Financial Report 2017 - Har

1 Financial Report 2017 REFERENCEA full glossary of terms is available on the website, this Report , $ or dollar refers to US dollar, unless otherwise stated. K refers to kina, the currency of papua New Guinea. Moz refers to million ounces and Mt refers to million production volumes are in metric tonnes (t), unless specifically stated as imperial tons. Harmony Gold mining Company Limited (Harmony), a gold mining and exploration company with 67 years of experience, has operations in South Africa one of the world s best known gold mining regions and in papua New Guinea one of the world s premier new copper-gold regions.

2 At Harmony, we understand the impact that our company has on the lives of the people we employ, the communities that surround our mines and the environment, as well as the economic contribution that we make to the countries in which we REPORTS ONLINEH armony s full set of 2017 reports and supporting documents are available at electronic reports are interactive pdfs, with links to sections within the document and to external websites. The interactive links are indicated by text in red out of the Harmony values at WauPapua New GuineaPRODUCTION GUIDANCE MET FORSECOND CONSECUTIVE YEAR (FY17: ) (FY16: )FIFTH CONSECUTIVE ANNUAL INCREASE INUNDERGROUND GRADE RECOVERED (FY17: ) (FY16: )NET DEBT REDUCED TO R887 million (US$68 million) (FY16: billion, US$74 million)HEDGING STRATEGY SECURES CASH MARGINS(FY17: billion (US$126 million) realised)HEADLINE EARNINGS PER SHARE UP 35%298 SA CENTS (21 US cents) (FY16.)

3 221 SA cents (15 US cents))TOTAL DIVIDEND DECLARED FOR THE YEAR OF85 SA CENTS (7 US cents)KEY FEATURES YEAR-ON-YEARH armony Gold mining Company Limited Financial Report 2017 1 CONTENTST shepongTshepongMasimongWho we are2 How we performed4 Financial director s report6 Audit and risk committee: chairman s report10 Directors report14 Independent auditor s report16 Directors statement of responsibility26 GROUP FINANCIALSG roup Income statements27 Group statements of comprehensive income28 Group balance sheets29 Group statements of changes in shareholders equity30 Group cash flow statements31 Notes to the group Financial statements32 COMPANY FINANCIALSC ompany Income statements91 Company statements of comprehensive income91 Company balance sheets92 Company statements of changes in shareholders equity93

4 Company cash flow statements94 Notes to the company Financial statements95 Annexure A Statement of group companies128 Annexure B Directors emoluments130 Shareholder information133 Forward looking statements136 Directorate and administration1372 Harmony Gold mining Company Limited Financial Report 2017 Harmony, a gold mining and exploration company, conducts its activities in South Africa, one of the world s best-known gold mining regions, and in papua New Guinea, one of the world s premier new gold-copper regions.

5 With 67 years of experience, Harmony is South Africa s third largest gold producer. Headquartered in Randfontein, South Africa, Harmony is listed on the Johannesburg Stock Exchange and on the New York Stock Exchange, on which its shares are quoted as American Depositary WE AREWHERE WE OPERATEW estern HighlandsMorobe ProvincePAPUA NEW GUINEA Hidden Valley Wafi-Golpu project (50%) Kili TekeSOUTH AFRICASURFACEK algoldSurface sources UNDERGROUNDT shepong operations (including Phakisa) Bambanani Target 1 Joel Masimong Unisel DoornkopKusasalethuFree StateNorth WestProvinceGautengHarmony s equity interest 100% unless otherwise indicatedCORPORATE PROFILEIn South Africa, our nine underground operations are on the world-renowned Witwatersrand Basin two on the West Rand and seven in the Free State, in the southern portion of the Basin.

