mining company, we are required to follow strict environmental regulations covering pollution prevention, water
management, waste disposal, biodiversity conservation, occupational health and safety, management of toxic substances and
mine closure. We expect compliance costs relating to environmental regulation to continue rising in South Africa, Australia and
PNG. In addition, stakeholders increasingly pressure us to improve energy efficiency, reduce our carbon footprint, use resources
responsibly and be transparent about managing climate-related risks and opportunities.
South Africa
In South Africa, our operations are governed by the MPRDA, the NEMA and numerous other environmental laws and
regulations that are regularly updated, amended and supplemented, imposing additional and changing obligations on mining
companies. See Item 4: "Information on the Company – Business Overview – Regulation – Laws and Regulations Pertaining to
Environmental Protection - South Africa" for detailed discussion of the regulatory framework.
Financial Provision and Rehabilitation Liabilities
Under South African law, mining right holders remain responsible for environmental liabilities, pollution, ecological
degradation, water treatment and sustainable mine closure until the DMPR issues a closure certificate, and under NEMA this
responsibility may continue indefinitely even after closure certification. We are required to annually assess environmental
liabilities and provide financial security for rehabilitation, closure and post-decommissioning management.
The Financial Provision Regulations, 2015 impose significantly more stringent obligations than previous guidelines,
including mandatory inclusion of preliminary costs, imposition of VAT at 15%, prohibition on withdrawal of trust funds for
concurrent rehabilitation, and ceding of funds to the Minister for latent liabilities. While the compliance deadline for existing rights
has been indefinitely delayed pending new regulations, the ultimate requirements remain uncertain. There are concerns about
the ambiguity of current and proposed provisions, which may result in misinterpretation, mis-application and disputes with the
Department of Forestry, Fisheries and Environment (the "DFFE"), any of which could have a material adverse effect on our
business, operating results and financial condition.
Under the National Environmental Management Laws Amendment Act, 2 of 2022 ("NEMLAA"), financial provision retained
by the Minister must be transferred to government-controlled accounts. We will not control how these funds are used but will
remain liable for environmental impacts. If anticipated liabilities do not materialize, there is no mechanism for recovering the
funds, creating potential for permanent loss of capital.
Proposed amendments to the MPRDA and NEMA seek to bring pre-2004 processing residue stockpiles and deposits
within the regulatory framework, which may require us to provide substantial additional financial provision for rehabilitation of
these facilities. We may also face increased environmental costs if neighbouring mines fail to meet their water management
obligations. The adoption of additional or more stringent requirements, particularly for hazardous waste management,
groundwater protection and rehabilitation of closed mines, may result in material additional costs and liabilities.
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Climate Change Legislation
The Climate Change Act 22 of 2024 (the "Climate Change Act") came into effect on 17 March 2025, though many key
provisions remain deferred pending development of enabling regulations. The Climate Change Act confirms that sectoral
emissions targets ("SETs") will be established for GHG emitting sectors and will become more stringent over time through five-
year review cycles. Large emitters will be allocated carbon budgets limiting permissible GHG emissions and must submit and
implement GHG mitigation plans. Failure to comply with allocated carbon budgets will require remedial action and may result in
penalties.
A particular concern is that government agencies must review and may amend existing administrative decisions—including
environmental authorisations, atmospheric emissions licenses, and mining rights—to ensure climate change risks are
considered and to give effect to the Climate Change Act's objectives. Before amending such approvals, authorities must provide
notice and opportunity for representations, but the Climate Change Act provides grounds for material changes to existing
operational approvals. Third parties such as NGOs may seek to compel these reviews. The proposed amendments to existing
approvals may have material implications on our business and operations and may create significant investment uncertainty.
Permitting and Appeals Delays
The National Appeal Regulations, 2025 introduced a new category of complex appeals under NEMA and related
environmental laws. The regulations allow appeal administrators to appoint advisory appeal panels without specifying
timeframes, creating potential for appeals to remain unresolved for extended periods. These delays may hinder project
timelines, prolong permitting uncertainty and increase operational and compliance risks, which could materially impact our ability
to execute projects as planned, delay investment decisions and adversely affect our business, operating results and financial
condition.
Tailings management
For discussion of TSF-specific environmental and safety regulations, see "— Compliance with tailings management
requirements and standards, and potential liabilities in the event of a failure to timely comply or an incident involving a TSF,
could adversely impact our financial condition, our operational results and our reputation."
Australia
In Queensland, our Eva Copper Project operations are subject to the Environmental Protection Act 1994 (Qld) (the
"Queensland EP Act") and Environmental Protection Regulations 2019 governing Environmental Authorities ("EAs") for
environmentally relevant activities ("ERAs"), the Commonwealth Environment Protection and Biodiversity Conservation Act
1999 ("EPBC Act") protecting matters of national environmental significance ("MNES"), and the National Greenhouse and
Energy Reporting Act 2007 ("NGER Act") establishing mandatory GHG and energy reporting frameworks. See Item 4:
"Information on the Company – Business Overview – Regulation – Laws and Regulations Pertaining to Environmental
Protection – Australia" for detailed discussion of the regulatory framework.
The Eva Copper Project currently holds an EA and is pursuing further amendments expected to conclude in 2026. While
self-assessments indicate the project is unlikely to significantly impact MNES under the EPBC Act, the risk of not having
obtained Commonwealth approval cannot be entirely eliminated. Future project changes may require EPBC Act referrals,
creating potential approval delays or conditions.
The NGER Act requires facilities exceeding specified thresholds to register and report annually on GHG emissions, energy
production and consumption. Non-compliance risks include enforcement action by the Clean Energy Regulator, civil penalties,
public enforcement notices, audit findings, regulator scrutiny and reputational damage from inaccurate or incomplete public
reporting. The Safeguard Mechanism applies additional obligations to facilities with scope 1 emissions exceeding 100,000
tonnes of carbon dioxide equivalent ("CO2-e") annually, requiring emissions to remain within declining baselines consistent with
Australia's net zero trajectory (43% below 2005 levels by 2030, 62-70% by 2035, net zero by 2050). The Eva Copper Project's
predicted emissions may trigger Safeguard Mechanism obligations, potentially requiring emission reduction measures or
purchase of carbon credits.
Under the Queensland EP Act and the Mineral and Energy Resources (Financial Provisioning) Act 2018 (the "MERFP
Act"), we cannot conduct resource activities unless an Estimated Rehabilitation Cost ("ERC") decision is in effect and we have
provided financial security through contributions to the scheme fund or sureties. Revised ERC applications must be prepared
and approved before commencing further construction and mining activities, creating potential for delays or increased financial
provision requirements as the project advances.
Sustainability-related disclosures and claims are subject to prohibitions against misleading and deceptive conduct under
the Australian Corporations Act 2001 (Cth) ("Corporations Act") and the Australian Securities and Investments Commission Act
2001 (Cth). The Australian Securities and Investments Commission ("ASIC") expects sustainability claims to be factually
accurate, based on reasonable grounds, supported by verifiable evidence, and reflective of actual practices. Misleading claims
may expose us and our officers to enforcement action, reputational damage and stakeholder litigation. We are also subject to
the Australian Sustainability Reporting Standards effective as of January 2025—see "— Compliance with emerging climate
change regulations could result in significant costs for us - Australia."
Papua New Guinea
Our PNG operations are subject to the PNG Environment Act 2000 ("PNG Environment Act") and related regulations
governing discharges and requiring Environment Permits ("EPs") for prescribed activities. An Environmental Impact Statement
("EIS") is required for activities likely to have significant adverse environmental impact, and the Environment Minister's approval
in principle is required before the Conservation and Environment Protection Authority ("CEPA") may grant a Level 3 EP.
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The Wafi-Golpu Project received its EP on 18 December 2020, including conditions relating to DSTP. Should we breach
any obligations under our EP or the PNG Environment Act, our EP could be suspended or cancelled, or we could be subject to
fines or other sanctions, which could have a material adverse effect on our results of operations and financial condition.
PNG is undertaking a comprehensive mining regime review that includes development of a Biodiversity Offsets Policy
(anticipating mandatory biodiversity offset payments) and a National Oceans Policy. These policy developments and potential
legislative changes create uncertainty regarding future compliance requirements and costs. See Item 4: "Information on the
Company – Business Overview – Regulation – Laws and Regulations pertaining to Environmental Protection – Papua New
Guinea" for detailed discussion of the regulatory framework.
General
Compliance with existing or new environmental legislation, which increases the burden of compliance or the penalties for
non-compliance, may cause us to incur significant costs. Failure to comply with environmental legislation and the conditions of
our mining rights in any jurisdiction in which we operate may result in fines, penalties, reputational damage, loss of existing
mining rights, or inability to acquire new rights to mine, each potentially having a material adverse effect on our business,
operating results and financial condition.
The socio-economic landscape in the regions in which we operate may have an adverse effect on our operations and
profits
We have operations in South Africa, Australia and PNG. As a result, changes to or instability in the social, economic or
political environment in any of these countries or in countries proximate to them could affect an investment in us. Without
limitation, political risks may include the following: political instability and terrorism; nationalisation and resource nationalism;
change in legislative, regulatory or fiscal frameworks; renegotiation or nullification of existing contracts, leases, permits or other
agreements; restrictions on repatriation of earnings or capital; changes in laws and policy; and socio-economic risks including
civil unrest and criminality. The impact of future long-term health related issues may heighten social tensions and demands, as
individuals look to the mining industry for job creation opportunities and other resources and benefits.
The African National Congress (“ANC”) has been the governing party in South Africa since 1994. After a national election
in 2024, the ANC was unable to secure an outright majority for the first time and entered into a coalition government with various
other national parties. This coalition government creates increased policy uncertainty and potential for political instability, which
could adversely impact the socio-economic framework in South Africa and thus on our operating results and financial condition.
Changes in the political landscape may result in shifts in mining policy, taxation, labour regulation, or other legislative and
regulatory frameworks affecting our operations.
In Papua New Guinea, the government of Prime Minister James Marape has advocated a policy of "Take Back PNG" since
2019, intended to increase the PNG Government’s share of the proceeds from mining, enhance landholder and provincial
government equity participation in mining projects and promote direct involvement in mining and exploration by PNG
Government-owned enterprises. This policy has witnessed the presentation of various proposed revisions to the mining regime
which (if introduced and applied to our operations and projects) would have a materially adverse impact.
In 2025, PNG experienced political volatility in the form of motions of no-confidence against the Prime Minister, however
these leadership challenges failed and PNG parliamentary rules prescribe no further such motions are permissible until after the
next election. Localised unrest and breakdowns of law and order, economic challenges and shortages of foreign currency are
ongoing.
It is difficult to predict the future political, social and economic environment in these countries, or any other country in which
we operate save to state that any social, economic or political changes or instability may directly impact Harmony, adversely
affecting the general business environment and our business, results of operations and financial condition. For discussion of
restrictions on movement of funds and capital deployment, see "— Our financial flexibility could be constrained by the Exchange
Control Regulations of the countries in which we operate".
Given the nature of mining and the type of mines we operate, we face a material risk of liability, delays and increased
cash costs of production from environmental and industrial accidents and pollution compliance breaches
The business of gold mining involves significant risks and hazards, including environmental hazards and industrial
accidents. In particular, hazards associated with underground mining include:
•rock bursts;
•seismic events;
•underground fires;
•cave-ins or fall-of-ground;
•discharges of gases and toxic chemicals;
•release of radioactive hazards;
•flooding or droughts;
•mining of pillars (integrity of shaft support structures may be compromised and cause increased seismicity);
•processing plant fire and explosion;
•critical equipment failures;
•inability to access methane filled shafts for rehabilitation;
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•accidents and loss-of-life incidents; and
•other conditions resulting from drilling, blasting and the removal and processing of material from a deep-level mine.
Hazards associated with opencast mining (also known as open-pit mining) include:
•flooding of the open-pit;
•collapse of open-pit walls or slope failures;
•processing plant fire and explosion;
•accidents associated with operating large open-pit and rock transportation equipment;
•accidents associated with preparing and igniting of large-scale open-pit blasting operations; and
•major equipment failures.
Hazards associated with construction and operation of waste rock dumps and TSFs include:
•accidents associated with operating a waste dump and rock transportation;
•production disruptions caused by natural phenomena, such as floods and droughts and weather conditions,
potentially exacerbated by climate change;
• dam, wall or slope failures; and
•contamination of ground or surface water.
We are at risk from any or all of these environmental and industrial hazards. In addition, the nature of our mining
operations presents safety risks. Our operations are subject to health and safety regulations, which could impose additional
costs and compliance requirements. We may face claims and liability for breaches, or alleged breaches, of such regulations and
other applicable laws. Any legislative changes relating to financial provision could add to the costs. The occurrence of any of
these events could disrupt production, increase cash costs and, individually or in the aggregate, have a material adverse effect
on our business, results of operations and our financial condition.
Mining companies are increasingly expected to provide benefits to affected communities; failure to comply with, and/or
go beyond, our legal obligations could result in lawsuits, additional operational costs, investor divestment and impact
our “social license to operate”, which could adversely impact our business, operating results and financial condition:
we are finding increasing expectations on our business to provide social investment beyond our legal obligations,
especially as communities demand services and basic infrastructure from companies such as Harmony (where gaps in
local government services are perceived or experienced)
As a result of public concern about the perceived ill effects of economic globalisation, businesses in general and large
international companies such as our company, in particular, face increasing public scrutiny of their activities.
Like other mining companies, we are under pressure to demonstrate that while we seek a satisfactory return on investment
for shareholders, other stakeholders including employees, contractors, regulators, communities surrounding the operations and
the countries in which we operate, also seek to benefit from our commercial activities. Such pressures tend to be particularly
focused on companies whose activities are perceived to generate significant revenues and/or have a high impact on the social
and physical environment.
Stakeholder pressure takes many forms, including the loss of license to operate, lawsuits and investor withdrawal. The
potential consequences of these pressures include reputational damage and increased social spending obligations. There is
also increasing action by members of the general financial and investment communities, such as asset managers, sovereign
wealth funds, public pension funds, universities and other groups, to promote improvements in ESG performance by us and
others.
Existing and proposed mining operations are often located at or near existing towns and villages and other infrastructure,
or natural water courses. The impacts of dust generation, waste storage, water quality or shortages may be immediate and
directly adverse to those communities; poor environmental management practices, in particular, adverse changes in the supply
or quality of water can result in community protest, regulatory sanctions or ultimately in the withdrawal of community and
government support. While mining operations are intended to be designed to mitigate the impact on such communities and the
environment, there can be no assurance that they will do so, and the occurrence of any of these events could disrupt
production, increase cash costs and, individually or in the aggregate, have a material adverse effect on our business, results of
operations and our financial condition.
Australia
Mining in Australia is subject to the Native Title Act 1993 (Cth) (the “Native Title Act”). Any "future act" on land or waters
that will affect native title rights and cultural heritage interests is subject to native title processes intended to protect such rights
and interests through a right to negotiate enabling affected parties to reach agreement on the terms of consent concerning the
proposed future acts, including monetary compensation, employment and training, contracting opportunities and cultural
heritage. These arrangements are captured in Indigenous Land Use Agreements, which are then registered with the National
Native Title Tribunal. Changes to native title legislation, evolving interpretations of native title rights, or failure to maintain positive
relationships with native title holders could result in challenges to our agreements, delays in obtaining necessary consents for
future mining activities, increased costs, or restrictions on our ability to conduct operations.
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Papua New Guinea
There is no native title or similar regime in place in PNG, however the majority of land is held under customary ownership.
We are required under the PNG Mining Act and PNG Environment Act to pay landholders compensation for any loss or damage
sustained by them arising from our exploration or mining activities. In certain prescribed instances, the quantum of these
payments is regulated, but otherwise is negotiated (with determination by a mine warden in the event of disagreement).
In addition, it is practice under the PNG mining regime for mining lease and special mining lease holders to enter into a
negotiated Memorandum of Agreement (“MOA"), and also referred to as a Community Development Agreement ("CDA") with
the PNG Government, the affected provincial and local level governments, the affected landholder(s) and other stakeholder
organisations regarding the sharing of benefits derived from the mining operations. These shared benefits generally include a
participation in royalties payable by the tenement holders to the PNG Government but may further extend to local infrastructure
projects and other social performance objectives.
Disruptions to operations or delays in projects attributable to a lack of community support or community actions can
translate directly into a loss of production and increase in operational costs, a decrease in the value of a project or an inability to
bring a project to, or maintain, production. For example, our PNG operations have on occasion been disrupted by the blockading
of access routes by landholders and occupants of the land the subject of such operations. These disruptions arise from a range
of operational and non-operational grievances, including non-distribution by the PNG Government to local communities of mine-
derived royalties and other benefits, inter-community land ownership disputes, unhappiness with local or regional infrastructure
or services delivery, and local business rivalries regarding the provision of goods and services to the operations.
The cost of implementing measures to support sustainable development could increase capital expenditure and operating
costs and therefore adversely impact our reputation, business, operational results and financial condition.
See "Integrated Annual Report for the 20-F 2025 – Social stewardship – Empowering communities" on pages 166 to 173
and "Harmony – Stakeholder engagement” on pages 29 to 34.
Compliance with emerging climate change regulations could result in significant costs for us
Growing global recognition of the GHG emissions play in climate change has driven governments to introduce regulations
requiring companies to disclose and reduce their emissions. Non-compliance increasingly carries financial penalties, carbon
taxes, and reputational consequences. The introduction of IFRS S2 adds further complexity, requiring transparent reporting of
material climate risks, opportunities, and Scope 1, 2, and 3 emissions, all of which may increase our compliance burden and
operational costs.
Reporting GHG Emissions
In South Africa, the National Greenhouse Gas Emission Reporting Regulations require entities to register any operations
that involve fuel combustion activities related to mining and quarrying that exceed a thermal capacity of 10MW, along with
certain other listed activities. We must report GHG emissions and activity data annually for relevant operations by 31 March of
each year in line with the Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by
Industry ("Technical Guidelines") which align with the methodologies from the Intergovernmental Panel on Climate Change
(“IPCC”). These Technical Guidelines support the South African National Greenhouse Gas Regulations issued under National
Environmental Management: Air Quality Act, 39 of 2004 ("NEMAQA") and outline the reporting methodology specified in the Air
Quality Act.
In Papua New Guinea, there is currently no mandatory national GHG reporting framework.
In Australia, we are not currently required to report under the National Greenhouse and Energy Reporting (NGER)
Scheme, but future obligations are expected as our operations expand, particularly with the Eva Copper Project and the CSA
mine that forms part of our acquisition of MAC Copper Limited ("MAC"). Once thresholds are met, annual reporting of GHG
emissions and energy use will be required in line with the NGER Act and IPCC methodologies.
GHG Emissions Reductions
Our operations generate GHG emissions both directly (Scope 1), through on-site fuel combustion and industrial processes,
and indirectly (Scope 2) through the consumption of electricity from external utilities. While Scope 2 emissions are classified as
indirect, they remain within our operational control through decisions around energy sourcing, efficiency, and supplier
engagement and consequently are still attributable to our operations. In contrast, Scope 3 emissions which arise from activities
across our value chain such as transportation, procurement, and downstream processing are largely outside our direct control
but still represent a significant portion of our total emissions footprint.
South Africa, Australia and PNG have ratified key international climate agreements, including the Paris Agreement,
adopted at the UN Climate Conference in December 2015. Under this treaty, member countries must outline how and when they
plan to reduce GHG emissions through nationally determined contributions ("NDC") tailored to their national circumstances:
•South Africa’s NDC aims for GHG emissions to peak between 2020 and 2025, plateau from 2025 to 2035 and thereafter
decline from 2036 onwards.
•South Africa’s published a draft updated NDC in 2025 which introduces a new range of 320–380 MtCO₂e. The draft
supports a just transition to net zero CO₂ emissions by 2050, with plans for 36 GW of renewable energy by 2035, green
industrialisation, and structural economic transformation.
•Australia has committed to reaching net zero emissions by 2050 and, in 2022,set a 2030 target to reduce emissions by
43% from 2005 levels. In September 2025, Australia announced a further target of 62-70% below 2005 levels by 2035.
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•PNG’s GHG emissions have historically been minimal. However, its NDC contemplates that economic growth will increase
fuel use. PNG plans to cut fossil fuel emissions in the electricity sector and transition to 100% renewable energy by 2030,
subject to procuring necessary funding.
To achieve its commitments, the South African Government is implementing legislation aimed at achieving a lower carbon
economy. These measures include the Carbon Tax Act, 15 of 2019 (the “Carbon Tax Act”) and the Climate Change Act.
In terms of the Carbon Tax Act, any entity conducting activities in South Africa that produce GHG emissions above defined
thresholds is liable for carbon tax. The tax rate is currently R309 per tonne of GHG emissions generated by burning fossil fuels,
unintentionally emitting GHGs during the extraction, processing, delivery and burning of fossil fuels for energy production,
including from industrial plant and pipelines, and conducting manufacturing processes that chemically and physically transform
materials.
Authorities determine taxable GHG emissions by multiplying the relevant GHG emission factor (set out in Schedule 1 of the
Carbon Tax Act) by the quantity of fuel combusted or raw material used or produced, expressed in tonnes of CO2-equivalent.
The statutory carbon tax rate increases annually in accordance with the annual tax rates published in the Taxation Laws
Amendment Act, 2022 to reach R462 in 2030.
The Climate Change Act, key provisions of which have yet to come into force, will impose “carbon budgets” on entities
incertain high-emitting industries, such as mining. The carbon budgets are intended to operate as statutory limits for CO2
emissions. It is expected that the Carbon Tax Act will be aligned with the Climate Change Act, through higher rates of carbon tax
in respect of emissions exceeding the applicable carbon budget. Moreover, it is unclear to what extent we will be able to make
use of allowances that are currently embedded in the carbon tax framework under the Carbon Tax Act.
To reduce the significant tax burden calculated by multiplying total GHG by R308, the Carbon Tax Act currently allows for
various “allowances” that can reduce the payable carbon tax by up to 95%. These include:
• allowance for fossil fuel combustion;
•allowance for industrial process emissions;
•allowance in respect of fugitive emissions;
•a trade exposure allowance;
•a performance allowance;
•a carbon budget allowance; and
•an offset allowance.
These allowances will likely be reduced over time.
These allowances currently reduce the effective carbon tax rate to between R10 and R76 per tonne of GHG. Pursuant to
section 19 of the Carbon Tax Act, the South African Minister of Finance ("Minister of Finance") must make regulations
regarding: the sub sector GHG emissions intensity benchmark required in order to calculate the performance allowance, the
manner in which the trade exposure allowance must be determined and carbon offsets which have all now been promulgated.
The South African National Treasury published amendments to the National Greenhouse Gas Emission Reporting Regulations
in May 2024, extending the eligibility of carbon of offset projects to 31 December 2025, to align with the Phase 1 carbon tax
period extension and confirming that companies can continue to use carbon credits issued by these projects to reduce their
carbon tax liability
We have provisionally estimated our carbon tax liability to 2030 and beyond. However, the full impact of the Carbon Tax Act
remains uncertain. Internally, we have aligned our South African carbon price with the official tax rate. In the short term we may
face pass-through costs from suppliers due to increased fuel prices.
Alongside the carbon tax, a carbon fuel levy was introduced under the Customs and Excise Act 91 of 1964 ("Customs and
Excise Tax"), as part of the national fuel levy regime. The carbon tax on liquid fuels is applied at the fuel source and is expected
to raise fuel prices by R0.10/liter for petrol and R0.09/liter for diesel, which will increase our operational expenses.
Until 31 December 2025, the carbon tax will remain a relatively low cost. However, we expect the allowances to be
reduced and the tax rates to increase thereafter. It is also anticipated that carbon taxes will apply to electricity generated from
fossil fuels. The cost impact of carbon tax on electricity usage could range from R100m to R600m from 2026 to 2030. Although
these rates as well as the longer-term assumptions have been built into our business plans, with a 300% absolute increase in
the price of carbon over the next five years, we believe it will put significant pressure on our business.
Electricity-related GHG emissions represent our largest emission source. Electricity accounts for approximately 15% of our
cash costs in South Africa. While cost management is clearly a strategic issue for us, the delivery of a stable and reliable energy
supply is even more critical due to its direct impact on both production and health and safety. Additional energy taxes and
regulations (such as emission measurement and reduction, audit processes and human resource costs) will significantly affect
our operations. We have initiated several renewable energy projects to supplement our energy supply needs and reduce our
reliance on electricity supplied by Eskom which is predominantly generated by coal-fired power stations.
As stated above, it is anticipated that numerous regulations will be promulgated in terms of the Climate Change Act.
However, the broad scope and evolving nature of South Africa’s climate policy make it difficult to assess their full impact. Such
regulatory initiatives and related costs could have a material adverse effect on the business, operating results and financial
condition.
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Climate Change legislation and policy
South Africa
As mentioned above, the Carbon Tax Act and Climate Change Act are the primary statutes regulating GHG emissions
reduction and climate change resilience.
Certain jurisdictions (like the EU) plan to implement carbon border adjustment mechanisms ("CBAMs"), effectively import
levies based on the embedded GHG emissions on goods imported into their territory. Currently, this does not apply to precious
metals. However, these carbon border taxes could be extended to other products (including precious metals) in the future. While
the taxes would be imposed on the importer and may be reduced to reflect carbon taxes already paid in South Africa, they could
nevertheless impact our competitiveness in these markets and may impose reporting and disclosure obligations regarding GHG
emissions generated in producing products. We continue to monitor both the jurisdictions imposing CBAMs as well as the
industries to which they apply.
Australia
In 2022, Australia passed the Climate Change Act 2022 (Cth) which enacts the 2030 and 2050 emission reduction targets
in legislation. The Australian government has also progressed reforms in a number of sectors to align with its climate targets,
including amendments to the Safeguard Mechanism through the Safeguard Mechanism (Crediting) Amendment Act 2023 (Cth),
the primary tool to limit emissions from large emitting facilities. See “– We are subject to extensive environmental regulations in
the countries in which we operate, and compliance costs, regulatory changes, and potential non-compliance could have a
material adverse effect on our business, operating results and financial condition – Australia”.
The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (Cth) introduced a
mandatory annual sustainability report for certain entities, to be prepared alongside financial reports under the Corporations Act
2001 (Cth). The sustainability report must comply with the Australian Sustainability Reporting Standard AASB S2 Climate-related
Disclosures, which is substantially aligned with the IFRS S2 standard. These disclosures include governance, strategy, risk
management, and metrics and targets related to climate-related risks and opportunities.
The sustainability report is subject to phased assurance requirements, transitioning from limited to reasonable assurance
over a four-year period, as outlined in the Auditing and Assurance Standards Board standards ASSA 5000 and ASSA 5010. The
report must be lodged with ASIC and include a directors' declaration, with disclosures made on a factual and good-faith basis.
Materially inaccurate or unsubstantiated reporting and other external disclosures may expose the company and its officers to
regulatory action under Australian law, including enforcement by ASIC.
The NGER Act establishes a mandatory framework for reporting GHG emissions, energy production and energy
consumption in Australia. Thresholds apply at facility-level and corporate group level. Facilities or controlling corporations that
exceed specified thresholds must register and report annually to the Australian Clean Energy Regulator. These disclosures
underpin Australia's climate policy, international reporting obligations, and the Safeguard Mechanism, which imposes emissions
limits on large facilities. Key risks associated with non-compliance with the NGER Act include enforcement action by the
Australian Clean Energy Regulator, civil penalties (including fines and public enforcement notices), adverse audit findings and
regulator scrutiny and reputational risk associated with inaccurate or incomplete reporting noting that NGER data is publicly
disclosed if above the publication threshold (currently 50,000 tCO2-e).
Such regulatory initiatives and related costs, while they are not expected to have significant impact in the near term, could
have a material adverse effect on the business, operating results and financial condition in the future.
Papua New Guinea
In PNG, the PNG Climate Change (Management) Act 2015 provides the regulatory framework with respect to climate
change in PNG, and establishes PNG’s Climate Change and Development Authority as the coordinating entity for climate
change related policies and actions across PNG and the designated National Authority under the UN Framework Convention on
Climate Change. Implementation actions under this policy to date have been very limited, however in January 2021 the PNG
Climate Change Fees and Charges came into effect which include taxes on carbon in fuel products and a Green Fee (a
departure tax for non-residents leaving PNG), and in August 2022 a draft PNG Climate Change (Management) (Carbon
Markets) Regulation was circulated for discussion. Future implications of the climate change policy on our operations in PNG
are still being established and while they are not expected to have significant impact in the near term, they may potentially have
a material adverse effect on our business, operating results and financial condition in the future.
Additionally, a number of regulators are adopting or considering new environmental disclosure rules. For example, in
March 2024, the SEC adopted final rules under SEC Release No.34-99678, The Enhancement and Standardisation of Climate-
Related Disclosures for Investors (the “SEC Climate Disclosure Rules”), which will require registrants to provide certain
climate-related information in their registration statements and annual reports. While the SEC stayed the effectiveness of the
SEC Climate Disclosure Rules in April 2024 and in March 2025 announced it was ending its defence of the rules in pending
litigation, meaning it is uncertain if or when compliance will be mandated. However, a number of other jurisdictions are also
mandating disclosure of climate-related risks and effects. These recently enacted and proposed regulations may impose
meaningful costs and demand significant attention from management, all of which could affect our business and our results of
operations.
See "Integrated Annual Report for the 20-F 2025 – Environment stewardship – Building a lasting positive legacy", and
"Environment stewardship – Climate and energy management” on pages 88 to 90 and 98 to 104 for disclosure regarding our
GHG emissions.
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The cost of occupational health care services and the potential liabilities related to occupational health diseases may
increase in future and may be substantial
Our operations are subject to health and safety legislation and regulations binding on us, which could impose significant
cost burdens.
South Africa
In South Africa, the MHSA imposes various duties on mines and grants the Mine Health and Safety Inspectorate ("MHSI")
broad powers to, among others, close mines which are unsafe or hazardous to the health of persons and order corrective action
on health and safety matters.
There is a risk that the cost of providing measures prescribed by the MHSA and Regulations for the protections of health
and safety at mines, including complying with the health services, complying with applicable regulations, including the
Compensation for Occupational Injuries and Diseases Act, 130 of 1993 ("COIDA"), and the Occupational Diseases in Mines and
Works Act, 78 of 1973 ("ODMWA"), could increase in future, depending on changes to underlying legislation, legal claims and
the profile of our employees. This increased cost, should it transpire, could be substantial, but is currently indeterminate.
Our employees may be at risk of developing occupational health diseases. Those working underground are exposed to
some level of respirable crystalline silica and may be at risk of developing occupational lung diseases, including silicosis, a
progressive and potentially disabling lung condition resulting from prolonged inhalation of silica dust.
The Occupational Lung Disease Working Group (“Working Group”), was formed in fiscal 2014 to address issues relating
to compensation and medical care for occupational lung disease in the South African gold mining industry. The Working Group,
made up of various gold mining companies has had extensive engagements with a wide range of stakeholders, including
government, organised labour and the legal representatives of claimants.
We have been subject to numerous claims, including class actions or similar group claims relating to silicosis and other
occupational lung diseases, and could be subject to similar claims in the future. For instance, in May 2016, the High Court of
South Africa (Gauteng Division) certified a class action by current and former mine workers against gold mining companies in
South Africa, including us.
The matter was subsequently settled in May 2018. The terms of the settlement are available on our website. Accordingly,
the Tshiamiso Trust was created for purposes of administering the settlement funds. On 31 January 2020, the Working Group
commenced the payment of their quarterly administration and benefit contributions to the Tshiamiso Trust to enable the trustees
to settle benefits of eligible claimants. See Item 8: “Financial Information – Consolidated Statements and Other Financial
Information – Legal Proceedings” and "Integrated Annual Report for the 20-F 2025 – Social stewardship – Holistic health and
wellness” on pages 141 to 153 for further information. See note 25 “Other Provisions – Provision for silicosis settlement” to our
consolidated financial statements set forth beginning on page F-1.
At 30 June 2025 the provision in our statement of financial position was R261 million. We believe that this remains a
reasonable estimate of our share of the estimated cost in relation to the Working Group of the settlement of the class action
claims and related costs. The final settlement costs and related expenditure may, however, be higher than the recorded
provision depending on various factors, such as, among other things, differences in the number and profile of eligible claimants
actually compensated compared to current estimates.
Australia
Operations in the State of Queensland, where our Eva Copper Project is situated, are subject to similar duties and powers,
including under the following laws and regulations: the MQSH Act (as recently amended by the RSHLA Act) and the MQSH
Regulations.
We are not aware of any occupational health claims, including class actions or similar group claims, presently being made
in relation to any of our operations in Queensland, but as a mining operator there is a risk we could be subject to such claims in
the future. There is also a risk that the cost of providing health services, complying with applicable regulations, and
implementing various programs could increase in future, depending on changes to underlying legislation, legal claims and the
profile of our employees. This increased cost, should it transpire, could be substantial, but is currently indeterminate.
Papua New Guinea
Operations in PNG are subject to similar duties and powers, including under the following laws and regulations: the PNG
Mining (Safety) Act, the PNG Mining Safety Regulation 1935 (updated in 2006), the PNG Mining Act, the PNG Industrial Safety,
Health and Welfare Act 1961, the PNG Industrial Safety, Health and Welfare Regulations 1965 and the PNG Environment Act.
In June 2021, the PNG Ministry of Mining released the draft Mine & Works (Safety & Health) Bill 2021 for industry and
public consideration, which process is presently still under way. If enacted, the Bill will repeal and replace the PNG Mining
(Safety) Act.
We are not aware of any occupational health claims, including class actions or similar group claims, presently being made
in relation to any of our operations in PNG, but as a mining operator there is a risk we could be subject to such claims in the
future. There is also a risk that the cost of providing health services, complying with applicable regulations, and implementing
various programs could increase in future, depending on changes to underlying legislation, legal claims and the profile of our
employees. This increased cost, should it transpire, could be substantial, but is currently indeterminate.
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If we or any of our subsidiaries in South Africa, Australia or PNG were to face a significant number of additional such
claims and the claims were suitably established against it, the payments of compensation to the claimants could have a material
adverse effect on our results of operations and financial condition. In addition, we may incur significant additional costs,
including costs relating to the payment of fees, levies or other contributions in respect of compensatory or other funds
established (if any), and expenditures arising out of our efforts to resolve any such claims or other potential actions, any of which
could have a material adverse effect on our results of operations and financial condition.
Our operations are subject to water use and other regulatory licenses, which could impose significant compliance
costs and operational constraints
South Africa
Under the South African National Water Act, 36 of 1998 (“NWA”) a person may only undertake a “water use” subject to a
water use license, a general authorisation or in terms of a prior existing water use, such as a water permit issued under the
NWA’s predecessor, Water Act, 54 of 1954 (“Water Act”). Persons undertaking water use under a general authorisation or prior
existing water use must register this use with the Department of Water and Sanitation ("DWS").
Our South African operations are predominantly regulated under water permits issued pursuant to the Water Act.
Notwithstanding this, we have elected to convert all prior existing water uses into water use licenses under the NWA to ensure
these operations are carried out in accordance with current best practice and water quality standards. Submissions were made
as early as 2003 and we have been working closely with the regional directors in the review process.
Some operations have received draft licenses for review and comment before finalisation by the regional directors at the
DWS. Kusasalethu, Moab, Mponeng, Mine Waste Solutions, Kareerand and Kalgold received their final water use licenses.
These licenses, however, contain conditions that are impossible to meet and, as a result, we have applied to amend the relevant
conditions.
An appeal has been filed by a third party against the Mponeng water use license, more than two years after the license
was granted. We are of the view that the appellant does not have the necessary standing to bring such an appeal and that the
appeal is vexatious. While the appeal automatically suspends our water use licenses, the suspension has been uplifted by the
Minister of Water and Sanitation. The appeal are set to be heard in October 2025 and in the meantime we are in discussions
regarding a possible settlement.
When future water licenses are issued, we may be required to implement alternate water management measures that
result in significant cost implications. We intend to work collaboratively with the regional departments and catchment
management agencies to reach mutually sustainable outcomes. Failure to obtain licenses on favourable terms could have a
material adverse effect on our results of operations and financial condition.
Failing to comply with the conditions of a water use license may result in the competent authority issuing a compliance
notice or directive instructing us to take measures to correct the non-compliance and, in some instances, to cease operations
pending the resolution of the non-compliance. Failing to comply with a water use license is an offence that may result in
prosecution. Upon conviction, the court may impose fines, damages, director and employee liability and imprisonment, which
could have a material adverse effect on our business, operating results and financial condition
Additionally, the NWA imposes a duty of care on us to take reasonable measures to prevent pollution or contamination of
water resources. The nature and extent of the reasonable measures is determined on a case by case basis. If we fail to
implement reasonable measures the competent authority may issue a directive instructing us to implement certain measures
within a prescribed period. Failing to comply with a directive is an offence and may result in prosecution and the penalties
contemplated above. Alternatively, the competent authority could implement the necessary measures using its own methods and
resources, and recoup the costs from us.
Any such environmental levy could have a material effect on our business, operating results and financial condition. In addition,
the occurrence of Acid Mine Drainage at any of our mines could affect our ability to comply with our water use license
requirements.
Obligations to pump and treat extraneous water must be addressed with our final closure plans. We are responsible for
these liabilities until a closure certificate is issued pursuant to the MPRDA and potentially thereafter under the NEMA. This
liability is discussed in more details in Item 4: “Information on the Company – Business Overview – Regulation – Law and
Regulations Pertaining to Environmental Protections in South Africa – NEMA”. Refer to "– Risks associated with pumping water
inflows from closed mines adjacent to our operations, including related closure liabilities, could adversely affect our operational
results".
Australia
Under the conditions of the mining leases for the Eva Copper Project, Eva Copper Mine Pty Limited is permitted to
construct groundwater bores within the area subject to the mining leases.
To authorise the take of groundwater from a bore/borefield, a water license is required only if the bore is in an area where
groundwater is managed (i.e. within an identified groundwater unit of a relevant water plan). This has been confirmed by the
Queensland Government as not applicable to the Eva Copper target groundwater sources.
Should we breach any obligations in complying with the provisions of any permit or license or any laws and regulations
under which they were issued, our permit or license could be suspended or cancelled, or we could be subject to fines or other
sanction. Any such suspension, cancellation or sanction could have a material adverse effect on our results of operations and
financial condition.
Papua New Guinea
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In PNG, a single, project-comprehensive EP is issued by the Managing Director of CEPA under the provisions of the PNG
Environment Act. The permit includes provisions for both water extraction and treated waste water discharge. An annual
administration fee is payable for this permit.
Should we breach any obligations in complying with the provisions of our EP or the PNG Environment Act, our permit could
be suspended or cancelled, or we could be subject to fines or other sanction. Any such suspension, cancellation or sanction
could have a material adverse effect on our results of operations and financial condition.
See "Integrated Annual Report for the 20-F 2025 – Environment stewardship – Water stewardship” on pages 105 to 109.
Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to
timely comply or an incident involving a TSF, could adversely impact our financial condition, our operational results
and our reputation
Mining companies face inherent risks in their management of uneconomical milled ore residue and water, known as
tailings, which includes the operation of TSFs and other tailings disposal systems, like DSTP. Tailings storage facilities are
engineered structures built for the containment of tailings, and DSTP facilities are engineered pipeline and mixing infrastructure
for the placement of tailings in the sea.
We presently operate only TSFs, but DSTP is the approved tailings management system for the proposed Wafi-Golpu
Project. The proposed use of DSTP facilities at the Wafi-Golpu Project may expose us to reputational risk or litigation by way of
class action or individual claims, which (if successful) could have a material adverse impact on the Wafi-Golpu Project.
In South Africa, TSFs are subject to stringent regulatory oversight due to their potential environmental and safety risks. The
DWS mandates that all TSFs meeting specific criteria (such as a minimum height of five meters and a storage capacity
exceeding 50,000 cubic meters) be registered as "dams with a safety risk" under the NWA. Failure to comply with registration
requirements can lead to legal and operational consequences which could have a material adverse effect on our business,
operating results and financial condition.
Additionally, the DMPR enforces the South African Code of Practice for Mine Residue Deposits, or SANS 10286, which
outlines best practices for the design, operation and closure of TSFs. This code emphasises principles such as continual
management, minimisation of waste and the precautionary approach to mitigate risks associated with TSFs.
Recent incidents including the 2022 Jagersfontein tailings dam collapse (which is not a project owned or operated by
Harmony) have underscored the critical importance of robust TSF management. In response, the DWS has intensified its
regulatory efforts, conducting inspections and collaborating with the DMPR to ensure compliance and prevent future disasters.
Tailings dam failures at various operations globally have prompted increased regulatory scrutiny across the industry. This may
result in amended or new environmental, social, health and safety legislative frameworks. In addition, changes in laws and
regulations may impose more stringent conditions in connection with the construction of tailings dams. Further, we may see
changes in the permitting process of projects, implementation of financial assurance requirements, and increased criminal and
civil liability for companies, officers and contractors.
The use of TSFs exposes us to certain risks, including the failure of a tailings dam due to events such as high rainfall,
overtopping of the dam, piping or seepage failures. The potential occurrence of a dam failure at one of our tailings storage
facilities could lead to the loss of human life and extensive property and environmental damage.
A failure of a TSF would lead to investigations and has the potential to result in prosecutions and/or legal proceedings for
significant amounts of fines and damages. Overall, the failure of a TSF could lead to the need for a large expenditure on
contingencies and on recovering the regions and people affected, extensive and permanent environmental damage and the
payment of penalties, fines or other money damages. The occurrence of any of such risks could have a material adverse effect
on our business, operating results and financial condition.
See "Integrated Annual Report for the 20-F 2025 – Environment stewardship – Tailings management” on pages 110 to 114
for further detail.
We may have exposure to rehabilitate potential groundwater and land pollution, which may include salination, and
radiation contamination that may exist where we have operated or continue to operate; implementation of the financial
provision regulations, 2015 may require us to include provision in our financial statements for rehabilitation
Due to the interconnected nature of mining operations at Doornkop, Kusasalethu, Mponeng, MWS and Moab Khotsong,
any proposed solution for potential flooding and decant risk posed by deep groundwater needs to comprise a regional solution
supported by all mines located in the goldfields and the government in the event of legacy issues. As a result, the DMPR and
affected mining companies are involved in developing a regional mine closure strategy. In view of the status of the Financial
Provision Regulations, 2015, no reliable estimate can be made for any possible obligations or liabilities, which could be material
and have an adverse impact on our financial condition.
See “—Risks Related to ESG - We are subject to extensive environmental regulations in the countries in which we
operate, and compliance costs, regulatory changes, and potential non-compliance could have a material adverse effect on our
business, operating results and financial condition”.
We are implementing the following steps to ensure that funds are available to top up our financial provision, if necessary:
•facilitating concurrent rehabilitation;
•re-purposing infrastructure and mining affected land; and
•accelerating mine closure rehabilitation where operations have reached the end of its geological life.
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Currently, no provision for any potential liability has been made in our financial statements under the Financial Provision
Regulations, 2015. If provision needs to be made, and is substantial, this could have a material adverse effect on our business,
operating results and financial condition.
Compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to our
compliance policies and increases our costs of compliance
Laws, regulations and standards relating to accounting, corporate governance and public disclosure, “conflict minerals”
and “responsible” gold, SEC regulations and other listing regulations applicable to us are subject to change and can create
uncertainty for companies like us. New or changed laws, regulations, codes and standards could lack specificity or be subject to
varying interpretations. Their application in practice may evolve over time as new guidance is provided by regulatory and
governing bodies. This could result in continuing uncertainty on compliance matters and higher costs of compliance as a result
of ongoing revisions to such governance standards.
We are committed to maintaining high standards of corporate governance and public disclosure, and our efforts to comply
with evolving laws, regulations, codes and standards in this regard have resulted in, and are likely to continue to result in,
increased general and administrative expenses, which could have a material adverse effect on our business, operating results
and financial condition.
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Risks Related to Our Corporate and Financing Structure and Strategy
Our inability to maintain effective disclosure controls and procedures, and an effective system of internal control over
financial reporting may have an adverse effect on investors’ confidence in the reliability of our financial statements and
other disclosures
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with IFRS as
issued by the IASB. Disclosure controls and procedures are designed to ensure that information required to be disclosed by a
company in reports that it files or submits under the Exchange Act, is recorded, processed, summarised and reported within the
time periods specified in the rules and forms of the SEC. We have invested in resources to manage the documentation and
assessment of our system of disclosure controls and our internal control over financial reporting. However, a control system, no
matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of
financial reporting, financial statement preparation and other disclosures.
In connection with the preparation of our consolidated financial statements for the year ended 30 June 2025, management
identified material weaknesses in internal control over financial reporting. While these deficiencies did not result in any identified
material misstatements, they represent gaps in our control environment and aggregate to multiple material weaknesses.
These material weaknesses will not be considered remediated until these actions are sufficiently tested and concluded to be
effective. If we are unable to successfully remediate the identified material weaknesses, or experience additional material
weaknesses in the future, investors may lose confidence in the reliability of our financial statements, and/or we could become
subject to SEC investigation, enforcement action, civil monetary penalties, or other sanctions, which could result in significant
costs, reputational damage, and adversely affect our business, share price, and ability to access capital markets. See Item 15:
“Controls and Procedures”.
We may experience problems in identifying, financing and managing new acquisitions or other business combination
transactions and integrating them with our existing operations; we may not have full management control over future
joint venture projects
In order to maintain or expand our operations and reserve base, we have sought, and may continue to seek to enter into
joint ventures or other business combination transactions or to make acquisitions of selected precious metal producing
companies or assets. For example, with effect on 1 October 2020, acquired the remainder of AngloGold’s South African
business, including the Mponeng mine and MWS, in the Mponeng Acquisition. In December 2022, Harmony acquired its Eva
Copper Project in Queensland, Australia. In addition Harmony announced the acquisition of MAC on 27 May 2025, which
became effective on 24 October 2025.
Acquiring new mining operations or entering into other business combination transactions involves a number of risks
including:
•our ability to identify appropriate assets for acquisition and/or to negotiate an acquisition or combination on favourable
terms;
•obtaining the financing necessary to complete future acquisitions;
•difficulties in assimilating the operations of the acquired business;
•the changing regulatory environment as it relates to the Mining Charter (as defined below) and the general policy
uncertainty in South Africa;
•difficulties in maintaining our financial and strategic focus while integrating the acquired business;
•problems in implementing uniform quality, standards, controls, procedures and policies;
•management capacity, and skills to supplement that capacity, to integrate new assets and operations;
•increasing pressures on existing management to oversee an expanding company; and
•to the extent we acquire mining operations or enter into another business combination transaction outside South Africa,
Australia or PNG, encountering difficulties relating to operating in countries in which we have not previously operated.
Any such acquisition or joint venture may change the scale of our business and operations and may expose us to new
geographic, geological, political, social, operating, financial, legal, regulatory and contractual risks. Our ability to make
successful acquisitions and any difficulties or time delays in achieving successful integration of any of such acquisitions could
have a material adverse effect on our business, operating results and financial condition.
In addition, to the extent that we participate in the development of a project through a joint venture or other multi-party
commercial structure, there could be disagreements, legal or otherwise or divergent interests or goals among the parties, which
could jeopardize the success of the project, particularly if we do not have full management control over the joint venture. There
can be no assurance that any joint venture will achieve the results intended and, as such, any joint venture could have a
material adverse effect on our revenues, cash and other operating costs. See Item 5. “Operating and Financial Review and
Prospects - Liquidity and Capital Resources - Cash flows from investing activities”.
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Certain factors may affect our ability to support the carrying value of our property, plant and equipment, and other
assets on our balance sheet, resulting in impairments
We review and test the carrying value of our assets when events or changes in circumstances suggest that this amount
may not be recoverable and impairments may be recorded as a result of testing performed.
Our market capitalisation on any reporting date is calculated on the basis of the price of our shares and ADSs on that date.
Our shares and ADSs may trade in a wide range through the fiscal year depending on the changes in the market, including
trader sentiment on various factors including gold price. Therefore, there may be times where our market capitalisation is greater
than the value of our net assets, or “book value”, and other times when our market capitalisation is less than our book value.
Where our market capitalisation is less than our net asset or book value, this could indicate a potential impairment and we may
be required to record an impairment charge in the relevant period.
At least on an annual basis for goodwill, and when there are indications that impairment of property, plant and equipment
and other non-financial assets may have occurred, estimates of expected future cash flows for each group of assets are
prepared in order to determine the recoverable amounts of each group of assets. These estimates are prepared at the lowest
level at which identifiable cash flows are considered as being independent of the cash flows of other mining assets and
liabilities. Expected future cash flows are inherently uncertain, and could materially change over time. Such cash flows are
significantly affected by reserve and production estimates, together with economic factors such as spot and forward gold prices,
discount rates, currency exchange rates, estimates of costs to produce reserves and future capital expenditures.
As at 30 June 2025, we had substantial amounts of property, plant and equipment and other assets on our consolidated
balance sheet. The impairment charges relating to property, plant and equipment, and other assets recorded in fiscal 2024 was
R2.8 billion and no impairment was recorded for fiscal 2025. If management is required to recognise impairment charges in the
future, this could have a material adverse effect on our results of operations and financial condition.
Our ability to service our debt will depend on our future financial performance and other factors
Our ability to service our debt and maintain compliance with financial covenants depends on our financial performance,
which in turn will be affected by our operating performance as well as by financial and other factors, and in particular the gold
price, certain of which are beyond our control. Various financial and other factors may result in an increase in our indebtedness,
which could adversely affect us in several respects, including:
•limiting our ability to access the capital markets;
•hindering our flexibility to plan for or react to changing market, industry or economic conditions;
•limiting the amount of cash flow available for future operations, acquisitions, dividends, or other uses, making us more
vulnerable to economic or industry downturns, including interest rate increases;
•increasing the risk that we will need to sell assets, possibly on unfavourable terms, to meet payment obligations; or
•increasing the risk that we may not meet the financial covenants contained in our debt agreements or timely make all
required debt payments.
The occurrence of any of these events could adversely affect our results of operations and our financial condition. See “ –
The impact from, and measures taken to address infectious and communicable diseases, such as HIV/AIDS, malaria and
tuberculosis, pose risks to us in terms of productivity and costs and may adversely affect our people, and may impact our
business continuity, operating results, cash flows and financial condition.''
Our ability to service our debt also depends on the amount of our indebtedness.
In May 2022 we entered into a US$400 million sustainability-linked syndicated term and revolving credit facility, a
R2.5 billion sustainability-linked revolving credit facility, as well as a R1.5 billion Green term loan. At 30 June 2025,
US$100 million was drawn against the US$ facility and R176 million was drawn against the Rand facilities. In June 2025 we
entered into a Bridge Facility Agreement to finance the acquisition and related costs for a total amount of US$1.25 billion. At 30
June 2025 no amounts has been drawn against this facility. See Item 5: “Operating and Financial Review and Prospects -
Liquidity and Capital Resources - Cash flows from financing activities” and “- Outstanding Credit Facilities and Other
Borrowings”.
In the near term, we expect to manage our liquidity needs from cash generated by our operations, cash on hand,
committed and unutilised facilities, as well as additional funding opportunities. However, if our cost of debt were to increase or if
we were to encounter difficulties in obtaining financing in the future, our sources of funding may not match our financing needs,
which could have a material adverse effect on our business, operating results and financial condition.
We are subject to the imposition of various regulatory costs, such as mining taxes and royalties, changes to which
may have a material adverse effect on our operations and profits; our operations and financial condition could also be
adversely affected by policies and legislation related to greater state intervention in the mining sector and potentially
the expropriation of mining assets without compensation
With increasing resource nationalism in recent years, governments, communities, non-government organisations and trade
unions in several jurisdictions have sought and, in some cases, have imposed greater participatory imposts on the mining
industry. In South Africa and PNG, draft legislation has been proposed that envisages greater state intervention in the mining
industry, including the revision of existing royalties, the imposition of new taxes, an increase in the government’s holdings in
mining companies and (in South Africa) potentially the expropriation of mining assets without compensation. Such imposts,
whether in the form of taxes, royalties and levies, interference in project management, mandatory social investment
requirements, local content requirements or creeping expropriation, are an increasing feature of the global mining industry and
could materially adversely affect our business, operating results and financial condition.
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In addition, additional financial provision may be required in the future for rehabilitation purposes with restrictions on when
this money may be accessed for rehabilitation. Concurrent rehabilitation needs to be funded by operational budgets without any
recourse to the rehabilitation funds. The Carbon Tax Act provides for several allowances aimed at reducing the overall tax
liability. These allowances are expected to be reduced overtime meaning that if operational measures are not implemented to
reduce GHG emissions, the carbon tax obligations will be higher. These changes in regulation may have a negative impact on
future cash flows and the viability of certain operations resulting from increased cost pressures. See Item 4 "Business Overview
- Land expropriation", "- Base erosion and profit shifting" and "- Renewable energy".
Since 2009, the mining regime in PNG has been the subject of a comprehensive ongoing review involving various PNG
Government agencies. During this time, several draft revisions of the PNG Mining Act have been released for industry and
public its comment - most notably in 2018, 2020 and February 2025 (the most recent draft, the “PNG Draft Mining Bill 2025”).
The PNG Draft Mining Bill 2025 proposes substantial reforms, including empowering PNG to acquire up to 30% equity (with
deferred payments) in mining projects, adjusting royalties to 5% with state equity or 10% without and expanding compensation
mechanisms and environmental protections (e.g. banning riverine tailings requiring stronger mine-closure planning and financial
provisioning). If enacted and applied to our operations and projects in PNG, these revisions could have a material adverse effect
on our business, operating results and financial condition. We continue to engage with the PNG Government and relevant
regulators on these matters, indirectly through the offices of PNG Chamber of Resources and Energy ("PNG CORE"), and
directly with the PNG Mineral Resources Authority ("PNG MRA"), the CEPA and the DMPGM.
PNG’s National Parliament passed the Income Tax Act 2025 (“PNG Income Tax Act”) on 20 March 2025. To become law,
the PNG Income Tax Act must now be certified by the Speaker of Parliament and gazetted; certification and gazettal are
expected later in 2025, ahead of its planned commencement on 1 January 2026. The PNG Income Tax Act does not include
specific provisions for mining capital or exploration expenditure, but provides a transitional carve-out for legacy mining-specific
rules, including special mining capital and exploration expenses. Without clear guidance at this stage, we are uncertain of the
potential future impacts these changes to the regulation may have on taxes for our PNG operations.
The effect of the proposals, measures and developments described above, as well as the imposition of additional
restrictions, obligations, operational costs, taxes or royalty payments, could have a material adverse effect on Harmony’s
business, operating results and financial condition.
As we have a significant number of shares that may be issued in terms of the employee share schemes, our ordinary
shares are subject to dilution
We have a Deferred Share Plan as part of our Total Incentive Plan that came into effect in 2020. Our shareholders have
authorised up to 25,000,000 shares of the issued share capital to be used for this plan. A new Employee share ownership plan
("ESOP'') was implemented in 2024 and shares have been issued.
As a result, shareholders’ equity interests in us are subject to dilution to the extent of the potential future exercises of the
options through these share plans.
The continued status of South Africa’s credit rating as non-investment grade, as well as the grey-listing of South Africa
by the FATF, may have an adverse effect on our ability to secure financing on favourable terms
Adverse credit ratings deter some investors, threatening our ability to create and protect value in the long term, and
affecting our market capitalisation. Over the past several years, the slowing economy, rising sovereign debt, escalating labour
disputes and the structural challenges facing the mining industry and other sectors have resulted in the downgrading of South
Africa’s sovereign credit ratings.
Currently, South Africa’s sovereign credit is rated as non-investment grade: Fitch has assigned South Africa a sovereign
credit rating of BB-, Moody’s has assigned South Africa a sovereign credit rating of Ba2 and S&P has assigned South Africa a
sovereign credit rating of BB-. Previously,
•on 13 September 2024, Fitch affirmed South Africa’s sovereign credit rating as BB- and maintained the outlook as stable;
•on 4 December 2024, Moody's affirmed South Africa's sovereign credit rating as Ba2 and maintained the outlook to stable;
and
•on 16 May 2025, S&P affirmed South Africa’s sovereign credit rating as BB- and upgraded the outlook to positive.
The continued status of South Africa’s credit rating as non-investment grade and any downgrading by any of these
agencies may adversely affect our business, operating results and financial condition by making it more difficult to obtain
external financing or could result in any such financing being available only at greater cost or on more restrictive terms than
might otherwise be available.
Australia’s credit rating outlook was affirmed by S&P as stable on 13 February 2024 with long-term foreign and local
currency sovereign credit ratings of AAA, and PNG’s credit rating outlook was affirmed by S&P as stable on 27 June 2025 with
long-term foreign (B-) and local currency (B) sovereign credit ratings. While impact and risk is currently primarily driven by the
South Africa’s sovereign risk rating, with the acquisition of MAC and once the Eva Copper Project and the Wafi-Golpu Project
are completed and operational, management anticipations that reliance and dependencies on South Africa’s sovereign credit
ratings may change.
Throughout our fiscal year ended 30 June 2025, South Africa was on the FATF greylist (placed February 2023), subjecting
the country to enhanced monitoring due to strategic deficiencies in its anti-money laundering and counter-financing of terrorism
("AML/CFT") regime. This created increased compliance costs, potential restrictions on cross-border transactions, and
reputational concerns that affected investor confidence.
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On 24 October 2025, subsequent to our fiscal year end, South Africa successfully exited the greylist after completing all
required remediation actions. This is expected to reduce elevated risk perceptions and improve access to international capital
markets.
However, residual risks remain. South Africa faces a new FATF mutual evaluation beginning in 2026, and failure to
maintain the improvements achieved could result in re-greylisting. All domestic AML/CFT compliance obligations remain in force,
and sustained effectiveness must be demonstrated through ongoing investigations, prosecutions, and institutional strengthening.
Any future re-greylisting or perceived backsliding in AML/CFT effectiveness could adversely affect our business, operating
results, and financial condition.
We may not pay dividends or make similar payments to our shareholders in the future
Our dividend policy is to pay cash dividends only if funds are available for that purpose; specifically our policy is set at 20%
of net free cash subject to future major capital expenditure and meeting solvency and liquidity requirements as well as current
banking covenants. Whether funds are available depends on a variety of factors, including the amount of cash available, our
capital expenditures and other current or future anticipated cash requirements existing at the time. Under South African law, we
are only entitled to pay a dividend or similar payment to shareholders if we meet the solvency and liquidity tests set out in the
Companies Act, 71 of 2008 (as amended) including its Regulations (the “Companies Act”), and our current Memorandum of
Incorporation. Cash dividends or other similar payments may not be paid in the future. It should be noted that there is currently a
20% withholding tax on dividends declared by South African resident companies to non-resident shareholders or non-resident
ADS holders.
As dividends are considered by investors as an important investment criteria and the importance of external investment for
the continued stability of the company and potential future cash flows, the ability of Harmony to pay dividends may adversely
affect future investment in the company.
In addition, our foreign shareholders face investment risk from currency exchange rate fluctuations affecting the market
value of any dividends or distributions paid by us.
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Market Risks
The profitability of our operations, and cash flows generated by those operations, are affected by changes in the price
of gold and other metals; a fall in the gold price below our cash cost of production and capital expenditure required to
maintain production for any sustained period may lead to losses and require us to curtail or suspend certain
operations
Substantially all of our revenues come from the sale of gold. Historically, the market price for gold has fluctuated widely
and has been affected by numerous factors, over which we have no control, including:
•demand for gold for industrial uses, jewellery and investment;
•international or regional social, political and economic events and trends;
•strength or weakness of the US dollar (the currency in which gold prices generally are quoted) and of other currencies;
•monetary policies announced or implemented by central banks, including the US Federal Reserve;
•financial market expectations on the rate of inflation;
•changes in the supply of gold from production, divestment, scrap and hedging;
•interest rates;
•speculative activities;
•gold hedging or de-hedging by gold producers;
•actual or expected purchases and sales of gold bullion held by central banks or other large gold bullion holders or dealers;
and
•production and cost levels for gold in major gold-producing nations, such as South Africa, China, the United States and
Australia.
Refer to Item 4B: "Business Overview – Gold Price Volatility" for further detail.
While the price volatility is difficult to predict, if gold prices should fall below our cash cost of production and capital
expenditure required to sustain production and remain at these levels for any sustained period, we may record losses and be
forced to curtail or suspend some or all of our operations, which could materially adversely affect our business, operating results
and financial condition.
In addition, we would also have to assess the economic impact of low gold prices on our ability to recover any losses that
may be incurred during that period and on our ability to maintain adequate reserves. The use of lower gold prices in reserve
calculations and life-of-mine ("LOM") plans could also result in material impairments of our investment in gold mining properties
or a reduction in our reserve estimates and corresponding restatements of our reserves and increased amortisation, reclamation
and closure charges.
Fluctuations in input production prices linked to commodities may adversely affect our operational results and
financial condition
Fuel, energy, and consumables, including diesel, heavy fuel oil, chemical reagents, explosives, tires, steel, and mining
equipment, contribute a significant portion of a mining company's operating costs and capital expenditures. The prices of these
critical inputs are influenced by global commodity markets, macroeconomic conditions, and supply chain dynamics that vary
across our operations in South Africa, Papua New Guinea, and Australia.
During the financial year ended 30 June 2025 and through to the date of this filing, global commodity and energy markets
have experienced significant volatility. Energy prices have been subject to downward pressure driven by multiple factors
including weakening global demand, structural changes in energy consumption patterns, particularly from major consuming
nations, and increased supply from both traditional and emerging sources. Other mining consumables, including chemical
inputs, explosives, tires, and steel products, have experienced mixed pricing dynamics, reflecting variations in global supply
chains, transportation costs, and producer capacity utilisation.
There is considerable uncertainty regarding the medium-term trajectory of input costs. Leading forecasting agencies and
market participants maintain divergent views on future energy demand and supply dynamics, creating substantial uncertainty
regarding future price trends. Supply chain pressures, including international logistics costs and producer investment cycles,
continue to influence the pricing of mining consumables across all categories of inputs we require.
Significant upside risks to input costs persist from multiple sources. Geopolitical tensions in major producing and
consuming regions, including the Middle East and Eastern Europe, continue to pose potential supply disruption risks.
International sanctions on major commodity producers, trade policy uncertainties, and regional conflicts could disrupt supply
chains or create shipping and logistics bottlenecks. Additionally, weather-related disruptions to mining equipment supply, energy
generation capacity, and production processes across our operational jurisdictions could create localised cost pressures.
Fluctuations in the prices of fuel, energy, and consumables have a substantial impact on both our operating costs and
capital expenditure estimates. Significant and sustained increases in these input costs, driven by supply disruptions, geopolitical
events, regulatory changes, macroeconomic shifts, or producer policy changes, could materially affect project economics and
the financial viability of new mining developments, expansions, or marginal operations. Such price volatility may lead to material
changes in our overall cost structure and could have a material adverse effect on our business, operating results, cash flows,
and financial condition.
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Foreign exchange fluctuations could have a material adverse effect on our operational results and financial condition
Gold is priced throughout the world in US dollars and, as a result, our revenue is realised in US dollars, but most of our
operating costs are incurred in Rand and other non-US currencies, including the Australian dollar and Kina. From time to time,
we may implement currency hedges intended to reduce exposure to changes in the foreign currency risk, which we started
doing in fiscal 2016 and will continue as long as it remains part of our risk management policy. This hedging strategy is currently
implemented up to 25% of our estimated exposure, and our unhedged foreign exchange exposure will continue to be subject to
market fluctuations. Any significant and sustained appreciation of the Rand and other non-US currencies against the dollar will
materially reduce our Rand revenues and overall net income, which could materially adversely affect our operating results and
financial condition. See Item 11 – “Quantitative and Qualitative Disclosures about Market Risk”.
Fluctuations in the exchange rate of currencies may reduce the market value of our securities, as well as the market
value of any dividends or distributions paid by us
We have historically declared all dividends in South African Rand. As a result, exchange rate movements may have
affected the US dollar value of these dividends, as well as of any other distributions paid by the Depositary to holders of ADSs.
Furthermore, our Memorandum of Incorporation allows for dividends and distributions to be declared in any currency at the
discretion of the board of directors or the Company’s shareholders at a general meeting. If, and to the extent that, we opt to
declare dividends and distributions in US dollars, exchange rate movements will not affect the US dollar value of any dividends
or distributions. Nevertheless, the value of any dividend or distribution in Australian dollars, Kina or South African Rand will
continue to be affected. If, and to the extent that, dividends and distributions are declared in South African Rand in the future,
exchange rate movements will continue to affect the Australian dollar, Kina and US dollar value of these dividends and
distributions. This may reduce the value of the Company’s securities to investors. Additionally, the market value of our securities
as expressed in Australian dollars, Kina, US dollars and South African Rand will continue to fluctuate in part as a result of
foreign exchange fluctuations.
Rising inflation and geopolitical risks may have a material adverse effect on our business, operating results and
financial condition
Inflation in South Africa has fluctuated in a narrow band in recent years, remaining within or just outside the inflation range of
3% - 6% set by the SARB. Prolonged periods of inflation may impact our profitability by negatively impacting our fixed costs and
expenses, including raw material, transportation and labour costs. If these increased costs are not offset by an increase in gold
prices, they could have a material adverse effect on Harmony’s business, operating results and financial condition.
Geopolitical risks and conflicts around the world could further disrupt supply chains and create additional inflationary
pressures. Ongoing conflicts in Ukraine and the Middle East may cause increased inflationary pressures and could cause
general global economic conditions to deteriorate. The oil price is a driver of a number of input costs, including diesel and
transport costs, while gas prices have an impact on power costs, and other commodity prices drive direct mining and processing
costs. These inflationary pressures could also cause interest rates and the cost of borrowing to increase and could have a
material adverse effect on the financial markets and economic conditions throughout the world. The extent and duration of the
invasion, sanctions and resulting market disruptions are impossible to predict. Any inflationary impacts or disruptions caused by
the invasion or resulting sanctions may have a material adverse effect on Harmony’s business, operating results and financial
condition, and may magnify the impact of other risks described in this annual report.
Our results of operations, profits and financial condition could be adversely affected to the extent that cost inflation is not
offset by devaluation in operating currencies or an increase in the price of gold.
Investors may face liquidity risk in trading our ordinary shares on the JSE Limited
The primary listing of our ordinary shares is on the JSE Limited. Historically, the trading volumes and liquidity of shares
listed on the JSE have been low relative to other major markets. The ability of a holder to sell a substantial number of our
ordinary shares on the JSE in a timely manner, especially in a large block trade, may be restricted by this limited liquidity. See
Item 9: “The Offer and Listing - Markets - The Securities Exchange in South Africa.”
Shareholders outside South Africa may not be able to participate in future issues of securities (including ordinary
shares)
Securities laws of certain jurisdictions may restrict our ability to allow participation by certain shareholders in future issues
of securities (including ordinary shares) carried out by us or an affiliate. In particular, holders of our securities who are located in
the United States (including those who hold ordinary shares or ADSs) may not be able to participate in securities offerings by or
on behalf of us unless a registration statement under the Securities Act is effective with respect to such securities or an
exemption from the registration requirements of the Securities Act is available. Securities laws of certain other jurisdictions may
also restrict our ability to allow the participation of all holders in such jurisdictions in future issues of securities.
Global, social, political and economic conditions could adversely affect the profitability of our operations
Our operations and performance depend on global economic conditions. Global economic conditions remain fragile with
significant uncertainty regarding recovery prospects, level of recovery and long-term economic growth effects. A global
economic downturn may have follow-on effects on our business. These could include:
•key suppliers or contractors becoming insolvent, resulting in a break-down in the supply chain;
•a reduction in the availability of credit which may make it more difficult for us to obtain financing for our operations and
capital expenditures or make that financing more costly;
•exposure to the liquidity and insolvency risks of our lenders and customers; or
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•the availability of credit being reduced, which may make it more difficult for us to obtain financing for our operations and
capital expenditure or make financing more expensive.
Coupled with the volatility of commodity prices as well as the rising trend of input costs, such factors could result in
initiatives relating to strategic alignment, portfolio review, restructuring and cost-cutting, temporary or permanent shutdowns and
divestments. Further, sudden changes in a LOM plan or the accelerated closure of a mine may result in the recognition of
impairments and give rise to the recognition of liabilities that are not anticipated.
Due to the ongoing geopolitical tensions and armed conflict between Russia and Ukraine following Russia’s military
invasion, various sanctions have been imposed on Russia by the United States, EU, United Kingdom, and other jurisdictions.
Although our direct commercial interests in Russia, Ukraine, and affected areas are limited, these sanctions, any further
restrictions, and potential retaliatory actions by Russia or other nations have contributed to a sharp rise in oil and energy costs,
which are significant input expenses for our operations.
The conflict and the retaliatory measures already taken, and that could be imposed in the future by the United States, EU,
United Kingdom, and other governments have escalated global security concerns. This escalation raises the risk of broader
regional or global conflict and could have a lasting impact on regional and global economies, any or all of which could adversely
impact our business and financial performance.
In addition to the Russia-Ukraine conflict, escalating tensions in the Middle East, particularly recent conflicts and instability,
present further geopolitical risks that may impact Harmony. Disruptions in this region, which is a crucial supplier of global energy,
could drive up oil and energy prices even more, intensifying our operational costs. Furthermore, heightened instability may affect
global supply chains, potentially delaying essential materials and equipment critical to our operations. These dynamics also
increase the likelihood of broader regional or international conflicts, further straining markets and potentially impacting the global
economy, which in turn could adversely affect our business performance and strategic planning.
In addition to the potentially adverse impact on the profitability of our operations, any uncertainty on global economic
conditions may also increase volatility or negatively impact the market value of our securities. Any of these events could
materially adversely affect our business, operating results and financial condition.
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Other Regulatory and Legal Risks
Failures of our IT security processes and violations of data protection laws may adversely impact our business
activities and lead to public and private censure, regulatory penalties, fines and/or sanctions and may damage our
reputation
Harmony utilises and is reliant on various internal and external IT and operating technology ("OT") systems in multiple
international jurisdictions to support our business operations. Damage to or interruption of our IT or OT systems, whether due to
incidents, human error, natural events or malicious acts, may lead to important data being irretrievably lost, exposed or
damaged, may adversely impact our business activities and lead to public and private censure, regulatory penalties, fines and/or
sanctions and may damage our reputation, thereby adversely affecting our business, prospects and operating results.
As part of Harmony's ongoing efforts to enhance operational efficiency we are in the process of migrating aspects of our
information technology infrastructure to the cloud. This could lead to several risks, such as, higher than projected initial migration
and ongoing operational costs, increased exposure to cybersecurity threats, difficulty complying with various data protection
regimes and operational impacts due to unstable or insufficient internet infrastructure where operations are located in remote
areas.
In addition, Harmony considers and mitigates regulatory and legal risks arising from cybersecurity and data protection
requirements across the jurisdictions in which we operate. Breaches of IT security processes or violations of privacy laws could
result in operational disruptions, regulatory penalties, sanctions, reputational damage, and financial losses.
Our IT and OT systems are also vulnerable to cybercrime, ransomware, denial-of-service attacks, and other disruptive
incidents, which may be exacerbated by remote working practices and the adoption of emerging technologies such as artificial
intelligence. These incidents could compromise confidential data, impact operational continuity, or result in financial loss.
Harmony is adopting Artificial Intelligence ("AI") and other emerging technologies in its IT systems, and leverages AI that is
embedded within third party solutions being used in its mining operations. AI tools may also be utilised by our contractors and
third parties that we conduct business with. The use of AI may not meet the existing and rapidly evolving regulatory standards
and could introduce security risks that may expose confidential data, lead to the loss of competitive information and result in
operational failures. Limited expertise and skills shortages could prevent Harmony from effectively using or promptly
implementing AI and other technologies.
A significant increase in ransomware-related threats has also been recorded throughout the mining industry, with several
high-profile organisations experiencing disruptions over the last 12 to 24 months. The information security management system
protecting our IT and OT systems may not prevent future malicious action, including denial-of-service attacks, ransomware
attacks or fraud by individuals, groups or organisations resulting in the unavailability of IT systems and data, theft of
commercially sensitive data. This sensitive data may include commercial price outlooks, mergers and acquisitions and
divestment transactions, misappropriation of funds and disruptions to our business operations, the occurrence of any of which
could have a material adverse effect on our business and results of operations.
South Africa’s comprehensive privacy law, the Protection of Personal Information Act, 4 of 2013 (the “POPIA”), became
effective on 1 July 2020. Harmony employs approximately 45,000 staff. Failure to protect their data and not complying with
POPIA may lead to penalties and fines between R1 million – R10 million and/or imprisonment. Harmony may also have
insufficient insurance coverage for any data protection breaches, including concerning POPIA. See “– Risks Related to Our
Operations and Business - Fluctuations in insurance cost and availability could adversely affect our operating results and our
insurance coverage may prove inadequate to satisfy future claims”.
In Australia, our data practices must comply with the Privacy Act 1988 (Cth) ("Australian Privacy Act") and state-based
surveillance laws. The Australian Privacy Act regulates the manner in which individuals’ personal information is handled. Under
the Australian Privacy Act, there is a mandatory scheme requiring entities to report data breaches to the Office of the Australian
Information Commissioner (“OAIC”) and affected individuals if the breach is likely to result in serious harm to an individual
whose personal information is involved. Following a series of high profile data breaches in 2022 involving both government
agencies and public companies, the Australian Parliament passed the Privacy Legislation Amendment (Enforcement and Other
Measures) Act 2022, which introduced significantly increased penalties for serious and/or repeated privacy breaches and
increased the OAIC’s ability to resolve breaches.
Harmony maintains records of its international shareholders. On 25 May 2018, the General Data Protection Regulation
(“GDPR”) came into force. The GDPR is an EU-wide framework for protecting personal data being processed in or outside the
EU based on certain application criteria. The GDPR enhances existing legal requirements through several new rules, including
more substantial rights for data subjects’ cross-border transfer of information and mandatory data breach notification
requirements, and increases penalties for non-compliance. Failure to comply with the GDPR may lead to a fine of up to four
percent of a company’s worldwide turnover or up to €20 million.The GDPR was implemented in law of England and Wales by
the European Union (Withdrawal) Act 2018 (the “UK GDPR”), which may require a fine of up to £17,500,000, or four percent, of
the total worldwide annual turnover of the preceding financial year, whichever is higher. Furthermore, both the GDPR and the
UK GDPR have a scope that extends beyond the borders of the European Union and the United Kingdom, respectively, and
therefore do not only affect EU or UK operations.
We are subject to various laws in other jurisdictions, such as United States and PNG, where consumer and data protection
laws continue to evolve. Non-compliance with these requirements may incur substantial costs, require changes to business
practices, and result in adverse operational and financial consequences.
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The mining industry has become increasingly reliant on digital technologies. These technologies enable us to conduct our
day-to-day operations, improve safety and efficiency and decrease costs. However, as reliance on technology increases, we
become more susceptible to the persistent threat of cybersecurity breaches, such as cyber-crime, ransomware or cyber activist
attacks.
We maintain global information, digital technology and communication networks and applications to support our business
activities. We outsource several digital technology functions and applications to third-party vendors and these engagements may
have an impact on our overall cybersecurity position. Aspects of Harmony's information technology platform that are managed
by third-party vendors include cloud infrastructure, data centre management, server/personal computing support, enterprise
resource planning, business applications, email and digital documents.
The sophistication and magnitude of cybersecurity incidents are increasing and include malicious software, ransomware
and other attempts to gain unauthorised access to data and other electronic security and protected information breaches that
could lead to production downtimes, operational delays, safety incidents, the compromising of confidential or otherwise
protected information, destruction or corruption of data, other manipulation or improper use of Harmony's systems and networks.
Cyber breaches via third-party solutions have also become increasingly frequent.
Digital technology security processes may not prevent future malicious actions, denial-of-service attacks, or fraud, which
could result in the corruption of operating systems, theft of commercially sensitive data, misappropriation of funds and business
and operational disruption. While our insurance program includes limited coverage for cyber-related crimes and incidents, there
can be no assurance that any cybersecurity incident will be adequately covered by insurance, if at all. Any cybersecurity attack
could significantly disrupt our mining operations and cause us to suffer financial losses, including the cost of remedial actions,
the loss of revenue, and reputational harms.
