Harmony Gold Mining Company Limited

Good. Can we start? Good morning. My name is Peter Steenkamp. I'm the CEO of Harmony. And it's a pleasure to be here today presenting the full year results for the financial year that ended on the 30th of June, 2024. Please note of the safe harbor statement. And allow me to start with a short update on Harmony and our strategy. Harmony is a gold mining specialist with a growing international copper footprint. We also produce small amounts of silver and uranium, and we have over 74 years of gold mining experience in South Africa, and we have been operating for over two decades in Papua New Guinea. Our mineral resources and mineral reserve declaration of close to 137 million ounces and 40 million ounces of gold and gold equivalents respectively positions Harmony as a significant global mining company. Currently, our diversified portfolio of operating assets include nine underground mines, two open pit mines, and a significant tailings retreatment business. Service retreatment is a great ESG story with the potential for another 100 years of hydro mining across South Africa. And at present, over 90% of our current production comes from South African gold. Now, based on the current planning parameters, we expect approximately 20% of future production to be copper within the next 10 years. Now, copper production will be from our Tier 1 Wafi Gold Proof Project in Papua New Guinea and the EVA Copper Project in Australia. These copper projects will be transformational, moving Harmony further down the global cost curve and diversify it into a future-facing metal. Our excellent FY24 results perfectly demonstrate the benefits and the value we have created for all our stakeholders. This is what we call mining with purpose. Australia is aimed at producing safe, profitable ounces and improving margins through operational excellence and value-creative acquisitions. All decisions are underpinned by our four strategic pillars, namely responsible stewardship, operational excellence, cash certainty, and effective capital allocation. Major capital is being allocated towards the higher-quality assets, namely Moab, Kotsong, and Penang, as well as key projects that will lower our risk profile, such as EVA Copper and Wafi Gold Group. This ensures we continue growing our reserves and delivering improved margins and high profitability, especially at these high-grade assets. We continue to invest in our optimized asset, or the red quadrant, which you will recall was the old Harmony, and to maintain flexibility and ensure optimal cash generation over the life of the assets. Investing in our existing assets is essential for funding our growth paths for the future. Harmony has adopted a proactive approach to safety through the use of leading indicators. Our focus has shifted towards the integration and sustainability of a safety culture, and we are emphasizing the importance of personal ownership of safety in the workplace. While we have implemented comprehensive systems and controls, it ultimately remains our responsibility as Harmonites to work safely at all times. We have a centralized operational risk management team providing support to all operations, and are using leading indicators to help drive further safety improvements. Through digitization and modernization, we have real-time dashboards to monitor and continue to improve these leading indicators. We are currently monitoring over 9 million golden control data points. This ensures we prevent significant unwanted events before they occur. And as a company, we have embraced a culture of learning and strive for continuous improvement. Our cultural transformation journey has reached about 80% completion to date, and we are progressing this through regular visible felt leadership engagements along with other safety awareness initiatives across the operations. We continue to equip our teams through ongoing leadership development and training. I'm confident that we have the correct safety strategy in place and firmly believe that zero loss of life is possible. In the past financial year, Harmony delivered an exceptional combined performance across its operations. This achievement was a result of clear strategic intent and successful execution, enabling us to deliver above plan and capitalize on higher gold price. This results in a record year for the company. We aim to excel at what we do, and I believe that we achieved this goal. As I touched on the previous slide, safety is embedded in our strategy. The last time injury frequency rate per million ounces worked for FY24 was at 5.53. This has remained below the 6 for three consecutive financial years and indicates we are on the right track. We are delivering on our ESG commitments evident in our 1.2 billion employee share ownership scheme and our expanded renewable energy program. Coal production increased by 6% to 1.56 million ounces, beating our upward revised guidance. Underground recover grades also exceeded the guidance, improving by 6% to 6.11 grams per ton. Our costs remained under control, with oil and sustaining costs coming in at R901,000 per kilogram, which was well below the guidance. In dollars, oil and sustaining costs decreased by 4% to $1,500 per ounce. And operating free cash flow increased by over 100% to record 13 billion or 681 million US dollars at a margin of 22%. This was driven by high recovered grades and strong gold prices. As a result, our balance sheet has strengthened further and is in a net cash position of 2.9 billion or 159 million US dollars. Now headline earnings per share increased by 132%. to 1,852 South African cents, or 99 US cents per share. In line with our dividend policy, we are paying a full-year dividend of 94 South African cents, or 5 cents per share. This demonstrates confidence in our planning as we aim to reward our shareholders alongside our growth aspirations. Our FD by Pelo Lucubo will unpack the financials in detail a little bit later. So responsible stewardship is embedded in our operating model. Our sustainable development strategy aims to reduce risk while maximizing opportunities, leaving a positive impact through shared value creation. As a result, our actions, we continue to receive positive external recognition for our embedded approach