Harmony Gold Mining Company Ltd.

Harmony Gold Mining Company Ltd. is a senior gold producer headquartered in Randfontein, South Africa, operating primarily in Africa. The company's portfolio consists of 14 projects, comprising 11 operating mines, 2 development, and 1 advanced exploration project. Key assets include Moab Khotsong, Mponeng, and Wafi-Golpu. The business model integrates 74 years of operational experience with a dual focus on conventional mining and the large-scale retreatment of historical tailings facilities. This approach is supported by a comprehensive value chain encompassing exploration, development, processing, and responsible closure. The organization's competitive differentiation is built upon a long, diversified production profile, a robust balance sheet, and a disciplined capital allocation framework. Operational methodology emphasizes a four-layered risk management system to ensure safety and productivity. The enterprise leverages its extensive experience in complex operating environments to manage socio-political challenges effectively. A core competency is the ability to improve asset quality and margins through disciplined project execution and business improvement initiatives, which include enhancing efficiencies and implementing innovative technologies. The company's structure is designed to support both organic growth from its existing asset base and value-accretive acquisitions, aiming to lower its overall risk profile while improving operational metrics.

The corporate strategy is anchored by four interdependent pillars: Responsible Stewardship, Operational Excellence, Cash Certainty, and Effective Capital Allocation. Responsible stewardship focuses on embedding ESG principles into all business practices to create shared value. Operational excellence is pursued through disciplined engineering, grade management, and business improvement initiatives to ensure consistent, predictable production and cost control. Cash certainty is maintained through a strong balance sheet, a net debt-to-EBITDA target of less than 1x, and a hedging strategy to mitigate market volatility. The capital allocation framework prioritizes investments in a sequenced manner, starting with safety and optimization, followed by organic growth, debt repayment, value-accretive inorganic growth, and finally, shareholder returns. Investment decisions are governed by strict criteria, including a preference for larger, higher-margin assets, manageable capital intensity, and projects that generate returns exceeding the cost of capital while compensating for risk. The long-term objective is to enhance portfolio quality, expand margins, and diversify the business base.

Executive leadership is headed by CEO Peter Steenkamp, who was appointed on January 1, 2016, and is recognized for his role in the company's growth and success. The board of directors consists of 13 members, with 9 classified as independent non-executive directors, ensuring a strong majority of independent oversight. Governance is structured through 6 standing committees: Audit and risk, Social and ethics, Remuneration, Nomination, Investment, and Technical. The governance framework adheres to the principles of King IV and is designed to ensure ethical leadership and accountability. Executive remuneration is directly linked to performance through a total incentive plan based on a balanced scorecard. This scorecard measures performance against specific, weighted metrics including total shareholder return, production costs, net free cash flow, reserve additions, and key ESG indicators such as safety performance, thereby aligning management incentives with long-term, sustainable value creation for all stakeholders.

The sustainability strategy is centered on a commitment to achieve net-zero carbon emissions by 2045, supported by a decarbonization plan that includes a renewable energy program targeting 583 MW of capacity. This program is being implemented in phases, with phase 1 already operational and phase 2a scheduled to begin construction in FY25. The company has Science Based Targets initiative (SBTi) approved goals to reduce absolute scope 1 and 2 emissions by 63% by FY36. Social initiatives are highlighted by a landmark 5-year wage agreement, the first of its kind in the company's history, which provides long-term labor cost stability. A systemic safety culture transformation program, known as Thibakotsi, is in place to drive progress toward a zero-harm workplace. The organization also established an Employee Share Ownership Plan (ESOP) Trust and a Community Trust to facilitate broader stakeholder value sharing. Environmental stewardship includes best-practice management of 84 tailings storage facilities and a water management strategy that has earned a CDP score of 'A'.

Major shareholders provide a stable ownership base, with the Public Investment Corporation of South Africa holding 14.72%, Van Eck Associates Corporation holding 11.92%, and African Rainbow Minerals Ltd holding 11.80% as of June 30, 2024. A significant structural change occurred on October 1, 2020, with the acquisition of the remaining South African operations from AngloGold Ashanti Limited, which materially reshaped the company's operational portfolio. The company maintains a key joint venture with Newmont Corporation for the Wafi-Golpu Project, facilitating shared risk and expertise for the development of this asset. In 2024, the ownership structure was further broadened through the approval and issuance of shares to the Harmony ESOP Trust and the Harmony Community Trust, formalizing long-term value-sharing mechanisms with employees and community stakeholders. These structural elements reflect a strategy of combining organic development with strategic acquisitions and partnerships to drive growth and enhance shareholder value.