Harmony Gold Mining Co Ltd Q4 FY2024 Earnings Call

Welcome to the chorus call.

Good morning. My name is Peter Steenkamp. I am 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 the Safe Harbor statement. 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 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 includes nine underground mines, two open pit mines and a significant tailings and retreatment business. Surface retreatment is a great ESG story with the potential for another 100 years of hydro mining across South Africa. At present, over 90% of our current production comes from South African gold. Based on the current planning parameters, we expect approximately 20% of future production to be copper within the next 10 years. The copper production will be from our Tier-1 Wafi-Golpu 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 diversifying it into future-facing metals. Our excellent FY '24 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-accretive acquisitions. All decisions are underpinned by our four strategic pillars: responsible stewardship, operational excellence, cash certainty, and effective capital allocation. Major capital is being allocated towards higher quality assets namely Moab Khotsong and Mponeng, as well as key projects that will lower our risk profile such as Eva Copper and Wafi-Golpu. This ensures we continue growing our reserves and delivering improved margins at high profitability, especially at these high-grade assets. We continue to invest in our optimized assets or the red quadrant, which we 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. The digitalization and modernization have led us to 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. 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. We are progressing this through regular visible self-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 each operation. This achievement was a result of clear strategic intent and successful execution enabling us to deliver above plan and capitalize on higher gold prices. This results in a record year for the company. We aim to excel at what we do, and I believe that we have 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 of work for FY '24 was at 5.53. This has remained below six 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. Gold production increased by 6% to 1.56 million ounces, beating our upward revised guidance. Underground recovered grades also exceeded the guidance, improving by 6% to 6.11 grams per tonne. Our costs remained under control with all-in sustaining cost coming in at ZAR 901,000 per kilogram, which was well below guidance. In dollars, all-in sustaining cost decreased by 4% to $1,500 per ounce, and operating free cash flow increased by over 100% to a record of ZAR13 billion or US$681 million 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 ZAR2.9 billion or US$159 million. Our headline earnings per share increased by 132% to 1,852 South African cents or US$0.99 per share. In line with our dividend policy, we are paying a full year dividend of 94 South African cents or $0.05 per share. This demonstrates confidence in our planning as we aim to reward our shareholders alongside our growth aspirations. Our FD Boipelo Lekubo will unpack the financials a little bit later. 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 of our actions, we continue to receive positive external recognition for our embedded approach to sustainability and disclosure transparency. We have been included in the FTSE4Good Index for the seventh consecutive year. Our inclusion in the Bloomberg Gender Equality Index for six consecutive years demonstrates that we embrace gender diversity and 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. Growing our quality ounces 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. Harmony 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 Mponeng extension. Eva 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 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 is 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 ounces, and remain affordable through the cycle. The acquisition of Mponeng, Moab Khotsong, and Mine Waste Solutions were transformational. When we acquired these assets, we hoped that we would be able to extend their lives. After comprehensive studies, these acquisitions all received approval for extension. We are pleased that the first deposition of the Kareerand round extension at Mine Waste Solutions or mega tailings retreatment operation will happen in October. This project extends the life-of-mine of Mine Waste 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 Khotsong and Mponeng are progressing well, and we have extended the lives of these mines to at least 20 years. Decline work at Moab Khotsong and the development of the carbon leader section of Mponeng are underway. We have also commenced rehabilitation of the Tau Tona shaft pillars which we will mine through Mponeng. These projects have added a combined 5.2 million ounces of gold reserves and ensure a steady state production at each mine of over 200,000 ounces at a recoverable grade of 9 grams per tonne. As a result, these high-grade mines will continue delivering excellent margins at all-in sustaining costs for many years to come. The feasibility study update for Eva Copper is also progressing well. Due to its importance, the Eva Copper project has been given prescribed project status, and the Queensland government has provided 20.7 million Australian dollars in conditional grants funding to help accelerate the project. Early works have commenced, and we are continuing with the resource drilling. Subject to the feasibility study outcome, Eva Copper is expected to produce between 50,000 and 60,000 tonnes 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. At 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 expenses necessary for ounce replacement and growth as we maintain and improve the quality of our portfolio. As we invest across all these assets we expect total capital expenditure for FY '25 to increase to ZAR 10.8 billion or just $106 million. Despite this increase, total capital intensity remains low at approximately ZAR 250,000 per kilogram or $415 per ounce based on the FY '25 production guidance. This slide will show details in US dollars. It ensures that we maintain a balance between growth and flexibility. Most of our major capital continues to be allocated to high-grade underground projects such as Moab Khotsong and Mponeng as well as our high-margin loader surface retreatment operations. Sustaining capital is also increasing mainly as a result of an increase in development meters across the underground mines to maintain feasibility. Also factoring in inflationary increases in costs as per our planning parameters. We are increasing our spend on information technology as part of our ongoing upgrades. The ongoing management of our tailing storage facilities in the mines is of utmost importance in bringing Harmony in line with global standards for tailings management. We ensure continuous investment across all our operations to not only improve our margins but remain sustainable in producing 1.4 million ounces well into the future. Mining out our optimized assets represents that the quality of our ounces improved driving margins over time. Our portfolio also has a long life, with potential for further life-of-mine extensions, especially at these higher gold prices. Our international projects introduce significant copper into the production mix. Beyers Nel, our Group Chief Operating Officer, will now take you through the operational results. So over to you, Beyers.

