Wrap Text
Results for the third quarter and nine months ended 31 March 2015
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
Q3 FY15 RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED 31 MARCH 2015
"We have responded to a lower gold price, first by rationalising our assets and then
restructuring our portfolio – cutting costs, reducing labour numbers and focusing
on mining only safe, profitable ounces. During the next couple of months we will
continue to improve the performance of our assets and restructure Masimong,
Doornkop and Hidden Valley for profitability. We are assessing ways of funding
Golpu and unlocking the true value of each of our assets, which will ensure
shareholder returns in the long term."
Graham Briggs
Chief Executive Officer
8 May 2015
Nine Nine
Quarter Quarter Q-on-Q months months
March December variance ended ended Variance
2015 2014 % March 2015 March 2014 %
Gold produced – kg 7 642 8 459 (10) 25 536 27 518 (7)
– oz 245 697 271 963 (10) 821 001 884 721 (7)
Cash operating costs – R/kg 377 901 357 111 (6) 362 809 324 731 (12)
– US$/oz 1 001 990 (1) 1 004 981 (2)
Gold sold – kg 7 444 8 580 (13) 26 011 27 653 (6)
– oz 239 330 275 851 (13) 836 270 889 061 (6)
Underground grade – g/t 4.75 4.78 (1) 4.79 4.81 –
– R/kg 454 211 437 708 (4) 435 701 391 622 (11)
Total costs and capital – US$/oz 1 203 1 213 1 1 206 1 183 (2)
– R/kg 474 873 455 202 (4) 451 564 408 768 (10)
All-in sustaining costs – US$/oz 1 258 1 262 – 1 250 1 234 (1)
– R/kg 460 569 432 963 6 444 982 431 038 3
Gold price received – US$/oz 1 220 1 200 2 1 232 1 302 (5)
– R million 643 618 4 2 174 2 946 (26)
Production profit – US$ million 55 55 – 194 287 32
– SAc/s (61) (197) 69 (319) (11) >(100)
Basic loss per share – USc/s (5) (18) 72 (28) (1) >(100)
– Rm (262) (496) 47 (1 023) (19) >(100)
Headline loss – US$m (22) (44) 50 (91) (2) >(100)
– SAc/s (60) (114) (47) (236) (4) >(100)
Headline loss per share – USc/s (5) (10) 50 (21) – (100)
Exchange rate – R/US$m 11.74 11.22 5 11.24 10.30 9
Harmony's Integrated Annual Report and the Form 20-F filed with the United States' Securities and Exchange
Commission for the financial year ended 30 June 2014 are available on our website at
http://www.harmony.co.za/investors/reporting/annual-reports.
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 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.
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 S Lushaba*^,
C Markus*^, M Msimang*^, K T Nondumo*^,
V P Pillay *^, J L Wetton*^, A J Wilkens*
* Non-executive
^ Independent
1 Mozambican
Investor relations team
Email: HarmonyIR@harmony.co.za
Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za
Bobo Ndinisa
Investor Relations
Tel: +27 (0)11 411 2137 / 057 904 4023
Mobile: +27 (0)79 783 2051
Email: bobo@harmony.co.za
Company Secretary
Riana Bisschoff
Telephone: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
E-mail: 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 2450
Email: meetfax@linkmarketservices.co.za
ADR2 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
2 ADR: American Depository Receipts
Sponsor
J.P. Morgan Equities South Africa (Pty) Ltd
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
Berlin Stock Exchange: HAM1
Registration number
1950/038232/06
Incorporated in the Republic of South Africa
ISIN
ZAE000015228
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).
In South Africa, Harmony appoints an ore reserve manager at each of its operations who takes responsibility for the compilation and reporting of
mineral resources and mineral reserves at their operations. In Papua New Guinea, competent persons are appointed for the mineral resources and
mineral reserves for specific projects and operations.
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, BSc (Hons), MSc, MBA, Pr. Sci. Nat., who has 19 years' relevant experience and is registered
with the South African Council for Natural Scientific Professions (SACNASP) and a member of the South African Institute of Mining and Metallurgy
(SAIMM).
Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc, who has 26 years' relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM). Mr Job has sufficient experience relevant to the styles of mineralisation and types of deposits under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code").
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 2014 has not changed.
SHAREHOLDER INFORMATION
Issued ordinary share capital at 31 March 2015 436 094 323
Issued ordinary share capital at 31 December 2014 436 094 323
Market capitalisation
At 31 March 2015 (ZARm) 9 219
At 31 March 2015 (US$m) 761
At 31 December 2014 (ZARm) 9 424
At 31 December 2014 (US$m) 815
Harmony ordinary shares and ADR prices
12-month high (1 April 2014 – 31 March 2015)
35.60
for ordinary shares
12-month low (1 April 2014 – 31 March 2015)
17.00
for ordinary shares
12-month high (1 April 2014 – 31 March 2015)
3.34
for ADRs
12-month low (1 April 2014 – 31 March 2015)
1.56
for ADRs
Free float 100%
ADR ratio 1:1
JSE Limited HAR
Range for quarter
R20.47 – R35.50
(2 January – 31 March 2015 closing prices)
Average daily volume for the quarter
1 473 990 shares
(2 January – 31 March 2015)
Range for quarter
R17.00 – R24.15
(1 October – 31 December 2014 closing prices)
Average daily volume for the quarter
2 977 951 shares
(1 October – 31 December 2014)
New York Stock Exchange including other
HMY
US trading platforms
Range for quarter
US$1.69 – US$3.14
(2 January 2015 – 31 March 2015 closing prices)
Average daily volume for the quarter
3 473 101
(2 January – 31 March 2015)
Range for quarter
US$1.56 – US$2.20
(1 October – 31 December 2014 closing prices)
Average daily volume for the quarter
4 492 693
(1 October – 31 December 2014)
Investors' calendar 2015
Q3 FY15 presentation
8 May 2015
(webcast and conference call only)
Q4 FY15 live presentation from Johannesburg 18 August 2015
Q1 FY15 presentation
5 November 2015
(webcast and conference call only)
Annual General Meeting 26 November 2015
CHIEF EXECUTIVE OFFICER'S REVIEW
1. Safety
Following a fatality free December 2014 quarter in
South Africa, it is with regret that I report two fatalities
at our South African operations during the March 2015
quarter. Our sincere condolences go to the families and
friends of Mosoeu Ntsutheleng (contractor team leader at
Kusasalethu) and Michael Chobeng (development team
leader at Masimong).