We undertake various measures to follow the established best practices in relation to cyber security. However, the
increasing sophistication and evolving nature of cybersecurity threats may lead to future cybersecurity breaches, and
sophisticated cyber-attacks (such as phishing and ransomware attacks) despite our efforts. This is particularly the case with new
and evolving technologies such AI, including generative AI. As these technologies continue to improve and gain widespread use,
we may experience cybersecurity attacks created using AI, which may be difficult to detect and defend against.
See Item 16K: ''Cybersecurity''.
Failure to comply with laws, regulations, codes and standards, policies and procedures or contractual obligations may
lead to fines and penalties, loss of licenses or permits, may negatively affect our financial results, and adversely affect
our reputation
We operate in multiple jurisdictions, including those with less developed political and regulatory environments, and within
numerous and complex frameworks. Our governance and compliance processes may not prevent potential breaches of law,
accounting principles or other governance practices.
Our Code of Conduct and Behavioural Code, among other policies and procedures, standards and guidance, and training
thereon may not prevent instances of unethical or unlawful behaviour, including bribery or corruption, nor do they guarantee
compliance with legal and regulatory requirements, and breaches may not be detected by management.
To the extent that we suffer from any actual or alleged breach or breaches of relevant laws, including South African anti-
bribery and corruption legislation or the US Foreign Corrupt Practices Act of 1977 under any circumstances, they may lead to
investigations and examinations, fines, penalties, imprisonment of officers, litigation, and loss of operating licenses or permits,
suspensions of operations, negative effects on our reported financial results and may damage our reputation. Such sanctions
could have a material adverse impact on our business, operating results and financial condition.
Investors in the United States may have difficulty bringing actions, and enforcing judgments, against us, our directors
and our executive officers based on the civil liabilities provisions of the federal securities laws or other laws of the
United States or any state thereof
We are incorporated in South Africa. Each of our directors and executive officers (and our independent registered public
accounting firm) resides outside the United States. Substantially all of the assets of these persons and substantially all our
assets are located outside the United States. As a result, it may not be possible for investors to enforce a judgment against
these persons or us obtained in a court of the United States predicated upon the civil liability provisions of the federal securities
or other laws of the United States or any state thereof. A foreign judgment is not directly enforceable in South Africa, but
constitutes a cause of action which may be enforced by South African courts in certain circumstances.
US securities laws do not require us to disclose as much information to investors as a US company is required to
disclose, and investors may receive less information about us than they might otherwise receive from a comparable
US company
We are subject to the periodic reporting requirements of the SEC and the NYSE that apply to “foreign private issuers”. The
periodic disclosure required of foreign private issuers under applicable rules is more limited than the periodic disclosure required
of US issuers. Investors may receive less timely financial reports than they otherwise might receive from a comparable US
company or from certain of our peers in the industry. This may have an adverse impact on investors’ abilities to make decisions
about their investment in us.
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ITEM 4. INFORMATION ON THE COMPANY
A. HISTORY AND DEVELOPMENT OF THE COMPANY
Harmony Gold Mining Company Limited is a public limited company incorporated in South Africa, with its registered office
at Randfontein Office Park, Corner Main Reef Road and Ward Avenue, Randfontein, 1759, telephone number +27 11 411 2000.
Harmony was incorporated and registered as a public limited company in South Africa under registration number
1950/038232/06 on 25 August 1950. Harmony Gold Mining Company Limited is the ultimate holding company of the Group.
The information set forth under the headings:
•“– Harmony – About Harmony” on pages 3 to 5;
•“– Harmony – Business model” on pages 12 to 15;
•“– Delivering profitable ounces – Performance by operation on pages 46 to 84; and
•“– Delivering profitable ounces – Exploration and projects” on pages 85 to 87
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference. Also see note 19 “Investments in
Associates” and note 20 “Investment in Joint Operations” of our consolidated financial statements, set forth beginning on
page F-1.
For information concerning our principal capital expenditures currently in progress, including the distribution of these
investments geographically and the method of financing, refer to Item 4: "Information on the Company – Business Overview –
Capital Expenditures” and Item 5: “Operating and Financial Review and Prospects – Liquidity and Capital Resources”.
In fiscal 2025, we did not receive any public takeover offers by third parties or make any public takeover offers in respect of
other companies’ shares.
The SEC maintains an internet site that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC (www.sec.gov). As a foreign private issuer, we are exempt from the rules
under the Exchange Act that prescribe the furnishing and content of proxy statements to shareholders. Our corporate website is
www.harmony.co.za.
Recent Developments
Developments since 30 June 2025
•On 22 July 2025, Harmony has entered into restructuring documents with MAC, OR Royalties and Glencore pursuant to
which the parties have agreed to amend various documents in connection with the copper stream, silver stream and the
royalty deed with such amendments to take effect after the Jersey law scheme of arrangement pursuant to Article 125 of
the Companies (Jersey) Law 1991 (as amended) (the scheme) for the acquisition of MAC has been implemented.
•On 14 August 2025, Mr Frans Lombard was appointed to the board of directors of Harmony as an independent non-
executive director.
•On 27 August 2025, a final dividend of 155 SA cents was declared, which was paid on 13 October 2025.
•On 9 October 2025, it was confirmed that all of the conditions to the scheme for the acquisition of MAC had been satisfied
or waived and the Royal Court of Jersey made orders sanctioning the proposed acquisition. Following lodgement by MAC
of a copy of the Court’s order with the Jersey Registrar of Companies on 10 October 2025, the scheme became legally
effective. On 22 October 2025, a drawdown of US$875 million (R15.21 billion) was made from the US$1.25 billion bridge
facility. These funds were utilised on 23 October 2025 to settle the cash consideration of US$1.01 billion (R17.52 billion).
Following the receipt of the funds, the scheme was implemented, resulting in an acquisition date of 24 October 2025.
•On 28 October 2025, a payment of US$223 million (R3.84 billion) was made to Citicorp International Limited in full and
final settlement of the MAC senior debt.
•On 29 October 2025, a payment of US$75 million (R1.28 billion) was made to Glencore Australia Holdings (Pty Ltd
("Glencore") in settlement of the first contingent copper consideration. This consideration became payable as a result of
the lapsing of the payment holiday agreed between Glencore and MAC following the change of control of MAC.
B. BUSINESS OVERVIEW
The information set forth under the headings:
•“– Harmony – About Harmony” on pages 3 to 5;
•"– Harmony – Strategy" on pages 39 to 45;
•"– Harmony – Business model" on pages 12 to 15;
•“– Harmony – Operating context” on pages 16 to 25;
•"– Harmony – Risk and opportunity management" on pages 26 to 28;
•"– Harmony – Material matters" on pages 35 to 38;
•"– Harmony – Stakeholder engagement" on pages 29 to 34;
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•“– Delivering profitable ounces – Performance by operation" on pages 46 to 84;
•“– Delivering profitable ounces – Exploration and projects” on pages 85 to 87;
•“– Environment stewardship" on pages 88 to 126; and
•“– Social stewardship” on pages 127 to 185
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
Gold Price Volatility
The profitability of the group’s operations, and the cash flows generated by those operations, are affected mainly by
changes in the market price of gold, and in the case of Hidden Valley, silver as well. Revenue for fiscal 2025 amounted to
R73,896 million of which R75,240 million was from the sale of gold, compared with revenue of R61,379 million in fiscal 2024 of
which R59,212 million related to the sale of gold. The increase in gold revenue was mainly driven by a 31.1% increase in the
average dollar gold price received, increasing from US$1,999/oz in fiscal 2024 to US$2,620/oz in fiscal 2025.
Offsetting the above was a hedging loss of R4,594 million in fiscal 2025, compared to a loss of R1,265 million in fiscal
2024. The increase in the hedging loss is directly linked to the increase in gold prices seen throughout fiscal 2025. Harmony
entered into derivative contracts to manage the variability in cash flows from the group’s production, in order to create cash
certainty and protect the group against lower commodity prices.
Current demand and supply affects the price of gold, but not necessarily in the same manner as current demand and
supply affect the prices of other commodities. Historically, gold has retained its value in relative terms against basic goods in
times of inflation and monetary crisis. As a result, central banks, financial institutions and individuals hold large amounts of gold
as a store of value and production in any given year constitutes a very small portion of the total potential supply of gold.
However, as gold has historically been used as a hedge against unstable or lower economic performance, improved economic
performance may have a negative impact on the price for gold. Since the potential supply of gold is large relative to mine
production in any given year, normal variations in current production will not necessarily have a significant effect on the supply of
gold or its price. Uncertainty in global economic conditions has impacted the price of gold significantly in the past and continued
to do so in fiscal 2025. These include high inflation and interest rates, as well as increasing geopolitical tension which is
currently creating increased demand for gold by central banks amongst others which may continue to result in increased
volatility.
The volatility of gold prices is illustrated in the table, which shows the annual high, low and average of the afternoon
London bullion market fixing price of gold in US dollars for each of the past ten years:
Annual gold price: 2015 - 2025
Price per ounce (US$) | |||
Calendar year | High | Low | Average |
2016 ............................................................................................................................................... | 1,366 | 1,077 | 1,251 |
2017 ............................................................................................................................................... | 1,346 | 1,151 | 1,253 |
2018 ............................................................................................................................................... | 1,355 | 1,178 | 1,268 |
2019 ............................................................................................................................................... | 1,546 | 1,270 | 1,393 |
2020 ............................................................................................................................................... | 2,067 | 1,474 | 1,770 |
2021 ............................................................................................................................................... | 1,943 | 1,684 | 1,799 |
2022 ............................................................................................................................................... | 2,039 | 1,629 | 1,800 |
2023 ............................................................................................................................................... | 2,135 | 1,804 | 1,953 |
2024 ............................................................................................................................................... | 2,786 | 1,992 | 2,389 |
2025 (up to and including 24 October 2025) ........................................................................... | 4,357 | 2,636 | 3,284 |
On 24 October 2025, the afternoon fixing price of gold on the London bullion market was US$4,104/oz.
Capital Expenditures
Capital expenditures for all operations incurred for fiscal 2025 amounted to R10,998 million which includes R1,005 million
towards phase 2A of the renewable energy program, compared with R8,327 million in fiscal 2024. During fiscal 2025, capital
expenditures at Moab Khotsong accounted for 22% of the total, with Mponeng accounting for 19%, Hidden Valley for 15%, Mine
Waste Solutions for 10% and Doornkop for 8%. During fiscal 2024, capital expenditures at Hidden Valley accounted for 19% of
the total, with Mine Waste Solutions accounting for 18%, Moab Khotsong for 16%, Mponeng for 11% and Doornkop for 8%.
The focus of our capital expenditures in recent years has been on underground development, major projects such as
Zaaiplaats and Kareerand, as well as plant improvement and upgrades. During fiscal 2025, capital expenditure was funded from
Harmony's cash generated by operations. See Item 5: “Operating and Financial Review and Prospects - Liquidity and Capital
Resources”.
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We have budgeted approximately R12,927million for operational capital expenditures in fiscal 2026, excluding capital
allocated for renewables, other international projects, Eva Copper and Wafi-Golpu. We currently expect that our planned
operational capital expenditures will be financed from cash generated by operations and new borrowings as needed. Details
regarding the anticipated capital expenditure for each operation is included in the table below.
Capital expenditure budgeted for fiscal 2026 | |
(R’million) | |
South Africa | |
Moab Khotsong1 .................................................................................................................................................................................................. | 1,759 |
Mponeng2 ............................................................................................................................................................................................................. | 2,385 |
Tshepong North ................................................................................................................................................................................................... | 785 |
Tshepong South .................................................................................................................................................................................................. | 621 |
Doornkop .............................................................................................................................................................................................................. | 1,194 |
Joel ........................................................................................................................................................................................................................ | 300 |
Target 1 ................................................................................................................................................................................................................. | 463 |
Kusasalethu ......................................................................................................................................................................................................... | 420 |
Masimong ............................................................................................................................................................................................................. | 115 |
Mine Waste Solutions ......................................................................................................................................................................................... | 858 |
Other - surface .................................................................................................................................................................................................... | 590 |
International | |
Hidden Valley3 ..................................................................................................................................................................................................... | 3,437 |
Total operational capital expenditure | 12,927 |
Total capital expenditure ................................................................................................................................................................................ | 12,927 |
1Includes capital expenditure for Zaaiplaats.
2Includes capital expenditure for the life-of-mine extension project
3Includes capitalised stripping costs.
Regulation
Mineral Rights – South Africa
MPRDA
The MPRDA was promulgated as effective legislation on 1 May 2004 and is the primary legislation regulating the mining
industry in South Africa. Pursuant to the MPRDA, the South African government is the custodian of South Africa’s mineral and
petroleum resources and has a duty to administer these resources for the benefit of all South Africans. As a consequence, an
owner of the surface rights has no claim to the minerals found in, on or under the surface of his or her land. The MPRDA
extinguished private ownership of minerals. The DMPR is the government body which, through its regional offices, implements
and administers the MPRDA.
Any person (including the owner of the surface rights) who wishes to exploit mineral resources in South Africa is required
to first apply for and obtain the appropriate right under the MPRDA. The Minister is authorised to grant or refuse applications for
rights under the MPRDA. Provided that an applicant meets all the requirements relating to the right for which the applicant has
applied, the Minister is obliged to grant the right. Once the right is granted in terms of the MPRDA and registered in terms of the
Mining Titles Registration Act, 16 of 1967, the holder holds a limited real right in respect of the mineral and the land to which
such right relates.
In accordance with the MPRDA, the holder of a mining right must comply with the terms of the right, the provisions of the
MPRDA, the environmental authorisation (issued under the NEMA), the mining work program and the SLP approved as part of
the right. The SLP relates to the obligations placed on the mining right holder to, among other things, train employees of the
mine in accordance with prescribed training methodologies, achieve employment equity and human resource development in
the mining company, improve housing and living conditions of employees and set up local economic development projects.
Compliance with each of the provisions of the MPRDA, environmental authorisation, mining work program and SLP is
monitored by submission of monthly, bi-annual and annual returns and reports by the holder of the right to the DMPR in
accordance with the provisions of the MPRDA and the right. A prospecting or mining right can be suspended or cancelled if the
holder conducts mining operations in breach of the MPRDA, a term or condition of the right or an Environmental Management
Programme ("EMPr"), or if the holder of the right submits false, incorrect or misleading information to the DMPR. The MPRDA
sets out a process which must be followed before the Minister is entitled to suspend or cancel the prospecting or mining right.
We have been working on our program of licensing since 2004, which involved the compilation of a mineral assets register
and the identification of all of our economic, mineral and mining rights. We actively carry out mining and exploration activities in
all of our material mineral rights areas in South Africa. In the period following the MPRDA taking effect, we applied for and were
granted conversion of all of our "old order" mining rights into "new order" mining rights in terms of the MPRDA.
Our strategy has been to secure all strategic mining rights on a region-by-region basis, which we have achieved as we
have secured all “old order" mining rights and validated existing mining authorisations. All mining operations have valid mining
rights in terms of the MPRDA and we now have to continue complying with the required monthly, annual and bi-annual reporting
obligation to the DMPR.
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In 2023, the DMPR indicated that certain amendments to the MPRDA would be made. To this end, the DMPR convened a
MPRDA Review Summit which was held on 13 July 2023 where a number of stakeholders were invited and participated in
preparatory discussions aimed at establishing what aspects of the current MPRDA legislation need to be amended.
On 11 July 2024, during the DMPR 2024/25 Budget announcement following South Africa’s general elections, Minister
Gwede Mantashe announced that the DMPR (the predecessor to the DMRP) would be split into two separate Ministries: the
DMPR and the Department of Electricity and Energy, which split has been subsequently implemented. In addition, at the same
time, the Minister indicated that the DMPR was in the process of drafting amendments to the MPRDA to address certain
perceived deficiencies and to bring the legislation in line with international best practice. It was not made clear at the time
whether the DMPR intend to overhaul the MPRDA Bill in its entirety, or if its new draft amendments will be part of a revival of the
lapsed MPRDA Bill.
On 20 May 2025, the South African Government published the MPRD Bill and a subsequent correction for public comment
on 20 May 2025 and 9 June 2024, respectively. It invited interested and affected parties to submit their comments on the MPRD
Bill on or before 13 August 2025.
Mining Charter
The South African government has identified the South African mining industry as a sector in which significant participation
by HDPs is required. One of the objects of the MPRDA is to substantially and meaningfully encourage HDPs to enter the mineral
and petroleum industries and to benefit from the exploitation of the nation’s mineral and petroleum resources. In terms of section
100 of the MPRDA, the Minister was empowered to develop a broad-based socio-economic charter in order to set the
framework for targets and time periods for giving effect to these objectives.
Among other things, the Original Charter stated that mining companies agreed to achieve 26% HDP ownership of South
African mining industry assets within 10 years (i.e. by the end of 2014). Ownership could comprise active involvement, through
HDP-controlled companies (where HDPs own at least 50% plus one share of the company and have management control),
strategic joint ventures or partnerships (where HDPs own at least 25% plus one vote of the joint venture or partnership interest
and there is joint management and control), collective investment vehicles, the majority ownership of which is HDP based, or
passive involvement, particularly through broad-based vehicles such as employee stock option plans.
The Original Charter was subsequently amended by the Amended Charter which included targets and timelines for HDP
participation in procurement and enterprise development, beneficiation, employment equity, human resources development,
mine community development, housing and living conditions, sustainable development and growth of the mining industry and
reporting (monitoring and evaluation). It required mining companies to achieve the following, among other things, by no later
than 13 December 2014:
•have a minimum effective HDP ownership of 26%;
•procure a minimum of 40% of capital goods, 70% of services and 50% of consumer goods from HDP suppliers (i.e.
suppliers in which a minimum of 25% + one vote of their share capital must be owned by HDPs) by 2014 (exclusive of non-
discretionary procurement expenditure);
•ensure that multinational suppliers of capital goods contribute a minimum of 0.5% of their annual income generated from
South African mining companies into a social development fund from 2010 towards the socio-economic development of
South African communities;
•achieve a minimum of 40% HDP demographic representation at executive management (board) level, senior management
(executive committee) level, core and critical skills, middle management level and junior management level;
•invest up to 5% of annual payroll in essential skills development activities; and
•implement measures to improve the standards of housing and living conditions for mineworkers by converting or upgrading
mineworkers’ hostels into family units, attaining an occupancy rate of one person per room and facilitating home ownership
options for all mineworkers in consultation with organised labour.
In addition, mining companies were required to monitor and evaluate their compliance with the Amended Charter and
submit annual compliance reports to the DMPR (as it was then). The "scorecard" attached to the Amended Charter made
provision for a phased-in approach for compliance with the above targets over the five-year period ending on 13 December
2014. For measurement purposes, the scorecard allocated various weightings to the different elements of the Amended Charter.
Failure to comply with the provisions of the Amended Charter would, according to its provisions, ostensibly amount to a breach
of the MPRDA and could have resulted in the cancellation or suspension of a mining company’s mining rights.
In March 2015, the DMPR prepared an interim report of consolidated results of the self-assessment by reporting
companies of compliance with the Amended Charter, reporting relatively broad compliance with the non-ownership requirements
of the Amended Charter. However, the DMPR did not report the results of compliance with the HDP ownership guidelines of the
Amended Charter and noted that there was no consensus on certain principles applicable to the interpretation of the ownership
element.
On 31 March 2015, the MCSA and the DMPR jointly agreed to approach the High Court of South Africa (Gauteng Division)
to seek a declaratory order that would provide a ruling on the relevant legislation and the status of the Original Charter and the
Amended Charter, including clarity on the status of previous empowerment (i.e., HDP ownership) transactions concluded by
mining companies and a determination on whether the ownership element of the Original Charter and the Amended Charter
should be a continuous compliance requirement for the duration of the mining right as argued by the DMPR, or a once-off
requirement as argued by the MSCA, on the “once empowered always empowered” principle. The MCSA and the DMPR filed
papers in court (the "Main Application") and the matter was placed on the roll to be heard on 15 March 2016.
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On 16 February 2017, the High Court of South Africa (Gauteng Division) postponed the hearing of the application indefinitely to
allow the MCSA and the South African government to engage in further discussion on this matter.
The Minister subsequently published the Broad-Based Black Socio-Economic Empowerment Charter for the South African
Mining and Minerals Industry, 2017 ("2017 Mining Charter") which came into effect on 15 June 2017. The MCSA launched an
urgent application in the High Court of South Africa (Gauteng Division) to interdict the implementation of the 2017 Mining Charter
(the "Interdict Application") pending a judicial review application on the basis that it was unilaterally developed and imposed on
the industry and that the process that was followed by the DMPR in developing the 2017 Mining Charter had been seriously
flawed (the "2017 Review Application"). However, the Minister and the MCSA reached an agreement on 13 September 2017
under which the Interdict Application did not proceed as the Minister undertook to suspend the 2017 Mining Charter pending the
outcome of the 2017 Review Application by the MCSA. The 2017 Review Application was subsequently indefinitely postponed
by agreement between the DMPR and the MCSA on the basis that the MCSA had entered into a new round of discussions with
the President of South Africa, Cyril Ramaphosa, and the Minister. On 19 February 2018, the High Court of South Africa
(Gauteng Division) ordered that the DMPR and the MCSA also involve communities affected by mining activities in these new
discussions relating to the 2017 Mining Charter.
When the 2017 Mining Charter was published, the MCSA re-enrolled the Main Application for hearing and the High Court
of South Africa (Gauteng Division) hearing was held in December 2017.
On 4 April 2018, the High Court of South Africa (Gauteng Division) delivered its judgment (the "2018 Judgment"). The
effect of the 2018 Judgement is that mining companies are not required to re-empower themselves after their HDP shareholders
have sold out and that the DMPR cannot rely on the provisions of the MPRDA to enforce compliance with the Amended Charter,
unless the provisions which the DMPR seeks to enforce were made a term or condition of the mining right. The High Court of
South Africa (Gauteng Division) also held that the Minister's promulgation of the Amended Charter did not occur in terms of or in
compliance with the duty imposed under section 100(2) of the MPRDA and, as such, the terms of the Amended Charter can
have legal consequences or significance only insofar as they are, by any means, reflected in the terms of conditions subject to
which the Minister grants a mining right. It also brings the validity and enforceability of any subsequent mining charter into
question unless it is legislatively authorised. On 19 April 2018, the DMPR filed a notice of intention to appeal the judgment of the
High Court of South Africa (Gauteng Division), but later withdrew its appeal in August 2020.
On 27 September 2018, the Minister published the Mining Charter III on which date it also became effective, as amended
by the notice published in the Government Gazette on 19 December 2018 and read with the Implementation Guidelines. It
replaces, in their entirety, the Original Charter and the Amended Charter. Mining Charter III imposes new obligations and
increased participation by HDPs in relation to a mining company's ownership, procurement of goods and services, enterprise
and supplier development, human resource development and employment equity requirements. The first annual reporting for
compliance with Mining Charter III was on or before 31 March 2020, although on 11 April 2020, the Minister gazetted Directions
under the regulations of the Disaster Management Act as part of the measures to address, prevent and combat the spread of
Covid-19, which extended the date for submission of the first annual report to 1 June 2020. Harmony submitted its first report
under Mining Charter III within the specified deadline, and has timely submitted subsequent reports.
Some of the material changes introduced by Mining Charter III include:
•in relation to existing mining rights, the continuing consequences of historical black economic empowerment (''BEE'')
transactions will be recognised and existing right holders will not be required to increase their HDP shareholding for the
duration of their mining right in circumstances where they either achieved and maintained 26% HDP ownership or where
they achieved the 26% HDP ownership but their HDP shareholder has since exited;
•in relation to the renewal and transfer of existing mining rights, historical BEE credentials will not be recognised and mining
companies will be required to comply with the ownership requirements in relation to new mining rights (see below);
•in relation to new mining rights (granted after 27 September 2018) mining companies must have a minimum of 30% BEE
shareholding distributed as follows: a minimum of 5% non-transferable carried interest to qualifying employees; a minimum
of 5% non-transferable carried interest to host communities, or a minimum 5% equity equivalent benefit; and a minimum of
20% to a BEE entrepreneur, 5% of which must preferably be for women; "carried interest" is defined as "shares issued to
qualifying employees and host communities at no cost to them and free of any encumbrances. The cost for the carried
interest shall be recovered by a right holder from the development of the asset";
•applications for mining rights lodged and accepted prior to 27 September 2018, will be processed in terms of the Amended
Charter (i.e. with a 26% HDP ownership requirement) but with a further obligation to increase their HDP shareholding to
30% within five years of the granting of the right;
•BEE shareholding may be concluded at holding company level, mining right level, on units of production, shares or assets
and where it is concluded at any level other than mining right level, the flow-through principle will apply;
•the permitted beneficiation off-set of up to 11% against the HDP ownership requirement contained in the Original Charter
and Amended Charter has been reduced to 5% unless it was "claimed" prior to 27 September 2018;
•a minimum of 70% of total mining goods procurement spend (including non-discretionary expenditure) must be on South
African manufactured goods, allocated amongst HDP owned and controlled companies, women and youth owned and
controlled companies and BEE compliant companies;
•a minimum of 80% of the total spend on services (including non-discretionary expenditure) must be sourced from South
African companies, allocated among HDP owned and controlled companies, women and youth owned and controlled
companies and BEE compliant companies;
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•mining companies must achieve a minimum representation of HDPs in the following management positions: 50% on the
Board of directors (20% of which must be women), 50% in executive (20% of which must be women), 60% in senior
management (25% of which must be women); 60% in middle level (25% of which must be women); 70% in junior level
(30% of which must be women) and 60% in core and critical skills. In addition; HDPs with disabilities must constitute 1.5%
of all employees;
•the Minister may, by notice in the Government Gazette, review Mining Charter III;
•the ownership and mine community development elements are ring-fenced and require 100% compliance at all times; and
•a mining rights holder that has not complied with the ownership element and falls between levels 6 and 8 of the Mining
Charter scorecard shall be in breach of the MPRDA and its mining right may be suspended or cancelled in accordance with
the provisions of the MPRDA.
While Mining Charter III is now effective, there are transitional arrangements in relation to compliance with the procurement
and the employment equity element targets.
On 26 March 2019, the MCSA instituted judicial review proceedings in High Court of South Africa (Gauteng Division) for an
order reviewing and setting aside certain provisions of Mining Charter III. The provisions challenged by the MCSA relate to those
which, among other things:
•provide that mining rights holders must at all times comply with the ownership requirements imposed under Mining
Charter III;
•stipulate that the continuing consequences of historic empowerment transactions will not be recognised if existing mining
rights are renewed or transferred to third parties;
•impose the procurement thresholds for goods and services; and
•indicate that the Minister may invoke the sanctions prescribed under the MPRDA, if a mineral right holder fails to comply
with the threshold requirements imposed under the Mining Charter III.
The application aligns with the MCSA’s previously stated view that most aspects of the Mining Charter III represent a
reasonable and workable framework. However, the MCSA’s application contended that Mining Charter III does not fully
recognise the continuing consequences of previous empowerment transactions, particularly in relation to mining right renewals
and transfers of such rights. According to the MCSA, this constitutes a breach of the declaratory order on the matter issued by
the High Court of South Africa (Gauteng Division) in April 2018. On 30 June 2020, the High Court of South Africa (Gauteng
Division) ordered that various mine-affected communities and trade unions be joined as parties to the MCSA's application. The
MCSA's application was heard before a full bench of judges in May 2021. The 2021 Judgement was handed down on 21
September 2021, setting aside certain of the problematic provisions, while providing that the remainder of Mining Charter III
should continue in force. In November 2021, the DMPR informed National Assembly's Portfolio Committee on Mineral
Resources and Energy that it does not intend to appeal the outcome of the 2021 Judgment, but instead will consider steps to
achieve the empowerment objectives through legislative amendments to the MPRDA.
The 2021 Judgement was discussed at the parliamentary mineral resources and energy committee meeting on 18 March
2022. The meeting involved various stakeholders such as labour unions and the MCSA to present their views on the 2021
Judgement. To date, there have been no developments with regards to the above-mentioned views of the stakeholders.
For details of our compliance in the regard, see “Integrated Annual Report for the 20-F 2025 – Governance – Mining
Charter III – compliance scorecard” on pages 227 to 228.
The Royalty Act
The Mineral and Petroleum Royalty Act, 28 of 2008, and the Mineral and Petroleum Royalty Administration Act, 29 of 2008,
were assented to on 21 November 2008 with the commencement date set as 1 May 2009; the date on which royalties became
payable was deferred to 1 March 2010. Royalties are payable by the holders of mining rights to the government according to
formula based on a defined earnings before interest and tax. This rate is then applied to a defined gross sales leviable amount
to calculate the royalty amount due, with a minimum of 0.5% and a maximum of 5% for gold. For 2025, the average royalty rate
for our South African operations was 2.79% of the gross sales leviable amount.
The BBBEE Act and the BBBEE Amendment Act
The BBBEE Act, 53 of 2003 (the "BBBEE Act"), which came into effect on 21 April 2004, established a national policy on
broad-based black economic empowerment with the objective to (i) remedy historical racial imbalances in the South Africa
economy and (ii) achieve economic transformation, by increasing the number of black people who participate in the mainstream
South African economy. The BBBEE Act provides for various measures to promote BEE participation, including empowering the
Minister of Trade and Industry to issue Codes of Good Practice (the "BBBEE Codes"), with which organs of state and public
entities and parties interacting with them or obtaining rights and licenses from them would be required to comply. The BBBEE
Codes were first published in 2007, and were revised in 2013 (although the revisions only came into effect in 2015). The BBBEE
Codes sought to provide a standard framework, in the form of a "generic scorecard", for the measurement of BBBEE across all
sectors and industries operating within the South African economy and sought to regularise such sectors and industries by
providing clear and comprehensive criteria for the measurement of BBBEE.
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On 24 October 2014, the BBBEE Amendment Act, 46 of 2013 (the “BBBEE Amendment Act”), came into effect. The
BBBEE Amendment Act inserted a new provision in the BBBEE Act, whereby the BBBEE Act would trump the provisions of any
other law in South Africa which conflicts with the provisions of the BBBEE Act, provided such conflicting law was in force
immediately prior to the effective date of the BBBEE Amendment Act. The BBBEE Amendment Act also stipulates that this
provision would only be effective one year after the BBBEE Amendment Act is brought into effect, on 24 October 2015.
On 27 October 2015, the Minister of Trade and Industry published a government gazette notice declaring an exemption in favour
of the DMPR from applying the requirements contained in section 10(1) of the BBBEE Act for a period of 12 months.
There has been some debate as to whether or to what extent the mining industry was subject to the BBBEE Act and the
policies and codes provided for thereunder. The BBBEE Codes apply in the absence of sector specific codes which have been
agreed to by interested and affected parties active within a specific sector. By way of background, various sectors within the
South African economy may negotiate and agree Codes of Good Practice which would govern transformation in that specific
sector. In addition, certain codes fall outside of the regulatory framework established by the BBBEE Act and BBBEE Codes
promulgated by the Minister of Trade and Industry thereunder. One such sector is the mining industry, where the Original
Charter, the Amended Charter and Mining Charter III (which we refer to generally in this section as the Mining Charter), govern
the implementation of BBBEE, among other things, within the mining industry.
For purposes of the BBBEE Act, the Mining Charter is not a "sector code". It is not clear at this stage how the Mining
Charter and BBBEE Codes relate to each other. The government may designate the Mining Charter as a sector code, in which
case it will be under the auspices of the BBBEE Act. On the other hand, the Mining Charter may remain a stand-alone document
under the auspices of the MPRDA and may be subject to the trumping provision, discussed above, to the extent that there is a
conflict between the two. This uncertainty may be resolved through either government clarification or judicial attention. The
exemption by the Minister of Trade and Industry can be read as confirmation that the Department of Trade and Industry regards
the BBBEE Codes as “applicable” to the Mining Industry after the exemption was lifted on 27 October 2016.
On 17 February 2016, the Minister of Trade and Industry published a gazette notice which repealed and confirmed the
validity of a number of sector codes. The omission of the Mining Charter from the notice can be interpreted as confirmation that
the Mining Charter is not contemplated as a sector code. This supports the interpretation BBBEE Act did not intend to trump the
Mining Charter. While it remains to be seen how this will be interpreted, it appears that the BBBEE Act and the BEE Codes will
not overrule the Mining Charter in the future and, in any event, our view is that the DMPR is likely to continue implementing the
Mining Charter and it is unlikely that the DMPR will begin applying the BBBEE Act and BBBEE Codes in administering the
MPRDA, since in order to do so will potentially require an amendment of the MPRDA.
Housing and Living Standards
Mining right holders are required to develop, in consultation with organised labour, relevant municipalities and the DWS, a
housing and living conditions plan taking into account various principles in giving effect to the above objectives including,
engaging with all relevant stakeholders, ensuring equity in the implementation and administration of the housing of employees,
providing employees with a range of housing options (such as subsidised rental, private ownership, living out allowances and
government subsidised ownership) and ensuring that all housing facilities are developed or redeveloped with access to
electricity, water and ablutions in accordance with the requisite norms and standards.
Resettlement Guidelines
On December 11, 2019 the Minister published the Housing and Living Conditions Standard for the Minerals Industry (the
"Housing and Living Conditions Standard"). The purpose of the Housing and Living Conditions Standard is to ensure that mine
employees are provided with adequate housing, healthcare services, balanced nutrition and water. The Housing and Living
Conditions Standard applies to existing and new mining right holders. The underlying purpose of the Housing and Living
Conditions Standard is to develop decent single and family housing units for mine employees and their families.
The Minister published the final Mine Community Resettlement Guidelines, 2022 ("Resettlement Guidelines") for
implementation on 30 March 2022, on which date they also became effective. The Resettlement Guidelines apply to applicants
and holders of mining rights, prospecting rights and mining permits pursuant to the MPRDA, which result in the displacement of
parties. Resettlement is guided by several fundamental principles including meaningful consultation, gender equality, the
avoidance of resettlement, where possible, rules concerning meetings and the protection of existing rights.
Pursuant to the Resettlement Guidelines, applicants and holders of mining rights will need to make provision for a
Resettlement Plan, Resettlement Action Plan and a Resettlement Agreement. The Resettlement Plan sets out the nature of the
project, its expected impacts, the manner in which consultation will be implemented and the various cost implications for the
resettlement. The Resettlement Action Plan sets out the specific steps that the holder will need to meet to implement the
Resettlement Plan and the Resettlement Agreement records the commitments made by the holder. There are no specific
requirements in the Resettlement Guidelines regarding the content of these agreements. However, all stakeholders should be
engaged and commit to their respective obligations.
No mining activities may commence until such time as the Resettlement Agreement has been concluded. This includes
agreement on the compensation that should be paid to affected parties. Any disputes between the parties regarding the
Resettlement Agreement or associated plans, should be resolved between the parties. To the extent that the parties are unable
to reach an amicable solution, only then should the Regional Manager-led process in section 54 of the MPRDA be invoked.
Geoscience Regulations
On March 30, 2022, the Minister published the final version of the Geoscience Act Regulations, 2022 (the "Geoscience
Regulations"), on which date they also became effective. The Geoscience Regulations obligate the lodgment of geoscience data
and information in respect of reconnaissance and prospecting with the Council for Geoscience ("CG"). The Geoscience
Regulations require that the owners of onshore and offshore geoscience data and geoscience information must submit this
information to the CG.
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The Geoscience Regulations state that the lodgment of geoscience data and information should include several categories
of information such as geology, geochemistry, borehole profile logs and physical borehole core, and geophysical data. The
requirement to submit physical borehole material has been qualified to only be necessary upon a specific request by the CG as
well the fact that physical core materials drilled for research purposes may only be discarded after obtaining consent from the
CG. All physical materials recovered from boreholes drilled for infrastructure and development purposes can only be discarded
after consultation with the CG.
In terms of the Geoscience Regulations, entities which hold historical information relating to onshore and offshore
geoscience data and information are obliged to notify the CG that such data and information is in their possession. Following
such notification, the CG, at its expense, must arrange to collect the data and/or information. Lastly, the Geoscience Regulations
classify all geoscience data and information not related to prospecting and reconnaissance, preceding the coming into operation
of these Geoscience Regulations, as historical data, and the same provisions and time described above will apply.
The Geoscience Regulations provide for the disclosure and accessibility of geoscience data, geoscience information, and
prescribed services through digital and non-digital media as well as data requests that may be made directly to the CG. The
Geoscience Regulations contain confidentiality provisions relating to geoscience data and information, which are consistent with
the confidentiality provisions found in the MPRDA. However, the confidentiality provisions are subject to the provision that
geoscience data or information relating to a prospecting permit or reconnaissance may not be disclosed until the permit has
lapsed or been abandoned in line with section 30(5) of the MPRDA. Additionally, the Geoscience Regulations state that
geoscience data and information not relating to reconnaissance or prospecting are considered confidential and will only be
disclosed in limited circumstances.
Mineral Rights – Australia
In Australia, mining is regulated by the laws of the state in which the deposit is situated and the mining activity occurs. In
fiscal 2025, our only current mining-related activity in Australia was the Eva Copper Project, located in the State of Queensland.
Mining in Queensland is regulated by the Queensland MRA, the Mineral and Energy Resources (Common Provisions) Act 2014,
the MQSH Act, and the regulations, practice manual, operational policies and guidelines thereunder.
Generally, all mineral resources in Queensland are owned by the State of Queensland. These resources are managed by
the Queensland Department of Resources. Under the Queensland MRA, the Queensland Department of Resources requires all
large mining projects to apply for an applicable resource authority, being (as the case may be) an EP, ML and/or a mineral
development license. An EP allows the holder to carry out exploration activities to determine what minerals exist and their quality
and quantity in or under land or in the waters or sea above such land, in accordance with agreed work programs and subject to
compliance with prescribed security and financial obligations.
If the holder of an EP wishes to develop a mine to exploit discovered resources, application must be made for an ML. This
entitles the holder to machine-mine specified minerals and carry out activities associated with mining, including infrastructure to
support mining operations. The Queensland MRA and mining tenements issued thereunder contain provisions and conditions,
the breach of which may result in the imposition of a fine, imprisonment or the cancellation of the tenement.
Mining in Queensland is also subject to the Native Title Act. Any "future act" on land or waters that will affect native title
rights and interests is subject to native title processes intended to protect such rights and interests through a right to negotiate
enabling affected parties to reach agreement on the terms of consent concerning the proposed future acts, including monetary
compensation, employment and training, contracting opportunities and cultural heritage. These arrangements are captured in
Indigenous Land Use Agreements, which are then registered with the National Native Title Tribunal.
As part of the MAC acquisition, we have acquired the CSA copper mine on 24 October 2025, an operating underground
copper mine located near Cobar in the State of New South Wales. The MAC acquisition, our Australian operations will therefore
include assets in both Queensland and New South Wales. Mining in New South Wales is regulated by the Mining Act 1992
(NSW), the Work Health and Safety (Mines and Petroleum Sites) Act 2013 (NSW), and associated regulations, codes of practice
and guidelines.
Mineral Rights – Papua New Guinea
Mineral rights in PNG are regulated by the PNG Mining Act. The PNG Mining Act stipulates that all minerals are the
property of the PNG Government and, subject to the PNG Mining Act, all land is available for exploration and mining.
The PNG Department of Mining comprises three departments or authorities. The issuance and administration of mining
tenements under the PNG Mining Act is effected through the offices of the PNG MRA established under the PNG Mineral
Resources Authority Act 2018; mining operations are administered by the Chief Inspector of Mines under the PNG Mining
(Safety) Act; and mineral policy is administered by the PNG Department of Mineral Policy and Geohazards Management.
The permitting process can be very time consuming, and (subject to the applicable legislation) there is no assurance that a
mining tenement will be granted or extended. Mining tenements include:
•exploration licenses, issued for a term not exceeding two years, renewable on application for further two year terms subject
to compliance with expenditure and other conditions. Each license contains a condition conferring on the PNG Government
the right to make a single purchase up to 30% equitable interest in any mineral discovery under the license at a price pro
rata to the accumulated exploration expenditure;
•Mining Leases, issued for a term not exceeding 20 years, renewable on application for up to ten years at the discretion of
the PNG Minister for Mining after considering PNG Mining Advisory Board recommendations;
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•Special Mining Leases, issued for a term not exceeding 40 years, renewable on application for up to twenty years at the
discretion of the PNG Minister for Mining after considering PNG Mining Advisory Board recommendations and subject to
the provisions of any mining development contract which may have been entered into between the PNG Government and
the tenement holder;
•mining easements; and
•leases for mining purposes.
These tenements generally confer exclusive rights on the holder to exercise their rights thereunder. However, in PNG,
citizens have the right to carry out non-mechanised mining of alluvial minerals on land owned by them, provided that an alluvial
mining lease is obtained and provided there is not already a mining lease or Special Mining Lease over the subject land.
PNG exploration licenses contain a condition that, if there is a mineral discovery, the PNG State has a back-in right under
Section 17 of the PNG Mining Act. This right allows the PNG State at any time before the start of mining, to acquire a
participating interest of up to 30% in the discovery by paying a price equal to its pro-rata share of accumulated exploration
expenditures. Once this interest is acquired, the PNG State must contribute its pro-rata share of future exploration and
development costs unless otherwise agreed.
In addition, PNG mining legislation and mining tenements contain provisions and conditions, the breach of which may
result in the imposition of a fine, imprisonment or the cancellation of the tenement.
Almost all land in PNG is owned by a person or group of persons under customary ownership and is not generally overlaid
by landholder title. The customary owners of the land have in some instances been formally identified through the work of the
Land Titles Commission. However, there is often considerable difficulty in identifying landholders of a particular area of land
because land ownership may arise from both contract and inheritance, and because of the absence of a formal written
registration system.
Prior to commencing exploration, compensation for loss or damage must be agreed with the landholders. Prior to
commencing mining, written agreements must be entered into with landholders dealing with compensation and, in company with
the PNG Government as a party, a memorandum of agreement dealing with such other matters as the sharing of royalties and
other mining benefits among and between landholder groups and Provincial and local government entities.
Along with standard corporate and other taxes and levies, mining companies must pay royalties to the PNG Government
and a levy to the PNG MRA, based on production.
The Hidden Valley Mine MOA, which was executed in 2005, is currently under review, with a draft CDA presently with the
PNG State Solicitor for consideration prior to execution. Under the current MOA (and contained within the draft CDA), an agreed
share of the royalties paid by us to the PNG Government is allocated among the Morobe Provincial and local level governments
and various landowner groups. Also, the MOA (and draft CDA) contains agreed national content, localisation and social
performance plans, which address various aspects of procurement, business development, employment and training and other
community support.
A Wafi-Golpu CDA will be entered into in the course of the permitting of the Wafi-Golpu Project, pursuant upon the conduct
of a consultative Development Forum convened by the PNG Government at which all directly-affected landholder community
groups will be represented.
Since 2009, the mining regime in PNG has been the subject of a comprehensive ongoing review involving various PNG
Government agencies. In addition, PNG mineral policy and mining-specific sector policies have also been variously presented
for discussion and/or drafted and introduced, including a biodiversity offsets policy, a national oceans policy, a sustainable
development policy, an involuntary relocation policy, a national content policy, a gold bullion policy and a mine closure policy and
mining project rehabilitation and closure guideline.
The process and extent of PNG mining regime review and change escalated materially with the appointment of Hon James
Marape M.P. as Prime Minister of PNG in May 2019. Since that time, the PNG Government has strongly advocated a policy of
resource nationalism generally referred to as "Take Back PNG", including a review and restructuring of resource laws so as to
increase the PNG Government's share of the proceeds from mining, enhance landholder and provincial government equity
participation in mining projects, and promote direct involvement in mining and exploration by a state-owned entity ("SOE"). Until
this process is concluded, the ultimate form of the future PNG mining regime is uncertain.
Various draft revisions of the PNG mining regime have been circulated for comment and/or introduced, including:
•In June 2020 proposed revisions of the PNG Mining Act were circulated for comment, including an increase in the royalty
rate and changes to the terms of the PNG Government's option to acquire an interest in a mineral discovery, the
percentage extent of such option, the consideration payable for it, and the contributions to be made by the PNG
Government pursuant to it. Other proposed revisions included the introduction of a development levy and a waste fee, the
introduction of an obligation to maintain production at minimum prescribed levels, a prohibition on non-local “fly-in, fly-out”
employment practices, and the introduction of downstream processing obligations (including a national gold refinery and
bullion bank).
•In June 2020 the Mining (Amendment) Act 2020 (the "PNG Mining (Amendment) Act") was enacted, which requires the
real-time provision of production and mineral sales data to the PNG MRA. The PNG Mining (Amendment) Act also
amended the PNG Mining Act to provide that the PNG Government has the power to reserve land that is subject to an
expired, cancelled, surrendered or relinquished tenement. Wholly or majority PNG-owned entities, including an SOE, then
have a statutory priority in applying for a new tenement over the reserved land.
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•In July 2020 a proposed Organic Law on Ownership and Development of Hydrocarbons and Minerals and the
Commercialisation of State Businesses (the “PNG Organic Law") was tabled for reading in Parliament. The draft Organic
Law proposed material alterations to the legislative and regulatory regime governing mining in PNG, including the transfer
of ownership of minerals from the PNG Government to an SOE which would not be subject to the PNG Mining Act or the
regulation of the PNG MRA. It also proposed transforming the methodology of the PNG Government's participation in
mining operations from a concessionary to a production sharing regime, but was silent on the form and content of the
production sharing regime to be entered into, which arrangements it envisaged would be negotiated by the SOE on a case-
by-case basis. The PNG Organic Law was not progressed and it is presently uncertain if it will be adopted, or (if adopted)
whether or how the PNG Organic Law will be applied to our current operations and projects in PNG.
•In November 2021, the PNG Government announced it intended to set up a gold refinery and gold bullion repository
in-country as part of its downstream processing initiative. A National Gold Corporation Bill was tabled, proposing to
establish a statutory monopoly over gold refining whereby all refining of all PNG gold products would by force of law be
required to be performed exclusively by a refinery operated, nominated or appointed by the National Gold Corporation, and
compelling all PNG gold producers (including alluvial miners) by force of law to deliver their gold products to it for refining.
These provisions would have material commercial and legal implications for all producers. After very strong public
resistance, objections from PNG CORE and opposition from within government ranks also, the Bill was formally withdrawn
in June 2024 for further consideration of the issues. It is presently uncertain if the proposed or similar provisions will be
(re)introduced at some future time, or (if adopted) whether or how they will be applied to our current operations and
projects in PNG.
•In August 2023, the PNG Department of Commerce and Industry presented a draft "Papua New Guinea National Content
Policy for Resource Sectors 2023-2027" for public and industry consideration. The policy is designed as a roadmap to
provide an overarching and strategic policy directions and institutional framework to promote and facilitate greater national
participation and partnership in all resource development investments in PNG. It covers six key policy focus areas: (i)
Domestic procurement of goods and services; (ii) Supplier and entrepreneurship Development; (iii) Employment
Opportunities for Papua New Guineans; (iv) Skilled Workforce Development for Graduates; (v) Greater equity participation
by Papua New Guinean institutions and citizens; and, (vi) Oversight on investments on sustainable development for project
impacted landholder communities and the economy as a whole. "The Papua New Guinea National Content Policy for
Resource Sectors 2023” was officially launched in August 2024.
•In April 2024, a further proposed revision of the PNG Mining Act was circulated for comment, including the introduction of a
right to the PNG Government to acquire 30% equity in a project at no cost to the PNG Government, a provision requiring
that applicants demonstrate their financial capacity to develop the project as a condition precedent for grant of a mining
lease, including proof of readily available funds of no less than 50% of the projected capital costs of the development, and
an increase in mining royalties between the range of 5% and 10%. The proposed revisions were strenuously resisted by
PNG CORE on behalf of industry.
•In February 2025, the Minister for Mining introduced the PNG Draft Mining Bill 2025, which largely reflects the April 2024
proposal. Since that time, the PNG Government has indicated that is will initiate an independent economic assessment of
the proposals and thereafter engage with PNG CORE and other stakeholders.
It is currently uncertain if or to the degree the proposed revisions will be progressed and (if and to the degree they are
adopted) whether or how they will be applied to our current operations and projects in PNG. We continue to engage with the
PNG Government and relevant regulators on these matters, indirectly through the offices of PNG CORE and directly with the
PNG MRA and the DMPGM.
Health and Safety - South Africa
Health and Safety at mining operations in South Africa is governed by the MHSA, as well as the Regulations binding
thereunder. The objectives of the MHSA are listed in section 1 of the MHSA and included among others, the protection of the
health and safety of persons at mines, effective monitoring of health and safety conditions, promotion of a culture of health and
safety at mines, provision for enforcement of health and safety measures and provision of investigations and inquiries.
The MHSA and its regulations place upon an employer the duty to protect, as far as reasonably practicable, the health and
safety of both employees (which includes employees of independent contractors) performing work at a mine and non-employees
(such as visitors to a mine and the public who live in close proximity to the mine). "Employer” is defined in section 102 of the
MHSA as the “owner of a mine”, and in turn, an “owner “ includes the holder of the prospecting permit or mining authorisation
issued under the MPRDA.
The employer is ultimately responsible for ensuring that applicable provisions of the MHSA and binding regulations thereof,
are complied with to ensure the health and safety of persons, as far as reasonably practicable and to prevent damage to
property.
Importantly, the MHSA prescribes, among other things, general and specific duties for employers and other persons,
determines penalties for non-compliance with the MHSA and relevant binding regulations thereunder, and provides for employee
participation by requiring the appointment of health and safety representatives and the establishment of health and safety
committees. The MHSA also codifies the right of employees to refuse to work in dangerous conditions and the MHSA further
places an obligation on employees to protect their own health and safety, as well as the health and safety of other persons.
See “Integrated Annual Report for the 20-F 2025 – Social stewardship – An engaged workforce” on pages 154 to 165 and
"Integrated Annual Report for the 20-F 2025 – Social stewardship – Holistic health and wellness” on pages 141 to 153.
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The MHSI of the DMPR is responsible for the enforcement of the MHSA and relevant binding regulations thereunder. The
DMPR also plays an important role in the promotion of health and safety at mines. The MHSI comprises of a Chief Inspector of
Mines, Deputy General, Principal Inspectors of Mines for each region and various Senior Inspectors and Inspectors of Mines for
each region. Should employers or employees fail to comply with their obligations under the MHSA, the MHSI may take a number
of enforcement measures which may include the following:
•the issuing of statutory instructions (for example notices in terms of section 54 or section 55 of the MHSA) if an Inspector of
Mines has reason to believe that any occurrence, practice or condition at a mine endangers the health and safety of any
person at a mine, or alternatively if an Inspector of Mines has reason to believe that a provision of the MHSA has not been
complied with. A notice in terms of section 54 of the MHSA, may halt all mining operations undertaken at a mine or part
thereof. If a mine receives notices in terms of section 54 of the MHSA regularly, the production stoppages and the
additional costs incurred as a result thereof will not only affect the production results of a mine but also the reputation and
business of a mine. If, however, a notice in terms of section 54 of the MHSA has been issued unlawfully, the mine may
appeal the said notice to the Chief Inspector of Mines. The aforesaid appeal does not suspend the operation of the notice
issued in terms of section 54 of the MHSA. To suspend the operation of the notice in the above instance, a mine must
lodge an urgent application to the Labour Court (being the court with jurisdiction) requesting the suspension of the
operation of the notice issued in terms of section 54 of the MHSA;
•the suspension or cancellation of certificates of competency - the Chief Inspector of Mines may suspend or cancel
certificates of competency issued in terms of the MHSA if the holder of that certificate is guilty of gross negligence or
misconduct or has not complied with the MHSA or relevant binding regulations thereunder;
•recommendation for criminal prosecution - a Principal Inspector of Mines may recommend prosecution to the National
Director of Public Prosecutions if satisfied that there is sufficient admissible evidence that an offense has been committed.
Any person convicted of an offence in terms of the MHSA may be issued with a fine or sentenced to imprisonment as may
be prescribed; and
•Imposition of administrative fines - a Principal Inspector of Mines may, after considering the recommendation of an
Inspector of Mines and the written representations of the employer, impose an administrative fine for the failure to comply
with, amongst others, the provisions of the MHSA and the relevant binding regulations thereunder. In terms of Table 2 of
Schedule 8 to the MHSA, the maximum administrative fine which may be imposed on an employer is R1 million per
transgression. If a mine receives an administrative fine which has been issued unlawfully, the mine may lodge an
application in the Labour Court (being the court with jurisdiction) to review the decision to impose an administrative fine.
In addition to the above, the MHSI also institute investigation and/or inquiry proceedings in terms of the MHSA an accident
or occurrence at a mine, which results in the serious injury, serious illness or death of a person.
To address issues relating to occupational illnesses, injuries and compensation for such injuries or illnesses, South Africa
has established two statutory systems for the payment of compensation for occupationally related injuries and certain
occupationally related diseases, namely, COIDA and ODMWA. COIDA applies to the compensation of all occupational injuries
(including payment of compensation in the event of the death of the injured employee), whether or not it occurs in or outside the
mining industry. ODMWA applies to diseases which are defined as “compensatable diseases”, being primarily occupationally
related lung diseases like silicosis.
Notably, COIDA indemnifies the employer against claims by the employee or his/her dependents for damages incurred as
a result of occupational injuries and diseases. However, the Constitutional Court held in Mankayi v AngloGold Ashanti Limited
2011 (3) SA 237 (CC) that although COIDA applies to occupational diseases in general, COIDA does not apply in instances
where the disease in question is a compensatable disease in terms of ODMWA and which was contracted as a result of the
performance of “risk work” at a “controlled mine”. The Court further held that if an employee contracts a compensatable disease
as defined in ODMWA, the employee would still be entitled to claim common law damages from the employer. It should also be
noted that COIDA does not indemnify an employer against claims lodged by persons other than employees (i.e claims lodged by
independent contractors or other persons affected by mining operations) for damages incurred as a result of occupational
injuries or diseases.
In June 2022, the Minister released the draft MHSA Amendment Bill for public comment. The Minister published an
executive summary of the MHSA Amendment Bill, 14 October 2024. However, the MHSA Amendment Bill, 2024 has not yet
been tabled in Parliament. In terms of the MHSA Amendment Bill certain provisions of the MHSA will be amended. The MHSA
Amendment Bill contains a number of provisions which, if enacted in their present form, could have a material adverse effect on
our business, operating results and financial condition. The MHSA Amendment Bill provides for (among others things) an
increase in the monetary value of the fines that may be imposed in respect of instances of non-compliance, more direct
involvement of executives (particularly CEOs), stricter liability in instances of non-compliance, and changes to the obligations
relating to training and the formulation of training programs. The MHSA Amendment Bill also introduces a new offence of
corporate manslaughter, being that the employer will contravene or fail to comply with the MHSA if it fails to comply with a duty
in terms of the MHSA and if such conduct resulted in a person’s death or in serious injury or illness of a the person. The effect of
the provisions in the MHSA Amendment Bill are of that the defences on which the employer may rely to escape liability, are
limited.
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Health and Safety – Australia
In Queensland, where our Eva Copper Project is situated, the safety of employees, contractors and third parties
concerning mining operations is regulated by the MQSH Act and the MQSH Regulations. Risk is effectively managed when all
persons individually and as part of their respective workgroups and organisations take action to keep risk at an acceptable level,
being the conduct of operations so that the level of risk from the operations is within acceptable limits and as low as reasonably
achievable, taking into account the likelihood of injury and the severity of the injury. The MQSH Act was amended by the RSHLA
Act, with key amendments expanding safety obligations for mine operators including the requirement to implement critical
controls within safety and health management systems.
Workers or other persons at mines or persons who may affect safety and health at mines or as a result of operations, have
“safety and health obligations” under Division 2 of the MQSH Act. Persons including (a) (mining tenement) holder; (b) operator;
(c) site senior executive; (d) contractor; (e) designer, manufacturer, importer and supplier of plant for use at a mine; (f) erector
and installer of plant at a mine; (g) manufacturer, importer and supplier of substances for use at a mine; and (h) person who
supplies a service at a mine have “safety and health obligations” which are specified under Division 3 of the MQSH Act.
The objects of the MQSH Act are to protect the safety and health of persons at mines and persons who may be affected by
operations; and require that the risk of injury or illness to any person resulting from operations is at an acceptable level. Risk is
considered effectively managed when all persons individually, or as part of their respective workgroups and organisations, take
action to keep risk to an acceptable level; i.e., conducting operations so that the level of risk from the operations is within
acceptable limits and as low as reasonably achievable, taking into account the likelihood of injury or illness to the person, and
the severity of injury or illness. In some cases this is demonstrated by following applicable regulations or guidelines and
adopting stated measures, or where no regulation or guidelines are in place, by taking reasonable precautions, and exercises
proper due diligence.
The RSHQ is the independent regulator responsible for administering, monitoring and enforcing compliance with the
MQSH Act. Responsibility for prosecution of “serious offences” under the MQSH Act fall with the WHS Prosecutor. A “serious
offence” is committed where a person who has a safety and health obligation breaches it in circumstances where the breach:
•causes death or bodily harm, or the breach involves exposure of a person to a substance likely to cause death or grievous
bodily harm; or
•is an offence under the Industrial Manslaughter provisions of the MQSH Act; or
•amounts to an offence that may be prescribed by a regulation to the MQSH Act.
Other offences (i.e., non-serious offences) may be prosecuted by either the WHS Prosecutor or the chief executive officer
of RSHQ. Queensland legislation also allows any person to request that the WHS Prosecutor commence a prosecution against
another person in certain circumstances, i.e., when the person reasonably considers the other person has committed a “serious
offence" and no prosecution has been brought in relation to the act, in which instance the WHS Prosecutor has three months to
investigate and respond.
Where a person holds a safety and health obligation under the MQSH Act and fails to discharge this obligation, the
maximum penalty where the contravention leads to multiple deaths is 30,000 penalty units for a corporation; or 6,000 penalty
units or three years imprisonment for an offence committed by an officer of a corporation. Civil penalties may also be imposed
under the MQSH Act where a corporation or an officer/employee or agent of the corporation contravenes a civil penalty
obligation; civil penalties range between 500 and 1000 penalty units. At time of writing, 1 penalty unit = A$161.30.
Other persons who have specific obligations under the MQSH Act include health and safety representatives (elected by the
workers in Queensland mines), district worker representatives, and Inspectors and other officers. Where an appointee to these
positions reasonably believes a risk from operations may reach an unacceptable level, they may give a directive to any person
to take stated corrective or preventative action, or to suspend all or partial operations. Failure to comply with a directive may
lead to a penalty (up to 800 penalty units or two years imprisonment.
The legislation places obligations on the operator of a mine, the site senior executive and others to ensure that, among
other things, the risk to persons from operations is at an acceptable level and that safety and health management systems are
developed and implemented. The legislation contemplates that operators and site senior executives will be assisted by site
safety and health representatives elected by the workers at the mine site, site safety and health committees, District workers’
representatives and appointed inspectors, inspection officers and authorised officers with powers inter alia of site access,
inspection and seizure.
Significant penalties may be imposed if safety and health obligations under the Act are not appropriately discharged.
Health and Safety – Papua New Guinea
PNG has a significant mining industry, and a developing system of occupational health and safety. The PNG Mining
(Safety) Act is the principal legislation, which addresses a range of issues such as working hours, minimum safety and reporting
requirements. Other legislation and regulations also apply.
The PNG Mining (Safety) Act and the relevant binding regulations issued thereunder are currently the subject of
comprehensive ongoing review, which may result in changes which will affect our operations and projects in PNG. In 2021, the
DMPGM released the MWSH Bill and has subsequently proposed various other amendments to the PNG Mining (Safety) Act,
however has not enacted the MWSH Bill or other amendments.
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The MWSH Bill deals (among other matters) with the increase in monetary value of the fines which may be imposed in in
respect of instances of non-compliance, the more direct involvement of executives (particularly CEOs), the imposition of stricter
liability in respect of obligations under the PNG Mining (Safety) Act, and changes to obligations relating to training and
formulation of training programs. If enacted in its present form, the MWSH Bill will repeal and replace the PNG Mining (Safety)
Act.
The DMPGM proposed further one-on-one consultation with mining operations in 2023 but appears to have suspended the
consultation process and has not enacted the MWSH Bill or other amendments.
See above under "– Regulation – Mineral Rights – Papua New Guinea".
See “Integrated Annual Report for the 20-F 2025 – Social stewardship – An engaged workforce” on pages 154 to 165 and
"Integrated Annual Report for the 20-F 2025 – Social stewardship – Holistic health and wellness” on pages 141 to 153.
Laws and Regulations Pertaining to Environmental Protection - South Africa
In South Africa, environmental matters are regulated by national, provincial and municipal laws in line with each level of
government under South Africa's Constitution and relevant legislation. Key legislation includes the NEMA, the NWA, the Air
Quality Act, the National Environmental Management: Waste Act, the National Nuclear Regulator Act, 47 of 1999, the National
Environmental Management: Biodiversity Act, 10 of 2004, the National Heritage Resources Act, 25 of 1999, the Carbon Tax Act,
the Climate Change Act and the MPRDA.
This legislation commonly requires businesses whose operations may impact the environment to obtain permits,
authorisations and other necessary approvals. Businesses and authorities must also monitor compliance to ensure that the
conditions under these permits, authorisation and other approvals are fulfilled. In addition, the legislation may require
compliance with standards or levels that do not require authorisation and impose a duty of care on businesses to take
reasonable measures are implemented to prevent pollution or environmental degradation from occurring, continuing or
recurring.
NEMA
Section 24 of South Africa's Constitution is the cornerstone of South African environmental law. It affords every person the
right to an environment that promotes their health and well-being and places an obligation on the state to create legislation and
other instruments to give effect to this right taking into consideration the principles of sustainable development.
In accordance with this obligation, the Minister of Environmental Affairs and Tourism (as he was then) introduced the
NEMA. The NEMA is “framework legislation”; which provides the core principles and structures in terms of which all
environmental legislation and decisions are interpreted, administered and applied. These principles include the principles of
inter-generational equity, the polluter pays principle, the cradle to grave principle and the principle of sustainable development
(the “Section 2 Principles”).
Listed Activities and competent authorities
The NEMA introduces environmental management tools aimed at ensuring that the Section 2 Principles are incorporated
into all decisions that may have an effect on the environment. Chief among these tools is the environmental authorisation
process. Under section 24(1) of the NEMA, the Environment Minister may identify activities that may not commence without an
environmental authorisation (the “Listed Activities”).
The Environment Minister published the EIA Regulations and three lists of Listed Activities (the "Listing Notices"). The EIA
Regulations contemplate two application processes for an environmental authorisation: a "basic assessment" ( an abridged
process for lower-impact activities) and a "environmental impact assessment" ( a more detailed process for higher-impact
activities). Activities in Listing Notices 1 and 3 trigger a basic assessment process, while those in Listing Notice 2 require a full
scoping and environmental impact assessment. The decision period for granting or refusing environmental authorisation is
capped at 300 days, excluding any appeal process. However, due to administrative delays, this timeline is not always met.
The DMPR, the competent authority responsible for implementing and enforcing environmental law relating to prospecting
and mining activities, including issuing environmental authorisations. Any decisions by the DMPR under the NEMA and other
environmental management Acts are appealable to the DFFE.
Commencing a Listed Activity without an environmental authorisation is an offence, though applicants may seek
retrospective authorisation in terms of section 24G of the NEMA. The DMPR may reject a section 24G application, order
environmental rehabilitation or impose corrective actions. Even if authorisation is granted, the applicant must pay an
administrative fine (up to R10 million) and remains exposed to potential criminal liability which includes fines (up to R10 million)
and/or imprisonment up to 10 years. In addition, a convicted person may include be required to pay damages or penalties and/
or the costs of the prosecution. Directors may also be held liable for the same penalties and will need to overcome a reverse
onus provision to avoid liability.
Financial provision
Upon the cessation of mining operations or termination of the right, we must apply for a closure certificate. Until the
Minister issues a closure certificate, a mining right holder annually assesses the environmental liabilities of the mining operation
(including the pumping and treatment of extraneous water) and put up financial provision for the rehabilitation, closure and
ongoing post decommissioning management of negative environmental impacts. If the Minister grants a closure certificate, he or
she may release the financial provision but is entitled to retain part of the provision for future latent or residual liabilities. Under
the NEMLAA, any financial provision retained by the Minister must be transferred to an account managed by the Minister, or in
the case of insurance, the Minister must be able to access the funds directly. Notwithstanding this, we will remain responsible for
any such latent or residual liabilities should they arise. If such liabilities arise, the DMPR may elect to implement the measures
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using the retained funds and recoup any shortfall from us. We will have no control over the way such funds are utilised to
remedy the liability. If no liabilities arise, there is no mechanism in which we can reclaim these unused funds.
The Financial Provision Regulations, 2015 sought to rectify certain alleged shortcomings of guidelines (the "DMPR
Guidelines"), issued by the DMPR (as it was known at the time) by requiring the inclusion of preliminary and general costs in
the financial provision calculations, imposing VAT (at 15%) on the total amount, prohibiting the withdrawal of trust funds for
concurrent rehabilitation (even in circumstances where the financial provision exceeds the evaluated environmental liability) and
ceding a portion of the funds to the Minister as security for possible latent and residual post-closure environmental impacts.
The Financial Provision Regulations, 2015 impose much more stringent obligations on mining and prospecting rights
holders than was required under the DMPR Guidelines. As a result, the mining industry has expressed its opposition to the
Financial Provision Regulations, 2015 and the date by when existing prospecting and mining rights holders were required to
comply with the Financial Provision Regulations, 2015 has been indefinitely delayed until new regulations are published. Several
draft regulations have been published for comment, but no new final regulations have been published. Any prospecting and
mining rights applied for after the Financial Provision Regulations, 2015 came into effect are required to comply with the
Financial Provision Regulations.
The Financial Provision Regulations, 2015 apply to prospecting and mining operations. Processing residue stockpiles and
residue deposits created prior to 1 May 2004 does not currently require a mining permit or a mining right. As a result, financial
provision has not been required for these activities. Amendments to the MPRDA and NEMA, however, seek to incorporate these
activities within the ambit of the MPRDA and the requirements to put up financial provision. This may require us to put up more
financial provision for rehabilitation of these residue stockpiles and residue deposits. Even if these amendments are not
forthcoming, we have a duty of care responsibility to take measures to prevent pollution or environmental degradation arising
from these residue stockpiles and deposits.
See Item 5: "Operating and Financial Review and Prospects - Operating Results – Key factors affecting our results –
Electricity in South Africa – Climate Change, Environmental Factors and Carbon tax" for a discussion regarding carbon tax.
Duty of care
The NEMA requires any person who has caused, is causing or is likely to cause significant contamination to take
reasonable measures to address it. This obligation applies retrospectively and imposes strict liability. That is, we would be
responsible for implementing reasonable measures even if we were not responsible for causing the pollution or environmental
degradation. If we fail to implement the required reasonable measures, the competent authority — which includes the director-
general of the DFFE, the head of the provincial environmental department, the director-general of the DMPR or, since the
NEMLAA, a municipal manager — may issue a directive instructing that person to carry out specified measures. If the person
does not comply, the competent authority may apply to court for an order compelling various parties, such as those in control of
the activities at the time, property owners or those who failed to prevent the pollution or degradation, to contribute to the costs.
Enforcement
Environmental mineral and petroleum inspectors are responsible for monitoring and enforcing compliance with the NEMA
and environmental management acts. These inspectors are authorised to, among other things, conduct investigations, carry out
search and seizure operations and issue compliance notices.
Liabilities
Failing to comply with the NEMA or environmental management Acts, compliance notices, directives or permits, licences or
authorisations is an offence and may, upon successful prosecution, result in significant fines of up to R10 million and/or 10 years
imprisonment. In addition, it may result in damages claims, obligations to rehabilitate the environment, paying the costs of the
prosecution and even director and employee liability. Any person may use the relevant provisions in the NEMA to initiate the
prosecution of an entity, its directors and/or employees in their personal capacity.
Waste management
Under section 19 of the Waste Act, the Minister may publish a list of waste management activities that are likely to have a
detrimental effect on the environment. No one may commence or undertake a listed activity unless they comply with the norms
and standards created in terms of section 19(3) of the Waste Act or hold a waste management license. The list identifies
activities for which a waste management license is required. Activities in Category A require a basic assessment, those in
Category B require a scoping and environmental impact assessment, and those in Category C do not require a license but must
comply with published norms and standards.
Regulatory uncertainty surrounds management and re-processing of residue stockpiles and residue deposits created prior
to 1 May 2004. These historical residue stockpiles and residue deposits currently fall outside the scope of the MPRDA (and
therefore outside the jurisdiction of the DMPR) and, as such, it is not possible to obtain a mining right or a mining permit over
such residue stockpiles or deposits. There are draft amendments to the MPRDA which seek to remedy this defect. Currently,
historical residue stockpiles and residue deposits are regulated under the Waste Act insofar as they are considered “hazardous
waste”.
Other waste management facilities constructed and/or operated by our operations may also be subject to licensing
requirements, including hazardous waste disposal sites and central salvage yards.
Mines must also follow the management measures set out in the Regulations for Residue Stockpiles and Residue
Deposits. These regulations do not apply retrospectively to existing stockpiles and deposits if included in an approved EMPr but
impose costly liner and barrier requirements for new ones established after that date
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The Waste Act also regulates contaminated land, regardless of when the contamination occurred or whether it happened at
a different time from the activity that caused it. Authorities must assess and report on contaminated land identified as
investigation areas or reported by landowners. Depending on the risk level, authorities may direct monitoring, management or
site remediation measures.
Failure to comply with the provisions of the Waste Act may result in penalties similar to those discussed under the NEMA
above. See “Integrated Annual Report for the 20-F 2025 – Environment stewardship – Waste management” on pages 115 to
118.
Water use and pollution
The NWA regulates the management and water quality of water resources, including watercourses, surface water,
estuaries and aquifers to ensure the sustainability of all water resources in the interests of all water users.
It defines water use to include taking, storing or diverting water; stream flow reduction activities; controlled activities under
sections 37(1) or 38(1); discharging or disposing of waste into or near water resources; altering watercourses; removing
underground water for safety or operational reasons; and using water for recreation.
Authorities regulate water use through water use licenses, general authorisations and the continuation of lawful water uses
in place when the NWA took effect in October 1998. Most mining operations require a water use license, particularly for water
abstraction, storage, effluent discharge, diversions and infrastructure that could pollute groundwater. These licenses are hard to
obtain and involve lengthy application processes.
Mines must also comply with the water use regulations for mining in the Regulations on Use of Water for Mining and
Related Activities Aimed at the Protection of Water Resources, 1999, which were adopted under the NWA and restrict the
location of mining infrastructure and require the separation of clean and dirty water systems, along with proper water
management design.
The NWA also imposes a duty of care similar to the NEMA. Failure to comply may result in penalties similar to those under
NEMA.
Emissions
In South Africa, the National Greenhouse Gas Emission Reporting Regulations, 2016, require that we register our
operations that involve fuel combustion activities related to mining and quarrying in excess of 10MW along with certain other
activities associated with the mineral industry. We must report our GHG emissions and activity data in respect of these
operations in accordance with the Technical Guidelines for each of the relevant GHGs and the IPCC emission sources by 31st
March of each year. The Technical Guidelines are a companion to the National Greenhouse Gas Emission Reporting
Regulations, 2016 and describe the reporting methodology as specified in the NEMAQA Air Quality Act .
See Item 3: “Key Information - Risk Factors - Risks Related to ESG - Compliance with emerging climate change
regulations could result in significant costs for us” for a discussion regarding the laws governing GHG emissions.
Under the NEMAQA, companies conducting industrial activities listed in the Listed Activities and Associated Minimum
Emission Standards (“Listed Activities”) are required to obtain an atmospheric emission license (“AEL”) before commencing
operations.
An AEL is issued by the relevant licensing authority, typically a local municipality or provincial government, and sets out
conditions relating to emissions monitoring, reporting and the use of emission control technologies. License holders are
generally required to submit regular emissions data and compliance reports to the authorities.
Failure to obtain or comply with the terms of an AEL may result in administrative penalties, suspension or revocation of the
license or criminal prosecution under South African law.
Our operations in South Africa include activities that fall within the scope of the Listed Activities under NEMAQA.
Accordingly, we are required to, and do, maintain valid AELs for applicable sites. We are also required to comply with the
associated minimum emission standards, conduct periodic emissions monitoring and report results to the relevant authorities.
Carbon Tax Act
The South African government introduced a carbon tax under the Carbon Tax Act with effect from 1 June 2019. The
Carbon Tax Act (together with the Customs and Excise Act, which contains provisions related to the administrative arrangements
for the collection of carbon tax revenues by the South African Revenue Service) aims to reduce GHG emissions. For more
information regarding the Carbon Tax Act, see Item 3: “Key Information - Risk Factors - Risks Related to ESG - Compliance with
emerging climate change regulations could result in significant costs for us” and Item 5: "Operating and Financial Review and
Prospects - Operating Results – Key factors affecting our results – Electricity in South Africa" and " – Climate Change,
Environmental Factors and Carbon tax" for a discussion regarding carbon tax.
Climate Change Act
The Climate Change Act was signed into law on 23 July 2024. The Act came into effect on 17 March 2025 by the
President’s proclamation in the Government Gazette. However, the commencement of certain provisions of the Climate Change
Act has been deferred to a later date. As the deferred provisions are numerous, the Act remains largely inapplicable to many key
areas. The reason for deferring these specific provisions is that the DFFE is developing a set of regulations that will enable
implementation of these provisions. Some of the draft regulations are at an advanced stage of development and are expected to
be published for public input and comment soon.
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The Climate Change Act confirms that SETs will be set for GHG emitting sectors and sub-sectors which shall be reviewed
and revised every five years. It is anticipated that the SETs will become more stringent over time. The Minister responsible for
environmental affairs must identify GHG emitting activities and permissible GHG emission thresholds above which entities will
be allocated a carbon budget and need to submit a GHG mitigation plan. It is anticipated that transitional arrangements will be
developed which mirror the approach adopted under the Minimum Emissions Regulations published under NEMAQA.
Carbon budgets set out the GHG that may be emitted. At the time the carbon budget is allocated, all pollution prevention
plans contemplated under the NEMAQA and the National Pollution Prevention Plans Regulations, 2017 will be deemed to be a
GHG plan for the first 5-year cycle. The person to whom a carbon budget is allocated must implement the GHG plan, monitor
compliance with the GHG plan and evaluate and report their performance in terms of the GHG plan. If the report indicates that
the person failed, is failing or will fail to comply with the carbon budget, it will need to provide a description of the measures it will
implement in order to remain within the carbon budget.
The Minister responsible to environmental affairs may declare certain GHGs to be synthetic GHGs and specify if these
must be phased out or phased down and the timeframes by when this must be achieved. One particular concern is that organs
of state must review and if necessary amend “decisions” in order to ensure that the risks of climate change impacts and
associated vulnerabilities are taken into consideration; and give effect to the principles and objects of the Climate Change Act in
a review. These decisions may include existing administrative decisions such as environmental authorisations, atmospheric
emissions licenses, mining or production rights and tenders granted to bidders under power procurement programmes for coal
or gas. Before amending these decisions, the relevant organ of state must give the holder of such consents, approvals or
awards (“the Consents”)
(i)adequate notice of the proposed amendments to or withdrawal of Consents pursuant to the review; and
(ii)a reasonable opportunity to make representations regarding the amendments or withdrawal. If the relevant organs of
state fail to undertake the review, third parties such as non-governmental organisations (“NGOs”), may seek to compel
these organs of state to undertake the Review in respect of particular Consents or classes of Consents. The proposed
amendments to the Consents may have material implications on existing business and operations and may have an
adverse effect on investment.
Laws and Regulations Pertaining to Environmental Protection – Australia
In the State of Queensland, mining operations are subject to the Queensland EP Act and Environmental Protection
Regulations 2019. The Queensland EP Act has as its object the protection of Queensland’s environment while allowing for
development that improves the total quality of life, both now and in the future, in a way that maintains the ecological processes
on which life depends (ecologically sustainable development). The Queensland EP Act and Environmental Protection
Regulations prescribe the preparation and assessment of environmental impact studies for purposes of the issuance of EAs to
perform ERAs, which are assessed by the Queensland Department of Environment, Science and Innovation. It includes the
preparation and assessment of environmental impact studies under the Act, and the process of grant and administration of
Environmental Authorities.