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 it is not negotiable. A safe mine is a profitable mine. Harmony has a healthy organizational culture which we believe is a true differentiator among our peers. Operational flexibility and predictability in our planning ensure we consistently deliver the tonnes 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 would ensure we deliver the required square meters each month. As Peter said, Mponeng and Moab Khotsong and Hidden Valley outperformed in FY '24 on the back of excellent grades. We do however expect lower grades at Hidden Valley while Doornkop 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 Rand cost base, but the five-year wage agreement ensures fixed labor escalations are predictable. Our power supply from ESCOM is also regulated with further savings expected from our Renewable Energy Program. 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 presents an abundance of opportunities to grow our Mineral Reserve through internal investments 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 colleagues. Clearly, more needs to be done and more will be done to ensure each 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 Mponeng and Moab Khotsong 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 comes from silver produced at Hidden Valley and 1% from uranium mined at Moab Khotsong. Silver production increased by 39% to a record 3.7 million ounces generating revenue of ZAR 1.7 billion. Uranium production increased by 13% to 590,000 pounds generating revenue of just under ZAR 900 million. Our South African high-grade operations in Mponeng and Moab Khotsong 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 FY '24 exceeding their plans across all operational metrics. As we head into the new financial year, we will focus on major extension projects at these mines. To that end, ZAR 2.2 billion has been allocated towards these decline projects for FY '25. 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 mines achieving their plans. Total operating free cash flow for the Group increased by 111% to ZAR 12.7 billion or US$681 million. 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 Mponeng and Moab Khotsong 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 of these mines deliver impressive performances 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, ZAR 2.2 billion has been allocated towards these decline projects. The South African optimized portfolio consists of about seven underground mines and contributes close to 40% of our total production, or 19,000 kilograms of gold. While margins are typically lower, these mines still generated ZAR 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 Doornkop and Target 1 with studies underway for the potential extension of Tshepong North. Our South African surface operations delivered phenomenal performance with production increasing by 21% to around 9,000 kilograms. This now represents 11% of Group production with all-in sustaining costs decreasing to just over ZAR 700,000 a kilogram illustrating how profitable these operations are at current gold prices. These operations generated ZAR 2.6 billion in operating free cash flow at a margin of 25% in FY '24. As Peter said, we are pleased that the legacy streaming contract comes to an end before the end of the calendar year. Once this ends, we expect the gold price received for sales of Mine Waste Solutions to increase by around 20%. This is expected to generate over ZAR 900 million in additional cash flow for the Group. The extension of the Kareerand tailing storage facility will continue into FY '25, and we have around ZAR 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 retreatment 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 re-mine our old tailings dams in South Africa for possibly another hundred years. Our international portfolio currently has Hidden Valley as the only operational mine, delivering a standout performance in FY '24. Hidden Valley generated over ZAR 2 billion 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 orebody, grades will be lower in FY '25, now that we have commenced with stage 8 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 either copper and Wafi-Golpu permitting. This slide provides a good summary 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. Boipelo Lekubo, our Financial Director will now discuss our financial performance for the past financial year. Boipelo, over to you.

