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HARMONY GOLD MINING COMPANY LIMITED - Results for the first quarter ended 30 September 2013

Release Date: 08/11/2013 07:05:00      Code(s): HAR       PDF(s):  
Results for the first quarter ended
30 September 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

Q1 FY14
Results for the first quarter ended
30 September 2013

KEY FEATURES
Quarter on quarter

- Significant increase in gold production for a second consecutive quarter
 - 12% increase in gold production
 - 6% increase in tonnes milled
 - 4% increase in total underground recovered grade
 - Kusasalethu close to normal production levels

- Reduced unit costs quarter on quarter
 - cash operating costs decreased by 7% to R324 272/kg (US$1 013/oz)
 - reduced all-in sustaining costs by 14% from R471 146/kg to R404 694/kg
   (19% reduction from US$1 551/oz to US$1 264/oz)

- Operating profit¹ increased by 55% from R671 million to more
  than R1 billion (46% increase from US$71 million to
  US$104 million)

All 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

RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2013

                                                        Quarter   Quarter*      Q-on-Q
                                                      September       June    variance
                                                           2013       2013           %
Gold produced                          kg                9 635      8 588          12
                                       oz              309 773    276 109          12
Cash operating costs                   R/kg            324 272    347 456           7
                                       US$/oz            1 013      1 144          11
Gold sold                              kg                9 353      8 146          15
                                       oz              300 703    261 901          15
Underground grade                      g/t                4.55       4.37           4
All-in sustaining costs                R/kg            404 694    471 146          14
                                       US$/oz            1 264      1 551          19
Gold price received                    R/kg            429 566    427 534           
                                       US$/oz            1 342      1 407         (5)
Operating profit(1)*                   R million         1 037        671          55
                                       US$ million         104         71          46
Basic earnings/(loss) per share*       SAc/s                 3      (808)        >100
                                       USc/s                        (86)        >100
Headline profit/(loss)*                Rm                   20      (802)        >100
                                       US$m                  2       (85)        >100
Headline earnings/(loss) per share*    SAc/s                 5      (185)        >100
                                       USc/s               0.5       (20)        >100
Exchange rate                          R/US$              9.96       9.45           5

(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

* Comparative figures in these line items have been restated as a result of the adoption of IFRIC 20 Stripping Costs in the Production
  Phase of a Surface Mine

Shareholder information

Issued ordinary share capital at
30 September 2013                                 435 289 890
Issued ordinary share capital at
30 June 2013                                      435 289 890

Market capitalisation
At 30 September 2013 (ZARm)                            15 083
At 30 September 2013 (US$m)                             1 499
At 30 June 2013 (ZARm)                                 15 562
At 30 June 2013 (US$m)                                  1 568

Harmony ordinary share and ADR prices
12-month high (1 October 2012 
30 September 2013) for ordinary shares                 R75.64

12-month low (1 October 2012 
30 September 2013) for ordinary shares                 R32.74

12-month high (1 October 2012 
30 September 2013) for ADRs                           US$8.96

12-month low (1 October 2012 
30 September 2013) for ADRs                           US$3.30

Free float                                               100%

ADR ratio                                                 1:1

JSE Limited                                               HAR

Range for quarter
(1 July - 30 September 2013 closing prices)   R32.74  R42.47

Average daily volume for the quarter
(1 July - 30 September 2013)                 1 680 746 shares

Range for quarter
(1 April - 30 June 2013 closing prices)       R33.47  R59.11

Average daily volume for the quarter
(1 April - 30 June 2013)                     2 099 857 shares

New York Stock Exchange including
other US trading platforms                                HMY

Range for quarter                                   US$3.30 
(1 July  30 September 2013 closing prices)           US$4.33

Average daily volume for the quarter
(1 July - 30 September 2013)                        3 824 973

Range for quarter                                   US$3.30 
(1 April  30 June 2013 closing prices)               US$6.38

Average daily volume for the quarter
(1 April - 30 June 2013)                            3 302 649

Investors' calendar                                 2013/2014

Annual General Meeting                        5 December 2013

Q2 and 6 months ended FY14 results
presentation                                  3 February 2014
CONTACT DETAILS

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
Email: HarmonyIR@harmony.co.za

Henrika Basterfield
Investor Relations Manager
Tel: +27 (0)11 411 2314
Mobile: +27 (0)82 759 1775
Email: henrika@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za

Company Secretary
Riana Bisschoff
Telephone: +27 (0)11 411 6020
Mobile: +27 (0)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

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 South Africa (Pty) Ltd
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

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 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.

Harmony's Integrated Annual Report,
Notice of Annual General Meeting and its
Annual Report filed on a Form 20F with the United States'
Securities and Exchange Commission for the year ended
30 June 2013 were released on 25 October 2013.
www.harmony.co.za/investors

Chief executive officer's review

Despite short-term gold price volatility, long-term fundamentals remain
in place for continued growth in commodity demand. Since the financial
crash of 2008, investment demand has been among the gold market's
principal drivers. The R/kg gold price has been static in the past two
quarters and we are expecting this trend to continue in the short term.

As gold prices have weakened, gold mines world-wide remain under
pressure with their rising costs. Our only means of remaining profitable
is to reduce costs, improve our productivity and produce more gold. We
believe that Harmony is well placed to meet these challenges.

We have been an acquisitive company, known for reinvesting in our
assets to improve their performance. Our strategic advantages include:

- increasing gold grades
- lowest rand/tonne South African producer
- free cash flow
- unhedged
- strong balance sheet  low debt
- geared to SA currency  93% of our gold is mined in South Africa

1. SAFETY

The South African operations experienced a challenging safety quarter
with a regression in safety performance.

It is with deep regret that I report that four people were fatality injured
in four separate incidences. They were Tiodosio Munguambe (a team
leader) and Mr Carlitos Uetela (development team member)  both
from Doornkop; and Thembekile Mapeyi (development team member)
and Oscar Madosi (an engineering assistant) both from Kusasalethu.
My sincere condolences go to the families, friends and colleagues of
these men.

Safety risk management is one of the main pillars in the Harmony safety
strategy and is the main building block in the journey towards proactive
safety management and ultimately to zero harm. Management and
employees play an equally important role in the effective functioning
of the safety risk management system and specifically with regards
to issue-based risk management and continuous risk management.
During the past quarter management has paid a lot of attention to
poor performing operations. In addition, all baseline risk assessments
are currently part of a review process.

Due to the fatalities reported, the Fatality Injury Frequency Rate (FIFR)
per million hours worked regressed year on year from 0.11 to 0.19 and
quarter on quarter from 0.10 to 0.19.

During the quarter, the chief executive officer and various other
executives continued high level safety audits at the operations.

Significant safety achievements during the quarter were:

- Unisel recorded 12 months of being fatality free
- Tshepong achieved more than 3 000 000 rail bound equipment
  fatality free shifts
- Tshepong achieved 2 000 000 fall of ground fatality free shifts
- Doornkop achieved 6 500 000 fall of ground fatality free shifts

2. OPERATIONAL RESULTS
Gold production for the September 2013 quarter increased by 12% to
9 635kg from 8 588kg in the June 2013 quarter. This was as a result
of improved recovered grades at most of the underground operations

and Kusasalethu building up to normal production after the temporary
closure of the shaft earlier this year.