The Eva Copper Project was initially granted an EA on 12 July 2012 following approval of an EIS and an Environmental
Management Plan (“EMP”). The Eva Copper Project has since undergone various amendments, both major and minor in
nature, with the current EA issued by the Queensland Department of Environment, Tourism, Science and Innovation on 23
October 2024. The Eva Copper Project is currently pursuing a further EA amendment, which is expected to conclude in 2026.
In addition, various other environmental legislation applies, including the EPBC Act and the NGER Act.
The EPBC Act is administered by the Commonwealth Department of Climate Change, Energy, the Environment and Water
(the "DCCEEW") and provides a legal framework to protect and manage nationally significant plants, animals, habitats and
places in Australia. Projects that could have a significant impact on Commonwealth protected matters must be referred to the
Commonwealth Minister for Environment who will determine whether the proposed action requires assessment and approval
under the EPBC Act. The decision to refer a project under the EPBC Act is a self-assessment process. The Eva Copper Project
does not hold any approvals under the EPBC Act.
Detailed self assessments of the Eva Copper Project’s impacts to MNES have been completed over the course of
2022-2025 as the configuration of the project has evolved. The most recent assessment (March 2025) confirmed previous self-
assessment outcomes being that the Eva Copper Project is unlikely to have a significant residual impact on any MNES.
Consequently, the risk to the Eva Copper Project as a result of not previously being referred to the Commonwealth Minister for
Environment is considered to be low. Referrals under the EPBC Act may be necessary to support future change to the project
and will be assessed and determined on a case-by-case basis.
The Australian Government is proposing changes to reform Australia’s national environmental laws, including the EPBC
Act. On 30 October 2025, the Australian Government’s Environment Protection Reform Bill 2025 was introduced to Parliament.
If passed, the law aims to deliver stronger environmental protection, more efficient project approvals, and greater accountability
and transparency. Key aspects of the Bill include introducing a national Environment Protection Agency, mandating disclosure of
emissions under the Government’s Safeguard Mechanism, ministerial powers to make National Environmental Standards, a
new offsets regime including new net gain and establishment of a Restorations Contribution Holder, removing duplication
between Commonwealth, state and territory approvals and assessment systems, and higher penalties for intentional and severe
breaches of environmental law.
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The NGER Act establishes the legislative framework for reporting GHG emissions, energy production and energy
consumption and GHG projects by corporations in Australia. The NGER Act makes registration and reporting mandatory for
corporations whose energy production, energy use or GHG emissions meet specified thresholds. Thresholds apply at facility-
level and corporate group level. Facilities or controlling corporations that exceed specified thresholds must register and report
annually to the Australian Clean Energy Regulator. Entities must follow detailed guidance for estimating and reporting GHG
emissions, energy production and energy consumption. This guidance is codified in the NGER (Measurement) Determination
2008, which outlines the methodologies and standards for compliance.
Disclosures under the NGER Act underpin Australia's climate policy, international reporting obligations, and a mechanism
(the “Safeguard Mechanism”) that provides a framework for Australia's largest emitters to measure, report and manage their
emissions. Key risks associated with non-compliance with the NGER Act include enforcement action by the Clean Energy
Regulator, civil penalties (including fines and public enforcement notices), adverse audit findings and regulator scrutiny, and
reputational risk associated with inaccurate or incomplete reporting noting that NGER data is publicly disclosed if above the
publication threshold (currently 50,000 tCO2-e).
In addition to GHG and energy reporting obligations, the NGER Act requires large facilities, whose net emissions exceed
the Safeguard Mechanism threshold, to keep their emissions at or below emissions baselines. The Safeguard Mechanism
applies to facilities with scope 1 covered emissions of more than 100,000 tonnes of carbon dioxide equivalent ("CO2-e") per
year. Reforms to the Safeguard Mechanisms came into effect on 1 July 2023 which apply a decline rate to facilities’ baselines so
that they are reduced predictably and gradually over time on a trajectory consistent with achieving Australia’s emission reduction
targets of 43% below 2005 levels by 2030, 62-70% below 2005 levels by 2035, and net zero by 2050.
Formal reporting for the project under the NGER Act has not yet commenced. As part of the Eva Copper Project feasibility
study, predicted emissions have been quantified to determine the potential applicability of, and any potential obligations under,
the Safeguard Mechanism.
A transitional Progressive Rehabilitation and Closure Plan has been prepared for the Eva Copper Project pursuant to
section 754 of the Queensland EP Act. This plan outlines how the project will progressively rehabilitate and eventually close the
site after mining activities have concluded. The plan is under review by the regulator.
In addition, in accordance with the Queensland EP Act, it is a condition of an EA for a resource activity that the holder must
not carry out, or allow the carrying out of, a resource activity under the authority unless:
•an Estimated Rehabilitation Cost ("ERC") decision is in effect for the resource activity when the activity is carried out;
•the holder has paid a contribution to the scheme fund or given a surety for the authority under the MERFP Act; and
•the holder has complied with the requirements under the the MERFP Act for paying a contribution to the scheme fund, or
giving a surety for the authority, as required from time to time.
An ERC decision and associated surety is currently in place for activities being undertaken in relation to the relevant
mining leases. Revised ERC applications will need to be prepared and determined from time to time to authorise disturbance
activities prior to the commencement of further construction and mining activities. As progressive rehabilitation is completed, the
ERC may be adjusted to reflect the reduced liability.
Sustainability-related disclosures and claims are subject to the general prohibitions against misleading and deceptive
conduct under the Corporations Act and the Australian Securities and Investments Commission Act 2001 (Cth). These
provisions apply to both mandatory climate-related disclosures and voluntary sustainability statements made in investor
communications, product disclosures, websites, and other public materials. ASIC Regulatory Guide 280 – Sustainability
Reporting (RG 280) outlines its expectations for entities making sustainability claims, including the requirement that such claims
be factually accurate, based on reasonable grounds, and supported by verifiable evidence. ASIC also refers entities to
Information Sheet 271 – How to Avoid Greenwashing, which provides practical guidance on substantiating sustainability-related
representations. ASIC has emphasized that sustainability claims must be clear, not overly broad or unqualified, and must reflect
actual investment practices or operational realities. Misleading claims may expose entities and their officers to enforcement
action, reputational damage, and stakeholder litigation.
We will also be subject to the Australian Sustainability Reporting Standard which came into effect in January 2025 - refer to
Item 3D: "Risk Factors - Risks Related to ESG – Climate change may present physical and transition risks that could materially
and adversely affect our operations, profitability, and long-term sustainability".
Laws and Regulations Pertaining to Environmental Protection – Papua New Guinea
The PNG Environment Act and various related regulations and guidelines regulate the impact of industry and other
activities on the environment and sets out the environmental permitting requirements for developments, including mining
projects. The PNG Environment Act regulates discharges to air, land and water, and sets out the requirements for proponents to
obtain an EP for the construction, operation and closure of prescribed activities having the potential to cause environmental
harm. In most cases, a single, project-comprehensive EP is issued by the Managing Director of CEPA under the provisions of
the PNG Environment Act, and an annual administration fee is payable for this permit.
The PNG Environment Act requires a person or company that intends to carry out a proposed Level 3 activity to prepare
and submit an Environmental Inception Report (“EIR”). This requirement should be fulfilled prior to carrying out a detailed
environmental impact assessment and submitting an EIS. The EIR is intended to identify, at an early stage, all the potential
environmental impacts that need to be addressed. It is effectively a scoping document for the preparation of the EIS, and also
assists with commencement of the essential consultation process with all relevant stakeholders.
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An EIS is required for activities that are likely to have a significant adverse impact on the environment and other socio-
economic and/or cultural heritage aspects. This EIS must be lodged with CEPA for assessment, which includes a public review
and referral phase. For large projects, the review process may also involve an independent peer review.
An EIS provides a full documentation of all environmental and social issues and committing to the employment of relevant
mitigation measures in relation to the development activity. Typically, it addresses such matters as:
•overview of proposal;
•description of proposed activity;
•characteristics of receiving environment (physical, biological and social);
•waste minimisation; and
•environmental management, monitoring and reporting.
The PNG Government uses the EIS in accordance with statutory processes as the means to assess a project's impacts
and benefits, and to decide whether the PNG Environment Minister should grant approval in principle for the project under the
PNG Environment Act. Thereafter, the Managing Director of CEPA may grant a Level 3 environment permit for the activity. The
EP presents the conditions with which we must comply, and reports outlining our performance against each condition are
provided to CEPA annually.
In 2010, the PNG Government engaged the Scottish Association for Marine Science ("SAMS") to conduct an independent
assessment of DSTP systems in PNG with consideration to international best practice, and to prepare the guidelines resulting
from this assessment (referred to as "SAMS 2010"). SAMS 2010 are referenced in the PNG Government’s Terms of Reference
for an EIS for DSTP projects.
An EIS was submitted to CEPA on 25 June 2018 and an EP for the Wafi-Golpu Project was issued on 18 December 2020.
An EP is normatively a single, project-comprehensive document which presents all the conditions with which we must comply,
and the issued permit includes conditions relating to DSTP. An annual administration fee is payable and reports outlining our
performance against each condition must be provided to CEPA annually.
The PNG Mining Act and PNG Environment Act do not deal expressly with mine closure and environmental rehabilitation,
which matters are dealt with by means of PNG MRA and CEPA policies. The existing closure policy is the “Mining Project
Rehabilitation and Closure Guidelines” issued in 2019, which stipulates “It is a primary duty of a tenement holder to plan,
implement and fund mine and mine-related site rehabilitation and closure in accordance with the principles of sustainable
development, including preventative measures for the protection of the environment, communities, and human and wildlife
health and safety”. The policy envisages:
•early and continuous mining project rehabilitation and closure planning;
•early development and tabling of a rehabilitation and mine closure plan and regular updating of the plan over the life of the
mine; and
•tenement holders will provide adequate and accessible financial assurance for implementing mining project closure
obligations that is supported by independent expert review. This assurance can take various forms, including letters of
credit, securities and guarantees and trust funds, alone or in combination.
Cultural heritage sites are protected under the PNG Conservation Areas Act 1978, which regulates the conservation of sites
having particular historic, scientific and social importance in coordination with the provisions of EPs issued under the PNG
Environment Act, and archaeological permits issued by the PNG National Museum and Art Gallery.
Potential Changes to PNG Environment Laws
A process of mining regime review is underway within PNG and a number of environmental matters are under
consideration. These include a Biodiversity Offset Policy (which anticipates biodiversity offset payments to support biodiversity
incentives) and a National Oceans Policy.
Harmony's operations and projects in PNG will potentially be affected by changes to PNG environmental laws, and
Harmony continues to engage with the PNG Government on these matters through the offices of the PNG CORE and directly
with CEPA and the the PNG MRA in relation to PNG mining legislation, mining leases and mine closure planning. See Item 3D
“Risk Factors – Risks Related to ESG – We are subject to extensive environmental regulations in the countries in which we
operate, and compliance costs, regulatory changes, and potential non-compliance could have a material adverse effect on our
business, operating results and financial condition - Papua New Guinea”.
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Labour Relations
South Africa
Employee relations in South Africa are guided by employment legislation, most notably the Labour Relations Act, 66 of
1995, as well as internal policies regulating union recognition. Harmony’s employment relations is predicated on inclusion and
collaboration. A South African policy framework referred to as the Employee Relations Framework Policy guides mine-based
recognition agreements. In South Africa, five trade unions are active at company level. For any of these trade unions to be
recognised at an operation, a minimum of 20% representation of employees at a specific operation is required. As at fiscal year-
end, the recognised trade unions and their corresponding representation at company level were as follows: the National Union
of Mineworkers (at 50.28%); the Association of Mineworkers and Construction Union (at 30.26%); the United Association of
South Africa (at 4.79%) Nationa Union of Metalworkers of South Africa (at 6.62%) and Solidarity (at 2.13%). Approximately 94%
of our South African workforce belong to a recognised trade union. On 4 April 4 2024, Harmony announced the acceptance of a
five-year wage agreement by the unions, effective from 1 July 2024. See “Integrated Annual Report for the 20-F 2025 – Social
stewardship – An engaged workforce” on pages 154 to 165.
Australia
Employee relations in Australia are regulated by a combination of federal and state statutes that stipulate minimum
standards and provide for collective bargaining and action. All employment contracts are based on the Australian Fair Work Act,
28 of 2009 and the National Employment Standards.
In Queensland, there are a number of well-established mining trade unions, particularly in the coal and energy sectors. At
present, our Australian workforce is not unionised. However, if the Eva Copper Project moves into the development and
operational phases, we expect a portion of our workforce to become unionised; moreover unions could in the future initiate
enterprise bargaining under the Australian Fair Work Act 2009 or under the Queensland Industrial Relations Act 2016, which is a
formal process in which an employer and a group of employees (usually represented by unions) negotiate a legally binding
enterprise agreement. This process of unionisation may also be further prompted by the possible passage of a proposed
Queensland Industrial Relations and other Legislation Amendment Bill 2022.
Papua New Guinea
Employee relations in PNG are regulated by the PNG Employment Act of 1978 and the PNG Employment of Non-Citizens
Act 1978. Individual contracts are entered into, and the workforce is not unionised. Wages are guided by independent market
research that compares mining, oil and gas companies in the region.
In August 2024, "The Papua New Guinea National Content Policy for Resource Sectors 2023” was officially launched by
the PNG Department of Commerce and Industry, one policy area of which is “employment opportunities for Papua New
Guineans”.
Industrial relations at Hidden Valley have been established through regular dialogue between management and employees
via the Employee Relations Committee. In addition, Hidden Valley mine employment is guided by the Employment and Training
Plan appended to the Hidden Valley MOA dated August 2005 between Morobe Consolidated Goldfields Limited, the PNG
Government, provincial and local governments and the Landowner Association. The Hidden Valley MOA requires that, as far as
is reasonably possible, preference in training and employment is given to local and landholder candidates before individuals
from other provinces or countries. Compliance with this agreement is a critical issue in maintaining Hidden Valley mine’s license
to operate.
Intellectual Property
Harmony is not dependent on intellectual property (including patents or licenses), industrial, commercial or financial
contracts (including contracts with customers or suppliers) or new manufacturing processes for the conduct of its business as a
whole.
Seasonality
Subject to other factors and unforeseen circumstances, in the third quarter production is generally lower than production
during the rest of the year as a result of the ramp-up of operations after annual holiday production declines.
Raw Materials
Harmony uses chemicals, including cyanide, hydrochloric acid and caustic soda, as key reagents in the production of gold.
These chemicals are available from a limited number of suppliers and with the exception of cyanide do not represent a material
portion of the Company’s costs. Given the challenges associated with suppliers, ageing production plants and reliability thereof,
Harmony is currently experiencing continued interrupted supply of the foregoing stated reagents as well as other critical
consumables utilised in the production of gold across our global operations. The latter has negatively impacted Harmony’s
purchasing power and security of supply. As a result of sourcing from third-party raw materials suppliers importing consumables
internationally, the security of supply is at a higher premium. Additionally, our stocking strategies account for potential lead time
variation and supply constraints, thus minimizing the risk of changes in the marketplace. While commodity pricing is subject to
volatility over time, we believe our contractual terms which include rise and fall clauses are dynamic enough to mitigate the
market movement volatility.
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An abrupt increase in global trade tensions, along with a sharper-than-expected slowdown in global economic growth
caused significant disruptions in financial markets and the demand for key commodities. Additional factors impacting commodity
prices include trade and economic policy uncertainty, supply disruptions, and rising global average temperatures with weather-
related shocks. While some commodities reached higher price levels, there were certain commodities that displayed bearish
trends. In the precious metal market, gold prices reached a record high in 2025, driven by growing economic uncertainty and
heightened trade tensions. The industrial metal market exhibited mixed trends with aluminium prices reaching elevated levels
due to front loaded demand ahead of a US tariffs increase in mid-March 2025, whilst copper prices strengthened earlier in the
year before weakening rapidly as trade tensions escalated and the global growth outlook deteriorated. Nickel prices decreased
to their lowest level since 2020 due to rising output levels and increased London Metal Exchange ("LME") warehouse stocks,
whilst lead prices decreased amid improved supply conditions. Energy prices, which serves as a major contributing factor in the
production of key gold producing chemicals such as cyanide, caustic soda, hydrochloric acid and other reagents, decreased
during 2025. The price of brent crude oil declined sharply due to policy uncertainty and rising trade tensions. Natural Gas prices
decreased in 2025 following announcements of large trade tariff increases, along with weaker-than-expected demand amid a
global economic shutdown. Furthermore, soft commodity prices remain a concern, along with the impact on food inflation as
ongoing conflict and more frequent weather extremes driven by climate change are subsequently pressuring food prices. In
addition, the rapid termination of funding to humanitarian food sectors in 2025, along with escalating economic tensions and
weaker growth prospects are key drivers of food insecurity in 2025. Keeping the above in mind, while the majority of
commodities reached high price levels due to heightened global trade tensions, there are a number of key commodities that
decreased due to growing economic and policy uncertainty and increased supply. Item 3: "Key Information - Risk Factors –
Market Risks - Rising inflation and geopolitical risks may have a material adverse effect on our business, operating results and
financial condition”.
Land Expropriation
South Africa
In December 2017, during its national conference, the ANC resolved that as a matter of policy, the ANC should pursue the
expropriation of land without compensation, provided that such expropriation is carried out without destabilizing the agricultural
sector, endangering food security or undermining economic growth and job creation. In February 2018, the National Assembly
assigned the Constitutional Review Committee (“CRC”), to review section 25 of South Africa’s Constitution and other relevant
clauses to make it possible for the state to expropriate land in the public interest without compensation. On 4 December 2018,
South Africa’s Parliament adopted the CRC’s report dated 15 November 2018 in which it recommended that section 25 of South
Africa’s Constitution be amended to make explicit that expropriation of land without compensation is a legitimate option for land
reform. On 13 March 2019, the CRC announced that the work to amend section 25 of South Africa’s Constitution would not be
finished before the South African general elections in May 2019 and that consequently the matter would be taken up by
Parliament after the elections. In the event that the CRC recommends a Constitutional amendment in favour of expropriation,
various procedural milestones would need to occur, including a bill amending section 25 of the Constitution approved by a
majority of the National Assembly as well as six of the nine provinces of the NCOP and signed by the President, among others.
The legislative process to give effect to the proposed Constitutional amendment, has not yet been finalised. The National
Assembly re-established the Ad-Hoc Committee tasked with initiating and introducing the legislation required to amend Section
25 of the Constitution in 2020. The Ad-Hoc Committee engaged in a public participation process which consisted of public
hearings that took place from December 2019 to the end of February 2020. These public hearings were held in the nine
provinces. The Ad-Hoc committee released the report on its findings on the public participation process on 16 April 2021. In a
media statement on 16 April 2021, the Ad-Hoc Committee advised that it had adopted the report and in a subsequent media
statement on 8 September 2021, it advised that both the report and the Bill would be sent to the National Assembly for
consideration.
The Draft Constitution Eighteenth Amendment Bill was published for comment at the end of 2019. The aim of the Draft
Constitution Eighteenth Amendment Bill is to amend the Constitution of the Republic of South Africa, 1996 so as to provide that
where land and any improvements thereon are expropriated for the purpose of land reform, the amount of compensation
payable may be nil. The Draft Constitution Eighteenth Amendment Bill failed to receive the required two-thirds approval of the
National Assembly in December 2021 and the proposed Amendment Bill is no longer being pursued.
In 2019, prior to the introduction of the Draft Constitution Eighteenth Amendment Bill, a draft expropriation bill (the “Draft
Expropriation Bill”) was published for public comment by the South African Minister for Public Works (the “Minister for Public
Works”), which would allow the state to expropriate land without compensation where doing so would be for a public purpose or
in the public interest. In determining to expropriate land without compensation, this legislation would also require the
consideration of “all relevant circumstances”, which include, among other things, whether the land is held purely for speculative
purposes, is owned by the state or is abandoned. Following significant comments raised by the public on the Draft Expropriation
Bill, in October 2020, a new draft expropriation bill (the “New Draft Expropriation Bill”) was introduced by the Minister for
Public Works of South Africa. The New Draft Expropriation Bill was approved by the National Assembly on 28 September 2022.
It has been referred to the NCOP for consideration, and the public was invited to comment and make written submissions on the
New Draft Expropriation Bill by 23 June 2023.
On 19 March 2024, the NCOP passed the New Draft Expropriation Bill but resolved to return the Bill to the National
Assembly with proposed amendments. Following a meeting of the National Assembly, the amended Bill was published and sent
to the President on 27 March 2024 for assent into law. The President does have the ability to refer the Bill to South Africa's
Constitutional Court for a determination on the constitutionality of any of its provisions if he deems this necessary. In addition,
should the President assent to the Bill, it may be open to constitutional challenges brought in South Africa's courts.
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While the South African government has stated that it does not intend to nationalise mining assets or mining companies,
certain political parties have stated publicly and in the media that the government should embark on a program of
nationalisation. For instance, the ANC has adopted two recommended approaches to interacting with the mining industry. While
the ANC has rejected the possibility of mine nationalisation for now, the first approach contemplates, among other things,
greater state intervention in the mining industry, including the revision of existing royalties, the imposition of new taxes, royalty
tax and an increase in the South African government’s holdings in mining companies. The second approach contemplates the
South African government taking a more active role in the mining sector, including through the introduction of a state mining
company to be involved in new projects either through partnerships or individually.
On 24 January 2025, the Expropriation Act 13, 2024 (“Expropriation Act”) was assented to by the President of South
Africa and has been signed into law. However, the date for its commencement via proclamation in the Government Gazette
has not yet been set. The Expropriation Act allows the South African Government, subject to due process being followed, to
expropriate land without compensation where doing so would be for a public purpose or in the public interest. Pursuant to
section 12(3) of the Expropriation Act, land which falls within one of the following categories may be subject to expropriation
without compensation:
•land not in use, with the owner’s primary purpose not being development or income generation, but benefiting from
appreciation in market value;
•land held by an organ of state, not used for core functions, not reasonably likely to be needed for future activities, and
acquired without consideration;
•land which the owner has abandoned by failing to exercise control over it despite being reasonably capable of doing so;
and
•land where the market value is equivalent to or less than the present value of direct state investment or subsidy in its
acquisition and beneficial capital improvement.
Section 5(3) of the MPRDA provides a statutory right of access for the mining right holder to the mining area for the
purposes of conducting mining operations and does not require the holder to own the land on which it conducts operations.
Taxation
South Africa
The former President, Jacob Zuma, appointed the Davis Tax Committee to look into and review the current South African
tax regime, including the mining tax regime. The committee’s first interim report on mining, which was released for public
comment on 13 August 2015, proposed no changes to the mining tax royalty regime, but recommended the discontinuation of
the upfront capital expenditure write-off regime in favour of an accelerated capital expenditure depreciation regime. In addition,
the report recommended retaining the so called “gold formula” for existing gold mines only, as new gold mines are unlikely to be
established in circumstances where profits are marginal or where gold mines would conduct mining of the type intended to be
encouraged by the formula. The Davis Tax committee also recommended the phasing out of additional capital allowances
available to gold mines in order to bring the gold mining corporate income tax regime in line with the tax system applicable to all
taxpayers. In December 2016, following a period of public comment, the committee issued its second and final report to the
Minister of Finance, which largely reaffirmed the Davis Tax committee’s initial recommendations. The final reports were
published in November 2017. The South African National Treasury will continue to consider the committee’s final
recommendations. It is not clear at this stage which, if any, of the recommendations will be adopted as legislation. Such
legislation could, however, have a material adverse effect on our business, results of operations and financial condition.
On 31 July 2020, the South African National Treasury published for public comment the 2020 Draft Taxation Laws
Amendments Bill which proposed, amongst others, amendments to disallow contract miners from benefiting from the
accelerated capital expenditure allowance and the elimination of the Minister of Finance’s discretion to uplift the ring-fencing of
capital expenditure per mine. Various stakeholders raised issues with the draft bill during the public consultation period. The
Taxation Law Amendment Act, 23 of 2020 came into force on 20 January 2021. The amendments proposed in the Bill relating to
contract miners and the Minister of Finance's discretion to uplift the ring-fencing of capital expenditure per mine were not
included in the final Act and no substituted legislation has been proposed since then.
On 11 December 2020, the Minister published the Housing and Living Conditions Standard, which requires us to revise our
current housing and living condition plans in terms of its SLPs, which could result in increased costs. See Item 4: "Information on
the Company – Business Overview – Regulation – Mineral rights – South Africa – Housing and Living Standards".
Assessed Losses
In line with the 2020 Budget announcement, government broadened the corporate income tax base in terms of the
Taxation Laws Amendment Act, No 20 of 2021, by restricting the offset of the balance of assessed losses carried forward to 80
percent of taxable income, which came into effect for years of assessment ending on or after 31 March 2023.
To the extent that the balance of assessed loss exceeds 80 percent of current-year taxable income, companies are able to
set off the higher of R1 million or 80 percent of taxable income when calculating their tax liability. Stated differently, the assessed
loss balance can be set off against 80 percent of taxable income and the balance of the assessed loss is carried forward and
remains deductible in future years. The remaining assessed loss that is not utilised in any given year may be carried forward
indefinitely as previously. This limitation does not apply to assessed capital losses, which in most cases remain fully available for
set-off against capital gains of the taxpayer.
In the case of mining companies, the legislation has been clarified to state that the deduction of the mining capital
expenditure is calculated after the set-off of the assessed loss. The balance of unredeemed capital expenditure will be carried
forward to the following year of assessment.
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If the current year’s taxable income calculation results in an assessed loss before taking into account an assessed loss
carried forward from the previous year of assessment, the loss limitation rule does not apply. In such a case the full amount of
the current year’s assessed loss is added to the previous year’s assessed loss and the entire aggregate balance of assessed
loss is carried forward to the following year of assessment. The restriction will not apply should a company have taken steps to
liquidate.
Base Erosion and Profit Shifting
The South African Government is fully committed to implement the Inclusive Framework of the OECD relating to Base
Erosion and Profit Shifting that were developed by the OECD/G20 countries even though it is not a member country on the
basis that South Africa is an early adopter of the relevant measures. Consistent with this approach, it has not only implemented
and strengthened the rules relating to the ability to deduct interest, but it has also widened the scope of the transfer pricing rules
to include associated enterprises. In addition it also strengthened the laws relating to hybrid equity and hybrid interest and the
returns from these instruments.
South Africa is also a signatory to the Multilateral Convention to Implement Tax Treaty related Measures to Prevent Base
Erosion and Profit Shifting. In this context the so-called The Multilateral Instrument was incorporated into South African tax law
with effect from 1 January 2023. Among other things South Africa adopted the Principal Purpose Test to deal with treaty abuse.
In addition, South Africa also signed the so-called Pillar 1 and Pillar 2 proposals that are aimed to reduce opportunities for
tax planning and tax avoidance for multinational entities by limiting tax competition and the place where taxes are in fact paid.
Effectively Pillar 1 aims to allocate business profits based on actual business activities in a specific country, whereas Pillar 2
aims to establish a minimum global tax rate of 15%.
The Global Minimum Tax Act 2024 became effective on 24 December 2024 and applies to Harmony's 2025 year of
assessment. A preliminary calculation was prepared on the June 2025 South African results and Harmony in South Africa is
excluded under one of the safe harbour provisions, therefore zero top up tax is expected. The purpose of the legislation is to
enable South Africa to impose a multi-national top-up tax at a rate of 15% on the excess profits of in-scope Multinational
Entities. It applies to these groups if there consolidated annual revenues in at least two out of the last four years are equal to or
exceed Euro 750 million, which is applicable to the Harmony Group.
Australia has enacted similar legislation which is effective from the 2025 tax year. A preliminary analysis was undertaken
for PNG and Australia for fiscal 2025 and zero top up tax is expected.
Renewable Energy
South Africa is not only committed to reduce the carbon footprint consistent with the OECD Guidelines, but it has also
introduced additional measures to increase the carbon tax over the next few years. In addition and to cater for constant
loadshedding, it introduced measures to incentivise taxpayers to invest in renewable energy projects by allowing an allowance
of up to 125% if the project is brought into use before 1 March 2025. Although none of the projects were brought into use before
this date, the expenditure will still qualify for a 100% deduction in terms of the South African unredeemed capital expenditure
rules when brought into use. See “– Laws and Regulations Pertaining to Environmental Protection - South Africa” above.
C. ORGANISATIONAL STRUCTURE
Harmony is a holding company with its significant ownership interests organised as set forth in Exhibit 8.1 "Significant
Subsidiaries of Harmony Gold Mining Company Limited”. Also see note 2.1 “Consolidation” of our consolidated financial
statements, set forth beginning on page F-1.
D. PROPERTY, PLANT AND EQUIPMENT
The information set forth under the headings:
•“– Delivering profitable ounces – Performance by operation” on pages 46 to 84; and
•“– Environment stewardship – Building a lasting positive legacy” on pages 88 to 90.
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference. Also see note 14 “Property, Plant and
Equipment” and note 32 “Cash Generated by Operations” of our consolidated financial statements, set forth beginning on page
F-1.
Also see Item 4: “Information on the Company - Business Overview - Regulation - Laws and Regulations Pertaining to
Environmental Protection - South Africa”, “- Laws and Regulations Pertaining to Environmental Protection - Papua New Guinea"
and “- Capital Expenditures” and Item 5: “Operating and Financial Review and Prospects - Liquidity and Capital Resources".
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MINERAL RESOURCE AND MINERAL RESERVE SUMMARY DISCLOSURE
Harmony is providing disclosure in compliance with Subpart 1300 (17 CFR 229.1300) of Regulation S-K (“Regulation S-K
1300”) for its fiscal year ending 30 June 2025.
Harmony has developed a process to determine which properties are material to its business or financial condition for
purposes of the individual property disclosure requirements of Item 1304 of Regulation S-K 1300. The key considerations taken
into account by Harmony in its materiality assessment include qualitative and quantitative factors in the context of our overall
business and financial condition. The materiality assessment covers all of our mining properties (regardless of the stage of the
mining property) and all of its mining and related activities from exploration through extraction, and is reviewed by us on an
annual basis. Based on the above considerations, Harmony has determined that, as of 30 June 2025, its material properties for
purposes of Regulation S-K 1300 are Doornkop, Free State Surface Operations, Joel, Kalgold, Kusasalethu, Moab Khotsong,
Mponeng, Target, Tshepong North, Tshepong South, Mine Waste Solutions, Hidden Valley, Wafi-Golpu Project and the Eva
Copper Project.
With respect the Eva Copper Project, an updated Technical Report Summary ("TRS") has been prepared by the relevant
Qualified Person (“QP"), and are filed as Exhibit 96.14, hereto. With respect to Doornkop, Free State Surface Operations, Joel,
Kalgold, Kusasalethu, Moab Khotsong, Mponeng, Target, Tshepong North, Tshepong South, Mine Waste Solutions, Hidden
Valley, and the Wafi-Golpu Project, Harmony has determined that, as of 30 June 2025 (i) there have not been any material
changes to the Mineral Resource or Mineral Reserve reported in the TRSs for these properties and (ii) all material assumptions
and information pertaining to the disclosure of the Mineral Resource and Mineral Reserve for Doornkop, Free Sate Surface
Operations, Joel, Kalgold, Kusasalethu, Moab Khotsong, Mponeng, Target, Tshepong North, Tshepong South, Mine Waste
Solutions, Hidden Valley, and the Wafi-Golpu Project, remain current in all material respects, based on all facts and
circumstances, both quantitative and qualitative. As a result, the previously filed TRSs for Doornkop, Free Sate Surface
Operations, Joel, Kalgold, Kusasalethu, Moab Khotsong, Mponeng, Target, Tshepong North, Tshepong South, Mine Waste
Solutions, Hidden Valley, and the Wafi-Golpu Project are re-filed as Exhibits 96.9, 96.3, 96.2, 96.6, 96.8, 96.4, 96.5, 96.1, 96.12,
96.13, 96.7, 96.10 and 96.11, respectively, hereto.
Mineral Resources and Mineral Reserves are estimates that contain inherent risk and depend upon geologic interpretation
and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. For additional information
on the risks and uncertainties associated with Harmony’s mining properties, see Item 3: "Key Information – Risk Factors".
Harmony’s South African operations include nine deep-level mines, an open pit mining operation and several surface
retreatment facilities. Combined, these account for gold Mineral Resources (exclusive of Mineral Reserves) of 67.4 million
ounces and gold Mineral Reserves of 21.0 million ounces at 30 June 2025.
Harmony has three underground mining operations in the West Rand: Doornkop, Kusasalethu and Mponeng. As at
30 June 2025, their combined Mineral Resources (exclusive of Mineral Reserves) were 27.9 million ounces and the combined
Mineral Reserves were 6.5 million ounces. Harmony has one underground mining operation in the Klerksdorp goldfield: Moab
Khotsong. As at 30 June 2025, the estimated Mineral Resources (exclusive of Mineral Reserves) were 4.7 million ounces and
the estimated Mineral Reserves were 3.4 million ounces. Harmony has five active underground mining operations in the Free
State: Joel, Masimong, Tshepong South, Tshepong North, and Target 1. As at 30 June 2025, their combined estimated Mineral
Resources (exclusive of Mineral Reserves) were 30.3 million ounces and the combined estimated Mineral Reserves were 2.1
million ounces.
Harmony has one open pit mine and several surface retreatment facilities in South Africa. These include: Kalgold, various
surface sources in the Free State (including several tailings retreatment operations and waste rock dumps ("WRDs"), located
largely in the vicinity of Welkom, marginal ore rock dumps and tailings (Mispah and Kop Paydam) associated with Moab
Khotsong that are available for retreatment, Mine Waste Solutions, Vaal River and West Wits. As at 30 June 2025, their
combined estimated Mineral Resources (exclusive of Mineral Reserves) were 4.6 million ounces and the combined estimated
Mineral Reserves were 8.9 million ounces.
In PNG, Harmony has one wholly-owned open-pit, gold and silver mine: Hidden Valley, and a 50% interest in the Wafi-
Golpu Project. As at 30 June 2025, our combined estimated gold and gold equivalent Mineral Resources (exclusive of Mineral
Reserves) in PNG were 19.2 million ounces and the combined estimated Mineral Reserves were 15.9 million ounces.
In Australia, Harmony owns the Eva Copper Project. As at 30 June 2025, our combined estimated gold and gold equivalent
Mineral Resources (exclusive of Mineral Reserves) in Australia were 8.6 million ounces. We are undertaking a feasibility study
for the Eva Copper Project, and upon its completion, a Mineral Reserve estimate may be declared, subject to the results of the
study demonstrating economic extraction
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Locations of Properties
The following graphic sets out the geographical distribution of Harmony’s mining properties.
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Maps showing the location of individual properties as well as infrastructure and licenses are shown in “—Individual
Property Disclosure” below. All operations are 100 percent owned unless otherwise indicated.
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The following table sets out the aggregate production of Harmony’s mining operations for the years ended 30 June 2025,
2024 and 2023.
Fiscal year ended 30 June | |||
2025 | 2024 | 2023 | |
Gold produced (kg) | 46,023 | 48,578 | 45,651 |
Gold produced (000oz) | 1,480 | 1,562 | 1,468 |
Overview of Mining Properties and Operations
The following information is detailed for each material property in “—Individual Property Disclosure” below:
•the location of the properties;
•the type and amount of ownership interests;
•the identity of the operator or operators;
•titles, mineral rights, leases or options and acreage involved;
•the stages of the properties (exploration, development or production);
•key permit conditions;
•mine types and mineralisation styles; and
•processing plants and other available facilities.
Methodology
Mineral Resources
A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such
form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity,
grade, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific
geological evidence and knowledge, including sampling.
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated
based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade
or quality continuity. An Inferred Resource has a lower level of confidence than that applying to an Indicated Mineral Resource
and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of an Inferred Mineral Resource
could be upgraded to an Indicated Mineral Resource with continued exploration.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to
support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately
detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity
between points of observation.
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and
physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed
mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of
observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated or an
Inferred Mineral Resource. It may be converted to either a Proved Mineral Reserve or a Probable Mineral Reserve.
Mineral Resource estimation
To meet SAMREC, 2016’s requirements that this solid material reported as a Mineral Resource should have “reasonable
and realistic prospects for eventual economic extraction”, Harmony has determined an appropriate cut-off grade which has been
applied to the quantified mineralised body according to a process incorporating a long-term view on future economic modifying
factors. In applying this process, Harmony uses a gold price of US$2,349/oz to derive a cut-off grade to determine the Mineral
Resources at each of its South African underground operations.
The estimation of Mineral Resources is based on geoscientific knowledge and borehole and sampling data (obtained by
means of chip sampling on the reef horizon in a shaft-specific grid), with input from the company’s Ore Reserve managers,
geologists and geostatistical staff. All sampling done is subject to quality assurance and quality control, as guided by SAMREC,
2016, to ensure data quality and accuracy. Each mine’s Mineral Resource is categorised – based on similarities in geology,
facies, grade and structure, the orebody is divided into geozones. It is then blocked-out and ascribed an estimated value. A
computerised geostatistical estimation process is used at all our mines.
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To define that portion of a Measured and Indicated Mineral Resource that can be converted to a Proved and Probable
Mineral Reserve, Harmony applies the concept of a cut-off grade. At our underground South African mines, this is done by
defining the optimal cut-off as the lowest grade at which an orebody can be mined such that the total profits, under a specified
set of mining parameters, are maximised. The cut-off grade is determined using the company’s Optimiser software, which
requires the following as inputs:
•the database of Measured and Indicated Resource blocks (per shaft section);
•an assumed gold price which, for our Mineral Reserves, was taken as R1,334,000/kg;
•planned production rates;
•the mine recovery factor which is equivalent to the mine call factor multiplied by the plant recovery factor; and
•planned cash operating costs (Rand per tonne).
Rand per tonne cash operating costs are historically based but take cognisance of distinct changes in the cost environment
such as restructuring, right-sizing, and other cost-reduction initiatives and, for beyond-infrastructure ounces, an estimate of
capital expenditure.
In PNG, the block cave reserve at Golpu uses block cave optimisation software to define the optimal mine plan and
sequencing. The open-pit reserve at Hidden Valley is determined using the Whittle optimisation program to guide the most
efficient mine design given the commodity prices and cost inputs assumed.
Mineral Reserves represent that portion of the Measured and Indicated Mineral Resources above the cut-off grade in the
life of mine ("LOM") plan and are estimated after consideration of the factors affecting extraction, including mining, metallurgical,
economic, marketing, legal, environmental, social and governmental factors. At our underground mines, the reported Mineral
Reserves are accessible from existing infrastructure and/or infrastructure that is in the process of being developed.
A range of disciplines, including geology, survey, planning, mining engineering, rock engineering, metallurgy, financial
management, human resources management and environmental management, are involved at each mine in the LOM planning
process and the conversion of Mineral Resources into Mineral Reserves.
The modifying factors related to the ore flow that are used to convert Mineral Resources to Mineral Reserves through the
LOM planning process are stated for each operation. For these factors, historical information is used, except if there is a valid
reason to do otherwise. As a result of the depth at which mining occurs and the resulting rock engineering requirements at our
South African underground mines, some operations include stope support pillars into the design of their mining layouts which
accounts for discounts of 7% to 10%. A further 15% discount is applied as a LOM factor to provide for unpay and off-reef mining.
In general, LOM plan extraction factors do not exceed 85% and are reflected in Mineral Reserves.
While there are some differences between the definition of SAMREC, 2016 and that of Regulation S-K 1300, only the
Mineral Reserves at each of Harmony’s operations and advanced projects as at 30 June 2025 that qualify as Mineral Reserves
for purposes of Regulation S-K 1300 are presented in the tables below.
Mineral Reserves
Modifying factors are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and
governmental factors. A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It
includes diluting materials and allowances for losses, which may occur when the material is mined or extracted. It is defined by
studies at prefeasibility or feasibility level as appropriate, which include the application of modifying factors. Such studies
demonstrate that, at the time of reporting, extraction could reasonably be justified. The reference point at which Mineral
Reserves are defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that in
all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure
that the reader is fully informed as to what is being reported.
A Probable Mineral Reserve is the economically mineable part of an Indicated, and in some circumstances, a Measured
Mineral Resource. The confidence in the modifying factors applied to a Probable Mineral Reserve is lower than that applicable
to a Proved Mineral Reserve.
A Proved Mineral Reserve is the economically mineable part of a Measured Mineral Resource. A Proved Mineral Reserve
implies a high degree of confidence in the modifying factors. A "scoping study" is an order of magnitude technical and economic
study of the potential viability of Mineral Resources that includes appropriate assessments of realistically assumed modifying
factors together with any other relevant operational factors that are necessary to demonstrate at the time of reporting that
progress to a prefeasibility study can be reasonably justified.
A prefeasibility study is a comprehensive study of a range of options for the technical and economic viability of a mineral
project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit
configuration, in the case of an open-pit, is established and an effective method of mineral processing is determined. It includes
a financial analysis based on reasonable assumptions on the modifying factors and the evaluation of any other relevant factors
which are sufficient for a competent person, acting reasonably, to determine if all or part of the Mineral Resource may be
converted to a Mineral Reserve at the time of reporting.
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A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral
project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant
operational factors and detailed financial analysis that are necessary to demonstrate at the time of reporting that extraction is
reasonably justified (economically mineable). The results of the feasibility study may reasonably serve as the basis for a final
decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level
of the study will be higher than that of a prefeasibility study.
For the reporting of Mineral Reserves the following parameters were applied:
•a gold price of US$2,237/oz;
•an exchange rate of R18.54 per US dollar;
•the above parameters resulting in a gold price of R1 334,000/kg for the South African assets;
•Hidden Valley used prices of US$2,237/oz gold (“Au”), US$25.00/oz silver (“Ag”) and US$4.25/lb copper (“Cu”) at an
exchange rate of A$1.47 per US$;
•the Wafi-Golpu Project used commodity prices of US$1,200/oz Au and US$3.00/lb Cu;
•gold equivalent ounces are calculated assuming a US$2,237/oz Au, US$4.25/lb Cu and US$25.00/oz Ag with 100%
recovery for all metals; and
•“gold equivalent” is computed as the value of Harmony's gold, silver and copper from all Mineral Resources/ Mineral
Reserves classifications divided by the price of gold. All calculations are done using metal prices as stipulated.
Gold equivalent ounces
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 commodity, then dividing
the product by the price of gold. For example, the gold equivalent of a gold and copper deposit would be calculated as follows:
((gold ounces x gold price per ounce) + (copper pounds x copper price per pound)) / gold price per ounce. All calculations are
done using metal prices as stipulated above. Harmony assumes a 100% metallurgical recovery in its calculations unless
otherwise stated.
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Mineral Resources (exclusive of Mineral Reserves)
As at 30 June 2025, Harmony had aggregate attributable Measured and Indicated Resources (exclusive of Mineral
Reserves) of approximately 46.2 million ounces of gold, 12.7 million ounces of gold equivalents, 32.1 million ounces of silver,
6.7 million pounds of copper, 70.5 million pounds of molybdenum and 45.5 million pounds of uranium.
Operations | Measured Resources | Indicated Resources | Measured and Indicated Resources | Inferred Resources | ||||||||
Gold | Tonnes (Mt) | Grade (g/t) | Gold (000kg) | Tonnes (Mt) | Grade (g/t) | Gold (000kg) | Tonnes (Mt) | Grade (g/t) | Gold (000kg) | Tonnes (Mt) | Grade (g/t) | Gold (000kg) |
South Africa underground | ||||||||||||
Tshepong North | 12.125 | 12.40 | 150.403 | 6.567 | 11.43 | 75.096 | 18.692 | 12.06 | 225.499 | 8.272 | 9.30 | 76.917 |
Tshepong South | 5.507 | 12.80 | 70.514 | 8.892 | 11.35 | 100.964 | 14.399 | 11.91 | 171.478 | 22.729 | 11.33 | 257.508 |
Joel | 1.817 | 8.46 | 15.374 | 2.938 | 6.82 | 20.033 | 4.755 | 7.45 | 35.407 | 0.185 | 8.01 | 1.484 |
Masimong | 2.253 | 9.67 | 21.789 | 0.072 | 10.72 | 0.775 | 2.326 | 9.70 | 22.564 | 0.022 | 6.10 | 0.136 |
Target 1 | 5.588 | 7.77 | 43.411 | 3.761 | 6.94 | 26.112 | 9.349 | 7.44 | 69.524 | 3.686 | 5.99 | 22.080 |
Target 3 | 0.714 | 10.16 | 7.251 | 3.800 | 10.56 | 40.140 | 4.513 | 10.50 | 47.391 | 1.210 | 10.53 | 12.744 |
Doornkop | 19.944 | 3.74 | 74.506 | 13.987 | 3.77 | 52.764 | 33.931 | 3.75 | 127.270 | 11.643 | 3.91 | 45.480 |
Kusasalethu | — | — | — | 6.933 | 9.48 | 65.717 | 6.933 | 9.48 | 65.717 | 2.419 | 8.78 | 21.233 |
Moab Khotsong | 2.681 | 16.13 | 43.246 | 3.257 | 16.65 | 54.234 | 5.938 | 16.42 | 97.480 | 2.682 | 17.90 | 48.022 |
Mponeng | 3.767 | 16.60 | 62.527 | 13.471 | 12.96 | 174.629 | 17.239 | 13.76 | 237.156 | 32.442 | 11.40 | 369.698 |
Total South Africa underground | 54.396 | 8.99 | 489.022 | 63.679 | 9.59 | 610.464 | 118.075 | 9.31 | 1,099.485 | 85.291 | 10.03 | 855.301 |
Kalgold | 8.941 | 1.09 | 9.742 | 15.251 | 1.32 | 20.126 | 24.192 | 1.23 | 29.868 | 32.447 | 0.61 | 19.900 |
Tailings | ||||||||||||
Other Free State Tailings | 82.788 | 0.27 | 22.487 | — | — | — | 82.788 | 0.27 | 22.487 | 123.428 | 0.20 | 24.263 |
Phoenix | 18.144 | 0.28 | 5.098 | — | — | — | 18.144 | 0.28 | 5.098 | — | — | — |
Central | — | — | — | — | — | — | — | — | — | — | — | — |
Mine Waste Solutions | 47.553 | 0.19 | 9.130 | 52.357 | 0.23 | 12.089 | 99.910 | 0.21 | 21.219 | 81.763 | 0.13 | 11.018 |
West Wits tailings | — | — | — | 9.669 | 0.32 | 3.050 | 9.669 | 0.32 | 3.050 | — | — | — |
Total SA Tailings | 148.484 | 0.25 | 36.716 | 62.026 | 0.24 | 15.139 | 210.510 | 0.25 | 51.855 | 205.191 | 0.17 | 35.281 |
Waste rock dumps | ||||||||||||
Free State WRD | — | — | — | 0.078 | 0.55 | 0.043 | 0.078 | 0.55 | 0.043 | 11.207 | 0.44 | 4.887 |
Mine Waste Solutions | — | — | — | 2.055 | 0.30 | 0.617 | 2.055 | 0.30 | 0.617 | 2.502 | 0.24 | 0.611 |
West Wits WRD | — | — | — | 0.164 | 0.37 | 0.060 | 0.164 | 0.37 | 0.060 | — | — | — |
Total SA Waste rock dumps | — | — | — | 2.297 | 0.31 | 0.720 | 2.297 | 0.31 | 0.720 | 13.709 | 0.40 | 5.497 |
Total South Africa Surface (including Kalgold) | 157.425 | 0.30 | 46.458 | 79.574 | 0.45 | 35.985 | 237.000 | 0.35 | 82.443 | 251.348 | 0.24 | 60.678 |
Total South Africa | 211.821 | 535.480 | 143.254 | 646.448 | 355.075 | 1,181.928 | 336.639 | 915.979 | ||||
Papua New Guinea¹ | ||||||||||||
Hidden Valley | 0.703 | 0.67 | 0.467 | 30.867 | 1.23 | 37.857 | 31.570 | 1.21 | 38.324 | 1.823 | 1.29 | 2.346 |
Hamata | — | — | — | — | — | — | — | — | — | — | — | — |
Wafi | — | — | — | 54.000 | 1.66 | 89.000 | 54.000 | 1.66 | 89.000 | 15.000 | 1.30 | 20.000 |
Golpu | — | — | — | 155.000 | 0.58 | 90.372 | 155.000 | 0.58 | 90.372 | 70.000 | 0.62 | 44.000 |
Nambonga | — | — | — | — | — | — | — | — | — | 24.000 | 0.69 | 16.000 |
Kerimenge | — | — | — | 27.029 | 0.97 | 26.169 | 27.029 | 0.97 | 26.169 | 4.799 | 0.93 | 4.441 |
Total Papua New Guinea | 0.703 | 0.67 | 0.467 | 266.896 | 0.91 | 243.398 | 267.599 | 0.91 | 243.866 | 115.622 | 0.75 | 86.787 |
Australia | ||||||||||||
Little Eva | — | — | — | 183.201 | 0.06 | 11.425 | 183.201 | 0.06 | 11.425 | 23.893 | 0.08 | 1.981 |
Bedford | — | — | — | 3.318 | 0.15 | 0.486 | 3.318 | 0.15 | 0.486 | 0.958 | 0.12 | 0.113 |
Lady Clayre | — | — | — | 4.349 | 0.18 | 0.772 | 4.349 | 0.18 | 0.772 | 0.747 | 0.10 | 0.075 |
Ivy Anne | — | — | — | 5.202 | 0.07 | 0.382 | 5.202 | 0.07 | 0.382 | 1.163 | 0.07 | 0.078 |
Total Australia | — | — | — | 196.070 | 0.07 | 13.066 | 196.070 | 0.07 | 13.066 | 26.762 | 0.08 | 2.247 |
Grand total | 212.524 | 535.947 | 606.220 | 902.912 | 818.744 | 1,438.859 | 479.023 | 1,005.014 | ||||
Other metals | ||||||||||||
Papua New Guinea | Measured Resources | Indicated Resources | Measured and Indicated Resources | Inferred Resources | ||||||||
Silver | Tonnes (Mt) | Grade (g/t) | silver (000kg) | Tonnes (Mt) | Grade (g/t) | silver (000kg) | Tonnes (Mt) | Grade (g/t) | silver (000kg) | Tonnes (Mt) | Grade (g/t) | silver (000kg) |
Hidden Valley | 0.703 | 14.53 | 10,214 | 30.867 | 17.73 | 547.351 | 31.570 | 17.66 | 557.565 | 1.823 | 11.09 | 20.223 |
Golpu | — | — | — | 155.000 | 1.30 | 201.500 | 155.000 | 1.30 | 201.500 | 70.000 | 1.10 | 77.000 |
Total | 0.703 | 14.53 | 10,214 | 185.867 | 4.03 | 748.851 | 186.570 | 4.07 | 759.065 | 71.823 | 1.35 | 97.223 |
Copper | Tonnes (Mt) | % | Cu (000t) | Tonnes (Mt) | % | Cu (000t) | Tonnes (Mt) | % | Cu (000t) | Tonnes (Mt) | % | Cu (000t) |
Golpu | — | — | — | 155.000 | 0.95 | 1,470.000 | 155.000 | 0.95 | 1,470.000 | 70.000 | 0.86 | 600.000 |
Nambonga | — | — | — | — | — | — | — | — | — | 24.000 | 0.20 | 46.949 |
Total | — | — | — | 155.000 | 0.95 | 1,470.000 | 155.000 | 0.95 | 1,470.000 | 94.000 | 0.69 | 646.949 |
Molybdenum | Tonnes (Mt) | ppm | Mo (000t) | Tonnes (Mt) | ppm | Mo (000t) | Tonnes (Mt) | ppm | Mo (000t) | Tonnes (Mt) | ppm | Mo (000t) |
Golpu | — | — | — | 155.000 | 93.79 | 14.537 | 155.000 | 93.79 | 14.537 | 70.000 | 71.55 | 5.008 |
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Other metals | ||||||||||||
Papua New Guinea | Measured Resources | Indicated Resources | Measured and Indicated Resources | Inferred Resources | ||||||||
Total | — | — | — | 155.000 | 93.79 | 14.537 | 155.000 | 93.79 | 14.537 | 70.000 | 71.55 | 5.008 |
Equivalents | ||||||||||||
Silver | Tonnes (Mt) | silver (000kg) | Tonnes (Mt) | silver (000kg) | Tonnes (Mt) | silver (000kg) | Tonnes (Mt) | silver (000kg) | ||||
Hidden Valley | 0.703 | 0.115 | 30.867 | 6.103 | 31.570 | 6.218 | 1.823 | 0.235 | ||||
Copper | Tonnes (Mt) | Au eq (000kg) | Tonnes (Mt) | Au eq (000kg) | Tonnes (Mt) | Au eq (000oz) | Tonnes (Mt) | Au eq (000oz) | ||||
Golpu | — | — | 155.000 | 178.346 | 155.000 | 178.346 | 70.000 | 78.101 | ||||
Nambonga | — | — | — | — | — | — | 24.000 | 6.112 | ||||
Total | — | — | 155.000 | 178.346 | 155.000 | 178.346 | 94.000 | 84.213 | ||||
Total Silver and Copper as gold equivalents | 0.703 | 0.115 | 185.867 | 184.449 | 186.570 | 184.564 | 95.823 | 84.448 | ||||
Total PNG including gold equivalents | 0.703 | 0.582 | 266.896 | 427.847 | 267.599 | 428.429 | 115.622 | 171.235 | ||||
Australia | ||||||||||||
Copper | Tonnes (Mt) | % | Cu (000t) | Tonnes (Mt) | % | Cu (000t) | Tonnes (Mt) | % | Cu (000t) | Tonnes (Mt) | % | Cu (000t) |
Little Eva | — | — | — | 183.201 | 0.32 | 594.035 | 183.201 | 0.32 | 594.035 | 23.893 | 0.33 | 79.496 |
Turkey Creek | — | — | — | 28.454 | 0.42 | 119.210 | 28.454 | 0.42 | 119.210 | 5.374 | 0.44 | 23.670 |
Blackard | — | — | — | 115.900 | 0.48 | 554.886 | 115.900 | 0.48 | 554.886 | 33.719 | 0.40 | 136.048 |
Scanlan | — | — | — | 14.948 | 0.59 | 88.493 | 14.948 | 0.59 | 88.493 | 9.666 | 0.48 | 46.273 |
Bedford | — | — | — | 3.318 | 0.55 | 18.301 | 3.318 | 0.55 | 18.301 | 0.958 | 0.38 | 3.600 |
Lady Clayre | — | — | — | 4.349 | 0.43 | 18.908 | 4.349 | 0.43 | 18.908 | 0.747 | 0.43 | 3.196 |
Ivy Anne | — | — | — | 5.202 | 0.34 | 17.823 | 5.202 | 0.34 | 17.823 | 1.163 | 0.33 | 3.876 |
Legend | — | — | — | 31.193 | 0.47 | 147.014 | 31.193 | 0.47 | 147.014 | 5.001 | 0.33 | 16.397 |
Great Southern | — | — | — | 12.915 | 0.42 | 53.629 | 12.915 | 0.42 | 53.629 | 1.920 | 0.39 | 7.553 |
Total Copper | — | — | — | 399.481 | 0.40 | 1612.298 | 399.481 | 0.40 | 1612.298 | 82.442 | 0.39 | 320.109 |
Gold Equivalents | ||||||||||||
Copper: as gold equivalents | Tonnes (Mt) | Au eq (000kg) | Tonnes (Mt) | Au eq (000kg) | Tonnes (Mt) | Au eq (000kg) | Tonnes (Mt) | Au eq (000kg) | ||||
Little Eva | — | — | 183.201 | 77.344 | 183.201 | 77.344 | 23.893 | 10.336 | ||||
Turkey Creek | — | — | 28.454 | 15.521 | 28.454 | 15.521 | 5.374 | 3.079 | ||||
Blackard | — | — | 115.900 | 72.222 | 115.900 | 72.222 | 33.719 | 17.698 | ||||
Scanlan | — | — | 14.948 | 11.508 | 14.948 | 11.508 | 9.666 | 6.034 | ||||
Bedford | — | — | 3.318 | 2.375 | 3.318 | 2.375 | 0.958 | 0.478 | ||||
Lady Clayre | — | — | 4.349 | 2.463 | 4.349 | 2.463 | 0.747 | 0.422 | ||||
Ivy Anne | — | — | 5.202 | 2.324 | 5.202 | 2.324 | 1.163 | 0.513 | ||||
Legend | — | — | 31.193 | 19.129 | 31.193 | 19.129 | 5.001 | 2.146 | ||||
Great Southern | — | — | 12.915 | 6.967 | 12.915 | 6.967 | 1.920 | 0.995 | ||||
Total Copper as gold equivalents | — | — | 399.481 | 209.853 | 399.481 | 209.853 | 82.442 | 41.702 | ||||
Total AUSTRALIA (including gold equivalents) | — | — | 399.481 | 222.919 | 399.481 | 222.919 | 82.442 | 43.949 | ||||
Tonnes (Mt) | Gold equival ents (000 kg) | Tonnes (Mt) | Gold equivale nts (000 kg) | Tonnes (Mt) | Gold equivale nts (000 kg) | Tonnes (Mt) | Gold equival ents (000 kg) | |||||
Total Harmony including equivalents | 212.524 | 536.062 | 809.631 | 1,297.214 | 1,022.155 | 1,833.276 | 534.703 | 1,131.164 | ||||
Uranium | ||||||||||||
South Africa | Tonnes (Mt) | kg/t | U3O8 (Mkg) | Tonnes( Mt) | kg/t | U3O8 (Mkg) | Tonnes (Mt) | kg/t | U3O8 (Mkg) | Tonnes (Mt) | kg/t | U3O8 (Mkg) |
Free State surface | — | — | — | 82.788 | 0.103 | 8.521 | 82.788 | 0.103 | 8.521 | — | — | — |
Moab underground | — | — | — | 5.938 | 0.716 | 4.253 | 5.938 | 0.716 | 4.253 | 2.682 | 0.602 | 1.614 |
Mine Waste Solutions | 47.553 | 0.068 | 3.243 | 52.357 | 0.089 | 4.639 | 99.910 | 0.079 | 7.882 | 81.763 | 0.038 | 3.097 |
Total Uranium | 47.553 | 0.068 | 3.243 | 141.082 | 0.123 | 17.414 | 188.636 | 0.110 | 20.657 | 84.445 | 0.056 | 4.711 |
¹Total attributable Gold equivalent ounces are calculated assuming a US$2,237/oz Au, US$4.25/lb Cu and US$25.00/oz Ag with 100% recovery
for all metals.
Note: rounding of numbers may result in slight computational discrepancies.
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Mineral Reserves
As at 30 June 2025, Harmony had aggregate attributable Proved and Probable Mineral Reserves of approximately
26.9 million ounces of gold, 9.9 million ounces of gold equivalents, 14.6 million ounces of silver, 5.1 million pounds of copper
and 10.2 million pounds of uranium.
Operations | Proved Reserves | Probable Reserves | Total Mineral Reserves | ||||||
Gold | Tonnes (Mt) | Grade (g/t) | Gold² (000kg) | Tonnes (Mt) | Grade (g/t) | Gold² (000kg) | Tonnes (Mt) | Grade (g/t) | Gold² (000kg) |
South Africa underground | |||||||||
Tshepong North | 2.403 | 4.55 | 10.936 | 1.606 | 5.85 | 9.391 | 4.009 | 5.07 | 20.327 |
Tshepong South | 2.159 | 6.53 | 14.102 | 0.423 | 3.22 | 1.362 | 2.582 | 5.99 | 15.464 |
Masimong | 0.645 | 4.22 | 2.724 | 0.205 | 3.42 | 0.702 | 0.851 | 4.03 | 3.426 |
Joel | 2.078 | 4.69 | 9.740 | 0.168 | 5.35 | 0.899 | 2.246 | 4.74 | 10.639 |
Target 1 | 2.421 | 4.46 | 10.796 | 1.082 | 4.48 | 4.850 | 3.503 | 4.47 | 15.646 |
Doornkop South Reef | 4.294 | 3.74 | 16.075 | 9.378 | 4.11 | 38.545 | 13.672 | 4.00 | 54.621 |
Kusasalethu | 1.875 | 6.26 | 11.731 | 0.023 | 4.94 | 0.114 | 1.898 | 6.24 | 11.845 |
Moab Khotsong including Zaaiplaats | 3.213 | 7.38 | 23.715 | 9.788 | 8.43 | 82.500 | 13.001 | 8.17 | 106.215 |
Mponeng | 3.564 | 10.32 | 36.783 | 10.992 | 9.07 | 99.717 | 14.556 | 9.38 | 136.499 |
Total South Africa underground | 22.651 | 6.03 | 136.602 | 33.667 | 7.07 | 238.080 | 56.318 | 6.65 | 374.682 |
South Africa Surface | |||||||||
Kalgold | 10.312 | 0.96 | 9.907 | 8.340 | 1.12 | 9.309 | 18.652 | 1.03 | 19.216 |
Tailings | |||||||||
Other Free State Tailings | 86.527 | 0.27 | 23.410 | 483.358 | 0.23 | 110.395 | 569.885 | 0.23 | 133.805 |
Phoenix | 30.425 | 0.27 | 8.108 | — | — | — | 30.425 | 0.27 | 8.108 |
Central | — | — | — | 39.671 | 0.27 | 10.673 | 39.671 | 0.27 | 10.673 |
Mine Waste Solutions | 7.756 | 0.30 | 2.353 | 344.711 | 0.28 | 95.334 | 352.467 | 0.28 | 97.687 |
West Wits tailings | — | — | — | 24.057 | 0.33 | 7.891 | 24.057 | 0.33 | 7.891 |
Total Tailings | 124.707 | 0.27 | 33.872 | 891.797 | 0.25 | 224.293 | 1,016.504 | 0.25 | 258.165 |
Total South Africa Surface (including Kalgold) | 135.019 | 0.32 | 43.779 | 900.137 | 0.26 | 233.602 | 1,035.156 | 0.27 | 277.381 |
Total South Africa | 157.670 | 180.381 | 933.804 | 471.682 | 1,091.474 | 652.063 | |||
Papua New Guinea | |||||||||
Hidden Valley | 1.630 | 0.95 | 1.555 | 16.997 | 1.45 | 24.603 | 18.627 | 1.40 | 26.158 |
Hamata | — | — | — | — | — | — | — | — | — |
Golpu ¹ | — | — | — | 190.000 | 0.83 | 158.628 | 190.000 | 0.83 | 158.628 |
Total Papua New Guinea | 1.630 | 0.95 | 1.555 | 206.997 | 0.89 | 183.231 | 208.627 | 0.89 | 184.786 |
Australia | |||||||||
Little Eva | — | — | — | — | — | — | — | — | — |
Bedford | — | — | — | — | — | — | — | — | — |
Lady Clayre | — | — | — | — | — | — | — | — | — |
Ivey Anne | — | — | — | — | — | — | — | — | — |
Total Australia | — | — | — | — | — | — | — | — | — |
Total Harmony | 159.300 | 181.936 | 1,140.801 | 654.913 | 1,300.101 | 836.849 | |||
Other metals | |||||||||
Papua New Guinea | Proved Reserves | Probable Reserves | Total Mineral Reserves | ||||||
Silver | Tonnes (Mt) | Grade (g/t) | Ag2 (000kg) | Tonnes (Mt) | Grade (g/t) | Ag2 (000kg) | Tonnes (Mt) | Grade (g/t) | Ag2 (000kg) |
Hidden Valley | 1.630 | 22.69 | 36.982 | 16.997 | 24.52 | 416.694 | 18.627 | 24.36 | 453.676 |
Copper | Tonnes (Mt) | Grade (%) | Cu² (000t) | Tonnes (Mt) | Grade (%) | Cu² (000t) | Tonnes (Mt) | Grade (%) | Cu² (000t) |
Golpu | — | — | — | 190.000 | 1.23 | 2,330.000 | 190.0 | 1.23 | 2,330.000 |
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Operations | Proved Reserves | Probable Reserves | Total Mineral Reserves | ||||||
Gold equivalents | Tonnes (Mt) | Au2 (000kg) | Tonnes (Mt) | Au2 (000kg) | Tonnes (Mt) | Au2 (000kg) | |||
Silver | |||||||||
Hidden Valley | 1.630 | 0.413 | 16.997 | 4.655 | 18.627 | 5.068 | |||
Copper | |||||||||
Golpu¹ | — | — | 190.000 | 303.323 | 190.000 | 303.323 | |||
Total silver and copper as gold equivalents | 1.630 | 0.413 | 206.997 | 307.978 | 208.627 | 308.391 | |||
Total PNG including gold equivalents | 1.630 | 1.968 | 206.997 | 491.209 | 208.627 | 493.177 | |||
Total Harmony including equivalents | 159.300 | 182.349 | 1,140.801 | 962.891 | 1,300.101 | 1,145.240 | |||
South Africa | |||||||||
Uranium | Tonnes (Mt) | Grade (kg/t) | U3O8² (Mkg) | Tonnes (Mt) | Grade (kg/t) | U3O8² (Mkg) | Tonnes (Mt) | Grade (kg/t) | U3O8² (Mkg) |
Moab Khotsong underground | — | — | — | 13.001 | 0.36 | 4.646 | 13.001 | 0.36 | 4.646 |
¹Total attributable Gold equivalent ounces are calculated assuming a US$2,237/oz Au, US$4.25/lb Cu and US$25.00/oz Ag with 100% recovery
for all metals.
²Metal figures are fully inclusive of all mining dilutions and gold losses, and are reported as mill-delivered tonnes and head grades.
Metallurgical recovery factors have not been applied to the reserve figures.
Note: rounding of numbers may result in slight computational discrepancies.
As at 30 June 2025, Harmony’s attributable gold and gold equivalent Mineral Reserves were 36.8 million ounces of gold, a
decrease from 40.3 million ounces at 30 June 2024. The year on year Mineral Reserve reconciliation is shown below.
Description | (000kg) | Moz |
30 June 2024 Gold and gold equivalents | 1,252 | 40.3 |
Changes during fiscal 2025 | ||
Mined | -53 | -1.7 |
Other losses (geology, planning) | -20 | -0.6 |
Reserve additions from Operations | 24 | 0.8 |
Gold equivalents | -58 | -1.9 |
30 June 2025 Gold and gold equivalents | 1,145 | 36.8 |
Note: rounding of numbers may result in slight computational discrepancies.
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MINERAL RESOURCE AND MINERAL RESERVE INDIVIDUAL PROPERTY DISCLOSURE
For more information about Harmony’s mines, including a summary of the Company’s mining rights and licenses refer to
Item 4: "Information on the Company - Business Overview – Regulation”. For detailed information about Harmony’s mines,
including the mining rights and licenses refer to the TRS on each individual property, filed as an exhibit to this annual report on
Form 20-F.
Doornkop
Property Description
Doornkop is an underground gold mine located in the West Wits mining district southwest of Johannesburg, in the Gauteng
Province. At longitude 27°47'26.55"E and latitude 26°13'03.2"S, the mine forms part of Harmony's West Rand (“West Wits”)
operations. Doornkop is wholly-owned and operated by Harmony.
The following graphic illustrates the location of the Doornkop mine, along with certain infrastructure.
The Doornkop shaft complex is located south of Krugersdorp, 30km west of Johannesburg, in the Gauteng Province,
South Africa. The property lies between Sibanye Stillwater Limited’s Cooke 1 shaft and Durban Roodepoort Deep Limited.
Doornkop forms part of Harmony’s West Rand operations and extends to a maximum depth of approximately 2,000m below
mine datum (“BMD”). Current mining operations extract the South Reef, with the Mineral Reserves being comprised entirely of
this reef. Mineral Resources are comprised of the South Reef and the Kimberley Reef, and a limited (<0.5%) amount of the Main
Reef.
There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations.
Operational Infrastructure
Infrastructure in the region is well established, supporting the numerous operational gold mines in the area. The regional
infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply
networks and communication infrastructure. Doornkop’s surface and underground infrastructure, including its power and water
supplies, is sufficient for the current and planned production level requirements.
Doornkop’s main and vent shaft systems are currently exploiting the South Reef to approximately 2,000m BMD. The
narrow South Reef is exploited by means of conventional stoping. The ore mined at Doornkop is processed at the mine’s
carbon-in-pulp (“CIP”) plant, which is located adjacent to the shaft. Operations are powered by electricity from Eskom.
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Doornkop is an established operation, and the currently available infrastructure is sufficient to support the mine plan.
Doornkop is accessible via the national and provincial roads. The general layout of Doornkop infrastructure is displayed in the
graphic below.
The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R4,519 million.
Doornkop did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no significant
encumbrances exist.
Geology
Doornkop is situated on the northwestern margin of the Witwatersrand Basin of South Africa, one of the most prominent
gold provinces in the world. While there are several gold-bearing conglomerate reefs present within the mining right area, only
the Kimberley Reef and South Reef are considered to have prospects for economic extraction at this stage.
In the West Rand Goldfield, the Kimberley Reefs include a number of different gold-bearing conglomerate horizons. At
Doornkop, it is the Kimberley K9 Reef horizon which comprises the Mineral Resources along with the South Reef. The
Kimberley K9 Reef rests on an unconformity and is a multi-pulse conglomerate which is divided into four cycles, each consisting
of an upper conglomerate and a lower quartzite.
The South Reef comprises a basal conglomerate unit and a cycle of trough cross-bedded sediments. The South Reef is
dominated by silicate phases such as quartz, carbon (seam and specks), as well as sulphide phases such as pyrite, pyrrhotite
and chalcopyrite. While the upper cycles may carry some gold values, up to 95% of the gold present is located in the lower
cycle.
Both the Kimberley Reef and the South Reef have been subjected to faulting and are intruded by a series of dykes and
sills of various ages that cut across the reefs. The gold mineralisation is interpreted to have succeeded a period of deep burial,
fracturing, and alteration. The gold and other elements are believed to have precipitated through the reaction of hydrothermal
fluids at high temperatures along the reef horizons.
History
Although exploration in the Doornkop area dates back to the early 1930s, and multiple phases of exploration and mining
activities have taken place in the intervening years, the sinking of the main and ventilation Shafts at Doornkop only commenced
in 1983. At the time, Doornkop was owned by Johannesburg Consolidated Industries Limited (“JCI”).
It was initially planned to mine both the Kimberley and the South Reefs. However, a decision was then taken by JCI to
target the shallower Kimberley Reef only, mining it by mechanised methods. In addition, the deepening of the main Shaft
required to access to the South Reef was deferred. During 1989, the planned production rates from the Kimberley Reefs were
achieved, but the anticipated grades were not recovered. Adverse geological structures were encountered, and the decrease in
grades were attributed to difficulties associated with the mechanised mining methods resulting in dilution.
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A review of the operation was undertaken in 1991, and the mining approach was changed to a more selective mining cut,
targeting higher grade areas of Kimberley Reef only. In 1999, the deepening project was stopped, as a result of the low
prevailing gold prices. The sub-vertical shaft sinking had been completed with the shaft bottom at 1,953m BMD. The deepening
of the Main Shaft stopped at 1,340m BMD.
Harmony acquired Doornkop when it took over control of Randfontein Estates Limited ("REL"), in early 2000. Harmony
continued mining the Kimberley Reef using mechanised mining methods, but revisited the work done toward extracting the
South Reef. The mining method for the Kimberley Reef was subsequently changed to the conventional stoping approach, in
order to extract a reduced tonnage at an improved grade.
In 2021 a capital project was approved to extend mining to new mining levels on 207 and 212 levels. While the 207 level is
now mining reef, the 212 level is currently busy with access development, which commenced from the shaft position in 2017 as
early works. The shaft infrastructure is also being upgraded and an ore handling system is being established on 215 level in
order to handle the production from 207 and 212 levels.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The current mining rights are held by REL, a wholly owned subsidiary of Harmony. The rights encompass an area of
4,459.25ha and were successfully converted, executed and registered as a new order mining right at the Mineral and Petroleum
Resources Titles Office ("MPRTO"). As such, it is secured under Mining Authorisation number ML 13/97.
Harmony’s Doornkop mineral tenure comprises two mining rights covering approximately 4,459ha, namely:
•GP30/5/1/2/2/09 MR valid from 7 October 2007 to 6 October 2038; and
•GP30/5/1/2/2/174 MR valid from 23 May 2014 to 22 May 2038.
Harmony has the exclusive right to renew the rights.
A summary of the status of environmental permits and licenses issued as at 30 June 2025, related to Doornkop operation
is presented in the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr | GP30/5/1/2/2/(09) EM | DMPR | 7 June 2010 | LOM |
Certificate of Registration (Nuclear) | 01/0025/06 | National Nuclear Regulator | 31 May 2003 | LOM |
Water Use Permit | 33/2/323/24 | DWS | 1 December 1977 | LOM |
ISO 14001 Certification | 631282 | DQS1 | 6 November 2024 | 5 November 2027 |
Cyanide Management Certification | N/A | ICMC2 | 19 April 2024 | 18 April 2027 |
Precious Metal Refining License | 1889/000251/66 | SA Diamond & Precious Metals Regulator | 29 June 2011 | 26 June 2041 |
Environmental Authorisation for Water Treatment Plant | GP30/5/1/2/2/(09) EM | DMPR | 23 August 2016 | LOM |
License to impound water in a dam with Safety risk | 12/2/C221/69 | DWS | 17 July 2009 | LOM |
Salvage yard registration | HWSD/24-25/0020 | GDARD3 | 18 June 2024 | LOM |
Mining Right (MR09) | GP30/5/1/2/2/(09) MR | DMPR | 7 October 2008 | 6 October 2038 |
Mining Right (MR174) | GP30/5/1/2/2/(174) MR | DMPR | 23 May 2014 | 22 May 2038 |
1 German certification body for ISO standards.
2 International Cyanide Management Code.
3 Gauteng Department of Agriculture and Rural Development.
Mining Method
Doornkop is a deep level underground gold mine currently operating at depths ranging between 1,870m and 1,950m BMD.
The mining method used at Doornkop is conventional breast mining, in a sequential grid, also known as sequential grid
mining (“SGM”).
Doornkop does not use backfill for the support of stopes. The SGM method makes use of dip pillars and reduced mining
spans with pre-developed tunnels, aimed at controlling geotechnical stress.
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The mining sequence at Doornkop is typically a V-shaped configuration, colloquially referred to as the “inverted Christmas
tree”. An underhand face configuration is adopted when mining towards the west and an overhand face configuration when
mining towards the east.
Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised
zone).
Mineral Processing
Doornkop's gold processing facility has been in operation since the mid-1980s. The technology used to process the gold-
bearing ore is well established and is suitable for the style of mineralisation.
The milled ore from Doornkop follows a standard cyanide leach, CIP and electrowinning process in order to extract the
gold bullion.
The plant is currently operating below its designed throughput capacity and in the past has operated at the throughput
required to deliver the forecasted ounces of gold in the LOM.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. H Chirambadare | SACNASP, GSSA | BSc. (Geol, Math), BSc. (Hons) Geol, MENG, MBA | All | Full time |
Exploration
Exploration at Doornkop has been focused on improving confidence in the geological model, as well as adding and
upgrading additional Mineral Resources to the mine as existing Mineral Resources are depleted through mining. Over the years,
geological data has been obtained through surface drilling, a seismic survey, underground drilling, underground channel (chip)
sampling and geological mapping.
Surface exploration drilling has taken place over several different campaigns since exploration was initially undertaken in
the 1930s. Surface drilling provides widely spaced initial grade and channel width information, upon which mine development
decisions are based.
Underground exploration drilling is a continuous process which would have been in place since the operation commenced.
The underground drilling provides geological information, which is used for the Mineral Resource estimates, as well as for mine
planning purposes
Diamond core drilling was used for all underground drill holes. Diamond core drilling has been undertaken using hydraulic
and pneumatic drill rigs.
