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HARMONY GOLD MINING COMPANY LIMITED - Results for the first Quarter ended FY13 ended 30 September 2012

Release Date: 07/11/2012 07:05:00      Code(s): HAR       PDF(s):  
Results for the first Quarter ended FY13 ended 30 September 2012

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

Q1 FY13

RESULTS FOR THE FIRST QUARTER FY13 ENDED 30 SEPTEMBER 2012

KEY FEATURES
Quarter on quarter

- Gold production increased by 8% to 10 013kg (321 924oz)
- Operating profit 9% higher at R1.4bn (US$171 million)

- Cash operating costs increased by 6% to R294 404/kg
  (US$1 110/oz) due to:
  - two months of winter electricity tariffs
  - annual wage increase on 1 July 2012

- Increase in headline earnings per share* to 123 SA cents
  (15 US cents)

* Including discontinued operations

All the figures used in this report represent continuing operations, unless
specified otherwise.

FINANCIAL SUMMARY FOR THE FIRST QUARTER
ENDED 30 SEPTEMBER 2012

                                                 Quarter   Quarter      Q on Q
                                               September      June    variance
                                                   2012#     2012#           %

                                kg               10 013     9 269           8
Gold produced
                                oz              321 924   298 006           8
                                R/kg            294 404   278 091         (6)
Cash operating costs
                                US$/oz            1 110     1 065         (4)
                                kg                9 704     9 333           4
Gold sold
                                oz              311 992   300 062           4
                                R/kg            440 868   421 565           5
Gold price received
                                US$/oz            1 663     1 615           3
                                R million         1 408     1 295           9
Operating profit¹
                                US$ million         171       159           7
                                SAc/s               121        25        >100
Basic earnings per share*
                                USc/s                15         3        >100
                                Rm                  529      (27)        >100
Headline profit/(loss)*
                                US$m                 64       (3)        >100
                                SAc/s               123       (6)        >100
Headline earnings per share*
                                USc/s                15       (1)        >100
Exchange rate                   R/US$              8.25      8.12           2

*   Including discontinued operations
#   Figures represent continuing operations unless stated otherwise
1   Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the
    operating profit line in the income statement

Shareholder information

Issued ordinary share capital at
                                                        435 064 236
30 September 2012*

Issued ordinary share capital at
                                                        431 564 236
30 June 2012

* The increase in the issued shares is due to the shares issued to the
  Tlhakanelo Employee Share Trust

Market capitalisation

At 30 September 2012                            (ZARm)       30 381

At 30 September 2012                            (US$m)        3 682

At 30 June 2012                                 (ZARm)       33 015

At 30 June 2012                                 (US$m)        4 037

Harmony ordinary share and ADR prices

12-month high (1 October 2011 
                                                            R115.75
30 September 2012) for ordinary shares

12-month low (1 October 2011 
                                                             R66.90
30 September 2012) for ordinary shares

12-month high (1 October 2011 
                                                           US$14.37
30 September 2012) for ADRs

12-month low (1 October 2011 
                                                            US$7.85
30 September 2012) for ADRs

Free float                                                     100%

ADR ratio                                                       1:1

JSE Limited                                                     HAR

Range for quarter (1 July 2012 
                                                    R66.90  R70.99
30 September 2012 closing prices)

Average daily volume for the quarter
                                                   2 411 137 shares
(1 July 2012  30 September 2012)

Range for quarter (1 April 2012 
                                                    R72.84  R89.00
30 June 2012 closing prices)

Average daily volume for the quarter
                                                   1 491 325 shares
(1 April 2012  30 June 2012)

New York Stock Exchange, Inc
                                                                HMY
including other US trading platforms

Range for quarter (1 July 2012 
                                                  US$7.85  US$8.40
30 September 2012 closing prices)

Average daily volume for the quarter
                                                   2 440 148 shares
(1 July 2012  30 September 2012)

Range for quarter (1 April 2012 
                                                 US$8.70  US$11.04
30 June 2012 closing prices)

Average daily volume for the quarter
                                                   2 069 561 shares
(1 April 2012  30 June 2012)

Investors' calendar                                       2012/2013

Annual general meeting                             28 November 2012

Q2 FY13 results                                    4 February 2013#

Q3 FY13 results                                         8 May 2013#

Q4 FY13 results                                     14 August 2013#

Investor Day                                        28 August 2013#
#These   dates may change in future

Harmony's Integrated 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 2012
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 macro-economic
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.

There has been no material changes in the mineral reserves
declared as at 30 June 2012.

Chief executive officer's review

Harmony produced solid results for FY12, and improved on these in
the first quarter of FY13. The company continues to generate strong
cash flow, with low debt and undrawn lending facilities and a rand/
dollar exchange rate that is working in our favour.