6 In addition, we have an open-pit mine on the Kraaipan Greenstone Belt as well as several surface operations. In papua New Guinea, Hidden Valley is a wholly-owned open-pit gold and silver mine. Our significant gold-copper portfolio includes the wholly-owned Kili Teke prospect in the Western Highlands and a 50% stake in the Wafi-Golpu project in Morobe Province, through a 50:50 joint venture with Newcrest mining Limited (Newcrest).Our activities cover the entire spectrum of the mining WE DOIn FY17: Gold production totalled (FY16: )Silver production (FY16: )At year-end: Total gold mineral resources (FY16: )Total gold mineral reserves (FY16: )33 201 employeesincluding contractors (FY16: 30 547)OPERATING CONTEXTOur mining activities are supported by brownfields and greenfields exploration programmes in South Africa and papua New Guinea respectively.

7 Our greenfields exploration programme, which focuses on highly prospective areas has been instrumental in establishing a significant gold-copper portfolio and underpins our ability to sustain long-term value creation. Our principal activities are the mining of gold-bearing ore which is then processed on site to extract gold and produce unrefined gold bars known as dor . Silver is produced as a by-product. Once our mines have reached the end of their economic lives, mine closure plans are implemented. These plans include rehabilitation, which is ongoing throughout a mine s operating life, to restore impacted land, making it suitable for an alternative economic our gold is fully refined and beneficiated to final product by the Rand Refinery (Pty) Limited in South Africa and by the Perth Mint Australia for gold produced in papua New Guinea.

8 The refined gold, which is pure, is sold to bullion banks and commodity houses. REHABILITATING LAND AND CLOSUREREFINING AND MARKETINGESTABLISHING, DEVELOPING AND OPERATING MINES AND RELATED PROCESSING INFRASTRUCTURE EXPLORING FOR AND EVALUATING ECONOMICALLY VIABLE ORE BODIES AND/OR VALUE-ACCRETIVE ACQUISITIONSEXPLORATION AND ACQUISITIONREHABILITATIONBENEFICIATIONMI NING AND PROCESSINGF actors affecting our ability to generate value:Globally: Gold market and gold price Global economic outlook and geo-political climate Rand-dollar exchange rateSouth Africa.

9 Regulatory and legislative uncertainty Labour relations Licence to operate community expectationsPapua New Guinea: Regulatory and legislative uncertainty Licence to operate landowner and community expectationsFor further information, see Our business context in the Integrated annual Report 2017 Harmony Gold mining Company Limited Financial Report 2017 34 Harmony Gold mining Company Limited Financial Report 2017 HOW WE PERFORMEDR elevant Global Reporting Initiative indicators: G4-EC1FY17FY16FY15FY14FY13 Operating performanceOre milled000t 19 40118 37318 06318 78418 373 Gold produced1 kg 33 83633 65533 51336 45335 374 000oz 1 0881 0821 0771 1721 137 Operating costs R/kg 436 917392 026369 203328 931324 979 US$/oz1 0008411 0039881 146 All-in sustaining costs2R/kg516 687467 611453 244406 934424 083US$/oz1 1821 0031 2321 2231 495 Underground grade g/t Financial performanceRevenue R million 19 26418 33415 43515 68215 902 Production costs R million 14 81213 25012 63211 88811 321 Production

10 Profit R million 4 4525 0842 8033 7944 581 Operating margin % 2328182429 Net profit/(loss) for the yearR million 362949(4 536)(1 270)(2 349) Total headline earnings/(loss) per share SA cents 298221(189)2652 Capital expenditure3R million 3 8902 4392 8362 6613 912 Exploration spend4,5 R million 241191263458673 Dividend paid6R million 439 435 Net debt R million (887)(1 083)(2 332)(1 031)(449) Market performanceAverage gold price receivedR/kg 570 164544 984449 570432 165454 725 US$/oz 1 3041 1691 2221 2991 603 Total market capitalisation R billion US$ billion Average exchange rate R/US$ Reserves Gold and gold equivalents Moz Geographical distribution of gold reserves South Africa % 4445525758 papua New Guinea % 5655484342 SafetyNumber of fatalities51092210 FIFR fa