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HAR - Harmony Gold Mining Company - Financial Review For The First Quarter
Release Date: 31/10/2007 08:00:02 Code(s): HARHAR - Harmony Gold Mining Company - Financial Review For The First Quarter
Ending 30 September 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
FINANCIAL REVIEW FOR THE FIRST QUARTER ENDING 30 SEPTEMBER 2007
QUARTERLY HIGHLIGHTS
* Cash operating costs down by 12.5%
* Underground grades improved by 7.1%
* Gold production up by 12.8%
* Internal due diligence of assets complete
FINANCIAL SUMMARY FOR THE FIRST QUARTER ENDING 30 SEPTEMBER 2007
All results exclude Discontinued Operations unless indicated otherwise.
Quarter* Quarter Q-on-Q
June 2007 September 2007 % change
Gold produced - kg 14 126 15 940 12.8
- oz 454 159 512 480 12.8
Cash costs - R/kg 148 993 130 416 12.5
- $/oz 654 572 12.5
Cash operating profit - Rm 34 411 1 108.8
- US$m 5 58 1 060.0
Cash earnings - SA c/s 8 103 1 187.5
- US c/s 1 15 1 400.0
Basic profit/(loss) - SA c/s (34) (120) (252.9)
- US c/s (5) (17) (240.0)
Headline profit/(loss) - SA c/s (72) (21) 70.8
- US c/s (10) (3) 70.0
Fully diluted earnings/(loss)- SA c/s (34) (120) (252.9)
- US c/s (5) (17) (240.0)
Quarter* Financial year
September 2006 2007
Gold produced - kg 16 519 61 879
- oz 531 095 1 989 445
Cash costs - R/kg 96 192 110 964
- $/oz 419 479
Cash operating profit - Rm 791 2 282
- US$m 110 319
Cash earnings - SA c/s 199 574
- US c/s 28 80
Basic profit/(loss) - SA c/s 68 238
- US c/s 9 33
Headline profit/(loss) - SA c/s 66 129
- US c/s 9 18
Fully diluted earnings/(loss)- SA c/s 67 235
- US c/s 9 33
* Restated.
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)
For the quarter ended
30 September 30 June
2007 2007
Continuing operations
Ore milled - t`000 5 392 4 421
Gold produced - kg 15 940 14 126
Gold price received - R/kg 156 176 151 383
Cash operating costs - R/kg 130 416 148 993
Discontinuing operations
Ore milled - t`000 870 887
Gold produced - kg 1 996 2 270
Gold price received - R/kg 153 177 152 600
Cash operating costs - R/kg 165 442 150 342
R million R million
Continuing operations
Revenue 2 489 2 139
Cash operating costs (2 078) (2 105)
Cash operating profit 411 34
Amortisation and depreciation of mining
properties, mine development costs
and mine plant facilities (224) (225)
Corporate expenditure (72) (89)
Reversal of provision for rehabilitation costs - 20
Operating profit/(loss) 115 (260)
Amortisation and depreciation other than mining
properties, mine development costs and mine
plant facilities (12) (11)
Care and maintenance costs of restructured shafts (9) (10)
Share based compensation (10) (3)
Exploration expenditure (44) (61)
Impairment of assets - 123
Loss from associates - (1)
Gain on financial instruments 4 29
(Loss)/profit on sale of property, plant and
equipment (2) 93
Other expenses - net (19) (49)
Provision for former employees` post retirement
benefits - 13
Mark-to-market of listed investments 34 31
Loss on sale of listed investment (459) (37)
Investment income 67 85
Finance cost (133) (216)
Loss before taxation (468) (274)
Taxation (10) 138
Net loss from continuing operation (478) (136)
Discontinued operations
Loss from discontinued operations (92) (243)
Loss from measurement to fair value less cost to sell (7) (274)
(577) (653)
Loss per share from continued operations
attributable to the equity holders of the
Company during the year (cents)
- Basic loss * (120) (34)
- Headline loss * (21) (72)
- Fully diluted loss ** *** (120) (34)
Loss per share from discontinued operations
attributable to the equity holders of the
Company during the year (cents)
- Basic loss * (24) (129)
- Headline loss * (22) (61)
- Fully diluted loss ** *** (24) (129)
Prepared in accordance with International Financial Reporting Standards
* Calculated on weighted average number of shares in issue at quarter end
30 September 2007: 399.5 million (30 June 2007: 398.6 million).
** Calculated on weighted average number of diluted shares in issue at quarter
end 30 September 2007: 402.8 million (30 June 2007: 403.1 million).
