Go Back Email this Link to a friend


HAR - Harmony Gold Mining Company Limited - Results For the second quarter

Release Date: 06/02/2012 07:05:19      Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Results For the second quarter      
FY12 and six months ended 31 December 2011                                      
Harmony Gold Mining Company Limited                                             
("Harmony" or "Company")                                                        
Incorporated in the Republic of South Africa                                    
Registration number 1950/038232/06                                              
JSE Share code: HAR                                                             
NYSE Share code: HMY                                                            
ISIN: ZAE000015228                                                              
RESULTS FOR THE SECOND QUARTER FY12 AND SIX MONTHS ENDED 31 DECEMBER 2011       
KEY FEATURES                                                                    
- Record operating profits of R2.1bn (US$257m)                                  
- Record headline earnings of R1.0bn (US$129m)                                  
* 155% increase in HEPS at 242 SA cents (30 US cents)                           
- Gold production up by 5% - 10 718kg (344 592oz)                               
* recovery grade increased by 13% to 2.36g/t                                    
- Cash operating costs reduced by 6% to R249 356/kg (US$958/oz)                 
- Interim dividend declared (ZAR0.40/share)                                     
Financial summary for the second quarter FY12 and six months ended              
31 December 2011                                                                
                                           Quarter       Quarter       Q-on-Q   
                                          December     September     Variance   
                                              2011          2011            %   
Gold              - kg                       10 718        10 207            5  
produced (1)      - oz                      344 592       328 162            5  
Cash costs        - R/kg                    249 356       265 288            6  
                 - US$/oz                      958         1 156           17   
Gold sold         - kg                       11 000         9 948           11  
                 - oz                      353 658       319 836           11   
Gold price        - R/kg                    438 183       396 405           11  
received          - US$/oz                    1 683         1 727          (3)  
Operating         - R million                 2 077         1 306           59  
profit            - US$ million                 257           183           40  
Basic             - SAc/s                       243           111          119  
earnings          - USc/s                        30            16           88  
per share*                                                                      
Headline          - Rm                        1 041           411          153  
profit*           - US$m                        129            58          122  
Headline          - SAc/s                       242            95          155  
earnings          - USc/s                        30            13          131  
per share*                                                                      
Exchange          - R/US$                      8.10          7.14           13  
rate                                                                            
6 months     6 months                
                                           December     December     Variance   
                                               2011         2010            %   
Gold              - kg                        20 925       20 526            2  
produced (1)      - oz                       672 754      659 925            2  
Cash costs        - R/kg                     257 114      222 787         (15)  
                 - US$/oz                     1 051          965          (9)   
Gold sold         - kg                        20 948       20 915            -  
- oz                       673 494      672 433            -   
Gold price        - R/kg                     418 381      295 069           42  
received          - US$/oz                     1 711        1 294           32  
Operating         - R million                  3 383        1 519          123  
profit            - US$ million                  443          215          106  
Basic             - SAc/s                        354           93          281  
earnings          - USc/s                         46           13          254  
per share*                                                                      
Headline          - Rm                         1 452          435          234  
profit*           - US$m                         191           61          213  
Headline          - SAc/s                        337          101          234  
earnings          - USc/s                         44           14          214  
per share*                                                                      
Exchange          - R/US$                       7.61         7.09            7  
rate                                                                            
* Reported amounts include continuing operations only.                          
(1) Production statistics for Target 3 and Steyn 2 have been included. These    
mines were in a build-up phase up to the end of June 2011 and September 2011    
respectively, revenue and costs were capitalised. Revenue capitalised           
includes: Quarter ended December 2011 Target 3, nil (September 2011 - nil) and  
Steyn 2, nil (September 2011 - 36kg), six months ended December 2011 Target 3,  
nil (December 2010 - 281kg) and Steyn 2, 36kg (December 2010 - 49kg).           
Shareholder information                                                         
Issued ordinary                                                                 
share capital at                                                   431 312 677  
31 December 2011                                                                
Issued ordinary                                                                 
share capital at                                                   430 272 715  
30 September 2011                                                               
Market capitalisation                                                           
At 31 December 2011                                          ZARm       40 975  
At 31 December 2011                                          US$m        5 020  
Harmony ordinary share and                                                      
ADR prices                                                                      
12 month high                                                                   
(1 January 2011 -                                                               
31 December 2011)                                                      R115.75  
for ordinary shares                                                             
12 month low                                                                    
(1 January 2011 -                                                               
31 December 2011)                                                       R74.77  
for ordinary shares                                                             
12 month high                                                                   
(1 January 2011 -                                                               
31 December 2011)                                                     US$15.57  
for ADRs                                                                        
12 month low                                                                    
(1 January 2011 -                                                               
31 December 2011)                                                     US$10.56  
for ADRs                                                                        
Free float                                                                      
Ordinary shares                                                           100%  
ADR ratio                                                                  1:1  
JSE Limited                                                                HAR  
Range for quarter                                                               
(1 October 2011 -                                                               
31 December 2011                                              R92.64 - R115.75  
closing prices)                                                                 
Average daily volume                                                            
for the quarter                                                                 
(1 October 2011 -                                             1 184 707 shares  
31 December 2011)                                                               
New York Stock Exchange, Inc                                                    
including other                                                            HMY  
US trading                                                                      
Range for quarter                                                               
(1 October 2011 -                                                               
31 December 2011                                           US$11.34 - US$14.37  
closing prices)                                                                 
Average daily volume                                                            
for the quarter                                                                 
(1 October 2011 -                                             2 174 204 shares  
31 December 2011)                                                               
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 2011 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 regulations, particularly mining rights and environmental            
regulations; fluctuations in exchange rates; currency devaluations and other    
macroeconomic monetary policies; and socio-economic instability in the          
countries in which we operate.                                                  
Competent person`s declaration                                                  
Harmony reports in terms of the South African Code for the Reporting of         
Exploration results, Mineral Resources and Ore Reserves (SAMREC). Harmony       
employs an ore reserve manager at each of its operations who takes              
responsibility for reporting mineral resources and mineral reserves at his      
operation.                                                                      
The mineral resources and mineral reserves in this report are based on          
information compiled by the following competent persons:                        
Reserves and resources South Africa:                                            
Jaco Boshoff, Pri Sci Nat, who has 16 years` relevant experience and is         
registered with the South African Council for Natural Scientific Professions    
(SACNASP).                                                                      
Reserves and resources PNG:                                                     
Stuart Hayward for the Wafi-Golpu mineral resources, Gregory Job for the Golpu  
mineral reserve, James Francis for the Hidden Valley mineral resources and      
Anton Kruger for the Hidden Valley mineral reserve. Messers Job, Francis and    
Kruger are corporate members of the Australian Institute of Mining and          
Metallurgy and Mr Hayward is a member of the Australian Institute of            
Geoscientists. All have relevant experience in the type and style of            
mineralisation for which they are reporting, and are competent persons as       
defined by the code.                                                            
These competent persons consent to the inclusion in the report of the matters   
based on the information in the form and context in which it appears. Mr        
Boshoff and Mr Job are full-time employees of Harmony Gold Mining Company       
Limited and Mr Hayward is a full-time employee of Wafi-Golpu Services Limited.  
