Artimus RMA — Harmony Portfolio

Historical Portfolio

R2.1B

All years, all mines

Total Claims (11 Yrs)

16,371

2015–2026 across 14 entities

Group Repudiations

269

All products and years

NIHL Repudiations

175

65% of all repudiations

Section 40 Flagged

Employer reporting failures

Product Gaps

CJP, Funeral, GLA, DIP missing

Mine Entities

Tap a mine to expand

Universal Products (All 14 Mines)

COID · AUG · CICJP · PRMA

Core cover across entire portfolio

Products No Mine Has

GLA · DIP · CJP

Critical coverage gaps group-wide

Funeral Cover

1 / 14

Only Corporate HO (003H) has funeral benefit — 13 mines unprotected

Mines With All 4 Gaps

13 / 14

No CJP, no Funeral, no GLA, no DIP

Full Coverage Matrix

Code	Mine	COID	AUG	CICJP	CJP	Funeral	GLA	DIP	PRMA

COID=Compensation for Occupational Injuries & Diseases · AUG=Accidental Under-Group · CICJP=Combined IOD Claims Journey Policy · CJP=Commuting Journey Policy · GLA=Group Life Assurance · DIP=Disability/Income Protection · PRMA=Platinum Rand Mutual Assurance

Total Repudiations

269

2015–2026 across all products

NIHL (PLH < 10%)

175

65.1% of all repudiations — top driver

CJP Doc Failures

14-day submission rule violation — preventable

Section 40 Flagged

Employer reporting failures

Fatal Claim Rep.

Families potentially unpaid

Paid Before Rep.

R424K

Medical costs on later-repudiated claims

Repudiations by Mine

Code	Mine	COID	AUG	CICJP	CJP	Total	NIHL	Paid on Rep.

NIHL Repudiations

175

65% of all repudiations

Total NIHL Claims

1,705

2015–2026 full portfolio

Total NIHL Paid

R117M

All accepted NIHL claims

Avg NIHL Value

R68,649

Per accepted NIHL claim

Recovery Potential

~R2.4M

Conservative 20% appeal success rate

Primary Repudiation Grounds

PLH Deterioration < 10% From Valid Baseline

The dominant NIHL repudiation ground. Under Instruction 171 of COIDA, the employee's Percentage Loss of Hearing must deteriorate by at least 10% from the valid baseline audiogram. The majority of NIHL repudiations fail on this threshold — often by a small margin. Proactive audiometric monitoring can identify at-risk workers before claims are lodged.

No Causal Connection to Occupational Noise

The hearing deterioration observed is inconsistent with NIHL and cannot be attributed to workplace noise exposure levels. Requires independent audiological assessment to challenge. Consider specialist review for borderline cases.

Noise Exposure Below 85dB Threshold

Based on current noise exposure levels, the employee has not been exposed to excessive noise equivalent to 85 dB for 8 hours/day, 5 days/week — the COIDA minimum threshold. Workplace noise mapping should be reviewed and updated regularly.

Conductive Component Exclusion

When the conductive hearing loss component (not caused by occupational noise) is disregarded, the PLH does not reach the 10% threshold. A technical argument that may be contestable with specialist audiological input and case-by-case review.

NIHL Repudiations by Mine

Fatal Claim Repudiations

Families potentially left unpaid across 5 mines

CJP Repudiations

ALL due to doc non-submission within 14 days — 100% preventable

Mines Without Funeral

13 / 14

Only 003H Corporate HO has funeral benefit

Worst CJP Mine

043P

9 CJP repudiations at Moab Khotsong alone

Fatal Pension Repudiations

Mine	Code	Fatal Rep.	Notes
Target (Avgold)	020B	2	Dependants' pension status unclear — immediate follow-up required
Moab Khotsong	043P	1	Fatal pension repudiated
Masimong	105E	1	Dependant status to confirm
Chemwes	106D	1	Dependant status to confirm
Joel Mine	016D	1	Dependant status to confirm