Operations that showed an improvement during the September 2013
quarter were Kusasalethu, Tshepong, Target 1, Phakisa, Hidden Valley
and Unisel.

The 12% increase in production resulted in a significant increase in
operating profit of 55% for the September 2013 quarter, increasing
from R671 million in the June 2013 quarter to R1 037 million in the
September 2013 quarter.

The rand gold price received remained steady with only a 0.4% increase
to R429 566/kg (R427 534/kg in the June 2013 quarter). Quarter on
quarter the US dollar gold price decreased by 5% from US$1 407/oz
in the June 2013 quarter to US$1 342/oz in the September quarter.
The rand/dollar exchange rate weakened by 5% from R9.45/US$ in the
previous quarter to R9.96/US$ in the September 2013 quarter.

Cash operating costs in the September 2013 quarter increased by
R140 million compared to the June 2013 quarter. This was mainly as
a result of a R38 million increase in wages (due to the annual wage
increase), as well as a R147 million increase in electricity costs (due
to winter tariffs). These increases in costs were partially offset by a
R57 million saving at Hidden Valley.

Due to the increase in gold produced for the September 2013 quarter
the rand per kilogram (cash cost) decreased by 7% from R347 456/kg
in the June 2013 quarter to R324 272/kg in the quarter under review.

Total capital expenditure for the September 2013 quarter decreased
by R183 million or 23% quarter on quarter to R622 million. Most
operations recorded a decrease in capital expenditure with a major
saving of R89 million at Hidden Valley.

3. FINANCIAL OVERVIEW

Revenue

Revenue improved from R3 483 million in the previous quarter to
R4 018 million, driven by a 15% increase in gold sales and stable gold
prices in rand terms at R429 566/kg.

Restructuring costs

Restructuring and employment termination costs of R94 million were
recorded in the current quarter which should result in more long-term
savings going forward.

Exploration costs

Due to the repositioning of the Wafi-Golpu project and other cost-
saving initiatives in respect of the project, total exploration expenditure
decreased from R219 million to R142 million for the quarter.

Gain on financial instruments

The gain on financial instruments is due to the increase in fair value
of the investments in the various group rehabilitation trust funds.
A portion of these funds is invested in Equity Linked Deposits, which
increased in value as the market rose. These gains can be attributed
to an increase in the JSE shareholder weighted top 40 index (SWIX 40)
during the quarter.

Property, plant and equipment

Mining assets have decreased during the quarter as the Papua New
Guinean currency (PGK) depreciated against all currencies towards the
end of the quarter. Against the rand, it weakened from R4.49/PGK to
R3.87/PGK resulting in lower rand equivalent balances reported on the
balance sheet.

Borrowings and cash

The long-term portion of borrowings increased during the quarter as a
further $60 million was drawn against the US dollar syndicated revolving
credit facility. During the same period cash and cash equivalents
increased by R199 million to R2 288 million resulting in a net debt of
R871 million.

4. ALL-IN SUSTAINING COSTS MEASURES (WORLD GOLD COUNCIL)

The World Gold Council (WGC) released a guidance note in June 2013
on the calculation of 'all-in sustaining costs' which was
developed by members of the council to create a better understanding
of the overall costs associated with producing gold.

The 'all-in sustaining costs' is an extension of the existing 'cash cost'
metrics and incorporates costs related to sustaining production. The
'all-in costs' includes additional costs, for example, exploration and new
project capital, which reflect the varying costs of producing gold over
the life-cycle of a mine.

Harmony has decided to adopt the all-in sustaining costs method and we will apply
it to our calculations as from the September 2013 quarter onwards. For
comparison purposes, we will be reporting on both our cash operating
cost (R/kg or US$/oz) and the all-in sustaining costs in the future.

Harmony recorded an all-in sustaining cost of R404 694/kg for
the September 2013 quarter, a 14% improvement compared to the
R471 146/kg recorded in the June 2013 quarter, due to higher gold
production.

5. EMPLOYEE RELATIONS

Two year wage agreement

A new two year wage agreement was signed on 10 September 2013.
In summary the agreement is as follows:

- Category 4 and 5 employees, and rock drill operators received an
  increase of 8% in basic wages as from 1 July 2013 and a CPI plus
  1% increase as from 1 July 2014;
- Category 6 to 8 employees, miners and artisans, and officials,
  received an increase of 7.5% in basic wages as from 1 July 2013 and
  a CPI plus 0.5% increase as from 1 July 2014;
- the current monthly living out allowance increased to R1 820 per
  month on 1 September 2013 and will increase to R2 000 per month
  on 1 September 2014.

AMCU Recognition Agreement

On 4 October 2013, the recognition agreement with the Association
of Mineworkers and Construction Union (AMCU), representing about
75% of the workforce at Kusasalethu, was signed at Kusasalethu. All
the other recognised unions at the mine will continue to operate.

6. JOEL AND BEATRIX OPERATIONS EXCHANGE MINING RIGHT
   AREAS

Background

Harmony's Joel mining right is contiguous to Sibanye Gold Limited's
(Sibanye) Beatrix mining right, which has resulted in a number of
discussions between the parties over the last couple of years on the
possibility of exchanging some mining right portions for the benefit
of both parties. These discussions have finally culminated in agreed
commercial terms during the quarter. As a result, an agreement was
finalised and signed by Harmony and Sibanye. The main condition
precedent is the approval by the Department of Mineral Resources of
the respective section 102 applications. These approvals are expected to
be obtained before the end of June 2014.

Commercial terms

Joel will exchange two portions of its mining right for two portions of
Beatrix's mining right, as well as acquiring two additional portions from
Beatrix.

The exchange portions are to be transferred between the parties for
the same value.

The purchase consideration of the further two portions to be acquired
by Joel will be in the form of a royalty of 3% on gold revenue generated
from these two portions.

Motivation for the exchange and acquisition

The areas that Joel will relinquish are difficult to access from Joel and
have been deemed uneconomical, while the portions that Joel will be
acquiring are accessible and will increase the current life of mine.

7. WAFI-GOLPU
Drilling during the quarter focused on brownfield drilling, Golpu resource
definition, potential shaft location and infrastructure geotechnical
drilling. The drill programme for derisking the lower mine blocks has
been designed, scheduled and has commenced. This programme will
address confidence levels in the lower mining block.

Golpu resource definition drilling of the upper and lower mining blocks
during the quarter has confirmed porphyry and associated grade
through the southern upper and lower mining blocks.

IN CONCLUSION

All the original, marginal Harmony assets have been closed. Harmony
has built new mines, enabling it to access new and higher grade mining
areas and reducing the time it takes crews to get to the face. Growing
our margins are all about reducing our costs, improving productivity
and increasing our gold production. Major capital expenditure has been
spent; we have a strong balance sheet with low debt and look forward
to the value that Golpu will add in future. We remain firm believers in
gold's ability to preserve value.

We are confident that these strategic foundations will support
sustainable growth for all stakeholders as we deliver on the full potential
of our asset base.

