Wrap Text
Results for the Fourth Quarter and Year Ended 30 June 2013
Harmony Gold Mining Company Limited
("Harmony" or "Company")
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED 30 JUNE 2013
KEY FEATURES
Quarter on quarter
- Gold production increased by 12% to 8 588kg (276 109oz)
- increase in tonnes milled of 9%
- increase in total recovered grade of 2%
- Cash operating costs decreased by 3% to R351 109/kg (US$1 156/oz)
- Operating profit(1) lower at R639 million (US$68 million)
- Headline loss per share of 186 SA cents (US$20 cents)
- reversal of the Hidden Valley deferred tax asset of R547 million (US$55 million)(3)
- retrenchment costs
Year on Year
- 7% increase in underground grade
- Lowest recorded annual LTIFR(2)
- Evander sale transaction completed
- Watershed agreement signed with Kusasalethu labour
- Gold production decreased by 2% to 35 374kg (1 137 297oz)
- Cash operating costs increased to R327 210/kg (US$1 154/oz)
- Operating profit¹ lower at R4.5 billion (US$511 million)
- Headline profit per share* of 47 SA cents (5 US cents)
- reversal of the Hidden Valley deferred tax asset of R547 million (US$55 million)(3)
- losses related to temporary closure at Kusasalethu
- retrenchment costs
- No final dividend declared (interim dividend of 50 SA cents paid)
* Includes discontinued operation
1. Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the operating
profit line in the income statement
2. LTIFR = Lost Time Injury Frequency Rate
3. Translated at a spot rate of US$/R9.98 at 30 June 2013
RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED 30 JUNE 2013
Year Year
Quarter Quarter Q-on-Q ended ended
June March variance June June Variance
2013 2013# % 2013# 2012# %
Gold produced - kg 8 588 7 699 12 35 374 36 273 (2)
oz 276 109 247 529 12 1 137 297 1 166 203 (2)
Cash operating costs - R/kg 351 109 362 491 3 327 210 274 767 (19)
US$/oz 1 156 1 264 9 1 154 1 100 (5)
Gold sold - kg 8 146 7 506 9 34 970 36 182 (3)
oz 261 901 241 322 9 1 124 312 1 163 277 (3)
Underground grade g/t 4.37 4.50 (3) 4.54 4.26 7
Gold price received - R/kg 427 534 470 030 (9) 454 725 419 668 8
US$/oz 1 407 1 639 (14) 1 603 1 681 (5)
Operating profit(1) - R million 639 821 (22) 4 502 5 258 (14)
US$million 68 92 (26) 511 677 (25)
Basic (loss)/earnings SAc/s (809) (29) >(100) (548) 614 >(100)
per share* USc/s (86) (3) >(100) (62) 79 >(100)
Headline (loss)/profit* - Rm (804) (202) >(100) 204 2 432 (92)
US$m (85) (23) >(100) 23 317 (93)
Headline (loss)/earnings SAc/s (186) (47) >(100) 47 565 (92)
per share* USc/s (20) (5) >(100) 5 74 (93)
Exchange rate R/US$ 9.45 8.92 6 8.82 7.77 14
# Figures represent continuing operations unless stated otherwise
1 Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the
operating profit line in the income statement
* Including discontinued operations
Shareholder information
Issued ordinary share capital at 30 June 2013 435 289 890
Issued ordinary share capital at 31 March 2013 435 257 691*
Issued ordinary share capital at 30 June 2012 431 564 236
Market capitalisation
At 30 June 2013 (ZARm) 15 562
At 30 June 2013 (US$m) 1 568
At 31 March 2013 (ZARm) 25 728
At 31 March 2013 (US$m) 2 804
At 30 June 2012 (ZARm) 33 015
At 30 June 2012 (US$m) 4 037
Harmony ordinary share and ADR prices
12-month high (1 July 2012
30 June 2013) for ordinary shares 85.71
12-month low (1 July 2012
30 June 2013) for ordinary shares 33.47
12-month high (1 July 2012
30 June 2013) for ADRs 10.34
12-month low (1 July 2012
30 June 2013) for ADRs 3.30
Free float 100%
ADR ratio 1:1
JSE Limited HAR
Range for quarter (1 April
30 June 2013 closing prices) R33.47 R58.25
Average daily volume for the quarter
(1 April 30 June 2013) 2 232 419 shares
Range for quarter (1 January
31 March 2013 closing prices) R53.40 R75.64
Average daily volume for the quarter
(1 January 31 March 2013) 1 581 188 shares
Range for the year (1 July 2012
30 June 2013 closing prices) R33.47 R85.71
Average daily volume for the year
(1 July 2012 30 June 2013) 1 753 866 shares
Range for the year (1 July 2011
30 June 2012 closing prices) R72.84 R115.75
Average daily volume for the year
(1 July 2011 30 June 2012) 1 518 116 shares
New York Stock Exchange, Inc including
other US trading platforms HMY
Range for quarter (1 April
30 June 2013 closing prices) US$3.30 US$6.38
Average daily volume for the quarter
(1 April 30 June 2013) 3 302 649
Range for quarter (1 January
31 March 2013 closing prices) US$5.94 US$8.88
Average daily volume for the quarter
(1 January 31 March 2013) 2 423 016
Range for the year (1 July 2012
30 June 2013 closing prices) US$3.30 US$10.34
Average daily volume for the year
(1 July 2012 30 June 2013) 2 484 062
Range for the year (1 July 2011
30 June 2012 closing prices) US$8.70 US$14.87
Average daily volume for the year
(1 July 2011 30 June 2012) 2 321 783
Investors' calendar 2013
Q1 FY14 results presentation 8 November 2013#
Annual General Meeting 5 December 2013#
Q2 and 6 months ended FY14 results
presentation 3 February 2014#
Q3 FY14 results presentation 9 May 2014#
Q4 and year ended FY14 results presentation 14 August 2014#
# These dates may change in future
* The increase in the issued shares is mainly due to the shares issued to the
Tlhakanelo Employee Share Trust
Harmony's Integrated 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 2013 will be
available on our website towards the end of
October 2013.
www.harmony.co.za
Forward-looking statements
This 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 judgement
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 regulations, 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.
