Harmony reports greater safety and solid operations in its first quarter

Harmony delivered a solid operational performance in Q1FY26, driven by an improvement in safety, consistent operational excellence, higher recovered grades at Hidden Valley and a higher gold price received. We are encouraged to report a loss-of-life-free quarter – affirming that safe mines are profitable mines. As we continue Mining with Purpose, Harmony is on track to meet its FY26 production, cost and grade guidance.

While gold remains our core focus, our copper expansion is a strategic move to enhance portfolio resilience, margin quality and long-term sustainability. On 24 October 2025, we completed the acquisition of MAC Copper, owner of the high-grade CSA mine in Cobar, Australia. We are delighted to welcome the CSA mine employees to Harmony. The completion of this landmark acquisition marks a significant milestone in our strategy to grow into a global gold and copper producer. Copper is essential to the global shift toward renewable energy infrastructure. Harmony’s growing copper portfolio reinforces our strategic role in enabling the energy transition, while positioning us to benefit from long-term structural demand.

Whether investing in our own growth projects or pursuing value-accretive mergers and acquisitions, all opportunities are assessed through a disciplined lens that weighs potential returns against associated risks. Ultimately, every project competes for capital, and we will continue to allocate resources to those initiatives that deliver the greatest value for our stakeholders.

Safety

The health and safety of our people remain our top priority. Our long-term improvement in our safety performance reflects the success of our proactive programmes and robust safety infrastructure. As operators of some of the world’s deepest mines, we know this demands excellence at all times. We remain committed to zero harm through a culture of accountability and continuous improvement.

In Q1FY26, our lost-time injury frequency rate improved to 4.29 from 5.57 in Q1FY25 – a positive trend, but the elimination of injuries and zero harm remains the goal. We continue embedding a safety-first mindset across all operations, ensuring every workplace is safe, compliant, and empowering.

Other notable achievements this reporting period include:

• South African operations achieved 3 million loss-of-life free shifts for the period under review
• Five of our underground mines achieved millionaire status during the quarter, with Masimong recording over four million loss-of-life free shifts
• Hidden Valley has operated for over 10 years without a loss of life

Revenue and average gold price received

Gold revenue for the quarter rose 20% to R21 689 million (US$1 230 million) from R18 125 million (US$1 009 million) in Q1FY25, driven primarily by a 34% increase in the average gold price to R1 818 510/kg (US$3 209/oz) from R1 360 974/kg (US$2 356/oz).

While the gold price remains outside our control, we continue to focus on factors within our influence: improving safety, maintaining disciplined mining practices, allocating capital effectively, and sustaining rigorous cost management.

Production

We remain on track to meet full-year production guidance. In line with plan, group production for Q1FY26 declined 8% to 12 128kg (389 923oz) compared to 13 131kg (422 172oz) in Q1FY25. Doornkop’s production declined year-on-year as a result of shaft water-handling constraints, which have now been resolved. Production at Moab Khotsong declined by 20% year-on-year due to challenging ground conditions and fluctuating face grades as we mine out the middle mine as planned.

Compared to Q4FY25, production increased quarter-on-quarter by 6%, driven by an 8% rise in total tonnes milled and improved operational momentum across the portfolio.

Recovered grades

While underground recovered grades decreased by 6% to 5.91g/t from 6.32g/t in the comparable reporting period, this is in line with plan and we remain ahead of the guided 5.80g/t for FY26.

Recovered grades at Mponeng remained steady at 10.54g/t compared to 10.70g/t in Q1FY25.

Hidden Valley continues to deliver exceptional results with recovered grades increasing by 31% to 1.63g/t from 1.24g/t in Q1FY25.

Balance sheet and hedging

Our balance sheet remains strong, with net cash increasing by 53% in the first quarter to R17.1 billion (US$989 million) from R11.1 billion (US$628 million) as at 30 June 2025. Liquidity also improved, with cash and available undrawn facilities rising 27% to R26.6 billion (US$1.5 billion) since 30 June 2025. This performance reflects robust operating free cash flow, margin improvements across all operations, and the benefit of a high rand gold price, reinforcing our financial flexibility to support growth and resilience.

The acquisition of MAC Copper has been successfully funded through a combination of cash, existing credit facilities, and a US$1.25 billion bridge loan. We have drawn down only 70%, or US$875 million from the bridge facility, and elected to fund the balance of the acquisition price and related costs from cash balances.