*** The effect of the share options is anti-dilutive.
CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)
For the period ended
30 September 30 September
2007 2006
Notes (restated)*
R million R million
Continuing operations
Revenue 2 489 2 380
Production cost (exclusive of
amortisation and depreciation of
mining properties, mine development
costs and mine plant facilities) 2 (2 078) (1 589)
Amortisation and depreciation of
mining properties, mine development
costs and mine plant facilities (224) (233)
Amortisation and depreciation other
than mining properties,
mine development costs and mine
plant facilities (12) (17)
Corporate expenditure (72) (56)
Exploration expenditure (44) (34)
Care and maintenance costs of
restructured shafts (9) (17)
Share-based compensation (10) (11)
Reversal of provision for
rehabilitation costs - (2)
(Loss)/profit on sale of property,
plant and equipment (2) 13
Gain on financial instruments 3 4 19
Other (expenses)/income - net (19) 19
Operating profit 23 472
Loss from associates 4 - (48)
Loss on sale of listed investment 5 (459) -
Mark-to-market of listed investments 34 24
Investment income 67 37
Finance cost (133) (93)
(Loss)/profit before tax (468) 392
Taxation (10) (123)
Net (loss)/profit from continuing
operations (478) 269
Discontinued operations
(Loss)/profit from discontinued
operations 6 (92) 8
Loss from measurement to fair value
less cost to sell 6 (7) -
Net (loss)/profit (577) 277
(Loss)/earnings per share for
profit from continued operations
attributable 7
to the equity holders of the
Company during the year (cents)
- Basic (loss)/earnings (120) 68
- Fully diluted (loss)/earnings (120) 67
(Loss)/earnings per share for
profit from discontinued operations
attributable 7
to the equity holders of the
Company during the year (cents)
- Basic (loss)/earnings (24) 2
- Fully diluted (loss)/earnings (24) 2
The accompanying notes are an integral part of these condensed consolidated
financials statements.
* The comparative figures for 2006 were adjusted to exclude the discontinued
operations.
CONDENSED CONSOLIDATED BALANCE SHEET (Rand)
At At At
30 September 30 June 30 September
2007 2007 2006
Notes (Unaudited) (Audited) (Unaudited)
R million R million R million
ASSETS
Non-current assets
Property, plant and
equipment 24 899 24 398 23 849
Intangible assets 2 308 2 307 2 270
Restricted cash 5 5 286
Investments in
financial assets 1 461 1 387 2 306
Investments in
associates 5 7 7 1 860
Deferred income tax 1 914 2 321 1 643
Trade and other
receivables 100 95 82
30 694 30 520 32 296
Current assets
Inventories 790 742 730
Investments in
financial assets - 2 484 -
Trade and other
receivables 778 918 871
Income and mining
taxes 26 16 25
Restricted cash - 274 -
Cash and cash
equivalents 1 567 711 582
3 161 5 145 2 208
Non-current assets
classified as held
for sale 6 1 279 1 284 -
4 440 6 429 2 208
Total assets 35 134 36 949 34 504
EQUITY AND
LIABILITIES
Share capital and
reserves
Share capital 25 652 25 636 25 521
Other reserves 20 (349) (88)
Accumulated loss (2 258) (1 681) (1 738)
23 414 23 606 23 695
Non-current
liabilities
Borrowings 8 3 842 1 743 2 637
Deferred income tax 4 602 5 000 4 092
Derivative financial
instruments 9 - - 609
Provisions for other
liabilities and
charges 1 231 1 216 1 009
9 675 7 959 8 347
Current liabilities
Trade and other
payables 1 421 1 755 1 448
Borrowings 15 2 855 1 006
Bank overdraft - 220 -
Shareholders for
dividends 7 7 8
1 443 4 837 2 462
Liabilities directly
associated with
non-current
assets classified as
held for sale 6 602 547 -
2 045 5 384 2 462
Total equity and
liabilities 35 134 36 949 34 504
Number of ordinary
