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HAR - Harmony Gold Mining Company Limited - Revised announcement - Harmony

Release Date: 27/08/2007 17:22:04      Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Revised announcement - Harmony      
financial review for the fourth quarter and year-ended 30 June 2007             
Harmony Gold Mining Company Limited                                             
Registration number 1950/038232/06                                              
Incorporated in the Republic of South Africa                                    
ISIN: ZAE000015228                                                              
Trading Symbols                                                                 
JSE Limited                      HAR                                            
New York Stock Exchange, Inc.    HMY                                            
NASDAQ                           HMY                                            
London Stock Exchange plc        HRM                                            
Euronext Paris                   HG                                             
Euronext Brussels                HMY                                            
Berlin Stock Exchange            HAM1                                           
Issuer code                      HAPS                                           
REVISED ANNOUNCEMENT                                                            
Your attention is drawn to the changes in note 14 of the condensed financial    
statements                                                                      
HARMONY FINANCIAL REVIEW FOR THE FOURTH QUARTER AND YEAR-ENDED 30 JUNE 2007     
ANNUAL HIGHLIGHTS                                                               
* Headline earnings of 43 SA cents per share                                    
* Cash earnings per share up by 73%                                             
* First net profit in three years                                               
* Development up by 35%                                                         
FINANCIAL SUMMARY FOR THE QUARTER AND YEAR ENDED 30 JUNE 2007                   
                                             Quarter      Quarter      Q-on-Q   
                                          March 2007    June 2007  % variance   
Gold produced                   - kg           18 010       16 396       (9.0)  
                               - oz          579 032      527 141       (9.0)   
Cash costs                      - R/kg        103 608      149 180      (44.0)  
                               - $/oz            445          655      (47.2)   
Cash operating profit           - Rm              869           39      (95.5)  
                               - US$m            120            6      (95.0)   
Cash earnings                   - SA c/s          218           10      (95.4)  
                               - US c/s           30            1      (96.7)   
Basic profit/(loss)             - SA c/s           62        (163)     (362.9)  
                               - US c/s            9         (23)     (355.6)   
Headline profit/(loss)          - SA c/s           58        (133)     (329.3)  
                               - US c/s            8         (19)     (337.5)   
Fully diluted earnings/(loss)   - SA c/s           61        (163)     (367.2)  
                               - US c/s            8         (23)     (387.5)   
                                             Quarter          Financial year    
                                           June 2006         2006        2007   
Gold produced                   - kg           17 243       74 242      72 602  
                               - oz          554 373    2 386 925   2 334 198   
Cash costs                      - R/kg         93 968       88 629     112 407  
                               - $/oz            452          433         486   
Cash operating profit           - Rm              645        1 459       2 554  
                               - US$m            100          229         353   
Cash earnings                   - SA c/s          163          371         642  
                               - US c/s           25           58          89   
Basic profit/(loss)             - SA c/s         (11)        (133)          86  
                               - US c/s          (2)         (21)          12   
Headline profit/(loss)          - SA c/s         (52)        (269)          43  
                               - US c/s          (8)         (42)           6   
Fully diluted earnings/(loss)   - SA c/s         (11)        (133)          85  
                               - US c/s          (2)         (21)          12   
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)        
                                               For the quarter ended            
30 June 2007     31 March 2007      
Ore milled           -   t`000                      5 308             5 114     
Gold produced        -   kg                        16 396            18 010     
Gold price received  -   R/kg                     151 552           151 833     
Cash operating costs -   R/kg                     149 180           103 608     
                                               R million         R million      
Revenue                                             2 485             2 735     
Cash operating costs                              (2 446)           (1 866)     
Cash operating profit                                  39               869     
Amortisation and depreciation of mining                                         
properties,                                                                     
mine development costs and mine plant                                           
facilities                                          (208)             (308)     
Corporate expenditure                                (87)              (50)     
Reversal of provision/(provision) for                                           
rehabilitation costs                                   14               (3)     
Operating (loss)/profit                             (242)               508     
Amortisation and depreciation other than                                        
mining properties,                                                              
mine development costs and mine plant                                           
facilities                                           (11)              (17)     
Care and maintenance costs of restructured                                      
shafts                                               (14)              (13)     
Share based compensation                              (4)              (14)     
Exploration expenditure                              (70)              (68)     
Impairment of assets                                (268)                 -     
Loss from associates                                  (1)                 -     
Gain/(loss) on financial instruments                   29              (24)     
Profit on sale of property, plant and                                           
equipment                                              93                 4     
Other (expenses)/income - net                        (42)                15     
Provision for former employees` post                                            
retirement benefits                                    13                 -     
Mark-to-market of listed investments                   31                29     
(Loss)/profit on sale of listed investment           (37)                10     
Investment income                                      87                36     
Finance cost                                        (236)             (106)     
(Loss)/profit before taxation                       (672)               360     
Taxation                                               19             (113)     
Net (loss)/profit                                   (653)               247     
(Loss)/earnings per share (cents) *                                             
- Basic (loss)/earnings                             (163)                62     
- Headline (loss)/earnings                          (133)                58     
- Fully diluted (loss)/earnings ** ***              (163)                61     
Dividends per share (cents)                                                     
- Interim                                               -                 -     
- Proposed final                                        -                 -     
Prepared in accordance with International Financial Reporting Standards         
* Calculated on weighted average number of shares in issue at quarter           
end 30 June 2007: 398.6 million (31 March 2007: 398.4 million).                 
** Calculated on weighted average number of diluted shares in issue at          
quarter end 30 June 2007: 403.1 million (31 March 2007: 403.3 million).         
