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HAR - Harmony Gold Mining Company - Results for the quarter and the year ended

Release Date: 15/08/2011 08:00:28      Code(s): HAR
HAR - Harmony Gold Mining Company - Results for the quarter and the year ended  
30 June 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 quarter and the year ended 30 June 2011                         
SHAREHOLDER INFORMATION                                                         
Issued ordinary shares                                                          
at 30 June 2011                                                    430 084 628  
Issued ordinary shares                                                          
at 31 March 2011                                                   429 807 371  
Issued ordinary shares                                                          
at 30 June 2010                                                    428 654 779  
Market capitalisation                                                           
At 30 June 2011 (ZARm)                                                  38 686  
At 30 June 2011 (US$m)                                                   5 724  
At 31 March 2011 (ZARm)                                                 42 676  
At 31 March 2011 (US$m)                                                  6 304  
At 30 June 2010 (ZARm)                                                  34 888  
At 30 June 2010 (US$m)                                                   4 530  
Harmony ordinary share                                                          
and ADR prices                                                                  
12 month high (1 July 2010 to                                          R103.25  
30 June 2011) for ordinary shares                                               
12 month low (1 July 2010 to                                            R71.90  
30 June 2011) for ordinary shares                                               
12 month high (1 July 2010 to                                         US$15.57  
30 June 2011) for ADRs                                                          
12 month low (1 July 2010 to                                           US$9.72  
30 June 2011) for ADRs                                                          
Free float                                                                      
Ordinary shares                                                           100%  
ADR ratio                                                                  1:1  
JSE Limited                                                                HAR  
Range for quarter (1 April to                                         R83.29 -  
30 June 2011 closing prices)                                           R103.25  
Average daily volume for the                                         1 546 143  
quarter (1 April to 30 June 2011)                                       shares  
Range for quarter (1 April to                                         R68.65 -  
30 June 2010 closing prices)                                            R81.40  
Average daily volume for the                                         1 918 132  
quarter (1 April to 30 June 2010)                                       shares  
New York Stock Exchange, Inc                                                    
including other US trading                                                 HMY  
Range for quarter (1 April to                                       US$12.34 -  
30 June 2011 closing prices)                                          US$15.57  
Average daily volume for the                                         2 771 880  
quarter (1 April to 30 June 2011)                                       shares  
Range for quarter (1 April to                                        US$9.04 -  
30 June 2010 closing prices)                                          US$10.57  
Average daily volume for the                                         1 072 003  
quarter (1 April to 30 June 2010)                                       shares  
Key features                                                                    
Of the quarter...                                                               
- Gold production 3% higher at 10 152 kg (326 394 ounces)                       
- Grade remained steady                                                         
- R/kg cost higher at R242 851/kg ($1 115/oz) due to increased electricity and  
stores costs, as well as inclusion of Target 3                                  
- Cash operating profit 5% higher at R901m (US$133m)                            
Of the year...                                                                  
- Improved safety rates                                                         
- Operations in build-up showed 22% improvement in production                   
- Improved underground grade at 4.60g/t                                         
- Net profit of R617m/US$87m (loss of R192m/US$24m in FY10)                     
- Basic earnings per share at R1.44 (loss of 46c in FY10)                       
- Headline earnings of R957m/US$137m (R4m in FY10)                              
- Wafi-Golpu resource at more than 1 billion tonnes                             
- Created financial flexibility: US$300m debt facility                          
Financial summary for the fourth quarter and year ended 30 June 2011            
                                             Quarter     Quarter       Q on Q   
                                                June       March     Variance   
2011        2011            %   
Gold produced (1)           - kg               10 152       9 857            3  
                           - oz              326 394     316 909            3   
Cash costs                  - R/kg            242 851     217 802         (12)  
- US$/oz            1 115         970         (15)   
Gold sold                   - kg               10 412       9 716            7  
                           - oz              334 752     312 378            7   
Gold price                  - R/kg            329 536     312 029            6  
received                    - US$/oz            1 513       1 389            9  
Operating                   - R million           901         855            5  
profit                      - US$ million         133         122            9  
Basic                       - SAc/s              (10)          55       <(100)  
(loss)/earnings             - USc/s               (1)           8       <(100)  
per share*                                                                      
Headline profit*            - Rm                  130         390         (67)  
                           - US$m                 19          56         (66)   
Headline earnings           - SAc/s                30          91         (67)  
per share*                  - USc/s                 4          13         (69)  
Exchange rate               - R/US$              6.78        6.99          (3)  
                                       Year ended     Year ended       Y on Y   
June           June     variance   
                                             2011           2010            %   
Gold produced (1)     - kg                  40 535         44 433          (9)  
                     - oz               1 303 228      1 428 545          (9)   
Cash costs            - R/kg               226 667        195 162         (16)  
                     - US$/oz               1 009            801         (26)   
Gold sold             - kg                  41 043         43 969          (7)  
                     - oz               1 319 563      1 413 633          (7)   
Gold price            - R/kg               307 875        266 009           16  
received              - US$/oz               1 370          1 092           25  
Operating             - R million            3 275          2 926           12  
profit                - US$ million            468            386           21  
Basic                 - SAc/s                  139           (38)         >100  
(loss)/earnings       - USc/s                   20            (5)         >100  
per share*                                                                      
Headline profit*      - Rm                     957              4         >100  
- US$m                   137              1         >100   
Headline earnings     - SAc/s                  223              1         >100  
per share*            - USc/s                   32              -          100  
Exchange rate         - R/US$                 6.99           7.58          (8)  
* Reported amounts include continuing operations only                           
(1) Production statistics for Steyn 2 and Target 3 have been included. Steyn 2  
is currently in a build-up phase and Target 3 was in build-up phase up to the   
end of March 2011. Revenue and costs are capitalised for the period that these  
mines are in build-up phase. Revenue capitalised includes: Quarter ending June  
2011 Steyn 2, 27 kg (Mar 2011 - 14 kg) and Target 3, 0 kg (Mar 2011 - 250 kg),  
year ended June 2011 Steyn 2, 90 kg (June 2010 - 33 kg) and Target 3, 531 kg    
(June 2010 - 117 kg).                                                           
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                                                        
With another financial year that has drawn to a close, it is important to take  
stock of what we have achieved and to assess the progress made against our      
ambition to create a company capable of generating earnings that fund growth and
dividends on a sustainable basis.                                               
During financial year 2011, we:                                                 
- commissioned excellent gold mines in South Africa and Papua New Guinea (PNG); 
- expanded the world class Wafi-Golpu resource to 9 million tonnes (Mt) of      
copper and 26.6 million ounces (Moz) of gold (100%);                            
- increased production from growth projects by 22% year on year;                
- tailored each mine`s business plans to its unique requirements;               
- pro-actively addressed industry challenges;                                   
- improved production and productivity at most of our mines, and continue to    
work at replicating that level of success across the board;                     
- increased Harmony`s exploration exposure in PNG - a country with world class  
exploration potential - to 8000 kmSquared;                                      
- improved the quality of our asset portfolio through the disposal and closure  
of non-core assets;                                                             
- celebrated Harmony`s 60th year in operation on 25 August 2010.                