to sustainability and disclosure transparency. We have been included in the Fujifilm Good Index for the seventh consecutive year. Our inclusion in the Bloomberg Gender Equality Index for six consecutive years demonstrates that we embrace gender diversity, inclusivity, and treat all our employees fairly. Our best practice water management strategy has once again resulted in a score A from the CDP. As you can see, mining with purpose is what we are all about. Now, grading our quality answers is critical for long-term success and longevity. We continue to invest in converting resources to reserves while striking a balance between capital intensity and shareholder returns. Albany has a globally significant mineral resource and reserve base. We have demonstrated that the reserve conversion is still one of the most cost-effective ways of creating value. There is therefore a substantial opportunity to continue investing in this exciting gold-copper story. Our mineral reserves increased by around 2% on the back of an Pune extension, and EVO copper is expected to underpin further resource conversion once the study is complete. Our production profile has been significantly de-risked, and further future production will come from a combination of South African surface and underground gold, Papua New Guinea copper and gold, and Australian copper. As we target growth, we will only pursue those opportunities that meet our strict investment criteria. and improve the quality of our portfolio. Further expansion would either be through the acquisition of a late-stage project, or preferably through the acquisition of a producing asset that immediately cash flow positive for Harmony. Any new investment opportunities must, first of all, lower our overall risk profile, improve our margins, deliver meaningful returns, extend our production profile with quality answers, and of course, remain affordable through the cycle. The acquisition of Mpuneng, Mohamkotsong and Mineway Solutions were transformational. When we acquired this asset, we had hoped that we would be able to extend the lives of these assets. Now, after comprehensive studies, these acquisitions all received approval for extension. We are pleased that the first deposition of the Carrera-Rand extension at Mineway Solutions, our mega tailings free treatment operation, will happen in October. This project extends the life of Mineway Solutions to 14 years, And encouragingly, the streaming contract concludes towards the end of this calendar year. Once this ends, we expect to see a 20% uplift in the gold price received from mine waste solutions. The extension projects at Moab Kotsong and Mpuneng are progressing well, and we have extended the life of these mines to at least 20 years. Declined work at Moab Kotsong and the development of the carbon leader section of Mpuneng are underway. We have also commenced rehabilitation of the Totona shaft pillar, which we will be mining through in Penang. These projects have added a combined 5.2 million ounces of gold reserves and will ensure steady-state production at each mine of over 200,000 ounces at a recoverable grade of 9 grams a ton. As a result, these high-grade mines will continue delivering excellent margins at an all-encompassing cost for many years to come. The feasibility study update at Eva Copper is also progressing well. Due to its importance, the Eva Copper project has been given a prescribed project status, and the Queensland government has provided $20.7 million in conditional grant funding to help accelerate the project. Early works have commenced, and we are continuing with resource drilling. Subject to the feasibility study outcome, Evo Copper is expected to produce between 50,000 and 60,000 tons of copper per annum and 14,000 ounces of gold over its 15-year life of mine. The all-in sustaining cost is anticipated to be in the middle of the global cost curve. That Wafi Golpu negotiations between the state negotiation team, Harmony and our JV partner, are ongoing as we work to convert the signed memorandum of understanding into a mining development contract. Capital expenditure is necessary for ounce replacement and growth as we maintain and improve the quality of our portfolio. As we invest across all of these assets, we expect total capital expenditure for FY25 to increase to $10.8 billion or just under $600 million. Despite this increase, total capital intensity remains low at approximately R250,000 per kilogram or $415 per ounce based on the FY25 production guidance. Again, this slide is just in US dollars. Let me just make sure I'm done. Slide 16. Let me break this down per operation. Although Harmony is in a period of higher capital expenditure, we have a balance between growth and flexibility. Most of our major capital continues to be allocated to high-grade underground projects such as Moab Kotsong and Kooning as well as our high-margin, low-risk surface retreatment operations. Sustaining capital is also increasing mainly as a result of an increase in development meters across the underground mines to maintain flexibility, and you will notice that the increase is mainly at our four optimized underground operations. We're also factoring in inflationary increases in cost in line with our planning parameters. We are increasing our spend on information technology as part of our ongoing upgrades, And there's also ongoing management of our tailings storage facilities, remains of utmost importance, as well as bringing harmony in line with the global standard of tailings management. This is the same slide, just in US dollars. So our continuous investment across all our operations will ensure that we not only improve our margins, but remain a sustainable 1.4 million ounce producer well into the future. As we mined out our optimized assets, represented by the red section, you will notice that the quality of our answers improved, driving the margins higher over time. Our portfolio also has a long life, but the potential for further life of mine extensions, especially at these higher growth prices. As I mentioned, our international projects introduced a significant copper into the production mix. Bayer Snell, our group chief operating officer, will now take you through the operational results. So over to you, Bayer Snell.

