Wrap Text
HAR - Harmony - Results for the second quarter and six months ended 31
December 2010
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
("Harmony" or "Company")
JSE Share code: HAR
NYSE Share code: HMY
ISIN: ZAE000015228
Results for the second quarter and six months ended 31 December 2010
SHAREHOLDER INFORMATION
Issued ordinary share capital 429 506 618
at 31 December 2010 shares
Market capitalisation
At 31 December 2010 (ZARm) 35 649
At 31 December 2010 (US$m) 5 412
Harmony ordinary share
and ADR prices
12 month high (1 January 2010 to
31 December 2010) for ordinary shares R88.02
12 month low (1 January 2010 to
31 December 2010) for ordinary shares R68.65
12 month high (1 January 2010 to
31 December 2010) for ADRs US$12.75
12 month low (1 January 2010 to
31 December 2010) for ADRs US$8.79
Free float
Ordinary shares 100%
ADR ratio 1:1
JSE Limited HAR
Range for quarter
(1 October 2010 to R76.18 -
31 December 2010 - closing prices) R88.02
Average volume for the
quarter (1 October 2010 to 1 178 082
31 December 2010) shares per day
New York Stock
Exchange, Inc. HMY
Range for quarter
(1 October 2010 to US$10.75 -
31 December 2010 - closing prices) US$12.75
Average volume for the
quarter (1 October 2010 to 1 961 517
31 December 2010) shares per day
Key features
- Closed non-profitable operations
- Growth projects in South Africa
* increased production
* quality ounces
- Majority of capital expenditure spent
- Hidden Valley a great mine
* gold and silver recoveries improved
* commissioned and building-up
- Wafi/Golpu growing quarter on quarter
- Experienced and focused management team
Financial summary for the second quarter and six months ended 31 December 2010
Quarter Quarter
December September Q-on-Q
2010 2010 variance
%
Gold produced(1) - kg 10 055 10 471 (4)
- oz 323 275 336 650 (4)
Cash costs - R/kg 216 595 228 658 5
- US$/oz 979 974 (1)
Gold sold - kg 10 046 10 869 (8)
- oz 322 986 349 447 (8)
Gold price - R/kg 303 354 287 401 6
received - US$/oz 1 371 1 224 12
Cash operating - R million 867 652 33
profit - US$ million 126 89 42
Basic - SAc/s 69 24 >100
earnings - USc/s 10 3 >100
per share*
Headline - Rm 294 141 >100
profit* - US$m 43 19 >100
Headline - SAc/s 69 33 >100
earnings - USc/s 10 5 100
per share*
Exchange rate - R/US$ 6.88 7.31 (6)
6 months 6 months Year-on-
December December year
2010 2009 variance
%
Gold produced(1) - kg 20 526 23 283 (12)
- oz 659 925 748 555 (12)
Cash costs - R/kg 222 787 190 172 (17)
- US$/oz 965 775 (25)
Gold sold - kg 20 915 23 111 (10)
- oz 672 433 743 034 (10)
Gold price - R/kg 295 069 251 968 17
received - US$/oz 1 294 1 028 26
Cash operating - R million 1 519 1 351 12
profit - US$ million 215 178 21
Basic - SAc/s 93 21 >100
earnings - USc/s 13 3 >100
per share*
Headline - Rm 435 158 >100
profit* - US$m 61 21 >100
Headline - SAc/s 101 37 >100
earnings - USc/s 14 5 >100
per share*
Exchange rate - R/US$ 7.09 7.63 (7)
* Reported amounts include continuing operations only
(1) Production statistics for Steyn 2 and Target 3 have been included. These
mines are in a build-up phase and revenue and costs are currently capitalised.
Revenue capitalised includes: Quarter ending Dec 2010 Steyn 2, 18 kg
(September 2010 - 31 kg) and Target 3, 170 kg (September 2010 - 111 kg), 6
months ending Dec 2010 Steyn 2, 49 kg (December 2009 - Nil) and Target 3, 281
kg (December 2009 - Nil).
Harmony`s Annual Report, Notice of Annual General Meeting, its Sustainable
Development Report and its annual report filed on a Form 20F with the United
States` Securities and Exchange Commission for the year ended 30 June 2010 are
available on our website (www.harmony.co.za).
Forward-looking statements
This quarterly report contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995 with
respect to Harmony`s financial condition, results of operations, business
strategies, operating efficiencies, competitive positions, growth
opportunities for existing services, plans and objectives of management,
markets for stock and other matters. Statements in this quarter that are not
historical facts are "forward-looking statements" for the purpose of the safe
harbour provided by Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, and Section 27A of the U.S. Securities Act of 1933, as amended.
Forward-looking statements are statements that are not historical facts. These
statements include financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and expectations with
respect to future operations, products and services, and statements regarding
future performance. Forward-looking statements are generally identified by
the words "expect", "anticipates", "believes", "intends", "estimates" and
similar expressions. These statements are only predictions. All forward-
looking statements involve a number of risks, uncertainties and other factors
and we cannot assure you that such statements will prove to be correct.
Risks, uncertainties and other factors could cause actual events or results
to differ from those expressed or implied by the forward-looking statements.
These forward-looking statements, including, among others, those relating to
the future business prospects, revenues and income of Harmony, wherever they
may occur in this quarterly report and the exhibits to this quarterly report,
are necessarily estimates reflecting the best judgment of the senior
management of Harmony and involve a number of risks and uncertainties that
could cause actual results to differ materially from those suggested by the
forward-looking statements. As a consequence, these forward-looking statements
should be considered in light of various important factors, including those
set forth in this quarterly report. Important factors that could cause actual
results to differ materially from estimates or projections contained in the
forward looking statements include, without limitation:
- overall economic and business conditions in South Africa and elsewhere;
- the ability to achieve anticipated efficiencies and other cost savings in
connection with past and future acquisitions;
- increases/decreases in the market price of gold;
- the occurrence of hazards associated with underground and surface gold
mining;
- the occurrence of labour disruptions
- availability, terms and deployment of capital;
- changes in Government regulation, particularly mining rights and
environmental regulations;
- fluctuations in exchange rates;
- currency devaluations and other macro- economic monetary policies; and
- socio-economic instability in South Africa and regionally.
