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HAR - Harmony - Results for the first quarter ended 30 September 2009

Release Date: 30/10/2009 08:00:03      Code(s): HAR
HAR - Harmony - Results for the first quarter ended 30 September 2009           
HARMONY GOLD MINING COMPANY LIMITED                                             
Incorporated in the Republic of South Africa                                    
Registration Number 1950/038232/06                                              
("Harmony" or "Company")                                                        
JSE Share code: HAR                                                             
NYSE Share code: HMY                                                            
ISIN Code: ZAE 000015228                                                        
Results for the first quarter ended 30 September 2009                           
Key features for the quarter                                                    
- 6% increase in total gold production - higher than guidance provided          
- 6% increase in underground tonnage                                           
 - 10% improvement in average recovery grade                                    
- 5.2% increase in total R/kg costs                                             
 - mainly related to wages and electricity increases                            
- Capital efficiencies                                                          
 - capital expenditure 17% less than previous quarter                           
- On track to delivering annual production target                               
 - increased ounces                                                             
- improved performance at all shafts - except Virginia and Evander             
Financial summary for the first quarter ended 30 September 2009                 
                                        Quarter     Quarter                     
                                           Sept        June         Q-on-Q      
2009        2009     % variance      
Gold produced         - kg                11 615      11 003            5.6     
Gold produced         - oz               373 431     353 752            5.6     
Cash costs            - R/kg             188 362     179 074          (5.2)     
Cash costs            - US$/oz               753         661         (13.9)     
Cash operating profit - R million            552         743         (25.7)     
Cash operating profit - US$ million           71          88         (19.3)     
Gold sold             - kg                11 471      10 829            5.9     
Gold sold             - oz               368 800     348 160            5.9     
Gold price            - R/kg             239 438     245 953         (2.69)     
Exchange rate         - R/US$               7.78        8.42          (7.6)     
HARMONY`S ANNUAL REPORTS                                                        
Harmony`s Annual Report, Notice of Annual General Meeting, its Sustainable      
Development Report and its annual report filed on a Form 20F with the United    
States` Securities and Exchange Commission for the year ended 30 June 2009 are  
available on our website at www.harmony.co.za.                                  
Chief Executive Officer`s Review                                                
Overview                                                                        
The first quarter of FY10 marked the start of our `Four-phase Growth Path`, the 
objective of which is to produce more ounces from those assets we have and to   
acquire further ounces through acquisitions and strategic partnerships.         
Safety                                                                          
We are deeply saddened by the death of eight of our colleagues during the       
quarter and I extend my hearfelt condolences to their families, friends and     
workmates.                                                                      
Those who died were: Phakisa employee Tokelo Maliba, a loader driver;           
Masimong employee Letsema Hlaeli, a team leader; Unisel employees Simiao        
Alexandre Bila, a miner, Thabiso Belekwane and Tseliso Lekeka, both locomotive  
operators; Evander employee Boy Sikobi, a rock drill operator; Elandsrand       
employee Samual Tsabedze, a stope team leader; and Doornkop employee Clement    
Rantjelebane, an engineering foreman.                                           
Safety concerns are being addressed through: management leading by example,     
improved communication and safety awareness campaigns. Our safety strategy      
and initiatives have resulted in improved safety statistics                     
quarter-on-quarter, but we continue to strive for an even safer working         
environment.                                                                    
Gold market                                                                     
Primarily a South African gold producer, we continued to experience the         
negative impact of a strong South African Rand, and a consequent lower average  
Rand gold price received, on revenue. In the quarter under review, the Rand/US  
Dollar exchange rate averaged R7.78/US$ compared with R8.42/US$ in the previous 
quarter. The average Rand gold price received during the period declined by 3%  
to R239 438/kg.                                                                 
It is encouraging, nonetheless, to note the 7% improvement in the US Dollar     
gold price - from US$935/oz at the start of the quarter to US$996/oz at the     
close. This serves to underpin our confidence in gold, particularly during      
times of global economic stress.                                                
None of the fundamentals supporting the metal have changed:                     
overall demand is little affected by increased scrap entering the market;       
central banks continue to exercise prudence in respect of their holdings; and   
supply of newly-mined gold is likely to continue to be constrained by fewer new 
discoveries, as well as the costs and timeframes associated with exploration,   
development and mining, and by the availability of funding for new projects.    
Operational performance                                                         
Total gold production increased by 6% to 11 615kg, reflecting increases in gold 
production from both underground and surface sources and exceeding guidance     
provided in September 2009. While total throughput was 4% lower at 4 484 000t,  
the average yield was 10% higher at 2.59g/t.                                    
Underground gold production was 5% higher at 10 724kg, resulting from a 6% rise 
in throughput from underground to 2 392 000t. The average underground yield was 
slightly lower at 4.48g/t. With the exception of Evander and Virginia, all of   
the underground operations delivered improvements in gold production.           
Particularly noteworthy was Doornkop`s 28% increase in gold production. This    
was the consequence of a 45% increase in yield, due largely to a remarkable     
improvement in development metres achieved, which will ensure that the build-up 
plan on the South Reef Project is achieved.                                     
A 26% increase in surface yield to 0.43g/t more than offset the impact of a 13% 
decrease in surface throughput, resulting in a 10% increase in surface gold     
production to 891kg. The Kalgold open-pit operation recorded a 16% increase in  
gold production on the back of higher throughput due to improved plant          
availability, while the surface retreatment operations, excluding Phoenix,      
showed a 61% improvement in yield and delivered 14% more gold.                  
