Wrap Text
HAR - Harmony - Results for the third quarter and nine months ended 31 March
2011
Harmony Gold Mining Company Limited
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 third quarter and nine months ended 31 March 2011
SHAREHOLDER INFORMATION
Issued ordinary share capital 429 807 371
at 31 March 2011 shares
Market capitalisation
At 31 March 2011 (ZARm) 42 676
At 31 March 2011 (US$m) 6 304
Harmony ordinary share
and ADR prices
12 month high (1 April 2010 to
31 March 2011) for ordinary shares R102.26
12 month low (1 April 2010 to
31 March 2011) for ordinary shares R68.65
12 month high (1 April 2010 to
31 March 2011) for ADRs US$15.26
12 month low (1 April 2010 to
31 March 2011) for ADRs US$9.04
Free float
Ordinary shares 100%
ADR ratio 1:1
JSE Limited HAR
Range for quarter
(1 January 2011 to 31 March 2011 R74.77 -
closing prices) R102.26
Average daily volume of shares
for the quarter (1 January 2011 1 685 549
to 31 March 2011) shares per day
New York Stock
Exchange, Inc. HMY
Range for quarter
(1 January 2011 to US$10.56 -
31 March 2011 - closing prices) US$15.26
Average daily volume of shares
for the quarter (1 January 2011 2 720 867
to 31 March 2011) shares per day
Highlights
- Cash operating profit of R855 million
Net profit of R238 million
- Slight increase in underground grade to 4.64g/t
- Stable cash operating cost
despite production being 2% down
- Headline earnings per share up 32% at 91 SA cents
- Excellent drilling results at Wafi-Golpu
- Share price 20% higher quarter-on-quarter
Financial summary for the third quarter and nine months ended 31 March 2011
Quarter Quarter
March December Q-on-Q
2011 2010 Variance
%
Gold produced (1) - kg 9 857 10 055 (2)
- oz 316 909 323 275 (2)
Cash operating - R/kg 217 802 216 595 (1)
costs - US$/oz 970 979 1
Gold sold - kg 9 716 10 046 (3)
- oz 312 378 322 986 (3)
Gold price - R/kg 312 029 303 354 3
received - US$/oz 1 389 1 371 1
Cash operating - R million 855 867 (1)
profit - US$ million 122 126 (3)
Basic - SAc/s 55 69 (20)
earnings/(loss) - USc/s 8 10 (20)
per share*
Headline - Rm 390 294 33
profit/(loss)* - US$m 56 43 30
Headline - SAc/s 91 69 32
earnings/(loss) - USc/s 13 10 30
per share*
Exchange rate - R/US$ 6.99 6.88 2
9 months 9 months Year-on-
March March year
2011 2010 variance
%
Gold produced (1) - kg 30 383 33 649 (10)
- oz 976 834 1 081 831 (10)
Cash operating - R/kg 221 166 193 274 (14)
costs - US$/oz 962 792 (21)
Gold sold - kg 30 631 33 468 (8)
- oz 984 811 1 076 012 (8)
Gold price - R/kg 300 386 256 525 17
received - US$/oz 1 324 1 051 26
Cash operating - R million 2 374 1 985 20
profit - US$ million 336 261 29
Basic - SAc/s 149 (45) >100
earnings/(loss) - USc/s 21 (6) >100
per share*
Headline - Rm 826 54 >100
profit/(loss)* - US$m 117 7 >100
Headline - SAc/s 192 13 >100
earnings/(loss) - USc/s 27 2 >100
per share*
Exchange rate - R/US$ 7.06 7.59 (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 Mar 2011 Steyn 2, 14 kg (Dec 2010 -
18 kg) and Target 3, 250 kg (Dec 2010 - 170 kg), 9 months ending Mar 2011 Steyn
2 , 63 kg (Mar 2010 - Nil) and Target 3, 531 kg (Mar 2010 - 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 the countries in which we operate;
- the ability to achieve anticipated efficiencies and other cost savings in
connection with past and future acquisitions;
- increases or 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 the countries in which we operate.
Chief Executive`s Review
Introduction
The past quarter has been an exciting one with our share price reaching record
highs for FY11 primarily on the back of more exploration successes on the Golpu
deposit and an analyst visit to our Papua New Guinea (PNG) operations.
We remain committed to our long term strategy of generating earnings to fund
growth. We have invested significant capital to build and commission some of the
best South African gold mining assets and the results of these efforts will be
fully realised in the future.
Our transformational efforts and strategic initiatives undertaken over the last
few years are all aimed at achieving robust and sustainable financial results,
with better cash costs and improved grade.
Our strategy also includes a focus on both regional and asset diversification.
In PNG, we have built a mine producing both gold and silver and are currently
busy with further exploration in the area which includes 8 000km2 of exploration
tenements outside of the joint venture. The early findings from Wafi/Golpu has
justified management`s long held belief that this is a world-class asset and
will be a mine.
Taking a holistic view, Harmony has several world-class mines in South Africa
which are currently in the build-up phase and these, together with Hidden
Valley, will be significant contributors to Harmony`s set production targets.
Safety
It is with deep regret that I report that two of our colleagues died
in work-related incidents during the quarter. Those who died were:
Tello Motloung, a scraper winch operator at Bambanani and Tjakama Ntsohi, a
winch operator at Unisel. I would like to extend my deepest condolences to their
families, friends and colleagues.
Fall of ground is still the major contributor to fatalities in the Company and a
high level task team has been established to formulate and implement a
comprehensive fall of ground strategy.