Thank you, Peter. The strong results in this reporting period were due to our ongoing investment and commitment to operational excellence. This has underpinned our success and enabled Harmony to take advantage of the high gold prices. However, everything we do starts with safety, and I must emphasize that is not negotiable. A safe mine, we argue, is a profitable mine. Harmony has a healthy organizational culture, which we believe is a true differentiator amongst our peers. Operational flexibility and predictability in our planning ensure we consistently deliver the tons alongside higher quality ounces. We have achieved guidance for the ninth consecutive year now if we factor in the COVID revision. We are continuing to invest in productivity enhancements and infrastructure reliability to reduce stoppages and maintain momentum. Our underground recovered grades have improved remarkably and productivity enhancements will ensure we deliver the the required square meters each month. As Peter said, Puneng and Mobkotsong and Hidden Valley outperformed in FY24 on the back of excellent grades. We do, however, expect lower grades at Hidden Valley, while at Doernkopf, production will be lower after we revised our plans to ensure safe ounces. Our stable and predictable cost structure has moved us down the global cost curve. Not only have we benefited from having a rent cost base, but the five-year wage agreement ensures fixed labour escalations are predictable. Our power supply from ESCOM is also regulated, with further savings expected from our renewable energy programme. The strong partnerships we have built with our stakeholders ensure we remain the partner of choice, enabling us to continue operating successfully. Our substantial mineral resource base of almost 137 million ounces is presents an abundance of opportunities to grow our mineral reserve through internal investment and greenfields projects. Earlier, Peter touched on the safety strategy and the work being done to continuously improve our leading indicators. It requires a daily commitment and we are confident that we will ultimately achieve our goal of zero loss of life. The emphasis on improving our leading indicators has ensured our lagging indicators are trending in the right direction. And we have seen a remarkable improvement in that since 2016 when we started. Although our group lost time injury frequency rate remains below six at 5.53 per million hours worked, we have lost the lives of seven of our colleagues during the financial year. And we extend our deepest condolences to the families of our late colleagues. Clearly more needs to be done. And more will be done to ensure each and every employee returns home safely every day. Through operational excellence and good mining discipline, we have improved recovered grades, delivering consistent production growth. Our investment in Mpuneng and Mopkotsong is the primary driver behind the consistent higher underground grades we are now achieving. At Hidden Valley, the recent outperformance was a result of the high-grade Big Red ore body, which we have now mined through. as planned. Recovered grades at our surface operations have also improved, driven mainly by mine waste solutions. While 96% of our revenue is from gold, our byproducts play an important role in offsetting some of our costs. 3% of our revenue is from silver produced at Eden Valley, and 1% is from uranium mined at Moab Kotsong. Silver production increased by 39% to a record 3.7 million ounces in generating revenue of 1.7 billion rand. Uranium production increased by 13% to 590,000 pounds, generating revenue of just under 900 million rand. Our South African high-grade operations in Penang and Mobkotsong have introduced high-grade quality ounces to the portfolio. Average recovered grades from these mines exceed 9 grams per tonne, with production over 15,000 kilograms at an operating free cash flow margin of 32%. Both mines delivered an impressive performance in FY24, exceeding their plans across all operational metrics. And as we head into the new financial year, we will focus on major extension projects at these mines. To that end, R2.2 billion has been allocated towards these declined projects for FY25. Harmony's investment in quality ounces has resulted in record operating free cash flow this financial year. We can attribute some of this to the gold price. However, the real driver has been the improvement in margins on the back of our minds achieving their plans. Total operating free cash flow for the group increased by 111% to 12.7 billion rand or 681 million U.S. dollars. Allow me now to touch on each of the quadrants to illustrate our confidence in our cash flows going forward. Our South African high-grade operations, namely Mpuneng and Mo Kutsung, have introduced high-grade quality ounces to the portfolio. Average recovered grades from these mines exceed 9 grams per tonne, with production over 15,000 kilograms at an operating free cash flow modern of 32%. Both these mines delivered an impressive performance in financial year 24, exceeding their plans across all metrics. As we head into the new financial year, we will focus on major extension projects at these mines. To this end, 2.2 billion rand has been allocated towards these decline projects. The South African optimized portfolio consists of our seven underground mines and contribute close to 40% of our total production, or 19,000 kilograms of gold. While margins are typically lower, these mines still generate $2 billion in operating free cash flow and play a critical role in funding our growth strategy. In order to ensure optimal free cash flow generation over the life of mine, it is necessary to maintain flexibility to achieve our plans and reduce costs. Capital expenditure at these operations is therefore predominantly sustaining capital for ongoing development. Our focus remains on ensuring that these mines achieve their planned targets, especially Durenkop and Target 1, with studies underway for the potential extension of Tupung North. Now, South African surface operations delivered a phenomenal performance with production increasing by 21% to around 9,000 kilograms. This now represents 11% of group production, with all its sustaining costs decreased to just over R700,000 a kilogramme illustrating how profitable these operations are at current gold prices. These operations generated R2.6 billion in operating free cash flow at a margin of 25% in FY24. As Peter said, we are pleased that the legacy streaming contract comes to an end before the end of this calendar year. Once this ends, we expect the gold price received for gold sales at Mineway Solutions to increase by around 20%. This is expected to generate over 900 million rand in additional cash flow for the group. The extension of the career on tailings storage facility will continue into FY25, and we have around 1.8 billion earmarked for capital expenditure at our surface operations. Further feasibility studies are underway to determine whether we can create another mega tailings treatment operation in the free state, where we have 5.7 million ounces in resources in our old tailings dams. We believe there's good potential to remine our old tailings dams in South Africa for possibly another 100 years. Our international portfolio, of which Hidden Valley is currently the only operating mine, delivered a standout performance in FY24. Hidden Valley generated over 2 billion rand in operating free cash flow at a margin of 35%. Production increased by 17% to over 5,100 kilograms. As mentioned earlier, having mined through the Big Red ore body, grades will be lower in FY25 now that we have commenced with stage eight stripping. This is all in line with the mine's life of mine plan. We are busy conducting studies to determine whether the life of mine at Hidden Valley can be extended further. And we are progressing the feasibility study update on Eva Copper and Wafi Gold for permitting, as Peter alluded. This slide is a good summary or comparison of our operational performance across our various business units. This illustrates the Harmony portfolio has changed significantly over the past eight years, having de-risked with vastly improved profitability. Boapela Lukubo, our financial director, will now discuss our financial performance for the past year. financial year. Popelo, over to you.