Mr Francis and Mr Kruger are full-time employees of Newcrest Mining Limited     
(Newcrest). Newcrest is Harmony`s joint venture partner in the Morobe Mining    
Joint Venture on the Hidden Valley mine and Wafi-Golpu project.                 
Chief Executive Officer`s Review                                                
In the second quarter of financial year 2012, Harmony generated a record        
operating profit of R2 billion (US$257 million) and recorded its 5th            
consecutive quarter of operating cash flow. These results were achieved due to  
a continued focus on improving grade quality and controlling costs during a     
period when the gold price remained strong, but volatile. An interim dividend   
of ZAR0.40 cents has been declared. Harmony remains focused on its long term    
strategic goal of achieving sustainable profitability and delivering            
shareholder value.                                                              
Some key financial highlights for the period are listed below:                  
- Record operating profits of R2.1bn (US$257m);                                 
- Record headline earnings of R1.0bn (US$129m)                                  
- 155% increase in HEPS at 242 SA cents (30 US cents);                         
- Gold production up by 5% to 10 718kg (344 592oz)                              
 - recovery grade increased by 13% at 2.36g/t;                                  
- Cash operating costs reduced by 6% to R249 356/kg (US$958/oz);                
- Interim dividend declared of ZAR0.40 per share                                
Safety                                                                          
Harmony is committed to improving the safety of its workers with an ultimate    
target of zero harm to all. It is therefore with regret that I report that      
seven of our colleagues died in work-related incidents during the quarter.      
Those who died were: Domingos Chivure (team leader, Evander), Petrus Steyn and  
Willem Momberg (both proto team members, Evander), Sipho Makhoba (engineering   
assistant, Kusasalethu), Mzwabantu Wanga (engineering assistant, Evander) and   
Simiao Macuacua (water jet operator, Kusasalethu) and Tefayo Bhambatha (water   
jet operator, Tshepong). I would like to extend my deepest condolences to       
their families, friends and colleagues.                                         
As part of the drive to stop repetitive accidents, risk assessments have been   
re-emphasized throughout the company. As part of our short term safety          
strategy more focus will be placed on the prevention of fall of ground, trucks  
and tramming accidents and the elimination of silicosis. Please see page 4 for  
more information on safety and health.                                          
Operational review                                                              
Gold production increased by 511kg in the December 2011 quarter to 10 718kg,    
compared to 10 207kg in the September 2011 quarter. The increase in production  
is mainly due to the following:                                                 
- Tshepong: grade increased by 23% (4.12g/t to 5.08g/t), tonnes milled          
increased by 7% from 287 000 tonnes to 306 000 tonnes;                          
- Phakisa: tonnes milled increased by 12% to 126 000 tonnes, with a 12%         
improvement in grade from 4.65g/t to 5.22g/t in December 2011 quarter;          
- Unisel: grade increased by 25% from 3.70g/t to 4.62g/t; tonnes milled         
improved by 9% to 100 000 tonnes;                                               
- Masimong: showed a 12% improvement in grade from 3.43g/t in the September     
2011 quarter to 3.85g/t in December 2011 quarter;                               
- Target 1: grade improved by 10% from 4.47g/t to 4.91g/t;                      
- Steyn 2: continued to build up production;                                    
- Target 3: showed a marked improvement in grade of 26% from 3.09g/t to         
3.89g/t in the quarter under review;                                            
- Hidden Valley: gold production increased by 3% to 816kg gold while silver     
production increased by 25% to 8 552kg.                                         
The following operations recorded a decrease in production:                     
- Kusasalethu: safety stoppages (due to two fatal accidents) resulted in a 23%  
decrease in tonnes milled;                                                      
- Bambanani: restructuring of the shaft resulted in a decrease of 73% in        
tonnes milled                                                                   
Financial performance                                                           
Quarter on quarter                                                              
Cash operating costs decreased by 6% from R265 288/kg in the September 2011     
quarter to R249 356/kg in the past quarter, mainly due to a 5% increase in      
gold produced.                                                                  
The gold price received increased by 11% from R396 405/kg in the previous       
quarter to R438 183/kg in the December 2011 quarter. An increase in production  
and a higher gold price resulted in revenue increasing by 23% or R891 million.  
Total capital expenditure for the December 2011 quarter was R782  million, a    
12% (R82 million) increase in comparison to the September 2011 quarter (R700    
million). We expect the latter part of the year to be more capital intensive    
and maintain our expectation of full year capital of R3.7 billion.              
Operating profit for the December 2011 quarter increased by R771 million or     
59% to R2 077 million, compared to R1 306 million recorded in the September     
2011 quarter.                                                                   
Six months ended December 2011 vs six months ended December 2010                
Gold production increased by 2% at 20 925kg in the six months ended December    
2011 when compared to the six months ended December 2010. The gold price        
received increased by 42% from R295 069/kg in the previous period to R418 381   
/kg in the six months ended December 2011. An increase in production and a      
higher gold price resulted in revenue increasing by R2 676 million or 44%.      
Cash operating costs increased by 15% from R222 787/kg in the six months ended  
December 2010 to R257 114/kg in the past six months to December 2011, mainly    
due to increases in electricity and inflation driven costs.                     
Operating profit for the six months ended December 2011 increased by 123% to    
R3 383 million, compared to R1 519 million recorded in the December 2010        
period.                                                                         
Optimising our asset portfolio                                                  
Evander                                                                         
On 30 January 2012 Harmony announced that it had signed a sale of shares and    
claims agreement ("the agreement") with a consortium comprised of Pan African   
Resources plc ("Pan African") and Witwatersrand Consolidated Gold Resources     
Limited ("Wits Gold") (the "Consortium"), for the disposal of Harmony`s entire  
interest in Evander Gold Mines Limited (Evander), with effect from the closing  
date.                                                                           
The purchase consideration of R1.7 billion, less certain distributions made by  
Evander to Harmony between 1 April 2012 and the closing date of the             
Transaction ("Closing Date") will be payable as follows:                        
- R1.4 billion less certain distributions made by Evander to Harmony between 1  
April 2012 and the Closing Date of the Transaction;                             
- four cash payments of R25 million each, payable quarterly and commencing      
three months after the Closing Date, amounting to R100 million in the           
aggregate;                                                                      
- a further R100 million payable 19 months after the Closing Date, provided     
the average rand gold price exceeds R410 000 per kg over the preceding 12       
months. This payment can be made in either cash or shares (or a combination of  
both) at the election of the Consortium and should the Consortium elect to      
make payment wholly or partially in shares, each of Pan African and Wits Gold   
will issue shares to Harmony in equal value proportions; and                    
- R100 million payable 31 months after the Closing Date, provided the average   
rand gold price exceeds R450 000 per kg during the preceding 12 months. This    
payment can be made in either cash or shares (or a combination of both) at the  
election of the Consortium and should the Consortium elect to make payment      
wholly or partially in shares, each of Pan African and Wits Gold will issue     
shares to Harmony in equal value proportions.                                   