Competent person's declaration
Harmony reports in terms of the South African Code for the Reporting
of Exploration results, Mineral Resources and Ore Reserves (SAMREC).
Harmony employs an ore reserve manager at each of its operations who
takes responsibility for reporting mineral resources and mineral reserves
at his operation.
The mineral resources and mineral reserves in this report are based
on information compiled by the following competent persons:
Resources and Reserves South Africa: Jaco Boshoff, Pr. Sci. Nat., who has
18 years' relevant experience and is registered with the South African
Council for Natural Scientific Professions (SACNASP).
Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc,
who has 25 years relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM).
Mr Boshoff and Mr Job are full-time employees of Harmony Gold Mining
Company Limited. These competent persons consent to the inclusion
in the report of the matters based on the information in the form and
context in which it appears.
Mineral Resource and Reserve information as at 30 June 2013 is included
in this report.
Chief executive officer's review
Harmony is a globally competitive gold mining company, focused on
growing profits. In the current gold price environment it is no longer
growth at all costs. Investors are seeking returns and do not favour
large capital projects. This is the new reality that we are dealing with.
During the past quarter we have concluded our strategic plans for
financial year 2014. Key considerations were:
- free cash flow
- applying conservative financial modelling
- risk mitigation
- retaining our balance sheet strength
reducing all costs (including head office costs)
reducing capital expenditure
- continue to increase our grade
- plans that will enable us to withstand the volatility of the gold price
Our strategic plans were approved assuming a gold price of R400 000/kg.
We believe that our plans are realistic and we have taken into account
possible risks to execute our strategy. Our safety and health initiatives,
improved productivity, the correct allocation of capital, a quality reserve
base, improved grade, reduced costs, experienced teams and proper
business planning will secure a sustainable business.
1. SAFETY
The year on year fatality injury frequency rate improved by 33% from
0.15 (rate per million man hours) in FY12 to 0.10 (rate per million man
hours) in financial year 2013 (FY13) the lowest ever recorded in the
history of Harmony. Although Harmony achieved a significant year on
year improvement, a lot more needs to be done to eliminate fatalities.
A total of 10 people lost their lives due to mine accidents in Harmony
during FY13, compared to 15 people in FY12. A major reduction in the
number of fall of ground related fatalities was achieved with only one
fall of ground related fatality recorded in FY13.
The lost time injury rate improved by 21% year on year from 6.67 (rate
per million man hours) to 5.28 (rate per million man hours) this is the
lowest annual rate in the history of Harmony.
It is with regret that I have to report that two people were fatally injured
in two separate accidents during the June 2013 quarter. They were
Potso Peter Kotjomela, a scraper winch operator at Phakisa and
Lebohang Michael Chake, a development team leader at Kusasalethu.
The board, management and I wish to express our sincere condolences
to the friends and families of these colleagues.
2. HEALTH
Over the past three years we have built a centralised health function
to focus on the roll out of our pro-active health strategy, as well as
standardising health protocols across the South African operations.
We have invested a substantial amount of resources, i.e. finance,
information technology and skills in improving our record keeping
systems and processes in an attempt to monitor employee health
individually and collectively to improve the overall health and wellness
of our employees.
40% of our workforce is on chronic medication and are continuously
monitored. Although HIV/Aids remains our biggest health risk, the
actuarial prevalence rate for Harmony has reduced from 27% to 24%
over the past five years. Between 10% to 20% of the employees of
the individual mines are now on antiretroviral therapy (ART). During
the past financial year all Harmony's employees and contractors were
offered voluntary counselling and testing for HIV/Aids, with 40%
volunteering to be tested.
Although there has been an improvement in sick absenteeism over the
past financial year from 5.13% to 4.55%, we believe that there is still
massive room for improvement in this area and it will be a key focus for
the health team for the next year.
3. OPERATIONAL AND FINANCIAL RESULTS
Year on year
Gold production for the year ending June 2013 was 35 374kgs,
2% lower than the same period last year, mainly due to the labour
disruptions at Kusasalethu during the December 2012, March 2013
and June 2013 quarters.
In line with Harmony's strategic initiative to improve the quality of
ounces mined, year on year underground grade increased by 7%.
Recovered grade was the main driver towards the increase in gold
production across the various operations and improvements were
recorded at most operations.
The following operations improved their gold production when
compared to financial year 2012 (FY12):
- Joel gold production was 565kg (21%) higher, mainly as a result of
an 11% improvement in the recovered grade to 5.28g/t (4.78g/t in
FY12), whilst tonnes milled increased by 10% year on year;
- Bambanani gold production was 556kg (54%) higher due to a
49% increase in the recovered grade from 6.57g/t in FY12 to
9.79g/t for the year under review. Tonnes milled increased by 3%
year on year;
- Doornkop gold production was higher at 556kg (18%), recovered
grade increased by 9% from 3.31g/t to 3.60g/t in FY13. Tonnes
milled increased by 9%;
- Target 3 gold production increased by 503kg (45%) recovered
grade increased by 42% to 5.03g/t from 3.55g/t in FY12;
- Masimong gold production increased by 396kg (12%), as a
result of a 21% increase in the recovered grade to 4.17g/t
(3.45g/t in FY12);
- Target 1 gold production was 337kg (9%) higher; recovered grade
increased by 20% from 4.61g/t in FY12 to 5.53g/t in financial year
2013 (FY13);
- Kalgold gold production was 291kg (28%) higher; recovered
grade increased by 22% to 0.95g/t compared to 0.78g/t in FY12.
Tonnes milled increased 4% year on year;
- Unisel gold production increased by 220kg (14%); tonnes milled
increased by 13% in FY13;
- Steyn 2 gold production increased by 147kg (45%), with the
operation being in production for the whole year. Tonnes milled
increased by 24% whilst recovered grade increased by 31% to
10.15g/t (7.74g/t in FY12).
The following operations require more attention in the next year, as
their production performance was less than acceptable:
- Kusasalethu produced a total of 2 740 kilograms of gold,
2 893 kilograms (51%) less than in financial year 2012 due to labour
unrest;
- Tshepong produced 1 133kg gold less (21%) than the previous
financial year. The decrease in gold production is mainly as a
result of a 16% decrease in tonnes milled for financial year 2013.