shares in issue 400 011 182 399 608 384 397 549 945
Net asset value per
share (cents) 5 853 5 902 5 960
The accompanying notes are an integral part of these condensed consolidated
financials statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD
ENDING 30 SEPTEMBER 2007 (Rand)
Issued share Other Retained
capital reserves earnings Total
R million R million R million R million
Balance as 1 July 2007 25 636 (370) (1 681) 23 585
Issue of share capital 16 - - 16
Currency translation
adjustment and other - 390 - 390
Net earnings - - (577) (577)
Balance as at 30
September 2007 25 652 20 (2 258) 23 414
Balance as 1 July 2006 25 489 (271) (2 015) 23 203
Issue of share capital 32 - - 32
Currency translation
adjustment and other - 183 - 183
Net loss - - 277 277
Balance as at 30
September 2006 25 521 (88) (1 738) 23 695
SUMMARISED CASH FLOW STATEMENT FOR THE PERIOD ENDING 30 SEPTEMBER 2007
(Rand)(unaudited)
Three months Three months Three months
ended ended ended
30 September 30 September 30 June
2007 2006 2007
R million R million R million
Cash flow from operating
activities
Cash generated/(utilised) by
operations 54 471 (248)
Interest and dividends
received 69 39 87
Interest paid (59) (45) (83)
Income and mining taxes paid (12) - (11)
Cash generated/(utilised) by
operating activities 52 465 (255)
Cash flow from investing
activities
Decrease/(increase) in
restricted cash 274 (30) 225
Net proceeds on disposal of
listed investments 1 310 30 166
Acquisition of investment in
associate - - -
Net additions to property,
plant and equipment (833) (562) (784)
Other investing activities (51) - (10)
Cash generated/(utilised) by
investing activities 700 (562) (401)
Cash flow from financing
activities
Long-term loans raised 286 - 651
Ordinary shares issued - net
of expenses 19 32 37
Dividends paid - - (7)
Cash generated by financing
activities 305 32 681
Foreign currency translation
adjustments 20 (4) (7)
Net increase/(decrease) in
cash and equivalents 1 077 (69) 18
Cash and equivalents -
beginning of period 494 651 476
Cash and equivalents - end
of period 1 571 582 494
RECONCILIATION BETWEEN CASH OPERATING PROFIT AND CASH GENERATED/(UTILISED)
BY OPERATIONS FOR THE PERIOD ENDING 30 SEPTEMBER 2007 (Rand)
Three months Three months Three months
ended ended ended
30 September 30 September 30 June
2007 2006 2007
R million R million R million
Cash operating profit 386 891 39
Other cash items per income
statement:
Other income (Including
interest received
and profit on sale of mining
assets) 41 67 138
Employment termination,
restructuring
and care and maintenance costs (12) (20) (14)
Corporate, administration
and other expenditure (77) (59) (87)
Exploration expenditure (55) (41) (70)
Provision for rehabilitation
costs - (2) (1)
Cash flow statement
adjustments:
Cost of close out of hedges - (55) (367)
Profit on sale of mining assets 3 (13) (93)
Interest and dividends received (69) (39) (87)
Other non-cash items (22) (34) (9)
Effect of changes in
operating working capital items:
Receivables 59 (150) 241
Inventories (54) (64) (143)
Accounts payable 276 66 244
Accrued liabilities (422) (76) (39)
Cash generated/(utilised) by
operations 54 471 (248)
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE
PERIOD ENDING 30 SEPTEMBER 2007
1. Basis of accounting
The condensed consolidated interim financial statements for the period ended 30
September 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 2007. These condensed consolidated interim financial
statements are prepared in accordance with IAS 34, Interim Financial Reporting
and should be read in conjunction with the financial statement as at and for
the year ended 30 June 2007.
