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HAR - Harmony Gold Mining Company Limited - Results for the third quarter ended

Release Date: 10/05/2010 08:00:03      Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Results for the third quarter ended 
31 March 2010                                                                   
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: ZAE 000015228                                                             
Results for the third quarter ended 31 March 2010                               
Shareholder information                                                         
Issued ordinary share capital at                                426 191 965     
31 March 2010                                                        shares     
Market capitalisation                                                           
At 31 March 2010 (ZARm)                                              29 322     
At 31 March 2010 (US$m)                                               4 009     
Harmony ordinary share                                                          
and ADR prices                                                                  
12-month high (1 April 2009 to                                                  
31 March 2010) for ordinary shares                                   R99.22     
12-month low (1 April 2009 to                                                   
31 March 2010) for ordinary shares                                   R67.71     
12-month high (1 April 2009 to                                                  
31 March 2010) for ADRs                                              $12.39     
12-month low (1 April 2009 to                                                   
31 March 2010)) for ADRs                                              $8.06     
Free float                                                                      
Ordinary shares                                                        100%     
ADR ratio                                                               1:1     
JSE Limited                                                             HAR     
Range for quarter                                                               
(1 January 2010 to                                                 R68.80 -     
31 March 2010 - closing prices)                                      R80.77     
Average daily volume for                                                        
the quarter (1 January 2010 to                                    1 305 283     
31 March 2010)                                                       shares     
New York Stock                                                                  
Exchange, Inc.                                                                  
HMY                                                                             
Range for quarter                                                               
(1 January 2010 to                                                  $8.79 -     
31 March 2010 - closing prices)                                      $11.11     
Average daily volume for                                                        
the quarter (1 January 2010 to                                      670 462     
31 March 2010)                                                       shares     
Nasdaq                                                                  HMY     
Range for quarter                                                               
(1 January 2010 to                                                  $8.81 -     
31 March 2010 - closing prices)                                      $11.10     
Average daily volume for                                                        
the quarter (1 January 2010 to                                      553 900     
31 March 2010)                                                       shares     
Key features for the quarter                                                    
* Safety remains a top priority                                                 
- 99 days fatal-free                                                            
* Continuing to "fix the mix"                                                   
- more quality, low-cost ounces long term                                       
* Growth projects poised to produce                                             
- mostly on track                                                               
* 10% decrease in gold production                                               
* 19% drop in total capital expenditure                                         
* Excellent exploration results                                                 
- turning tenements into resources                                              
Financial review for the third quarter and nine months ended 31 March 2010      
                                         Quarter      Quarter                   
                                           March     December       Q-on-Q      
                                            2010         2009     variance      
Gold                         - kg          10 366       11 569       (10.4)     
produced(1)                  - oz         333 276      371 956       (10.4)     
Cash costs                   - R/kg       199 859      192 101        (4.0)     
                            - US$/oz         829          798        (3.8)      
Cash operating               - Rm             634          800       (20.8)     
profit                       - US$m            84          107       (20.9)     
Basic(loss)/                 - SAc/s         (69)           28       <(100)     
earnings per share           - USc/s          (9)            4       <(100)     
Headline                     - Rm           (137)          207       <(100)     
(loss)/profit                - US$m          (18)           28       <(100)     
Headline (loss)/             - SAc/s         (32)           49       <(100)     
earnings per share           - USc/s          (4)            7       <(100)     
Adjusted                     - SAc/s          (6)           50       <(100)     
headline (loss)/             - USc/s          (1)            8       <(100)     
earnings per share(2)                                                           
Exchange rate                - R/US$         7.50         7.49          0.2     
Gold price                   - R/kg       267 469      264 774          1.0     
received                     - US$/oz       1 109        1 100        (0.8)     
                                       9 months      9 months     Year-to-      
                                          March         March         year      
2010          2009     variance      
Gold                      - kg            33 649        34 434        (2.3)     
produced(1)               - oz         1 081 831     1 107 078        (2.3)     
Cash costs                - R/kg         193 274       166 757         15.9     
- US$/oz           792           564         40.4      
Cash operating            - Rm             1 985         3 096       (35.9)     
profit                    - US$m             261           337       (22.6)     
Basic(loss)/              - SAc/s           (48)          397*       <(100)     
earnings per share        - USc/s            (6)           43*       <(100)     
Headline                  - Rm                21          968*         (98)     
(loss)/profit             - US$m               3          105*         (97)     
Headline (loss)/          - SAc/s              5          236*         (98)     
earnings per share        - USc/s              1           26*           96     
Adjusted                  - SAc/s             32           243         (87)     
headline (loss)/          - USc/s              4            26         (85)     
earnings per share(2)                                                           
Exchange rate             - R/US$           7.59          9.19       (17.4)     
Gold price                - R/kg         256 525       252 346          1.7     
received                  - US$/oz         1 051           854         23.1     
* Reported amounts include continued operations only.                           
(1) Production statistics for Hidden Valley, President Steyn and Target 3       
(previously known as Lorraine 3) have been included.                            
These mines are in a build-up phase and revenue and costs are currently         
capitalised.                                                                    
(2) Headline (loss)/earnings adjusted for employee termination and              
restructuring costs.                                                            
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                                                
Introduction                                                                    
During the quarter ended 31 March 2010, we continued the difficult but          
necessary process of restructuring to eliminate unprofitable production, our    
end game being the best asset mix, generating quality ounces. Following on from 
the first round of shaft closures - Evander 2, 5 and 7 and Brand 3 - in the     
previous quarter and early in the quarter under review, we announced the        
closure of Harmony 2, Merriespruit 1 and 3 shafts, which will take effect       
during the fourth quarter. We fully anticipated the short term effects from     
these actions and indeed, gold production for the March quarter reduced by 10%  
in comparison to the previous quarter of which 6% can be attributed to the      
restructuring. We experienced some technical challenges and a number of lost    
shifts due to stoppages imposed by the regulator for minor infringements.       
We have dealt with these matters and discuss the detail later in this review.   
We continue to draw to the end of our various capital programmes, with capital  
expenditure 19% lower than the previous quarter.                                
On the safety front our continued diligence produced excellent results,         
clouded, however, by the death of winch operator Matome Johannes Mothele in a   
fall of ground at Evander, ending a 99-day period free of fatalities. We extend 
our deepest condolences to his family, friends and colleagues.                  
Operational results                                                             
Gold production was 10% lower at 10 366kg (of which 579kg was capitalised),     
down from 11 569kg (of which 669kg was capitalised) in the previous quarter.    
The decrease is due largely to the closure of Evander 2, 5 and 7 and Brand 3    
shafts. Challenges at Tshepong, Masimong, Joel and Kusasalethu (previously      
known as Elandsrand) also contributed to lower production.                      