The past quarter has been a tumultuous time in the mining industry
after unprotected strikes at one platinum mine spread across almost
the entire mining industry, including our own Kusasalethu mine. In
addition to the tragic loss of life at some operations in the mining
industry and the economic cost of these actions, the scale of violence
and intimidation has made media headlines around the world with
concomitant impacts on investor sentiment, South Africa's sovereign
credit rating, and national and industry reputations. These events have
been extremely unfortunate not only for the industry and its employees,
but also for future growth and development in South Africa, given the
critical role of gold mining in our country's economic development.

At Harmony, some 5 400 employees at Kusasalethu mine near
Carletonville embarked on an unprotected strike at the beginning of
October 2012. We urged our employees to honour existing collective
agreements entered into through the Chamber of Mines as well as
existing bargaining structures. In addition, we continued to encourage
all employees participating in this unlawful strike to act in a safe,
responsible and peaceful manner, and to engage through established
channels. The majority of striking workers returned to Kusasalethu
on 25 October 2012. Safety inspections, safety inductions and health
checks were done during the first few days of the workers' return, but
production start-up has been slow.

Encouragingly, Harmony's other operations have remained at work
during difficult times  arguably an indication that work done on
building a common culture and values is producing benefits. I thank
management teams and all employee representatives for the good
relationships they have with each other and for being 'connected'.

On 25 October 2012, the Chamber of Mines, representing Harmony,
AngloGold Ashanti Ltd and Gold Fields Ltd, together with the National
Union of Mineworkers, Solidarity and UASA, signed an agreement
to give effect to clause 11 of the 2011  2013 Chamber Gold Wage
Agreement to put an end to the national strikes in the gold industry. The
adjustment effectively increases Harmony's wages by approximately
R10 million per month.

Everything we do at Harmony is based on our values  safety, honesty,
achievement, accountability and connectedness. This means we
do what is right for our shareholders and other stakeholders, our
employees, our assets and our business.

We were able to demonstrate these values in action effectively
using concrete examples during an analyst visit to our Papua New
Guinea (PNG) operations in September. Harmony's chairman and
management recently visited PNG and had the opportunity to meet
with the prime minister, the Honourable Peter O'Neill, and members
of his cabinet. The official party visited our Hidden Valley mine and
Wafi-Golpu project, which was indeed an honour and privilege for
us. Harmony is committed to building a mutually beneficial long-term
partnership with the government of PNG, the communities living near
our operations, our employees and other stakeholders.

Understanding the importance of delivering on our promises, we
are focused on meeting our guidance to the investment community
of delivering 1.7 million ounces of gold by 2016. An important
component in reaching this milestone lies in the development work
being done throughout the company to ensure our grade continues
to improve. We trust that delivering on our targets will contribute to
investors recognising the value in Harmony's share price.

Progress made towards our strategic objectives as at 30 June 2012 are:

              Ore reserves             Increased by 27%

              Dividends                Increased by 50%
Growth        Net debt                 Lowered by R823m (US$123m)

                                       Funded entirely by operations
              Capital expenditure
                                        R3.2bn (US$414m)

              Expenditure              Increased by 54%

              Number of gold and
                                       Increased
              copper targets
Exploration   Diversity  geographic
                                       Improved
              and copper

                                       US$6 per equivalent resource
              Discovery cost
                                       ounce

                                       Fatalities down, improved
              Improved safety
                                       lost-time injury frequency rate

              Disposed of non-core
                                       Evander and Rand Uranium
              assets

Optimising    Improved margin          26% in FY11, 35% in FY12
operational
                                        36% increase in R/kg gold
delivery
                                         price = 80% increase in rand
                                         profit
              Leverage to gold price
                                        23% increase in US$/oz gold
                                         price = 62% increase in US$
                                         profit

              World-class gold/copper project, long life

              Lowest industry quartile operating cost (gold and
Golpu         copper)

              Significant upside potential  Golpu and the Wafi
              transfer structure

This year (FY13) we plan to produce 1.3 million ounces of gold from
continuing operations. This quarter's results show that we are on
course, however the strike at Kusasalethu will impact on our target
(±25 000oz).

Safety and values

Regrettably, Harmony recorded three fatalities in the quarter.
Mzwandile Bhudaza was a rock driller at Unisel and Sera Nkhache and
Simon Retselisitsoe Molefi were contractors at Joel mine. We extend
our deepest sympathy to their families and colleagues.

Given the current turmoil in the mining industry, we need to be
even more vigilant about safety. It is the most important aspect of
our business, and one of Harmony's values, which requires everyone
to make safety the foremost priority in all circumstances. Safety
awareness campaigns are on-going.

Phakisa has now reached 27 months without a fatality (1.75 million
shifts), while Masimong reached 1 million fatality-free shifts in June 
a milestone that took 17 months to reach. Tshepong recorded 1 million
fatality-free shifts in September 2012 after nine months. At the time
of writing this report, Target 1 achieved three years without a fatality
(more than 1 million fatality-free shifts). Through an increased focus on
safety, behavioural improvements, reviewing accidents and potential
dangerous areas, communication and remedial action, we are steadily
improving the company's safety environment.