Evander, a wholly owned subsidiary of Harmony, will be sold as a going          
concern. The Evander operations comprise the Evander 8 shaft which is located   
in Mpumalanga. Evander also includes several potential development projects     
namely Rolspruit, Poplar, Evander South and Libra. The disposal of Evander is   
in line with Harmony`s growth strategy, allowing the company to further         
optimise its asset portfolio. Harmony does not intend spending capital on       
developing the potential Evander projects and selling the assets to the         
Consortium creates a new dynamic for junior gold miners in South Africa. The    
proceeds from the transaction will be used towards funding the development of   
Wafi-Golpu.                                                                     
Rand Uranium                                                                    
A process was initiated during financial year 2011 for the disposal Rand        
Uranium (Proprietary) Limited ("Rand Uranium"), of which Harmony held 40%.      
Gold One International Limited ("Gold One") made a binding offer to acquire     
100% of Rand Uranium for a total consideration of US$250 million. The offer     
was accepted by the shareholders of Rand Uranium. All conditions precedent to   
the agreement were fulfilled and the transaction was declared unconditional     
and closed on Friday 6 January 2012 ("Completion Date").                        
Harmony`s portion of the purchase price amounts to approximately US$38 million  
of which US$24 million was settled in cash on 6 January 2012 realising an       
amount of R193 million. The balance of US$14 million is to be settled in        
either cash, Gold One ordinary shares, or a combination thereof within 90 days  
of the Completion Date.                                                         
Wafi-Golpu                                                                      
Pre-feasibility studies are progressing according to schedule. Key strategy     
milestones were reached in the selection of preferred strategies for mining,    
underground access, processing, port and power infrastructure. This has         
allowed work to commence on detailed engineering, cost estimates and schedules  
for procurement and construction for early works. At the end of the December    
2011 quarter, seven drill rigs were operating with six engaged on extension of  
the Golpu orebody to the north and infill of deeper sections. One drill         
continued with geotechnical investigation drilling along the access decline     
route.                                                                          
Given the early stage of orebody knowledge and evaluation of mining options     
the access strategy has been developed to preserve maximum flexibility to       
accommodate changes in orebody shape and mining sequence.                       
Gold market                                                                     
The gold price has posted its tenth straight year of gains since 2001 and       
benefitted from the global economic uncertainty that prevailed throughout       
calendar year 2011. Gold continues to prove itself as a currency and store of   
wealth. 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 increased by 11% from R396     
405/kg in the September 2011 quarter to R438 183/kg in the December 2011        
quarter. At the current price our margins therefore remain strong. We remain    
bullish on the gold price and it is our view that the gold price in dollar      
terms will continue to strengthen, as the fundamentals that drove the gold      
price up are still in place and the global financial markets have not yet       
stabilised. We expect that gold will reach an average price of $1 850/oz for    
calendar year 2012 and we may even see it as high as $2 000/oz later this       
year.                                                                           
Dividend                                                                        
We are very pleased to declare an interim dividend of ZAR0.40 cents.            
The Board of Harmony believes that the upswing in the gold price and the        
company`s results warrant an interim dividend.                                  
Conclusion                                                                      
During the quarter our Financial Director, Hannes Meyer, was approached by a    
Canadian mining company, and he will be leaving us on 14 March 2012. Frank      
Abbott who joined Harmony in 1994 as a member of the board and who held         
various executive and non-executive roles, has been appointed as Financial      
Director effective 7 February 2012. We wish both Hannes and Frank well with     
their new responsibilities.                                                     
As our growth projects come on stream, and our existing mines operate to        
tailored business plans, we remain confident of reaching our long-term          
targets.                                                                        
Graham Briggs                                                                   
Chief Executive Officer                                                         
Safety and health                                                               
Safety                                                                          
The past quarter`s safety performance was very disappointing, with seven        
fatalities being recorded. This resulted in the 2012 year to date fatal injury  
frequency rate (FIFR) deteriorating to 0.20 compared to 0.17 in 2011. Common    
management system failures that have been identified are risk management and    
change management. As part of the drive to stop repetitive accidents, risk      
assessments have been re-emphasised throughout the company.                     
The lost time injury frequency rate (LTIFR) showed an improvement from the      
previous quarter to 7.99. A single digit figure was recorded for the 13th       
consecutive quarter. This is encouraging and proves that the foundation of the  
safety improvements over the last five  years is still intact.                  
As part of our short term safety strategy more focus will be placed on the      
prevention of fall of ground, trucks and tramming accidents and the             
elimination of silicosis. The implementation of the Harmony Ground Control      
Strategy and ensuring full compliance to the Rail Bound Code of Practice will   
ensure a reduction of incidents and accidents as a result of these agencies in  
the short term.                                                                 
The first step towards a more sustainable safety performance is to improve our  
safety management framework. IRCA Global - an internationally recognised        
company with expertise in the field of safety, health, environmental and        
quality management - was contracted to do a gap audit against international     
standards of Harmony`s South African operations. The common critical            
shortcomings identified during the audit were in the following areas of safety  
management:                                                                     
- Risk assessments;                                                             
- Management of change;                                                         
- Technical planning;                                                           
- Management of close out actions;                                              
- Leadership controls.                                                          
There were also operations that showed remarkable improvement in safety trends  
during the past six months. Target 1 and 3, Bambanani, Phakisa, Doornkop and    
Kalgold showed good improvements and are also fatality free for the year to     
date.                                                                           
Health                                                                          
The health and wellness of our workforce is as vital as their safety and        
serves as a key component to our on-going business success. We continue to      
review and improve our policies, procedures and process to ensure a better      
quality of life for our employees.                                              
Our employees are our biggest asset and therefore we acknowledge the joint      
responsibility to ensure their optimal health and well-being. We are committed  
to improving the wellness of our people which include their physical,           
emotional, developmental and occupational needs amongst others.                 
See our 2011 Sustainable Development Report for more details on our             
website www.harmony.co.za.                                                      
Financial overview                                                              
Cash operating profit                                                           
Cash operating profit increased by 59% to R2.1 billion in the December 2011     
quarter, with an increase in revenue being the main contributor.                
Revenue                                                                         
The increase in revenue from R3.9 billion to R4.8 billion is due to an 11%      
increase on the R/kg gold price received (R396 405/kg to R438 183/kg) and an    
11% increase in gold sold.                                                      
Cost of sales                                                                   
Production cost is slightly higher at R2 743 million. Cash operating cost       
decreased by R26 million, but gold inventory movement caused an increase of     
R146 million, resulting in the overall 5% increase.                             
Net gain/(loss) on financial instruments                                        
The fair value of the Nedbank Equity Linked Deposits, held by the               
Environmental Trusts, is linked to the equity market. During the quarter        
equity markets increased, resulting in the gain of R67 million.                 