Financial performance                                                           
Higher gold production helped to overcome the negative impact of a 3% drop in   
the average Rand gold price received to R239 438/kg. Consequently, total        
revenue was 3% higher at R2.7 billion. After accounting for an 11% increase     
in cash operating costs to R2.2 billion - the main drivers of which were        
electricity and labour - cash operating profit was 26% down on the previous     
quarter at R552 million.                                                        
Labour costs increased by R162 million when compared to the previous quarter,   
due to annual wage increases implemented and a once off leave liability         
adjustment of R35 million. Electricity costs increased by R135 million, R75     
million of which was attributable to winter tariffs.                            
As previously advised, capital expenditure is beginning to edge downward as the 
major projects reach advanced stages of development and start to come on        
stream. The September quarter`s capital expenditure was 17% down at R915        
million.                                                                        
Project progress                                                                
Our South African growth projects, Phakisa, Doornkop, Elandsrand and the        
Tshepong decline are working towards contributing lower cost per unit ounces.   
These projects are well on their way towards achieving their targets.           
Despite some setbacks during the commissioning phase, good progress was made at 
Hidden Valley in Papua New Guinea. Completion and commissioning of the conveyor 
is scheduled during the December 2009 quarter, with production expected to ramp 
up to commercial levels during the December 2009 quarter.                       
Exploration                                                                     
Generally, exploration results were pleasing and the drilling programmes are on 
track.                                                                          
Investor Day                                                                    
On 19 August 2009 Harmony held an Investor Day, the purpose of which was to     
share with investors our planning parameters, strategic plan and outlook for    
the next five years. We have spent R1.1 billion on capital development in the   
past year, which is already showing results.                                    
Corporate matters                                                               
It is pleasing to report that all agreements relating to our acquisition of the 
Free State assets from Pamodzi Gold Free State (Pty) Limited (in provisional    
liquidation) (Pamodzi Gold Free State) have been signed, following indications  
of support from the main creditors being the Industrial Development Corporation 
and the Unions, and the sanction of the High Court.                             
The waste rock dump agreement became unconditional on 16 September 2009 and R20 
million in terms of this agreement was paid to Pamodzi Gold Free State. It is   
likely that the remaining agreements will become unconditional towards the end  
of November 2009, which will result in Harmony having to pay the balance of the 
consideration price, being R380 million.                                        
The assets, to be known collectively for now as the President Steyn Shafts, are 
an excellent fit with our existing Free State assets. As reported previously,   
we expect to be able to exploit numerous synergies between the two, and to      
deliver significant profitable ounces into our growth profile as a result.      
Harmony paid its first dividend in five years on 21 September 2009. We believe  
that paying a dividend is a sign of a healthy company and, depending on         
operational performance and revenue, we intend paying regular dividends to      
shareholders.                                                                   
Looking ahead                                                                   
In the short term, we would expect gold production to increase marginally as    
the various restructuring measures we have taken in respect of existing         
operations continue to bed down and as our new projects start to deliver.       
We will have to contend with the likelihood of continuing Rand strength for     
now, and the negative consequences of this on Rand gold receipts.               
Indeed, we may have to consider some restructuring at our lowest- grade,        
highest-cost operations.                                                        
In terms of costs, while we are into summer and free for a couple of quarters   
from higher winter electricity tariffs, the spectre of further extraordinary    
price hikes from power utility Eskom to fund its growth imperative looms large. 
In addition, our wage bill will reflect the impact of the recently agreed       
two-year wage settlement.                                                       
Our weapon in managing the strong Rand and rising costs, must be improved       
productivity - in short, we need to work harder and smarter. Our focus          
remains producing more profitable ounces.                                       
Looking further ahead, we remain bullish on the fundamentals of the gold sector 
in the medium and longer term. This is what encourages us to continue to pursue 
our four-phase growth path:                                                     
- optimising our asset portfolio;                                               
- improving operational efficiency and productivity;                            
- making further acquisitions and entering into other strategic partnerships    
when it makes sense to do so; and                                               
- growing organically.                                                          
Chief Executive Officer                                                         
Graham Briggs                                                                   
Safety and health                                                               
Safety                                                                          
Safety remains a key focus at all of Harmony`s operations. It is with deep      
regret that we report that eight fatalities occurred during the September 2009  
quarter. Falls of ground were the main cause of most of these incidents. Our    
management teams continue to roll out effective behavior-based safety           
programmes to ensure that safety standards are adhered to and that best         
practices are applied at all workplaces.                                        
We are pleased to announce that, during the September quarter, there was an     
improvement in the key safety rates compared to the previous quarter. The Lost  
Time Injury Frequency Rate (LTIFR) improved by 26% compared to the actual       
figure for the previous year (from 9.35 to 6.91) and by 17% quarter-on-quarter  
from 8.35 to 6.91, the best rate ever achieved at Harmony. A single-digit LTIFR 
was achieved for the fourth consecutive quarter. The year to date Reportable    
Injury Frequency Rate (RIFR) improved by 29% compared to the actual figure for  
the previous year (from 4.97 to 3.55) and by 20% from 4.43 in the June 2009     
quarter to 3.55 in the current quarter; again, the best ever achieved RIFR at   
Harmony. Although the Fatality Injury Frequency Rate (FIFR) declined 52%        
compared to the actual figure for the previous year (from 0.21 to 0.32), an     
improvement of 9% was achieved for the quarter under review at 0.32 compared    
with a FIFR of 0.35 in the previous quarter. These improvements in safety rates 
bear testimony to the emphasis placed on safety at Harmony and we are starting  
to see the positive effects of behaviour change among our employees.            