Gold market

The rand gold price received increased by 5% from R421 565/kg
in the June 2012 quarter to R440 868/kg in the September 2012
quarter. During this period, the rand weakened 2% from R8.12/US$ to
R8.25/US$. A 3% increase in the US dollar gold price to US$1 663/oz
(US$1 615/oz in the June 2012 quarter) resulted in the higher rand per
kilogram gold price.

Operational and financial results

The September 2012 quarter was a solid start to the new financial
year, despite the noted industry challenges. Gold production from
underground was 9% higher than the prior quarter, mainly driven
by improved grade. Operating profit increased by 12% compared to the 
June 2012 quarter to more than R1.55 billion (including discontinued 
operations). Cash operating costs increased quarter on quarter, mainly 
due to two months of winter electricity tariffs and labour increases 
implemented on 1 July. This resulted in the rand per kilogram unit cost 
increasing by 6% from R278 091/kg in the June 2012 quarter to R294 404/kg 
in this quarter.

Wafi-Golpu

Results from the resource definition programme have been extremely
encouraging and the resource potential at Wafi-Golpu continues to
improve with ongoing drilling.

In Harmony's latest statement of mineral resources and reserves, we
declared jointly-held Golpu's reserve of 450Mt at 1.21% copper and
0.86g/t gold for 12.4Moz gold and 5.4Mt copper. At 30 June 2012,
Harmony's attributable gold equivalent mineral reserves in South
Africa and PNG were 52.9Moz, a 31% annual increase in declared
reserves. This is largely due to the increase in mineral reserves in PNG
after completing the pre-feasibility study at Golpu. As drilling at Golpu
continues, more ounces from PNG may be added to reserves.

Exploration

The New Guinea mobile belt represents a fertile porphyry copper/gold
belt with significant exploration upside and the opportunity to repeat
our success at Wafi-Golpu.

Given that investing in greenfields exploration remains a significant part
of our growth strategy, Harmony's PNG exploration portfolio currently
comprises three quality projects in the New Guinea mobile belt:

-   Mt Hagen  mineralised porphyry copper system with highly
    anomalous mineralisation and alteration patterns
-   Amanab  structurally hosted Au vein system
-   Lake Kopiago area  potential OK Tedi/Grasberg-style target
    developed with detailed airborne magnetics

In South Africa, a surface drilling exploration process is under way at
Masimong to prove up the extension of the known B Reef value trend
in this area.

Evander transaction

In May 2012, Harmony concluded an agreement with Pan African
Resources plc to dispose of its 100% interest in Evander Gold Mines
Limited for R1.5 billion. Following competition authority approval in
July 2012, the remaining conditions precedent are expected to be
fulfilled during the third quarter of FY13.

Conclusion

In recent years, Harmony has built a reputation as a leading gold
mining company in both South Africa and PNG. These results confirm
that Harmony is guided by a clear strategy and expert management
teams delivering sustainable and competitive results.

While the gold price, rand/dollar exchange rate, geographic and
currency diversification will always be key factors in our company's
performance, we are confident that the people, policies, systems and
infrastructure in place will ensure Harmony's competitiveness and
sustainability for many years to come.

We are committed to creating value for our shareholders and we
are honouring our obligations to our employees, communities living
near our mines and other stakeholders. In recent years, Harmony has
invested millions of rands into improving the living standards of many
communities in South Africa and Papua New Guinea through local
development initiatives and our social and labour plans (see our 2012
sustainable development report on www.harmony.co.za).

We measure, we measure up and we deliver  growing gold production,
reserves, profits and stakeholder benefits is our plan for FY13.

Graham Briggs
Chief executive officer

Safety and health
Harmony is committed to the health and wellbeing of our employees
as it promotes a safe and productive workplace and supports a positive
workplace culture. At Harmony we aim to provide a positive, supportive
working environment that values the safety, health and wellbeing of
our employees.

During the quarter it was decided to integrate all safety behaviour and
culture initiatives into the Harmony culture programme of which safety
is the first value. The work done on the integration will continue during
the December 2012 quarter.

Regrettably three employees were fatally injured during the quarter in
two separate incidents at Unisel and Joel, compared to one at Evander
in the previous quarter. This marks a deterioration in the Fatal
Injury Frequency Rate (FIFR) quarter on quarter to 0.13, from 0.04 in
the previous quarter. The FIFR year to date improved by 19% to 0.13,
when compared to the actual figure for the previous year of 0.16.

Year on year Harmony's total FIFR showed a continued improvement
and the year to date is at the lowest level ever, but still well above the
2013 industry milestone target of 0.03. All efforts are directed towards
achieving the industry-target.

The Lost Time Injury Frequency Rate (LTIFR) regressed by 3% quarter
on quarter from 5.90 to 6.10 while the year to date LTIFR improved
by 16% to 6.10, when compared to the actual figure for the previous
year of 7.29. The year on year LTIFR improved at most South African
operations with Kalgold, Masimong and Bambanani improving by 50%
or more.