*** The effect of the share options is anti-dilutive.                           
Reconciliation of headline (loss)/profit:                                       
Net (loss)/profit                                   (653)               247     
Adjustments:                                                                    
- Profit on sale of assets                           (66)               (4)     
- Profit on sale of GBS investment                      -               (9)     
- Profit/(Loss) on disposal of investment in                                    
Goldfields                                             31               (1)     
- Impairment of fixed assets - net of tax             157                       
Headline (loss)/profit                              (531)               233     
CONDENSED CONSOLIDATED INCOME STATEMENT                                         
                                                    For the year ended          
30 June 2007  30 June 2006      
                                                                (restated)*     
                                         Notes     R million     R million      
Continuing operations                                                           
Revenue                                                 9 148         6 823     
Production cost (exclusive of                                                   
amortisation and depreciation of                                                
mining properties, mine development costs                                       
and mine plant facilities)                    3       (6 866)       (5 582)     
Amortisation and depreciation of mining                                         
properties,                                                                     
mine development costs and mine plant                                           
facilities                                              (802)         (893)     
Amortisation and depreciation other than                                        
mining properties,                                                              
mine development costs and mine plant                                           
facilities                                               (61)          (57)     
Corporate expenditure                                   (249)         (174)     
Exploration expenditure                                 (194)          (71)     
Employment termination and restructuring                                        
costs                                                       -            72     
Care and maintenance costs of                                                   
restructured shafts                                      (52)         (118)     
Share-based compensation                                 (40)          (95)     
Reversal of provision for rehabilitation                                        
costs                                                      16            20     
Profit on sale of property, plant and                                           
equipment                                                 182            40     
Reversal of impairment of assets                          123           216     
Gain/(loss) on financial instruments          4            41         (516)     
Other expenses - net                                     (38)         (137)     
Operating profit/(loss)                                 1 208         (472)     
Loss from associates                          5          (19)         (105)     
(Loss)/profit on sale of listed investment    6          (35)           306     
Profit on sale of investment in                                                 
subsidiaries                                                -            14     
Profit on sale of investment in associate     5           236             -     
Provision for former employees` post                                            
retirement benefits                                        13           (7)     
Mark-to-market of listed investments                      111            87     
Investment income                                         197           201     
Finance cost                                            (515)         (436)     
Profit/(loss) before tax                                1 196         (412)     
Taxation                                                (249)         (138)     
Net profit/(loss) from continuing                                               
operations                                                947         (550)     
Discontinued operations:                                                        
(Loss)/profit from discontinued operations    7         (332)            25     
Loss from measurement to fair value less                                        
cost to sell                                  7         (274)             -     
Net profit/(loss)                                         341         (525)     
Attributable to:                                                                
Equity holders of the Company                             340         (525)     
Minority interest                                           1             -     
                                                         341         (525)      
Earnings/(loss) per share for profit from                                       
continued operations attributable                                               
to the equity holders of the Company                                            
during the year (cents)                       7                                 
- Basic earnings/(loss)                                   238         (139)     
- Fully diluted earnings/(loss)                           235         (139)     
Earnings/(loss) per share for profit from                                       
discontinued operations attributable                                            
to the equity holders of the Company                                            
during the year (cents)                       7                                 
- Basic (loss)/earnings                                 (152)             6     
- Fully diluted (loss)/earnings                         (151)             6     
Dividends per share (cents)                                                     
- Interim                                                   -             -     
- Proposed final                                            -             -     
* The comparative figures for 2006 were adjusted to exclude the                 
discontinued operations.                                                        
CONDENSED CONSOLIDATED BALANCE SHEET                                            
                                At 30 June     At 31 March      At 30 June      
                                      2007            2007            2006      
                        Notes    R million       R million       R million      
(unaudited)       (audited)     
ASSETS                                                                          
Non-current assets                                                              
Property, plant                                                                 
and equipment                        24 398          24 472          23 318     
Intangible assets                     2 307           2 270           2 270     
Restricted cash                         279             509             255     
Investment financial assets           3 912           4 430           2 255     
Investments in associates   5             6               -           1 909     
Deferred income tax                   2 321           1 548           1 975     
Trade and other receivables              69              42             107     
                                    33 292          33 271          32 089      
Current assets                                                                  
Inventories                             742             722             666     
Trade and other receivables             801           1 180             721     
Income and mining taxes                  16              25              27     
Cash and cash equivalents               711             476             651     
                                     2 270           2 403           2 065      
Non-current assets                                                              
classified as held                                                              
for sale                    7         1 267               -               -     
                                     3 537           2 403           2 065      
Total assets                         36 829          35 674          34 154     
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                        25 636          25 590          25 489     
Other reserves                        (370)            (79)           (271)     
Accumulated loss                    (1 681)         (1 023)         (2 015)     
23 585          24 488          23 203      
Non-current liabilities                                                         
Borrowings                   9        2 794           3 494           2 591     
Deferred income tax                   5 000           4 211           4 275     
Derivative financial                                                            
instruments                 10            -             448             631     
Provisions for other                                                            
liabilities and charges               1 250           1 001             983     
9 044           9 154           8 480      
Current liabilities                                                             
Trade and other payables              1 091           1 038           1 199     
Accrued liabilities                     547             586             259     
Borrowings                            1 804             401           1 006     
Cash and cash equivalents               220               -               -     
Shareholders for dividends                7               7               7     
                                     3 669           2 032           2 471      
Liabilities directly                                                            
associated with non-current                                                     
assets classified as                                                            
held for sale                 7         530               -               -     
Total liabilities                     4 199           2 032           2 471     
Total equity and liabilities         36 829          35 674          34 154     
Number of ordinary shares in                                                    
issue                           399 608 384     398 736 629     394 369 190     
Net asset value per share                                                       
(cents)                               5 902           6 141           5 771     