Thank you, Bez. Harmony delivered an excellent financial performance and outstanding earnings growth in FY24 on the back of the information shared by Bez and Peter. Group revenue increased by 25% to R61 billion on the back of the higher production and the excellent gold price. Net profit increased by 78% to 8.7 billion rand, while the rolling 12-month EBITDA increased by 54% to just under 19 billion rand. As mentioned in our trading update, Target North has been impaired by 2.8 billion rand. Adjusting for this, headline earnings per share increased by 132% to 1,852 South African cents. Strong operating free cash flows resulted in our balance sheet shifting further into a net cash position, and as of 30 June 2024, we had a net debt cash position of 2.9 billion rand. This is just our financials translated into dollars. Group revenue increased by 18% to $3.3 billion, and headline earnings were up 122% to 99 US cents per share. Harmony has a balanced capital allocation framework which focuses on five core areas, namely ongoing safety and production optimization as we aim for zero loss of life, maintaining a strong balance sheet and a net debt to EBITDA below one times, which is what we've done, organic and inorganic growth, which improves the quality of our portfolio, and returning capital to shareholders in line with our dividend policy. We've delivered a consistent increase in revenue over the past three years, and headline earnings per share has also increased by over 700% in the past eight years on the back of our acquisitions and investment in quality ounces. Moving on to costs, the majority of our costs remain predictable and manageable. It is split between labor, consumables, and electricity. Sustaining capital represents only 10% of our total all-in sustaining costs, as you can see, and we've not seen any major changes in the split year-on-year. Going forward, we anticipate cost escalations to remain predictable and in line with planned inflationary increases due to our RAN cost base. Cash operating costs, as I've mentioned, remained well under control. In RAN per kilogram terms, costs increased only 3%, as a result of annual salary escalations, electricity tariff hikes, and higher royalties. Byproduct credits from silver and uranium increased by 91%. In U.S. dollar per ounce terms, cash operating costs decreased by 2% to $1,262 an ounce. The 5% depreciation of the rand against the U.S. dollar helped drive cash operating costs per ounce lower in dollar terms. Based on our FY25 planning parameters, all of our asset groupings have a life of mine margin of over 20%. And just to highlight that this is at a gold price of 1.25 million rand a kilogram. We spend capital to ensure we remain a profitable 1.4 to 1.5 million ounce producer well into the future. Capital expenditure remains well sequenced. And at current gold prices, all of our approved projects are comfortably funded through internal cash generation and available facilities. With double digit margins, we remain well positioned heading into the new financial year. Our FY24 total capital intensity was also low at around R210,000 a kilogram or $350 an ounce. As Peter mentioned earlier, capital expenditure will increase in FY25 But capital intensity, however, remains affordable at 250,000 rand a kilogram or $415 per ounce based on our FY25 production plans. Apologies, I moved too early. We are also protecting margins through an effective hedging program. We typically hedge between 10% and 30% of production over 36 months as per our 30-20-10 amended program limits. Harmony has been in a net cash position since the beginning of this calendar year. Through financial discipline, we've built a strong balance sheet, which, as mentioned earlier, is now in a sizable net cash position of 2.9 billion rand. Financial flexibility places Harmony in a strong position to continue on its growth trajectory. This is just the same slide in U.S. dollar terms. With over 12 billion rand, or $600 million in headroom, made up of cash and undrawn facilities, our balance sheet remains quite robust. Solid cash flows and balance sheet strength have once again allowed us to pay a dividend while pursuing our growth aspirations. Our final dividend payment is 94 South African cents per share, or 5 US cents per share. We've delivered a geared year-on-year dividend increase, meaning that our dividend increase exceeded the increase in the gold price. Total cash returned to shareholders in FY24 is close to 1.4 billion rand. This clearly demonstrates confidence in our plans and our cash flows. Allow me to hand back to Peter to conclude.

