The streaming contract was assessed and has been accounted for as an own-use customer contract. At acquisition, the

streaming contract was initially recognised at a fair value of R1.4 billion in accordance with IFRS 3. The fair value of the contract

took into consideration the existing unfavourable gold price terms at acquisition, in relation to the comparative market gold price.

The obligation to deliver the contractually stipulated ounces over the remaining term of the agreement results in a significant

financing component. The interest accrues on the contract liability over the remaining contractual term. As the performance

obligation to deliver gold is met, the contract liability unwinds into revenue classified as "consideration from streaming contract"

The current portion of the liability is determined with reference to the current production profile of the operation for the next

The fair value of the unfavourable contract liability, which forms part of the streaming arrangement with Franco-Nevada

Barbados (Franco-Nevada), was measured as the difference between a market analyst consensus of gold prices and the fixed

cash consideration to be received for gold delivered. A post-tax real rate of 11.6% was used to discount the liability over the

Changes in the production plan will affect the subsequent measurement prospectively. This is the only input that is considered

for subsequent measurement. Harmony's cost of debt of 7.7% was used to impute the finance cost for the significant financing

Harmony's subsidiary, Chemwes, which owns the Mine Waste Solutions operation (MWS), has a contract with Franco-Nevada.

Franco-Nevada is entitled to receive 25% of all the gold produced through MWS. As part of the acquisition of MWS, Harmony

assumed the obligations enforced by the Franco-Nevada contract.

The contract is a streaming agreement that commenced on 17 December 2008 for which Franco-Nevada paid US$125 million

upfront for the right to purchase 25% of the gold production through MWS for a fixed amount of consideration until the balance of

the gold cap is delivered. As at 1 October 2020, the US$125 million upfront payment has been settled. The gold cap is a

provision included in the contract, which stipulates the maximum quantity of gold to be sold to Franco-Nevada over the term of

the agreement. The consideration is determined as the lower of the quoted spot gold price as per the London Metals Exchange

or US$400 per ounce, adjusted with an annual escalation adjustment.

On 23 October 2024, Harmony fulfilled all its obligations stemming from the streaming agreement with Franco Nevada.

The contract price receivable in US$/oz for each ounce of gold delivered is as follows:


	SA Rand
Figures in million	2025	2024
Balance at beginning of year	85	390
Finance costs related to significant financing component	1	18
Non-cash consideration for delivery of gold ounces (included in Revenue)	(86)	(323)
Balance at end of year	—	85
Current portion of streaming contract liability	—	85