A decrease in the recovery grade to 3.99g/t, 7% lower than the
4.29g/t recorded in FY12, also contributed towards the decrease in
production;
- Dumps 230kg less gold produced (15%); a 26% decrease in
the recovery grade was the main contributor towards the decrease
in gold produced. Tonnes milled increased by 11%. The decrease in
grade is due to the depletion of all the higher grade waste dumps;
- Hidden Valley produced 118kg (-4%) less gold year on year. The
recovery grade decreased by 8% to 1.43g/t from 1.56g/t in FY12,
whilst tonnes milled increased by 4%;
- Phakisa produced 107kg (-4%) less gold than in the previous
finanicial year, due to the ventilation shaft failure in the March and
June 2013 quarters resulting in tonnes milled being 2% lower
than in FY13, with the recovered grade 3% lower at 4.75g/t
(4.88g/t in FY12).
A total net loss of R2.4 billion was recorded, compared to a net profit
of R2.6 billion for the 2012 financial year, mainly due to the impairment
of the Hidden Valley asset and labour disruptions at Kusasalethu and its
subsequent temporary closure.
The total basic loss per share is 548 SA cents for the year ended 30 June
2013, compared to earnings of 614 SA cents per share in the previous
year. Total headline earnings per share decreased from 565 SA cents to
47 SA cents per share.
Quarter on quarter
We continue to manage that which is in our control production and
costs. Gold production for the June 2013 quarter increased by 12%
to 8 588kg compared to the previous quarter. This was mainly due to
the build-up in production at Kusasalethu, after the labour unrest at
the mine during the second to fourth quarters of the financial year.
Operating profit for the June 2013 quarter was 22% lower, due to a
9% decrease in the gold price received, as well as an 8% increase in
cash operating cost. Cash operating costs in the June 2013 quarter
increased by R225 million when compared to the March 2013 quarter,
due to the build-up in production at Kusasalethu, annual electricity
increases, as well as winter electricity tariffs.
We are making good progress with our cost cutting project, Project
400. We have reduced our capital expenditure, as well as our services,
exploration, procurement and corporate costs.
The rand per kilogram unit cost for the June 2013 quarter decreased by
3% to R351 109/kg in the past quarter, mainly due to the 12% increase
in gold produced for the June 2013 quarter.
Total capital expenditure for the June 2013 quarter was R804 million
R127 million higher than the previous quarter mainly as a result of a
R93 million increase in capital expenditure at Kusasalethu.
On the 19th of July 2013 Harmony announced that the carrying value
of its 50% holding in Hidden Valley would be written down to its net
recoverable value. The reason for the impairment is the reduction in
the US dollar gold and silver prices and Hidden Valley's poor production
performance. An amount of US$268 million (approximately R2.7 billion)
has been written down. In addition, an amount of R58 million in respect
of Harmony's South African assets has been impaired. The impairments
have reduced the reported net profit, but do not have an impact on
reported cash balances and free cash flow.
The net loss for the June 2013 quarter was R3 499 million, compared to
a R124 million net loss recorded for the March 2013 quarter, mainly due
to the impairment of assets of R2 675 million and the derecognition of
the deferred tax asset of R547 million for the Hidden Valley operation.
The total basic loss per share for the June 2013 quarter increased from
29 SA cents to 809 SA cents per share. The total headline loss per share
increased from 47 SA cents to 186 SA cents.
Hidden Valley
The various efficiency improvement and cost reduction projects
continue at Hidden Valley showing significant improvements in the
mining grade control, road maintenance (cost and productivity), truck
loading efficiency and smaller mobile fleet requirements.
The restructuring of the joint venture's management to meet both the
financial and strategic objectives of the business progressed well during
the past quarter.
4. GOLD MARKET
We are in gold mining for the long haul and believe that R400 000/kg
is a sustainable gold price to assume in the current gold price climate.
With the Rand/dollar exchange rate being weaker, it has been a huge
advantage to be predominately a South African producer.
The rand gold price received during the quarter decreased by 9% to
R427 534/kg, from R470 030/kg in the previous quarter. This was mainly
due to a 14% decrease in the US dollar gold price from US$1 639/oz in
the March 2013 quarter to US$1 407/oz during the past quarter. This
decrease was however partially offset by a 6% weakening in the rand
against the dollar from US$/R8.92 in the previous quarter to US$/R9.45
in the June 2013 quarter.
Year on year, the R/kg gold price received increased by 8% while
the US$/oz price decreased by 5%, due to the R/US$exchange rate
weakening by 14%.
5. RESERVES AND RESOURCES
As at 30 June 2013, Harmony's Mineral Reserves amounted to
51.5 million ounces (Moz) of gold, a 2.8% decrease from the 52.9Moz
declared on 30 June 2012. The 2.8% decrease collectively represents
mined Reserves during the year, a change in surface sources Reserves,
together with some scope changes. The geographical representation of
Reserves has not changed from the previous year.
Harmony's attributable gold equivalent Mineral Resources are declared
as 147.7Moz as at 30 June 2013, a 1.7% decrease year-on-year from
the 150.2Moz declared on 30 June 2012. The 1.7% decrease is due to
mining and geology changes.
Our large Resource and Reserve base supports our belief that we have a
solid base of assets containing quality ounces.
6. WAFI-GOLPU PROJECT
Regardless of the quality of the ore body, developing Golpu in line
with the 2012 pre-feasibility study in the current gold and copper
price climate does not deliver an adequate return on investment
and therefore requires to be repositioned. We had various concerns
regarding the substantial capital that will be injected into the project
and are considering ways in which to develop a project with lower
capital requirements and which will be a modular, expandable mine.
Harmony's contribution to drilling and project expenditure for the next
two financial years will be funded from our cash flow, after which
external funding options will be considered. During this phase we will
ensure that Golpu's development strategy is aligned with the strategy of
Harmony, which is to grow investor returns.
A low risk, modular, expandable development approach involves less
risk and is expected to result in an improved project value. The decision
to apply a modular expandable solution is a different approach to that
proposed in the 2012 pre-feasibility study.
7. EMPLOYEE RELATIONS
The labour relations climate remained volatile in the industry prior to
the start of the 2013 round of wage negotiations in the gold sector.
Harmony experienced two work stoppages during the quarter led by
the National Union of Mine Workers (NUM) at Doornkop and Tshepong.