Thank you, Boy Pelo, and thank you, Bayes. So, in conclusion, let me just get the slides to move. Harmony has followed a conservative approach to planning. We believe this is proven given the nature and location of our operations. Much of what we achieved in 2024, of the FY24, was due to Mpuneng and Hidden Valley Far exceeding their plans. As part of the FY25 planning cycle, we have guided in line with our mine plans. As we progress with our risk-assessed life of mine plans, we believe our oil bodies can confidently deliver between 1.4 and 1.5 million ounces in FY25. Underground recovery rates are expected to be above the 5.8 grams per tonne, and oil and sustaining costs are expected to be between 1.02 and 1.1 million rand per kilogramme. So let's break down the cost guidance. This slide illustrates the drivers behind the higher oil and sustaining costs for FY25. Now these include lower guided production alongside with higher developed capital spent across the underground mines, and we also factored in annual inflation increase of about 8.7%. Using the original FY24 all-in-sustaining cost guidance of R975,000 per kilogram as a reference point. This increase is in line with the annual mining cost inflation. The FY24 all-in-sustaining cost was much lower than guided due to Mpuneng and Hidden Valley exceeding their annual production plans. We believe that the guided all-in-sustaining cost is realistic and we remain confident that Mpuneng may well exceed these plans again this coming year. Harmony remains a solid investment and offers a compelling gold-copper story. We have a lower risk profile and safety remains our top priority. ESG is embedded in our operational model through a clear sustainable development strategy. We continue developing our skills and have an experienced management team with a strong succession pipeline in place. A search for my successor is well underway as I will be retiring at the end of this calendar year. Operational excellence means our key operational metrics have improved, and we are maintaining good momentum at all our mines. We continue driving better efficiencies through the various business improvement initiatives, while project execution discipline remains critical given our significant pipeline. Our production profile is long and diversified, and we have a significant gold-copper resource base with excellent reserves conversion potential. Through our new business team, we are continuously identifying growth opportunities that we can potentially lower our risk and increase our margins. We are hoping to introduce near-term copper through our EVO copper project and, of course, permit the Tier 1 Wafi Gold Pool copper gold poultry. Our balance sheet is strong and flexible, and our capital allocation framework balances our growth aspirations alongside shareholder returns. In closing, I would like a special thanks to my team for their dedication and commitments towards achieving our goals. And I really want to make that point that we have a team that we've put together, that's been together for a very long period of time, and I've got the utmost respect for the mining team that we have here in Harmony. I would also like to thank our unions for their continued support, and some of them are here today. We remain grateful to our board, shareholders, and other stakeholders, for instance, enabling us to position Harmony as a specialist gold producer with a growing international copper footprint. I will now hand over for questions, and thank you, Jared, if you can just control that.

Any questions?

Hi, Peter. Good day to the team as well. Bruce Williamson, Integral Asset Management. Could you just share some thoughts on your underground operations where you've had an improvement in grades? I mean, was that just naturally transitioning through higher grade, or did you plan and target higher grade areas? Or was that just a bigger focus on cleaner mining, reducing sloping width, and avoiding excess waste?

I think the major drive for that was really acquiring much higher-grade assets in Mpuneng and Muapkotsong. That in itself was a, you know, I think it was a right decision for Harmony to then buy it, and we're also very grateful that we were able to do that at the time. Mpuneng, when we bought it, was so great, we're not where it is today. But there was always this, we're going to mine, and as you know, sequential grid extraction that we have, you mine from one side to the other side, and we always, You know, Anglo Gold Ashanti always told us that we're going to get into very, very good grades, and we managed to get into that grade. And we're going to be there for that period now for quite a number of years. So it is on the back of them actually mining into the higher grades. Moab has been the grades that we always had. But I think there's also a massive drive on quality and operational excellence that we try to put in place in all the operations. So we're obviously very strong. You know, Harmony has got a great meeting on every operation every week. and our internal auditor just walked in, and she's actually auditing it for us, making sure that we actually do it and that it's properly recorded. So we have a very strong, great discipline to get it right, so we don't drop the ball in terms of quality and stuff like that. But these new mines that we bought was a game-changer for us.

