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HARMONY GOLD MINING COMPANY LIMITED - Results for the third quarter FY14 and nine months ended 31 March 2014

Release Date: 06/05/2014 07:05:00      Code(s): HAR       PDF(s):  
Results for the third quarter FY14 and nine months ended 31 March 2014

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

Q3 FY14
Results for the third quarter FY14 and
nine months ended 31 March 2014

KEY FEATURES
Quarter on quarter

-  5% increase in underground recovered grade to 5.10g/t 
   - 3 consecutive quarters of grade increases, representing a cumulative increase of 17%

-  3% increase in gold production in the first 9 months of FY14

-  6% decrease in production profit during the March 2014 quarter, due to a 12% decrease in gold produced

-  Turned prior quarter’s loss into a profit 
   - net profit of R31 million (US$3 million); 
   - headline earnings per share of 12 SA cents (1 US cent)

-  Net debt 13% lower and cash balance of R2 billion

RESULTS FOR THE THIRD QUARTER FY14 ENDED 31 MARCH 2014

                                                                        9 months   9 months              
                                        Quarter    Quarter     Q-on-Q      ended      ended              
                                          March   December   variance      March      March          %   
                                           2014       2013          %       2014      2013*   Variance   
                        – kg              8 368      9 515       (12)     27 518     26 786          3   
Gold produced                                                                                            
                        – oz            269 035    305 913       (12)    884 721    861 188          3   
                        – R/kg          343 527    308 665       (11)    324 731    317 772        (2)   
Cash operating costs                                                                                     
                        – US$/oz            987        949        (4)        981      1 148         15   
                        – kg              8 502      9 798       (13)     27 653     26 824          3   
Gold sold               – oz            273 344    315 014       (13)    889 061    862 379          3   
Underground grade       – g/t              5.10       4.85          5       4.81       4.60          5   
All-in sustaining       – R/kg          426 221    397 503        (7)    408 768    417 813          2   
costs                   – US$/oz          1 224      1 222          –      1 234      1 509         18   
                        – R/kg          450 528    415 532          8    431 038    462 982        (7)   
Gold price received     – US$/oz          1 294      1 277          1      1 302      1 672       (22)   
Production profit*      – R million         924        986        (6)      2 946      3 910       (25)   
                        – US$ million        86         97       (13)        287        454       (37)   
Basic earnings/(loss)   – SAc/s               7       (21)       >100       (11)        266     >(100)   
per share*(1)           – USc/s               1        (2)       >100        (1)         30     >(100)   
Headline earnings/      – Rm                 52       (91)       >100       (19)      1 026     >(100)   
(loss)*(1)              – US$m                5        (9)       >100        (2)        119     >(100)   
Headline earnings/      – SAc/s              12       (21)       >100        (4)        238     >(100)   
(loss) per share*(1)    – USc/s               1        (2)       >100          –         28      (100)   
Exchange rate           – R/US$           10.83      10.12          7      10.30       8.61         20   

*   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
(1) The nine months ended March 2013 include discontinued operations

Shareholder information

Issued ordinary share capital                  
at 31 March 2014                               435 693 819

Issued ordinary share capital                  
at 31 December 2013                            435 693 819

Market capitalisation

At 31 March 2014 (ZARm)                             14 247
At 31 March 2014 (US$m)                              1 355
At 31 December 2013 (ZARm)                          11 284
At 31 December 2013 (US$m)                           1 077

Harmony ordinary share and ADR* prices

12-month high (1 April 2013 –                       
31 March 2014) for ordinary shares                  R58.58
12-month low (1 April 2013 –                        
31 March 2014) for ordinary shares                  R24.48
12-month high (1 April 2013 –                      
31 March 2014) for ADRs                            US$6.38
12-month low (1 April 2013 –                       
31 March 2014) for ADRs                            US$2.36

Free float                                            100%

ADR* ratio                                             1:1

JSE Limited                                            HAR

Range for quarter (1 January –                                          
31 March 2014 closing prices)              R27.25 - R40.32
Average daily volume for the quarter                                           
(1 January – 31 March 2014)               1 031 429 shares
Range for quarter (1 October –                                           
31 December 2013 closing prices)           R24.48 - R36.14
Average daily volume for the quarter                                           
(1 October – 31 December 2013)            1 180 825 shares