Thank you, Beyers. Harmony delivered an excellent financial performance, and outstanding earnings growth in FY '24 on the back of the information shared by Beyers and Peter. Group revenue increased by 25% to ZAR 61 billion on the back of higher production and the excellent gold price. Net profit increased by 78% to ZAR 8.7 billion, while the rolling 12-month EBITDA increased by 54% to just under ZAR 19 billion. As mentioned in our trading update, Target North has been impaired by ZAR 2.8 billion. 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 at 30 June 2024, we had a net cash position of ZAR 2.9 billion. In dollars, group revenue increased by 18% to $3.3 billion and headline earnings were up 122% to US$0.99. Harmony has a balanced capital allocation framework, which focuses on five core areas namely ongoing safety and production, production optimization in our aim for zero loss of life, maintaining a strong balance sheet and a net debt to EBITDA below one times, which we’ve achieved, 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 representing only 10% of our total all-in sustaining cost as you can see. We've not seen any major changes in the split year-on-year. Going forward, we anticipate cost escalations to remain predictable in line with planned inflationary increases due to our own cost base. Cash operating costs have remained well under control. In Rand 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 US dollar per ounce terms, cash operating costs decreased by 2% to $1,262 an ounce. The 5% depreciation of the Rand against the US dollar helped drive cash operating costs per ounce lower in dollar terms. Based on our FY '25 planning parameters, all of our asset groupings have a life-of-mine margin of over 20% at a gold price of ZAR 1.25 million 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 Group 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 FY '24 total capital intensity was also low at around ZAR 210,000 a kilogram or $350 an ounce. As Peter mentioned earlier, capital expenditure will increase in FY '25 and that capital intensity, however, remains affordable at ZAR 250,000 a kilogram or $415 per ounce based on our FY '25 production plans. 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 2010 amended program limits. Harmony has been in a net cash position since the beginning of this calendar year. Through financial discipline, we built a strong balance sheet, which as mentioned earlier is now in a sizable net cash position of ZAR 2.9 billion. Financial flexibility places Harmony in a strong position to continue on its growth trajectory. This is just the same slide in US dollar terms. With over ZAR 12 billion 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 US$0.05 per share. We've delivered a geared year-on-year dividend increase meaning that our dividend increase exceeded the increase in gold price. Total cash returned to shareholders in FY '24 is close to ZAR 1.4 billion. This clearly demonstrates confidence in our plans and our cash flows. Allow me to hand back to Peter to conclude.

Thank you, Boipelo and thank you Beyers. 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. Most of what we achieved in FY '24 was due to Mponeng and Hidden Valley far exceeding the plans. As part of our FY '25 planning cycle, we have guided in line with our mine plans. As we progress with our risk-assessed life-of-mine plans, we believe that our orebodies can confidently deliver between 1.4 and 1.5 million ounces in FY '25. Underground recovery grades are expected to be above 5.8 grams per tonne, and all-in sustaining costs are expected to be between ZAR 1.02 and ZAR 1.1 million rand per kilogram. Let's break down the cost guidance. This slide illustrates the drivers behind the higher all-in sustaining cost for FY '25. These include lower guided production alongside higher developed capital spent across the underground mines. We've factored in annual inflationary increases of about 8.7%. Using the original FY '24 all-in sustaining cost guidance of ZAR 975,000 per kilogram as a reference point, this increase is in line with the annual mining cost inflation. The FY '24 all-in sustaining cost was much lower than guided due to Mponeng and Hidden Valley exceeding their annual production plans. We believe that the guided all-in sustaining cost is realistic, and we remain confident that Mponeng 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 operation metrics have improved, and we are maintaining good momentum at all our mines. We continue driving better efficiency 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 hope to introduce near-term copper through our Eva Copper Project and of course permit the Tier-1 Wafi-Golpu Copper gold periphery. Our balance sheet is strong and flexible, and our capital allocation framework balances our growth aspirations alongside shareholder returns. In closing, I would like to extend a special thanks to my team for their dedication and commitment towards achieving our goals. I want to make the point that the team we have put together has been together for a very long period, and I have the utmost respect for the mining team at Harmony. I would also like to thank our unions for their continued support—some of them are here today. We are grateful to our Board, shareholders, and other stakeholders for 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. Janet, if you can just control that. Any questions?

Hi Peter, good day and team as well. Bruce Williamson, Integral Asset Management. Could you just share some thoughts on your underground operations where you 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 is that just a bigger focus on cleaner mining producing stoping with and avoiding excess waste?

No, I think the major drive for that was really acquiring much higher-grade assets in Mponeng and Moab Khotsong. So that decision for Harmony was the right one at the time. When we bought Mponeng, the grades were not where they are today, but there was always this understanding that we were going to mine and, as you know, sequential extraction, we mine from one side to the other. AngloGold Ashanti always told us that we would get into very good grades, and we managed to achieve those grades. We will be there for a number of years. The new mines we acquired have been a game changer for us.

Hi, Peter. Leroy Mnguni 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. If you look at your FY '25 guidance, actually, taking a step back in FY '24, you beat your initial guidance quite substantially. If you look at your FY '25 guidance, is there optimism that there are certain parts in the portfolio where you are hoping to do a bit better than what you planned? So in other words, how conservative is that guidance? Then, regarding what Beyers was saying about the old tailings opportunity in the Free State 5.7 million ounces, that sounds pretty exciting. I wonder if you can provide a bit of color on that. I know the study is ongoing, but at a high level, would you need to build another plant there? How do the grades compare to your current tailings retreatment operations? Lastly, your CapEx has increased quite substantially both for FY '25 and even more for FY '26. Could you please unpack what the drivers are for the increases in your medium-term CapEx guidance?