The issues raised during these industrial actions were mainly operational
and have since been resolved, or are in the process of being addressed
through the existing mine-based structures.
A recognition agreement was signed by management and the
Association of Mineworkers and Construction Union (AMCU) for
Masimong during the week of the 15th of July 2013. AMCU now
represents a third of Masimong's total workforce and at Kusasalethu,
AMCU represents 74% of the employees.
The gold sector wage negotiations started on 11 July 2013 at the
Chamber of Mines. We believe that good sense will prevail and that
strikes will be averted. The labour disruptions at Kusasalethu alone
cost Harmony approximately R1.2 billion. It is not in the interest of
the company, the employees or the industry to further be subjected to
such losses.
There are a number of initiatives being implemented to contain the
labour situation, both at company and industry level. Some of these
include the following:
- Workshops with all the unions in the company;
- Engagement with the unions on signing of the code of conduct by
individual employees similar to the one signed at Kusasalethu;
- General managers' mass meetings;
- Communication campaigns with employees and unions across all
our South African operations;
- Re-introduction of the mine productivity bonus;
- Continued engagement with the other gold mining companies.
8. DISPOSAL OF A 30% INTEREST IN THE PHOENIX OPERATION
On 20 March 2013 Harmony signed transaction and funding
agreements to give effect to an empowerment transaction to dispose
of 30% of its Free State based Phoenix tailings operation (Phoenix)
to BB-BEE shareholders. The BB-BEE shareholders include Sikhuliso
Resources (Proprietary) Limited, Kopano Resources (Proprietary) Limited,
Mazincazelane Investments (Proprietary) Limited and the Malibongwe
Women Development Trust, as well as a community trust that has been
created by Harmony.
9. DIVIDEND
In view of the fact that Harmony did not record a profit for the last
six months, the board has decided not to declare a final dividend. An
interim dividend of 50 SA cents was paid during FY13.
CONCLUSION
Harmony's strategy has been consistent in that we seek to optimise
operational delivery, grow our cash flow and share our profits with all
our stakeholders. There are times when pursuing one's strategy, tough
decisions are required such as the temporary closure of Kusasalethu.
We will continue to do what is right for our shareholders and
stakeholders to sustain the future of the company.
Graham Briggs
Chief executive officer
Financial overview
QUARTER ON QUARTER
Net loss
The net loss for the June 2013 quarter was R3 499 million compared
to a R124 million net loss for the March 2013 quarter, mainly due to
impairment of assets of R2 675 million and the reversal of a deferred tax
asset of R547 million for the Hidden Valley operation.
Impairment of assets
Following the sharp decrease in the gold price, an impairment of assets
of R2 733 million was recorded during the June 2013 quarter, consisting
of an impairment of R2 675 million for the Hidden Valley operation and
R58 million for the SA operations. The impairment results from a lower
than expected life-of-mine profit, due to the reduction in the US dollar
gold and silver prices assumptions and Hidden Valley's poor production
performance.
Other items in Cost of Sales
Other items in Cost of Sales for the June 2013 quarter includes a change
in estimate of the value of static gold in lock-up and other stockpiles
of R29 million and restructuring costs of R39 million, following the
introduction of voluntary retrenchment packages in South Africa and
the restructuring at the Hidden Valley operation. Offsetting this is a net
credit of R40 million for rehabilitation following the reduction of the
rehabilitation liability, primarily as a result of the rehabilitation projects
in the Free State area.
Other expenses
Included in other expenses in the June 2013 quarter is a loss of
R161 million for the foreign exchange movement (March 2013:
R150 million) on the US$ denominated syndicated facility, resulting from
the Rand weakening from US$/R9.22 at 31 March 2013 to US$/R9.98 at
30 June 2013. Also included is an amount of R23 million for the once-off
share-based payment expense related to the Phoenix transaction.
Deferred tax
A deferred tax expense of R547 million was recorded following
the derecognition of the Hidden Valley deferred tax asset during
the June 2013 quarter, as it is no longer deemed recoverable in the
current gold price environment.
Loss per share
Total basic loss per share increased in the June 2013 quarter from
29 SA cents to 809 SA cents per share. Total headline loss per share increased
from 47 SA cents to 186 SA cents per share.
YEAR ON YEAR
Exploration expenditure
Exploration expenditure for the year ended 30 June 2013 increased to
R673 million compared to R500 million for the previous year, mainly
due to R652 million spent on the PNG projects. Expenditure on resource
definition drilling amounted to R233 million, exploration amounted to
R251 million, while the feasibility studies accounted for R168 million of
the total for the year. These expenses are expected to decrease in future
as a result of the optimisation process reductions agreed to by both the
joint venture partners.
Profit from discontinued operations
Profit from discontinued operations for the year ended 30 June 2013
includes the group profit of R102 million recorded on the sale of Evander
in the March 2013 quarter, following the fulfilment of all conditions
precedent. The remaining R212 million represents profits for Evander
for the eight months ended February 2013. Included in the amount
for the year ended 30 June 2012 is the profit on sale of Evander 6 and
Twistdraai to Taung Gold Limited of R230 million (before tax).
Loss per share
Total basic loss per share amounted to 548 SA cents in the year ended
30 June 2013, compared to earnings of 614 SA cents per share in the
previous year. Total headline earnings per share decreased from
565 SA cents to 47 SA cents per share.
Borrowings
Total borrowings increased by R722 million to R2 538 million in the year
ended 30 June 2013. This is due to a total drawdown of US$80 million
(R678 million) and a foreign exchange translation loss of R351 million
recorded on the US$ syndicated facility in the year ended 30 June 2013.
This was partially offset by the total repayment of R305 million made
during the year ended 30 June 2013 on the rand facilities.