On 22 February 2015 we had an underground fire at
Kusasalethu. I am grateful to report that all of the 486
underground employees were safely brought to surface.
2. Gold market
During the March 2015 quarter the average US dollar
gold price received increased by 2% to US$1 220/oz
(Dec 14: US$1 200/oz). The increase in the gold price during
the March 2015 quarter combined with the weakening
of the rand against the dollar to R11.74/US$ (Dec 14:
R11.22/US$), resulted in an increase in the rand gold price
received to R460 569/kg (Dec 14: R432 963/kg). We believe
that the gold price will remain at current levels for some time
to come.
3. Operational results
Gold production for the March 2015 quarter was impacted
by slow start-ups after the December 2014 holidays, as
well as safety stoppages. As a result, gold production was
10% (817 kilograms) lower at 7 642 kilograms in the March
2015 quarter compared to the December 2014 quarter
(8 459 kilograms).
Our focus is on ensuring that our mines are safe
and profitable. Target 3 has been closed, we have stopped
the Phakisa decline, the restructuring of Kusasalethu was
completed during the quarter and we continue to monitor
each of our mines closely.
During the March 2015 quarter Kusasalethu showed an
increase in grade and a reduction in costs. Tonnes mined
were less than planned due to a fatal accident and a fire
during the quarter.
A fatal accident early in the quarter and an underground fire
at Masimong impacted negatively on volume. Following two
loss-making quarters, it was decided to scale down ore body
development at Masimong in an effort to restore the mine to
profitability. The plan has already been partially implemented
and will impact on the life of mine - we expect that the life
of mine will be shortened to about 2 years.
Doornkop's performance was disappointing due to grade
and volume constraints. Doornkop posted a net loss in the
last three quarters and we are investigating alternatives to
return the mine to profitability, which includes restructuring.
At Hiddden Valley a revised life of mine plan is being
considered with reduced stripping requirements, which will
enhance cash generation in the short term. Cost reduction
initiatives being pursued at the mine includes revising the
organisational structure. An operational improvement
program has also been launched, with a specific focus on
mining and maintenance discipline.
After recording three very good production quarters,
unexpected low grades and poor ground conditions at
Tshepong resulted in lower production during the March
2015 quarter. The crews had to be moved to mainly ledging
and over-stoping areas. During the quarter new stope faces
were established and the outlook for the June 2015 quarter
on both volume and grade is positive.
4. Financial results
Despite lower gold production, production profit increased by 4% to
R643 million in the March 2015 quarter compared to R618
million in the previous quarter, mainly due to a 10% decrease
in operating costs supported by a 6% increase in the average
gold price received.
Cash operating cost for the March 2015 quarter decreased
by 4% when compared to the previous quarter, as a result
of a decrease in the costs of consumables and labour. The
restructuring at Kusasalethu was completed and the full cost
saving will be realised in the June 2015 quarter. Kusasalethu's
cost for the March 2015 quarter decreased by 8% when
compared to the December 2014 quarter. Total capital
expenditure for the March 2015 quarter decreased by 15%
to R583 million.
Revenue
Revenue decreased by R287 million (8%) to R3 428 million as
a result of the 13% decrease in gold sold to 7 444kg, which
was partially offset by a 6% increase in the rand gold price
received at R460 569/kg in the March 2015 quarter.
Production costs
The decrease in production costs in the March 2015 quarter is
mainly as a result of the gold stock increase of R178 million,
a decrease in consumables of R91 million due to lower
production and a decrease in labour costs of R26 million as
a result of the restructuring of our South African operations
during the quarter.
Other items
Other items included in cost of sales decreased to R63 million
in the March 2015 quarter. Restructuring cost related to
employee termination was largely accounted for in the
December 2014 quarter.
Exploration expenditure
The decrease in exploration expenditure in the March
2015 quarter is due to the capitalisation of the Golpu
feasibility study costs, following the approval of the updated
prefeasibility by the Harmony board in December 2014. The
project has progressed to the final feasibility study stage.
Other expenses – net
The increase to R127 million in expenses in the March 2015
quarter is mainly due to the foreign exchange translation
loss of R118 million recorded on the US$ borrowings. The
rand weakened from US$/R11.57 at 31 December 2014 to
US$/R12.17 at 31 March 2015.
Borrowings
Borrowings decreased by R261 million. The US$300 million
syndicated loan (US$270 million drawn) was refinanced
by a new revolving credit facility of up to US$250 million,
of which US$205 million was committed and utilised at
31 March 2015. R400 million was drawn down on the R1.3
billion Nedbank facility.
5. Employee relations
We live our 5 values – safety, accountability, achievement,
being connected and being honest. Our pro-active
communication campaign is focused on keeping our
employees informed about the state of the mine they work
at as well as the health of Harmony. We engage with all the
unions – whether formally recognised or not.
5.1 Section 189A restructuring processes
The Kusasalethu Section 189A process was concluded in
February 2015.
Action Employees
Transfer to other operations 359
Voluntary retrenchments 223
Compulsory retrenchments 224
Outside contractors replacements 227
Retained to fill vacancies on the mine 195
Medical cases and other 43
Total 1 271
During the June 2015 quarter operational restructuring will
take place at Masimong, Doornkop and Hidden Valley. These
processes will most likely include a Section 189A process.
Labour will be reduced by approximately 400 employees at
Masimong during the June 2015 quarter.
