HAR - Harmony Gold Mining Company Limited - Results for the fourth quarter and Release Date: 16/08/2010 08:00:04 Code(s): HAR HAR - Harmony Gold Mining Company Limited - Results for the fourth quarter and
year ended 30 June 2010
HARMONY
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 fourth quarter and year ended 30 June 2010
SHAREHOLDER INFORMATION
Issued ordinary share capital at 428 654 779
30 June 2010 shares
MARKET CAPITALISATION
At 30 June 2010 (ZARm) 34 888.2
At 30 June 2010 (US$m) 4 530.3
Harmony ordinary share
and ADR prices
12 month high (1 July 2009 to
30 June 2010) for ordinary shares R87.51
12 month low (1 July 2009 to
30 June 2010) for ordinary shares R68.65
12 month high (1 July 2009 to
30 June 2010) for ADRs US$11.98
12 month low (1 July 2009 to
30 June 2010) for ADRs US$8.50
Free float
Ordinary shares 100%
ADR ratio 1:1
JSE Limited HAR
Range for quarter
(1 April 2010 to R68.65 -
30 June 2010 - closing prices) R81.40
Average volume for
the quarter (1 April 2010 to 1 918 132
30 June 2010) shares per day
New York Stock
Exchange, Inc. HMY
Range for quarter
(1 April 2010 to US$9.04 -
30 June 2010 - closing prices) US$ 10.57
Average volume for
the quarter (1 April 2010 to 1 072 003
30 June 2010) shares per day
Key features for the financial year
- Positioned to deliver
- Maintain healthy operating margin at 26%
- Reserve levels maintained
- Dividend of 50 SA cents
Key features for the quarter
- 7 fatalities
more to be done on safety
- Significant increase in resource in Wafi-Golpu
- Hidden Valley in commercial production
- Cash operating profit 49% higher at R942 million
- Growth assets increasing in production
Financial summary for the fourth quarter and year ended 30 June 2010
Quarter Quarter
June March Q-on-Q
2010 2010 variance
Gold - kg 10 784 10 366 4.0
produced (1) - oz 346 714 333 276 4.0
Cash costs - R/kg 201 460 199 859 (0.8)
- US$/oz 831 829 (0.2)
Gold sold - kg 10 739 10 120 6.1
- oz 345 266 325 366 6.1
Gold price - R/kg 295 580 267 469 10.5
received - US$/oz 1 219 1 109 9.9
Cash operating - R million 942 634 48.6
profit - US$ million 125 84 48.8
Basic earnings/ - SAc/s 7 (65) >100
(loss) per share* - USc/s 1 (9) >100
Headline (loss)/ - Rm (27) (103) 74
profit* - US$m (4) (14) 71
Headline (loss)/ - SAc/s (6) (24) 75
earnings per share* - USc/s (1) (4) 75
Adjusted - SAc/s 13 4 >100
headline earnings - USc/s 2 1 100
per share(2)
Exchange rate* - R/US$ 7.54 7.50 0.6
12 Months 12 Months Year-to
June June year
2010 2009 variance
Gold - kg 44 433 45 437 (2.2)
produced (1) - oz 1 428 544 1 460 831 (2.2)
Cash costs - R/kg 195 162 168 661 (15.7)
- US$/oz 801 583 (37.4)
Gold sold - kg 43 969 45 833 (4.1)
- oz 1 413 633 1 473 562 (4.1)
Gold price - R/kg 266 009 250 826 6.1
received - US$/oz 1 092 867 25.9
Cash operating - R million 2 926 3 839 (23.8)
profit - US$ million 387 427 (9.4)
Basic earnings/ - SAc/s (38) 460 <(100)
(loss) per share* - USc/s (5) 54 <(100)
Headline (loss)/ - Rm 4 1 260 (99.7)
profit* - US$m - 140 (100)
Headline (loss)/ - SAc/s 1 304 (99)
earnings per share* - USc/s - 34 (100)
Adjusted - SAc/s 49 314 (84.4)
headline earnings - USc/s 6 35 (80)
per share(2)
Exchange rate* - R/US$ 7.58 9.00 (15.8)
* Reported amounts include continued operations only.
(1) Production statistics for President Steyn, Target 3 (previously known as
Lorraine 3) and a portion of Hidden Valley have been included. These mines are
in a build-up phase and revenue and costs are currently capitalised. Revenue
capitalised includes President Steyn - 29 kg (March 2010 - 4 kg), Target 3 92
kg (March 2010 - 25 kg) and Hidden Valley - 120 kg (March 2010 - 550 kg).
(2) Headline earnings/(loss) adjusted for employee termination and
restructuring cost.
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 2010 are
available on our website at www.harmony.co.za.
Chief Executive Officer`s Review
Introduction
A key feature of the quarter and year under review has been the restructuring
of Harmony`s asset base in line with our stated strategy to deliver safe,
profitable and sustainable ounces. Significant steps taken during the financial
year to improve the quality of our portfolio include:
Closure of the Brand 3, Merriespruit 3, Harmony 2, Evander 2, 5 and 7 shafts
as their orebodies reached the end of their economic lives;
Continued investment in exploration and development at the company`s Phakisa,
Kusasalethu, Doornkop and Hidden Valley growth projects, reaffirming their
robust life-of-mine plans and reserve positions;
Acquisition of Pamodzi Gold Mining Limited`s (in liquidation) Free State
assets which includes President Steyn 1 and 2 shafts, Lorraine 3, Freddies 7
and 9, the Steyn plant and surface stockpiles;
An international exploration programme resulting in the discovery of a new
zone of mineralisation adjacent to the main Golpu resource in Papua New Guinea
(PNG);
The reassessment of the Evander operations and projects. Following a
review of the economic viability of the Evander South project under
various scenarios, it has been excluded from Harmony`s reserves. The Libra
project (retreating the Evander tailings) has been included in the reserve
statement;
Post year-end, Mount Magnet in Western Australia was sold, which allows us to
focus on growing, developing and operating our portfolio of quality assets in
PNG.
