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HAR - Harmony - Results for the third quarter and nine months ended 31 March

Release Date: 05/05/2011 08:00:12      Code(s): HAR
HAR - Harmony - Results for the third quarter and nine months ended 31 March    
2011                                                                            
Harmony Gold Mining Company Limited                                             
Incorporated in the Republic of South Africa                                    
Registration number 1950/038232/06                                              
("Harmony" or "Company")                                                        
JSE Share code: HAR                                                             
NYSE Share code: HMY                                                            
ISIN: ZAE000015228                                                              
Results for the third quarter and nine months ended 31 March 2011               
SHAREHOLDER INFORMATION                                                         
Issued ordinary share capital                                      429 807 371  
at 31 March 2011                                                        shares  
Market capitalisation                                                           
At 31 March 2011 (ZARm)                                                 42 676  
At 31 March 2011 (US$m)                                                  6 304  
Harmony ordinary share                                                          
and ADR prices                                                                  
12 month high (1 April 2010 to                                                  
31 March 2011) for ordinary shares                                     R102.26  
12 month low (1 April 2010 to                                                   
31 March 2011) for ordinary shares                                      R68.65  
12 month high (1 April 2010 to                                                  
31 March 2011) for ADRs                                               US$15.26  
12 month low (1 April 2010 to                                                   
31 March 2011) for ADRs                                                US$9.04  
Free float                                                                      
Ordinary shares                                                           100%  
ADR ratio                                                                  1:1  
JSE Limited                                                                HAR  
Range for quarter                                                               
(1 January 2011 to 31 March 2011                                      R74.77 -  
closing prices)                                                        R102.26  
Average daily volume of shares                                                  
for the quarter (1 January 2011                                      1 685 549  
to 31 March 2011)                                               shares per day  
New York Stock                                                                  
Exchange, Inc.                                                             HMY  
Range for quarter                                                               
(1 January 2011 to                                                  US$10.56 -  
31 March 2011 - closing prices)                                       US$15.26  
Average daily volume of shares                                                  
for the quarter (1 January 2011                                      2 720 867  
to 31 March 2011)                                               shares per day  
Highlights                                                                      
- Cash operating profit of R855 million                                         
 Net profit of R238 million                                                     
- Slight increase in underground grade to 4.64g/t                               
- Stable cash operating cost                                                    
 despite production being 2% down                                               
- Headline earnings per share up 32% at 91 SA cents                             
- Excellent drilling results at Wafi-Golpu                                      
- Share price 20% higher quarter-on-quarter                                     
Financial summary for the third quarter and nine months ended 31  March 2011    
                                            Quarter      Quarter                
March     December       Q-on-Q   
                                               2011         2010     Variance   
                                                                            %   
Gold produced (1)        - kg                  9 857       10 055          (2)  
- oz                316 909      323 275          (2)   
Cash operating           - R/kg              217 802      216 595          (1)  
costs                    - US$/oz                970          979            1  
Gold sold                - kg                  9 716       10 046          (3)  
- oz                312 378      322 986          (3)   
Gold price               - R/kg              312 029      303 354            3  
received                 - US$/oz              1 389        1 371            1  
Cash operating           - R million             855          867          (1)  
profit                   - US$ million           122          126          (3)  
Basic                    - SAc/s                  55           69         (20)  
earnings/(loss)          - USc/s                   8           10         (20)  
per share*                                                                      
Headline                 - Rm                    390          294           33  
profit/(loss)*           - US$m                   56           43           30  
Headline                 - SAc/s                  91           69           32  
earnings/(loss)          - USc/s                  13           10           30  
per share*                                                                      
Exchange rate            - R/US$                6.99         6.88            2  
                                          9 months      9 months     Year-on-   
                                             March         March         year   
2011          2010     variance   
                                                                            %   
Gold produced (1)        - kg                30 383        33 649         (10)  
                        - oz               976 834     1 081 831         (10)   
Cash operating           - R/kg             221 166       193 274         (14)  
costs                    - US$/oz               962           792         (21)  
Gold sold                - kg                30 631        33 468          (8)  
                        - oz               984 811     1 076 012          (8)   
Gold price               - R/kg             300 386       256 525           17  
received                 - US$/oz             1 324         1 051           26  
Cash operating           - R million          2 374         1 985           20  
profit                   - US$ million          336           261           29  
Basic                    - SAc/s                149          (45)         >100  
earnings/(loss)          - USc/s                 21           (6)         >100  
per share*                                                                      
Headline                 - Rm                   826            54         >100  
profit/(loss)*           - US$m                 117             7         >100  
Headline                 - SAc/s                192            13         >100  
earnings/(loss)          - USc/s                 27             2         >100  
per share*                                                                      
Exchange rate            - R/US$               7.06          7.59          (7)  
* Reported amounts include continuing operations only.                          
(1) Production statistics for Steyn 2 and Target 3 have been included. These    
mines are in a build-up phase and revenue and costs are currently capitalised.  
Revenue capitalised includes: Quarter ending Mar 2011 Steyn 2, 14 kg (Dec 2010 -
18 kg) and Target 3, 250 kg (Dec 2010 - 170 kg), 9 months ending Mar 2011 Steyn 
2 , 63 kg (Mar 2010 - Nil) and Target 3, 531 kg (Mar 2010 - Nil).               
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 (www.harmony.co.za).                                   
Forward-looking statements                                                      
This quarterly report contains forward-looking statements within the meaning of 
the United States Private Securities Litigation Reform Act of 1995 with respect 
to Harmony`s financial condition, results of operations, business strategies,   
operating efficiencies, competitive positions, growth opportunities for existing
services, plans and objectives of management, markets for stock and other       
matters. Statements in this quarter that are not historical facts are "forward- 
looking statements" for the purpose of the safe harbour provided by Section 21E 
of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the 
U.S. Securities Act of 1933, as amended. Forward-looking statements are         
statements that are not historical facts. These statements include financial    
projections and estimates and their underlying assumptions, statements regarding
plans, objectives and expectations with respect to future operations, products  
and services, and statements regarding future performance. Forward-looking      
statements are generally identified by the words "expect", "anticipates",       
"believes", "intends", "estimates" and similar expressions. These statements are
only predictions. All forward-looking statements involve a number of risks,     
uncertainties and other factors and we cannot assure you that such statements   
will prove to be correct. Risks, uncertainties and other factors could cause    
actual events or results to differ from those expressed or implied by the       
forward-looking statements.                                                     
These forward-looking statements, including, among others, those relating to the
future business prospects, revenues and income of Harmony, wherever they may    
occur in this quarterly report and the exhibits to this quarterly report, are   
necessarily estimates reflecting the best judgment of the senior management of  
Harmony and involve a number of risks and uncertainties that could cause actual 
results to differ materially from those suggested by the forward-looking        
statements. As a consequence, these forward-looking statements should be        
considered in light of various important factors, including those set forth in  
this quarterly report. Important factors that could cause actual results to     
differ materially from estimates or projections contained in the forward-looking
statements include, without limitation:                                         
- overall economic and business conditions in the countries in which we operate;
- the ability to achieve anticipated efficiencies and other cost savings in     
connection with past and future acquisitions;                                   
- increases or decreases in the market price of gold;                           
- the occurrence of hazards associated with underground and surface gold mining;
- the occurrence of labour disruptions availability, terms and deployment of    
capital;                                                                        
- changes in government regulation, particularly mining rights and environmental
regulations;                                                                    
- fluctuations in exchange rates;                                               
- currency devaluations and other macro-economic monetary policies; and         
- socio-economic instability in the countries in which we operate.              