Harmony`s management team is dedicated to ensuring that these safety            
improvements are sustainable and to ensure that through the continued           
implementation of effective behaviour-based safety programmemes at all our      
operations, the safety culture and mindset of safety is maintained throughout   
the company.                                                                    
The following operations achieved outstanding safety results:                   
- Evander 8 Shaft - 2 000 000 fatality free shifts                              
- Doornkop Shaft - 1 000 000 fatality free shifts                               
- Merriespruit 1 Shaft - 750 000 fatality free shifts                           
- Evander Plant - 500 000 fatality free shifts                                  
Health                                                                          
The well-being and healthcare of our employees is another key focus for the     
company. Harmony continues to consolidate the various components of healthcare  
that will contribute to the well-being of our employees and improve             
productivity in the company in the longer term.                                 
In terms of occupational hygiene, noise and dust are the key problem areas.     
Much is being done to curb the impact of these and ensure that our employees    
are protected against them in their workplaces. During the quarter under        
review, implementation of personalised hearing protection devices (HPDs) was    
90% completed. The installation of sound attenuators on mechanical loaders has  
been scheduled and some of the operations have already begun installation of    
the devices.                                                                    
CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)                                  
                                                             Quarter ended      
                                               September              June      
2009              2009      
                                             (Unaudited)       (Unaudited)      
                                    Note       R million         R million      
Continuing operations                                                           
Revenue                                             2 747             2 663     
Cost of sales                           2         (2 604)           (2 863)     
Production cost                                   (2 195)           (1 920)     
Amortisation and depreciation                       (350)             (546)     
Impairment of assets                                    -             (330)     
Employment termination and                                                      
restructuring costs                                     -                 -     
Other items                                          (59)              (67)     
Gross profit/(loss)                                   143             (200)     
Corporate, administration and other                                             
expenditure                                          (88)              (99)     
Exploration expenditure                              (60)              (77)     
Other (expenses)/income - net                        (72)              (74)     
Operating (loss)/profit                              (77)             (450)     
Profit from associates                                 31                49     
Profit on sale of investment in associate               -                 -     
Impairment of investment in associate                   -                 -     
Fair value movement of listed                                                   
investments                                             -                12     
Profit on sale of listed investments                    2                 -     
Impairment of investments                             (2)                 -     
Investment income                                      71               108     
Finance cost                                         (35)              (20)     
(Loss)/profit before taxation                        (10)             (301)     
Taxation                                             (19)               547     
Net (loss)/profit from continuing                                               
operations                                           (29)               246     
Discontinued operations                 3                                       
(Loss)/profit from discontinued                                                 
operations                                              -               (8)     
Net (loss)/profit                                    (29)               238     
(Loss)/earnings per ordinary share                                              
(cents)                                 4                                       
- (Loss)/earnings from continuing                                               
operations                                            (7)                58     
- (Loss)/earnings from discontinued                                             
operations                                              -               (2)     
Total (loss)/earnings per ordinary                                              
share (cents)                                         (7)                56     
Diluted (loss)/earnings per ordinary                                            
share (cents)                           4                                       
- (Loss)/earnings from continuing                                               
operations                                            (7)                58     
- (Loss)/earnings for discontinued                                              
operations                                              -               (2)     
Total diluted (loss)/earnings per                                               
ordinary share (cents)                                (7)                56     
                                                                Year ended      
September1           June      
                                                       2008           2009      
                                                (Unaudited)      (Audited)      
                                                  R million      R million      
Continuing operations                                                           
Revenue                                                2 682         11 496     
Cost of sales                                        (2 377)        (9 836)     
Production cost                                      (1 874)        (7 657)     
Amortisation and depreciation                          (308)        (1 467)     
Impairment of assets                                   (152)          (484)     
Employment termination and restructuring costs          (12)           (39)     
Other items                                             (31)          (189)     
Gross profit/(loss)                                      305          1 660     
Corporate, administration and other expenditure         (91)          (362)     
Exploration expenditure                                 (51)          (289)     
Other (expenses)/income - net                            524            864     
Operating (loss)/profit                                  687          1 873     
Profit from associates                                     1             12     
Profit on sale of investment in associate                  1              1     
Impairment of investment in associate                  (112)          (112)     
Fair value movement of listed investments                  -          (101)     
Profit on sale of listed investments                       -              -     
Impairment of investments                                  -              -     
Investment income                                         77            444     
Finance cost                                            (85)          (212)     
(Loss)/profit before taxation                            569          1 905     
Taxation                                               (237)          (196)     
Net (loss)/profit from continuing operations             332          1 709     
Discontinued operations                                                         
(Loss)/profit from discontinued operations                70          1 218     
Net (loss)/profit                                        402          2 927     
(Loss)/earnings per ordinary share (cents)                                      
- (Loss)/earnings from continuing operations              83            413     
- (Loss)/earnings from discontinued operations            17            294     
Total (loss)/earnings per ordinary share (cents)         100            707     
Diluted (loss)/earnings per ordinary share                                      
(cents)                                                                         
- (Loss)/earnings from continuing operations              82            411     
- (Loss)/earnings for discontinued operations             17            293     
Total diluted (loss)/earnings per ordinary share                                
(cents)                                                   99            704     
The accompanying notes are an integral part of these condensed consolidated     
financials statements.                                                          
1 The comparative figures are re-presented due to Mount Magnet being            
reclassified as part of continuing operations. See note 3 in this regard.       