Safety
It is with deep regret we report that seven of our colleagues died in
work-related incidents during the quarter. Those who died were: Paseka Lechaka,
loader operator and Albert Lebetsa, rock drill operator at Tshepong; Vuyo Mali,
development team leader and Bokang Mariti, miner`s assistant at Phakisa; Mamayo
Bangani, winch driver at Merriespruit 1; Volakhe Bezena, rock drill operator at
Joel; and Loti Mohave, an artisan assistant at Doornkop.
We extend our deepest condolences to their families, friends and colleagues.
Our focus on safety remains of paramount importance and a core pillar of our
corporate strategy and it is clear we have ground to cover in reaching the
standards we aspire to. Please also see the section on Safety and Health on
page 6.
Growth
A pillar in our growth strategy is aimed at acquiring long-life assets that
offer higher grades. During the past year we assessed assets in Africa and
South East Asia, which could potentially fit the Harmony portfolio. However we
did not identify any projects of sufficient value at a reasonable price. As a
result we have decided to increase our exploration expenditure, so as to
enhance our competitive edge at an earlier stage in the pipeline, to expand our
geographic diversity and to leverage off our existing base in one of the
world`s premier new gold regions, PNG. While returns may only be generated in
the long-term, we do have an existing track record of success in PNG, with an
exceedingly low cost of exploration - in the region of $10/oz discovery.
In August 2010, we announced a significant increase in the mineral resource at
the Wafi-Golpu porphyry copper-gold project in PNG, which is part of the
company`s 50/50 joint venture with Newcrest Mining Limited. This mineral
resource for Wafi-Golpu now contains 16 million ounces (Moz) of gold and 4.8
million tonnes (Mt) of copper. Expressed as gold equivalents, this resource
amounts to 38.5 Moz of gold*. This indicates an exciting and promising future
for this project and also provides a significant opportunity for Harmony
shareholders.
These results have a profoundly positive impact on our resource base and
drilling results continue to prove that investing in exploration was a very
good long term decision.
While we are seeking greater diversity, we will continue to invest in our
growth projects. We believe these assets will become the best gold mines in
South Africa in the next three years and provide the necessary cash flow to
allow us to fund the growth in Wafi/Golpu and other opportunities that may
arise. We remain committed to South Africa and see our South African assets as
an important part of our portfolio. Harmony`s management has extensive
knowledge of and skills in deep level gold mining. South African mining
companies have a global footprint and are amongst the top gold producers in the
world and we believe in maintaining healthy relationships with government
departments, unions and our stakeholders.
Gold market
During the past quarter, the gold price has remained robust in dollar terms and
we have even benefited from a higher R/kg gold price. Year-on-year the US
dollar gold price received increased by 25.9%, from an average of US$867/oz for
the previous financial year to US$1 092/oz during the past year. During the
same period the rand strengthened against the US dollar by 15.8% from R9.00/US$
to R7.58/US$, resulting in an average net increase of 6.1% in the rand per
kilogram price received from R250 826/kg to R266 009/kg.
Quarter-on-quarter, the R/kg gold price received for the fourth quarter
increased by 10.5% to R295 580/kg from R267 469/kg in the third quarter. The US
dollar gold price increased by 9.9% to an average of US$1 219/oz during the
quarter with the rand remaining fairly constant at R7.54/US$ compared to
R7.50/US$ in the third quarter.
The rand has strengthened against the US dollar throughout the year, which has
continued to place pressure on our margins. Our planning for the 2011 financial
year is done at a gold price of R250 000/kg, assuming a gold price of $950/oz
and an exchange rate of R8.19/US$, with financial modelling done at R275
000/kg.
It is our view that the global financial markets have not yet stabilised and we
believe that gold will remain a safe haven. It is likely then that the gold
price in dollar terms will increase in the medium to long term.
* Gold equivalents based on US$ 950 oz Au, $4,412 /t Cu at 100% recovery for
both metals.
Union relations
Harmony continues to work closely with its representative unions.
During the past quarter in particular, this relationship has assisted in
achieving two important initiatives, namely:
the implementation of a `food ban` at the Free State operations to curb
criminal mining; and
the ground-breaking profitability agreement to save jobs at Merriespruit 1.
Merriespruit 1 will continue to operate, provided that it does not make a loss
(on a total cost basis, including any capital expenditure) for two consecutive
months and total costs remain under R250 000/kg. Management, together with the
unions, will closely monitor the performance of this shaft.
Reserves and Resources
In early August we announced the group`s updated reserves and resource
statement and we are pleased to report that Harmony maintained its reserves at
48.1 Moz, while focusing on producing higher quality, safe ounces at a
profitable and sustainable level. The reserves are at a similar level to the
previous year`s declared reserve, despite shaft closures and depletion which
occurred during the year. Attributable gold mineral resources declined
year-on-year by 9% to 189.2 Moz. A detailed resource and reserve declaration
will be published in the FY2010 annual report, which will be made available
to shareholders in October 2010.
Operational results for the June quarter
Tonnes milled for South African operations for the quarter increased by 3.5%
when compared to the previous quarter. The recovered grade remained fairly
constant at 2.24g/t. The underground grade improved by 5.6%.
Cash operating cost increased by R168 million, representing an increase of
8.6% compared to the third quarter. The main contributor to this increase was
Hidden Valley`s first commercial quarter which resulted in a R114 million cost,
an increase in electricity, which rose by R80 million owing largely to tariff
increases as well as the first month of winter rates. We also made a
considerable saving following the closure of a number of operations during the
past two quarters, as well as reducing costs at the Virginia operations by
approximately R100 million in the fourth quarter.
The royalty expense also increased from R5 million in the previous quarter to
R28 million in the current quarter as this was the first full quarter for these
costs.
The increase in costs was offset against the increase in gold production, and
resulted in an increase in our rand per kilogram unit cost from R199 859/kg to
R201 460/kg for the fourth quarter.
As planned, capital expenditure rose by 14.1% to R824.3 million in the quarter
under review. The main contributors to this were:
an increase in the expenditure on the recently acquired Pamodzi assets
accounting for a R46.7 million increase;
the purchase of emergency generators for the Free State operations totaling
R29 million; and
the repair of the plant conveyor at Doornkop and the purchase of a drill rig.
