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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): HAR
HAR - 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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