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 2008.
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 of these financial statements, the following
Standards and Interpretations were in issue but not yet effective:
Title Effective date
New Statement
IFRS 8 Operating segments # Financial year commencing on
or after 1 January 2009
Amendments
IAS 23 (Revised) Borrowings Costs # Financial year commencing on
(Revised March 2007) or after 1 January 2009
New Interpretation
IFRIC 12 - Service Concession Arrangements # Financial year commencing on
or after 1 January 2008
# Not yet assessed
2. Cash operating profit
The format of the income statement is now presented `by nature` as per the
requirements of IFRS 5. The major differences is that `cash operating costs`
and `cash operating profit` are not reflected on the face of the income
statement anymore. `Cash operating costs` are now included under
`Production costs`.
If no change was effected, the cash operating profit would have been
as following:
30 September 30 September
2007 2006
R million R million
Revenue 2 489 2 380
Cash operating costs (2 078) (1 589)
Cash operating profit 411 791
3. Gain/(loss) on financial instruments
The Australian gold hedge book was closed out during the June 2007 quarter,
leaving only the Abelle Limited forward exchange contract that resulted in a
marked-to-market gain of R4.4 million.
4. Investment in associate
Harmony 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 Harmony excepted Gold
Fields Limited`s (GFI) offer of 35 GFI shares for every 100 Western Area
Limited shares held. The remaining investment in the Goldfields shares were
sold during the September 2007 quarter for a loss of R459 million, refer to
note 5.
30 September 30 September
2007 2006
R million R million
5. Loss on sale of listed investments
Loss on sale of investment in Gold Fields
Limited 459 -
459 -
6. 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 of the
Group`s management and the Board of
Directors on 20 April 2007.
Operating cash flows (46) 86
Investing cash flows 18 (418)
Financing cash flows - -
Foreign exchange translation adjustment (3) 6
Total cash flows (31) (326)
(a) Non-current assets classified as held
for sale
Property, plant and equipment 970 -
Restricted cash 5 -
Investment financial assets 67 -
Deferred income tax 47 -
Inventories 127 -
Trade and other receivables 47 -
Income and mining taxes 12
Cash and cash equivalents 4 -
1 279 -
(b) Liabilities directly associated with
non-current assets classified as held for sale
Borrowings 1 -
Deferred income tax 23 -
Provisions for other liabilities and
charges 312 -
Trade and other payables 266 -
602 -
(c) Analysis of the results of
discontinued operations, and the results
recognised on the re-measurement of
assets or disposal group
Revenue 306 410
Expenses (401) (403)
(Loss)/profit from discontinued
operations before tax (95) 7
Taxation 3 1
(Loss)/profit from discontinued
operations after tax (92) 8
Pre-tax loss recognised on the
re-measurement of assets of disposal (10) -
Taxation 3 -
Profit for the year from discontinued
operations (99) 8
7. (Loss)/earnings per share
(Loss)/earnings per share is calculated on the weighted average number of
shares in issue for the quarter ended 30 September 2007: 399.5 million (30 June
2007: 398.6 million; 30 September 2006: 396.8 million)
The fully diluted (loss)/earnings per share is calculated on weighted average
number of diluted shares in issue for the quarter ended 30 September 2007:
402.8 million (30 June 2007: 403.1 million; 30 September 2006: 402.9 million).
The effect of the share options is anti-dilutive.