Gold production at Hidden Valley improved by 6% to 37,571 ounces (50%
attributable to Harmony) in comparison with the previous quarter, the results
were nonetheless disappointing as production was less than anticipated due to
commissioning constraints. See page 11 for more details. Commercial production
levels were reached in May 2010 and were declared for the last two months of
the quarter resulting in a cash operating profit of A$2.4 million.
Production outlook*
Production for the September 2010 quarter will be affected by the temporary
suspension of operations at Joel to allow for the completion of improvements to
the shaft bottom spillage arrangement at our Joel North Shaft. In addition,
production will also be negatively affected by a further 95 kilograms due to
the tragic explosion at Phakisa on 24 June 2010.
For the year ahead, we estimate gold production to be approximately
1.7 million ounces, total cost including capital to be at R260 000/kg and
total cash costs to be approximately R195 000/kg.
* This production outlook above is subject to the forward-looking statement
(refer to page 2). The estimated financial information has not been reviewed
and reported on by Harmony`s auditors in accordance with section 8.40 of the
listing requirements of the JSE Limited.
Dividends
We are pleased to declare a dividend of 50 SA cents per ordinary share for the
year ended 30 June 2010.
Listings
To streamline our listings, Harmony voluntarily terminated the listing of its
American Depository Receipts on the NASDAQ Stock Exchange on 9 June 2010 and
the NYSE Euronext Paris Stock Exchange towards the end of August 2010. Harmony
will continue to be listed on the JSE (HAR), New York Stock Exchange (HMY) and
the London Stock Exchange (HRM).
The way ahead
During the strategic planning process completed in June 2010, we determined
that a key factor in managing our operations going forward was to focus on
cashflows. This is an important measurement and operational teams were urged to
submit achievable plans that generate free cash. There are exceptions - such as
the projects which can only be completed by spending more capital.
Importantly, we have decided to revise our 2012 production target of 2.2 Moz to
2 Moz, with a significant emphasis on ensuring that these are 2 million
profitable ounces. This is in line with our strategic objectives, and takes
into consideration the closure of some of the Virginia and Evander shafts
sooner than had been planned. We do not expect further shaft closures with the
exception of Merriespruit 1 should it not comply with the two conditions
outlined in the profitability agreement.
Our South African assets will generate sufficient cash to fund our growth
ambitions. The Hidden Valley mine has been successfully commissioned. We are
currently busy with feasibility studies and concept studies at Wafi-Golpu and
outside of the joint venture, Harmony has acquired approximately 8 000 km2 of
exploration tenements, with promising upside potential.
Our key actions in order to achieve our targets in the coming year include our
continued focus on mining safely; improving productivity; improving the quality
of our ounces through clear development strategies, improved planning and short
interval controls. These actions, we believe will add value to our share price
which is currently underperforming, although it is currently one of the best
rated gold shares on the JSE.
We remain highly competitive, aiming for the lowest South African underground,
R/t costs.
In all, I am pleased to report on a satisfactory year. We have managed to
stabilise the company, with a clear focus on working towards achieving
sustainable profitability and generating earnings that fund dividends and
growth.
Chief Executive Officer
Graham Briggs
Financial overview
Cash operating profit was 49% higher at R942 million due to a 4% improvement in
production and an increase in gold the price received for the quarter of 11% to
R295 580/kg. This was offset by an increase in operating cost, which can be
attributed to electricity increases by Eskom and winter tariffs.
Earnings per share
Basic earnings per share increased from a loss of 69 SA cents to a profit of 3
SA cents per share. Similarly headline earnings improved form a loss of 27 SA
cents to a loss of 10 SA cents per share. This increase can mainly be
attributed to an increase in production and gold price received.
Revenue
Revenue increased to R3 045 million from R2 521 million resulting from an 11%
increase in gold price received and a 6% increase in kilograms sold resulting
from the higher production.
Costs
Total cash operating costs were R168 million or 8.6% higher at R2 124 million
due mainly to the inclusion of Hidden Valley`s operating cost for the first
time and higher electricity cost.
Disposal of Jeanette
The sale of Jeanette was concluded in the current quarter, generating R75
million cash for the group.
Discontinued operations
The Mount Magnet operation in Western Australia has been classified as a
discontinued operation and held-for-sale following a decision to sell the
operation. During July 2010 the group finalised negotiations to sell the
operation to Ramelius Resources Limited for a total consideration of R269
million (AUS$40 million).
Capital expenditure
Total capital expenditure was 14% higher at R824 million, R750 million
attributable to South African operations and R74 million to Hidden Valley.
Royalties
Royalty costs for the quarter amounted to R28 million following its
introduction in March 2010. Royalty costs for the previous quarter totalled
R4.7 million.
Notice of cash dividend
A dividend No. 81 of 50 cents per ordinary share, being the dividend for the
year ended 30 June 2010, has been declared payable on Monday, 20 September 2010
to those shareholders recorded in the books of the Company at the close of
business on Friday, 17 September 2010.
The dividend is declared in the currency of the Republic of South Africa.
Any change in address or dividend instruction to apply to this dividend must be
received by the company`s transfer secretaries or registrar not later than
Friday, 10 September 2010.
Last date to trade ordinary
shares cum dividend Friday, 10 September 2010
Ordinary shares trade
ex dividend Monday, 13 September 2010
Currency conversion date
in respect of the UK own
name shareholders Monday, 13 September 2010
Record date Friday, 17 September 2010
Payment date Monday, 20 September 2010
No dematerialisation or rematerialisation of share certificates may occur
between Monday, 13 September 2010 and Friday, 17 September 2010, both dates
inclusive, nor may any transfers between registers take place during this
period.
Employment termination and restructuring cost
R82 million incurred for the quarter was due to closure of Harmony 2 shaft
and Merriespruit 3 shaft.
Deferred tax
The deferred taxation expense includes a charge of R210 million which mainly
relates to the annual re-assessment of deferred tax rates.
Safety and health
Safety
Harmony`s aim continues to be the achievement of safe, profitable ounces.
During the past financial year and the quarter under review, management teams
worked hard to ensure that the safety culture is instilled at all operations,
through the implementation of behaviour based safety programmes. These
programmes have been effective and, while we are saddened and disappointed by
the fatal accidents that occurred during the year, we are pleased to report a
significant improvement in overall safety performance for the fiscal year 2010.