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED        
30 JUNE 2007 (Rand)                                                             
Issued share         Other      Retained                    
                         capital      reserves      earnings         Total      
                       R million     R million     R million     R million      
Balance as at 1 July                                                            
2006                       25 489         (271)       (2 015)        23 203     
Issue of share capital        147             -             -           147     
Currency translation                                                            
adjustment and other            -          (99)             -          (99)     
Net earnings                    -             -           341           341     
Dividends paid                  -             -           (7)           (7)     
Balance as at 30 June                                                           
2007                       25 636         (370)       (1 681)        23 585     
Balance as at 1 July                                                            
2005                       25 289         (586)       (1 490)        23 219     
Issue of share capital        200             -             -           200     
Currency translation                                                            
adjustment and other            -           315             -           315     
Net loss                        -             -         (525)         (531)     
Balance as at 30 June                                                           
2006                       25 489         (271)       (2 015)        23 203     
SUMMARISED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 (Rand)           
                                     Year        Year      Quarter    Quarter   
                                    ended       ended       ended       ended   
                                  30 June     30 June     30 June    31 March   
2007        2006        2007        2007   
                                R million   R million   R million   R million   
                                             (audited) (unaudited) (unaudited)  
Cash flow from operating activities                                             
Cash generated/(utilised) by                                                    
operations                            1 221         346       (248)       511   
Interest and dividends received         204         224          87        36   
Interest paid                         (226)       (201)        (83)      (48)   
Income and mining taxes paid           (14)        (12)        (11)         3   
Cash generated/(utilised) by                                                    
operating activities                  1 185         357       (255)       502   
Cash flow from investing activities                                             
Decrease/(Increase) in restricted                                               
cash                                   (29)       (203)         225     (215)   
Net proceeds on disposal of listed                                              
investments                             395       2 462         166       199   
Acquisition of investment in                                                    
associate                                 -     (2 012)           -         -   
Net additions to property, plant                                                
and equipment                       (2 549)     (1 667)       (784)     (706)   
Other investing activities             (47)           -        (10)      (52)   
Cash utilised by investing                                                      
activities                          (2 230)     (1 420)       (401)     (774)   
Cash flow from financing activities                                             
Long-term loans raised/(repaid)         802       (393)         651       152   
Ordinary shares issued - net of                                                 
expenses                                138         183          37         2   
Dividends paid                          (7)         (7)         (7)         -   
Cash generated/(utilised) by                                                    
financing activities                    933       (217)         681       154   
Foreign currency translation                                                    
adjustments                            (45)         153         (7)      (15)   
Net (decrease)/increase in cash and                                             
equivalents                           (157)     (1 127)          18     (133)   
Cash and equivalents - beginning of                                             
period                                  651       1 778         476       609   
Cash and equivalents - end of period    494         651         494       476   
RECONCILIATION BETWEEN CASH OPERATING PROFIT AND CASH GENERATED/(UTILISED)      
BY OPERATIONS FOR THE YEAR ENDED 30 JUNE 2007 (Rand)(unaudited)                 
                                        Year      Year   Quarter   Quarter      
ended     ended     ended     ended      
                                     30 June   30 June   30 June  31 March      
                                        2007      2006      2007      2007      
                                   R million R million R million R million      
Cash operating profit                   2 554     1 459        39       869     
Other cash items per income statement:                                          
Other income (Including interest                                                
received and profit                                                             
on sale of mining assets)                 340       203       138        56     
Employment termination, restructuring                                           
and care                                                                        
and maintenance costs                    (66)      (96)      (14)      (13)     
Corporate, administration and other                                             
expenditure                             (259)     (185)      (87)      (50)     
Exploration expenditure                 (239)     (106)      (70)      (68)     
Provision for rehabilitation costs        (3)       (6)       (1)       (1)     
Cash flow statement adjustments:                                                
Cost of close out of hedges             (576)     (344)     (367)      (70)     
Profit on sale of mining assets         (182)      (65)      (93)       (4)     
Interest and dividends received         (204)     (224)      (87)      (36)     
Other non-cash items                    (103)      (87)       (9)      (25)     
Effect of changes in operating working                                          
capital items:                                                                  
Receivables                             (212)      (54)       241     (246)     
Inventories                             (198)      (82)     (143)        21     
Accounts payable                          162      (30)       244     (208)     
Accrued liabilities                       207      (37)      (39)       286     
Cash generated/(utilised) by operations 1 221       346     (248)       511     
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE                
YEAR ENDED 30 JUNE 2007                                                         
1.   Basis of accounting                                                        
The condensed consolidated financial statements for the year ended 30 June 2007 
have been prepared using accounting policies that comply with International     
Financial Reporting Standards (IFRS), which are consistent with the accounting  
policies used in the audited annual financial statements for the year ended 30  
June 2006. These condensed consolidated financial statements are prepared in    
accordance with IAS 34, Interim Financial Reporting and should be read in       
conjuction with the financial statements as at and for the year ended 30 June   
2006.                                                                           
2.   New accounting standards and IFRIC interpretations                         
Certain new accounting standards and IFRIC interpretations have been published  
that are mandatory for accounting periods beginning on or after 1 January 2007. 
These new standards and interpretations have not been early adopted by the      
Group and a reliable estimate of the impact of the adoption thereof for the     
Group cannot yet be determined for all of them, as management are still in the  
process of determining the impact thereof on future financial statements.       
At the date of finalising these financial statements, the following Standards   
and Interpretations were in issue but not yet effective:                        
Title                                      Effective date                       
New Statement                                                                   
IFRS 7 - Financial instruments:          # Financial year commencing            
 Disclosures, and a complementary           on or after 1 January 2007          
Amendment to IAS 1, Presentation                                               
 of Financial Statements                                                        
 - capital Disclosures                                                          
IFRS 8 - Operating segments              # Financial year commencing on         
or after 1 January 2009             
Amendments                                                                      
IFRS 3 - Implementation guidance         # Financial year commencing on         
                                            or after 1 January 2007             
IAS 23 - (Revised) Borrowings Costs      # Financial year commencing on         
 (Revised March 2007)                       or after 1 January 2009             
New Interpretation                                                              
IFRIC Interpretation 10                  # Financial year commencing on         
- Interim financial reporting              or after 1 November 2006            
                                            and impairment                      
IFRIC 11 - IFRS 2 - Group and Treasury   # Financial year commencing on         
 Share Transactions                         or after 1 March 2007               
IFRIC 12 - Service Concession            # Financial year commencing on         
 Arrangements                               or after 1 January 2008             
# Not yet assessed                                                              
3.   Cash operating profit                                                      
The income statement is now presented `by nature` as per the requirements of    
IAS1 - Presentation of financial statements.                                    