Results for the fourth quarter and year ended 30 June 2013 (Rand)
CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)
Quarter ended Year ended
30 June 31 March 30 June 30 June 30 June
2013 2013 2012 2013 2012
Figures in million Notes (Unaudited) (Unaudited) (Unaudited) (Audited)
Continuing operations
Revenue 3 483 3 528 3 934 15 902 15 169
Cost of sales 2 (6 173) (3 283) (3 325) (16 468) (12 137)
Production costs (2 844) (2 707) (2 639) (11 400) (9 911)
Amortisation and depreciation (501) (459) (548) (1 942) (1 921)
(Impairment)/reversal of impairment of assets (2 733) 60 (2 733) 60
Other items (95) (117) (198) (393) (365)
Gross (loss)/profit (2 690) 245 609 (566) 3 032
Corporate, administration and other expenditure (127) (121) (91) (465) (352)
Social investment expenditure (57) (25) (22) (127) (72)
Exploration expenditure (219) (157) (161) (673) (500)
Profit on sale of property, plant and equipment 4 15 34 139 63
Other expenses net 5 (169) (138) (74) (350) (50)
Operating (loss)/profit (3 262) (181) 295 (2 042) 2 121
Reversal of impairment of investment in associate 56
Impairment of investments 6 (39) (144) (88) (144)
Net (loss)/gain on financial instruments (8) 15 12 173 86
Investment income 67 47 33 185 97
Finance cost (57) (65) (69) (256) (286)
(Loss)/profit before taxation (3 260) (223) 127 (2 028) 1 930
Taxation (239) (44) (200) (655) 123
Normal taxation 78 (124) (83) (271) (199)
Deferred taxation 7 (317) 80 (117) (384) 322
Net (loss)/profit from continuing operations (3 499) (267) (73) (2 683) 2 053
Discontinued operations
Profit from discontinued operations 8 143 180 314 592
Net (loss)/profit for the period (3 499) (124) 107 (2 369) 2 645
Attributable to:
Owners of the parent (3 499) (124) 107 (2 369) 2 645
(Loss)/earnings per ordinary share (cents) 9
(Loss)/earnings from continuing operations (809) (62) (17) (621) 477
Earnings from discontinued operations 33 42 73 137
Total (loss)/earnings (809) (29) 25 (548) 614
Diluted (loss)/earnings per ordinary share (cents) 9
(Loss)/earnings from continuing operations (809) (62) (17) (621) 476
Earnings from discontinued operations 33 42 73 136
Total diluted (loss)/earnings (809) (29) 25 (548) 612
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand)
Quarter ended Year ended
30 June 31 March 30 June 30 June 30 June
2013 2013 2012 2013 2012
Figures in million Notes (Unaudited) (Unaudited) (Unaudited) (Audited)
Net (loss)/profit for the period (3 499) (124) 107 (2 369) 2 645
Other comprehensive income for the period,
net of income tax 25 510 606 758 1 587
Foreign exchange translation 26 523 506 749 1 485
Movements on investments 6 (1) (13) 100 9 102
Total comprehensive (loss)/income for the period (3 474) 386 713 (1 611) 4 232
Attributable to:
Owners of the parent (3 474) 386 713 (1 611) 4 232
The accompanying notes are an integral part of these condensed consolidated financial statements.
All items in other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.
The condensed consolidated provisional financial statements (condensed consolidated financial statements) have been
prepared by Harmony Gold Mining Company Limited's corporate reporting team headed by Mr Herman Perry, supervised by
the financial director, Mr Frank Abbott. They have been approved by the Board of Harmony Gold Mining Company Limited.
The condensed consolidated financial statements for the 12 months ended 30 June 2013 were reviewed by the group's
external auditors, PricewaterhouseCoopers Incorporated (see note 18).
CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)
At At At
30 June 31 March 30 June
2013 2013 2012
Figures in million Note (Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 10 32 820 34 911 32 853
Intangible assets 2 191 2 190 2 196
Restricted cash 37 38 36
Restricted investments 2 054 2 050 1 842
Deferred tax assets 7 104 652 486
Investments 11 153 139 146
Inventories 57 57 58
Trade and other receivables 6 28
Total non-current assets 37 416 40 043 37 645
Current assets
Inventories 1 425 1 206 996
Trade and other receivables 1 162 1 482 1 245
Income and mining taxes 132 3 118
Cash and cash equivalents 2 089 3 099 1 773
4 808 5 790 4 132
Assets of disposal groups classified as held for sale 8 1 423
Total current assets 4 808 5 790 5 555
Total assets 42 224 45 833 43 200
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 325 28 331 28 331
Other reserves 3 478 3 392 2 444
Retained earnings 503 4 002 3 307
Total equity 32 306 35 725 34 082
Non-current liabilities
Deferred tax liabilities 3 021 3 244 3 106
Provision for environmental rehabilitation 1 997 1 961 1 865
Retirement benefit obligation 194 188 177
Other provisions 55 48 30
Borrowings 12 2 252 2 238 1 503
Total non-current liabilities 7 519 7 679 6 681
Current liabilities
Borrowings 12 286 287 313
Income and mining taxes 4 92 1
Trade and other payables 2 109 2 050 1 747
2 399 2 429 2 061
Liabilities of disposal groups classified as held for sale 8 376
Total current liabilities 2 399 2 429 2 437
Total equity and liabilities 42 224 45 833 43 200
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand)
for the year ended 30 June 2013
Share Other Retained
Figures in million capital reserves earnings Total
Balance 30 June 2012 28 331 2 444 3 307 34 082
Issue of shares 1 1
Share-based payments (7) 274 267
Net loss for the period (2 369) (2 369)
Other comprehensive income for the period 758 758
Option premium on BEE transaction 2 2
Dividends paid(1) (435) (435)
Balance 30 June 2013 28 325 3 478 503 32 306
Balance 30 June 2011 28 305 762 1 093 30 160
Issue of shares 26 26
Share-based payments 95 95
Net profit for the period 2 645 2 645
Other comprehensive income for the period 1 587 1 587
Dividends paid(2) (431) (431)
Balance 30 June 2012 28 331 2 444 3 307 34 082
1. Dividend of 50 SA cents declared on 13 August 2012 and 50 SA cents on 1 February 2013.
2. Dividend of 60 SA cents declared on 12 August 2011 and 40 SA cents on 2 February 2012.
The statement of changes in equity for the year ended 30 June 2012 has been audited.