Chief Executive`s Review
Overview
During the course of the second quarter of financial year 2011 we continued to
see the benefits of the numerous management initiatives coming through, with
higher production and lower costs evident from our growth projects, namely
Doornkop, Phakisa and Hidden Valley. It was particularly pleasing to see good
progress in our Papua New Guinean operations with improved production at
Hidden Valley and positive developments at Wafi-Golpu. However, we also faced
certain operational challenges, such as the unplanned production stoppage at
Kusasalethu during the quarter. The necessary measures to rectify this issue
are implemented and we are confident the operation will meet its targets next
quarter. Throughout the company our operational management teams remain
focused and as such we are confident about meeting our long term production
targets.
Safety
It is with deep regret we report that four of our colleagues died in mining-
related incidents during the quarter. They were Jackson Morena (a rigger at
Kusasalethu), Msiphani Mashwama (member of the stope team) and Lehlohonolo
Nchaka (rock drill operator), both from Bambanani, and Petrose Rapeane
(tramming supervisor at Tshepong). We extend our deepest condolences to their
families, friends and colleagues.
Safety is the primary priority for every manager at Harmony and we share a
common vision with the union leadership with regard to safety in the
workplace. Progress on this front can only be addressed through a co-operative
approach that ensures that the right environment from a systems, planning,
communication and training perspective is in place, combined with an
acceptance of joint responsibility by management and employees for our
actions. It is important too that such an environment empowers people;
management, supervisors, workers and union representatives to stop work and
withdraw when they feel it is unsafe, or prevent others from acting in an
unsafe way. During the past quarter Harmony restructured its central safety
function by transferring more senior and experienced personnel to assist and
advise operational teams. Our continued focus on safety has resulted in an
improved underlying safety performance.
Gold market
In Rand per kilogram terms, the received gold price increased by 6% from R287
401/kg in the previous quarter to R303 354/kg in the current quarter. Over the
course of calendar year 2010, the gold price in dollar terms increased by 29%.
The strength of the Rand continues to place pressure on the R/kg price which,
in turn, continues to place further pressure on gold miners whose costs are in
Rand. We feel the continued investment demand for gold will be the critical
factor supporting the gold price in 2011 and believe that even higher gold
prices may be achieved this year.
Operating performance
Production at Doornkop, Phakisa and Hidden Valley improved substantially, by
19%, 34% and 23%, respectively. However, overall total gold production for the
past quarter decreased by 4% quarter on quarter from 10 471kg to 10 055kg,
mainly as a result of safety stoppages at Bambanani and Kusasalethu. While
volumes were 8% lower than the previous quarter at 4 675 000t, the average
yield was 4% higher at 2.11g/t. Underground gold production was 5% lower at 8
273kg, as volumes were 4% lower at 1 759 000t and the underground grade
declined by 2% to 4.6g/t.
Both Tshepong and Masimong showed a steady production performance, with
Masimong still the lowest cost producer at R168 907/kg. Target 3 is back on
track, with a 57% improvement in tonnes mined, and Joel is also back in
production. Following the closure of Merriespruit 1, the Virginia operations,
now comprising solely of Unisel, produced net free cash of R43 million (the
Virginia operations recorded a loss of R36 million in the previous quarter),
validating the decision to close the loss-making shafts.
The gold production at Hidden Valley increased by 23% to 53 169oz and silver
production increased by 44% to 382 655oz quarter on quarter (50% attributable
to Harmony). Hidden Valley is a high value asset for Harmony and it is
particularly pleasing to see the improving results after some commissioning
problems.
Countering these production improvements was Evander 8, which experienced a
drop in face grade causing gold production to decrease by 6%. Kalgold`s grade
and volume was lower quarter on quarter and gold production decreased by 8%.
Bambanani`s volume was down by 19%, with grade only increasing by 3%. The
Steyn 2 production plan was revised and the major focus will now be to get the
shaft pillar into production by August 2011.
The rock/ventilation shaft accident which occurred in October 2010 at
Kusasalethu restricted hoisting and was the main contributor to the group`s
overall lower production. The shaft is now back to hoisting capacity and the
underground accumulations of the December 2010 quarter will be rectified.
Financial performance
The Rand per kilogram unit cost for the December 2010 quarter decreased by 5%
quarter on quarter to R216 595/kg from R228 658/kg. This is mainly
attributable to the decrease in cash operating costs, which decreased by R225
million (10%) quarter on quarter. The primary factors for the decrease were
the lower electricity (winter tariffs of R147 million) and labour costs.
In Rand per kilogram terms, the gold price received increased by 6% from R287
401/kg in the September 2010 quarter to R303 354/kg in the current quarter. A
decrease in the gold sold for the December 2010 quarter of 823kg (8%) to 10
046 kilograms resulted in a drop in revenue of 3% compared to the previous
quarter.
Capital expenditure increased by R88 million (12%) to R835 million in the
quarter under review compared with R747 million in September 2010 quarter, in
line with the company`s mine plans.
Operating profit for the quarter increased by R215 million (33%) to R867
million, compared with R652 million in the September 2010 quarter.
Wafi/Golpu
The Golpu resource continues to expand to the north as drilling continues to
define further mineralisation. A significant intersection of 595m @ 2.03%
copper and 1.65g/t gold (5.0g/t gold equivalent) has been reported in WR363.
The drilling campaign this quarter included holes to gain metallurgical
samples of Wafi and geotechnical information for the Watut decline. The pre-
feasibility study technical work packages have been allocated to various
consultants and is progressing well (1).
Due to the continuing robustness of the Golpu resource, the study group is
considering upgrading early works to accommodate likely operating scenarios,
including the construction of twin declines and purchase of land for early
infrastructure. This will be assessed by management and, if considered
appropriate, will be submitted for board approval. Recent exploration has
produced better than expected results and we are very pleased with the
progress here.
Looking ahead
We remain confident that we will reach our long term targets and our focus is
to increase production to 2Moz of gold by FY13, with costs per tonne milled in
the lowest quartile of South African producers. The company has turned the
corner, with the closure of unprofitable operations, our longer-life lower
cost operations are profitable and sustainable. With the closure of some
shafts and unplanned production setbacks during the first six months of
financial year 2011, production for the financial year 2011 will most likely
be between 1.45Moz and 1.5Moz.
Harmony is well positioned to reap the benefits of a number of the initiatives
we have implemented over the last three years aimed at optimising the asset
portfolio and increasing operational efficiency.
We will continue to strive for an improved safety performance and as ever, our
employees have the right to withdraw from unsafe areas. Overall, we have seen
improved safety figures and we hope to continue this trend.