Only Tshepong and Masimong had a slow start-up after the Christmas break;       
Joel saw lower grades, mainly as a result of hoisting delays caused by the      
lift shaft deepening project; and Kusasalethu experienced ore-pass problems,    
which are being investigated.                                                   
Of great concern is the number of production stoppages ordered by the new       
Principal Inspector of Mines in the Free State. Thirteen shifts were lost,      
which translates to approximately 170 fewer kilograms of gold and R46 million   
less revenue. Some of these stoppages related to administrative infringements   
and could easily have been resolved without resort to stoppages. We are in      
robust consultation with the Department of Mineral Resources (DMR) to address   
our concerns.                                                                   
Total cash operating costs decreased by R138 million or 7% from R2 094 million  
in the previous quarter to R1 956 million including royalties, mainly due to    
the closure of Evander 2, 5 and 7 and Brand 3.                                  
However, R/kg costs increased by 4% to R199 859/kg (R192 101/kg in the previous 
quarter) due to lower tonnes milled and a 4% decrease in grade. Consequently,   
operating profit was 21% lower at R634 million, down from R800 million in the   
previous quarter. As expected, capital expenditure decreased by 19% to R723     
million and our focus is now on increasing production in line with expectation, 
focusing on development and resolving project commissioning issues.             
Restructuring                                                                   
Evander 2, 5 and 7 and Brand 3 shafts                                           
The closure of these shafts resulted in a reduction in gold produced of 639kg   
compared with the previous quarter. Restructuring costs in respect of these     
closures amount to R120 million. Going forward, only minimal care and           
maintenance costs for the closed shafts will be incurred.                       
Harmony 2, Merriespruit 1 and 3 shafts                                          
During March 2010 and April 2010 the performance of Harmony 2, Merriespruit 1   
and 3 shafts (all part of the Virginia operations) was carefully assessed and   
we reached a well-informed conclusion that these assets have all depleted their 
payable reserves. As a result, the closure process began in mid-April.          
Employee representatives, through their trade unions, were informed of the      
closures and we have embarked on a formal consultation process with them,       
facilitated by a senior commissioner from the Commission for Conciliation,      
Mediation and Arbitration (CCMA) in terms of Section 189A of the Labour         
Relations Act, to consider alternatives to retrenchments. The number of         
employees affected by the closure is approximately 3 700. Every effort will be  
made to mitigate the effects of closure. Steps to be considered may include     
transfers to other operations in the group, portable skills training and early  
retirement.                                                                     
Evander                                                                         
The underpinning geological resource of Evander is the variable and very rich   
Kimberley Reef. The mining of this resource demands strict management           
philosophies and capital. We are currently looking at ways to unlock value at   
Evander as it requires further capital to fully develop the abundant resource.  
Commissioning of growth projects                                                
Hidden Valley continued its commissioning process, with the silver flotation    
circuit commissioned during the March quarter. We expect the Hidden Valley mine 
and processing plant to reach their original design capacity and throughput in  
the June 2010 quarter. The mine produced 35 359oz Au and 168 505oz Ag (50% of   
which is attributable to Harmony) during the quarter. Good progress is being    
made with the commissioning phase.                                              
At Doornkop, the equipping of the rock winder compartment is nearing completion 
and it is estimated that both the North and South compartments will be          
completed by May 2010. The shaft equipping had to be delayed during the quarter 
to focus on the installation of a pump column to increase the pumping capacity  
after water intersections on the South caused an increase in the return water   
to the shaft. The mud pumping system was completed during the quarter.          
Development of the mine is well on track towards achieving its production       
targets in 2012. The South Reef grades are delivering above 5g/t which is in    
line with the life-of-mine plan.                                                
At Phakisa, production was affected as a result of compressor breakdowns at     
Nyala shaft, rail-veyor commissioning problems with the third train,            
under-performance of the ice plants and illegal mining activities. The          
compressor and rail-veyor issues have been resolved. The ice plants are still   
under-performing and the original equipment manufacturers (OEMs) from abroad    
are helping us to analyse and resolve the problem. The set-up of the plants is  
time- consuming, but the OEMs are familiar with the issues, and they will be    
resolved. We believe that Phakisa will make up its production losses in the     
first quarter of the new financial year our battle against criminal mining      
continues.                                                                      
Exploration                                                                     
Exploration drilling at Wafi/Golpu in Papua New Guinea has widely expanded the  
known mineralisation. The footprint of the zone is now more than double what    
was previously reported. This success will have a profound effect on the        
options for exploitation of this resource. The resource is still being scoped   
and to some extent will make the previous mining concept work redundant.        
However, it will set a new baseline for what the mine could look like.          
Exploration results are reported in the exploration section on page 13.         
It is expected that a significant resource upgrade will be declared on 30 June  
2010.                                                                           
Pamodzi assets                                                                  
Harmony became the owners of the Lorraine 3 (renamed Target 3) shaft and the    
President Steyn 1 and 2 shafts on 18 February 2010. The start-up is slower than 
anticipated due to the state of the infrastructure and the working places. Some 
panels have started, with 1 089 people having been re-called to these shafts.   
The opening-up, equipping, infrastructure repair and production are in progress 
at Steyn 2 and Target 3. A fire at Steyn 1 has resulted in mining being delayed 
until it has been brought under control.                                        
It has been sealed off on all the levels, which makes access to any working     
area impossible at this stage. Although the fire is monitored on a daily basis, 
the readings are very erratic due to the vast, open, old areas where it is      
burning.                                                                        
The teams on the Steyn 2 and Target 3 shafts spend a lot of time investigating  
all possible mining areas and action plans are being drawn up to bring these    
areas into full production. A team also started with the pre-feasibility study  
on the Steyn 2 shaft pillar.                                                    
Different options are being looked at to service the area and to transport the  
rock to surface. We will follow our internal project approval process to decide 
on the best option for the pillar extraction. During the quarter, 29kg of gold  
were produced by these shafts, of which the cost has been capitalised. Some 61  
kg of gold were extracted from the Steyn Plant clean-up and 42kg of gold from   
Freddies 9 rock dump.                                                           
Gold market                                                                     
The R/kg gold price remained steady during the quarter and we received R267     
469/kg for our production. Investment demand supports the gold price at its     
current levels, with strong physical demand in India and from exchange-traded   
funds. The Rand`s strength continued and it is uncertain whether it will remain 
at its current levels. We remain bullish about the gold market and the gold     
price.                                                                          
Board appointment                                                               
Mashego Mashego, previously a member of our Executive Management, was appointed 
as Executive Director: Organisational Development and Transformation, in        
February 2010. Mashego`s wealth of human resources knowledge and his experience 
as a member of Harmony`s executive team make him a valuable addition to the     
board and we wish him well.                                                     
Looking ahead                                                                   
As for managing what is absolutely within our power to manage, there is not one 
of our current operations that can or will escape our vigilance in terms of     
volume and grade optimisation, cost control, and productivity enhancement.      