The major differences are that `cash operating costs` and `cash operating       
profit` are not reflected on the face of the income statement. If no change was 
effected, the cash operating profit would have been as follows:                 
                                                     30 June       30 June      
                                                        2007          2006      
                                                   R million     R million      
Revenue                                                 9 148         6 823     
Cash operating costs                                  (6 866)       (5 582)     
Cash operating profit                                   2 282         1 241     
4.   Gain/(loss) on financial instruments                                       
A decrease in the volatility of the gold price resulted in a decrease in the    
mark-to-market adjustment on the Australian gold hedge book.                    
5.   Investment in associate                                                    
The Group accounted for its 29.2% stake in Western Areas Limited through its    
subsidiary, ARMgold/Harmony Joint Investment Company Pty Ltd, on the equity     
basis for accounting until 1 December 2006. On this date the Group accepted     
GoldFields Limited`s (GFI) offer of 35 GFI shares for every 100 Western Area    
Limited shares held. This conversion resulted in a profit of R236 million. This 
investment in GFI is now classified as available for sale and included in       
investments in financial assets on the balance sheet. The GFI shares were sold  
subsequent to year-end (refer to note 10).                                      
                                                     30 June       30 June      
2007          2006      
                                                   R million     R million      
6.   (Loss)/Profit on sale of listed investments                                
Loss on sale of investment in San Gold Corporation          -           (1)     
(Loss)/Profit on sale of investment in GoldFields                               
Limited                                                  (35)           307     
                                                        (35)           306      
7.   Non-current assets held for sale and discontinued operations               
The assets and liabilities related to Mt Magnet and South Kal (operations in    
Australia), ARMgold Welkom and Orkney operations (operations in the Free State  
and Northwest areas), and Kudu and Sable (operations in the Free State area),   
which have been presented as held for sale following the approval by the        
Group`s management and the Board of Directors on 20 April 2007.                 
                                                     30 June       30 June      
                                                        2007          2006      
                                                   R million     R million      
Operating cash flows                                    (370)         (100)     
Investing cash flows                                       48           339     
Financing cash flows                                        -         (159)     
Foreign exchange translation adjustment                    23            18     
Total cash flows                                        (299)            99     
(a)   Non-current assets classified as held for sale                            
Property, plant and equipment                             876             -     
Restricted cash                                             5             -     
Investment in financial assets                             64             -     
Deferred income tax                                       103             -     
Inventories                                               121             -     
Trade and other receivables                                84             -     
Income and mining taxes                                    12             -     
Cash and cash equivalents                                   3             -     
                                                       1 267             -      
(b)   Liabilities directly associated with                                      
non-current assets classified as held for sale                                  
Borrowings                                                  1             -     
Deferred income tax                                        82             -     
Provisions for other liabilities and charges              257             -     
Trade and other payables                                  136             -     
Accrued liabilities                                        54             -     
                                                         530             -      
(c)   Analysis of the results of discontinued                                   
operations, and the results recognised                                          
on the remeasurement of assets or disposal group                                
Revenue                                                 1 567         1 216     
Expenses                                              (1 703)       (1 190)     
(Loss)/Profit from discontinued operations before                               
tax                                                     (136)            26     
Taxation                                                (196)           (1)     
(Loss)/Profit from discontinued operations after tax    (332)            25     
Pre-tax loss recognised on the remeasurement to                                 
fair value less cost to sell                            (391)             -     
Tax                                                       117             -     
(Loss)/Profit for the year from discontinued                                    
operations                                              (606)            25     
8.   Earnings/(Loss) per share                                                  
Earnings/(Loss) per share is calculated on weighted average number of shares in 
issue for the year ended 30 June 2007: 397.9 million (30 June 2006:             
392.7 million)                                                                  
The fully diluted earnings/(loss) per share is calculated on weighted average   
number of diluted shares in issue for the year ended 30 June 2007: 402.4        
million (30 June 2006: 392.7 million). The effect of the share options is       
anti-dilutive.                                                                  
                                                     30 June       30 June      
                                                        2007          2006      
Total earnings/(loss) per share (cents):                                        
- Basic earnings/(loss)                                    86         (133)     
- Headline earnings/(loss)                                 43         (269)     
- Fully diluted earnings/(loss)                            85         (133)     
                                                   R million     R million      
Reconciliation of headline earnings/(loss)                                      
Continued operations                                                            
Net profit/(loss)                                         947         (550)     
Adjusted for:                                                                   
Profit on sale of property, plant and equipment         (129)          (65)     
Loss/(Profit) on sale of listed investment                 30         (306)     
Profit on sale of investment in associate               (220)             -     
Profit on sale of subsidiary                                -          (14)     
Reversal of impairment of assets                        (116)         (151)     
Headline profit/(loss)                                    512       (1 086)     
Discontinued operations                                                         
Net (loss)/profit                                       (606)            25     
Adjusted for:                                                                   
Profit on sale of property, plant and equipment             -             -     
Profit on sale of listed investment                       (7)             -     
Impairment of assets                                      273             -     
Headline (loss)/profit                                  (340)            25     
Total headline profit/(loss)                              172       (1 033)     
                                                     30 June       30 June      
                                                        2007          2006      
R million     R million      
9.   Borrowings                                                                 
Unsecured long-term borrowings                                                  
Convertible unsecured fixed rate bonds                  1 541         1 463     
Rand Merchant Bank term loan facility                       -         1 000     
Africa Vanguard Resources (Proprietary) Limited            32            32     
                                                       1 573         2 495      
Less: Short term portion                                    -       (1 000)     
Total unsecured long-term borrowings                    1 573         1 495     
Secured long-term borrowings                                                    
GoldFields Limited                                          -             5     
Westpac Bank Limited                                        2             -     
Africa Vanguard Resources (Nedbank Limited)               170           154     
ARM Empowerment Trust 1 (Nedbank Limited)                 450           402     
ARM Empowerment Trust 2 (Nedbank Limited)                 601           540     
Auriel Alloys                                               -             1     
Performance Equity Swap (Rand Merchant Bank)              752             -     
Bridging finance (Rand Merchant Bank)                     500             -     
Redeemable preference shares (Rand Merchant Bank)         550             -     
                                                       3 025         1 102      
Less: Short term portion                              (1 804)           (6)     
Total secured long-term borrowings                      1 221         1 096     
Total long-term borrowings                              2 794         2 591     
Subsequent to year end the Performance Equity Swap and the Redeemable           
preference shares were settled (refer to note 10).                              