We made good progress in getting the company where we want it to be - producing 
better quality ounces. Hidden Valley in PNG is now an operating mine, Harmony`s 
first greenfields offshore development, which was formally opened in September  
2010; in South Africa we have Kusasalethu, Doornkop and Phakisa projects, all of
which are in build-up, and Tshepong and Masimong which have been steady         
contributors to production. We dealt with the challenges at mines such as       
Evander, Target and Joel to ensure these mines are positioned to deliver on     
their production targets.                                                       
Harmony has invested a great deal in the expansion of its production base in    
South Africa and PNG. The investment in exploration continues to pay dividends, 
with the Wafi-Golpu resource showing a phenomenal 57% increase to over 1 billion
tonnes during the year. Golpu`s grade is over 1% copper, confirming it is one of
the highest grade copper gold porphyry systems in South East Asia. These        
excellent results validate our long-held belief that PNG is a game-changing     
region for Harmony.                                                             
On a 100% basis, Golpu alone now hosts a resource of 869Mt, containing 19.3Moz  
of gold and 9.0Mt of copper (62Moz on a gold equivalent (note 1) basis). This   
represents a significant year-on-year increase, with an additional 368Mt (73%   
increase), comprising 8 956kt copper (88% increase) and 10.5Moz ounces of gold  
(119% increase). Our resource base in PNG now represent 10% of Harmony`s total  
gold resources (or 21% of the resource on a gold equivalent basis), which is in 
line with the Company`s strategy to increase its geographic                     
diversification.                                                                
Annual production was lower than planned at 1.3Moz, largely due to safety       
stoppages and under-performance at some of the shafts. We continue to improve   
the business planning process, using benchmarks and targets we believe to be    
realistic. Our `life of mine` plans support our commitment to improving the     
grades from our underground operations, lowering our cost base and benchmarking 
our costing parameters internally across our operations as well as externally   
against other gold producers. Our focus remains on producing safe, profitable   
ounces and our operations in build-up will add to our production in future.     
Safety                                                                          
Tragically, three employees (South Africa) and one contractor (PNG) lost their  
lives during the final quarter of the financial year. The deceased were Mbuzeni 
Sihoyiya, a locomotive guard at Kusasalethu, Michael Sello Matea, underground   
assistant at Joel, Mbuyiseli Malungisa, a locomotive guard at Masimong and Kerry
Kowitz, a contractor working on the Wafi-Golpu access road. I would like to     
extend my deepest condolences to their families, friends and colleagues.        
Safety is a top priority at Harmony. We have put in place a number of safety    
initiatives, which have resulted in excellent safety achievements. Fatalities   
do, however, continue to occur. As a result, we appointed Alwyn Pretorius       
(previously the chief operating officer: North region), who is very familiar    
with Harmony`s underground working environment, to assist in further improving  
and accelerating the execution of our safety and health strategy.               
Gold price                                                                      
Increasing global economic uncertainty is making gold an even stronger          
investment option than it already was. At over $1 700/oz, gold remains a        
currency and we believe the gold price will continue its strength. Investors in 
Harmony have complete exposure to the spot gold price, as the company does not  
hedge its gold. During the past quarter the gold price received strengthened    
from R312 029/kg to R329 536/kg.                                                
Operational results                                                             
Quarter on quarter                                                              
Gold production for the June 2011 quarter is 3% higher than the previous        
quarter, despite days lost to public holidays. The past quarter saw excellent   
improvements in development metres, mainly at the build-up operations. Build-up 
at Phakisa, Doornkop, Kusasalethu and Hidden Valley progressed well.            
Grade remained steady at 2.08g/t.                                               
Year on year                                                                    
Tonnes milled for the year under review increased by 7% or 1 317 000 tonnes when
compared to the previous financial year. The main contributors were:            
- Doornkop: The build-up resulted in an additional 178 000 tonnes (33%) being   
milled for the year under review;                                               
- Target 3: The inclusion of its first commercial production during the June    
2011 quarter (75 000 tonnes);                                                   
- Free State surface operations: Tonnes increased by 1.2 million tonnes, mainly 
waste rock dumps;                                                               
- Hidden Valley: Recorded a full year of production and tonnes milled increased 
by 1.4 million tonnes to 1.7 million tonnes, achieving its production guidance  
for the year.                                                                   
The operations in build-up showed an increase in gold production. Hidden        
Valley produced 3 118kg, an additional 1 215kg (64%) in comparison to the       
1 903kg it produced in the previous financial year. Doornkop`s production       
increased by 562kg (29%), Phakisa`s by 391kg (29%) and Kusasalethu`s by 165kg   
(3%). Gold production for the year under review decreased by 9% (3 898kg),      
mainly as a result of the shafts that were closed in the 2011 financial         
year. Closed shafts accounted for a decrease in gold produced of 4 092kg        
year on year. Underground grade increased year-on-year to 4.60g/t.              
Financial overview                                                              
Quarter on quarter                                                              
Quarter on quarter, cash operating costs in R/kg terms were 12% higher, mainly  
due to higher electricity and stores costs, as well as the inclusion of Target 3
(which reached commercial production during the quarter) in our operating       
results. Higher stores costs are due to additional maintenance performed during 
public holidays. Electricity costs are higher due to a 25% increase in tariffs  
as from April 2011 and the inclusion of one month`s winter tariff.              
Operating profit at R901 million was 5% higher, mainly due to the increase in   
the average Rand gold price received to R329 536/kg.                            
Year on year                                                                    
Cash operating costs in Rand terms increased by R686 million or 8%, mainly due  
to restructuring costs, the inclusion of Target 3, higher electricity costs and 
higher labour costs. This resulted in the cash operating cost in R/kg terms     
increasing by 16% from R195 162/kg in FY10 to R226 667/kg in FY11. Rand per     
tonne unit costs remained stable at R469/tonnes.                                
Capital expenditure for FY11 decreased by R317 million (10%) compared to the    
previous financial year. This is mainly attributed to a reduction in capital    
spent on Hidden Valley of 47% or R252 million. Capital from the South African   
operations decreased by R65 million (2%), due to reduced expenditure at Phakisa 
(R117 million), Doornkop (R50 million) and Kusasalethu (R50 million).           
Reserves and resources                                                          
As at 30 June 2011, Harmony`s mineral reserves amounted to 41.6Moz of gold,     
spread across Harmony`s assets in South Africa and PNG. The reserves of         
Kusasalethu, Doornkop, Tshepong and Phakisa in South Africa and Hidden Valley in
PNG now constitute 45% of Harmony`s total mineral reserves. Once the pre-       
feasibility study of Wafi-Golpu has been completed, more ounces from PNG will be
added to Harmony`s reserves.                                                    
The reserve declaration excludes Rand Uranium reserves (the asset which is being
held for sale), as well as some Evander projects which are no longer included in
Harmony`s long term mining plans. These exclusions, together with mine          
depletion, resulted in a decrease of 6.5Moz year on year, allowing Harmony to   
refocus on growing, developing and operating its portfolio of quality assets.   
As at 30 June 2011 Harmony`s attributable gold mineral resources were 163.9Moz. 
Gold resources in PNG increased 51% year on year to 16.3Moz and now comprise 10%
of the group`s total resource base.                                             
Harmony`s PNG resource inventory also includes economically significant copper, 
molybdenum and silver that co-occur with gold. Attributable copper resources    
grew by 2.1Mt to 4.5Mt, up 86% year on year (and equates to 9.75Moz on a gold   
equivalent basis (note 1)). Molybdenum increased to 84 000 tonnes (up 50%) and  
silver increased to 55.16Moz (up 7.8%).                                         
These increases were driven by resource expansions at Hidden Valley and Wafi-   
Golpu.                                                                          
Creating financial flexibility                                                  
Harmony has strengthened its financial flexibility through obtaining a 4 year   
US$300 million revolving credit facility with Nedbank Limited and FirstRand     
Bank Limited. The loan agreement was signed on 11 August 2011. This facility    
is specifically ear-marked for Harmony`s activities in PNG.                     
