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HARMONY GOLD MINING COMPANY LIMITED - Results for the Fourth Quarter and Year Ended 30 June 2013

Release Date: 14/08/2013 07:05:00      Code(s): HAR       PDF(s):  
Results for the Fourth Quarter and Year Ended 30 June 2013

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 FOURTH QUARTER AND YEAR ENDED 30 JUNE 2013

KEY FEATURES

Quarter on quarter

- Gold production increased by 12% to 8 588kg (276 109oz)
  - increase in tonnes milled of 9%
  - increase in total recovered grade of 2%
- Cash operating costs decreased by 3% to R351 109/kg (US$1 156/oz)
- Operating profit(1) lower at R639 million (US$68 million)
- Headline loss per share of 186 SA cents (US$20 cents)
  - reversal of the Hidden Valley deferred tax asset of R547 million (US$55 million)(3)
  - retrenchment costs

Year on Year
- 7% increase in underground grade
- Lowest recorded annual LTIFR(2)
- Evander sale transaction completed
- Watershed agreement signed with Kusasalethu labour
- Gold production decreased by 2% to 35 374kg (1 137 297oz)
- Cash operating costs increased to R327 210/kg (US$1 154/oz)
- Operating profit¹ lower at R4.5 billion (US$511 million)
- Headline profit per share* of 47 SA cents (5 US cents)
  - reversal of the Hidden Valley deferred tax asset of R547 million (US$55 million)(3)
  - losses related to temporary closure at Kusasalethu
  - retrenchment costs
- No final dividend declared (interim dividend of 50 SA cents paid)

*    Includes discontinued operation
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
2.   LTIFR = Lost Time Injury Frequency Rate
3.   Translated at a spot rate of US$/R9.98 at 30 June 2013

RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED 30 JUNE 2013
                                                                                             Year           Year
                                                 Quarter       Quarter       Q-on-Q         ended          ended
                                                    June         March       variance         June          June       Variance
                                                  2013         2013#             %         2013#         2012#              %
Gold produced                - kg                  8 588         7 699            12        35 374        36 273            (2)
                              oz                276 109       247 529            12     1 137 297     1 166 203            (2)
Cash operating costs         - R/kg              351 109       362 491             3       327 210       274 767           (19)
                              US$/oz              1 156         1 264             9         1 154         1 100            (5)
Gold sold                    - kg                  8 146         7 506             9        34 970        36 182            (3)
                              oz                261 901       241 322             9     1 124 312     1 163 277            (3)
Underground grade             g/t                  4.37         4.50            (3)          4.54          4.26              7
Gold price received          - R/kg              427 534       470 030           (9)       454 725       419 668              8
                              US$/oz              1 407         1 639          (14)         1 603         1 681            (5)
Operating profit(1)          - R million             639           821          (22)         4 502         5 258           (14)
                              US$million             68            92          (26)           511           677           (25)
Basic (loss)/earnings         SAc/s               (809)          (29)        >(100)         (548)           614         >(100)
per share*                    USc/s                (86)           (3)        >(100)          (62)            79         >(100)
                             
Headline (loss)/profit*      - Rm                  (804)         (202)        >(100)           204         2 432           (92)
                              US$m                 (85)          (23)        >(100)            23           317           (93)
Headline (loss)/earnings      SAc/s               (186)          (47)        >(100)            47           565           (92)
per share*                    USc/s                (20)           (5)        >(100)             5            74           (93)
Exchange rate                 R/US$                9.45          8.92             6          8.82          7.77             14

#   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
*   Including discontinued operations

Shareholder information                                                                  
Issued ordinary share capital at 30 June 2013                              435 289 890   
Issued ordinary share capital at 31 March 2013                             435 257 691*   
Issued ordinary share capital at 30 June 2012                              431 564 236   
Market capitalisation                                                                    
At 30 June 2013                                                         (ZARm)  15 562   
At 30 June 2013                                                         (US$m)   1 568   
At 31 March 2013                                                        (ZARm)  25 728   
At 31 March 2013                                                        (US$m)   2 804   
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 July 2012 
30 June 2013) for ordinary shares                                                85.71   
12-month low (1 July 2012 
30 June 2013) for ordinary shares                                                33.47   
12-month high (1 July 2012 
30 June 2013) for ADRs                                                           10.34   
12-month low (1 July 2012 
30 June 2013) for ADRs                                                            3.30   
Free float                                                                        100%   
ADR ratio                                                                          1:1   
JSE Limited                                                                        HAR   
Range for quarter (1 April 
30 June 2013 closing prices)                                           R33.47  R58.25   
Average daily volume for the quarter
(1 April  30 June 2013)                                              2 232 419 shares   
Range for quarter (1 January 
31 March 2013 closing prices)                                          R53.40  R75.64   
Average daily volume for the quarter
(1 January  31 March 2013)                                           1 581 188 shares   
Range for the year (1 July 2012
30 June 2013 closing prices)                                           R33.47  R85.71   
Average daily volume for the year
(1 July 2012  30 June 2013)                                          1 753 866 shares   
Range for the year (1 July 2011
30 June 2012 closing prices)                                          R72.84  R115.75   
Average daily volume for the year
(1 July 2011  30 June 2012)                                          1 518 116 shares   
New York Stock Exchange, Inc including
other US trading platforms                                                         HMY   
Range for quarter (1 April 
30 June 2013 closing prices)                                         US$3.30  US$6.38   
Average daily volume for the quarter
(1 April  30 June 2013)                                                     3 302 649   
Range for quarter (1 January 
31 March 2013 closing prices)                                        US$5.94  US$8.88   
Average daily volume for the quarter
(1 January  31 March 2013)                                                  2 423 016   
Range for the year (1 July 2012
30 June 2013 closing prices)                                        US$3.30  US$10.34   
Average daily volume for the year
(1 July 2012  30 June 2013)                                                 2 484 062   
Range for the year (1 July 2011 
30 June 2012 closing prices)                                        US$8.70  US$14.87   
Average daily volume for the year
(1 July 2011  30 June 2012)                                                 2 321 783   
Investors' calendar                                                               2013   
Q1 FY14 results presentation                                          8 November 2013#   
Annual General Meeting                                                5 December 2013#   
Q2 and 6 months ended FY14 results
presentation                                                          3 February 2014#   
Q3 FY14 results presentation                                               9 May 2014#   
Q4 and year ended FY14 results presentation                            14 August 2014#   

# These dates may change in future
* The increase in the issued shares is mainly due to the shares issued to the
  Tlhakanelo Employee Share Trust

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 2013 will be
available on our website towards the end of
October 2013.

www.harmony.co.za

Forward-looking statements
This 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 judgement
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:
Resources and Reserves South Africa: Jaco Boshoff, Pr. Sci. Nat., who has
18 years' relevant experience and is registered with the South African
Council for Natural Scientific Professions (SACNASP).
Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc,
who has 25 years relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM).