5.2 Preparations for the 2015 wage negotiations
As the current wage agreement concludes at the end of June
2015, preparations for wage negotiations are well underway,
with the primary gold producers (representing close on 80%
of employees in the gold industry) bargaining centrally
under the auspices of the Chamber of Mines. In addition to
centralised negotiations, much emphasis has been placed on
direct engagement with employees and unions during the
past two years and particularly in fostering an understanding
of the economic circumstances of the sector as a whole and
Harmony's mines specifically.
What is clear is that high increases and indeed industrial
action will lead to downscaling of operations and even
closure of vulnerable mines. Job losses would be inevitable.
In engaging with unions in the coming months, we
will be proposing an Economic and Social Compact,
the fundamental principles of which are partnerships,
sustainability and job retention. Rather than simply tabling
and acceding to demands which typically characterises
positional bargaining, we will be seeking to agree a set of
mutually binding principles that spells out the obligations,
rights and responsibilities of the companies and organised
labour. Wages and conditions of service will be only one
aspect of this Compact. Stakeholders will be apprised of
progress as negotiations progress.
6. Mining Charter
On 31 March 2015 the Minister of Mineral Resources (DMR),
Minister Advocate Ngoako Ramatlhodi, announced the
Department of Mineral Resources' assessment of the mining
industry's compliance with the Mining Charter.
Harmony acknowledges the DMR's account of the mining
industry's success in achieving these targets and recognises
the role of the mining industry as a driver of growth and
development in South Africa. There is a difference of opinion,
however, between the mining companies and the DMR in
how some black economic empowerment (BEE) transactions
are recognised. To this end, the DMR and the mining industry
have agreed to jointly seek a ‘declaratory order' from a South
African court to ensure the correct interpretation of the
rules governing the BEE component of the Charter. This is a
proactive and necessary step to promote regulatory certainty
for the mining industry and commenced in April 2015.
Harmony will continue its journey to cement its future in
South Africa – pro-actively participating in transforming the
South African mining industry – committed to identifying
other opportunities to further facilitate HDSA (Historically
disadvantaged South Africans) ownership, transform our
workforce, invest in developing South Africans and create
opportunities for small business entrepreneurs. Harmony's
presence in South Africa is real and lasting and so will our
legacy be.
Harmony believes that its performance in terms of each of
the nine pillars set out in the Mining Charter illustrates that
it does more than just comply. The nine pillars of the Charter
are: reporting, ownership, housing and living conditions,
procurement and enterprise development, employment
equity, human resources development, mine community
development, sustainable development and growth and
beneficiation.
7. Golpu
Work on both the Feasibility Study for stage one and the
Prefeasibility Study for stage two continued during the
quarter. Stage one targets the upper higher value portion of
the ore body. Stage two will encompass the rest of the ore
reserve. Both studies are scheduled to be completed by the
end of calendar year 2015.
The organisation structure for the Wafi-Golpu team has been
completed and recruitment has commenced. Negotiation of
the terms of a Pre Mine Development Agreement (PDMA) is
in progress with the government and is intended to cover
fiscal stability, regulatory stability and a framework for the
mine development contract. Commencement of advanced
exploration is dependent on PDMA progress and board
approval.
8. Conclusion
We have responded to a lower gold price, first by rationalising our assets and then
restructuring our portfolio – cutting costs, reducing labour numbers and focusing
on mining only safe, profitable ounces. During the next couple of months we will
continue to improve the performance of our assets and restructure Masimong,
Doornkop and Hidden Valley for profitability. We are assessing ways of funding
Golpu and unlocking the true value of each of our assets, which will ensure
shareholder returns in the long term.
Graham Briggs
Chief Executive Officer
Q3 FY15
SA RAND RESULTS
FOR THE THIRD QUARTER AND NINE
MONTHS ENDED
31 MARCH 2015
OPERATING RESULTS (RAND/METRIC) (US$/IMPERIAL)
South Africa
Underground production Surface production
Three Total
months Total Total South Hidden Total