During the quarter, the follow-up audits on the gap analysis performed
by the International Register of Certificated Auditors (IRCA) were
completed at all operations and workshops with representatives from
each operation were held to get additional inputs to further improve
the Harmony Occupational Health and Safety Management system.
A final document has been compiled for approval and implementation.

High level safety and health audits were completed on three
operations during the quarter and four audit reviews were done at the
applicable operations by the chief executive officer (CEO) and various
other executives. The CEO used this opportunity to meet with full-
time health and safety representatives and union officials at the mine
to discuss safety related matters. This effort is a first-rate example of
visible felt leadership with safety being led from the top.

The most significant safety achievements during the quarter were:

-   Randfontein surface operations achieved 4 750 000 fatality free
    shifts
-   Phakisa achieved 1 750 000 fall of ground fatality free shifts
-   Masimong achieved 1 000 000 fatality free shifts

Our pro-active approach to the health and wellness of our employees
continues through a diverse array of measures, programmes and
initiatives which are supported and invested in by the Company to
promote the good health of our employees. By taking a pro-active
approach to our workplace health and safety, we are minimising and
eliminate risks before they occur.

Financial overview

Net profit
The net profit for the September 2012 quarter was R522 million, 388%
higher than the previous quarter. This reflects the increase in gold sold
of 371kg (4%) as well as an increase in the gold price received of 5%
to R440 868/kg.

Share-based payments
Share-based payments increased from R21 million to R105 million in
the September 2012 quarter. This includes a cost of R81 million relating
to the new Employee Share Ownership Plan (ESOP) awards that were
granted in August 2012. In terms of the ESOP rules, all employees other
than management were awarded a minimum of 100 Scheme Shares
and 200 Share Appreciation Rights (SARs). In addition these employees
qualify for an additional cash bonus under the SARs in the event that
the share price growth is less than R18 per share.

Harmony issued 3.5 million shares to the Tlhakanelo Share Trust on
31 August 2012. In terms of IFRS 2, Share-based Payment, the SARs
includes an equity-settled portion as well as a cash-settled portion
relating to the cash bonus. The cash-settled portion has been
recognised in the balance sheet as a derivative financial liability.

Impairment of investments
The impairment of investments amounting to R48 million in the
September 2012 quarter and R144 million in the June 2012 quarter
recorded in the income statement is the reduction in the fair market
value of the investment in Witwatersrand Consolidated Gold
Resources Limited.

Net gain on financial instruments
The net gain on financial instruments of R74 million in the
September 2012 quarter is due to the increased market value of the
rehabilitation funds' equity-linked deposits invested with Nedbank.

Profit on discontinued operations

Profit from discontinued operations is R89 million in the September
2012 quarter and R180 million in the June 2012 quarter. The amounts
represent the net profit after taxation for Evander Gold Mines Limited.
Included in the amount for the June 2012 quarter is the profit on sale
of Evander 6 and Twistdraai to Taung Gold Limited of R159 million (net
of taxation).

Earnings per share

Total basic earnings per share increased from 25 SA cents to
121 SA cents per share in the September 2012 quarter. Total headline
earnings per share increased from a loss of 6 SA cents to earnings
of 123 SA cents per share.

Borrowings and cash

The long-term portion of borrowings increased from R1 503 million
to R1 840 million in the September 2012 quarter, mainly due to a
drawdown of US$40 million on the US dollar syndicated revolving
credit facility. During the same period cash and cash equivalents
increased from R1 773 million to R2 266 million as a result of strong
cash flow generated by operating activities, resulting in a positive net
cash position of R120 million at quarter-end.

Assets and liabilities of disposal group classified as held for sale
Assets and liabilities of disposal groups classified as held for sale at
30 September 2012 represents the assets and liabilities of Evander
Gold Mines Limited that were classified as held for sale and includes
increases in cash balances as well as mining assets.

CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)
                                                                                                                  Quarter ended                      Year ended
                                                                                                 30 September           30 June 30 September(1)         30 June
                                                                                                         2012              2012           2011             2012
Figures in million                                                                     Note       (Unaudited)       (Unaudited)    (Unaudited)        (Audited)

Continuing operations
Revenue                                                                                                 4 278             3 934          3 574           15 169
Cost of sales                                                                             2           (3 490)           (3 325)        (2 975)         (12 137)

   Production costs                                                                                   (2 870)           (2 639)        (2 440)          (9 911)
   Amortisation and depreciation                                                                        (481)             (548)          (445)          (1 921)
   Reversal of impairment of assets                                                                                         60                             60
   Employment termination and restructuring costs                                                         (7)              (11)           (34)             (81)
   Share-based payments                                                                   3             (105)              (21)           (22)             (87)
   Other items                                                                                           (27)             (166)           (34)            (197)