30 September 30 June 30 September
2007 2007 2006
R million R million R million
Total (loss)/earnings per share
(cents):
- Basic (loss)/earnings (143) (163) 70
- Headline (loss)/earnings (43) (133) 66
- Fully diluted (loss)/earnings (143) (163) 69
Reconciliation of headline
earnings/(loss)
Continued operations
Net (loss)/profit (478) (136) 269
Adjusted for:
Loss/(profit) on sale of
property, plant and equipment 1 (66) (14)
Loss on sale of listed
investment 392 31 -
Reversal of impairment of assets - (117) -
Headline profit/(loss) (84) (288) 255
Discontinued operations
Net (loss)/profit (99) (517) 8
Adjusted for:
Impairment of assets 7 274 -
Headline (loss)/profit (92) (243) 8
30 September 30 September
2007 2006
R million R million
8. Borrowings
Unsecured long-term borrowings
Convertible unsecured fixed rate bonds 1 562 1 482
Rand Merchant Bank term loan facility - 1 000
Africa Vanguard Resources
(Proprietary) Limited 32 32
1 594 2 514
Less: Short term portion - (1 000)
Total unsecured long-term borrowings 1 594 1 514
Secured long-term borrowings
Gold Fields Limited - 5
Westpac Bank Limited 88 -
Africa Vanguard Resources
(Doornkop) (Pty) Limited
(Nedbank Limited) 175 159
ARM Empowerment Trust 1
(Nedbank Limited) - 412
ARM Empowerment Trust 2
(Nedbank Limited) - 552
Auriel Alloys - 1
Nedbank Limited 2 000 -
2 263 1 129
Less: Short term portion (15) (6)
Total unsecured long-term borrowings 2 248 1 123
Total long-term borrowings 3 842 2 637
30 September 30 September
2007 2006
R million R million
9. Derivative financial instruments
Forward exchange commitment
Abelle Limited an indirect subsidiary,
has a forward exchange contract in place
for the purchase of the mining fleet
used on the Hidden Valley project.
The forward exchange contract is
classified as speculative and the
mark-to-market movement, R4.4 million,
is reflected in the income statement.
10. Commitments and Contingencies
Capital expenditure commitments
Contracts for capital expenditure 462 117
Authorised by the directors but not
contracted for 1 870 2 071
2 332 2 188
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
11. Subsequent events
On 25 September 2007, Harmony Gold Mining Company Limited announced that it had
entered into an agreement with Pamodzi Gold Limited (Pamodzi), where Pamodzi
will render management services to ARMgold, with respect to the Orkney shafts.
The commencement date was 25 September 2007 and the termination date is the
earliest of the effective date (where the Orkney assets are sold to Pamodzi) or
the date on which the sale of shares agreement fails to become of any force.
In consideration for rendering the management services, ARMgold shall pay
Pamodzi an amount equal to the aggregate of the net smelter revenues for each
production month, less the aggregate of the business expenses for that
production month plus value-added tax.
12. GEOGRAPHICAL AND SEGMENT INFORMATION QUARTER ENDED 30 SEPTEMBER 2007
SOUTH AFRICA (Rand/metric)
Cash Cash
operating operating Capital
Revenue cost profit/(loss) expenditure
Rm Rm Rm Rm
Quality ounces
Masimong 171 189 (18) 30
Leveraged ounces
Harmony 2 68 71 (3) 10
Merriespruit 1 49 60 (11) 9
Merriespruit 3 57 60 (3) 9