The Lost Time Injury Frequency Rate (LTIFR) improved 17% year on year from 9.35
to 7.72, which is a record low achievement for Harmony.
LTIFR also improved by 4% quarter-on-quarter from 7.95 to 7.67.
Harmony`s Reportable Injury Frequency Rate (RIFR) improved by 16% when compared
to the previous year (from 4.97 to 4.19), but regressed 7% from 4.15 in the
March 2010 quarter to 4.43 in the June 2010 quarter.
It is with great regret that we report seven fatalities during the June 2010
quarter and 21 fatalities for the financial year. The Fatal Injury Frequency
Rate (FIFR) remained unchanged year-on-year at 0.21, while it deteriorated from
0.04 to 0.28 quarter-on-quarter.
Post year-end, five of our colleagues tragically died in an underground
explosion at our Phakisa mine in the Free State. These employees were part of a
Mine Rescue Team that was busy investigating a suspected fire in a raise and
intensive investigations to establish the cause of the accident are continuing.
We express our sincere condolences to the families and colleagues of the
deceased.
The following operations achieved excellent safety results during the quarter:
Doornkop total operations: 1 500 000 fatality free shifts
(before fatality occurred)
Randfontein surface operations: 4 500 000 fatality free shifts
Kusasalethu total operations: 750 000 fatality free shifts
Bambanani total operations: 500 000 fatality free shifts
Kalgold total operations: 2 250 000 fatality free shifts.
Masimong total operations: 750 000 fatality free shifts.
The following operations completed the June 2010 quarter and financial year
2010 without an injury:
Evander Workshops
Joel Plant (operational for 7 months)
The following operations completed the June 2010 quarter and financial year
2010 without a lost time injury:
Kalgold Pit
Joel Plant (Operational for 7 months)
Harmony Plant
Evander Workshops and Services
Free State and Randfontein Commercial Services and Transport
We are committed to ensuring that these safety achievements are sustainable.
Safety will continue to receive priority attention at all Harmony`s operations
to ensure that we reduce and prevent fatal incidents.
The Department of Mineral Resources (DMR) has been vigilant in its approach to
ensure compliance with safety legislation. It has in some instances, however,
imposed stoppages for minor administrative reasons which negatively impacted
production and could have been resolved either immediately or in a short space
of time. During the quarter we lost 38 days of production, which resulted in
lost production of 361 kg (R108 million in revenue). We are working hard to
ensure that all safety standards are adhered to and met at all our operations.
We are proactively addressing the issue by constantly engaging with the DMR, to
minimise safety stoppages going forward.
Health
We have rolled out a proactive healthcare strategy at all our operations which
faces the health challenges of Sub-Saharan Africa head-on. This implies that
occupational health risks associated with deep level mining as well as the
health challenges of South Africa, such as HIV/AIDS, TB and other related
illnesses, are monitored, potential ailments identified and proactively treated
at all our operations.
We are pleased to announce that in terms of noise protection during the quarter
under review, the implementation of personalised hearing protection devices was
close to 90% complete. The installation of sound attenuators on mechanical
loaders has been scheduled and to date sound attenuators have been installed on
220 of approximately 357 mechanical loaders. Furthermore, all auxiliary
underground fans were silenced during the financial year and all rock drills
have been equipped with silencers.
Dust continues to be a problem and therefore we have increased silica quartz
sampling from January 2010 from the compulsory minimum of 5% to 10%. This
action was embarked upon to increase confidence levels in sample results and to
identify potential risk areas.
Below are some key highlights relating to Harmony`s proactive health care
approach during the quarter:
Kusasalethu Pilot - TB/HIV integration
During the quarter the healthcare team at Kusasalethu embarked on an
intensified drive with regard to TB, HIV and wellness. Special attention has
been given to identify and counsel defaulters at the Primary Healthcare Centre.
TB prevention
The National Kick TB in 2010 campaign is well on track with ongoing monitoring,
education, and ultraviolet lights being installed in all gathering areas at
Doornkop mine as well as all National Union of Mineworkers` offices in the
north region.
HIV/AIDS data
During the past quarter a group workshop was held to standardise the clinical
processes in the group with regards to HIV/AIDS treatment. The aim is to create
an integrated business approach to TB/HIV treatment and to create the necessary
system support in terms of reporting requirements.
Target mine pilot proactive health care project
During the June 2010 quarter, upgrading of the Target mine medical station was
completed and this has now been converted into a Health Hub. A fully integrated
proactive health care service will be delivered at the Health Hub with only
specialised services referred out. The Health Hub was officially opened on 27
July 2010.