ended Kusasalethu Doornkop Phakisa Tshepong Masimong Target 1 Bambanani Joel Unisel Target 3 Underground Phoenix Dumps Kalgold Surface Africa Valley Harmony
Mar-15 197 156 158 211 144 175 55 127 96 – 1 319 1 500 751 346 2 597 3 916 469 4 385
Ore milled – t'000
Dec-14 186 162 142 269 188 203 56 139 111 9 1 465 1 555 666 366 2 587 4 052 384 4 436
Mar-15 929 650 760 869 528 827 748 563 387 – 6 261 204 222 270 696 6 957 685 7 642
Gold produced – kg
Dec-14 775 727 773 1 210 705 1 010 664 629 471 41 7 005 223 218 343 784 7 789 670 8 459
Mar-15 29 868 20 898 24 435 27 939 16 976 26 589 24 049 18 101 12 442 – 201 297 6 559 7 137 8 681 22 377 223 674 22 023 245 697
Gold produced – oz
Dec-14 24 917 23 374 24 852 38 902 22 666 32 472 21 348 20 223 15 143 1 318 225 215 7 170 7 009 11 028 25 207 250 422 21 541 271 963
Mar-15 4.72 4.17 4.81 4.12 3.67 4.73 13.60 4.43 4.03 – 4.75 0.14 0.30 0.78 0.27 1.78 1.46 1.74
Yield – g/tonne
Dec-14 4.17 4.49 5.44 4.50 3.75 4.98 11.86 4.53 4.24 4.56 4.78 0.14 0.33 0.94 0.30 1.92 1.74 1.91
Cash operating Mar-15 453 214 407 286 377 879 438 522 436 333 336 706 227 365 311 538 435 292 – 379 620 340 902 394 122 386 496 375 565 379 214 364 561 377 901
– R/kg
costs Dec-14 590 241 360 688 369 639 327 527 351 210 283 716 252 893 294 693 346 295 386 049 352 329 317 238 376 101 362 942 353 601 352 457 411 216 357 111
Cash operating Mar-15 1 201 1 079 1 001 1 162 1 156 892 602 825 1 153 – 1 006 903 1 044 1 024 995 1 005 966 1 001
– $/oz
costs Dec-14 1 636 1 000 1 025 908 973 786 701 817 960 1 071 977 879 1 042 1 006 980 977 1 140 990
Cash operating Mar-15 2 137 1 697 1 818 1 806 1 600 1 591 3 092 1 381 1 755 – 1 802 46 117 302 101 674 532 659
– R/tonne
costs Dec-14 2 459 1 619 2 012 1 473 1 317 1 412 2 999 1 334 1 469 1 759 1 685 45 123 340 107 678 717 681
Mar-15 976 625 755 864 524 834 743 467 384 – 6 172 194 216 274 684 6 856 588 7 444
Gold sold – Kg
Dec-14 844 716 774 1 211 705 992 665 655 472 40 7 074 221 215 324 760 7 834 746 8 580
Mar-15 31 379 20 094 24 274 27 778 16 847 26 814 23 888 15 014 12 346 – 198 434 6 237 6 945 8 809 21 991 220 425 18 905 239 330
Gold sold – oz
Dec-14 27 135 23 020 24 885 38 934 22 666 31 893 21 380 21 059 15 175 1 286 227 433 7 105 6 912 10 417 24 434 251 867 23 984 275 851
Mar-15 449 192 286 954 347 963 397 885 241 539 383 403 342 479 215 451 177 009 – 2 841 875 89 524 99 852 126 033 315 409 3 157 284 271 190 3 428 474
Revenue (R'000)
Dec-14 368 922 310 710 334 833 523 472 305 679 428 602 288 451 283 735 204 258 17 519 3 066 181 95 610 92 441 139 917 327 968 3 394 149 320 670 3 714 819
Cash operating Mar-15 421 036 264 736 287 188 381 076 230 384 278 456 170 069 175 396 168 458 – 2 376 799 69 544 87 495 104 354 261 393 2 638 192 249 724 2 887 916
(R'000)
costs Dec-14 457 437 262 220 285 731 396 308 247 603 286 553 167 921 185 362 163 105 15 828 2 468 068 70 744 81 990 124 489 277 223 2 745 291 275 515 3 020 806
Inventory Mar-15 22 301 (12 984) (5 512) 405 (366) (1 941) (7 424) (33 009) (1 209) – (39 739) (4 194) (2 922) (307) (7 423) (47 162) (55 513) (102 675)
(R'000)
movement Dec-14 24 957 (5 034) 5 278 1 831 2 797 (2 277) 4 359 11 097 2 143 (321) 44 830 (319) (393) (4 271) (4 983) 39 847 35 755 75 602
Mar-15 443 337 251 752 281 676 381 481 230 018 276 515 162 645 142 387 167 249 – 2 337 060 65 350 84 573 104 047 253 970 2 591 030 194 211 2 785 241
Operating costs (R'000)
Dec-14 482 394 257 186 291 009 398 139 250 400 284 276 172 280 196 459 165 248 15 507 2 512 898 70 425 81 597 120 218 272 240 2 785 138 311 270 3 096 408
Mar-15 5 855 35 202 66 287 16 404 11 521 106 888 179 834 73 064 9 760 – 504 815 24 174 15 279 21 986 61 439 566 254 76 979 643 233
Production profit (R'000)
Dec-14 (113 472) 53 524 43 824 125 333 55 279 144 326 116 171 87 276 39 010 2 012 553 283 25 185 10 844 19 699 55 728 609 011 9 400 618 411
Mar-15 499 2 999 5 646 1 397 981 9 103 15 316 6 223 831 – 42 995 2 058 1 302 1 873 5 233 48 228 6 556 54 784
Production profit ($'000)
Dec-14 (10 112) 4 770 3 905 11 170 4 927 12 862 10 353 7 777 3 476 179 49 307 2 244 967 1 756 4 967 54 274 838 55 112
Capital Mar-15 102 713 58 658 93 945 69 942 42 563 73 715 23 860 41 929 18 591 – 525 916 1 450 1 592 13 519 16 561 542 477 40 685 583 162
(R'000)
expenditure Dec-14 122 185 73 259 127 836 87 070 48 441 69 120 39 338 59 654 31 380 – 658 283 414 2 487 8 770 11 671 669 954 11 814 681 768
Capital Mar-15 8 748 4 996 8 001 5 957 3 625 6 278 2 032 3 571 1 583 – 44 791 123 136 1 151 1 410 46 201 3 465 49 666
($'000)
expenditure Dec-14 10 888 6 528 11 392 7 759 4 317 6 160 3 506 5 316 2 796 – 58 662 37 222 782 1 041 59 703 1 053 60 756
Cash operating Mar-15 563 777 497 529 501 491 519 008 516 945 425 842 259 263 386 012 483 331 – 463 618 348 010 401 293 436 567 399 359 457 190 423 955 454 211
– R/kg
cost and capital Dec-14 747 899 461 457 535 016 399 486 419 921 352 151 312 137 389 533 412 919 386 049 446 303 319 094 387 509 388 510 368 487 438 470 428 849 437 708