Chief Executive`s Review                                                        
Introduction                                                                    
The past quarter has been an exciting one with our share price reaching record  
highs for FY11 primarily on the back of more exploration successes on the Golpu 
deposit and an analyst visit to our Papua New Guinea (PNG) operations.          
We remain committed to our long term strategy of generating earnings to fund    
growth. We have invested significant capital to build and commission some of the
best South African gold mining assets and the results of these efforts will be  
fully realised in the future.                                                   
Our transformational efforts and strategic initiatives undertaken over the last 
few years are all aimed at achieving robust and sustainable financial results,  
with better cash costs and improved grade.                                      
Our strategy also includes a focus on both regional and asset diversification.  
In PNG, we have built a mine producing both gold and silver and are currently   
busy with further exploration in the area which includes 8 000km2 of exploration
tenements outside of the joint venture. The early findings from Wafi/Golpu has  
justified management`s long held belief that this is a world-class asset and    
will be a mine.                                                                 
Taking a holistic view, Harmony has several world-class mines in South Africa   
which are currently in the build-up phase and these, together with Hidden       
Valley, will be significant contributors to Harmony`s set production targets.   
Safety                                                                          
It is with deep regret that I report that two of our colleagues died            
in work-related incidents during the quarter. Those who died were:              
Tello Motloung, a scraper winch operator at Bambanani and Tjakama Ntsohi, a     
winch operator at Unisel. I would like to extend my deepest condolences to their
families, friends and colleagues.                                               
Fall of ground is still the major contributor to fatalities in the Company and a
high level task team has been established to formulate and implement a          
comprehensive fall of ground strategy.                                          
Overall, improved discipline and management of seismicity and falls of ground,  
value based safety behaviour and visible leadership from the operational        
management resulted in improved safety at most of our operations. See more on   
safety on page 5.                                                               
Gold market                                                                     
We do not hedge gold and our shareholders have complete exposure to spot gold   
prices and current exchange rates. We maintain our bullish stance on the gold   
price and believe it will increase further, especially in light of the weaker   
dollar and global economic uncertainty. Gold has proven itself to be a currency 
and a store of wealth in times of uncertainty. Although we have seen record high
gold prices in the past quarter in dollar terms, the stronger Rand resulted in  
the R/kg gold price increasing by only 3% from R303 354/kg in the previous      
quarter to R312 029/kg in the current quarter.                                  
Operational results for quarter 3 of FY11                                       
Gold production decreased by 2% quarter on quarter, from 10  055kg to 9 857kg.  
Underground production was only 1% lower at 8  164kg, despite volumes           
decreasing by 3% mainly as a result of the December break. However, tonnage     
was made up with surface tonnes being 2% higher quarter on quarter.             
Underground operations                                                          
Tonnes milled for the quarter decreased by 3% or 58 000 tonnes when compared to 
the December 2010 quarter. Recovered grade increased from 4.60g/t to 4.64g/t    
quarter on quarter. Gold production achieved in the March 2011 quarter was 8 164
kilograms, compared to 8 273 kilograms produced in the December 2010 quarter.   
A 3% decrease in cash operating cost in Rand terms negated the decrease in gold 
produced and resulted in a 1% decrease in unit cost achieved for the March 2011 
quarter at R216 799/kg compared to R218 881/kg in the previous quarter. Capital 
expenditure for the March 2011 quarter decreased by 18% (R124 million) to R572  
million, compared to R696 million in the December 2010 quarter.                 
Surface operations                                                              
Tonnes milled increased by 2%, mainly due to a 111 000 tonnes (14%) increase in 
material from the dumps. This was due to the plants continuing to mill waste    
over the December break. The recovered grade decreased by 8% from 0.38g/t to    
0.35g/t in the quarter under review, mainly attributed to a 9% decrease at      
Kalgold. Gold produced decreased by 56kg from 955kg in the December 2010 quarter
to 899kg in the March 2011 quarter, a 6% decrease. Cash operating unit cost     
increased by 6% from R215 422/kg to R227 335/kg in the quarter under review.    
Operating profit decreased by 11% to R69 million in the March 2011 quarter      
compared to R78 million in the previous quarter.                                
Hidden Valley                                                                   
Gold and silver production decreased by 4% and 21%, respectively, compared to   
the previous quarter with 794kg (25 528oz) gold and 4 704kg (151 249oz) silver  
produced. Plant throughput was 4% lower at 815 000 (850 000 in the previous     
quarter) tonnes, which is primarily attributable to the belt breakage of the    
Hidden Valley conveying circuit. This is expected to negatively impact quarter  
four as well. See page 8 for more on the Hidden Valley mine.                    
Financial overview                                                              
Quarter on quarter the Rand per kilogram unit cost were kept at bay with a mere 
increase of 1% to R217 802/kg, in comparison to R216 595/kg in the previous     
quarter. This was mainly as a result of the 2% decrease in gold production as   
cash operating cost in Rand terms decreased by 2% (R48 million).                
In R/kg terms the gold price received increased by 3% from R303 354/kg in the   
December 2010 quarter to R312 029/kg in the current quarter. Revenue for the    
March 2011 quarter decreased by 1% as a result of a 330kg (3%) decrease in the  
gold sold.                                                                      
Quarter on quarter the capital expenditure decreased by                         
R168 million (20%).                                                             
Cash operating cost for the March 2011 quarter decreased by R48 million or 2%   
when compared to the previous quarter due to cost savings, decreased electricity
and labour costs.                                                               
Operating profit decreased by 1% to R855 million when compared to the R868      
million recorded in the December 2010 quarter.                                  
Wafi/Golpu                                                                      
Drilling at the Wafi-Golpu project continues to be successful. The latest       
results confirm our previously held belief that this deposit is truly a world-  
class discovery and the pre-feasibility study will be completed towards the end 
of December 2011. The latest drill hole results at our Wafi-Golpu JV project    
(50% held by Harmony) have provided the highest mineralisation values to date.  
In October 2010, Harmony reported on drilling of the Wafi-Golpu deposit, which  
extended the mineralisation beyond the porphyry copper-gold resource of 16Moz of
gold and 4.8Mt of copper.                                                       
On 3 March 2011 we released the following drilling results:                     
- WR377: 883m @ 2.15% Cu and 2.23g/t Au (5.33g/t Au equivalents*) from 913m     
including 628m @ 2.82% Cu and 3.06g/t Au (7.13g/t Au equivalents*) from         
1 043m.                                                                         
* Gold equivalents calculated using a gold price of US$950/oz and copper price  
of US$2.00 lb and assuming 100% recovery for all metals.                        
The intercept correlates with a zone of chalcopyrite and bornite mineralisation 
in the porphyry and surrounding metasediment. This hole extends the known       
porphyry mineralisation significantly outside the current resource shell.       
Mineralisation is open at depth and to the north of this intercept. This        
intersection continues to support our Exploration Target of 30 million ounces of
gold and 8 million tonnes of copper.                                            
This project is growing with each new drill hole result and we are confident    
that this will be a new mine.                                                   
Conclusion                                                                      
The Company is showing significant progress both in the growth of its resources 
as well as its diversity. The key short-term objective for us is the build up of
our production and to get there, the main focus is on getting the assets, in    
which we have invested considerable amounts of cash over the last few years,    
into full production.                                                           
Harmony is a company which has dramatically improved the quality of its ounces, 
which will continue to do so with better cash costs and free cash flow in the   
future.                                                                         
Graham Briggs                                                                   
Chief Executive Officer                                                         
Safety and health                                                               
Safety                                                                          
Safety remains Harmony`s number one priority. We dedicate our time and resources
to ensure that safety-related events are avoided and we continue to proactively 
identify potential hazards.                                                     
Tragically, two fatalities occurred at the South African operations during the  
March 2011 quarter. Fall of ground incidents remain the biggest challenge.      