Results for the fourth quarter and year ended 30 June 2010
CONDENSED CONSOLIDATED PRELIMINARY INCOME STATEMENT (Rand)
Quarter ended
30 June 31 March 1 30 June 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
Note R million R million R million
Continuing operations
Revenue 3 045 2 521 2 663
Cost of sales 2 (2 649) (2 581) (2 845)
Production cost (2 075) (1 882) (1 920)
Royalty expense (28) (5) -
Amortisation and
depreciation (383) (324) (332)
Impairment of assets (30) (196) (546)
Employment termination
and restructuring costs (82) (120) -
Other items (51) (54) (47)
Gross profit/(loss) 396 (60) (182)
Corporate, administration
and other expenditure (124) (83) (82)
Social investment expenditure (28) (25) (16)
Exploration expenditure (60) (66) (67)
Profit/(loss) on sale
of property, plant and equipment 101 (1) 79
Other income/(expenses) - net 40 (2) (151)
Operating profit/(loss) 325 (237) (419)
(Loss)/profit from associates (7) 5 49
Profit on sale of investment
in associate - - -
Impairment of investment in associate - - -
Loss on sale of investment in
subsidiary - (24) -
Fair value movement of
listed investments - - (102)
Profit on sale of
listed investments 5 - -
Impairment of investments (1) - -
Investment income 32 61 108
Finance cost (94) (60) (26)
Profit/(loss) before taxation 260 (255) (390)
Taxation (230) (25) 555
Normal taxation (20) (22) (91)
Deferred taxation (210) (3) 646
Net profit/(loss) from
continuing operations 30 (280) 165
Discontinued operations
(Loss)/profit from
discontinued operations 3 (17) (15) 73
Net profit/(loss) 13 (295) 238
Earnings/(loss) per
ordinary share (cents) 4
- Earnings/(loss) from
continuing operations 7 (65) 39
- (Loss)/earnings from
discontinued
operations (4) (4) 17
Total earnings/(loss)
per ordinary share
(cents) 3 (69) 56
Diluted
earnings/(loss) per
ordinary share (cents) 4
- Earnings/(loss) from
continuing operations 7 (65) 39
- (Loss)/earnings from
discontinued operations (4) (3) 17
Total diluted
earnings/(loss) per
ordinary share (cents) 3 (68) 56
Year ended
30 June 30 June 1
2010 2009
(Audited)
R million R million
Continuing operations
Revenue 11 284 11 496
Cost of sales (10 484) (9 659)
Production cost (8 325) (7 657)
Royalty expense (33) -
Amortisation and depreciation (1 375) (1 253)
Impairment of assets (331) (546)
Employment termination and restructuring costs (205) (39)
Other items (215) (164)
Gross profit/(loss) 800 1 837
Corporate, administration and other expenditure (381) (329)
Social investment expenditure (81) (33)
Exploration expenditure (219) (259)
Profit/(loss) on sale of property, plant and
equipment 104 947
Other income/(expenses) - net (58) (101)
Operating profit/(loss) 165 2 062
(Loss)/profit from associates 55 12
Profit on sale of investment in associate - 1
Impairment of investment in associate - (112)
Loss on sale of investment in subsidiary (24) -
Fair value movement of listed investments - (101)
Profit on sale of listed investments 10 -
Impairment of investments (3) -
Investment income 218 443
Finance cost (246) (212)
Profit/(loss) before taxation 175 2 093
Taxation (335) (188)
Normal taxation (83) (664)
Deferred taxation (252) 476
Net profit/(loss) from continuing operations (160) 1 905
Discontinued operations
(Loss)/profit from discontinued operations (32) 1 022
Net profit/(loss) (192) 2 927
Earnings/(loss) per ordinary share (cents)
- Earnings/(loss) from continuing operations (38) 460
- (Loss)/earnings from discontinued operations (8) 247
Total earnings/(loss) per ordinary share (cents) (46) 707
Diluted earnings/(loss) per ordinary share (cents)
- Earnings/(loss) from continuing operations (37) 458
- (Loss)/earnings from discontinued operations (8) 246
Total diluted earnings/(loss) per ordinary share
(cents) (45) 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 discontinued operation. See note 3 in this regard.
CONDENSED CONSOLIDATED PRELIMINARY STATEMENT OF OTHER COMPREHENSIVE INCOME
(Rand)
Quarter ended
30 June 31 March 30 June
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Net profit/(loss) for the period 13 (295) 238
Attributable to:
Owners of the parent 13 (295) 238
Non-controlling interest - - -
Other comprehensive (loss)/income
for the period, net of income tax (166) (27) (203)
Foreign exchange translation (161) 72 (205)
Repurchase of equity interest - (98) -
Mark-to-market of
available-for-sale investments (5) (1) 2
Total comprehensive
(loss)/income for the period (153) (322) 35
Attributable to:
Owners of the parent (153) (322) 35
Non-controlling interest - - -
Year ended
30 June 30 June
2010 2009
(Audited)
R million R million
Net profit/(loss) for the period (192) 2 927
Attributable to:
Owners of the parent (192) 2 927
Non-controlling interest - -
(229) (450)
Foreign exchange translation (127) (497)
Repurchase of equity interest (98) -
Mark-to-market of available-for-sale investments (4) 47
Total comprehensive (loss)/income for the period (421) 2 477
Attributable to:
Owners of the parent (421) 2 477
Non-controlling interest - -
CONDENSED CONSOLIDATED PRELIMINARY BALANCE SHEET (Rand)
At
30 June
2010
Note R million
ASSETS
Non-current assets
Property, plant and equipment 29 485
Intangible assets 2 210
Restricted cash 146
Restricted investments 1 742
Investments in financial assets 12
Investments in associates 385
Inventories 5 214
Trade and other receivables 75
34 269
Current assets
Inventories 5 987
Income and mining taxes 74
Trade and other receivables 1 003
Cash and cash equivalents 770
2 834
Assets of disposal groups classified as held-for-sale 3 233
3 067
Total assets 37 336
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 261
Other reserves 258
Retained earnings 690
29 209
Non-current liabilities
Deferred tax 3 534
Provision for environmental rehabilitation 1 692
Retirement benefit obligation and other provisions 169
Borrowings 6 981
6 376
Current liabilities
Borrowings 6 209
Trade and other payables 1 410
Income and mining taxes 9
1 628
Liabilities of disposal groups classified as
held-for-sale 3 123
1 751
Total equity and liabilities 37 336
Number of ordinary shares in issue 428 654 779
Net asset value per share (cents) 6 814
At At
31 March 30 June
2010 2009
(Unaudited) (Audited)
R million R million
ASSETS
Non-current assets
Property, plant and equipment 29 403 27 912
Intangible assets 2 210 2 224
Restricted cash 147 161
Restricted investments 1 726 1 640
Investments in financial assets 18 57
Investments in associates 391 329
Inventories 81 -
Trade and other receivables 76 75
34 052 32 398
Current assets
Inventories 1 152 1 035
Income and mining taxes 44 45
Trade and other receivables 1 217 885
Cash and cash equivalents 481 1 950
2 894 3 915
Assets of disposal groups classified as
held-for-sale - -
2 894 3 915
Total assets 36 946 36 313
EQUITY AND LIABILITIES
Share capital and reserves
Share capital 28 102 28 091
Other reserves 535 339
Retained earnings 676 1 095
29 313 29 525
Non-current liabilities
Deferred tax 3 326 3 251
Provision for environmental rehabilitation 1 704 1 530
Retirement benefit obligation and other
provisions 167 166
Borrowings 780 110
5 977 5 057
Current liabilities
Borrowings 221 252
Trade and other payables 1 418 1 460
Income and mining taxes 17 19
1 656 1 731
Liabilities of disposal groups classified
as held-for-sale - -
1 656 1 731
Total equity and liabilities 36 946 36 313
Number of ordinary shares in issue 426 191 965 425 986 836
Net asset value per share (cents) 6 878 6 931
The accompanying notes are an integral part of these condensed consolidated
financial statements.