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)                     
                                                             Quarter ended      
                                               September              June      
2009              2009      
                                             (Unaudited)       (Unaudited)      
                                               R million         R million      
Net (loss)/profit for the period                     (29)               238     
Attributable to:                                                                
Owners of the parent                                 (29)               238     
Non-controlling interest                                -                 -     
Other comprehensive income/(loss) for the                                       
period, net of income tax                              15             (203)     
Foreign exchange translation profit/(loss)             19             (205)     
Mark-to-market of available-for-sale                                            
investments                                           (4)                 2     
Total comprehensive (loss)/income for the                                       
period                                               (14)                35     
Attributable to:                                                                
Owners of the parent                                 (14)                35     
Non-controlling interest                                -                 -     
                                                                Year ended      
                                               September              June      
                                                    2008              2009      
(Unaudited)         (Audited)      
                                               R million         R million      
Net (loss)/profit for the period                      402             2 927     
Attributable to:                                                                
Owners of the parent                                  402             2 927     
Non-controlling interest                                -                 -     
Other comprehensive income/(loss) for the                                       
period, net of income tax                              88             (450)     
Foreign exchange translation profit/(loss)            119             (497)     
Mark-to-market of available-for-sale                                            
investments                                          (31)                47     
Total comprehensive (loss)/income for the                                       
period                                                490             2 477     
Attributable to:                                                                
Owners of the parent                                  490             2 477     
Non-controlling interest                                -                 -     
CONDENSED CONSOLIDATED BALANCE SHEET (Rand)                                     
                                                                        At      
                                                                 September      
                                                                      2009      
(Unaudited)      
                                                      Note       R million      
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment                                        28 457     
Intangible assets                                                     2 218     
Restricted cash                                                         165     
Restricted investments                                                1 668     
Investments in financial assets                                          39     
Investments in associates                                               360     
Trade and other receivables                                              72     
                                                                    32 979      
Current assets                                                                  
Inventories                                                           1 147     
Trade and other receivables                                             838     
Income and mining taxes                                                  45     
Cash and cash equivalents                                             1 094     
                                                                     3 124      
Assets of disposal groups classified as                                         
held-for-sale                                             3               -     
3 124      
Total assets                                                         36 103     
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                                        28 093     
Other reserves                                                          388     
Retained earnings/(accumulated loss)                                    853     
                                                                    29 334      
Non-current liabilities                                                         
Borrowings                                                5             108     
Deferred tax                                                          3 265     
Provision for environmental rehabilitation                            1 564     
Retirement benefit obligation and other                                         
provisions                                                              166     
                                                                     5 103      
Current liabilities                                                             
Trade and other payables                                              1 385     
Income and mining taxes                                                  21     
Borrowings                                                5             260     
                                                                     1 666      
Liabilities of disposal groups classified as                                    
held-for-sale                                                             -     
                                                                     1 666      
Total equity and liabilities                                         36 103     
Number of ordinary shares in issue                              426 024 653     
Net asset value per share (cents)                                     6 886     
                                                        At              At      
                                                      June       September      
2009            2008      
                                                 (Audited)     (Unaudited)      
                                                 R million       R million      
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment                        27 912          27 020     
Intangible assets                                     2 224           2 213     
Restricted cash                                         161             181     
Restricted investments                                1 640           1 512     
Investments in financial assets                          57              48     
Investments in associates                               329              34     
Trade and other receivables                              75             127     
32 398          31 135      
Current assets                                                                  
Inventories                                           1 035             752     
Trade and other receivables                             885             875     
Income and mining taxes                                  45              54     
Cash and cash equivalents                             1 950           1 186     
                                                     3 915           2 867      
Assets of disposal groups classified as                                         
held-for-sale                                             -           1 408     
                                                     3 915           4 275      
Total assets                                         36 313          35 410     
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                        28 091          25 904     
Other reserves                                          339             777     
Retained earnings/(accumulated loss)                  1 095         (1 430)     
29 525          25 251      
Non-current liabilities                                                         
Borrowings                                              110             176     
Deferred tax                                          3 251           3 008     
Provision for environmental rehabilitation            1 530           1 152     
Retirement benefit obligation and other                                         
provisions                                              166             145     
                                                     5 057           4 481      
Current liabilities                                                             
Trade and other payables                              1 460           1 528     
Income and mining taxes                                  19             295     
Borrowings                                              252           3 363     
1 731           5 186      
Liabilities of disposal groups classified as                                    
held-for-sale                                             -             492     
                                                     1 731           5 678      
Total equity and liabilities                         36 313          35 410     
Number of ordinary shares in issue              425 986 836     403 424 148     
Net asset value per share (cents)                     6 931           6 259     
The accompanying notes are an integral part of these condensed consolidated     
financials statements.                                                          
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY  (Unaudited) (Rand)       
                                                      Issued                    
                                                       share         Other      
capital      reserves      
                                          Note     R million     R million      