Drilling and logging practices are based on the Harmony company standards, which have been in place since Harmony
took over Doornkop.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate for Doornkop is considered to have reasonable prospects for economic extraction. The cut-
off value for the Mineral Resources has been determined as 490cmg/t, based on the economic assumptions presented in the
table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 96.65 |
Unit cost | R/t | 4,031 |
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
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The Mineral Resource estimate, as at 30 June 2024 and 30 June 2025, exclusive of the reported Mineral Reserves, is
summarised in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 19.944 | 3.74 | 74,506 | 19.360 | 3.64 | 70,440 | 5.8 |
Indicated | 13.987 | 3.77 | 52,764 | 12.201 | 3.21 | 39,137 | 34.8 |
Total / Ave. Measured + Indicated | 33.931 | 3.75 | 127,270 | 31.561 | 3.47 | 109,578 | 16.1 |
Inferred | 11.643 | 3.91 | 45,480 | 12.126 | 4.15 | 50,357 | (9.7) |
Notes
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. H. Chirambadare, who is Ore Reserve Manager at
Doornkop, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain Mineral Resources under Regulation S-K 1300.
4.The Mineral Resources are reported using a cut-off value of 490 cmg/t determined at a gold price of US$2,349/oz.
5.Tonnes are reported rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The increase in Mineral Resources is mainly as result of structural gains on 207 level based on new geological information
from long inclined borehole ("LIB") exploration drilling.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300. Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resources conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate, as at 30 June 2024 and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 4.294 | 3.74 | 16,075 | 4.822 | 4.01 | 19,317 | (16.8) |
Probable | 9.378 | 4.11 | 38,545 | 8.734 | 4.51 | 39,379 | (2.1) |
Total / Ave. Proved + Probable | 13.672 | 4.00 | 54,621 | 13.556 | 4.33 | 58,696 | (6.9) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. H. Chirambadare, who is the Doornkop Ore Reserve
Manager, and a Harmony employee.
2.Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.Mineral Reserves are reported using a cut-off grade of 500cmg/t determined using a gold price of US$2,237/oz.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves is due to normal depletion that was not fully offset by additional ounces identified on
207 level based on new geological information from LIB exploration drilling.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Doornkop. The modifying factors are consistent with the modelling, planning and computing estimates used in determining
the Mineral Reserves, which are also consistent with historical performance.
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Modifying Factor | Unit | Value |
Relative Density | t/mᶟ | 2.77 |
Stoping width | cm | 124 |
Gully (dilution) | % | 6.84 |
Off Reef | % | 4.61 |
Waste to Reef | % | 0.33 |
Flushing tons | % | — |
Discrepancy | % | 18.75 |
Mine Call Factor | % | 82.00 |
Plant Recovery Factor | % | 96.65 |
Mine Recovery Factor | % | 79.25 |
Plant Call Factor | % | 100.00 |
Mineral Reserve cut-off | cmg/t | 500 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Free State Surface Operations
Property Description
The Free State Surface Operations are located near the towns of Welkom and Virginia, Free State Province, South Africa.
The operations reclaim and re-treat local surface TSFs and WRDs.
The Free State Surface Operations comprise Mineral Resources located in 26 TSFs and 7 WRDs; three of the TSFs are
actively being mined and processed through two processing plants. The Free State Surface Operations comprise the following:
•Phoenix Project: this project is currently reclaiming two TSFs which are processed through the Saaiplaas Plant;
•Central Plant Reclamation. this operation is currently reclaiming one TSF which is processed through the Central Plant;
•Other Free State Tailings: this project is at prefeasibility study level and we envisage that it will include the treatment of 22
TSFs, which will be processed through any of the plants; and
•WRDs located across Harmony's Free State mining operations.
The Free-State Surface Operations and their associated mineral rights are wholly owned by Harmony, except for the
Phoenix Project. The Phoenix Project is 100% owned by Harmony’s BBBEE subsidiary, Tswelopele Beneficiation Operation
(Pty) Limited, of which Harmony is a 77% shareholder (5% is held by the Harmony Community Trust).
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The location of the TSFs situated between Welkom and Virginia is presented in figure below.
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The location of the WRDs is presented in the figure below.
Phoenix Project is a tailings retreatment operation located approximately 6km north of the town of Virginia; it currently
re-treats material from the Brand A (PB Dam A) and Dam 21 TSFs using the Saaiplaas Plant. The Saaiplaas Plant is located at
latitude 28°03’37.68”S and longitude 26°53’14.59”E.
The Phoenix Project is nearing the end of its current ore sources and the next source that will be introduced is the FSS 6
TSF.
The Central Plant Reclamation currently re-treats material from the FSS5 TSF using the Central Plant. The FSS5 TSF is
located close to the southern edge of the town of Welkom, while the Central Plant is located approximately 7km southeast of the
Saaiplaas Plant at a latitude of 28°02’8.36”S and a longitude of 26°52’8.99”E.
The Other Free State Tailings is currently at prefeasibility stage. Although the results of the study completed in 2009
indicate a positive net present value, Other Free State Tailings has not yet been commissioned. The project currently comprises
of 21 TSFs. The reserve reclamation financial model done for Other Free State Tailings as part of our 2025 business plan
demonstrates positive free cash flow.
There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations.
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Operational Infrastructure
The surrounding areas of Welkom and Virginia are well developed in terms of access and mining-related infrastructure
supporting the numerous operational gold mines in the area. The regional infrastructure includes national and provincial paved
road networks, power transmission and distribution networks, water supply networks and communication infrastructure.
Operations are powered by electricity from Eskom.
The Free State Surface Operations have adequate access to the infrastructure required to meet the planned LOM
production schedules. In addition, all provisions and plans required for the Other Free State Tailings have been made. The
surface infrastructure located in the vicinity of Welkom and Virginia is displayed in the graphic below.
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Free State Surface Sources Operations (Tswelopele Beneficiation and Central Plant Reclamation) had “property, plant, and
equipment” as of 30 June 2025 of R222 million and R92 million respectively.
Free State Surface Operations did not incur any fines or penalties for non-compliance during the year ended 30 June 2025
and no significant encumbrances exist.
Geology
Material contained in the TSFs and WRDs originates from deep level gold mines, operated by Harmony and other mining
companies. The mining operations predominantly extract narrow, tabular gold-bearing conglomerate reefs, namely the Basal, B,
Elsburg, Dreyerskruil and Beatrix Reefs.
These reefs occur within the Archean Witwatersrand Basin which hosts the Witwatersrand Supergroup succession. The
Basal Reef is located at the base of the Harmony Formation, within the Johannesburg Subgroup of the Central Rand Group
(“CRG”). The B Reef is part of the Spes Bona Formation at the base of the Aandenk Formation, within the Turffontein Subgroup
of the CRG. The Beatrix Reef is part of the Earls Court Member of the Aandenk Formation, within the Turffontein Subgroup of
the CRG. The Elsburg and Dreyerskruil Reefs occur within the Eldorado Formation of the Turffontein Subgroup, capping the
CRG in the Free State Goldfield.
The TSF material is the waste product of crushing, milling and gold extraction by carbon-in-leach (“CIL”) or CIP methods.
As man-made deposits the TSFs are not the result of natural sedimentary processes. The grade of the TSFs is a function of the
grade of the original reef sources, and the efficiency of the processing method at the time of treatment.
The WRDs comprise unconsolidated, untreated, low-grade gold-bearing rock extracted from underground workings during
the mining process. These WRDs are also man-made and are not formed as a result of natural sedimentary processes. They
exhibit no structure or continuity. The grade of the WRDs is a function of the grade of the original reef sources.
The most significant mineral in the TSFs and WRDs is quartz, which makes up more than 60% of the bulk mineral
composition. The gold predominantly occurs in association with pyrite. Other minerals identified include silver, copper, iron
oxide, nickel, bismuth, uranium, lead and zinc from the Basal, B, Elsburg, Dreyerskruil and Beatrix conglomerates.
History
The Saaiplaas Plant originally processed ore from Saaiplaas 1, 2 and 3 shafts. Saaiplaas 1 closed around 1980, Saaiplaas
2 around 1996, and Saaiplaas 3 around 2000. The Saaiplaas plant once also processed ore from the Erfdeel (now Masimong)
shafts. With the decline of mining in the area, the plant was relegated to processing unmilled surface source material (waste) at
a rate of 110,000tpm until July 2007. As all material currently processed by the plant is recovered by hydro-mining from old,
desiccated tailings dams in the area, crushing or milling is not required. The ore-receiving silos were demolished in July 2007
when milling ceased.
Plant commissioning began for the Central Plant Reclamation in June 2017 with ramp-up to a capacity of 300,000t a
month. Central Plant, which had previously processed WRDs, was converted into a tailings retreatment operation during 2016
and started treating TSF material only in fiscal 2017.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The mineral tenure of the Free State Surface Operations, under which the activity of reclaiming TSFs and WRDs are
permitted, falls within the mining rights held by Harmony. The different mining right areas and associated TSFs and WRDs that
form part of the Free State Surface Operations is detailed in the table below.
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TSF Name | License Type | Reference No. | Effective Date | Expiry Date | Mineral |
Brand A (PB Dam A) | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
No. 21 (H3) | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
FSS3 | MR | FS (227) | 4 February 2010 | 3 April 2026 | Au |
FSS5 | MR | FS (227) | 3 April 2026 | 3 April 2026 | Au |
FSS6 | MR | FS (227) | 3 April 2026 | 3 April 2026 | Au |
FSN6 | MR | FS (227) | 3 April 2026 | 3 April 2026 | Au |
No. 32 | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
FSS1 | MR | FS (227) | 4 February 2010 | Au, Ag, Cu, Fe, Ni, Bi, U, Pb, Zn | |
FSS2 East and West | MR | FS (83/227) | 11 December 2007 | 10 December 2029 | Au |
FSS4 | MR | FS (83) | 11 December 2007 | 10 December 2029 | Au |
FSS7 | MR | FS (83) | 11 December 2007 | 10 December 2029 | Au |
FSS8 East | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
FSS8 West | |||||
Brand D (PB Dam D) | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
Saaiplaas 1 | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
Saaiplaas 3 and 2 | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
Saaiplaas 5b | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
Saaiplaas 6 | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
No. 23 (Central Plant) | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
No. 30a | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
No. 33A | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
No. 33b | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
No. 34a | MR | FS (82) | 11 December 2007 | 10 December 2029 | Au |
Target Slimes Dam | MR | 225 | 12 December 2013 | 11 December 2026 | Au, Ag, Cu, Fe, Ni, Bi, U, Pb, Zn |
Pres Steyn 9 (Freddies 9) | MR | 226 | 4 February 2010 | 3 February 2040 | Au, Ag, Cu, Fe, Ni, Bi, U, Pb, Zn |
ARM (1+2+3+4) (Welkom Slimes Dam) | The ARM TSF, was created prior to MPRDA was promulgated in 2004 and therefore not regulated by MPRDA and don't have to covert under a new order mining. The TSF is however included in the water use license application. | ||||
A summary of the status of environmental permits and licenses issued as at 30 June 2025 related to Free State Surface
Operations is presented in the table below.
Operation | Permit / License | Reference No. | Issued By | Date Granted | Validity |
Phoenix Project | Atmospheric Air Emission License- Exemption | LDM/AEL/YMK/017 | Lejweleputswa District Municipality | 1 November 2024 | December 2029 |
Water Permit | 1214N | DWS | N/A | LOM | |
575N | DWS | 30 September 1987 | LOM | ||
718N | DWS | 5 October 1993 | LOM | ||
Water Use Registration | 23007522 | DWS | 26 July 2019 | LOM | |
Central Plant Reclamation | Atmospheric Air Emission License | LDM/RAEL/02/2024 | Lejweleputswa District Municipality | 1 May 2024 | 1 April 2029 |
Water Permit | 1214N | DWS | N/A | LOM | |
General | Environmental Management Programme | FS30/5/1/2/3/2/1(82) EM | DMPR | 12 March 2010 | LOM |
Mining Method
The mining methods used at Free State Surface Operations is hydro-mining for the TSFs, and reclamation of WRDs using
tracked dozers and front-end loaders (“FELs”).
The tailings material is reclaimed by blasting the TSF face with high pressure water, resulting in the slurry gravitating
towards the pumping stations. Several hydraulic monitoring guns deliver high pressure water to the face of the TSF. The hydro-
mining method allows for flexibility as the monitoring guns can be positioned to selectively reclaim the required areas in the TSF.
The bench heights are constrained by the force delivered by the monitoring gun nozzle, taking safety measures into account.
For safety reasons, the top down method of hydro-mining is implemented. The gun is positioned at the top of the face,
where it will cut downwards at a safe angle (a maximum angle of 45°). The horizontal distance between the cutting face and the
bottom of the bench varies between 10m and 15m, depending on the bench angle. The track for the monitoring gun is located
2m from the cutting face, allowing for a safe angle of repose, taking geotechnical parameters into account.
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The pump stations are located at the lowest point of the TSF, which ensures that the slurry material gravitates towards the
pump stations, where it is then pumped to the processing plant.
With respect to WRD, dozers are positioned on top of the WRD. The dozers are used to create safe loading faces and
blend the rock. The material is then loaded from the face onto trucks using FELs and transported to the relevant gold plants for
processing. When loading is done at the bottom of the WRD, precaution must be taken to ensure that the face is not undercut.
This precaution measure is put in place to prevent rock falls from the dump. A slope with a maximum inclination angle of 15° is
created towards the loading point, where the WRD material is pushed down. The slope angle is monitored and maintained on a
continuous basis.
As a safety measure, two red indicating poles are located at the top of the dump in the area where the dozer is working.
The dozer must not go beyond the indicating poles, and dozing does not take place vertically above a loading point where an
FEL is loading. A 30m advance is required between the dozer and the point vertically above an active loading point. As an
additional safety consideration, operations at the WRDs take place during hours of daylight.
The WRD material is loaded onto rail hoppers using the FELs and transported to the relevant processing plant.
Mineral Processing
Two plants, namely the Central Plant and the Saaiplaas Plant, are currently dedicated to the processing of tailings material.
Reclaimed tailings are pumped as slurry via pipelines and WRD material is transported on trucks, to the respective plants for
processing.
The Saaiplaas Plant forms part of the Phoenix Project and is currently treating reclaimed tailings at a rate of 503ktpm from
Brand A (PB Dam A) and Dam 21 TSFs.
Reclaimed tailings from FSS5 TSF are processed through the Central Plant at a rate of 320ktpm. The rate of treatment will
remain unchanged for the duration of the LOM even when new TSFs form part of the feed to the plant.
The prefeasibility proposes the processing of additional TSFs but still maintaining the 820 000ktpm and the possibility of
increasing the volume is still being considered.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. BJ. Selebogo | SAGC | MSCC, HND (MRM) | All | Full time |
Exploration
Various auger drilling and sampling campaigns have been undertaken and are on record from 2007 to 2020. A total of 248
drill holes were drilled into nine TSFs (including Saaiplaas Complex, FSS1, FSS4, FSN6, FSS6, FSS7) between January 2017
and February 2020. The purpose of the drilling was the determination of grade estimate. The most recent drilling was done for
FSS3 in 2023.
WRDs cannot be explored using drilling as they are comprised of unconsolidated rock. Instead, they are sampled around
the periphery using pitting.
The drilling and sampling methodology in use for Harmony’s TSFs at the Free State Surface operation has been developed
specifically for the challenges posed by these deposits and is aligned with industry best practice. An internal protocol is in place,
and the drilling components are applied by contractors who are experienced in this specific methodology.
The drill hole samples are deemed to be representative as they provide both vertical and horizontal coverage of each TSF.
Drill holes are positioned at regular intervals across the TSFs.
The data spacing, density and distribution is sufficient to support the estimation of Mineral Resources for the various TSFs.
WRDs are not explored using exploration methods due to their unconsolidated nature.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
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The Mineral Resource estimate for the TSFs, as at 30 June 2024 and 2025 exclusive of the reported Mineral Reserves, is
summarised in the table below:
Fiscal Year Ended 30 June | ||||||||
2025 | 2024 | |||||||
Mineral Resource Category | Operation / Project | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Measured | Phoenix Project | 18.144 | 0.28 | 5,098 | 20.596 | 0.26 | 5,278 | (3.4) |
Other Free State Tailings | 82.788 | 0.27 | 22,487 | 82.788 | 0.27 | 22,487 | — | |
Sub Total / Ave. Measured | 100.932 | 0.27 | 27,585 | 103.384 | 0.27 | 27,766 | (0.6) | |
Indicated | Central Plant Reclamation | — | — | — | 1.752 | 0.03 | 44 | (100.0) |
Other Free State Tailings | — | — | — | — | — | — | — | |
Sub Total / Ave. Indicated | — | — | — | 1.752 | 0.03 | 44 | (100.0) | |
Total / Ave. Measured + indicated | 100.932 | 0.27 | 27,585 | 105.136 | 0.26 | 27,809 | (0.8) | |
Inferred | Phoenix Project | — | — | — | — | — | — | — |
Other Free State Tailings | 123.428 | 0.20 | 24,263 | 15.459 | 0.19 | 2,937 | 726.1 | |
Total / Ave. Inferred | 123.428 | 0.20 | 24,263 | 15.459 | 0.19 | 2,937 | 726.1 | |
Notes:
1.The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this report on
Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP
responsible for the estimate is Mr. BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of
US$2,349/oz.
4.Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimals places.
5.Uranium content is not reported for any of the projects.
6.Metal content does not include allowances for processing losses.
7.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
8.Rounding as required by reporting guidelines may result in apparent summation differences
9.The Mineral Resource estimate is for Harmony’s 100% interest.
The change in Mineral Resources is as a result of an increase in Inferred Mineral Resource due to new deposition at
FSS2, Brand D, Dam 23 and Target Slime Dams, a change in the base of Dam 21 and survey updates.
The Mineral Resource estimate for WRD, Mineral Resources as at 30 June 2024 and 2025, exclusive of the reported
Mineral Reserves, is summarised in the table below:
Fiscal Year Ended 30 June | ||||||||
2025 | 2024 | |||||||
Mineral Resource Category | Operation / Project | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Measured | WRD | — | — | — | — | — | — | — |
Indicated | WRD | 0.078 | 0.55 | 43 | 0.078 | 0.56 | 43 | — |
Total / Ave. Indicated | 0.078 | 0.55 | 43 | 0.078 | 0.56 | 43 | — | |
Inferred | WRD | 11.207 | 0.44 | 4,887 | 11.591 | 0.44 | 5,080 | (3.8) |
Notes:
1.The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this report on
Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP
responsible for the estimate is Mr. BJ. Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in situ with reasonable prospects for economic extraction.
3.No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of
US$2,349/oz.
4.Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5.Uranium content is not reported for any of the projects.
6.Metal content does not include allowances for processing losses.
7.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
8.Rounding as required by reporting guidelines may result in apparent summation differences.
9.The Mineral Resource estimate is for Harmony’s 100% interest.
The change in Mineral Resources is due to the depletion replaced with new WRDs.
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Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300. Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational planning
processes. The planning team utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors , plant call factor, and plant recovery factors.
The Mineral Reserve estimate for Free State Surface operation, as at 30 June 2024 and 2025, is summarised in the table
below.
Fiscal Year Ended 30 June | ||||||||
2025 | 2024 | |||||||
Mineral Reserve Category | Operation / Project | Tonnes (Mt) | Gold Grade (g/ t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/ t) | Gold Content (kg) | % Change |
Proved | Phoenix Project | 30.425 | 0.27 | 8,108 | 24.343 | 0.29 | 6,952 | 16.6 |
Free State Tailings | 86.527 | 0.27 | 23,410 | 86.527 | 0.27 | 23,410 | — | |
Sub Total / Ave Proved | 116.952 | 0.27 | 31,518 | 110.870 | 0.27 | 30,363 | 3.8 | |
Probable | Central Plant Reclamation | 39.671 | 0.27 | 10,673 | 41.243 | 0.28 | 11,393 | (6.3) |
Free State Tailings | 483.358 | 0.23 | 110,395 | 585.517 | 0.22 | 130,775 | (15.6) | |
Sub Total / Ave Probable | 523.029 | 0.23 | 121,068 | 626.760 | 0.23 | 142,169 | (14.8) | |
Total / Ave Proved + Probable | 639.981 | 0.24 | 152,586 | 737.630 | 0.23 | 172,531 | (11.6) | |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. BJ. Selebogo, who is the Ore Reserve Manager, and a
Harmony employee.
2.Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3.Gold content is recovered gold after taking into consideration the modifying factors.
4.Mineral Reserves are reported using cut-off grades calculated for each TRS, ranging between 0.038g/t and 0.220g/t, and a gold price of
US$2,237/oz.
5.Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves is mainly due to depletions and the reclassification of new depositions at FSS2, Brand
D, Dam 23 and Target Slime Dams from Indicated to Inferred Mineral Resources resulted in a reduction of Probable Mineral
Reserves .
There are no Mineral Reserves for the WRDs.
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The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for the Free State Surface operation. The modifying factors are consistent with the modelling, planning and computing estimates
used in determining the Mineral Reserves, which are also consistent with historical performance.
Operation / Project | Source | Cut-off Grade (g/t Au) | Plant Recovery (%) |
Phoenix Project | No. 21 (H3) | 0.18 | 46.00 |
Brand A (PB Dam A) | 0.18 | 46.00 | |
FSS6 | 0.18 | 46.00 | |
Central Plant Reclamation | FSS5 | 0.18 | 48.39 |
FSS3 | 0.18 | 48.39 | |
Other Free State Tailings | Free State South 1 (FSS1) | 0.14 | 51.71 |
Free State South 2 East & West (FSS2 E&W) | 0.22 | 51.71 | |
Free State South 4 (FSS4) | 0.14 | 51.71 | |
Free State South 7 (FSS7) | 0.15 | 48.67 | |
Free State South 8 (FSS8-E) | 0.14 | 51.71 | |
Free State South 8 (FSS8-W) | 0.14 | 51.71 | |
Free State North 6 (FSN6) | 0.17 | 43.32 | |
Brand D | 0.19 | 52.57 | |
Saaiplaas 1 | 0.14 | 52.57 | |
Saaiplaas 3 & 2 | 0.14 | 52.57 | |
Saaiplaas 5b | 0.14 | 52.57 | |
No. 23 (Central Plant) | 0.14 | 52.57 | |
No. 30a | 0.14 | 52.57 | |
No. 33b | 0.15 | 48.97 | |
No. 34a | 0.14 | 52.57 | |
No. 32 | 0.15 | 49.89 | |
No 33A | 0.14 | 52.51 | |
Target Slimes Dam | 0.16 | 52.00 | |
Pres Steyn 9 (Freddies 9) | 0.14 | 52.00 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Joel
Property Description
Joel is located on the southern edge of the Witwatersrand Basin in the Free State Goldfield and lies 270km south
southwest of Johannesburg at a longitude of 26°48'40"E and latitude 28°16'17"S. Joel is the most southern of the gold mines
mined within the Harmony stable and is situated approximately 40km south of Welkom, 30km southeast of Virginia and 20km
north of Theunissen. The mine has a common boundary with Beatrix Mine to the west of the mine property, but there are no
underground connections between the two mines.
Joel mine is accessible via national and provincial roads. The general layout of Joel infrastructure in relation to the other
Harmony Free State mines, is displayed in the graphic below.
Joel is an intermediate-depth underground gold mine that consists of two shaft complexes interconnected via a triple
decline system, spanning four levels and mining at depths of 1,379m below mine datum (“BMD”). Joel currently has a LOM
expectancy of six years, which includes mining up to 137 level and in a block of ground exchanged with the neighbouring
Beatrix Mine.
There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations.
Operational Infrastructure
The surrounding areas of Welkom and Virginia are well developed in terms of access and mining-related infrastructure
supporting the numerous operational gold mines in the area. The regional infrastructure includes national and provincial paved
road networks, power transmission and distribution networks, water supply networks and communication infrastructure.
Joel has two operational shaft complexes namely North Shaft and South Shaft, which service and support the mining
operation as defined in the LOM plan. The former Joel gold plant located near North Shaft was decommissioned in 2019. Joel
ore is currently trucked over a distance of 35km to the Bambanani ore transfer site. The ore is then transported by rail to the
Harmony One Plant, over a distance of 7km.
Operations are powered by electricity from Eskom.
Joel’s surface and underground infrastructure, including its power and water supplies, are sufficient for the LOM plan
production requirements.
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The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R1,437 million.
Joel did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no significant
encumbrances exist.
Geology
Joel is situated in the Free State Goldfield, on the southwestern margin of the Witwatersrand Basin of South Africa, one of
the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to the CRG of
the Witwatersrand Supergroup.
The Free State Goldfield is structurally divided into two sections, cut by the north-south striking De Bron Fault, which has a
downward vertical displacement to the west of about 1,500m in the region of Bambanani, as well as a dextral shift of 4km. This
known lateral shift allows a reconstruction of the reefs to the west and east of the De Bron Fault. Several other major faults lie
parallel to the De Bron Fault. Joel lies to the west of the De Bron Fault. Dips of the reef are mostly towards the east, averaging
30° but become steeper approaching the De Bron Fault. Between the east and west blocks lies the uplifted horst block of WRG
sediments with no reef preserved.
The reef currently exploited at Joel is the Beatrix Reef, which covers approximately 90% of the mine. The other potentially
economically-viable reefs are the VS5 Reef and the Footwall Reef (“Aandenk”) which cover the remaining 10% of Joel.
Mineralisation is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The
significant minerals in the deposit are quartz (60%), pyrite (35%) and garnets (5%) within medium to coarse, clast-supported
oligomictic pebble horizons. Detrital carbon is also common.
History
Active prospecting in the area began on the farms Leeuwbult 580 and Leeuwfontein 256 in 1981. Construction of the twin-
shaft system began in September 1985 and was completed by December 1987. The Joel South Shaft was designed to be a fully
trackless mining operation.
Previously known as HJ Joel Mine, its name was changed to Joel in 1998 when the then AngloGold Ashanti was
established. The mine’s name changed again to Taung in 1999 and finally reverted to Joel in January 2002 when the Freegold
Joint Venture between Harmony and African Rainbow Minerals Limited Gold Division ("ARMGold") assumed responsibility for
the operation.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The current mining rights (30/5/1/2/2/10044 MR) that encompasses an area of 2,355.85ha was successfully converted,
executed and registered as a new order mining right at the MPRTO on 6 August 2010. The right was granted on 3 December
2007 for a period of 11 years, ending on 2 December 2018. The right further renewed in terms of section 24(1) of the Mineral
and Petroleum Resources Development Act on 23 February 2019 for a further 11 years, ending on 14 February 2030.
The following mining rights make up the full mining lease area of approximately 2,355.85ha:
•30/5/1/2/2/10044 MR valid from 23 February 2019 to 14 February 2030.
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A summary of the status of all environmental permits and licenses issued at 30 June 2025 related to Joel is presented in
the table below.
Mining Method
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr | FS 30/5/1/2/2/10044 MR | DMPR | 23 February 2024 | 14 February 2030 |
Water Permit | 1459B (B33/2/340/116) | DWS | 27 May 1991 | LOM |
Water Permit | 1460B (B33/2/340/116) | DWS | 15 March 1991 | LOM |
Waste Disposal Permit | 1339N(B33/2/340/116/P35) | DWS | 16 September 1992 | LOM |
Water Permit | 3M (B33/2/340/116) | DWS | 27 May 1991 | LOM |
Sewage Treatment Permit | QC404.00.XR01 | DWS | 20 August 1986 | LOM |
Water Permit | 1339N (B33/2/340/116) | DWS | 15 March 1991 | LOM |
Environmental Authorisation | EMS/11(i)/12(ii)(a)(c), 14, 19 ,24(ii),1, 15, 4(b)(i)(gg), 10(b)(i)(gg)(hh), 12(b)(i), 14(ii)(a)(b)(i)(hh)/22/16 | DESTEA1 | 11 September 2023 | LOM |
1 Department of Economic, Small Business Development, Tourism and Environmental Affairs of the Free State.
Joel was originally designed to adopt trackless mechanised mining when production commenced at South Shaft, but in
1994 a decision was made to change to conventional mining mainly due to the high operating costs of trackless mining. Joel
consists of two interconnected shaft complexes, the South Shaft complex which is the main operational shaft and the North
Shaft which is available for hoisting ore.
Joel’s upper mining levels are in a mature phase of operation. The decline project development, from 129 to 137 level.,
which started in 2011, is complete. This included mining up to 137 level and the Beatrix Mine block exchange. The decline
project to access the orebody from 137 level included two declines that were developed at 12° from 129 level – a chairlift decline
and a conveyor belt decline. The belt, main tips and chairlifts have been completed.Reef development and stoping commenced
on 137 level in 2016.
Joel has adopted conventional breast mining on a scattered grid (or scattered mining) which is tailored to the variable
grades intersected as well as the associated rock-related hazards anticipated at this depth. Stoping panel stability in an
intermediate stress environment may require additional stabilizing pillars be left to support the immediate hanging wall. These
take the form of inter-panel crush pillars between neighbouring mining panels.
The primary economic reef mined is the narrow tabular Beatrix Reef, accessed via conventional grid development. Mining
consists of horizontal footwall development to access the reef horizon with inclined development on the reef plane to establish
mining faces. Ore is cleared from the stopes through ore passes into the underlying cross-cuts.
Mineral Processing
The former Joel gold plant designed and commissioned during the construction of the mine was decommissioned in fiscal
2009 and all ore mined at Joel is now processed at the Harmony One Plant.
Harmony One Plant processes underground ore from multiple properties, as well as surface ore from nearby MWDs. The
plant was commissioned in 1986 and comprises three independent modules, each consisting of four feed silos, two run-of-mine
("ROM") mills, two conventional thickeners, cyanide leach, CIP absorption, elution, zinc precipitation and smelting. The plant CIP
process reflects the technology which was current at the time of construction.
The Harmony One Plant has a steady state design capacity of 390ktpm with its conventional CIP flowsheet. The Harmony
One plant is in good working condition and the equipment is also in good order with audits done on regular bases to check the
operating performance of the plant.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. JD Ackermann | SAIMM | BSc Geol | All | Full time |
Exploration
Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel
(chip) sampling.
Since the inception of Joel in 1986, 48 exploration drill holes have been drilled from surface. 40 of the holes were drilled by
the previous owners of the mine and eight holes, totalling 10,800m, have been drilled during Harmony’s tenure.
Surface exploration drilling by Harmony began in 2010, with the eight planned holes and their associated deflections. The
purpose was to increase geological knowledge of structure, facies and grade distribution up to 137 level for the deepening of
infrastructure to 137 level.
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In 2019, five holes were drilled with the purpose to also explore for the VS5 Reef boundary in the eastern side of the shaft
in 129 level and to determine the facies and value towards 145 level for the extension of the shaft to 145 level.
Underground exploration drilling has been ongoing throughout the operational life of Joel to identify organic growth
opportunities. Underground exploration drilling is undertaken to supplement the surface drilling on a closer grid spacing for reef
location, grade distribution and the presence of structures.
The underground infill drilling system is in place to improve data density in specific areas and are drilled from the
underground development access drives. The drill hole spacing is typically every 30m along strike and 30m down dip, with
higher density in the western limb of the asymmetric syncline to the north-west of the mine. The underground drill holes are
short drill holes rarely exceeding 200m in length.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate at Joel is considered to have reasonable prospect for economic extraction by underground
mining methods. The cut-off grade for the Mineral Resource is determined at 558cmg/t gold based on the economic
assumptions presented in the table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 94.24 |
Unit cost1 | R/t | 4,834 |
1 Unit cost includes cash-operating cost, royalty and on-going development capital.
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-
K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is summarised
in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 1.817 | 8.46 | 15,374 | 1.738 | 8.69 | 15,103 | 1.8 |
Indicated | 2.938 | 6.82 | 20,033 | 2.750 | 7.38 | 20,306 | (1.3) |
Total / Ave. Measured + Indicated | 4.755 | 7.45 | 35,407 | 4.488 | 7.89 | 35,410 | — |
Inferred | 0.185 | 8.01 | 1,484 | 0.395 | 8.27 | 3,264 | (54.5) |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. JD Ackermann, who is Ore Reserve Manager at Joel,
and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Mineral Resources are reported using a cut-off value of 558cmg/t determined at a gold price of US$2,349/oz.
5.Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The decrease in Mineral Resources was due to depletion, as well as Inferred Mineral Resources beyond the WN Dyke and
D2 Fault has that been excluded resulting in a further reduction in ounces.
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Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300. Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate, as at 30 June 2024, and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 2.078 | 4.69 | 9,740 | 2.140 | 4.70 | 10,062 | (3.2) |
Probable | 0.168 | 5.35 | 899 | 0.802 | 4.36 | 3,495 | (74.3) |
Total / Ave. Proved + Probable | 2.246 | 4.74 | 10,639 | 2.941 | 4.61 | 13,557 | (21.5) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. JD Ackermann, who is the Joel Ore Reserve Manager,
and a Harmony employee.
2.Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.Mineral Reserves are reported using a cut-off grade of 915cmg/t determined using a gold price of US$2,237/oz gold.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves was due to depletion. These decreases were partially offset by additional ounces
identified.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Joel. The modifying factors are consistent with the modelling, planning and computing estimates used in determining the
Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Relative Density | t/m3 | 2.75 |
Average Stoping Width | cm | 170 |
Gully | % | 4.33 |
Off Reef | % | 0.68 |
Waste to Reef | % | 0.10 |
Flushing Tons | % | 0.00 |
Discrepancy | % | 0.00 |
Mine Call Factor | % | 80.00 |
Plant Recovery Factor | % | 94.24 |
Mine Recovery Factor | % | 75.39 |
Plant Call Factor | % | 100.00 |
Mineral Reserve Cut Off | cmg/t | 915 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Kalgold
Property Description
Kalgold is located at latitude 26°10.0’S and longitude 25°14.5’E, 55km southwest of Mahikeng, between Mahikeng and
Stella, along the Mahikeng-Vryburg road (N18) in North West Province, South Africa. The Kalgold Mine is serviced by well-
maintained sealed roads with good access to all nearby towns and cities. The mine is surrounded by farmland and the closest
community is at Kraaipan, approximately 15km to the south of the mine. The Kalgold Mine has been in operation since 1997 and
is the only significant mining operation in the region. Kalgold is wholly-owned and operated by Harmony.
The following graphic illustrates the location of the Kalgold mine, along with certain infrastructure.
Kalgold is an open-pit mining operation, extracting ore from a series of satellite orebodies.
There is no material litigation against the Company which threatens its mineral rights, tenure, or operations.
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Operational Infrastructure
Infrastructure in the region is well established. The regional infrastructure includes national and provincial paved road
networks, power transmission and distribution networks, water supply networks and communication infrastructure. Schools,
clinics and hospitals are readily available in the surrounding areas. Operations are powered by electricity from Eskom.
Ore and waste material are transported separately, with ore being trucked from the pit to the plant ROM pad, and waste
rock going to the mine's waste dumps. Low-grade ore is transported by truck and stockpiled for future processing. Kalgold has
its own processing plant situated adjacent to the mine.
Kalgold is accessible via the provincial roads. The detailed surface infrastructural layout includes established haul roads for
the transport of ore and waste, the waste dumps, and stockpiles for the associated pits.
The general layout of Kalgold infrastructure is displayed in the graphic below.
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The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R1,096 million.
Kalgold did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no significant
encumbrances exist.
Geology
The Kalgold lode deposit is located within the geological terrane known as the Archaean Kraaipan Greenstone Belt
("KGB"). The KGB forms part of the Kaapvaal Craton of South Africa and comprises a linear belt of weakly metamorphosed
mafic volcanic rocks with interbedded metasedimentary rocks and Banded Iron Formation (“BIF”). The belt extends in a roughly
north/south direction over 250km from South Africa into southern Botswana.
The belt is intruded by several granitoid suites which range from tonalitic and trondhjemitic gneisses through to
granodiorite-monzonite suites. There is a general paucity of outcrop owing to the variably developed weathering profile and to
the Tertiary-to-Recent cover, including transported Kalahari sands. Due to the younger cover rocks and lack of surface
exposure, the mineralisation potential of the belt was poorly understood for many years.
The Kalgold lode deposit is accessed through five discrete mining areas, namely D Zone, A Zone and A Zone south
extension (Henry), Watertank, and Windmill pits. Watertank pit can be split into Watertank Main and Watertank North. Watertank
North refers to the northern extension of the pit. D Zone pit was mined out in 2009 and the geology of the D Zone pit is used as
a benchmark for the other pits. The geology consists of mafic schist, which forms the immediate footwall, a BIF horizon as the
main mineralised zone and a succession of clastic sediments consisting of shale, greywacke, and volcanic conglomerates as
the hanging wall. Mining is currently taking place at the A Zone, Watertank, Henry and Windmill pits.
Mineralisation at Kalgold is essentially strata bound to the BIF packages, resulting from intense silica, carbonate, sulphide,
potassium alteration and metasomatic replacement of the BIF lenses. The mineralisation is manifested primarily as quartz
veined and sulphidized BIF, with sulphides dominated by pyrrhotite and pyrite. Gold predominantly occurs as small grains of
native gold, in association with pyrrhotite and trace chalcopyrite and sphalerite.
History
Kalgold was previously known as Shamrock, formed in 1982 as a wholly owned exploration and development subsidiary of
Royal Dutch Shell-Group ("Shell").
Exploration of the Kraaipan Greenstone belt by Shell began in the 1980s. In 1994, West Rand Consolidated Mines
(“WRCM”) acquired Shamrock. The company changed its name to Kalahari Goldridge Mining Company Limited in May 1996
and was listed on the Johannesburg Stock Exchange on 14 October 1996, via an issue of 18.4% of the shares of the company,
as a dividend in specie, to shareholders of WRCM.
Harmony acquired Kalgold in July 1999.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The Kalgold mining right, which encompassed 615ha, was successfully converted, executed, and registered as a new
order mining right on 24 February 2015, as MR12/2015 under Mining Right Protocol 574/2008. A Section 102, in terms of the
MPRDA, to include portions of the farms Goldridge 632 IO and Ferndale 544 IO was executed on 9 November 2010, under
Mining Right Protocol 774/2010.
The mining right now encompasses 1 733.476ha. The mining right was issued for a period of 30 years, expiring on August
27, 2038, and Kalgold has the exclusive right to renew the right for a further 30 years. The Kalgold mineral rights are held by
Harmony. Under the MPRDA, Harmony is entitled to apply to renew the mining right on its expiry. At 30 June 2025, Harmony
was still awaiting the approval of the new prospecting right application lodged on 31 January 2024 to secure the area south of D
Zone.
Harmony is the holder of the following mining rights:
•NW30/5/1/2/2/77MR valid from 28 August 2008 to 27 August 2038.
•NW30/5/1/1/2/14264 PR. A prospecting rights application was lodged 31 January 2024, was still pending approval at 30
June 2024.
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A summary of the status of environmental permits and licenses issued as at 30 June 2025, related to Kalgold operation is
presented in the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr (Amendment) | NW30/5/1/2/2/77MR | DMPR | 8 March 2022 | LOM |
Environmental Authorisation | (NW) 30/5/1/2/3/2/1/77 EM | DMPR | 4 October 2022 | LOM |
Water Use License | 07/D41B/ABCGIJ/4754 | DWS | 22 February 2021 | 15 years |
Certificate of Registration Inflammable Liquids and Substances | FS/FLM 01/05/01/2025 | Ngaka Modiri Molema District Municipality | 27 May 2025 | 12 Months |
Protected Trees Permit | 01-12-2020/24NW | DFFE | 2 December 2020 | 2 December 2025 |
Atmospheric Emission License | NWPG/KALGOLD/AEL 4.1,4.13 & 4.17/ SEP2024 | DEDECT1 | 2 September 2024 | 31 August 2029 |
1 North West Department: Economic Development, Environment, Conservation and Tourism.
Mining Method
Kalgold is an open-pit mining operation located in the geological terrane of the Archaean KGB. Gold mineralisation is
hosted by steeply dipping BIF interbedded with schist, shale, and greywacke. The nature of the orebody requires the selective
mining of the ore blocks, defined by the east and west mineralised limbs, to separate the ROM destined ore, above the Mineral
Reserve cut-off of 0.58g/t. Based on the gold grade, properties of the host rock, and shallow depth of mineralisation, open pit
mining is appropriate for Kalgold. The gold deposit is mined most cost effectively, using a modular approach with multiple small
to medium open pits defined by mineralised zones.
Mineral Processing
Kalgold's gold processing facility has been in operation since 1996. The technology used to process the gold-bearing ore is
well established and has proven to be suitable for the style of mineralisation. Kalgold processes the ore using a well-established
cyanide and CIL process for their recovery of gold. The average planned milling tonnages per month is 132.5ktpm at the
planned feed grade of 1.03g/t. The plant is operating at its designed throughput capacity and has shown its ability to produce the
forecasted ounces of gold at said capacity.
Qualified Persons
The QP was employed by Harmony. The QP's qualifications, areas of responsibility and personal inspection of the property
are summarised in the graphic below.
Qualified Person | Prof. Assoc. | Qualifications | TRS Section Responsibility | Personal Insp. |
Mr. T Mosholi | SACNASP | BSc. Hons (Geol), MEng MIning, MBA | All | Full time |
Exploration
In the period 2017 to 2019, definition and exploration drilling were undertaken over the Kalgold line of lode deposit. This
exploration was aimed at validating and expanding the Mineral Resource estimate at that time. The drilling yielded significant
extensions to the Mineral Resource area, expanding on the understanding of the deposit. The drilling results were analysed and
incorporated into the geological model to upgrade the Mineral Resource estimates, and in-fill the areas between the A Zone and
Watertank mining pits, known as the Bridge Zone.
Further exploration drilling took place during 2021 - 2023. The results from this exploration drilling extended the
mineralised area beyond the current resource limits. The exploration drilling and subsequent definition of the Mineral Resources
are ongoing whereby new data is incorporated into the geological model and Mineral Resource estimate.
Exploratory work planned to the south of the D zone pit will commence as soon as the pending prospecting right
application approval is received. This drilling is aimed at expanding Mineral Resources and Mineral Reserves beyond the
current mining limits.
The QP is of the opinion that the drilling and survey processes, the geological and geotechnical logging and the sampling
and assaying data is appropriate for the Kalgold modelled deposit and mineralisation style.
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Mineral Resource Estimate
The Mineral Resources at Kalgold are considered to have reasonable prospects of economic extraction by open pit mining
methods. Kalgold is an on-going operation with a well-defined set of operating parameters and costs. These parameters are
used to generate a series of open pit Mineral Resource shells based on various gold prices, to constrain the Mineral Resource
block model for reporting purposes. Based on the parameters presented in the table below, the cut-off grade reporting to the
Kalgold Mineral Resources at 30 June 2025, is 0.55g/t gold.
Description | Unit | Value |
Gold price | R/kg | 1,400,000 |
Planned recovery factor | % | 86.00 |
Mining costs | R/t | Modelled based on Andru mining rates |
Processing costs | R/t | 341 |
Plant throughput | ktpm | 130 |
Planned dilution (Weighted planned per pit) | % | 7.5 |
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-
K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is summarised
in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 8.941 | 1.09 | 9,742 | 8.928 | 1.15 | 10,223 | (4.7) |
Indicated | 15.251 | 1.32 | 20,126 | 14.715 | 1.33 | 19,538 | 3.0 |
Total / Ave. Measured + Indicated | 24.192 | 1.23 | 29,868 | 23.643 | 1.26 | 29,762 | 0.4 |
Inferred | 32.447 | 0.61 | 19,900 | 31.688 | 0.60 | 18,855 | 5.5 |
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr.T Mosholi , who is Ore Reserve Manager at Kalgold,
and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Mineral Resources are reported using a cut-off value of 0.55g/t and a gold price of US$2,349/oz; for an assumed plant throughput of
132.5Ktpa.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The inferred portion of the Mineral Resource includes the historical Surface tailings of 6 263Kg (0.201Moz)
9. The Mineral Resource estimate is for Harmony’s 100% interest.
The change in Mineral Resources was due the pit shell design that was optimised, incorporating new geological information that
resulted in the adjustment of the ore limbs, both east and west.
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Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300. Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate, as at 30 June 2024 and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 10.312 | 0.96 | 9,907 | 10.342 | 0.99 | 10,207 | (2.9) |
Probable | 8.340 | 1.12 | 9,309 | 8.369 | 1.18 | 9,854 | (5.5) |
Total / Ave. Proved + Probable | 18.652 | 1.03 | 19,216 | 18.711 | 1.07 | 20,061 | (4.2) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. T Mosholi, who is the Kalgold Ore Reserve Manager,
and a Harmony employee.
2.Tonnes, grade, and gold content are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.Mineral Reserves are reported using a cut-off grade of 0.58g/t determined using a gold price of US$2,237/oz gold.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The change in Mineral Reserves was due the pit shell design that was optimised, incorporating new geological information
that resulted in the adjustment of the ore limbs, both east and west.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Kalgold. The modifying factors are consistent with the modelling, planning and computing estimates used in determining the
Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Mineral Reserve cut-off - Pit Mineral Reserves | g/t | 0.58 |
Mine Call Factor - Pit Mineral Reserves | % | 100.00 |
Dilution - Pit Mineral Reserves (Weighted planned per pit) | % | 7.50 |
Plant Recovery Factor - Pit Mineral Reserves | % | 86.00 |
Plant Recovery Factor - Stockpile Mineral Reserves | % | 70.00 |
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Kusasalethu
Property Description
Kusasalethu is a deep level gold mine, operating at depths ranging between 2,800m and 3,300m BMD, extracting the
Ventersdorp Contact Reef ("VCR") and located in the West Wits mining district, Gauteng Province. At longitude 27°21'32.91"E
and latitude 26°27'16.23"S, the mine is approximately 70km southwest of Johannesburg and 15km south southwest of
Carletonville and forms part of Harmony's West Wits operations. Kusasalethu is wholly-owned and operated by Harmony.
The following graphic illustrates the location of the Kusasalethu mine, along with certain infrastructure.
All relevant underground mining and surface right permits, and any other permit related to the work conducted on the
property have been obtained and are valid. There are no known legal proceedings against Harmony, which threaten its mineral
rights, tenure, or operations.
Operational Infrastructure
Infrastructure in the region is well established supporting the numerous operational gold mines in the area. The regional
infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply
networks and communication infrastructure.
Kusasalethu comprises a twin-shaft system with two surface vertical shafts and two vertical sub-shafts. Ore is hoisted to
surface and is delivered to the plant by road. Although Kusasalethu has its own processing plant situated adjacent to the mine,
this plant does not treat the mine’s ore and only supplies backfill material for underground support purposes. The ore mined
from Kusasalethu is processed at the Mponeng Plant, located adjacent to the Mponeng shaft approximately 17km away.
Operations are powered by electricity from Eskom.
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Kusasalethu is accessible via the national and provincial roads. The general layout of Kusasalethu infrastructure in relation
to the neighbouring Harmony mines is displayed in the graphic below.
The “property, plant, and equipment” as of 30 June 2025 including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R690 million.
Kusasalethu did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no significant
encumbrances exist.
Geology
Kusasalethu is located on the north-western margin of the Archean Witwatersrand Basin, one of the prominent gold
provinces in the world. There are seven gold-bearing conglomerates within the mining right area, of which only the VCR is
economically viable.
The VCR is a tabular, inclined, gold-bearing quartz pebble conglomerate of intermediate to high grade. It forms the base of
the Ventersdorp Supergroup, which caps the CRG of the Witwatersrand Supergroup via an angular unconformity. This reef is
characterised by its palaeomorphology, where a thick reef is preserved in the form of terraces separated stratigraphically by a
thin inter-terrace slope reef.
The Kusasalethu mining right area is also intruded by dolerite sills and syenite dykes of different ages. Many of these
dykes strike north to north–northeast with thicknesses that vary from 1m to 90m.
History
Kusasalethu was previously known as Elandsrand Gold Mine when it was owned by AngloGold Ashanti. The shaft system
(i.e., the vertical twin shaft) together with the gold plant were commissioned in 1978.
In 2001, Harmony took control and ownership of Elandsrand Gold Mine and Deelkraal Gold Mine from AngloGold Ashanti.
The name Elandsrand was changed to Kusasalethu in 2010.
Kusasalethu is part of the West Wits mining district that includes the former Western Deep Levels shafts which include the
Mponeng, TauTona and Savuka mines, all now also 100% owned by Harmony.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
A single mining right covers Kusasalethu which was successfully converted, executed and registered as a new order
mining right at the MPRTO. The principal mining right (GP30/5/1/2/2/(07) MR) covers an area of 8 639.73ha for the mining of
gold. This mining right was granted on 18 December 2007, and, unless cancelled or suspended, will continue in force for 30
years ending 17 December 2037.
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A section 102 application was submitted in 2018 to combine the contiguous farms Buffelsdoorn 143IQ and Deelkraal
142IQ, which increased the extent of the original mining right from 5,100ha to the current 7,000ha.
The following mining rights make up the full mining lease area of approximately 7,000ha:
•GP30/5/1/2/2(07) MR valid from 18 December 2007 to 17 December 2037.
A summary of the status of environmental permits and licenses issued as at 30 June 2022, related to Kusasalethu
operation is presented in the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr | GP30/5/1/2/3/2/1(07) EM | DMPR | 20 March 2010 | LOM |
Water Use License | 08/C23J/AJFG/10192 | DWS | 14 December 2020 | 13 December 2040 |
Mining Method
Kusasalethu is a deep level underground gold mine, currently operating at depths ranging between 2,900m and 3,300m
BMD. Access to the orebody is gained through a twin shaft system from surface to 73 level. The twin sub shaft system extends
from 73 level to 115 level.
The VCR horizon is extracted at Kusasalethu, and mining is conducted over five levels (98 level to 113 level) using SGM
techniques.
Due to the current mining depths at Kusasalethu, the SGM method with backfill and pre-conditioning is used. The SGM
method is preferred due to the variability of the VCR orebody with respect to value, and the seismic risk associated with deep
level mining. The mining sequence used for breast mining is a V-shaped configuration, colloquially referred to as the “inverted
Christmas tree”. An underhand face configuration is adopted when mining towards the west, and an overhand face configuration
when mining towards the east. The SGM method makes use of dip pillars and reduced mining spans with pre-developed
tunnels, aimed at further control of stresses experienced during rock movement.
Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised
zone).
Mineral Processing
The ore from Kusasalethu is processed at Mponeng’s gold processing facility which has been in operation since 1986. The
technology used to process the gold-bearing ore is well established and suitable for the style of mineralisation (i.e., VCR ore).
The ore milled at the Mponeng Plant follows a standard cyanide leach, CIP, and electrowinning process in order to extract
the gold bullion. The plant is designed to process 95tph of ore. The plant capacity is well-matched to accommodate the total ore
feed from Kusasalethu and Mponeng, and the gold produced is in line with the forecast ounces.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr JM Modise | SAGC | MSCC, NHD (MRM) | All | Full time |
Exploration
Exploration at Kusasalethu has mainly focused on improving confidence in the geological model, as well as adding and
upgrading additional Mineral Resources to replace depletion. Geological data has been obtained through underground channel
(chip) sampling, underground mapping and underground drilling. The close spaced underground data gathering was preceded
by a surface geophysical seismic survey, as well as surface diamond core drilling. Exploration from underground platforms
continues to improve geological confidence for the VCR.
Exploration work on the Kusasalethu mining right area commenced in the early 1940s as part of the Western Deep Levels
evaluation program. The work was initially limited to surface platforms, where an extensive surface exploration program was
conducted across the Western Deep Levels leases by Anglo American Corporation Limited (“AAC”).
Underground exploration drilling has been on-going throughout the operational life of Kusasalethu. As the underground
areas are accessed, platforms are generated for underground drilling.
The drilling of exploration holes is limited by the availability of sufficient drilling platforms or development ends. LIB
exploration holes are used to explore prospective areas for organic growth to the east of the current mine on 105,109 and
113 levels. The drilling information will inform the geology and estimation models to the east of the BV78 dyke and Grass dyke.
An underground infill drilling system, using short hole drilling, is in place to improve data density in specific areas and are
drilled from the underground development access drives. Drilling and logging practices are based on the Harmony company
standards, which have been in place since Harmony took over Kusasalethu in 2001.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
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Mineral Resource Estimate
The Mineral Resource estimate for Kusasalethu is considered to have reasonable prospects for economic extraction. The
cut-off value for the Mineral Resources is determined at 1,040cmg/t gold based on the economic assumptions presented in the
table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 96.0 |
Unit cost | R/t | 6,414 |
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is summarised
in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | — | — | — | — | — | — | — |
Indicated | 6.933 | 9.48 | 65,717 | 5.739 | 9.99 | 57,327 | 14.6 |
Total / Ave. Measured + Indicated | 6.933 | 9.48 | 65,717 | 5.739 | 9.99 | 57,327 | 14.6 |
Inferred | 2.419 | 8.78 | 21,233 | 2.394 | 8.81 | 21,096 | 0.6 |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. JM Modise, who is Ore Reserve Manager at
Kusasalethu, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Mineral Resources are reported using a cut-off value of 1,040cmg/t determined at a gold price of US$2,349/oz.
5.Tonnes are reported rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The increase in Mineral Resources was due to a Mineral Resource gain based on new geological information from
development and exploration drilling, resulting in additional ounces above Mineral Resource cut-off.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
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The Mineral Reserve estimate, as at 30 June 2024 and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 1.875 | 6.26 | 11,731 | 1.999 | 6.33 | 12,663 | (7.4) |
Probable | 0.023 | 4.94 | 114 | 0.001 | 3.82 | 4 | 2579.9 |
Total / Ave. Proved + Probable | 1.898 | 6.24 | 11,845 | 2.001 | 6.33 | 12,667 | (6.5) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. JM Modise, who is the Kusasalethu Ore Reserve
Manager, and who is a Harmony employee.
2.Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the Mineral Reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.Mineral Reserves are reported using a cut-off grade of 1,081cmg/t determined using a gold price of US$2,237/oz gold.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The change in Mineral Reserves was a result of depletion that was partially offset by the extension of the LOM by one year
as a result of additional ounces above Reserve cut-off based on new geological information from development and exploration
drilling.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Kusasalethu. The modifying factors are consistent with the modelling, planning and computing estimates used in determining
the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
RD | t/m³ | 2.78 |
Stoping Width | cm | 131.5 |
Gully | % | 5.53 |
Off Reef | % | 3.27 |
Waste to Reef | % | 0.83 |
Flushing | % | 0.33 |
Discrepancy | % | 15.33 |
Mine Call Factor | % | 82.00 |
Plant Recovery Factor | % | 96.00 |
Mine Recovery Factor | % | 78.72 |
Plant Call Factor | % | 100.00 |
Mineral Reserves Cut Off | cmg/t | 1081 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
Moab Khotsong
Property Description
Moab Khotsong comprises two operating underground deep level gold mines, namely the Moab Khotsong Mine and the
Great Noligwa Mine. Moab Khotsong is sub-divided by major faults into three distinct geographical mining areas. These mining
areas are referred to as Top Mine, accessed through Great Noligwa and Moab Khotsong shafts, Middle Mine, accessed through
Moab Khotsong shaft, and Zaaiplaats, a Board approved project currently being accessed through a decline system from Moab
Khotsong.
At longitude 26°48'03.3"E and latitude 26°59'12.7"S, Moab Khotsong is approximately 180km from Johannesburg. The
mine is located approximately 10km east of Orkney and directly south of the Vaal River, which forms the border between the
North West and Free State provinces. Moab Khotsong is wholly-owned and operated by Harmony.
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The following graphic illustrates the location of Moab Khotsong and the associated mines, along with certain infrastructure.
Moab Khotsong comprises the underground and surface assets associated with two mines, namely Moab Khotsong Mine
and Great Noligwa Mine, which Harmony acquired from AngloGold Ashanti in 2018. Both are deep level gold mines, operating at
depths of between 2km and 3km. They are situated directly south of the Vaal River approximately 10km east of the town of
Orkney, in the Free State Province of South Africa. The primary reef mined is the Vaal Reef ("VR"), with additional production
being sourced from the C Reef.
Moab Khotsong is sub-divided by major faults into three distinct geographical mining areas. These are referred to as Top
Mine, accessed through Great Noligwa shaft, Middle Mine, accessed through Moab Khotsong shaft, and Zaaiplaats, accessed
through a decline system off the base of the Moab Khotsong shaft.
There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations.
Operational Infrastructure
Infrastructure in the region is well established supporting the numerous operational gold mines in the area. The regional
infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply
networks and communication infrastructure.
The operations are powered by electricity from Eskom, and they have the necessary water and power infrastructure to
support their remaining lives, including Zaaiplaats.
Moab Khotsong Mine has a single vertical main-shaft to 103 level and a sub-shaft from 73 level to 103 level. Great Noligwa
Mine has a twin vertical shaft to 80 level and is connected with Moab Khotsong on 64,68,70 and 76 levels. These two mines are
collectively referred to as Moab Khotsong operation and has a dedicated ore processing plant. A decline system is currently
being developed from 101 level to access Zaaiplaats area below the current infrastructure.
The infrastructural layout includes hoisting facilities; logistical support for ore handling, sampling, and transporting; the
processing plant; waste rock facilities; tailings and leaching infrastructure; roads; water and power supply; ventilation and
refrigeration systems; stores and workshop support; electrical supply; offices; housing and security.
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The location of the surface infrastructure is displayed in the graphic below.
The “property, plant, and equipment” as of 30 June 2025 including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R8,023 million.
Moab Khotsong did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no
significant encumbrances exist.
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Geology
Moab Khotsong is situated within the Klerksdorp Goldfield on the western margin of the Witwatersrand Basin of South
Africa, one of the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to
the CRG of the Witwatersrand Supergroup.
The CRG is up to 2,100m thick in the Vaal River area and the general orientation of the Witwatersrand Supergroup
succession in this goldfield is interpreted as southwest-trending and southeast dipping. A series of northeast-trending faults
including the Buffelsdoorn, the Kromdraai, the Buffels East and the Jersey Faults, is a key feature of the Klerksdorp Goldfield
and the key structural features at Moab Khotsong are related to this series of faults.
Moab Khotsong exploits gold mineralisation occurring in the VR. This reef is stratigraphically located near the top of the
Johannesburg Sub-group, within the CRG. The VR ranges in depth at Moab Khotsong from 1,500m BMD to 3,400m BMD. Gold
mineralisation also occurs in the stratigraphically higher C Reef, which lies approximately 225m above the VR. However, the
C Reef typically contributes less than 5% to the mining production.
History
Great Noligwa Mine was developed by AAC and was originally known as Vaal River No. 8 Shaft. Work on Great Noligwa
was initiated in 1968, and the mine produced its first gold in 1972. Great Noligwa reached its production peak of around
1,000koz per annum in the late 1990s and at present, mining activity at Great Noligwa Mine is concentrated on the extraction of
pillars.
The Moab Khotsong Mine was developed by AngloGold Ashanti and is the youngest of South Africa’s deep-level gold
mines. It came into production in 2003 and has been continuously economically exploited since then. The Great Noligwa Mine
was merged with Moab Khotsong Mine in 2014, and since the merger of the two mines, annual production has been in the order
of 250koz of gold.
Harmony assumed ownership of Moab Khotsong in March 2018, and has since added the Zaaiplaats area to the Mineral
Resources and Mineral Reserves. The inclusion of Zaaiplaats in the LOM plan has extended the life of Moab Khotsong for
20 years up to 2044 and the overall production is expected to be in the order of 200koz of gold per annum.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
Harmony holds two mining rights, which have been successfully converted, executed and registered as new order mining
rights at the MPRTO. These rights cover a total combined area of 10,991.13ha for the mining of gold, silver, nickel and uranium.
Both mining rights are valid and remain effective unless cancelled or suspended. Under the MPRDA, Harmony is entitled to
apply to review the mining right on its expiry.
Harmony’s Moab Khotsong mineral tenure comprises two mining rights covering approximately 10,991ha, namely:
•NW30/5/1/2/2/15 MR valid from 12 September 2007 to 11 September 2037; and
•NW30/5/1/1/2/16 MR valid from 20 August 2008 to 19 August 2038.
A summary of the status of environmental permits and licenses issued as at 30 June 2025 related to Moab Khotsong
operation is presented in the table below.
Permit Holder | Permit / License | Reference No. | Issued By | Date Granted | Validity |
Harmony | EMPr | NW30/5/1/2/2/15&16MR | DMPR | 19 March 2025 | LOM |
Harmony | Atmospheric Emission License | AEL/FS/MKO- HGM/14/10/2019F | DFFE | 29 January 2021 | 30 January 2026 |
Harmony | Waste Management License | NWP/WM/DK2/2018/04/01/02 | GDARD1 | 13 March 2019 | LOM |
Harmony | Water Use License | 08/C24B/AGJ/9799 | DWS | 12 November 2020 Amendment: 30 October 2023 | 12 November 2040 |
Harmony | Demarcation Permit | DM-NW/05/01/2024 | DALRRD2 | 15 April 2024 | 15 April 2029 |
Harmony | Water Registration Certificate | REF no: 23114755 of the WUL: 08/C24B/AGJ/9799 | DWS | 22 June 2023 | LOM |
1 Gauteng Department of Agriculture and Rural Development.
2 Department of Agriculture, Land Reform and Rural Development.
Mining Method
The tabular nature of the orebody, along with its depth and structural complexity, dictates the mining method employed at
Moab Khotsong. The primary mining method used at Moab Khotsong is conventional breast mining, on a scattered grid. This
method, as opposed to the SGM, is necessitated by the complex geology at Moab Khotsong, which prevents the implementation
of a strict mining sequence. Moab Khotsong makes extensive use of backfill for the support of stopes. The economic reef
horizons of Top and Middle Mine are exploited between depths of 1,698m and 3,054m BMD.
Zaaiplaats is located between the elevations of 3,054m and 3,526m BMD. Zaaiplaats will be accessed by declines from the
northeastern end of the Zaaiplaats property to take advantage of the existing access development in place.
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The scattered mining makes use of pillars with a pre-developed grid of tunnels, aimed at providing geological information
ahead of the mining face, in order to control geotechnical stress. The Geotechnical Engineering department provides detailed
numerical modelling and guidance regarding the best mining practices to be applied to minimise the risk associated with
seismicity.
Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised
zone).
Mineral Processing
The gold processing facility at Great Noligwa has been in operation since the 1960s and is hence a well-established
operation. The technology used to process the gold-bearing ore is well established, being used across the majority of South
African gold operations and suitable for the style of mineralisation. The milled ore follows a reverse gold leach method using an
acid uranium leach, gold cyanide leach, CIP and electrowinning process in order to extract the gold bullion. The current plant
capacity is 260ktpm, or daily treatment rate of approximately 9,420tpd at 92% availability. The plant is operating below its
designed throughput capacity and has the potential to process the additional ore planned from Zaaiplaats.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. RF. Gaelejwe | SACNASP | B.Sc. Hons (Geol), PGDip, EMBA | All | Full time |
Exploration
Exploration at Moab Khotsong has focused on improving confidence in the geological model, as well as adding and
upgrading additional Mineral Resources to the mine. Geological data has been obtained from an initial geophysical seismic
survey and later through surface drilling, underground channel (chip) sampling, underground mapping and underground drilling.
The surface drill holes used in the estimation of the current Mineral Resources were drilled by AAC and AngloGold Ashanti
before Harmony acquired Moab Khotsong.
Underground exploration drilling has been on-going throughout the operational life of Moab Khotsong as the mine
deepens. Underground drilling intersections are sampled where possible and, if acceptable and representative, are used in the
estimation process. For estimation purposes 134 surface exploration drilling, LIB exploration drilling and underground
exploration drilling intersections were used.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate for Moab Khotsong is considered to have reasonable prospects for economic extraction.
The cut-off value for the Mineral Resources is determined per mining area as follows: Top Mine and Middle Mine 500cmg/t; and
Zaaiplaats 1,350cmg/t based on the economic assumptions presented in the table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 96.56 |
Unit cost (Specific cost applied per mining area) | R/t | 5,820 |
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
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The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is summarised
in the table below.
Gold | Fiscal Year Ended 30 June | % Change | |||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 2.681 | 16.13 | 43,246 | 2.938 | 17.32 | 50,895 | (15.0) |
Indicated | 3.257 | 16.65 | 54,234 | 2.888 | 15.38 | 44,417 | 22.1 |
Total / Ave. Measured + Indicated | 5.938 | 16.42 | 97,480 | 5.826 | 16.36 | 95,312 | 2.3 |
Inferred | 2.682 | 17.90 | 48,022 | 2.703 | 18.16 | 49,098 | (2.2) |
Uranium | Fiscal Year Ended 30 June | % Change | |||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | U3O8 (kg/t) | U3O8 (t) | Tonnes (Mt) | U3O8 (kg/t) | U3O8 (t) | |
Measured | — | — | — | — | — | — | — |
Indicated | 5.938 | 0.72 | 4,253 | 5.826 | 1.17 | 6,817 | (37.6) |
Total / Ave. Measured + Indicated | 5.938 | 0.72 | 4,253 | 5.826 | 1.17 | 6,817 | (37.6) |
Inferred | 2.682 | 0.60 | 1,614 | 2.703 | 0.71 | 1,925 | (16.2) |
Notes:
1.The Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according
to SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. RF. Gaelejwe, who is the Ore Reserve Manager, and
who is a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Gold Mineral Resources are reported using a cut-off value per area of 500cmg/t and 1,350cmg/t determined a gold price of
US$2,349/oz.
5.Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
9.Uranium is reported as a byproduct of Gold.
The Gold Mineral Resource increased due to structural gains and value in the Zaaiplaats project area. Uranium Mineral
Resource year on year variability is driven by new geological information in the Zaaiplaats mining front.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate, as at 30 June 2024, and 2025, is summarised in the table below.
Gold | Fiscal Year Ended 30 June | ||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 3.213 | 7.38 | 23,715 | 3.360 | 7.69 | 25,848 | (8.3) |
Probable | 9.788 | 8.43 | 82,500 | 10.277 | 8.14 | 83,671 | (1.4) |
Total / Ave. Proved + Probable | 13.001 | 8.17 | 106,215 | 13.637 | 8.03 | 109,519 | (3.0) |
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Uranium | Fiscal Year Ended 30 June | ||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | U3O8 (kg/t) | U3O8 (t) | Tonnes (Mt) | U3O8 (kg/t) | U3O8 (t) | % Change |
Proved | — | — | — | — | — | — | — |
Probable | 13.001 | 0.36 | 4,646 | 13.637 | 0.35 | 4,763 | (2.4) |
Total / Ave. Proved + Probable | 13.001 | 0.36 | 4,646 | 13.637 | 0.35 | 4,763 | (2.4) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. RF Gaelejwe, who is the Ore Reserve Manager, and
who is a Harmony employee.
2.Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the Mineral Reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.Gold Mineral Reserves are reported using a cut-off grade per mining area of 1,200cmg/t and 1,800 cmg/t determined using a gold price of
US$2,237/oz.
6.Uranium is reported as a byproduct of Gold.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves is due to depletion that was partially offset by structural gains and value in the
Zaaiplaats project area.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Moab Khotsong. The modifying factors are consistent with the modelling, planning and computing estimates used in
determining the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Moab Khotsong Middle Mine | Zaaiplaats | Great Noligwa Top Mine |
Relative Density | t/m³ | 2.78t/m³ | 2.78t/m³ | 2.78t/m³ |
Stoping width | cm | 180cm | 154.0cm | 180cm |
Gully | % | 10.48 | 10.10 | 10.48 |
Off Reef | % | 15.25 | 12.00 | 15.25 |
Waste to Reef | % | 2.59 | — | 2.59 |
Flushing tons | % | 4.68 | 7.98 | 4.68 |
Discrepancy | % | 6.16 | 18.70 | 6.16 |
Mine Call Factor | % | 67.00 | 78.00 | 67.00 |
Plant Recover Factor | % | 96.56 | 96.50 | 96.56 |
Mine Recover Factor | % | 64.70 | 75.27 | 64.70 |
Plant Call Factor | % | 100.00 | 100.00 | 100.00 |
Mineral Reserve cut-off | cmg/t | 1,200 | 1,800 | 1,200 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Mponeng
Property Description
Mponeng is an underground gold producing mine located in the West Wits mining district south-west of Johannesburg, on
the border between Gauteng and the North West Province. At longitude 27°25'53.62"E and latitude 26°26'12.27"S, the mine is
approximately 65km from Johannesburg and 15km from Carletonville and forms part of Harmony's West Wits operations.
Mponeng is wholly-owned and operated by Harmony.
The following graphic illustrates the location of the Mponeng mine, along with certain infrastructure.
Mponeng is the deepest mine in the world with development currently at 3,841m BMD. The primary reef mined is the VCR,
and some limited mining from the Carbon Leader Reef ("CLR"), with future expansion planned on both the VCR and the CLR
horizon. The original vertical twin shaft sinking from the surface commenced in 1981 and was commissioned along with the gold
plant complex in 1986.
There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations.
Operational Infrastructure
Infrastructure in the region is well established, supporting the numerous operational gold mines in the area. The regional
infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply
networks and communication infrastructure.
Mponeng comprises a twin-shaft system with two surface vertical shafts and two sub-vertical shafts. A decline system,
consisting of four declines, extends from 120 level towards 123 and 126 levels to access and mine the VCR. Ore and waste
material are hoisted separately with ore being delivered to the plant by means of a conveyor belt and the waste rock going to the
low-grade stockpile. Mponeng has its own processing plant situated adjacent to the mine. Operations are powered by electricity
from Eskom.
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Mponeng is accessible via the national and provincial roads. The general layout of Mponeng infrastructure in relation to the
neighbouring Harmony mines, TauTona and Savuka is displayed in the graphic below.
The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R6,051 million.
Mponeng did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no significant
encumbrances exist.
Geology
Mponeng is situated on the northwestern margin of the Witwatersrand Basin of South Africa, one of the prominent gold
provinces in the world. There are seven gold-bearing conglomerates within the lease area, of which only the VCR and CLR are
economically viable.
The VCR is a gold bearing quartz pebble conglomerate of intermediate to high grade. It forms the base of the Ventersdorp
Supergroup, which caps the Witwatersrand Supergroup through an angular unconformity. A characteristic of this horizon is the
pronounced palaeomorphology, where a thick reef is preserved in the form of terraces separated stratigraphically by a thin inter-
terrace slope reef.
The CLR, historically mined at the adjacent Harmony wholly-owned TauTona and Savuka Mines, is reported as part of the
Mponeng Mineral Resource. It is a c.20cm thick tabular, auriferous quartz pebble conglomerate. It lies 800-900m
stratigraphically deeper than the VCR, near the base of the Johannesburg Subgroup of the CRG of the Witwatersrand
Supergroup.
Both the VCR and the CLR have been subjected to faulting and are intruded by a series of igneous dykes and sills of
various ages that cut across the reefs. The gold mineralisation at Mponeng succeeded a period of deep burial, fracturing, and
alteration. The gold and other elements are believed to have precipitated through the reaction of hydrothermal fluids at high
temperatures along the reef horizons.
History
Mponeng was formerly known as Western Deep Levels South Shaft, or No.1 Shaft when AAC first owned the operation.
The No. 1 South Shaft system (i.e., the vertical twin shaft) together with the Mponeng gold plant were commissioned in 1986.
The shaft system allowed access to the deeper VCR in the southern part of the lease area.
The name changed in 1999 to Mponeng and was 100% owned and operated until recently by AngloGold Ashanti. As at
1 October 2020, Harmony took full control and ownership of Mponeng as part of the acquisition of AngloGold Ashanti's South
African business pursuant to the Mponeng Acquisition.
Mponeng is part of the West Wits mining district that includes the Savuka Mine (previously known as Western Deep Levels
No.2 Shaft) and the TauTona Mine (previously known as Western Deep Levels No. 3 Shaft) (both now also 100% owned by
Harmony). These two mines predominantly exploited the CLR within the lease area, which is now mostly mined out resulting in
them being placed on care and maintenance in 2017. The Mineral Resources and Mineral Reserves for TauTona were
transferred to Mponeng during the same year.
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During February 2024, the LOM extension project was approved allowing further access development into the VCR and
CLR.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The following mining rights make up the full mining lease area of approximately 6,704ha:
• GP30/5/1/2/2(01) MR valid from 1 February 2006 to 1 February 2036
• GP30/5/3/2/2(11) MR to be incorporated with GP(01) MR and;
• GP30/5/1/2/2(248) MR (for Sand) valid from 16 October 2012 to 15 October, 2025. Also to be incorporated into
GP(01) MR in terms of section 11.
As part of the Mponeng Acquisition, all mining rights related to Mponeng were transferred and are now held by Harmony.
There are two mining rights that form the Mponeng area which were successfully converted, executed and registered at the
MPRTO. The principal mining right (GP30/5/1/2/2(01) MR) covers an area of 6,704ha for the mining of gold, silver, nickel and
uranium. This mining right, granted on 1 February 2006, unless cancelled or suspended will continue in force for 36 years
ending 1 February 2036. The incorporation of the mining right, GP30/5/1/2/2(248) MR, is part of the section 11 and section 102
process.
The mining rights GP30/5/1/2/2(01) MR and GP30/5/1/2/2(248) MR were ceded from AngloGold Ashanti to Golden Core, a
wholly owned subsidiary of Harmony, on 1 October 2020 and were successfully registered in the Mining Titles Office on the
14 June 2021 as part of AngloGold Ashanti's sale of their last remaining South African assets to Harmony, including its West
Wits operation as part of the Mponeng Acquisition.
A section 102 application in terms of the MPRDA was submitted previously by AngloGold Ashanti in March 2017 to
consolidate its West Wits mining rights into a single mining right (GP30/5/1/2/2(01) MR) ("AngloGold Ashanti Application").
The AngloGold Ashanti Application was approved by the DMPR in August 2020, but was, however, not implemented due to a
change in circumstances as a result of the Mponeng Acquisition and was consequently withdrawn. On 15 February 2022,
Golden Core submitted an application in terms of section 102 of the MPRDA, substantively similar to the AngloGold Ashanti
Application, to consolidate the mining rights and mining right areas into a single mining right (GP30/5/1/2/2(01) MR) ("Golden
Core Application"). The Golden Core Application is currently pending at the DMPR.
A renewal application for GP30/5/1/2/2(248) MR was timeously submitted, while awaiting the processing of the Golden
Core Consolidation Application by the DMPR, as the DMPR advised that they could not process the consolidation application
while there was a renewal application submitted. The estimated timeline for approval is by end of 2025 and Harmony does not
view there being a material risk while the approval is pending.
A summary of the status of environmental permits and licenses issued as at 30 June 2025 related to Mponeng’s operation
is presented in the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr (Amendment) | (GP) 30/5/1/2/3/2/1 (01) | DMPR | 12 April 2012 | LOM |
Waste Management License | GAUT 002/09-10/W0011 | GDARD1 | 20 December 2024 | 2044 |
Hazardous Waste Generator Certificate | GPG-01-513 | GDARD1 | 14 July 2015 | There is no expiry on this certificate. It is still valid. |
Water Use License | 08/C23E/AEFGCEI/12157 | DWS | Licenced issued under Harmony Gold issued September 2022 | 9 years |
Certificate of Registration Inflammable Liquids and Substances | RP438/ptn5 | West Rand District Municipality | September 2024 | Annually |
1 Gauteng Department of Agriculture and Rural Development.
Mining Method
Mponeng is a deep level underground gold mine currently operating at depths ranging between 3,160m and 3,740m BMD,
and currently the deepest mine in the world with development at 3,841m BMD. Potential future mining operations at Mponeng
are expected to deepen the shaft bottom to 4,227m BMD. The reef portion currently being mined at Mponeng is accessible
between 3,000 – 3,600m BMD.
There are two mining methods in practice at Mponeng. Historically, longwall mining was practiced at Mponeng until the
breast mining method was used, aimed at reducing the occurrence of large seismic events. However, this has evolved to the
SGM method with backfill support. The SGM method makes use of dip pillars and reduced mining spans with pre-developed
tunnels, aimed at further control of stresses experienced in rock movement. While Mponeng’s business plan is based primarily
on the SGM method, there are sections of the mine that are still operating using the breast mining method. The mining
sequence is a V-shaped configuration, colloquially referred to as the “inverted Christmas tree”. An underhand face configuration
is adopted when mining towards the west and an overhand face configuration when mining towards the east.