CONDENSED CONSOLIDATED PRELIMINARY STATEMENT OF CHANGES IN EQUITY (Rand)
Share Other
capital reserves
R million R million
Balance - 30 June 2009 28 091 339
Issue of shares 170 -
Share-based payments - 148
Comprehensive loss for the year - (229)
Dividends paid - -
Balance as at 30 June 2010 28 261 258
Balance - 30 June 2008 25 895 676
Issue of shares 2 194 -
Share-based payments 2 113
Comprehensive income for the period - (450)
Balance as at 30 June 2009 28 091 339
Retained
earnings Total
R million R million
Balance - 30 June 2009 1 095 29 525
Issue of shares - 170
Share-based payments - 148
Comprehensive loss for the year (192) (421)
Dividends paid (213) (213)
Balance as at 30 June 2010 690 29 209
Balance - 30 June 2008 (1 832) 24 739
Issue of shares - 2 194
Share-based payments - 115
Comprehensive income for the period 2 927 2 477
Balance as at 30 June 2009 1 095 29 525
CONDENSED CONSOLIDATED PRELIMINARY CASH FLOW STATEMENT (Rand)
Quarter ended
30 June 31 March 30 June
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Cash flow from operating activities
Cash generated by operations 877 295 780
Interest and dividends received 32 66 107
Interest paid (38) (32) (65)
Income and mining taxes paid (55) (11) (428)
Cash generated by operating
activities 816 318 394
Cash flow from investing activities
Decrease/(increase) in restricted cash - 301 6
Net proceeds on disposal of
listed investments 8 - -
Proceeds on disposal of subsidiary - 24 -
Net (additions to)/disposals of
property, plant and equipment (708) (988) 1 093
Other investing activities (11) (8) 51
Cash (utilised)/generated by
investing activities (711) (671) 1 150
Cash flow from financing activities
Borrowings raised 300 250 -
Borrowings repaid (106) (260) (2 462)
Ordinary shares issued - net of
expenses 7 6 10
Dividends paid - - -
Cash generated/(utilised) by
financing activities 201 (4) (2 452)
Foreign currency translation
adjustments (17) 30 18
Net increase/(decrease) in cash
and cash equivalents 289 (327) (890)
Cash and cash equivalents -
beginning of period 481 808 2 840
Cash and cash equivalents - end
of period 770 481 1 950
Year ended
30 June 30 June
2010 2009
(Audited)
R million R million
Cash flow from operating activities
Cash generated by operations 1 580 2 813
Interest and dividends received 218 457
Interest paid (90) (280)
Income and mining taxes paid (125) (704)
Cash generated by operating activities 1 583 2 286
Cash flow from investing activities
Decrease/(increase) in restricted cash 15 (83)
Net proceeds on disposal of listed investments 51 -
Proceeds on disposal of subsidiary 24 -
Net (additions to)/disposals of property, plant and
equipment (3 493) 978
Other investing activities (13) (78)
Cash (utilised)/generated by investing activities (3 416) 817
Cash flow from financing activities
Borrowings raised 1 236 -
Borrowings repaid (391) (3 738)
Ordinary shares issued - net of expenses 18 1 953
Dividends paid (213) -
Cash generated/(utilised) by financing activities 650 (1 785)
Foreign currency translation adjustments 3 217
Net increase/(decrease) in cash and cash equivalents (1 180) 1 535
Cash and cash equivalents - beginning of period 1 950 415
Cash and cash equivalents - end of period 770 1 950
NOTES TO THE CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
FOR THE FOURTH QUARTER AND YEAR ENDED 30 JUNE 2010
1. Accounting policies
Basis of accounting
The condensed consolidated preliminary financial statements for the period
ended 30 June 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 preliminary
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 statement for the
year ended 30 June 2009.
2. Cost of sales
Quarter ended
30 June 31 March 1 30 June 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
R million R million R million
Production costs 2 075 1 882 1 920
Royalty expense 28 5 -
Amortisation and depreciation 383 324 332
Impairment of assets (2) 30 196 546
Rehabilitation costs 14 7 (3)
Care and maintenance cost of
restructured shafts 15 11 11
Employment termination and
restructuring costs 82 120 -
Share based payments 41 36 38
Provision for post-retirement benefits (19) - 1
Total cost of sales 2 649 2 581 2 845
Year ended
30 June 30 June 1
2010 2009
(Audited)
R million R million
Production costs 8 325 7 657
Royalty expense 33 -
Amortisation and depreciation 1 375 1 253
Impairment of assets (2) 331 546
Rehabilitation costs 29 5
Care and maintenance cost of restructured shafts 57 44
Employment termination and restructuring costs 205 39
Share based payments 148 113
Provision for post-retirement benefits (19) 2
Total cost of sales 10 484 9 659
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as part of discontinued 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. Disposal groups classified as held-for-sale and discontinued operations
The assets and liabilities relating to Mount Magnet operations (operations in
Western Australia) have been presented as held-for-sale following the approval
of management on 17 May 2010. These operations were also deemed to be
discontinued operations.
The conditions precedent for the sale of Mount Magnet assets were fulfilled and
the transaction became effective on 20 July 2010. A total purchase
consideration of R269 million (A$40 million) was received from Ramelius
Resources Limited In exchange for 100% of the issued shares of Mount Magnet.
A$3 million of this amount was received as a deposit and the balance on 20 July
2010. The Group recognised a total profit of R113 million (A$17 million) which
was recognised in July 2010. Consequently, the income statement, balance sheet
and earnings per share amounts for all comparative periods have been
re-presented taking this change into account.
4. Earnings/(loss) per ordinary share
Earnings/(loss) per ordinary share is calculated on the weighted average number
of ordinary shares in issue for the quarter ended 30 June 2010: 427.6 million
(31 March 2010: 426.1 million, 30 June 2009: 425.7 million), and the year ended
30 June 2010: 426.4 million (30 June 2009: 414.1 million).
The fully diluted earnings/(loss) per ordinary share is calculated on weighted
average number of diluted ordinary shares in issue for the quarter ended 30
June 2010: 429.1 million (31 March 2010: 429.6 million, 30 June 2009: 427.5
million), and the year ended 30 June 2010:
427.8 million (30 June 2009: 416.0 million).