Cash operating Mar-15 1 493 1 318 1 328 1 375 1 369 1 128 687 1 022 1 280 – 1 228 922 1 063 1 156 1 058 1 211 1 123 1 203
– $/oz
cost and capital Dec-14 2 073 1 279 1 483 1 107 1 164 976 865 1 080 1 144 1 071 1 237 884 1 074 1 077 1 021 1 215 1 189 1 213
All-in sustaining Mar-15 580 834 506 937 505 086 541 040 543 497 428 593 257 253 365 686 506 655 – 474 925 344 328 405 970 446 887 404 878 467 456 561 306 474 873
– R/kg
costs Dec-14 743 336 470 383 503 210 416 470 443 880 374 820 303 254 376 107 435 600 405 170 454 139 320 538 404 276 414 402 384 243 447 513 535 921 455 202
All-in sustaining Mar-15 1 539 1 343 1 338 1 433 1 440 1 135 681 969 1 342 – 1 258 912 1 075 1 184 1 073 1 238 1 482 1 258
– $/oz
costs Dec-14 2 060 1 304 1 395 1 154 1 230 1 039 841 1 042 1 207 1 123 1 259 889 1 121 1 149 1 065 1 240 1 486 1 262
CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)
Quarter ended Nine months ended
31 March 31 December 31 March 31 March 31 March 30 June
2015 2014 2014 2015 2014 2014
Figures in million Note (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Revenue 3 428 3 715 3 830 11 574 11 919 15 682
Cost of sales 2 (3 444) (3 970) (3 595) (11 735) (11 147) (16 088)
Production costs (2 785) (3 096) (2 906) (9 400) (8 973) (11 888)
Amortisation and depreciation (596) (602) (475) (1 848) (1 617) (2 143)
Impairment of assets – – (29) – (29) (1 439)
Other items (63) (272) (185) (487) (528) (618)
Gross (loss)/profit (16) (255) 235 (161) 772 (406)
Corporate, administration and other
expenditure (90) (83) (109) (284) (319) (430)
Social investment expenditure (20) (15) (8) (59) (67) (88)
Exploration expenditure 4 (39) (95) (90) (219) (344) (458)
(Loss)/profit on sale of property,
plant and equipment (1) 1 – – – 30
Loss on scrapping of property,
plant and equipment 5 – (430) – (430) – –
Other expenses (net) 7 (127) (52) (22) (366) (161) (208)
Operating (loss)/profit (293) (929) 6 (1 519) (119) (1 560)
Profit/(loss) from associates 6 – – 10 – 17 (109)
(Impairment)/profit on disposal of
investments – – – – (7) 7
Net gain on financial instruments 7 8 25 24 138 170
Investment income 61 59 64 171 159 220
Finance cost (71) (67) (59) (202) (176) (277)
(Loss)/profit before taxation (296) (929) 46 (1 526) 12 (1 549)
Taxation 33 73 (15) 142 (59) 279
Normal taxation 3 (4) 24 – (25) (24)
Deferred taxation 30 77 (39) 142 (34) 303
Net (loss)/profit for the period (263) (856) 31 (1 384) (47) (1 270)
Attributable to:
Owners of the parent (263) (856) 31 (1 384) (47) (1 270)
(Loss)/earnings per ordinary share
(cents) 3
Basic (loss)/earnings (61) (197) 7 (319) (11) (293)
Diluted (loss)/earnings (61) (197) 7 (319) (11) (293)
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(RAND)
Quarter ended Nine months ended
31 March 31 December 31 March 31 March 31 March 30 June
2015 2014 2014 2015 2014 2014
Figures in million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Net (loss)/profit for the period (263) (856) 31 (1 384) (47) (1 270)
Other comprehensive income/(loss) for the
period, net of income tax 73 (114) (416) 138 (733) (140)
Items that may be reclassified subsequently
to profit or loss: 73 (114) (416) 138 (733) (109)
Foreign exchange translation 73 (114) (421) 138 (745) (108)
Movements on investments – – 5 – 12 (1)
Items that will not be reclassified to profit
or loss: – – – – – (31)
Actuarial loss recognised during the year – – – – – (38)
Deferred taxation thereon – – – – – 7
Total comprehensive loss for the period (190) (970) (385) (1 246) (780) (1 410)
Attributable to:
Owners of the parent (190) (970) (385) (1 246) (780) (1 410)
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (RAND)
for the nine months ended 31 March 2015 (unaudited)
(Accumulated
Share Other loss)/retained
Figures in million capital reserves earnings Total
Balance – 30 June 2014 28 325 3 539 (822) 31 042
Share-based payments – 156 – 156
Net loss for the period – – (1 384) (1 384)
Other comprehensive income for the period – 138 – 138
Balance – 31 March 2015 28 325 3 833 (2 206) 29 952
Balance – 30 June 2013 28 325 3 442 448 32 215
Share-based payments – 198 – 198
Net loss for the period – – (47) (47)
Other comprehensive loss for the period – (733) – (733)
Balance – 31 March 2014 28 325 2 907 401 31 633
The accompanying notes are an integral part of these condensed consolidated financial statements.
The condensed consolidated financial statements for the nine months ended 31 March 2015 have been prepared by Harmony Gold
Mining Company Limited's corporate reporting team headed by Herman Perry. This process was supervised by the financial director,
Frank Abbott and approved by the board of Harmony Gold Mining Company Limited. These financial statements have not been audited
or independently reviewed.
CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)
At At At At
31 March 31 December 30 June 31 March
2015 2014 2014 2014
Figures in million Note (Unaudited) (Unaudited) (Audited) (Unaudited)
ASSETS
Non-current assets
Property, plant and equipment 5 33 018 32 843 33 069 32 400
Intangible assets 885 883 886 2 194
Restricted cash 45 42 42 40
Restricted investments 2 375 2 366 2 299 2 225
Deferred tax assets 66 71 81 84
Investments in associates 6 – – – 125
Loan to associate 6 124 120 – –
Investments in financial assets 5 5 4 4
Inventories 50 50 50 57
Total non-current assets 36 568 36 380 36 431 37 129
Current assets
Inventories 1 453 1 337 1 534 1 306
Trade and other receivables 854 822 951 900
Income and mining taxes 28 43 110 141
Restricted cash 15 15 15 15
Cash and cash equivalents 701 1 374 1 829 2 008
3 051 3 591 4 439 4 370
Non-current assets and assets of disposal groups classified as
held for sale – – – 51
Total current assets 3 051 3 591 4 439 4 421
Total assets 39 619 39 971 40 870 41 550
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 325 28 325 28 325 28 325
Other reserves 3 833 3 733 3 539 2 907
(Accumulated loss)/retained earnings (2 206) (1 944) (822) 401
Total equity 29 952 30 114 31 042 31 633
Non-current liabilities
Deferred tax liabilities 2 528 2 562 2 680 3 029
Provision for environmental rehabilitation 2 216 2 170 2 098 2 020
Retirement benefit obligation 258 255 247 205
Other non-current liabilities 33 42 95 67
Borrowings 7 2 860 – 2 860 2 843
Total non-current liabilities 7 895 5 029 7 980 8 164
Current liabilities
Borrowings 7 – 3 121 – –
Income and mining taxes 8 – – 3
Trade and other payables 1 764 1 707 1 848 1 750
Total current liabilities 1 772 4 828 1 848 1 753
Total equity and liabilities 39 619 39 971 40 870 41 550
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)
Quarter ended Nine months ended
Year ended
31 March 31 December 31 March 31 March 31 March 30 June
2015 2014 2014 2015 2014 2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Figures in million Restated* Restated#
Cash flow from operating activities
Cash generated/(utilised) by operations 353 (64) 783 1 360 1 814 2 247
Interest and dividends received 21 30 34 76 92 139
Interest paid (14) (23) (39) (60) (89) (121)
Income and mining taxes refunded/(paid) 26 39 – 90 (28) 3
Cash generated/(utilised) by
operating activities 386 (18) 778 1 466 1 789 2 268
Cash flow from investing activities
Decrease/(increase) in restricted cash 12 (4) (3) 12 (3) (6)
Decrease/(increase) in restricted investments 19 – – 20 – (24)
Proceeds on disposal of investments – – – – – 51
Loan to associate – (120) – (120) – –
Other investing activities – – – – (10) –
Net additions to property,
plant and equipment(1) (710) (748) (627) (2 109) (1 962) (2 661)
Cash utilised by investing activities (679) (872) (630) (2 197) (1 975) (2 640)
Cash flow from financing activities
Borrowings raised 400 – – 400 612 612
Borrowings repaid (782) – (462) (782) (468) (468)
Cash (utilised)/generated by
financing activities (382) – (462) (382) 144 144
Foreign currency translation
adjustments 2 (17) (1) (15) (39) (32)
Net decrease in cash and cash equivalents (673) (907) (315) (1 128) (81) (260)
Cash and cash equivalents
– beginning of period 1 374 2 281 2 323 1 829 2 089 2 089
Cash and cash equivalents
– end of period 701 1 374 2 008 701 2 008 1 829
(1) Net additions to property, plant and equipment includes:
Quarter ended Nine months ended Year ended
31 March 31 December 31 March 31 March 31 March 30 June
Figures in million 2015 2014 2014 2015 2014 2014
Capital and capitalised exploration and evaluation
expenditure for Wafi-Golpu 40 – – 54 – 12
Additions resulting from stripping activities
85 65 28 183 112 120
at Hidden Valley
* For the March 2014 quarter: Cash generated by operating activities previously reported as R750 million restated to R778 million. Cash utilised by investing activities
previously reported as (R602 million) restated to (R630 million). This is mainly related to the change in accounting policy for IFRIC 20.
# For the nine months ended 31 March 2014: Cash generated by operating activities previously reported as R1 668 million restated to R1 789 million. Cash utilised by
investing activities previously reported as (R1 854 million) restated to (R1 975 million). This is mainly related to the change in accounting policy for IFRIC 20.
The accompanying notes are an integral part of these condensed consolidated financial statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the nine months ended 31 March 2015 (Rand)
1. Accounting policies
Basis of accounting
The condensed consolidated financial statements for the nine months ended 31 March 2015 have been prepared in accordance
with IAS 34, Interim Financial Reporting, JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, 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 2014, 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.
The following accounting standards, amendments to standards and new interpretations have been adopted with effect from
1 July 2014 and had no impact on the financial results of the group:
IFRSs Annual Improvements 2010 – 2012 Cycle
IAS 32 Amendment – Presentation – Offsetting Financial Assets and Financial Liabilities
IAS 36 Amendment – Impairment of Assets – Recoverable amount disclosures for non-financial assets
IFRIC 21 Levies
2. Cost of sales
Quarter ended Nine months ended
Year ended
31 March 31 December 31 March 31 March 31 March 30 June
2015 2014 2014 2015 2014 2014
Figures in million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Production costs – excluding royalty 2 759 3 074 2 881 9 320 8 871 11 761
Royalty expense 26 22 25 80 102 127
Amortisation and depreciation 596 602 475 1 848 1 617 2 143
Impairment of assets – – 29 – 29 1 439
Rehabilitation expenditure(1) 15 5 17 34 17 8
Care and maintenance cost of
restructured shafts 20 20 16 57 51 66
Employment termination and
restructuring (credit)/costs(2) (3) 182 90 227 234 274
Share-based payments 32 66 62 171 227 270
Other (1) (1) – (2) (1) –
Total cost of sales 3 444 3 970 3 595 11 735 11 147 16 088
(1) Included in the December 2014 quarter is a credit of R11 million as a result of work performed in the Free State and at Deelkraal, resulting in a reduction in
the rehabilitation liability.
(2) The March 2015 quarter total includes a credit for Kusasalethu following the conclusion of the Section 189A process during the quarter. The December 2014
quarter total includes amounts relating to management retrenchments and retrenchment of employees at Target 3, Ernest Oppenheimer Hospital and a
provision for Kusasalethu.
3. (Loss)/earnings per share
Quarter ended Nine months ended
Year ended
31 March 31 December 31 March 31 March 31 March 30 June
2015 2014 2014 2015 2014 2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Weighted average number of shares
(million) 434.4 434.2 433.3 434.2 433.0 433.2
Weighted average number of diluted
shares (million) 439.5 435.2 434.3 437.3 434.4 434.7
Total (loss)/earnings per share
(cents):
Basic (loss)/earnings (61) (197) 7 (319) (11) (293)
Diluted (loss)/earnings (61) (197) 7 (319) (11) (293)
Headline (loss)/earnings (60) (114) 12 (236) (4) 26
Diluted headline (loss)/earnings (60) (114) 12 (236) (4) 26
Figures in million
Reconciliation of headline
(loss)/earnings:
Net (loss)/profit (263) (856) 31 (1 384) (47) (1 270)
Adjusted for:
Impairment/(profit on disposal)
of investments(1) – – – – 7 (7)
Impairment of assets – – 29 – 29 1 439
Taxation effect on impairment
of assets – – (8) – (8) (24)
Loss/(profit) on sale of property,
plant and equipment 1 (1) – – – (30)
Taxation effect of profit on sale
of property, plant and equipment – – – – – 6
Loss on scrapping of property,
plant and equipment – 430 – 430 – –
Taxation effect on loss of scrapping
of property, plant and equipment – (69) – (69) – –
Headline (loss)/earnings (262) (496) 52 (1 023) (19) 114
(1) There is no taxation effect on these items.