from HSBC. I've got a few questions, but I'll ask some of them and then just move to the back of the line. So if you look at your FY25 guidance, actually if we take it a step back, in FY24 you beat your initial guidance quite substantially. If you look at your FY25 guidance, Is there some optimism that there are certain parts in the portfolio where you're hoping could do a bit better than what you planned? So in other words, is it, you know, how conservative is that guidance? And then what Bears was saying about the old tailings opportunity in the free state, 5.7 million ounces, that sounds pretty exciting. I wonder if you can give us just a bit of color. I know the studies are ongoing, but just, you know, High level, would you need to build another plant there? How do the grades compare to your current tailings, retreatment operations? And then the third question, your capex has increased quite substantially, both for FY25 and even more so for FY26. if you could please just unpack what the drivers are for the increases in your medium-term capex guidance.

Okay, thank you, Roy. So let me start with this. I mean, this slide actually explained it quite a lot. I mean, last year we guided when we started 975, 1,000 rand a kilogram. We managed to get at 901. And, you know, the big driver for that was obviously better production. So it was higher grade and 6% better than planned in terms of the production. Now, we don't plan to stop trying to do that, and we think we can. We obviously are very strict on our planning parameters. I mean, we as Harmony have never been in a thing that we over-promise and under-deliver. We believe that we need to be conservative in our planning, but also be conservative in the sense of being stretched and making sure that people do the right thing. But then if you put all of that together, you get to this number. And we don't want to guide now where we are in the beginning of the year that it will be a different number. But having said that, our production at the moment, and Floyd is sitting here as SA Operations Executive Operating Officer. You know, we are at a very, very good momentum in all operations. We're doing well. We're doing as well as we did last year so far. And we talked about Durenkop, which we just choked back a bit because we just wanted to make sure that we have enough hoisting capacity to do all the project work and the hoisting of that. So that is a constraint. That's a bottleneck in Doerenkoop. And we want to make sure that that is right, that people don't, that we do all of that safely. So we tote it back a bit for the year and, you know, until we're going to get the projects done. But that's about 10% of the Doerenkoop, 10 to 15% of the Doerenkoop production that we've choked back. But other than that, I think, you know, we will have cost inflation of about 8%. We are lucky that we have now long-term agreements with our unions. We have, obviously, the ESCOM increases are still hanging in the balance. We are, you know, really busy with the, you know, the 50 megawatt that we've built. The other EPC contractor has been put together to start with the renewables for the new 100 megawatt plant that we're building. So we are, the price of building that, that will not come in this financial year. Yeah, so, and then, of course, our sustaining CAPEX contracts. On the back of the better performance, we have to do more development because we follow a very strict process in terms of understanding to create the proper flexibility in the business. We call the iceberg management that we have to increase the production volumes and you have to obviously increase development with that. And then, of course, the other one is the, you know, there is a little bit of work to be done on tailings facilities. You know, we're also doing a lot of work in terms of our, you know, IT systems. You know, also, you know, the threat of, you know, so-called cyber attacks and things like that are real, and we have to work and make sure that we are in the right space. But I think all in all, being conservative, we will beat our guidance. I mean, I'm confident in saying that. We will beat our guidance, and we will be there. You know, there's no reason at this point in time that we shouldn't be there. There's nothing in the horizon that says we cannot. On the free state... Free State is exciting. It's actually two. There's Free State and also West Wits. Free State is obviously, we've got a massive amount of, like I talk, quite a number of years of resources there that we can convert into reserves. Most likely will entail a partial building of a plant, but there's also obviously, we are retreating into Free State at the moment. We've got the central plant and the old Phoenix, as we call it, the old Phoenix. Harmony plant that has got converted into trailing street treatment. But we believe that we can, you know, this mineway solution, big mega trailing facility retreat is the way to go. The constraint in the free state will always be water, so it will never be as big as mineway solutions because of the water constraints that we have here. But we're very excited about that, and obviously the VSVET is equally excited about that. But the feasibility study is on the way, so So it will be most likely a nice sizable plant and attaining retreatment of things. Not maybe the size of mine resolutions, but close to that. So I'm really excited about that. The capital slide, Philip, can you just say what number is that slide?

Sixteen.

Sixteen. Let me try and get back to that because it's easier to talk off the slide. I think we can unpack it properly.

And just something, Peter, to add before you unpack 25, just remember Leroy 24. Buning deepening was not included there. So there's about a billion extra, I mean, yeah, from 24 to the 25.

Yeah, so that's a billion. We already started now a little bit of early works, but, I mean, the full swing will be in this year. That's not a very fast thing, so let me try and get to that. There you are.

Yeah.