CJP Repudiations by Mine

Mine	Code	CJP Rep.	Cause (All Same)
Moab Khotsong	043P	9	Acceptance form + Road Accident Questionnaire not submitted within 14 days (Clause 15.2.1)
Freegold	016C	3	Same as above
Randfontein 032A	032A	1	Same as above
Randfontein 105B	105B	1	Same as above
Tshepong	016E	1	Same as above
Target	020B	1	Same as above
HGM Ltd	105A	1	Same as above

⚠

Root Cause: 100% Correctable Process Failure

All 17 CJP repudiations share one root cause — failure to submit the CJP Policy Acceptance of Benefits Form and Road Accident Questionnaire within 14 days of the incident (Clause 15.2.1). This is entirely preventable through a dedicated CJP submission checklist and mine-level documentation training. Zero cost intervention, high recovery value.

Funeral/GLA Monthly Opp.

R30M+

Across 13 unprotected mines

DIP Monthly Opp.

R29M+

Across portfolio

CJP Monthly Opp.

R3.7M+

Across portfolio

NIHL Recovery

~R2.4M

20% conservative appeal success

Opportunity by Mine

Code	Mine	COID Lives	Funeral/GLA (p/m)	DIP (p/m)	CJP (p/m)

ⓘ Figures sourced from the 2025 Opportunity Sizing model based on COID lives per mine and actuarial per-worker contribution rates. Subject to underwriting review before client presentation.

Priority Action Plan

FUNERAL COVER — Immediate Rollout (13 Mines)

The single most critical gap. 13 of 14 Harmony entities have zero funeral benefit. In a deep underground gold mining environment, this leaves dependants entirely reliant on COIDA fatal pension claims — which face repudiation risk and processing delays. Monthly opportunity exceeds R30M across the portfolio. Escalate immediately to all mine principals.

CJP DOCUMENTATION TRAINING — Priority: 043P, 016C

17 CJP repudiations are entirely attributable to one correctable process failure: non-submission within 14 days. Implement dedicated CJP documentation process at all mines, priority at Moab Khotsong (9 repudiations) and Freegold (3). Zero cost intervention with direct recovery value.

NIHL AUDIOMETRIC MONITORING PROGRAMME

175 NIHL repudiations represent a systemic, unmet welfare need. Recommended: (a) proactive audiometric monitoring to track PLH trend before claims are lodged; (b) clear employee communication on COIDA thresholds; (c) supplementary AUG hearing protection cover for workers approaching threshold. Recovery potential: ~R2.4M at conservative 20% appeal success.

GLA & DISABILITY/INCOME PROTECTION — Strategic Rollout

No mine carries GLA or DIP. Given the high rate of serious injuries — head (2,517 claims, R226M), knee/lower leg (1,429 claims, R212M), wrist/hand (2,061 claims, R199M) — these products provide income continuity for permanently disabled workers and financial security for dependants. Combined monthly DIP opportunity: R29M+.

SECTION 40 COMPLIANCE — Group-Wide Training

35 repudiated claims carry Section 40 flags, indicating systemic employer reporting failures under COIDA. Implement structured Section 40 compliance training group-wide, with focus on Moab Khotsong, Tshepong, and Golden Core — the three highest-volume repudiation mines.

Top Injury Categories — Group Total 2015–2025

Category	Total Claims	Total Paid	Avg/Claim	Flag
Injuries to the Head	2,517	R226M	R89,869	PD% often challenged on audit
Injuries Wrist & Hand	2,061	R199M	R96,643	High disability lump-sums likely under-assessed
Noise Induced Hearing Loss	1,705	R117M	R68,649	175 repudiated — ~R2.4M appeal potential
Injuries Ankle & Foot	1,447	R83M	R57,394	Declining volumes, high per-claim value
Injuries Knee & Lower Leg	1,429	R212M	R148,544	Ongoing PD pensions — very high action risk

Current Disability Spend

R114.3M

Per reporting period — TTD + PD pensions + PD lump sums
43.4% of ALL claims spend

Annual IOD Claim Rate

4.53%

16,371 claims ÷ 11 years ÷ 32,871 COID lives
≈ 299 disability cases per year

Disability Incidence Rate

0.91%

Per covered worker per year (conservative)
20% of IOD claims result in disability

DIP Group Monthly Opportunity

R26.7M

Actuarial per-worker rates across 13 mines
R319.8M annually — converts risk to fixed cost

WHY SHOULD THE MINE TAKE OUT DIP COVER?