Quarter ended
30 June 31 March 1 2 30 June 1
2010 2010 2009
(Unaudited) (Unaudited) (Unaudited)
Total earnings/(loss) per
ordinary share (cents):
Basic earnings/(loss) 3 (69) 56
Fully diluted earnings/(loss) 3 (68) 56
Headline (loss)/earnings (10) (27) 108
- from continuing operations (6) (24) 139
- from discontinued operations (4) (3) (31)
Diluted headline
(loss)/earnings (10) (27) 107
- from continuing operations (6) (24) 138
- from discontinued operations (4) (3) (31)
R million R million R million
Reconciliation of headline
(loss)/earnings:
Continuing operations
Net profit/(loss) 30 (280) 165
Adjusted for (net of tax):
Profit on sale of property,
plant and equipment (80) (2) (87)
Profit on sale of listed
investments (4) - -
Fair value movement of listed
investments - - (9)
Foreign exchange gain
reclassified from equity - - -
Loss on sale of subsidiaries - 17 -
Impairment of investments 1 - -
Profit on sale of associate - - -
Impairment of investment in
associates - - -
Impairment of property, plant
and equipment 26 162 519
Headline (loss)/earnings (27) (103) 588
Discontinued operations
Net (loss)/profit (17) (15) 73
Adjusted for (net of tax):
Loss/(Profit) on sale of
property, plant and equipment - 1 10
(Reversal of impairment)/impairment
of property, plant and equipment - - (216)
Headline loss (17) (14) (133)
Total headline (loss)/earnings (44) (117) 455
Year ended
30 June 30 June 1
2010 2009
(Audited)
Total earnings/(loss) per ordinary share (cents):
Basic earnings/(loss) (46) 707
Fully diluted earnings/(loss) (45) 704
Headline earnings/(loss) (7) 262
- from continuing operations 1 304
- from discontinued operations (8) (42)
Diluted headline (loss)/earnings (7) 261
- from continuing operations 1 303
- from discontinued operations (8) (42)
R million R million
Reconciliation of headline (loss)/earnings:
Continuing operations
Net profit/(loss) (160) 1 905
Adjusted for (net of tax):
Profit on sale of property, plant and equipment (83) (962)
Profit on sale of listed investments (7) -
Fair value movement of listed investments - 71
Foreign exchange gain reclassified from equity (22) (384)
Loss on sale of subsidiaries 17 -
Impairment of investments 3 -
Profit on sale of associate - (1)
Impairment of investment in associates - 112
Impairment of property, plant and equipment 256 519
Headline (loss)/earnings 4 1 260
Discontinued operations
Net (loss)/profit (32) 1 022
Adjusted for (net of tax):
Loss/(Profit) on sale of property, plant and
equipment (1) (1 134)
(Reversal of impairment)/impairment of property,
plant and equipment - (62)
Headline loss (33) (174)
Total headline (loss)/earnings (29) 1 086
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as discontinued operation. See note 3 in this regard.
(2) The comparative figures have been adjusted to account for a classification
error on the profit relating to the sale by African Vanguard Resources Doornkop
(AVRD) of its share in Doornkop Mineral Rights to Harmony Gold MIning Company
Limited. The profit was included in other reserves.
5. Inventories
During the year, 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. Gold inventory for all other group operations have been valued
at year end at the lower of cost and net realisable value in accordance with
the group`s accounting policy on inventories. The portion of gold inventory
that is expected to be recovered more than twelve months after balance sheet
date has been classified as non-current.
6. Borrowings
30 June 31 March 30 June
2010 2010 2009
(Unaudited) (Audited)
R million R million R million
Total long-term borrowings 981 780 110
Total current portion of borrowings 209 221 252
Total borrowings (1) (2) (3) 1 190 1 001 362
(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 5 years, the first instalment being paid on 30 June 2010. The Revolving
Credit Facility is repayable after 3 years. During the quarter the Group drew
down R300 million of the Revolving Credit Facility.
(2) Included in the borrowings is R87 million (March 2010: R99 million; June
2009: R106 million) owed to Westpac Bank Limited in terms of a finance lease
agreement. The future minimum lease payments are as follows:
30 June 31 March 30 June
2010 2010 2009
(Unaudited) (Audited)
R million R million R million
Due within one year 32 33 30
Due between one and five years 58 69 80
90 102 110
Future finance charges (3) (3) (4)
Total future minimum lease payments 87 99 106
(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. The settlement
value amounted to R244 million. Interest accrued during the nine months ended
31 March 2010 amounted to R17.5 million (31 March 2009: R22 million).
7. Commitments and contingencies
30 June 31 March 30 June
2010 2010 2009
(Unaudited) (Audited)
R million R million R million
Capital expenditure commitments
Contracts for capital expenditure 335 375 478
Authorised by the directors but not
contracted for 1 006 1 281 734
1 341 1 656 1 212
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 or may be 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 Depository Receipts (ADRs)
and options with regard to certain of its business practices. 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 company is
defending the matter and the legal process is taking its course. It is
currently not possible to estimate if there will be a financial effect, or what
that effect might be.
8. Subsequent events
Sale of Mount Magnet
On 20 July 2010, the Group concluded an agreement with Ramelius Resources
Limited to sell its 100% share in Mt Magnet Gold NL (Mount Magnet) for a total
consideration of R269 million (A$40 million (US$35 million)). The Group
recognised a profit of R113 million (A$17 million (US$15 million)). Refer to
note 3 in this regard.
Dividends
On 13 August 2010, the Board of Directors approved a final dividend for the
2010 financial year of 50 SA cents per share. The total dividend amounts to
R214 million. As this dividend was declared after the reporting date, it has
not been reflected in the financial statements for the period ended 30 June
2010.
9. Segment report
The segment report follows after note 11.