New York Stock Exchange including                                                      
other US trading platforms                             HMY

Range for quarter (1 January –                                         
31 March 2014 closing prices)            US$2.52 - US$3.77
Average daily volume for the quarter                                                 
(1 January – 31 March 2014)                      3 102 376
Range for quarter (1 October –                                         
31 December 2013 closing prices)         US$2.36 - US$3.67
Average daily volume for the quarter                                                 
(1 October – 31 December 2013)                   2 722 889

Investors' calendar

Q4 FY14 and year-end live presentation                                           
in Johannesburg                             14 August 2014
Release of Harmony's Integrated                                           
Annual Report of FY14                      23 October 2014
Q1 FY15 presentation                                          
(webcast and conference calls only)        5 November 2014
Annual General Meeting                    21 November 2014
Q2 FY15 live presentation in Cape Town     9 February 2015

*ADR: American Depository Receipts

CONTACT DETAILS
Corporate Office                                  South African Share Transfer Secretaries

Randfontein Office Park                           Link Market Services South Africa (Proprietary) Limited
PO Box 2, Randfontein, 1760, South Africa         (Registration number 2000/007239/07)
Corner Main Reef Road/Ward Avenue                 13th Floor, Rennie House
Randfontein, 1759, South Africa                   19 Ameshoff Street
Telephone: +27 (0)11 411 2000
                                                  Braamfontein, 2001
Website: www.harmony.co.za
                                                  PO Box 4844, Johannesburg, 2000, South Africa
Directors                                         Telephone: +27 (0)86 154 6572
P T Motsepe* Chairman                             Fax: +27 (0)86 674 4381
M Motloba*^ Deputy Chairman                       ADR Depositary
G P Briggs Chief Executive Officer
                                                  Deutsche Bank Trust Company Americas
F Abbott Financial Director
                                                  c/o American Stock Transfer and Trust Company
H E Mashego Executive Director
                                                  Peck Slip Station
F F T De Buck*^ Lead independent director
                                                  PO Box 2050, New York, NY 10272-2050
J A Chissano*(1)^, K V Dicks*^, Dr D S Lushaba*^,
                                                  Email queries: db@amstock.com
C Markus*^, M Msimang*^, K T Nondumo*^,
                                                  Toll free: +1-800-937-5449
V P Pillay *^, J Wetton*^, A J Wilkens*
                                                  Intl: +1-718-921-8137
* Non-executive                                   Fax: +1-718-921-8334
^ Independent
(1) Mozambican                                    Sponsor

Investor relations team                           J.P. Morgan Equities South Africa (Pty) Ltd
                                                  1 Fricker Road, corner Hurlingham Road
Email: HarmonyIR@harmony.co.za
                                                  Illovo
Henrika Ninham                                    Johannesburg, 2196
Investor Relations Manager
                                                  Private Bag X9936, Sandton, 2146, South Africa
Tel: +27 (0)11 411 2314
                                                  Telephone: +27 (0)11 507 0300
Mobile: +27 (0)82 759 1775
                                                  Fax: +27 (0)11 507 0503
Email: henrika@harmony.co.za
                                                  Trading Symbols
Marian van der Walt
Executive: Corporate and Investor Relations       JSE Limited: HAR
Tel: +27 (0)11 411 2037                           New York Stock Exchange, Inc: HMY
Mobile: +27 (0)82 888 1242                        Euronext, Brussels: HMY
                                                  Berlin Stock Exchange: HAM1
Email: marian@harmony.co.za
                                                  Registration number
Company Secretary
                                                  1950/038232/06
Riana Bisschoff
                                                  Incorporated in the Republic of South Africa
Telephone: +27 (0)11 411 6020
                                                  ISIN
Mobile: +27 (0)83 629 4706
E-mail: riana.bisschoff@harmony.co.za             ZAE000015228

Harmony's Integrated Annual Report,
the Sustainable Development Information which serves
as supplemental information to the Integrated Annual Report
and its annual report filed on a Form 20F with the
United States' Securities and Exchange Commission for
the financial year ended 30 June 2013 are available on our
website at www.harmony.co.za/investors

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.