Balance - 30 June 2009                                 28 091           339     
Issue of share capital                                      2             -     
Deferred share-based payments                               -            34     
Comprehensive income/(loss) for the period                  -            15     
Dividends paid                                6             -             -     
Balance as at 30 September 2009                        28 093           388     
Balance - 30 June 2008                                 25 895           676     
Issue of share capital                                      9             -     
Deferred share-based payments                               -            13     
Comprehensive income for the period                         -            88     
Balance as at 30 September 2008                        25 904           777     
                                                    Retained                    
                                                   earnings/                    
                                                (accumulated                    
loss)         Total      
                                                   R million     R million      
Balance - 30 June 2009                                  1 095        29 525     
Issue of share capital                                      -             2     
Deferred share-based payments                               -            34     
Comprehensive income/(loss) for the period               (29)          (14)     
Dividends paid                                          (213)         (213)     
Balance as at 30 September 2009                           853        29 334     
Balance - 30 June 2008                                (1 832)        24 739     
Issue of share capital                                      -             9     
Deferred share-based payments                               -            13     
Comprehensive income for the period                       402           490     
Balance as at 30 September 2008                       (1 430)        25 251     
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)                               
                                                             Quarter ended      
                                               September              June      
2009              2009      
                                             (Unaudited)       (Unaudited)      
                                               R million         R million      
Cash flow from operating activities                                             
Cash generated by operations                          225               780     
Interest and dividends received                        68               107     
Interest paid                                         (9)              (65)     
Income and mining taxes paid                         (25)             (428)     
Cash generated by operating activities                259               394     
Cash flow from investing activities                                             
(Increase)/decrease in restricted cash                (3)                 6     
Net proceeds on disposal of listed investments         15                 -     
Net additions to property, plant and equipment      (907)             1 093     
Other investing activities                              8                51     
Cash (utilised)/generated by investing                                          
activities                                          (887)             1 150     
Cash flow from financing activities                                             
Long-term loans repaid                                (7)           (2 462)     
Ordinary shares issued - net of expenses                2                10     
Dividends paid                                      (213)                 -     
Cash utilised by financing activities               (218)           (2 452)     
Foreign currency translation adjustments             (10)                18     
Net (decrease)/increase in cash and cash                                        
equivalents                                         (856)             (890)     
Cash and cash equivalents - beginning of                                        
period                                              1 950             2 840     
Cash and cash equivalents - end of period           1 094             1 950     
                                                                Year ended      
September              June      
                                                    2008              2009      
                                             (Unaudited)         (Audited)      
                                               R million         R million      
Cash flow from operating activities                                             
Cash generated by operations                          670             2 813     
Interest and dividends received                        82               457     
Interest paid                                       (112)             (280)     
Income and mining taxes paid                          (1)             (704)     
Cash generated by operating activities                639             2 286     
Cash flow from investing activities                                             
(Increase)/decrease in restricted cash              (103)              (83)     
Net proceeds on disposal of listed investments          -                 -     
Net additions to property, plant and equipment        798               979     
Other investing activities                             10              (79)     
Cash (utilised)/generated by investing                                          
activities                                            705               817     
Cash flow from financing activities                                             
Long-term loans repaid                              (588)           (3 738)     
Ordinary shares issued - net of expenses                8             1 953     
Dividends paid                                          -                 -     
Cash utilised by financing activities               (580)           (1 785)     
Foreign currency translation adjustments                7               217     
Net (decrease)/increase in cash and cash                                        
equivalents                                           770             1 535     
Cash and cash equivalents - beginning of                                        
period                                                415               415     
Cash and cash equivalents - end of period           1 186             1 950     
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                        
FOR THE PERIOD ENDED 30 SEPTEMBER 2009                                          
1. Accounting policies                                                          
Basis of accounting                                                             
The condensed consolidated interim financial statements for the period ended 30 
September 2009 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 2009. 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 statements for the year    
ended 30 June 2009.                                                             
2. Cost of sales                                                                
                                                             Quarter ended      
                                               September              June      
                                                    2009              2009      
(Unaudited)       (Unaudited)      
                                               R million         R million      
Production costs                                    2 195             1 920     
Amortisation and depreciation                         350               546     
Impairment of assets                                    -               330     
Provision for rehabilitation costs                      4                13     
Care and maintenance cost of restructured                                       
shafts                                                 21                15     
Employment termination and restructuring costs          -                 -     
Share-based compensation                               34                38     
Provision for post retirement benefits                  -                 1     
Total cost of sales                                 2 604             2 863     
Year ended      
                                                 September1           June      
                                                       2008           2009      
                                                (Unaudited)      (Audited)      
R million      R million      
Production costs                                       1 874          7 657     
Amortisation and depreciation                            308          1 467     
Impairment of assets                                     152            484     
Provision for rehabilitation costs                         6             21     
Care and maintenance cost of restructured shafts          12             53     
Employment termination and restructuring costs            12             39     
Share-based compensation                                  13            113     
Provision for post retirement benefits                     -              2     
Total cost of sales                                    2 377          9 836     
1 The comparative figures are re-presented due to Mount Magnet being            
reclassified as part of continuing operations. See note 3 in this regard.       
3. Disposal groups classified as held-for-sale and discontinued operations      
Following approval by the Board of Directors in April 2007, the assets and      
liabilities related to Mount Magnet (operations in Australia) were classified   
as held-for-sale. This operation also met the criteria to be classified as      
discontinued operations in terms of IFRS 5. During the June 2009 quarter, it    
was decided that further drilling at the site to define the orebody would       
enhance the selling potential of the operation. As a result, the operation no   
longer met the requirements of IFRS 5 to be classified as held-for-sale, and    
was therefore reclassified as continuing operations again. Consequently, the    
income statements and earnings per share amounts for all comparative periods    
have been represented taking this change into account.                          