4. Exploration expenditure
The Harmony board approved the updated Golpu project prefeasibility study in December 2014. The approval and the progression
to the final feasibility study stage, demonstrates the technical and commercial viability of the Golpu project and as a result Harmony
started capitalising project exploration and evaluation expenditure in respect of the Golpu project in the March 2015 quarter.
5. Loss on scrapping of property, plant and equipment
As reported last quarter, management embarked on a life-of-mine optimisation process in respect of the South African operations
which was finalised at the end of the December 2014 quarter. The optimisation ensured greater focus on mining profitable and
higher grade areas at our operations and therefore resulted in the abandonment of lower grade and unprofitable areas from the
life-of-mine plan for most of the operations.
In the case of Kusasalethu and Masimong, the optimisation led to the abandonment of levels and areas with a carrying value. The
abandonment of these areas resulted in the derecognition of property, plant and equipment as no future economic benefits are
expected from their use or disposal and a loss on scrapping of property, plant and equipment of R214 million on Kusasalethu and
R216 million on Masimong was recorded in the December 2014 quarter.
6. Investment in associate
Harmony holds a 10.38% share in Rand Refinery Proprietary Limited (Rand Refinery). Due to the issues experienced at Rand Refinery
following the implementation of a new Enterprise Resource Planning (ERP) system on 1 April 2013, Harmony provided for its full
share of loss for the inventory discrepancy and recognised a R127 million loss in the June 2014 quarter.
As a precautionary measure following the challenges experienced by the implementation of the software system, Rand Refinery's
shareholders have extended Rand Refinery an irrevocable, subordinated loan facility of up to R1.2 billion. The facility is convertible
to equity after a period of two years. The agreements relating to the facility were signed on 23 July 2014.
During the December 2014 quarter, Rand Refinery Proprietary Limited drew down R1.02 billion on the shareholders loan. Harmony's
portion of the shareholders' loan was R120 million. Interest on the facility is JIBAR plus a margin of 3.5%.
7. Borrowings
During the March 2015 quarter, the US$300 million syndicated revolving credit facility (US$270 million drawn) was refinanced by a
new revolving credit facility of US$250 million. R400 million was drawn down on the R1.3 billion Nedbank revolving credit facility
during the March 2015 quarter.
US$ facility Rand facility
Figures in million US dollar SA rand
Borrowings summary
Facility 250 1 300
Drawn down 205 400
Undrawn committed borrowing facilities 45 900
Maturity February 2018 December 2016
A foreign exchange translation loss of R118 million was recorded in the March 2015 quarter (December 2014 quarter: R69 million)
increasing the borrowings balance and Other expenses (net).
8. Financial risk management activities
Fair value determination
The following table presents the group's assets and liabilities that are measured at fair value by level within the fair value hierarchy:
Level 1: Quoted prices (unadjusted) in active markets for identical assets;
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that
is, as prices) or indirectly (that is, derived from prices);
Level 3: Inputs for the asset that are not based on observable market data (that is, unobservable inputs).
At At At At
31 March 31 December 30 June 31 March
2015 2014 2014 2014
Figures in million (Unaudited) (Unaudited) (Audited) (Unaudited)
Available-for-sale financial assets1
Level 1 – – – 51
Level 2 – – – –
Level 3 5 5 4 4
Fair value through profit or loss2
Level 1 – – – –
Level 2 155 375 798 768
Level 3 – – – –
(1) Level 1 fair values are directly derived from actively traded shares on the JSE.
Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
(2) The majority of the level 2 fair values are directly derived from the Shareholders Weighted Top 40 index (SWIX 40) on the JSE, and are discounted at market
interest rate.
9. Commitments and contingencies
At At At At
31 March 31 December 30 June 31 March
2015 2014 2014 2014
Figures in million (Unaudited) (Unaudited) (Audited) (Unaudited)
Capital expenditure commitments:
Contracts for capital expenditure 196 172 157 245
Authorised by the directors but not contracted for 877 1 646 519 491
1 073 1 818 676 736
This expenditure will be financed from existing resources and, where appropriate, borrowings.
Contingent liabilities
For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended
30 June 2014, available on the group's website (www.harmony.co.za). There were no significant changes in contingencies since
30 June 2014.
10. 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. There were no transactions
with related parties during the nine months ended 31 March 2015.
11. Subsequent events
There were no subsequent events to report.
12. Segment report
The segment report follows on below.