Competent person's declaration
Harmony reports in terms of the South African Code for the Reporting
of Exploration results, Mineral Resources and Ore Reserves (SAMREC).
Harmony employs an ore reserve manager at each of its operations who
takes responsibility for reporting mineral resources and mineral reserves
at his operation.

The mineral resources and mineral reserves in this report are
based on information compiled by the following competent
persons:

Resources and Reserves South Africa: Jaco Boshoff, Pr. Sci. Nat.,
who has 18 years' relevant experience and is registered with the
South African Council for Natural Scientific Professions (SACNASP).

Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc,
who has 25 years relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM).

Mr Boshoff and Mr Job are full-time employees of Harmony Gold Mining
Company Limited. These competent persons consent to the inclusion
in the report of the matters based on the information in the form and
context in which it appears.

Mineral Resource and Reserve information as at 30 June 2013 have not
changed.

Message from the chief executive officer
1. SAFETY
Safe mining remains at the core of our values. The unprecedented and
tragic safety accidents of the quarter under review have led to various
actions and initiatives to reinforce our safety practices and behaviour –
one being an external review of Harmony's safety and health strategy,
which is scheduled to be completed during May 2014.

During the quarter we reported on the various safety accidents
extensively (see http://www.harmony.co.za/investors/news-and-events/
company-announcements-2/announcements-2014). More information
on how we approach safety at Harmony can be found in our safety
fact sheet at: http://www.harmony.co.za/investors/news-and-events/
fact-sheets.

2. OPERATIONAL RESULTS
Gold production for the March 2014 quarter decreased by 12% to
8 368kg, from 9 515kg in the December 2013 quarter. Production
stoppages at Doornkop due to the accident in February 2014, flooding
of the shaft bottom at Joel and a slower turnaround and technical issues
at Kusasalethu were the main contributors to lower production quarter
on quarter.

Production at Steyn 2 was suspended six months earlier than the
planned life of mine, due to increased seismicity in the working areas.

Harmony's underground recovered grade increased for a third
consecutive quarter. Quarter on quarter, underground recovered grade
was 5% higher at 5.10g/t (4.85g/t in the December 2013 quarter). The 
underground operations recorded a production profit of
R765 million.

The following operations showed an increase in production:

-   Tshepong (+62kg), mainly as a result of a 6% increase in tonnes
    milled;
-   Phakisa (+46kg), due to a 6% increase in the recovered grade to
    5.45g/t for the March 2014 quarter;
-   Hidden Valley (+44kg) increased recovered grade by 14% to 1.75g/t
    for the March 2014 quarter. The increase in grade was partially
    offset by an 8% decrease in tonnes milled quarter on quarter; and
-   Bambanani and Target 3 also increased production.

Gold production decreased at the following operations, when compared
to the December 2013 quarter:

-   Doornkop (–438kg) production was affected by the accident in
    February 2014. Rehabilitation work is currently taking place on
    192 level with the aim of re-establishing the working area for
    production;
-   Joel (–329kg) production was hampered by flooding of the shaft
    bottom, resulting in 61 000 tonnes less milled than in the previous
    quarter;
-   Kusasalethu (–211kg) experienced production losses due to safety
    stoppages and water availability during the quarter and milled
    25% less tonnes than in the December 2013 quarter. The decrease
    in tonnes was, however, partially offset by a 9% increase in the
    recovered grade to 4.11g/t;
-   Dumps (–71kg) milled 135 000 tonnes less than in the December
    2013 quarter and the recovered grade decreased to 0.25g/t,
    compared to 0.30g/t in the previous quarter;
-   Target 1 (–68kg) milled 12 000 tonnes less than in the December
    2013 quarter;
-   Kalgold (–60kg) was affected by a lower than expected grade
    and excessive rain delaying blasting in higher grade blocks; and
-   Masimong and Steyn 2 also had lower gold production.

Lower gold production resulted in a 6% decrease in the company's
production profit for the March 2014 quarter (from R986 million in the
December 2013 quarter to R924 million in the March 2014 quarter).