Gross profit                                                                                              788               609           599             3 032
Corporate, administration and other expenditure                                                         (106)              (91)          (80)             (352)
Social investment expenditure                                                                            (20)              (22)          (14)              (72)
Exploration expenditure                                                                                 (136)             (161)          (96)             (500)
Profit on sale of property, plant and equipment                                                            55                34            26                63
Other income/(expenses)  net                                                                               3              (74)            18              (50)

Operating profit                                                                                          584               295           453             2 121
Reversal of impairment of investment in associate                                                                                        48                56
Impairment of investments                                                                 4              (48)             (144)                          (144)
Net gain/(loss) on financial instruments                                                                   74                12          (23)                86
Investment income                                                                                          33                33            16                97
Finance cost                                                                                             (58)              (69)          (70)             (286)

Profit before taxation                                                                                    585               127           424            1 930
Taxation                                                                                  5             (152)             (200)          (57)              123

   Normal taxation                                                                                      (111)              (83)          (40)            (199)
   Deferred taxation                                                                                     (41)             (117)          (17)              322

Net profit/(loss) from continuing operations                                                             433               (73)           367            2 053
Discontinued operations
Profit from discontinued operations                                                       6               89                180           111              592

Net profit for the period                                                                                522                107           478            2 645

Attributable to:
Owners of the parent                                                                                     522                107           478            2 645

Earnings per ordinary share (cents)                                                       7
Earnings/(loss) from continuing operations                                                               100               (17)            85              477
Earnings from discontinued operations                                                                     21                 42            26              137

Total earnings                                                                                           121                 25           111              614

Diluted earnings per ordinary share (cents)                                               7
Earnings/(loss) from continuing operations                                                               100               (17)            85              476
Earnings from discontinued operations                                                                     21                 42            26              136

Total diluted earnings                                                                                   121                 25           111              612

(1) The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 6 in this regard.

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand)
                                                                                            Quarter ended                 Year ended
                                                                            30 September        30 June 30 September         30 June
                                                                                    2012           2012         2011            2012
Figures in million                                                    Note   (Unaudited)    (Unaudited)  (Unaudited)       (Audited)

Net profit for the period                                                            522            107          478           2 645
Other comprehensive income for the period, net of income tax                          26            606          955           1 587
   Foreign exchange translation                                                       26            506          924           1 485
   (Loss)/gain on fair value movement of available-for-sale
   investments                                                                                    (44)           31            (42)
   Impairment of available-for-sale investments recognised in
   profit or loss                                                        4                         144                         144

Total comprehensive income for the period                                            548            713        1 433           4 232

Attributable to:
Owners of the parent                                                                 548            713        1 433           4 232

The accompanying notes are an integral part of these condensed consolidated financial statements.

The unaudited condensed consolidated financial statements for the quarter ended 30 September 2012 have been prepared
by Harmony Gold Mining Company Limited's corporate reporting team headed by Mr Herman Perry. This process was
supervised by the financial director, Mr Frank Abbott and approved by the board of Harmony Gold Mining Company
Limited. These financial statements have not been audited or independently reviewed.

CONDENSED CONSOLIDATED BALANCE SHEETS   (Rand)                                                                
                                                                              At          At             At   
                                                                    30 September     30 June   30 September   
                                                                            2012        2012           2011   
Figures in million                                           Note    (Unaudited)   (Audited)    (Unaudited)   
ASSETS                                                                                                        
Non-current assets                                                                                            
Property, plant and equipment                                             33 334      32 853         32 278   
Intangible assets                                                          2 194       2 196          2 171   
Restricted cash                                                               36          36             31   
Restricted investments                                                     1 919       1 842          1 860   
Deferred tax assets                                                          523         486          1 287   
Investments in financial assets                                 4             98         146            215   
Inventories                                                                   58          58            168   
Trade and other receivables                                                   20          28             24   
Total non-current assets                                                  38 182      37 645         38 034   
Current assets                                                                                                
Inventories                                                                1 185         996          1 006   
Trade and other receivables                                                1 165       1 245            876   
Income and mining taxes                                                        8         118            100   
Cash and cash equivalents                                                  2 266       1 773          1 325   
                                                                           4 624       4 132          3 307   
Assets of disposal groups classified as held for sale           6          1 658       1 423            314   
Total current assets                                                       6 282       5 555          3 621   
Total assets                                                              44 464      43 200         41 655   
EQUITY AND LIABILITIES                                                                                        
Share capital and reserves                                                                                    
Share capital                                                             28 331      28 331         28 314   
Other reserves                                                             2 515       2 444          1 741   
Retained earnings                                                          3 611       3 307          1 313   
Total equity                                                              34 457      34 082         31 368   
Non-current liabilities                                                                                       
Deferred tax liabilities                                                   3 166       3 106          4 300   
Provision for environmental rehabilitation                                 1 895       1 865          2 046   
Retirement benefit obligation                                                181         177            167   
Other provisions                                                              33          30              7   
Derivative financial liabilities                                3             54                            
Borrowings                                                      8          1 840       1 503          1 684   
Total non-current liabilities                                              7 169       6 681          8 204   
Current liabilities                                                                                           
Borrowings                                                      8            306         313            331   
Income and mining taxes                                                      110           1              3   
Derivative financial liabilities                                3             16                            
Trade and other payables                                                   1 966       1 747          1 733   
                                                                           2 398       2 061          2 067   
Liabilities of disposal groups classified as held for sale      6            440         376             16   
Total current liabilities                                                  2 838       2 437          2 083   
Total equity and liabilities                                              44 464      43 200         41 655   