But let's get to that one. I mean, you can see that, and let's put it in rand per kilogram terms. You see, the sustaining CapEx, we talked about the sustaining CapEx, the more development, the more of that, compared to what we delivered on in the previous year. And obviously, you look at it, it was about $4 billion to $5 billion. But the big jump is really that billion grant that we're going to spend more on growth capital. And that is the opening extension. It's going very well as far as Marburg is concerned. That will be steady state. You know, the same, we'll keep on developing, developing the declines. But then, of course... Unpuneng Extension will be a big number there. I mean, the rest is more or less the same. I mean, they are, you know, even Valley Capital is really just the first stripping, just as what we planned to do this year compared to the previous year. But 10.8 billion, I always say, is a big number. It is, you know, Harmon has never spent that amount of money in one year, but we think we've got the plans to do it because especially on the golden side, And you can see last year, we were managing our projects, was very well managed with what the Settler guidance and what we in actual fact achieved was very much in line. And I'm very, very pleased with the work and the Bayer's leadership, but also with Floyd and the way that we in actual fact put together our project execution of project office capabilities in harmony at the moment. We've done a lot of work to improve our skills in that part of the projects, and I'm glad to see that our projects actually are I mean, one of the solutions that we're going to start delivering, we're going to be pouring the first in October, is destiny to a very good project management project that we've put in place and actually building that in time and also in budget. So a great, great achievement. So it's a big number, but we are confident that we will be able to do it. Adrian?

Peter, yeah. Hi, Adrian Hammond, SVG Securities. Peter, you've been instrumental in reshaping this company, probably a key reason for its re-rating. And I'd just like to commend your disclosure and your guidance has improved substantially, especially for its outside analysts. So thanks very much. But you're a lot of key man risk here, I would say. How long do you intend staying with the company and what is your succession plan? And then secondly, if there's something that's on your to-do list, what's the most important that you'd like to do complete before you leave? And then for Boy Pail, are you selling a lot of cash? What are your intentions with that cash? Are you going to be generating some more? I appreciate you've got ever coming up, but you could also increase your liquidity through debts and How do you think about the capital structure of this company going forward? Thanks.

Okay. Aidan, yes, my intention is to step down on the 31st of December, so starting the new year as a retirement, a person in retirement. We are well, and obviously there's about four months still left to be done, so the board will make a decision and actually bring it to the market at the right time. is well advanced in terms of finding my successor. I just want to make the point that we have, this was never a one-man show. It was always a team effort. And, you know, with the team that I've put together, myself and Bayer actually started together in 2016. You will recall at the time the CEO retired and the chief operating officer resigned at the same time. So we had to start from scratch as a team. And we've been a strong team together, and obviously also with all the other executives that we had. Marianne has been here for a long time, but Pelle joined us later after Frank left. We've been – Machejo has been with us all the time. I mean, the team is so strong. You know, I've got no problem in my time that this team will take this company to flying heights going forward. As a matter of fact, I think the younger the better. What's the thing I still want to do before I retire? Wafi Golpu permit. Wafi Golpu permit. If I can get that right, then I would say that I've ticked every box that I wanted to tick. That's the one. And hopefully we can, I don't know, but we didn't say a lot about that, but we really want to get over that line. We want to get that mining development contract signed, and then we can start that massive, massive, massive, exciting project that is ahead of Harmony that will have, we are now in a much better position than we've ever been, to be able to execute that project and to actually participate in that project. I mean, in 2016, we most likely, it was like a dream to participate there. Now we're in a position to do that, so. So that's what I would like to get right. And, Billy, you can maybe on the capital side.

Yeah, all the cash. I mean, yes, granted, Adrian, we are sitting, you know, in a nice position of a 12 billion headroom. That's cash and available facilities. But one should appreciate that we're in a high capex phase. I mean, as you can, you know, almost 11 billion rand. And we've also got EVA copper looming. I mean, yes, FID should be expected June next year. It's a two-year build, so it's short. You know, the last time we were at the market, CapEx was sitting at $600 million. Obviously, that was a year and a half ago. So the world has moved on, inflation, et cetera. So you will expect that that number is bigger. So, you know, before we can come to the market and commit on what that capital is, I think it's prudent that we maintain our dividend policy of 20%, which we've done. So it's always a balance when you look at these things, especially in our case. Yes, the Gold environment is favorable at the moment, but we have been through tough times. So you always have to maintain that level head around all these things.

Any more questions? Do we have any online, Jared? Yeah, on the core school, do we have any coming through there?

Thank you. We have no questions on the lines.

Okay. Peter, team, I've just got a question from Yandere Peterson at Vizio. Just can you unpack a little bit in terms of the grade evolution over the next two to three years?