10. Derivative financial instruments                                            
Hedge book                                                                      
During May 2007, Harmony closed out the remainder of the Australian hedge book  
inherited with the acquisition of the Hill 50 mine in Western Australia. 220    
000 ounces were closed out at an average spot rate of AUD808.887 per ounce, for 
a total cost of AUD72.8 million (R418.4 million).                               
On year-end partial settlement was effected with available cash resources,      
leaving AUD14.12 million (R84.7 million) to be settled during July 2007.        
The mark-to-market movement for the year was a positive R35.4 million. The      
mark-to-market value of the hedge book as at 29 June 2007 was a negative        
AUD14.12 million (R84.7 million) (at 30 June 2006: R631 million) and represents 
the residual cash settlement cost associated with the unwinding of the book.    
Forward exchange commitment                                                     
Abele an indirect subsidiary, had entered into a contract in November 2006 for  
the purchase of the mining fleet to be used on the Hidden Valley project. The   
contract is in four different currencies and the estimated value is R241.7      
million. The delivery date for the equipment has been split into two phases     
with the first phase received in April 2007 and the second phase being expected 
in November 2007.                                                               
The underlying cash flows that will be required by the contract will therefore  
be modified in accordance with movements in the foreign exchange rates to which 
the contract is linked. The embedded derivative relating to the exchange rates  
were calculated based on the adjusted price at 30 June 2007 and Price Retail    
Index (PRI) movements since September 2005.                                     
The mark-to-market movement for the embedded derivative was a positive          
R5.4 million.                                                                   
                                                     30 June       30 June      
2007          2006      
                                                   R million     R million      
11. Commitments and Contingencies                                               
Capital expenditure commitments                                                 
Contracts for capital expenditure                         352           153     
Authorised by the directors but not contracted for      1 881         2 678     
                                                       2 233         2 831      
This expenditure will be financed from existing                                 
resources and where appropriate, borrowings.                                    
Contingent liabilities                                                          
Guarantees and suretyships                                 18            18     
Environmental guarantees                                  129           129     
147           147      
12. Subsequent events                                                           
(a) On 24 August 2007 the Group entered into an agreement with RMB Morgan       
Stanley (Pty) Ltd (RMB) to sell 7 348 079 of its GFI ordinary shares at R100    
per ordinary share, resulting in a loss of R35.02 per share. The proceeds were  
used to settle the Randfontein redeemable preference shares issued to RMB on 5  
April 2007.                                                                     
(b) On 24 August 2007 the Group also settled the Performance Equity Swap with   
RMB linked to the balance of its GFI shares (5 747 000 shares) at R100 per      
ordinary share, resulting in a loss of R35.02 per share.                        
13. Audit review                                                                
The condensed consolidated financial statements for the year ended 30 June 2007 
have been reviewed in terms of Rule 3.23 of the Listings Requirements of the    
JSE Limited by the company`s auditors, PricewaterhouseCoopers Inc. Their        
unqualified review opinion is available for inspection at the company`s         
registered office. The results for quarter 3 and 4 and the convenience          
translation of the 2007 financial year presented in this document have not been 
reviewed.                                                                       
14. GEOGRAPHICAL AND SEGMENT INFORMATION YEAR ENDING 30 JUNE 2007 SOUTH AFRICA  
(rand/metric)                                                                   
Cash              Cash                      
                               operating         operating         Capital      
                   Revenue          cost     profit/(loss)     expenditure      
                        Rm            Rm                Rm              Rm      
Freestate operations                                                            
Quality ounces                                                                  
Masimong                681           596                85             109     
Leveraged ounces                                                                
Harmony 2               215           215                 -              35     
Merriespruit 1          234           191                43              25     
Merriespruit 3          201           180                21              25     
Unisel                  368           252               116              39     
Brand 3                 210           200                10              11     
Brand 5                   4            11               (7)               -     
Saaiplaas 3               -             -                 -               -     
Surface                  98            47                51              34     
Other                     -             -                 -               -     
Total Freestate       2 011         1 692               319             278     
Evander operations                                                              
Quality ounces                                                                  
Evander 5               257           208                49              39     
Evander 7               283           278                 5              86     
Evander 8               548           330               218              79     
Evander 9                 -             -                 -               -     
Surface                   -             -                 -               5     
Other                     -             -                 -               -     
Total Evander         1 088           816               272             209     
Randfontein                                                                     
operations                                                                      
Quality ounces                                                                  
Cooke 1                 348           236               112              14     
Cooke 2                 261           251                10              27     
Cooke 3                 417           317               100              98     
Growth projects                                                                 
Doornkop                263           181                82             270     
Surface                  88            42                46              52     
Other                     -             -                 -               -     
Total Randfontein     1 377         1 027               350             461     
Elandsrand                                                                      
operations                                                                      
Growth projects                                                                 
Elandsrand              895           738               157             238     
Surface                   -             -                 -               6     
Other                     -             -                 -               -     
Total Elandsrand        895           738               157             244     
                              Kilograms       Tons               Operating      
                                   gold     milled     Grade          Cost      
                                             T`000                    R/kg      
Freestate operations                                                            
Quality ounces                                                                  
Masimong                           4 602        974      4.72       129 565     
Leveraged ounces                                                                
Harmony 2                          1 439        468      3.07       149 475     
Merriespruit 1                     1 574        432      3.64       121 206     
Merriespruit 3                     1 354        403      3.36       133 066     
Unisel                             2 488        557      4.47       101 299     
Brand 3                            1 419        403      3.52       140 913     
Brand 5                               29         11      2.64       384 477     
Saaiplaas 3                            -          -         -             -     
Surface                              664      2 148      0.31        70 381     
Other                                  -          -         -             -     
Total Freestate                   13 569      5 396      2.51       124 702     
Evander operations                                                              
Quality ounces                                                                  
Evander 5                          1 731        342      5.07       120 298     
Evander 7                          1 899        405      4.69       146 469     
Evander 8                          3 692        764      4.83        89 287     
Evander 9                              -          -         -             -     
Surface                                -          -         -             -     
Other                                  -          -         -             -     
Total Evander                      7 322      1 511      4.85       111 433     
Randfontein operations                                                          
Quality ounces                                                                  
Cooke 1                            2 354        386      6.10       100 439     