Mr Boshoff and Mr Job are full-time employees of Harmony Gold Mining
Company Limited. 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.

Mineral Resource and Reserve information as at 30 June 2013 is included
in this report.

Chief executive officer's review
Harmony is a globally competitive gold mining company, focused on
growing profits. In the current gold price environment it is no longer
growth at all costs. Investors are seeking returns and do not favour
large capital projects. This is the new reality that we are dealing with.

During the past quarter we have concluded our strategic plans for
financial year 2014. Key considerations were:
-  free cash flow
-  applying conservative financial modelling
-  risk mitigation
-  retaining our balance sheet strength
    reducing all costs (including head office costs)
    reducing capital expenditure
-  continue to increase our grade
-  plans that will enable us to withstand the volatility of the gold price

Our strategic plans were approved assuming a gold price of R400 000/kg.
We believe that our plans are realistic and we have taken into account
possible risks to execute our strategy. Our safety and health initiatives,
improved productivity, the correct allocation of capital, a quality reserve
base, improved grade, reduced costs, experienced teams and proper
business planning will secure a sustainable business.

1. SAFETY
The year on year fatality injury frequency rate improved by 33% from
0.15 (rate per million man hours) in FY12 to 0.10 (rate per million man
hours) in financial year 2013 (FY13)  the lowest ever recorded in the
history of Harmony. Although Harmony achieved a significant year on
year improvement, a lot more needs to be done to eliminate fatalities.
A total of 10 people lost their lives due to mine accidents in Harmony
during FY13, compared to 15 people in FY12. A major reduction in the
number of fall of ground related fatalities was achieved with only one
fall of ground related fatality recorded in FY13.

The lost time injury rate improved by 21% year on year from 6.67 (rate
per million man hours) to 5.28 (rate per million man hours)  this is the
lowest annual rate in the history of Harmony.

It is with regret that I have to report that two people were fatally injured
in two separate accidents during the June 2013 quarter. They were
Potso Peter Kotjomela, a scraper winch operator at Phakisa and
Lebohang Michael Chake, a development team leader at Kusasalethu.
The board, management and I wish to express our sincere condolences
to the friends and families of these colleagues.

2. HEALTH
Over the past three years we have built a centralised health function
to focus on the roll out of our pro-active health strategy, as well as
standardising health protocols across the South African operations.
We have invested a substantial amount of resources, i.e. finance,
information technology and skills in improving our record keeping
systems and processes in an attempt to monitor employee health
individually and collectively to improve the overall health and wellness
of our employees.

40% of our workforce is on chronic medication and are continuously
monitored. Although HIV/Aids remains our biggest health risk, the
actuarial prevalence rate for Harmony has reduced from 27% to 24%
over the past five years. Between 10% to 20% of the employees of
the individual mines are now on antiretroviral therapy (ART). During
the past financial year all Harmony's employees and contractors were
offered voluntary counselling and testing for HIV/Aids, with 40%
volunteering to be tested.

Although there has been an improvement in sick absenteeism over the
past financial year from 5.13% to 4.55%, we believe that there is still
massive room for improvement in this area and it will be a key focus for
the health team for the next year.

3. OPERATIONAL AND FINANCIAL RESULTS
Year on year
Gold production for the year ending June 2013 was 35 374kgs,
2% lower than the same period last year, mainly due to the labour
disruptions at Kusasalethu during the December 2012, March 2013
and June 2013 quarters.

In line with Harmony's strategic initiative to improve the quality of
ounces mined, year on year underground grade increased by 7%.
Recovered grade was the main driver towards the increase in gold
production across the various operations and improvements were
recorded at most operations.
The following operations improved their gold production when
compared to financial year 2012 (FY12):
-  Joel  gold production was 565kg (21%) higher, mainly as a result of
   an 11% improvement in the recovered grade to 5.28g/t (4.78g/t in
   FY12), whilst tonnes milled increased by 10% year on year;
-  Bambanani  gold production was 556kg (54%) higher due to a
   49% increase in the recovered grade from 6.57g/t in FY12 to
   9.79g/t for the year under review. Tonnes milled increased by 3%
   year on year;
-  Doornkop  gold production was higher at 556kg (18%), recovered
   grade increased by 9% from 3.31g/t to 3.60g/t in FY13. Tonnes
   milled increased by 9%;
-  Target 3  gold production increased by 503kg (45%)  recovered
   grade increased by 42% to 5.03g/t from 3.55g/t in FY12;
-  Masimong  gold production increased by 396kg (12%), as a
   result of a 21% increase in the recovered grade to 4.17g/t
   (3.45g/t in FY12);
-  Target 1  gold production was 337kg (9%) higher; recovered grade
   increased by 20% from 4.61g/t in FY12 to 5.53g/t in financial year
   2013 (FY13);
-  Kalgold  gold production was 291kg (28%) higher; recovered
   grade increased by 22% to 0.95g/t compared to 0.78g/t in FY12.
   Tonnes milled increased 4% year on year;
-  Unisel  gold production increased by 220kg (14%); tonnes milled
   increased by 13% in FY13;
-  Steyn 2  gold production increased by 147kg (45%), with the
   operation being in production for the whole year. Tonnes milled
   increased by 24% whilst recovered grade increased by 31% to
   10.15g/t (7.74g/t in FY12).

The following operations require more attention in the next year, as
their production performance was less than acceptable:
-  Kusasalethu produced a total of 2 740 kilograms of gold,
   2 893 kilograms (51%) less than in financial year 2012 due to labour
   unrest;
-  Tshepong produced 1 133kg gold less (21%) than the previous
   financial year. The decrease in gold production is mainly as a
   result of a 16% decrease in tonnes milled for financial year 2013.
   A decrease in the recovery grade to 3.99g/t, 7% lower than the
   4.29g/t recorded in FY12, also contributed towards the decrease in
   production;
-  Dumps  230kg less gold produced (15%); a 26% decrease in
   the recovery grade was the main contributor towards the decrease
   in gold produced. Tonnes milled increased by 11%. The decrease in
   grade is due to the depletion of all the higher grade waste dumps;
-  Hidden Valley produced 118kg (-4%) less gold year on year. The
   recovery grade decreased by 8% to 1.43g/t from 1.56g/t in FY12,
   whilst tonnes milled increased by 4%;
-  Phakisa produced 107kg (-4%) less gold than in the previous 
   finanicial year, due to the ventilation shaft failure in the March and
   June 2013 quarters resulting in tonnes milled being 2% lower
   than in FY13, with the recovered grade 3% lower at 4.75g/t
   (4.88g/t in FY12).