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Mineral Processing
Mponeng's gold processing facility, The Mponeng plant has been in operation since 1986. The technology used to process
the gold-bearing ore is well established and is suitable for the style of mineralisation (VCR and CLR ore). The current capacity of
the plant is designed to process 95tph ore. The plant is operating below its designed throughput capacity and has shown its
ability to produce the forecasted ounces of gold at said capacity.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. W. Oliver | SAGC | MSCC, GDE (Mining Engineering) | All | Full time |
Exploration
Exploration at Mponeng has mainly focused on improving confidence in the geological model, as well as adding and
upgrading additional Mineral Resources to the mine. Geological data has been obtained through structured underground
channel (chip) sampling, mapping and drilling. This underground detailed, closer spaced data gathering exercise has been
preceded by surface exploration of the lease area using a historical geophysical seismic survey, as well as surface diamond
core drilling.
Exploration from underground platforms is currently continuing for the VCR in the east and west of the current mining
levels, between 3,500m and 3,700m BMD, to improve geological confidence.
Exploration of the VCR target areas west and east of the 126-level mining front continues for the in fiscal 2026. These will
form part of the approved exploration campaign. These targets will generate the needed information in two areas, on the
Booysens/Kimberley transition towards the east, ahead of the planned LOM extension areas and the area west of the Kimberley
estimation domains.
Both areas are currently showing high levels of variability that will benefit from the additional information that will be
generated for the completion of these exploration drill holes. VCR variability limits the forward confidence in the Mineral
Resource estimation. More data collected can assist the QP to define the zones of high variability.
Mponeng infill exploration drilling of the VCR from 2024 to 2025 completed 4,645m of drilling and increased confidence of
the estimated ounces on the eastern area of the Booysens Shale footwall zone. For the 2025 to 2026 period an additional
4,105m is planned to improve confidence of the Indicated Mineral Resource portions and continue to focus on the below
126 level LOM extension area.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate is reported in situ within the Mponeng lease area (which includes TauTona and Savuka), as
determined through the analysis of the reasonable prospect for economic extraction by underground mining method. The cut-off
value for the Mineral Resources is determined at 761cmg/t gold based on the economic assumptions presented in the table
below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 98.00 |
Unit cost1 | R/t | 7,581 |
1 Unit cost includes cash operating cost, royalty and ongoing development capital.
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
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The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is summarised
in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 3.767 | 16.60 | 62,527 | 2.688 | 15.55 | 41,800 | 49.6 |
Indicated | 13.471 | 12.96 | 174,629 | 13.719 | 13.48 | 184,915 | (5.6) |
Total / Ave. Measured + Indicated | 17.239 | 13.76 | 237,156 | 16.407 | 13.82 | 226,716 | 4.6 |
Inferred | 32.442 | 11.40 | 369,698 | 32.105 | 11.34 | 364,070 | 1.5 |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with
Item 1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. W. Olivier, who is Ore Reserve Manager at
Mponeng, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Mineral Resources are reported using a cut-off value of 761cmg/t determined using a gold price of US$2,349/oz.
5.Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The increase in Mineral Resource is due to the additions from geological model updates and structural gains based on new
geological information.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300. Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine
planning processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition,
Mineral Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining
widths, planned mine call and plant recovery factors.
The Mineral Reserve estimate, as at 30 June 2024, and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 3.564 | 10.32 | 36,783 | 4.466 | 9.67 | 43,190 | (14.8) |
Probable | 10.992 | 9.07 | 99,717 | 10.940 | 8.86 | 96,875 | 2.9 |
Total / Ave. Proved + Probable | 14.556 | 9.38 | 136,499 | 15.406 | 9.09 | 140,065 | (2.5) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. W. Olivier, who is the Mponeng Ore Reserve Manager,
and a Harmony employee.
2.Tonnes, grade, and gold content are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.Mineral Reserves are reported using a cut-off grade of 971cmg/t determined using a gold price of US$2,237/oz gold.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The increase in the Mineral Reserves is due to introducing ounces from the LOM extension through design optimisation
and an increase in average mining grade.
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The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Mponeng. The modifying factors are consistent with the modelling, planning and computing estimates used in determining
the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Relative density | t/m³ | 2.71 |
Stoping width | cm | 152.9 |
Gully | % | 6.85 |
Off reef | % | 7.89 |
Waste to reef | % | 2.42 |
Flushing tons | % | 5.96 |
Discrepancy | % | 15.47 |
Mine call factor | % | 80.74 |
Plant recover factor | % | 98.00 |
Mine recover factor | % | 79.13 |
Plant call factor | % | 100.00 |
Mineral Reserve cut-off | cmg/t | 971 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Target
Property Description
Target is an advanced, single-shaft, deep-level gold mine which has been operational for approximately 30 years. While
most of the gold mineralisation extracted comes from mechanised mining (massive mining techniques), conventional stoping is
still employed for extraction of gold and also to de-stress areas ahead of mechanised mining. The mine is located in the Free
State Province of South Africa, approximately 270km southwest of Johannesburg and 30km north of the town of Welkom, at
longitude 26°38'24.92"E and latitude 27°45'42.59"S. Target is wholly-owned and operated by Harmony.
The following graphic illustrates the location of the Target mine, along with certain infrastructure.
All relevant underground mining and surface right permits, and any other permit related to the work conducted on the
property have been obtained and are valid. There are no known legal proceedings against Harmony, which threaten its mineral
rights, tenure, or operations.
Operational Infrastructure
The surrounding areas of Welkom and Virginia are well developed in terms of access and mining-related infrastructure
supporting the numerous operational gold mines in the area. The regional infrastructure includes national and provincial paved
road networks, power transmission and distribution networks, water supply networks and communication infrastructure. Target’s
surface and underground infrastructure, including its power and water supplies, are sufficient for the LOM plan production
requirements.
Target includes a single underground mine constructed as an extension to the Loraine Gold Mine (“Loraine”) and uses a
single shaft as access. The ore and development rock are hoisted together, with ore milled and processed at the Target Plant
adjacent to the mine. Operations are powered by electricity from Eskom.
The Target mining area is well developed in terms of access and mining-related infrastructure. Access to the Target shafts
(1, 2, 3 and 5) is via a well-maintained paved road. Adequately maintained roads are used to access other areas of the mine
such as the explosives magazines, sewage works, tailings dam and the evaporation ponds. The area also has access to rail
links and an airfield within proximity.
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The surface infrastructure associated with Target is presented in the graphic below.
The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R2,067 million.
Target did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no significant
encumbrances exist.
Geology
Target is situated on the north-western margin of the Witwatersrand Basin of South Africa, one of the prominent gold
provinces in the world. The major gold bearing conglomerate reefs are mostly confined to the CRG of the Witwatersrand
Supergroup.
Folding forms the major structural feature within the lease is and is manifested as an asymmetric syncline whose axis
trends N15°W, with a general plunge of 10° to 12° north, although this is variable due to local structural features. The dip of the
western limb of the syncline is often more than 55° eastwards. Numerous minor faults are also present.
These faults, with a displacement generally of less than 15m and traceable over a strike distance of less than 150m are too
numerous to classify, however, it can be said that the eastern limb of the trough is less faulted than the western limb.
Gold mineralisation currently exploited is hosted within a succession of Elsburg and Dreyerskuil ("DK") quartz pebble
conglomerate reefs hosted by the van den Heeversrust and Dreyerskuil (Uitkyk) members of the Eldorado (Elsburg) Formation,
respectively.
Additional mineralisation occurs in the Big Pebble Reef of the underlying the Kimberley (formerly Aandenk) Formation. All
these units are within the Turffontein Subgroup of the CRG. Mineralisation is associated with the presence of medium to coarse,
clast-supported oligomictic pebble horizons. The presence of allogenic (buckshot) pyrite and detrital carbon is also common.
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History
Anglovaal Limited ("Anglovaal") previously held the mineral rights for the Target property. Target Exploration Company
Limited ("Target Exploration Company"), a company formed by Anglovaal specifically for the purpose of exploration, later
acquired this area.
Options to the mineral rights north of Target were acquired by Sun Mining and Prospecting Company (Pty) Limited (“Sun”).
The formation of Avgold Limited ("Avgold")in 1996 was intended to further the gold mining and exploration interests of
Anglovaal.
Harmony acquired Target in May 2004 by acquiring 100% of Avgold's shares. During 2017 an optimisation project
commenced with the aim of reducing hauling distances and to improve gold production. The surface bulk-air-cooler and the
No. 8 fridge plant were commissioned in November 2021. 291 level crusher installation and 282-291 level belt extension were
completed and commissioned in November 2023.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The current mining rights encompasses an area of 7,952.78ha. Harmony holds several mining rights for Target, which were
successfully converted and executed as new order mining rights. Certain of these rights are still to be registered at the MPRTO.
An application for the renewal of FS30/5/1/2/2/14MR has been lodged with the DMPR. Despite the expiry date the mining right
will remain in force until such time the application has been granted or refused by the DMPR.
The summary of mineral tenure and the approved mining rights include the following:
•FS30/5/1/2/2/14MR, which is valid from 30 November 2007, to 29 December 2025, and covers 4,237.00ha; and
•FS30/5/1/2/2/225MR, which is valid from 2 December 2013, to 11 December 2026, and 3,715.78ha.
A summary of the status of environmental permits and licenses issued as at 30 June 2025, related to Target is presented in
the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr | FS 30/5/1/2/3/2/1(14) EM | DMPR | 30 November 2002 | Renewal in progress |
Atmospheric Emission License | LDM/RAEL/01/2024 | Lejweleputswa District Municipality | February, 2024 | January, 2029 |
Water Permit | 789N | DWS | 4 November 2008 | Valid pending issue of new license |
Water Permit | 1046B | DWS | 4 November 2008 | Valid pending issue of new license |
Mining Method
The Target Mine deposit is made up of stacked mineralised multiple reef bands interbedded with quartzites and
quartzwackes. The Elsburg Reefs are composited into thick mineralised packages to enable the application of massive open
stoping mining method, while the Dreyerskuil Reefs are separated into thinner discrete horizons that enable narrow reef
conventional mining method.
Target Mine is essentially a trackless mining operation with a combination of highly mechanised massive open stope, sub-
level open stope mining, and labour-intensive narrow reef stoping, the latter being more typical of South African gold mines’
conventional stoping.
The primary ore extraction method adopted at Target is massive mining of the thick mining horizons (EA1, EA3, EA7 and
EA8) through a combination of scattered open stoping supplemented with the use of a 6%-cement backfill, and sub-level open
stoping which does not make use of backfilling.
The balance of the ore is mined using a narrow reef mining ("NRM") method on the thinner Dreyerskuil Reefs, which does
not make use of backfilling either.
Massive open stoping accounts for ±70% of the ore production with ±30% coming from conventional narrow reef stoping.
Mineral Processing
The Target Plant was designed and commissioned in November 2001. The plant was designed to treat a total tonnage of
105ktpm with a potential to expand to 160ktpm for future demand. Currently the plant treats ore from Target and Target 2 waste
dump.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. S. Motlatla | SACNASP | BSc. Hons (Geol), GDE (Mining) | All | Full Time |
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Exploration
Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel
(chip) sampling.
Initial surface drilling carried out during the 1980s, under the auspices of Sun, was designed to delineate the northward
continuation of the synclinal axis, around which most of Loraine’s gold deposits are located. Following the incorporation of
Target Exploration Company in 1990, a total of 17 drillholes and three long deflections from existing drillholes were drilled in
three arrays parallel to the western margin, namely the Western, Central and Eastern arrays.
The central array targeted the Elsburg Reefs, while the western and eastern arrays focused on definition of the proximal
(steep west limb) and distal Kimberley and Basal Reefs, respectively.
The positive surface drilling results led to the construction of an underground drilling platform. Underground exploration
drilling has been on-going throughout the operational life of Target as the mine deepens. Most of the underground drillholes are
used in the geological modelling and estimation of the current Mineral Resources.
Underground diamond core drilling is conducted using hydraulic driven drill rigs, which typically drill BX core. Drill holes are
typically short, rarely exceeding 300m in length.
Fans of drill holes are drilled from diamond drilling bays, which are developed at 50m intervals along the decline return
airway (“RAW”) decline. The drilling fans consist of up to ten individual drill holes at inclinations ranging from -15° East to +30°
West of vertical, or as dictated by local geological structures. Maximum drillhole lengths of 350m are required for complete
Dreyerskuil intersections in the synclinal axis. Drill holes are stopped once the Ventersdorp lava has been intersected, or, in the
case of flatter drill holes, once the trough axis has been identified and the drill hole is drilling parallel to the bedding.
Exploration drilling is currently in progress to determine the economic potential of EA3 Reefs and DK Reefs along the sub-
crop of the Elsburg Reefs. Additional to the capital exploration, an underground infill drilling program is in place to improve data
density to enhance the estimation model.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate is reported in situ within the Target lease area, as determined through the analysis of the
reasonable prospect for economic extraction by underground mining methods. The cut-off grade for the Mineral Resource is
determined at 3.08g/t gold based on the economic assumptions presented in the table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 94.50 |
Unit cost1 | R/t | 4,181 |
1 Unit cost includes cash-operating cost, royalty and on-going development capital.
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves is summarised
in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 5.588 | 7.77 | 43,411 | 4.814 | 8.41 | 40,488 | 7.2 |
Indicated | 3.761 | 6.94 | 26,112 | 3.890 | 6.82 | 26,538 | (1.6) |
Total / Ave. Measured + Indicated | 9.349 | 7.44 | 69,524 | 8.704 | 7.70 | 67,025 | 3.7 |
Inferred | 3.686 | 5.99 | 22,080 | 3.868 | 5.75 | 22,237 | (0.7) |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. S Motlatla, who is the Target Ore Reserve Manager,
and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
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4.The Mineral Resources are reported using a cut-off grade of 3.08g/t determined at a gold price of US$2,349/oz.
5.Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The decrease in Mineral Resources was mainly due to depletion that was partially offset as result of structural changes in
block 5.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300. Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate, as at 30 June 2024 and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 2.421 | 4.46 | 10,796 | 2.459 | 4.27 | 10,508 | 2.7 |
Probable | 1.082 | 4.48 | 4,850 | 1.145 | 4.87 | 5,577 | (13.0) |
Total / Ave. Proved + Probable | 3.503 | 4.47 | 15,646 | 3.605 | 4.46 | 16,085 | (2.7) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. S. Motlatla, who is the Target Ore Reserve Manager,
and a Harmony employee.
2.Tonnes, grade, and gold content are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content is recovered gold content after taking into consideration the modifying factors.
5.The NRM Mineral Reserves are reported using a cut-off value of 752cmg/t determined using a gold price of US$2,237/oz. The massive open
stoping Mineral Reserves are reported using a cut-off grade of 3.45g/t determined using a gold price of US$2,237/oz.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves is mainly due to depletion that was partially off-set by additional ounces identified due to
structural changes in block 5.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Target. The modifying factors are consistent with the modelling, planning and computing estimates used in determining the
Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Relative Density | t/m3 | 2.71 |
Average Stoping Width | cm | 171 |
Mine Call Factor | % | 95.00 |
Plant Recovery Factor | % | 94.50 |
Mineral Reserve Paylimit - NRM | cmg/t | 752 |
Mineral Reserve Cut-off - Massive Open Stoping | g/t | 3.45 |
Mineral Reserve Cut-off - Development | g/t | 3.45 |
Dilution - Massive Open Stoping | % | 6.00 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Tshepong North
Property Description
The Tshepong North mine comprises the underground and surface assets, situated between the towns of Welkom and
Odendaalsrus in the Free State Province of South Africa. The mine is a moderate to deep-level gold mine, operating at depths of
between 1.6km and 2.4km BMD.
The mine is located in the Free State Province of South Africa, approximately 250km southwest of Johannesburg and
15km to the north of the town of Welkom, situated at a latitude of 27°51’56.45”S and longitude of 26°42’45.15”E.
The following graphic illustrates the location of the Tshepong North, along with certain infrastructure.
Historically, the primary reef mined is the Basal Reef although B Reef mining has increased in the past four years from 8%
to 32%.
All relevant underground mining and surface right permits, and any other permit related to the work conducted on the
property have been obtained and are valid. There are no known legal proceedings against Harmony, which threaten its mineral
rights, tenure, or operations.
Operational Infrastructure
The areas surrounding Welkom and Odendaalsrus are well-equipped with access and mining-related infrastructure, which
effectively supports the region's numerous operational gold mines. This infrastructure includes national and provincial paved
road networks, power transmission and distribution systems, water supply networks, and communication facilities.
Tshepong North operates with a single shaft system, where ore and waste are hoisted to the surface through the main
vertical shaft. Additionally, a twin decline system extends from 66 to 75 level, with ongoing capital work to deepen it to 77 level.
The initial reef is projected to commence mining in April 2029. Ore and waste are transported separately using a conveyor belt
system.
Ore extracted from Tshepong North is transported by rail from the shaft to the Harmony One Plant in Welkom for
processing. The operations are powered by electricity supplied by Eskom.
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The surface infrastructure associated with Tshepong North is displayed in the graphic below.
The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R2,553 million.
Tshepong North did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no
significant encumbrances exist.
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Geology
Tshepong North is situated in the Free State Goldfield, on the southwestern margin of the Witwatersrand Basin of South
Africa, one of the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to
the CRG of the Witwatersrand Supergroup.
The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as north-trending, within
a syncline that is plunging to the north. The syncline has been divided by faults into the Odendaalsrus, Central Horst and
Virginia sections. The Tshepong North mining right area is also affected by the Ophir and Dagbreek faults.
Tshepong North exploited primarily the Basal Reef, which occurs within the Harmony Formation of the Johannesburg
Subgroup of the CRG.
Mineralisation also occurs within the stratigraphically higher A and B Reefs respectively of the Aandenk and Spes Bona
Formations, within the Turffontein subgroup of the CRG. However, only the B Reef can be economically extracted.
Mineralisation is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The
presence of allogenic pyrite and detrital carbon is also common.
History
The feasibility study for the initial development of Tshepong North was concluded in 1984. Work to establish the site started
in September 1984 and, by 1986, shaft sinking was underway. Sinking and equipping of the shaft were completed in 1991, with
the mine being commissioned in November 1991.
The Tshepong South and Tshepong North were merged into the Tshepong operation in 2017 but again split into separate
entities in 2021.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The current mining right for Tshepong North encompasses an area of 10,798.74ha. Harmony holds several mining rights in
the Free State Goldfields which have been successfully converted and executed as new order mining rights, some of which are
still to be registered at the MPRTO.
Tshepong North is wholly owned by Harmony, including the associated mineral rights. Harmony commenced acquiring the
assets through the acquisition of AngloGold Ashanti's Free State operations in 2001.
Mining at Tshepong North is carried out under the following mining rights, covering both Tshepong North and Tshepong
South:
•FS30/5/1/84MR, which is valid from 11 December 2007, to 10 December 2029, and covers an area of 10,798.74ha.
A summary of the status of environmental permits and licenses issued as at 30 June 2025, related to both Tshepong North
and Tshepong South is presented in the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
Environmental Management Programme | FS 30/5/1/2/3/2/1(84)EM | DMPR | 11 December 2007 | 10 December 2029 |
Water Permit 936B. Harmony. Free State Geduld Mines. Discharge of untreated effluents. | B33/2/340/31 | DWS | 2 April 1981 | LOM |
Water Permit 870B. Harmony. Discharge of untreated effluents. | B33/2/340/25 | DWS | 27 May 1991 | LOM |
Water Permit 1214N. Free State Consolidated Gold Mine. Tshepong, Freddie’s and Phakisa shafts. | B33/2/340/12 | DWS | Not indicated. | LOM |
Water Permit 1214N. Free State Consolidated Gold Mine. Tshepong, Freddie’s and Phakisa shafts. | B33/2/340/12 | DWAFEC1 | Not indicated. | LOM |
1 Department of Water Affairs, Forestry and Environmental Conservation.
Mining Method
Tshepong North mine is categorised as a moderate to deep-level underground gold mining operation, currently extending
to depths of up to 2,427 metres BMD. SGM is the preferred mining technique employed at Tshepong North. This method utilises
dip pillars and reduced mining spans in conjunction with pre-developed tunnels to enhance control over rock stress. The SGM
configuration follows a V-shaped sequence, often referred to as the “inverted Christmas tree.” SGM is particularly effective for
NRM in underground environments. The method is characterised by its distinct layout, where primary development occurs off-
reef (in waste rock) and secondary development takes place on-reef (within the mineralised zone).
This approach is designed for deeper mining operations and offers several advantages, with safety being a primary benefit.
A notable aspect of the SGM method is its advance from raises in one direction at a time, towards stabilising or regional pillars.
This practice minimises the formation of remnant pillars, thereby reducing the risk of seismic activity.
While the primary focus of Tshepong North’s business plan is on the SGM methodology and sequencing, certain sections
of the mine also employ alternative mining methods, including breast stoping, undercut stoping, and open stoping.
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Mineral Processing
All ore mined at Tshepong North is processed at Harmony One Plant.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. A. Louw | SACNASP | BSc. Hons. (Geohydrology) | All | Full Time |
Exploration
Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel
(chip) sampling.
Exploration from underground platforms is currently continuing for the Tshepong sub-75 level development, to improve
geological confidence.
Tshepong North is engaged in ongoing exploration drilling of the B Reef to assess the potential extension of existing pay
shoots and their connection to adjacent mines. Footwall development at the 71 Level (decline area) commenced during fiscal
2022 and is being utilised as a platform for drilling to confirm and delineate the anticipated B Reef channel, which is projected to
extend in an east-north-southwest direction. Based on recent exploration results and ongoing stope face mining activities at
69 Level (decline area), a concept study has been initiated to evaluate the potential B Reef extraction between 60 and 66 Levels
(upper mine area).
Throughout the mine’s operational life, underground exploration drilling has been conducted as the mine deepens. This
drilling is performed using hydraulic and pneumatic drill rigs for diamond core drilling.
Drill holes are executed from diamond drilling bays, developed at 50m intervals along the ends of footwall developments
(X/Cs) and at 100m intervals along haulages and RAWs. The drilling fans typically consist of up to ten individual drill holes, with
inclinations varying from -15° to +30° of vertical, or adjusted based on local geological structures.
The underground infill drilling system is in place to improve data density in specific areas and are drilled from the
underground development access drives.
Logging procedures are conducted as per the Harmony company standards, which are used on all surface and
underground mines and are best practice and have been in place consistently since 2001.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate of Tshepong North is considered to have reasonable prospects for economic extraction.
The cut-off value for the Mineral Resources is determined at 700cmg/t for the gold based on the economic assumptions
presented in the table below at 30 June 2025.
Tshepong North | ||
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 95.60 |
Unit cost1 | R/t | 4,942 |
1 Unit cost includes cash operating cost, royalty and ongoing development capital
This cut-off values represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate for Tshepong North, as at 30 June 2024 and 2025, exclusive of the reported Mineral
Reserves, is summarised in the table below.
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Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 12.125 | 12.40 | 150,403 | 12.000 | 12.57 | 150,790 | (0.3) |
Indicated | 6.567 | 11.43 | 75,096 | 4.609 | 10.56 | 48,670 | 54.3 |
Total / Ave. Measured + Indicated | 18.692 | 12.06 | 225,499 | 16.609 | 12.01 | 199,460 | 13.1 |
Inferred | 8.272 | 9.30 | 76,917 | 7.926 | 10.16 | 80,495 | (4.4) |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with
Item 1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. A. Louw, who is Ore Reserve Manager at
Tshepong North, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Mineral Resources are reported using a cut-off value of 700cmg/t determined at a gold price of US$2,349/oz.
5.Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The increase in the Mineral Resources is due to the increase B-Reef Mineral Resources as result of new geological
information.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate for Tshepong North, as at 30 June 2024, and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 2.403 | 4.55 | 10,936 | 3.009 | 4.77 | 14,341 | (23.8) |
Probable | 1.606 | 5.85 | 9,391 | 1.990 | 5.57 | 11,083 | (15.3) |
Total / Ave. Proved + Probable | 4.009 | 5.07 | 20,327 | 4.999 | 5.09 | 25,430 | (20.1) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. A. Louw, who is Ore Reserve Manager at Tshepong
North, and a Harmony employee.
2.Tonnes, grade, and gold content are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content has not taken metallurgical recovery factors into account.
5.Mineral Reserves are reported using a cut-off grade of 750cmg/t determined using a gold price of US$2,237/oz gold.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The change in Mineral Reserve was mainly due to depletion that was partially offset by additional ounces identified.
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The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Tshepong North. The modifying factors are consistent with the modelling, planning and computing estimates used in
determining the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Relative Density | t/m3 | 2.72 |
Stoping Width | cm | 118 |
Gully | % | 8.40 |
Off Reef | % | 4.81 |
Waste to Reef | % | 4.00 |
Flushing tons | % | 2.07 |
Discrepancy | % | 7.93 |
Mine Call Factor | % | 68.00 |
Plant Recover Factor | % | 95.60 |
Mine Recover Factor | % | 65.01 |
Plant Call Factor | % | 100.00 |
Mineral Reserve cut-off | cmg/t | 750 |
Note: Development waste to reef, including the decline development.
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Tshepong South
Property Description
The Tshepong South mine comprises one operating underground gold mine namely “Tshepong South”. Tshepong South is
a mature, moderate to deep-level underground operation using conventional underground mining methods to depths of 2,427m
BMD. The mine utilises the Tshepong North and Nyala shafts. Tshepong South’s success is greatly dependent on the services
rendered via Nyala where four main compressors are commissioned and Tshepong South’s ore is being hoisted.
The mines are located in the Free State Province of South Africa, approximately 250km southwest of Johannesburg and
15km to the north of the town of Welkom. Tshepong South is situated adjacent to the south of Tshepong North, and is located at
a latitude of 27°54’1.27”S and longitude of 26°43’30.05”E.
The following graphic illustrates the location of Tshepong South, along with certain infrastructure.
The primary reef mined is the Basal Reef, with additional gold mineralisation being found in the B Reef and A Reef. The
B Reef, secondary reef mined, which lies approximately 145m stratigraphically above the Basal Reef, contributes to about 30%
of the total mining production profile at Tshepong South.
All relevant underground mining and surface right permits, and any other permit related to the work conducted on the
property have been obtained and are valid. There are no known legal proceedings against Harmony, which threaten its mineral
rights, tenure, or operations.
Operational Infrastructure
The surrounding areas of Welkom and Odendaalsrus are well developed in terms of access and mining-related
infrastructure, which supports the numerous operational gold mines in the area. The regional infrastructure includes national and
provincial paved road networks, power transmission and distribution networks, water supply networks and communication
infrastructure.
Tshepong South operates a single vertical shaft for man and materials. Rock is transported from the underground working
via a RailVeyorTM system to the Nyala shaft for hoisting.
The Tshepong South ore is transported, by rail, from Nyala shaft to the Harmony One Plant in Welkom for processing.
Tshepong South is powered by electricity from Eskom.
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The surface infrastructure associated with Tshepong South is displayed in the graphic below.
The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R2,584 million.
Tshepong South did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no
significant encumbrances exist.
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Geology
Tshepong South is situated in the Free State Goldfields, on the southwestern margin of the Witwatersrand Basin of South
Africa, one of the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to
the CRG of the Witwatersrand Supergroup.
The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as north-trending, within
a syncline that is plunging to the north. The syncline has been divided by faults into the Odendaalsrus, Central Horst and
Virginia sections. The Tshepong South mining right area is also affected by the Tribute fault (~270m) and Arrarat Fault (~180m)
to the far south-east of the shaft.
Tshepong South exploited primarily the Basal Reef, which occurs within the Harmony Formation of the Johannesburg
Subgroup of the CRG.
Mineralisation also occurs within the stratigraphically higher A- and B Reefs of the Kimberley (formerly Aandenk)
Formation, within the Turffontein subgroup of the CRG. However, only the B Reef can be economically extracted.
Mineralisation is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The
presence of allogenic pyrite and detrital carbon is also common.
History
Tshepong South was formerly known as FSG 4, Freddies 4 and Phakisa. Tshepong South development commenced in
October 1993 and shaft sinking was started in February 1994. In 1995, shaft sinking was halted on 59 Level due to the
prevailing low gold price. Operations at Tshepong South recommenced in September 1996 and sinking was completed to 75
Level, before being halted again in 1999.
Harmony acquired Tshepong South as part of the acquisition from AngloGold Ashanti’s Free State operations (previously
known as Freegold), which completed in September 2003. Sinking and equipping was completed to a depth of 2,427m in 2006.
Tshepong South and Tshepong North were merged into the Tshepong operation by Harmony in 2017, but again split into
separate entities in 2021.
Mining of the B-Reef commenced in February 2024 and it is contributing approximately 20% of the total production profile.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The current mining right for Tshepong South and Tshepong North encompasses an area of 10,798.74ha. Harmony holds
several mining rights in the Free State Goldfields which have been successfully converted and executed as new order mining
rights, some of which are still to be registered at the MPRTO.
Tshepong South is wholly owned by Harmony, including the associated mineral rights. Harmony commenced acquiring the
assets through the acquisition of AngloGold Ashanti's Free State operations in 2001, together with ARMGold. ARMGold was
subsequently incorporated into Harmony in 2003, giving Harmony 100% ownership and control of the Tshepong South.
Mining at Tshepong South is carried out under the following mining right, covering both Tshepong North and Tshepong
South:
•FS30/5/1/84MR, which is valid from 11 December 2007 to 10 December 2029 and covers an area of 10,798.74ha.
A summary of the status of environmental permits and licenses issued as at 30 June 2025, related to both Tshepong South
and Tshepong North is presented in the table below.
Permit / License | Reference No. | Issued By | Date Granted | Validity |
EMPr | FS 30/5/1/2/3/2/1(84)EM | DMPR | 11 December 2007 | 10 December 2029 |
Water Permit 936B. Harmony. Free State Geduld Mines. Discharge of untreated effluents. | B33/2/340/31 | DWS | 2 April 1981 | LOM |
Water Permit 870B. Harmony. Discharge of untreated effluents. | B33/2/340/25 | DWS | 27 May 1991 | LOM |
Water Permit 1214N. Free State Consolidated Gold Mine. Tshepong, Freddie’s and Phakisa shafts. | B33/2/340/12 | DWS | Not indicated. | LOM |
Water Permit 1214N. Free State Consolidated Gold Mine. Tshepong, Freddie’s and Phakisa shafts. | B33/2/340/12 | DWAFEC1 | Not indicated. | LOM |
1 Department of Water Affairs, Forestry and Environmental Conservation.
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Mining Method
Tshepong South may be classified as a moderate to deep-level underground gold mine currently operating at depths of up
to 2,427m BMD.
The orebody at Tshepong South is broken up into blocks by geological structures with large throws. Due to the orebody
being broken up into these smaller blocks, a Scattered mining method is used at Tshepong South. Scattered mining is when
mining is done between the major geological structures. The mine design criteria are based on the sequential grid mining
method where the crosscuts are spaced at fixed distance of 160m however additional development can be required in some
instances and/or crosscut spacing reduced/increased depending on the prevailing geological structures. Primary waste
development is done ahead of the stoping front in the virgin stress environment.
Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised
zone). In primary development, horizontal haulages are developed from the vertical shaft, extending to the extremities of the
mining level. Inter-level spacing is the perpendicular distance between two consecutive level stations underground. Further
development is done at set intervals along the haulages towards the mineralised zones in the form of crosscuts. For secondary
development, an inclined excavation that connects two levels is established, referred to as a raise or winze, depending on the
upwards or downwards direction of the development.
A key feature of scattered mining is that the mine design includes pillars in the stoping areas that are designed to cave in a
planned and controlled manner. These pillars are referred to as crush pillars and the dimensions of the pillars are determined by
the geotechnical properties of the host rock. The use of crush pillars minimises the risk of unpredicted collapse of stoping areas.
These collapses can compromise the safety of mining operations and may lead to permanent closure of stoping panels or
sterilisation of ore.
Mineral Processing
All ore mined at Tshepong South is processed at Harmony One Plant.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. J.P. van Deventer | SACNASP | B.Sc Hons (Geology) | All | Full Time |
Exploration
Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel
(chip) sampling. The underground infill drilling system is in place to improve data density in specific areas and are drilled from
the underground development access drives.
Since 2022 capital exploration drilling has been ongoing to determine areas of economic value in the B Reef channels
extrapolated from the high grade channels being mined in the west-south area of Tshepong North shaft.
Underground exploration drilling has been ongoing throughout the operational life of Tshepong South. Underground
diamond core drilling is conducted using hydraulic driven and pneumatic drill rigs.
Fans of drill holes are drilled from diamond drilling bays, which are developed at 50m intervals along footwall development
ends (X/Cs) and 100m intervals along haulages and RAWs. The drilling fans consist of up to ten individual drill holes at
inclinations ranging from +5° to +90° of vertical, or as dictated by local geological structures.
The underground infill drilling system is in place to improve data density in specific areas and are drilled from the
underground development access drives.
Logging procedures are conducted as per the Harmony company standards, which are used on all surface and
underground mines and are best practice and have been in place consistently since 2001.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
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Mineral Resource Estimate
The Mineral Resource estimate for Tshepong South is considered to have reasonable prospects for economic extraction.
The cut-off value for the Mineral Resources is determined at 782cmg/t for the gold, based on the economic assumptions
presented in the table below at 30 June 2025.
Tshepong South | ||
Description | Unit | Value |
Gold price | US$/oz | 2,349 |
Exchange rate | R:US$ | 18.54 |
Gold price | R/kg | 1,400,000 |
Plant recovery factor | % | 95.32 |
Unit cost1 | R/t | 5,442 |
1 Unit cost includes cash operating cost, royalty and ongoing development capital.
This cut-off values represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate for Tshepong South, as at 30 June 2024 and 2025, exclusive of the reported Mineral
Reserves is summarised in the table below.
Fiscal Year Ended 30 June | % Change | ||||||
2025 | 2024 | ||||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | 5.507 | 12.80 | 70,514 | 6.155 | 12.80 | 78,768 | (10.5) |
Indicated | 8.892 | 11.35 | 100,964 | 8.687 | 11.10 | 96,434 | 4.7 |
Total / Ave. Measured + Indicated | 14.399 | 11.91 | 171,478 | 14.843 | 11.80 | 175,202 | (2.1) |
Inferred | 22.729 | 11.33 | 257,508 | 22.799 | 11.03 | 251,447 | 2.4 |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. J.P. van Deventer who is the Ore Reserve Manager at
Tshepong South, and a Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Mineral
Resource in order to obtain the S-K 1300 Mineral Resource.
4.The Mineral Resources are reported using a cut-off value of 782cmg/t determined at a gold price of US$2,349/oz.
5.Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
7.Rounding as required by reporting guidelines may result in apparent summation differences.
8.The Mineral Resource estimate is for Harmony’s 100% interest.
The increase in Mineral Resources was due to the increase in the B Reef Mineral Resources as result of new geological
information.
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Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
The Mineral Reserve estimate for Tshepong South, as at 30 June 2024, and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
2025 | 2024 | ||||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | 2.159 | 6.53 | 14,102 | 2.355 | 8.02 | 18,900 | (25.4) |
Probable | 0.423 | 3.22 | 1,362 | 0.229 | 7.08 | 1,621 | (16.0) |
Total / Ave. Proved + Probable | 2.582 | 5.99 | 15,464 | 2.584 | 7.94 | 20,521 | (24.6) |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. J.P. van Deventer who is the Ore Reserve Manager at
Tshepong South, and a Harmony employee.
2.Tonnes, grade, and gold content are declared as net delivered to the mills.
3.Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical
recovery factors have not been applied to the reserve figures.
4.Gold content has not taken metallurgical recovery factors into account.
5.Mineral Reserves are reported using a cut-off grade of 790cmg/t determined using a gold price of US$2,237/oz gold.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves was mainly due depletion and Geological structure losses that was partially off-set by
Inferred B-Reef Mineral Resources that was upgraded and converted to Proved and Probable Reserves.
The table below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for Tshepong South. The modifying factors are consistent with the modelling, planning and computing estimates used in
determining the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Relative Density | t/m3 | 2.72 |
Stoping Width | cm | 140 |
Gully | % | 6.17 |
Off Reef | % | 5.43 |
Waste to Reef | % | 0.23 |
Flushing tons | % | — |
Discrepancy | % | 12.73 |
Mine Call Factor | % | 80.00 |
Plant Recover Factor | % | 95.32 |
Mine Recover Factor | % | 76.26 |
Plant Call Factor | % | 100.00 |
Mineral Reserve cut-off | cmg/t | 790 |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Mine Waste Solutions
Property Description
Mine Waste Solutions is comprised of two distinct, geographically separated, operations namely the MWS operation
located on the Free State - North West provincial boundary, and the West Wits operation situated in the West Rand region of the
Gauteng Province. Each operation will be discussed separately due to their geographical locations.
Mine Waste Solutions and its associated mineral rights are wholly owned by Harmony. Harmony acquired the assets as
part of the transaction to take full ownership and control of AngloGold Ashanti's remaining South African business, as of 1
October 2020.
The location of the MWS operation and the West Wits operation is presented in figure below.
The following graphic illustrates the location of the MWS operation, along with certain infrastructure.
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The following graphic illustrates the location of the West Wits operation, along with certain infrastructure is
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The MWS operation is located in the Vaal River area, and straddles the Free State, North West provincial border of South
Africa, close to the town of Klerksdorp. The MWS gold plant (26° 50’8.66”E; 26° 47’41.83”S) is situated close to the town of
Stilfontein, while the TSFs and WRD for this operation are scattered over an area that stretches approximately 13.5km north to
south and 14.0km east to west.
The West Wits operation is situated in the West Rand region of the Gauteng Province. The West Wits operation is situated
approximately 75km west of Johannesburg. The site is approximately 7km south of Carletonville. West Wits operation occupies
an area of 4,176ha in extent and is close to the boundary between Gauteng and North West Province.
The West Wits operation reprocesses tailings from the Old North TSF dumps at the Savuka plant (26° 25’20.31”E and
27° 24’11.30”S).
There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations.
Operational Infrastructure
Infrastructure in the region is well established supporting the numerous operational gold mines in the area. The regional
infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply
networks and communication infrastructure. Operations are powered by electricity from Eskom.
The MWS operation is accessible from Johannesburg via the N12 national road and R502 regional road in Klerksdorp,
North West. A large network of either tarred roads or well-maintained gravel roads exist between the tailing dams, WRDs and
the MWS plant that are scattered in the area. The West Wits operation near Carletonville is accessible via the N12 national road
and R500 regional road from Johannesburg.
The surface infrastructure associated with the MWS operation and the West Wits operation is presented in the graphic
under "– Property Description" above.
The “property, plant, and equipment” as of 30 June 2025, including buildings and mine infrastructure, mining assets,
rehabilitation and assets under construction, had a carrying value of R4,563 million for MWS and R172 million for West Wits
Surface operation.
Mine Waste Solutions and West Wits Surface operation did not incur any fines or penalties for non-compliance during the
year ended 30 June 2025 and no significant encumbrances exist.
Geology
Material contained in the TSFs and WRDs predominantly originates from deep level gold mines, operated by Harmony and
others, mostly located in Klerksdorp and Carletonville. The West Wits operation predominantly extracts tabular gold-bearing
conglomeratic reefs, namely the CLR and VCR. The MWS operation, however, mainly exploits TSFs and WRD derived from the
VR.
The Witwatersrand Reefs occur within the Archean Witwatersrand Basin which hosts the Witwatersrand Supergroup
succession. The VCR horizon is located at the top of the Turffontein Subgroup of the CRG, capping the Witwatersrand
Supergroup. The VR horizon is situated within the Krugersdorp Formation, in the Johannesburg Subgroup of the CRG. The CLR
is situated near the base of the Johannesburg Subgroup.
The TSF material comprises previously treated residues of gold-bearing conglomeratic reefs processed by CIL. They are
man-made “deposits” and are not the result of natural sedimentary processes. The grade of the TSFs is determined by the
grade of the ore source at the time that they were processed, and the processing efficiency.
The WRDs are unconsolidated and are comprised of untreated, low grade, gold-bearing material from underground
workings. The WRDs are also man-made deposits, with very little structure or continuity, and one in which the grade does not
behave as a natural mineral deposit.
The most significant mineral in the TSFs and WRDs is quartz, which makes up more than 60% of the bulk mineral
composition. The gold predominantly occurs in pyrite. Other minerals identified include uranium, iron oxide, titanium oxide and
calcite from the VR, VCR and CLR conglomerates.
History
The MWS operation commenced production in 1952 and was the original gold processing plant for the Stilfontein Gold
Mine. Following the rise in the uranium price in the 1970s, the operation investigated uranium recovery from the Stilfontein Gold
Mine’s gold tailings dams and commissioned the uranium plant in mid-1979. The plant operated until 1989, processing 29.4Mt of
tailings and recovering 4.56t of U3O8. In 2003, the plant was converted into a gold tailings treatment operation and no further
uranium was produced at that stage.
In 2007, First Uranium (Pty) Ltd (South Africa) ("First Uranium") acquired the MWS operation with the purpose of treating
the tailings dams for both gold and uranium. The second and third processing plants were commissioned between 2007 and
2012.
On 20 July 2012, the MWS operation was acquired by AngloGold Ashanti from First Uranium. The MWS uranium plant and
flotation plants were commissioned in 2014, and were further reconfigured into a more efficient operation during 2016, as part of
an optimisation drive. In 2017, the uranium and flotation plants were discontinued resulting in the MWS operation again
producing only gold.
On 1 October 2020, Harmony acquired all of AngloGold Ashanti’s surface operations, including the MWS operation.
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The Savuka plant was commissioned in 1961 and originally designed to treat ore from Savuka Mine and TauTona Mine. In
2015, upon the change in strategy to process the reef from the aforementioned shafts at Mponeng plant, the plant was
converted into a tailings and WRD treatment facility. The Savuka plant treats tailings material from Savuka and Mponeng TSFs,
and waste rock from the WRDs from the same operations. On 1 October 2020, Harmony acquired all of AngloGold Ashanti’s
South African business, including the surface assets which constitute the West Wits operation.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – South Africa” above
for a summary of the regulatory environment in South Africa.
The MWS operation’s license to operate is covered by the Environmental Authority ("EA") under NEMA. In terms of the
current legislation, the MPRDA, a mining right is not required to reclaim TSFs.
Following the acquisition of MWS operation, all relevant permits and licenses were acquired by Harmony and there is
financial provision for rehabilitation liabilities for the MWS operations, as well as the historic surface rights permits for MWS
operation. All of these permits are still valid. MWS no longer operates under any mining right. All relevant environmental and
water-use permits are in place and cover the environmental, archaeological, and hydrological components of Mine Waste
Solutions. All permits are audited regularly for compliance. The latest of EA is applicable to the Kareerand TSF expansion
activities, issued to MWS in 2022. MWS recently received an environmental authorisation to increase its piping capacity from
Kareerand TSF to enable more return water to be pumped back to the MWS plant and reclamation activities.
Mining Method
The mining methodologies adopted at Mine Waste Solutions entail the hydro-mining of the TSFs and reclamation of WRDs
using FELs.
The TSF material is reclaimed using several hydraulic monitoring guns which deliver high-pressure water to the face. High
pressure water is transferred to the monitoring guns observing the maximum design capacity of the equipment, limited to 40
bars. Typically, a 25m mining face length is achieved with a water pressure in the range of 27bar to 30bar.
The tailings material can be selectively mined based on the positioning of the monitoring guns. The TSF face is broken by
the water pressure, resulting in the slurry gravitating towards the collection sumps that deliver the slurry to the pumping stations,
which is then pumped via overland pipelines to the respective plant streams. The TSFs are fed into one of the three respective
plant streams, which comprise the MWS operation. The tailings material size is appropriate for high-pressure water to re-pulp
the consolidated slimes to a slurry at a minimum relative density of around 1.45. No milling is required, as the material has
previously been milled through the CIL plant treatment process.
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Waste rock arises from underground development and is conveyed to large dumps where it is stockpiled. The grade values
are inconsistently distributed amongst these rock deposits. Waste rock from off-reef development can also become
contaminated during transport to surface by mineralised rock from unpay and marginal areas.
Tracked bulldozers are used on the top of WRDs during daylight hours, demarcated by surveyed markers, in accordance
with safety standards. Vertical dozing operations are prohibited. During dozing operations, the geotechnical considerations and
the materials’ natural angle of repose is adhered to, so as to maintain the WRD slope stability during loading operations.
Bulldozers are also used at the bottom of the WRDs to create a safe loading distance between the base of the WRD and
the loading face. Loading measures take careful consideration of the existing dump design and ensures that extraction of the
material is done safely. Front end loaders are used to load the dozed material into rail hoppers or trucks, which is transported to
milling and mineral processing.
Mineral Processing
There are two plants, namely the MWS gold plant and the Savuka gold plant, which are dedicated to the processing of
tailings material. Reclaimed tailings are pumped as slurry via pipelines to MWS and Savuka gold plants and WRD material is
transported on trucks to the Mponeng plant for processing.
The MWS gold plant is currently capable of processing 86,000tpd. This includes Stream 4 which was commissioned in
December 2024.
The Savuka plant is a single process flow with a current processing capacity of 10,600tpd.
Qualified Persons
The QP was employed on a full-time basis by Harmony. The QP's qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Professional Organisation | Qualification | TRS Section Responsibility | Personal Insp. |
Mr. BJ. Selebogo | SAGC | MSCC, HND (MRM) | All | Full time |
Exploration
Prior to 2011, grade estimations for the TSFs were based on residue grades obtained from the process plants, as well as
various sampling projects in selected areas. Most of these TSFs have since been re-sampled by means of an extensive auger
drilling exercise which commenced in 2011. The remaining TSFs will be re-sampled once they go out of service and become
dormant.
A total of 1,577 drill holes have been drilled in these TSFs between 2011 and present.
WRDs cannot be explored using drilling as they are comprised of unconsolidated rock. No drilling is undertaken on the
MWS and West Wits WRDs.
The drilling and sampling methodology in use for Harmony’s TSFs has been developed specifically for the challenges
posed by these deposits and is aligned with industry best practice. This protocol has been in place since 2011, and the drilling
components are applied by contractors who are experienced in this specific methodology.
The drill hole samples are deemed to be representative as they provide both vertical and horizontal coverage of each TSF.
Drill holes are positioned at regular intervals across the TSF.
The data spacing, density and distribution is sufficient to support the estimation of Mineral Resources for the various TSFs.
The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
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Mineral Resource Estimate
The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate for the MWS operation, as at 30 June 2024 and 2025, exclusive of the reported Mineral
Reserves, is summarised in the table below:
Fiscal Year Ended 30 June | ||||||||||||
2025 | 2024 | |||||||||||
Grade | Metal Content | Grade | Metal Content | |||||||||
Mineral Resource Category | Source | Tonnes (Mt) | Gold (g/t) | U3O8 (kg/t) | Gold (kg) | U3O8 (t) | Tonnes (Mt) | Gold (g/t) | U3O8 (kg/t) | Gold (kg) | U3O8 (t) | % Change |
Measured | TSF | 47.553 | 0.19 | 0.068 | 9,130 | 3,243 | 52.334 | 0.20 | 0.067 | 10,513 | 3,507 | (13.2) |
WRD | — | — | — | — | — | — | — | — | — | — | — | |
Sub Total / Ave. Measured | 47.553 | 0.19 | 0.068 | 9,130 | 3,243 | 52.334 | 0.20 | 0.067 | 10,513 | 3,507 | (13.2) | |
Indicated | TSF | 52.357 | 0.23 | 0.089 | 12,089 | 4,639 | 52.459 | 0.24 | 0.088 | 12,613 | 4,616 | (4.2) |
WRD | 2.055 | 0.30 | — | 617 | — | 1.872 | 0.30 | — | 563 | — | 9.6 | |
Sub Total / Ave. Indicated | 54.412 | 0.23 | 0.085 | 12,706 | 4,639 | 54.331 | 0.24 | 0.085 | 13,176 | 4,616 | (3.6) | |
Total / Ave. Measured + Indicated | 101.965 | 0.21 | 0.077 | 21,836 | 7,882 | 106.665 | 0.22 | 0.076 | 23,689 | 8,123 | (7.8) | |
Inferred | TSF | 81.763 | 0.13 | 0.038 | 11,018 | 3,097 | 79.585 | 0.13 | 0.039 | 10,505 | 3,067 | 4.9 |
WRD | 2.502 | 0.24 | — | 611 | — | 2.502 | 0.24 | — | 611 | — | — | |
Total / Ave. Inferred | 84.265 | 0.14 | 0.037 | 11,629 | 3,097 | 82.087 | 0.14 | 0.037 | 11,116 | 3,067 | 4.6 | |
Notes:
1.The Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according
to SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. BJ. Selebogo, who is Ore Reserve Manager, and a
Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of
US$2,349/oz.
4.Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5.Uranium content is reported as part of the MWS Mineral Resource estimate only.
6.Metal content does not include allowances for processing losses.
7.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
8.Rounding as required by reporting guidelines may result in apparent summation differences .
9.The Mineral Resource estimate is for Harmony’s 100% interest.
The decrease in Mineral Resources for the MWS Operation is a result of estimation model and survey updates.
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The Mineral Resource estimate for the West Wits Operation, as at 30 June 2024, and 2025, is summarised in the table
below:
Fiscal Year Ended 30 June | ||||||||||||
2025 | 2024 | |||||||||||
Grade | Metal Content | Grade | Metal Content | |||||||||
Mineral Resource Category | Source | Tonnes (Mt) | Gold (g/t) | U3O8 (kg/t) | Gold (kg) | U3O8 (t) | Tonnes (Mt) | Gold (g/t) | U3O8 (kg/t) | Gold (kg) | U3O8 (t) | % Change |
Measured | TSF | — | — | — | — | — | — | — | — | — | — | — |
WRD | — | — | — | — | — | — | — | — | — | — | — | |
Sub Total / Ave. Measured | — | — | — | — | — | — | — | — | — | — | — | |
Indicated | TSF | 9.669 | 0.32 | — | 3,050 | — | 25.736 | 0.32 | — | 8,321 | — | (63.3) |
WRD | 0.164 | 0.37 | — | 60 | — | 0.152 | 0.37 | — | 56 | — | 7.1 | |
Sub Total / Ave. Indicated | 9.833 | 0.32 | — | 3,110 | — | 25.888 | 0.32 | — | 8,376 | — | (62.9) | |
Total / Ave. Measured + Indicated | 9.833 | 0.32 | — | 3,110 | — | 25.888 | 0.32 | — | 8,376 | — | (62.9) | |
Inferred | TSF | — | — | — | — | — | — | — | — | — | — | — |
WRD | — | — | — | — | — | — | — | — | — | — | — | |
Total / Ave. Inferred | — | — | — | — | — | — | — | — | — | — | — | |
Notes:
1.The Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according
to SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. BJ. Selebogo, who is Ore Reserve Manager, and a
Harmony employee.
2.The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3.No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of
US$2,349/oz.
4.Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5.Uranium content is reported as part of the MWS Mineral Resource estimate only.
6.Metal content does not include allowances for processing losses.
7.Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate
economic viability.
8.Rounding as required by reporting guidelines may result in apparent summation differences .
9.The Mineral Resource estimate is for Harmony’s 100% interest.
The change in Mineral Resources for the West Wits Operation is a result of estimation model and survey updates.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational planning
processes. The planning team utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, plant call factor, and plant recovery factors.
The Mineral Reserve estimate for the MWS operation, as at 30 June 2024 and 2025, is summarised in the table below:
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Fiscal Year Ended 30 June | ||||||||
2025 | 2024 | |||||||
Mineral Reserve Category | Source | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | TSF | 7.756 | 0.30 | 2,353 | 7.499 | 0.28 | 2,099 | 12.1 |
WRD | — | — | — | — | — | — | — | |
Sub Total / Ave. Proved | 7.756 | 0.30 | 2,353 | 7.499 | 0.28 | 2,099 | 12.1 | |
Probable | TSF | 344.711 | 0.28 | 95,334 | 367.071 | 0.28 | 101,389 | (6.0) |
WRD | — | — | — | — | — | — | — | |
Sub Total / Ave. Probable | 344.711 | 0.28 | 95,334 | 367.071 | 0.28 | 101,389 | (6.0) | |
Total / Ave. Proved + Probable | 352.467 | 0.28 | 97,687 | 374.570 | 0.28 | 103,488 | (5.6) | |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. BJ. Selebogo, who is the Ore Reserve Manager, and a
Harmony employee.
2.Tonnes, grade, and content are declared as net delivered to the mills.
3.Gold content is recovered gold after taking into consideration the modifying factors.
4.Mineral Reserves are reported using a cut-off grade of 0.180g/t and a gold price of US$2,237/oz.
5.Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
The decrease in Mineral Reserves for the MWS Operation is due to survey updates.
The Mineral Reserve estimate for the West Wits operation, as at 30 June 2024, and 2025, is summarised in the table
below:
Fiscal Year Ended 30 June | ||||||||
2025 | 2024 | |||||||
Mineral Reserve Category | Source | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | TSF | — | — | — | — | — | — | — |
WRD | — | — | — | — | — | — | — | |
Sub Total / Ave. Proved | — | — | — | — | — | — | — | |
Probable | TSF | 24.057 | 0.33 | 7,891 | 12.281 | 0.32 | 3,931 | 100.7 |
WRD | — | — | — | — | — | — | — | |
Sub Total / Ave. Proved | 24.057 | 0.33 | 7,891 | 12.281 | 0.32 | 3,931 | 100.7 | |
Total / Ave. Proved + Probable | 24.057 | 0.33 | 7,891 | 12.281 | 0.32 | 3,931 | 100.7 | |
Notes:
1.The Mineral Reserves are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. BJ. Selebogo, who is the Ore Reserve Manager, and a
Harmony employee.
2.Tonnes, grade, and gold content are declared as net delivered to the mills.
3.Gold content is recovered gold after taking into consideration the modifying factors.
4.Mineral Reserves are reported using a cut-off grade of 0.221g/t and a gold price of US$2,237/oz
5.Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.
6.Rounding as required by reporting guidelines may result in apparent summation differences.
Change in Mineral Reserve is due to the LOM extension (by four years) through additional tailings deposition capacity at
existing dams.
The tables below present a summary of the modifying factors used to convert the Mineral Resource to the Mineral Reserve
for the MWS operation. The modifying factors are consistent with the modelling, planning and computing estimates used in
determining the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
Gold Accounted For (“GAF”) - Grade Cut-off | g/t | 0.18 |
Recovery Factor | % | 44.76 |
Plant Call Factor | % | 100.00 |
Dilution | % | N/A |
Conversion factor | oz/kg | 32.1507 |
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The tables below presents a summary of the modifying factors used to convert the Mineral Resource to the Mineral
Reserve for the West Wits operation. The modifying factors are consistent with the modelling, planning and computing estimates
used in determining the Mineral Reserves, which are also consistent with historical performance.
Modifying Factor | Unit | Value |
GAF - Grade Cut-off | g/t | 0.22 |
Recovery Factor | % | 43.50 |
Mine Call Factor | % | 100.00 |
Dilution | % | N/A |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Hidden Valley
Property Description
The Hidden Valley mine is located in the Morobe Province of Papua New Guinea and is 100% owned and operated by
Morobe Consolidated Goldfields Limited, a wholly-owned subsidiary of Harmony. Hidden Valley mine consists of the Hidden
Valley Kaveroi open pit ("HVK") and the Hamata open pit (which are located approximately 6km apart) and an ore processing
facility in steep, heavily forested, mountainous terrain. The deposit is located at latitude 7°22'S and longitude 146°39'E,
approximately 20km southwest of Wau within Mining Lease ML151.
The following graphic illustrates the location of the Hidden Valley mine.
The mineral tenure is presented in the table below.
License Holder | License Type | Reference No. | Effective Date | Expiry Date | Area (ha) |
Morobe Consolidated Goldfields Limited | Mining Lease | ML151 | 4 March 2005 | 3 March 2030 | 4,098.29 |
Operational Infrastructure
Wau is the closest town, with an estimated population of 5,800 (2011 census). This town was the centre of the gold rush in
the 1920s and 1930s in the Morobe Goldfield. An airstrip is operational in the town. The closest large town to the Hidden Valley
mine is Bulolo, with a population estimated at 20,000 in 2010. In the 1930s, this town was the centre of gold dredging on the
Bulolo River. The town has an airport, schools, clinics and hospitals. Forestry and alluvial mining is currently the dominant
industry in the area.
Lae is an urban area, a major transport hub, and a commercial, administrative, industrial, residential, and educational
centre for both the Morobe Province and PNG, with a population in 2011 (the most recent year for which PNG census data are
available) of approximately 149,000.
The existing infrastructure located at the mine site is sufficient to support the current mine plan.
The property, plant, and equipment of Hidden Valley as of 30 June 2025, including buildings and mine infrastructure,
mining assets, decommissioning assets, rehabilitation and assets under construction, had a carrying value of US$306 million
R5,355 million). For information on assets and liabilities (including costs after depreciation) of Hidden Valley see “Annual
Financial Report - Notes to the Consolidated Financial Statements - Note 39 “Segment Report”.
Hidden Valley did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no
significant encumbrances exist.
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The surface infrastructure plan for the mine area is presented in the graphic below.
Geology
The HVK deposit is a vein-stockwork gold-silver deposit located in the southeast corner of the Wau Graben and is hosted
by the Morobe Granodiorite. The Kaindi Metamorphics occur as a cap to the HVK mineralisation. It comprises grey-black and
green-brown, variably carbonaceous, schistose, quartz-rich psammites and pelites that have undergone regional greenschist
metamorphism and localised, higher grade contact metamorphism on intrusive contacts with Morobe Granodiorite. The
granodiorite comprises two parts; an upper homogenous granodiorite of uniform texture cut by thin aplite dykes and feldspar
porphyry dykes. Below the HVK fault is a lower, more heterogeneous unit comprising granodiorite, diorite, adamellite, tonalite
and feldspar porphyry. The lower unit tends to contain gypsum veining, not regularly seen in the upper unit.
Numerous porphyry dykes of the Edie Creek Suite intrude both the Kaindi Metamorphics and the Morobe Granodiorite.
Porphyry composition varies from hornblende-biotite to feldspar-quartz phenocryst varieties. These bodies are not generally
mineralised but do commonly show some alteration.
Surficial weathering, mainly by downward percolation of oxygenated meteoric water, is variable over the gold-silver deposit
due to lithological, alteration and structural discontinuities. Of the two main rock units the granodiorite is usually more deeply
weathered than the metasediment. At the HVK deposit, four distinct oxidation zones are recognised; an oxide zone, partial
oxidation zone, a zone of fracture oxidation, and a fresh (primary) zone. However, the effects of supergene gold enrichment or
depletion (if present) are minimal for the HVK deposit.
History
Gold was discovered in Hidden Valley Creek by W.H. Chapman in 1927 (Lowensteub, 1982), and worked until 1929. In
1945, stream alluvial gold samples were taken close to the HVK discovery outcrop, but the deposit remained hidden. In 1984,
CRA Exploration (Pty) Ltd ("CRAE") discovered the HVK deposit when it carried out a regional stream sediment sampling
program in the headwaters of the Upper Watut River, -80mesh sediment samples returned values of 54ppm gold. Mapping up
the creeks revealed a landslide on the northern bank of Hidden Valley Creek had exposed altered and mineralised granodiorite
with initial chip sampling returning 55m at 3.8ppm gold. Drilling commenced in 1985, with the third and fourth holes intersecting
wide zones of mineralisation.
CRAE completed a prefeasibility study in 1989, and concluded the deposit was too marginal at that time to develop. In
1992, Placer Pacific Limited entered into a joint venture with CRAE but withdrew from the joint venture in 1993. In that time
Placer drilled 13 holes and tested some adjacent targets. The project went through a hiatus until 1995, when CRAE reviewed
the project. In 1997, CRAE (now known as Rio Tinto Limited) sold its interest in the HVK deposit to a wholly-owned subsidiary of
Australian Gold Fields NL ("AGF"), which was subsequently placed into administration. Aurora Gold Limited ("Aurora") acquired
the deposit from the administrators of AGF in September 1998. Aurora completed a prefeasibility study on the project in 2002.
Abelle Limited ("Abelle") obtained 100% ownership of the deposit in February 2003, following the merger of Abelle with Aurora.
Harmony effectively acquired 100% of Abelle on 1 May 2003. A Memorandum of Agreement between landowners and the
PNG Government was signed on 5 August 2005, resulting in the mining lease for the Hidden Valley project being granted.
Harmony commenced and completed a feasibility project on the deposit and commenced construction in 2008.
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In August 2008, Harmony and Newcrest Mining Limited ("Newcrest") commenced a joint venture relationship in the
Morobe Province of PNG, and the Hidden Valley Joint Venture was established as an unincorporated 50:50 joint venture
between Morobe Consolidated Goldfields Limited (Harmony) and Newcrest PNG1 Limited (Newcrest). The Hidden Valley mine
(comprising HVK and Hamata open pits) has been in operation since 2009, and was officially opened in September 2010.
In October 2016, Harmony acquired Newcrest’s joint venture interest, and Morobe Consolidated Goldfields Limited took
100% ownership of the Hidden Valley mine.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – Papua New Guinea”
above for a summary of the regulatory environment in PNG.
Hidden Valley operates within Mining Lease, ML151, and also within Mining Easement ME 82 and Lease for Mining
Purposes LMP 80. All tenements are registered in the name of Morobe Consolidated Goldfields Limited and are valid until 2030.
In accordance with the PNG Environment Act, an EIS was submitted to the Department of Environment and Conservation
(now CEPA) in February 2004. The EIS was approved in January 2005, and the Waste Discharge Permit WD-L3(50) and Water
Extraction Permit WE-L3(38) were issued. In October 2017, these permits were amalgamated as Environment Permit EP-
L3(578) in November 2017 .
In December 2020, Morobe Consolidated Goldfields Limited submitted an application to CEPA for a minor amendment to
Environment Permit EP-L3(578), in support of the Stage 8 expansion, in accordance with the Environment (Prescribed
Activities) Regulation 2002. An amendment to Environment Permit EP-L3(578) was issued by CEPA in March 2021.
The mine presently operates in accordance with the 41 conditions prescribed by Environment Permit EP-L3(578), which
will expire on 29 March 2030. The existing environmental and tenure permits and licenses are summarised below.
In accordance with Environment Permit EP-L3(578), condition 4, Morobe Consolidated Goldfields Limited reviews and
updates its Hidden Valley Environmental Management Plan every three years. The most recent iteration (2025-2027) was
submitted to CEPA for approval in January 2025, with approval received in October 2025.
A summary of the status of environmental permits and tenements issued as at 30 June 2025, is presented in the table
below.
Permit / License | Status |
Mining Lease | ML151 current. Amended 25 May 2021. Expiry 3 March 2030. |
Lease for Mining Purpose | LMP80 current. Amended 25 May 2021. Expiry 3 March 2030. |
Mining Easement | ME82 current. Amended 25 May 2021. Expiry 3 March 2030. |
Environment Permit EP-L3 (578) | Awarded October 2017. Amended March 2021. Expires March 2030. |
EIS | Approved January 2005. |
Mining Method
Hidden Valley is an open pit gold-silver operation, operating conventional truck/excavator open pits and an ore-processing
plant. One single open pit is currently in operation; the HVK pit . The HVK pit supplies all of the ore to the processing plant which
is located some 6km away. The Hamata open pit has been exhausted and is currently being converted into the TSF2.
Mining operations employ conventional open pit mining techniques with back-hoe excavators and rigid dump trucks as the
primary load and haul equipment. Front-end loaders are used for crusher feed and stockpile reclaim. A number of articulated
smaller dump trucks are used for construction, and mining in Hamata. Mining bench configuration consists of 18m inter-berm
heights, mined as 2 x 9m benches or 3 x 3m flitches (typically in ore).
Waste is disposed in engineered valley fill waste dumps, with toes keyed in and buttressed using competent non-acid
producing rock. The construction of the Neikwiye valley toe buttress and underdrain network was completed in the 2018 fiscal
year and waste rock will be disposed in this dump envelope through the remainder of the mine life. Similarly under drain
construction and toe buttress has been constructed in the Kaveroi Valley with selective placement to continue in this area for the
LOM.
The Hidden Valley processing plant was designed to treat 4.2Mtpa of gold/silver bearing ore nominally although
operational issues have prevented the plant reaching its intended capacity. The processing plant treats gold/silver ore from the
HVK and Hamata deposits. Crushed ore is conveyed from the HVK pit via a 4.5km long overland pipe conveyor.
Tailings are stored in TSF1 located to the southwest of the process plant. Dam-wall construction of the TSF is ongoing and
largely constitutes placement of suitable oxide and fresh competent material sourced from mining in the Hamata pit. The
processing inventory in this Mineral Reserve estimate is constrained by remaining TSF capacity. TFS1 has a remaining capacity
of ~11.3Mt with TSF2 adding an additional 8.0Mt of capacity. The overall remaining TSF capacity is currently estimated at
19.3Mt.
Mineral Processing
The Hidden Valley CIL processing plant, located adjacent to the Hamata open pit, was commissioned in 2009. The Hidden
Valley processing plant is designed to treat 4.2Mtpa of gold bearing ore nominally from three separate open pits. Three distinct
ore types are to be treated through two alternate treatment routes:
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•whole ore processing: used to process the blend containing ore from the Hamata deposit, and oxide, transitional and
primary ore from the HVK deposits; and
•primary ore processing: used when processing only the primary ore from the HVK deposit.
The Hamata ore is typically a gold:silver ratio of 1:1 with varying sulphur grades from 0.5% to 5.0%. Transition and primary
ores have a significantly higher silver content with a gold:silver ratio of 1:15. Transition sulphur averages 0.96% while primary
ore has a sulphur grade of 1.81%.
Qualified Persons
The QPs were employed on a full-time basis by Harmony. The QPs’ qualifications, areas of responsibility and personal
inspection of the property are summarised in the graphic below.
Qualified Person | Prof. Assoc. | Qualifications | TRS Section Responsibility | Personal Insp. |
Mr. R. Reid | FAIG, MAusIMM | BSc.Hons, Grad.Dip (Sc) | 3, 4, 5, 6, 7, 8, 9, 11 | Regular. Last June 2024 |
Mr. G. Job | FAusIMM | BSc.,MSc (Min Econ) | 1, 2, 3, 15, 21, 22, 23 | Regular. Last February 2023 |
Mr. D. Ross | MAusIMM (CP), RPEQ | BEng (Mining) | 12, 13 | Regular. Last July 2025 |
Mr. M. Swart | FAusIMM(CP), RPEQ | BMetEng, MBA | 10, 14 | Regular. Last June 2025 |
Mr.S.Wakefield | EIANZ | BENG(Civil), MENG Hons(Environmental) | 17 | Regular. Last August 2025 |
Mr. D. Hall | MAHRI | BCom(HR & Industrial Psychology) | 17 | Regular. Last March 2024 |
Mr. M. Koehler | CAANZ | BBus Acc, Grad Dip (CA) | 16, 18, 19 | Regular Last August 2021 |
Exploration
The HVK deposit has had a long history of exploration dating back to the 1980s.
A large mapping dataset exists from detailed work completed over the years. The geological model used in the Mineral
Resource estimate has been based upon combined drill hole data and surface mapping that has been completed over time.
Structural mapping in and around the site and within the open pits has been conducted on a number of occasions. Observations
gathered during open pit mapping have been combined with more regional mapping work completed over time by site geologists
and consultants to construct a robust geological model that will support the grade estimate.
Available regional government geophysical datasets include a 1000m spaced fixed-wing airborne magnetic survey, a 400m
spaced helicopter airborne magnetic survey and a 2000m spaced fixed-wing gravity survey. Available company geophysical
datasets include a 50m spaced helicopter airborne magnetic survey, some prospect-specific ground magnetic survey stations,
and induced polarisation surveys.
Regional stream sediment and "Ridge and Spur" soil sampling was completed by CRAE between 1983 and 1989.
Additional soils and trenches were completed prior to and post the commencement of drilling. Drilling data and mining have
superseded the information in the trenching programs.
Available geochemical sampling on ML151 includes a total of 24,844 surface samples. These are a mix of historical
company data and Harmony collected sampling. Surface geochemical sampling techniques include soil (8,741), rock chip
(12,468), wacker (2,033), auger (920) and stream sediment (245), plus some other less common techniques. Available assay
suites for both historical company data and Harmony collected sampling vary widely, with assay suites generally extended to
more elements in more modern times.
CRAE discovered the HVK deposit using stream sediment sampling campaign up the headwaters of the Upper Watut River
in 1984. Sediment samples (-80mesh) returned values of 54ppm Au. No further information is available on the stream sediment
sampling campaign. This data is not, however, used in geological modelling and Mineral Resource estimation.
Surface drilling completed to date included diamond core and reverse circulation (“RC”) drilling. Drilling was undertaken
continuously between 2009 to 2012, with some minor additional drilling done since. Some targeted deeper RC holes and
diamond holes have been drilled into the deposit during 2014 to 2022, with various degrees of success to close up the drill
spacing. A total of 34,086 holes measuring 1,099,053m of drilling were used in the generation of the 2022 geology and domain
mode. This includes both blast and RC operational grade control drilling. A total of 1,586 drill holes, comprising 275,491m of
drilling was used in the Mineral Resource estimate. It should be noted that these numbers exclude grade control drilling. This
drilling was not included in the Mineral Resource estimate due to sample support issues which would result from such closely
spaced drilling.
The QPs are of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
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Mineral Resource Estimate
The Mineral Resource estimate is reported in situ within the Hidden Valley lease area, as determined through the analysis
of the reasonable prospect for economic extraction by an opencut mining method. The cut-off value for the Mineral Resources is
determined at 0.70g/t gold based on the economic assumptions set forth in the table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 2349 |
Silver price | US$/oz | 25 |
A$ Exchange rate | US$:A$ | 0.68 |
K Exchange rate | K:US$ | 4.03 |
Plant recovery factor – (ave of multi variate curve) | % | 88.00 |
Unit cost1 | K/t | 10.21 |
1 Unit cost includes cash operating cost, royalty and ongoing development capital.
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K1300. These Mineral Resources account for mining depletion recorded from July 2024 to June 2025.
The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is summarised
in the table below.
Fiscal Year Ended 30 June | ||||||||||||
2025 | 2024 | |||||||||||
Grade | Metal Content | Grade | Metal Content | |||||||||
Mineral Resource Category | Source | Tonnes (Mt) | Gold (g/t) | Silver (g/t) | Gold (kg) | Silver (kg) | Tonnes (Mt) | Gold (g/t) | Silver (g/t) | Gold (kg) | Silver (kg) | % Change |
Measured | HVK | 0.703 | 0.67 | 14.53 | 467 | 10,214 | 0.738 | 0.78 | 18.09 | 572 | 13,348 | (18.4)% |
Hamata | — | — | — | — | — | — | — | — | — | — | —% | |
Sub Total / Ave. Measured | 0.703 | 0.67 | 14.53 | 467 | 10,214 | 0.738 | 0.78 | 18.09 | 572 | 13,348 | (18.4)% | |
Indicated | HVK | 30.867 | 1.23 | 17.73 | 37,857 | 547,351 | 29.901 | 1.17 | 15.81 | 34,928 | 472,725 | 8.4% |
Hamata | — | — | — | — | — | 1.738 | 1.93 | — | 3,353 | — | (100.0)% | |
Sub Total / Ave. Indicated | 30.867 | 1.23 | 17.73 | 37,857 | 547,351 | 31.638 | 1.21 | 14.94 | 38,280 | 472,725 | (1.1)% | |
Total / Ave. Measured + Indicated | 31.570 | 1.21 | 17.66 | 38,324 | 557,565 | 32.376 | 1.20 | 15.01 | 38,853 | 486,073 | (1.4)% | |
Inferred | HVK | 1.823 | 1.29 | 11.09 | 2,346 | 20,223 | 1.013 | 1.12 | 26.29 | 1,136 | 26,637 | 106.5% |
Hamata | — | — | — | — | — | 0.184 | 1.49 | — | 274 | — | (100.0)% | |
Total / Ave. Inferred | 1.823 | 1.29 | 11.09 | 2,346 | 20,223 | 1.197 | 1.18 | 22.25 | 1,410 | 26,637 | 66.4% | |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on From 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K. The QP responsible for the estimate is Mr. R. Reid, Group Resource Geologist, an employee of
Harmony Gold (PNG Services) Limited.
2.Mineral Resources are adjusted for mining depletion to end April 2025, with assumed production for May and June, 2025.
3.The Mineral Resource tonnes are reported as in situ with reasonable prospects for economic extraction.
4.Measured Resources include surface stockpiles only.
5.Mineral Resources are reported on a 100% basis. Harmony holds a 100% interest.
6.Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
7.Mineral Resources at HVK are reported assuming a bulk open pit mining metallurgical recovery for silver and gold by sulphide flotation.
Mineral Resources are reported above a gold grade cut-off of 0.70g/t on the results of a profit algorithm; this equates to a marginal ore cut-
off grade. The profit algorithm takes account of metal price, grade, ore processing route, recoveries and costs. Metal price assumptions are
US$2,349/oz gold, US$25.00/oz silver and a 0.68 US$/A$ exchange rate. Adjustments to these figures will potentially impact upon the
economic cut-off grade.
8.Tonnages are metric tonnes. Gold and silver ounces are estimates of metal contained in tonnages and do not include allowances for
processing losses.
9.Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
Rounding is to three significant figures for tonnes.
10.The decrease in Mineral Resource tonnes is a product of the increased Mineral Reserve and depletion related to mining over the past year.
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Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K
1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call factors.
The Mineral Reserve estimate, as at 30 June 2024 and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | ||||||||||||
2025 | 2024 | |||||||||||
Grade | Metal Content | Grade | Metal Content | |||||||||
Mineral Reserve Category | Open Pit | Tonnes (Mt) | Gold (g/t) | Silver (g/t) | Gold (Kg) | Silver (Kg) | Tonnes (Mt) | Gold (g/t) | Silver (g/t) | Gold (Kg) | Silver (Kg) | % Change |
Proved | HVK | 1.630 | 0.95 | 22.69 | 1,555 | 36,982 | 1.000 | 0.87 | 19.60 | 900 | 20,200 | 73% |
Hamata | — | — | — | — | — | — | — | — | — | — | —% | |
Total / Ave. Proved | 1.630 | 0.95 | 22.69 | 1,555 | 36,982 | 1.000 | 0.87 | 19.60 | 900 | 20,200 | 73% | |
Probable | HVK | 16.997 | 1.45 | 24.52 | 24,603 | 416,694 | 15.400 | 1.68 | 26.02 | 25,900 | 400,300 | (5)% |
Hamata | — | — | — | — | — | 0.100 | 1.57 | — | 200 | — | (100)% | |
Total / Ave. Probable | 16.997 | 1.45 | 24.52 | 24,603 | 416,694 | 15.500 | 1.68 | 25.81 | 26,100 | 400,300 | (6)% | |
Total / Ave. Proved + Probable | 18.627 | 1.40 | 24.36 | 26,158 | 453,676 | 16.500 | 1.63 | 25.42 | 27,000 | 420,500 | (3)% | |
Notes:
1.Mineral Reserves are reported with an effective date of 30 June 2025, and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K. The QP responsible for the estimate is Mr. D. Ross, Group Manager Mine Planning, an employee with Harmony Gold.
2.Mineral Resources are reported on a 100% basis. Harmony holds a 100% interest.
3.Mineral Reserves are reported using the following assumptions: open pit mining method, gold price of US$2,237/oz, silver price of
US$25.00/oz at US$/A$ 0.68 exchange rate.
4.Not all “ore” as defined at the economic cut off reports to the Mineral Reserve due to the constrained tailing storage facility with some
marginal grade ore material remaining on stockpile. The Proved Mineral Reserve is limited to stockpiles. Probable Mineral Reserve is
derived from the Indicated Mineral Resource.
5.Gold and silver ounces are estimates of metal contained in tonnages and do not include allowances for processing losses.
6.Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
Rounding is to three significant figures for tonnes.
7.The increase in Mineral Reserve was due to an increase in TSF capacity allowing for a larger pit design
Modifying Factor | Unit | Value |
Gold Price | US$/oz | 2,237 |
Silver Price | US$/oz | 25 |
Exchange Rate | ||
A$ : US$ | 0.68 | |
K : US$ | 4.03 | |
Tonnage Recovery | % | 100 |
Gold Modifying Factor (ave) | ||
HVK | % | 92.50 |
Hamata | % | — |
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Wafi-Golpu Project
Property Description
The Wafi-Golpu Project is situated within the Morobe Province of PNG, approximately 65km southwest of Lae, the nearest
commercial centre. The Wafi-Golpu Project comprises the Golpu copper–gold porphyry deposit (“Golpu deposit”), the Wafi
epithermal gold deposit ("Wafi deposit") and the Nambonga copper-gold porphyry deposit ("Nambonga deposit"). Mineral
Resources and Mineral Reserves were estimated for the Golpu deposit. Additional Mineral Resources were estimated for the
Wafi deposit and the Nambonga deposits however, these deposits are not currently included in the mine plan. No production
has yet occurred at this property. The Wafi-Golpu Project is situated at a latitude of 6°51’46.63”S and longitude of
146°27’08.20”E.
