Harmony International gold mine operations increased by 27%

Production from the Hidden Valley mine increased by 27% to 2 934kg (94 330oz) in 9M FY23 from 2 306kg (74 139oz) in 9M FY22. Volumes on the overland conveyor belt have returned to normalised levels resulting in the significantly improved production compared to the previous reporting period.

Tonnes milled increased by 28% to 2.94 million tonnes from 2.29 million tonnes in the previous reporting period. Recovered grades however decreased by 1% to 1.00g/t from 1.01g/t as it continues with waste stripping to access the higher grade portion of the ore body.

Harmony expects improvements in both silver and gold grades from Hidden Valley mine in the final quarter of the year as the mining operations reach the higher grade Big Red portion of the ore body.

Cash operating costs during this reporting period improved by 11% to R585 122/kg (US$1 042/oz) from R658 725/kg (US$1 358/oz). AISC also improved by 6% to R1 168 565/kg (US$2 081/oz) from R1 239 065/kg (US$2 555/oz).

Operating free cash flow improved to R27 million (US$2 million) in 9M FY23 from a negative R457 million (US$30 million) in the previous reporting period.

During the third quarter, work continued on the Eva Project study update, with the commencement of sterilisation and resource definition drilling on site to further inform study outcomes and proposed site infrastructure location.

The signing of the non-binding Memorandum of Understanding on the 6th of April 2023 is a significant milestone towards the permitting of the Wafi-Golpu project in Papua New Guinea. It sets out the key fiscal and non-fiscal terms between the parties to be adopted in the Mining Development Contract. This includes, but is not limited to, State equity participation, royalties, taxes and legislative and fiscal stability. The terms negotiated are expected to maintain returns similar to those shown by the 2018 feasibility study update.

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