A total net loss of R2.4 billion was recorded, compared to a net profit
of R2.6 billion for the 2012 financial year, mainly due to the impairment
of the Hidden Valley asset and labour disruptions at Kusasalethu and its
subsequent temporary closure.

The total basic loss per share is 548 SA cents for the year ended 30 June
2013, compared to earnings of 614 SA cents per share in the previous
year. Total headline earnings per share decreased from 565 SA cents to
47 SA cents per share.

Quarter on quarter

We continue to manage that which is in our control  production and
costs. Gold production for the June 2013 quarter increased by 12%
to 8 588kg compared to the previous quarter. This was mainly due to
the build-up in production at Kusasalethu, after the labour unrest at
the mine during the second to fourth quarters of the financial year.

Operating profit for the June 2013 quarter was 22% lower, due to a
9% decrease in the gold price received, as well as an 8% increase in
cash operating cost. Cash operating costs in the June 2013 quarter
increased by R225 million when compared to the March 2013 quarter,
due to the build-up in production at Kusasalethu, annual electricity
increases, as well as winter electricity tariffs.

We are making good progress with our cost cutting project, Project
400. We have reduced our capital expenditure, as well as our services,
exploration, procurement and corporate costs.

The rand per kilogram unit cost for the June 2013 quarter decreased by
3% to R351 109/kg in the past quarter, mainly due to the 12% increase
in gold produced for the June 2013 quarter.

Total capital expenditure for the June 2013 quarter was R804 million 
R127 million higher than the previous quarter  mainly as a result of a
R93 million increase in capital expenditure at Kusasalethu.

On the 19th of July 2013 Harmony announced that the carrying value
of its 50% holding in Hidden Valley would be written down to its net
recoverable value. The reason for the impairment is the reduction in
the US dollar gold and silver prices and Hidden Valley's poor production
performance. An amount of US$268 million (approximately R2.7 billion)
has been written down. In addition, an amount of R58 million in respect
of Harmony's South African assets has been impaired. The impairments
have reduced the reported net profit, but do not have an impact on
reported cash balances and free cash flow.

The net loss for the June 2013 quarter was R3 499 million, compared to
a R124 million net loss recorded for the March 2013 quarter, mainly due
to the impairment of assets of R2 675 million and the derecognition of
the deferred tax asset of R547 million for the Hidden Valley operation.

The total basic loss per share for the June 2013 quarter increased from
29 SA cents to 809 SA cents per share. The total headline loss per share
increased from 47 SA cents to 186 SA cents.

Hidden Valley
The various efficiency improvement and cost reduction projects
continue at Hidden Valley showing significant improvements in the
mining grade control, road maintenance (cost and productivity), truck
loading efficiency and smaller mobile fleet requirements.

The restructuring of the joint venture's management to meet both the
financial and strategic objectives of the business progressed well during
the past quarter.

4. GOLD MARKET
We are in gold mining for the long haul and believe that R400 000/kg
is a sustainable gold price to assume in the current gold price climate.
With the Rand/dollar exchange rate being weaker, it has been a huge
advantage to be predominately a South African producer.

The rand gold price received during the quarter decreased by 9% to
R427 534/kg, from R470 030/kg in the previous quarter. This was mainly
due to a 14% decrease in the US dollar gold price from US$1 639/oz in
the March 2013 quarter to US$1 407/oz during the past quarter. This
decrease was however partially offset by a 6% weakening in the rand
against the dollar from US$/R8.92 in the previous quarter to US$/R9.45
in the June 2013 quarter.

Year on year, the R/kg gold price received increased by 8% while
the US$/oz price decreased by 5%, due to the R/US$exchange rate
weakening by 14%.

5. RESERVES AND RESOURCES
As at 30 June 2013, Harmony's Mineral Reserves amounted to
51.5 million ounces (Moz) of gold, a 2.8% decrease from the 52.9Moz
declared on 30 June 2012. The 2.8% decrease collectively represents
mined Reserves during the year, a change in surface sources Reserves,
together with some scope changes. The geographical representation of
Reserves has not changed from the previous year.

Harmony's attributable gold equivalent Mineral Resources are declared
as 147.7Moz as at 30 June 2013, a 1.7% decrease year-on-year from
the 150.2Moz declared on 30 June 2012. The 1.7% decrease is due to
mining and geology changes.

Our large Resource and Reserve base supports our belief that we have a
solid base of assets containing quality ounces.

6. WAFI-GOLPU PROJECT
Regardless of the quality of the ore body, developing Golpu in line
with the 2012 pre-feasibility study in the current gold and copper
price climate does not deliver an adequate return on investment
and therefore requires to be repositioned. We had various concerns
regarding the substantial capital that will be injected into the project
and are considering ways in which to develop a project with lower
capital requirements and which will be a modular, expandable mine. 

Harmony's contribution to drilling and project expenditure for the next
two financial years will be funded from our cash flow, after which
external funding options will be considered. During this phase we will
ensure that Golpu's development strategy is aligned with the strategy of
Harmony, which is to grow investor returns. 

A low risk, modular, expandable development approach involves less
risk and is expected to result in an improved project value. The decision
to apply a modular expandable solution is a different approach to that
proposed in the 2012 pre-feasibility study.

7. EMPLOYEE RELATIONS
The labour relations climate remained volatile in the industry prior to
the start of the 2013 round of wage negotiations in the gold sector.
Harmony experienced two work stoppages during the quarter led by
the National Union of Mine Workers (NUM) at Doornkop and Tshepong.
The issues raised during these industrial actions were mainly operational
and have since been resolved, or are in the process of being addressed
through the existing mine-based structures.

A recognition agreement was signed by management and the
Association of Mineworkers and Construction Union (AMCU) for
Masimong during the week of the 15th of July 2013. AMCU now
represents a third of Masimong's total workforce and at Kusasalethu,
AMCU represents 74% of the employees.

The gold sector wage negotiations started on 11 July 2013 at the
Chamber of Mines. We believe that good sense will prevail and that
strikes will be averted. The labour disruptions at Kusasalethu alone
cost Harmony approximately R1.2 billion. It is not in the interest of
the company, the employees or the industry to further be subjected to
such losses.