The rand gold price received increased by 8% to R450 528/kg in the
March 2014 quarter, compared to R415 532/kg in the December
2013 quarter. The rand weakened by 7% against the US dollar to
R10.83/US$, from R10.12/US$ in the December 2013 quarter. There
was a slight increase in the dollar gold price received quarter on quarter
(from US$1 277/oz in the previous quarter to US$1 294/oz in the March
2014 quarter).

Cash operating costs decreased by 2% (to R2.87 billion) in the March
2014 quarter. The decrease is mainly attributed to a decrease in
consumables for the South African operations. Capital expenditure for
the March 2014 quarter decreased by 10% to R579 million, compared
to R640 million in the December 2013 quarter.

Lower gold production resulted in a 7% increase in all-in sustaining unit costs 
to R426 221/kg.

3. FINANCIAL RESULTS
Gross profit

The 13% decrease in the gold sold was partially offset by the higher
average gold price received, resulting in revenue decreasing by only 6%,
while production costs were lower mainly due to inventory movements
and cost savings. As a result gross profit was at a similar level compared
to the previous quarter.

Net profit/(loss)

The net profit for the March 2014 quarter was R31 million, compared
to a net loss of R91 million in the December 2013 quarter, mainly
due to a smaller foreign exchange translation loss recorded on the
US$-denominated loan. The profit in the current quarter was achieved
after expensing R29 million on the impairment of Steyn 2 and R90 million
on employment retrenchment and restructuring costs. 

Impairment of assets

An impairment of R29 million was recorded on Steyn 2 following the
decision to cease mining at the operation.

Other expenses (net)

Included in other expenses (net) in the March 2014 quarter is a loss
of R29 million (December 2013 quarter R111 million) for the foreign
exchange movement on the US$-denominated syndicated loan,
resulting from the Rand weakening during the quarter.

Borrowings

A repayment of the drawn amount on the R1.3 billion Nedbank
Revolving Credit Facility of R467 million was made at the end of the
March 2014 quarter and is now fully repaid. The only outstanding
debt is the US$270 million drawn under the US$300 million syndicated
revolving credit facility.

Earnings/loss per share

The earnings per share of 7 SA cents in the March 2014 quarter
increased from the loss per share of 21 SA cents in the December 2013
quarter.

Employee Share Option Plan (ESOP) share vesting

The vesting of the second tranche of Scheme Shares and Share
Appreciation Rights awarded to qualifying employees took place
during March 2014. Payments to all eligible employees were made
in April 2014.

4. NEW CHIEF OPERATING OFFICER APPOINTED
Alwyn Pretorius was appointed as Harmony's new Chief Operating
Officer on 3 March 2014. Alwyn joined Harmony during its merger with
ARMgold in 2003. He has been an executive of Harmony since 2007
and holds degrees in both BSc Mining Engineering and BSc Industrial
Engineering. With 20 years of underground deep-level gold mining
experience in different supervisory and management positions,
supported by three regional managers and several general managers,
we are confident that Alwyn will lead the change in operational
improvement in South Africa.

5. GOOD PROGRESS AT WAFI-GOLPU
Study work during the quarter continued to evaluate underground
access options and a substantially lower capital expenditure development
option for Wafi-Golpu. Drilling completed at Golpu during the quarter
is expected to have a positive impact on the grade of the upper mining
block due to an increase in the volume of the higher grade hornblende
porphyry compared with the previous estimate. Drilling has also
confirmed continuity of porphyry and high grade mineralisation in the
lower mining block.

Results from two holes were received during the quarter. WR499 was
a long section hole drilled from north to south that confirmed the
northern boundary of the deposit and demonstrated the continuity
of higher grade porphyry mineralisation through and well below the
existing resource. WR504 was a west to east cross section hole that
confirmed the fault structures controlling the distribution of higher
grade in the deposit. These include:

-    WR499* – 1 247m @ 1.0g/t Au and 1.2% Cu from 966m, including
     560m @ 1.9g/t Au and 2.1% Cu from 1 252m;
-    WR504 – 1 369m @ 1.1g/t Au and 1.7% Cu from 399m, including
     428m @ 2.2g/t Au and 2.9% Cu from 1 191m.
*Partial result reported last quarter.