10. Reconciliation of segment information to consolidated income statements and
balance sheet
30 June 30 June 1
2010 2009
(Audited)
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 11 284 12 110
Total segment production costs (8 358) (8 104)
Operating profit as per segment report 2 926 4 006
Less: Discontinued operations - (167)
Operating profit as per segment report 2 926 3 839
Cost of sales items other than production costs and
royalty expense (2 126) (2 002)
Amortisation and depreciation (1 375) (1 253)
Impairment of assets (331) (546)
Employment termination and restructuring costs (205) (39)
Share-based payments (148) (113)
Rehabilitation costs (29) (5)
Care and maintenance costs of restructured shafts (57) (44)
Provision for post retirement benefits 19 (2)
Gross profit as per income statements * 800 1 837
Reconciliation of total segment mining assets to
consolidated property, plant and equipment:
Property, plant and equipment not allocated to a segment:
Mining assets 786 552
Undeveloped property 5 139 5 139
Other non-mining assets 72 63
Less: Non-current assets classified as held-for-sale (226) -
5 771 5 754
(1) The comparative figures are re-presented due to Mount Magnet being
reclassified as discontinued operations. See note 3 in this regard.
* The reconciliation was done up to the first recognisable line item on the
income statement. The reconciliation will follow the income statement after
that.
11. Audit review
The condensed consolidated preliminary financial statements for the year ended
30 June 2010 have been reviewed in accordance with the International Standards
on Review Engagements 2410 - "Review of interim financial information performed
by the independent Auditors of the entity" by PricewaterhouseCoopers Inc. Their
unqualified review opinion is available for inspection at the company`s
registered office.
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2010 (Rand/Metric)
Production Operating Mining
Revenue cost profit assets
R million R million R million R million
Continuing operations
South Africa
Underground
Bambanani (2) 1 114 745 369 954
Doornkop 517 410 107 2 837
Evander 910 859 51 922
Joel 524 379 145 175
Kusasalethu 1 392 1 091 301 2 974
Masimong 1 277 702 575 799
Phakisa 375 326 49 4 065
Target (2) 878 664 214 2 537
Tshepong 1 823 1 147 676 3 645
Virginia 1 415 1 340 75 682
Surface
All other surface
operations (1) 980 632 348 127
Total South Africa 11 205 8 295 2 910 19 717
International
Papua New Guinea (3) 79 63 16 3 771
Total international 79 63 16 3 771
Total continuing
operations 11 284 8 358 2 926 23 488
Discontinued operations
Mount Magnet - - - 226
Total discontinued
operations - - - 226
Total operations 11 284 8 358 2 926 23 714
Reconciliation of the segment
information to the
consolidated income
statement and balance
sheet (refer to note 10) - - 5 771
11 284 8 358 29 485
Capital Kilograms Tonnes
expenditure produced milled
R million kg* t`000*
Continuing operations
South Africa
Underground
Bambanani (2) 207 4 137 528
Doornkop 342 1 950 540
Evander 175 3 475 788
Joel 88 2 006 439
Kusasalethu 430 5 444 1 035
Masimong 177 4 840 899
Phakisa 486 1 371 339
Target (2) 382 3 539 777
Tshepong 261 6 749 1 518
Virginia 180 5 288 1 656
Surface
All other surface operations (1) 84 3 731 9 140
Total South Africa 2 812 42 530 17 659
International
Papua New Guinea (3) 541 1 903 304
Total international 541 1 903 304
Total continuing operations 3 353 44 433 17 963
Discontinued operations
Mount Magnet - - -
Total discontinued operations - - -
Total operations 3 353 44 433 17 963
Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 10)
Notes:
(1) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up
(2) Production statistics for President Steyn and Target 3 (previously known as
Lorraine 3) are shown for information purposes. These mines are in build-up
phase and revenue and costs are currently capitalised until commercial levels
of production are reached.
(3) Production statistics for Papua New Guinea are shown for the full year,
although the mine was in build-up phase until the end of April 2010, with
revenue and costs being capitalised for that period. During May 2010 commercial
levels of production was reached and capitalisation ceased.
* Production statistics are not reviewed
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2009 (Rand/Metric)
Production Operating Mining
Revenue cost profit assets
R million R million R million R million
Continuing operations
South Africa
Underground
Tshepong 1 780 978 802 3 634
Phakisa 171 107 64 3 658
Bambanani 924 651 273 705
Doornkop 343 281 62 2 544
Elandsrand 1 422 1 056 366 2 715
Target 688 536 152 2 218
Masimong 1 215 661 554 665
Evander 1 514 998 516 940
Virginia 2 033 1 488 545 898
Other (1) 503 366 137 240
Surface
Other (2) 903 535 368 142
Total South Africa 11 496 7 657 3 839 18 359
International
Papua New Guinea (3) - - - 3 540
Total international - - - 3 540
Total continuing
operations 11 496 7 657 3 839 21 899
Discontinued operations
Cooke operations 614 447 167 -
Mount Magnet - - - 259
Total discontinued
operations 614 447 167 259
Total operations 12 110 8 104 4 006 22 158
Reconciliation of the segment
information to the
consolidated
income statement and
balance sheet (refer
to note 10) (614) (447) 5 754
11 496 7 657 27 912
Capital Kilograms Tonnes
expenditure produced milled
R million kg* t`000*
Continuing operations
South Africa
Underground
Tshepong 249 7 178 1 375
Phakisa 461 691 185
Bambanani 52 3 780 517
Doornkop 395 1 311 549
Elandsrand 422 5 422 962
Target 342 2 713 644
Masimong 130 4 791 890
Evander 210 5 912 1 125
Virginia 199 8 030 2 261
Other (1) 56 2 043 513
Surface
Other (2) 84 3 566 8 867
Total South Africa 2 600 45 437 17 888
International
Papua New Guinea (3) 1 782 - -
Total international 1 782 - -
Total continuing operations 4 382 45 437 17 888
Discontinued operations
Cooke operations 87 2 500 1 287
Mount Magnet - - -
Total discontinued operations 87 2 500 1 287
Total operations 4 469 47 937 19 175
Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 10)
Notes:
(1) Includes Joel
(2) Includes Kalgold, Phoenix and Dumps
(3) Included in the capital expenditure is an amount of R1 543 million
contributed by Newcrest in terms of the farm-in agreement.
* Production statistics are unaudited.
Results for the fourth quarter and year
ended 30 June 2010
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: 16/08/2010 08:00:01 Supplied by www.sharenet.co.za
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