The “property, plant, and equipment” of the Wafi-Golpu Project as of 30 June 2025, including buildings and mine
infrastructure, mining assets, rehabilitation and assets under construction, had a carrying value of R2,861 million.
The Wafi-Golpu Project did not incur any fines or penalties for non-compliance during the year ended 30 June 2025 and no
significant encumbrances exist.
The following graphic illustrates the location of the Wafi-Golpu Project.
The Wafi-Golpu Joint Venture ("WGJV") participants hold two ELs covering a total area of 12,984 ha. The deposits are
located within EL440, with a range of major surface facilities to be located on EL1105.
The WGJV participants also hold an environment permit for the project issued under the PNG Environment Act. The permit
authorises the utilisation of DSTP as the tailings management method for the Wafi-Golpu Project.
Both tenements were in good standing as at 30 June 2025. There is no material litigation (including violations or fines) that
threatens its mineral rights, tenure, or operations. However, the grant of the permit is currently the subject of two judicial review
proceedings against the State of PNG, the first of which was instituted in March 2021 by a previous Governor of the Morobe
Province in PNG, who was opposed to DSTP, and the second of which was instituted in December 2022 by Huon Gulf coastal
villagers represented by the CELCOR.
With regard to the proceedings instituted in March 2021, the Governor who succeeded the instituting Governor in
September 2022 was not opposed to DSTP and stated publicly his intention to withdraw the proceedings instituted by his
predecessor. As at 30 June 2025, he had not yet done so. The Governor passed away in September 2025 and, to the time of
filing of this report, the proceedings have not been withdrawn. With regard to the proceedings instituted in December 2022, the
matter went to substantive hearing on 12 June 2025 and, to the time of filing of this report on Form 20-F, a ruling has not been
made.
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See Item 3: “Risk Factors - We are subject to the risk of litigation, the causes and costs of which are not always known”.
Operational Infrastructure
The closest major community is Lae. Lae is an urban area, a major transport hub, and a commercial, administrative,
industrial, residential, and educational centre for both the Morobe Province and PNG, with a population in 2011 (the most recent
year for which PNG census data are available) of approximately 149,000.
The Wafi-Golpu Project is located in a mountainous area of PNG. A combination of roads and access tracks exist between
Lae and the project site. However, the track components are suitable for four-wheel drive vehicles and purpose-built trucks only.
During major rainfall events this access route may become closed to vehicular traffic.
Current access to the planned mine site is via a partly-sealed road from Lae to Timini, and a gravel road from Timini
(Demakwa) to Wafi, with the trip taking about three to four hours depending on the weather. As part of project development, a
new road (including bridges) (the "northern access road"), will be constructed, running from the Highlands highway to the mine
site, and linking up with the current exploration access road. A private mine access road will be constructed from the intersection
of the northern access road and the current exploration access road.
Commercial airlines operate flights between the national capital, Port Moresby, and Nadzab airport, which is approximately
a one-hour drive by road from Lae. The Nadzab airstrip is sealed. Helicopter access to the mine site area is available, with a
suitable area at the proposed mine site cleared for landing.
The Golpu project is a greenfield site that currently does not have any infrastructure to support the planned mining and
processing operations. There is no effective local infrastructure with respect to power, water, and roads that are trafficable by
vehicles other than all-wheel drive vehicles. Water supply for drilling was sourced from rivers, and power at the exploration camp
(Wafi Camp) is locally generated. The surface infrastructure plan for the mine area is displayed in the graphic below, along with
the start of the infrastructure corridor.
The Wafi-Golpu Project had no “property, plant, and equipment” as of 30 June 2025.
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Geology
Wafi–Golpu is a complex, multiphase mineralised system comprising the:
•Golpu porphyry copper–gold deposit;
•Wafi epithermal gold deposit; and
•Nambonga porphyry gold–copper deposit.
The Golpu Intrusive Complex consists of multiple, hornblende-bearing diorite porphyries intruded into the host sedimentary
lithologies. The porphyries are separated based on their spatial position and, where not texturally destroyed, into coarse
hornblende-rich variants, feldspathic-rich units and porphyries containing quartz-eye inclusions. Intrusions range from small
dykes to small stocks/bosses and apotheoses. Single intrusions pinch and swell vertically over tens of metres and form dykes,
pipes and stocks.
The Wafi Diatreme complex is a roughly rectangular shaped feature, 800m by 400m at surface with steep, inward-dipping
sides. The diatreme comprises intrusive and sedimentary breccias, volcaniclastic rocks and tuffs, and was intruded by several
phases of unmineralised dacitic porphyries.
The Nambonga diorite porphyry stock is typically medium-grained, containing plagioclase and hornblende phenocrysts set
in a feldspathic matrix. The diorite is cut by a late barren diorite phase at depth. The diorite has intruded lithologies of the Owen
Stanley Metamorphic Complex, consisting of metasandstone and minor metaconglomerate.
History
Historical exploration dates back to 1977 and has included regional exploration sampling, geophysical surveys,
geochemical sampling, RC and diamond core drilling.
CRAE identified mineralised float in a regional geochemical sampling program and discovered the outcropping
mineralisation of the Wafi A Zone near Mount Golpu in 1979. The Mt Wanion EL (EL440) was granted in 1980. The discovery of
the Golpu copper–gold porphyry deposit occurred in 1990.
Aurora acquired project ownership in 2001 and updated Wafi resource estimate on A Zone, B Zone and Link Zone in 2002.
Completed check resource estimate at Wafi in 2002. Aurora merged with Abelle in 2003. An updated Wafi Mineral Resource
estimate was completed in 2003.
Harmony acquired Abelle in 2004 and completed the Wafi–Golpu Concept Study. Mineral Resource estimates for selected
deposits were updated in 2005, 2006 and 2007. The Golpu standalone prefeasibility study, was completed 2007. The Wafi–
Golpu integrated prefeasibility study was completed 2007. The Nambonga porphyry was discovered in 2007.
In August 2008, Harmony and Newcrest commenced a joint venture relationship in the Morobe Province of PNG, and the
WGJV was established as a 50:50 unincorporated joint venture between Wafi Mining Limited ("Wafi Mining") and Newcrest
PNG2 Limited ("Newcrest PNG2"), subsidiaries respectively of Harmony and Newcrest and together referred to as the "WGJV
participants". In November 2023, Newmont Corporation ("Newmont") completed the acquisition of Newcrest.
The Golpu Development Project Desktop Study was completed 2009. This was followed by the Wafi concept study (2010),
the Wafi–Golpu prefeasibility study (2012), and the Wafi Golpu prefeasibility optimisation study (2014). Regional geological
mapping and geological synthesis was completed in 2015, which led to a re-evaluation of the development approach and the
Golpu Stage 2 prefeasibility study, completed in 2015. Golpu Feasibility Study was then completed 2016.
On 25 August 2016 the WGJV submitted a Special Mining Lease ("SML") application to the PNG MRA for an SML area
including the Golpu, Wafi and Nambonga deposits. The SML application included applications for ancillary mining tenements, a
Proposal for Development, which incorporated the 2016 Feasibility Study report, and supporting application documents such as
a National Content Plan. Further data collection and technical assessment undertaken in 2016–2017. The Feasibility Study
Update was completed in December 2017 and submitted to the PNG MRA in March 2018. Permitting negotiations for the grant
of the SML application resumed in 2018.
In December 2018, the WGJV participants entered into a Memorandum of Understanding with the State regarding the
timetable and progress of the permitting process. When the State of PNG withdrew from that memorandum in November 2019,
the parties entered into a Framework Memorandum of Understanding ("FMOU") on 6 April 2023, which FMOU continues to
underpin the permitting process, which is ongoing.
An EIS was submitted to CEPA on 25 June 2018, and an environment permit for the Wafi-Golpu Project was issued on
18 December 2020. The environment permit includes conditions relating to DSTP.
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Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – Papua New Guinea”
above for a summary of the regulatory environment in PNG.
The WGJV holds two ELs covering a total area of 12,894ha, each of which is registered in the names of Wafi Mining and
Newcrest PNG2. The deposits are all located within EL440, with a range of major surface facilities to be located on EL1105. The
summary of mineral tenure is presented in the table below.
License Holder | License Type | Reference No. | Effective Date | Expiry Date | Area (ha) |
Wafi Mining and Newcrest PNG2 Wafi Mining and Newcrest PNG2 | Exploration License | EL440 | 11 March 2024 | 10 March 2026 | 9,501 |
Exploration License | EL1105 | 26 January 2023 | 25 January 20251 | 3,393 |
1 Renewal submitted on 16 October 2024.
Both tenements are in good standing and EL1105 is currently under renewal. The WGJV participants lodged an application
to extend the term of EL1105 for a further two years on 16 October 2024, in accordance with the requirements of the PNG
Mining Act.
If any EL under our Wafi-Golpu Project results in a mineral discovery, the PNG State has a back-in right under Section 17
of the PNG Mining Act. This right allows the PNG State at any time before the start of mining, to acquire a participating interest
of up to 30% in the discovery by paying a price equal to its pro-rata share of accumulated exploration expenditures. Once this
interest is acquired, the PNG State must contribute its pro-rata share of future exploration and development costs unless
otherwise agreed.
The PNG Government has indicated that it intends to exercise its back-in right to take its full 30% interest. If it does so, the
interests of Wafi Mining and Newcrest PNG 2 would each be reduced to 35%.
The tenements required to develop and operate the Wafi-Golpu Project and which, as at 30 June 2025 are under
application, are summarised below:
•SML 10. For Block cave mines, Watut declines portal terrace, process plant terrace, Watut process plant, Nambonga
decline portal terrace, waste rock storage facilities ("WRSFs"), Miapilli clay borrow pit, water treatment facilities,
sedimentation dams, raw water dam, explosives magazine facilities, waste management facility, concrete batch plants,
electrical substations, workshops and administration buildings, accommodation facility;
•LMP 100. For Finchif construction accommodation facility and power generation facilities;
•LMP 104. For Port facilities area (including concentrate filtration plant);
•LMP 105. For outfall area;
•ME 91. For Infrastructure corridor pipelines and power transmission lines from the northern boundary of the SML
application to Lae and to the power generation facilities;
•ME 92. For Mine access road;
•ME 93. For northern access road;
•ME 94. For wastewater discharge pipeline (for mine dewatering) to the Watut River and co-located raw water make-up
pipeline;
•ME 96. For terrestrial tailings pipeline – Lae to Wagang;
•ME 97. For component of outfall system, specifically the seawater intake and deep sea tailings placement outfall pipelines;
•ML 183. Northern Access Road Quarry;
•ML 184. Madzim Gravel Pit;
•ML 185. Lense Sibal Beamena Hard Rock Quarry;
•ML 186. South Papas Gravel Pit; and
•ME 115. Madzim Gravel Pit Access Track.
Environment Permit
The WGJV participants hold a Level 3 Environment Permit (EP-L3 (767)) for the Wafi-Golpu Project.
An Environmental Inception Report ("EIR") was submitted to CEPA in May 2017, and approved in June 2017. An EIS was
submitted to CEPA in June 2018, and approved in November 2020. The environment permit was issued on 18 December 2020,
has a term of 50 years and includes conditions relating to DSTP. The EIS included a framework Environment Management Plan
and it will be necessary, as a condition of the Environment Permit, to prepare an Environmental Management and Monitoring
Plan ("EMMP") and submit it to CEPA for its approval.
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Permit / License | Status |
EIR | Submitted May 2017, approved June 2017. |
EIS | Submitted 2018. Approved November 2020. |
Level 3 Environment Permit EP-L3 (767) | Approved December 2020. Valid for 50 years. |
EMMP | To be prepared as a condition of EP-L3 (767) |
Mining Method
The proposed mining method is block caving on three levels, namely BC40, BC42 and BC44. The BC44 and BC42
underground services and infrastructure areas are designed to a feasibility level of confidence. The BC40 cave footprint and
thus extraction level layout are designed at a pre-feasibility confidence level. The infrastructure for BC40 is identical to that of
BC44 and BC42 and is at a feasibility level of confidence. There will be no additional surface infrastructure for BC40.
Block caving was selected for the following reasons:
•orebody geometry and geotechnical conditions;
•high productivity, low operating cost mining method; and
•higher-value material located at depth can be accessed earlier in the mine plan.
The proposed mine plan uses technology conventional to block cave operations, including mine design and equipment.
The mine is planned to operate 24 hours per day, every day of the year, apart from scheduled and unscheduled shutdowns.
Access to the mine workings will be via the Watut and Nambonga declines, with each generating waste rock that will either
be used in construction activities, processed or deposited within the WRSFs. Block cave mining will not result in the production
of waste rock because all material extracted from the block cave will be fed to the Watut process plant. Block cave mining will
cause a subsidence zone of fractured rock to develop that will propagate to surface.
During caving operations, ore from the block cave drawpoints will be delivered by vehicles to an underground crusher. The
crushed ore will then be conveyed to the surface. The ore conveyor emerging at the Watut declines portal terrace will continue
overland for approximately 600m to deliver crushed ore to a coarse ore stockpile adjacent to the Watut process plant for
processing.
Mineral Processing
The proposed Watut process plant will be a compact copper concentrator that is progressively built (in line with the profile
of the mine ramp-up) to be capable of processing approximately 17Mtpa of crushed ore at peak capacity to produce a high-
grade copper concentrate. The plant is designed to cater for the ore composition changes over the LOM, and blending is not
expected to be required.
A two-stage ramp-up philosophy will be used. The plant will run intermittently (campaign treatment) and in 50% turndown
mode for the first three years. During the mine ramp-up period, the total volume of the coarse ore stockpile and start-up
stockpile will be used to maintain plant utilisation as high as practicable, minimizing the number of plant stops.
Models for the two process flowsheet variations were derived from the validated base case flowsheets, using standard
metal balance techniques per unit operation.
Qualified Persons
The QPs were employed on a full-time basis by Harmony. The QPs’ qualifications, areas of responsibility and personal
inspection of the property are summarised in the table below:
Qualified Person | Prof. Assoc. | Qualifications | TRS Section Responsibility | Personal Insp. |
Mr. R. Reid | FAIG, MAusIMM | BSc(Hons), Grad.Dip(Sc) | 3, 4, 5, 6, 7, 8, 9, 11 | Regular Last March 2025 |
Mr. G. Job | MAusIMM | BSc. MSc (Min Econ) | 11, 2, 3, 15, 21, 22, 23 | Regular, last 2020 |
Caveman Consulting | N/A | N/A | 12, 13 | 2016 |
Mr. M. Swart | FAusIMM, RPEQ, MIEPNG | BE (Met Eng), MBA | 10, 14 | None1 |
Mr. S. Wakefield | EIANZ | BENG (Civil), MENG (Environmental, Hons) | 17 | As required, last 2015 |
Mr. M. Koehler | CAANZ | BBus Acc, Grad Dip (CA) | 16, 18, 19 | None1 |
1 Not deemed necessary as no plant nor infrastructure has yet been constructed on site.
Exploration
The Wafi-Golpu Project has had a long history of exploration dating back to the 1980s.
A number of mapping programs were conducted over the Wafi-Golpu Project area including 1:10,000 fact mapping of
available outcrop. Mapping data and subsequent interpretations were used together with drill hole data to model the deposit
geology and structure. A structural model for the Wafi–Golpu area was compiled in 2011.
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Geophysical surveys were conducted as part of the early-stage exploration activities. The following surveys were
conducted:
• CRAE,1985: Dipole-dipole IP/resistivity survey;
• CRAE/Elders, 1990: Moving loop time domain electromagnetic (“EM”) geophysical survey; and
• CRAE, 1991–1997: Aeromagnetic, ground magnetic, SP, IP, and CSAMT geophysical surveys
WGJV staff re-examined some of the geophysical data in 2018, as follows:
•the 1985 survey, conducted using 100m and 200m dipole spacing, was compiled and inverted in three-dimensions (“3D”).
Generally high chargeability values were noted, and clearly defined the lithocap as a strong resistor above a relatively
conductive zone of clay alteration; and
•the 1990 EM survey data were inverted in 3D and show a clear conductor that coincides with the top of the Golpu deposit.
This conductor is probably due to sulphide veining which, unlike magnetite, has not been affected by late advanced argillic
alteration.
CRAE completed ridge and spur sampling programs from 1980–1982. CRAE also conducted an initial trenching program
comprising 102 trenches, varying in length from 1–1,840m, for a total 34,129m of trenching. Information from these programs
was superseded by drill data.
A total of 791 drill holes (including wedges) were completed in the project area by Harmony and its JV partners between
1983 and 2018, comprising 285,757m of core drilling and 17,180m of RC drilling.
In fiscal 2025 work included installation of seismic monitoring equipment as part of an upgrade to the Wafi-Golpu seismic
monitoring network.
The QPs are of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources and Mineral Reserves.
Mineral Resource Estimate
The Mineral Resource estimate assumes a bulk mining underground extraction method such as block caving and
metallurgical recovery for copper and gold by sulphide flotation.
The Mineral Resource estimate is reported based on mass mining by block cave with no internal selectivity. The 40m x
40m x 40m parent block size was an appropriate cell size for the planned bulk mining method. The shell did not represent a
conceptual block cave footprint and associated draw column height of draw. However, it did represent the economic material
potentially recoverable from a major block cave. The primary model was passed through a net smelter return ("NSR") calculation
sheet and a breakeven value shell was generated at margin zero to remove isolated projections and incorporate a small volume
of internal waste.
The metallurgical recovery model was based on copper flotation with copper and gold recovered to concentrate. Extensive
testwork was completed to establish algorithms developed from variability modelling. Metallurgical domains were based on both
the host rock type and alteration style. Each metallurgical domain was assigned a recovery algorithm, typically subdivided based
on Cu:S and Au:S ratios.
The NSR estimation was required only to establish the Mineral Resource reporting breakeven value shell. Mining and
milling costs were based on a block caving mining method and milling through a copper concentrator. The breakeven value shell
spatially constraining the grade model includes internal waste, and excluded isolated above-cut-off blocks, which reflected the
potential bulk mining scenario. There was no revenue assumed from silver or molybdenum in the NSR estimate; however, these
elements were estimated as part of the Mineral Resource estimation process as there may be potential for these metals to be
recovered with minor circuit modifications or concentrate contract negotiations.
Description | Unit | Value |
Gold price | US$/oz | 1,200 |
Copper price | US$/oz | 3.00 |
A$ Exchange rate | US$:A$ | 0.75 |
K Exchange rate | K:US$ | 3.10 |
Plant recovery factor - calculated | % | Varies |
Note:
1Unit cost includes cash operating cost, royalty and ongoing development capital.
The cut-off value is a NSR value that contains typical costs for the mining method and preliminary mining and metallurgical
recovery assumptions.
The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300. There has been no mining at the Wafi-Golpu Project.
The Mineral Resource estimate for Golpu, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is
summarised in the table below.
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Fiscal Year Ended 30 June | % Change | ||||||
Gold | 2025 | 2024 | |||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | |
Measured | — | — | — | — | — | — | — |
Indicated | 155.000 | 0.58 | 90,372 | 155.000 | 0.58 | 90,372 | — |
Total / Ave. Measured + Indicated | 155.000 | 0.58 | 90,372 | 155.000 | 0.58 | 90,372 | — |
Inferred | 70.000 | 0.62 | 44,000 | 70.000 | 0.62 | 44,000 | — |
Fiscal Year Ended 30 June | % Change | ||||||
Copper | 2025 | 2024 | |||||
Mineral Resource Category | Tonnes (Mt) | Copper Grade (%) | Copper Content (Mt) | Tonnes (Mt) | Copper Grade (%) | Copper Content (Mt) | |
Measured | — | — | — | — | — | — | — |
Indicated | 155.000 | 0.95 | 1.470 | 155.000 | 0.95 | 1.470 | — |
Total / Ave. Measured + Indicated | 155.000 | 0.95 | 1.470 | 155.000 | 0.95 | 1.470 | — |
Inferred | 70.000 | 0.86 | 0.600 | 70.000 | 0.86 | 0.600 | — |
Fiscal Year Ended 30 June | % Change | ||||||
Silver | 2025 | 2024 | |||||
Mineral Resource Category | Tonnes (Mt) | Silver Grade (g/t) | Silver Content (kg) | Tonnes (Mt) | Silver Grade (g/t) | Silver Content (kg) | |
Measured | — | — | — | — | — | — | — |
Indicated | 155.000 | 1.30 | 201,500 | 155.000 | 1.30 | 201,500 | — |
Total / Ave. Measured + Indicated | 155.000 | 1.30 | 201,500 | 155.000 | 1.30 | 201,500 | — |
Inferred | 70.000 | 1.10 | 77,000 | 70.000 | 1.10 | 77,000 | — |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 using the SAMREC Code, 2016. For the purposes of this report on
Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP
responsible for the estimate is Mr. R. Reid, FAIG, MAusIMM, whose job title is Group Resource Geologist with Harmony Gold (PNG
Services) Pty Limited.
2.The Mineral Resource tonnes are reported as in situ with reasonable prospects for economic extraction.
3.Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
4.Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
5.Mineral Resources at Golpu are reported assuming a bulk mining underground extraction method and metallurgical recovery for copper and
gold by sulphide flotation. Mineral Resources are reported above a NSR cut-off, which assumes a gold price of US$1,300/oz Au, a copper
price of US$3.40/lb Cu, mining cost of US$8.37/t mined, processing cost of US$9.75/t processed, general and administrative (G&A) costs of
US$4.17/t processed, copper concentrate treatment charge of US$100/dmt of concentrate, transport cost of US$33.50/wet tonne of
concentrate, and copper refining charges of US$0.10/lb of recovered copper. Silver and molybdenum were not valued in the NSR cut-off;
however, these elements were reported within the Mineral Resource as they were expected to be recovered with minor circuit modifications
or concentrate contract negotiations. Over the LOM, it is anticipated that copper recoveries will average 94% and gold recoveries will
average 68%.
6.Metal contents reported do not include allowances for processing losses.
7.Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
Rounding is to three significant figures for tonnes.
Mineral Resource estimate for Wafi, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is
summarised in the table below:
Fiscal Year Ended 30 June | |||||||
Gold | 2025 | 2024 | |||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Measured | — | — | — | — | — | — | — |
Indicated | 54.000 | 1.66 | 89,000 | 54.000 | 1.66 | 89,000 | — |
Total / Ave. Measured + Indicated | 54.000 | 1.66 | 89,000 | 54.000 | 1.66 | 89,000 | — |
Inferred | 15.000 | 1.30 | 20,000 | 20.000 | 1.37 | 26,000 | (23.1)% |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
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1302(d)(1)(iii)(A) of Regulation S-K 1300. The Qualified Person responsible for the estimate is Mr. R. Reid, FAIG, MAusIMM, whose job title
is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2.The Mineral Resource tonnes are reported as in situ with reasonable prospects for economic extraction.
3.Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
4.Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
5.Mineral Resources at Wafi are reported assuming open pit mining methods with limited internal selectivity, and a process method that is
anticipated to be a combination of CIP and CIL operation, with a flotation sulphide recovery mill process. The estimates are reported at cut-
offs of 0.4g/t Au for non-refractory gold mineralisation ("NRG") and 0.9g/t Au for refractory gold mineralisation ("RG"). Mineral Resources
are constrained within a conceptual open pit shell that uses the following input assumptions: gold price of US$1,400/oz; mining costs of
US$5.40/t mined, and process and general and administrative costs of US$17.30/t processed. Metallurgical recovery is estimated at 91%
gold recovery NRG and minimum of 47% recovery for RG. Pit slope approximate overall angles range from 33° in oxidised material to 65° in
fresh rock.
6.Metal contents reported do not include allowances for processing losses.
7.Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
Rounding is to three significant figures for tonnes.
Mineral Resource estimate for Nambonga, as at 30 June 2024 and 2025, exclusive of the reported Mineral Reserves, is
summarised below:
Fiscal Year Ended 30 June | |||||||
Gold | 2025 | 2024 | |||||
Mineral Resource Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Measured | — | — | — | — | — | — | — |
Indicated | — | — | — | — | — | — | — |
Total / Ave. Measured + Indicated | — | — | — | — | — | — | — |
Inferred | 24.000 | 0.69 | 16,000 | 24.000 | 0.69 | 16,000 | — |
Fiscal Year Ended 30 June | % Change | ||||||
Copper | 2025 | 2024 | |||||
Mineral Resource Category | Tonnes (Mt) | Copper Grade (%) | Copper Content (Mt) | Tonnes (Mt) | Copper Grade (%) | Copper Content (Mt) | |
Measured | — | — | — | — | — | — | — |
Indicated | — | — | — | — | — | — | — |
Total / Ave. Measured + Indicated | — | — | — | — | — | — | — |
Inferred | 24.000 | 0.20 | 0.047 | 24.000 | 0.20 | 0.047 | — |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP responsible for the estimate is Mr. R. Reid, FAIG, MAusIMM, whose job title is Group
Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2.The Mineral Resource tonnes are reported as in situ with reasonable prospects for economic extraction.
3.Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
4.Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
5.Mineral Resources at Nambonga are reported assuming a bulk mining underground extraction method. The Mineral Resource is reported
using an assumed 0.5g/t Au cut-off grade. This cut-off grade is based on the adjacent Golpu deposit as an analogue, assumes an overall
mining, processing, and G&A operating cost estimate of about US$15.50/t, a gold price of US$1,300/oz, and a metallurgical recovery of 85%
for gold. This equates to a cut-off grade of approximately 0.46g/t Au, based on gold only. Conceptual costs associated with copper and silver
recovery were approximated as equivalent to 0.04g/t Au. The total cutoff grade for reporting purposes was 0.5g/t Au.
6.Metal contents reported do not include allowances for processing losses.
7.Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
Rounding is to three significant figures for tonnes.
Mineral Reserve Estimate
The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of
this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item 1302(d)(1)(iii)(A) of Regulation
S-K 1300.
Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning
processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral
Resource conversion to Mineral Reserves considers certain modifying factors, dilution, ore losses, minimum mining widths,
planned mine call and plant recovery factors.
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The Mineral Reserve estimate for Golpu, as at 30 June 2024 and 2025, is summarised in the table below.
Fiscal Year Ended 30 June | |||||||
Gold | 2025 | 2024 | |||||
Mineral Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | Tonnes (Mt) | Gold Grade (g/t) | Gold Content (kg) | % Change |
Proved | — | — | — | — | — | — | — |
Probable | 190.000 | 0.83 | 158,628 | 190.000 | 0.83 | 158,628 | — |
Total / Ave. Proved + Probable | 190.000 | 0.83 | 158,628 | 190.000 | 0.83 | 158,628 | — |
Fiscal Year Ended 30 June | % Change | ||||||
Copper | 2025 | 2024 | |||||
Mineral Reserve Category | Tonnes (Mt) | Copper Grade (%) | Copper Content (Mt) | Tonnes (Mt) | Copper Grade (%) | Copper Content (Mt) | |
Proved | — | —% | — | — | —% | — | — |
Probable | 190.000 | 1.23 | 2.330 | 190.000 | 1.23 | 2.330 | — |
Total / Ave. Proved + Probable | 190.000 | 1.23 | 2.330 | 190.000 | 1.23 | 2.330 | — |
Notes:
1.Mineral Reserves are reported with an effective date of 30 June 2025, and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with Item
1302(d)(1)(iii)(A) of Regulation S-K 1300. The Qualified Person responsible for the estimate is Caveman Consulting, which meets the
requirements of a Qualified Person under S-K 1300.
2.Mineral Reserves are reported on a 50% basis as Harmony holds a 50% interest in the Wafi-Golpu Joint Venture.
3.The Golpu Ore Reserve is extracted in three vertically stacked block cave lifts (BC44, BC42 and BC40). The block caving method has been
determined as the preferred extraction method. Each level utilises an El Teniente style layout with on-level crushers and 30m x 18m drawbell
spacing, based on expected fragmentation and cave propagation behaviour. This spacing mitigates risks associated with isolated draw and
reduces the need for rehabilitation from point loading
4.Mineral Reserves are reported using the following assumptions: gold price of US$1,200/oz Au, copper price of US$3.00/lb Cu, above a net
smelter return cut-off of US$10/t (development), US$60/t (BC44), US$40/t (BC42), and US$19.15/t (BC40). Metallurgical recoveries vary by
domain and average approximately 68% for gold and 90% for copper.
5.Non-economic material drawn as part of the block caving process is treated as dilution. If the blended material from a drawpoint falls below
cut-off value, that drawpoint is closed. PCBC software was used in these simulations. Total dilution is estimated to be ~17%, including
~1.5% from toppling.
6.Tonnes, grade, and contained metal are reported as net delivered to the mill. Contained metal excludes processing losses.
7.Zero grade has been applied to unclassified and Inferred material within the extraction tonnage to ensure no metal contribution from areas
outside of Indicated category material. These tonnes are included in the mine schedule only where they must be extracted to access
classified ore.
8.Mineral Reserves assume the granting of Mining Lease applications; unfinalised mineral rights do not constrain the reported life-of-mine
schedule.
9.Rounding, as required by reporting guidelines, may result in apparent differences between tonnes, grade and contained metal content.
Rounding is to three significant figures for tonnes.
The 30 June 2025 Mineral Reserve estimate remains unchanged from the 30 June 2024 estimate. There is no change to
the mine plan.
The modifying factors are presented in the table below:
Modifying Factor | Unit | Value |
Gold Price | US$/oz | 1,200 |
Copper Price | US$/lb | 3.00 |
Exchange Rate | ||
A$ : US$ | 0.75 | |
K : US$ | 3.10 | |
NSR Cutoff | ||
Development | US$/t | 10.00 |
BC44 | US$/t | 60.00 |
BC42 | US$/t | 40.00 |
BC40 | US$/t | 19.15 |
Metallurgical Recoveries - gold | % | 68.00 |
Metallurgical Recoveries - copper | % | 90.00 |
Total Dilution | % | 17.00 |
Including Toppling | % | 1.50 |
There were no Mineral Reserves at Wafi or Nambonga.
For additional information, see the TRS on each individual property, filed as an exhibit of this annual report on Form 20-F.
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Eva Copper Project
Property Description
The Eva Copper Project is located in Queensland, Australia, 76 km by road northwest of Cloncurry (pop. 3,000), and
194 km by road from the regional mining centre of Mount Isa (pop. 22,000). Access to the project from Cloncurry is via the
sealed Burke Developmental Road which passes 8.5 km to the east of the proposed plant site, current access is via cattle
station and exploration tracks. The planned site for the plant and major infrastructure is also 11 km north of the major Dugald
River Zinc Mine, which is owned by MMG Limited. The Eva Copper Project is situated at a latitude of 19'51"26 S and
140'10"15 E.
All operations on site at this stage are exploratory and feasibility studies in nature with no mining having yet commenced.
The operation is proposed as a large, open-pit copper-gold mining operation with an associated gravity and flotation processing
plant. The project comprises the main Little Eva and Blackard open pit Mineral Resources and four smaller Mineral Resources,
expected to deliver an ore mixture with a maximum of 25% native copper ore to a copper concentrator processing plant adjacent
to the Little Eva and Turkey Creek pits.
The Property, Plant, and Equipment of Eva Copper Project as of 30 June 2025, including buildings and mine infrastructure,
assets under construction and undeveloped properties, had a carrying value of R 3,924 million. For information on assets and
liabilities (including costs after depreciation) of Eva Copper Project see note 39 “Segment report” to our consolidated financial
statements set forth beginning on page F-1.
Eva Copper Project incurred a fine for environment non-compliance (minor spill from a drill sump) and no significant
encumbrances exist.
The following graphic illustrates the location of the Eva Copper Project.
Operational Infrastructure
Other than access roads, the site has a 305 bed accommodation facility and other miscellaneous buildings and services
supporting exploration activities and preliminary work on site.
Geology
The Eva Copper Project is situated in the Mary Kathleen (“MK”) domain of the Mount Isa Province of Queensland,
Australia, an area that has a history of mining dating back to the 1860s. The Mount Isa area hosts numerous base metal copper,
zinc and lead deposits of global significance, including the Mount Isa, Ernest Henry, Century, Dugald River, Cannington and
Selwyn deposits. The Eva Copper Project is hosted by Proterozoic-aged, metamorphosed and poly-deformed marine
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sedimentary and volcanic rocks of the MK domain of the Eastern Fold Belt Inlier. Deformation, metamorphism and plutonic
activity took place during the Isan Orogeny, approximately 1,600 to 1,500 million years ago.
There are twelve known mineral deposits in the project area, of which six have been included in the current mine plan.
Mineral deposits are grouped into two types: copper-gold and copper only. There are five of the copper-gold deposits, four of
which are in the mine plan. These deposits are classified as iron oxide copper-gold deposits, where mineralisation is associated
with regional-scale haematite and albite alteration (red-rock alteration) and localised magnetite alteration. Copper sulphide
mineralisation, primarily chalcopyrite with lesser bornite, occurs as veins, breccias, fracture fill and disseminations in mafic to
intermediate volcanic or intrusive rocks. Gold is generally correlated with copper and is recovered in the copper concentrate.
Mineralisation appears to be localised and/or bounded by faults and other deformation-related structures.
All of the deposits have a 10m to 25m thick overlying zone of oxidation, where the rock is extensively weathered and
copper sulphide minerals have been leached or converted to various oxide minerals that cannot be recovered by flotation. The
oxide zones are treated as waste, but tonnages and copper grades have been estimated and the oxide mineralisation will be
stockpiled separately. With the exception of the Turkey Creek deposit, the copper-only deposits commonly have a significant
thickness of supergene material, where carbonate has been leached from the rock, reducing hardness and density and the
copper occurs as native-copper, chalcocite and other low-sulphur copper species. The carbonate-leached zone is separated
from the underlying sulphide zone by a thin transition zone. Each of these mineralogical zones has been modelled so that
resources can be estimated for each and the appropriate metallurgical recoveries can be applied for reserve estimation.
History
The Eva Copper Project has a long history and has been held under various tenures by a variety of exploration and mining
companies. Small-scale mining dating back to the early 1900s has occurred at deposits such as Little Eva, Bedford and Lady
Clayre.
Early work on the project area was undertaken by Ausminda Pty. Ltd. and CRAE between 1990 and 1996. In 1996,
Pasminco Limited (“Pasminco”) acquired the property who undertook further exploration and drilling on the copper-only
deposits. Pasminco excised and retained the Dugald River zinc deposit and sold the remainder of the tenements to Universal
Resources (“URL”) in 2001. URL also purchased the tenement hosting the Ivy Ann deposit from Dominion Metals Pty. Ltd. and
Pan Australian Resources NL. From 2001 to 2004, exploration work on the copper-only deposits was carried out under a joint
venture between URL and Bolnisi Logistics (“Bolnisi”). URL focused its own 2001–2004 drilling on the Little Eva and Bedford
copper-gold deposits. In 2004, URL acquired Bolnisi and completed a 2005 feasibility study on mining and processing a blend of
sulphide ore from the Little Eva and Bedford deposits with native copper ore from the Blackard and Scanlan deposits.
In 2005 URL entered into a joint venture option agreement with Xstrata, where Xstrata had the right to explore the central
area of the tenements. Xstrata completed some significant work, but elected not to proceed in January 2013. URL completed a
second feasibility study between 2007 and 2009 based on the same blend of sulphide ore and native copper ore used in the
2005 study.
In December 2009, URL merged with Vulcan Resources Limited, under the name of Altona Mining Limited (“Altona”). In
2012 Altona completed a definitive feasibility study based on the copper-gold sulphide deposits, but excluding the native copper
deposits. Mining Leases (“MLs”) and an EA were granted in 2012 based on the 2009 definitive feasibility study mine plan. Altona
completed additional drilling at the Bedford, Lady Clayre, Ivy Ann, Blackard, Legend and Scanlan deposits, and discovered and
delineated major prospects at Turkey Creek, Anzac, Whitcher, Matchbox and Quamby from 2015 to 2016. An EA amendment
was granted in 2016 based on the revised 2012 definitive feasibility study mine plan and the integration of Turkey Creek into that
mine plan.
In 2018, Altona became a wholly owned subsidiary of Copper Mountain Mining Company (“CMMC”) and was renamed
Copper Mountain Mining Pty Ltd ("CMMPL"). In 2022, Harmony (through its wholly-owned subsidiary, HGA) purchased the
project from CMMC and, in February 2023, commenced a confirmatory and expansion drilling program and other studies
designed to progress the project to a decision to mine.
Mineral Tenure
Refer to Item 4: “Information on the Company – Business Overview – Regulation – Mineral Rights – Australia” above for a
summary of the regulatory environment in Australia.
The Eva Copper Project consists of five MLs and one exploration permit for minerals (“EPM”). All six of the planned pits are
located within the MLs, except for the Ivy Ann deposit, which lies within the EPM.
The MLs were granted in 2012 and are currently owned by the Company’s wholly-owned subsidiary Eva Copper Mine Pty.
Ltd. (“ECMPL”). The MLs total area is 143km2 and are situated across from two pastoral lease holdings and within one Native
Title determination area.
The following table sets forth relevant information in relation to ECMPL's MLs as at 30 June 2025.
Number | Name | Granted | Expiry | Area (ha) |
90162 | Scanlan | 4 October 2012 | 31 October 2037 | 2 096.96 |
90163 | Longamundi | 4 October 2012 | 31 October 2037 | 1 411.29 |
90164 | Blackard | 13 November 2012 | 30 November 2037 | 5 131.07 |
90165 | Little Eva | 13 November 2012 | 30 November 2037 | 5 029.96 |
90166 | Village | 13 November 2012 | 30 November 2037 | 616.08 |
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ECMPL holds the following EPM as at 30 June 2025, as presented in the table below.
Number | Name | Holder | Granted | Expiry | Area (ha) |
25760 | King | ECMPL | 17 November 2015 | 16 November 2025 | 28,601 |
Harmony also holds 17 EPMs surrounding the MLs and in the broader Mount Isa region through the Company’s wholly-
owned subsidiaries, Roseby Copper Pty. Ltd. and Roseby Copper (South) Pty. Ltd.
Queensland state legislation requires that, where significant disturbance will occur from exploration and mining activities,
the license holder must reach an agreement for “Conduct and Compensation” with the pastoral leaseholder. Such agreements
have been secured for all the MLs and those portions of the EPM where ground disturbance has occurred or is anticipated.
Mining Method
There is currently no mining occurring on the leases with all activities confined to exploratory and resource confirmation
drilling. Additional work comprises geotechnical, metallurgical and hydrological drilling. Mining is to be via open pit methods
using conventional drill and blast, excavators and trucks.
Mineral Processing
There is currently no processing occurring on the leases with all activities confined to exploratory and resource
confirmation drilling. The feasibility study is considering a copper concentrator located close to the Little Eva deposit.
Feasibility studies are ongoing with the aim to declaring a Mineral Reserve upon completion of a successful feasibility
study update.
Qualified Persons
The QPs were employed on a full-time basis by Harmony. The QPs’ qualifications, areas of responsibility and personal
inspection of the property are summarised in the table below:
Qualified Person | Prof. Assoc. | Qualifications | TRS Section Responsibility | Personal Insp. |
Mr. R Reid | FAIG, MAusIMM | BSc(Hons), Grad.Dip(Sc) | 3, 4, 5, 6, 7, 8, 9, 11 | Regular Last June 2024 |
Mr. G Job | FAusIMM | BSc. MSc (Min Econ) | 1, 2, 3, 15, 21, 22, 23 | Regular, last December 2023 |
Exploration
Extensive geophysical surveying, primarily induced polarisation over the copper deposit areas and electromagnetic or
controlled source audio-frequency magnetotellurics (“CSAMT”) over the Dugald River zinc deposit host rocks, as well as gravity
and magnetic surveys, were undertaken in the area by CRAE. All of the deposits subcrop and were initially identified by surface
sampling and mapping. Airborne magnetic surveys over the project area are available from various government agencies.
Satellite hyperspectral surveys have also been used with some success by various companies in the area.
CRAE's bedrock and soil geochemical programs outside the Roseby copper deposits were not systematic, with minimal
assessment of gold mineralisation and left most of the surrounding area untested by geochemical surveys. CRAE’s focus at the
time was on the copper only (no gold containing) deposits due to their relatively high grades and the Little Eva and Lady Clayre
areas were of secondary exploration interest. The Little Eva copper-gold prospect was drilled by CRAE to an Inferred Resource
status, but the gold content was not assessed. The Lady Clayre prospect was also drilled by CRAE at the time, but no resource
estimate was completed. Metallurgical sampling and testing were conducted at Blackard and Lady Clayre, but not at Little Eva.
Following the acquisition of the project from CRAE by Pasminco, drilling and sampling programs focused primarily on the
Lady Clayre copper-gold sulphide prospect, Caroline (Lady Clayre East) and the copper-gold potential of the Mount Rose Bee
Fault area. This drilling was insufficient to define a formal resource at either deposit. Pasminco also initiated a soil and rock
sampling program designed to examine the Mount Rose Bee Fault and related splay faults. While this program detected
widespread but weak copper-gold mineralisation, generally in close spatial relationship with copper and gold soil geochemical
anomalies, Pasminco divested the Roseby copper project before the exploration program was completed.
Xstrata conducted exploration in the central Roseby area under the terms of an option and earn-in agreement with Altona.
Xstrata also completed deep drilling below the Little Eva, Blackard, Great Southern and Longamundi deposits demonstrating the
presence of large mineralised systems. Xstrata also discovered a mineralised system under cover at Cabbage Tree Creek some
3km north of Little Eva. Xstrata has also completed extensive geochemical, rock sampling, mapping and geophysical surveys
generating numerous targets, some of which have been subject to initial drill testing with positive results.
Altona carried out systematic soil geochemistry work over much of the claim area and this work was continued by CMMC.
This work has established numerous copper-in-soils targets within the Eva Copper Project tenure and surrounding EPM.
Shallow drilling of these targets has established numerous mineralised positions with opportunities to established new copper
and gold Mineral Resources.
Drilling by Harmony since acquiring the Eva Copper Project in December 2022 comprises some 157,611m (693 holes).
The drill program was undertaken in conjunction with the Eva Feasibility Study Update, designed to increase confidence in the
resource base and support study elements including metallurgical testwork, geotechnical aspects, primary water supply, and
infrastructure sterilisation. Drilling has also included work to test extensions of the existing deposits as well as historic zones of
mineralisation with potential for new satellite resource areas within the Eva Copper Project's granted ML tenure. In fiscal 2025
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67,378m of drilling (304 holes) was completed at the Eva Copper Project. At year end the work program was on going with two
drill rigs on-site.
Over the broader tenement package Harmony's regional exploration activities have focused on:
•Surface gravity data collection: A regional surface gravity survey (2,228 stations) was completed in fiscal 2024 over an
approximate 80km by 20km area extending from the Barkly Highway in the south to north of the Little Eva Deposit. Station
spacing was nominally 1000m by 500m. Subsequent detailed infill gravity surveys (200m by 50m station spacing, totalling
3,218 stations) were completed over the Little Eva, Legend, Lady Clayre and Ivy Ann deposits to help characterise the
geophysical footprints for each of the deposits. The detailed surveys proved particularly useful for discriminating and
prioritising prospective targets and on this basis detailed gravity coverage was extended to cover the full 41.5km of strike
of the prospective Mt Roseby structural corridor in fiscal 2025 (12,760 stations).
•Compilation of historic geochemical, geophysical and geophysical and historic drill datasets continued. Over 340 prospect
areas within the tenement area have been identified and ranked to date.
•Field reconnaissance, mapping and drill target development.
The QPs are of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to
support the estimation of Mineral Resources.
Mineral Resource Estimate
The Mineral Resource estimate for the Eva Copper Project is considered to have reasonable prospects for economic
extraction. Mineral Resources are reported at a 0.17% Cu cut-off by deposit type, based on the economic assumptions
presented in the table below at 30 June 2025.
Description | Unit | Value |
Gold price | US$/oz | 1,941 |
Copper price | US$/lb | 5.10 |
Exchange rate | US$:A$ | 0.68 |
This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery
assumptions.
Mineral Resources for the Eva Copper Project's deposits were prepared by Harmony personnel, based on all drilling
conducted up to December 2024. The resource models from CMMC were audited and retained for the Lady Clayre and Ivy Ann
deposits. The Mineral Resources were originally prepared, classified and reported according to the SAMREC, 2016. For the
purposes of this report on Form 20-F, the Mineral Resources have been classified in accordance with Item 1302(d)(1)(iii)(A) of
Regulation S-K 1300. The Mineral Resource estimate, as at 30 June 2024 and 2025, exclusive of Mineral Reserves, however no
Mineral Reserve are declared, is summarised in the table below. There are no Measured Resources.
Gold | Fiscal Year Ended 30 June | |||||||
2025 | 2024 | |||||||
METRIC | Grade | Metal Content | Grade | Metal Content | ||||
Mineral Resource Category | Open Pit | Tonnes (Mt) | Gold (g/t) | Gold (kg) | Tonnes (Mt) | Gold (g/t) | Gold (kg) | % Change |
Total / Ave. Measured | 0.000 | 0.00 | 0 | 0.000 | 0.00 | 0 | —% | |
Indicated | Little Eva | 183.201 | 0.06 | 11,425 | 155.949 | 0.06 | 10,103 | 13.1% |
Bedford | 3.318 | 0.15 | 486 | 2.094 | 0.15 | 320 | 51.9% | |
Lady Clayre | 4.349 | 0.18 | 772 | 5.097 | 0.15 | 761 | 1.4% | |
Ivy Ann | 5.202 | 0.07 | 382 | 5.202 | 0.07 | 382 | —% | |
Total / Ave. Indicated | 196.070 | 0.07 | 13,066 | 168.343 | 0.07 | 11,566 | 13.0% | |
Total / Ave. Measured + Indicated | 196.070 | 0.07 | 13,066 | 168.343 | 0.07 | 11,566 | 13.0% | |
Inferred | Little Eva | 23.893 | 0.08 | 1,981 | 24.065 | 0.07 | 1,788 | 10.8% |
Bedford | 0.958 | 0.12 | 113 | 1.286 | 0.13 | 167 | (32.3)% | |
Lady Clayre | 0.747 | 0.10 | 75 | 1.141 | 0.08 | 97 | (22.7)% | |
Ivy Ann | 1.163 | 0.07 | 78 | 1.163 | 0.07 | 78 | —% | |
Total / Ave. Inferred | 26.762 | 0.08 | 2,247 | 27.656 | 0.08 | 2,129 | 5.5% | |
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Copper | Fiscal Year Ended 30 June | |||||||
2025 | 2024 | |||||||
METRIC | Grade | Metal Content | Grade | Metal Content | ||||
Mineral Resource Category | Open Pit | Tonnes (Mt) | Copper (%) | Copper (Kt) | Tonnes (Mt) | Copper (%) | Copper (Kt) | % Change |
Total / Ave. Measured | 0.000 | 0.00 | 0 | 0.000 | 0.00 | 0 | —% | |
Indicated | Little Eva | 183.201 | 0.32 | 594 | 155.949 | 0.34 | 531 | 11.9% |
Bedford | 3.318 | 0.55 | 18 | 2.094 | 0.57 | 12 | 50.0% | |
Lady Clayre | 4.349 | 0.43 | 19 | 5.097 | 0.38 | 19 | —% | |
Ivy Ann | 5.202 | 0.34 | 18 | 5.202 | 0.34 | 18 | —% | |
Turkey Creek | 28.454 | 0.42 | 119 | 22.393 | 0.42 | 95 | 25.3% | |
Blackard | 115.900 | 0.48 | 555 | 78.989 | 0.48 | 375 | 48.0% | |
Scanlan | 14.948 | 0.59 | 88 | 17.429 | 0.58 | 101 | (12.9)% | |
Legend | 31.193 | 0.47 | 147 | 0.000 | 0.00 | 0 | 100.0% | |
Great Southern | 12.915 | 0.42 | 54 | 0.000 | 0.00 | 0 | 100.0% | |
Total / Ave. Indicated | 399.481 | 0.40 | 1,612 | 287.154 | 0.40 | 1,150 | 40.2% | |
Total / Ave. Measured + Indicated | 399.481 | 0.40 | 1,612 | 287.154 | 0.40 | 1,150 | 40.2% | |
Inferred | Little Eva | 23.893 | 0.33 | 79 | 24.065 | 0.34 | 81 | (2.5)% |
Bedford | 0.958 | 0.38 | 4 | 1.286 | 0.46 | 6 | (33.3)% | |
Lady Clayre | 0.747 | 0.43 | 3 | 1.141 | 0.37 | 4 | (25.0)% | |
Ivy Ann | 1.163 | 0.33 | 4 | 1.163 | 0.33 | 4 | —% | |
Turkey Creek | 5.374 | 0.44 | 24 | 3.588 | 0.43 | 15 | 60.0% | |
Blackard | 33.719 | 0.40 | 136 | 40.257 | 0.44 | 176 | (22.7)% | |
Scanlan | 9.666 | 0.48 | 46 | 7.627 | 0.45 | 34 | 35.3% | |
Legend | 5.001 | 0.33 | 16 | 0.000 | 0.00 | 0 | 100.0% | |
Great Southern | 1.920 | 0.39 | 8 | 0.000 | 0.00 | 0 | 100.0% | |
Total / Ave. Inferred | 82.442 | 0.39 | 320 | 79.128 | 0.41 | 321 | (0.3)% | |
Notes:
1.Mineral Resources are reported with an effective date of 30 June 2025 and were originally prepared, classified and reported according to
SAMREC, 2016. For the purposes of this report on Form 20-F, the Mineral Reserves have been classified in accordance with
§229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K 1300. The QP for the estimate is Mr. R. Reid, FAIG, MAusIMM, whose job
title is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2.The Mineral Resource tonnes are reported as in situ with reasonable prospects for economic extraction.
3.Resources are reported at a cut-off grade based on approximate net smelter return values which equate to a copper grade of 0.17% Cu for
sulphide ore and 0.2% Cu for native copper ore.
4.Copper and gold Mineral Resources are hosted in the same deposits. They are reported in separate tables for clarity, as not all deposits
contain gold. Reported tonnages are the same underlying material and are not double-counted in project totals.
5.Mineral Resources are exclusive of Mineral Reserves (however no Mineral Reserves are declared).
6.Mineral Resources are constrained within a pit shell generated with a copper price of $5.10/lb, a gold price of $1,941/oz and an exchange
rate of AU$1.00 = US$0.68.
7.Density measurements were applied (ranges from 2.4 t/m3 to 3.0 t/m3).
8.Significant figures have been reduced to reflect uncertainty of estimations and therefore numbers may not add due to rounding.
Mineral Reserve Estimate
Not applicable.
Mineral Resource and Mineral Reserve Internal Controls Disclosure
Harmony’s Mineral Resources and Mineral Reserves estimates are subject to internal Competent Persons reviews
administered by the Central Ore Reserve Management team and cyclically by external and independent experts.
Harmony’s Mineral Reserve is an outcome of the Company’s business planning process which runs annually. This process
operates within a comprehensive framework where all inputs, including costs and capital requirements, are generated by the
operation, and reviewed at a regional and corporate level within the Company, thereby providing confidence in the estimates.
Harmony follows an embedded process of third-party reviews to provide expert independent assurance regarding the
Mineral Resources and Mineral Reserves estimates and compliance to the appropriate reporting codes.
In line with Harmony’s policy that each material operation will be reviewed by an independent third party on average no
less than once every three years, or when triggered by a material new Mineral Resource and/or Mineral Reserve declaration.
The following operations were subject to external review during 2025: Target 1, Moab Khotsong and Kalgold. No material issues
were identified in the estimation processes and LOM plans and Compliance Certificates have been issued by the independent
consultants for these operations. The certificates state that the Mineral Resources and Mineral Reserves have been estimated
and reported in accordance with SAMREC, 2016. Importantly, third-party audits are also configured to assist with continuous
improvement regarding leading practice in Mineral Resources and Mineral Reserves estimation and reporting.
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ITEM 4A. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
You should read the following discussion and analysis together with our consolidated financial statements, including the
related notes, set forth beginning on page F-1.
A discussion of the changes in our financial condition and results of operations between the fiscal years ended
30 June 2023 and 2024, has been omitted from this Harmony 2025 Form 20-F, but may be found in Item 5: "Operating and
Financial Review and Prospects", of the Harmony 2024 Form 20-F for the year ended 30 June 2024, filed with the SEC on
31 October 2024, which is available free of charge on the SEC’s website at www.sec.gov and our website at
www.harmony.co.za.
Overview
Harmony is currently the largest producer of gold in South Africa and is furthermore an important producer in PNG. Our
gold sales for fiscal 2025 were 46,193 kilograms of gold (1.5 million ounces of gold) and in fiscal 2025 we processed
approximately 51 million tonnes of ore. As at 30 June 2025, our mining operations and projects reported total Proved and
Probable Mineral Reserves of approximately 36.8 million gold and gold equivalent ounces, Measured and Indicated Mineral
Resources (exclusive of Mineral Reserves) of approximately 99.1 million gold and gold equivalent ounces and Inferred Mineral
Resources (exclusive of Mineral Reserves) of approximately 36.3 million gold and gold equivalent ounces. For further
information on the company’s Mineral Resources and Mineral Reserves, see Item 4: "Information on the Company - Property,
Plant and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure”.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. See note 39 "Segment report" of our consolidated financial statements set forth beginning on page F-1 for further details.
For segment purposes, management distinguishes between “Underground” and “Surface”, with each shaft or group of
shafts or open-pit mine managed by an operational team.
Our reportable segments are as follows:
•Moab Khotsong, Mponeng, Tshepong North, Tshepong South, Doornkop, Joel, Target 1, Kusasalethu, Masimong,
Bambanani (closed June 2022), MWS and Hidden Valley; and
•All other surface operations, including those that treat historic tailings, include Phoenix, Central Plant Reclamation, Savuka
Tailings, WRDs and Kalgold, are grouped together under “All other surface operations”.
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A. OPERATING RESULTS
Key factors affecting our results
Gold Prices
Most of our revenues are derived from the sale of gold. As a result, our operating results are directly related to the price of
gold. Historically, the price of gold has fluctuated widely. The gold price is affected by numerous factors over which we do not
have control. See Item 3: “Key Information - Risk Factors - Market Risks - The profitability of our operations, and cash flows
generated by those operations, are affected by changes in the price of gold and other metals; a fall in the gold price below our
cash cost of production and capital expenditure required to maintain production for any sustained period may lead to losses and
require us to curtail or suspend certain operations” and “- Rising inflation and geopolitical risks may have a material adverse
effect on our business, operating results and financial condition”. As a general rule, we sell the majority of our gold produced at
market prices to obtain the maximum benefit from increases in the prevailing gold price.
Since fiscal 2017, 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. Our hedging strategy was
expanded during the second half of the fiscal 2024 to introduce gold zero cost collars to the derivative program and to set a new
limit.
The limit set by the Board is 30%, 20% and 10% of production in a 12-, 24- and 36-month period, respectively, for
contracts entered into on or after 1 April 2024. Prior to the change, the limit set by the Board was for 20% of the production from
gold over a 24-month period. The limit set by the Board for silver is 50% of the exposure over a 24-month period and 50% for
uranium exposure over a 60-month period. Management continues to top up these programs as and when opportunities arise to
lock in attractive margins for the business, but we are not required to maintain hedging at these levels.
A portion of the production of the South African operations is linked to Rand gold forward contracts and Rand gold zero
cost collar contracts. US$ gold forward contracts and US$ gold zero cost collar contracts were entered into for the production
from Hidden Valley. The exposure to the variability in the price of silver for Hidden Valley is managed by entering into US$ silver
zero cost collars. The US$ silver zero collars have not been designated as hedging instruments for hedge accounting and the
gains and losses are accounted for in the income statement.
During fiscal 2025 the group's cash inflows from uranium were managed by way of a forward contract, whereby uranium
prices are predetermined for a fixed amount of uranium production. These contracts are not designated as derivative contracts
as the “own use” exemption of IFRS 9 Financial instruments is applicable to them.
Harmony's indirect subsidiary, MWS, previously entered into a contract with Franco-Nevada Barbados ("Franco-Nevada").
The Franco-Nevada contract consisted of a streaming agreement to purchase 25% of the gold production through MWS for a
fixed amount of consideration until the balance of the gold cap is delivered. The gold cap, a provision included in the contract,
stipulated the maximum quantity of gold to be sold to Franco-Nevada over the term of the contract. The consideration was
determined as the lower of the quoted spot gold price as per the London Metals Exchange or US$400 per ounce, subject to an
annual escalation adjustment. As the performance obligation to deliver gold is met, the contract liability unwinds into revenue.
On 23 October 2024, Harmony fulfilled all its obligations stemming from the agreement with Franco Nevada.
Significant changes in the price of gold over a sustained period of time may lead us to increase or decrease our production
in the near term.
Harmony’s Realised Gold Price
In fiscal 2025, the average gold price received by us was R1,529,358 per kilogram or $2,620/oz. This average gold price
includes the net realised effective portion of the hedge-accounted gold derivatives.
The price of gold in US$ terms closed at US$3,303/oz on 30 June 2025, up from the closing price of US$2,325/oz on 30
June 2024. The range traded during the year reaffirms gold's safe haven status with investors during times of global uncertainty
and market volatility. The average spot gold price received (that is, excluding the impact of hedging gains or losses) for the 2025
year was US$2,786/oz compared to US$2,042/oz in fiscal 2024.
Harmony is exposed to the impact of any significant decreases in the commodity prices on its production. This is mitigated
to some extent by commodity derivatives and hedging arrangements, but as Harmony has limitations for the volume of forward
sales, commodity derivatives or hedging arrangements it may enter into for its future production, it is exposed to the impact of
decreases in the commodity prices on the remainder of its unhedged production. See Item 3: “Key Information - Risk Factors -
Risk Related to Our Industry - We are exposed to the impact of any significant decreases in the commodity prices on our
production", and “ - Market Risks - The profitability of our operations, and cash flows generated by those operations, are
affected by changes in the price of gold and other metals; a fall in the gold price below our cash cost of production and capital
expenditure required to maintain production for any sustained period may lead to losses and require us to curtail or suspend
certain operations”.
In addition to the US$ gold price, the gold price received is impacted by the exchange rate of the Rand and other non-US$
currencies to the US dollar. An appreciation of the Rand and other non-US$ currencies against the US dollar will result in a
decrease in the revenue recorded, without considering the impact of the hedging instruments. Conversely, a depreciation of
these currencies against the US dollar would result in an increase of revenue recorded. See Item 3: “Key Information - Risk
Factors - Market Risks - Foreign exchange fluctuations could have a material adverse effect on our operational results and
financial condition”. During fiscal 2025, the average exchange rate appreciated from R18.70/US$1.00 in fiscal 2024, to
R18.15/US$1.00 in fiscal 2025. See "- Exchange Rates" below for further discussion.
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The following table sets out the average, the high and the low London Bullion Market price of gold and our average sales
price during the past two fiscal years:
Fiscal Year Ended 30 June | |||
2025 | 2024 | ||
Average (US$/oz) ..................................................................................................................................... | 2,818 | 2,076 | |
High (US$/oz) ............................................................................................................................................ | 3,432 | 2,444 | |
Low (US$/oz) ............................................................................................................................................. | 2,329 | 1,819 | |
Harmony’s average sales price1 (US$/oz)) ........................................................................................... | 2,620 | 1,999 | |
Average exchange rate (R/US$) ............................................................................................................ | 18.15 | 18.70 | |
Harmony’s average sales price1 (Rand/kilogram) ................................................................................ | 1,529,358 | 1,201,653 | |
1Our average sales price differs from the average gold price due to the timing of our sales of gold within each year. In addition, the effect of
hedge accounting i.e. realised losses from the cash flow hedges have been included in revenue.
Costs
Our cash costs are approximately between 80% and 85% of our total costs (excluding impairments and disposal/loss on
scrapping of assets). The remainder of our total costs consists primarily of share-based payments, exploration costs, corporate
and sundry expenditure, and amortisation and depreciation. Our cash costs consist primarily of production costs. Production
costs are incurred on labour, equipment, consumables and utilities. Labour costs are the largest component and typically
comprise between 50% and 55% of our production costs.
Our US dollar translated costs are sensitive to the exchange rate of the Rand and other non-US currencies to the US
dollar. See "- Exchange Rates" below. Appreciation of the Rand and other non-US currencies against the US dollar increases
working costs at our operations when those costs are translated into US dollars. See Item 3: “Key Information - Risk Factors -
Market Risks - Foreign exchange fluctuations could have a material adverse effect on our operational results and financial
condition”.
All-in sustaining costs for the Group increased by 16.9% to R1,054,346 per kilogram in fiscal 2025. This was driven by
lower planned production, higher sustaining capital as well as higher cash costs due to annual wage and above-inflation
electricity tariff increases.
Our cash costs have increased from R758,736 per kilogram in fiscal 2024 to R874,901 per kilogram in fiscal 2025, mainly
due to above-inflation increase in electricity costs, higher royalties and labour increases.
Management conducts a thorough review of costs at all operations to ensure that costs are properly managed and within
budget. However, it should be noted that there are risks beyond our control such as safety stoppages, which would result in
production being negatively affected while certain costs would still be incurred. This is discussed in more detail in Item 3: “Key
Information - Risk Factors - Risks Related to Our Industry - The nature of our mining operations presents safety risks and "-
Risks Related to ESG - Given the nature of mining and the type of mines we operate, we face a material risk of liability, delays
and increased cash costs of production from environmental and industrial accidents and pollution compliance breaches”. We are
also exposed to price increases on electricity, which is regulated, as well as the implementation of other levies such as carbon
tax. See Item 3: "Key Information - Risk Factors - Risks Related to Our Operations and Business - Disruptions to electricity
supply and rising power costs: Impact on operations and financial results" and "- Risks Related to ESG - Compliance with
emerging climate change regulations could result in significant costs for us".
We remain subject to risks related to the volatility of commodity prices, as well as the potential shortage of supply and
disruptions of supply chains due to geopolitical instability, including impacts of the ongoing conflicts in the Middle East. See Item
3: "Key Information - Risk Factors - Market Risks - Fluctuations in input production prices linked to commodities may adversely
affect our operational results and financial condition","- Risks Related to Our Operations and Business - Actual and potential
shortages of production inputs and supply chain disruptions may affect our operational results" and “- Market Risks - Rising
inflation and geopolitical risks may have a material adverse effect on our business, operating results and financial condition”.
Production levels
In addition to gold prices, Harmony’s gold income in any year is also influenced by its level of gold production. Production
levels are in turn influenced by grades, tonnages mined and processed through the plant and metallurgical recoveries. Gold
production decreased by 5.3% between 2024 and 2025, from 1,561,815 ounces in 2024 to 1,479,671 ounces in 2025 mainly
driven by lower recovered grades, reduced ore milled and infrastructure challenges and operational disruptions. For more
information on our business and operations, see Item 4: “Information on the Company -– Business Overview” and “- Property,
Plant and Equipment - Mineral Resource and Mineral Reserve Summary Disclosure”.
Exchange Rates
Our revenues are very sensitive to the exchange rate of the Rand and other non-US currencies to the US dollar. Since gold
is generally sold in US dollars, most of our revenues are received in US dollars. Currently, the majority of our earnings are
generated in South Africa. Appreciation of the Rand against the US dollar decreases our revenues, which serves to reduce
operating margins and net income from our South African operations. Depreciation of the Rand against the US dollar increases
our revenue, which serves to increase operating margins and net income from our South African operations. Accordingly,
strengthening of the Rand generally results in poorer earnings for us if there is not a similar increase in the gold price.
The exchange rates obtained when converting US dollars to Rand are determined by foreign exchange markets, over
which we have no control. The spot rate as at 30 June 2025 was R17.75 per US$1.00, compared with R18.19 per US$1.00 as
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at 30 June 2024, reflecting an appreciation of 2.4% of the Rand against the US dollar. The average exchange rate for fiscal
2025 was R18.15 per US$1.00, reflecting an appreciation of 2.9% of the Rand against the US dollar when compared with fiscal
2024. In fiscal 2025, the Rand strengthened against the Australian dollar and closed at R11.68/A$1.00 (2024: R12.14/A$1.00),
reflecting an appreciation of 3.8% of the Rand against Australian dollar. The Kina weakened against the Australian dollar and
closed at PGK2.72/A$1.00 (2024: PGK2.57/A$1.00), reflecting a depreciation of 5.8%. The average gold price received by us
during fiscal 2025, before including the effect of the cash flow hedges, increased by R397,799 per kilogram to R1,625,683 per
kilogram from R1,227,884 per kilogram during fiscal 2024. This is driven by the US$ average gold price increase, with an offset
effect of the foreign exchange movements noted above.
The majority of our working costs are incurred in Rand and, as a result of this, any appreciation of the Rand against the US
dollar would increase our working costs when translated into US dollars. Depreciation of the Rand against the US dollar would
cause a decrease in our costs in US dollar terms. Similarly, at our international operations, appreciation of the Australia dollar or
Kina against the US dollar would cause an increase in our costs in US dollar terms. See Item 3: “Key Information - Risk Factors
-Market Risks - Foreign exchange fluctuations could have a material adverse effect on our operational results and financial
condition”.
We have several credit facilities and loans denominated in US dollars. This exposes us to the changes in the Rand against
the US dollar, which would affect our borrowings as well as the interest recognised. This will also affect the cash flows when the
borrowings are raised and repaid as well as at the time of the payments of the interest.
Movements in the currencies expose the Group's operations to foreign currency gains and losses on foreign-denominated
receivables and liabilities, including derivatives. They 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 R819 million for
fiscal 2025 (2024: R943 million).
Harmony has entered into foreign exchange derivative contracts in the form of zero cost collars, which establish a
minimum (floor) and maximum (cap) Rand/US dollar exchange rate at which to convert US dollars to Rand. The Group also
uses forward exchange contracts to manage the risks. At 30 June 2025, the zero cost collars had a nominal amount of US$226
million in derivative contracts, covering a two-year period with a weighted average cap price of US$1.00=R20.54 and weighted
average floor price of US$1.00=R18.54. Additionally, at 30 June 2025 Harmony had open forward exchange contracts which
had a nominal amount of US$53 million spread over a one-year period at an average exchange rate of US$1.00 = R19.98.
The Bank of Papua New Guinea has systematically allowed the Kina to weaken against the US dollar over several years.
The Kina weakened by 7.8% and 7.0% in fiscal 2024 and fiscal 2025 respectively. Since the introduction of a 150 basis point
trading band in June 2014, the Kina weakened by 68.9% against the US dollar as at 30 June 2025. Should the trading band
continue and depending on the level the exchange rate is set at, it could have a negative impact on the results of the Hidden
Valley operation, as well as the Kina cost of development at Wafi-Golpu and other PNG exploration sites.
Geopolitical and socio-political risks
Harmony faces material exposure to geopolitical and socio-political risks across its operating jurisdictions. Globally, rising
tensions from conflicts, trade disputes, and shifting alliances disrupt supply chains and elevate input costs, which impact our
financial margins. Locally, socio-political pressures in South Africa, including high unemployment and persistent disparities, fuel
public dissatisfaction posing operational challenges. In Papua New Guinea, political uncertainty and proposed legislative
changes under the PNG Draft Mining Bill 2025 may threaten project viability and future investment. While these risks elevate
cost and operational pressures, they also contribute to upward momentum in the gold price, which can partially offset financial
impacts and enhance revenue potential. See Item 3: "Key Information - Risk Factors - Market Risks - Fluctuations in input
production prices linked to commodities may adversely affect our operational results and financial condition”, “- Rising inflation
and geopolitical risks may have a material adverse effect on our business, operating results and financial condition” and “- We
are subject to the imposition of various regulatory costs, such as mining taxes and royalties, changes to which may have a
material adverse effect on our operations and profits; our operations and financial condition could also be adversely affected by
policies and legislation related to greater state intervention in the mining sector and potentially the expropriation of mining assets
without compensation – Papua New Guinea”.
Inflation
Inflation in South Africa was 2.9% at the end of fiscal 2025, down from 5.1% at the end of fiscal 2024. The decrease was
driven by a combination of economic, policy and consumer behaviour factors.
We have, however, seen increases in labour, contractors and electricity costs for our mining operations some of which
have increased at levels above the rate of inflation. Combined with geopolitical risks and further compounding inflationary
pressure, we believe we will see continued increases through 2026.
On 4 April 2024, Harmony announced the acceptance of a five-year wage agreement by the unions, which became
effective on 1 July 2024 and will remain in effect until 30 June 2029. This agreement will result in an increase of approximately
6% per annum over the five-year period which is within our planning parameters.
The inflation rate in PNG at the end of fiscal 2024 was 2.4%, while inflation closed at 3.6% at the end of fiscal 2025. The
increase is driven by a mix of domestic policy reforms, commodity price shifts and structural economic changes.
Our profits and financial condition could be adversely affected if, increased costs due to inflation, are not offset by a
concurrent devaluation of the Rand and other non-US currencies and/or an increase in the price of gold. See Item 3: “Key
Information - Risk Factors - Market Risks - Rising inflation and geopolitical risks may have a material adverse effect on our
business, operating results and financial condition”.
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South African Socio-Economic Environment
We are domiciled in South Africa and the majority of our operations are located in South Africa. The primarily listing for our
shares is also on the Johannesburg Stock Exchange. As a result, we are subject to various economic, fiscal, monetary and
political policies and factors that affect South African companies generally. See Item 3: “Key Information - Risk Factors - Risks
Related to ESG - The socio-economic landscape in the regions in which we operate may have an adverse effect on our
operations and profits”.
In particular, South African companies are subject to exchange control limitations. While exchange controls were relaxed
some years ago, South African companies remain subject to restrictions on their ability to deploy capital outside of the Southern
African Common Monetary Area. See Item 10: “Additional Information - Exchange Controls”.
We must also comply with the SLPs that have been developed for each of our South African operations. These SLPs are
prepared in line with legislation governing the participation of HDPs in mining assets. See Item 3: "Key Information - Risk
Factors - Risk Related to Our Industry - Laws governing mineral rights affect our business and could impose significant costs
and obligations; mineral rights in the countries in which we operate could be altered, suspended or cancelled for a variety of
reasons, including breaches in our obligations in respect of such mining rights.”
We have been granted mining licenses under the MPRDA necessary for the conduct of our current operations. As such we
have therefore already incurred expenses relating to HDP participation. We believe the biggest challenge will lie in maintaining
these licenses, as we will have a responsibility in respect of human resource development, procurement and local economic
development. We are however unable to provide a specific amount of what the estimated cost of compliance will be, but we will
continue to monitor these costs on an ongoing basis. See Item 4: "Information on the Company - Business Overview -
Regulation - Mineral Rights - South Africa – Mining Charter."
Electricity in South Africa
Eskom, the state utility, generates approximately 90% of South Africa’s electricity and about 30% of Africa’s supply. It
generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential users.
In fiscal 2025, electricity supply remained constrained but improved, with fewer interruptions. Eskom suspended load
shedding in April 2024 as the Generation Recovery Plan improved plant performance. Consequently power interruptions did not
materially impact production in fiscal 2025. Global energy prices remained volatile due to higher demand, limited new supply,
carbon tax uncertainty, and geopolitical conflicts, including those in the Middle East and between Russia and Ukraine.
Electricity supply remains tight during evening peak periods. We continue to participate in Eskom’s Critical Peak Pricing
pilot at four sites, allowing tariff savings outside surcharge periods.
The South African Government is expanding the Independent Power Producer ("IPP") program to diversify supply and
reduce carbon emissions. Eskom’s transmission business was legally separated in July 2023 into the National Transmission
Company of South Africa ("NTCSA"), a wholly owned subsidiary with a license from the National Energy Regulator of South
Africa (“NERSA”). NTCSA began operating on 1 July 2024. Unbundling of the generation and distribution divisions is ongoing.
See Item 3: "Key Information - Risk Factors - Risks Related to Our Operations and Business - Disruptions to electricity
supply and rising power costs: Impact on operations and financial results".
Renewable energy
Renewables are a growing component of South Africa’s energy mix. Forecasts project solar and wind will surpass coal by
2030 (IEA 2024). Increased renewable penetration and self-generation are reducing Eskom’s sales volumes, contributing to tariff
increases and delays in new grid connections. The government has also supported gas-to-power and nuclear options, while
continuing state support for coal.
In South Africa, a multi-phase renewable energy programme is underway, complemented by short-term power purchase
agreements, wheeled wind capacity, rooftop solar installations, and supplier engagement. Recent regulatory reforms in South
Africa have significantly accelerated the country’s energy transition. The removal of licensing requirements for embedded
generation and the unbundling of Eskom’s transmission division have enabled greater private sector participation in renewable
energy development and the wheeling of electricity through the national grid. These changes have created a more favourable
environment for large-scale renewable energy investments. We propose to increase our procurement of wind energy delivered
through wheeling from 140 MW to 260 MW. This is expected to come online in Q4 of 2027. Lastly, we are also exploring the
opportunity of bringing in 200MW of short term PPA energy into the mix, from fiscal 2027 to fiscal 2031.
Phased strategy:
•Sungazer 1 (Phase 1) - 30 MW commissioned May 2023 with installed generation capacity of 70GWh pa;
•Sungazer 2 - Moab, Great Noligwa Mine and Noligwa gold plant. Under construction. 100MW capacity to generate
230GWh pa and is expected to be completed in fiscal 2027;
•Sungazer 3a - Central, H1, Target, Joel. Installed capacity of 75 MW to generate 177GWh pa and is expected to be
completed in fiscal 2028;
•Sungazer 3b - Chemwes, Kalgold. Under investigation. Installed capacity of 33 MW to generate 76GWh pa and is
expected to be completed in fiscal 2028;
•Sungazer 4 - Mponeng installed capacity of 100 MW to generate 230GWh pa and is expected to be completed in fiscal
2028;
•Wheeled wind - Procurement of circa 260MW of wind energy is underway and is expected to be completed in fiscal 2028;
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•Short term PPA - 200MW of energy has been completed and PPA negotiations are underway. Once concluded, we expect
to generate 500GWh of energy per annum for a period of five years.
Harmony is integrating climate-aligned finance into its capital structure to support long-term decarbonisation and operational
resilience. Over R4 billion in facilities have been secured, including a R1.5 billion green loan for the Sungazer 2 solar project and
sustainability-linked revolving credit facilities of R2.5 billion, US$300 million, and a US$100 million term loan.
See Item 10: “Material Contracts - R1.5 Billion Green Term Loan” “- R2.5 Billion Syndicated Revolving Credit Facility”,“-
US$400 Million Syndicated Facility”, and '' - US$1,250 Million Syndicated Bridge Loan Facility''. See also “– Governance –
Social and ethics committee: Chairperson's report” on pages 225 to 226, “– Environment stewardship – Building a lasting
positive legacy” on pages 88 to 90 and Climate and energy management" on page 98 to 104 of the Integrated Annual Report for
the 20-F 2025.
Electricity tariffs
As a major electricity consumer and mostly being supplied by Eskom, Harmony is exposed to significant additional costs
as a result of rising electricity tariffs. On 11 March 2025, Eskom officially announced a 12.7% tariff increase, which is effective
from 1 April 2025. The expected impact on fiscal 2026 is R1,050 million increase in operating costs for SA operations. Although
Eskom is showing signs of recovery in 2025, its structural challenges - especially municipal debt, tariff inadequacy and
governance issues suggest that financial instability could persist unless deeper reforms are implemented. This is likely to result
in further self-generation activity by Eskom's customers, which could further weaken Eskom. While the Multi Year Price
Determination ("MYPD'') provides a structured and predictable framework, external shocks and regulatory corrections can still
lead to unexpected price increases.
See Item 3: “Key Information - Risk Factors - Risks Related to Our Operations and Business - Disruptions to electricity
supply and rising power costs: Impact on operations and financial results".