Taxation                                                                        
The taxation expense for the December quarter increased to R270 million and     
comprise current taxation of R58 million and deferred taxation of R212          
million. Many mines in the group have redeemed capital allowances against       
taxable income, resulting in the low current tax expense, but a higher          
deferred tax expense.                                                           
Earnings per share                                                              
Basic earnings per share increased from 111 SA cents to 243 SA cents per        
share. Headline earnings per share increased from earnings of 95 SA cents per   
share to 242 SA cents per share.                                                
Property, plant and equipment                                                   
Capital expenditure for the quarter increased from R700 million to R782         
million.                                                                        
Trade and other receivables (current)                                           
Trade and other receivables increased by R255 million quarter on quarter to R1  
131 million, with the annual insurance pre-payment and self-insurance fund      
contributions contributing to R220 million of the increase.                     
Borrowings                                                                      
Borrowings decreased by R701 million to R1 314 million, mainly as a result of   
a re-payment on the Rand Nedbank facilities. The group`s Rand revolving credit  
facility of R850 million is fully repaid and remains available until the end    
of 2013.                                                                        
Notice of cash dividend                                                         
Dividend No. 83 of 40 cents per ordinary share, being an interim dividend for   
the half year ended 31 December 2011, has been declared payable on Monday, 12   
March 2012 to those shareholders recorded in the books of the company at the    
close of business on Friday, 9 March 2012. 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, 2 March 2012.          
Last date to trade ordinary                                                     
shares cum dividend                                       Friday, 2 March 2012  
Ordinary shares trade ex dividend                         Monday, 5 March 2012  
Currency conversion date in respect                                             
of the UK own name shareholders                           Monday, 5 March 2012  
Record date                                               Friday, 9 March 2012  
Payment date                                             Monday, 12 March 2012  
No dematerialisation or rematerialisation of share certificates may occur       
between Monday, 5 March 2012 and Friday, 9 March 2012, both dates inclusive,    
nor may any transfers between registers take place during this period.          
CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)                                 
                                                Quarter ended                   
31 December     30 September     31 December   
                                        2011             2011            2010   
Figures in million       Note     (Unaudited)      (Unaudited)     (Unaudited)  
Continuing operations                                                           
Revenue                                 4 820            3 929           2 990  
Cost of sales               2         (3 337)          (3 192)         (2 506)  
 Production costs                    (2 743)          (2 623)         (2 123)   
 Amortisation and                                                               
depreciation                          (528)            (475)           (442)   
 Impairment of assets                      -                -               -   
 Employment termination                                                         
 and restructuring costs                (17)             (34)            (54)   
Other items                            (49)             (60)             113   
Gross profit                            1 483              737             484  
Corporate, administration                                                       
and other expenditure                    (90)             (84)            (96)  
Social investment                                                               
expenditure                              (14)             (15)            (23)  
Exploration expenditure                  (99)             (97)            (76)  
Profit on sale of                                                               
property, plant and equipment               4               26               1  
Other income/(expenses)                                                         
- net                                      24               18               6  
Operating profit                        1 308              585             296  
Loss from associates                        -                -            (19)  
Reversal of                                                                     
impairment/(impairment)                                                         
of investment in                                                                
associate                   3               2               48               -  
Net gain/(loss) on                                                              
financial instruments                      67             (26)              78  
Gain on farm-in option                      -                -               -  
Investment income                          22               16              38  
Finance cost                             (83)             (73)            (69)  
Profit before taxation                  1 316              550             324  
Taxation                                (270)             (72)            (28)  
Normal taxation                        (58)             (40)               -   
 Deferred taxation         4           (212)             (32)            (28)   
Net profit from                                                                 
continuing operations                   1 046              478             296  
Discontinued operations                                                         
Profit from discontinued                                                        
operations                                  -                -              23  
Net profit for the period               1 046              478             319  
Attributable to:                                                                
Owners of the parent                    1 046              478             319  
Non-controlling interest                    -                -               -  
Earnings per ordinary                                                           
share (cents)               5                                                   
Earnings from continuing                                                        
operations                                243              111              69  
Earnings from                                                                   
discontinued operations                     -                -               5  
Total earnings per                                                              
ordinary share (cents)                    243              111              74  
Diluted earnings per                                                            
ordinary share (cents)      5                                                   
Earnings from continuing                                                        
operations                                242              111              69  
Earnings from                                                                   
discontinued operations                     -                -               5  
Total diluted earnings                                                          
per ordinary share (cents)                242              111              74  
                                           Six months ended        Year ended   
31 December     31 December       30 June   
                                           2011            2010          2011   
Figures in million                                                   (Audited)  
Continuing operations                                                           
Revenue                                    8 749           6 073        12 445  
Cost of sales                            (6 529)         (5 501)      (11 615)  
 Production costs                       (5 366)         (4 554)       (9 170)   
 Amortisation and depreciation          (1 003)           (868)       (1 776)   
Impairment of assets                         -               -         (264)   
 Employment termination                                                         
 and restructuring costs                   (51)           (132)         (158)   
 Other items                              (109)              53         (247)   
Gross profit                               2 220             572           830  
Corporate, administration                                                       
and other expenditure                      (174)           (190)         (354)  
Social investment expenditure               (29)            (39)          (84)  
Exploration expenditure                    (196)           (175)         (353)  
Profit on sale of property,                                                     
plant and equipment                           30              17            29  
Other income/(expenses) - net                 42            (48)          (24)  
Operating profit                           1 893             137            44  
Loss from associates                           -            (27)          (51)  
Reversal of impairment/(impairment)                                             
of investment in associate                    50               -         (142)  
Net gain/(loss) on financial instruments      41             389           141  
Gain on farm-in option                         -               -           273  
Investment income                             38              52           140  
Finance cost                               (156)           (128)         (288)  
Profit before taxation                     1 866             423           117  
Taxation                                   (342)            (22)           480  
 Normal taxation                           (98)             (9)          (12)   
 Deferred taxation                        (244)            (13)           492   
Net profit from                                                                 
continuing operations                      1 524             401           597  
Discontinued operations                                                         
Profit from discontinued operations            -              20            20  
Net profit for the period                  1 524             421           617  
Attributable to:                                                                
Owners of the parent                       1 524             421           617  
Non-controlling interest                       -               -             -  
Earnings per ordinary share (cents)                                             
Earnings from continuing operations          354              93           139  
Earnings from discontinued operations          -               5             5  
Total earnings per                                                              
ordinary share (cents)                       354              98           144  
Diluted earnings per                                                            
ordinary share (cents)                                                          