Turnaround through improved profitability and getting to the right asset mix    
remain priorities for us. Added to this, we will progress our developmental     
projects - our key growth drivers - and pursue further, longer-term growth      
through acquisition and exploration. To achieve this, we will continue to call  
on the substantial reserves of ability, skills and enthusiasm of the thousands  
of people comprising the Harmony team.                                          
Graham Briggs                                                                   
Chief Executive Officer                                                         
Financial overview                                                              
Cash operating profit was 21% lower at R634 million due to a decrease of 10% in 
production, of which 6% is attributable to closed shafts.                       
This was mitigated by a decrease in total cash operating costs of R138 million. 
Earnings per share                                                              
Basic earnings per share decreased from a profit of 28 SA cents to a loss of 69 
SA cents per share. Similarly headline earnings decreased form a profit of 49   
SA cents to a loss of 32 SA cents per share. This decrease can mainly be        
attributed to a decrease in production.                                         
Revenue                                                                         
Revenue decreased to R2 521 million from R2 971 million in a relatively stable  
price environment, resulting from a 13% decrease in kg`s sold. This was caused  
by lower production and some inventory build-up.                                
Costs                                                                           
Total cash operating costs were 7% lower at R1 956 million due mainly to closed 
shafts.                                                                         
Disposal of Big Bell                                                            
The sale of Big Bell was concluded in the current quarter, generating R24       
million cash for the group, but at an accounting loss of R24 million.           
Impairment of assets                                                            
An impairment expense of R196 million was recorded during the current quarter   
relating to the closure of Harmony 2 (R36 million), Merriespruit 1 (R117        
million) and Merriespruit 3 (R43 million).                                      
Impairments totaling R103 million were recorded in the December 2009 quarter    
following the decision to close Evander 2 and 5 (R66 million) and Brand 3 (R37  
million).                                                                       
Capital expenditure                                                             
Total capital expenditure was 19% lower at R723 million, R26 million            
attributable to South African operations and R143 million to Hidden Valley.     
Africa Vanguard Resources                                                       
Harmony acquired the 26% interest in Doornkop, held by Africa Vanguard          
Resources (Doornkop) (AVRD) in the Doornkop south project, during the quarter   
for a total purchase consideration of R398 million. The consideration was       
partially paid during the quarter with the settlement of AVRD`s Nedbank loan to 
the value of R244 million. The remainder of the consideration price was paid by 
the issue of 2 162 359 Harmony shares on 28 April 2010, following the           
registration of the deed of session at the Mining Titles registration office.   
Royalties                                                                       
Effective 1 March 2010, The Mineral and Petroleum Resources Royalty Act, No. 28 
of 2008, became effective and resulted in a royalty expense of R4.7 million for 
the quarter.                                                                    
Safety and health                                                               
Safety                                                                          
Harmony recorded excellent safety results during the quarter under review. The  
company achieved 99 fatality-free calendar days during the quarter, which has   
been its best achievement ever recorded.                                        
However, it is with deep regret that we report a fatal accident that occurred   
at Evander 8 shaft during the quarter, as a result of a fall of ground.         
We are pleased to announce that a `single digit` lost time injury frequency     
rate (LTIFR) was achieved for the sixth consecutive quarter.                    
During the quarter, the LTIFR year-to-date improved by 18% from 9.35 to 7.71    
when compared to the actual figure for the previous year and improved by 4%     
quarter on quarter from 8.30 to 7.95. The fatal injury frequency rate (FIFR)    
also showed remarkable improvement for the second consecutive quarter with the  
year-to-date rate improving 24% from 0.21 to 0.16 when compared to the previous 
year. Quarter on quarter, the FIFR outperformed the previous quarter`s rate by  
80% (from 0.20 to 0.04). Harmony`s reportable injury frequency rate (RIFR) also 
showed improvement of 18% year on year from 4.97 to 4.08, and improved by 10%   
quarter on quarter from 4.59 to 4.1.                                            
The following operations achieved outstanding safety results during the quarter:
* Harmony total operations: 2 000 000 fatality-free shifts.                     
* Doornkop, Harmony 2 shaft operations: 1 250 000 fatality-free shifts.         
* Harmony total north, Harmony total south, Harmony underground south, Joel,    
Tshepong operations: 1 000 000 fatality-free shifts.                            
* Masimong 5 shaft: 500 000 fatality free shifts.                               
It is encouraging to see remarkable improvements in our safety results during   
the March 2010 quarter, which bare testimony to the effective behaviour-based   
safety programmes that continue to be rolled out at all Harmony`s operations.   
Safety remains the key focus at Harmony and ongoing efforts are being made      
throughout the company to improve performance on a daily basis.                 
Health                                                                          
Our employees` well being is important to us and we have therefore              
consolidated the various components of healthcare.                              
A highlight for the quarter under review in terms of noise protection is that   
the implementation of personalised hearing protection was 84.3% completed.      
Furthermore, mufflers on all drilling machines as well as silencing on fans     
have all been installed and the installation of sound attenuators on mechanical 
loaders has been scheduled. To date, this process is about 14% completed.       
Dust remains an area of concern and therefore, in January 2010, silica quartz   
sampling was increased from the compulsory 5% to 10%. This action was embarked  
upon to increase confidence levels in sample results and to identify potential  
risk areas.                                                                     
In terms of radiation protection for our employees, radon exposures on all      
operations are well controlled.                                                 
CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)                                  
                                             Quarter ended                      
                                31 March       31 December     31 March(1)      
2010              2009            2009      
                             (Unaudited)       (Unaudited)     (Unaudited)      
                    Note       R million         R million       R million      
Continuing operations                                                           
Revenue                             2 521             2 971           3 005     
Cost of sales           2         (2 585)           (2 656)         (2 211)     
Production cost                   (1 887)           (2 172)         (1 830)     
Amortisation and                                                                
depreciation                        (324)             (321)           (303)     
Impairment of assets                (196)             (104)             (3)     
Employment                                                                      
termination and                                                                 
restructuring costs                 (120)               (3)            (11)     
Other items                          (58)              (56)            (64)     
Gross (loss)/profit                  (64)               315             794     
Corporate,                                                                      
administration and                                                              
other expenditure                   (108)             (116)            (80)     
Exploration                                                                     
expenditure                          (74)              (50)            (75)     
Profit on sale of                                                               
property,                                                                       
plant and equipment                     1                 3             427     
Other                                                                           
(expenses)/income -                                                             
net                                   (2)              (20)           (101)     
Operating                                                                       
(loss)/profit                       (247)               132             965     
Profit/(loss) from                                                              
associates                              5                25              14     
Profit on sale of                                                               
investment in                                                                   
associate                               -                 -               -     
Impairment of                                                                   
investment in                                                                   
associate                               -                 -               -     
(Loss)/profit on                                                                
sale of investment                                                              
in subsidiary                        (24)                 -               6     
Fair value movement                                                             
of listed                                                                       
investments                             -                 -               3     
Profit on sale of                                                               
listed investments                      -                 3               -     
Impairment of                                                                   
investments                             -                 -               -     
Investment income                      61                54             152     
Finance cost                         (62)              (37)            (42)     
(Loss)/profit before                                                            
taxation                            (267)               177           1 098     
Taxation                             (28)              (59)           (125)     
Net (loss)/profit                                                               
from continuing                                                                 
operations                          (295)               118             973     
Discontinued                                                                    
operations              3                                                       
(Loss)/profit from                                                              
discontinued                                                                    
operations                              -                 -             (1)     
Net (loss)/profit                   (295)               118             972     
(Loss)/earnings per                                                             
ordinary share                                                                  
(cents)                 4                                                       
- (Loss)/earnings                                                               
from continuing                                                                 
operations                           (69)                28             232     
- Earnings from                                                                 
discontinued                                                                    
operations                              -                 -               -     
Total                                                                           
(loss)/earnings per                                                             
ordinary                                                                        
share (cents)                        (69)                28             232     
Diluted                                                                         