The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand) (Unaudited)
for the quarter ended 30 September 2012
                                              Share      Other   Retained            
Figures in million                          capital   reserves   earnings    Total 
  
Balance  30 June 2012                       28 331      2 444      3 307   34 082   
Share-based payments                                       45                 45   
Net profit for the period                                           522      522   
Other comprehensive income for the period                  26                 26   
Dividends paid1                                                   (218)    (218)   
Balance  30 September 2012                  28 331      2 515      3 611   34 457   
Balance  30 June 2011                       28 305        762      1 093   30 160   
Issue of shares                                   9                            9   
Share-based payments                                       24                 24   
Net profit for the period                                           478      478   
Other comprehensive income for the period                 955                955   
Dividends paid2                                                   (258)    (258)   
Balance  30 September 2011                  28 314      1 741      1 313   31 368   


1.   Dividend of 50 SA cents declared on 13 August 2012.
2.   Dividend of 60 SA cents declared on 12 August 2011.

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)
                                                                                              Quarter ended                  Year ended
                                                                              30 September          30 June  30 September         30 June
                                                                                      2012             2012          2011            2012
Figures in million                                                             (Unaudited)      (Unaudited)   (Unaudited)       (Audited)

Cash flow from operating activities
Cash generated by operations                                                         1 337            1 211         1 092           4 551
Interest and dividends received                                                         26               20            16              80
Interest paid                                                                         (29)             (38)          (41)           (141)
Income and mining taxes refunded/(paid)                                                108            (163)                        (277)

Cash generated by operating activities                                               1 442            1 030         1 067           4 213

Cash flow from investing activities
Cash transferred to disposal group                                                   (162)                                            
Proceeds on disposal of investment in associate                                                         29                          222
Proceeds on disposal of Evander 6 and Twistdraai                                                       125                          125
Other investing activities                                                                            (56)                         (85)
Net additions to property, plant and equipment                                       (893)            (952)         (668)         (3 140)

Cash utilised by investing activities                                              (1 055)            (854)         (668)         (2 878)

Cash flow from financing activities
Borrowings raised                                                                      330              342           799           1 443
Borrowings repaid                                                                      (9)            (161)         (352)         (1 248)
Ordinary shares issued  net of expenses                                                                 3             9              26
Dividends paid                                                                       (218)                         (258)           (431)

Cash generated/(utilised) by financing activities                                     103               184           198           (210)

Foreign currency translation adjustments                                                3              (14)            35            (45)

Net increase in cash and cash equivalents                                             493               346           632           1 080
Cash and cash equivalents  beginning of period                                     1 773             1 427           693             693

Cash and cash equivalents  end of period                                           2 266             1 773         1 325           1 773

The accompanying notes are an integral part of these condensed consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 September 2012 (Rand)

1.   Accounting policies

     Basis of accounting

     The condensed consolidated financial statements for the quarter ended 30 September 2012 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 2012, 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                      Year ended
                                                                                                30 September              30 June  30 September(1)        30 June
                                                                                                        2012                 2012             2011           2012
     Figures in million                                                                          (Unaudited)          (Unaudited)      (Unaudited)      (Audited)
     Production costs  excluding royalty                                                              2 814                2 623            2 409          9 791
     Royalty expense                                                                                      56                   16               31            120
     Amortisation and depreciation                                                                       481                  548              445          1 921
     Reversal of impairment of assets                                                                                       (60)                           (60)
     Rehabilitation expenditure                                                                            7                   20                5           (17)
     Care and maintenance cost of restructured shafts                                                     20                   19               29             88
     Employment termination and restructuring costs                                                        7                   11               34             81
     Share-based payments(2)                                                                             105                   21               22             87
     Other                                                                                                                   127                            126

     Total cost of sales                                                                               3 490                3 325            2 975         12 137

     1.   The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 6 in this regard
     2.   Refer to note 3 for details

3.   Share-based payments

     This includes the cost relating to the new Employee Share Ownership Plan (ESOP) awards that were granted in August 2012. In terms of the
     ESOP rules, all employees other than management were awarded a minimum of 100 Scheme Shares and 200 Share Appreciation Rights (SARs),
     with employees with service longer than ten years receiving an additional ten percent. Both the Scheme Shares and SARs vest in five equal
     portions on each anniversary of the award. In addition these employees qualify for an additional cash bonus under the SARs in the event that
     the share price growth is less than R18 per share. The effect of the bonus puts the employees in the position they would have been in had the
     share price increased by R18 per share since issue date.