Harmony has implemented a formal Ground Control Strategy, the main objective of 
which is to formalise and consolidate all efforts focused on the prevention of  
fall of ground incidents and accidents and to promote an even safer and stable  
underground environment.                                                        
The strategy is divided into two main components, being ground behaviour and    
ground control, where ground behaviour deals with the strategic aspects of mine 
design in order to prevent or minimise damage to rock surrounding mining        
excavations. Knowledge of the mining environment and ground stability together  
with an understanding of the in situ and induced stress regimes plays a role in 
the ideal plan for each condition. Integration of support systems in the overall
mine design plus the monitoring of the rock mass response form part of the      
ground behaviour.                                                               
Ground control deals with the operational aspects of the mine with the objective
being to protect personnel and equipment from fall of ground incidents. It is   
the hazard identification and treatment system where support elements, layout   
standards and procedures are implemented by means of training, supervision and  
management systems that address all requirements.                               
Central to this approach are components that deal with behavioural aspects,     
competency training and development, research and new technologies.             
Harmony achieved a single digit figure in respect of its Lost Time Injury       
Frequency Rate (LTIFR) for the tenth consecutive quarter. The year to date rate 
improved by 2% when compared to the previous year (from 7.72 to 7.86), but      
regressed by 26% quarter on quarter (from 6.88 to 8.65).                        
The Reportable Injury Frequency Rate (RIFR) (per million hours worked) to date  
rate regressed by 7% when compared to the previous year (from 4.19 to 4.49) and 
by 13% quarter on quarter (from 4.08 to 4.62).                                  
The Fatal Injury Frequency Rate (FIFR) to date rate improved by 14% when        
compared to the previous year (from 0.21 to 0.18) and by 50% quarter on quarter 
(from 0.18 to 0.09).                                                            
Safety achievements for the quarter included:                                   
Total Harmony surface and                                                       
underground operations:                     2 000 000 fatality free shifts      
South African surface and                                                       
underground operations:                     1 000 000 fatality free shifts      
Kusasalethu:                                  500 000 fatality free shifts      
Evander total operations:                     500 000 fatality free shifts      
Tshepong:                                     500 000 fatality free shifts      
Target 1:                                     500 000 fatality free shifts      
The following operations completed the March 2011 quarter without an injury:    
- Target Plant                                                                  
- Joel Plant                                                                    
- Harmony 1 Plant                                                               
- Free State Commercial Services and Transport                                  
- Randfontein Commercial Services and Transport                                 
- Evander Workshops                                                             
- Randfontein Surface Operations                                                
- Kusasalethu Plant                                                             
Health                                                                          
Our pro-active approach to the health and wellness of our employees continues   
and various programmes and initiatives are supported and sponsored by the       
company to ensure the wellbeing of our employees. Our objective remains to      
improve health management programmes and effectively utilise clinical           
information. This includes the review of policies, procedures and processes, as 
well as training, on an on-going basis.                                         
See our Sustainable Development Report for more details on our website          
www.harmony.co.za.                                                              
Financial overview                                                              
Cash operating profits were stable showing a 1% decrease to R855 million, as the
decrease in revenue was largely offset by a decrease in production cost.        
Earnings per share                                                              
Basic earnings per share decreased from 69 SA cents to 55 SA cents, while       
headline earnings per share increased from 69 SA cents to 91 SA cents. Headline 
earnings are higher than basic earnings as the impairment charge on associates  
is added back.                                                                  
Revenue                                                                         
Revenue decreased from R2 990 million to R2 949 million as a result of the lower
gold sales volume. The decrease was partially offset by an increase in the Rand 
gold price received from R303 354/kg to R312 029/kg.                            
Cost of sales                                                                   
Cost of sales increased from R2 506 million to R2 623 million in the March 2011 
quarter. The amount reported in the December 2010 quarter included an insurance 
credit of R179 million related to the unwinding of the previous insurance       
scheme, which was a once-off entry. Production costs and employment and         
restructuring costs decreased in the March 2011 quarter, resulting in a saving  
of R57 million.                                                                 
Impairment of investment in associate                                           
On 28 April 2011, Gold One International (Gold One) and Rand Uranium            
(Proprietary) Limited (Rand Uranium) announced that the shareholders of Rand    
Uranium have accepted an offer by Gold One for the shares in Rand Uranium.      
Harmony holds 40% in Rand Uranium. The investment has been classified as held   
for sale on the balance sheet and an impairment of R160 million was recognised  
as the carrying value was in excess of the expected proceeds.                   
Investment income                                                               
Included in the amount for the March 2011 quarter is an amount of R43 million   
relating to interest and interest refunds from the South African Revenue Service
(SARS).                                                                         
Taxation                                                                        
The taxation credit of R297 million includes a deferred tax credit of R333      
million. SARS previously disallowed Freegold`s "post 1973 gold mine" additional 
capital allowance claim, and also disallowed Freegold`s application of mining   
ringfencing. The disputed matters were set down to be heard in the Income Tax   
Court of Johannesburg on 14 March 2011, but SARS withdrew the additional capital
allowance claim on 10 March 2011, conceding that the Freegold operations are    
entitled to claim this capital allowance. The inclusion of the capital allowance
caused an increase in the deferred tax asset on the balance sheet and the       
resulting credit in the income statement.                                       
Capital expenditure                                                             
Capital expenditure decreased from R835 million in the December 2010 quarter to 
R667 million for the March 2011 quarter.                                        
Trade and other receivables - current                                           
The balance at March 2011 includes an amount of R409 million owed by SARS for   
VAT refunds. An amount of R200 million was overdue at 31 March 2011, the        
majority of which has been refunded subsequent to balance sheet date.           
Borrowings                                                                      
During the March 2011 quarter, R250 million was drawn from the Nedbank facility.
The undrawn facility at balance sheet date was R300 million.                    
CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)                                  
                                                Quarter ended                   
                                     31 March     31 December      31 March 1   
2011            2010            2010   
                                  (Unaudited)     (Unaudited)     (Unaudited)   
                          Note      R million       R million       R million   
Continuing operations                                                           
Revenue                                  2 949           2 990           2 521  
Cost of sales                 2        (2 623)         (2 506)         (2 581)  
Production costs                       (2 064)         (2 093)         (1 882)  
Royalty expense                           (30)            (30)             (5)  
Amortisation and                                                                
depreciation                             (431)           (442)           (324)  
Impairment of assets                        -                -           (196)  
Employment termination and                                                      
restructuring costs                       (26)            (54)           (120)  
Other items                               (72)             113            (54)  
Gross profit/(loss)                        326             484            (60)  
Corporate, administration                                                       
and other expenditure                     (93)            (96)            (83)  
Social investment                                                               
expenditure                               (27)            (23)            (25)  
Exploration expenditure       3           (77)            (76)            (66)  
Profit/(loss) on sale of                                                        
property, plant and                                                             
equipment                                    8               1             (1)  
Other (expenses)/income                                                         
- net                                      (8)               6             (2)  
Operating profit/(loss)                    129             296           (237)  
(Loss)/profit from associates             (24)            (19)              5   
Impairment of                                                                   
investment in associate       6          (160)              -               -   
Loss on sale of investment                                                      
in subsidiary                                -              -             (24)  
Net gain on financial                                                           
instruments                   4              3             78               -   
Investment income                           64             38              61   
Finance cost                               (71)           (69)           (60)   
(Loss)/profit                                                                   
before taxation                           (59)            324           (255)   
Taxation                                   297            (28)           (25)   
Normal taxation                           (12)              -            (22)   
Deferred taxation             5            309            (28)             (3)  
Net                                                                             
profit/(loss) from                                                              
continuing operations                      238             296           (280)  
Discontinued operations                                                         
Profit/(loss)                                                                   
from discontinued                                                               
operations                    6              -              23            (15)  
Net profit/(loss)                          238             319           (295)  
Attributable to:                                                                
Owners of the parent                       238             319           (295)  
Non-controlling interest                     -               -               -  
Earnings/(loss)                                                                 
per ordinary  share (cents)   7                                                 
- Earnings/(loss)                                                               
from continuing operations                  55              69            (65)  
- Earnings/(loss)                                                               
from  discontinued operations                -               5             (4)  
Total earnings/(loss)                                                           
per ordinary share (cents)                  55              74            (69)  
Diluted  earnings/(loss)                                                        
per ordinary share (cents)    7                                                 
- Earnings/(loss)                                                               
from continuing operations                  55              69            (65)  
- Earnings/(loss)                                                               
from discontinued operations                 -               5             (3)  
Total diluted earnings/(loss) per                                               
ordinary share (cents)                      55              74            (68)  
                                     Nine months ended            Year ended    
31 March      31 March 1              30 June   
                                    2011            2010                 2010   
                             (Unaudited)     (Unaudited)            (Audited)   
                               R million       R million            R million   
Continuing operations                                                           
Revenue                             9 023           8 239               11 284  
Cost of sales                     (8 125)         (7 837)             (10 484)  
Production costs                  (6 565)         (6 249)              (8 325)  
Royalty expense                      (84)             (5)                 (33)  
Amortisation and depreciation     (1 299)           (994)              (1 375)  
Impairment of assets                    -           (300)                (331)  
Employment termination and                                                      
restructuring costs                 (158)           (123)                (205)  
Other items                          (19)           (166)                (215)  
Gross profit/(loss)                   898             402                  800  
Corporate, administration and                                                   
other expenditure                   (283)           (257)                (382)  
Social investment expenditure        (66)            (54)                 (81)  
Exploration expenditure             (251)           (159)                (219)  
Profit/(loss) on sale of                                                        
property, plant and equipment         24                3                  104  
Other (expenses)/income - net        (56)            (95)                 (58)  
Operating profit/(loss)               266           (160)                  164  
(Loss)/profit from associates        (51)              61                   56  
Impairment of investment in                                                     
associate                           (160)               -                    -  
Loss on sale of investment                                                      
in subsidiary                           -            (24)                 (24)  
Net gain on financial instruments     392               3                   38  
Investment income                     116             186                  187  
Finance cost                        (199)           (152)                (246)  
(Loss)/profit before taxation         364            (86)                  175  
Taxation                              275           (108)                (335)  
Normal taxation                      (22)            (63)                 (84)  
Deferred taxation                     297            (45)                (251)  
Net profit/(loss) from                                                          
continuing operations                 639           (194)                (160)  
Discontinued operations                                                         
Profit/(loss) from                                                              
discontinued operations                20            (12)                 (32)  
Net profit/(loss)                     659           (206)                (192)  
Attributable to:                                                                
Owners of the parent                  659           (206)                (192)  
Non-controlling interest                -               -                    -  
Earnings/(loss) per ordinary                                                    
share (cents)                                                                   
- Earnings/(loss) from                                                          
continuing operations                 149            (45)                 (38)  
- Earnings/(loss) from                                                          
discontinued operations                 5             (3)                  (8)  
Total earnings/(loss) per                                                       
ordinary share (cents)                154            (48)                 (46)  
Diluted earnings/(loss) per                                                     
ordinary share (cents)                                                          
- Earnings/(loss) from                                                          
continuing operations                 149            (45)                 (38)  
- Earnings/(loss) from                                                          
discontinued operations                 5             (3)                  (8)  
Total diluted earnings/(loss)                                                   
per ordinary share (cents)            154            (48)                 (46)  
1 The comparative figures are re-presented due to Mount Magnet being            
reclassified as a discontinued operation. See note 6 in this regard.            
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)           
                                                  Quarter ended                 
                                     31 March     31 December        31 March   
                                         2011            2010            2010   
(Unaudited)     (Unaudited)     (Unaudited)   
                                    R million       R million       R million   
Net profit/(loss) for the period           238             319           (295)  
Other comprehensive income/(loss)                                               
for                                                                             
the period, net of income tax                6           (161)              71  
Foreign exchange translation                22           (131)              72  
Fair value movement of                                                          
available-for-sale investments            (16)            (30)             (1)  
Total comprehensive income/(loss)                                               
for the period                             244             158           (224)  
Attributable to:                                                                
Owners of the parent                       244             158           (224)  
Non-controlling interest                     -               -               -  
                                          Nine months ended        Year ended   
                                       31 March        31 March       30 June   
2011            2010          2010   
                                    (Unaudited)     (Unaudited)     (Audited)   
                                      R million       R million     R million   
Net profit/(loss) for the period             659           (206)         (192)  
Other comprehensive income/(loss) for                                           
the period, net of income tax               (50)              35         (131)  
Foreign exchange translation                 (3)              34         (127)  
Fair value movement of                                                          
available-for-sale investments              (47)               1           (4)  
Total comprehensive income/(loss)                                               
for the period                               609           (171)         (323)  
Attributable to:                                                                
Owners of the parent                         609           (171)         (323)  
Non-controlling interest                       -               -             -  
CONDENSED CONSOLIDATED BALANCE SHEET (Rand)                                     
                                                           At              At   
31 March     31 December   
                                                         2011            2010   
                                                  (Unaudited)                   
                                         Note       R million       R million   
ASSETS                                                                          
Non-current assets                                      30 557          30 218  
Property, plant and equipment                                                   
Intangible assets                                        2 188           2 199  
Restricted cash                                             27              26  
Restricted investments                                   1 866           1 864  
Investments in financial assets                            236             264  
Investments in associates                                    -             358  
Inventories                                                227             232  
Deferred tax asset                                       2 310           1 925  
Trade and other receivables                                 69              69  
                                                       37 480          37 155   
Current assets                                                                  
Inventories                                                954             943  
Trade and other receivables                  8           1 111             962  
Income and mining taxes                                    119             102  
Cash and cash equivalents                                  656             837  
                                                        2 840           2 844   
Assets of disposal groups classified as                                         
held for sale                                6             174               -  
3 014           2 844   
Total assets                                            40 494          39 999  
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                           28 290          28 277  
Other reserves                                             299             266  
Retained earnings                                        1 135             897  
                                                       29 724          29 440   
Non-current liabilities                                                         
Deferred tax liability                                   5 623           5 538  
Provision for environmental rehabilitation               1 785           1 752  
Retirement benefit obligation and other                                         
provisions                                                 179             179  
Borrowings                                   9           1 487           1 243  
                                                        9 074           8 712   