(loss)/earnings per                                                             
ordinary                                                                        
share (cents)           4                                                       
- (Loss)/earnings                                                               
from continuing                                                                 
operations                           (68)                28             230     
- Earnings from                                                                 
discontinued                                                                    
operations                              -                 -               -     
Total diluted                                                                   
(loss)/earnings per                                                             
ordinary share                                                                  
(cents)                              (68)                28             230     
                                      Nine months ended         Year ended      
31 March       31 March(1)      30 June      
                                       2010            2009           2009      
                                (Unaudited)     (Unaudited)      (Audited)      
                       Note       R million       R million      R million      
Continuing operations                                                           
Revenue                                8 239           8 833         11 496     
Cost of sales              2         (7 845)         (6 973)        (9 836)     
Production cost                      (6 254)         (5 737)        (7 657)     
Amortisation and                                                                
depreciation                           (995)           (921)        (1 467)     
Impairment of assets                   (300)           (154)          (484)     
Employment termination                                                          
and                                                                             
restructuring costs                    (123)            (39)           (39)     
Other items                            (173)           (122)          (189)     
Gross (loss)/profit                      394           1 860          1 660     
Corporate,                                                                      
administration and                                                              
other expenditure                      (312)           (263)          (362)     
Exploration expenditure                (184)           (212)          (289)     
Profit on sale of                                                               
property,                                                                       
plant and equipment                        4             888            965     
Other (expenses)/income                                                         
- net                                   (94)              43          (101)     
Operating (loss)/profit                (192)           2 316          1 873     
Profit/(loss) from                                                              
associates                                61            (37)             12     
Profit on sale of                                                               
investment in associate                    -               1              1     
Impairment of                                                                   
investment in associate                    -           (112)          (112)     
(Loss)/profit on sale                                                           
of investment                                                                   
in subsidiary                           (24)               6              -     
Fair value movement of                                                          
listed investments                         -           (114)          (101)     
Profit on sale of                                                               
listed investments                         5               -              -     
Impairment of                                                                   
investments                              (2)               -              -     
Investment income                        186             337            444     
Finance cost                           (134)           (190)          (212)     
(Loss)/profit before                                                            
taxation                               (100)           2 207          1 905     
Taxation                               (106)           (580)          (196)     
Net (loss)/profit from                                                          
continuing                                                                      
operations                             (206)           1 627          1 709     
Discontinued operations    3                                                    
(Loss)/profit from                                                              
discontinued operations                    -           1 062          1 218     
Net (loss)/profit                      (206)           2 689          2 927     
(Loss)/earnings per                                                             
ordinary share (cents)     4                                                    
- (Loss)/earnings from                                                          
continuing                                                                      
operations                              (48)             397            413     
- Earnings from                                                                 
discontinued operations                    -             259            294     
Total (loss)/earnings                                                           
per ordinary                                                                    
share (cents)                           (48)             656            707     
Diluted (loss)/earnings                                                         
per ordinary                                                                    
share (cents)              4                                                    
- (Loss)/earnings from                                                          
continuing                                                                      
operations                              (48)             395            411     
- Earnings from                                                                 
discontinued operations                    -             258            293     
Total diluted                                                                   
(loss)/earnings per                                                             
ordinary share (cents)                  (48)             653            704     
The accompanying notes are an integral part of these condensed consolidated     
financial 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.       
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)           
                                             Quarter ended                      
31 March       31 December        31 March      
                                    2010              2009            2009      
                             (Unaudited)       (Unaudited)     (Unaudited)      
                               R million         R million       R million      
Net (loss)/profit for the                                                       
period                              (295)               118             972     
Attributable to:                                                                
Owners of the parent                (295)               118             972     
Non-controlling interest                -                 -               -     
Other comprehensive                                                             
income/(loss)                                                                   
for the period, net of income                                                   
tax                                  (27)              (51)           (220)     
Foreign exchange translation           72              (57)           (203)     
Repurchase of equity interest        (98)                 -               -     
Mark-to-market of                                                               
available-for-sale                                                              
investments                           (1)                 6            (17)     
Total comprehensive                                                             
(loss)/income                                                                   
for the period                      (322)                67             752     
Attributable to:                                                                
Owners of the parent                (322)                67             752     
Non-controlling interest                -                 -               -     
Nine months ended       Year ended      
                                   31 March        31 March        30 June      
                                       2010            2009           2009      
                                (Unaudited)     (Unaudited)      (Audited)      
R million       R million      R million      
Net (loss)/profit for the period       (206)           2 689          2 927     
Attributable to:                                                                
Owners of the parent                   (206)           2 689          2 927     
Non-controlling interest                   -               -              -     
Other comprehensive income/(loss)                                               
for the period, net of income tax       (63)           (247)          (450)     
Foreign exchange translation              34           (292)          (497)     
Repurchase of equity interest           (98)               -              -     
Mark-to-market of                                                               
available-for-sale investments             1              45             47     
Total comprehensive (loss)/income                                               
for the period                         (269)           2 442          2 477     
Attributable to:                                                                
Owners of the parent                   (269)           2 442          2 477     
Non-controlling interest                   -               -              -     
CONDENSED CONSOLIDATED BALANCE SHEET (Rand)                                     
                                                        At              At      
                                                  31 March     31 December      
                                                      2010            2009      
(Unaudited)                      
                                      Note       R million       R million      
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment             6          29 403          28 862     
Intangible assets                                     2 210           2 217     
Restricted cash                                         147             167     
Restricted investments                                1 726           1 697     
Investments in financial assets                          18              20     
Investments in associates                               391             385     
Inventories                               5              81              77     
Trade and other receivables                              76              74     
34 052          33 499      
Current assets                                                                  
Inventories                               5           1 152           1 103     
Income and mining taxes                                  44              55     
Trade and other receivables                           1 217           1 108     
Restricted cash                           6               -             280     
Cash and cash equivalents                               481             808     
                                                     2 894           3 354      
Assets of disposal groups classified                                            
as held-for-sale                          3               -               -     
                                                     2 894           3 354      
Total assets                                         36 946          36 853     
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                        28 102          28 096     
Other reserves                                          535             375     
Retained earnings                                       676             971     
                                                    29 313          29 442      
Non-current liabilities                                                         
Deferred tax                                          3 326           3 317     
Provision for environmental                                                     
rehabilitation                                        1 704           1 612     
Retirement benefit obligation and                                               