Given the expertise of our operational management teams, I feel confident in
our ability to clear any hurdles in reaching our goal of being a sustainable
low cost high quality producer.
Graham Briggs
Chief Executive Officer
(1) The technical information on Hidden Valley was compiled by Greg Job,
Harmony`s New Business Executive for South-East Asia, who has the overall
responsibility and accountability for the Golpu Project, in terms of
the South African Code for the Reporting of Exploration Results,
Mineral Resources and Ore Reserves (SAMREC) 2007. Mr Job has 21 years
experience in mine and resource geology and is a member of the Australian
Institute of Mining and Metallurgy. He is a full time employee of Harmony
and qualifies as Competent Person as defined in the SAMREC code and the
Australian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves (JORC). Mr Job has consented to the inclusion of the exploration
details based on the information in the form and context in which it
appears.
Safety and health
Safety
Our approach to safety is comprehensive and includes training, auditing,
communication, specific management interventions and programmes and on-going
campaigns. There is not a safety-related event or issue that is not considered
or addressed in a co-operative way on-mine between unions and management, from
the introduction of new standards, to training needs, to investigations into
accidents - and that is the way it should be. We are in this together and
together our safety target can be reached. Our number one safety rule - that
every employee has the right to withdraw from an unsafe area - stands and is
non-negotiable.
Tragically, four fatalities occurred in three incidents at the South African
operations during the December 2010 quarter.
Harmony achieved a single digit figure in respect of its Lost Time Injury
Frequency Rate (LTIFR) for the ninth quarter in a row. For the year to date,
the LTIFR (per million hours worked) improved by 3% when compared to the
actual figure for the previous year (from 7.73 to 7.47) and by 15% quarter on
quarter (from 8.06 to 6.88).
The Reportable Injury Frequency Rate (RIFR) (per million hours worked) to date
regressed by 6% when compared to the actual figure for the previous year (from
4.19 to 4.43) but improved by 15% quarter on quarter (from 4.78 to 4.08).
The Fatal Injury Frequency Rate (FIFR) to date rate rose by 5% when compared
to the actual figure for the previous year (from 0.21 to 0.22), but improved
by 33% quarter on quarter (from 0.27 to 0.18).
Safety achievements for the quarter included:
Total Harmony surface and
underground operations: 1 000 000 fatality free shifts
South African surface and
underground operations: 1 000 000 fatality free shifts
South African surface operations: 2 000 000 fatality free shifts
Kusasalethu, Doornkop,
Evander and Kalgold: 2 000 000 fatality free shifts
Masimong: 1 000 000 fatality free shifts
Evander 8: 500 000 fatality free shifts
Unisel and Merriespruit 1: 500 000 fatality free shifts
Doornkop: 500 000 fatality free shifts
The following operations completed the December 2010 quarter without an
injury:
Masimong 4
Phoenix Plant
Target Plant
Harmony 1 Plant
Free State Commercial Services and Transport
Randfontein Commercial Services and Transport
Evander Workshops
Evander Services
Randfontein Surface Operations
Merriespruit 3
The following operations completed two consecutive quarters without an injury
Phoenix Plant
Target Plant
Free State Commercial Services and Transport
Randfontein Commercial Services and Transport
Evander Workshops
Evander Services
Health
During the quarter our pro-active approach to the health and wellness of our
employees continued. Our objective remains to improve health management
programmes and effectively utilise clinical information. This includes the
review of policies, procedures, and processes as well as training, on an on-
going basis. These efforts have resulted in improved health and a better
quality of life for our employees.
See our Sustainable Development Report for more details on our website
www.harmony.co.za.
Financial overview
Cash operating profit increased by 33% to R867 million in the December 2010
quarter. This was mainly due to a decrease in production cost of R225 million
as a result of lower electricity tariffs and restructuring efforts. This
decrease was offset by a decrease in revenue, as a result of a 4% lower gold
production, which resulted in lower gold sales.
Earnings per share
Basic earnings per share increased from 24 SA cents to 69 SA cents. Similarly
headline earnings per share increased from 33 SA cents to earnings of 69 SA
cents.
Revenue
Revenue decreased from R3 083 million to R2 990 million as a result of the
lower gold production. This decrease was offset by an increase in the Rand
gold price received from R287 401/kg to R303 354/kg.
Cost of sales
Cost of sales decreased from R2 995 million to R2 506 million in the December
2010 quarter. This was due to the decrease of R225 million in production costs
and insurance credits to the value of R179 million following the unwinding of
the previous insurance scheme.
Other income/expenses
Other income amounted to R6 million in the December 2010 quarter, compared to
an expense of R54 million in the September 2010 quarter, which included R47
million foreign exchange losses from other reserves on the liquidation of
foreign subsidiaries.
Gain on financial instruments
The net gain on financial instruments amounted to R78 million in the December
2010 quarter, which was an increase in fair value of the Nedbank Equity Linked
Deposits held by the Environmental Trusts. In the September 2010 quarter this
amount was R311 million, which comprised mainly of the revaluation of the
Freegold option by R273 million following the conclusion of the sales
agreement to sell the option to Wits Gold.
Capital expenditure
Total capital expenditure increased by 12% to R835 million in the December
2010 quarter with R750 million spent in South Africa and R85 million in PNG.
Borrowings
During the quarter an additional R750 million funding facility was arranged
with Nedbank Limited on similar terms to the existing facility. Of this, R500
million was drawn down while R90 million was repaid on the existing facility.
The undrawn facility at balance sheet date was R550 million.
CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)
Quarter ended
31 December 30 September 31 December 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
Note R million R million R million
Continuing operations
Revenue 2 990 3 083 2 971
Cost of sales 2 (2 506) (2 995) (2 656)
Production costs (2 093) (2 408) (2 172)
Royalty expense (30) (23) -
Amortisation and
depreciation (442) (426) (320)
Impairment of assets - - (104)
Employment termination
and restructuring costs (54) (78) (3)
Other items 113 (60) (57)
Gross profit 484 88 315
Corporate, administration
and other expenditure (96) (94) (95)
Social investment
expenditure (23) (16) (20)
Exploration expenditure 3 (76) (99) (45)
Profit on sale of
property, plant and
equipment 1 16 1
Other income/(expenses) - net 6 (54) (20)
Operating profit/(loss) 296 (159) 136
(Loss)/profit from
associates (19) (8) 25
Profit/(loss) on sale
of investment
in subsidiary - - -
Net gain/(loss) on
financial instruments 4 78 311 3
Investment income 38 14 54
Finance cost (69) (59) (37)
Profit before taxation 324 99 181
Taxation (28) 6 (59)
Normal taxation - (9) (14)
Deferred taxation (28) 15 (45)
Net profit/(loss) from
continuing operations 296 105 122
Discontinued operations
Profit/(loss) from
discontinued
operations 5 23 (3) (4)
Net profit/(loss) 319 102 118
Attributable to:
Owners of the parent 319 102 118
Non-controlling
interest - - -
Earnings/(loss) per
ordinary share (cents) 6
- Earnings/(loss) from
continuing operations 69 24 29
- Earnings/(loss) from
discontinued
operations 5 (1) (1)
Total earnings/(loss)
per ordinary share (cents) 74 23 28
Diluted earnings/(loss) per
ordinary share (cents) 6
- Earnings/(loss) from
continuing operations 69 24 29
- Earnings/(loss) from
discontinued operations 5 (1) (1)
Total diluted
earnings/(loss) per
ordinary share (cents) 74 23 28
Six months ended Year ended
31 December 31 December 1 30 June
2010 2009 2010
(Audited)
R million R million R million
Continuing operations
Revenue 6 073 5 718 11 284
Cost of sales (5 501) (5 256) (10 484)
Production costs (4 501) (4 367) (8 325)
Royalty expense (53) - (33)
Amortisation and depreciation (868) (670) (1 375)
Impairment of assets - (104) (331)
Employment termination and
restructuring costs (132) (3) (205)
Other items 53 (112) (215)
Gross profit 572 462 800
Corporate, administration and other
expenditure (190) (174) (382)
Social investment expenditure (39) (29) (81)
Exploration expenditure (175) (93) (219)
Profit on sale of property, plant
and equipment 17 1 104
Other income/(expenses) - net (48) (94) (58)
Operating profit/(loss) 137 73 164
(Loss)/profit from associates (27) 56 56
Profit/(loss) on sale of investment
in subsidiary - 5 (24)
Net gain/(loss) on financial
instruments 389 (2) 38
Investment income 52 125 187
Finance cost (128) (91) (246)
Profit before taxation 423 166 175
Taxation (22) (77) (335)
Normal taxation (9) (43) (84)
Deferred taxation (13) (34) (251)
Net profit/(loss) from continuing
operations 401 89 (160)
Discontinued operations
Profit/(loss) from discontinued
operations 20 - (32)
Net profit/(loss) 421 89 (192)
Attributable to:
Owners of the parent 421 89 (192)
Non-controlling interest - - -
Earnings/(loss) per ordinary share
(cents)
- Earnings/(loss) from continuing
operations 93 21 (38)
- Earnings/(loss) from
discontinued operations 5 - (8)
Total earnings/(loss) per ordinary
share (cents) 98 21 (46)
Diluted earnings/(loss) per
ordinary share (cents)
- Earnings/(loss) from continuing
operations 93 21 (38)
- Earnings/(loss) from
discontinued operations 5 - (8)
Total diluted earnings/(loss) per
ordinary share (cents) 98 21 (46)
1 The comparative figures are re-presented due to Mount Magnet being
reclassified as a discontinued operation. See note 5 in this regard.
The accompanying notes are an integral part of these condensed consolidated
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)
Quarter ended
31 December 30 September 31 December
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Net profit/(loss) for the period 319 102 118
Other comprehensive (loss)/income
for the period, net of income tax (161) 106 (51)
Foreign exchange translation (131) 106 (57)
Fair value movement of
available-for-sale investments (30) - 6
Total comprehensive income/(loss)
for the period 158 208 67
Attributable to:
Owners of the parent 158 208 67
Non-controlling interest - - -
Six months ended Year ended
31 December 31 December 30 June
2010 2009 2010
(Audited)
R million R million R million
Net profit/(loss) for the period 421 89 (192)
Other comprehensive (loss)/income for
the period, net of income tax (55) (36) (131)
Foreign exchange translation (25) (38) (127)
Fair value movement of
available-for-sale investments (30) 2 (4)
Total comprehensive income/(loss)
for the period 366 53 (323)
Attributable to:
Owners of the parent 366 53 (323)
Non-controlling interest - - -
CONDENSED CONSOLIDATED BALANCE SHEET (Rand)
At At
31 December 30 September
2010 2010
(Unaudited)
Note R million R million
ASSETS
Non-current assets
Property, plant and equipment 30 218 29 873
Intangible assets 2 199 2 199
Restricted cash 26 116
Restricted investments 1 864 1 787
Investments in financial assets 264 296
Investments in associates 358 377
Inventories 232 237
Trade and other receivables 69 67
35 230 34 952
Current assets
Inventories 943 902
Trade and other receivables 962 649
Income and mining taxes 102 73
Restricted cash - -
Cash and cash equivalents 837 772
2 844 2 396
Assets of disposal groups classified as
held for sale 5 - -
2 844 2 396
Total assets 38 074 37 348
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 277 28 269
Other reserves 266 395
Retained earnings 897 578
29 440 29 242
Non-current liabilities
Deferred tax 3 613 3 572
Provision for environmental
rehabilitation 1 752 1 723
Retirement benefit obligation and other
provisions 179 169
Borrowings 7 1 243 970
6 787 6 434
Current liabilities
Borrowings 7 344 207
Income and mining taxes 10 13
Trade and other payables 1 493 1 452
1 847 1 672
Liabilities of disposal groups
classified as held for sale 5 - -
1 847 1 672
Total equity and liabilities 38 074 37 348
Number of ordinary shares in issue 429 506 618 428 850 854
Net asset value per share (cents) 6 854 6 819
At At
30 June 31 December
2010 2009
(Audited)
R million R million
ASSETS
Non-current assets
Property, plant and equipment 29 556 28 862
Intangible assets 2 210 2 217
Restricted cash 146 167
Restricted investments 1 742 1 697
Investments in financial assets 12 20
Investments in associates 385 385
Inventories 214 77
Trade and other receivables 75 74
34 340 33 499
Current assets
Inventories 987 1 103
Trade and other receivables 932 1 108