13. Reconciliation of segment information to condensed consolidated income statements and balance sheets
Nine months ended
31 March 31 March
2015 2014
Figures in million (Unaudited) (Unaudited)
The "Reconciliation of segment information to condensed 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 financial statements and segment report:
Reconciliation of production profit to gross (loss)/profit
Total segment revenue 11 574 11 919
Total segment production costs (9 400) (8 973)
Production profit per segment report 2 174 2 946
Depreciation (1 848) (1 617)
Other cost of sales items (487) (557)
Gross (loss)/profit as per income statements1 (161) 772
(1) The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
At At
31 March 31 March
2015 2014
Figures in million (Unaudited) (Unaudited)
Reconciliation of total segment mining assets to consolidated property,
plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets 765 821
Undeveloped property 5 139 5 139
Other non-mining assets 194 133
Wafi-Golpu assets 1 155 971
7 253 7 064
SEGMENT REPORT (RAND/METRIC)
for the nine months ended 31 March 2015 (unaudited)
Production Capital Kilograms
Revenue Production cost (loss)/profit Mining assets expenditure# produced Tonnes milled
31 March 31 March 31 March 31 March 31 March 31 March 31 March
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
R million R million R million R million R million kg t'000
South Africa
Underground
Kusasalethu 1 454 1 466 1 508 1 363 (54) 103 3 583 3 539 349 366 3 038 3 341 673 857
Doornkop 907 930 818 854 89 76 3 304 3 385 187 178 1 996 2 071 454 576
Phakisa 1 068 952 871 786 197 166 4 609 4 622 307 264 2 388 2 213 458 431
Tshepong 1 408 1 305 1 187 1 024 221 281 4 022 3 914 241 218 3 157 3 035 739 700
Masimong 862 903 738 742 124 161 900 1 040 132 122 1 931 2 102 517 514
Target 1 1 296 1 466 872 747 424 719 2 816 2 736 216 214 2 879 3 495 561 565
Bambanani(a)
959 1 040 509 513 450 527 839 844 88 88 2 139 2 419 170 190
Joel 779 756 561 508 218 248 539 379 132 108 1 725 1 716 412 396
Unisel 597 622 510 452 87 170 608 662 79 62 1 335 1 446 321 310
Target 3(b) 222 459 177 407 45 52 540 525 20 99 483 1 102 90 230
Surface
All other surface operations 1 022 961 837 735 185 226 481 469 36 33 2 261 2 215 7 822 7 841
Total South Africa 10 574 10 860 8 588 8 131 1 986 2 729 22 241 22 115 1 787 1 752 23 332 25 155 12 217 12 610
International
Hidden Valley 1 000 1 059 812 842 188 217 3 524 3 221 74 89 2 204 2 363 1 374 1 476
Total international 1 000 1 059 812 842 188 217 3 524 3 221 74 89 2 204 2 363 1 374 1 476
Total operations 11 574 11 919 9 400 8 973 2 174 2 946 25 765 25 336 1 861 1 841 25 536 27 518 13 591 14 086
Reconciliation of the segment
information to the condensed
consolidated financial statements
(refer to note 13) 7 253 7 064
11 574 11 919 9 400 8 973 33 018 32 400
# Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R54 million (2014: Rnil).
(a) Includes Steyn 2 for the March 2014 amounts.
(b) Target 3 was placed on care and maintenance at the beginning of the December 2014 quarter.
DEVELOPMENT RESULTS (METRIC)
Quarter ending March 2015
Channel
Reef Sampled Width Value Gold
Meters Meters (Cm's) (g/t) (Cmg/t)
Tshepong
Basal 236 196 9.88 139.64 1 380
B Reef 173 178 129.31 4.82 624
All Reefs 409 374 66.72 15.29 1 020
Phakisa
Basal 520 540 60.13 21.45 1 290
All Reefs 520 540 60.13 21.45 1 290
Doornkop
Main Reef – 72 66.00 3.41 226
South Reef 466 459 50.00 13.68 684
All Reefs 466 531 52.17 11.92 622
Kusasalethu
VCR Reef 328 292 89.00 6.19 551
All Reefs 328 292 89.00 6.19 551
Total Target
(Incl. Target 1 & Target 3)
Elsburg 103 120 243.00 3.03 737
All Reefs 103 120 243.00 3.03 737
Masimong 5
Basal 351 306 43.37 14.81 642
B Reef 123 147 55.59 14.33 797
All Reefs 474 453 47.34 14.62 692
Unisel
Basal 317 236 181.67 8.15 1 481
Leader 451 340 226.82 6.65 1 509
All Reefs 768 576 208.32 7.19 1 497
Joel
Beatrix 257 276 110.00 11.99 1 319
All Reefs 257 276 110.00 11.99 1 319
Total Harmony
Basal 1 424 1 278 70.86 16.71 1 184
Beatrix 257 276 110.00 11.99 1 319
Leader 451 340 226.82 6.65 1 509
B Reef 296 325 95.97 7.31 702
Elsburg 103 120 243.00 3.03 737
South Reef 466 459 50.00 13.68 684
VCR 328 292 89.00 6.19 551
Main Reef – 72 66.00 3.42 226
All Reefs 3 325 3 162 98.70 10.25 1 011
DEVELOPMENT RESULTS (IMPERIAL)
Quarter ending March 2015
Channel
Reef Sampled Width Value Gold
Feet Feet (Inch) (oz/t) (In.oz/t)
Tshepong
Basal 774 643 4.00 3.96 16
B Reef 566 584 51.00 0.14 7
All Reefs 1 341 1 227 26.00 0.45 12
Phakisa
Basal 1 707 1 772 24.00 0.62 15
All Reefs 1 707 1 772 24.00 0.62 15
Doornkop
Main Reef – 236 26.00 0.10 3
South Reef 1 528 1 506 20.00 0.39 8
All Reefs 1 528 1 742 21.00 0.34 7
Kusasalethu
VCR Reef 1 075 958 35.00 0.18 6
All Reefs 1 075 958 35.00 0.18 6
Total Target
(Incl. Target 1 & Target 3)
Elsburg 337 394 96.00 0.09 8
All Reefs 337 394 96.00 0.09 8
Masimong 5
Basal 1 152 1 004 17.00 0.43 7
B Reef 405 482 22.00 0.42 9
All Reefs 1 556 1 486 19.00 0.42 8
Unisel
Basal 1 039 774 72.00 0.24 17
Leader 1 480 1 115 89.00 0.19 17
All Reefs 2 519 1 890 82.00 0.21 17
Joel
Beatrix 844 906 43.00 0.35 15
All Reefs 844 906 43.00 0.35 15
Total Harmony
Basal 4 672 4 193 28.00 0.49 14
Beatrix 844 906 43.00 0.35 15
Leader 1 480 1 115 89.00 0.19 17
B Reef 971 1 066 38.00 0.21 8
Elsburg 337 394 96.00 0.09 8
South Reef 1 528 1 506 20.00 0.39 8
VCR 1 075 958 35.00 0.18 6
Main Reef – 236 26.00 0.10 3
All Reefs 10 907 10 374 39.00 0.30 12
Date: 08/05/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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