other provisions                                        167             167     
Borrowings                                7             780             565     
                                                     5 977           5 661      
Current liabilities                                                             
Borrowings                                7             221             460     
Trade and other payables                              1 418           1 279     
Income and mining taxes                                  17              11     
                                                     1 656           1 750      
Liabilities of disposal groups                                                  
classified as held-for-sale               3               -               -     
                                                     1 656           1 750      
Total equity and liabilities                         36 946          36 853     
Number of ordinary shares in issue              426 191 965     426 079 492     
Net asset value per share (cents)                     6 878           6 910     
                                                        At              At      
                                                   30 June        31 March      
                                                      2009            2009      
(Audited)     (Unaudited)      
                                 Note            R million       R million      
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment        6               27 912          28 103     
Intangible assets                                     2 224           2 223     
Restricted cash                                         161             167     
Restricted investments                                1 640           1 608     
Investments in financial assets                          57              17     
Investments in associates                               329             242     
Inventories                          5                    -               -     
Trade and other receivables                              75              73     
32 398          32 433      
Current assets                                                                  
Inventories                          5                1 035             914     
Income and mining taxes                                  45              58     
Trade and other receivables                             885           2 871     
Restricted cash                      6                    -               -     
Cash and cash equivalents                             1 950           2 839     
                                                     3 915           6 682      
Assets of disposal groups                                                       
classified as held-for-sale          3                    -             425     
                                                     3 915           7 107      
Total assets                                         36 313          39 540     
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                        28 091          28 081     
Other reserves                                          339             503     
Retained earnings                                     1 095             857     
                                                    29 525          29 441      
Non-current liabilities                                                         
Deferred tax                                          3 251           3 796     
Provision for environmental                                                     
rehabilitation                                        1 530           1 366     
Retirement benefit obligation and                                               
other provisions                                        166             268     
Borrowings                           7                  110             159     
                                                     5 057           5 589      
Current liabilities                                                             
Borrowings                           7                  252           2 681     
Trade and other payables                              1 460           1 489     
Income and mining taxes                                  19               -     
                                                     1 731           4 170      
Liabilities of disposal groups                                                  
classified as held-for-sale          3                    -             340     
                                                     1 731           4 510      
Total equity and liabilities                         36 313          39 540     
Number of ordinary shares in issue              425 986 836     425 763 329     
Net asset value per share (cents)                     6 931           6 915     
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand) (Unaudited)        
Share         Other      
                                                     capital      reserves      
                                          Note     R million     R million      
Balance - 30 June 2009                                 28 091           339     
Issue of shares                                            11             -     
Share-based payments                                        -           108     
AVRD share issue reserve                                    -           151     
Comprehensive loss for the period                           -          (63)     
Dividends paid                                8             -             -     
Balance as at 31 March 2010                            28 102           535     
Balance - 30 June 2008                                 25 895           676     
Issue of shares                                         2 186             -     
Share-based payments                                        -            74     
Comprehensive income for the period                         -         (247)     
Balance as at 31 March 2009                            28 081           503     
                                                    Retained                    
earnings         Total      
                                          Note     R million     R million      
Balance - 30 June 2009                                  1 095        29 525     
Issue of shares                                             -            11     
Share-based payments                                        -           108     
AVRD share issue reserve                                    -           151     
Comprehensive loss for the period                       (206)         (269)     
Dividends paid                                8         (213)         (213)     
Balance as at 31 March 2010                               676        29 313     
Balance - 30 June 2008                                (1 832)        24 739     
Issue of shares                                             -         2 186     
Share-based payments                                        -            74     
Comprehensive income for the period                     2 689         2 442     
Balance as at 31 March 2009                               857        29 441     
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)                               
                                             Quarter ended                      
31 March       31 December        31 March      
                                    2010              2009            2009      
                             (Unaudited)       (Unaudited)     (Unaudited)      
                               R million         R million       R million      
Cash flow from operating                                                        
activities                                                                      
Cash generated by operations          295               183             985     
Interest and dividends                                                          
received                               66                52             156     
Interest paid                        (32)              (11)            (41)     
Income and mining taxes paid         (11)              (34)           (133)     
Cash generated by operating                                                     
activities                            318               190             967     
Cash flow from investing                                                        
activities                                                                      
Decrease/(increase) in                                                          
restricted cash                       301             (283)               1     
Net proceeds on disposal of                                                     
listed investments                      -                29               -     
Proceeds on disposal of                                                         
subsidiary                             24                 -               -     
Net (additions to)/disposals                                                    
of property,                                                                    
plant and equipment                 (988)             (890)           (645)     
Other investing activities            (8)               (3)           (163)     
Cash (utilised)/generated by                                                    
investing activities                (671)           (1 147)           (807)     
Cash flow from financing                                                        
activities                                                                      
Borrowings raised                     250               686               -     
Borrowings repaid                   (260)              (18)            (20)     
Ordinary shares issued - net                                                    
of expenses                             6                 3             955     
Dividends paid                          -                 -               -     
Cash (utilised)/generated by                                                    
financing activities                  (4)               671             935     
Foreign currency translation                                                    
adjustments                            30                 -              99     
Net (decrease)/increase in                                                      
cash and cash equivalents           (327)             (286)           1 194     
Cash and cash equivalents -                                                     
beginning of period                   808             1 094           1 646     
Cash and cash equivalents -                                                     
end of period                         481               808           2 840     
Cash and cash equivalents                                                       
comprises of:                                                                   
Continuing operations                 481               808           2 839     
Discontinuing operations                -                 -               1     
Total cash and cash                                                             
equivalents                           481               808           2 840     
                                       Nine months ended        Year ended      
                                   31 March        31 March        30 June      
2010            2009           2009      
                                (Unaudited)     (Unaudited)      (Audited)      
                                  R million       R million      R million      
Cash flow from operating                                                        
activities                                                                      
Cash generated by operations             703           1 871          2 813     
Interest and dividends received          186             350            457     
Interest paid                           (52)           (215)          (280)     
Income and mining taxes paid            (70)           (276)          (704)     
Cash generated by operating                                                     
activities                               767           1 730          2 286     
Cash flow from investing                                                        
activities                                                                      
Decrease/(increase) in                                                          
restricted cash                           15            (89)           (83)     
Net proceeds on disposal of                                                     
listed investments                        44               -              -     
Proceeds on disposal of                                                         
subsidiary                                24               -              -     
Net (additions to)/disposals of                                                 
property,                                                                       
plant and equipment                  (2 785)               7            979     
Other investing activities               (3)            (89)           (79)     
Cash (utilised)/generated by                                                    