Cooke 2                            1 780        349      5.10       141 089     
Cooke 3                            2 841        564      5.04       111 701     
Growth projects                                                                 
Doornkop                           1 784        541      3.30       101 708     
Surface                              590        811      0.73        70 631     
Other                                  -          -         -             -     
Total Randfontein                  9 349      2 651      3.53       109 852     
Elandsrand operations                                                           
Growth projects                                                                 
Elandsrand                         6 056      1 013      5.98       121 872     
Surface                                -          -         -             -     
Other                                  -          -         -             -     
Total Elandsrand                   6 056      1 013      5.98       121 872     
                                    Cash              Cash                      
operating         operating         Capital      
                   Revenue          cost     profit/(loss)     expenditure      
                        Rm            Rm                Rm              Rm      
Freegold operations                                                             
Quality operations                                                              
Tshepong              1 460           807               653             188     
Growth projects                                                                 
Phakisa                   -             -                 -             227     
Leveraged ounces                                                                
Bambanani               869           774                95             120     
Joel                    366           241               125              28     
Eland                    11             -                11               1     
Kudu/Sable                4             1                 3               -     
West shaft               33            57              (24)               5     
Nyala                     -             -                 -               -     
St Helena                98           129              (31)              10     
Surface                  20             2                18               7     
Other                     -             -                 -               -     
Total Freegold        2 861         2 011               850             586     
ARMgold operations                                                              
Leveraged ounces                                                                
Orkney 2                238           190                48              31     
Orkney 3                  -             -                 -               -     
Orkney 4                208           189                19              37     
Orkney 6                 95            86                 9              42     
Surface                   1             -                 1               -     
Other                     -             -                 -               -     
Total ARMgold           542           465                77             110     
Avgold operations                                                               
Quality ounces                                                                  
Target                  657           380               277             121     
Surface                   6             7               (1)              12     
Other                     -             -                 -               -     
Total Avgold            663           387               276             133     
Kalgold operations                                                              
Surface                 257           196                61               3     
Other                     -             -                 -               -     
Total Kalgold           257           196                61               3     
Other entities            -             -                 -               -     
Total South Africa    9 694         7 331             2 362           2 024     
Australia                                                                       
Mt Magent               617           508               110             145     
South Kal               404           321                83              48     
Papua New Guinea          -             -                 -             526     
Other entities            -             -                 -               -     
Total Australia       1 021           829               193             719     
Total Harmony        10 715         7 332             2 361           2 743     
                              Kilograms       Tons               Operating      
gold     milled     Grade          Cost      
                                             T`000                    R/kg      
Freegold operations                                                             
Quality operations                                                              
Tshepong                           9 919      1 654      6.00        81 315     
Growth projects                                                                 
Phakisa                                -          -         -             -     
Leveraged ounces                                                                
Bambanani                          5 900      1 080      5.46       131 209     
Joel                               2 486        457      5.44        96 750     
Eland                                 75         10      7.86             -     
Kudu/Sable                            26         14      1.82             -     
West shaft                           229         84      2.73       248 764     
Nyala                                  -          -         -             -     
St Helena                            663        218      3.04       194 413     
Surface                               94        272      0.35        33 974     
Other                                  -          -         -             -     
Total Freegold                    19 392      3 789      5.12       103 722     
ARMgold operations                                                              
Leveraged ounces                                                                
Orkney 2                           1 626        282      5.76       116 621     
Orkney 3                               -          -         -             -     
Orkney 4                           1 432        360      3.98       132 286     
Orkney 6                             643        217      2.96       133 723     
Surface                                4          1      7.36         4 920     
Other                                  -          -         -             -     
Total ARMgold                      3 705        860      4.31       125 526     
Avgold operations                                                               
Quality ounces                                                                  
Target                             4 430        820      5.41        85 678     
Surface                               41        133      0.31       180 769     
Other                                  -          -         -             -     
Total Avgold                       4 471        953      4.69        86 549     
Kalgold operations                                                              
Surface                            1 746      1 578      1.11       112 227     
Other                                  -          -         -             -     
Total Kalgold                      1 746      1 578      1.11       112 227     
Other entities                         -          -         -             -     
Total South Africa                65 610     17 751      3.70       111 742     
Australia                                                                       
Mt Magent                          4 243      1 700      2.50       119 877     
South Kal                          2 749      1 261      2.18       116 715     
Papua New Guinea                       -          -         -             -     
Other entities                         -          -         -             -     
Total Australia                    6 992      2 961      2.36       118 777     
Total Harmony                     72 602     20 712      3.52       111 757     
                                    Cash              Cash                      
                               operating         operating         Capital      
Revenue          cost     profit/(loss)     expenditure      
                        Rm            Rm                Rm              Rm      
Included in the                                                                 
above                                                                           
are the following                                                               
discontinued                                                                    
operations:                                                                     
South Africa                                                                    
Orkney 2                238           190                48              31     
Orkney 3                  -             -                 -               -     
Orkney 4                208           189                19              37     
Orkney 6                 95            86                 9              42     
ARM surface               1             -                 1               -     
Kudu/Sable                4             1                 3               -     
Total SA                546           466                79             109     
Australia                                                                       
Mt Magent               617           508               110             145     
South Kal               404           321                83              48     
Total Australia       1 021           829               193             193     
Total Harmony                                                                   
- discontinued                                                                  
operations            1 567         1 295               272             302     
Total Harmony                                                                   