Overall, improved discipline and management of seismicity and falls of ground,
value based safety behaviour and visible leadership from the operational
management resulted in improved safety at most of our operations. See more on
safety on page 5.
Gold market
We do not hedge gold and our shareholders have complete exposure to spot gold
prices and current exchange rates. We maintain our bullish stance on the gold
price and believe it will increase further, especially in light of the weaker
dollar and global economic uncertainty. Gold has proven itself to be a currency
and a store of wealth in times of uncertainty. Although we have seen record high
gold prices in the past quarter in dollar terms, the stronger Rand resulted in
the R/kg gold price increasing by only 3% from R303 354/kg in the previous
quarter to R312 029/kg in the current quarter.
Operational results for quarter 3 of FY11
Gold production decreased by 2% quarter on quarter, from 10 055kg to 9 857kg.
Underground production was only 1% lower at 8 164kg, despite volumes
decreasing by 3% mainly as a result of the December break. However, tonnage
was made up with surface tonnes being 2% higher quarter on quarter.
Underground operations
Tonnes milled for the quarter decreased by 3% or 58 000 tonnes when compared to
the December 2010 quarter. Recovered grade increased from 4.60g/t to 4.64g/t
quarter on quarter. Gold production achieved in the March 2011 quarter was 8 164
kilograms, compared to 8 273 kilograms produced in the December 2010 quarter.
A 3% decrease in cash operating cost in Rand terms negated the decrease in gold
produced and resulted in a 1% decrease in unit cost achieved for the March 2011
quarter at R216 799/kg compared to R218 881/kg in the previous quarter. Capital
expenditure for the March 2011 quarter decreased by 18% (R124 million) to R572
million, compared to R696 million in the December 2010 quarter.
Surface operations
Tonnes milled increased by 2%, mainly due to a 111 000 tonnes (14%) increase in
material from the dumps. This was due to the plants continuing to mill waste
over the December break. The recovered grade decreased by 8% from 0.38g/t to
0.35g/t in the quarter under review, mainly attributed to a 9% decrease at
Kalgold. Gold produced decreased by 56kg from 955kg in the December 2010 quarter
to 899kg in the March 2011 quarter, a 6% decrease. Cash operating unit cost
increased by 6% from R215 422/kg to R227 335/kg in the quarter under review.
Operating profit decreased by 11% to R69 million in the March 2011 quarter
compared to R78 million in the previous quarter.
Hidden Valley
Gold and silver production decreased by 4% and 21%, respectively, compared to
the previous quarter with 794kg (25 528oz) gold and 4 704kg (151 249oz) silver
produced. Plant throughput was 4% lower at 815 000 (850 000 in the previous
quarter) tonnes, which is primarily attributable to the belt breakage of the
Hidden Valley conveying circuit. This is expected to negatively impact quarter
four as well. See page 8 for more on the Hidden Valley mine.
Financial overview
Quarter on quarter the Rand per kilogram unit cost were kept at bay with a mere
increase of 1% to R217 802/kg, in comparison to R216 595/kg in the previous
quarter. This was mainly as a result of the 2% decrease in gold production as
cash operating cost in Rand terms decreased by 2% (R48 million).
In R/kg terms the gold price received increased by 3% from R303 354/kg in the
December 2010 quarter to R312 029/kg in the current quarter. Revenue for the
March 2011 quarter decreased by 1% as a result of a 330kg (3%) decrease in the
gold sold.
Quarter on quarter the capital expenditure decreased by
R168 million (20%).
Cash operating cost for the March 2011 quarter decreased by R48 million or 2%
when compared to the previous quarter due to cost savings, decreased electricity
and labour costs.
Operating profit decreased by 1% to R855 million when compared to the R868
million recorded in the December 2010 quarter.
Wafi/Golpu
Drilling at the Wafi-Golpu project continues to be successful. The latest
results confirm our previously held belief that this deposit is truly a world-
class discovery and the pre-feasibility study will be completed towards the end
of December 2011. The latest drill hole results at our Wafi-Golpu JV project
(50% held by Harmony) have provided the highest mineralisation values to date.
In October 2010, Harmony reported on drilling of the Wafi-Golpu deposit, which
extended the mineralisation beyond the porphyry copper-gold resource of 16Moz of
gold and 4.8Mt of copper.
On 3 March 2011 we released the following drilling results:
- WR377: 883m @ 2.15% Cu and 2.23g/t Au (5.33g/t Au equivalents*) from 913m
including 628m @ 2.82% Cu and 3.06g/t Au (7.13g/t Au equivalents*) from
1 043m.
* Gold equivalents calculated using a gold price of US$950/oz and copper price
of US$2.00 lb and assuming 100% recovery for all metals.
The intercept correlates with a zone of chalcopyrite and bornite mineralisation
in the porphyry and surrounding metasediment. This hole extends the known
porphyry mineralisation significantly outside the current resource shell.
Mineralisation is open at depth and to the north of this intercept. This
intersection continues to support our Exploration Target of 30 million ounces of
gold and 8 million tonnes of copper.
This project is growing with each new drill hole result and we are confident
that this will be a new mine.
Conclusion
The Company is showing significant progress both in the growth of its resources
as well as its diversity. The key short-term objective for us is the build up of
our production and to get there, the main focus is on getting the assets, in
which we have invested considerable amounts of cash over the last few years,
into full production.
Harmony is a company which has dramatically improved the quality of its ounces,
which will continue to do so with better cash costs and free cash flow in the
future.