The direct financial impact on the employer — not just the worker

▶

What the mine pays today (uninsured)

Mandatory 3-Month TTD Advance

Employer pays 75% of capped earnings for first 3 months — recoverable via WCL6 only if filed correctly. Across Harmony: R50.9M TTD spend — WCL6 recovery completeness unaudited.

The COIDA Earnings Cap Gap

COIDA caps at R54,153/month. Worker earning R65,000 gets only R40,615 (75% of cap). Gap = R8,135/month per above-cap disabled worker. Mine absorbs this informally or faces union dispute.

Replacement Cost per Permanent Disability

Recruitment + induction + underground competency certification = ~R85,000 per permanently disabled worker who cannot return. Underground gold: high replacement friction.

What DIP eliminates for the mine

✓ WCL6 Gap Eliminated

Where WCL6 not filed, DIP ensures worker is covered — removes the mine's informal obligation to top up

✓ COIDA Cap Gap Covered

DIP pays the gap directly to the worker. Mine has zero informal liability for above-cap earnings during disability

✓ COIDA Dispute Buffer

Where a COIDA claim is repudiated, DIP continues paying — worker doesn't come back to the mine

✓ Section 40 Risk Reduction

Demonstrable care for disabled workers reduces additional compensation exposure under Section 40 employer negligence claims

The CFO Argument: Known Cost vs Unknown Exposure

DIP converts open-ended, informal, unpredictable disability liability into a defined, fixed monthly premium. The mine stops absorbing R8,135/month informal gaps, unrecovered WCL6 advances, and replacement costs — and replaces them with a single line item on the income statement.

R114.3M

Current disability spend (recorded)

Unknown

Informal top-ups & unrecovered WCL6

Fixed

DIP premium replaces all of this

ACTUARIAL ASSUMPTIONS

All inputs used in the employer risk calculation — fully auditable

▶

COIDA Earnings Cap (monthly, 2024)

R54,153

R649,836 p.a. — Gov. Gazette Notice R.1028, effective 1 March 2024

COIDA TTD Benefit Rate

75%

Statutory: 75% of capped monthly earnings paid during temporary total disablement

Employer TTD Advance Period

3 months

Employer pays first 3 months before RMA takes over. Recoverable via WCL6

Annual IOD Claim Rate

4.53%

Derived: 16,371 claims ÷ 11 years ÷ 32,871 COID lives (Harmony DRG data)

IOD Claims Resulting in Disability

20%

Conservative industry rate for deep-level gold mining (TTD >90 days + PD combined)

Disability Claim Rate (per worker)

0.91%

Derived: 4.53% × 20% — approx. 299 disability cases per year across group

Workers Earning Above COIDA Cap

30%

Conservative: senior miners, team leaders, artisans, engineers in deep-level gold

Avg. Above-Cap Earnings (monthly)

R65,000

Conservative for team leaders and artisans. Actual earnings often higher

Income Gap Per Disabled Worker (p/m)

R8,135

(R65,000 − R54,153) × 75% TTD rate — per above-cap worker, per month

Assumed Disability Duration

6 months

Conservative minimum. PD cases run for life — this model shows minimum exposure only

Replacement Cost (permanent disability)

R85,000

Recruitment + induction + underground competency certification per replaced worker

% of Disability Cases Assumed Permanent

20%

Conservative permanent disability rate in deep-level gold mining

HOW WE CALCULATE EMPLOYER RISK

Three-component formula — applied per mine, per year

▶

For each mine, the uninsured employer exposure is the sum of three components. All figures are conservative minimums — actual exposure for PD cases running for life is materially higher.

Employer TTD Advance = Annual disability claims × R54,153 × 75% × 3 months

The mandatory employer cash advance during the first 3 months of disability. Recoverable via WCL6 — but only if filed. Unrecovered advances are a permanent cash loss.