Earnings from continuing operations          353              93           139  
Earnings from discontinued operations          -               5             5  
Total diluted earnings per                                                      
ordinary share (cents)                       353              98           144  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand)                
                                                Quarter ended                   
                                 31 December     30 September     31 December   
2011             2011            2010   
Figures in million                (Unaudited)      (Unaudited)     (Unaudited)  
Net profit for the period               1 046              478             319  
Other comprehensive income for                                                  
the period, net of income tax             179              955           (161)  
Foreign exchange translation              212              924           (131)  
(Loss)/gain on fair value movement of                                           
available-for-sale investments           (33)               31            (30)  
Total comprehensive income                                                      
for the period                          1 225            1 433             158  
Attributable to:                                                                
Owners of the parent                    1 225            1 433             158  
Non-controlling interest                    -                -               -  
                                           Six months ended        Year ended   
                                    31 December     31 December       30 June   
                                           2011            2010          2011   
Figures in million                                                   (Audited)  
Net profit for the period                  1 524             421           617  
Other comprehensive income for                                                  
the period, net of income tax              1 134            (55)           368  
Foreign exchange translation               1 136            (25)           470  
(Loss)/gain on fair value movement of                                           
available-for-sale investments               (2)            (30)         (102)  
Total comprehensive income                                                      
for the period                             2 658             366           985  
Attributable to:                                                                
Owners of the parent                       2 658             366           985  
Non-controlling interest                       -               -             -  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
The preparation of the reviewed financial statements for the six months ended   
31 December 2011 was supervised by the financial director, Hannes Meyer. These  
financial statements were reviewed by the group`s external auditors,            
PricewaterhouseCoopers Incorporated (see note 11) and approved by the Board of  
Harmony Gold Mining Company Limited.                                            
CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)                                    
At               At   
                                                 31 December     30 September   
                                                        2011             2011   
Figures in million                       Note                      (Unaudited)  
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment                          32 830           32 278  
Intangible assets                                       2 185            2 171  
Restricted cash                                            31               31  
Restricted investments                                  1 929            1 860  
Investments in associates                                   -                -  
Deferred tax assets                                     1 179            1 287  
Investments in financial assets                           183              215  
Inventories                                               169              168  
Trade and other receivables                                28               24  
Total non-current assets                               38 534           38 034  
Current assets                                                                  
Inventories                                               990            1 006  
Trade and other receivables                             1 131              876  
Income and mining taxes                                   194              100  
Cash and cash equivalents                               1 205            1 325  
                                                       3 520            3 307   
Assets of disposal groups classified as                                         
held-for-sale                               3             315              314  
Total current assets                                    3 835            3 621  
Total assets                                           42 369           41 655  
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                          28 326           28 314  
Other reserves                                          1 945            1 741  
Retained earnings                                       2 359            1 313  
Total equity                                           32 630           31 368  
Non-current liabilities                                                         
Deferred tax liabilities                                4 452            4 300  
Provision for environmental                                                     
rehabilitation                                          2 092            2 046  
Retirement benefit obligation and other                                         
provisions                                                177              174  
Borrowings                                  6             991            1 684  
Total non-current liabilities                           7 712            8 204  
Current liabilities                                                             
Borrowings                                  6             323              331  
Income and mining taxes                                     3                3  
Trade and other payables                                1 684            1 733  
2 010            2 067   
Liabilities of disposal groups                                                  
classified as held-for-sale                 3              17               16  
Total current liabilities                               2 027            2 083  
Total equity and liabilities                           42 369           41 655  
                                                           At              At   
                                                      30 June     31 December   
                                                         2011            2010   
Figures in million                                   (Audited)                  
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment                           31 221          30 218  
Intangible assets                                        2 170           2 199  
Restricted cash                                             31              26  
Restricted investments                                   1 883           1 864  
Investments in associates                                    -             358  
Deferred tax assets                                      1 149             723  
Investments in financial assets                            185             264  
Inventories                                                172             232  
Trade and other receivables                                 23              69  
Total non-current assets                                36 834          35 953  
Current assets                                                                  
Inventories                                                837             943  
Trade and other receivables                              1 073             962  
Income and mining taxes                                    139             102  
Cash and cash equivalents                                  693             837  
                                                        2 742           2 844   
Assets of disposal groups classified as held-for-sale      268               -  
Total current assets                                     3 010           2 844  
Total assets                                            39 844          38 797  
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Share capital                                           28 305          28 277  
Other reserves                                             762             266  
Retained earnings                                        1 093             897  
Total equity                                            30 160          29 440  
Non-current liabilities                                                         
Deferred tax liabilities                                 4 216           4 336  
Provision for environmental rehabilitation               1 971           1 752  
Retirement benefit obligation and other provisions         174             179  
Borrowings                                               1 229           1 243  
Total non-current liabilities                            7 590           7 510  
Current liabilities                                                             
Borrowings                                                 330             344  
Income and mining taxes                                      2              10  
Trade and other payables                                 1 746           1 493  
                                                        2 078           1 847   
Liabilities of disposal groups classified as                                    
held-for-sale                                               16               -  
Total current liabilities                                2 094           1 847  
Total equity and liabilities                            39 844          38 797  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY  (Rand)                  
for the six months ended 31 December 2011                                       
                                   Share        Other     Retained              
Figures in million                capital     reserves     earnings      Total  
Balance - 30 June 2011             28 305          762        1 093     30 160  
Issue of shares                        21            -            -         21  
Share-based payments                    -           49            -         49  
Net profit for the period               -            -        1 524      1 524  
Other comprehensive income                                                      
for the period                          -        1 134            -      1 134  
Dividends paid                          -            -        (258)      (258)  
Balance - 31 December 2011         28 326        1 945        2 359     32 630  
Balance - 30 June 2010             28 261          258          690     29 209  
Issue of shares                        16            -            -         16  
Share-based payments                    -           63            -         63  
Net profit for the period               -            -          421        421  
Other comprehensive income                                                      
for the period                          -         (55)            -       (55)  
Dividends paid                          -            -        (214)      (214)  
Balance - 31 December 2010         28 277          266          897     29 440  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)                              
Quarter ended                   
                                 31 December     30 September     31 December   
