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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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