investing activities                 (2 705)           (171)            817     
Cash flow from financing                                                        
activities                                                                      
Borrowings raised                        936             500              -     
Borrowings repaid                      (285)         (1 806)        (3 738)     
Ordinary shares issued - net of                                                 
expenses                                  11           1 943          1 953     
Dividends paid                         (213)               -              -     
Cash (utilised)/generated by                                                    
financing activities                     449             637        (1 785)     
Foreign currency translation                                                    
adjustments                               20             229            217     
Net (decrease)/increase in cash                                                 
and cash equivalents                 (1 469)           2 425          1 535     
Cash and cash equivalents -                                                     
beginning of period                    1 950             415            415     
Cash and cash equivalents - end                                                 
of period                                481           2 840          1 950     
Cash and cash equivalents                                                       
comprises of:                                                                   
Continuing operations                    481           2 839          1 950     
Discontinuing operations                   -               1              -     
Total cash and cash equivalents          481           2 840          1 950     
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED   
31 MARCH 2010                                                                   
1.   Accounting policies                                                        
    Basis of accounting                                                         
The condensed consolidated interim financial statements for the period ended 31 
March 2010 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 in the manner required by the Companies Act of South Africa. They should be 
read in conjunction with the annual financial statements for the year ended 30  
June 2009.                                                                      
2.   Cost of sales                                                              
                                                Quarter ended                   
                               31 March        31 December     31 March(1)      
                                      2010            2009            2009      
(Unaudited)     (Unaudited)     (Unaudited)      
                                 R million       R million       R million      
Production costs                      1 887           2 172           1 830     
Amortisation and depreciation           324             321             303     
Impairment of assets(2)(3)              196             104               3     
Provision for rehabilitation                                                    
costs                                     7               4             (2)     
Care and maintenance cost of                                                    
restructured shafts                      15              13              14     
Employment termination and                                                      
restructuring costs                     120               3              11     
Share-based payments                     36              38              52     
Provision for post-retirement                                                   
benefits                                  -               1               -     
Total cost of sales                   2 585           2 656           2 211     
                                        Nine months ended       Year ended      
31 March     31 March(1)        30 June      
                                       2010            2009           2009      
                                (Unaudited)     (Unaudited)      (Audited)      
                                  R million       R million      R million      
Production costs                       6 254           5 737          7 657     
Amortisation and depreciation            995             921          1 467     
Impairment of assets(2)(3)               300             154            484     
Provision for rehabilitation                                                    
costs                                     15               9             21     
Care and maintenance cost of                                                    
restructured shafts                       49              38             53     
Employment termination and                                                      
restructuring costs                      123              39             39     
Share-based payments                     108              74            113     
Provision for post-retirement                                                   
benefits                                   1               1              2     
Total cost of sales                    7 845           6 973          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.  
(2)   The impairment recorded in the March 2010 quarter relates to Harmony 2    
and Merriespruit 1 and 3, which have been placed on care and maintenance.  
(3)   The impairment recorded in the December 2009 quarter relates to Brand 3   
     and Evander 2 and 5 which have been placed on care and maintenance.        
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 (an operation 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 ore body 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 re-presented 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 31 March 2010: 426.1 million  
(31 December: 425.9 million, 31 March 2009: 421.0 million), and the nine months 
ended 31 March 2010: 425.9 million (31 March 2009: 410.3 million) and the year  
ended 30 June 2009: 414.1 million.                                              
The fully diluted (loss)/earnings per ordinary share is calculated on the       
weighted average number of diluted ordinary shares in issue for the quarter     
ended 31 March 2010: 429.6 million (31 December 2009: 427.5 million, 31 March   
2009: 423.6 million), and the nine months ended 31 March 2010: 429.6 million    
(31 March 2009: 412.4 million) and the year ended 30 June 2009: 416.0 million.  
                                                  Quarter ended                 
                                  31 March     31 December     31 March(1)      
                                      2010            2009            2009      
(Unaudited)     (Unaudited)     (Unaudited)      
Total (loss)/earnings per                                                       
ordinary share (cents):                                                         
Basic (loss)/earnings                  (69)              28             232     
Fully diluted (loss)/earnings          (68)              28             230     
Headline (loss)/earnings               (32)              49             123     
- from continuing operations           (32)              49             128     
- from discontinued operations            -               -             (5)     
R million       R million       R million      
Reconciliation of headline                                                      
(loss)/earnings:                                                                
Continuing operations                                                           
Net (loss)/profit                     (295)             118             973     
Adjusted for (net of tax):                                                      
Profit on sale of property,                                                     
plant and equipment                     (1)             (2)           (437)     
Profit on sale of listed                                                        
investments                               -             (3)               -     
Fair value movement of listed                                                   
investments                               -               -               -     
Foreign exchange gain                                                           
reclassified from equity                  -               -               -     
Profit on liquidation of                                                        
subsidiaries                           (20)               -               -     
Loss on sale of subsidiaries             17               -               -     
Impairment of investments                 -               -               -     
Profit on sale of associate               -               -               -     
Impairment of investment in                                                     
associates                                -               -               -     
Impairment of property, plant                                                   
and equipment                           162              94               3     
Headline (loss)/earnings              (137)             207             539     
Discontinued operations                                                         
Net (loss)/profit                         -               -             (1)     
Adjusted for (net of tax):                                                      
Profit on sale of property,                                                     
plant and equipment                       -               -            (22)     
Headline (loss)/earnings                  -               -            (23)     
Total headline (loss)/earnings        (137)             207             516     
                                        Nine months ended       Year ended      
31 March     31 March(1)        30 June      
                                       2010            2009           2009      
                                (Unaudited)     (Unaudited)      (Audited)      
Total (loss)/earnings per                                                       
ordinary share (cents):                                                         
Basic (loss)/earnings                   (48)             656            707     
Fully diluted (loss)/earnings           (48)             653            704     
Headline (loss)/earnings                   5             275            262     
- from continuing operations               5             236            239     
- from discontinued operations             -              39             23     
                                  R million       R million      R million      
Reconciliation of headline                                                      
(loss)/earnings:                                                                
Continuing operations                                                           
Net (loss)/profit                      (206)           1 627          1 709     
Adjusted for (net of tax):                                                      
Profit on sale of property,                                                     
plant and equipment                      (3)           (924)          (975)     
Profit on sale of listed                                                        
investments                              (3)               -              -     
Fair value movement of listed                                                   
investments                                -               -             71     
Foreign exchange gain                                                           
reclassified from equity                (22)               -          (384)     
Profit on liquidation of                                                        
subsidiaries                            (20)               -                    
Loss on sale of subsidiaries              17               -              -     
Impairment of investments                  2               -                    
Profit on sale of associate                -               -            (1)     
Impairment of investment in                                                     
associates                                 -             112            112     
Impairment of property, plant                                                   
and equipment                            256             154            457     
Headline (loss)/earnings                  21             969            989     
Discontinued operations                                                         
Net (loss)/profit                          -           1 062          1 218     
Adjusted for (net of tax):                                                      
Profit on sale of property,                                                     
plant and equipment                        -           (901)        (1 121)     
Headline (loss)/earnings                   -             161             97     
Total headline (loss)/earnings            21           1 130          1 086     
(1) The comparative figures are re-presented due to Mount Magnet being          
reclassified as part of continuing operations. See note 3 in this regard.       