                                        2011             2011            2010   
Figures in million                (Unaudited)      (Unaudited)     (Unaudited)  
Cash flow from operating activities                                             
Cash generated by operations            1 566            1 092             450  
Interest and dividends received            12               16              38  
Interest paid                            (36)             (41)            (35)  
Income and mining taxes paid            (149)                -            (30)  
Cash generated by operating activities  1 393            1 067             423  
Cash flow from investing activities                                             
Decreased in restricted cash                -                -              90  
Proceeds on disposal of                                                         
investment in subsidiary                    -                -               -  
Proceeds on disposal of                                                         
available-for-sale financial assets         -                -               2  
Pre-payment for Evander 6                                                       
and Twistdraai transaction                  -                -               -  
Other investing activities                  3                -             (6)  
Net additions to property, plant                                                
and equipment                           (779)            (668)           (846)  
Cash utilised by investing activities   (776)            (668)           (760)  
Cash flow from financing activities                                             
Borrowings raised                           -              799             525  
Borrowings repaid                       (718)            (352)           (107)  
Ordinary shares issued - net of expenses   11                9               8  
Dividends paid                              -            (258)               -  
Cash (utilised)/generated                                                       
by financing activities                 (707)              198             426  
Foreign currency translation                                                    
adjustments                              (30)               35            (24)  
Net (decrease)/increase in cash                                                 
and cash equivalents                    (120)              632              65  
Cash and cash equivalents                                                       
- beginning of period                   1 325              693             772  
Cash and cash equivalents                                                       
- end of period                         1 205            1 325             837  
                                           Six months ended        Year ended   
                                    31 December     31 December       30 June   
                                           2011            2010          2011   
Figures in million                                                   (Audited)  
Cash flow from operating activities                                             
Cash generated by operations               2 658           1 153         2 418  
Interest and dividends received               28              52           140  
Interest paid                               (77)            (65)         (134)  
Income and mining taxes paid               (149)            (34)          (45)  
Cash generated by operating activities     2 460           1 106         2 379  
Cash flow from investing activities                                             
Decreased in restricted cash                   -             120           116  
Proceeds on disposal of investment                                              
in subsidiary                                  -             229           229  
Proceeds on disposal of available-for-sale                                      
financial assets                               -               2            16  
Pre-payment for Evander 6                                                       
and Twistdraai transaction                     -               -           100  
Other investing activities                     3               4           (5)  
Net additions to property, plant                                                
and equipment                            (1 447)         (1 594)       (3 110)  
Cash utilised by investing activities    (1 444)         (1 239)       (2 654)  
Cash flow from financing activities                                             
Borrowings raised                            799             525           925  
Borrowings repaid                        (1 070)           (114)         (546)  
Ordinary shares issued - net of expenses      20              16            44  
Dividends paid                             (258)           (214)         (214)  
Cash (utilised)/generated                                                       
by financing activities                    (509)             213           209  
Foreign currency translation adjustments       5            (13)          (11)  
Net (decrease)/increase in cash                                                 
and cash equivalents                         512              67          (77)  
Cash and cash equivalents                                                       
- beginning of period                        693             770           770  
Cash and cash equivalents                                                       
- end of period                            1 205             837           693  
The accompanying notes are an integral part of these condensed consolidated     
financial statements.                                                           
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                        
FOR THE PERIOD ENDED 31 DECEMBER 2011 (Rand)                                    
1. Accounting policies                                                          
Basis of accounting                                                             
The condensed consolidated financial statements for the six months ended 31     
December 2011 have been prepared in accordance with IAS 34, Interim Financial   
Reporting, JSE Listings Requirements and in the manner required by the          
Companies Act of South Africa. They should be read in conjunction with the      
annual financial statements for the year ended 30 June 2011, which have been    
prepared in accordance with International Financial Reporting Standards as      
issued by the International Accounting Standards Board (IFRS). The accounting   
policies are consistent with those described in the annual financial            
statements, except for the adoption of applicable revised and/or new standards  
issued by the International Accounting Standards Board.                         
2. Cost of sales                                                                
                                                Quarter ended                   
                                 31 December     30 September     31 December   
2011             2011            2010   
Figures in million                (Unaudited)      (Unaudited)     (Unaudited)  
Production costs - excluding royalty    2 684            2 591           2 093  
Royalty expense                            59               32              30  
Amortisation and depreciation             528              475             442  
Impairment of assets                        -                -               -  
Rehabilitation expenditure                  1                5               5  
Care and maintenance cost                                                       
of restructured shafts                     23               31              28  
Employment termination and                                                      
restructuring costs (1)                    17               34              54  
Share-based payments                       25               24              32  
Other                                       -                -           (178)  
Total cost of sales                     3 337            3 192           2 506  
                                            Six months ended       Year ended   
                                    31 December     31 December       30 June   
2011            2010          2011   
Figures in million                                                   (Audited)  
Production costs - excluding royalty       5 275           4 501         9 074  
Royalty expense                               91              53            96  
Amortisation and depreciation              1 003             868         1 776  
Impairment of assets                           -               -           264  
Rehabilitation expenditure                     6               9            74  
Care and maintenance cost                                                       
of restructured shafts                        54              53           124  
Employment termination and                                                      
restructuring costs (1)                       51             132           158  
Share-based payments                          49              63           136  
Other                                          -           (178)          (87)  
Total cost of sales                        6 529           5 501        11 615  
(1) The amount of R17 million in December 2011 quarter (R34 million in          
September 2011 quarter) relates to restructuring at the Bambanani shaft.        
3. Disposal groups classified as held for sale and discontinued operations      
Investment in associate                                                         
The investment in Rand Uranium (Proprietary) Limited ("Rand Uranium") has been  
classified as held for sale following a decision by the shareholders of the     
company to commence with a process to sell the company. 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. The group`s attributable portion of    
the sale proceeds amounts to approximately US$38 million.                       
The investment is carried at the lower of carrying value and fair value less    
cost to sell. At each reporting date, the carrying value is remeasured for      
possible impairment or reversal of impairment. An impairment of R142 million    
has been recognised for the 2011 year. During December 2011 quarter, a          
reversal of impairment of R2 million (year to date R50 million) was recognised  
resulting from changes in the US$/R exchange rate.                              
See note 8 for developments after balance sheet date.                           
4. Deferred taxation                                                            
During the December quarter several mines in the group redeemed capital         
allowances against their increased taxable income, resulting in the increased   
deferred tax expense.                                                           
5. Earnings and net asset value per share                                       
Earnings per share is calculated on the weighted average number of shares in    
issue for the quarter ended 31 December 2011: 430.5 million (30 September       
2011: 430.1 million, 31 December 2010: 429.1 million), six months ended 31      
December 2011: 430.2 million (31 December 2010: 428.9 million), and the year    
ended 30 June 2011: 429.3 million.                                              
Diluted earnings per share is calculated on weighted average number of diluted  
shares in issue for the quarter ended 31 December 2011: 432.3 million (30       
September 2011: 431.6 million, 31 December 2010: 429.9 million), six months     
ended 31 December 2011: 431.9 million (31 December 2010: 429.7 million), and    
the year ended 30 June 2011: 430.4 million.                                     