Dividend                                                                        
We are pleased to declare a dividend of 60 SA cents per ordinary share for the  
year ended 30 June 2011.                                                        
Looking ahead                                                                   
Post year-end, following a five day strike, Harmony signed a two year wage      
agreement with the National Union of Mineworkers (NUM), Solidarity and UASA     
(collectively referred to as the "Unions") on the 2nd of August 2011. The       
increase in wages will be off-set by improvements in productivity aimed at the  
more effective utilization of our mining assets. Approximately 500kg of         
production was lost due to the strike.                                          
The wage agreement between Harmony and the Unions also includes a profit share  
scheme in which all employees in the bargaining unit will share on a quarterly  
basis. The profit share will be based on 1% of operating profits less capital   
expenditure from the company`s South African assets.                            
We look forward to having the Unions as our partners in creating a sustainable  
mining industry.                                                                
Financial year 2011 was filled with great achievements. We have improved our    
safety rates, secured excellent exploration results, continue to build up our   
operations and future production potential and certain operations have generated
free operational cash flow.                                                     
Financial year 2012 promises to be equally exciting. We remain focussed on      
continuing to deliver on our long term targets and to maximise shareholder      
value.                                                                          
Graham Briggs                                                                   
Chief Executive Officer                                                         
Note 1. Gold equivalent ounces are calculated assuming a US$1150/oz Au,         
US$2.50/lb Cu and US$13.50/oz Ag with 100% recovery for all metals              
Safety and health                                                               
Safety                                                                          
The provision of safe and healthy working places remains a key priority for     
Harmony, as does the elimination of all workplace injuries and work-related ill 
health effects. This has always been an important area of focus for Harmony.    
Harmony will continue to implement and maintain safety initiatives and is in the
process of rolling out a new improved fall of ground strategy to further reduce 
fall of ground incidents - one of the main contributors to fatal accidents.     
It is with deep regret that we report four fatalities during the June 2011      
quarter, bringing total fatalities for the 2011 financial year to 16. This is an
improvement on the previous financial year, which recorded 22 fatalities.       
However, we need to continue to work towards avoiding these incidents           
altogether.                                                                     
Harmony`s Lost Time Injury Frequency Rate (LTIFR) in South Africa remains a     
single digit, for the eleventh consecutive quarter. Quarter on quarter the LTIFR
rate regressed from 8.65 to 9.64, whilst LTIFR also regressed with 8% to 8.32   
when compared to the previous year.                                             
The Reportable Injury Frequency Rate (RIFR) (per million hours worked) in South 
Africa regressed by 13% when compared to the previous year (from 4.19 to 4.73)  
and by 17% quarter-on-quarter (from 4.62 to 5.39).                              
The Fatal Injury Frequency Rate (FIFR) improved by 19% when compared to the     
previous year, but regressed by 44% quarter-on- quarter (from 0.09 to 0.13)     
Safety achievements for the quarter included:                                   
South African underground operations:           1 000 000 fatality free shifts  
Doornkop shaft operations:                      1 000 000 fatality free shifts  
Doornkop total operations:                      1 000 000 fatality free shifts  
Phakisa:                                          500 000 fatality free shifts  
Target:                                           500 000 fatality free shifts  
Ongoing behavioural-based safety, competency training and development and       
research, together with the vigilant co-operation of our stakeholders, will     
continue to enable Harmony to become an even safer company to work for.         
Health                                                                          
Our pro-active approach to the health and wellness of our employees continues.  
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 programs and effectively utilise clinical information. This includes 
the review of policies, procedures, and processes, as well as training, on an   
ongoing basis.                                                                  
See our Sustainable Development Report for more details on our website          
www.harmony.co.za.                                                              
Financial overview                                                              
Quarter on quarter                                                              
Cash operating profits increased by 5% quarter on quarter to R901 million,      
mainly due to an increase in revenue driven by the 6% increase in the R/kg gold 
price received. The increase in revenue was offset by an 18% increase in        
production cost.                                                                
Earnings per share                                                              
Basic earnings per share decreased from 55 SA cents to a loss of 10 SA cents per
share. Headline earnings per share decreased from 91 SA cents to 30 SA cents.   
Headline earnings have been adjusted for the impairment of assets as            
well as the reversal of the impairment of investment in associate.              
Revenue                                                                         
Revenue increased from R2 949 million to R3 422 million, or 16%, mainly due to  
the 6% increase in the rand gold price received to R329 536/kg. The increase of 
gold sold by 7% or 696kg, together with the inclusion of the results of Target  
3, also contributed to the higher revenue total for the June 2011 quarter.      
Cost of sales                                                                   
Cost of sales increased from R2 623 million to R3 491 million in the June 2011  
quarter. The main reasons for this increase are:                                
- higher production costs, driven by higher electricity costs which include the 
annual increase by Eskom as well as one month`s winter tariff (R115 million     
increase); increased labour costs of R67 million as a result of an increase in  
employees due to the build-up at certain shafts; an increase in stores cost due 
to higher production. Also contributing to the increase is the inclusion of     
costs related to Target 3, amounting to R93 million for the June 2011 quarter.  
- an increase in amortisation and depreciation from R431 million in the March   
2011 quarter to R477 million. This increase relates primarily to an increase in 
tonnes mined at several shafts as well as depreciation commencing at Target 3 as
it was brought into commercial production;                                      
- impairment of assets amounting to R264 million. The impairments relate to     
President Steyn 1 and 2 shafts (R99 million and R103 million respectively) and  
St Helena (R61 million of which R9 million relates to goodwill);                
- the annual adjustment on the rehabilitation provision amounting to R61        
million;                                                                        
- annual assessments of gold inventory balances resulting in write downs for    
Steyn Plant (R41 million) and Target stockpile (R30 million) and an adjustment  
on the gold in lock-up (R21 million).                                           
Exploration expenditure                                                         
During the June 2011 quarter, R102 million was spent on exploration. Of the     
amount spent during the quarter, R90 million relates to the PNG                 
projects. The expenditure for the March 2011 quarter was R77 million, R68       
million of which related to PNG. The increase quarter on quarter relates        
primarily to the pre-feasibility study being conducted at Wafi-Golpu.           
Reversal of impairment/(impairment) of investment in associate                  
This movement relates to the limiting of costs relating to the Rand Uranium     
transaction as well as some foreign exchange movements.                         
Net gain on financial instruments                                               
The movement for the June 2011 quarter comprises of the changes in fair value of
the Nedbank Equity Linked Deposits held by the environmental trusts.            
Investment income                                                               
Investment income for the June 2011 quarter was R24 million. This was a R40     
million decrease quarter-on-quarter as the March 2011 quarter included amounts  
related to the successful appeal against interest levied by SARS as well as     
interest on outstanding diesel refunds, which were not repeated in the current  
quarter.                                                                        
Finance cost                                                                    
Finance cost increased by R18 million quarter-on-quarter. This was              
mainly due to the draw-down of additional funds from the Nedbank                
facility during the previous quarter.                                           
Taxation                                                                        
The deferred taxation credit for the June 2011 quarter of R195 million credit   
consists mainly of credits relating to the change in the Life-of-Mine rates,    
amounting to R119 million, as well as additional temporary differences.         
Capital expenditure                                                             
Capital expenditure increased from R667 million to R788 million in the June 2011
quarter, as expected.                                                           
Borrowings                                                                      
The long term portion of borrowings decreased from R1 487 million to R1 229     
million in the June 2011 quarter as a result of the net repayment of R100       
million on the Revolving Credit Facility and the instalment payments on the term
facilities of R153 million.                                                     
Year on year                                                                    
Cash operating profits increased by 12% to R3 275 million for 2011. This was    
mainly due to an increase in revenue driven by the 16% increase in the          
rand/kilogram gold price.                                                       
Earnings per share                                                              
Basic earnings per share increased from a loss of 46 SA cents to earnings of 144
SA cents per share. Headline earnings per share also increased from a loss of 7 
SA cents to earnings of 223 SA cents.                                           
Revenue                                                                         
Revenue increased from R11 284 million to R12 445 million, or 10%, mainly due to
the 16% increase in the rand gold price received to R307 875/kg. This increase  
was offset by the 7% decrease in gold sold.                                     