Graham Briggs
Chief executive officer

OPERATIONAL RESULTS (Rand/Metric) (US$/Imperial)
                                                                                                                                        South Africa
                                                                                                         Underground production                                                                  Surface production

                                  Three                                                                                                                            Total                                                   Total                  Total
                                 months      Kusasa-                                                          Bamba-                                              Under-                                       Total       South     Hidden  Continuing
                                  ended       lethu   Doornkop    Phakisa   Tshepong   Masimong   Target 1      nani      Joel    Unisel  Target 3   Steyn 2      ground    Phoenix      Dumps   Kalgold*    Surface      Africa    Valley*  Operations

Ore milled            - t'000    Sep-13         329        236        156        249        189        191        51       159       108        82      12         1 762      1 544        873        364      2 781       4 543        503       5 046
                                 Jun-13         212        242        133        211        210        179        55       151       114        73        12       1 592      1 471        879        367      2 717       4 309        457       4 766

Gold produced         - kg       Sep-13       1 272        765        755      1 049        758      1 081       623       697       476       392       146       8 014        225        297        324        846       8 860        775       9 635
                                 Jun-13         688        859        583        815        839        897       614       699       427       419       121       6 961        202        346        357        905       7 866        722       8 588

Gold produced         - oz       Sep-13      40 896     24 595     24 274     33 726     24 370     34 755    20 030    22 409    15 304    12 603     4 694     257 656      7 234      9 549     10 417     27 200     284 856     24 917     309 773
                                 Jun-13      22 120     27 617     18 744     26 203     26 974     28 839    19 741    22 473    13 728    13 471     3 890     223 800      6 494     11 124     11 478     29 096     252 896     23 213     276 109

Yield                 - g/tonne  Sep-13        3.87       3.24       4.84       4.21       4.01       5.66     12.22      4.38      4.41      4.78     12.17        4.55       0.15       0.34       0.89       0.30        1.95       1.54        1.91
                                 Jun-13        3.25       3.55       4.38       3.86       4.00       5.01     11.16      4.63      3.75      5.74     10.08        4.37       0.14       0.39       0.97       0.33        1.83       1.58        1.80
Cash operating                       
costs                  R/kg     Sep-13     378 360    372 256    359 825    337 704    339 471    240 274   220 342   258 561   320 525   373 446   233 966     319 395    272 796    344 552    325 694    318 246     319 286    381 274     324 272
                                 Jun-13     577 337    332 516    444 168    418 310    289 795    281 223   201 467   243 308   331 747   297 759   257 736     340 394    317 396    332 601    259 894    300 526     335 807    474 366     347 456
Cash operating                       
costs                  $/oz     Sep-13       1 182      1 163      1 124      1 055      1 060        750       688       808     1 001     1 166       731         998        852      1 076      1 017        994         997      1 191       1 013
                                 Jun-13       1 900      1 094      1 462      1 377        954        926       663       801     1 092       980       848       1 120      1 045      1 095        855        989       1 105      1 561       1 144
Cash operating                       
costs                  R/tonne  Sep-13       1 463      1 207      1 741      1 423      1 361      1 360     2 692     1 133     1 413     1 785     2 847       1 453         40        117        290         97         623        587         619
                                 Jun-13       1 874      1 180      1 947      1 616      1 158      1 409     2 249     1 126     1 243     1 709     2 599       1 488         44        131        253        100         613        749         626

Gold sold             - Kg       Sep-13       1 098        796        742      1 031        745        986       613       693       467       358       144       7 673        221        288        340        849       8 522        831       9 353
                                 Jun-13         427        793        568        793        816        934       597       700       415       436       118       6 597        205        358        301        864       7 461        685       8 146

Gold sold             - oz       Sep-13      35 301     25 592     23 856     33 147     23 952     31 701    19 708    22 280    15 014    11 510     4 630     246 691      7 105      9 259     10 931     27 295     273 986     26 717     300 703
                                 Jun-13      13 728     25 496     18 262     25 496     26 235     30 029    19 194    22 505    13 343    14 018     3 794     212 100      6 591     11 510      9 677     27 778     239 878     22 023     261 901

Revenue               (R'000)    Sep-13     471 091    342 177    318 272    442 614    319 160    423 239   263 048   297 079   200 535   153 520    61 532   3 292 267     95 253    124 269    146 634    366 156   3 658 423    359 304   4 017 727
                                 Jun-13     175 728    335 584    243 101    339 801    349 828    409 201   256 002   300 268   178 132   190 917    50 327   2 828 889     86 460    151 774    124 248    362 482   3 191 371    291 325   3 482 696
Cash operating                      
costs                 (R'000)    Sep-13     481 274    284 776    271 668    354 251    257 319    259 736   137 273   180 217   152 570   146 391    34 159   2 559 634     61 379    102 332    105 525    269 236   2 828 870    295 487   3 124 357
                                 Jun-13     397 208    285 631    258 950    340 923    243 138    252 257   123 701   170 072   141 656   124 761    31 186   2 369 483     64 114    115 080     92 782    271 976   2 641 459    342 492   2 983 951
Inventory                          
movement              (R'000)    Sep-13    (86 317)      3 625    (6 345)    (8 697)        476   (34 582)   (1 659)   (1 589)   (2 391)  (19 548)   (1 020)   (158 047)      (317)    (4 017)      2 559    (1 775)   (159 822)     16 283   (143 539)
                                 Jun-13    (99 945)   (29 205)    (6 908)    (3 191)    (8 033)      9 755  (11 144)   (2 898)   (3 786)     4 827     (727)   (151 255)    (1 659)      7 156   (17 223)   (11 726)   (162 981)    (8 871)   (171 852)

Operating costs       (R'000)    Sep-13     394 957    288 401    265 323    345 554    257 795    225 154   135 614   178 628   150 179   126 843    33 139   2 401 587     61 062     98 315    108 084    267 461   2 669 048    311 770   2 980 818
                                 Jun-13     297 263    256 426    252 042    337 732    235 105    262 012   112 557   167 174   137 870   129 588    30 459   2 218 228     62 455    122 236     75 559    260 250   2 478 478    333 621   2 812 099

Operating profit      (R'000)    Sep-13      76 134     53 776     52 949     97 060     61 365    198 085   127 434   118 451    50 356    26 677    28 393     890 680     34 191     25 954     38 550     98 695     989 375     47 534   1 036 909
                                 Jun-13   (121 535)     79 158    (8 941)      2 069    114 723    147 189   143 445   133 094    40 262    61 329    19 868     610 661     24 005     29 538     48 689    102 232     712 893   (42 296)     670 597