                                                Quarter ended                   
31 December      30 September     31 December   
                                       2011              2011            2010   
                                (Unaudited)       (Unaudited)     (Unaudited)   
Total earnings per share (cents):                                               
Basic earnings                           243               111              74  
Diluted earnings                         242               111              74  
Headline earnings                        242                95              69  
- from continuing operations             242                95              69  
- from discontinued operations             -                 -               -  
Diluted headline earnings                241                95              69  
- from continuing operations             241                95              69  
- from discontinued operations             -                 -               -  
Figures in million                                                              
Reconciliation of headline earnings:                                            
Continuing operations                                                           
Net profit                             1 046               478             296  
Adjusted for:                                                                   
Profit on sale of property,                                                     
plant and equipment                      (4)              (26)             (1)  
Taxation effect of profit on                                                    
sale of property, plant and equipment      1                 7               -  
Net gain on financial instruments          -                 -             (1)  
Taxation effect of net gain                                                     
on financial instruments                   -                 -               -  
(Reversal of  impairment)/impairment                                            
of investment in associate*              (2)              (48)               -  
Foreign exchange loss                                                           
reclassified from                                                               
other comprehensive income*                -                 -               -  
Impairment of assets                       -                 -               -  
Taxation effect of impairment of assets    -                 -               -  
Headline earnings                      1 041               411             294  
Discontinued operations                                                         
Net profit                                 -                 -              23  
Adjusted for:                                                                   
Profit on sale of investment in                                                 
subsidiary                                 -                 -            (23)  
Taxation effect of profit on                                                    
sale of investment in subsidiary           -                 -               -  
Headline earnings                          -                 -               -  
Total headline earnings                1 041               411             294  
                                           Six months ended        Year ended   
                                    31 December     31 December       30 June   
                                           2011            2010          2011   
(Audited)   
Total earnings per share (cents):                                               
Basic earnings                               354              98           144  
Diluted earnings                             353              98           144  
Headline earnings                            337             101           223  
- from continuing operations                 337             101           223  
- from discontinued operations                 -               -             -  
Diluted headline earnings                    336             101           222  
- from continuing operations                 336             101           222  
- from discontinued operations                 -               -             -  
Figures in million                                                              
Reconciliation of headline earnings:                                            
Continuing operations                                                           
Net profit                                 1 524             401           597  
Adjusted for:                                                                   
Profit on sale of property,                                                     
plant and equipment                         (30)            (17)          (29)  
Taxation effect of profit on sale of                                            
property, plant and equipment                  8               5             7  
Net gain on financial instruments              -             (1)           (7)  
Taxation effect of net gain                                                     
on financial instruments                       -               -             2  
(Reversal of impairment)/impairment                                             
of investment in associate*                 (50)               -           142  
Foreign exchange loss reclassified                                              
from other comprehensive income*               -              47            47  
Impairment of assets                           -               -           264  
Taxation effect of impairment of assets        -               -          (66)  
Headline earnings                          1 452             435           957  
Discontinued operations                                                         
Net profit                                     -              20            20  
Adjusted for:                                                                   
Profit on sale of investment in subsidiary     -            (54)          (54)  
Taxation effect of profit on sale of                                            
investment in subsidiary                       -              34            34  
Headline earnings                              -               -             -  
Total headline earnings                    1 452             435           957  
* There is no taxation effect on these items.                                   
Net asset value                                                                 
per share (cents)                                                               
At               At              At              At   
                 31 December     30 September         30 June     31 December   
                        2011             2011            2011            2010   
                                  (Unaudited)       (Audited)                   
Number of shares                                                                
in issue          431 312 677      430 272 715     430 084 628     429 506 618  
Net asset value                                                                 
per share (cents)       7 565            7 290           7 013           6 854  
6. Borrowings                                                                   
                            At               At            At              At   
                   31 December     30 September       30 June     31 December   
                          2011             2011          2011            2010   
Figures in million                   (Unaudited)     (Audited)                  
Total long-term                                                                 
borrowings                  991            1 684         1 229           1 243  
Total current portion of                                                        
borrowings                  323              331           330             344  
Total borrowings (1) (2)  1 314            2 015         1 559           1 587  
(1) The Nedbank revolving credit facility was repaid in full during the         
December 2011 quarter following repayments totalling R550 million. The full     
R850 million facility is available until December 2013.                         
A bi-annual repayment of R152.5 million on the Nedbank term facilities during   
the December 2011 quarter reduced the balance to R915 million.                  
There is no change regarding the US$300 million syndicated revolving credit     
facility, with US$250 million still available. The facility is repayable by     
August 2015 and attracts interest at LIBOR plus 260 basis points, which is      
payable quarterly.                                                              
(2) Included in the borrowings is R44 million (30 September 2011: R52 million;  
December 2010: R63 million) owed to Westpac Bank Limited in terms of a finance  
lease agreement. The future minimum lease payments are as follows:              
                            At               At            At              At   
                   31 December     30 September       30 June     31 December   
2011             2011          2011            2010   
Figures in million                   (Unaudited)     (Audited)                  
Due within one year          34               31            29              28  
Due between one and                                                             
five years                   11               22            23              36  
                            45               53            52              64   
Future finance charges      (1)              (1)           (1)             (1)  
Total future minimum                                                            
lease payments               44               52            51              63  
7. Commitments and                                                              
contingencies                                                                   
                            At               At            At              At   
31 December     30 September       30 June     31 December   
                          2011             2011          2011            2010   
Figures in million                   (Unaudited)     (Audited)                  
Capital expenditure                                                             
commitments:                                                                    
Contracts for                                                                   
capital expenditure         291              290           194             166  
Authorised by the                                                               
directors but not                                                               
contracted for            3 373            3 570         1 504           2 669  
                         3 664            3 860         1 698           2 835   
This expenditure will be financed from existing resources and, where            
appropriate, borrowings.                                                        
Contingent liability                                                            
For a detailed disclosure on contingent liabilities refer to Harmony`s annual   
report for the financial year ended 30 June 2011, available on the group`s      
website (www.harmony.co.za). There were no significant changes in               
contingencies since 30 June 2011, except as discussed below:                    
Harmony reached a mutually acceptable settlement with the plaintiff class and   
this settlement was found to be fair and reasonable and was approved by the     
United States District Court in November 2011. A single class member has filed  
an appeal of the District Court`s order approving the settlement. That appeal   
is currently pending in the United States Court of Appeals for the Second       
Circuit. The settlement amount has been paid into escrow by the company`s       
insurers and will be distributed to the plaintiffs once the appeal has been     
finalised.                                                                      
8. Subsequent events                                                            
(a) SA process was initiated during financial year 2011 for the disposal Rand   
Uranium (Proprietary) Limited ("Rand Uranium"), of which Harmony held 40%.      
Gold One International Limited ("Gold One") made a binding offer to acquire     
100% of Rand Uranium for a total consideration of US$250 million. The offer     
was accepted by the shareholders of Rand Uranium. All conditions precedent to   
the agreement were fulfilled and the transaction was declared unconditional     
and closed on Friday 6 January 2012 ("Completion Date").                        
Harmony`s portion of the purchase price amounts to approximately US$38 million  
of which US$24 million was settled in cash on 6 January 2012 realising an       
amount of R193 million. The balance of US$14 million is to be settled in        
either cash, Gold One ordinary shares, or a combination thereof within 90 days  
of the Completion Date.                                                         
(b) Harmony has signed a sale of share and claims agreement on 30 January 2012  
with Pan Africa Resources plc and Witwatersrand Consolidated Gold Resources     
Limited (the "Consortium") for the disposal of Harmony`s entire interest in     
Evander Gold Mines Limited ("Evander"). The disposal will be for an aggregate   
purchase consideration of R1.7 billion, excluding the proceeds of the Taung     
Gold Limited transaction and less certain distributions made by Evander to      
Harmony between 1 April 2012 and the close of the transaction.                  