4. (Loss)/earnings per ordinary share                                           
(Loss)/earnings per ordinary share is calculated on the weighted average number 
of ordinary shares in issue for the quarter ended 30 September 2009: 425.9      
million (30 June 2009: 425.7 million, 30 September 2008: 403.1 million) and for 
the year ended 30 June 2009: 414.1 million.                                     
The fully diluted (loss)/earnings per ordinary share is calculated on weighted  
average number of diluted ordinary shares in issue for the quarter ended 30     
September 2009: 427.2 million (30 June 2009: 427.5 million, 30 September 2008:  
404.6 million) and for the year ended 30 June 2009: 416.0 million.              
Quarter ended      
                                               September              June      
                                                    2009              2009      
                                             (Unaudited)       (Unaudited)      
Total (loss)/earnings per ordinary share (cents):                               
Basic (loss)/earnings                                 (7)                56     
Fully diluted (loss)/earnings                         (7)                56     
Headline (loss)/earnings                             (12)               107     
- from continuing operations                         (12)               107     
- from discontinued operations                          -                 -     
                                               R million         R million      
Reconciliation of headline (loss)/earnings:                                     
Continuing operations                                                           
Net (loss)/profit                                    (29)               246     
Adjusted for (net of tax):                                                      
Profit on sale of property, plant and equipment       (1)              (83)     
Profit on sale of listed investments                  (1)                 -     
Fair value movement of listed investments               -               (9)     
Foreign exchange gain reclassified from equity       (22)                 -     
Profit on sale of associate                             -                 -     
Impairment of investment in associates                  -                 -     
Impairment of investments                               2                 -     
Impairment of property, plant and equipment             -               303     
Headline (loss)/earnings                             (51)               457     
Discontinued operations                                                         
Net (loss)/profit                                       -               (8)     
Adjusted for (net of tax):                                                      
Profit/(loss) on sale of property,                                              
plant and equipment                                     -                 6     
Headline (loss)/earnings                                -               (2)     
Total headline (loss)/earnings                       (51)               455     
                                                                Year ended      
September              June      
                                                    2008              2009      
                                             (Unaudited)         (Audited)      
Total (loss)/earnings per ordinary share                                        
(cents):                                                                        
Basic (loss)/earnings                                 100               707     
Fully diluted (loss)/earnings                          99               704     
Headline (loss)/earnings                               24               262     
- from continuing operations                            7               239     
- from discontinued operations                         17                23     
                                               R million         R million      
Reconciliation of headline (loss)/earnings:                                     
Continuing operations                                                           
Net (loss)/profit                                     332             1 709     
Adjusted for (net of tax):                                                      
Profit on sale of property, plant and equipment     (567)             (975)     
Profit on sale of listed investments                    -                 -     
Fair value movement of listed investments               -                71     
Foreign exchange gain reclassified from equity          -             (384)     
Profit on sale of associate                           (1)               (1)     
Impairment of investment in associates                112               112     
Impairment of investments                               -                 -     
Impairment of property, plant and equipment           152               457     
Headline (loss)/earnings                               28               989     
Discontinued operations                                                         
Net (loss)/profit                                      70             1 218     
Adjusted for (net of tax):                                                      
Profit/(loss) on sale of property,                                              
plant and equipment                                     -           (1 121)     
Headline (loss)/earnings                               70                97     
Total headline (loss)/earnings                         98             1 086     
5. Borrowings                                                                   
September          June       September      
                                        2009          2009            2008      
                                 (Unaudited)     (Audited)     (Unaudited)      
                                   R million     R million       R million      
Total long-term borrowings                108           110             176     
Total current portion of                                                        
borrowings                                260           252           3 363     
Total borrowings(1)                       368           362           3 539     
(1) Included in the borrowings is R104 million (June 2009: R106 million;        
September 2008: R183 million) owed to Westpac Bank Limited in terms of a        
finance lease agreement. The future minimum lease payments to the loan are as   
follows:                                                                        
September          June       September      
                                        2009          2009            2008      
                                 (Unaudited)     (Audited)     (Unaudited)      
                                   R million     R million       R million      
Due within one year                        31            30              46     
Due between one and five years             76            80             156     
                                         107           110             202      
Future finance charges                    (3)           (4)            (19)     
Total future minimum lease                                                      
payments                                  104           106             183     
6. Dividend declared                                                            
On 13 August 2009, the board of directors approved a final dividend for the     
2009 financial year of 50 SA cents per share. The total dividend, amounting to  
R213 million was paid on 21 September 2009.                                     
                                   September          June       September      
                                        2009          2009            2008      
(Unaudited)     (Audited)     (Unaudited)      
Dividend declared (R million)             213             -               -     
Number of shares in issue                                                       
(thousands)                           426 025       425 987         403 424     
Dividend per share (cents)                 50             -               -     
7. Commitments and contingencies                                                
                                   September          June       September      
                                        2009          2009            2008      
(Unaudited)     (Audited)     (Unaudited)      
                                   R million     R million       R million      
Capital expenditure commitments                                                 
Contracts for capital expenditure         528           478             512     
Authorised by the directors but                                                 
not contracted for                      1 829           734           2 467     
                                       2 357         1 212           2 979      
This expenditure will be financed from existing resources.                      
Contingent liability                                                            
Class action                                                                    
We have filed with the Court a Motion to Dismiss all claims asserted in the     
Class Action Case, the plaintiffs have filed an opposing response, and we have  
since replied to that response. At this point the matter is in the hands of the 
Court and we are awaiting a ruling by the Court. It is not possible to predict  
with certainty when the Court will rule on the Motion to Dismiss as the timing  
of the ruling is entirely within the discretion of the Court.                   