Yeah. We will look at a long-term plan for Harmony. I mean, we are in good grades now for Thunpening, and the current life of mine, before we go to the deepening part of that, which will be in the high grade, will be the same. More As long as we mine the mineral mine, it will be good grades, and obviously when we're getting into the Zyplus project, as we get, I think the first time is about two years from now, we will be in the Zyplus project, we'll be good grades again. Then we are actually supposed to mine out our low-grade assets, like, for instance, Massimo. Now, Massimo had a two-year life of mine plan since I've started here, And we still have a two-year life of mine. This year we signed another two-year life of mine, so it is there. But, I mean, there's going to be a day that we have to call it the day at Massimo. And that is, you know, the kind of lower-grade asset that we have. The next mine, we've got a three-year life of mine at Kusazaletu. We think it's the possibility to, at good grades, to extend that because we've got some drilling results that's fairly good. Provided that that creates a, you know, sustainable future for us, we can potentially extend that. But that's obviously a much higher grade asset. So yes, I'm quite confident that the grades that we have now, above 5.8 underground grades, will sustain itself for quite a number of years now. And we are developing the higher margins or the higher grade assets for the long term.

Thanks, Peter. Just a question from Rene Hochreiter. I think you've answered the question on Wafi Gold Pool already, in terms of timing, but perhaps on Target and thoughts on the project that is complete and when we see Target becoming cash flow positive again.

We got that project over the line. It was a difficult project to execute because of not necessarily the project itself, but because of environmental conditions and other kind of issues that we run in. It is a Target is a very difficult mine in the sense that it was actually set up right from the beginning in the sense of how you ventilate it, how you cool it down. So we had to build fridge plants and put fridge plants on surface to try and get this cooling down and making sure that we get the mine done. But it's all done now. You know, the crushes is down at the bottom. It's working well. We're driving downhill now to our crushes rather than four kilometers uphill. We are in the process now of creating the flexibility to solar drilling to make sure that we get ahead of time, et cetera, et cetera, to make sure that we have the things. But I'm very comfortable that Target will be a great mine going forward. Not high grade, but, you know, good volumes and a mine that we will mine going forward. And there's obviously a lot of potential to that block, what we call Block 12, which is the old paradise part of the fans. That was, many years ago, was part of the four different fans. It was part of the Angloval future. which we're going to get a part of that as part of our infrastructure. We will be able to mine it. But that's still a little bit in the future. But, I mean, Target can still have, currently I think it's a six- or seven-year life, potentially can be a ten-year life going forward.

Thanks, Peter. A question from Lebo Mofukeng, Truffle Asset Management. On uranium, is the FY24 base sustainable, and is there potential to do more from a uranium perspective?

The only uranium plant we've got is the one at Moab. So we use all the sources that we potentially can put through there to get uranium for us. Unfortunately, we don't have uranium plants on any of the other things, any of the operations. Yeah, so, I mean, what we have at the moment is that uranium is also, you know, flexible in terms of where you are or what you mine. It normally is highly correlated to the grades. Because of the good grades we're currently mining at Moab, we also have good uranium grades. So we... But certainly for the next number of years, it will be the same. And as we go into Zyplast, there's also uranium associated with that. Uranium became very significant because of the price increase that happened over the last number of years. I think when we bought Moab, it was $23 a pound. Now it's sitting at close to $90.

Thanks, Peter. And the last question from Taleke Taleke at Morotori Capital. In terms of new business and expansion opportunities, What are the plans for Harmony in terms of geography? And what projects could we potentially look at at higher gold prices, internal projects or existing projects?

Well, I think this slide actually shows it all. I've got now slide 18 there on it for people looking at that, which shows you that we can potentially be about 1.4 million ounce producer for a long period of time, about 2038. And I don't think many gold mining companies have got this profile ahead of them. Yes, we have to develop surface projects, but we own the ounces and we can develop them. So it's not that we don't own them. And obviously it's also on the back of EVA and Wafi Gold being built, you know, that hatched part at the top there. So what we're trying to say is that we have enough projects in front of us to be able to sustain harmony for the current production levels. and obviously we all, but we will also be also looking at opportunities that potentially can come our way, like EVA that we managed to buy. I think it's a fantastic project that came to us at the time, and I think, you know, we will be constantly looking for that. So our new business team and Rewanis van Heerden in the Brisbane office are, you know, constantly looking at opportunities for us to be able to, but I want to emphasize, whatever we buy going forward needs to be better quality. Now, our current average oil and sustaining cost of Harmony this year is $500 an ounce. There's not a lot of assets above $1,500 an ounce available for sale. And if there are, they're obviously usually expensive. So, you know, developing our own is probably the right way to go. And for that reason, our project capabilities and delivering projects are so keen for Harmony and and which I think we are on the right track as far as that's concerned. All right, Peter, I think we're done. Thank you. Thank you. Thank you a lot for being most likely my last results presentation. I still vividly remember the one in the other boardroom there, the first one when I joined Harmony in 2016. It was a tough day. It's much better today.