Energy efficiency
Harmony has worked closely with Eskom to manage electricity use and peak demand, underlining our commitment to
reduce energy consumption. This includes demand-side management (“DSM”) strategies to reduce electricity consumption in
peak periods; timing the use of our services (pumping, hoisting, compressed air, refrigeration and ventilation) with cheaper off-
peak periods, making more efficient use of Eskom tariffs that reward load-shifting, and improving the efficiency of the services
provided for mining operations.
In 2016 Harmony contracted an ESCO to improve its energy management practices and aggressively mitigate the impact
of higher-than-inflation electricity price increases on its operational costs. Energy management assists in maintaining the
performance of implemented initiatives. This way Harmony focuses on continuously implementing new initiatives and
technologies, while eliminating the risk of forfeiting the benefit of completed projects. Our energy efficiency programme in South
Africa had achieved cumulative savings of 2.3 TWh, equating to almost R3 billion in avoided energy costs and 2.5 million tCO2e.
Harmony targets a 63% reduction in Scope 1 and 2 emissions by 2036 (SBTi) with a net-zero ambition by 2045. This pathway is
supported by energy efficiency initiatives and investment in renewable energy infrastructure.
We have implemented various energy efficiency projects in recent years. See , “– Environment stewardship – Building a
lasting positive legacy” on pages 88 to 90 and "Climate and energy management" on pages 98 to 104 of the Integrated Annual
Report for the 20-F 2025.
Climate Change, Environmental Factors and Carbon tax
Rising temperatures, changing rainfall patterns and severe weather conditions believed to be caused or exacerbated by
climate change remain growing concerns for businesses, investors, broader society and governments. This has led to increased
pressure on companies, including those in the mining sector, to reduce GHG emissions consistent with national commitments
made by numerous countries under the Paris Agreement, to promote responsible corporate practices and to increase
transparency about the risks and opportunities of transitioning to a low-carbon economy. Pressure from governments, investors
and broader society for mining companies to improve environmental stewardship and reduce GHG emissions, both in terms of
absolute emissions and in intensity of emissions per tonne mined, is likely to increase in the future.
On 1 June 2019 the Carbon Tax Act became effective. The carbon tax has been designed to fix liability on the person who
conducts an activity in South Africa that results in GHG emissions above a certain threshold. The carbon tax design requires the
calculation of liability to be based on the sum of GHG emissions, which result from fuel combustion, industrial processes and
fugitive emissions. Taxpayers must determine emissions in accordance with the reporting methodology approved by DFFE. The
tax will be phased in over time. The first phase, which was originally expected to end on 31 December 2022, has been extended
to 31 December 2025. This phase is designed to largely be revenue-neutral in terms of its aggregated impact, given the
complementary tax energy incentives and reduction or credit for the current electricity levy. Tax-free allowances will then change
and fall away with the basic tax-free allowance (60%) being reduced and is likely to fall away from 2026 to 2030. In phase 2 the
carbon offset allowance is due to increase by 5%, the trade exposure allowance from the current 10% and the carbon budget
allowance could fall away completely. See Item 3: “Key Information - Risk Factors - Risks Related to ESG - Compliance with
emerging climate change regulations could result in significant costs for us” and Item 4: "Information on the Company - Business
Overview - Regulation - Laws and Regulations Pertaining to Environmental Protection - South Africa”.
In 2022, the National Treasury announced an alternative increase structure which is expected to see the current carbon
price (US$9 per tonne) increase to US$20 per tonne by 2026, US$30 per tonne by 2030 and finally US$120 per tonne by 2050.
Based on published legislation, commentary and governmental information, management believes that the carbon tax
poses a low cost to Harmony until 31 December 2025. Gas emissions reported to the DFFE for a company’s National
Greenhouse Gas Emission Reporting submission will be taxed at a base value increasing from R236 to R308 per tonne of
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carbon dioxide equivalent (before allowances) making the effective tax R190 per tonne of carbon dioxide equivalent for years
2023 to 2025. From the second phase onwards, carbon tax might also affect the price of electricity. The impact of the carbon tax
on the Company arising from electricity usage after 31 December 2025 has been modelled to grow over time, as allowances are
anticipated to fall away. As a result, the annual carbon tax expense is anticipated to increase progressively from approximately
R450 million to R800 million per annum by the end of fiscal 2038.
Harmony has set its internal carbon price (for the South African operations) to match that of the proposed carbon tax.
Harmony is also at risk due to potential pass-through costs from its suppliers in the short term from increased fuel prices. The
carbon tax on liquid fuels will be imposed at the source. It is estimated that the increased fuel price would be R0.10/liter and
R0.09/liter for petrol and diesel respectively. This is expected to have an impact on the Company’s operational expenses.
Estimates are included in the LOM plans and resource base models used for impairment assessments and has affected
the forecast profitability of all operations, and in some cases, the impact is significant.
Various regulators have released guidance or proposed regulations for required disclosures during the year. In June 2023,
the International Sustainability Standards Board ("ISSB") issued its first two IFRS Sustainability Disclosure Standards, IFRS S1
General Requirements for Disclosure of Sustainability-related Financial Information and IFRS 2 Climate-related Disclosures.
IFRS S1 and IFRS S2 are effective for annual reporting periods beginning on or after 1 January 2024, therefore, these
standards are applicable to Harmony from fiscal 2025. The adoption of IFRS S1 and S2 is not mandatory, and entities can
choose to apply these standards on a voluntary basis. In March 2024, the SEC adopted the SEC Climate Disclosure Rules,
which would have required registrants to provide certain climate-related information in their registration statements and annual
reports. However, the SEC stayed the effectiveness of the SEC Climate Disclosure Rules in April 2024 and in March 2025
announced it was ending its defence of the rules in pending litigation, meaning it is uncertain if or when compliance will be
mandated.
See Item 3: "Key Information - Risk Factors - Risks Related to ESG - Compliance with emerging climate change
regulations could result in significant costs for us" for further discussion on the potential impact.
Production
The information set forth under the headings, “– Delivering profitable ounces – Performance by operation” on pages 46 to
84 of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
Results of Operations
Years Ended 30 June 2025 and 2024
Revenue
Revenue increased by R12,517 million to R73,896 million in fiscal 2025, compared to R61,379 million in fiscal 2024, mainly
due to the increase in the average US$ gold price received. Offsetting this increase was the impact of the strengthening of the
Rand/US$ exchange rate from an average of R18.70/US$ to R18.15/US$, as well as the decrease in gold sold (see discussion
below). The average gold price received (including hedging) increased by 27.3% from R1,201,653 per kilogram in fiscal 2024 to
R1,529,358 per kilogram in fiscal 2025.
Hedging losses increased by R3,329 million to R4,594 million in fiscal 2025, compared to R1,265 million in fiscal 2024.
This was mainly due to the realised effective portion of our hedge-accounted gold derivatives which was impacted by the
average gold market spot price of R1,644,902 per kilogram, compared to the average forward price of matured contracts of
R1,306,033 per kilogram in fiscal 2025. In fiscal 2024, the average gold market spot price was R1,249,344 per kilogram
compared to the average forward price of matured contracts of R1,134,735 per kilogram.
Overall gold sales decreased by 4.2% from 48,222kg in fiscal 2024 to 46,193kg. The details of these changes are
discussed below:
Tshepong South's gold sold decreased by 11.2% from 3,082 kilograms in fiscal 2024 to 2,737 kilograms in fiscal 2025. This
was mainly due to a 9.2% decrease in recovered grade in fiscal 2025 to 6.11g/t from 6.73g/t in fiscal 2024. This decline was
attributable to lower face grades and a reduction in plant call factor.
At Moab gold sold decreased by 7.1% from 6,650 kilograms in fiscal 2024 to 6,178 kilograms in fiscal 2025. This was as a
result of heightened seismicity in the middle mine and pre-emptively halting operations, for a limited time during the second
quarter, from a safety perspective in the top mine to allow for the removal of toxic gasses.
At Mine Waste Solutions gold sold decreased by 18.3% from 3,742 kilograms in fiscal 2024 to 3,057 kilograms in fiscal
2025. This was as a result of a 23.5% decrease in the recovered grade, from 0.17g/t in fiscal 2024 to 0.13g/t in fiscal 2025. The
lower grades were attributable to unusually high rainfall, which affected access to higher grade areas in the reclamation sites.
At Doornkop, gold sold decreased by 21.3% from 3,469 kilograms in fiscal 2024 to 2,730 kilograms in fiscal 2025 due to a
decrease in the recovered grade of 13.8% from 4.26g/t to 3.67g/t. The decrease was primarily due to mining of the high-grade
vent pillar being stopped. Ore milled decreased by 9.0% from 815,000 tonnes in fiscal 2024 to 742,000 tonnes in fiscal 2025.
This was as a result of operational mechanical challenges.
At Target 1, gold sold decreased by 23.7% from 1,854 kilograms in fiscal 2024 to 1,415 kilograms in fiscal 2025. This was
as a result of lower tonnes milled as well as a decline in grade of 11.7% from 4.02g/t in fiscal 2024 to 3.55g/t in fiscal 2025 due
to a delay in commissioning some of the higher-grade massives. Tonnes milled decreased by 15.4% from 462,000 tonnes in
fiscal 2024 to 391,000 tonnes in fiscal 2025.This reduction was caused by numerous flooding incidents that necessitated an
extensive infrastructure upgrade.
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The Mponeng mine sold 10,454 kilograms of gold, a 20.9% increase from the 8,648 kilograms sold in fiscal 2024, mainly
due to a significant increase of 13.4% in the recovered grade from 9.94g/t to 11.27g/t in fiscal 2025. This was as a result of the
operation mining high grade areas.
Export Sales
All of our gold produced in South Africa during fiscal 2023 to 2025 was refined by Rand Refinery Proprietary Limited
("Rand Refinery"). Rand Refinery is owned by a consortium of the major gold producers in South Africa and Harmony held a
10.4% interest at 30 June 2025. All of our gold and silver produced in PNG during fiscal 2023 to 2025 was sold to the Australian
Bullion Corporation.
Cost of sales
Cost of sales includes production costs, impairments, amortisation and depreciation and other items, including employment
termination and restructuring costs. Cost of sales increased by 5.1% from R47,233 million in fiscal 2024 to R49,635 million in
fiscal 2025. Factors affecting the increase are discussed below.
Production costs (cash costs/all-in sustaining costs)
The following table sets out, for our reportable segments, total kilograms produced and weighted average cash costs per
kilogram and total kilograms sold and weighted average all-in sustaining costs per kilogram for fiscal 2024 and fiscal 2025:
Year ended 30 June 2025 | Year ended 30 June 2024 | Percentage (increase)/ decrease | ||||||||
Cash costs | All-in sustaining costs | Cash costs | All-in sustaining costs | Cash costs per kg | All-in sustaini ng costs per kg | |||||
(kg Produ ced) | (R/kg) | (kg sold) | (R/kg) | (kg Produ ced) | (R/kg) | (kg sold) | (R/kg) | |||
South Africa | ||||||||||
Moab Khotsong ............. | 6,184 | 846,013 | 6,178 | 952,206 | 6,599 | 699,300 | 6,650 | 798,866 | (21.0) | (19.2) |
Mponeng......................... | 10,370 | 674,481 | 10,454 | 804,429 | 8,751 | 670,811 | 8,648 | 785,108 | (0.5) | (2.5) |
Tshepong North ............. | 2,900 | 1,075,014 | 2,905 | 1,305,365 | 3,248 | 884,464 | 3,196 | 1,078,897 | (21.5) | (21.0) |
Tshepong South ............ | 2,739 | 1,073,030 | 2,737 | 1,258,634 | 3,129 | 833,307 | 3,082 | 1,002,141 | (28.8) | (25.6) |
Doornkop ........................ | 2,720 | 1,162,651 | 2,730 | 1,440,880 | 3,470 | 880,229 | 3,469 | 1,031,845 | (32.1) | (39.6) |
Joel .................................. | 1,634 | 1,149,466 | 1,639 | 1,351,641 | 1,733 | 975,319 | 1,708 | 1,145,064 | (17.9) | (18.0) |
Target 1 ........................... | 1,387 | 1,808,182 | 1,415 | 2,203,514 | 1,859 | 1,266,487 | 1,854 | 1,558,946 | (42.8) | (41.3) |
Kusasalethu ................... | 3,629 | 1,092,265 | 3,658 | 1,256,873 | 3,842 | 965,284 | 3,795 | 1,058,639 | (13.2) | (18.7) |
Masimong ....................... | 1,478 | 1,334,765 | 1,483 | 1,455,114 | 1,780 | 1,057,287 | 1,756 | 1,121,951 | (26.2) | (29.7) |
MWS ............................... | 2,996 | 735,525 | 3,057 | 795,380 | 3,770 | 545,310 | 3,742 | 605,710 | (34.9) | (31.3) |
All other surface operations ....................... | 4,879 | 809,657 | 4,839 | 889,015 | 5,296 | 700,971 | 5,270 | 719,354 | (15.5) | (23.6) |
International | ||||||||||
Hidden Valley ................. | 5,107 | 458,928 | 5,098 | 868,228 | 5,101 | 477,360 | 5,052 | 814,375 | 3.9 | (6.6) |
Total kg ........................... | 46,023 | 46,193 | 48,578 | 48,222 | ||||||
Weighted average(1) ...... | 874,901 | 1,054,346 | 758,736 | 901,550 | (15.3) | (16.9) | ||||
1The offsetting of the by-product income for management's reporting purposes has the effect of decreasing the cash costs and the all-in
sustaining costs.
For further information about the use of non-GAAP measures, such as all-in sustaining costs, see “Reconciliation of Non-
GAAP Measures” below.
Our average cash costs increased by 15.3%, or R116,165 per kilogram, from R758,736 per kilogram in fiscal 2024 to
R874,901 per kilogram in fiscal 2025. Cash costs per kilogram vary with the working costs per tonne (which are, in turn, affected
by the number of tonnes processed) and grade of ore processed. Production costs increased by 10.9% from R38,923 million in
fiscal 2024 to R43,155 million in fiscal 2025, mainly due to inflationary pressures on costs including labour, contractors,
consumables and electricity. Additionally, the royalty expense increased due to a higher rate being applied as a result of higher
profits, as well as the increased revenue base to which it is applied.
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At Joel, all-in sustaining cost increased by 18.0% from R1,145,064 per kilogram in fiscal 2024 to R1,351,641 per kilogram
in fiscal 2025, mainly as a result of a 5.7% decrease in gold production to 1,634 kilograms from 1,733 kilograms. This was
driven by a decrease in tonnes treated, resulting from time lost due to a mud rush incident that severely impacted hoisting
operations.
At Moab, all-in sustaining cost increased by 19.2% from R798,866 per kilogram in fiscal 2024 to R952,206 per kilogram in
fiscal 2025, mainly as a result of an increase in production costs and a 6.3% decrease in gold production to 6,184 kilograms
from 6,599 kilograms. The production costs increase was mainly due to annual wage and electricity tariff increases as well as
inflationary increases on consumables and contractors. MPRDA royalties increased by 40% to R319 million due to higher
revenue and profitability.
At Kusasalethu, all-in sustaining cost increased by 18.7% from R1,058,639 per kilogram in fiscal 2024 to R1,256,873 per
kilogram in fiscal 2025, mainly as a result of a increase in production costs and a 5.5% decrease in gold production to 3,629
kilograms from 3,842 kilograms. The production costs increase was mainly due to annual wage and electricity tariff increases as
well as significantly higher MPRDA royalties.
At Tshepong North, all-in sustaining cost increased by 21.0% from R1,078,897 per kilogram in fiscal 2024 to R1,305,365
per kilogram in fiscal 2025, mainly due to the increase in production costs and decrease in gold production. The production
costs increase was mainly due to annual wage and electricity tariff increases as well as higher MPRDA royalties. Royalties
increased by 48.0% as revenue and profits increased. The decrease in gold production was driven by a 7.3% decrease in the
volumes of ore milled to 673 000 tonnes (2024: 726 000 tonnes).
At Tshepong South, all-in sustaining cost increased by 25.6% to R1,258,634 per kilogram in fiscal 2025, compared with
R1,002,141 per kilogram in fiscal 2024, mainly due to the increase in the production costs and lower gold production which
decreased from 3,129 kilograms in fiscal 2024 to 2,739 kilograms in fiscal 2025. Production was affected by lower face grades
as well as ore milled for the year decreasing to 448 000 tonnes (2024: 465 000 tonnes). Production costs increased mainly due
to annual wage and electricity tariff increases as well as an increase in the cost of consumables. Higher MPRDA royalties also
contributed to the increase in cost by 48% on higher revenue and profits.
At Masimong, all-in sustaining costs increased by 29.7% from R1,121,951 per kilogram in fiscal 2024 to R1,455,114 per
kilogram in fiscal 2025, mainly due to annual wage and electricity tariff increases. Further, this was impacted by a decrease in
gold production of 17.0% to 1,478 kilograms in fiscal 2025 from 1,780 kilograms in fiscal 2024 due to the lower tonnes milled as
a result of operational and hoisting challenges.
At MWS, all-in sustaining costs increased year on year by 31.3% from R605,710 per kilogram in fiscal 2024 to R795,380
per kilogram in fiscal 2025. This was mainly as a result of annual wage and electricity tariff increases as well as an increase in
water costs driven by additional charges from the Department of Water and Sanitation related to the pumping of water.
At Doornkop, all-in sustaining cost increased by 39.6% from R1,031,845 per kilogram in fiscal 2024 to R1,440,880 per
kilogram in fiscal 2025. This was mainly due to a significant decrease of 21.6% in gold production to 2,720 kilograms from
3,470 kilograms, driven by operational challenges. Lower grade also contributed as a result of mining of the high-grade vent
pillar being stopped in fiscal 2025.
At Target 1, all-in sustaining costs increased year on year by 41.3% from R1,558,946 per kilogram in fiscal 2024 to
R2,203,514 per kilogram in fiscal 2025. This was as a result of a decrease in gold production of 25.4% from 1,859 kilograms in
fiscal 2024 to 1,387 kilograms in fiscal 2025, mainly due to a decrease in tonnes milled as well as grade recovery resulting from
a delay in commissioning some of the higher-grade massives.
Amortisation and depreciation
Amortisation and depreciation increased from R4,642 million in fiscal 2024 to R4,842 million in fiscal 2025, primarily due to
higher production at Hidden Valley. Furthermore, assets brought into use on the completion of phase 1 of the Kareerand TSF
Extension project at Mine Waste Solutions also contributed to the increase. These increases were partially offset by a decrease
at Mponeng, which resulted from an increase in reserve tonnes used to calculate depreciation based on the units-of-production
method.
Impairment of assets
No impairment charge was recorded in fiscal 2025 for the operations identified for testing by the trigger assessment
including; Joel, Target 1, Masimong, Kusasalethu, Tshepong South and Kalgold. There was no reversal of impairments
previously recognised during fiscal 2025.
An impairment charge of R2,793 million was recorded in fiscal 2024. This was as a result of new preliminary Mineral
Resources estimates for the Target North project received during August 2024 by management after the completion of the
exploration drilling program. Additional drilling information and the application of modern industry best practice estimation
techniques indicated a decrease in the Mineral Resource estimate due to a better understanding of the geological complexity
and the application of constrained estimation domains. The Mineral Resource estimate used to determine the recoverable
amount of Target North changed from the previous estimate of 56.4 million resource ounces, consisting of 22 million Indicated
Resources and 34.4 million Inferred Resources, to the current Mineral Resource estimate of 13.8 million ounces of Inferred
Resources. The gold resource multiple price in US dollar terms was unchanged from previous assessments. Any reasonable
possible changes to the unobservable inputs of the Mineral Resource estimate for Target North would have resulted in
immaterial changes. There are no declared Mineral Resources attributable to Target North. The post-tax recoverable amount
was determined to be R888 million. See note 5(f) “Cost of Sales", to our consolidated financial statements set forth beginning on
page F-1.
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Share-based payments cost
Share-based payments costs increased in fiscal 2025 to R573 million (2024: R171 million). The increase was as a result of
the Katleho ya Moruo Employee Share Ownership Plan for non-managerial employees, which was costed from 1 April 2024
onwards, contributing an increase of R344 million. Additionally, there was a R58 million increase under the Management
Deferred Share Plan.
Income statement items other than revenue and cost of sales
Corporate, administration and other expenditure
Corporate, administration and other expenditure expenses increased to R1,647 million in fiscal 2025 from R1,294 million in
fiscal 2024 principally as a result of annual inflationary increases and higher annual incentives.
Gains/losses on derivatives
Losses on derivatives amounted to R59 million in fiscal 2025, compared to gains of R453 million in fiscal 2024. Gains/
losses on derivatives include the fair value movements of derivatives which have not been designated as hedging instruments
for hedge accounting purposes or where hedge accounting has been discontinued, the amortisation of day-one gains and
losses for derivatives and the hedging ineffectiveness. The day-one adjustment arises from the difference between the contract
price and market price on the day of the transaction. Potential sources of hedge ineffectiveness include counterparty and own
credit risk, day-one gains and losses, a mismatch in the timing of the derivative and underlying gold sale maturities, location
differential and the refining margin. Hedge ineffectiveness is measured by comparing the change in the expected cash flows
from a forward sale contract/zero cost collar contract versus the sale of an equivalent quantity of gold in the open market.
Ineffectiveness results when the changes in the fair values in the hedging instruments exceed the fair value changes in the
hedged item. Factors affecting gains/losses on derivatives are discussed below.
(a) Foreign exchange derivatives
Harmony maintains a foreign exchange derivative program in the form of zero cost collars, which establish a floor and cap
US$/Rand exchange rate at which to convert US dollars to Rand, and forward exchange contracts. As hedge accounting is not
applied, the resulting gains and losses have been recorded in the income statement. In fiscal 2025, a gain amounting to
R235 million (2024: R670 million) was recorded.
(b) US$ commodity contracts
Harmony maintains a derivative program for Hidden Valley by entering into commodity derivative contracts. The contracts
comprise US$ gold forward sale contracts, US$ gold zero cost collars and silver zero cost collars which establish a minimum
(floor) and maximum (cap) commodity sales price. Hedge accounting has been applied to all US$ gold contracts and these are
shown separately from the silver zero cost collars that are not hedge accounted. Losses of R506 million were recognised in
revenue for fiscal 2025 compared to R50 million in fiscal 2024. During fiscal 2025 and 2024 a negligible amount of hedge
ineffectiveness was experienced. The gains and losses for the silver zero cost collars are recorded in gains/(losses) on
derivatives in the income statement. In fiscal 2025, losses on derivative of R150 million were recorded in the income statement
compared to R98 million in fiscal 2024.
(c) Rand gold contracts
Harmony maintains a derivative programme for some of the South African companies by entering into commodity
derivative contracts. The contracts comprise forward sale contracts and zero cost collars. Hedge accounting is applied to these
contracts, resulting in the effective portion of the unrealised gains and losses being recorded in other comprehensive income
(other reserves). The contracts that matured realised losses of R1,215 million in fiscal 2024 compared to a loss of R4,088 million
in fiscal 2025, which has been included in revenue.
During fiscal 2025 and 2024 a negligible amount of hedge ineffectiveness was experienced.
Remeasurement of contingent consideration
The contingent consideration liability comprises of the contingent portion of consideration transferred for the acquisition of
the Mponeng operations and related assets and Eva Copper. The contingent consideration for Mponeng remeasurement for
both above and below infrastructure during fiscal 2025 amounted to R427 million and R291 million in fiscal 2024, mainly
reflecting the changes in the production profile.
The remeasurement of the contingent consideration for Eva Copper in fiscal 2025 amounted to R403 million and
R193 million in fiscal 2024. This increase was predominantly as a result of the declaration of additional Mineral Resources and
includes an amount of R264 million which is due in September 2025.
Other operating expenses
Other operating expenses increased to R346 million in fiscal 2025 from R195 million in fiscal 2024 principally as a result of
a change in assumptions of the silicosis settlement provision due to the potential preserved claims, which resulted in an
R2 million increase of the estimated obligation in fiscal 2025, compared to a R174 million credit in fiscal 2024. This was offset in
2025 due to the availability of actual exit data and an adjustment to the take-up rate.
Acquisition-related costs
The cost of R40 million in fiscal 2025 was incurred in anticipation of the acquisition of MAC. There were no acquisition
costs in fiscal 2024.
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Investment income
During fiscal 2025 investment income amounted to R1,504 million compared to R809 million in fiscal 2024. This was
mainly due to higher favourable cash balances during fiscal 2025 resulting in increased interest income earned.
Finance costs
During fiscal 2025 finance costs amounted to R698 million compared to R796 million in fiscal 2024. The decrease was
mainly as a result of lower aggregate borrowings due to repayments during fiscal 2024 and minimal drawdowns during fiscal
2025.
Income and mining taxes
In fiscal 2025 the tax rates for companies remained 33% for mining income and 27% for non-mining income. The income
tax rate remained 30% for Australian companies and PNG mining companies.
Harmony’s effective income and mining tax rates for fiscal 2024 and 2025 are presented in the table below:
Fiscal year ended 30 June | ||
Income and mining tax | 2025 | 2024 |
Effective income and mining tax rate ........................................................................................................ | 31% | 26% |
The effective tax rate for fiscal 2025 was lower than the mining statutory tax rate of 33% for Harmony and our subsidiaries
as a whole. This is mainly due to capital allowances and utilisation of deferred tax assets. Refer to note 11 "Taxation" to our
consolidated financial statements beginning on page F-1 for further detail.
During fiscal 2025 taxation amounted to R6,658 million, compared to R3,082 million in fiscal 2024, mainly attributable to
increased mining tax due to the higher gold price realised, resulting in a significant increase in our profitability during fiscal 2025.
The deferred tax movement was affected by changes in the life-of-mine rates (see below) as well as changes in the temporary
differences. These changes had the following impacts:
•Increase of temporary differences related to the carrying value of property, plant and equipment resulted in an increase of
R1,079 million in the deferred tax expense (2024: R510 million);
•Unwinding of temporary differences related to the utilisation of unredeemed capital expenditure and assessed loss
balances resulted in a increase of R167 million in the deferred tax expense (2024: R74 million) and R17 million
(2024: R120 million) in the deferred tax expense, respectively;
•The change in deferred tax rates of Mponeng from 8.1% to 17.2%, applied to balances excluding hedge accounted
derivatives, resulted in an increase in the deferred tax expense and liability to the amount of R329 million
(2024: R379 million decrease); and
•The change in deferred tax rates of the remaining legal entities in the group, applied to balances excluding hedge
accounted derivatives, resulted in an increase in the deferred tax expense and liability to the amount of R805 million
(2024: R239 million increase).
Deferred tax rates for the South African operations are calculated based on estimates of the future profitability of each ring-
fenced mine when temporary differences will reverse. The future profitability of each ring-fenced mine, in turn, is determined by
reference to the LOM plan for that operation, which is based on parameters such as the Group’s long-term view of the US$ gold
price and the Rand/US$ exchange rate, as well as the reserves declared for the operation. As some of these parameters are
based on market indicators, they differ from one year to the next. In addition, the reserves may also increase or decrease based
on updated or new geological information. Changes in the future profitability of each ring-fenced mine impact the deferred tax
rates used to recognise temporary differences at these operations. The movement in deferred tax on temporary differences due
to changes in estimated effective tax rates results primarily from the movement in the effective deferred tax rate at Harmony
(includes Masimong and Harmony's portion of the Doornkop Joint Venture (Harmony Company)), Freegold (includes Joel,
Tshepong North and Tshepong South), Moab Khotsong, Mponeng, Randfontein (includes Doornkop and Kusasalethu), Kalgold
and Chemwes (includes Mine Waste Solutions).
The deferred income tax rates changed significantly for the following entities:
Fiscal year ended 30 June | ||
Deferred tax rates | 2025 | 2024 |
Harmony Company | 20.8 | 26.4 |
Freegold (Harmony) Proprietary Limited ("Freegold") | 17.4 | 12.6 |
Harmony Moab Khotsong Operations Proprietary Limited ("Moab") | 21.2 | 19.0 |
Golden Core Trade and Invest Proprietary Limited ("Mponeng") | 17.2 | 8.1 |
Randfontein Estates Limited ("Randfontein") | 17.2 | 12.3 |
Kalahari Goldridge Mining Company Limited ("Kalgold") | 26.2 | 21.5 |
Chemwes Proprietary Limited ("Chemwes") | 26.3 | 18.1 |
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South Africa
Generally, South Africa imposes tax on worldwide income (including capital gains) of all our South African incorporated tax
resident entities at a rate of 27% (2024: 27%) on non-mining income. The South African entities pay taxes separately on mining
income and non-mining income. The amount of our South African mining income tax is calculated on the basis of a gold mining
formula that takes into account our total revenue and profits from, and capital expenditure for, mining operations in South Africa.
5% of total mining revenue is exempt from taxation in South Africa as a result of the application of the gold mining formula. The
amount of revenue subject to taxation is calculated by deducting qualifying capital expenditure from taxable mining income. The
amount by which taxable mining income exceeds 5% of mining revenue, constitutes taxable mining income. We and our
subsidiaries account for taxes separately that are determined in respect of each entity. Hence, South Africa does not apply any
Group basis of taxation.
Previously, Harmony was able to carry forward assessed losses indefinitely and offset the total accumulated balance
against taxable income in the relevant year of assessment.
However, this has been amended from fiscal year 2023 and remained unchanged in fiscal 2025. Assessed losses utilised
are limited to the higher of R1 million or 80% of taxable income, and the balance remaining will be carried forward to the
following year of assessment. This essentially results in a minimum taxable income of 20%. The restriction on utilising losses
has been made on the basis that the calculation of the assessed loss restriction must be determined before any capital
expenditure is deducted.
South Africa has a Controlled Foreign Company regime which effectively attributes certain types of passive income derived
by offshore subsidiaries and imputes that income in taxable income as if it had been derived in South Africa under South African
tax rules.
Australia
Generally, Australia also imposes tax on the worldwide income (including capital gains) of all of our Australian incorporated
and tax resident entities. The current income tax rate for companies is 30%.
HGA and its wholly-owned Australian subsidiary companies are recognised and taxed as a single entity, called a
consolidated Group. Under the Australian Tax Consolidation rules all of the Australian subsidiary companies are treated as
divisions of the Head Company, HGA. As a result, inter-company transactions between group members are generally ignored for
tax purposes. This allows the Group to transfer assets between group members without any tax consequences, and deems all
tax losses to have been incurred by HGA.
Papua New Guinea
PNG mining projects are taxed on a project basis. Therefore, each project is taxed as a separate entity, even though it may
be one of a number of projects carried on by the same company. Capital development and exploration expenditure incurred in
PNG is capitalised for tax purposes and can be deducted at 25% per annum on a diminishing value basis against project
income, with the deduction being limited to the lesser of 25% of the diminished value or the income of the project for the year.
PNG mining companies are taxed at a rate of tax of 30%. Mining operations in PNG are subject to a 2% royalty and 0.5%
Production Levy which are payable to the PNG Government.
Operating performance per Segment
For a further discussion on operating performance on a segment basis, refer to “– Delivering profitable ounces –
Performance by operation” on pages 46 to 84 of the Integrated Annual Report for the 20-F 2025. Also refer to note 39 “Segment
report” to our consolidated financial statements set forth beginning on page F-1.
Reconciliation of Non-GAAP Measures
The World Gold Council (“WGC”) published revised industry guidance in November 2018 on the calculation of “all-in
sustaining costs” and “all-in cost”. These measures were developed to create a better understanding of the overall costs
associated with producing gold. Although Harmony is not a member of the WGC, we disclose these measures. The all-in
sustaining cost measure is an extension of the cash cost measure (referenced below) and incorporates costs related to
sustaining production. We use adjusted free cash flow as a liquidity measure.
Cash costs, cash costs per ounce/kilogram, all-in sustaining costs, all-in sustaining costs per ounce/kilogram and adjusted
free cash flows are all non-GAAP measures. These measures should not be considered by investors in isolation or as an
alternative to production costs, cost of sales, cash generated by operating activities or any other measure of financial
performance or liquidity calculated in accordance with IFRS. The calculation of these measures may vary significantly among
gold mining companies and, by themselves, do not necessarily provide a basis for comparison with other gold mining
companies. Nevertheless, Harmony believes that the cost measures are useful indicators to investors and management as they
provide an indication of profitability and efficiency, the trend in costs as the mining operations mature over time on a consistent
basis and an internal benchmark of performance to allow for comparison against other mines, both within the Group and at other
gold mining companies. The cost metrics are also a measure of an operation's performance by comparison of cash costs per
ounce/kilogram to the spot price of gold.
The adjusted free cash flow non-GAAP measure indicates the net cash generation or utilisation after capital expenditure,
and how much cash is available for distribution or other investing activities. Harmony believes adjusted free cash flow is useful
to investors in understanding how existing cash from operations is utilised as a source for sustaining our current capital plan and
future development growth. Adjusted free cash flow is not a measure of cash available for discretionary expenditures, since
Harmony has certain non-discretionary obligations such as the principal portion of debt obligations that are not deducted from
this measure.
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Our cash costs consist primarily of production costs and are expensed as incurred. The cash costs are incurred to access
ore to produce current mined reserves. Cash costs do not include capital development costs, which are incurred to allow access
to the orebody for future mining operations and are capitalised and amortised when the relevant reserves are mined.
Total cash costs include mine production costs, transport and refinery costs, applicable general and administrative costs,
ore stockpiles, as well as ongoing environmental rehabilitation costs, transfers for stripping activities and costs associated with
royalties. Employee termination costs are included, however employee termination costs associated with major restructuring and
shaft closures are excluded. The costs associated with movements in production inventories are excluded from total cash costs.
Gold ounces/kilograms produced are used as the denominator in the total cash costs per ounce/kilogram calculation.
All-in sustaining costs include mine production costs, transport and refinery costs, applicable general and administrative
costs, costs associated with movements in production inventories, ore stockpiles, as well as ongoing environmental
rehabilitation costs, transfers for stripping activities and costs associated with royalties. Employee termination costs are
included, however employee termination costs associated with major restructuring and shaft closures are excluded. The
following costs are also included: local economic development (“LED”) expenditure for continuing operations, corporate costs,
sustaining exploration costs and sustaining capital expenditure including ongoing capital development (“OCD”) expenditure and
rehabilitation accretion and amortisation for continuing operations. Gold ounces/kilograms sold are used as the denominator in
the all-in sustaining costs per ounce/kilogram calculation. Depreciation costs are excluded.
Adjusted free cash flow is determined as cash generated by operating activities after deducting capital expenditure and
adjusting the effects of once-off transactions (acquisition costs).
Changes in all-in sustaining costs per ounce/kilogram and cash costs per ounce/kilogram are affected by operational
performance. In US dollar terms, these measures are also affected by the changes in the currency exchange rate between the
Rand and the US dollar and, in the case of the PNG operations, the Kina.
While recognising the importance of reducing all-in sustaining costs and cash costs, our chief focus is on controlling and,
where possible, reducing total costs, including overhead costs. We aim to control total unit costs per ounce/kilogram produced
by maintaining our low total cost structure at our existing operations. We have been able to reduce total costs by implementing a
management structure and philosophy that is focused on reducing management and administrative costs.
The following is a reconciliation of total all-in sustaining costs, as a non-GAAP measure, to the nearest comparable GAAP
measure, cost of sales under IFRS:
Fiscal year ended 30 June | ||
2025 | 2024 | |
(in R millions, except for ounce/ kilogram amounts) | ||
Cost of sales ....................................................................................................................................... | 49,635 | 47,233 |
Amortisation and depreciation ......................................................................................................... | (4,842) | (4,642) |
Rehabilitation expenditure ................................................................................................................ | (142) | (3) |
Care and maintenance costs of restructured shafts ..................................................................... | (380) | (246) |
Employment termination and restructuring costs .......................................................................... | (200) | (86) |
Share-based payments ..................................................................................................................... | (573) | (171) |
Impairment of assets ......................................................................................................................... | — | (2,793) |
Toll treatment costs ............................................................................................................................ | (368) | (420) |
By-products credits ............................................................................................................................ | (2,631) | (2,533) |
Stripping activities .............................................................................................................................. | 730 | 892 |
Local economic development expenditure .................................................................................... | 139 | 165 |
Corporate, administration and other expenditure costs ............................................................... | 1,238 | 1,140 |
Capital expenditure (OCD) ............................................................................................................... | 2,741 | 2,547 |
Capital expenditure (exploration, abnormal expenditure and shaft capital) ............................. | 2,821 | 1,895 |
Other .................................................................................................................................................... | 536 | 496 |
Total all-in sustaining costs ............................................................................................................... | 48,704 | 43,474 |
Per kilogram calculation: | ||
Kilogram sold ...................................................................................................................................... | 46,193 | 48,222 |
Total all-in sustaining costs per kilogram ........................................................................................ | 1,054,346 | 901,550 |
Total all-in sustaining costs (US$ million) ....................................................................................... | 2,683 | 2,325 |
Per ounce calculation: | ||
Ounces sold ........................................................................................................................................ | 1,485,136 | 1,550,373 |
Total all-in sustaining costs per ounce ............................................................................................ | 1,806 | 1,500 |
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The following is a reconciliation of total cash costs, as a non-GAAP measure, to the nearest comparable GAAP measure,
cost of sales under IFRS:
Fiscal year ended 30 June | ||
2025 | 2024 | |
(in R millions, except for ounce/ kilogram amounts) | ||
Cost of sales ....................................................................................................................................... | 49,635 | 47,233 |
Amortisation and depreciation ......................................................................................................... | (4,842) | (4,642) |
Rehabilitation expenditure ................................................................................................................ | (142) | (3) |
Care and maintenance costs of restructured shafts ..................................................................... | (380) | (246) |
Employment termination and restructuring costs .......................................................................... | (200) | (86) |
Share-based payments ..................................................................................................................... | (573) | (171) |
Impairment of assets ......................................................................................................................... | — | (2,793) |
By-product credits .............................................................................................................................. | (2,631) | (2,533) |
Gold and uranium inventory movement ......................................................................................... | (258) | 468 |
Other .................................................................................................................................................... | (343) | (369) |
Total cash costs .................................................................................................................................. | 40,266 | 36,858 |
Per kilogram calculation: | ||
Kilograms produced ........................................................................................................................... | 46,023 | 48,578 |
Total cash costs per kilogram ........................................................................................................... | 874,901 | 758,736 |
Total cash costs (US$) ...................................................................................................................... | 2,219 | 1,971 |
Per ounce calculation: Ounces produced ............................................................................................................................... | 1,479,671 | 1,561,815 |
Total cash costs per ounce ............................................................................................................... | 1,499 | 1,262 |
The following is a reconciliation of total adjusted free cash flows, as a non-GAAP measure, to the nearest comparable
GAAP measure, cash generated by operating activities, under IFRS:
Fiscal year ended 30 June | ||
2025 | 2024 | |
(in R millions) | ||
Cash generated by operating activities .......................................................................................... | 22,647 | 15,650 |
Additions to property, plant and equipment ................................................................................... | (11,855) | (8,398) |
Post retirement obligation settlement ............................................................................................. | 350 | — |
Total adjusted free cash flows .......................................................................................................... | 11,142 | 7,252 |
Within this report, our discussion and analysis is focused on the all-in sustaining costs, total cash costs and adjusted free
cash flows measure.
B. LIQUIDITY AND CAPITAL RESOURCES
We centrally manage our funding and treasury policies. There are no legal or economic restrictions on the ability of our
subsidiaries to transfer funds to us. We have generally funded our operations and our short-term and long-term liquidity
requirements from: (i) cash generated from operations; (ii) credit facilities and other borrowings and (iii) sales of equity
securities.
Harmony intends to finance its capital expenditure, other purchase obligations and debt repayment requirements in 2026
from cash on hand, cash flow from operations, and existing credit facilities.
Fiscal year ended 30 June | ||
2025 | 2024 | |
(in R millions) | ||
Operating cash flows ......................................................................................................................... | 22,647 | 15,650 |
Investing cash flows .......................................................................................................................... | (11,955) | (8,361) |
Financing cash flows ......................................................................................................................... | (2,215) | (5,435) |
Foreign exchange differences .......................................................................................................... | (69) | (28) |
Total cash flows .................................................................................................................................. | 8,408 | 1,826 |
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Cash flows from operating activities
Net cash provided by operations is primarily affected by the quantities of gold sold, the gold price, the Rand/US$ exchange
rate, cash costs per ounce and, in the case of the international operations, the Australian dollar and PNG Kina versus US dollar
exchange rate. A significant adverse change in one or more of these parameters could materially reduce cash provided by
operations as a source of liquidity.
Net cash generated by operations increased from R15,650 million in fiscal 2024 to R22,647 million in fiscal 2025. This
increase is mainly due to higher revenue generated through the year as a result of higher gold prices received. The increase
was slightly offset by the increase in production costs.
Income and mining tax paid in fiscal 2025 amounted to R4,289 million, and R2,388 million in fiscal 2024.
Cash flows from investing activities
Net cash utilised by investing activities increased from R8,361 million in fiscal 2024 to R11,955 million in fiscal 2025. The
increase of R3,594 million was primarily due to additions to property, plant and equipment relating to the projects at Moab and
Mponeng.
Cash flows from financing activities
Financing activities utilised R5,435 million in fiscal 2024, compared to R2,215 million in fiscal 2025. This was primarily due
to substantial repayments of borrowings in 2024, compared to significantly decreased repayments in 2025.
In fiscal 2025, borrowings repaid amounted to R50 million compared to repayments of R4,047 million made during fiscal
2024. The drawdowns made during fiscal 2025 exceeded the repayments, resulting in a net inflow on the borrowings of
R176 million compared to the outflow of R3,747 million in fiscal 2024.
In fiscal 2025, a total dividend of R2,100 million (2024: R1,437 million) was paid mainly reflecting the final dividend of 94
SA cents per share for the 2024 year, amounting to R596 million paid on 14 October 2024 (2024: 75 SA cents per share
amounting to R464 million on 16 October 2023) and the interim ordinary dividend of 227 SA cents per share for the 2025 year,
amounting to R1,442 million paid on 14 April 2025 (2024: 147 SA cents per share amounting to R930 million paid on 15 April
2024).
See note 30 “Borrowings", note 32 “Cash Generated by Operations” and note 38 "Subsequent events" to our consolidated
financial statements set forth beginning on page F-1.
Outstanding Credit Facilities and Other Borrowings
R1.5 Billion Green Term Loan
On 25 May 2022 Harmony concluded a R1.5 billion six- and a- half-year term green loan facility with a syndicate of banks
led by ABSA Bank Limited and Nedbank Limited (the "R1.5 Billion Green Term Loan"). The terms of the R1.5 Billion Green
Term Loan provide that amounts borrowed may be used in respect of eligible green projects, which relate to the construction,
development, acquisition, maintenance, and/or operation of renewable energy installations.
The R1.5 Billion Green Term Loan became available in four quarterly increments of R375 million starting in
November 2022.
At 30 June 2025, R226 million was drawn down, R50 million was repaid. No additional amount of the facility was available
for draw down.
The key terms of the R1.5 Billion Green Term Loan are:
Term facility:R1.5 billion
Margin:2.65% over 3-month Johannesburg Interbank Average Rate ("JIBAR")
Maturity:Six and a half years (November 2028)
Security:Unsecured
R2.5 Billion Syndicated Revolving Credit Facility
On 25 May 2022 Harmony concluded a R2.5 billion sustainability-linked revolving credit facility with a syndicate of banks
led by ABSA Bank Limited and Nedbank Limited (the “R2.5 Billion Syndicated Revolving Credit Facility”). Under the terms of
the R2.5 Billion Syndicated Revolving Credit Facility all amounts borrowed must be used (i) in repayment of the R2 billion four-
year syndicated term loan and revolving credit facility and (ii) for ongoing general corporate costs, working costs and working
capital requirements of the Group. In March 2024 a 12-month extension to the maturity date was granted to May 2027.
At 30 June 2025, no draw down or repayment was made and the full amount on the R2.5 Billion Syndicated Revolving
Credit Facility was available.
The key terms of the R2.5 Billion Syndicated Revolving Credit Facility are:
Revolving facility:R2.5 billion
Margin on revolving facility:2.4% over 3-month JIBAR
Maturity:Five years (May 2027)
Security:Unsecured
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US$400 Million Syndicated Facility
On 25 May 2022 Harmony and a syndicate of local and international lenders, which was jointly arranged by Nedbank
Limited and ABSA Bank Limited, concluded a US$400 million sustainability-linked syndicated term loan facility
(the “US$400 Million Syndicated Facility”) comprising a US$100 million term facility and a US$300 million revolving credit
facility.
The US$400 Million Syndicated Facility is a sustainability-linked facility. Sustainability-linked metrics have been included
into the agreement which would result in specific increases/decreases in the interest rate charged to the facility. During
March 2024 a 12-month extension to the maturity date was granted to May 2027. During fiscal 2025, no repayment was made.
At 30 June 2025, no drawdown or repayment was made under the US$400 Million Syndicated Facility and US$300 million
was available.
The key terms of the US$400 Million Syndicated Facility are:
Term facility:US$100 million
Revolving facility:US$300 million
Margin on term facility:2.85% over Secured Overnight Financing Rate (''SOFR'')
Margin on revolving facility:2.70% over SOFR
Maturity:Five years
Security:Unsecured
US$1.25 Billion Bridge Facility
On 26 June 2025, Harmony and its wholly owned subsidiary HGA entered into a US$1.25 billion bridge facility agreement
with a syndicate of lenders (the "US$1.25 Billion Bridge Facility") to finance the acquisition of MAC and related costs. The
US$1.25 Billion Bridge Facility agreement comprises of a US$250 million term facility and a US$1 billion term facility. No
amounts were drawn down under the US$1.25 Billion Bridge Facility as at 30 June 2025.
Origination fees of R197 million were incurred for the facility. These origination fees have been deferred and will be treated
as a transaction cost when the first drawdown of the facility occurs.
The key terms of the US$1.25 Billion Bridge Facility are:
Margin on facility:2.0% over SOFR first 6 months starting 26 May 2025
2.8% over SOFR next 6 months starting 26 November 2025
4.0% over SOFR last 6 months starting 26 May 2026
Maturity:364 days (June 2026) with a 6 month extension option
Security:Unsecured
The R2.5 Billion Syndicated Revolving Credit Facility and the US$400 Million Syndicated Facility are both sustainability-
linked facilities. These facilities are linked to certain key performance indicators ("ESG KPIs") which were measured annually
over the past three years and resulted in changes to the interest rate margins. The rate was adjusted annually by one basis
point for each metric achieved (decrease) or not achieved (increase), with these adjustments being cumulative over the three-
year measuring period. The adjustments to interest rate margins for each financial year's ESG performance would impact the
following financial year. The respective ESG KPIs was as follows:
KPI | Unit of Measurement | Scope | Sustainability performance targets | |
Fiscal 2024 Targets | Fiscal 2025 Targets | |||
Greenhouse gas emissions | Thousand tonnes of Scope 1 and Scope 2 CO2e emissions | All operations | 4,279 | 4,074 |
Renewable Energy | Renewable energy consumption as % of total electricity consumed | SA operations | 8% | 20% |
Water consumption | Potable water consumed (Mℓ) | SA operations | 19,833 | 19,436 |
Depending on Harmony's performance in relation to these ESG KPIs, the potential change in interest rate margin is as
follows:
Cumulative benefit/penalty for each financial year (basis points) | Fiscal 2024 | Fiscal 2025 |
KPI | ||
Greenhouse gas emissions | 2 | 3 |
Renewable Energy | 2 | 3 |
Water consumption | 2 | 3 |
We need to comply with certain debt covenants for the US$400 Million Syndicated Facility, the R2.5 Billion Syndicated
Revolving Credit Facility and the R1.5 Billion Green Term Loan.
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The debt covenant tests are as follows:
The Group’s interest cover ratio shall be more than five times (EBITDA1/Total interest paid).
Leverage2 shall not be more than 2.5 times.
1Earnings before interest, taxes, depreciation and amortisation (EBITDA), as defined in the agreement excludes extraordinary items such
as impairment and restructuring cost and gains/losses on disposal of fixed assets.
2Leverage is defined as total net debt to EBITDA.
Debt covenants tests were performed for the loan facilities for both fiscal 2025 and 2024 and no breaches were noted. For
fiscal 2025, the Group's interest cover ratio was 97.3 times (2024: 44.1 times), while the Group's leverage was negative 0.4
(2024: 0.2). 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.
Current borrowings
Current borrowings at 30 June 2025 consist of R59 million (2024: R9 million) accrued interest on the US$400 Million
Syndicated Facility and repayments on the R1.5 Billion Green Term Loan.
Non-current borrowings
At 30 June 2025 the total non-current borrowings amount to R1,894 million (2024: R1,785 million) of which R1,770 million
relates to the US$100 million term facility under the US$400 Million Syndicated Facility and R124 million to the R1.5 Billion
Green Term Loan.
Capital Expenditure
Total budgeted capital expenditures for fiscal 2026, excluding the capital outlay for renewable projects, are R12,927 million.
See Item 4: “Information on the Company - Business Overview - Capital Expenditures” for details regarding the budgeted capital
expenditures for each operation. We currently expect that our planned operating capital expenditures will be financed from
operations, including the use of our current facilities, as described in “- Outstanding Credit Facilities and Other Borrowings”
above, and new borrowings as needed.
The following table sets forth our authorised capital expenditure as of 30 June 2025:
R’millions | |
Authorised and contracted for1 ............................................................................................................................................... | 4,329 |
Authorised but not yet contracted for .................................................................................................................................... | 18,462 |
Total ........................................................................................................................................................................................... | 22,791 |
1Including our share of the capital expenditure amounting to R13 million for the joint operation in PNG.
Total capital expenditure was R11,855 million in 2025, compared to R8,398 million in 2024. This represents a
R3,457 million increase from 2024. This increase was driven mainly by the extension projects at Moab Khotsong and Mponeng,
the 100MW renewable energy project at Moab Khotsong and the Mine Waste Solutions Kareerand TSF extension.
Working Capital and Anticipated Financing Needs
The board believes that our working capital resources, by way of cash generated from operations, borrowings and existing
cash on hand, are sufficient to meet our present working capital needs. The South African and PNG operations are generally
expected to fund their capital internally, and likely also fund the development of the Eva Copper Project in Australia. The
acquisition of MAC will be funded by the US$1.25 Billion Bridge Facility. We intend to refinance the US$1.25 Billion Bridge
Facility through a mix of existing cash, debt and/or debt-like instruments and maintain an optimal capital structure. For more
information on our planned capital expenditures, see “-Capital Expenditure” above. Also see Item 3: “Key Information - Risk
Factors - Risks Related to Our Operations and Business - Our operations have limited proved and probable reserves;
exploration for additional resources and reserves is speculative in nature, may be unsuccessful and involves many risks”.
Our board believes that we will have access to adequate financing on reasonable terms given our cash-based operations
and modest leverage expected, even after the conclusion of the MAC acquisition. Our ability to generate cash from operations
could, however, be materially adversely affected by increases in cash costs, decreases in production, decreases in the price of
gold and appreciation of the Rand and other non-US dollar currencies against the US dollar. In addition, while exchange controls
were relaxed some years ago, South African companies remain subject to restrictions on their ability to deploy capital outside of
the Southern African Common Monetary Area, which may impair our ability to fund overseas operations or guarantee credit
facilities entered into by overseas subsidiaries. See Item 10: “Additional Information - Exchange Controls”.
The information set forth under the heading: “– Delivering profitable ounces – Performance by operation” on pages 46 to
84 of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference. See also note 30 “Borrowings”, note
36 “Commitments and contingencies” and note 32 “Cash generated by operations” to our consolidated financial statements set
forth beginning on page F-1.
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Contractual obligations and contingencies
Our contractual obligations and commercial commitments consist primarily of credit facilities and environmental
obligations.
The following table summarises our contractual obligations as of 30 June 2025:
Payments Due by Period | |||||
Total | Less Than 12 Months 1 July 2025 to 30 June 2026 | 12-36 Months 1 July 2026 to 30 June 2028 | 36-60 Months 1 July 2028 To 30 June 2030 | After 60 Months Subsequent 30 June 2030 | |
(R’millions) | (R’millions) | (R’millions) | (R’millions) | (R’millions) | |
Bank facilities1 ......................................................... | 2,224 | 192 | 2,006 | 26 | — |
Environmental obligations2 ................................... | 9,055 | — | — | — | 9,055 |
Silicosis settlement obligation3 ............................. | 261 | — | 86 | 132 | 43 |
Contingent consideration4 ..................................... | 2,631 | 492 | 178 | 793 | 1,168 |
Total contractual obligations ............................ | 14,171 | 684 | 2,270 | 951 | 10,266 |
1See “- Liquidity and Capital Resources - Outstanding Credit Facilities and Other Borrowings” above. The amounts include the interest payable
over the terms of the facilities. Where a variable rate is applicable, the rate at the reporting date has been used for the future periods.
2We make provision for environmental rehabilitation costs and related liabilities based on management’s interpretations of current
environmental and regulatory requirements. See note 24 “Provision for environmental rehabilitation” to our consolidated financial statements
set forth beginning on page F-1.
3This liability relates to potential cost of settling the silicosis and TB class actions that were instituted against the Group in South Africa. See
Item 3: “Key Information - Risk Factors - Risks Related to ESG - The cost of occupational health care services and the potential liabilities
related to occupational health diseases may increase in future and may be substantial” and note 25 “Other provisions” to our consolidated
financial statements set forth beginning on page F-1.
4The liability was included as part of the consideration transferred for the acquisition of the Mponeng operations and related assets and Eva
Copper. See note 27 "Contingent consideration" to our consolidated financial statements set forth beginning on page F-1.
Commercial Commitments
The following table provides details regarding our commercial commitments as of 30 June 2025:
Amount of Commitments Expiring by Period | |||||
Total | Less Than 12 Months 1 July 2025 to 30 June 2026 | 12-36 Months 1 July 2026 to 30 June 2028 | 36-60 Months 1 July 2028 To 30 June 2030 | After 60 Months Subsequent 30 June 2030 | |
(R’millions) | (R’million) | (R’million) | (R’million) | (R’millions) | |
Guarantees1 ........................................................ | 1,296 | — | — | — | 1,296 |
Capital commitments2 ....................................... | 4,329 | 4,329 | — | — | — |
Total commitments expiring by period ...... | 5,625 | 4,329 | — | — | 1,296 |
1R539 million of these guarantees relate to our environmental and rehabilitation obligations.
2Capital commitments consist only of amounts committed to external suppliers, although a total of R22,791 million has been approved by the
board for capital expenditures for the next three years.
See note 36 “Commitments and contingencies” to our consolidated financial statements set forth beginning on page F-1.
Off-balance Sheet Arrangements
The Group does not have any off-balance sheet arrangements, as defined by the SEC for the purposes of the Form 20-F,
that have or are reasonably likely to have a material current or future effect on the Group’s financial position or results of
operations.
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Recent Developments
See Item 4: “Information on the Company - History and Development of the Company - Recent Developments -
Developments since 30 June 2025”.
Related Party Transactions
For a detailed discussion of related party transactions, see Item 7: "Related Party Transactions”.
Recent Accounting Pronouncements
Recently adopted accounting policies, as well as recent accounting pronouncements with the potential for impact on the
consolidated financial statements, are described in note 2 “Accounting policies” to our consolidated financial statements set forth
beginning on page F-1.
Accounting Policies
Harmony’s accounting policies are described in note 2 “Accounting policies” to our consolidated financial statements set
forth beginning on page F-1.
Use of Estimates and Making of Assumptions
The preparation of the financial statements in conformity with IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Some of our accounting policies require the application of significant judgment and
estimates by management in selecting the appropriate assumptions for calculating financial estimates. By their nature, these
judgments are subject to an inherent degree of uncertainty and are based on our historical experience, terms of existing
contracts, management’s view on trends in the gold mining industry and information from outside sources.
Our critical accounting estimates and judgments are described in more detail in note 3 “Critical accounting estimates and
judgments”, to our consolidated financial statements set forth beginning on page F-1. This discussion and analysis should be
read in conjunction with such consolidated financial statements and the relevant notes.
C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.
Not applicable.
D. TREND INFORMATION
The information set forth under the heading: “– Delivering profitable ounces - Performance by operation” on pages 46 to 84
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands,
commitments or events for the year ended 30 June 2025 that are reasonably likely to have a material and adverse effect on our
net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not
necessarily indicative of future results of operations or financial conditions.
E. CRITICAL ACCOUNTING ESTIMATES
Not applicable
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A. DIRECTORS AND SENIOR MANAGEMENT
The information set forth under the heading:
•“– Harmony – Our leadership” on pages 6 to 7.
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
B. COMPENSATION
The information set forth under the heading:
•“– Governance – Remuneration report” on pages 202 to 220
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
C. BOARD PRACTICES
The information set forth under the headings:
•“– Governance – Ethical leadership and sound corporate governance” on pages 186 to 196;
•“– Governance – Board committees” on pages 197 to 201
•“– Governance – Remuneration report” on pages 202 to 220 and
•“– Governance – Audit and risk committee: chairperson’s report” on pages 221 to 224.
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
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D. EMPLOYEES
The information set forth under the heading:
•“– Social stewardship – An engaged workforce” on pages 154 to 165
of the Integrated Annual Report for the 20-F 2025 is incorporated herein by reference.
E. SHARE OWNERSHIP
See note 35 “Related Parties” of our consolidated financial statements, set forth beginning on page F-1.
F. DISCLOSURE OF A REGISTRANT'S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION
Not applicable.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. MAJOR SHAREHOLDERS
We are an independent gold producer, with no single shareholder exercising control. As of 24 October 2025 our issued
share capital consisted of 636 798 966 ordinary shares. To our knowledge, (a) we are not directly or indirectly owned or
controlled: (i) by another corporation; or (ii) by any foreign government, and (b) there are no arrangements (including any
announced or expected takeover bid), the operation of which may at a subsequent date result in a change in our control.
The voting rights of our major shareholders do not differ from the voting rights of other holders of the same class of shares.
A list of the beneficial holders that hold 5% or more of our securities as at 30 June 2025 is set forth below:
Holder | Number of shares | Percentage |
Public Investment Corporation of South Africa ....................................................................... | 100,527,434 | 15.84% |
African Rainbow Minerals Limited1 ........................................................................................... | 67,665,545 | 10.66% |
Van Eck Associates Corporation ............................................................................................... | 54,647,079 | 8.61% |
BlackRock Inc ............................................................................................................................... | 34,853,391 | 5.49% |
1 Patrice Motsepe, our Chairman, has an indirect holding in African Rainbow Minerals Limited.
The table below shows the significant changes in the percentage ownership held by major shareholders, to the knowledge
of Harmony's management, during the past three years.
Beneficial ownership as at 30 June 2025 | |||
2025 | 2024 | 2023 | |
% | % | % | |
Public Investment Corporation of South Africa ................................................... | 15.84 | 14.72 | 12.68 |
African Rainbow Minerals Limited ......................................................................... | 10.66 | 11.80 | 12.08 |
Van Eck Associates Corporation ........................................................................... | 8.61 | 11.92 | 9.53 |
BlackRock Inc ........................................................................................................... | 5.49 | 4.08 | 4.69 |
B. RELATED PARTY TRANSACTIONS
Between 1 July 2024 and 30 June 2025, none of the directors or major shareholders of Harmony or, to the knowledge of
Harmony, their families, had an interest, directly or indirectly, in any transaction or in any proposed transaction that has affected
or will materially affect Harmony or its subsidiaries, other than as stated in note 35 “Related Parties” of our consolidated financial
statements, set forth beginning on page F-1. Also see note 16 (b) “Other non-current assets”, note 19 “Investments in
associates” and note 20 “Investment in joint operations” of our consolidated financial statements, set forth beginning on page
F-1.
C. INTERESTS OF EXPERTS AND COUNSEL
Not applicable.
ITEM 8. FINANCIAL INFORMATION
A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
Please refer to Item 18: "Financial Statements". For a discussion of our export sales, see Item 5: "Operating and Financial
Review and Prospects”.
Legal Proceedings
None of our properties is the subject of pending material legal proceedings. We have been involved in a number of claims
and legal and arbitration proceedings incidental to the normal conduct of our business, such as the ones described below.
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Provision for silicosis settlement
At 30 June 2025 and 30 June 2024 a provision of R261 million and R255 million respectively was recognised for
Harmony’s potential cost to settle the silicosis and TB class actions that have been instituted against it in South Africa. The
increase in fiscal 2025 is due to the time value of money accretion (R21 million) and a change in estimate (R2 million). The
increase was partially offset by payments of R17 million which were made to the trust overseeing the processing and payment of
claims during the year.
The provision recorded in the financial statements is subject to adjustment or reversal in the future, depending on a
number of factors, including changes in benefit take-up.
See Item 3: “Key Information - Risk Factors - Risks related to ESG - The cost of occupational health care services and the
potential liabilities related to occupational health diseases may increase in future and may be substantial” and to note 25 “Other
Provisions - Provision for silicosis settlement” of our consolidated financial statements set forth beginning on page F-1.
Dividend Policy
Dividends are proposed by and approved by our board of directors based on our financial performance and compliance
with applicable laws, including in respect of the solvency and liquidity test contemplated in the Companies Act. Dividends are
recognised when declared by the board. Our board may exercise its discretion on an annual basis, taking into consideration the
prevailing market conditions, balance sheet flexibility and future capital commitments of the Group. Our dividend policy is to pay
a return of 20% on net free cash generated to shareholders. Under South African law, we may declare and pay dividends from
any reserves included in total shareholder’s equity (including share capital and share premium) calculated in accordance with
IFRS, subject to the solvency and liquidity test.
See Item 3: “Key Information – Risk Factors – Risks Related to Our Corporate and Financing Structure and Strategy – We
may not pay dividends or make similar payments to our shareholders in the future” and “– Market Risks – Fluctuations in the
exchange rate of currencies may reduce the market value of our securities, as well as the market value of any dividends or
distributions paid by us”. Also see Item 10: “Additional Information – Exchange Controls – Introduction”, "– Exchange Controls –
Government Regulatory Considerations – Dividends”, “– Taxation - Certain South African Tax Considerations – Dividends” and
“– Certain Material United States Federal Income Tax Considerations – Taxation of Dividends”.
B. SIGNIFICANT CHANGES
See Item 4: “Information on the Company - History and Development of the Company - Recent Developments -
Developments since 30 June 2025.”
ITEM 9 THE OFFER AND LISTING
A. OFFER AND LISTING DETAILS
The principal trading market for our ordinary shares is the JSE, where they trade under the symbol "HAR". Our ordinary
shares trade on the New York Stock Exchange Inc. ("NYSE") in the form of ADSs, under the symbol "HMY".
B. PLAN OF DISTRIBUTION
Not applicable.
C. MARKETS
The Securities Exchange in South Africa
The JSE is the premier stock exchange in Africa and is based in South Africa where it has operated as a marketplace for
the trading of financial products for over 130 years.
The JSE connects buyers and sellers in a variety of financial markets that include equities and equity derivatives,
commodity derivatives, currency derivatives and interest rate instruments. It is one of the top 20 exchanges in the world in terms
of market capitalisation and a member of the World Federation of Exchanges.
The market capitalisation of the JSE equities index (FTSE/JSE Africa All Shares Index) was R7,188 billion (US$404 billion)
at 30 June 2025. The JSE mining index (FTSE/JSE Precious Metals and Mining Index) market capitalisation was R1,194 billion
(US$67 billion)1 at 30 June 2025, 16.6% of the overall JSE market capitalisation.
1 Source: JP Morgan
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Strate Settlement
Under Strate Pty Limited, South Africa’s Central Securities Depository (“CSD”), there are essentially two types of clients:
controlled and non-controlled. A controlled client is one who elects to keep his shares and cash with his broker and these shares
are held in custody at the broker’s chosen Custodian Bank, the CSD Participant (“CSDP”). A non-controlled client is one who
appoints his own CSDP to act as custodian on his behalf. Equity settlements take place on a contractual T+3 (where T= trade
date) settlement cycle. Securities and funds become due for settlement three business days after the trade. Contractual
settlement is a market convention embodied in the rules of the JSE which states that a client has a contractual obligation to
cause a JSE trade to settle on settlement day. The JSE, in its capacity as Settlement Authority, ensures that all on-market trades
entered into by two JSE member firms settle three days after the trade date.
D. SELLING SHAREHOLDERS
Not applicable.
E. DILUTION
Not applicable.
F. EXPENSES OF THE ISSUE
Not applicable.
ITEM 10. ADDITIONAL INFORMATION
A. SHARE CAPITAL
Not applicable.
B. MEMORANDUM OF INCORPORATION
Information on our Memorandum of Incorporation can be found in Exhibit 1.1 filed with this Harmony 2025 Form 20-F.
Voting Rights
There are no limitations imposed by South African law or by our charter on the right of non-resident or foreign owners to
hold or vote our ordinary shares.
C. MATERIAL CONTRACTS
R1.5 Billion Green Term Loan
On 25 May 2022, Harmony and a syndicate of local and international lenders entered into a R1.5 billion six and a half year
syndicated green term loan. The R1.5 Billion Green Term Loan matures in November 2028.
Under the terms of the R1.5 Billion Green Term Loan, funds borrowed must be used in respect of "eligible green projects",
which relate to the construction, development, acquisition, maintenance, and/or operation of renewable energy installations.
The R1.5 Billion Green Term Loan bears interest at 2.65% over the three-month JIBAR.
Harmony was permitted to draw down on the R1.5 Billion Green Term Loan commencing after November 2022. As at
30 June 2025, R176 million was drawn and outstanding on the facility.
US$400 Million Syndicated Facility
On 25 May 2022, Harmony and a syndicate of local and international lenders, which was jointly arranged by Nedbank
Limited and ABSA Bank Limited, concluded the US$400 Million Syndicated Facility comprising a US$100 million term facility and
a US$300 million revolving credit facility. The US$400 Million Syndicated Facility matures in May 2027.
Under the terms of the US$400 Million Syndicated Facility funds borrowed must be used (i) in repayment of the September
2019 US$400 million three-year syndicated term loan and revolving credit facility and (ii) for exploration activities, feasibility
costs, capital costs, operational costs, other corporate expenses and other strategic objectives relating to the Group outside of
South Africa.
The US$100 million term loan facility bears interest of 2.85% over the three-month SOFR; the US$300 million revolving
credit facility bears interest of 2.7% over the three month SOFR. The US$400 Million Syndicated Facility is unsecured.
During fiscal 2025, no drawdowns were made on the US$400 Million Syndicated Facility. US$100 million (R1,775 million)
remained outstanding as at 30 June 2025
R2.5 Billion Syndicated Revolving Credit Facility
On 25 May 2022, Harmony and a syndicate of local and international lenders entered the R2.5 Billion Syndicated
Revolving Credit Facility. The R2.5 Billion Syndicated Revolving Credit Facility matures in May 2027.
Under the terms of the R2.5 Billion Syndicated Revolving Credit Facility, funds borrowed must be used (i) in repayment of
the November 2018 R2 billion four-year syndicated term loan and revolving credit facility and (ii) for ongoing general corporate
costs, working costs and working capital requirements of the Group.
The R2.5 Billion Syndicated Revolving Credit Facility bears interest at 2.40% over the three-month JIBAR. The R2.5 Billion
Syndicated Revolving Credit Facility is unsecured.
As at 30 June 2025, the total R2.5 billion was available under the R2.5 Billion Syndicated Revolving Credit Facility.
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US$1.25 Billion Bridge Facility
On 26 June 2025, Harmony and its wholly-owned Australian subsidiary HGA entered into the US$1.25 Billion Bridge
Facility to finance the acquisition of MAC and related costs. The US$1.25 Billion Bridge Facility comprises a US$250 million
term facility and a US$1 billion term facility.
The facility bears interest at the following rates: 2.0% over SOFR first 6 months starting 26 May, 2.8% over SOFR next 6
months starting 26 November 2025 and 4.0% over SOFR last 6 months starting 26 May 2026.
The maturity date of the facility is 25 June 2026, but harmony has a six month extension option that could be exercised in
the future. The US$1.25 Billion Bridge Facility is unsecured.
The equity-settled Katleho ya Moruo Employee Share Ownership Plan (Katleho ya Moruo ESOP)
Following the expiration of the Sisonke Employee Share Ownership Plan (''ESOP'') in 2022, Harmony approved the
establishment of the Katleho ya Moruo ESOP in January 2024. The scheme aims to continue facilitating beneficial interest and
ownership by non-managerial employees in South Africa (the beneficiaries) of Harmony shares to:
•Facilitate economic empowerment of Harmony’s employees;
•Incentivise Harmony’s employees, so as to promote the shared interests of employees and shareholders in the value
growth of Harmony; and
•Further align the interests of the Harmony shareholders and those of the employees of Harmony.
The shares were issued to the Harmony ESOP Trust (the ''Trust'') on 31 January 2024. Each beneficiary under the
scheme was awarded 360 Participation Units (''PU'') if they qualified for the scheme upon its formation or within six months of
the formation thereof. Thereafter, qualifying employees will be awarded PU on a pro-rata basis in line with the scheme rules.
The PU will vest after a service period of five years commencing on 4 April 2024. The Katleho ya Moruo ESOP is equity-settled.
MAC Acquisition
Implementation Deed
On 27 May 2025, Harmony and MAC, together with certain subsidiaries, entered into a definitive arrangement by which
Harmony would acquire all outstanding common shares in the capital of MAC for cash consideration of US$12.25 per share (the
“Transaction”). The Transaction would be implemented by way of a Jersey court-approved scheme of arrangement (the
“Scheme”) pursuant to a scheme implementation deed entered into among Harmony, MAC and certain subsidiaries, dated 27
May 2025 (the “Implementation Deed”). Outstanding MAC equity awards will be cancelled for cash; MAC warrants are to be
cancelled pursuant to a separate warrant cancellation deed. The total consideration for the transaction is US$1.01 billion
(approximately R17.90 billion as at 30 June 2025). The Board of Directors of MAC (“MAC Board”) unanimously approved the
Transaction and recommended to MAC shareholders that they vote in favour of the Transaction.
Completion of the Scheme is subject to customary conditions, including MAC shareholder approval, sanction by the Royal
Court of Jersey, specified regulatory approvals (including SARB and Australian approvals), absence of restraints or material
adverse change, counterpart consents/waivers in respect of specified stream, royalty and contingent payment arrangements,
and cancellation of MAC warrants. The Scheme is not subject to financing or due diligence conditions. The Implementation
Deed includes customary deal-protection provisions (no-shop and no-talk, subject to customary fiduciary exceptions, notification
and matching right in favour of Harmony), a break fee of US$23.6 million payable to Harmony in certain circumstances,
including where MAC has accepted and implemented a competing proposal, and a reverse break fee equal to 50% of the break
fee payable to MAC in specified circumstances.
Either party may terminate if the Scheme has not become effective by 31 January 2026, among other termination rights
(including Harmony’s right to terminate if any MAC director fails to recommend the Scheme or the MAC Board determines that a
competing proposal is a superior proposal, or in any circumstances, MAC becomes obligated to pursue, give effect to and/or
implement a competing proposal). The Implementation Deed contains customary guarantee and indemnity provisions in favour
of MAC under which, Harmony unconditionally and irrevocably guarantees due and punctual performance of Harmony’s
obligations under the Implementation Deed and indemnifies MAC against all loss, actions, proceedings and judgements arising
from any default or delay in the due and punctual performance of Harmony’s obligations under the Implementation Deed and the
Scheme.
The Implementation Deed is governed by the law of Western Australia and provides for Western Australian courts’
jurisdiction, with matters relating to the Scheme subject to the Royal Court of Jersey. The foregoing summary does not purport
to be complete and is qualified in its entirety by reference to the Implementation Deed, which is filed as an exhibit to this this
report on Form 20-F.
On 24 October 2025 all conditions were satisfied and the Scheme became effective. See Item 4 “History and Development
of the Company - Recent Developments - Developments since 30 June 2025”.
D. EXCHANGE CONTROLS
Introduction
The following is a general outline of South African exchange controls. Investors should consult a professional adviser
pertaining to the exchange control implications of their particular investments.
The Republic of South Africa’s exchange control regime provide for restrictions on the exportation of capital from a
Common Monetary Area member, consisting of South Africa, the Republic of Namibia, the Kingdoms of Lesotho and Eswatini.
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Transactions between South African residents (including corporations) and non-residents are subject to these exchange control
regulations, which are administered by the Financial Surveillance Department of the SARB.
Since 1995 a number of exchange control regulations have been relaxed with regard to both residents and non-residents.
Following the initial reforms, ongoing relaxations have been introduced with the aim of achieving a macroprudential risk-based
approach to the management of foreign exchange. The reforms are being made to, among other things, enable international
firms to make investments through South Africa to the rest of Africa and to further enhance opportunities for offshore portfolio
diversification for resident investors.
A considerable degree of flexibility is built into the system of exchange controls, and the SARB possesses substantial
discretionary powers in approving or rejecting the applications that fall outside the authority granted to authorised dealers.
These comments relate to exchange controls in force at 30 June 2025. These controls are subject to change at any time
(including retrospectively), however, the government has previously announced most changes during the annual budget
statement in February. It is not possible to predict whether existing exchange controls will be changed or relaxed by the South
African government in the future. Investors are urged to consult a professional adviser as to the exchange control implications of
their particular investments.
Government Regulatory Considerations
Shares
A foreign investor may invest freely in shares in a South African company, whether listed on the JSE or not, through normal
banking channels against settlement in foreign currency or Rand from a non-resident Rand account. A foreign investor may also
sell its share investment in a South African company and transfer the proceeds out of South Africa without restriction. However,
when the Company is not listed on the JSE, the supporting confirmation must be provided to the SARB that the sale price of any
shares reflects fair market value.
Under present South African exchange control regulations, our ordinary shares and ADSs are freely transferable outside
the Common Monetary Area between non-residents of the Common Monetary Area. No prior SARB approval is required for the
transfer of proceeds to South Africa, in respect of shares listed on the JSE, provided these funds enter the country through the
normal banking channels. In addition, the proceeds from the sale of ordinary shares on the JSE on behalf of those holders of
ordinary shares who are not residents of the Common Monetary Area are freely remittable to those holders. Share certificates
and warrant certificates held by non-residents will be endorsed with the words “non-resident.”
Loans
Generally, the granting of loans to us or our subsidiaries, and our ability to borrow from non-South African sources and the
repatriation of dividends, interest and royalties by us are regulated by the Financial Surveillance Department of the SARB. If a
foreign investor wishes to lend capital to a South African company, the prior approval of the SARB must be sought mainly in
respect of the interest rate and terms of repayment applicable to such loan.
Interest on foreign loans is subject to a withholding tax of 15% and freely remittable abroad, provided that the terms of the
loans received prior approval from the SARB. However, this rate may be reduced depending on the applicability of a double
taxation treaty.
Investments
We are required to seek approval from the SARB to use funds held in South Africa to make investments outside of South
Africa.
Dividends
Dividends declared by a listed company are subject to a withholding tax of 20% and freely transferable out of South Africa
from both trading and non-trading profits earned in South Africa through a major bank as agent for the SARB to non-resident
shareholders. However, this rate may be reduced depending on the applicability of a double taxation treaty.
Where 75% or more of a South African company’s capital, voting power, power of control or earnings is directly or indirectly
controlled by non-residents, such a company is designated an “affected person” by the SARB, and certain restrictions are
placed on its ability to obtain local financial assistance. We are not, and have never been, designated an “affected person” by
the SARB.
If an affected entity made use of local borrowing facilities, the affected entity must apply for SARB approval prior to
remitting dividends offshore. As a general rule, an affected entity that has accumulated historical losses may not declare
dividends out of current profits unless and until such time that the affected entity’s local borrowings do not exceed the local
borrowing limit.