Income and mining taxes 74 55
Restricted cash - 280
Cash and cash equivalents 770 808
2 763 3 354
Assets of disposal groups classified as held for
sale 245 -
3 008 3 354
Total assets 37 348 36 853
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 261 28 096
Other reserves 258 375
Retained earnings 690 971
29 209 29 442
Non-current liabilities
Deferred tax 3 534 3 317
Provision for environmental rehabilitation 1 692 1 612
Retirement benefit obligation and other provisions 169 167
Borrowings 981 565
6 376 5 661
Current liabilities
Borrowings 209 460
Income and mining taxes 9 11
Trade and other payables 1 410 1 279
1 628 1 750
Liabilities of disposal groups classified as held
for sale 135 -
1 763 1 750
Total equity and liabilities 37 348 36 853
Number of ordinary shares in issue 428 654 779 426 079 492
Net asset value per share (cents) 6 814 6 910
The accompanying notes are an integral part of these condensed consolidated
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand)
for the six months ended 31 December 2010
Share Other
capital reserves
Note R million R million
Balance - 30 June 2010 28 261 258
Issue of shares 16 -
Share-based payments - 63
Total comprehensive income for the period - (55)
Dividends paid 9 - -
Balance as at 31 December 2010 28 277 266
Balance - 30 June 2009 28 091 339
Issue of shares 5 -
Share-based payments - 72
Total comprehensive income for the period - (36)
Dividends paid - -
Balance as at 31 December 2009 28 096 375
Retained
earnings Total
R million R million
Balance - 30 June 2010 690 29 209
Issue of shares - 16
Share-based payments - 63
Total comprehensive income for the period 421 366
Dividends paid (214) (214)
Balance as at 31 December 2010 897 29 440
Balance - 30 June 2009 1 095 29 525
Issue of shares - 5
Share-based payments - 72
Total comprehensive income for the period 89 53
Dividends paid (213) (213)
Balance as at 31 December 2009 971 29 442
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)
Quarter ended
31 December 30 September 31 December
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Cash flow from operating activities
Cash generated by operations 450 703 183
Interest and dividends received 38 14 52
Interest paid (35) (30) (11)
Income and mining taxes paid (30) (4) (34)
Cash generated by operating
activities 423 683 190
Cash flow from investing activities
Decrease/(increase) in restricted cash 90 30 (283)
Proceeds on disposal of
investment in subsidiary - 229 -
Proceeds on disposal of
available-for-sale financial assets 2 - 29
Other investing activities (6) 10 (3)
Net additions to property, plant
and equipment (846) (748) (890)
Cash utilised by investing
activities (760) (479) (1 147)
Cash flow from financing activities
Borrowings raised 525 - 686
Borrowings repaid (107) (7) (18)
Ordinary shares issued - net of
expenses 8 8 3
Dividends paid - (214) -
Cash generated/(utilised) by
financing activities 426 (213) 671
Foreign currency translation adjustments (24) 11 -
Net increase/(decrease) in cash
and cash equivalents 65 2 (286)
Cash and cash equivalents -
beginning of period 772 770 1 094
Cash and cash equivalents - end
of period 837 772 808
Six months ended Year ended
31 December 31 December 30 June
2010 2009 2010
(Audited)
R million R million R million
Cash flow from operating activities
Cash generated by operations 1 153 408 1 611
Interest and dividends received 52 120 187
Interest paid (65) (20) (90)
Income and mining taxes paid (34) (59) (125)
Cash generated by operating activities 1 106 449 1 583
Cash flow from investing activities
Decrease/(increase) in restricted cash 120 (286) 15
Proceeds on disposal of investment
in subsidiary 229 - 24
Proceeds on disposal of
available-for-sale financial assets 2 44 50
Other investing activities 4 5 (12)
Net additions to property, plant and
equipment (1 594) (1 797) (3 493)
Cash utilised by investing activities (1 239) (2 034) (3 416)
Cash flow from financing activities
Borrowings raised 525 686 1 236
Borrowings repaid (114) (25) (391)
Ordinary shares issued - net of expenses 16 5 18
Dividends paid (214) (213) (213)
Cash generated/(utilised) by
financing activities 213 453 650
Foreign currency translation adjustments (13) (10) 3
Net increase/(decrease) in cash and
cash equivalents 67 (1 142) (1 180)
Cash and cash equivalents -
beginning of period 770 1 950 1 950
Cash and cash equivalents - end of period 837 808 770
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SECOND
QUARTER AND SIX MONTHS ENDED 31 DECEMBER 2010
1. Accounting policies
Basis of accounting
The condensed consolidated financial statements for the six months ended 31
December 2010 have been prepared in accordance with IAS 34, Interim Financial
Reporting, JSE Listing Requirements and in the manner required by the
Companies Act of South Africa. They should be read in conjunction with the
annual financial statements for the year ended 30 June 2010, which have been
prepared in accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board (IFRS). The accounting
policies are consistent with those described in the annual financial
statements, except for the adoption of applicable revised and/or new standards
issued by the International Accounting Standards Board.
2. Cost of sales
Quarter ended
31 December 30 September 31 December 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Production costs 2 093 2 408 2 172
Royalty expense 30 23 -
Amortisation and depreciation 442 426 320
Impairment of assets(2) - - 104
Rehabilitation expenditure 5 4 4
Care and maintenance cost of
restructured shafts 28 25 14
Employment termination and
restructuring costs 54 78 3
Share based payments 32 31 38
Insurance credits(3) (179) - -
Provision for post-retirement benefits 1 - 1
Total cost of sales 2 506 2 995 2 656
Six months ended Year ended
31 December 31 December 1 30 June
2010 2009 2010
(Audited)
R million R million R million
Production costs 4 501 4 367 8 325
Royalty expense 53 - 33
Amortisation and depreciation 868 670 1 375
Impairment of assets(2) - 104 331
Rehabilitation expenditure 9 8 29
Care and maintenance cost of
restructured shafts 53 31 57
Employment termination and
restructuring costs 132 3 205
Share based payments 63 72 148
Insurance credits(3) (179) - -
Provision for post-retirement benefits 1 1 (19)
Total cost of sales 5 501 5 256 10 484
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as part of discontinued operations. See note 5 in this regard.
(2) The impairment for the quarter ended 31 December 2009 and year ended 30
June 2010 relates mainly to Virginia and Evander, which was recorded as a
result of shaft closures.
(3) Proceeds on unwinding of previous insurance agreement.