8. Subsequent events                                                            
During October 2009, Harmony sold its remaining Avoca shares of 2 465 295 at an 
average price of A$1.66 per share, amounting to the sale proceeds of A$4.1      
million.                                                                        
9. Segment report                                                               
The segment report follows below.                                               
10. Reconciliation of segment information to consolidated income statements and 
   balance sheet                                                                
September       September      
                                                      2009            2008      
                                               (Unaudited)     (Unaudited)      
                                                 R million       R million      
The "reconciliation of segment data to                                          
consolidated financials" line item                                              
in the segment reports are broken down in the                                   
following elements,                                                             
to give a better understanding of the                                           
differences between the income                                                  
statement, balance sheet and segment report.                                    
Revenue from:                                                                   
Discontinued operations                                   -             338     
Production costs from:                                                          
Discontinued operations                                   -             248     
Reconciliation of cash operating profit to                                      
gross profit:                                                                   
Total segment revenue                                 2 747           3 020     
Total segment production costs                      (2 195)         (2 122)     
Cash operating profit as per segment report             552             898     
Less: Discontinued operations                             -            (90)     
Cash operating profit as per segment report             552             808     
Cost of sales items other than production costs       (409)           (503)     
Amortisation and depreciation                         (350)           (308)     
Impairment of assets                                      -           (152)     
Employment termination and restructuring costs            -            (12)     
Share-based compensation                               (34)            (13)     
Rehabilitation costs                                    (4)             (6)     
Care and maintenance costs of restructured                                      
shafts                                                 (21)            (12)     
Gross profit as per income statements*                  143             305     
Reconciliation of total segment mining assets                                   
to consolidated property, plant and equipment:                                  
Property, plant and equipment not allocated to                                  
a segment:                                                                      
Mining assets                                           596             459     
Undeveloped property                                  5 139           5 139     
Other non-mining assets                                  66              48     
Less: Non-current assets previously classified                                  
as held-for-sale                                          -           (272)     
Less: Non-current assets classified as                                          
held-for-sale                                             -           (737)     
                                                     5 801           4 637      
* The reconciliation was done up to the first recognisable line item on the     
income statement. The reconciliation will follow the income statement after     
that.                                                                           
SEGMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2009 (Unaudited) (Rand/Metric) 
                                                        Cash                    
Production         operating        Mining      
                    Revenue           cost     profit/(loss)        assets      
                  R million      R million         R million     R million      
Operations                                                                      
South Africa                                                                    
Underground                                                                     
Bambanani                234            193                41           672     
Doornkop                 120            101                19         2 618     
Elandsrand               350            281                69         2 797     
Evander                  290            273                17           958     
Masimong                 324            186               138           684     
Phakisa                   64             59                 5         3 778     
Target                   219            160                59         2 262     
Tshepong                 421            294               127         3 660     
Virginia                 398            413              (15)           868     
Other (1)                128            105                23           230     
Surface                                                                         
Other (2)                199            130                69           141     
Total South Africa     2 747          2 195               552        18 668     
International                                                                   
Papua New Guinea           -              -                 -         3 713     
Other operations                                                                
(3)                        -              -                 -           275     
Total international        -              -                 -         3 988     
Total operations       2 747          2 195               552        22 656     
Reconciliation of                                                               
the segment                                                                     
information to the                                                              
consolidated                                                                    
income statement                                                                
and balance sheet                                                               
(refer to note 10)         -              -                           5 801     
2 747          2 195                          28 457      
                                          Capital     Kilograms     Tonnes      
                                      expenditure      produced     milled      
                                        R million            kg      t`000      
Operations                                                                      
South Africa                                                                    
Underground                                                                     
Bambanani                                       23           946        147     
Doornkop                                        73           500        130     
Elandsrand                                     111         1 625        260     
Evander                                         52         1 239        259     
Masimong                                        39         1 359        234     
Phakisa                                        128           260         71     
Target                                          84           909        193     
Tshepong                                        71         1 703        418     
Virginia                                        52         1 668        544     
Other (1)                                       18           515        136     
Surface                                                                         
Other (2)                                       15           891      2 092     
Total South Africa                             666        11 615      4 484     
International                                                                   
Papua New Guinea                               249             -          -     
Other operations (3)                             -             -          -     
Total international                            249             -          -     
Total operations                               915        11 615      4 484     
Reconciliation of the segment                                                   
information to the consolidated                                                 
income statement and                                                            
balance sheet (refer to note 10)                                                
Notes:                                                                          
(1) Includes Joel.                                                              
(2) Includes Kalgold, Phoenix and Dumps.                                        
(3) Includes Mount Magnet.                                                      
SEGMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008 (Unaudited) (Rand/Metric) 
                                                        Cash                    
                                Production         operating        Mining      
Revenue           cost     profit/(loss)        assets      
                  R million      R million         R million     R million      
Continuing                                                                      
operations                                                                      
South Africa                                                                    
Underground                                                                     
Bambanani                256            171                85           731     
Doornkop                  55             59               (4)         2 229     
Elandsrand               332            245                87         2 450     
Evander                  346            238               108         1 226     
Masimong                 282            169               113           647     
Phakisa                   23             18                 5         3 265     
Target                   127            118                 9         2 259     
Tshepong                 410            250               160         3 586     
Virginia                 485            377               108           928     