Current liabilities                                                             
Borrowings                                   9             336             344  
Income and mining taxes                                     17              10  
Trade and other payables                                 1 343           1 493  
                                                        1 696           1 847   
Liabilities of disposal groups classified                                       
as held for sale                             6               -               -  
                                                        1 696           1 847   
Total equity and liabilities                            40 494          39 999  
Number of ordinary shares in issue                 429 807 371     429 506 618  
Net asset value per share (cents)                        6 916           6 854  
                                                           At              At   
                                                      30 June        31 March   
2010            2010   
                                                    (Audited)     (Unaudited)   
                                                    R million       R million   
ASSETS                                                                          
Non-current assets                                      29 556          29 403  
Property, plant and equipment                                                   
Intangible assets                                        2 210           2 210  
Restricted cash                                            146             147  
Restricted investments                                   1 742           1 726  
Investments in financial assets                             12              18  
Investments in associates                                  385             391  
Inventories                                                214              81  
Deferred tax asset                                       1 875           1 891  
Trade and other receivables                                 75              76  
                                                       36 215          35 943   
Current assets                                                                  
Inventories                                                987           1 152  
Trade and other receivables                                932           1 217  
Income and mining taxes                                     74              44  
Cash and cash equivalents                                  770             481  
2 763           2 894   
Assets of disposal groups classified as held for                                
sale                                                       245               -  
                                                        3 008           2 894   
Total assets                                            39 223          38 837  
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                           28 261          28 102  
Other reserves                                             258             535  
Retained earnings                                          690             676  
                                                       29 209          29 313   
Non-current liabilities                                                         
Deferred tax liability                                   5 409           5 217  
Provision for environmental rehabilitation               1 692           1 704  
Retirement benefit obligation and other provisions         169             167  
Borrowings                                                 981             780  
8 251           7 868   
Current liabilities                                                             
Borrowings                                                 209             221  
Income and mining taxes                                      9              17  
Trade and other payables                                 1 410           1 418  
                                                        1 628           1 656   
Liabilities of disposal groups classified as held                               
for sale                                                   135               -  
1 763           1 656   
Total equity and liabilities                            39 223          38 837  
Number of ordinary shares in issue                                              
                                                  428 654 779     426 191 965   
Net asset value per share (cents)                        6 814           6 878  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand)                    
for the nine months ended 31 March 2011                                         
                              Share         Other      Retained                 
                            capital      reserves      earnings         Total   
                          R million     R million     R million     R million   
Balance - 30 June 2010        28 261           258           690        29 209  
Issue of shares                   29             -             -            29  
Share-based payments               -            91             -            91  
Total comprehensive income                                                      
for the period                     -          (50)           659           609  
Dividends paid                     -             -         (214)         (214)  
Balance as at 31 March 2011   28 290           299         1 135        29 724  
Balance - 30 June 2009        28 091           339         1 095        29 525  
Issue of shares                   11             -             -            11  
Share-based payments               -           108             -           108  
AVRD share issue reserve*          -           151             -           151  
Repurchase of equity                                                            
interest                           -          (98)             -          (98)  
Total comprehensive loss                                                        
for the period                     -            35         (206)         (171)  
Dividends paid                     -             -         (213)         (213)  
Balance as at 31 March 2010   28 102           535           676        29 313  
* This relates to the transaction with Africa Vanguard Resources (Doornkop)     
(Proprietary) Limited (AVRD).                                                   
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)                               
Quarter ended                  
                                     31 March     31 December        31 March   
                                         2011            2010            2010   
                                  (Unaudited)     (Unaudited)     (Unaudited)   
R million       R million       R million   
Cash flow from operating activities                                             
Cash generated by operations               213             450             295  
Interest and dividends received             64              38              66  
Interest paid                             (34)            (35)            (32)  
Income and mining taxes                                                         
refund/(paid)                                8            (30)            (11)  
Cash generated by operating activities     251             423             318  
Cash flow from investing activities                                             
Decrease in restricted cash                  -              90             301  
Proceeds on disposal of investment                                              
in subsidiary                                -               -              24  
Proceeds on disposal of available-for-sale                                      
financial assets                             -               2               -  
Other investing activities                  16             (6)             (8)  
Net additions to property, plant                                                
and equipment                            (687)           (846)           (988)  
Cash utilised by investing activities    (671)           (760)           (671)  
Cash flow from financing activities                                             
Borrowings raised                          250             525             250  
Borrowings repaid                         (17)           (107)           (260)  
Ordinary shares issued - net of expenses    13               8               6  
Dividends paid                               -               -               -  
Cash generated/(utilised) by                                                    
financing activities                       246             426             (4)  
Foreign currency translation adjustments   (7)            (24)              30  
Net (decrease)/increase in cash and                                             
cash equivalents                         (181)              65           (327)  
Cash and cash equivalents -                                                     
beginning of period                        837             772             808  
Cash and cash equivalents - end of period  656             837             481  
                                            Nine months ended      Year ended   
31 March        31 March       30 June   
                                           2011            2010          2010   
                                    (Unaudited)     (Unaudited)     (Audited)   
                                      R million       R million     R million   
Cash flow from operating activities                                             
Cash generated by operations               1 366             703         1 611  
Interest and dividends received              116             186           187  
Interest paid                               (99)            (52)          (90)  
Income and mining taxes refund/(paid)       (26)            (70)         (125)  
Cash generated by operating activities     1 357             767         1 583  
Cash flow from investing activities                                             
Decrease in restricted cash                  120              15            15  
Proceeds on disposal of investment                                              
in subsidiary                                229              24            24  
Proceeds on disposal of                                                         
available-for-sale financial assets            1              44            50  
Other investing activities                    20             (3)          (12)  
Net additions to property, plant and                                            
equipment                                (2 281)         (2 785)       (3 493)  
Cash utilised by investing activities    (1 911)         (2 705)       (3 416)  
Cash flow from financing activities                                             
Borrowings raised                            775             936         1 236  
Borrowings repaid                          (130)           (285)         (391)  
Ordinary shares issued - net of expenses      29              11            18  
Dividends paid                             (214)           (213)         (213)  
Cash generated/(utilised) by                                                    
financing activities                         460             449           650  
Foreign currency translation adjustments    (20)              20             3  
Net (decrease)/increase in cash and                                             
cash equivalents                           (114)         (1 469)       (1 180)  
Cash and cash equivalents -                                                     
beginning of period                          770           1 950         1 950  
Cash and cash equivalents - end of period    656             481           770  
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                        
for the third quarter and nine months ended 31 March 2011                       
1. Accounting policies                                                          
Basis of accounting                                                             
The condensed consolidated financial statements for the nine months ended 31    
March 2011 have been prepared in accordance with IAS 34, Interim Financial      
Reporting, JSE Limited Listings Requirements and in the manner required by the  
Companies Act of South Africa. They should be read in conjunction with the      
annual financial statements for the year ended 30 June 2010, which have been    
prepared in accordance with International Financial Reporting Standards as      
issued by the International Accounting Standards Board (IFRS). The accounting   
policies are consistent with those described in the annual financial statements,
except for the adoption of applicable revised and/or new standards issued by the
International Accounting Standards Board.                                       
2. Cost of sales                                                                
Quarter ended                   
                                   31 March       31 December      31 March 1   
                                       2011              2010            2010   
                                (Unaudited)       (Unaudited)     (Unaudited)   
R million         R million       R million   
Production costs                       2 064             2 093           1 882  
Royalty expense                           30                30               5  
Amortisation and depreciation            431               442             324  
Impairment of assets(2)                    -                 -             196  
Rehabilitation expenditure                 4                 5               7  
Care and maintenance cost of                                                    
restructured shafts                       35                28              11  
Employment termination and                                                      
restructuring costs                       26                54             120  
Share based payments                      28                32              36  
Insurance adjustment/(credit)(3)           5             (179)               -  
Provision for post-retirement                                                   
benefits                                   -                 1               -  
Total cost of sales                    2 623             2 506           2 581  
                                          Nine months ended        Year ended   
31 March      31 March 1       30 June   
                                           2011            2010          2010   
                                    (Unaudited)     (Unaudited)     (Audited)   
                                      R million       R million     R million   
Production costs                           6 565           6 249         8 325  
Royalty expense                               84               5            33  
Amortisation and depreciation              1 299             994         1 375  
Impairment of assets(2)                        -             300           331  
Rehabilitation expenditure                    13              16            29  
Care and maintenance cost of                                                    
restructured shafts                           88              42            57  
Employment termination and                                                      
restructuring costs                          158             123           205  
Share based payments                          91             108           148  
Insurance adjustment/(credit)(3)           (174)               -             -  
Provision for post-retirement                                                   
benefits                                       1               -          (19)  
Total cost of sales                        8 125           7 837        10 484  
(1) The comparative figures are re-presented due to Mount Magnet being          
reclassified as part of discontinued operations. See note 6 in this regard.     