Operating profit      ($'000)    Sep-13       7 644      5 400      5 317      9 746      6 161     19 890    12 797    11 894     5 057     2 679     2 850      89 435      3 434      2 606      3 871      9 911      99 346      4 772     104 118
                                 Jun-13    (12 861)      8 376      (946)        219     12 139     15 574    15 178    14 084     4 261     6 489     2 102      64 615      2 541      3 126      5 152     10 819      75 434    (4 474)      70 960
Capital                               
expenditure           (R'000)    Sep-13     120 048     60 100     90 762     67 598     37 819     61 509    31 922    42 056    17 228    35 411       562     565 015          -        129      8 023      8 152     573 167     48 478     621 645
                                 Jun-13     147 930     63 733     95 553     83 853     46 164     69 279    26 381    43 495    20 999    41 158       921     639 466     12 746      1 865     12 369     26 980     666 446    137 986     804 432
Capital                                
expenditure           ($'000)    Sep-13      12 055      6 035      9 114      6 788      3 798      6 176     3 205     4 223     1 730     3 556        56      56 736          -         13        806        819      57 555      4 868      62 423
                                 Jun-13      15 653      6 744     10 111      8 873      4 885      7 331     2 791     4 602     2 222     4 355        97      67 664      1 349        197      1 309      2 855      70 519     14 601      85 120
Adjusted                              
operating costs        R/kg     Sep-13     375 072    375 492    364 217    341 375    362 285    232 532   226 822   263 371   329 937   359 871   235 119     321 965    276 299    341 372    321 027    316 285     321 399    376 717     326 314
                                 Jun-13     732 861    333 064    454 083    433 351    305 007    285 676   196 748   246 946   363 348   300 832   264 541     348 312    305 537    341 441    257 401    303 645     343 231    492 639     355 795
Adjusted                              
operating costs        $/oz     Sep-13       1 171      1 173      1 138      1 066      1 132        726       708       823     1 031     1 124       734       1 006        863      1 066      1 003        988       1 004      1 177       1 019
                                 Jun-13       2 412      1 096      1 494      1 426      1 004        940       648       813     1 196       990       871       1 146      1 006      1 124        847        999       1 130      1 621       1 171
All-in sustaining                    
costs                  R/kg     Sep-13     499 528    453 515    497 604    418 042    428 681    306 233   248 992   299 968   380 985   470 106   253 014     400 649    276 299    352 628    359 453    335 492     393 978    514 593     404 694
                                 Jun-13   1 102 726    416 276    622 482    551 053    383 178    369 164   229 074   299 834   431 788   404 417   293 966     452 606    309 922    361 909    316 771    333 849     438 528    826 415     471 146
All-in sustaining                    
costs                  $/oz     Sep-13       1 560      1 416      1 554      1 306      1 339        956       778       937     1 190     1 468       790       1 251        863      1 101      1 123      1 048       1 230      1 607       1 264
                                 Jun-13       3 629      1 370      2 049      1 814      1 261      1 215       754       987     1 421     1 331       967       1 490      1 020      1 191      1 043      1 099       1 443      2 720       1 551

Gold price                       Sep-13     429 045    429 871    428 938    429 306    428 403    429 248   429 116   428 685   429 411   428 827   427 306     429 072    431 009    431 490    431 276    431 279     429 292    432 375     429 566
received                         Jun-13     411 541    423 183    427 995     428 501   428 711    438 117   428 814   428 954   429 234   437 883   426 500     428 814    421 756    423 950    412 784    419 539     427 740    425 292     427 534
  
* Comparative figures for these operations have been restated as a result of the adoption of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.
  Refer to note 2 of the Financial Statements.

Commentary on operational results

Harmony's upward trend in its gold production continued for a second
consecutive quarter. Gold production was 12% higher quarter-on-
quarter at 9 635kg, largely due to an 11% increase in underground
tonnes milled and a 4% increase in underground recovered grade to
4.55g/t. The quarter included five days of protected industrial action
which affected all the South African operations, except for Kusasalethu.

During the September quarter there were increases in labour costs
(following the new two year wage agreement) and electricity costs
(winter tariffs). These cost increases were more than offset by the
increased production and savings in overall costs, resulting in our cash
cost per kilogram being 7% lower at R324 272/kg quarter-on-quarter
and a 14% reduction in all-in sustaining costs to R404 694/kg.

SOUTH AFRICAN OPERATIONS

Kusasalethu

The build-up at Kusasalethu continued during the quarter. Production
was however hampered by two fatalities that occurred during the
quarter in two separate incidents.

On 4 October 2013, the recognition agreement with the Association
of Mineworkers and Construction Union (AMCU), representing about
75% of the workforce at Kusasalethu, was signed and management
and the various unions are working together to ensure a sustainable
future for the mine.

The previous quarter's loss was turned into an operating profit of
R76 million in the September 2013 quarter  testimony of the efforts of
management and the unions to turn around the mine's performance.

During the December 2013 quarter, management will continue to focus
on building production at the mine.

Doornkop

Doornkop did not perform in line with its plan in the past quarter,
mainly due to a 9% decrease in recovered grade to 3.24g/t and the
impact of two fatalities at the mine, which resulted in a decline in gold
production of 11% to 765kg. Tonnes milled decreased by 3% quarter
on quarter to 236 000t. The decrease in grade is due to Doornkop not
achieving the planned mining mix.

Focus in the next quarter will be to improve the recovered grade and
the safety at the mine.

Phakisa

Phakisa continues to build up its production in line with its plan and
recorded a second quarter of increased production, turning its operating
loss recorded in the previous quarter into an operating profit.

An increase of 17% in tonnes milled (at 156 000t) and recovered grade
of 11% (at 4.84g/t) during the quarter, resulted in a 30% increase
in gold production at 755kg quarter on quarter. The improvements
in temperatures in some of the working places attributed to the
improvements in production.

During the December 2013 quarter, the remedial work at Freddies No. 3
ventilation shaft, which will improve the ventilation constraints at the
mine, will continue.

Tshepong

Tshepong bounced back during the quarter and generated free cash
flow after capital of R19 million as it increased tonnes milled by 18%
at 249 000t and recovered grade by 9% at 4.21g/t, resulting in a 29%
increase in gold production from 815kg in the previous quarter to
1 049kg in the September 2013 quarter.

The Tshepong team will continue their focus on improving stoping face
length and reef development.

Masimong

Masimong had a challenging quarter as volumes decreased by 10%
quarter on quarter to 189 000t while grade remained stable at 4.01g/t.
This mine's underperformance resulted in a 10% decrease in gold
production.

Our focus during the December 2013 quarter will be on managing
the face length and focusing on clean mining in order to improve
production.

Target 1

Target 1 generated free operational cash flow of R101 million, after
capital during the September 2013 quarter. Gold production increased
by 21% quarter on quarter to 1 081kg, due to increased volumes of
191 000t at a 13% improved recovered grade of 5.66g/t. The recovered
grade is currently higher than the 5.13g/t average grade guided for
financial year 2014 (FY14) and we expect this mine to continue its good
performance in the next quarter.

Bambanani

Gold production increased by 2% due to a 10% increase in recovered
grade at 12.22g/t. Bambanani is currently mining at a recovered grade
higher than the average guidance given of 9.74g/t.

Improving safety and increasing square metres will be the focus of
management at Bambanani during the December 2013 quarter.

Joel

Gold production remained stable quarter on quarter at 697kg, as
the 5% decrease in recovered grade was offset by a 5% increase
in tonnage. The recovered grade was lower due to mining a higher
channel width than planned and therefore not achieving the planned
face grade during the quarter.

During the next quarter, Joel will focus on monitoring and achieving the
planned belt grade.

Unisel

Recovered grade at Unisel increased by 18% quarter on quarter, due to
improved face grades, a decrease in stoping widths and a decrease in
waste mining.