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)
Quarter ended Year ended
30 June 31 March 30 June 30 June 30 June
2013 2013 2012 2013 2012
Figures in million (Unaudited) (Unaudited) (Unaudited) (Audited)
Cash flow from operating activities
Cash generated by operations 221 204 1 211 3 154 4 551
Interest and dividends received 48 34 20 138 80
Interest paid (40) (27) (38) (125) (141)
Income and mining taxes paid (129) (70) (163) (312) (277)
Cash generated by operating activities 100 141 1 030 2 855 4 213
Cash flow from investing activities
Restricted cash transferred from disposal group 252
Proceeds on disposal of Evander 1 264 1 264
Proceeds on disposal of investment in associate 29 222
Proceeds on disposal of Evander 6 and Twistdraai 125 125
Proceeds on disposal of Merriespruit South 61
Purchase of investments (14) (33) (86)
Other investing activities (1) 3 (56) (4) (85)
Net additions to property, plant and equipment(1) (938) (835) (952) (3 713) (3 140)
Cash (utilised)/generated by investing activities (953) 651 (854) (2 478) (2 878)
Cash flow from financing activities
Borrowings raised 342 678 1 443
Borrowings repaid (156) (4) (161) (333) (1 248)
Ordinary shares issued net of expenses 1 3 1 26
Option premium on BEE transaction 2 2
Dividends paid (217) (435) (431)
Cash (utilised)/generated by financing activities (153) (221) 184 (87) (210)
Foreign currency translation adjustments (4) 17 (14) 26 (45)
Net (decrease)/increase in cash and cash equivalents (1 010) 588 346 316 1 080
Cash and cash equivalents beginning of period 3 099 2 511 1 427 1 773 693
Cash and cash equivalents end of period 2 089 3 099 1 773 2 089 1 773
1. Includes capital expenditure for Wafi-Golpu and other international projects of R133 million in the June 2013 quarter (March 2013: R148 million) (June 2012: R122 million) and
R537 million in the 12 months ended 30 June 2013 (June 2012: R314 million).
The accompanying notes are an integral part of these condensed consolidated financial statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2013 (Rand)
1. Accounting policies
Basis of accounting
The condensed consolidated provisional financial statements are prepared in accordance with the requirements of the JSE Limited Listings
Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings Requirements require provisional
reports to be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial
Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and contain the information
required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the condensed consolidated provisional
financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.
2. Cost of sales
Quarter ended Year ended
30 June 31 March 30 June 30 June 30 June
2013 2013 2012 2013 2012
Figures in million (Unaudited) (Unaudited) (Unaudited) (Audited)
Production costs excluding royalty 2 799 2 658 2 623 11 183 9 791
Royalty expense 45 49 16 217 120
Amortisation and depreciation 501 459 548 1 942 1 921
Impairment/(reversal of impairment) of assets(1) 2 733 (60) 2 733 (60)
Rehabilitation (credit)/expenditure(2) (40) 10 20 (24) (17)
Care and maintenance cost of restructured shafts 16 16 19 68 88
Employment termination and restructuring costs(3) 39 11 46 81
Share-based payments(4) 45 95 21 266 87
Other(5) 35 (4) 127 37 126
Total cost of sales 6 173 3 283 3 325 16 468 12 137
1. The impairment in the June 2013 quarter consists of an impairment of R2.68 billion on Hidden Valley, R31 million on St Helena and R27 million on Steyn 2. The net reversal
in the June 2012 quarter consists mainly of a reversal of R194 million for Target 1 and an impairment of R126 million on Steyn 2. Refer to note 10 for further detail.
2. The credit in the June 2013 quarter relates to a change in estimate following the annual reassessment. The decrease in the 2012 and 2013 years resulted due to the
rehabilitation projects completed in the Free State area during both years.
3. Included in the June 2013 quarter are amounts relating to the restructuring at Hidden Valley and the introduction of voluntary retrenchment packages in South Africa.
The amounts for the 2012 financial year relates to restructuring at the Bambanani shaft.
4. Refer to note 3 for details.
5. Included in the June 2013 quarter are amounts relating to the change in estimate of gold in lock-up and other stockpiles. The June 2012 quarter includes amounts relating
to the change in estimate of gold in lock-up.
3. Share-based payments
This includes the cost relating to the new Employee Share Ownership Plan (ESOP) awards that were granted in August 2012. In terms of the
ESOP rules, all employees other than management were awarded a minimum of 100 Scheme Shares and 200 Share Appreciation Rights (SARs),
with employees with service longer than 10 years receiving an additional 10%. Both the Scheme Shares and SARs vest in five equal portions
on each anniversary of the award. In addition these employees qualify for an additional cash bonus under the SARs in the event that the share
price growth is less than R18 per share. The effect of the bonus puts the employees in the position they would have been in had the share price
increased by R18 per share since issue date.
Harmony issued 3.5 million shares to the Tlhakanelo Share Trust on 31 August 2012. In addition, 6 817 880 SARs were issued. In terms of
IFRS 2, Share-based Payment, the SARs includes an equity-settled portion as well as a cash-settled portion related to the cash bonus. The cash-
settled portion has been recognised in the balance sheet, the fair value of which will be remeasured at each reporting date. At the annual
general meeting on 28 November 2012, the shareholders authorised the acceleration of the vesting from August to March each year.
During the March 2013 quarter, the first portion of the Scheme Shares and SARs awarded in August 2012 vested, resulting in all qualifying
employees receiving a minimum value of R1 912 before tax, amounting to a total value of R58 million being distributed in April 2013. During
March 2013, new qualifying employees who have not previously received an offer were awarded 80 Scheme Shares and 160 SARs which will
vest in four equal portions on each anniversary of the award. A total of 97 040 Scheme Shares and 194 080 SARs were issued by the Tlhakanelo
Share Trust for this award.
4. Profit on sale of property, plant and equipment
Included in the amount is the transaction for the sale of the Merriespruit South mining right to Witwatersrand Consolidated Gold Resources
Limited (Wits Gold) that was completed, resulting in a profit of R60 million during the December 2012 quarter.
5. Other expenses net
(a) Included in the June 2013 quarter is a foreign exchange translation loss of R161 million (March 2013: R150 million) on the US dollar
denominated loan. The effect of foreign exchange changes for the 12 months totals a translation loss of R351 million (June 2012:
R45 million). Refer to note 12 for further details.