Thank you, Leroy. Let me start. Last year, we started with guidance at 975,000 kilograms. We ended up at 901, and the major driver for that was that we had higher production. We had grades 6% better than planned for production. We don't plan to stop trying to achieve that and we think we can. We're very strict on our planning parameters. Harmony has never been about overpromising and underdelivering. We believe in being conservative in our planning, but also ensuring we stretch ourselves. Having said that, our production momentum currently is strong across all operations. We are doing well, as well as we did last year. With Doornkop, we choked back a bit to ensure we have enough hoisting capacity, and we are focused on project work to ensure safety. Expect 10% to 15% reduction in Doornkop production for this year. With regard to cost inflation, we expect around 8% this year. We have long-term agreements with our unions. We are busy with renewable energy and working toward our 100 megawatt plan. On the Free State, there are exciting opportunities, and we have massive resources there. We will likely entail partial building of another plant, but we are also retreating our current tailings. However, the Free State will not be as large as Mine Waste Solutions due to water constraints. Overall, we are very excited about the potential in both Free State and West Wits. The feasibility study is underway; I am confident in the direction we’re heading with that.

To add before you unpack the capital slide, remember that the deepening at Mponeng, which wasn’t included last year, brings about an additional billion for FY '25. We are starting with some early works now, but full swing will be in this financial year. This will all contribute to our capital expenditures moving forward.

Let's look at the capital slide. You can see that the sustaining capital we talked about involves increased development. The big jump this year is the billion that we will spend on growth capital associated with the Mponeng extension. The projects are steady, and we will keep developing the declines. The overall ZAR 10.8 billion capital expenditure is significant—Harmony has never seen that amount before in one year. But we are confident in our plans, especially with Golden. Last year, we managed our projects very effectively, and I’m pleased with our project execution and management capabilities.

Peter, you've been instrumental in reshaping this company, which is a key reason for its rewriting. I just want to commend your disclosure and guidance, which has improved substantially for self-analysis. However, there seems to be significant Key Man risk; how long do you intend to stay with the company, and what is your succession plan? Lastly, if there’s something on your to-do list, what's the most important goal you'd like to achieve before you leave? Boipelo, regarding all the cash, what are your intentions? Could you increase your liquidity through debt? How do you view the capital structure of the company going forward?

My intention is to step down at the end of December, effectively starting a new year as a retiree. We are already advancing the search for my successor; this process with the Board will be communicated at the right time. However, I want to stress that this has never been a one-man show. We've built a strong team over the years. I believe they will take this company to new heights. What I would like to achieve before I retire is to secure the Wafi-Golpu permit, which would be a significant milestone for us. Once we achieve that mining development contract, we can embark on that massive project ahead for Harmony that we are now well-positioned to execute.

Regarding our cash position, we have a cash headroom of ZAR 12 billion, and we are in a high CapEx phase. Although we anticipate significant costs, that project will justify our capital outlay in the coming years.

Any more questions? Do we have any questions online?

Actually on the Chorus call, we have no questions coming through.

One last question regarding grade evolution over the next 2 to 3 years? If we don’t look at a long-term plan for Harmony, we are in good grades now for Mponeng. Our current life-of-mine is showing potential for high-grade assets. While we have to call a day for lower-grade assets like Masimong eventually, we are confident that our grades of above 5.8 underground will remain sustained for quite some time.

Thanks Peter. I have a question from Rene Hochreiter. Can you provide any updates on the timing for Target and the cash flow positive situation there?

We completed the Target project with challenges, primarily due to environmental conditions. The setup of Target as a mine was complicated due to ventilation and cooling needs. Despite that, our operations are running well now, and Target has potential for good volumes over a long life span.

What about Uranium? Is the FY '24 base sustainable for production, and do you foresee more potential from a uranium perspective?

The uranium output we achieve from Moab is flexible based on grades. We currently enjoy good grades of uranium due to our ongoing operations, and the trends suggest this will sustain for the next several years.

Regarding new business and expansion opportunities, what are Harmony's geographic plans, and which projects should we look at?

As shown in the visual presentation, we can potentially maintain production of about 1.4 million ounces for the upcoming years. We need to develop our surface and underground projects, and we are committed to looking for opportunities that align with our strategy and improve our quality. Thank you all for being here, especially for what could be my last results presentation. It’s been an incredible journey since I joined Harmony in 2016, and it has greatly improved since then.