Unisel 98 85 13 9
Brand 3 70 62 8 5
Brand 5 - 4 (4) -
Saaiplaas 3 - -
Surface 46 22 24 5
Other - - - -
Total Freestate 559 553 6 77
Evander operations
Quality ounces
Evander 5 75 66 9 10
Evander 7 103 76 27 35
Evander 8 173 107 66 25
Evander 9 - - - -
Surface - - - 1
Other
Total Evander 351 249 102 71
Randfontein
operations
Quality ounces
Cooke 1 84 65 19 3
Cooke 2 84 59 25 10
Cooke 3 139 90 49 30
Growth projects
Doornkop 71 63 8 71
Surface 42 22 20 13
Other -
Total Randfontein 420 299 121 127
Elandsrand
operations
Growth projects
Elandsrand 273 241 32 84
Surface - -
Other -
Total Elandsrand 273 241 32 84
Kilograms Tons Operating
gold milled Grade Cost
T`000 R/kg
Quality ounces
Masimong 1 096 241 4.55 173 881
Leveraged ounces
Harmony 2 438 126 3.44 162 244
Merriespruit 1 314 94 3.35 192 605
Merriespruit 3 363 107 3.41 164 878
Unisel 628 139 4.53 134 873
Brand 3 445 108 4.13 138 914
Brand 5 - - - -
Saaiplaas 3
Surface 297 1 577 0.19 73 267
Other - - - -
Total Freestate 3 581 2 392 1.50 154 865
Evander operations
Quality ounces
Evander 5 477 82 5.82 137 615
Evander 7 663 106 6.26 114 018
Evander 8 1 104 184 6.00 97 365
Evander 9 - - - -
Surface - - - -
Other
Total Evander 2 244 372 6.03 110 840
Randfontein operations
Quality ounces
Cooke 1 537 82 6.56 120 404
Cooke 2 541 90 6.00 108 687
Cooke 3 890 149 5.96 101 880
Growth projects
Doornkop 454 126 3.61 139 057
Surface 272 513 0.53 80 306
Other
Total Randfontein 2 694 960 2.81 111 032
Elandsrand operations
Growth projects
Elandsrand 1 753 289 6.07 137 345
Surface
Other
Total Elandsrand 1 753 289 6.07 137 345
Cash Cash
operating operating Capital
Revenue cost profit/(loss) expenditure
Rm Rm Rm Rm
Freegold operations
Quality operations
Tshepong 367 245 122 52
Growth projects
Phakisa - - - 62
Leveraged ounces
Bambanani 203 202 1 25
Joel 65 69 (4) 11
Eland - - - -
Kudu/Sable - - - -
West shaft - - - -
Nyala - - - -
St Helena 27 46 (19) 3
AMF 3 - 3 -
Surface 6 5 1 6
Other -
Total Freegold 671 567 104 159
ARMgold operations
Leveraged ounces
Orkney 2 53 58 (5) 6
Orkney 4 41 56 (15) 9
Orkney 7 20 31 (11) 11
Surface - - - -
Other -
Total ARMgold 114 145 (31) 26
Avgold operations
Quality ounces
Target 106 91 15 34
Surface 6 5 1 5
Other -
Total Avgold 112 96 16 39
Kalgold operations
Surface 103 73 30 2
Other -
Total Kalgold 103 73 30 2
Other entities - - - -
Total South Africa 2 603 2 223 380 585
Australia
Mt Magent 104 114 (10) 40
South Kal 87 71 16 51
Papua New Guinea - - - 161
Other entities - - - -
Total Australia 191 185 6 252
Total Harmony 2 794 2 408 386 837
Kilograms Tons Operating
gold milled Grade Cost
T`000 R/kg
Freegold operations
Quality operations
Tshepong 2 345 386 6.08 104 352
Growth projects
Phakisa - - - -
Leveraged ounces
Bambanani 1 275 238 5.35 158 764
Joel 419 81 5.15 163 915
Eland - - - -
Kudu/Sable - - - -
West shaft - - - -
Nyala - - - -
St Helena 176 53 3.30 259 032
AMF 18 13 1.41 25 140
Surface 43 64 0.67 118 844
Other
Total Freegold 4 276 835 5.12 132 688
ARMgold operations
Leveraged ounces
Orkney 2 339 60 5.65 171 302
Orkney 4 267 80 3.33 208 703
Orkney 7 130 58 2.23 240 669
Surface - - - -
Other
Total ARMgold 736 198 3.71 197 094
Avgold operations
Quality ounces