5.   Inventories                                                                
During the quarter ended 31 December 2009, the Group concluded two separate     
purchase agreements with Pamodzi Gold Free State (Proprietary) Limited (In      
Provisional Liquidation) (Pamodzi), for the purchase of a waste rock dump and a 
gold plant to the value of R120 million.                                        
The Group`s intention is to break up the plant and extract the gold in lock-up. 
The portion of inventory that is expected to be recovered more than twelve      
months after balance sheet date has been classified as non-current.             
6.   President Steyn and Target 3 assets                                        
The Group entered into two separate purchase agreements with Pamodzi for the    
purchase of Pamodzi`s Free State North and South Assets for a total             
consideration of R280 million.                                                  
The Group had an obligation in terms of the agreements to pay an amount equal   
to the purchase consideration into an escrow account.                           
On 18 February 2010 the sale of assets agreements became unconditional and the  
purchase consideration was released from the escrow account to the liquidators. 
The cost of the assets was capitalised to property, plant and equipment.        
7.   Borrowings                                                                 
                    31 March     31 December       30 June        31 March      
                        2010            2009          2009            2009      
                 (Unaudited)                     (Audited)     (Unaudited)      
R million       R million     R million       R million      
Total long-term                                                                 
borrowings                780             565           110             159     
Total current                                                                   
portion of                                                                      
borrowings                221             460           252           2 681     
Total                                                                           
borrowings(1)(2)(3)     1 001           1 025           362           2 840     
(1)   On 11 December 2009, the Company entered into a loan facility with        
     Nedbank Limited, comprising of a Term Facility of R900 million and a       
     Revolving Credit Facility of R600 million. Interest accrues on a           
     day-to-day basis over the term of the loan at a variable interest rate,    
which is fixed for a three month period, equal to JIBAR plus 3.5%.         
     Interest is repayable quarterly.                                           
     The Term Facility is repayable bi-annually in equal instalments of         
     R90 million over five years. The Revolving Credit Facility is repayable    
after three years. The Group drew down R650 million of the Term Facility   
     during December 2009 and a further R250 million during March 2010.         
(2)   Included in the borrowings is R99 million (December 2009: R102 million;   
     June 2009: R106 million; March 2009: R168 million) owed to Westpac Bank    
Limited in terms of a finance lease agreement. The future minimum lease    
     payments are as follows:                                                   
                    31 March     31 December       30 June        31 March      
                        2010            2009          2009            2009      
(Unaudited)                     (Audited)     (Unaudited)      
                   R million       R million     R million       R million      
Due within one                                                                  
year                       33              32            30              45     
Due between one                                                                 
and five years             69              73            80             133     
                         102             105           110             178      
Future finance                                                                  
charges                   (3)             (3)           (4)            (10)     
Total future                                                                    
minimum lease                                                                   
payments                   99             102           106             168     
(3)   On 31 March 2010, the Group settled a term loan advanced by Nedbank       
     Limited on 30 July 2003 to African Vanguard Resources (Doornkop)           
     (Proprietary) Limited (AVRD). This settlement constitute one part of the   
     purchase consideration in a purchase agreement concluded by the Group on   
19 March 2010 (refer to note 10 in this regard). The settlement value      
     amounted to R244 million. Interest accrued during the nine months ended    
     31 March 2010 amounted to R17 million (31 March 2009: R22 million).        
8.   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.                    
9.   Commitments and contingencies                                              
31 March     31 December       30 June        31 March      
                        2010            2009          2009            2009      
                 (Unaudited)                     (Audited)     (Unaudited)      
                   R million       R million     R million       R million      
Capital                                                                         
expenditure                                                                     
commitments                                                                     
Contracts for                                                                   
capital                                                                         
expenditure               375             411           478             790     
Authorised by the                                                               
directors but not                                                               
contracted for          1 281           1 771           734           1 478     
                       1 656           2 182         1 212           2 268      
This expenditure will be financed from existing resources and borrowings where  
necessary.                                                                      
Contingent liability                                                            
Class action. On 18 April 2008, Harmony Gold Mining Company Limited was made    
aware that it has been named as a defendant in a lawsuit filed in the U.S.      
District Court in the Southern District of New York on behalf of certain        
purchasers and sellers of Harmony`s American Depositary Receipts (ADRs) with    
regard to certain of its business practises. Harmony has retained legal         
counsel.                                                                        
During January 2009, the plaintiff filed an Amended Complaint with the United   
States District Court ("Court"). Subsequently, the Company filed a Motion to    
Dismiss all claims asserted in the Class Action Case. On 19 March 2010 the      
Court denied the Company`s application for dismissal and subsequently the       
Company filed a Motion for Reconsideration in which it requested the Court to   
reconsider its judgement. This matter was heard on 27 April 2010 and the        
Company`s request for reconsideration of judgement was denied. The parties are  
scheduled to meet during May 2010 to agree on the scheduling of the matter. It  
is currently not possible to estimate if there will be a financial effect, or   
what that effect might be.                                                      
10. Subsequent events                                                           
On 19 March 2010, Harmony Gold Mining Company Limited (Harmony) concluded an    
agreement with AVRD, for the purchase of its 26% share of the mining titles on  
the Doornkop South Reef for a total consideration of R398 million. The purchase 
consideration was partially settled by the payment of a cash amount equal to    
the AVRD Nedbank loan of R244 million on 31 March 2010, which was initially     
guaranteed by Harmony and certain of its subsidiaries. The remaining purchase   
consideration of R154 million was settled on 28 April 2010 when the deed of     
cession was registered in the Mining Titles Registration Office, with the issue 
of 2 162 359 Harmony shares. An amount equal to the value of shares was         
included under reserves for the current quarter ended 31 March 2010.            