(2) The impairments for the quarter ended 31 March 2010, nine months ended 31   
March 2010 and year ended 30 June 2010 relates mainly to Virginia and Evander,  
which was recorded as a result of shaft closures.                               
(3) Net proceeds on unwinding of previous insurance agreement.                  
3. Exploration expenditure                                                      
                                                Quarter ended                   
                                   31 March       31 December        31 March   
                                       2011              2010            2010   
(Unaudited)       (Unaudited)     (Unaudited)   
                                  R million         R million       R million   
Total exploration expenditure             87               102              66  
Less: Expenditure capitalised           (10)              (26)               -  
Exploration expenditure per                                                     
income statement                          77                76              66  
                                            Nine months ended      Year ended   
                                       31 March        31 March       30 June   
2011            2010          2010   
                                    (Unaudited)     (Unaudited)     (Audited)   
                                      R million       R million     R million   
Total exploration expenditure                287             159           219  
Less: Expenditure capitalised               (36)               -             -  
Exploration expenditure per                                                     
income statement                             251             159           219  
4. Net gain on financial instruments                                            
During the September 2010 quarter, a gain of R273 million was recognised on the 
Freegold option, which was classified as a financial asset at fair value through
profit or loss. This was following Harmony Gold Mining Company Limited (Harmony)
entering into two transactions with Witwatersrand Consolidated Gold Resources   
Limited (Wits Gold), whereby Wits Gold obtains a prospecting right over         
Harmony`s Merriespruit South area and the option held by ARMgold/Harmony        
Freegold Joint Venture Company (Proprietary) Limited (Freegold), a wholly owned 
subsidiary of Harmony, is cancelled.                                            
During the December 2010 quarter, an amount of R78 million was recognised, being
the increase in the fair value of the Nedbank Equity Linked Deposits held by the
Environmental Trusts.                                                           
5. Deferred taxation                                                            
The taxation credit of R297 million includes a deferred tax credit of R333      
million. The South African Revenue Service (SARS) previously disallowed         
Freegold`s "post 1973 gold mine" additional capital allowance claim, and also   
disallowed Freegold`s application of mining ringfencing. The disputed matters   
were set down to be heard in the Income Tax Court of Johannesburg on 14 March   
2011, but SARS withdrew the additional capital allowance claim on 10 March 2011,
conceding that the Freegold operations are entitled to claim this capital       
allowance. The inclusion of the capital allowance caused an increase in the     
deferred tax asset on the balance sheet and the resulting credit in the income  
statement.                                                                      
6. Disposal groups classified as held for sale and discontinued operations      
Mount Magnet                                                                    
The conditions precedent for the sale of Mount Magnet were fulfilled and the    
transaction became effective on 20 July 2010. A total purchase consideration of 
R238 million was received from Ramelius Resources Limited in exchange for 100%  
of the issued shares of Mount Magnet. The group recognised a total profit of    
R104 million net of tax, before the realisation of accumulated foreign exchange 
losses of R84 million from other comprehensive income to the consolidated income
statement. The income statement and earnings per share amounts for all          
comparative periods have been re-presented to disclose the operation as a       
discontinued operation.                                                         
Investment in associate                                                         
The investment in Rand Uranium has been classified as held for sale following   
the decision by the shareholders to sell the business. In terms of the binding  
offer accepted by the shareholders on 21 April 2011, the subordinated           
shareholder`s loan of R63 million due to the group will be repaid out of the    
sale proceeds. As the investment is carried at fair value, and the carrying     
value of the investment exceeds the expected proceeds, an impairment of R160    
million has been recognised in the income statement.                            
7. 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 31  March 2011: 429.5 million 
(31 December 2010: 429.1 million, 31 March 2010: 426.1 million), and nine months
ended 31 March 2011: 429.1 million (31 March 2010: 425.9 million), and the year 
ended 30 June 2010: 426.4 million.                                              
The diluted earnings/(loss) per ordinary share is calculated on weighted average
number of diluted ordinary shares in issue for the quarter ended 31 March 2011: 
430.7 million (31 December 2010: 429.9 million, 31 March 2010: 429.6 million),  
and the nine months ended 31 March 2011: 430.2 million (31 March 2010: 429.6    
million), and the year ended 30 June 2010: 427.8 million.                       