Cost of sales                                                                   
Cost of sales increased from R10 484 million to R11 615 million for 2011. This  
is mainly due to increases in production costs (driven by increased labour,     
electricity and stores costs) and amortisation and depreciation.                
Exploration expenditure                                                         
During 2011, R353 million was spent on exploration with R296 million for PNG.   
The exploration expense in the income statement for 2010 was R219 million, with 
R165 million being spent in PNG.                                                
Net gain on financial instruments                                               
The movement in net gain on financial instruments for 2011 was R414 million,    
which includes R273 million recognised on the Witsgold transaction. The balance 
of the total relates to the changes in fair value of the Nedbank Equity Linked  
Deposits held by the Environmental Trusts.                                      
Taxation                                                                        
The deferred taxation credit for the year amounted to R492 million of which     
approximately R363 million relates to the change in the Freegold unredeemed     
capital allowance. The 2010 deferred tax charge of R251 million primarily       
related to increases in average deferred tax rates, notably at Evander.         
Notice of cash dividend                                                         
Dividend No. 82 of 60 cents per ordinary share, being the dividend for the year 
ended 30 June 2011, has been declared payable on Monday, 19 September 2011 to   
those shareholders recorded in the books of the company at the close of business
on Friday, 16 September 2011. The dividend is declared in the currency of the   
Republic of South Africa. Any change in address or dividend instruction to apply
to this dividend must be received by the company`s transfer secretaries or      
registrar not later than Friday, 9 September 2011.                              
Last date to trade ordinary shares cum dividend       Friday, 9 September 2011  
Ordinary shares trade ex dividend                    Monday, 12 September 2011  
Currency conversion date in respect of the UK own                               
name shareholders                                    Monday, 12 September 2011  
Record date                                          Friday, 16 September 2011  
Payment date                                         Monday, 19 September 2011  
No dematerialisation or rematerialisation of share certificates may occur       
between Monday, 12 September 2011 and Friday, 16 September 2011, both dates     
inclusive, nor may any transfers between registers take place during this       
period.                                                                         
CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)                                 
Quarter ended                  
                                    30 June          31 March         30 June   
                                       2011              2011            2010   
                                (Unaudited)       (Unaudited)     (Unaudited)   
Note       R million         R million       R million   
Continuing operations                                                           
Revenue                                3 422             2 949           3 045  
Cost of sales              2         (3 491)           (2 623)         (2 649)  
Production costs                     (2 508)           (2 064)         (2 075)  
Royalty expense                         (13)              (30)            (28)  
Amortisation and                                                                
depreciation                           (477)             (431)           (383)  
Impairment of assets                   (264)                 -            (30)  
Employment termination                                                          
and restructuring costs                    -              (26)            (82)  
Other items                            (229)              (72)            (51)  
Gross (loss)/profit                     (69)               326             396  
Corporate, administration                                                       
and other expenditure                   (71)              (93)           (124)  
Social investment                                                               
expenditure                             (18)              (27)            (28)  
Exploration expenditure    3           (102)              (77)            (60)  
Profit on sale of                                                               
property, plant and                                                             
equipment                                  5                 8             101  
Other income/(expenses)                                                         
- net                                     33               (8)              40  
Operating (loss)/profit                (222)               129             325  
(Loss)/profit from                                                              
associates                                 -              (24)             (7)  
Reversal of impairment/                                                         
(impairment) of investment                                                      
in associate               6              18             (160)               -  
Loss on sale of investment                                                      
in subsidiary                              -                 -               -  
Net gain on financial                                                           
instruments                4              22                 3              11  
Investment income                         24                64              25  
Finance cost                            (89)              (71)            (94)  
(Loss)/profit before                                                            
taxation                               (247)              (59)             260  
Taxation                                 205               297           (227)  
Normal taxation                           10              (12)            (20)  
Deferred taxation          5             195               309           (207)  
Net (loss)/profit from                                                          
continuing operations                   (42)               238              33  
Discontinued operations                                                         
(Loss)/profit from                                                              
discontinued operations    6               -                 -            (20)  
Net (loss)/profit                       (42)               238              13  
Attributable to:                                                                
Owners of the parent                    (42)               238              13  
Non-controlling interest                   -                 -               -  
(Loss)/earnings per                                                             
ordinary share (cents)     7                                                    
- (Loss)/earnings from                                                          
continuing operations                   (10)                55               8  
- (Loss)/earnings from                                                          
discontinued operations                    -                 -             (5)  
Total (loss)/earnings                                                           
per ordinary share (cents)              (10)                55               3  
Diluted (loss)/earnings                                                         
per ordinary share (cents) 7                                                    
- (Loss)/earnings from                                                          
continuing operations                   (10)                55               8  
- (Loss)/earnings from                                                          
discontinued operations                    -                 -             (5)  
Total diluted(loss)/earnings                                                    
per ordinary share (cents)              (10)                55               3  
                                                                   Year ended   
                                                       30 June        30 June   
                                                          2011           2010   
(Audited)   
                                                     R million      R million   
Continuing operations                                                           
Revenue                                                  12 445         11 284  
Cost of sales                                          (11 615)       (10 484)  
Production costs                                        (9 074)        (8 325)  
Royalty expense                                            (96)           (33)  
Amortisation and                                                                
depreciation                                            (1 776)        (1 375)  
Impairment of assets                                      (264)          (331)  
Employment termination                                                          
and restructuring costs                                   (158)          (205)  
Other items                                               (247)          (215)  
Gross (loss)/profit                                         830            800  
Corporate, administration                                                       
and other expenditure                                     (354)          (382)  
Social investment                                                               
expenditure                                                (84)           (81)  
Exploration expenditure                                   (353)          (219)  
Profit on sale of                                                               
property, plant and                                                             
equipment                                                    29            104  
Other income/(expenses)                                                         
- net                                                      (24)           (58)  
Operating (loss)/profit                                      44            164  
(Loss)/profit from                                                              
associates                                                 (51)             56  
Reversal of impairment/                                                         
(impairment) of investment                                                      
in associate                                              (142)              -  
Loss on sale of investment                                                      
in subsidiary                                                 -           (24)  
Net gain on financial                                                           
instruments                                                 414             38  
Investment income                                           140            187  
Finance cost                                              (288)          (246)  
(Loss)/profit before                                                            
taxation                                                    117            175  
Taxation                                                    480          (335)  
Normal taxation                                            (12)           (84)  
Deferred taxation                                           492          (251)  
Net (loss)/profit from                                                          
continuing operations                                       597          (160)  
Discontinued operations                                                         
(Loss)/profit from                                                              
discontinued operations                                      20           (32)  
Net (loss)/profit                                           617          (192)  
Attributable to:                                                                
Owners of the parent                                        617          (192)  
Non-controlling interest                                      -              -  
(Loss)/earnings per                                                             
ordinary share (cents)                                                          
- (Loss)/earnings from                                                          
continuing operations                                       139           (38)  
- (Loss)/earnings from                                                          
discontinued operations                                       5            (8)  
Total (loss)/earnings                                                           
per ordinary share (cents)                                  144           (46)  
Diluted (loss)/earnings                                                         
per ordinary share (cents)                                                      
- (Loss)/earnings from                                                          
continuing operations                                       139           (38)  
- (Loss)/earnings from                                                          
discontinued operations                                       5            (8)  
Total diluted(loss)/earnings                                                    
per ordinary share (cents)                                  144           (46)  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (Rand)          
                                                Quarter ended                   
                                    30 June          31 March         30 June   
                                       2011              2011            2010   
(Unaudited)       (Unaudited)     (Unaudited)   
                                  R million         R million       R million   
Net (loss)/profit for the period        (42)               238              13  
Other comprehensive                                                             
income/(loss) for the period,                                                   
net of income tax                        418                 6           (166)  
Foreign exchange translation             473                22           (161)  
Fair value movement of                                                          
available-for-sale investments          (55)              (16)             (5)  
Total comprehensive                                                             
income/(loss) for the period             376               244           (153)  
Attributable to:                                                                
Owners of the parent                     376               244           (153)  
Non-controlling interest                   -                 -               -  
                                                             Year ended         
                                                        30 June       30 June   
2011          2010   
                                                                    (Audited)   
                                                      R million     R million   
Net (loss)/profit for the period                             617         (192)  
Other comprehensive                                                             
income/(loss) for the period,                                                   
net of income tax                                            368         (131)  
Foreign exchange translation                                 470         (127)  
Fair value movement of                                                          
available-for-sale investments                             (102)           (4)  
Total comprehensive                                                             