Graham Briggs
Chief Executive Officer
Safety and health
Safety
Safety remains Harmony`s number one priority. We dedicate our time and resources
to ensure that safety-related events are avoided and we continue to proactively
identify potential hazards.
Tragically, two fatalities occurred at the South African operations during the
March 2011 quarter. Fall of ground incidents remain the biggest challenge.
Harmony has implemented a formal Ground Control Strategy, the main objective of
which is to formalise and consolidate all efforts focused on the prevention of
fall of ground incidents and accidents and to promote an even safer and stable
underground environment.
The strategy is divided into two main components, being ground behaviour and
ground control, where ground behaviour deals with the strategic aspects of mine
design in order to prevent or minimise damage to rock surrounding mining
excavations. Knowledge of the mining environment and ground stability together
with an understanding of the in situ and induced stress regimes plays a role in
the ideal plan for each condition. Integration of support systems in the overall
mine design plus the monitoring of the rock mass response form part of the
ground behaviour.
Ground control deals with the operational aspects of the mine with the objective
being to protect personnel and equipment from fall of ground incidents. It is
the hazard identification and treatment system where support elements, layout
standards and procedures are implemented by means of training, supervision and
management systems that address all requirements.
Central to this approach are components that deal with behavioural aspects,
competency training and development, research and new technologies.
Harmony achieved a single digit figure in respect of its Lost Time Injury
Frequency Rate (LTIFR) for the tenth consecutive quarter. The year to date rate
improved by 2% when compared to the previous year (from 7.72 to 7.86), but
regressed by 26% quarter on quarter (from 6.88 to 8.65).
The Reportable Injury Frequency Rate (RIFR) (per million hours worked) to date
rate regressed by 7% when compared to the previous year (from 4.19 to 4.49) and
by 13% quarter on quarter (from 4.08 to 4.62).
The Fatal Injury Frequency Rate (FIFR) to date rate improved by 14% when
compared to the previous year (from 0.21 to 0.18) and by 50% quarter on quarter
(from 0.18 to 0.09).
Safety achievements for the quarter included:
Total Harmony surface and
underground operations: 2 000 000 fatality free shifts
South African surface and
underground operations: 1 000 000 fatality free shifts
Kusasalethu: 500 000 fatality free shifts
Evander total operations: 500 000 fatality free shifts
Tshepong: 500 000 fatality free shifts
Target 1: 500 000 fatality free shifts
The following operations completed the March 2011 quarter without an injury:
- Target Plant
- Joel Plant
- Harmony 1 Plant
- Free State Commercial Services and Transport
- Randfontein Commercial Services and Transport
- Evander Workshops
- Randfontein Surface Operations
- Kusasalethu Plant
Health
Our pro-active approach to the health and wellness of our employees continues
and various programmes and initiatives are supported and sponsored by the
company to ensure the wellbeing of our employees. 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.
See our Sustainable Development Report for more details on our website
www.harmony.co.za.
Financial overview
Cash operating profits were stable showing a 1% decrease to R855 million, as the
decrease in revenue was largely offset by a decrease in production cost.
Earnings per share
Basic earnings per share decreased from 69 SA cents to 55 SA cents, while
headline earnings per share increased from 69 SA cents to 91 SA cents. Headline
earnings are higher than basic earnings as the impairment charge on associates
is added back.
Revenue
Revenue decreased from R2 990 million to R2 949 million as a result of the lower
gold sales volume. The decrease was partially offset by an increase in the Rand
gold price received from R303 354/kg to R312 029/kg.
Cost of sales
Cost of sales increased from R2 506 million to R2 623 million in the March 2011
quarter. The amount reported in the December 2010 quarter included an insurance
credit of R179 million related to the unwinding of the previous insurance
scheme, which was a once-off entry. Production costs and employment and
restructuring costs decreased in the March 2011 quarter, resulting in a saving
of R57 million.
Impairment of investment in associate
On 28 April 2011, Gold One International (Gold One) and Rand Uranium
(Proprietary) Limited (Rand Uranium) announced that the shareholders of Rand
Uranium have accepted an offer by Gold One for the shares in Rand Uranium.
Harmony holds 40% in Rand Uranium. The investment has been classified as held
for sale on the balance sheet and an impairment of R160 million was recognised
as the carrying value was in excess of the expected proceeds.
Investment income
Included in the amount for the March 2011 quarter is an amount of R43 million
relating to interest and interest refunds from the South African Revenue Service
(SARS).
Taxation
The taxation credit of R297 million includes a deferred tax credit of R333
million. SARS previously disallowed Freegold`s "post 1973 gold mine" additional
capital allowance claim, and also disallowed Freegold`s application of mining
ringfencing. The disputed matters were set down to be heard in the Income Tax
Court of Johannesburg on 14 March 2011, but SARS withdrew the additional capital
allowance claim on 10 March 2011, conceding that the Freegold operations are
entitled to claim this capital allowance. The inclusion of the capital allowance
caused an increase in the deferred tax asset on the balance sheet and the
resulting credit in the income statement.
Capital expenditure
Capital expenditure decreased from R835 million in the December 2010 quarter to
R667 million for the March 2011 quarter.
Trade and other receivables - current
The balance at March 2011 includes an amount of R409 million owed by SARS for
VAT refunds. An amount of R200 million was overdue at 31 March 2011, the
majority of which has been refunded subsequent to balance sheet date.
Borrowings
During the March 2011 quarter, R250 million was drawn from the Nedbank facility.
The undrawn facility at balance sheet date was R300 million.
CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)
Quarter ended
31 March 31 December 31 March 1
2011 2010 2010
(Unaudited) (Unaudited) (Unaudited)
Note R million R million R million
Continuing operations
Revenue 2 949 2 990 2 521
Cost of sales 2 (2 623) (2 506) (2 581)
Production costs (2 064) (2 093) (1 882)
Royalty expense (30) (30) (5)
Amortisation and
depreciation (431) (442) (324)
Impairment of assets - - (196)
Employment termination and
restructuring costs (26) (54) (120)
Other items (72) 113 (54)
Gross profit/(loss) 326 484 (60)
Corporate, administration
and other expenditure (93) (96) (83)
Social investment
expenditure (27) (23) (25)
Exploration expenditure 3 (77) (76) (66)
Profit/(loss) on sale of
property, plant and
equipment 8 1 (1)
Other (expenses)/income
- net (8) 6 (2)
Operating profit/(loss) 129 296 (237)
(Loss)/profit from associates (24) (19) 5
Impairment of
investment in associate 6 (160) - -
Loss on sale of investment
in subsidiary - - (24)
Net gain on financial
instruments 4 3 78 -
Investment income 64 38 61
Finance cost (71) (69) (60)
(Loss)/profit
before taxation (59) 324 (255)
Taxation 297 (28) (25)
Normal taxation (12) - (22)
Deferred taxation 5 309 (28) (3)
Net
profit/(loss) from
continuing operations 238 296 (280)
Discontinued operations
Profit/(loss)
from discontinued
operations 6 - 23 (15)
Net profit/(loss) 238 319 (295)
Attributable to:
Owners of the parent 238 319 (295)
Non-controlling interest - - -
Earnings/(loss)
per ordinary share (cents) 7
- Earnings/(loss)
from continuing operations 55 69 (65)
- Earnings/(loss)
from discontinued operations - 5 (4)
Total earnings/(loss)
per ordinary share (cents) 55 74 (69)
Diluted earnings/(loss)
per ordinary share (cents) 7
- Earnings/(loss)
from continuing operations 55 69 (65)
- Earnings/(loss)
from discontinued operations - 5 (3)
Total diluted earnings/(loss) per
ordinary share (cents) 55 74 (68)
Nine months ended Year ended
31 March 31 March 1 30 June
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
R million R million R million
Continuing operations
Revenue 9 023 8 239 11 284
Cost of sales (8 125) (7 837) (10 484)
Production costs (6 565) (6 249) (8 325)
Royalty expense (84) (5) (33)
Amortisation and depreciation (1 299) (994) (1 375)
Impairment of assets - (300) (331)
Employment termination and
restructuring costs (158) (123) (205)
Other items (19) (166) (215)
Gross profit/(loss) 898 402 800
Corporate, administration and
other expenditure (283) (257) (382)
Social investment expenditure (66) (54) (81)
Exploration expenditure (251) (159) (219)
Profit/(loss) on sale of
property, plant and equipment 24 3 104
Other (expenses)/income - net (56) (95) (58)
Operating profit/(loss) 266 (160) 164
(Loss)/profit from associates (51) 61 56
Impairment of investment in
associate (160) - -
Loss on sale of investment
in subsidiary - (24) (24)
Net gain on financial instruments 392 3 38
Investment income 116 186 187
Finance cost (199) (152) (246)
(Loss)/profit before taxation 364 (86) 175
Taxation 275 (108) (335)
Normal taxation (22) (63) (84)
Deferred taxation 297 (45) (251)
Net profit/(loss) from
continuing operations 639 (194) (160)
Discontinued operations
Profit/(loss) from
discontinued operations 20 (12) (32)
Net profit/(loss) 659 (206) (192)
Attributable to:
Owners of the parent 659 (206) (192)
Non-controlling interest - - -
Earnings/(loss) per ordinary
share (cents)
- Earnings/(loss) from
continuing operations 149 (45) (38)
- Earnings/(loss) from
discontinued operations 5 (3) (8)
Total earnings/(loss) per
ordinary share (cents) 154 (48) (46)
Diluted earnings/(loss) per
ordinary share (cents)
- Earnings/(loss) from
continuing operations 149 (45) (38)
- Earnings/(loss) from
discontinued operations 5 (3) (8)
Total diluted earnings/(loss)
per ordinary share (cents) 154 (48) (46)
1 The comparative figures are re-presented due to Mount Magnet being
reclassified as a discontinued operation. See note 6 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 March 31 December 31 March
2011 2010 2010
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Net profit/(loss) for the period 238 319 (295)
Other comprehensive income/(loss)
for
the period, net of income tax 6 (161) 71
Foreign exchange translation 22 (131) 72
Fair value movement of
available-for-sale investments (16) (30) (1)
Total comprehensive income/(loss)
for the period 244 158 (224)
Attributable to:
Owners of the parent 244 158 (224)
Non-controlling interest - - -
Nine months ended Year ended
31 March 31 March 30 June
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
R million R million R million
Net profit/(loss) for the period 659 (206) (192)
Other comprehensive income/(loss) for
the period, net of income tax (50) 35 (131)
Foreign exchange translation (3) 34 (127)
Fair value movement of
available-for-sale investments (47) 1 (4)
Total comprehensive income/(loss)
for the period 609 (171) (323)
Attributable to:
Owners of the parent 609 (171) (323)
Non-controlling interest - - -
CONDENSED CONSOLIDATED BALANCE SHEET (Rand)
At At
31 March 31 December
2011 2010
(Unaudited)
Note R million R million
ASSETS
Non-current assets 30 557 30 218
Property, plant and equipment
Intangible assets 2 188 2 199
Restricted cash 27 26
Restricted investments 1 866 1 864
Investments in financial assets 236 264
Investments in associates - 358