Target 3

A 6% decrease in gold production for the quarter is mainly due to
lower recovered grade, as a result of a decrease in face grade during
the quarter.

Increasing the amount of Basal reef panels and improving the
environmental conditions in the sub-shaft of the mine will be the main
focus areas at Target 3 during the next quarter.

Steyn 2

Due to a decrease in stoping widths and cleaner mining practices,
Steyn 2 increased its recovered grade for the quarter by 21%, resulting
in a 21% increase in gold production. Tonnes milled remained steady
quarter-on-quarter.

Phoenix (tailings)

The 11% increase in gold production is mainly due to an increase in
the plant head grade, while a 5% increase in tonnes milled supported
the increase further.

Surface dumps

The decreases in gold production at the surface dumps are due to the
improved reef deliveries from the underground operations. Volumes
treated are dependent on available plant capacity after reef deliveries.
Plant capacity was well utilised to maximise the gold output.

Kalgold

Kalgold's gold production decreased by 9% quarter on quarter due
to challenges with the crushing system at the plant, such as the
maintenance of conveyor belts, splicing of belts and refurbishment of
conveyer belts chutes. Costs and capital were well controlled and are
below the average guided for FY14.

In the next quarters, management will focus on delivering the planned
plant infrastructure.

INTERNATIONAL OPERATIONS

Hidden Valley (held in Morobe Mining Joint Ventures  50% of
attributable production reflected)

Hidden Valley increased its gold production by 7% (775kg) quarter on
quarter, due to a 10% increase in mill throughput and a 3% increase in
gold recoveries, partly offset by a 3% reduction in gold grade.

The commissioning of the crusher is largely complete, configuration
changes will be implemented during the December 2013 quarter and
are expected to improve throughput and feed reliability to the mill.

An operating profit of R48 million was generated during the quarter.

During the December 2013 quarter, management aims to reduce costs
further and increase the amount of tonnes crushed and conveyed.

CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)
                                                                                Quarter ended                         Year ended
                                                             30 September             30 June       30 September         30 June
                                                                     2013                2013               2012            2013
                                                              (Unaudited)         (Unaudited)        (Unaudited)       (Audited)
Figures in million                                   Note                         (Restated)*        (Restated)*     (Restated)*

Continuing operations
Revenue                                                             4 018               3 483             4 278           15 902
Cost of sales                                          3          (3 735)             (6 171)           (3 511)         (16 448)

   Production costs                                               (2 981)             (2 812)           (2 878)         (11 321)
   Amortisation and depreciation                                    (577)               (531)             (494)          (2 001)
   Impairment of assets                                                              (2 733)                           (2 733)
   Other items                                                      (177)                (95)             (139)            (393)

Gross profit/(loss)                                                   283             (2 688)               767            (546)
Corporate, administration and other expenditure                     (108)               (127)             (106)            (465)
Social investment expenditure                                        (38)                (57)              (20)            (127)
Exploration expenditure                                             (142)               (219)             (136)            (673)
Profit on sale of property, plant and equipment                                                            55              139
Other income/(expenses)  net                                           1               (169)                 3            (350)

Operating (loss)/profit                                               (4)             (3 260)               563          (2 022)
Profit from associates                                                  3                                                    
Impairment of investments                                             (7)                                 (48)             (88)
Net gain/(loss) on financial instruments                               74                 (8)                74              173
Investment income                                                      45                  67                33              185
Finance cost                                                         (60)                (57)              (58)            (256)

Profit/(loss) before taxation                                          51             (3 258)               564          (2 008)
Taxation                                                             (38)               (239)             (152)            (655)

   Normal taxation                                                   (49)                  78             (111)            (271)
   Deferred taxation                                                   11               (317)              (41)            (384)

Net profit/(loss) from continuing operations                           13             (3 497)               412          (2 663)

Discontinued operations
Profit from discontinued operations                                                                        89              314

Net profit/(loss) for the period                                       13             (3 497)               501          (2 349)
Attributable to:
Owners of the parent                                                   13             (3 497)               501          (2 349)

Earnings/(loss) per ordinary share (cents)             5
Earnings/(loss) from continuing operations                              3               (808)                95            (616)
Earnings from discontinued operations                                                                      21               73

Total earnings/(loss)                                                   3               (808)               116            (543)

Diluted earnings/(loss) per ordinary share (cents)     5
Earnings/(loss) from continuing operations                              3               (808)                95            (616)
Earnings from discontinued operations                                                                      21               73

Total diluted earnings/(loss)                                           3               (808)               116            (543)

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.

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
                                                              2013               2013               2012             2013
                                                       (Unaudited)        (Unaudited)        (Unaudited)        (Audited)
Figures in million                                                        (Restated)*        (Restated)*      (Restated)*

Net profit/(loss) for the period                                13            (3 497)                501          (2 349)
Other comprehensive (loss)/income for the period,
net of income tax                                            (695)                 25                 25              737

   Foreign exchange translation                              (694)                 26                 25              742
   Movements on investments                                    (1)                (1)                                (5)

Total comprehensive (loss)/income for the period             (682)            (3 472)                526          (1 612)

Attributable to:
Owners of the parent                                         (682)            (3 472)                526          (1 612)

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.

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

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand) (Unaudited)
for the three months ended 30 September 2013

                                                  Share      Other   Retained            
Figures in million                              capital   reserves   earnings    Total   
Balance  30 June 2013 as previously reported    28 325      3 464        522   32 311   
Restatement for IFRIC 20                                     (22)       (74)     (96)   
Restated balance  30 June 2013                  28 325      3 442        448   32 215   
Share-based payments                                           43                 43   
Net profit for the period                                                13       13   
Other comprehensive loss for the period                     (695)              (695)   
Balance  30 September 2013                      28 325      2 790        461   31 576   
Balance  30 June 2012 as previously reported    28 331      2 444      3 307   34 082   
Restatement for IFRIC 20                                     (15)       (94)    (109)   
Restated balance  30 June 2012                  28 331      2 429      3 213   33 973   
Share-based payments                                           45                 45   
Net profit for the period                                               501      501   
Other comprehensive income for the period                      25                 25   
Dividends paid                                                        (218)    (218)   
Balance  30 September 2012                      28 331      2 499      3 496   34 326   

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

The unaudited condensed consolidated financial statements for the three months ended 30 September 2013 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
                                                                         2013         2013               2012
                                                                  (Unaudited)    (Audited)        (Unaudited)
Figures in million                                                             (Restated)*        (Restated)*

ASSETS
Non-current assets
Property, plant and equipment                                          32 195       32 732             33 220
Intangible assets                                                       2 191        2 191              2 194
Restricted cash                                                            38           37                 36
Restricted investments                                                  2 143        2 054              1 919
Deferred tax assets                                                        93          104                523
Investments in associates                                                 112          109                  
Investments in financial assets                                            42           49                 98
Inventories                                                                57           57                 58
Trade and other receivables                                                                              20

Total non-current assets                                               36 871       37 333             38 068

Current assets
Inventories                                                             1 482        1 417              1 168
Trade and other receivables                                             1 238        1 162              1 165
Income and mining taxes                                                   103          132                  8
Cash and cash equivalents                                               2 288        2 089              2 266
                                                                        5 111        4 800              4 607
Assets of disposal groups classified as held for sale                                                 1 658