- continuing                                                                    
operations            9 148         6 866             2 282           2 441     
                              Kilograms       Tons               Operating      
                                   gold     milled     Grade          Cost      
                                             T`000                    R/kg      
Included in the above                                                           
are the following                                                               
discontinued                                                                    
operations:                                                                     
South Africa                                                                    
Orkney 2                           1 626        282      5.76       116 621     
Orkney 3                               -          -         -             -     
Orkney 4                           1 432        360      3.98       132 286     
Orkney 6                             643        217      2.96       133 723     
ARM surface                            4          1      7.36         4 920     
Kudu/Sable                            26         14      1.82             -     
Total SA                           3 731        874      4.27       124 910     
Australia                                                                       
Mt Magent                          4 243      1 700      2.50       119 877     
South Kal                          2 749      1 261      2.18       116 715     
Total Australia                    6 992      2 961      2.36       118 634     
Total Harmony                                                                   
- discontinued                                                                  
operations                        10 723      3 836      2.80       120 724     
Total Harmony                                                                   
- continuing                                                                    
operations                        61 879     16 876      3.67       110 964     
Geographical and Segment Information Year ending 30 June 2006 South Africa      
(rand/metric)                                                                   
Cash              Cash                      
                               operating         operating         Capital      
                   Revenue          cost     profit/(loss)     expenditure      
                        Rm            Rm                Rm              Rm      
Freestate operations                                                            
Quality ounces                                                                  
Masimong                464           424                40              92     
Leveraged ounces                                                                
Harmony 2               234           213                21              25     
Merriespruit 1          163           153                10              16     
Merriespruit 3          147           154               (7)              11     
Unisel                  243           183                60              25     
Brand 3                 141           148               (7)               6     
Brand 5                   2             6               (4)               -     
Saaiplaas 3               -             -                 -               -     
Surface                  54            41                13              25     
Other                     -             -                 -               -     
Total Freestate       1,448         1,322               126             200     
Evander operations                                                              
Quality ounces                                                                  
Evander 5               205           210               (5)              41     
Evander 7               270           208                62              64     
Evander 8               428           286               142              62     
Evander 9                 -             -                 -               -     
Surface                   -             -                 -               6     
Other                     -             -                 -               -     
Total Evander           903           704               199             173     
Randfontein                                                                     
operations                                                                      
Quality ounces                                                                  
Cooke 1                 273           205                68              24     
Cooke 2                 204           147                57              24     
Cooke 3                 356           263                93              52     
Growth projects                                                                 
Doornkop                148           155               (7)             166     
Surface                  39            32                 7              55     
Other                     -             -                 -               -     
Total Randfontein     1,020           802               218             321     
Elandsrand                                                                      
operations                                                                      
Growth projects                                                                 
Elandsrand              573           569                 4             194     
Surface                   -             -                 -               -     
Other                     -             -                 -               -     
Total Elandsrand        573           569                 4             194     
                              Kilograms       Tons               Operating      
                                   gold     milled     Grade          Cost      
                                             T`000                    R/kg      
Freestate operations                                                            
Quality ounces                                                                  
Masimong                           4,235        925      4.58       100,018     
Leveraged ounces                                                                
Harmony 2                          2,160        542      3.98        98,768     
Merriespruit 1                     1,495        372      4.02       102,404     
Merriespruit 3                     1,359        410      3.32       113,261     
Unisel                             2,269        454      5.00        80,723     
Brand 3                            1,295        367      3.53       114,320     
Brand 5                               15          3      5.80       424,814     
Saaiplaas 3                            -          -         -             -     
Surface                              494        813      0.61        82,734     
Other                                  -          -         -             -     
Total Freestate                   13,322      3,886      3.43        99,260     
Evander operations                                                              
Quality ounces                                                                  
Evander 5                          1,940        408      4.76       108,437     
Evander 7                          2,588        394      6.56        80,277     
Evander 8                          4,008        739      5.43        71,482     
Evander 9                              -          -         -             -     
Surface                                -          -         -             -     
Other                                  -          -         -             -     
Total Evander                      8,536      1,541      5.54        82,448     
Randfontein operations                                                          
Quality ounces                                                                  
Cooke 1                            2,504        445      5.63        82,027     
Cooke 2                            1,861        320      5.82        78,920     
Cooke 3                            3,258        591      5.51        80,712     
Growth projects                                                                 
Doornkop                           1,356        467      2.90       114,145     
Surface                              362        489      0.74        88,182     
Other                                  -          -         -             -     
Total Randfontein                  9,341      2,312      4.04        85,850     
Elandsrand operations                                                           
Growth projects                                                                 
Elandsrand                         5,315        895      5.94       106,981     
Surface                                -          -         -             -     
Other                                  -          -         -             -     
Total Elandsrand                   5,315        895      5.94       106,981     
                                    Cash              Cash                      
operating         operating         Capital      
                   Revenue          cost     profit/(loss)     expenditure      
                        Rm            Rm                Rm              Rm      
Freegold operations                                                             
Quality operations                                                              
Tshepong              1,143           709               434             150     
Growth projects                                                                 
Phakisa                   -             -                 -             147     
Leveraged ounces                                                                
Bambanani               592           554                38              85     
Joel                    199           186                13              23     
Eland                    13             7                 6               -     
Kudu/Sable                6             6                 -               -     
West shaft               83            87               (4)               6     
Nyala                     1             1                 -               -     
St Helena                44            69              (25)               3     