Inventories 227 232
Deferred tax asset 2 310 1 925
Trade and other receivables 69 69
37 480 37 155
Current assets
Inventories 954 943
Trade and other receivables 8 1 111 962
Income and mining taxes 119 102
Cash and cash equivalents 656 837
2 840 2 844
Assets of disposal groups classified as
held for sale 6 174 -
3 014 2 844
Total assets 40 494 39 999
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 290 28 277
Other reserves 299 266
Retained earnings 1 135 897
29 724 29 440
Non-current liabilities
Deferred tax liability 5 623 5 538
Provision for environmental rehabilitation 1 785 1 752
Retirement benefit obligation and other
provisions 179 179
Borrowings 9 1 487 1 243
9 074 8 712
Current liabilities
Borrowings 9 336 344
Income and mining taxes 17 10
Trade and other payables 1 343 1 493
1 696 1 847
Liabilities of disposal groups classified
as held for sale 6 - -
1 696 1 847
Total equity and liabilities 40 494 39 999
Number of ordinary shares in issue 429 807 371 429 506 618
Net asset value per share (cents) 6 916 6 854
At At
30 June 31 March
2010 2010
(Audited) (Unaudited)
R million R million
ASSETS
Non-current assets 29 556 29 403
Property, plant and equipment
Intangible assets 2 210 2 210
Restricted cash 146 147
Restricted investments 1 742 1 726
Investments in financial assets 12 18
Investments in associates 385 391
Inventories 214 81
Deferred tax asset 1 875 1 891
Trade and other receivables 75 76
36 215 35 943
Current assets
Inventories 987 1 152
Trade and other receivables 932 1 217
Income and mining taxes 74 44
Cash and cash equivalents 770 481
2 763 2 894
Assets of disposal groups classified as held for
sale 245 -
3 008 2 894
Total assets 39 223 38 837
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 261 28 102
Other reserves 258 535
Retained earnings 690 676
29 209 29 313
Non-current liabilities
Deferred tax liability 5 409 5 217
Provision for environmental rehabilitation 1 692 1 704
Retirement benefit obligation and other provisions 169 167
Borrowings 981 780
8 251 7 868
Current liabilities
Borrowings 209 221
Income and mining taxes 9 17
Trade and other payables 1 410 1 418
1 628 1 656
Liabilities of disposal groups classified as held
for sale 135 -
1 763 1 656
Total equity and liabilities 39 223 38 837
Number of ordinary shares in issue
428 654 779 426 191 965
Net asset value per share (cents) 6 814 6 878
The accompanying notes are an integral part of these condensed consolidated
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand)
for the nine months ended 31 March 2011
Share Other Retained
capital reserves earnings Total
R million R million R million R million
Balance - 30 June 2010 28 261 258 690 29 209
Issue of shares 29 - - 29
Share-based payments - 91 - 91
Total comprehensive income
for the period - (50) 659 609
Dividends paid - - (214) (214)
Balance as at 31 March 2011 28 290 299 1 135 29 724
Balance - 30 June 2009 28 091 339 1 095 29 525
Issue of shares 11 - - 11
Share-based payments - 108 - 108
AVRD share issue reserve* - 151 - 151
Repurchase of equity
interest - (98) - (98)
Total comprehensive loss
for the period - 35 (206) (171)
Dividends paid - - (213) (213)
Balance as at 31 March 2010 28 102 535 676 29 313
* This relates to the transaction with Africa Vanguard Resources (Doornkop)
(Proprietary) Limited (AVRD).
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)
Quarter ended
31 March 31 December 31 March
2011 2010 2010
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Cash flow from operating activities
Cash generated by operations 213 450 295
Interest and dividends received 64 38 66
Interest paid (34) (35) (32)
Income and mining taxes
refund/(paid) 8 (30) (11)
Cash generated by operating activities 251 423 318
Cash flow from investing activities
Decrease in restricted cash - 90 301
Proceeds on disposal of investment
in subsidiary - - 24
Proceeds on disposal of available-for-sale
financial assets - 2 -
Other investing activities 16 (6) (8)
Net additions to property, plant
and equipment (687) (846) (988)
Cash utilised by investing activities (671) (760) (671)
Cash flow from financing activities
Borrowings raised 250 525 250
Borrowings repaid (17) (107) (260)
Ordinary shares issued - net of expenses 13 8 6
Dividends paid - - -
Cash generated/(utilised) by
financing activities 246 426 (4)
Foreign currency translation adjustments (7) (24) 30
Net (decrease)/increase in cash and
cash equivalents (181) 65 (327)
Cash and cash equivalents -
beginning of period 837 772 808
Cash and cash equivalents - end of period 656 837 481
Nine months ended Year ended
31 March 31 March 30 June
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
R million R million R million
Cash flow from operating activities
Cash generated by operations 1 366 703 1 611
Interest and dividends received 116 186 187
Interest paid (99) (52) (90)
Income and mining taxes refund/(paid) (26) (70) (125)
Cash generated by operating activities 1 357 767 1 583
Cash flow from investing activities
Decrease in restricted cash 120 15 15
Proceeds on disposal of investment
in subsidiary 229 24 24
Proceeds on disposal of
available-for-sale financial assets 1 44 50
Other investing activities 20 (3) (12)
Net additions to property, plant and
equipment (2 281) (2 785) (3 493)
Cash utilised by investing activities (1 911) (2 705) (3 416)
Cash flow from financing activities