Total current assets                                                    5 111        4 800              6 265

Total assets                                                           41 982       42 133             44 333

EQUITY AND LIABILITIES
Share capital and reserves
Share capital                                                          28 325       28 325             28 331
Other reserves                                                          2 790        3 442              2 499
Retained earnings                                                         461          448              3 496

Total equity                                                           31 576       32 215             34 326

Non-current liabilities
Deferred tax liabilities                                                2 998        3 021              3 166
Provision for environmental rehabilitation                              1 990        1 997              1 895
Retirement benefit obligation                                             198          194                181
Other provisions                                                           63           55                 87
Borrowings                                                   6          2 868        2 252              1 840

Total non-current liabilities                                           8 117        7 519              7 169

Current liabilities
Borrowings                                                   6            291          286                306
Income and mining taxes                                                    24            4                110
Trade and other payables                                                1 974        2 109              1 982
                                                                        2 289        2 399              2 398
Liabilities of disposal groups classified as held for sale                                              440

Total current liabilities                                               2 289        2 399              2 838

Total equity and liabilities                                           41 982       42 133             44 333

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.

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   
                                                            2013            2013           2012         2013   
Figures in million                                   (Unaudited)     (Unaudited)    (Unaudited)    (Audited)   
Cash flow from operating activities                                                                            
Cash generated by operations                                 238             221          1 337        3 154   
Interest and dividends received                               26              48             26          138   
Interest paid                                               (29)            (40)           (29)        (125)   
Income and mining taxes (paid)/refunded                                   (129)            108        (312)   
Cash generated by operating activities                       235             100          1 442        2 855   
Cash flow from investing activities                                                                            
Cash transferred to disposal group                                                      (162)               
Proceeds on disposal of investment in subsidiary                                                    1 264   
Purchase of investments                                                    (14)                       (86)   
Other investing activities                                   (9)             (1)                        (4)   
Net additions to property, plant and equipment(1)          (618)           (938)          (893)      (3 652)   
Cash utilised by investing activities                      (627)           (953)        (1 055)      (2 478)   
Cash flow from financing activities                                                                            
Borrowings raised                                            612                           330          678   
Borrowings repaid                                            (3)           (156)            (9)        (333)   
Ordinary shares issued  net of expenses                                      1                          1   
Option premium on BEE transaction                                             2                          2   
Dividends paid                                                                          (218)        (435)   
Cash generated/(utilised) by financing activities            609           (153)            103         (87)   
Foreign currency translation adjustments                    (18)             (4)              3           26   
Net increase/(decrease) in cash and cash equivalents         199         (1 010)            493          316   
Cash and cash equivalents  beginning of period            2 089           3 099          1 773        1 773   
Cash and cash equivalents  end of period                  2 288           2 089          2 266        2 089   

(1)  Includes capital expenditure for Wafi-Golpu and other International projects of R0 million in the September 2013 quarter 
     (June 2013: R133 million)(September 2012: R131 million) and R537 million in the 12 months ended 30 June 2013.

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 2013 (Rand)

1.    Accounting policies

      Basis of accounting

      The condensed consolidated financial statements for the three months ended 30 September 2013 have been prepared in accordance with
      IAS 34, Interim Financial Reporting, JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting Practices
      Committee 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 2013, 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.    Change in accounting standard

      IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

      IFRIC 20  Stripping Costs in the Production Phase of a Surface Mine (IFRIC 20), which became effective on 1 January 2013, clarifies the
      requirements for accounting for the costs of stripping activity in the production phase of surface mining when two benefits accrue: (i) usable
      ore that can be used to produce inventory, and (ii) improved access to further quantities of material that will be mined in future periods.
      Harmony has applied IFRIC 20 on a retrospective basis in compliance with the transitional requirements of IFRIC 20 for the earliest prior period
      presented, which for the year ended 30 June 2013 is 30 June 2012.

      Harmony previously accounted for stripping costs incurred during the production phase to remove waste material by deferring these costs,
      which were then charged to production costs on the basis of the average life-of-mine stripping ratio.

      A stripping activity asset shall be recognised if all of the following are met:

      (i) it is probable that the future economic benefit (improved access to the orebody) associated with the stripping activity will flow to the entity;

      (ii) the entity can identify the component of the ore body for which access has been improved; and

      (iii)the cost relating to the stripping activity associated with that component can be measured reliably.

      The stripping asset shall be depreciated over the expected useful life of the identified component of the ore body based on the units of
      production method.

      If there is no identifiable component of the orebody to which the predecessor asset relates, the asset is written off to retained earnings at the
      beginning of the earliest period presented.

      The comparative periods presented have been restated. The restatement had no effect on the condensed consolidated cash flow statements.

      The results for the year ended 30 June 2013 and the financial position at that date have been audited, but the restatement of the results and
      balances affected by IFRIC 20 have not been audited.

      Reconciliation of the effect of the change in accounting standard:

Condensed consolidated income statements
                                                              Quarter ended                 Year ended
                                                             30 June      30 September         30 June
                                                                2013              2012            2013
Figures in million                                       (Unaudited)       (Unaudited)     (Unaudited)
Cost of sales
Production costs
As previously reported                                       (2 844)           (2 870)        (11 400)
IFRIC 20 adjustment                                               32               (8)              79
Restated                                                     (2 812)           (2 878)        (11 321)

Amortisation and depreciation
As previously reported                                         (501)             (481)         (1 942)
IFRIC 20 adjustment                                             (30)              (13)            (59)

Restated                                                       (531)             (494)         (2 001)

Increase/decrease in net profit or loss for the period*            2              (21)              20

* There is no taxation effect on these items.

Condensed consolidated statements of comprehensive income
                                                                             Quarter ended                 Year ended
                                                                           30 June       30 September         30 June
                                                                              2013               2012            2013
Figures in million                                                     (Unaudited)        (Unaudited)     (Unaudited)
Increase/decrease in net profit or loss for the period*                          2               (21)              20
Other comprehensive income or loss for the period, net of income tax
Foreign exchange translation
As previously reported                                                          26                 26             749
IFRIC 20 adjustment                                                                              (1)             (7)

Restated                                                                        26                 25             742

Increase/decrease in total comprehensive income or loss for the period           2               (22)              13

* There is no taxation effect on these items.

Condensed consolidated balance sheets
                                                                                                    At               At
                                                                                               30 June     30 September
                                                                                                  2013             2012
Figures in million                                                                         (Unaudited)      (Unaudited)
Non-current assets
Property, plant and equipment
As previously reported                                                                          32 820           33 334
IFRIC 20 adjustment                                                                               (88)            (114)
Restated                                                                                        32 732           33 220
Current assets
Inventories
As previously reported                                                                           1 425            1 185
IFRIC 20 adjustment                                                                                (8)             (17)
Restated                                                                                         1 417            1 168
Share capital and reserves
Other reserves
As previously reported                                                                           3 464            2 515
IFRIC 20 adjustment(1)                                                                            (22)             (16)
Restated                                                                                         3 442            2 499
Retained earnings
As previously report                                                                               522            3 611
IFRIC 20 adjustment                                                                               (74)            (115)
Restated                                                                                           448            3 496

Decrease in total equity                                                                          (96)            (131)

(1) Translation effect of the IFRIC 20 adjustments on foreign operations (Hidden Valley).