Target 688 150 4.60 131 930
Surface 41 58 0.70 127 341
Other
Total Avgold 729 208 3.51 131 674
Kalgold operations
Surface 663 336 1.97 109 547
Other
Total Kalgold 663 336 1.97 109 547
Other entities - - - -
Total South Africa 16 676 5 590 2.96 130 417
Australia
Mt Magent 738 398 1.85 154 648
South Kal 522 274 1.90 135 186
Papua New Guinea - - - -
Other entities - - - -
Total Australia 1 260 672 1.88 146 588
Total Harmony 17 936 6 262 2.86 134 304
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 53 58 (5) 6
Orkney 4 41 56 (15) 9
Orkney 7 20 31 (11) 11
ARM surface - - - -
Kudu/Sable - - - -
Total SA 114 145 (31) 26
Australia
Mt Magent 104 114 (10) 40
South Kal 87 71 16 51
Total Australia 191 185 6 91
Total Harmony
- discontinued
operations 305 330 (25) 117
Total Harmony
- continuing
operations 2 489 2 078 411 720
Kilograms Tons Operating
gold milled Grade Cost
T`000 R/kg
Included in the above
are the following
discontinued
operations:
South Africa
Orkney 2 339 60 5.65 171 302
Orkney 4 267 80 3.33 208 703
Orkney 7 130 58 2.23 240 669
ARM surface - - - -
Kudu/Sable - - - -
Total SA 736 198 3.71 197 094
Australia
Mt Magent 738 398 1.85 154 648
South Kal 522 274 1.90 135 186
Total Australia 1 260 672 1.88 146 589
Total Harmony
- discontinued
operations 1 996 870 2.29 165 442
Total Harmony
- continuing
operations 15 940 5 392 2.96 130 416
GEOGRAPHICAL AND SEGMENT INFORMATION QUARTER ENDED 30 SEPTEMBER 2006 SOUTH
AFRICA (Rand/metric)
Cash Cash
operating operating Capital
Revenue cost profit/(loss) expenditure
Rm Rm Rm Rm
Freestate operations
Quality ounces
Masimong 189 126 63 25
Leveraged ounces
Harmony 2 41 51 (10) 6
Merriespruit 1 52 40 12 5
Merriespruit 3 53 41 12 5
Unisel 94 55 39 9
Brand 3 56 43 13 2
Brand 5 1 3 (2) -
Saaiplaas 3 - -
Surface 22 16 6 5
Other -
Total Freestate 508 375 133 57
Evander operations
Quality ounces
Evander 5 60 56 4 10
Evander 7 71 58 13 21
Evander 8 136 83 53 20
Evander 9 - - - -
Surface - - - 1
Other
Total Evander 267 197 70 52
Randfontein
operations
Quality ounces
Cooke 1 81 63 18 5
Cooke 2 83 50 33 7
Cooke 3 134 89 45 18
Growth projects
Doornkop 64 52 12 58
Surface 10 3 7 12
Other -
Total Randfontein 372 257 115 100
Elandsrand
operations
Growth projects
Elandsrand 201 176 25 64
Surface - - - 2
Other - - - -
Total Elandsrand 201 176 25 66
Kilograms Tons Operating
gold milled Grade Cost
T`000 R/kg
Freestate operations
Quality ounces
Masimong 1 301 249 5.22 96 209
Leveraged ounces
Harmony 2 288 86 3.34 172 665
Merriespruit 1 362 107 3.39 111 333
Merriespruit 3 367 103 3.56 112 972
Unisel 653 136 4.79 84 321
Brand 3 387 108 3.57 111 866
Brand 5 6 1 - -
Saaiplaas 3
Surface 149 307 0.49 108 229
Other
Total Freestate 3 513 1 097 3.20 106 471
Evander operations
Quality ounces
Evander 5 418 101 4.15 134 868
Evander 7 490 100 4.92 119 180
Evander 8 943 201 4.68 87 722
Evander 9 - - - -
Surface - - - -
Other
Total Evander 1 851 402 4.61 106 696
Randfontein operations
Quality ounces
Cooke 1 565 103 5.51 111 398
Cooke 2 578 95 6.09 86 922
Cooke 3 931 147 6.32 95 878
Growth projects
Doornkop 443 127 3.48 116 686
Surface 71 46 1.54 42 884
Other
Total Randfontein 2 588 518 4.99 99 364
Elandsrand operations