Following the completion of the transaction, our net debt to EBITDA ratio remains comfortably below our internal threshold of 1.0x, underscoring our disciplined approach to capital management and balance sheet strength. The structure of debt instruments used to fund our major projects is under review and will enable Harmony to optimise its balance sheet while matching its funding profile to its cash flow generation. We will provide further guidance at our H1FY26 results update.

We remain well positioned to advance our life-of-mine extension projects in South Africa and at Hidden Valley, while integrating the CSA mine into the Harmony portfolio. In parallel, we continue to advance Eva Copper and remain fully committed to permitting Wafi-Golpu – our transformational copper-gold growth projects.

Our confidence in future cash flows, combined with a disciplined and balanced approach to capital allocation, places us in a strong position to deliver shareholder returns while pursuing long-term growth.

The record gold prices have provided an excellent opportunity to replace maturing hedges with new ones as they expire, locking in excellent margins in-line with our hedging policy. During the quarter, the gold hedge book was maintained at between 10% and 30% of production over a rolling 36-month period. The average floor and ceiling price on our rand gold zero cost collar book of 484 000oz stood at R1 820 000/kg and R2 062 000/kg respectively. The longer dated maturities reflect higher protection levels being locked in off the recently higher spot gold price.

Costs

Costs remain well controlled, with increases aligned to plan and below mining inflation, reflecting disciplined cost management.

Total cash operating costs, net of by-product credits, increased by 6% to R11 260 million (US$639 million) from R10 673 million, mainly due to higher royalties, increased contractor costs and annual electricity inflation. Royalty payments in South Africa are calculated on a sliding scale based on both revenue and profitability. During Q1FY26, these royalties increased to R716 million (US$41 million), representing 6% of total cash operating costs, compared to R496 million (US$28 million), or 4% of total cash operating costs in the comparable reporting period.

Cash operating cost per kilogram increased 14% year-on-year to R928 439/kg (US$1 638/oz) from R812 811/kg (US$1 407/oz), mainly due to lower planned production alongside the above-mentioned increases.

Year-on-year, AISC rose 15% to R1 107 486/kg (US$1 954/oz) from R963 310/kg (US$1 667/oz) in Q1FY25. This is in line with guidance and reflects the increase in sustaining capital as previously guided. Sequentially, AISC increased by only 3% compared to Q4FY25, supported by higher tonnes milled and improved production.

Hidden Valley delivered a standout performance, reducing its AISC by 16% to R773 566/kg (US$1 365/oz). The improved recovered grades and enhanced operational efficiency were key drivers of the performance alongside higher silver prices and resultant increase in by-product credits.

All-in costs (AIC) increased by 19% to R1 218 721/kg (US$2 150/oz) from R1 026 004/kg (US$1 776/oz) in Q1FY25 due to the investment in our major projects.

Capital expenditure and projects

Group capital expenditure rose 31% to R2 873 million (US$163 million) from R2 191 million, reflecting investment in high-return, long-life projects and ongoing development capital across our underground mines to maintain flexibility. The increase was primarily due to the life-of-mine extensions at Mponeng, Moab Khotsong and Hidden Valley, as well as the 100MW solar project at Moab Khotsong to reduce long-term energy costs, derisk energy supply and lower our carbon footprint. Construction of the 100MW solar plant remains on track for completion by the end of calendar year 2026, moving us closer to our net carbon-zero target by 2045. A 10 megalitre per day feed capacity reverse osmosis water treatment plant at Tau Tona was commissioned in July 2025, contributing to our 2034 water ambition target.

While contractor and trackless mobile machinery challenges have delayed progress at Mponeng and Moab Khotsong, these timelines are incorporated into our life-of-mine plans. Studies have also commenced at Tshepong North to determine the feasibility of extending mine life by approximately six years.

Our disciplined capital deployment strategy focuses on projects that deliver solid returns and sustainable long-term value, positioning Harmony to fund growth initiatives such as Eva Copper while maintaining financial strength.

MAC Copper acquisition

CSA is a long-life, mechanised underground copper mine located in a Tier-1 mining jurisdiction. This asset will meaningfully enhance our business and support our long-term growth.

Harmony’s FY27 planning parameters will be integrated into the CSA life-of-mine planning process, ensuring alignment with the disciplined and consistent approach applied across our broader portfolio.