Surface                  34            34                 -               2     
Other                     -             -                 -               -     
Total Freegold        2,115         1,653               462             416     
ARMgold operations                                                              
Leveraged ounces                                                                
Orkney 2                233           189                44              15     
Orkney 3                  -             -                 -               -     
Orkney 4                198           186                12              30     
Orkney 6                  -             -                 -               -     
Surface                   -             -                 -               -     
Other                     -             -                 -               -     
Total ARMgold           431           375                56              45     
Avgold operations                                                               
Quality ounces                                                                  
Target                  517           330               187              61     
Surface                   2             6               (4)               -     
Other                     -             -                 -               -     
Total Avgold            519           336               183              61     
Kalgold operations                                                              
Surface                 250           202                48               2     
Other                     -             -                 -               -     
Total Kalgold           250           202                48               2     
Other entities            -             -                 -               -     
Total South Africa    7,259         5,963             1,296           1,412     
Kilograms       Tons               Operating      
                                   gold     milled     Grade          Cost      
                                             T`000                    R/kg      
Freegold operations                                                             
Quality operations                                                              
Tshepong                          10,429      1,620      6.44        68,011     
Growth projects                                                                 
Phakisa                                -          -         -             -     
Leveraged ounces                                                                
Bambanani                          5,450      1,084      5.03       101,658     
Joel                               1,823        395      4.61       101,846     
Eland                                126         19      6.48        53,747     
Kudu/Sable                            63         12      5.41        90,423     
West shaft                           794        186      4.26       109,403     
Nyala                                  6          2      3.50       251,576     
St Helena                            398        115      3.45       172,762     
Surface                              343        304      1.13        99,994     
Other                                  -          -         -             -     
Total Freegold                    19,432      3,737      5.20        85,047     
ARMgold operations                                                              
Leveraged ounces                                                                
Orkney 2                           2,173        315      6.90        87,001     
Orkney 3                               -          -         -             -     
Orkney 4                           1,832        368      4.98       101,680     
Orkney 6                               -          -         -             -     
Surface                                -          -         -             -     
Other                                  -          -         -             -     
Total ARMgold                      4,005        683      5.86        93,715     
Avgold operations                                                               
Quality ounces                                                                  
Target                             4,672        737      6.34        70,699     
Surface                               23        185      0.13       265,538     
Other                                  -          -         -             -     
Total Avgold                       4,695        922      5.09        71,662     
Kalgold operations                                                              
Surface                            2,397      1,821      1.32        84,252     
Other                                  -          -         -             -     
Total Kalgold                      2,397      1,821      1.32        84,252     
Other entities                         -          -         -             -     
Total South Africa                67,043     15,797      4.24        88,942     
Cash              Cash                      
                               operating         operating         Capital      
                   Revenue          cost     profit/(loss)     expenditure      
                        Rm            Rm                Rm              Rm      
Australia                                                                       
Mt Magent               510           378               132             155     
South Kal               270           239                31              25     
Papua New Guinea          -             -                 -              95     
Other entities            -             -                 -               1     
Total Australia         780           617               163             276     
Total Harmony         8,039         6,580             1,459           1,688     
Included in                                                                     
the above                                                                       
are the following                                                               
discontinued                                                                    
operations:                                                                     
South Africa                                                                    
Orkney 2                233           189                44              15     
Orkney 3                  -             -                 -               -     
Orkney 4                198           186                12              30     
Orkney 6                  -             -                 -               -     
ARM surface               -             -                 -               -     
Kudu/Sable                6             6                 -               -     
Total SA                437           381                56              45     
Australia                                                                       
Mt Magent               510           378               132             155     
South Kal               270           239                31              25     
Total Australia         779           617               164             180     
Total Harmony                                                                   
- discontinued                                                                  
operations            1,217           998               220             225     
Total Harmony                                                                   
- continuing                                                                    
operations            6,822         5,582             1,239           1,462     
                         Kilograms       Tons                    Operating      
                              gold     milled       Grade             Cost      
T`000                         R/kg      
Australia                                                                       
Mt Magent                     4,629      1,739        2.66           81,695     
South Kal                     2,570      1,343        1.91           92,895     
Papua New Guinea                  -          -           -                -     
Other entities                    -          -           -                -     
Total Australia               7,199      3,082        2.34           85,694     
Total Harmony                74,242     18,879        3.93           88,629     
Included in                                                                     
the above                                                                       
are the following                                                               
discontinued                                                                    
operations:                                                                     
South Africa                                                                    
Orkney 2                      2,173        315        6.90           87,001     
Orkney 3                          -          -           -                -     
Orkney 4                      1,832        368        4.98          101,680     
Orkney 6                          -          -           -                -     
ARM surface                       -          -           -                -     
Kudu/Sable                       63         12        5.41           90,423     
Total SA                      4,068        695        5.86           93,664     
Australia                                                                       
Mt Magent                     4,629      1,739        2.66           81,695     
South Kal                     2,570      1,343        1.91           92,895     
Total Australia               7,199      3,082        2.34           85,694     
Total Harmony                                                                   
- discontinued                                                                  
operations                   11,268      3,776        2.98           88,572     
Total Harmony                                                                   
- continuing                                                                    
operations                   62,974     15,102        4.17           88,639     
Date: 27/08/2007 17:22:02 Supplied by www.sharenet.co.za                     
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