The transaction is subject to, among others, the following conditions           
precedent:                                                                      
- the Consortium raising the required funding comprising of debt and/or         
equity;                                                                         
- each of the Consortium members obtaining the requisite shareholder approvals  
for the acquisition; and                                                        
- obtaining all relevant regulatory approvals.                                  
(c) On 2 February 2012, the Board approved an interim dividend of 40 cents,     
amounting to approximately R173 million, payable on 12 March 2012.              
9.  Segment report                                                              
The segment report follows after note 11.                                       
10. Reconciliation of segment information to consolidated income statements     
                                                         Six months ended       
                                                  31 December     31 December   
Figures in million                                        2011            2010  
The "Reconciliation of segment information to                                   
consolidated income statement" 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:                                                       
Reconciliation of production profit to gross profit                             
Total segment revenue                                    8 749           6 073  
Total segment production costs and royalty expense     (5 366)         (4 554)  
Production profit per segment report                     3 383           1 519  
Cost of sales items, other than production costs                                
and royalty expense                                    (1 163)           (947)  
Amortisation and depreciation                          (1 003)           (868)  
Employment termination and restructuring costs            (51)           (132)  
Share-based payments                                      (49)            (63)  
Rehabilitation costs                                       (6)             (9)  
Care and maintenance costs of restructured shafts         (54)            (53)  
Other                                                        -             178  
Gross profit as per income statements *                  2 220             572  
* The reconciliation was done up to the first recognisable line item on the     
income statement. The reconciliation will follow the income statement after     
that.                                                                           
11. Review report                                                               
The condensed consolidated financial statements for the six months ended 31     
December 2011 have been reviewed in accordance with 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 report is available for inspection at the company`s    
registered office.                                                              
SEGMENT REPORT (Rand)                                                           
for the six months ended 31 December 2011                                       
Production          Production     
                           Revenue              cost            profit/(loss)   
                        31 December         31 December         31 December     
                       2011      2010      2011      2010      2011      2010   
R million            R million           R million     
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani                322       502       365       421      (43)        81  
Doornkop                 746       360       448       295       298        65  
Evander                  688       315       349       316       339       (1)  
Joel                     612       169       299       198       313      (29)  
Kusasalethu            1 099       772       660       643       439       129  
Masimong                 715       730       438       397       277       333  
Phakisa                  501       267       389       223       112        44  
Target                 1 047       511       635       358       412       153  
Tshepong               1 164     1 000       631       581       533       419  
Virginia                 343       398       251       349        92        49  
Surface                                                                         
All other surface                                                               
operations               792       589       485       431       307       158  
Total South Africa     8 029     5 613     4 950     4 212     3 079     1 401  
International                                                                   
Hidden Valley            720       460       416       342       304       118  
Other                      -         -         -         -         -         -  
Total international      720       460       416       342       304       118  
Total continuing                                                                
operations             8 749     6 073     5 366     4 554     3 383     1 519  
Reconciliation of the                                                           
segment information to                                                          
the consolidated                                                                
income statement                                                                
(refer to note 10)         -         -         -         -                      
                      8 749     6 073     5 366     4 554                       
                         Capital              Kilograms            Tonnes       
                       expenditure            produced*            milled*      
31 December          31 December         31 December     
                     2011      2010       2011       2010      2011      2010   
                        R million                kg                 t`000       
Continuing operations                                                           
South Africa                                                                    
Underground                                                                     
Bambanani              143       156        825      1 716       132       233  
Doornkop               139       154      1 763      1 184       509       311  
Evander                 88       116      1 695      1 069       240       279  
Joel                    28        40      1 418        556       297       168  
Kusasalethu            211       189      2 822      2 559       587       497  
Masimong               122        89      1 690      2 414       464       462  
Phakisa                149       194      1 184        882       239       193  
Target                 164       252      2 497      1 982       572       401  
Tshepong               135       133      2 738      3 316       593       683  
Virginia                34        49        802      1 326       192       366  
Surface                                                                         
All other surface                                                               
operations              62        66      1 883      2 024     4 698     5 328  
Total South Africa   1 275     1 438     19 317     19 028     8 523     8 921  
International                                                                   
Hidden Valley           93       144      1 608      1 498       889       852  
Other                  114         -          -          -         -         -  
Total international    207       144      1 608      1 498       889       852  
Total continuing                                                                
operations           1 482     1 582     20 925     20 526     9 412     9 773  
* Production statistics are unaudited.                                          
Harmony`s strategy                                                              
Harmony`s strategy is to produce 1.8 to 2 million* safe and profitable ounces   
of gold by 2015. Following a review of assets during 2011, action was taken     
and capital committed to increase production at existing operations, further    
the development of current projects and advance scoping studies so as to        
ensure the future production pipeline of tomorrow`s gold by growing reserves    
and resources and strengthening the quality of our asset base.                  
Our challenge going forward is to meet our targets and objectives and, more     
specifically, to deliver consistent production results, improve productivity,   
curb costs and to create and deliver value to shareholders.                     
* Excludes future acquisitions or disposals.                                    
CONTACT DETAILS                                                                 
Corporate Office                                                                
Randfontein Office Park                                                         
PO Box 2, Randfontein, 1760, South Africa                                       
Corner Main Reef Road/Ward Avenue, Randfontein, 1759, South Africa              
Telephone: +27 11 411 2000                                                      
Website: www.harmony.co.za                                                      
Directors                                                                       
P T Motsepe* Chairman                                                           
D Noko* Deputy Chairman                                                         
G P Briggs Chief Executive Officer                                              
F Abbott Financial Director                                                     
H E Mashego Executive Director, H O Meyer Executive Director                    
F F T De Buck* Lead independent director                                        
J A Chissano*1, K V Dicks*, Dr D S Lushaba*, C Markus*,                         
M Motloba*, M Msimang*, J Wetton*, A J Wilkens*                                 
* 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                            
Riana Bisschoff                                                                 
Telephone: 011 411 2127                                                         
Mobile: +27 83 629 4706                                                         
E-mail: riana.bisschoff@harmony.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, Beckenham                                      
Kent BR3 4TU, United Kingdom                                                    
Telephone: 0871 664 0300 (UK) (calls cost 10p a minute plus network             
extras, lines are open 8:30am - 5:30pm, Monday to Friday)                       
or +44 (0) 20 8639 3399 (calls from overseas)                                   
Fax: +44 (0) 20 8639 2220                                                       
ADR Depository                                                                  
Deutsche Bank Trust Company Americas                                            
c/o American Stock Transfer and Trust Company, Peck Slip Station                
PO Box 2050, New York, NY 10272-2050                                            
Email Queries: adr@db.com                                                       
Toll Free: +1-866-243-9656                                                      
Intl: +1-718-921-8200                                                           
Fax: +1-718-921-8334                                                            
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                                               
Euronext, Brussels: HMY                                                         
Berlin Stock Exchange: HAM1                                                     
Registration number                                                             
1950/038232/06                                                                  
Incorporated in the Republic of South Africa                                    
ISIN                                                                            
ZAE000015228                                                                    
Date: 06/02/2012 07:05:16 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.