income/(loss) for the period                                 985         (323)  
Attributable to:                                                                
Owners of the parent                                         985         (323)  
Non-controlling interest                                       -             -  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)                                    
                                             At              At            At   
                                        30 June        31 March       30 June   
2011            2011          2010   
                                                    (Unaudited)     (Audited)   
                             Note     R million       R million     R million   
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment    8        31 221          30 557        29 556  
Intangible assets                8         2 170           2 188         2 210  
Restricted cash                               31              27           146  
Restricted investments                     1 883           1 866         1 742  
Investments in financial                                                        
assets                                       185             236            12  
Investments in associates                      -               -           385  
Inventories                      9           172             227           214  
Trade and other receivables                   23              69            75  
                                         35 685          35 170        34 340   
Current assets                                                                  
Inventories                      9           837             954           987  
Trade and other receivables                1 073           1 111           932  
Income and mining taxes                      139             119            74  
Cash and cash equivalents                    693             656           770  
2 742           2 840         2 763   
Assets of disposal groups                                                       
classified as held for sale      6           268             174           245  
                                          3 010           3 014         3 008   
Total assets                              38 695          38 184        37 348  
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                             28 305          28 290        28 261  
Other reserves                               762             299           258  
Retained earnings                          1 093           1 135           690  
                                         30 160          29 724        29 209   
Non-current liabilities                                                         
Deferred tax liability                     3 067           3 313         3 534  
Provision for environmental                                                     
rehabilitation                  10         1 971           1 785         1 692  
Retirement benefit obligation                                                   
and other provisions                         174             179           169  
Borrowings                      11         1 229           1 487           981  
                                          6 441           6 764         6 376   
Current liabilities                                                             
Borrowings                      11           330             336           209  
Income and mining taxes                        2              17             9  
Trade and other payables        12         1 746           1 343         1 410  
                                          2 078           1 696         1 628   
Liabilities of disposal                                                         
groups classified as held for                                                   
sale                             6            16               -           135  
                                          2 094           1 696         1 763   
Total equity and liabilities              38 695          38 184        37 348  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand)                   
for the year ended 30 June 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                   44             -             -            44  
Share-based payments               -           136             -           136  
Total comprehensive income                                                      
for the year                       -           368           617           985  
Dividends paid                     -             -         (214)         (214)  
Balance as at 30 June 2011    28 305           762         1 093        30 160  
Balance - 30 June 2009        28 091           339         1 095        29 525  
Issue of shares                  175             -             -           175  
Share-based payments             (5)           148             -           143  
Repurchase of equity                                                            
interest                           -          (98)             -          (98)  
Total comprehensive loss                                                        
for the year                       -         (131)         (192)         (323)  
Dividends paid                     -             -         (213)         (213)  
Balance as at 30 June 2010    28 261           258           690        29 209  
The statement of changes in equity for the year ended 30 June 2010 has been     
audited. The accompanying notes are an integral part of these condensed         
consolidated financial statements.                                              
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)                              
Quarter ended                   
                                    30 June          31 March         30 June   
                                       2011              2011            2010   
                                (Unaudited)       (Unaudited)     (Unaudited)   
Note       R million         R million       R million   
Cash flow from                                                                  
operating activities                                                            
Cash generated by                                                               
operations                             1 052               213             877  
Interest and dividends                                                          
received                                  24                64              32  
Interest paid                           (35)              (34)            (38)  
Income and mining taxes                                                         
(paid)/refund                           (19)                 8            (55)  
Cash generated by                                                               
operating activities                   1 022               251             816  
Cash flow from                                                                  
investing activities                                                            
(Increase)/decrease in                                                          
restricted cash                          (4)                 -               -  
Proceeds on disposal of                                                         
investment in                                                                   
subsidiary                                 -                 -               -  
Proceeds on disposal of                                                         
available-for-sale                                                              
financial assets                           -                 -               8  
Prepayment for Evander                                                          
6 and Twistdraai                                                                
transaction               12             100                 -               -  
Other investing                                                                 
activities                              (10)                16            (11)  
Net additions to                                                                
property, plant and                                                             
equipment                              (829)             (687)           (708)  
Cash utilised by                                                                
investing activities                   (743)             (671)           (711)  
Cash flow from                                                                  
financing activities                                                            
Borrowings raised                        150               250             300  
Borrowings repaid                      (415)              (17)           (106)  
Ordinary shares issued                                                          
- net of expenses                         15                13               7  
Dividends paid                             -                 -               -  
Cash                                                                            
(utilised)/generated by                                                         
financing activities                   (250)               246             201  
Foreign currency                                                                
translation adjustments                    8               (7)            (17)  
Net increase/(decrease)                                                         
in cash and cash                                                                
equivalents                               37             (181)             289  
Cash and cash                                                                   
equivalents - beginning                                                         
of period                                656               837             481  
Cash and cash                                                                   
equivalents - end of                                                            
period                                   693               656             770  
                                                             Year ended         
                                                        30 June       30 June   
                                                           2011          2010   
(Audited)   
                                                      R million     R million   
Cash flow from operating activities                                             
Cash generated by operations                               2 418         1 611  
Interest and dividends received                              140           187  
Interest paid                                              (134)          (90)  
Income and mining taxes (paid)/refund                       (45)         (125)  
Cash generated by operating activities                     2 379         1 583  
Cash flow from investing activities                                             
(Increase)/decrease in restricted cash                       116            15  
Proceeds on disposal of investment in subsidiary             229            24  
Proceeds on disposal of available-for-sale                                      
financial assets                                               1            50  
Prepayment for Evander 6 and Twistdraai                                         
transaction                                                  100             -  
Other investing activities                                    10          (12)  
Net additions to property, plant and equipment           (3 110)       (3 493)  
Cash utilised by investing activities                    (2 654)       (3 416)  
Cash flow from financing activities                                             
Borrowings raised                                            925         1 236  
Borrowings repaid                                          (546)         (391)  
Ordinary shares issued - net of expenses                      44            18  
Dividends paid                                             (214)         (213)  
Cash (utilised)/generated by financing activities            209           650  
Foreign currency translation adjustments                    (11)             3  
Net increase/(decrease) in cash and cash                                        
equivalents                                                 (77)       (1 180)  
Cash and cash equivalents - beginning of period              770         1 950  
Cash and cash equivalents - end of period                    693           770  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE FOURTH         
QUARTER AND YEAR ENDED 30 JUNE 2011                                             
1. Accounting policies                                                          
Basis of accounting                                                             
The condensed consolidated financial statements for the year ended 30 June 2011 
have been prepared in accordance with IAS 34, Interim Financial Reporting, JSE  
Listing 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                   
                                    30 June          31 March         30 June   
2011              2011            2010   
                                (Unaudited)       (Unaudited)     (Unaudited)   
                                  R million         R million       R million   
Production costs                       2 508             2 064           2 075  
Royalty expense                           13                30              28  
Amortisation and depreciation            477               431             383  
Impairment of assets(1)                  264                 -              30  
Rehabilitation expenditure(2)             61                 4              14  
Care and maintenance cost of                                                    
restructured shafts                       37                35              15  
Employment termination and                                                      
restructuring costs                        -                26              82  
Share based payments                      45                28              41  
Other(3)                                  86                 5            (19)  
Total cost of sales                    3 491             2 623           2 649  
                                                             Year ended         
30 June       30 June   
                                                           2011          2010   
                                                                    (Audited)   
                                                      R million     R million   
Production costs                                           9 074         8 325  
Royalty expense                                               96            33  
Amortisation and depreciation                              1 776         1 375  
Impairment of assets(1)                                      264           331  
Rehabilitation expenditure(2)                                 74            29  
Care and maintenance cost of restructured shafts             124            57  
Employment termination and restructuring costs               158           205  
Share based payments                                         136           148  
Other(3)                                                    (87)          (19)  
Total cost of sales                                       11 615        10 484  
(1) During the June 2011 quarter, an impairment of R264 million relating to     
President Steyn 1 and 2 shafts and St Helena was recorded. The impairments for  
the year ended 30 June 2010 relates mainly to the Virginia and Evander          
operations, which was recorded as a result of shaft closures. (2) The expense   
for the June 2011 quarter results from the annual re-estimation of the          
rehabilitation obligation. (3) Included in Other for the June 2011 quarter is   
R41 million for the write down of the Steyn plant demolishment project.         