Quarter ended                   
                                     31 March     31 December      31 March 1   
                                         2011            2010            2010   
                                  (Unaudited)     (Unaudited)     (Unaudited)   
Total earnings/(loss) per ordinary                                              
share (cents):                                                                  
Basic earnings/(loss)                       55              74            (69)  
Diluted earnings/(loss)                     55              74            (68)  
Headline earnings/(loss)                    91              69            (27)  
- from continuing operations                91              69            (24)  
- from discontinued operations               -               -             (3)  
Diluted headline earnings/(loss)            91              69            (27)  
- from continuing operations                91              69            (24)  
- from discontinued operations               -               -             (3)  
                                    R million       R million       R million   
Reconciliation of headline                                                      
earnings/(loss):                                                                
Continuing operations                                                           
Net profit/(loss)                          238             296           (280)  
Adjusted for:                                                                   
Profit on sale of property, plant                                               
and equipment                              (8)             (1)             (3)  
Taxation effect of profit on sale                                               
of property, plant and equipment             2               -               1  
Net gain on financial instruments          (3)             (1)               -  
Taxation effect of net gain on                                                  
financial instruments                        1               -               -  
Impairment of investments in associate*    160               -               -  
Foreign exchange loss/(gain)                                                    
reclassified from other comprehensive                                           
income*                                      -               -               -  
Loss on sale of investment in subsidiary     -               -              24  
Taxation effect of loss on sale of                                              
investment in subsidiary                     -               -             (7)  
Impairment of other investments*             -               -               -  
Impairment of assets                         -               -             196  
Taxation effect of impairment of assets      -               -            (34)  
Headline earnings/(loss)                   390             294           (103)  
Discontinued operations                                                         
Net profit/(loss)                            -              23            (15)  
Adjusted for:                                                                   
Loss/(profit) on sale of property,                                              
plant and equipment                          -               -               2  
Taxation effect of loss/(profit)                                                
on sale of property, plant and equipment     -               -             (1)  
Profit on sale of investment in subsidiary   -               -               -  
Taxation effect of profit on sale                                               
of investment in subsidiary                  -               -               -  
Foreign exchange (gain)/loss                                                    
reclassified from                                                               
other comprehensive income*                  -            (23)               -  
Headline loss                                -               -            (14)  
Total headline earnings/(loss)             390             294           (117)  
                                          Nine months ended        Year ended   
                                       31 March      31 March 1       30 June   
                                           2011            2010          2010   
(Unaudited)     (Unaudited)     (Audited)   
Total earnings/(loss) per ordinary                                              
share (cents):                                                                  
Basic earnings/(loss)                        154            (48)          (46)  
Diluted earnings/(loss)                      154            (48)          (46)  
Headline earnings/(loss)                     192              10           (7)  
- from continuing operations                 192              13             1  
- from discontinued operations                 -             (3)           (8)  
Diluted headline earnings/(loss)             192              10           (7)  
- from continuing operations                 192              13             1  
- from discontinued operations                 -             (3)           (8)  
                                      R million       R million     R million   
Reconciliation of headline                                                      
earnings/(loss):                                                                
Continuing operations                                                           
Net profit/(loss)                            639           (194)         (160)  
Adjusted for:                                                                   
Profit on sale of property, plant                                               
and equipment                               (24)             (3)         (104)  
Taxation effect of profit on sale of                                            
property, plant and equipment                  7               1            22  
Net gain on financial instruments            (4)             (5)           (7)  
Taxation effect of net gain on                                                  
financial instruments                          1               2             2  
Impairment of investments in associate*      160               -             -  
Foreign exchange loss/(gain)                                                    
reclassified from  other comprehensive                                          
income*                                       47            (22)          (22)  
Loss on sale of investment in subsidiary       -              24            24  
Taxation effect of loss on sale of                                              
investment in subsidiary                       -             (7)           (7)  
Impairment of other investments*               -               2             -  
Impairment of assets                           -             301           331  
Taxation effect of impairment of assets        -            (45)          (75)  
Headline earnings/(loss)                     826              54             4  
Discontinued operations                                                         
Net profit/(loss)                             20            (12)          (32)  
Adjusted for:                                                                   
Loss/(profit) on sale of property,                                              
plant and equipment                            -             (1)             -  
Taxation effect of loss/(profit) on                                             
sale of property, plant and equipment          -               -             -  
Profit on sale of investment in                                                 
subsidiary                                 (138)               -           (1)  
Taxation effect of profit on sale of                                            
investment in subsidiary                      34               -             -  
Foreign exchange (gain)/loss                                                    
reclassified from                                                               
other comprehensive income*                   84               -             -  
Headline loss                                  -            (13)          (33)  
Total headline earnings/(loss)               826              41          (29)  
(1) The comparative figures are re-presented due to Mount Magnet being          
reclassified as discontinued operation. See note 6 in this regard.              
* There is no taxation effect on these items.                                   
8. Trade and other receivables                                                  
Included in the balance at 31 March 2011 is an amount of R409 million for VAT   
claims receivable. This is an increase of R191 million from the balance of R218 
million at 31 December 2010.                                                    
9. Borrowings                                                                   
                       31 March     31 December       30 June        31 March   
2011            2010          2010            2010   
                    (Unaudited)                     (Audited)     (Unaudited)   
                      R million       R million     R million       R million   
Total long-term borrowings 1 487           1 243           981             780  
Total current                                                                   
portion of borrowings        336             344           209             221  
Total borrowings (1)(2)    1 823           1 587         1 190           1 001  
(1) In December 2009, the Company entered into a loan facility with Nedbank     
Limited, comprising 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 was paid on 30 June 2010.                           
In December 2010 the Company entered into an additional loan facility with      
Nedbank Limited, comprising a Term Facility of R500 million and a Revolving     
Credit Facility of R250 million. Interest terms are identical to the original   
facility. The Term Facility is repayable bi-annually in equal instalments of    
R62.5 million over four years, with the first instalment payable on 30 June     
2011. The terms of the original Revolving Credit Facility was amended to        
coincide with the repayment terms of the new Revolving Credit Facility, being   
payable after 3 years from December 2010.                                       
At 31 March 2011, R300 million (31 December 2010: R550 million) of these        
facilities had not been drawn down.                                             
(2) Included in the borrowings is R58 million (31 December 2010: R63 million;   
June 2010: R91 million; March 2010: R99 million) owed to Westpac Bank Limited in
terms of a finance lease agreement. The future minimum lease payments are as    
follows:                                                                        
31 March     31 December       30 June        31 March   
                           2011            2010          2010            2010   
                    (Unaudited)                     (Audited)     (Unaudited)   
                      R million       R million     R million       R million   
33              33   
Due within one year           29              28                                
Due between one and                                                             
five years                    30              36            60              69  
59              64            93             102   
Future finance charges       (1)             (1)           (2)             (3)  
Total future minimum                                                            
lease payments                58              63            91              99  
10. Commitments and contingencies                                               
                       31 March     31 December       30 June        31 March   
                           2011            2010          2010            2010   
                    (Unaudited)                     (Audited)     (Unaudited)   
R million       R million     R million       R million   
Capital expenditure commitments:                                                
Contracts for                                                                   
capital expenditure          191             166           117             271  
Authorised by the                                                               
directors but not                                                               
contracted for             2 175           2 669         1 006           1 667  
                          2 366           2 835         1 123           1 884   
This expenditure will be financed from existing resources and borrowings where  
necessary.                                                                      
Contingent liability                                                            
For a detailed disclosure on contingent liabilities refer to Harmony`s annual   
report for the financial year ended 30 June 2010, available on the group`s      
website at www.harmony.co.za. There were no significant changes in contingencies
since 30 June 2010.                                                             
11. Subsequent events                                                           
On 29 April 2011, Taung Gold Limited (Taung) paid R100 million to Harmony in    
terms of the amended agreement for the purchase of the Evander 6 shaft and      
Twistdraai areas. In terms of the amended agreement, the amount is repayable to 
Taung should the outstanding conditions for the transactions not be fulfilled.  
On 28 April 2011, Gold One International (Gold One) and Rand Uranium            
(Proprietary) Limited (Rand Uranium) announced that the shareholders of Rand    
Uranium have accepted an offer by Gold One for the shares in Rand Uranium for an
amount of US$250 million. Of this US$36 million accrues to Harmony to settle    
both the shareholder loan and the sale of shares.                               