There are a number of initiatives being implemented to contain the
labour situation, both at company and industry level. Some of these
include the following:
-  Workshops with all the unions in the company;
-  Engagement with the unions on signing of the code of conduct by
   individual employees similar to the one signed at Kusasalethu;
-  General managers' mass meetings;
-  Communication campaigns with employees and unions across all
   our South African operations;
-  Re-introduction of the mine productivity bonus;
-  Continued engagement with the other gold mining companies.

8. DISPOSAL OF A 30% INTEREST IN THE PHOENIX OPERATION
On 20 March 2013 Harmony signed transaction and funding
agreements to give effect to an empowerment transaction to dispose
of 30% of its Free State based Phoenix tailings operation (Phoenix)
to BB-BEE shareholders. The BB-BEE shareholders include Sikhuliso
Resources (Proprietary) Limited, Kopano Resources (Proprietary) Limited,
Mazincazelane Investments (Proprietary) Limited and the Malibongwe
Women Development Trust, as well as a community trust that has been
created by Harmony.

9. DIVIDEND
In view of the fact that Harmony did not record a profit for the last
six months, the board has decided not to declare a final dividend. An
interim dividend of 50 SA cents was paid during FY13.

CONCLUSION

Harmony's strategy has been consistent in that we seek to optimise
operational delivery, grow our cash flow and share our profits with all
our stakeholders. There are times when pursuing one's strategy, tough
decisions are required  such as the temporary closure of Kusasalethu.
We will continue to do what is right for our shareholders and
stakeholders to sustain the future of the company.

Graham Briggs
Chief executive officer

Financial overview

QUARTER ON QUARTER

Net loss
The net loss for the June 2013 quarter was R3 499 million compared
to a R124 million net loss for the March 2013 quarter, mainly due to
impairment of assets of R2 675 million and the reversal of a deferred tax
asset of R547 million for the Hidden Valley operation.

Impairment of assets
Following the sharp decrease in the gold price, an impairment of assets
of R2 733 million was recorded during the June 2013 quarter, consisting
of an impairment of R2 675 million for the Hidden Valley operation and
R58 million for the SA operations. The impairment results from a lower
than expected life-of-mine profit, due to the reduction in the US dollar
gold and silver prices assumptions and Hidden Valley's poor production
performance.

Other items in Cost of Sales
Other items in Cost of Sales for the June 2013 quarter includes a change
in estimate of the value of static gold in lock-up and other stockpiles
of R29 million and restructuring costs of R39 million, following the
introduction of voluntary retrenchment packages in South Africa and
the restructuring at the Hidden Valley operation. Offsetting this is a net
credit of R40 million for rehabilitation following the reduction of the
rehabilitation liability, primarily as a result of the rehabilitation projects
in the Free State area.

Other expenses
Included in other expenses in the June 2013 quarter is a loss of
R161 million for the foreign exchange movement (March 2013:
R150 million) on the US$ denominated syndicated facility, resulting from
the Rand weakening from US$/R9.22 at 31 March 2013 to US$/R9.98 at
30 June 2013. Also included is an amount of R23 million for the once-off
share-based payment expense related to the Phoenix transaction.

Deferred tax
A deferred tax expense of R547 million was recorded following
the derecognition of the Hidden Valley deferred tax asset during
the June 2013 quarter, as it is no longer deemed recoverable in the
current gold price environment.

Loss per share
Total basic loss per share increased in the June 2013 quarter from
29 SA cents to 809 SA cents per share. Total headline loss per share increased
from 47 SA cents to 186 SA cents per share.

YEAR ON YEAR

Exploration expenditure
Exploration expenditure for the year ended 30 June 2013 increased to
R673 million compared to R500 million for the previous year, mainly
due to R652 million spent on the PNG projects. Expenditure on resource
definition drilling amounted to R233 million, exploration amounted to
R251 million, while the feasibility studies accounted for R168 million of
the total for the year. These expenses are expected to decrease in future
as a result of the optimisation process reductions agreed to by both the
joint venture partners.

Profit from discontinued operations
Profit from discontinued operations for the year ended 30 June 2013
includes the group profit of R102 million recorded on the sale of Evander
in the March 2013 quarter, following the fulfilment of all conditions
precedent. The remaining R212 million represents profits for Evander
for the eight months ended February 2013. Included in the amount
for the year ended 30 June 2012 is the profit on sale of Evander 6 and
Twistdraai to Taung Gold Limited of R230 million (before tax).

Loss per share
Total basic loss per share amounted to 548 SA cents in the year ended
30 June 2013, compared to earnings of 614 SA cents per share in the
previous year. Total headline earnings per share decreased from
565 SA cents to 47 SA cents per share.

Borrowings
Total borrowings increased by R722 million to R2 538 million in the year
ended 30 June 2013. This is due to a total drawdown of US$80 million
(R678 million) and a foreign exchange translation loss of R351 million
recorded on the US$ syndicated facility in the year ended 30 June 2013.
This was partially offset by the total repayment of R305 million made
during the year ended 30 June 2013 on the rand facilities.

Results for the fourth quarter and year ended 30 June 2013 (Rand)

CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)
                                                                                    Quarter ended                   Year ended
                                                                        30 June         31 March     30 June     30 June      30 June
                                                                           2013             2013        2012        2013         2012
Figures in million                                         Notes     (Unaudited)      (Unaudited) (Unaudited)                (Audited)

Continuing operations
Revenue                                                                   3 483            3 528       3 934      15 902       15 169
Cost of sales                                                  2         (6 173)          (3 283)     (3 325)    (16 468)     (12 137)

   Production costs                                                      (2 844)          (2 707)     (2 639)    (11 400)      (9 911)
   Amortisation and depreciation                                           (501)            (459)       (548)     (1 942)      (1 921)
   (Impairment)/reversal of impairment of assets                         (2 733)                         60      (2 733)          60
   Other items                                                              (95)            (117)       (198)       (393)        (365)

Gross (loss)/profit                                                      (2 690)             245         609        (566)       3 032
Corporate, administration and other expenditure                            (127)            (121)        (91)       (465)        (352)
Social investment expenditure                                               (57)             (25)        (22)       (127)         (72)
Exploration expenditure                                                    (219)            (157)       (161)       (673)        (500)
Profit on sale of property, plant and equipment                4                             15          34         139           63
Other expenses  net                                           5           (169)            (138)        (74)       (350)         (50)