3.   Exploration expenditure                                                    
                                                 Quarter ended                  
                                    30 June          31 March         30 June   
2011              2011            2010   
                                (Unaudited)       (Unaudited)     (Unaudited)   
                                  R million         R million       R million   
Total exploration expenditure            111                87              60  
Less: expenditure capitalised(1)         (9)              (10)               -  
Exploration expenditure per                                                     
income statement                         102                77              60  
                                                           Year         ended   
30 June       30 June   
                                                           2011          2010   
                                                                    (Audited)   
                                                      R million     R million   
Total exploration expenditure                                398           219  
Less: expenditure capitalised(1)                            (45)             -  
Exploration expenditure per income statement                 353           219  
(1) Relates to Brownfields exploration at Hidden Valley                         
4. Net gain on financial instruments                                            
During the September 2010 quarter, a gain of R273 million was recognised on the 
Freegold option. 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. The remainder of the total relates         
primarily to the increase in the fair value of the Nedbank Equity Linked        
Deposits held by the Environmental Trusts.                                      
5. Deferred taxation                                                            
The deferred taxation credit of R195 million includes credits of R119 million   
related to the annual re-assessment of the deferred tax rates.                  
The deferred taxation credit of R309 million in the March 2011 quarter includes 
a deferred tax credit of R333 million relating to Freegold. 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 setdown 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. For additional          
disclosure on the mining ringfencing application refer to note 13.              
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 capital portion of the 
subordinated shareholder`s loan of R61 million due to the group will be repaid  
out of the sale proceeds. Where the carrying value of the investment exceeds the
expected proceeds, an impairment is recognised in the income statement. An      
impairment of R142 million has been recognised for the 2011 year.               
Evander 6 and Twistdraai                                                        
On 10 September 2010, Harmony concluded a sale of assets agreement with Taung   
Gold Limited (Taung), in which Taung acquired the Evander 6 Shaft, the related  
infrastructure and surface rights permits as well as a mining right over the    
Evander 6 and Twistdraai areas. The total purchase consideration is R225        
million, which will be settled in cash when all remaining conditions precedent  
to the transaction have been fulfilled. In terms of an amended agreement Taung  
paid an amount of R100 million in April 2011. Refer to note 12 for additional   
disclosure.                                                                     
7. (Loss)/earnings and net asset value per share                                
(Loss)/earnings per share is calculated on the weighted average number of shares
in issue for the quarter ended 30 June 2011: 430.0 million (31 March 2011: 429.5
million, 30 June 2010: 427.6 million), and the year ended 30 June 2011: 429.3   
million (30 June 2010: 426.4 million).                                          
The diluted (loss)/earnings per share is calculated on weighted average number  
of diluted shares in issue for the quarter ended 30 June 2011: 431.4 million    
(31 March 2011: 430.7 million, 30 June 2010: 429.1 million), and the year       
ended 30 June 2011: 430.4 million (30 June 2010: 427.8 million).                
                                                Quarter ended                   
                                      30 June        31 March         30 June   
                                         2011            2011            2010   
(Unaudited)     (Unaudited)     (Unaudited)   
Total (loss)/earnings per                                                       
share (cents):                                                                  
Basic (loss)/earnings                     (10)              55               3  
Diluted (loss)/earnings                   (10)              55               3  
Headline earnings/(loss)                    30              91            (10)  
- from continuing operations                30              91             (6)  
- from discontinued operations               -               -             (4)  
Diluted headline earnings/(loss)            30              91            (10)  
- from continuing operations                30              91             (6)  
- from discontinued operations               -               -             (4)  
                                    R million       R million       R million   
Reconciliation of headline                                                      
earnings/(loss):                                                                
Continuing operations                                                           
Net (loss)/profit                         (42)             238              33  
Adjusted for (net of tax):                                                      
Profit on sale of property, plant                                               
and equipment                              (5)             (8)           (101)  
Taxation effect of profit on sale                                               
of property, plant                                                              
and equipment                                1               2              21  
Net gain on financial instruments          (6)             (3)             (4)  
Taxation effect of net gain on                                                  
financial instruments                        2               1               1  
(Reversal of impairment)/impairment                                             
of investment in associate*               (18)             160               -  
Foreign exchange loss/(gain)                                                    
reclassified from other                                                         
comprehensive income*                        -               -               -  
Loss on sale of investment in                                                   
subsidiary                                   -               -               -  
Taxation effect of loss on sale of                                              
investment in subsidiary                     -               -               -  
Impairment of assets                       264               -              30  
Taxation effect of impairment of                                                
assets                                    (66)               -             (4)  
Headline earnings/(loss)                   130             390            (24)  
Discontinued operations                                                         
Net (loss)/profit                            -               -            (20)  
Adjusted for (net of tax):                                                      
Profit on sale of investment in                                                 
subsidiary                                   -               -               -  
Taxation effect of profit on sale                                               
of investment in subsidiary                  -               -               -  
Foreign exchange loss reclassified                                              
from other                                                                      
comprehensive income*                        -               -               -  
Headline loss                                -               -            (20)  
Total headline earnings/(loss)             130             390            (44)  
                                                     Year ended                 
                                                        30 June       30 June   
2011          2010   
                                                                    (Audited)   
Total (loss)/earnings per                                                       
share (cents):                                                                  
Basic (loss)/earnings                                        144          (46)  
Diluted (loss)/earnings                                      144          (46)  
Headline earnings/(loss)                                     223           (7)  
- from continuing operations                                 223             1  
- from discontinued operations                                 -           (8)  
Diluted headline earnings/(loss)                             222           (7)  
- from continuing operations                                 222             1  
- from discontinued operations                                 -           (8)  
R million     R million   
Reconciliation of headline earnings/(loss):                                     
Continuing operations                                                           
Net (loss)/profit                                            597         (160)  
Adjusted for (net of tax):                                                      
Profit on sale of property, plant and equipment             (30)         (104)  
Taxation effect of profit on sale of property, plant                            
and equipment                                                  8            22  
Net gain on financial instruments                            (7)           (7)  
Taxation effect of net gain on financial instruments           2             2  
(Reversal of impairment)/impairment of investment                               
in associate*                                                142             -  
Foreign exchange loss/(gain) reclassified from other                            
comprehensive income*                                         47          (22)  
Loss on sale of investment in subsidiary                       -            24  
Taxation effect of loss on sale of investment in                                
subsidiary                                                     -           (7)  
Impairment of assets                                         264           331  
Taxation effect of impairment of assets                     (66)          (75)  
Headline earnings/(loss)                                     957             4  
Discontinued operations                                                         
Net (loss)/profit                                             20          (32)  
Adjusted for (net of tax):                                                      
Profit on sale of investment in subsidiary                 (138)           (1)  
Taxation effect of profit on sale of investment in                              
subsidiary                                                    34             -  
Foreign exchange loss reclassified from other                                   
comprehensive income*                                         84             -  
Headline loss                                                  -          (33)  
Total headline earnings/(loss)                               957          (29)  
*There is no taxation effect on these items.                                    