Borrowings raised 775 936 1 236
Borrowings repaid (130) (285) (391)
Ordinary shares issued - net of expenses 29 11 18
Dividends paid (214) (213) (213)
Cash generated/(utilised) by
financing activities 460 449 650
Foreign currency translation adjustments (20) 20 3
Net (decrease)/increase in cash and
cash equivalents (114) (1 469) (1 180)
Cash and cash equivalents -
beginning of period 770 1 950 1 950
Cash and cash equivalents - end of period 656 481 770
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the third quarter and nine months ended 31 March 2011
1. Accounting policies
Basis of accounting
The condensed consolidated financial statements for the nine months ended 31
March 2011 have been prepared in accordance with IAS 34, Interim Financial
Reporting, JSE Limited Listings 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 March 31 December 31 March 1
2011 2010 2010
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Production costs 2 064 2 093 1 882
Royalty expense 30 30 5
Amortisation and depreciation 431 442 324
Impairment of assets(2) - - 196
Rehabilitation expenditure 4 5 7
Care and maintenance cost of
restructured shafts 35 28 11
Employment termination and
restructuring costs 26 54 120
Share based payments 28 32 36
Insurance adjustment/(credit)(3) 5 (179) -
Provision for post-retirement
benefits - 1 -
Total cost of sales 2 623 2 506 2 581
Nine months ended Year ended
31 March 31 March 1 30 June
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
R million R million R million
Production costs 6 565 6 249 8 325
Royalty expense 84 5 33
Amortisation and depreciation 1 299 994 1 375
Impairment of assets(2) - 300 331
Rehabilitation expenditure 13 16 29
Care and maintenance cost of
restructured shafts 88 42 57
Employment termination and
restructuring costs 158 123 205
Share based payments 91 108 148
Insurance adjustment/(credit)(3) (174) - -
Provision for post-retirement
benefits 1 - (19)
Total cost of sales 8 125 7 837 10 484
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as part of discontinued operations. See note 6 in this regard.
(2) The impairments for the quarter ended 31 March 2010, nine months ended 31
March 2010 and year ended 30 June 2010 relates mainly to Virginia and Evander,
which was recorded as a result of shaft closures.
(3) Net proceeds on unwinding of previous insurance agreement.
3. Exploration expenditure
Quarter ended
31 March 31 December 31 March
2011 2010 2010
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Total exploration expenditure 87 102 66
Less: Expenditure capitalised (10) (26) -
Exploration expenditure per
income statement 77 76 66
Nine months ended Year ended
31 March 31 March 30 June
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
R million R million R million
Total exploration expenditure 287 159 219
Less: Expenditure capitalised (36) - -
Exploration expenditure per
income statement 251 159 219
4. Net gain on financial instruments
During the September 2010 quarter, a gain of R273 million was recognised on the
Freegold option, which was classified as a financial asset at fair value through
profit or loss. This was following Harmony Gold Mining Company Limited (Harmony)
entering 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.
During the December 2010 quarter, an amount of R78 million was recognised, being
the increase in the fair value of the Nedbank Equity Linked Deposits held by the
Environmental Trusts.
5. Deferred taxation
The taxation credit of R297 million includes a deferred tax credit of R333
million. The South African Revenue Service (SARS) previously disallowed
Freegold`s "post 1973 gold mine" additional capital allowance claim, and also
disallowed Freegold`s application of mining ringfencing. The disputed matters
were set down to be heard in the Income Tax Court of Johannesburg on 14 March
2011, but SARS withdrew the additional capital allowance claim on 10 March 2011,
conceding that the Freegold operations are entitled to claim this capital
allowance. The inclusion of the capital allowance caused an increase in the
deferred tax asset on the balance sheet and the resulting credit in the income
statement.
6. Disposal groups classified as held for sale and discontinued operations
Mount Magnet
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.
Investment in associate
The investment in Rand Uranium has been classified as held for sale following
the decision by the shareholders to sell the business. In terms of the binding
offer accepted by the shareholders on 21 April 2011, the subordinated
shareholder`s loan of R63 million due to the group will be repaid out of the
sale proceeds. As the investment is carried at fair value, and the carrying
value of the investment exceeds the expected proceeds, an impairment of R160
million has been recognised in the income statement.
7. 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 March 2011: 429.5 million
(31 December 2010: 429.1 million, 31 March 2010: 426.1 million), and nine months
ended 31 March 2011: 429.1 million (31 March 2010: 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 March 2011:
430.7 million (31 December 2010: 429.9 million, 31 March 2010: 429.6 million),
and the nine months ended 31 March 2011: 430.2 million (31 March 2010: 429.6
million), and the year ended 30 June 2010: 427.8 million.