Operating (loss)/profit                                                  (3 262)            (181)        295      (2 042)       2 121
Reversal of impairment of investment in associate                                                                              56
Impairment of investments                                      6                            (39)       (144)        (88)        (144)
Net (loss)/gain on financial instruments                                     (8)              15          12         173           86
Investment income                                                            67               47          33         185           97
Finance cost                                                                (57)             (65)        (69)       (256)        (286)

(Loss)/profit before taxation                                            (3 260)            (223)        127      (2 028)       1 930
Taxation                                                                   (239)             (44)       (200)       (655)         123

Normal taxation                                                              78             (124)        (83)       (271)        (199)
Deferred taxation                                              7           (317)              80        (117)       (384)         322

Net (loss)/profit from continuing operations                             (3 499)            (267)        (73)     (2 683)       2 053

Discontinued operations 
Profit from discontinued operations                            8                            143         180         314          592

Net (loss)/profit for the period                                         (3 499)            (124)        107      (2 369)       2 645
 
Attributable to:
Owners of the parent                                                     (3 499)            (124)        107      (2 369)       2 645

(Loss)/earnings per ordinary share (cents)                     9
(Loss)/earnings from continuing operations                                 (809)             (62)        (17)       (621)         477
Earnings from discontinued operations                                                        33          42          73          137

Total (loss)/earnings                                                      (809)             (29)         25        (548)         614

Diluted (loss)/earnings per ordinary share (cents)             9
(Loss)/earnings from continuing operations                                 (809)             (62)        (17)       (621)         476
Earnings from discontinued operations                                                        33          42          73          136

Total diluted (loss)/earnings                                              (809)             (29)         25        (548)         612

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 June          31 March      30 June              30 June      30 June
                                                                               2013              2013         2012                 2013         2012
Figures in million                                            Notes      (Unaudited)       (Unaudited)  (Unaudited)                         (Audited)

Net (loss)/profit for the period                                             (3 499)            (124)          107               (2 369)       2 645
Other comprehensive income for the period,
net of income tax                                                                25              510           606                  758        1 587

    Foreign exchange translation                                                 26              523           506                  749        1 485
    Movements on investments                                      6              (1)             (13)          100                    9          102
   
Total comprehensive (loss)/income for the period                             (3 474)             386           713               (1 611)       4 232

Attributable to:
Owners of the parent                                                         (3 474)             386           713               (1 611)       4 232

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

All items in other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.

The condensed consolidated provisional financial statements (condensed consolidated financial statements) have been
prepared by Harmony Gold Mining Company Limited's corporate reporting team headed by Mr Herman Perry, supervised by
the financial director, Mr Frank Abbott. They have been approved by the Board of Harmony Gold Mining Company Limited.
The condensed consolidated financial statements for the 12 months ended 30 June 2013 were reviewed by the group's
external auditors, PricewaterhouseCoopers Incorporated (see note 18).

CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)

                                                                                                        At           At          At
                                                                                                   30 June     31 March     30 June
                                                                                                      2013         2013        2012
Figures in million                                                                           Note            (Unaudited)   (Audited)

ASSETS
Non-current assets
Property, plant and equipment                                                                  10   32 820       34 911      32 853
Intangible assets                                                                                    2 191        2 190       2 196
Restricted cash                                                                                         37           38          36
Restricted investments                                                                               2 054        2 050       1 842
Deferred tax assets                                                                             7      104          652         486
Investments                                                                                    11      153          139         146
Inventories                                                                                             57           57          58
Trade and other receivables                                                                                          6          28

Total non-current assets                                                                            37 416       40 043      37 645

Current assets
Inventories                                                                                          1 425        1 206         996
Trade and other receivables                                                                          1 162        1 482       1 245
Income and mining taxes                                                                                132            3         118
Cash and cash equivalents                                                                            2 089        3 099       1 773

                                                                                                     4 808        5 790       4 132
Assets of disposal groups classified as held for sale                                           8                           1 423

Total current assets                                                                                 4 808        5 790       5 555

Total assets                                                                                        42 224       45 833      43 200

EQUITY AND LIABILITIES
Share capital and reserves
Share capital                                                                                       28 325       28 331      28 331
Other reserves                                                                                       3 478        3 392       2 444
Retained earnings                                                                                      503        4 002       3 307

Total equity                                                                                        32 306       35 725      34 082

Non-current liabilities
Deferred tax liabilities                                                                             3 021        3 244       3 106
Provision for environmental rehabilitation                                                           1 997        1 961       1 865
Retirement benefit obligation                                                                          194          188         177
Other provisions                                                                                        55           48          30
Borrowings                                                                                     12    2 252        2 238       1 503

Total non-current liabilities                                                                        7 519        7 679       6 681

Current liabilities
Borrowings                                                                                     12      286          287         313
Income and mining taxes                                                                                  4           92           1
Trade and other payables                                                                             2 109        2 050       1 747
                                                                                                     2 399        2 429       2 061
Liabilities of disposal groups classified as held for sale                                      8                             376

Total current liabilities                                                                            2 399        2 429       2 437

Total equity and liabilities                                                                        42 224       45 833      43 200

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



CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand)                        
for the year ended 30 June 2013                                                                                                         
                                                                                                Share      Other   Retained             
Figures in million                                                                            capital   reserves   earnings     Total   
Balance  30 June 2012                                                                         28 331      2 444      3 307    34 082   
Issue of shares                                                                                     1                             1   
Share-based payments                                                                              (7)        274                 267   
Net loss for the period                                                                                           (2 369)   (2 369)   
Other comprehensive income for the period                                                                   758                 758   
Option premium on BEE transaction                                                                             2                   2   
Dividends paid(1)                                                                                                   (435)     (435)   
Balance  30 June 2013                                                                         28 325      3 478        503    32 306   
Balance  30 June 2011                                                                         28 305        762      1 093    30 160   
Issue of shares                                                                                    26                            26   
Share-based payments                                                                                         95                  95   
Net profit for the period                                                                                           2 645     2 645   
Other comprehensive income for the period                                                                 1 587               1 587   
Dividends paid(2)                                                                                                   (431)     (431)   
Balance  30 June 2012                                                                         28 331      2 444      3 307    34 082   

1. Dividend of 50 SA cents declared on 13 August 2012 and 50 SA cents on 1 February 2013.                                               
2. Dividend of 60 SA cents declared on 12 August 2011 and 40 SA cents on 2 February 2012.                                               
The statement of changes in equity for the year ended 30 June 2012 has been audited.                                                    
The accompanying notes are an integral part of these condensed consolidated financial statements.                                   


CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)                                                                   
                                                                                                                    Quarter ended                                               Year ended   
                                                                                                   30 June               31 March            30 June                    30 June           30 June   
                                                                                                      2013                   2013               2012                       2013              2012   
Figures in million                                                                             (Unaudited)            (Unaudited)        (Unaudited)                                    (Audited)   
Cash flow from operating activities                                                                                                                                                                 
Cash generated by operations                                                                           221                    204              1 211                      3 154             4 551   
Interest and dividends received                                                                         48                     34                 20                        138                80   
Interest paid                                                                                         (40)                   (27)               (38)                      (125)             (141)   
Income and mining taxes paid                                                                         (129)                   (70)              (163)                      (312)             (277)   
Cash generated by operating activities                                                                 100                    141              1 030                      2 855             4 213   
Cash flow from investing activities                                                                                                                                                                 
Restricted cash transferred from disposal group                                                                              252                                                                
Proceeds on disposal of Evander                                                                                            1 264                                        1 264                    
Proceeds on disposal of investment in associate                                                                                                 29                                         222   
Proceeds on disposal of Evander 6 and Twistdraai                                                                                               125                                         125   
Proceeds on disposal of Merriespruit South                                                                                                                                61                    
Purchase of investments                                                                               (14)                   (33)                                         (86)                    
Other investing activities                                                                             (1)                      3               (56)                        (4)              (85)   
Net additions to property, plant and equipment(1)                                                    (938)                  (835)              (952)                    (3 713)           (3 140)   
Cash (utilised)/generated by investing activities                                                    (953)                    651              (854)                    (2 478)           (2 878)   
Cash flow from financing activities                                                                                                                                                                 
Borrowings raised                                                                                                                              342                        678             1 443   
Borrowings repaid                                                                                    (156)                    (4)              (161)                      (333)           (1 248)   
Ordinary shares issued  net of expenses                                                                 1                                        3                          1                26   
Option premium on BEE transaction                                                                        2                                                                  2                    
Dividends paid                                                                                                             (217)                                        (435)             (431)   
Cash (utilised)/generated by financing activities                                                    (153)                  (221)                184                       (87)             (210)   
Foreign currency translation adjustments                                                               (4)                     17               (14)                         26              (45)   
Net (decrease)/increase in cash and cash equivalents                                               (1 010)                    588                346                        316             1 080   
Cash and cash equivalents  beginning of period                                                      3 099                  2 511              1 427                      1 773               693   
Cash and cash equivalents  end of period                                                            2 089                  3 099              1 773                      2 089             1 773   

1. Includes capital expenditure for Wafi-Golpu and other international projects of R133 million in the June 2013 quarter (March 2013: R148 million) (June 2012: R122 million) and   
R537 million in the 12 months ended 30 June 2013 (June 2012: R314 million).                                                                                                                         
The accompanying notes are an integral part of these condensed consolidated financial statements.                                                                   

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2013 (Rand)

1.   Accounting policies
     Basis of accounting
     The condensed consolidated provisional financial statements are prepared in accordance with the requirements of the JSE Limited Listings
     Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings Requirements require provisional
     reports to be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial
     Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and contain the information
     required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the condensed consolidated provisional
     financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.

2.   Cost of sales

                                                                 Quarter ended                     Year ended   
                                                       30 June        31 March       30 June   30 June     30 June   
                                                          2013            2013          2012      2013        2012   
Figures in million                                 (Unaudited)     (Unaudited)   (Unaudited)             (Audited)   
Production costs  excluding royalty                     2 799           2 658         2 623    11 183       9 791   
Royalty expense                                             45              49            16       217         120   
Amortisation and depreciation                              501             459           548     1 942       1 921   
Impairment/(reversal of impairment) of assets(1)         2 733                         (60)     2 733        (60)   
Rehabilitation (credit)/expenditure(2)                    (40)              10            20      (24)        (17)   
Care and maintenance cost of restructured shafts            16              16            19        68          88   
Employment termination and restructuring costs(3)           39                           11        46          81   
Share-based payments(4)                                     45              95            21       266          87   
Other(5)                                                    35             (4)           127        37         126   
Total cost of sales                                      6 173           3 283         3 325    16 468      12 137   


     1. The impairment in the June 2013 quarter consists of an impairment of R2.68 billion on Hidden Valley, R31 million on St Helena and R27 million on Steyn 2. The net reversal
        in the June 2012 quarter consists mainly of a reversal of R194 million for Target 1 and an impairment of R126 million on Steyn 2. Refer to note 10 for further detail.
     2. The credit in the June 2013 quarter relates to a change in estimate following the annual reassessment. The decrease in the 2012 and 2013 years resulted due to the
        rehabilitation projects completed in the Free State area during both years.
     3. Included in the June 2013 quarter are amounts relating to the restructuring at Hidden Valley and the introduction of voluntary retrenchment packages in South Africa.
        The amounts for the 2012 financial year relates to restructuring at the Bambanani shaft.
     4. Refer to note 3 for details.
     5. Included in the June 2013 quarter are amounts relating to the change in estimate of gold in lock-up and other stockpiles. The June 2012 quarter includes amounts relating
        to the change in estimate of gold in lock-up.


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 10 years receiving an additional 10%. 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 in the balance sheet, the fair value of which will be remeasured at each reporting date. At the annual
     general meeting on 28 November 2012, the shareholders authorised the acceleration of the vesting from August to March each year.

     During the March 2013 quarter, the first portion of the Scheme Shares and SARs awarded in August 2012 vested, resulting in all qualifying
     employees receiving a minimum value of R1 912 before tax, amounting to a total value of R58 million being distributed in April 2013. During
     March 2013, new qualifying employees who have not previously received an offer were awarded 80 Scheme Shares and 160 SARs which will
     vest in four equal portions on each anniversary of the award. A total of 97 040 Scheme Shares and 194 080 SARs were issued by the Tlhakanelo
     Share Trust for this award.

4.   Profit on sale of property, plant and equipment
     Included in the amount is the transaction for the sale of the Merriespruit South mining right to Witwatersrand Consolidated Gold Resources
     Limited (Wits Gold) that was completed, resulting in a profit of R60 million during the December 2012 quarter.

5.   Other expenses  net

     (a) Included in the June 2013 quarter is a foreign exchange translation loss of R161 million (March 2013: R150 million) on the US dollar
         denominated loan. The effect of foreign exchange changes for the 12 months totals a translation loss of R351 million (June 2012:
         R45 million). Refer to note 12 for further details.