Other (1)                114             92                22           233     
Surface                                                                         
Other (2)                252            137               115           151     
Total South Africa     2 682          1 874               808        17 705     
International                                                                   
Papua New Guinea           -              -                 -         3 669     
Other operations (3)       -              -                 -           272     
Total international        -              -                 -         3 941     
Total continuing                                                                
operations             2 682          1 874               808        21 646     
Discontinued                                                                    
operations                                                                      
Cooke operations         338            248                90           737     
Total discontinued                                                              
operations               338            248                90           737     
Total operations       3 020          2 122               898        22 383     
Reconciliation of                                                               
the segment                                                                     
information to the                                                              
consolidated                                                                    
income statement                                                                
and balance sheet                                                               
(refer to note 10)     (338)          (248)                           4 637     
                      2 682          1 874                          27 020      
                                          Capital     Kilograms     Tonnes      
expenditure      produced     milled      
                                        R million            kg      t`000      
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani                                       11         1 189        142     
Doornkop                                        83           255        110     
Elandsrand                                      95         1 528        288     
Evander                                         50         1 612        306     
Masimong                                        33         1 272        235     
Phakisa                                        105           109         30     
Target                                          61           530        167     
Tshepong                                        51         1 906        354     
Virginia                                        39         2 197        568     
Other (1)                                       11           538        137     
Surface                                                                         
Other (2)                                       54         1 151      2 262     
Total South Africa                             593        12 287      4 599     
International                                                                   
Papua New Guinea                               400             -          -     
Other operations (3)                             -             -          -     
Total international                            400             -          -     
Total continuing operations                    993        12 287      4 599     
Discontinued operations                                                         
Cooke operations                                53         1 564        801     
Total discontinued operations                   53         1 564        801     
Total operations                             1 046        13 851      5 400     
Reconciliation of the segment                                                   
information to the consolidated                                                 
income statement and                                                            
balance sheet (refer to note 10)                                                
Notes:                                                                          
(1) Includes Joel.                                                              
(2) Includes Kalgold, Phoenix and Dumps.                                        
(3) Includes Mount Magnet.                                                      
CONTACT DETAILS                                                                 
HARMONY GOLD MINING COMPANY LIMITED                                             
Corporate Office                                                                
Randfontein Office Park                                                         
PO Box 2                                                                        
Randfontein, 1760                                                               
South Africa                                                                    
Corner Main Reef Road                                                           
and Ward Avenue                                                                 
Randfontein, 1759                                                               
Johannesburg                                                                    
South Africa                                                                    
Telephone        :    +27 11 411 2000                                           
Website          :    http://www.harmony.co.za                                  
Directors                                                                       
P T Motsepe (Chairman)*                                                         
G Briggs (Chief Executive Officer)                                              
F Abbott (Interim Financial Director)                                           
J A Chissano*1                                                                  
F F T De Buck*, Dr C Diarra*+,                                                  
K V Dicks*, Dr D S Lushaba*, C Markus*,                                         
M Motloba*, C M L Savage*, A J Wilkens*                                         
(* non-executive)                                                               
(1 Mocambican)                                                                  
(+ US/Mali Citizen)                                                             
Investor Relations Team                                                         
Esha Brijmohan                                                                  
Investor Relations Officer                                                      
Telephone        :    +27 11 411 2314                                           
Fax              :    +27 11 692 3879                                           
Mobile           :    +27 82 759 1775                                           
E-mail           :    esha@harmony.co.za                                        
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
Telephone        :    +27 11 411 2037                                           
Fax              :    +27 86 614 0999                                           
Mobile           :    +27 82 888 1242                                           
E-mail           :    marian@harmony.co.za                                      
Company Secretary                                                               
Khanya Maluleke                                                                 
Telephone        :    +27 11 411 2019                                           
Fax              :    +27 11 411 2070                                           
Mobile           :    +27 82 767 1082                                           
E-mail           :    Khanya.maluleke@harmony.co.za                             
South African Share Transfer Secretaries                                        
Link Market Services South Africa (Proprietary) Limited                         
(Registration number 2000/007239/07)                                            
16th Floor, 11 Diagonal Street                                                  
Johannesburg, 2001                                                              
PO Box 4844                                                                     
Johannesburg, 2000                                                              
South Africa                                                                    
Telephone         :   +27 86 154 6572                                           
Fax               :   +27 86 674 3260                                           
United Kingdom Registrars                                                       
Capita Registrars                                                               
The Registry                                                                    
34 Beckenham Road                                                               
Bechenham                                                                       
Kent BR3 4TU                                                                    
United Kingdom                                                                  
Telephone         :   +44 870 162 3100                                          
Fax               :   +44 208 636 2342                                          
ADR Depositary                                                                  
The Bank of New York Mellon Inc                                                 
101 Barclay Street                                                              
New York, NY 10286                                                              
United States of America                                                        
Telephone         :   +1888-BNY-ADRS                                            
Fax               :   +1 212 571 3050                                           
Sponsor                                                                         
JP Morgan Equities Limited                                                      
1 Fricker Road, corner Hurlingham Road                                          
Illovo, Johannesburg, 2196                                                      
Private Bag X9936, Sandton, 2146                                                
Telephone         :   +27 11 507 0300                                           
Fax               :   +27 11 507 0503                                           
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                                  
Registration number 1950/038232/06                                              
Incorporated in the Republic of South Africa                                    
ISIN: ZAE 000015228                                                             
Date: 30/10/2009 08:00:01 Supplied by www.sharenet.co.za                     
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