Growth projects
Elandsrand 1 399 271 5.18 125 548
Surface - - - -
Other - - - -
Total Elandsrand 1 399 271 5.18 125 548
Cash Cash
operating operating Capital
Revenue cost profit/(loss) expenditure
Rm Rm Rm Rm
Freegold operations
Quality operations
Tshepong 434 199 235 48
Growth projects
Phakisa - - - 53
Leveraged ounces
Bambanani 210 176 34 25
Joel 109 62 47 5
Eland 6 - 6 -
Kudu/Sable - - - -
West shaft 17 23 (6) 2
Nyala - - - -
St Helena 19 31 (12) 1
AMF - - - -
Surface 6 - 6 2
Other -
Total Freegold 801 491 310 136
ARMgold operations
Leveraged ounces
Orkney 2 49 51 (2) 7
Orkney 4 66 54 12 10
Orkney 7 14 17 (3) 14
Surface - - - -
Other -
Total ARMgold 129 122 7 31
Avgold operations
Quality ounces
Target 164 46 118 22
Surface 1 3 (2) -
Other -
Total Avgold 165 49 116 22
Kalgold operations
Surface 66 44 22 1
Other -
Total Kalgold 66 44 22 1
Other entities -
Total South Africa 2 509 1 711 798 465
Australia
Mt Magent 198 122 76 20
South Kal 83 66 17 19
Papua New Guinea - 73
Other entities - -
Total Australia 281 188 93 112
Total Harmony 2 790 1 899 891 577
Kilograms Tons Operating
gold milled Grade Cost
T`000 R/kg
Freegold operations
Quality operations
Tshepong 3 037 459 6.61 65 656
Growth projects
Phakisa - - - -
Leveraged ounces
Bambanani 1 472 283 5.20 119 870
Joel 760 145 5.26 81 602
Eland 42 4 - -
Kudu/Sable - - - -
West shaft 121 43 2.80 188 825
Nyala - - - -
St Helena 135 46 2.91 231 275
AMF - - - -
Surface 7 42 0.17 65 698
Other
Total Freegold 5 574 1 022 5.45 88 355
ARMgold operations
Leveraged ounces
Orkney 2 345 79 4.38 147 768
Orkney 4 461 108 4.29 116 979
Orkney 7 98 39 2.49 173 280
Surface - - - -
Other
Total ARMgold 904 226 4.00 134 840
Avgold operations
Quality ounces
Target 1 129 210 5.39 40 350
Surface 4 32 0.11 802 588
Other
Total Avgold 1 133 242 4.68 42 741
Kalgold operations
Surface 461 478 0.97 94 882
Other
Total Kalgold 461 478 0.97 94 882
Other entities
Total South Africa 17 423 4 256 4.09 98 199
Australia
Mt Magent 1 438 436 3.30 84 935
South Kal 611 363 1.68 108 384
Papua New Guinea
Other entities
Total Australia 2 049 799 2.56 91 914
Total Harmony 19 472 5 055 3.85 97 538
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 49 51 (2) 7
Orkney 4 66 54 12 10
Orkney 7 14 17 (3) 14
ARM surface - - - -
Kudu/Sable - - - -
Total SA 129 122 7 31
Australia
Mt Magent 198 122 76 20
South Kal 83 66 17 19
Total Australia 281 188 93 39
Total Harmony
- discontinued
operations 410 310 100 70
Total Harmony
- continuing
operations 2 380 1 589 791 507
Kilograms Tons Operating
gold milled Grade Cost
T`000 R/kg
Included in the above
are the following
discontinued
operations:
South Africa
Orkney 2 345 79 4.38 147 768
Orkney 4 461 108 4.29 116 979
Orkney 7 98 39 2.49 173 280
ARM surface - - - -
Kudu/Sable - - - -
Total SA 904 226 4.00 134 840
Australia
Mt Magent 1 438 436 3.30 84 935
South Kal 611 363 1.68 108 384
Total Australia 2 049 799 2.56 91 914
Total Harmony
- discontinued
operations 2 953 1 025 2.88 165 359
Total Harmony
- continuing
operations 16 519 4 030 4.10 96 192
30 October 2007
Sponsor: Merrill Lynch
Date: 31/10/2007 08:00:00 Supplied by www.sharenet.co.za
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