(b) On 20 March 2013 Harmony signed transaction and funding agreements to give effect to an empowerment transaction to dispose of 30%
of its Free State based Phoenix tailings operation (Phoenix) to BB-BEE shareholders, which includes a free-carry allocation of 5% to a
Community Trust that has been created and is currently controlled by Harmony. The transaction closed on 25 June 2013, following the
fulfilment of the last condition precedent. In terms of the agreements Phoenix was transferred to a newly incorporated subsidiary
(PhoenixCo). The fair value of the net assets for purposes of the transaction was set at R450 million.
The awards to the BEE partners have been accounted for as an in-substance option as the BEE partners will only share in the upside of their
equity interest in PhoenixCo until the date the financing provided by Harmony is fully repaid. On this date the options will be exercised. The
award of the options to the BEE partners is accounted for as an equity-settled share-based payment arrangement. The in-substance options
carry no vesting conditions and the fair value of the options of R23 million has been expensed on the grant date, 25 June 2013.
6. Impairment of investments
A decline in the fair value of the investment in Witwatersrand Consolidated Gold Resource Limited (Wits Gold) during the year resulted in an
impairment of R88 million (2012: R144 million) recorded in the income statement.
7. Deferred taxation
The net deferred taxation debit in the income statement in the June 2013 quarter is primarily due to the derecognition of the deferred tax asset
amounting to R547 million previously recorded for the Hidden Valley operation.
The net deferred taxation debit in the income statement in the June 2012 quarter is mainly due to the annual reassessment of the Life-of-Mine
deferred tax rates amounting to R270 million.
8. Disposal groups classified as held for sale and discontinued operations
Evander Gold Mines Limited
Harmony entered into an agreement to sell its 100% interest in Evander Gold Mines Limited (Evander) to a wholly owned subsidiary of Pan
African Resources Plc for R1.5 billion, less certain distributions, during May 2012. The last condition was met on 14 February 2013 and the
transaction was completed on 28 February 2013. In terms of the agreement Harmony received a distribution of R210 million and a purchase
consideration of R1 314 million. A group profit of R102 million was recorded in the March 2013 quarter.
9. Earnings and net asset value per share
Quarter ended Year ended
30 June 31 March 30 June 30 June 30 June
2013 2013 2012 2013 2012
(Unaudited) (Unaudited) (Unaudited) (Audited)
Weighted average number of shares (million) 432.6 431.8 431.4 431.9 430.8
Weighted average number of diluted shares (million) 433.1 432.8 432.3 432.7 432.0
Total (loss)/earnings per share (cents):
Basic (loss)/earnings (809) (29) 25 (548) 614
Diluted (loss)/earnings (809) (29) 25 (548) 612
Headline (loss)/earnings (186) (47) (6) 47 565
from continuing operations (186) (56) (11) (2) 465
from discontinued operations 9 5 49 100
Diluted headline (loss)/earnings (186) (47) (6) 47 563
from continuing operations (186) (56) (11) (2) 463
from discontinued operations 9 5 49 100
Reconciliation of headline earnings:
Figures in million
Continuing operations
Net (loss)/profit (3 499) (267) (73) (2 683) 2 053
Adjusted for:
Reversal of impairment of investment in associate* (56)
Impairment of investments* 39 144 88 144
Impairment/(reversal of impairment) of assets 2 733 (60) 2 733 (60)
Taxation effect on impairment/(reversal of impairment) of
assets (38) (34) (38) (34)
Profit on sale of property, plant and equipment (15) (34) (139) (63)
Taxation effect of profit on sale of property, plant and
equipment 9 31 16
Headline (loss)/earnings** (804) (243) (48) (8) 2 000
Discontinued operations
Net profit 143 180 314 592
Adjusted for:
Profit on sale of property, plant and equipment (230) (232)
Taxation effect of profit on sale of property, plant and
equipment 71 72
Profit on sale of investment in subsidiary* (102) (102)
Headline earnings 41 21 212 432
Total headline (loss)/earnings (804) (202) (27) 204 2 432
* There is no taxation effect on these items.
** Write-off of the Hidden Valley deferred tax asset of R547 million is not added back as it is not permitted per the South African Institute of Chartered Accountants Circular
on Headline Earnings.
Net asset value per share
At At At
30 June 31 March 30 June
2013 2013 2012
(Unaudited) (Audited)
Number of shares in issue 435 289 890 435 257 691 431 564 236
Net asset value per share (cents) 7 422 8 208 7 897
10. Property, plant and equipment and impairment
One of the most significant assumptions that influence the life-of-mine plans and therefore impairment amount is the expected future gold
price. During this year's testing, we used a short-term gold price of US$1 250, medium-term gold price of US$1 300 and long-term gold price
of US$1 400 per ounce for Hidden Valley and an overall price of R400 000/kg for the South African operations. A 10% decrease in the gold
price used in the models would have resulted in an additional impairment at Steyn 2 of R17 million, Target 1 of R350 million and the Hidden
Valley operation of R1.96 billion.
11. Investment in Rand Refinery
During the June 2013 quarter, an additional 1.4% interest in Rand Refinery was purchased for R14 million. This is in addition to the 7.16%
interest purchased for R72 million in two tranches during the March 2013 and December 2012 quarter. Harmony holds just over 10% interest
in Rand Refinery as at 30 June 2013.
12. Borrowings
The Nedbank revolving credit facility was repaid in full during the December 2011 quarter and the full R850 million facility is available until
December 2013. The balance on Nedbank term facilities at 30 June 2013 is R458 million.
Two drawdowns of US$40 million each (R330 million and R348 million) were made from the US$300 million syndicated revolving credit facility
during the September and December 2012 quarters, respectively. This takes the drawn level to US$210 million. The facility is repayable by
September 2015.
The weakening of the Rand against the US dollar resulted in a foreign exchange translation loss of R161 million being recorded against the
borrowings balance in the June 2013 quarter, in addition to the R150 million recorded in the March 2013 quarter. The effect of foreign
exchange changes for the 12 months totals a translation loss of R351 million (2012: R45 million).
13. Commitments and contingencies
At At At
30 June 31 March 30 June
2013 2013 2012
Figures in million (Unaudited) (Audited)
Capital expenditure commitments:
Contracts for capital expenditure 416 594 519
Authorised by the directors but not contracted for 1 545 958 2 257
1 961 1 552 2 776
This expenditure will be financed from existing resources and, where appropriate, borrowings.