     Harmony issued 3.5 million shares to the Tlhakanelo Share Trust, on 31 August 2012. In addition, 6 817 880 SARs were issued. In terms of
     IFRS 2, Share-based Payment, the SARs includes an equity-settled portion as well as a cash-settled portion related to the cash bonus. The cash-
     settled portion has been recognised on the balance sheet as a derivative financial liability, the fair value of which will be re-measured at each
     reporting date.

4.   Impairment of investments

     The impairment of the investment in Witswatersrand Consolidated Gold Resources Limited (Wits Gold) results from the decline in the fair value
     of the investment on the JSE.

5.   Taxation

     The Supreme Court of Appeal's decision on Freegold's appeal regarding the South African Revenue Service's (SARS) application of mining
     tax ringfencing was received on 1 October 2012 and the Court found in favour of SARS. This resulted in additional normal taxes of R94 million
     offset by deferred tax credits of R154 million.

     Unredeemed capital deductions are not allowed against non-mining income. However these deductions will be allowable against future mining
     income.

6.   Disposal groups classified as held for sale and discontinued operations

     Evander Gold Mines Limited

     The assets and liabilities of Evander Gold Mines Limited (Evander), a wholly-owned subsidiary of Harmony Gold Mining Company Limited
     (Harmony), have been classified as held for sale following signing of a sale of shares and claims agreement on 30 January 2012. On 30 May 2012,
     Harmony announced the signing of a new sale of shares and claims agreement with Pan African Resources plc (Pan African).The disposal will
     be for an aggregate purchase consideration of R1.5 billion, excluding the proceeds of the Taung Gold Limited transaction.

     The transaction is subject to, among others, the following conditions precedent:

     - Pan African obtaining the requisite shareholder approval for the acquisition; and
     - obtaining all relevant regulatory approvals

     The operation also meets the requirements to be classified as a discontinued operation. The comparative figures in the income statement have
     been re-presented as a result.

7.   Earnings/(loss) and net asset value per share
                                                                                                                    Quarter ended                      Year ended
                                                                                                30 September             30 June   30 September(1)        30 June
                                                                                                        2012                2012              2011           2012
                                                                                                 (Unaudited)         (Unaudited)       (Unaudited)      (Audited)

     Weighted average number of shares (million)                                                       431.5               431.4             431.1          430.8
     Weighted average number of diluted shares (million)                                               432.3               432.3             431.6          432.0
     Total earnings/(loss) per share (cents):
     Basic earnings                                                                                      121                  25               111            614
     Diluted earnings                                                                                    121                  25               111            612
     Headline earnings/(loss)                                                                            123                 (6)                95            565
      from continuing operations                                                                        102                (11)                70            465
      from discontinued operations                                                                       21                   5                25            100
     Diluted headline earnings/(loss)                                                                    123                 (6)                95            563
      from continuing operations                                                                        102                (11)                70            463
      from discontinued operations                                                                       21                   5                25            100

     Figures in million
     Reconciliation of headline earnings:
     Continuing operations
     Net profit/(loss)                                                                                   433                (73)               367          2 053
     Adjusted for:
     Reversal of impairment of investment in associate*                                                                                     (48)           (56)
     Impairment of investments*                                                                           48                 144                             144
     Reversal of impairment of assets                                                                                      (60)                            (60)
     Taxation effect on impairment of assets                                                                               (34)                            (34)
     Profit on sale of property, plant and equipment                                                    (55)                (34)              (26)           (63)
     Taxation effect of profit on sale of property, plant and equipment                                   14                   9                 7             16

     Headline earnings/(loss)                                                                            440                (48)               300          2 000

     Discontinued operations
     Net profit                                                                                           89                 180               111            592
     Adjusted for:
     Profit on sale of property, plant and equipment                                                                      (230)                           (232)
     Taxation effect of profit on sale of property, plant and equipment                                                      71                              72

     Headline earnings                                                                                    89                  21               111            432

     Total headline earnings/(loss)                                                                      529                 (27)              411          2 432

     (1) The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 6 in this regard
     *   There is no taxation effect on these items

     Net asset value per share
                                                                                                            At               At               At
                                                                                                  30 September          30 June     30 September
                                                                                                          2012             2012             2011
                                                                                                   (Unaudited)        (Audited)      (Unaudited)

     Number of shares in issue                                                                     435 064 236      431 564 236      430 272 715
     Net asset value per share (cents)                                                                   7 920            7 897            7 290

8.   Borrowings

     The Nedbank revolving credit facility was repaid in full during the December 2011 quarter and the full R850 million facility is available until
     December 2013.

     The balance on the Nedbank term facilities at 30 September 2012 is R762 million.

     US$40 million of the US$300 million syndicated revolving credit facility was drawn during the September 2012 quarter, taking the drawn down
     level to US$170 million. The facility is repayable by August 2015.