Net asset value per share (cents)                                               
At              At              At   
                                      30 June        31 March         30 June   
                                         2011            2011            2010   
Number of shares in issue          430 084 628     429 807 371     428 654 779  
Net asset value per share (cents)        7 013           6 916           6 814  
8. Property, plant and equipment and intangible assets                          
An impairment of R264 million has been recognised at 30 June 2011 for the       
President Steyn 1 and 2 shafts and St Helena. R9 million of the impairment      
relates to goodwill, which is included in intangible assets.                    
9. Inventories                                                                  
A write down of R41 million was recorded for the Steyn plant demolishment       
project as well as R21 million for the net realisable value adjustment for other
gold in lock-up. In addition, a write down of R30 million was recorded for      
certain stockpiles.                                                             
10. Provision for environmental rehabilitation                                  
An adjustment of R157 million was made to the liability following the annual re-
estimation of the rehabilitation obligation.                                    
11. Borrowings                                                                  
                                        30 June        31 March       30 June   
                                           2011            2011          2010   
(Unaudited)     (Audited)   
                                      R million       R million     R million   
Total long-term borrowings                 1 229           1 487           981  
Total current portion of borrowings          330             336           209  
Total borrowings(1)(2)                     1 559           1 823         1 190  
(1) In December 2009, the Company entered into a loan facility with Nedbank     
Limited, comprising of a Term Facility of R900 million and a Revolving Credit   
Facility of R600 million. Interest accrues on a day to day basis over the term  
of the loan at a variable interest rate, which is fixed for a three month       
period, equal to JIBAR plus 3.5%. Interest is repayable quarterly. The Term     
Facility is repayable bi-annually in equal instalments of R90 million over five 
years. The first instalment was paid on 30 June 2010.                           
In December 2010, the Company entered into an additional loan facility with     
Nedbank Limited, comprising of 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. The first instalment was paid on 30 June 2011.   
The terms of the original Revolving Credit Facility were amended to coincide    
with the repayment terms of the new Revolving Credit Facility, being payable    
after three years from December 2010.                                           
At 30 June 2011, R400 million (31 March 2011: R300 million, 30 June 2010: R300  
million) of these facilities had not been drawn down.                           
(2) Included in the borrowings is R51 million (31 March 2011: R58 million; June 
2010: R91 million) owed to Westpac Bank Limited in terms of a finance lease     
agreement. The future minimum lease payments are as follows:                    
                                        30 June        31 March       30 June   
                                           2011            2011          2010   
                                                    (Unaudited)     (Audited)   
R million       R million     R million   
Due within one year                           29              29            33  
Due between one and five years                22              30            60  
                                             51              59            93   
Future finance charges                       (1)             (1)           (2)  
Total future minimum lease payments           50              58            91  
12. Trade and other payables                                                    
Included in the balance at 30 June 2011 is an amount of R100 million paid by    
Taung 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.                                                  
13. Commitments and contingencies                                               
                                        30 June        31 March       30 June   
                                           2011            2011          2010   
                                                    (Unaudited)     (Audited)   
R million       R million     R million   
Capital expenditure commitments:                                                
Contracts for capital expenditure            194             191           335  
Authorised by the directors but not                                             
contracted for                             1 504           2 175         1 006  
                                          1 698           2 366         1 341   
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. In addition the following contingencies have been 
added or amended:                                                               
(a) During March 2011, the Constitutional Court handed down judgement in the    
case of Mr Thembekile Mankayi v AngloGold Ashanti Limited (AGA) regarding       
litigation in terms of the Occupational Diseases in Mines and Works Act         
(ODIMWA). The judgement allows Mr Mankayi`s executor to proceed with the case in
the High Court of South Africa. Harmony was named as a second defendant in the  
original case. Should anyone bring similar claims against Harmony in future,    
those claimants would need to provide evidence proving that silicosis was       
contracted while in the employment of the Company and that it was contracted due
to negligence on the Company`s part. The link between the cause (negligence by  
the Company while in its employ) and the effect (the silicosis) will be an      
essential part of any case. It is therefore uncertain as to whether the Company 
will incur any costs related to silicosis claims in the future and due to the   
limited information available on any potential claims and the uncertainty of the
outcome of these claims, no estimation can be made for the possible obligation. 
(b) The Court`s decision on Freegold`s appeal regarding the South African       
Revenue Service`s (SARS) application of mining tax ring-fencing was received on 
1 August 2011 and the Court found in favour of SARS. The case was concluded in  
March 2011, but judgement was reserved at that time. The Company has decided to 
appeal the finding by the Court. Any additional income taxes payable are        
expected to be offset by additional deferred tax credits due to the impact this 
application will have on unredeemed capital.                                    
(c) On 18 April 2008, Harmony Gold Mining Company Limited was made aware that it
had been named or might be named as a defendant in a lawsuit filed in the U.S.  
District Court in the Southern District of New York on behalf of certain        
purchasers and sellers of Harmony`s American Depository Receipts (ADRs) and     
options with regard to certain of its business practices. Harmony has retained  
legal counsel. During January 2009, the plaintiff filed an Amended Complaint    
with the United States District Court (Court). Subsequently, the Company filed a
Motion to Dismiss all claims asserted in the Class Action Case. On 19 March     
2010, the Court denied the Company`s application for dismissal and subsequently 
the Company filed a Motion for Reconsideration in which it requested the Court  
to reconsider its judgement. This matter was heard on 27 April 2010 and the     
Company`s request for reconsideration of judgement was denied. The Company has  
subsequent to 30 June 2011 reached a mutually acceptable settlement with the    
lead plaintiff. The settlement requires final approval from the Court and no    
assurance can be given that the settlement will ultimately be approved.         
14. Subsequent events                                                           
(a) Refer to note 13(b) for details on the post balance sheet date event        
relating to the Freegold court case.                                            
(b) On 11 August 2011, the group entered into a US$300 million Revolving Credit 
Facility. The facility has a term of four years and attracts interest at LIBOR  
plus 260 basis points. This arrangement is subject to certain conditions        
precedent being satisfied. The facility was jointly arranged by Nedbank Limited 
and Firstrand Bank Limited (acting through its Rand Merchant Bank division).    
(c) On 12 August 2011 the board approved a payment of dividend of 60 SA cents   
per share for the year ended 30 June 2011.                                      
15. Segment report                                                              
The segment report follows on page 28 and 29.                                   