3. Exploration expenditure
Quarter ended
31 December 30 September 31 December 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Total exploration expenditure 102 101 45
Less: Expenditure capitalised (26) (2) -
Exploration expenditure
per income statement 76 99 45
Six months ended Year ended
31 December 31 December 1 30 June
2010 2009 2010
(Audited)
R million R million R million
Total exploration expenditure 203 93 219
Less: Expenditure capitalised (28) - -
Exploration expenditure
per income statement 175 93 219
4. Net gain/(loss) on financial instruments
On 3 September 2010, Harmony Gold Mining Company Limited (Harmony) entered
into two transactions with Witwatersrand Consolidated Gold Resources Limited
(Wits Gold), whereby Wits Gold obtains a prospecting right over Harmony`s
Merriespruit South area and the option held by ARMGold/Harmony Freegold Joint
Venture Company (Proprietary) Limited (Freegold), a wholly-owned subsidiary of
Harmony, is cancelled. The option is to acquire a beneficial interest of up to
40% in any future mines established by Wits Gold on certain properties in the
Southern Free State (Freegold option). Harmony will abandon a portion of its
mining right in respect of the Merriespruit South area to enable Wits Gold to
include this area in its prospecting right, which is located immediately south
of the Merriespruit South area.
The total consideration of the transactions is R336 million of which R275
million was received for the cancellation of the option agreement by the issue
of 4 376 194 shares in Wits Gold, following approval by Wits Gold shareholders
on 5 November 2010. This represents a 13% investment in Wits Gold. The
remaining R61 million for the prospecting area will be settled in cash or a
combination of cash and shares in Wits Gold, when all remaining conditions
precedent have been fulfilled. The Group classifies the investment in Wits
Gold as an available- for-sale financial asset. During the September 2010
quarter, a gain of R273 million was recognised on the Freegold option which
was then classified as a financial asset at fair value through profit or loss.
5. Disposal groups classified as held for sale and discontinued operations
The conditions precedent for the sale of Mount Magnet were fulfilled and the
transaction became effective on 20 July 2010. A total purchase consideration
of R238 million was received from Ramelius Resources Limited in exchange for
100% of the issued shares of Mount Magnet. The group recognised a total profit
of R104 million net of tax, before the realisation of accumulated foreign
exchange losses of R84 million from other comprehensive income to the
consolidated income statement. The income statement and earnings per share
amounts for all comparative periods have been re-presented to disclose the
operation as a discontinued operation.
6. Earnings/(loss) per ordinary share
Earnings/(loss) per ordinary share is calculated on the weighted average
number of ordinary shares in issue for the quarter ended 31 December 2010:
429.1 million (30 September 2010: 428.7 million, 31 December 2009: 425.9
million), and six months ended 31 December 2010: 428.9 million (31 December
2009: 425.9 million), and the year ended 30 June 2010: 426.4 million.
The diluted earnings/(loss) per ordinary share is calculated on weighted
average number of diluted ordinary shares in issue for the quarter ended 31
December 2010: 429.9 million (30 September 2010: 429.9 million, 31 December
2009: 427.5 million), and the six months ended 31 December 2010: 429.7 million
31 December 2009: 427.4 million), and the year ended 30 June 2010: 427.8
million.
Quarter ended
31 December 30 September 31 December 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
Total earnings/(loss) per
ordinary share (cents):
Basic earnings/(loss) 74 23 28
Diluted earnings/(loss) 74 23 28
Headline earnings/(loss) 69 33 49
- from continuing operations 69 33 50
- from discontinued operations - - (1)
Diluted headline
earnings/(loss) 69 33 49
- from continuing operations 69 33 50
- from discontinued operations - - (1)
R million R million R million
Reconciliation of headline
earnings/(loss):
Continuing operations
Net profit/(loss) 296 105 122
Adjusted for:
Profit on sale of property,
plant and equipment (1) (16) -
Taxation effect of profit on
sale of property, plant and equipment - 5 -
Net gain on financial
instruments (1) - (3)
Taxation effect of net gain on
financial instruments - - 1
Foreign exchange loss/(gain)
reclassified from other comprehensive
income - 47 -
Taxation effect of foreign
exchange loss/(gain) reclassified from
other comprehensive income - - -
Loss on sale of investment in
subsidiary - - -
Taxation effect of loss on
sale of investment in subsidiary - - -
Impairment of other investments - - -
Taxation effect of impairment
of other investments - - -
Impairment of assets - - 104
Taxation effect of impairment
of assets - - (11)
Headline earnings 294 141 213
Six months ended Year ended
31 December 31 December 1 30 June
2010 2009 2010
(Audited)
Total earnings/(loss) per ordinary
share (cents):
Basic earnings/(loss) 98 21 (46)
Diluted earnings/(loss) 98 21 (46)
Headline earnings/(loss) 101 37 (7)
- from continuing operations 101 37 1
- from discontinued operations - - (8)
Diluted headline earnings/(loss) 101 37 (7)
- from continuing operations 101 37 1
- from discontinued operations - - (8)
R million R million R million
Reconciliation of headline
earnings/(loss):
Continuing operations
Net profit/(loss) 401 89 (160)
Adjusted for:
Profit on sale of property, plant
and equipment (17) (1) (104)
Taxation effect of profit on sale
of property, plant and equipment 5 - 22
Net gain on financial instruments (1) (5) (7)
Taxation effect of net gain on
financial instruments - 2 2
Foreign exchange loss/(gain)
reclassified from other comprehensive
income 47 (22) (22)
Taxation effect of foreign exchange
loss/(gain) reclassified from other
comprehensive income - - -
Loss on sale of investment in subsidiary - - 24
Taxation effect of loss on sale of
investment in subsidiary - - (7)
Impairment of other investments - 2 -
Taxation effect of impairment of
other investments - - -
Impairment of assets - 104 331
Taxation effect of impairment of assets - (11) (75)
Headline earnings 435 158 4
Quarter ended
31 December 30 September 31 December 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Discontinued operations
Net profit/(loss) 23 (3) (4)
Adjusted for:
Profit on sale of property, plant
and equipment - - (2)
Taxation effect of profit on
sale of property, plant and equipment - - -
Profit on sale of investment in
subsidiary - (138) -
Taxation effect of profit on
sale of investment in subsidiary - 34 -
Foreign exchange (profit)/loss
reclassified from
other comprehensive income (23) 107 -
Taxation effect of foreign
exchange loss reclassified from other
comprehensive income - - -
Headline loss - - (6)
Total headline earnings/(loss) 294 141 207
Six months ended Year ended
31 December 31 December 1 30 June
2010 2009 2010
(Audited)
R million R million R million
Discontinued operations
Net profit/(loss) 20 - (32)
Adjusted for:
Profit on sale of property, plant
and equipment - (3) -
Taxation effect of profit on sale
of property, plant and equipment - 1 -
Profit on sale of investment in
subsidiary (138) - (1)
Taxation effect of profit on sale
of investment in subsidiary 34 - -
Foreign exchange (profit)/loss
reclassified from
other comprehensive income 84 - -
Taxation effect of foreign
exchange loss reclassified from other
comprehensive income - - -
Headline loss - (2) (33)
Total headline earnings/(loss) 435 156 (29)
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as discontinued operation. See note 5 in this regard.