In terms of the purchase agreement 975 419 Harmony shares are held in escrow    
until 1 May 2014.                                                               
11. Segment report                                                              
The segment report follows on page 25.                                          
12. Reconciliation of segment information to consolidated income statements and 
balance sheet                                                                   
                                                  31 March        31 March      
                                                      2010            2009      
(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                                   -             614     
Production costs from:                                                          
Discontinued operations                                   -             447     
Reconciliation of operating profit to gross                                     
profit:                                                                         
Total segment revenue                                 8 239           9 447     
Total segment production costs                      (6 254)         (6 184)     
Operating profit as per segment report                1 985           3 263     
Less: Discontinued operations                             -           (167)     
Operating profit as per segment report                1 985           3 096     
Cost of sales items other than production costs     (1 591)         (1 236)     
Amortisation and depreciation                         (995)           (921)     
Impairment of assets                                  (300)           (154)     
Employment termination and restructuring costs        (123)            (39)     
Share-based payments                                  (108)            (74)     
Rehabilitation costs                                   (15)             (9)     
Care and maintenance costs of restructured                                      
shafts                                                 (50)            (38)     
Provision for former employees` post retirement                                 
benefits                                                  -             (1)     
Gross profit as per income statements *                 394           1 860     
Reconciliation of total segment mining assets                                   
to consolidated property, plant and equipment:                                  
Property, plant and equipment not allocated to                                  
a segment:                                                                      
Mining assets                                           767             605     
Undeveloped property                                  5 328           4 809     
Other non-mining assets                                 346              53     
Less: Non-current assets previously classified                                  
as held-for-sale                                          -           (268)     
                                                     6 441           5 199      
* 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 NINE MONTHS ENDED 31 MARCH 2010 Rand/Metric) (Unaudited) 
Production     Operating        Mining      
                        Revenue           cost        profit        assets      
                      R million      R million     R million     R million      
Operations                                                                      
South Africa                                                                    
Underground                                                                     
Bambanani (2)                762            536           226           947     
Doornkop                     373            298            75         2 473     
Evander                      736            690            46           909     
Joel                         426            289           137           138     
Kusasalethu                1 026            849           177         2 943     
Masimong                     916            524           392           745     
Phakisa                      250            225            25         3 983     
Target (2)                   627            479           148         2 502     
Tshepong                   1 308            837           471         3 646     
Virginia                   1 137          1 094            43           659     
Surface                                                                         
All surface operations                                                          
(1)                          678            433           245           128     
Total South Africa         8 239          6 254         1 985        19 073     
International                                                                   
Papua New Guinea (2)           -              -             -         3 872     
Mount Magnet                   -              -             -            17     
Total international            -              -             -         3 889     
Total operations           8 239          6 254         1 985        22 962     
Reconciliation of the                                                           
segment information                                                             
to the consolidated                                                             
income statement and                                                            
balance sheet (refer                                                            
to note 12)                    -              -                       6 441     
                          8 239          6 254                      29 403      
Capital     Kilograms     Tonnes      
                                      expenditure      produced     milled      
                                        R million            kg      t`000      
Operations                                                                      
South Africa                                                                    
Underground                                                                     
Bambanani (2)                                  114         2 938        399     
Doornkop                                       238         1 442        401     
Evander                                        137         2 898        642     
Joel                                            70         1 628        348     
Kusasalethu                                    344         4 044        721     
Masimong                                       133         3 639        681     
Phakisa                                        368           955        244     
Target (2)                                     269         2 578        578     
Tshepong                                       191         5 031      1 174     
Virginia                                       142         4 495      1 415     
Surface                                                                         
All surface operations (1)                      56         2 683      6 661     
Total South Africa                           2 062        32 331     13 264     
International                                                                   
Papua New Guinea (2)                           467         1 318          -     
Mount Magnet                                     -             -          -     
Total international                            467         1 318          -     
Total operations                             2 529        33 649     13 264     
Reconciliation of the segment                                                   
information to the consolidated                                                 
income statement and                                                            
balance sheet (refer to note 12)                                                
Notes:                                                                          
(1) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.        
(2) Production statistics for Hidden Valley, President Steyn and Target 3       
(previously known as Lorraine 3) are shown for information purposes. These      
mines are in a build-up phase and revenue and costs are currently capitalised   
until commercial levels of production are reached.                              
SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2009 (Rand/Metric) (Unaudited)
                                    Production     Operating        Mining      
Revenue           cost        profit        assets      
                      R million      R million     R million     R million      
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani                    728            499           229           671     
Doornkop                     248            214            34         2 396     
Evander                    1 166            736           430         1 185     
Joel                         394            278           116           131     
Kusasalethu                1 090            827           263         2 642     
Masimong                     907            488           419           674     
Phakisa                      117             72            45         3 541     
Target                       500            385           115         2 730     
Tshepong                   1 407            743           664         3 637     
Virginia                   1 568          1 095           473           932     
Surface                                                                         
All surface operations (1)   708            400           308           148     
Total South Africa         8 833          5 737         3 096        18 687     
International                                                                   
Papua New Guinea (2)           -              -             -         3 949     
Mount Magnet                   -              -             -           268     
Total international            -              -             -         4 217     
Total continuing                                                                
operations                 8 833          5 737         3 096        22 904     
Discontinued operations                                                         
Cooke operations             614            447           167             -     
Total discontinued                                                              
operations                   614            447           167             -     
Total operations           9 447          6 184         3 263        22 904     
Reconciliation of the                                                           
segment information                                                             
to the consolidated                                                             
income statement and                                                            
balance sheet (refer                                                            
to note 12)                (614)          (447)                       5 199     
                          8 833          5 737                      28 103      
Capital     Kilograms     Tonnes      
                                      expenditure      produced     milled      
                                        R million           kg*     t`000*      
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani                                       34         2 904        379     
Doornkop                                       302           919        401     
Evander                                        154         4 564        877     
Joel                                            38         1 551        382     
Kusasalethu                                    311         3 953        729     
Masimong                                        97         3 627        668     
Phakisa                                        357           447        118     
Target                                         249         1 915        477     
Tshepong                                       181         5 523      1 027     
Virginia                                       127         6 276      1 696     
Surface                                                                         
All surface operations (1)                      52         2 755      6 470     
Total South Africa                           1 902        34 434     13 224     
International                                                                   
Papua New Guinea (2)                         1 376             -          -     
Mount Magnet                                     -             -          -     
Total international                          1 376             -          -     
Total continuing operations                  3 278        34 434     13 224     
Discontinued operations                                                         
Cooke operations                                87         2 500      1 287     
Total discontinued operations                   87         2 500      1 287     
Total operations                             3 365        36 934     14 511     
Reconciliation of the segment                                                   
information to the consolidated                                                 
income statement and                                                            
balance sheet (refer to note 12)                                                
Notes:                                                                          
(1) Includes Kalgold, Phoenix and Dumps.                                        
(2) Included in the capital expenditure is an amount of R1 137 million          
contributed by Newcrest in terms of the farm-in agreement.                      
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                                                               
South Africa                                                                    
Telephone          :   +27 11 411 2000                                          
Website            :   http://www.harmony.co.za                                 
Directors                                                                       
P T Motsepe (Chairman)*                                                         
G P Briggs (Chief Executive Officer)                                            
H O Meyer (Financial Director)                                                  
H E Mashego (Executive Director: Organisational                                 
            Development and Transformation)                                     
F Abbott (Executive 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 4381                                             
United Kingdom Registrars                                                       
Capita Registrars                                                               
The Registry                                                                    
34 Beckenham Road                                                               
Bechenham                                                                       
Kent BR3 4TU                                                                    
United Kingdom                                                                  
Telephone       : 0871 664 0300 (UK) (calls cost 10p a minute plus network      
extras, lines are open 8:30 am to 5:30 pm Monday to Friday)                     
or +44 (0) 20 8639 3399        (calls from overseas)                            
Fax             :   +44 (0) 20 8639 2220                                        
ADR Depositary                                                                  
BNY Mellon                                                                      
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: 10/05/2010 08:00:01 Supplied by www.sharenet.co.za                     
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