E. TAXATION
Certain South African Tax Considerations
The summary set out in this section is based on current tax law and our interpretation thereof. Amendments to the tax law
may change the tax treatment of acquiring, holding or disposing of our ordinary shares or ADSs, as applicable, which changes
may possibly occur on a retrospective basis. The following summary is not a comprehensive description of all of the tax
considerations that may be relevant to a decision to purchase, own or dispose of our ordinary shares or ADSs, and does not
cover the tax consequences that depend upon your particular tax circumstances. This summary is not intended to constitute tax
advice. This summary does not address the foreign tax consequences for persons that are not residents of South Africa and
specifically excludes the tax consequences for persons (a) who are not residents of South Africa whose holding of shares or
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ADSs is effectively connected with a permanent establishment in South Africa through which the holder carries on business
activities, or (b) who is not the beneficial recipient of the dividends, or (c) who are not resident but where the source of the
transaction or dividends is deemed to be in South Africa. In addition, it does not cover the tax consequences for a holder that is
not entitled to the benefits of the double taxation agreement concluded between the Republic of South Africa and the United
States of America signed on 17 February 1997 (“US Treaty”). It also assumes that the holders hold the ordinary shares or ADSs
on capital account (that is, for investment purposes) as opposed to on revenue account (that is for speculative purposes or as
trading stock). The Supreme Court of Appeal in South Africa indicated that gains will be on revenue account if they are derived
as part of a business in carrying out a scheme of profit making. We recommend that you consult your own tax adviser
concerning the consequences of holding our ordinary shares or ADSs, as applicable, in your particular situation in the case of
treaties South Africa assigned to the Multilateral Instruments on 1 January 2023.
Dividends
With effect from 1 April 2012, South Africa introduced a Dividends Tax, which is a withholding tax on dividends effectively
borne by the shareholder receiving the dividend. The rate at which Dividends Tax is levied is 20% effective from 22 February
2017 (previously 15%). Dividends Tax is imposed on, amongst others, non-resident shareholders, and it is withheld by the
company declaring and paying the dividend to its shareholders or the regulated intermediary, as the case may be, as a
withholding agent. Dividends Tax is not payable to the extent that the recipient is, amongst others, a South African resident
company that has provided the relevant declaration and undertaking to the company declaring and paying the dividend.
Article 10 of the US Treaty provides that a dividend paid by a company that is a resident of South Africa for tax purposes to
a resident of the US for tax purposes may be taxed in the US. Article 10 of the US Treaty further provides that such a dividend
may also be taxed in South Africa. However, the tax charged in South Africa may not exceed 5% of the gross amount of the
dividends if the beneficial owner is a company that holds directly at least 10% of the voting stock of the South African company
paying the dividends. In all other cases, the US Treaty provides for a withholding tax of 15% of the gross amount of the
dividends.
It is deemed that an amount will be derived by a person from a source within South Africa if the amount constitutes a
dividend received by or accrued to that person. Residents of the US can make use of the lower rate as provided for in the US
Treaty if the relevant declaration and undertaking are provided to Harmony or the regulated intermediary beforehand. The
declaration and undertaking should be renewed after a five-year period effective from 1 July 2020. No time limitation imposed on
the validity of the declarations and undertakings if a regulated intermediary applies the Financial Intelligence Centre legislation,
the common reporting standard regulations in relation to the declarations or the agreement between the Government of South
Africa and the Government of the US to improve International Tax Compliance and to Implement the US Foreign Account Tax
Compliance Act.
Capital Gains Tax
Capital Gains Tax (“CGT”) was introduced in South Africa with effect from 1 October 2001. In the case of an individual,
40% in respect of years of assessment commencing 1 March 2016 (previously 33.3%) of the capital gain is included in the
individual’s taxable income (effectively 18%) should the individual pay tax at the marginal rate of 45% from 1 March 2017. In the
case of a corporate entity or trust, 80% in respect of years of assessment commencing 1 March 2016 of such gain is included in
its taxable income (effectively a rate of 22.4% previously and currently 21.6% for years of assessments ending on or after 31
March 2023 for a corporate entity and 36% for a trust). The conduit principle that enabled trusts to transfer the tax liability to a
beneficiary no longer applies to trusts with foreign beneficiaries and these trusts are taxed in South Africa on the amounts
concerned. CGT is only applicable to non-residents if the proceeds from the sale of the shares or ADSs are sourced in South
Africa or are attributable to a permanent establishment of the non-resident shareholder. The US Treaty (which will prevail in the
event of a conflict) provides that the US holder of ordinary shares or ADSs will not be subject to CGT if the assets have been
held as capital assets, unless they are linked to a permanent establishment of such non-resident shareholder in South Africa. To
the extent that shares or ADSs are held on revenue account, a similar principle applies with reference to the payment of income
tax. Subject to Article 13 of the US Treaty (as indicated below), income tax is only payable to the extent that the gain is
attributable to the carrying on of a business in South Africa through a permanent establishment situated in South Africa. The
current corporate rate is equal to 27%. This results in the effective CGT rate of a corporate entity being 21.6%. Any gains
realised on the disposal of equity shares are automatically deemed to be of a capital nature if the equity shares have been held
for a continuous period of at least three years. Such provision applies automatically and is not elective. However, this deeming
provision does not include an ADS.
Generally, the domestic laws of South Africa provide that an amount received or accrued in respect of the disposal of an
asset that constitutes immovable property held by that person or any interest or right of whatever nature of that person to or in
intellectual property where that property is situated in South Africa is deemed to have been sourced in South Africa and be
subject to South African tax. It includes the disposal of any equity shares held by a person in a company if:
•80% or more of the market value of the equity shares, ownership or right to ownership or vested interest, as the case may
be, at the time of disposal thereof is attributable directly or indirectly to immovable property held otherwise than as trading
stock. This requirement will include rights to variable or fixed payments as consideration for the working of, or the right to
work mineral deposits, sources and other natural resources in South Africa; and
•the person directly or indirectly holds at least 20% of the equity shares in the company or ownership or right to ownership
of the other entity.
The provisions of the US Treaty override the deemed source rules to the extent applicable. Article 13 of the US Treaty
provides that South Africa is entitled to tax a capital gain that is attributable to the alienation of real property situated in South
Africa, which concept includes the equivalent of a US real property interest, even if held through means of shares.
Securities Transfer Tax
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Securities Transfer Tax (“STT”) is payable in respect of the transfer of any security issued by a South African company.
STT is levied at a rate of 0.25% of the taxable amount of the security concerned (generally the market value). A security is
defined to include a depository receipt in a company, in addition to shares in a company. STT is not payable on the issue of any
security.
Although ADSs in respect of our shares are not listed on the JSE, reference is specifically made in the legislation to the
transfer of depository receipts in a South African company. As a consequence, STT will therefore be payable on the transfer of
ADSs. In addition, the process of depositing shares listed on the JSE in return for ADSs, or withdrawing such shares from the
deposit facility, will attract STT as and when the shares are transferred to or from the depository institution.
STT is payable by the broker or participant if a transaction is effected through a stockbroker or an exchange participant, but
it may be recovered from the person acquiring the beneficial ownership of the rights concerned. In other instances, STT is
payable by the person acquiring beneficial ownership.
STT is also payable on the subsequent redemption or cancellation of shares or ADSs.
Interest
South Africa has imposed a withholding tax on interest paid by any person to or for the benefit of any foreign person to the
extent that the interest is regarded as having been received or accrued from a source within South Africa at the rate of 15% with
effect from 1 March 2015. In terms of the US Treaty this rate is reduced to zero. However, the rate may change to 5% or 10%
once the US Treaty is renegotiated. US residents can only make use of the lower rate as provided for in the US Treaty if the
relevant declaration and undertaking are provided to the company paying the interest. It was recently enacted that the
declaration and undertaking should be renewed after a five-year period effective from 1 July 2020. No time limitation is imposed
on the validity of the declarations and undertakings if a regulated intermediary applies the Financial Intelligence Centre
legislation, the common reporting standard regulations in relation to the declarations or the agreement between the Government
of South Africa and the Government of the US to improve International Tax Compliance and to Implement the US Foreign
Account Tax Compliance Act.
In terms of the latest amendments to the income tax laws that are effective from 1 January 2026 interest that is incurred by
a holder of debt (lender) on a loan that the lender raised to acquire the debt issued by Harmony is only deductible up to the
interest accrued in circumstances where the interest is incurred in the income of that person even though that person may not
be carrying on a trade.
Withholding tax on Service Fees
There is no separate withholding tax on service fees. The monitoring of service fees is now dealt with on the basis that
these types of arrangements must be reported to South African Revenue Service ("SARS"). Transactions between residents and
non-residents must thus be reported if they relate to consultancy, construction, engineering, installation, logistical, managerial,
supervisory, technical or training services, in circumstances where the expenditure exceeds or is anticipated to exceed
R10 million in aggregate and does not otherwise qualify as remuneration.
Capitalisation Shares
Capitalisation shares or bonus shares issued to holders of shares in lieu of cash dividends do not constitute dividends and
are currently not subject to Dividends Tax. However, these shares have a base cost of zero for income tax purposes.
Certain Material United States Federal Income Tax Considerations
The following is a discussion of certain material US federal income tax consequences of acquiring, holding and disposing
of the ordinary shares (for purposes of this summary, references to the ordinary shares include the ADSs, unless the context
otherwise requires).
You will be a “US holder” if you are a beneficial owner of ordinary shares and you are:
•an individual who is a citizen or resident of the United States;
•a corporation (or other entity taxable as a corporation for US federal income tax purposes) organised under the laws of the
United States, any state thereof, or the District of Columbia;
•an estate whose income is subject to US federal income tax regardless of its source; or
•a trust if: (i) a US court can exercise primary supervision over the trust’s administration and one or more US persons are
authorised to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable US Treasury
regulations to be treated as a US person.
This summary only applies to US holders that hold ordinary shares or ADSs as capital assets. This summary is based on
the US Internal Revenue Code of 1986, as amended, (the “Code”), its legislative history, existing and proposed US Treasury
regulations, published Internal Revenue Service ("IRS") rulings, the US Treaty and court decisions that are now in effect, any
and all of which are subject to differing interpretations and which could be materially and adversely changed. Any such change
could apply retroactively and could affect the continued validity of this summary. This summary does not consider the potential
effects, both adverse and beneficial, of any proposed legislation which, if enacted, could be applied, possibly on a retroactive
basis, at any time.
This summary does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a
decision to purchase the ordinary shares. In particular, this summary deals only with US holders that will hold the ordinary
shares as capital assets within the meaning of Section 1221 of the Code. It does not address considerations that may be
relevant to you if you are an investor that is subject to special tax rules, such as a bank, real estate investment trust, regulated
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investment company, insurance company, dealer in securities or currencies, trader in securities or commodities that elects mark-
to-market treatment, person that will hold the ordinary shares as a hedge against currency risk or as a position in a “straddle” or
conversion transaction, tax-exempt organisation, person whose “functional currency” is not the US dollar, person liable for
alternative minimum tax, person required to accelerate the recognition of any item of gross income with respect to shares or
ADSs as a result of such income being recognised on an applicable financial statement or a person who owns directly, indirectly
or by attribution, at least 10% of our stock. This summary also does not address any aspect of US federal non-income tax laws,
such as gift or estate tax laws, or state, local, or non-US tax laws, or, except as discussed below, any tax reporting obligations of
a holder of our ordinary shares.
If a partnership (including for this purpose any entity treated as a partnership for US federal income tax purposes) is a
beneficial owner of the ordinary shares, the US federal income tax treatment of a partner in the partnership generally will depend
on the status of the partner and the activities of the partnership. A holder of the ordinary shares that is a partnership and
partners in such a partnership should consult their own tax advisors about the US federal income tax consequences of
acquiring, holding, and disposing of the ordinary shares.
We believe that we will not be a passive foreign investment company (“PFIC”), for US federal income tax purposes for the
current taxable year and do not expect to become a PFIC in the foreseeable future. However, we cannot assure you that we will
not be considered a PFIC in the current or future years. If Harmony were to be treated as a PFIC, US holders of ordinary shares
or ADSs would be required (i) to pay a special US addition to tax on certain distributions and gains on sale and (ii) to pay tax on
any gain from the sale of ordinary shares or ADSs at ordinary income (rather than capital gains) rates in addition to paying the
special addition to tax on this gain. Such holder may also be required to file IRS Form 8621. Additionally, dividends paid by
Harmony would not be eligible for the reduced rate of tax described below under "- Taxation of Dividends". The remainder of this
discussion assumes that Harmony is not a PFIC for US federal income tax purposes. You should consult your own tax
advisers regarding the potential application of the PFIC regime.
Each prospective purchaser should consult his or her tax advisor with respect to the US federal, state, local and non-US
tax consequences of acquiring, owning, or disposing of shares or ADSs.
US holders of ADSs
For US federal income tax purposes, a US holder of ADSs generally will be treated as the owner of the corresponding
number of underlying ordinary shares held by The Bank of New York Mellon as depositary ("Depositary") for the ADSs, and
references to ordinary shares in the following discussion refer also to ADSs representing the ordinary shares.
Deposits and withdrawals of ordinary shares by US holders in exchange for ADSs will in general not result in the realisation
of gain or loss for US federal income tax purposes. Your tax basis in withdrawn ordinary shares will be the same as your tax
basis in the ADSs surrendered, and your holding period for the ordinary shares will include the holding period of the ADSs.
Taxation of Dividends
Distributions paid out of Harmony’s current or accumulated earnings and profits (as determined for US federal income tax
purposes), before reduction for any South African withholding tax paid by Harmony with respect thereto, will generally be taxable
to you as dividend income, and will not be eligible for the dividends received deduction allowed to corporations. Distributions that
exceed Harmony’s current and accumulated earnings and profits will be treated as a non-taxable return of capital to the extent
of your basis in the ordinary shares and thereafter as capital gain. However, we do not maintain calculations of our earnings and
profits in accordance with US federal income tax accounting principles. You should therefore assume that any distribution by us
with respect to the shares will be reported as ordinary dividend income. You should consult your own tax advisers with respect
to the appropriate US federal income tax treatment of any distribution received from us.
Dividends paid by Harmony generally will be taxable to non-corporate US holders at the reduced rate normally applicable
to long-term capital gains, provided that either (i) Harmony qualifies for the benefits of the US Treaty, or (ii) with respect to
dividends paid on the ADSs, the ADSs are considered to be "readily tradable" on the NYSE, and certain other conditions are
met. You will be eligible for this reduced rate only if you are an individual, and have held the ordinary shares or ADSs for more
than 60 days during the 121 day period beginning 60 days before the ex-dividend date.
For US federal income tax purposes, the amount of any dividend paid in Rand will be included in income in a US dollar
amount calculated by reference to the exchange rate in effect on the date the dividends are received by you or the Depositary
(in the case of ADSs), regardless of whether they are converted into US dollars at that time. If you or the Depositary, as the case
may be, convert dividends received in Rand into US dollars on the day they are received, you generally will not be required to
recognise foreign currency gain or loss in respect of this dividend income.
Effect of South African Withholding Taxes
As discussed above in "- Taxation - Certain South African Tax Considerations - Dividends", under current law, South Africa
imposes a withholding tax of 20% on dividends paid by Harmony. A US holder will generally be entitled, subject to certain
limitations, to a foreign tax credit against its US federal income tax liability, or a deduction in computing its US federal taxable
income, for South African income taxes withheld by Harmony (at a rate not exceeding any applicable Treaty rate). The rules
governing foreign tax credits are complex and recently issued final US Treasury Regulations (“Final FTC Regulations”) have
imposed additional requirements that must be met for a foreign tax to be creditable and Harmony does not intend to determine
whether such requirements will be met in the case that non-US taxes are withheld (if any). However, recent notices from the IRS
(the “Notices”) indicate that the US Treasury and the IRS are considering proposing amendments to the Final FTC Regulations
and allow taxpayers, subject to certain conditions, to defer the application of many aspects of the Final FTC Regulations until
the date when a notice or other guidance withdrawing or modifying this temporary relief is issued (or any later date specified in
such notice or other guidance).
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US holders that receive payments subject to South African withholding tax will be treated, for US federal income tax
purposes, as having received the amount of South African taxes withheld by Harmony, and as then having paid over the
withheld taxes to the South African taxing authorities. As a result of this rule, the amount of dividend income included in gross
income for US federal income tax purposes by a US holder with respect to a payment of dividends may be greater than the
amount of cash actually received (or receivable) by the US holder from Harmony with respect to the payment.
The rules governing foreign tax credits are complex. You should consult your tax adviser concerning the foreign tax
credit implications of the payment of South African withholding taxes.
Taxation of a Sale or other Disposition
Upon a sale or other disposition of ordinary shares or ADSs, other than an exchange of ADSs for ordinary shares and vice
versa, you will generally recognise US source capital gain or loss for US federal income tax purposes equal to the difference
between the amount realised and your adjusted tax basis in the ordinary shares or ADSs. Your tax basis in an ordinary share or
ADS will generally be its US dollar cost. This capital gain or loss will be long-term capital gain or loss if your holding period in the
ordinary shares or ADSs exceeds one year. However, regardless of your actual holding period, any loss may be treated as long-
term capital loss to the extent you receive a dividend that qualifies for the reduced rate described above under " - Taxation of
Dividends" and also exceeds 10% of your basis in the ordinary shares. The deductibility of capital losses is subject to significant
limitations.
Foreign currency received on the sale or other disposition of an ordinary share will have a tax basis equal to its US dollar
value on the settlement date. Foreign currency that is purchased will generally have a tax basis equal to the US dollar value of
the foreign currency on the date of purchase. Any gain or loss recognised on a sale or other disposition of a foreign currency
(including its use to purchase ordinary shares or upon exchange for US dollars) will be US source ordinary income or loss.
To the extent you incur STT in connection with a transfer or withdrawal of ordinary shares as described under "- Certain
South African Tax Considerations - Securities Transfer Tax" above, such securities transfer tax will not be a creditable tax for
US foreign tax credit purposes.
Information with Respect to Foreign Financial Assets
US holders of “specified foreign financial assets” with an aggregate value in excess of US$50,000 at the end of the taxable
year, or US$75,000 at any time during the taxable year, are generally required to file an information report with respect to such
assets with their tax returns. “Specified foreign financial assets” may include financial accounts maintained by foreign financial
institutions, as well as the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and
securities issued by non-United States persons, (ii) financial instruments and contracts held for investment that have non-United
States issuers or counter parties and (iii) interests in foreign entities. US holders are urged to consult their tax advisors regarding
the application of this reporting requirement to their ownership of the ordinary shares.
US Information Reporting and Backup Withholding Rules
Payments of dividends and other proceeds with respect to ordinary shares or ADSs by US persons will be reported to you
and to the IRS as may be required under applicable regulations. Backup withholding may apply to these payments if you fail to
provide an accurate taxpayer identification number or certification of exempt status or fail to comply with applicable certification
requirements. Some holders are not subject to backup withholding. You should consult your tax adviser as to your qualification
for an exemption from backup withholding and the procedure for obtaining an exemption.
F. DIVIDENDS AND PAYING AGENTS
Not applicable.
G. STATEMENT BY EXPERTS
Not applicable.
H. DOCUMENTS ON DISPLAY
Our current Memorandum of Incorporation may be examined at our principal place of business at: Randfontein Office Park,
Corner of Main Reef Road and Ward Avenue, Randfontein, 1759, South Africa.
We file annual reports on Form 20-F with, and furnish periodic reports on Form 6-K to, the SEC. You can obtain access to
the documents filed via the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system on the SEC’s website (http://
www.sec.gov).
This Harmony 2025 Form 20-F reports information primarily regarding Harmony’s business, operations and financial
information relating to the fiscal year ended 30 June 2025. For more recent updates regarding Harmony, you may inspect any
reports, statements or other information that Harmony files with the SEC.
No material referred to in this annual report as being available on our website is incorporated by reference into, or forms
any part of, this annual report. References herein to our website shall not be deemed to cause such incorporation.
I. SUBSIDIARY INFORMATION
Not applicable.
ITEM 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information set forth under the heading “Cautionary statement about forward-looking statements” on the inside front
cover is incorporated herein by reference.
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General
We are exposed to market risks, including credit risk, foreign exchange risk, commodity price risk, other price risk and
interest rate risk associated with underlying assets, liabilities and anticipated transactions. Following periodic evaluation of these
exposures, we may enter into derivative financial instruments to manage these exposures. We have policies in areas such as
counterparty exposure and hedging practices, which have been approved by our audit and risk committee. We do not hold or
issue derivative financial instruments for trading or speculative purposes.
We did not apply hedge accounting to incidental hedges held in the past.
In accordance with IFRS 9 - Financial Instruments, we account for our derivative financial instruments as hedging
transactions if the following criteria are met:
•in the case of a hedge of an anticipated future transaction, there is a high probability that the transaction will occur, and
•in the case of a cash flow hedge, the hedging instrument is expected to be highly effective.
During fiscal 2025 and 2024, we designated all of the gold forward sales as well as (from April 2024) gold zero cost collar
contracts as cash flow hedging instruments and applied hedge accounting to these transactions. See "- Commodity Price
Sensitivity" below.
Foreign Currency Exchange Risk and Sensitivity
In the ordinary course of business, we enter into transactions denominated in foreign currencies (primarily US dollars,
Australian dollars and PNG Kina). In addition, we incur investments and liabilities in US dollars, Australian dollars and PNG Kina
from time to time. As a result, we are subject to transaction and translation exposure from fluctuations in foreign currency
exchange rates.
Harmony enters into foreign exchange hedging contracts to manage these risks. This can take the form of zero cost
collars, which establish a minimum (floor) and maximum (cap) Rand/US dollar exchange rate at which to convert the US dollars
we receive on our gold sales to Rand or outright forward contracts that fix the forward exchange rate. The limit currently set by
the board is 25% of the group's foreign exchange risk exposure for a period of 24 months. At 30 June 2025, the nominal amount
of the zero cost collars is US$226 million spread over a 24-month period with a weighted average cap price of US$1=R20.54
and weighted average floor price of US$1=R18.54. Additionally, at 30 June 2025 Harmony had open foreign exchange forward
contracts which had a nominal amount of US$53 million spread over a 12-month period at an average exchange rate of
US$1=R19.98.
Commodity Price Risk and Sensitivity
General
Our revenue is sensitive to the spot price of gold as newly mined gold production is typically sold at the ruling market price
of gold, and in the case of Hidden Valley, our revenue is sensitive to the spot price of silver as well. During fiscal 2025 and 2024,
Harmony entered into forward sales to establish the sales price in advance of its future gold production. During April 2024
Harmony introduced gold collar hedging contracts to its derivative programme to hedge the risk of lower gold prices and a new
limit for gold hedging was approved by the Board as 30%, 20% and 10% of production in a 12-, 24- and 36-month period,
respectively, for contracts going forward.
The market price of gold has a significant effect on our results of operations, our ability to pay dividends and undertake
capital expenditures, and the market price of our ordinary shares.
Gold prices have historically fluctuated widely and are affected by numerous industry factors over which we do not have
any control. See Item 3: “Key Information - Risk Factors - Strategic and Market Risks - The profitability of our operations, and
cash flows generated by those operations, are affected by changes in the price of gold and other metals; a fall in the gold price
below our cash cost of production and capital expenditure required to sustain production for any sustained period may lead to
losses and require us to curtail or suspend certain operations”. The aggregate effect of these factors, all of which are beyond our
control, is impossible for us to predict.
Harmony’s Hedging Policy
As a general rule, we sell our gold production at market prices. However, commencing in fiscal 2017, Harmony started
entering into derivative contracts to manage the variability in cash flows from the Group’s production, to create cash certainty
and protect the Group against lower commodity prices. See Item 5: “Operating and Financial Review and Prospects - Operating
Results - Revenue".
Commodity Sales Agreements
At 30 June 2025, the open Rand gold forward sale contracts amounted to 314,000 ounces spread over 30 months at an
average of R1,510,000/kg. The open US$ gold forward contracts amounted to 45,000 ounces spread over 30 months at an
average of US$2,468/oz. The open Rand gold zero cost collar contracts amounted to 432,000 ounces at a weighted average
floor of R1,757,000/kg and a weighted average cap of R1,996,000/kg spread over 36 months. The open US$ gold zero cost
collar contracts amounted to 72,000 ounces spread over 36 months at a weighted average floor of US$2,796/oz and a weighted
average cap of US$3,118/oz.
The open US$ silver zero cost collars amounted to 2,480,000 ounces spread over 24 months at a weighted average floor
of US$31.22/oz and a weighted average cap of US$35.04/oz.
At 30 June 2024, the open Rand gold forward sale contracts amounted to 638,000 ounces spread over 36 months at an
average of R1,373,000/kg. The open US$ gold forward contracts amounted to 75,000 ounces spread over 36 months at an
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average of US$2,273/oz. The open Rand gold zero cost collar contracts amounted to 170,000 ounces at a weighted average
floor of R1,524,000/kg and a weighted average cap of R1,722,000/kg spread over 36 months. The open US$ gold zero cost
collar contracts amounted to 31,000 ounces spread over 36 months at a weighted average floor of US$ 2,447/oz and a
weighted average cap of US$ 2,721/oz. The open US$ silver zero cost collars amounted to 2,230,000 ounces spread over 24
months at a weighted average floor of US$27.22/oz and a weighted average cap of US$30.20/oz.
Other Price Risk
The group is exposed to the risk of fluctuations in the fair value of fair value through profit or loss financial assets as a
result of changes in market prices (other than changes in interest rates and foreign currencies). Harmony generally does not use
any derivative instruments to manage this risk.
Interest Rate Risk
Our interest rate risk arises mainly from borrowings. The group has variable interest rate borrowings. Variable rate
borrowings expose the group to cash flow interest rate risk.
With inflation rates easing and economies recovering, central banks started to reduce interest rates during the year ended
30 June 2025. The reduced interest rates had a positive impact on Harmony's cost of borrowings compared to the prior year.
The group has therefore not entered into interest rate swap agreements as the interest rate risk continues to be assessed as
low. Further to this, the decreased interest rates have lowered outstanding bond yields and this has resulted in a decrease in
discount rates.
Credit Risk
Credit risk is the risk that a counterparty may default or not meet its obligations in a timely manner. Financial instruments
which are subject to credit risk are restricted cash and investments, derivative financial assets and cash and cash equivalents,
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. The credit
risk arising from restricted cash and investments, derivative financial assets and cash and cash equivalents is managed by
ensuring amounts are only invested with financial institutions of good credit quality based on external credit ratings and by
assessing the underlying source of where the funds are invested. The group has policies that limit the amount of credit exposure
to any one financial institution. The audit and risk committee reviews the exposure on a quarterly basis. Exposure to credit risk
on trade and other receivables is monitored on a regular basis by management.
At 30 June 2025, the national scale investment grade rating of the major South African banks remained unchanged at AA+
and the group's Australian counterparts remained at AA-, which is in line with the group's credit risk policy.
Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, and the availability of
funding through an adequate amount of committed credit facilities.
In the ordinary course of business, the group receives cash from its operations and is required to fund working capital and
capital expenditure requirements. Management prepares cash flow forecasts weekly and ensures that surplus funds are
invested in a manner to achieve market-related returns and to provide sufficient liquidity at the minimum risk. The group
maintains and refinances committed credit facilities as medium-term forecasts require. The audit and risk committee reviews the
updated forecasts quarterly. The group is able to actively source financing at competitive rates. Where necessary, funds will be
drawn from its revolving credit facilities.
For further information on financial, credit and liquidity risks and sensitivities, see note 37 “Financial Risk Management” to
our consolidated financial statements set forth beginning on page F-1.
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ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
A. DEBT SECURITIES
Not applicable.
B. WARRANTS AND RIGHTS
Not applicable.
C. OTHER SECURITIES
Not applicable.
D. AMERICAN DEPOSITARY SHARES
On 7 October 2011, Harmony appointed Deutsche Bank Trust Company Americas in place of The Bank of New York
Mellon as its Depositary for the ADSs evidenced by American Depositary Receipts (“ADRs"). A copy of our form of amended
and restated deposit agreement (the “Deposit Agreement”) among the Depositary, owners and beneficial owners of ADSs and
Harmony was filed with the SEC as an exhibit to our Form F-6 filed on 15 August 2024.
The Depositary collects fees for delivery and surrender of ADSs directly from investors depositing shares or surrendering
ADSs for the purpose of withdrawal or from intermediaries acting for them. In addition, the Depositary collects an annual fee, or
Depositary Service Fee for the operation and maintenance costs in administering the ADSs. The Depositary collects fees for
making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of the distributable
property to pay the fees.
The principal terms regarding fees and charges that an ADS holder might have to pay, as well as any fee and other
payments made by the Depositary to us as part of the Deposit Agreement, are summarised below:
Fees and Expenses
Persons depositing shares or withdrawing shares holders must pay: | For: | |
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | •The execution and delivery of ADSs | |
•The surrender of ADSs | ||
$0.02 (or less) per ADS | •Any cash distributions | |
$0.02 (or less) per ADS | •Annual Depositary Service Fee for the operation and maintenance costs in administering the ADSs •$0.01 currently being administered as a fee | |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | •Distribution of securities distributed to holders of deposited securities which are distributed by the Depositary to ADS holders | |
Registration or transfer fees | •Transfer and registration of equity shares on our share register to or from the name of the Depositary or its agent when you deposit or withdraw shares • | |
Expenses of the Depositary | •Cable, telex and facsimile transmissions (when expressly provided in the Deposit Agreement) •Converting foreign currency | |
Taxes and other governmental charges the Depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes | •As necessary | |
Any charges incurred by the Depositary or its agents for servicing the deposited securities | •As necessary |
In addition, ADS holders must pay any tax or other governmental charge payable by the Depositary or its custodian on any ADS,
deposited security or distribution. If an ADS holder owes any tax or other governmental charge, the Depositary may:
•refuse to effect any transfer of such ADSs or any withdrawal of ADSs;
•withhold any dividends or other distributions; or
•sell part or all of the ADSs evidenced by such ADS,
and may apply dividends or other distributions or the proceeds of any sale in payment of the outstanding tax or other
governmental charge. The ADS holder remains liable for any shortfall.
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Fees and payments made by the Depositary
The Depositary has agreed to reimburse Harmony for expenses Harmony incurs that are related to the maintenance
expenses of our ADR facility. The Depositary has agreed to pay the standard out-of-pocket maintenance costs for the ADRs,
which consist of the expenses of printing and distributing dividend checks, electronic filing of US federal tax information, mailing
required tax forms, stationery, postage, facsimile, and telephone calls. The amount of reimbursement available to Harmony is
not necessarily tied to the amount of fees the Depositary collects from investors.
During the fiscal year ended 30 June 2025, Harmony received net direct and indirect payments of R58,398,834 from the
Depositary.
PART II
ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
Not applicable.
ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Not applicable.
ITEM 15 CONTROLS AND PROCEDURES
A. DISCLOSURE CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act,
that are designed to ensure that information required to be disclosed in the reports we file or furnish under the Exchange Act is
recorded, processed, summarised and reported within the time periods specified in the SEC’s rules and forms and that such
information is accumulated and communicated to management, including our Chief Executive Officer (“CEO”) and Financial
Director (“FD”), as appropriate, to allow timely decisions regarding required disclosure.
In designing and evaluating our disclosure controls and procedures, our management necessarily is required to apply its
judgment. The design of our disclosure controls and procedures also is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all
potential future conditions. Thus, in designing and evaluating our disclosure controls and procedures, our management,
including our CEO and FD, recognises that any controls and procedures, no matter how well designed and operated, can
provide only reasonable, not absolute, assurance of achieving the desired objectives of the disclosure controls and procedures.
As of 30 June 2025, Harmony's management, with the participation of our CEO and FD, carried out an evaluation, pursuant to
Rule 13a-15 promulgated under the Exchange Act of the effectiveness of our “disclosure controls and procedures” (as defined in
Rule 13a-15(e) under the Exchange Act).
As part of this evaluation, management identified material weaknesses in our internal control over financial reporting, as
further described below in “Management’s Annual Report on Internal Control over Financial Reporting.”
Based on the identification of material weaknesses in our internal control over financial reporting, our management,
including the CEO and FD, concluded that our disclosure controls and procedures were ineffective as of 30 June 2025.
Notwithstanding such material weaknesses in internal control over financial reporting, our management, including our CEO and
FD, has concluded that our consolidated financial statements present fairly, in all material respects, our financial position, results
of our operations and our cash flows for the periods presented in this Annual Report, in conformity with IFRS as issued by the
IASB.
B. MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Harmony's management is responsible for establishing and maintaining adequate internal control over financial reporting
as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act. Under Section 404 of the Sarbanes-Oxley Act of 2002 (the
"Sarbanes-Oxley Act"), management is required to assess the effectiveness of our internal control over financial reporting as of
the end of each financial year and report, based on that assessment, whether Harmony's internal control over financial reporting
is effective.
Harmony's internal control over financial reporting is a process designed under the supervision of the CEO and FD to
provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for
external purposes in accordance with IFRS issued by the IASB.
Harmony’s internal control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are
being made only in accordance with authorisations of management and directors of the Company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company’s assets that
could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
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Management assessed the effectiveness of Harmony's internal control over financial reporting as of 30 June 2025. In
making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission in "Internal Control – Integrated Framework (2013)".
Based on this evaluation, our management has concluded that, as of 30 June 2025, the Company’s internal control over
financial reporting was not effective due to the material weaknesses in internal control over financial reporting in the areas
described below.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented
or detected on a timely basis.
Management identified a material weakness in our internal control over financial reporting due to the fact that we did not
design control activities to adequately address identified risks or operate at a sufficient level of precision, that would identify
material misstatements to our consolidated financial statements.
This material weakness contributed to the following additional material weaknesses:
•Inadequate and insufficient evidence of review (including the precision of the review) of Management Review Controls
(“MRCs”) as well as controls that contain an element of review. MRCs are the reviews conducted by management of
estimates and other kinds of information for reasonableness.
•Inadequate and insufficient evidence of the procedures performed to verify the completeness and accuracy of Information
Produced by the Entity (“IPE”) used in the execution of controls. IPE is any information that is produced internally by a
company and provided as evidence supporting controls of such company.
•Ineffective information technology general controls (“ITGCs”) in the areas of user access, change-management and IT
operations, over certain IT systems that support the Company’s financial reporting processes. Automated and manual
business process controls that are dependent on the affected ITGCs were also deemed ineffective because they could
have been adversely impacted to the extent that they rely upon information and configurations from the affected IT
systems.
The MRC, IPE and ITGC material weaknesses arose because of the aggregation of numerous individual control
deficiencies, which impacted multiple significant accounts and business processes and as a result, there is a reasonable
possibility that a material misstatement in our consolidated financial statements would not have been prevented or detected on a
timely basis, if such a misstatement had in fact occurred. These control deficiencies did not result in identified material
misstatements in our consolidated financial statements presented in this annual report on Form 20-F.
Our management, under the oversight of the Audit and Risk Committee, has begun to implement a remediation plan to
address the material weaknesses. The key components of our plan include:
•Reassessing our Sarbanes-Oxley Act controls: We are actively reassessing our Sarbanes-Oxley Act processes to improve
the identification of the appropriate controls to respond to the matters we have identified, as described above, to improve
the evidence prepared and retained for key controls to ensure it meets the necessary standards, include formal IPE
considerations and are executed and documented at the appropriate level of precision. This includes the development of
standardised review templates and checklists.
•Defining and commencing implementation of a plan to remediate ITGCs, regarding access management, change
management and IT operations.
•Training: We will develop and deploy training for personnel responsible for the operation of MRCs and controls dependent
on IPE. This training will focus on enhancing such personnel’s understanding of internal control over financial reporting,
including documentation standards and preparation of the appropriate evidence of review, in particular as related to MRCs,
and IPE procedures performed.
The Company’s management believes that the measures above, as well as other measures that may be implemented, will
remediate the material weaknesses. However, the material weaknesses will not be considered remediated until the remediation
plan has been implemented to a sufficient degree for management to conclude, through testing, that the controls are designed,
implemented and operating effectively to provide reasonable assurance that a material misstatement to the consolidated
financial statements would be prevented, or detected and corrected. Management will continue to monitor the effectiveness of
the remedial measures in their future assessments of the effectiveness of internal control over financial reporting and disclosure
controls and procedures and will make necessary changes to the design of the remedial plan and take other actions that is
deemed appropriate given the circumstances.
C. ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young Incorporated, an independent registered public accounting firm that audited the consolidated financial
statements included in this annual report on Form 20-F, has issued an adverse opinion on the effectiveness of Harmony’s
internal control over financial reporting as of 30 June 2025.
See – Annual Financial Report – Report of independent registered public accounting firm.
D. CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no changes in our internal control over financial reporting during the period ended 30 June 2025 that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting, other than the
remediation activities described above.
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ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
Mr. Martin Prinsloo, independent non-executive chairman of the audit and risk committee, is regarded as being the
Company’s “audit committee financial expert” as defined by the rules of the SEC.
In addition, the audit and risk committee members through their collective experience meet a majority of the definitions of
the SEC for an “audit committee financial expert” in both the private and public sectors. The members have served as directors
and officers of numerous public companies and have over the years developed a strong knowledge and understanding of IFRS,
overseeing the preparation, audit and evaluation of financial statements. We believe that the combined knowledge, skills and
experience of the audit and risk committee, and their authority to engage outside experts as they deem appropriate to provide
them with advice on matters related to their responsibilities, enable them, as a group and under the guidance of Mr. Prinsloo, to
act effectively in the fulfilment of their tasks and responsibilities required under the Sarbanes-Oxley Act.
ITEM 16B. CODE OF ETHICS
The information set forth under the heading:
•“- Governance – Ethical leadership and sound corporate governance” on pages 186 to 196 of the Integrated Annual Report
for the 20-F 2025 is incorporated herein by reference.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
PwC resigned as independent principal accountant of the Group on conclusion of its responsibilities relating to the
30 June 2023 financial year audit. This after having served as Harmony’s independent principal accountant for the one financial
year ended 30 June 2023, of which audited financial statements appear in this annual report on Form 20-F. EY was appointed
as the Company’s independent principal accountant for the financial years ending 30 June 2025 and 30 June 2024.
A. AUDIT FEES
The following sets forth the aggregate fees billed for each of the last two fiscal years for professional fees to our principal
accountants for the audit of the annual financial statements or for services normally provided by the accountant in connection
with statutory and regulatory filings or engagements for those fiscal years.
Fiscal year ended 30 June 2024 .................................................................................................... | Rand | 55 million |
Fiscal year ended 30 June 2025 .................................................................................................... | Rand | 72 million |
B. AUDIT-RELATED FEES
The following sets forth additional aggregate fees to those reported under “Audit Fees” in each of the last two fiscal years
that were provided by the principal accountant that are reasonably related to the performance of the audit or review of the
financial statements:
Fiscal year ended 30 June 2024 .................................................................................................... | Rand | 8 million |
Fiscal year ended 30 June 2025 .................................................................................................... | Rand | 8 million |
Fees related to interim reviews.
C. TAX FEES
The following sets forth the aggregate fees billed in each of the last two fiscal years for professional services rendered by
the principal accountant for tax compliance, tax advice and tax planning:
Fiscal year ended 30 June 2024 .................................................................................................... | Rand | — |
Fiscal year ended 30 June 2025 .................................................................................................... | Rand | — |
Not applicable
D. ALL OTHER FEES
The following sets forth the aggregate fees billed in each of the last two fiscal years for products and services provided by
the principal accountant not described above:
Fiscal year ended 30 June 2024 .................................................................................................... | Rand | — |
Fiscal year ended 30 June 2025 .................................................................................................... | Rand | — |
E. AUDIT AND RISK COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES
Our audit and risk committee pre-approves our engagement of the independent principal accountant to render audit or
non-audit services in terms of its non-audit services policy. All of the services described above were approved in terms of the
Company’s delegation of authority framework and the audit and risk committee’s policy on non-audit services.
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable.
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ITEM 16E. PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
None.
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
Not applicable.
ITEM 16G. CORPORATE GOVERNANCE
Significant ways in which Harmony’s corporate governance practices differ from practices followed by US domestic
companies under the listing standards of the NYSE
Foreign private issuers, such as Harmony, must briefly highlight any significant ways in which their corporate governance
practices differ from those followed by US domestic companies subject to the listing standards of the NYSE. Set out below is a
brief summary of the significant differences.
US domestic companies are required to have a nominating/corporate governance committee and all members of this
committee must be non-executive directors. The JSE Listing Requirements also require the appointment of such a committee,
and stipulate that all members of this committee must be non-executive directors, the majority of whom must be independent.
Harmony has a nomination committee comprised of four non-executive board members, three of whom are independent. The
lead independent non-executive director serves as chairman of the nomination committee. For US domestic companies, all
members of this committee are required to be independent. The current chairman of our board of directors, Dr Patrice Motsepe,
is a member of the nomination committee and is also chairman of one of Harmony’s largest shareholders, African Rainbow
Minerals Limited, and is thus not independent. He is, however, in terms of South African governance practices, permitted to be a
member of the nomination committee.
US domestic companies are required to have a compensation committee composed entirely of independent directors.
Harmony has appointed a remuneration committee, comprised of three independent non-executive board members.
The non-executive directors of US domestic companies must meet at regularly scheduled executive sessions without
management. Although the JSE Listing Requirements do not require such meetings, the board meets without executives after
each board meeting. The board also has unrestricted access to all company information, records, documents and property.
Directors may, if necessary, take independent professional advice at the Company’s expense and non-executive directors have
access to management and may meet separately with management, without the attendance of executive directors.
US domestic companies are required to have an audit committee composed entirely of independent directors. The
Companies Act requires that the members of the audit committee be approved by shareholders on an annual basis at a
company’s annual general meeting. Both the Companies Act and the JSE Listings Requirements require that the audit
committee be composed entirely of independent directors. Harmony has appointed an audit and risk committee, currently
comprising five non-executive directors, all of whom are independent, as defined under the Companies Act, the JSE Listings
Requirements and the listing standards of the NYSE.
The listing standards of the NYSE generally require shareholder approval for the adoption of, or any material revisions to,
equity compensation plans. However, under the listing standards of the NYSE, Harmony is permitted to follow home country
practice in lieu of such requirements and has elected to do so.
The Companies Act and the JSE Listings Requirements require the appointment of a Social and Ethics Committee.
Harmony has appointed a Social Ethics and Sustainability Committee, currently comprised of four independent non-executive
directors. There is no such requirement under the listing standards of the NYSE.
ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.
GLOSSARY OF MINING TERMS
The following explanations are not intended as technical definitions, but rather are intended to assist the general reader in
understanding certain terms as used in this annual report.
Alluvial: the product of sedimentary processes in rivers, resulting in the deposition of alluvium (soil deposited by a river).
All-in sustaining costs: all-in sustaining costs include mine production costs, transport and refinery costs, applicable
general and administrative costs, costs associated with movements in production inventories, ore stockpiles, as well as ongoing
environmental rehabilitation costs as well as transfers for stripping activities and costs associated with royalties. Employee
termination costs are included, however employee termination costs associated with major restructuring and shaft closures are
excluded. The following costs are also included: LED expenditure for continuing operations, share-based payments for
continuing operations, corporate costs, sustaining exploration costs and sustaining capital expenditure including OCD
expenditure and rehabilitation accretion and amortisation for continuing operations. Depreciation costs are excluded. All-in
sustaining costs per ounce and per kilogram are attributable all-in sustaining costs divided by attributable ounces or kilograms of
gold sold.
Auriferous: a substance that contains gold ("Au").
Beneficiation: the process of adding value to gold products by transforming gold bullion into fabricated gold products.
By-products: Any products emanating from the core process of producing gold, including silver and uranium in South Africa
and copper, silver and molybdenum in Papua New Guinea.
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Carbon in leach ("CIL"): Gold is leached from a slurry of gold ore with cyanide in agitated tanks and adsorbed on to carbon
granules in the same circuit. Granules are separated from the slurry and treated to remove the gold.
Carbon in pulp ("CIP"): Gold is leached conventionally from a slurry of gold ore with cyanide in agitated tanks. The leached
slurry passes into the CIP circuit where carbon granules are mixed with the slurry and gold is absorbed onto the carbon.
Granules are separated from the slurry and treated to remove gold.
Carbon in solution ("CIS"): a process similar to CIP except that the gold, which has been leached by the cyanide into
solution, is separated by the process of filtration (solid/liquid separation). The solution is then pumped through six stages where
the solution comes into contact with the activated carbon granules.
Cash costs: total cash costs include site costs for all mining, processing and administration, reduced by contributions from
by-products and include royalties and production taxes. Depreciation, rehabilitation, corporate administration, retrenchment,
capital and exploration costs are excluded. Total cash costs per ounce and per kilogram are attributable total cash costs divided
by attributable ounces or kilogram of gold produced.
Conglomerate: a coarse-grained classic sedimentary rock, composed of rounded to sub-angular fragments larger than
2mm in diameter (granules, pebbles, cobbles, boulders) set in a fine-grained matrix of sand or silt, and commonly cemented by
calcium carbonate, iron oxide, silica or hardened clay.
Cut-off grade: the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material
during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes
material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its
destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be
a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even
stripping ratio.
Decline: an inclined underground access way.
Depletion: the decrease in quantity of ore in a deposit or property resulting from extraction or production.
Development: process of accessing an orebody through shafts or tunnelling in underground mining.
Dilution: unmineralised rock that is by necessity, removed along with ore during the mining process that effectively lowers
the overall grade of the ore.
Economically viable: when used in the context of Mineral Reserve determination, means that the qualified person has
determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral
Reserve is economically viable under reasonable investment and market assumptions.
Electro-winning: the process of removing gold from solution by the action of electric currents.
Elution: removal of the gold from the activated carbon before the zinc precipitation stage.
Exploration: activities associated with ascertaining the existence, location, extent or quality of mineralised material,
including economic and technical evaluations of mineralised material.
Fabricated gold: gold on which work has been performed to turn it into a product, such as jewellery, which differs from a
pure investment product, such as a gold bullion bar.
Footwall: the underlying side of a fault, orebody or stope.
Forward sale: the sale of a commodity for delivery at a specified future date and price.
Gold reserves: the gold contained within proven and probable reserves on the basis of recoverable material (reported as
mill delivered tons and head grade).
Gold produced: refined gold derived from the mining process, measure in ounces or kilograms in saleable form.
Grade: quantity of gold contained in a unit weight of gold-bearing material, generally expressed in ounces per short ton of
ore or in kilograms per metric tonne.
Greenfield: a potential mining site of unknown quality.
Head grade: the grade of the ore as delivered to the metallurgical plant.
Indicated Mineral Resource: that part of a Mineral Resource for which quantity and grade or quality are estimated on the
basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral
Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than
the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable
Mineral Reserve.
Inferred Mineral Resource: that part of a Mineral Resource for which quantity and grade or quality are estimated on the
basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral
Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in
a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological
confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of
economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining
project and may not be converted to a Mineral Reserve.
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Leaching: dissolution of gold from crushed or milled material, including reclaimed slime, prior to absorption on to activated
carbon.
Level: the workings or tunnels of an underground mine that are on the same horizontal plane.
Measured Mineral Resource: that part of a Mineral Resource for which quantity and grade or quality are estimated on the
basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral
Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to
support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral
Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred
Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral
Reserve.
Measures: conversion factors from metric units to US units are provided below.
Metric unit | US equivalent | |
1 tonne | = 1 t | = 1.10231 short tons |
1 gram | = 1 g | = 0.03215 ounces |
1 gram per tonne | = 1 g/t | = 0.02917 ounces per short ton |
1 kilogram per tonne | = 1 kg/t | = 29.16642 ounces per short ton |
1 kilometre | = 1 km | = 0.621371 miles |
1 meter | = 1 m | = 3.28084 feet |
1 centimetre | = 1 cm | = 0.3937 inches |
1 millimetre | = 1 mm | = 0.03937 inches |
1 hectare | = 1 ha | = 2.47105 acres |
Metallurgical plant: a processing plant used to treat ore and extract the contained gold.
Mill delivered tons: a quantity, expressed in tons, of ore delivered to the metallurgical plant.
Milling/mill: the comminution of the ore, although the term has come to cover the broad range of machinery inside the
treatment plant where the gold is separated from the ore.
Mine Call Factor: the ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product
after processing with the amount estimated in the ore based on sampling.
Mineralisation: the presence of a target mineral in a mass of host rock.
Mineralised material: a mineralised body that has been delineated by appropriately spaced drilling and/or underground
sampling to support a sufficient tonnage and average grade of metals to warrant further exploration. Such a deposit does not
qualify as a reserve until a comprehensive evaluation based upon unit cost, grade, recoveries, and other material factors
conclude legal and economic feasibility.
Mineral Reserves: an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the
opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically
mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that
may occur when the material is mined or extracted.
Mineral Resource: a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form,
grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable
estimate of mineralisation, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or
continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become
economically extractable. It is not merely an inventory of all mineralisation drilled or sampled.
Modifying factors: the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then
evaluate to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to
convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are
not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans,
negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific
characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or
project.
Open-pit/Opencast/Open cut: mining in which the ore is extracted from a pit. The geometry of the pit may vary with the
characteristics of the orebody.
Ore: a mixture of mineralised material from which at least one of the contained minerals can be mined and processed at an
economic profit.
Ore grade: the average amount of gold contained in a ton of gold bearing ore expressed in ounces per ton or grams per
tonne.
Orebody: a well-defined mass of mineralised material of sufficient mineral content to make extraction economically viable.
Ounce: one Troy ounce, which equals 31.1035 grams.
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Overburden: the soil and rock that must be removed to expose an ore deposit.
Placer: a sedimentary deposit containing economic quantities of valuable minerals mainly formed in alluvial environments.
Pre-feasibility study: a comprehensive study of a range of options for the technical and economic viability of a mineral
project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred
mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of
mineral processing and an effective plan to sell the product. A pre-feasibility study includes a financial analysis based on
reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant
factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may
be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to
demonstrate, at the time of reporting, that extraction is economically viable. A pre-feasibility study is less comprehensive and
results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher
confidence level than an initial assessment.
Precipitate: the solid product of chemical reaction by fluids such as the zinc precipitation referred to below.
Probable Mineral Reserves: the economically mineable part of an Indicated and, in some cases, a Measured Mineral
Resource
Prospect: an area of land with insufficient data available on the mineralisation to determine if it is economically
recoverable, but warranting further investigation.
Prospecting license: an area for which permission to explore has been granted.
Proven Mineral Reserves: (i) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes;
grade and/or quality are computed from the results of detailed sampling; and (ii) the sites for inspection, sampling and
measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of
reserves are well-established.
Pyrite: a brassy-coloured mineral of iron sulphide (compound of iron and sulphur).
Qualified Person: (i) a mineral industry professional with at least five years of relevant experience in the type of
mineralisation and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of
the registrant and (ii) an eligible member or licensee in good standing of a recognised professional organisation at the time the
technical report is prepared. Regulation S-K 1300 details further recognised professional organisations and also relevant
experience.
Quartz: a mineral compound of silicon and oxygen.
Recovery grade: the actual grade of ore realised after the mining and treatment process.
Reef: a gold-bearing sedimentary horizon, normally a conglomerate band, which may contain economic levels of gold.
Refining: the final stage of metal production in which final impurities are removed from the molten metal by introducing air
and fluxes. The impurities are removed as gases or slag.
Rehabilitation: the process of restoring mined land to a condition approximating its original state.
Sampling: taking small pieces of rock at intervals along exposed mineralisation for assay (to determine the mineral
content).
Shaft: a shaft provides principal access to the underground workings for transporting personnel, equipment, supplies, ore
and waste. A shaft is also used for ventilation and as an auxiliary exit. It is equipped with a surface hoist system that lowers and
raises conveyances for men, materials and ore in the shaft. A shaft generally has more than one conveyancing compartment.
Slimes: the finer fraction of tailings discharged from a processing plant after the valuable minerals have been recovered.
Slurry: a fluid comprising fine solids suspended in a solution (generally water containing additives).
Smelting: thermal processing whereby molten metal is liberated from beneficiated mineral or concentrate with impurities
separating as lighter slag.
Spot price: the current price of a metal for immediate delivery.
Stockpile: a store of unprocessed ore.
Stope: the underground excavation within the orebody where the main gold production takes place.
Stripping: the process of removing overburden to expose ore.
Sulphide: a mineral characterised by the linkages of sulphur with a metal or semi-metal, such as pyrite, FeS.
Syncline: a basin-shaped fold.
Tailings: finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored
in a designed dam facility.
Tailings dam (slimes dam): Dam facilities designed to store discarded tailings.
Ton: one ton is equal to 2,000 pounds (also known as a “short” ton).
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Tonnage: quantities where the ton or tonne is an appropriate unit of measure. Typically used to measure reserves of gold-
bearing material in situ or quantities of ore and waste material mined, transported or milled.
Tonne: one tonne is equal to 1,000 kilograms (also known as a “metric” tonne).
(in this Annual Report we have used metric tonnes unless specified otherwise and we may have used Ton(s) and Tonne(s)
interchangeably)
Trend: the arrangement of a group of ore deposits or a geological feature or zone of similar grade occurring in a linear
pattern.
Unconformity: the structural relationship between two groups of rock that are not in normal succession.
Waste: ore rock mined with an insufficient gold content to justify processing.
Waste rock: the non-mineralised rock and/or rock that generally cannot be mined economically that is hoisted to the
surface for disposal on the surface normally close to the shaft on an allocated dump.
Yield: the actual grade of ore realised after the mining and treatment process.
Zinc precipitation: a chemical reaction using zinc dust that converts gold solution to a solid form for smelting into unrefined
gold bars.
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CERTAIN ABBREVIATIONS
Ag .......................................................................................................... | Silver |
Au .......................................................................................................... | Gold |
b ............................................................................................................. | Barrs |
Bi ........................................................................................................... | Bismuth |
cm.......................................................................................................... | Centimetre |
cmg/t ..................................................................................................... | Centimetre-grams per metric tonne |
Cu .......................................................................................................... | Copper |
dmt ........................................................................................................ | Dry metric tonne |
Fe .......................................................................................................... | Iron |
g ............................................................................................................. | Gram |
g/t .......................................................................................................... | Grams per metric tonne |
ha .......................................................................................................... | Hectare |
kg ........................................................................................................... | Kilogram |
kg/t ........................................................................................................ | Kilogram per metric tonne |
km.......................................................................................................... | Kilometre |
km2 ........................................................................................................ | Square kilometre |
koz ......................................................................................................... | Thousand troy ounces |
ktpm ...................................................................................................... | Thousand kilograms per month |
lb ............................................................................................................ | Pound |
m............................................................................................................ | Meter |
M............................................................................................................ | Million |
mm ........................................................................................................ | Millimetre |
Moz ....................................................................................................... | Million troy ounces |
Mt .......................................................................................................... | Million metric tonnes |
Mtpa ...................................................................................................... | Million metric tonnes per annum |
Ni ........................................................................................................... | Nickel |
oz ........................................................................................................... | Troy ounce |
oz/kg ..................................................................................................... | Ounce per kilogram |
ppm ....................................................................................................... | Parts per million |
Pb .......................................................................................................... | Lead |
R/kg ....................................................................................................... | South African Rand per kilogram |
R/t .......................................................................................................... | South African Rand per tonne |
t .............................................................................................................. | Metric tonne |
t/m3 ........................................................................................................ | Metric tonne per cubic meter |
U ............................................................................................................ | Uranium |
US$/oz .................................................................................................. | United States dollars per troy ounce |
Zn .......................................................................................................... | Zinc |
ITEM 16I: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
ITEM 16J: INSIDER TRADING POLICIES
Harmony has adopted a formal Insider Trading Policy that governs the purchase, sale, and other dealings in the
Company’s securities by directors, prescribed officers, company secretaries, employees involved in financial reporting, and
other designated insiders. The policy is designed to promote compliance with the South African Financial Markets Act, 2012, and
the JSE Listings Requirements.
The policy prohibits trading in Harmony securities while in possession of material non-public information and includes
provisions to prevent the unlawful disclosure of such information. It also requires pre-clearance of trades by directors and
prescribed officers and imposes mandatory blackout periods around the release of financial results and other sensitive corporate
events.
The policy is communicated to all relevant employees and is enforced through internal compliance procedures, including
training, monitoring, and disciplinary measures for violations.
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Differences from US. Domestic Issuer Practices
While Harmony’s insider trading policy is broadly aligned with the principles underlying US securities laws, there are
several notable differences:
Aspect | Harmony Gold (South Africa) | Typical US Practice |
Legal Framework | Financial Markets Act ("FMA") and JSE Listings Requirements | US Securities Exchange Act of 1934, as amended and SEC Rule 10b-5 thereunder |
Blackout Periods | From end of reporting period until results are published; during cautionary announcements | Typically 30 days before earnings release until 2 days after |
Pre-Clearance Requirements | Required for directors, prescribed officers, company secretary, and major subsidiary directors | Applies to Section 16 officers and key employees |
Scope of Covered Persons | Includes associates, family members, controlled entities, and investment managers | Generally includes officers, directors, and certain employees; associates less emphasised |
Policy Filing | Not filed with regulators; disclosed in narrative form | Often filed or referenced in proxy statements or on an annual report on Form 10-K |
Disclosure of Trades | Within 3 business days to company secretary; public disclosure via SENS within 24 hours | Typically within 2 business days via Form 4 or Form 5 filings with the SEC |
Enforcement Mechanism | Internal compliance and disciplinary action under South African labour law; criminal penalties | Internal compliance plus SEC enforcement and civil penalties |
Notification to Associates | Formal written notification required; disclosure obligations imposed | Not commonly required in US policies |
Validity of Clearance to Trade | Valid for 5 business days unless within a closed period | Typically valid until next blackout period or material event |
Risk Management and Strategy
See “Integrated Annual Report for the 20-F 2025 – Harmony – Operating context" on pages 16 to 25.
both internal teams and third-party service providers. Harmony has established protocols for continuous monitoring and
proactive management of cybersecurity threats through daily and weekly meetings and continuous interactions with its 24X7
outsourced Security Operations Centre (“SOC”). The SOC regularly engages with Harmony’s internal cybersecurity team to
address identified threats and vulnerabilities.
Harmony’s strategy includes monthly cross-departmental management meetings where cyber risk is discussed. External
penetration tests and internal phishing simulations are conducted bi-annually to evaluate and enhance incident response
capabilities and employee awareness. Cyber incident response plans are documented including detailed playbooks designed to
enable timely response and recovery in the event of a cyber incident. Cybersecurity processes are fully integrated into
Harmony's broader enterprise risk management system.
The continuous engagement between Harmony’s internal cybersecurity team, technology stakeholders, and the SOC
underscores Harmony’s comprehensive approach to risk assessment and mitigation. The head of the department for
cybersecurity (''Manager: CyberSecurity''), meets with the Group Chief Technology and Information Officer (“GCTIO”) on a
weekly basis. In addition, quarterly Technology and Information Systems Steering Committee meetings including representatives
from Group Internal Audit, Enterprise Risk Management, Security, Operations, Safety, and Compliance.
•Consulting with external experts to provide specialized cybersecurity services, including penetration testing.
•Utilising an internal training platform to deliver and monitor cyber awareness training modules ensuring employees remain
current on best practices.
•Collaborating with operational technology to address specific cybersecurity challenges in operational environments; and
•Outsourcing its ’s SOC to a managed service provided that operates continuously, providing round-the-clock monitoring
and response to cybersecurity threats.
•Periodic reviews are also conducted by Group Internal Audit using the National Institute of Standards and Technology
framework (''NIST framework") and the Center for Internet Security Framework ("CIS framework") as benchmarks to
assess cybersecurity readiness.
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Harmony engages with vendors that have access to the its network, requiring their compliance with Harmony's
Cybersecurity Awareness Training mandate. This initiative emphasizes completion of training campaigns and awareness of key
cyber risks, such as phishing. Harmony has also introduced a process to include cybersecurity clauses in all new vendor
contracts to ensure service level agreements, roles and responsibilities for managing cyber threats are clearly defined. For
existing contracts , these clauses are incorporated upon amendment or renewal. This initiative is part of a broader effort to
embed Harmony’s cybersecurity standards into all third-party relationships.
Harmony has established governance procedures to manage cybersecurity threats. Senior management , including the
GCTIO, the Manager: Cybersecurity and various management committees,such as the Enterprise Architecture, Change/Project
Delivery, and Technology Steering Committees, are responsible for assessing cybersecurity risks and formulating mitigation
strategies. These forums align with the Group Technology Strategy to ensure a coordinated and consistent approach.
The GCTIO is accountable for Harmony’s technology and information functions, while the Manager: Cybersecurity leads
the cybersecurity strategy and related initiatives. Harmony also engages external legal counsel to provide specialised advice on
cybersecurity compliance and risk management. This combination of internal and external expertise ensures proactive oversight
and continuous improvement of the cybersecurity framework.
Structured reporting and communication processes ensure that management remains informed on cybersecurity matters,
including threat prevention, detection, mitigation and remediation. The Manager: Cybersecurity provides . regular updates to the
GCTIO during weekly one-on-one meetings and monthly Group Technology Management Committee sessions. This structured
communication flow enables the GCTIO to provide updates to the Executive Committee and the Audit and Risk Committee.
Group Enterprise Risk Management and Group Internal Audit have incorporated cybersecurity within their mandates,
reinforcing its importance across the organisation. Representatives from Group Internal Audit, Group Risk Management,
Security and Compliance participate in quarterly Technology and Information Steering Committee meetings. From a disclosure
perspective, the Executive Committee assesses the materiality of reported cybersecurity incidents in accordance with applicable
disclosure standards.
Key Cybersecurity Personnel
B Com (Commercial Computer Science) - University of Pretoria
MBA International Business
Doctor of Philosophy – Kairos University, USA
The Group CIO is responsible for managing the entire technology infrastructure of Harmony, including hardware, software,
networks, and data centres, ensuring that these systems are reliable, secure, and scalable to meet the organisation's evolving
needs.
Stanley Pautz – Manager: Cybersecurity
B Com (Internal Audit), University of Pretoria
Certified Information Systems Auditor - ISACA
Certified in Risk and Information Systems Control - ISACA
CIA – Certified Internal Auditor (IIA – not maintained)
The HOD: CyberSecurity ensures that the entire technology landscape is overseen, secure and safe in line with the business
and technology strategies.
Dr Christiaan Roos - Lead: Cybersecurity operations
D Com (PhD), IT Audit, IT Governance and Ethical Hacking, University of Johannesburg
CEH – Certified Ethical Hacker
Project Management Professional (PMP), Project Management Institute
regularly informed of cybersecurity threats and the measures taken to address them. The GCTIO, supported by the Manager:
Cybersecurity, provides regular updates to these bodies, including discussions of material cybersecurity incidents,
vulnerabilities, defences, and planned response strategies.
The GCTIO attends Audit and Risk Committee meetings and reports back any feedback or recommendations to
management. Together, the GCTIO and the Manager: Cybersecurity ensure that material cyber risks are appropriately escalated
to the Board via the Audit and Risk Committee. Additionally, the Chief Audit Executive, whose mandate includes cybersecurity,
maintains a direct reporting line to both the Audit and Risk Committee and the Chairperson of the Board, providing multiple
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As of the date hereof, Harmony is not aware of any cybersecurity threats or incidents that have materially affected or are
reasonably likely to materially affect its business strategy, results of operations or financial condition. Harmony continually
assesses and monitors threats and vulnerabilities.
For further discussion of cybersecurity risks that may materially affect Harmony's business, financial condition, results of
operations, cash flows, ability to pay dividends and stock price, “Item 3D: Risk Factors—Other Regulatory and Legal Risks -
Breaches in our IT security processes and violations of data protection laws may adversely impact our business activities and
lead to public and private censure, regulatory penalties, fines and/or sanctions and may damage our reputation'' of this Form
20-F.
PART III
ITEM 17 FINANCIAL STATEMENTS
Not applicable.
ITEM 18 FINANCIAL STATEMENTS
The following consolidated financial statements, together with the report of Ernst & Young Inc Johannesburg, Republic of
(PCAOB ID No. 1308 ), are incorporated by reference to exhibit 99.1 and shall be deemed filed as part of the Harmony 2025
Form 20-F:
•Index to Financial Statements;
•Reports of Independent Registered Public Accounting Firms; and
•Consolidated Financial Statements.
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ITEM 19. EXHIBITS
1.1 | Amended Memorandum of Incorporation of Harmony dated 1 February 2018 (incorporated by reference to Harmony’s annual report for the fiscal year ended 30 June 2019 filed on 24 October 2019) https://www.sec.gov/Archives/edgar/data/1023514/000162828019012525/exhibit1amendedmoi.htm |
2.1 | Notice of annual general meeting dated 24 October 2025 to be held on 26 November 2025 (filed herewith) |
2.2 | Amended and Restated Deposit Agreement among Harmony, Deutsche Bank Trust Company Limited, as Depositary, and owners and holders of American Depositary Receipts, dated as of 7 October 2011 (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2011, filed on 24 October 2011) https://www.sec.gov/Archives/edgar/ data/1023514/000119312511278584/d242812dex22.htm |
2.3 | Form of ADR (included in Exhibit 2.2) (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2011, filed on 24 October 2011) https://www.sec.gov/Archives/edgar/data/1023514/000119312511278584/ d242812dex22.htm |
4.1 | Deed of Extinguishment of Royalty (Wafi-Golpu Project) dated 16 February 2009 (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2009, filed on 26 October 2009) https://www.sec.gov/Archives/edgar/ data/1023514/000095012309053204/u07679exv4w25.htm |
4.2 | Common terms agreements for Harmony Gold Mining Company Limited with Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division) (as Original Lender, Original Hedge Provider, Global coordinator and Bookrunner, Mandated Lead Arranger and Sustainability Coordinator) and Nedbank Limited (London Branch) (as Original Lender) and Absa Bank Limited (acting through its Corporate and Investment Banking Division) (as Original Lender, Original Hedge Provider, Global Goordinator and Bookrunner, Mandated Lead Arranger, Sustainability Coordinator, Sustainability Agent and Facility Agent) and Firstrand Bank Limited (acting through its Rand Merchant Bank Division) (as Mandated Lead Arranger, Original Hedge Provider and Original Lender) and J.P. Morgan Securities PLC (as Lead Arranger) and Citibank, N.A., South African branch (as Lead Arranger and Original Lender) and HSBC Bank PLC - Johannesburg branch (as Arranger and Original Lender) and State Bank of India (acting through its Johannesburg Branch) (as Mandated Lead Arranger and Original Lender) and JPMORGAN Chase Bank, N.A., London branch (Original Lender) and Project and Trade Finance core fund (as Original Lender) and Federated Hermes Project and Trade Finance Tender Fund (as Original Lender) and Federated Hermes Project and Trade Finance Master Fund (as Original Lender) and Bank of China Limited, Johannesburg branch (as Mandated Lead Arranger and Original Lender) and Goldman Sachs International Bank (as Original Lender) and Industrial Development Corporation of South Africa Limited (as Original Lender) and Investec Bank Limited (acting through its Investment Banking division: Corporate Solutions) (as Original Lender and Lead Arranger) and Ninety One SA Proprietary Limited (acting as agent and portfolio manager of Ninety One Assurance Limited) (as Original Lender) and HSBC Bank PLC (as Original Hedge Provider) and JPMORGAN Chase Bank, N.A. (as Original Hedge Provider) and Citibank N.A., London branch (as Original Hedge Provider). (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027359/commontermsagreement_execu.htm |
4.3 | Common terms agreements for Harmony Gold Mining Company Limited with Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division) (as Original Lender, Original Hedge Provider, Global coordinator and Bookrunner, Mandated Lead Arranger and Sustainability Coordinator) and Nedbank Limited (London Branch) (as Original Lender) and Absa Bank Limited (acting through its Corporate and Investment Banking Division) (as Original Lender, Original Hedge Provider, Global Goordinator and Bookrunner, Mandated Lead Arranger, Sustainability Coordinator, Sustainability Agent and Facility Agent) and Firstrand Bank Limited (acting through its Rand Merchant Bank Division) (as Mandated Lead Arranger, Original Hedge Provider and Original Lender) and J.P. Morgan Securities PLC (as Lead Arranger) and Citibank, N.A., South African branch (as Lead Arranger and Original Lender) and HSBC Bank PLC - Johannesburg branch (as Arranger and Original Lender) and State Bank of India (acting through its Johannesburg Branch) (as Mandated Lead Arranger and Original Lender) and JPMORGAN Chase Bank, N.A., London branch (Original Lender) and Project and Trade Finance core fund (as Original Lender) and Federated Hermes Project and Trade Finance Tender Fund (as Original Lender) and Federated Hermes Project and Trade Finance Master Fund (as Original Lender) and Bank of China Limited, Johannesburg branch (as Mandated Lead Arranger and Original Lender) and Goldman Sachs International Bank (as Original Lender) and Industrial Development Corporation of South Africa Limited (as Original Lender) and Investec Bank Limited (acting through its Investment Banking division: Corporate Solutions) (as Original Lender and Lead Arranger) and Ninety One SA Proprietary Limited (acting as agent and portfolio manager of Ninety One Assurance Limited) (as Original Lender) and HSBC Bank PLC (as Original Hedge Provider) and JPMORGAN Chase Bank, N.A. (as Original Hedge Provider) and Citibank N.A., London branch (as Original Hedge Provider). (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027359/commontermsagreement_execu.htm |
4.4 | Revolving USD Facility Agreement, amongst Harmony Gold Mining Company Limited (as Borrower and (Obligors' Agent) with The Financial Institutions Listed In Schedule 1 and Absa Bank Limited (acting through its Corporate and Investment Banking division) (as Facility Agent) (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027359/ revolvingusdfacilityagreem.htm |
4.5 | Term Facility A Agreement amongst Harmony Gold Mining Company Limited (as Borrower and Obligors' Agent) with The Financial Institutions Listed in Schedule 1 and Absa Bank Limited (acting through its Corporate and Investment Banking division) (as Facility Agent) (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027359/termfacilityaagreement_exe.htm |
4.6 | Term Facility B Agreement amongst Harmony Gold Mining Company Limited (as Borrower and Obligors' Agent) with The Financial Institutions Listed in Schedule 1 and Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division) (as Sustainability Coordinator) and Absa Bank Limited (acting through its Corporate and Investment Banking division) (as Sustainability Agent, Sustainability Coordinator and Facility Agent) (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/ data/1023514/000162828022027359/termfacilitybagreement_exe.htm |
4.7 | Wafi-Golpu Joint Venture Agreement, dated 22 May 2008 between Wafi Mining Limited, Newcrest PNG 2 Limited and Wafi-Golpu Services Limited (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2017, filed on 26 October 2017) https://www.sec.gov/Archives/edgar/data/1023514/000162828017010249/exhibit439wafi-golpujointv.htm |
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4.8 | Harmony Gold Mining Company Limited Deferred Share Plan 2018 Scheme Rules (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2019, filed on 24 October 2019) https://www.sec.gov/Archives/edgar/data/1023514/000162828019012525/exhibit452deferredsharepla.htm |
4.9 | ARM - BBEE Loan Agreement, dated 28 June 2021, entered between Harmony Gold Mining Limited and the trustees for the time being of ARM - Broad Based Economy Empowerment Trust (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2021, filed on 29 October 2021) https://www.sec.gov/Archives/edgar/data/1023514/000162828021020809/exhibit418hmyloanagreement.htm |
4.10 | Share sale deed, dated 6 October 2022 entered into between Copper Mountain Mining Corporation (Seller), Harmony Gold (Australia) Pty Limited (Buyer) and Harmony Gold Mining Company Limited (Buyer's Guarantor) (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2023, filed on 31 October 2023) https://www.sec.gov/ Archives/edgar/data/1023514/000162828023035632/sharesaledeed.htm |
4.11 | Harmony ESOP trust subscription and contribution agreement (filed herewith) (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended June 30, 2024, filed on October 31, 2024) https://www.sec.gov/Archives/edgar/ data/1023514/000162828024044479/harmonyesoptrustagreemen.htm |
4.12 | Consolidated Scheme Implementation Documents – 27 May 2025. Includes the Scheme Implementation Deed, Implementation Deed, and Side Letter – collectively entered into by MAC Copper Limited, Harmony Gold (Australia) Pty Limited, and Harmony Gold Mining Company Limited, (filed herewith) |
4.13 | The Syndicated Facilities Agreement, dated 26 June 2025, among Harmony Gold Mining Company Limited, Harmony Gold (Australia) Pty Limited, Citibank N.A., London Branch, J.P. Morgan Securities Plc, Macquarie Bank Limited, Absa Bank Limited (acting through its Corporate and Investment Banking division), FirstRand Bank Limited (acting through its Rand Merchant Bank division), Nedbank Limited, acting through its Nedbank Corporate and Investment Banking division, J.P. Morgan SE and others relating to a US$250,000,000 dollar term bridge loan facility and a US$1,000,000,000 dollar term bridge loan facility (filed herewith) |
8.1 | Significant subsidiaries of Harmony Gold Mining Company Limited (filed herewith) |
†12.1 | Certification of the principal executive officer required by Rule 13a-14(a) or Rule 15(d)-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (submitted herewith) |
†12.2 | Certification of the principal financial officer required by Rule 13a-14(a) or Rule 15(d)-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (submitted herewith) |
†13.1 | Certification of the principal executive officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (submitted herewith) |
†13.2 | Certification of the principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (submitted herewith) |
††15.1 | Integrated Annual Report for the 20-F 2025 dated 31 October 2025 (filed herewith) |
15.2 | Letter from PricewaterhouseCoopers Inc. to the Securities and Exchange Commission regarding a change in registrant's certifying accountant https://www.sec.gov/Archives/edgar/data/1023514/000162828023035632/changeinauditors.htm |
96.1 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Target Gold Mine, Free State Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/trgt-sxk1300trs2024.htm |
96.2 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Joel Mine, Free State Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027351/joel-sxk1300trs2022.htm |
96.3 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Free State Surface Operations, Free State Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027351/ freestatesurfaceoperations.htm |
96.4 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Moab Khotsong Operations, Free State Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/moabkhotsongs-k1300trs2024.htm |
96.5 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Mponeng Mine, Carletonville, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/mponeng-sxk1300trs2024.htm |
96.6 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Kalgold Mine, North West Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/kalgold-sxk1300trs2024.htm |
96.7 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Mine Waste Solutions (MWS) and West Wits Operations, North West and Gauteng Provinces, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20- F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/ data/1023514/000162828024044479/mws-sxk1300trs2024.htm |
96.8 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Kusasalethu Mine, Gauteng Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027351/kusasalethu-sxk1300trs2022.htm |
96.9 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Doornkop Mine Gauteng Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/doornkop-sxk1300trs2024.htm |
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96.10 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Hidden Valley Mine, Morobe Province, Papua New Guinea (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2022, filed on 31 October 2022) https://www.sec.gov/Archives/edgar/data/1023514/000162828022027351/hiddenvalley-sxk1300trs2022.htm |
96.11 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Wafi-Golpu Project, Morobe Province, Papua New Guinea (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/wafi-golpuxsxk1300trs2024.htm |
96.12 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Tshepong North, Free State Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/tshepongnorthtshepong-sxk1.htm |
96.13 | Technical Report Summary of the Mineral Resources and Mineral Reserves for Tshepong South, Free State Province, South Africa (incorporated by reference to Harmony’s Annual Report on Form 20-F for the fiscal year ended 30 June 2024, filed on 31 October 2024) https://www.sec.gov/Archives/edgar/data/1023514/000162828024044479/tshepongsouthphakisas-k130.htm |
96.14 | Technical Report Summary of the Eva Copper Project, North West Queensland, Australia (filed herewith) |
97.1 | Executive Compensation Recovery Policy (filed herewith) |
99.1 | Consolidated Financial Statements 2025 dated 31 October 2025 (filed herewith) |
†This certification will not be deemed “filed” for purposes of Section 18 of the of 1934, as amended (the “Exchange Act”), or otherwise
subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the
Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except to the extent that the Registrant specifically
incorporates it by reference.
††Certain of the information included in Exhibit 15.1 is incorporated by reference into the Harmony 2025 Form 20-F, as specified elsewhere
in this report, in accordance with Rule 12b-23(a) of the Exchange Act. With the exception of the items so specified, the Integrated Annual
Report for the 20-F 2025 is not deemed to be filed as part of Harmony 2025 Form 20-F.
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Linkbase Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
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SIGNATURES
Pursuant to the requirements of Section 12 of the Exchange Act, we hereby certify that we meet all of the requirements for
filing on Form 20-F and that we have duly caused this annual report to be signed on our behalf by the undersigned, thereunto
duly authorised.
HARMONY GOLD MINING COMPANY LIMITED
By: /s/ Beyers Nel
Beyers Nel
Chief Executive Officer
Date: 31 October 2025
Harmony Gold Mng
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Oct 17, 2025
[SCHEDULE 13G] HARMONY GOLD MINING CO LTD SEC Filing