Income Gap = Annual disability claims × 30% above-cap × R8,135/month × 6 months

For every above-cap worker disabled, COIDA pays only on R54,153. The mine informally absorbs the gap or faces union pressure. DIP eliminates this completely.

Replacement Cost = Annual disability claims × 20% permanent × R85,000

Permanently disabled workers must be replaced. Underground gold replacement: advertising, agency fees, medical fitness, induction, and competency certification.

Total Employer Risk = A + B + C (per mine, per year)

This is the uninsured, open-ended exposure the mine carries today. DIP converts it to a fixed monthly premium.

PER-MINE DISABILITY RISK vs DIP PREMIUM

What each mine is exposed to vs what DIP would cost them monthly

▶

Code	Mine	COID Lives	Ann. Disability Claims	Dis. Rate	Employer Risk (A+B+C Annual)	DIP Premium (Monthly)	DIP Annual Cost

ⓘ Employer risk figures are conservative minimums. PD cases running for life multiply component B significantly. DIP premium from 2025 Opportunity Sizing model.

⇨

GROUP NET POSITION — THE SAVINGS CASE

What disability is already costing Harmony vs what DIP costs to fix it

▶

Disability Spend — Current Period

R114.3M

TTD R50.9M + PD Pensions R29.7M + PD Lump Sums R33.7M
43.4% of ALL claims spend

Unrecorded Informal Exposure

Unknown

WCL6 gaps + cap-gap top-ups + union settlements
Not in any report — absorbed silently by mines

DIP: Annual Group Premium

R319.8M

R26.7M/month × 12 — covers all of the above
Fixed cost. No surprises.

Disability Spend as % of Total Claims Spend

Medical CostsR90.5M — 34.3%

Fatal PensionsR57.3M — 21.8%

TTD (Employer Advance)R50.9M — 19.3%

PD Lump SumsR33.7M — 12.8%

PD Pensions (ongoing)R29.7M — 11.3%

Disability total (TTD + PD): R114.3M = 43.4% of all claims spend — the single largest cost category

⚠

The Key Point for the CFO Conversation

The DIP premium (R319.8M annually) appears larger than current recorded disability spend (R114.3M). This comparison is misleading in the mine's favour — because R114.3M is what RMA pays to workers. It does not include: informal top-ups for above-cap earners, unrecovered WCL6 advances where the form wasn't filed, HR and management time in disability disputes, union settlements, or replacement costs. DIP covers ALL of this — the recorded spend plus the hidden spend — for a single known monthly amount.

✓ What the Mine Gets for the DIP Premium

1. WCL6 recovery gap eliminated — zero cash loss if form not filed

2. COIDA earnings cap gap covered for all above-cap workers

3. Worker paid during COIDA repudiation — mine not in the dispute

4. Section 40 additional compensation risk reduced

5. Labour relations posture improved — tangible welfare commitment

6. Replacement cost pressure reduced — clean exit for permanent disability

▲

DISABILITY RISK BY INJURY CATEGORY

Which injuries are driving the highest disability spend — and where DIP is most critical

▶

The five highest-value injury categories from the 11-year DRG data. These are the workers most likely to generate long-term disability pensions — and the ones where the COIDA earnings cap gap is most expensive for the mine.

Injury Category	Total Claims	Total Paid	Avg / Claim	DIP Relevance
Knee & Lower Leg	1,429	R212M	R148,544	Highest avg value — ongoing PD pensions likely. Most at risk of permanent disability above cap.
Head Injuries	2,517	R226M	R89,869	High volume + high value. Cognitive impairment cases create long-term disability.
Wrist & Hand	2,061	R199M	R96,643	Fine motor loss often prevents return to underground work — permanent replacement.
NIHL (Hearing Loss)	1,705	R117M	R68,649	175 repudiated — workers with no COIDA payout. DIP covers them while repudiation appealed.
Ankle & Foot	1,447	R83M	R57,394	Lower avg value but high volume. Declining trend — engineering controls improving.
▲ Heat / Radiation / Pressure	332	Surging	TBC	100× growth since 2015 (0 → 332 in 2025). Emerging DIP risk — long-term disability potential unknown.