Quarter ended
31 March 31 December 31 March 1
2011 2010 2010
(Unaudited) (Unaudited) (Unaudited)
Total earnings/(loss) per ordinary
share (cents):
Basic earnings/(loss) 55 74 (69)
Diluted earnings/(loss) 55 74 (68)
Headline earnings/(loss) 91 69 (27)
- from continuing operations 91 69 (24)
- from discontinued operations - - (3)
Diluted headline earnings/(loss) 91 69 (27)
- from continuing operations 91 69 (24)
- from discontinued operations - - (3)
R million R million R million
Reconciliation of headline
earnings/(loss):
Continuing operations
Net profit/(loss) 238 296 (280)
Adjusted for:
Profit on sale of property, plant
and equipment (8) (1) (3)
Taxation effect of profit on sale
of property, plant and equipment 2 - 1
Net gain on financial instruments (3) (1) -
Taxation effect of net gain on
financial instruments 1 - -
Impairment of investments in associate* 160 - -
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* - - -
Impairment of assets - - 196
Taxation effect of impairment of assets - - (34)
Headline earnings/(loss) 390 294 (103)
Discontinued operations
Net profit/(loss) - 23 (15)
Adjusted for:
Loss/(profit) on sale of property,
plant and equipment - - 2
Taxation effect of loss/(profit)
on sale of property, plant and equipment - - (1)
Profit on sale of investment in subsidiary - - -
Taxation effect of profit on sale
of investment in subsidiary - - -
Foreign exchange (gain)/loss
reclassified from
other comprehensive income* - (23) -
Headline loss - - (14)
Total headline earnings/(loss) 390 294 (117)
Nine months ended Year ended
31 March 31 March 1 30 June
2011 2010 2010
(Unaudited) (Unaudited) (Audited)
Total earnings/(loss) per ordinary
share (cents):
Basic earnings/(loss) 154 (48) (46)
Diluted earnings/(loss) 154 (48) (46)
Headline earnings/(loss) 192 10 (7)
- from continuing operations 192 13 1
- from discontinued operations - (3) (8)
Diluted headline earnings/(loss) 192 10 (7)
- from continuing operations 192 13 1
- from discontinued operations - (3) (8)
R million R million R million
Reconciliation of headline
earnings/(loss):
Continuing operations
Net profit/(loss) 639 (194) (160)
Adjusted for:
Profit on sale of property, plant
and equipment (24) (3) (104)
Taxation effect of profit on sale of
property, plant and equipment 7 1 22
Net gain on financial instruments (4) (5) (7)
Taxation effect of net gain on
financial instruments 1 2 2
Impairment of investments in associate* 160 - -
Foreign exchange loss/(gain)
reclassified from other comprehensive
income* 47 (22) (22)
Loss on sale of investment in subsidiary - 24 24
Taxation effect of loss on sale of
investment in subsidiary - (7) (7)
Impairment of other investments* - 2 -
Impairment of assets - 301 331
Taxation effect of impairment of assets - (45) (75)
Headline earnings/(loss) 826 54 4
Discontinued operations
Net profit/(loss) 20 (12) (32)
Adjusted for:
Loss/(profit) on sale of property,
plant and equipment - (1) -
Taxation effect of loss/(profit) on
sale of property, plant and equipment - - -
Profit on sale of investment in
subsidiary (138) - (1)
Taxation effect of profit on sale of
investment in subsidiary 34 - -
Foreign exchange (gain)/loss
reclassified from
other comprehensive income* 84 - -
Headline loss - (13) (33)
Total headline earnings/(loss) 826 41 (29)
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as discontinued operation. See note 6 in this regard.
* There is no taxation effect on these items.
8. Trade and other receivables
Included in the balance at 31 March 2011 is an amount of R409 million for VAT
claims receivable. This is an increase of R191 million from the balance of R218
million at 31 December 2010.
9. Borrowings
31 March 31 December 30 June 31 March
2011 2010 2010 2010
(Unaudited) (Audited) (Unaudited)
R million R million R million R million
Total long-term borrowings 1 487 1 243 981 780
Total current
portion of borrowings 336 344 209 221
Total borrowings (1)(2) 1 823 1 587 1 190 1 001
(1) In December 2009, the Company entered into a loan facility with Nedbank
Limited, comprising 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 5
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 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 3 years from December 2010.
At 31 March 2011, R300 million (31 December 2010: R550 million) of these
facilities had not been drawn down.
(2) Included in the borrowings is R58 million (31 December 2010: R63 million;
June 2010: R91 million; March 2010: R99 million) owed to Westpac Bank Limited in
terms of a finance lease agreement. The future minimum lease payments are as
follows:
31 March 31 December 30 June 31 March
2011 2010 2010 2010
(Unaudited) (Audited) (Unaudited)
R million R million R million R million
33 33
Due within one year 29 28
Due between one and
five years 30 36 60 69
59 64 93 102
Future finance charges (1) (1) (2) (3)
Total future minimum
lease payments 58 63 91 99
10. Commitments and contingencies
31 March 31 December 30 June 31 March
2011 2010 2010 2010
(Unaudited) (Audited) (Unaudited)
R million R million R million R million
Capital expenditure commitments:
Contracts for
capital expenditure 191 166 117 271
Authorised by the
directors but not
contracted for 2 175 2 669 1 006 1 667
2 366 2 835 1 123 1 884
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.
11. Subsequent events
On 29 April 2011, Taung Gold Limited (Taung) paid R100 million to Harmony in
terms of the amended agreement for the purchase of the Evander 6 shaft and
Twistdraai areas. In terms of the amended agreement, the amount is repayable to
Taung should the outstanding conditions for the transactions not be fulfilled.
On 28 April 2011, Gold One International (Gold One) and Rand Uranium
(Proprietary) Limited (Rand Uranium) announced that the shareholders of Rand
Uranium have accepted an offer by Gold One for the shares in Rand Uranium for an
amount of US$250 million. Of this US$36 million accrues to Harmony to settle
both the shareholder loan and the sale of shares.
12. Segment report
The segment report follows on page 28.