16. Reconciliation of segment information to consolidated income statements and 
balance sheets                                                                  
                                                        30 June       30 June   
2011          2010   
                                                                    (Audited)   
                                                      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                                     12 445        11 284  
Total segment production costs and royalty expense       (9 170)       (8 358)  
Production profit as per segment report                    3 275         2 926  
Less: discontinued operations                                  -             -  
                                                          3 275         2 926   
Cost of sales items other than production costs and                             
royalty expense                                          (2 445)       (2 126)  
Amortisation and depreciation                            (1 776)       (1 375)  
Impairment of assets                                       (264)         (331)  
Employment termination and restructuring costs             (158)         (205)  
Share-based payments                                       (136)         (148)  
Rehabilitation costs                                        (74)          (29)  
Care and maintenance costs of restructured shafts          (124)          (57)  
Other                                                         87            19  
Gross profit as per income statements *                      830           800  
Reconciliation of total segment mining assets to                                
consolidated property, plant and equipment:                                     
Property, plant and equipment not allocated to a                                
segment:                                                                        
Mining assets                                                871           786  
Undeveloped property                                       5 139         5 139  
Other non-mining assets                                       70            72  
Less: Non-current assets classified as held for sale           -         (226)  
                                                          6 080         5 771   
* The reconciliation was done up to the first recognisable line item on the     
income statement. The reconciliation will follow the income statement after     
that.                                                                           
17. Audit review                                                                
The condensed consolidated financial statements for the year ended 30 June 2011 
on pages 18 to 29 have been reviewed in accordance with the International       
Standards on Review Engagements 2410 - "Review of interim financial information 
performed by the independent Auditors of the entity" by PricewaterhouseCoopers  
Inc. Their unqualified review opinion is available for inspection at the        
company`s registered office.                                                    
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2011 (Rand/Metric)                    
                                       Production    Production        Mining   
                          Revenue         cost(1)        profit        assets   
R million       R million     R million     R million   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani(2)                   921            828             93           965  
Doornkop                       781            601            180         3 085  
Evander                        717            622             95           946  
Joel                           454            417             37           183  
Kusasalethu                  1 774          1 321            453         3 220  
Masimong                     1 326            756            570           899  
Phakisa                        551            473             78         4 317  
Target(2)                    1 080            815            265         2 729  
Tshepong                     2 007          1 172            835         3 589  
Virginia                       682            562            120           672  
Surface                                                                         
All other surface                                                               
operations(3)                1 176            888            288           155  
Total South Africa          11 469          8 455          3 014        20 760  
International                                                                   
Papua New Guinea               976            715            261         4 381  
Total international            976            715            261         4 381  
Total operations            12 445          9 170          3 275        25 141  
Reconciliation of the                                                           
segment information to                                                          
the consolidated                                                                
income statements and                                                           
balance sheets (refer                                                           
to note 16)                                                                     
-              -                        6 080   
                           12 445          9 170                       31 221   
                                             Capital     Kilograms     Tonnes   
                                      expenditure(4)      produced     milled   
R million           kg*     t`000*   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani(2)                                      321         3 051        426  
Doornkop                                          292         2 512        718  
Evander                                           196         2 302        541  
Joel                                               73         1 449        407  
Kusasalethu                                       380         5 609      1 099  
Masimong                                          178         4 280        868  
Phakisa                                           369         1 762        387  
Target(2)                                         439         3 981        805  
Tshepong                                          273         6 468      1 343  
Virginia                                           79         2 213        576  
Surface                                                                         
All other surface operations(3)                   147         3 790     10 431  
Total South Africa                              2 747        37 417     17 601  
International                                                                   
Papua New Guinea                                  289         3 118      1 679  
Total international                               289         3 118      1 679  
Total operations                                3 036        40 535     19 280  
(1) Production costs includes royalty expense.                                  
(2) Production statistics for Steyn 2 and up to March 2011 for Target 3 are     
included for information purposes. Steyn 2 is in build-up phase and revenue and 
costs are currently capitalised until commercial levels of production are       
reached. Target 3 had reached commercial production levels in April 2011.       
(3) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.        
(4) The total excludes non-operational capital expenditure of R67 million       
relating to Papua New Guinea.                                                   
* Production statistics are not reviewed                                        
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2010 (Rand/Metric)                    
                                       Production     Operating        Mining   
Revenue           cost        profit        assets   
                         R million      R million     R million     R million   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani(2)                  1 114            745           369           954  
Doornkop                        517            410           107         2 837  
Evander                         910            859            51           922  
Joel                            524            379           145           175  
Kusasalethu                   1 392          1 091           301         2 974  
Masimong                      1 277            702           575           799  
Phakisa                         375            326            49         4 065  
Target(2)                       878            664           214         2 537  
Tshepong                      1 823          1 147           676         3 645  
Virginia                      1 415          1 340            75           682  
Surface                                                                         
All other surface                                                               
operations(1)                   980            632           348           127  
Total South Africa           11 205          8 295         2 910        19 717  
International                                                                   
Papua New Guinea(3)              79             63            16         3 771  
Total international              79             63            16         3 771  
Total continuing                                                                
operations                   11 284          8 358         2 926        23 488  
Discontinued operations                                                         
Mount Magnet                      -              -             -           226  
Total discontinued                                                              
operations                        -              -             -           226  
Total operations             11 284          8 358         2 926        23 714  
Reconciliation of the                                                           
segment                                                                         
information to the                                                              
consolidated                                                                    
income statement and                                                            
balance sheet (refer to                                                         
note 16)                                                                        
-              -                       5 771   
                            11 284          8 358                      29 485   
                                             Capital     Kilograms     Tonnes   
                                         expenditure      produced     milled   
R million           kg*     t`000*   
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani(2)                                      207         4 137        528  
Doornkop                                          342         1 950        540  
Evander                                           175         3 475        788  
Joel                                               88         2 006        439  
Kusasalethu                                       430         5 444      1 035  
Masimong                                          177         4 840        899  
Phakisa                                           486         1 371        339  
Target(2)                                         382         3 539        777  
Tshepong                                          261         6 749      1 518  
Virginia                                          180         5 288      1 656  
Surface                                                                         
All other surface operations(1)                    84         3 731      9 140  
Total South Africa                              2 812        42 530     17 659  
International                                                                   
Papua New Guinea(3)                               541         1 903        304  
Total international                               541         1 903        304  
Total continuing operations                     3 353        44 433     17 963  
Discontinued operations                                                         
Mount Magnet                                        -             -          -  
Total discontinued operations                       -             -          -  
Total operations                                3 353        44 433     17 963  
Notes:                                                                          
(1) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up         
(2) Production statistics for President Steyn and Target 3 are included for     
information purposes. These mines are in build-up phase and revenue and costs   
are currently capitalised until commercial levels of production are reached.    
(3) Production statistics for Papua New Guinea are included for the full year   
for information purposes. The mine was in build-up phase until the end of April 
2010, when commercial levels of production were reached. Revenue and costs up to
this date were capitalised.                                                     
*   Production statistics are not reviewed                                      
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, K V Dicks*                                           
Dr D S Lushaba*, C Markus*,                                                     
M Motloba*, M Msimang*, D Noko*,                                                
C M L Savage*, A J Wilkens*, J Wetton*                                          
* Non-executive                                                                 
Independent                                                                     
1 Mozambican                                                                    
Investor Relations Team                                                         
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                                                
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
Telephone: +27 11 411 2037                                                      
Fax:       +27 86 614 0999                                                      
Mobile:    +27 82 888 1242                                                      
E-mail:    marian@harmony.co.za                                                 
Company Secretary                                                               
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: 15/08/2011 08:00:24 Supplied by www.sharenet.co.za                     
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