9.   Commitments and contingencies
                                                                                                            At               At               At
                                                                                                  30 September          30 June     30 September
                                                                                                          2012             2012             2011
     Figures in million                                                                            (Unaudited)        (Audited)      (Unaudited)
     Capital expenditure commitments:
     Contracts for capital expenditure                                                                     510              519              290
     Authorised by the directors but not contracted for                                                  2 263            2 257            3 570

                                                                                                         2 773            2 776            3 860

      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 2012, available on the
      group's website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2012.

10.   Related parties

      Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the
      group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the September 2012 quarter, Harmony
      shares were purchased by certain directors as set out below:

      Graham Briggs                                                               14 347 shares
      Frank Abbott                                                                73 900 shares
      Ken Dicks                                                                   12 500 shares

11.   Subsequent events

      (a)   Tax court judgement  refer to note 5 for the details.

      (b)   On 2 October 2012 employees at our Kusasalethu operation went on strike. This will affect production in the December 2012 quarter.
            Refer to the CEO's review on page 3 for further details.

12.   Segment report

      The segment report follows on the page 25.

13.   Reconciliation of segment information to consolidated income statements
                                                                                                                                               30 September   30 September(1)
                                                                                                                                                       2012              2011
      Figures in million                                                                                                                        (Unaudited)       (Unaudited)
      The "Reconciliation of segment information to consolidated income statements" 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 and segment report:
      Reconciliation of production profit to gross profit
      Total segment revenue                                                                                                                           4 619             3 929
      Total segment production costs                                                                                                                (3 070)           (2 623)
      Production profit per segment report                                                                                                            1 549             1 306
      Discontinued operations                                                                                                                         (141)             (172)
      Production profit from continuing operations                                                                                                    1 408             1 134
      Cost of sales items, other than production costs and royalty expense                                                                            (620)             (535)

      Gross profit as per income statements*                                                                                                            788               599

      (1) The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 6 in this regard
      *   The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

SEGMENT REPORT (Rand/Metric) (Unaudited)
for the quarter ended 30 September 2012

                                                           Revenue                       Production cost              Production profit/(loss)             Capital expenditure              Kilograms produced                   Tonnes milled
                                                        30 September                       30 September                    30 September                        30 September                    30 September                       30 September
                                                    2012             2011             2012            2011             2012             2011             2012             2011            2012             2011             2012             2011
                                                          R million                         R million                        R million                          R million                          kg                                t'000

Continuing operations
South Africa
Underground
Kusasalethu                                          684              575              434             335              250              240              116               98           1 601            1 554              328              331
Doornkop                                             374              348              249             230              125              118               78               65             871              866              245              277
Phakisa                                              298              206              251             188               47               18               78               74             679              526              142              113
Tshepong                                             509              466              383             305              126              161               75               59           1 159            1 183              313              287
Masimong                                             436              314              258             215              178               99               36               50             987              796              261              232
Target 1                                             443              366              224             206              219              160               87               63           1 071              939              178              210
Bambanani                                            194              175              148             201               46             (26)               32               77             438              498               43               92
Joel                                                 375              283              162             149              213              134               38               13             900              691              167              147
Unisel(1)                                            190              136              146             121               44               15               16               16             430              340              116               92
Target 3                                             151               93              124             105               27             (12)               28               12             367              241               87               78
Surface
All other surface operations                         337              353              230             242              107              111               93               26             821              863            2 390            2 431

Total South Africa                                 3 991            3 315            2 609           2 297            1 382            1 018              677              553           9 324            8 497            4 270            4 290
International
Hidden Valley                                        287              259              261             143               26              116               87               40             689              792              491              415
Other                                                                                                                                               131               69                                                               

Total international                                  287              259              261             143               26              116              218              109             689              792              491              415

Total continuing operations                        4 278            3 574            2 870           2 440            1 408            1 134              895              662          10 013            9 289            4 761            4 705

Discontinued operations
Evander                                              341              355              200             183              141              172               53               38             817              918              159              165
Total discontinued operations                        341              355              200             183              141              172               53               38             817              918              159              165

Total operations                                   4 619            3 929            3 070           2 623            1 549            1 306              948              700          10 830           10 207            4 920            4 870
Reconciliation of the segment
information to the consolidated
income statement (refer to
note 13)                                           (341)            (355)            (200)           (183)

                                                   4 278            3 574            2 870           2 440

(1) The Virginia segment comprised of several mines, including Unisel. The other mines were placed on care and maintenance, the last in October 2010. As their results are no longer included in the comparative information, Unisel now becomes a
    segment on its own.

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
M Motloba*^ Deputy Chairman
G P Briggs Chief Executive Officer
F Abbott Financial Director
H E Mashego Executive Director
F F T De Buck*^ Lead independent director
J A Chissano*1^, K V Dicks*^, Dr D S Lushaba*^, C Markus*^,
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
Riana Bisschoff
Telephone: +27 11 411 6020
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 Depositary
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company, Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail 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, South Africa
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
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