12. Segment report                                                              
The segment report follows on page 28.                                          
13. Reconciliation of segment information to consolidated income statements and 
balance sheet                                                                   
                                                  Nine months     Nine months   
                                                        ended           ended   
                                                     31 March      31 March 1   
2011            2010   
                                                    R million       R million   
The "Reconciliation of segment information to consolidated income statement and 
balance sheet" line item in the segment report is 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                                      -               -  
Production costs from:                                                          
Discontinued operations                                      -               -  
Reconciliation of production profit to gross  profit:                           
Total segment revenue                                    9 023           8 239  
Total segment production costs and royalty expense     (6 649)         (6 254)  
Production profit as per segment report                  2 374           1 985  
Less: Discontinued operations                                -               -  
                                                        2 374           1 985   
Cost of sales items other than production costs                                 
and royalty expense                                    (1 476)         (1 583)  
Amortisation and depreciation                          (1 299)           (994)  
Impairment of assets                                         -           (300)  
Employment termination and restructuring costs           (158)           (123)  
Share-based payments                                      (91)           (108)  
Net insurance credit                                       174               -  
Rehabilitation costs                                      (13)            (16)  
Care and maintenance costs of restructured shafts         (88)            (42)  
Provision for post-retirement benefits                     (1)               -  
Gross profit as per income statements *                    898             402  
Reconciliation of total segment mining assets to                                
consolidated property, plant and equipment:                                     
Property, plant and equipment not allocated to a segment:                       
Mining assets                                              885             767  
Undeveloped property                                     5 139           5 328  
Other non-mining assets                                     69             346  
                                                        6 093           6 441   
(1) The comparative figures are re-presented due to Mount Magnet being          
reclassified as discontinued operation. See note 6 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.                                                                           
SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2011                          
(Rand/Metric) (Unaudited)                                                       
                                     Production     Production        Mining    
                          Revenue        cost(1)         profit        assets   
                        R million      R million      R million     R million   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani(2)                   671            603             68         1 087  
Doornkop                       530            418            112         3 027  
Evander                        477            471              6           936  
Joel                           295            293              2           181  
Kusasalethu                  1 252            976            276         3 151  
Masimong                     1 045            571            474           831  
Phakisa                        390            337             53         4 263  
Target(2)                      732            520            212         2 711  
Tshepong                     1 508            852            656         3 630  
Virginia                       539            451             88           696  
Surface                                                                         
All other surface                                                               
operations(3)                  866            640            226           143  
Total South Africa           8 305          6 132          2 173        20 656  
International                                                                   
Papua New Guinea               718            517            201         3 808  
Total international            718            517            201         3 808  
Total continuing                                                                
operations                   9 023          6 649          2 374        24 464  
Discontinued operations                                                         
Mount Magnet                     -              -              -             -  
Total discontinued                                                              
operations                       -              -              -             -  
Total operations             9 023          6 649          2 374        24 464  
Reconciliation of the                                                           
segment information to the                                                      
consolidated income statement                                                   
and balance sheet (refer to                                                     
note 13)                         -              -                        6 093  
9 023          6 649                       30 557   
                                              Capital     Kilograms    Tonnes   
                                         expenditure      produced     milled   
                                           R million            kg      t`000   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani(2)                                      231         2 289        314  
Doornkop                                          221         1 755        484  
Evander                                           146         1 552        409  
Joel                                               55         1 001        286  
Kusasalethu                                       274         4 023        794  
Masimong                                          129         3 453        678  
Phakisa                                           276         1 290        281  
Target(2)                                         348         3 017        562  
Tshepong                                          201         4 995      1 016  
Virginia                                           63         1 793        470  
Surface                                                                         
All other surface operations(3)                    93         2 923      7 866  
Total South Africa                              2 037        28 091     13 160  
International                                                                   
Papua New Guinea                                  212         2 292      1 259  
Total international                               212         2 292      1 259  
Total continuing operations                     2 249        30 383     14 419  
Discontinued operations                                                         
Mount Magnet                                        -             -          -  
Total discontinued operations                       -             -          -  
Total operations                                2 249        30 383     14 419  
Reconciliation of the segment                                                   
information to the consolidated                                                 
income statement and                                                            
balance sheet (refer to note 13)                                                
Notes:                                                                          
(1) Production costs includes royalty expense.                                  
(2) Production statistics for Steyn 2 and Target 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) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.        
SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2010                          
(Rand/Metric) (Unaudited)                                                       
Production     Production        Mining   
                          Revenue        cost(1)         profit        assets   
                        R million      R million      R million     R million   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani                      762            536            226           947  
Doornkop                       373            298             75         2 473  
Evander                        736            690             46           909  
Joel                           426            289            137           138  
Kusasalethu                  1 026            849            177         2 943  
Masimong                       916            524            392           745  
Phakisa                        250            225             25         3 983  
Target                         627            479            148         2 502  
Tshepong                     1 308            837            471         3 646  
Virginia                     1 137          1 094             43           659  
Surface                                                                         
All other surface                                                               
operations(2)                  678            433            245           128  
Total South Africa           8 239          6 254          1 985        19 073  
International                                                                   
Papua New Guinea(3)              -              -              -         3 872  
Total international              -              -              -         3 872  
Discontinued operations                                                         
Mount Magnet                     -              -              -            17  
Total discontinued                                                              
operations                       -              -              -            17  
Total operations             8 239          6 254          1 985        22 962  
Reconciliation of the                                                           
segment information to the                                                      
consolidated income statement                                                   
and balance sheet (refer to                                                     
note 13)                         -              -                        6 441  
                            8 239          6 254                       29 403   
                                             Capital     Kilograms     Tonnes   
                                         expenditure      produced     milled   
R million            kg      t`000   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani                                         114         2 938        399  
Doornkop                                          238         1 442        401  
Evander                                           137         2 898        642  
Joel                                               70         1 628        348  
Kusasalethu                                       344         4 044        721  
Masimong                                          133         3 639        681  
Phakisa                                           368           955        244  
Target                                            269         2 578        578  
Tshepong                                          191         5 031      1 174  
Virginia                                          142         4 495      1 415  
Surface                                                                         
All other surface operations(2)                    56         2 683      6 661  
Total South Africa                              2 062        32 331     13 264  
International                                                                   
Papua New Guinea(3)                               467         1 318          -  
Total international                               467         1 318          -  
Discontinued operations                                                         
Mount Magnet                                        -             -          -  
Total discontinued operations                       -             -          -  
Total operations                                2 529        33 649     13 264  
Reconciliation of the segment                                                   
information to the consolidated                                                 
income statement and  balance sheet                                             
(refer to note 13)                                                              
Notes:                                                                          
(1) Production costs include royalty expenses.                                  
(2) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.        
(3) Production statistics for Hidden Valley, President Steyn and Target 3 are   
shown for information purposes. The mine is in a build-up phase and revenue and 
costs are currently capitalised until commercial levels of production are       
reached.                                                                        
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)                                                
F F T De Buck* (Lead independent director)                                      
F Abbott*, J A Chissano*1, Dr C Diarra*#                                        
K V Dicks*, Dr D S Lushaba*, C Markus*,                                         
M Motloba*, M Msimang*, D Noko*,                                                
C M L Savage*, A J Wilkens*                                                     
* Non-executive                                                                 
Independent                                                                     
1 Mozambican                                                                    
# US/Mali Citizen                                                               
Investor Relations Team                                                         
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                                                
Henrika Basterfield                                                             
Investor Relations Officer                                                      
Telephone: +27 11 411 2314                                                      
Fax:       +27 11 692 3879                                                      
Mobile:    +27 82 759 1775                                                      
E-mail:    henrika@harmony.co.za                                                
Company Secretary                                                               
iThemba Governance and Statutory Solutions (Pty) Ltd                            
Annamarie van der Merwe                                                         
Telephone: +27 86 111 1010                                                      
Fax:       +27 86 504 1315                                                      
Mobile:    +27 83 264 0328                                                      
E-mail:    avdm@ithemba.co.za                                                   
South African Share Transfer Secretaries                                        
Link Market Services South Africa (Proprietary) Limited                         
(Registration number 2000/007239/07)                                            
13th Floor, Rennie House                                                        
19 Ameshoff Street                                                              
Braamfontein, 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                                               
London Stock Exchange Plc: HRM                                                  
Euronext, Brussels: HMY                                                         
Berlin Stock Exchange: HAM1                                                     
Registration number 1950/038232/06                                              
Incorporated in the Republic of South Africa                                    
ISIN: ZAE000015228                                                              
Date: 05/05/2011 08:00:09 Supplied by www.sharenet.co.za                     
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