7. Borrowings
31 December 30 September 30 June 31 December
2010 2010 2010 2009
(Unaudited) (Audited)
R million R million R million R million
Total long-term
borrowings 1 243 970 981 565
Total current
portion of borrowings 344 207 209 460
Total borrowings (1) (2) 1 587 1 177 1 190 1 025
(1) In December 2009, the company entered into a loan facility with Nedbank
Limited, comprising of a Term Facility of R900 million and a Revolving Credit
Facility of R600 million. Interest accrues on a day to day basis over the term
of the loan at a variable interest rate, which is fixed for a three month
period, equal to JIBAR plus 3.5%. Interest is repayable quarterly. The Term
Facility is repayable bi-annually in equal instalments of R90 million over
five years. The first instalment was paid on 30 June 2010.
In December 2010 the Company entered into an additional loan facility with
Nedbank Limited, comprising of a Term Facility of R500 million and a Revolving
Credit Facility of R250 million. Interest terms are identical to the original
facility. The Term Facility is repayable bi-annually in equal instalments of
R62.5 million over four years, with the first instalment payable on 30 June
2011. The terms of the original Revolving Credit Facility was amended to
coincide with the repayment terms of the new Revolving Credit Facility, being
payable after three years from December 2010.
At 31 December 2010, R550 million of these facilities had not been drawn down.
(2) Included in the borrowings is R63 million (September 2010: R74 million;
June 2010: R91 million; December 2009: R102 million) owed to Westpac Bank
Limited in terms of a finance lease agreement. The future minimum lease
payments are as follows:
31 December 30 September 30 June 31 December
2010 2010 2010 2009
(Unaudited) (Audited)
R million R million R million R million
Due within one year 28 30 33 32
Due between one and
five years 36 46 60 73
64 76 93 105
Future finance charges (1) (2) (2) (3)
Total future minimum
lease payments 63 74 91 102
8. Commitments and contingencies
31 December 30 September 30 June 31 December
2010 2010 2010 2009
(Unaudited) (Audited)
R million R million R million R million
Capital expenditure commitments:
Contracts for
capital expenditure 166 188 117 244
Authorised by the
directors but not
contracted for 2 669 3 406 1 006 2 507
2 835 3 594 1 123 2 751
This expenditure will be financed from existing resources and borrowings where
necessary.
Contingent liability
For a detailed disclosure on contingent liabilities refer to Harmony`s annual
report for the financial year ended 30 June 2010, available on the group`s
website at www.harmony.co.za. There were no significant changes in
contingencies since 30 June 2010.
9. Dividends paid
On 13 August 2010, the Board of Directors approved a final dividend for the
2010 financial year of 50 SA cents per share. The total dividend amounting to
R214 million was paid on 20 September 2010.
10. Subsequent events
No subsequent events occurred between close of the current quarter and date of
this report.
11. Segment report
The segment report follows after note 13.
12. Reconciliation of segment information to consolidated income statements
and balance sheets
Six months ended Six months ended
31 December 31 December 1
2010 2009
R million R million
The "reconciliation of segment data to
consolidated financials" line item in
the segment report is broken down in the
following elements, to give a better
understanding of the differences
between the income statement, balance
sheet and segment report:
Revenue from
Discontinued operations - -
Production costs from:
Discontinued operations - -
Reconciliation of production profit to
gross profit:
Total segment revenue 6 073 5 718
Total segment production costs and
royalty expense (4 554) (4 367)
Production profit as per segment report 1 519 1 351
Less: Discontinued operations - -
1 519 1 351
Cost of sales items other than
production costs and royalty expense (947) (889)
Amortisation and depreciation (868) (670)
Impairment of assets - (104)
Employment termination and restructuring costs (132) (3)
Share-based payments (63) (72)
Insurance credits 179 -
Rehabilitation costs (9) (8)
Care and maintenance costs of
restructured shafts (53) (31)
Provision for post-retirement benefits (1) (1)
Gross profit as per income statements * 572 462
Six months ended Six months ended
31 December 31 December 1
2010 2009
R million R million
Reconciliation of total segment mining
assets to consolidated property, plant
and equipment:
Property, plant and equipment not
allocated to a segment
Mining assets 862 746
Undeveloped property 5 139 5 139
Other non-mining assets 72 66
6 073 5 951
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as discontinued operation. See note 5 in this regard.
* The reconciliation was done up to the first recognisable line item on the
income statement. The reconciliation will follow the income statement after
that.
13. Review report
The condensed consolidated financial statements for the six months ended 31
December 2010 on pages 16 to 27 have been reviewed in accordance with
International Standards on Review Engagements 2410 - "Review of interim
financial information performed by the Independent Auditors of the entity" by
PricewaterhouseCoopers Inc. Their unqualified review report is available for
inspection at the Company`s registered office.
SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2010 (Rand/Metric)
Production Production Mining
Revenue costs(1) profit/(loss) assets
R million R million R million R million
Continuing operations
South Africa
Underground
Bambanani (2) 502 421 81 1 034
Doornkop 360 295 65 2 973
Evander 315 316 (1) 946
Joel 169 198 (29) 187
Kusasalethu 772 643 129 3 098
Masimong 730 397 333 821
Phakisa 267 223 44 4 207
Target (2) 511 358 153 2 670
Tshepong 1 000 581 419 3 624
Virginia 398 349 49 696
Surface
All other surface
operations (3) 589 431 158 148
Total South Africa 5 613 4 212 1 401 20 404
International
Papua New Guinea 460 342 118 3 741
Total international 460 342 118 3 741
Total continuing
operations 6 073 4 554 1 519 24 145
Discontinued operations
Mount Magnet - - - -
Total discontinued
operations - - - -
Total operations 6 073 4 554 1 519 24 145
Reconciliation of the
segment information to
the consolidated
income statement and
balance sheet (refer
to note 12) - - 6 073
6 073 4 554 30 218
Capital Kilograms Tonnes
expenditure produced milled
R million kg* t`000*
Continuing operations
South Africa
Underground
Bambanani (2) 156 1 716 233
Doornkop 154 1 184 311
Evander 116 1 069 279
Joel 40 556 168
Kusasalethu 189 2 559 497
Masimong 89 2 414 462
Phakisa 194 882 193
Target (2) 252 1 982 401
Tshepong 133 3 316 683
Virginia 49 1 326 366
Surface
All other surface operations (3) 66 2 024 5 328
Total South Africa 1 438 19 028 8 921
International
Papua New Guinea 144 1 498 852
Total international 144 1 498 852
Total continuing operations 1 582 20 526 9 773
Discontinued operations
Mount Magnet - - -
Total discontinued operations - - -
Total operations 1 582 20 526 9 773
Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 12)
Notes:
(1) Production costs includes royalty expense.
(2) Production statistics for Steyn 2 and Target 3 are shown for information
purposes. These mines are in build-up phase and revenue and costs are
currently capitalised until commercial levels of production are reached.
(3) Includes Kalgold, Phoenix, Dumps and extraction of gold in lock-up at the
President Steyn plant.
* Production statistics are not reviewed.
SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 (Rand/Metric)
Production Production Mining
Revenue costs profit assets
R million R million R million R million
Continuing operations
South Africa
Underground
Bambanani 490 369 121 680
Doornkop 259 209 50 2 699
Evander 599 559 40 906
Joel 291 209 82 135
Kusasalethu 741 571 170 2 894
Masimong 648 360 288 711
Phakisa 161 139 22 3 898
Target 414 308 106 2 301
Tshepong 886 583 303 3 627
Virginia 813 789 24 841
Surface
All other surface
operations (1) 416 271 145 141
Total South Africa 5 718 4 367 1 351 18 833
International
Papua New Guinea (2) - - - 3 805
Total international - - - 3 805
Total continuing
operations 5 718 4 367 1 351 22 638
Discontinued operations
Mount Magnet - - - 273
Total discontinued
operations - - - 273
Total operations 5 718 4 367 1 351 22 911
Reconciliation of the
segment information to
the consolidated income
statement and balance
sheet (refer to note 12) - - 5 951
5 718 4 367 28 862
Capital Kilograms Tonnes
expenditure produced milled
R million kg* t`000*
Continuing operations
South Africa
Underground
Bambanani 51 1 878 270
Doornkop 151 990 278
Evander 106 2 296 504
Joel 50 1 106 248
Kusasalethu 236 3 012 495
Masimong 85 2 601 469
Phakisa 266 610 158
Target 161 1 700 384
Tshepong 129 3 395 814
Virginia 99 3 253 1 015
Surface
All other surface operations (1) 44 1 674 4 384
Total South Africa 1 378 22 515 9 019
International
Papua New Guinea (2) 429 768 -
Total international 429 768 -
Total continuing operations 1 807 23 283 9 019
Discontinued operations
Mount Magnet - - -
Total discontinued operations - - -
Total operations 1 807 23 283 9 019
Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 12)
Notes:
(1) Includes Kalgold, Phoenix and Dumps.
(2) At 31 December 2009, production statistics for Hidden Valley was shown for
information purposes. This mine was in build-up phase and revenue and costs
were capitalised until commercial levels of production were reached.
* Production statistics are not reviewed.
* The technical information on Hidden Valley was compiled by Greg Job,
Harmony`s New Business Executive for South-East Asia, who has the overall
responsibility and accountability for the Golpu Project, in terms of
the South African Code for the Reporting of Exploration Results,
Mineral Resources and Ore Reserves (SAMREC) 2007. Mr Job has 21 years
experience in mine and resource geology and is a member of the Australian
Institute of Mining and Metallurgy. He is a full time employee of Harmony
and qualifies as Competent Person as defined in the SAMREC code and the
Australian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves (JORC). Mr Job has consented to the inclusion of the exploration
details based on the information in the form and context in which it
appears.
CONTACT DETAILS
HARMONY GOLD MINING COMPANY LIMITED
Corporate Office
Randfontein Office Park
PO Box 2
Randfontein, 1760
South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759
South Africa
Telephone: +27 11 411 2000
Website: http://www.harmony.co.za
Directors
P T Motsepe (Chairman)*
G P Briggs (Chief Executive Officer)
H O Meyer (Financial Director)
H E Mashego (Executive Director)
F F T De Buck* (Lead independent director)
F Abbott*, J A Chissano*1, Dr C Diarra*+
K V Dicks*, Dr D S Lushaba*, C Markus*,
M Motloba*, C M L Savage*, A J Wilkens*
* Non-executive
1 Mozambican
+ US/Mali Citizen
Independent
Investor Relations Team
Marian van der Walt
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail: marian@harmony.co.za
Henrika Basterfield
Investor Relations Officer
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail: henrika@harmony.co.za
Company Secretary
Khanya Maluleke
Telephone: +27 11 411 2019
Fax: +27 11 411 2070
Mobile: +27 82 767 1082
E-mail: Khanya.maluleke@harmony.co.za
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
16th Floor, 11 Diagonal Street
Johannesburg, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
United Kingdom Registrars
Capita Registrars
The Registry
34 Beckenham Road
Bechenham
Kent BR3 4TU
United Kingdom
Telephone: 0871 664 0300 (UK)
(calls cost 10p a minute plus network extras, lines are open
8:30 am to 5:30 pm (Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
Fax: +44 (0) 20 8639 2220
ADR Depositary
BNY Mellon
101 Barclay Street
New York, NY 10286
United States of America
Telephone: +1888-BNY-ADRS
Fax: +1 212 571 3050
Sponsor
JP Morgan Equities Limited
1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
Trading Symbols
JSE Limited: HAR
New York Stock Exchange, Inc: HMY
London Stock Exchange Plc: HRM
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE 000015228
Date: 08/02/2011 08:22:00 Supplied by www.sharenet.co.za
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