Earnings/(loss) and headline earnings/(loss) per share
                                                                    Quarter ended             Year ended
                                                               30 June      30 September         30 June
                                                                  2013              2012            2013
                                                           (Unaudited)       (Unaudited)     (Unaudited)

Total basic and diluted (loss)/earnings per share (cents)
As previously reported                                           (809)               121           (548)
IFRIC 20 adjustment                                                  1               (5)               5

Restated                                                         (808)               116           (543)
Total headline (loss)/earnings
Figures in million
As previously reported                                           (804)               529             204
IFRIC 20 adjustment                                                  2              (21)              20

Restated                                                         (802)               508             224

                                                                                             Quarter ended              Year ended
                                                                                         30 June     30 September          30 June
                                                                                            2013             2012             2013
                                                                                     (Unaudited)      (Unaudited)      (Unaudited)
      Total headline and diluted headline (loss)/earnings per share (cents)
      As previously reported                                                               (186)              123               47
      IFRIC 20 adjustment                                                                      1              (5)                5

      Restated                                                                             (185)              118               52

3.    Cost of sales
                                                                                  Quarter ended                         Year ended
                                                                30 September            30 June       30 September         30 June
                                                                        2013               2013               2012            2013
                                                                 (Unaudited)        (Unaudited)        (Unaudited)       (Audited)
      Figures in million                                                            (Restated)*        (Restated)*     (Restated)*
      Production costs  excluding royalty                             2 943              2 767              2 822          11 104
      Royalty expense                                                     38                 45                 56             217
      Amortisation and depreciation                                      577                531                494           2 001
      Impairment of assets(1)                                                            2 733                             2 733
      Rehabilitation expenditure/(credit)(2)                              15               (40)                  7            (24)
      Care and maintenance cost of restructured shafts                    17                 16                 20              68
      Employment termination and restructuring costs(3)                   94                 39                  7              46
      Share-based payments(4)                                             51                 45                105             266
      Other                                                                                 35                                37

      Total cost of sales                                              3 735              6 171              3 511          16 448

      * The comparative financials have been restated following the adoption of IFRIC 20. Refer to note 2 for details.
      
      (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.
      (2) The credit in the June 2013 quarter relates to a change in estimate following the annual re-assessment.
      (3) Included in the September and June 2013 quarters are amounts relating to the restructuring at Hidden Valley and Wafi-Golpu and the introduction of voluntary retrenchment
          packages offered in South Africa.
      (4) This includes the cost relating to the Employee Share Ownership Plan (ESOP) awards that were granted in August 2012.

4.    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.

5.   Earnings/(loss) and net asset value per share
                                                                               Quarter ended                         Year ended
                                                             30 September            30 June      30 September          30 June
                                                                     2013               2013              2012             2013
                                                              (Unaudited)        (Unaudited)       (Unaudited)        (Audited)
                                                                                 (Restated)*       (Restated)*      (Restated)*
      Weighted average number of shares (million)                   432.6              432.6             431.5            431.9
      Weighted average number of diluted shares (million)           433.0              433.1             432.3            432.7
      Total earnings/(loss) per share (cents):
      Basic earnings/(loss)                                             3              (808)               116            (543)
      Diluted earnings/(loss)                                           3              (808)               116            (543)
      Headline earnings/(loss)                                          5              (185)               118               52
       from continuing operations                                      5              (185)                97                3
       from discontinued operations                                                                      21               49
      Diluted headline earnings/(loss)                                  5              (185)               118               52
       from continuing operations                                      5              (185)                97                3
       from discontinued operations                                                                      21               49

                                                                   Quarter ended                          Year ended
                                                   30 September            30 June      30 September         30 June
                                                           2013               2013              2012            2013
                                                    (Unaudited)        (Unaudited)       (Unaudited)       (Audited)
                                                                       (Restated)*       (Restated)*     (Restated)*
Figures in million
Reconciliation of headline earnings/(loss):
Continuing operations
Net profit/(loss)                                            13            (3 497)               412         (2 663)
Adjusted for:
Impairment of investments(1)                                  7                                  48              88
Impairment of assets                                                        2 733                            2 733
Taxation effect on impairment of assets                                      (38)                             (38)
Profit on sale of property, plant and equipment                                               (55)           (139)
Taxation effect of profit on sale of property,
plant and equipment                                                                             14              31

Headline earnings/(loss)                                     20              (802)               419              12

Discontinued operations
Net profit                                                                                      89             314
Adjusted for:
Profit on sale of investment in subsidiary(1)                                                               (102)

Headline earnings                                                                               89             212

Total headline earnings/(loss)                               20              (802)               508             224

(1) There is no taxation effect on these items.

Net asset value per share
                                             At              At                 At
                                   30 September          30 June      30 September
                                           2013             2013              2012
                                    (Unaudited)        (Audited)       (Unaudited)
                                                     (Restated)*       (Restated)*
Number of shares in issue           435 289 890      435 289 890       435 064 236
Net asset value per share (cents)         7 254            7 405             7 904

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.

6.  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 September 2013 is R458 million.

    Two draw downs of US$30 million each were made from the US$300 million syndicated revolving credit facility during the September 2013
    quarter. This takes the drawn level to US$270 million. The facility is repayable by September 2015.

7.    Commitments and contingencies
                                                                     At          At               At
                                                           30 September     30 June     30 September
                                                                   2013        2013             2012
      Figures in million                                    (Unaudited)   (Audited)      (Unaudited)

      Capital expenditure commitments:
      Contracts for capital expenditure                             351         416              510
      Authorised by the directors but not contracted for          1 835       1 545            2 263

                                                                  2 186       1 961            2 773

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 2013, available on the
group's website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2013.

8.    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 2013 quarter,
      Frank Abbott purchased 65 600 shares.

9.    Subsequent events
      There were no subsequent events to report.

10.   Segment report
      The segment report follows on page 19.

11.   Reconciliation of segment information to consolidated income statements and balance sheets

                                                                                                     30 September     30 September
                                                                                                             2013             2012
                                                                                                      (Unaudited)      (Unaudited)
Figures in million                                                                                                     (Restated)*

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 profit
Total segment revenue                                                                                       4 018            4 619
Total segment production costs                                                                            (2 981)          (3 078)
Production profit per segment report                                                                        1 037            1 541
Discontinued operations                                                                                                     (141)
Production profit from continuing operations                                                                1 037            1 400
Cost of sales items, other than production costs and royalty expense                                        (754)            (633)

Gross profit as per income statements(1)                                                                      283              767

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

                                                                          30 September      30 September
                                                                                  2013              2012
                                                                           (Unaudited)       (Unaudited)
Figures in million                                                                           (Restated)*

Reconciliation of total segment mining assets to consolidated property,
plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets                                                                    1 155               720
Undeveloped property                                                             5 139             5 139
Other non-mining assets                                                             74               159
Wafi-Golpu assets                                                                  981               674
Less: Non-current assets previously classified as held-for-sale                                 (1 178)

                                                                                 7 349             5 514

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.