Contingent liability
For a detailed disclosure on contingent liabilities refer to Harmony's annual report for the financial year ended 30 June 2012, available on the
group's website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2012, with the exception of the items
discussed below.
Following the disclosure made in Harmony's annual report for the financial year ended 30 June 2012 relating to silicosis, Harmony and its
subsidiaries, alongside other mining companies operating in South Africa (other respondents) were served with another application to certify a
class during January 2013. Harmony, its subsidiaries and other respondents are awaiting a consolidated and supplemented certification
application of the two separate applications served.
14. Subsequent events
There are no subsequent events to report.
15. Segment report
The segment report follows below.
16. Reconciliation of segment information to consolidated income statements and balance sheet
Year ended
30 June 30 June
2013 2012
Figures in million Audited
The "Reconciliation of segment information to consolidated financial statements" 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:
Reconciliation of production profit to gross (loss)/profit
Total segment revenue 16 776 16 574
Total segment production costs (11 933) (10 678)
Production profit per segment report 4 843 5 896
Discontinued operations (341) (638)
Production profit from continuing operations 4 502 5 258
Cost of sales items, other than production costs and royalty expense (5 068) (2 226)
Gross (loss)/profit as per income statements* (566) 3 032
Year ended
30 June 30 June
Figures in million 2013 2012
Reconciliation of total segment mining assets to consolidated property, plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets 836 1 226
Undeveloped property 5 139 5 139
Other non-mining assets 286 110
Wafi-Golpu assets 1 148 553
Less: Non-current assets previously classified as held-for-sale (1 124)
7 409 5 904
* The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
17. Related parties
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the
group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the year, Harmony shares were
purchased by certain directors as set out below:
Graham Briggs 14 347 shares
Frank Abbott 73 900 shares
Ken Dicks 20 000 shares
18. Audit review
The condensed consolidated financial statements for the year ended 30 June 2013 have been reviewed in accordance with
the 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 opinion is available for inspection at the company's registered office.
Segment report (Rand/Metric)
for the year ended 30 June 2013
Production Capital Kilograms
Revenue Production cost profit/(loss) Mining assets(1) expenditure# produced* Tonnes milled*
30 June 30 June 30 June 30 June 30 June 30 June 30 June
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
R million R million R million R million R million kg t'000
Continuing operations
South Africa
Underground
Kusasalethu 1 213 2 320 1 484 1 439 (271) 881 3 435 3 260 420 415 2 740 5 633 711 1 197
Doornkop 1 615 1 284 1 042 862 573 422 3 378 3 235 285 294 3 631 3 075 1 008 928
Phakisa 1 103 1 064 982 803 121 261 4 547 4 448 337 302 2 434 2 541 512 521
Tshepong 1 887 2 219 1 427 1 275 460 944 3 877 3 693 310 288 4 154 5 287 1 040 1 233
Masimong 1 640 1 349 975 843 665 506 989 980 171 208 3 616 3 220 868 933
Target 1 1 794 1 525 937 855 857 670 2 704 2 644 331 259 3 967 3 630 717 788
Bambanani 932 549 591 597 341 (48) 882 944 119 266 2 083 1 374 211 197
Joel 1 452 1 124 654 565 798 559 290 216 160 84 3 228 2 663 611 557
Unisel 825 672 567 494 258 178 656 364 78 71 1 813 1 593 446 394
Target 3 737 472 508 428 229 44 457 345 145 90 1 626 1 123 323 316
Surface
All other surface operations 1 515 1 428 1 029 899 486 529 264 233 250 162 3 438 3 372 10 082 9 324
Total South Africa 14 713 14 006 10 196 9 060 4 517 4 946 21 479 20 362 2 606 2 439 32 730 33 511 16 529 16 388
International
Hidden Valley 1 189 1 163 1 204 851 (15) 312 3 932 5 595 506 296 2 644 2 762 1 844 1 766
Total international 1 189 1 163 1 204 851 (15) 312 3 932 5 595 506 296 2 644 2 762 1 844 1 766
Total continuing
operations 15 902 15 169 11 400 9 911 4 502 5 258 25 411 25 957 3 112 2 735 35 374 36 273 18 373 18 154
Discontinued operations
Evander 874 1 405 533 767 341 638 992 140 177 1 955 3 369 390 638
Total discontinued
operations 874 1 405 533 767 341 638 992 140 177 1 955 3 369 390 638
Total operations 16 776 16 574 11 933 10 678 4 843 5 896 25 411 26 949 3 252 2 912 37 329 39 642 18 763 18 792
Reconciliation of the
segment information to the
consolidated income
statement and balance sheet
(refer to note 16) (874) (1 405) (533) (767) 7 409 5 904
15 902 15 169 11 400 9 911 32 820 32 853
(1) Mining assets disclosures included in the segment report and the amounts included in the reconciliation of segment information (refer to note 16) were previously not disclosed and have been reviewed for the year ended 30 June 2013 and 30 June 2012.
# Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R537 million (2012: R314 million).
* Production statistics are unaudited.
The segment report for the year ended 30 June 2012 has been audited.
CONTACT DETAILS
Corporate Office
Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue, Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: www.harmony.co.za
Directors
P T Motsepe* Chairman
M Motloba*^ Deputy Chairman
G P Briggs Chief Executive Officer
F Abbott Financial Director
H E Mashego Executive Director
F F T De Buck*^ Lead independent director
J A Chissano*1^, K V Dicks*^, Dr D S Lushaba*^, C Markus*^,
M Msimang*^, K T Nondumo*^, V P Pillay *^, J Wetton*^, A J Wilkens*
* Non-executive
^ Independent
(1)Mozambican
Investor relations team
Henrika Basterfield
Investor Relations Manager
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
Email: henrika@harmony.co.za
Marian van der Walt
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
Email: marian@harmony.co.za
Company Secretary
Riana Bisschoff
Telephone: +27 11 411 6020
Mobile: +27 83 629 4706
Email: riana.bisschoff@harmony.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
ADR Depositary
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company, Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334
Sponsor
JP Morgan Equities Limited
1 Fricker Road, corner Hurlingham Road, Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
Trading Symbols
JSE Limited: HAR
New York Stock Exchange, Inc: HMY
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1
Registration number
1950/038232/06
Incorporated in the Republic of South Africa
ISIN
ZAE000015228
Date: 14/08/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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