     (b) On 20 March 2013 Harmony signed transaction and funding agreements to give effect to an empowerment transaction to dispose of 30%
         of its Free State based Phoenix tailings operation (Phoenix) to BB-BEE shareholders, which includes a free-carry allocation of 5% to a
         Community Trust that has been created and is currently controlled by Harmony. The transaction closed on 25 June 2013, following the
         fulfilment of the last condition precedent. In terms of the agreements Phoenix was transferred to a newly incorporated subsidiary
         (PhoenixCo). The fair value of the net assets for purposes of the transaction was set at R450 million.

         The awards to the BEE partners have been accounted for as an in-substance option as the BEE partners will only share in the upside of their
         equity interest in PhoenixCo until the date the financing provided by Harmony is fully repaid. On this date the options will be exercised. The
         award of the options to the BEE partners is accounted for as an equity-settled share-based payment arrangement. The in-substance options
         carry no vesting conditions and the fair value of the options of R23 million has been expensed on the grant date, 25 June 2013.

6.   Impairment of investments
     A decline in the fair value of the investment in Witwatersrand Consolidated Gold Resource Limited (Wits Gold) during the year resulted in an
     impairment of R88 million (2012: R144 million) recorded in the income statement.

7.   Deferred taxation
     The net deferred taxation debit in the income statement in the June 2013 quarter is primarily due to the derecognition of the deferred tax asset
     amounting to R547 million previously recorded for the Hidden Valley operation.

     The net deferred taxation debit in the income statement in the June 2012 quarter is mainly due to the annual reassessment of the Life-of-Mine
     deferred tax rates amounting to R270 million.

8.   Disposal groups classified as held for sale and discontinued operations
     Evander Gold Mines Limited
     Harmony entered into an agreement to sell its 100% interest in Evander Gold Mines Limited (Evander) to a wholly owned subsidiary of Pan
     African Resources Plc for R1.5 billion, less certain distributions, during May 2012. The last condition was met on 14 February 2013 and the
     transaction was completed on 28 February 2013. In terms of the agreement Harmony received a distribution of R210 million and a purchase
     consideration of R1 314 million. A group profit of R102 million was recorded in the March 2013 quarter.

9.   Earnings and net asset value per share                                                                             
                                                                    Quarter ended                    Year ended   
                                                          30 June        31 March       30 June   30 June     30 June   
                                                             2013            2013          2012      2013        2012   
                                                      (Unaudited)     (Unaudited)   (Unaudited)             (Audited)   
Weighted average number of shares (million)                 432.6           431.8         431.4     431.9       430.8   
Weighted average number of diluted shares (million)         433.1           432.8         432.3     432.7       432.0   
Total (loss)/earnings per share (cents):                                                                                
Basic (loss)/earnings                                       (809)            (29)            25     (548)         614   
Diluted (loss)/earnings                                     (809)            (29)            25     (548)         612   
Headline (loss)/earnings                                    (186)            (47)           (6)        47         565   
 from continuing operations                                (186)            (56)          (11)       (2)         465   
 from discontinued operations                                                 9             5        49         100   
Diluted headline (loss)/earnings                            (186)            (47)           (6)        47         563   
 from continuing operations                                (186)            (56)          (11)       (2)         463   
 from discontinued operations                                                 9             5        49         100   

Reconciliation of headline earnings:                                                                    
Figures in million
Continuing operations                                                                                   
Net (loss)/profit                                         (3 499)           (267)          (73)   (2 683)       2 053   
Adjusted for:                                                                                           
Reversal of impairment of investment in associate*                                                           (56)   
Impairment of investments*                                                    39           144        88         144   
Impairment/(reversal of impairment) of assets               2 733                         (60)     2 733        (60)   
Taxation effect on impairment/(reversal of impairment) of                                               
assets                                                       (38)                         (34)      (38)        (34)   
Profit on sale of property, plant and equipment                             (15)          (34)     (139)        (63)   
Taxation effect of profit on sale of property, plant and                                                
equipment                                                                                   9        31          16   
Headline (loss)/earnings**                                  (804)           (243)          (48)       (8)       2 000   
Discontinued operations                                                                               
Net profit                                                                   143           180       314         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   
Profit on sale of investment in subsidiary*                                (102)                  (102)              
Headline earnings                                                             41            21       212         432   
Total headline (loss)/earnings                              (804)           (202)          (27)       204       2 432   


* There is no taxation effect on these items.
** Write-off of the Hidden Valley deferred tax asset of R547 million is not added back as it is not permitted per the South African Institute of Chartered Accountants Circular
   on Headline Earnings.

Net asset value per share                                                     
                                             At            At            At   
                                        30 June      31 March       30 June   
                                           2013          2013          2012   
                                                  (Unaudited)     (Audited)   
Number of shares in issue           435 289 890   435 257 691   431 564 236   
Net asset value per share (cents)         7 422         8 208         7 897   


10.   Property, plant and equipment and impairment
      One of the most significant assumptions that influence the life-of-mine plans and therefore impairment amount is the expected future gold
      price. During this year's testing, we used a short-term gold price of US$1 250, medium-term gold price of US$1 300 and long-term gold price
      of US$1 400 per ounce for Hidden Valley and an overall price of R400 000/kg for the South African operations. A 10% decrease in the gold
      price used in the models would have resulted in an additional impairment at Steyn 2 of R17 million, Target 1 of R350 million and the Hidden
      Valley operation of R1.96 billion.

11.   Investment in Rand Refinery
      During the June 2013 quarter, an additional 1.4% interest in Rand Refinery was purchased for R14 million. This is in addition to the 7.16%
      interest purchased for R72 million in two tranches during the March 2013 and December 2012 quarter. Harmony holds just over 10% interest
      in Rand Refinery as at 30 June 2013.

12.   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 Nedbank term facilities at 30 June 2013 is R458 million.

      Two drawdowns of US$40 million each (R330 million and R348 million) were made from the US$300 million syndicated revolving credit facility
      during the September and December 2012 quarters, respectively. This takes the drawn level to US$210 million. The facility is repayable by
      September 2015.

      The weakening of the Rand against the US dollar resulted in a foreign exchange translation loss of R161 million being recorded against the
      borrowings balance in the June 2013 quarter, in addition to the R150 million recorded in the March 2013 quarter. The effect of foreign
      exchange changes for the 12 months totals a translation loss of R351 million (2012: R45 million).

13.   Commitments and contingencies                                                      
                                                          At            At          At   
                                                     30 June      31 March     30 June   
                                                        2013          2013        2012   
Figures in million                                             (Unaudited)   (Audited)   
Capital expenditure commitments:                                                         
Contracts for capital expenditure                        416           594         519   
Authorised by the directors but not contracted for     1 545           958       2 257   
                                                       1 961         1 552       2 776   


      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, with the exception of the items
      discussed below.