13. Reconciliation of segment information to consolidated income statements and
balance sheet
Nine months Nine months
ended ended
31 March 31 March 1
2011 2010
R million R million
The "Reconciliation of segment information to consolidated income statement and
balance sheet" 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 9 023 8 239
Total segment production costs and royalty expense (6 649) (6 254)
Production profit as per segment report 2 374 1 985
Less: Discontinued operations - -
2 374 1 985
Cost of sales items other than production costs
and royalty expense (1 476) (1 583)
Amortisation and depreciation (1 299) (994)
Impairment of assets - (300)
Employment termination and restructuring costs (158) (123)
Share-based payments (91) (108)
Net insurance credit 174 -
Rehabilitation costs (13) (16)
Care and maintenance costs of restructured shafts (88) (42)
Provision for post-retirement benefits (1) -
Gross profit as per income statements * 898 402
Reconciliation of total segment mining assets to
consolidated property, plant and equipment:
Property, plant and equipment not allocated to a segment:
Mining assets 885 767
Undeveloped property 5 139 5 328
Other non-mining assets 69 346
6 093 6 441
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as discontinued operation. See note 6 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.
SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2011
(Rand/Metric) (Unaudited)
Production Production Mining
Revenue cost(1) profit assets
R million R million R million R million
Continuing operations
South Africa
Underground
Bambanani(2) 671 603 68 1 087
Doornkop 530 418 112 3 027
Evander 477 471 6 936
Joel 295 293 2 181
Kusasalethu 1 252 976 276 3 151
Masimong 1 045 571 474 831
Phakisa 390 337 53 4 263
Target(2) 732 520 212 2 711
Tshepong 1 508 852 656 3 630
Virginia 539 451 88 696
Surface
All other surface
operations(3) 866 640 226 143
Total South Africa 8 305 6 132 2 173 20 656
International
Papua New Guinea 718 517 201 3 808
Total international 718 517 201 3 808
Total continuing
operations 9 023 6 649 2 374 24 464
Discontinued operations
Mount Magnet - - - -
Total discontinued
operations - - - -
Total operations 9 023 6 649 2 374 24 464
Reconciliation of the
segment information to the
consolidated income statement
and balance sheet (refer to
note 13) - - 6 093
9 023 6 649 30 557
Capital Kilograms Tonnes
expenditure produced milled
R million kg t`000
Continuing operations
South Africa
Underground
Bambanani(2) 231 2 289 314
Doornkop 221 1 755 484
Evander 146 1 552 409
Joel 55 1 001 286
Kusasalethu 274 4 023 794
Masimong 129 3 453 678
Phakisa 276 1 290 281
Target(2) 348 3 017 562
Tshepong 201 4 995 1 016
Virginia 63 1 793 470
Surface
All other surface operations(3) 93 2 923 7 866
Total South Africa 2 037 28 091 13 160
International
Papua New Guinea 212 2 292 1 259
Total international 212 2 292 1 259
Total continuing operations 2 249 30 383 14 419
Discontinued operations
Mount Magnet - - -
Total discontinued operations - - -
Total operations 2 249 30 383 14 419
Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 13)
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 President Steyn plant clean-up.
SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2010
(Rand/Metric) (Unaudited)
Production Production Mining
Revenue cost(1) profit assets
R million R million R million R million
Continuing operations
South Africa
Underground
Bambanani 762 536 226 947
Doornkop 373 298 75 2 473
Evander 736 690 46 909
Joel 426 289 137 138
Kusasalethu 1 026 849 177 2 943
Masimong 916 524 392 745
Phakisa 250 225 25 3 983
Target 627 479 148 2 502
Tshepong 1 308 837 471 3 646
Virginia 1 137 1 094 43 659
Surface
All other surface
operations(2) 678 433 245 128
Total South Africa 8 239 6 254 1 985 19 073
International
Papua New Guinea(3) - - - 3 872
Total international - - - 3 872
Discontinued operations
Mount Magnet - - - 17
Total discontinued
operations - - - 17
Total operations 8 239 6 254 1 985 22 962
Reconciliation of the
segment information to the
consolidated income statement
and balance sheet (refer to
note 13) - - 6 441
8 239 6 254 29 403
Capital Kilograms Tonnes
expenditure produced milled
R million kg t`000
Continuing operations
South Africa
Underground
Bambanani 114 2 938 399
Doornkop 238 1 442 401
Evander 137 2 898 642
Joel 70 1 628 348
Kusasalethu 344 4 044 721
Masimong 133 3 639 681
Phakisa 368 955 244
Target 269 2 578 578
Tshepong 191 5 031 1 174
Virginia 142 4 495 1 415
Surface
All other surface operations(2) 56 2 683 6 661
Total South Africa 2 062 32 331 13 264
International
Papua New Guinea(3) 467 1 318 -
Total international 467 1 318 -
Discontinued operations
Mount Magnet - - -
Total discontinued operations - - -
Total operations 2 529 33 649 13 264
Reconciliation of the segment
information to the consolidated
income statement and balance sheet
(refer to note 13)
Notes:
(1) Production costs include royalty expenses.
(2) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.
(3) Production statistics for Hidden Valley, President Steyn and Target 3 are
shown for information purposes. The mine is in a build-up phase and revenue and
costs are currently capitalised until commercial levels of production are
reached.
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*, M Msimang*, D Noko*,
C M L Savage*, A J Wilkens*
* Non-executive
Independent
1 Mozambican
# US/Mali Citizen
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
iThemba Governance and Statutory Solutions (Pty) Ltd
Annamarie van der Merwe
Telephone: +27 86 111 1010
Fax: +27 86 504 1315
Mobile: +27 83 264 0328
E-mail: avdm@ithemba.co.za
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 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: ZAE000015228
Date: 05/05/2011 08:00:09 Supplied by www.sharenet.co.za
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