Segment report (Rand/Metric) (Unaudited)
for the three months ended 30 September 2013
                                                                           Production                               Capital           Kilograms
                                    Revenue         Production cost*         profit*         Mining assets*       expenditure          produced        Tonnes milled
                                  30 September        30 September        30 September        30 September        30 September       30 September       30 September
                                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                      471        684      395         434      76        250    3 457      3 326     120        116   1 272     1 601     329        328
Doornkop                         342        374      288         249      54        125    3 375      3 283      60         78     765       871     236        245
Phakisa                          318        298      265         251      53         47    4 534      4 390      91         78     755       679     156        142
Tshepong                         443        509      346         383      97        126    3 918      3 837      68         75   1 049     1 159     249        313
Masimong                         319        436      258         258      61        178    1 005        993      38         36     758       987     189        261
Target 1                         423        443      225         224     198        219    2 704      2 667      62         87   1 081     1 071     191        178
Bambanani                        325        194      169         148     156         46      886        959      33         32     769       438      63         43
Joel                             297        375      179         162     118        213      329        247      42         38     697       900     159        167
Unisel                           201        190      150         146      51         44      344        674      17         16     476       430     108        116
Target 3                         154        151      127         124      27         27      482        367      35         28     392       367      82         87
Surface
All other surface operations     366        337      267         254      99         83      465        197       8         93     846       821   2 781      2 390

Total South Africa             3 659      3 991    2 669       2 633     990      1 358   21 499     20 940     574        677   8 860     9 324   4 543      4 270
International
Hidden Valley                    359        287      312         245      47         42    3 347      5 588      48         87     775       689     503        491
Total international              359        287      312         245      47         42    3 347      5 588      48         87     775       689     503        491
Total continuing
operations                     4 018      4 278    2 981       2 878   1 037      1 400   24 846     26 528     622        764   9 635    10 013   5 046      4 761
Discontinued operations
Evander                                    341                 200               141              1 178                53              817               159
Total discontinued
operations                                 341                 200               141              1 178                53              817               159

Total operations               4 018      4 619    2 981       3 078   1 037      1 541   24 846     27 706     622        817   9 635    10 830   5 046      4 920
Reconciliation of the segment
information to the
consolidated financial
statements (refer to note 11)            (341)               (200)                       7 349      5 514

                               4 018      4 278    2 981       2 878                      32 195     33 220

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.
# Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R0 million (2013: R131 million).

DEVELOPMENT RESULTS (Metric)
Quarter ending September 2013
                                             Channel
                  Reef   Sampled     Width     Value      Gold
              (meters)  (meters)    (Cm's)     (g/t)   (Cmg/t)
Tshepong
Basal              391       360      8.92    176.34     1 573
B Reef             260       252     68.34     12.33       843
All Reefs          651       612     33.36     38.14     1 272
Phakisa
Basal              281       292     99.91     11.07     1 106
Leader               3         6     47.00      1.43        67
All Reefs          283       298     98.84     10.98     1 085
Bambanani
Basal               19        19     86.80     11.82     1 026
All Reefs           19        19     86.80     11.82     1 026
Doornkop
South Reef         361       358     45.63     15.56       710
All Reefs          361       358     45.63     15.56       710
Kusasalethu
Vcr Reef           483       407    101.12     13.40     1 355
All Reefs          483       407    101.12     13.40     1 355
Target 1
Elsburg            131        71    258.80      6.45     1 668
All Reefs          131        71    258.80      6.45     1 668
Target 3
Elsburg             17        13    131.32      6.46       849
Basal               49        19     13.05    123.06     1 606
A Reef              62        28    124.04     12.96     1 608
B Reef             222       119     85.24     24.70     2 105
All Reefs          350       178     86.76     21.75     1 887
Masimong 5
Basal              403       360     47.26     17.05       806
B Reef              99       124     85.59     11.84     1 013
All Reefs          503       483     57.08     15.05       859
Unisel
Basal            375.7       277    189.61      9.07     1 721
Leader           469.4       388    207.36      5.75     1 193
Middle            37.2        29    215.39      9.34     2 012
All Reefs          882       693    200.60      7.17     1 437
Joel
Beatrix            254       247    188.99      9.67     1 828
All Reefs          254       247    188.99      9.67     1 828
Total Harmony
Basal            1 519     1 326     78.25     16.43     1 286
Beatrix            254       247    188.99      9.67     1 828
Leader             472       394    204.92      5.74     1 175
B Reef             582       494     76.73     15.50     1 189
A Reef            61.8      27.5    124.04     12.96     1 608
Middle            37.2      28.5    215.39      9.34     2 012
Elsburg          148.0      83.5    239.72      6.45     1 545
Kimberley         79.1     80.25     14.00    102.74     1 438
South Reef         361    357.75     45.63     15.56       710
Vcr                483       407    101.12     13.40     1 355
All Reefs        3 997     3 445    103.66     12.20     1 265

DEVELOPMENT RESULTS (Imperial)
Quarter ending September 2013
                                             Channel
                  Reef  Sampled    Width       Value        Gold
                (feet)   (feet)   (inch)      (oz/t)   (In.oz/t)
Tshepong
Basal            1 284    1 181        4        4.52          18
B Reef             853      825       27        0.36          10
All Reefs        2 137    2 006       13        1.12          15
Phakisa
Basal              920      958       39        0.33          13
Leader               8       20       19        0.04           1
All Reefs          929      978       39        0.32          12
Bambanani
Basal               62       62       34        0.35          12
All Reefs           62       62       34        0.35          12
Doornkop
South Reef       1 183    1 174       18        0.45           8
All Reefs        1 183    1 174       18        0.45           8
Kusasalethu
Vcr Reef         1 586    1 335       40        0.39          16
All Reefs        1 586    1 335       40        0.39          16
Target 1
Elsburg            430      233      102        0.19          19
All Reefs          430      233      102        0.19          19
Target 3
Elsburg             55       41       52        0.19          10
Basal              160       62        5        3.69          18
A Reef             203       90       49        0.38          18
B Reef             729      390       34        0.71          24
All Reefs        1 147      584       34        0.64          22
Masimong 5
Basal            1 323    1 179       19        0.49           9
B Reef             326      406       34        0.34          12
All Reefs        1 649    1 585       22        0.45          10
Unisel
Basal            1 232      909       75        0.26          20
Leader           1 540    1 271       82        0.17          14
Middle             122       94       85        0.27          23
All Reefs        2 895    2 274       79        0.21          17
Joel
Beatrix            835      810       74        0.28          21
All Reefs          835      810       74        0.28          21
Total Harmony
Basal            4 983    4 352    31.00        0.48       14.76
Beatrix            835      810    74.00        0.28       20.99
Leader           1 548    1 291    81.00        0.17       13.50
B Reef           1 908    1 622    30.00        0.46       13.66
A Reef             203       90    49.00        0.38       18.46
Middle             122       94    85.00        0.27       23.10
Elsburg            485      274    94.00        0.19       17.75
Kimberley          260      263     6.00        2.75       16.52
South Reef       1 183    1 174    18.00        0.45        8.15
Vcr              1 586    1 335    40.00        0.39       15.56
All Reefs       13 113   11 304    41.00        0.35          15
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