      Following the disclosure made in Harmony's annual report for the financial year ended 30 June 2012 relating to silicosis, Harmony and its
      subsidiaries, alongside other mining companies operating in South Africa (other respondents) were served with another application to certify a
      class during January 2013. Harmony, its subsidiaries and other respondents are awaiting a consolidated and supplemented certification
      application of the two separate applications served.

14.   Subsequent events
      There are no subsequent events to report.

15.   Segment report
      The segment report follows below.

16.   Reconciliation of segment information to consolidated income statements and balance sheet

                                                                                                                  Year ended   
                                                                                                              30 June    30 June   
                                                                                                                 2013       2012   
Figures in million                                                                                                       Audited   
The "Reconciliation of segment information to consolidated financial 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, balance sheet and segment report:                                                                            
Reconciliation of production profit to gross (loss)/profit                                                                         
Total segment revenue                                                                                          16 776     16 574   
Total segment production costs                                                                               (11 933)   (10 678)   
Production profit per segment report                                                                            4 843      5 896   
Discontinued operations                                                                                         (341)      (638)   
Production profit from continuing operations                                                                    4 502      5 258   
Cost of sales items, other than production costs and royalty expense                                          (5 068)    (2 226)   
Gross (loss)/profit as per income statements*                                                                   (566)      3 032   


                                                                                                                Year ended   
                                                                                                              30 June   30 June   
Figures in million                                                                                               2013      2012   
Reconciliation of total segment mining assets to consolidated property, plant and equipment                        
Property, plant and equipment not allocated to a segment                                                           
Mining assets                                                                                                     836     1 226   
Undeveloped property                                                                                            5 139     5 139   
Other non-mining assets                                                                                           286       110   
Wafi-Golpu assets                                                                                               1 148       553   
Less: Non-current assets previously classified as held-for-sale                                                        (1 124)   
                                                                                                                7 409     5 904   


      * The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

17.   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 year, Harmony shares were
      purchased by certain directors as set out below:
      Graham Briggs                                                                                      14 347 shares
      Frank Abbott                                                                                       73 900 shares
      Ken Dicks                                                                                          20 000 shares

18.   Audit review
      The condensed consolidated financial statements for the year ended 30 June 2013 have been reviewed in accordance with
      the International Standards on Review Engagements 2410  "Review of interim financial information performed by the independent Auditors
      of the entity" by PricewaterhouseCoopers Inc. Their unqualified review opinion is available for inspection at the company's registered office.

Segment report (Rand/Metric)
for the year ended 30 June 2013

                                                                                                                 Production                                                     Capital                       Kilograms
                                                     Revenue                    Production cost                 profit/(loss)                Mining assets(1)                expenditure#                     produced*                   Tonnes milled*
                                                     30 June                        30 June                        30 June                       30 June                        30 June                       30 June                        30 June
                                               2013           2012            2013           2012            2013           2012            2013           2012           2013           2012           2013            2012           2013           2012
                                                   R million                       R million                      R million                      R million                      R million                       kg                            t'000

Continuing operations
South Africa
Underground
Kusasalethu                                   1 213          2 320           1 484          1 439           (271)            881          3 435           3 260            420            415          2 740           5 633            711          1 197
Doornkop                                      1 615          1 284           1 042            862             573            422          3 378           3 235            285            294          3 631           3 075          1 008            928
Phakisa                                       1 103          1 064             982            803             121            261          4 547           4 448            337            302          2 434           2 541            512            521
Tshepong                                      1 887          2 219           1 427          1 275             460            944          3 877           3 693            310            288          4 154           5 287          1 040          1 233
Masimong                                      1 640          1 349             975            843             665            506            989             980            171            208          3 616           3 220            868            933
Target 1                                      1 794          1 525             937            855             857            670          2 704           2 644            331            259          3 967           3 630            717            788
Bambanani                                       932            549             591            597             341           (48)            882             944            119            266          2 083           1 374            211            197
Joel                                          1 452          1 124             654            565             798            559            290             216            160             84          3 228           2 663            611            557
Unisel                                          825            672             567            494             258            178            656             364             78             71          1 813           1 593            446            394
Target 3                                        737            472             508            428             229             44            457             345            145             90          1 626           1 123            323            316
Surface
All other surface operations                  1 515          1 428           1 029            899             486            529            264             233            250            162          3 438           3 372         10 082          9 324
Total South Africa                           14 713         14 006          10 196          9 060           4 517          4 946         21 479          20 362          2 606          2 439         32 730         33 511          16 529         16 388
International
Hidden Valley                                 1 189          1 163           1 204            851            (15)            312          3 932           5 595            506            296          2 644           2 762          1 844          1 766
Total international                           1 189          1 163           1 204            851            (15)            312          3 932           5 595            506            296          2 644           2 762          1 844          1 766
Total continuing
operations                                   15 902         15 169          11 400          9 911           4 502          5 258         25 411          25 957          3 112          2 735         35 374         36 273          18 373         18 154
Discontinued operations
Evander                                         874          1 405             533            767             341            638                           992            140            177          1 955           3 369            390            638
Total discontinued
operations                                      874          1 405             533            767             341            638                           992            140            177          1 955           3 369            390            638

Total operations                             16 776         16 574          11 933         10 678           4 843          5 896         25 411          26 949          3 252          2 912         37 329          39 642         18 763         18 792
Reconciliation of the
segment information to the
consolidated income
statement and balance sheet
(refer to note 16)                            (874)        (1 405)           (533)          (767)                                         7 409           5 904
                                             15 902         15 169          11 400          9 911                                        32 820          32 853

(1) Mining assets disclosures included in the segment report and the amounts included in the reconciliation of segment information (refer to note 16) were previously not disclosed and have been reviewed for the year ended 30 June 2013 and 30 June 2012.
# Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R537 million (2012: R314 million).
* Production statistics are unaudited.
The segment report for the year ended 30 June 2012 has been audited.

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*^, K T Nondumo*^, V P Pillay *^, J Wetton*^, A J Wilkens*
* Non-executive
^ Independent
(1)Mozambican

Investor relations team
Henrika Basterfield
Investor Relations Manager
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
Email: 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
Email: marian@harmony.co.za

Company Secretary
Riana Bisschoff
Telephone: +27 11 411 6020
Mobile: +27 83 629 4706
Email: 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

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
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
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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