The surface drilling program at Golpu is now complete for the 2014
financial year. Results from the last two holes WR499 and WR504 are
being incorporated into a new planning model for integration into
the ongoing study.

6. IN CONCLUSION
Various structural changes have been effected which will
aid in the pro-active management of unplanned events which have
negatively impacted on our production. In parallel, our revised planning
strategy will shift the focus toward de-bottlenecking and optimisation,
and should also result in an increase in the Company's margins. We
remain committed to increasing our profits and cash flow to enable us
to pay dividends in future.

Graham Briggs
Chief Executive Officer

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

                                                                                                             Underground production                                                                            Surface production
                                Three                                                                                                                                                                                                                   Total
                                months                                                                                                                                                     Total                                            Total       South    Hidden       Total
                                ended   Kusasalethu    Doornkop    Phakisa    Tshepong    Masimong  Target(1)    Bambanani           Joel     Unisel        Target(3)    Steyn(2)    Underground    Phoenix     Dumps        Kalgold      Surface      Africa    Valley     Harmony
                                Mar-14          226         102        138         232         164        181           52             88         95               73           9          1 360      1 483       620            356        2 459       3 819       467       4 286
Ore milled          – t'000
                                Dec-13          302         238        137         219         161        193           54            149        107               75          12          1 647      1 482       755            364        2 601       4 248       506       4 754
                                Mar-14          929         434        752       1 024         660      1 173          707            345        458              360          99          6 941        201       155            255          611       7 552       816       8 368
Gold produced       – kg
                                Dec-13        1 140         872        706         962         684      1 241          697            674        512              350         147          7 985        217       226            315          758       8 743       772       9 515
                                Mar-14       29 868      13 953     24 177      32 922      21 219     37 713       22 731         11 092     14 725           11 574       3 183        223 157      6 462     4 983          8 198       19 643     242 800    26 235     269 035
Gold produced       – oz
                                Dec-13       36 652      28 035     22 698      30 929      21 991     39 899       22 409         21 670     16 461           11 253       4 726        256 723      6 977     7 266         10 127       24 370     281 093    24 820     305 913
                                Mar-14         4.11        4.25       5.45        4.41        4.02       6.48        13.60           3.92       4.82             4.93       11.00           5.10       0.14      0.25           0.72         0.25        1.98      1.75        1.95
Yield               – g/tonne
                                Dec-13         3.77        3.66       5.15        4.39        4.25       6.43        12.91           4.52       4.79             4.67       12.25           4.85       0.15      0.30           0.87         0.29        2.06      1.53        2.00

Cash operating                  Mar-14      463 848     582 786    335 239     325 056     356 248    219 864      198 116        450 803    322 395          382 311     289 313        341 644    279 746   441 426        404 459      372 810     344 166   337 621     343 527
                    – R/kg
costs                           Dec-13      389 854     320 533    374 572     352 244     353 671    200 373      199 795        261 521    294 779          383 566     221 871        306 967    279 221   357 916        318 184      318 876     308 000   316 206     308 665

Cash operating                  Mar-14        1 332       1 674        963         934       1 023        632          569          1 295        926            1 098         831            981        804     1 268          1 162        1 071         989       970         987
                    – $/oz
costs                           Dec-13        1 198         985       1 151      1 083       1 087        616          614            804        906            1 179         682            943        858     1 100            978          980         947       972         949

Cash operating                  Mar-14        1 907       2 480      1 827       1 435       1 434      1 425        2 694          1 767      1 554            1 885       3 182          1 744         38       110            290           93         681       590         671
                    – R/tonne
costs                           Dec-13        1 472       1 174      1 930       1 547       1 503      1 288        2 579          1 183      1 411            1 790       2 718          1 488         41       107            275           93         634       482         618
                                Mar-14        1 118         491        722         983         634      1 035          679            390        440              317          95          6 904        220       158            321          699       7 603       899       8 502
Gold sold           – Kg
                                Dec-13        1 184         888        740       1 009         717      1 384          730            681        537              390         154          8 414        180       224            269          673       9 087       711       9 798
                                Mar-14       35 944      15 786     23 213      31 604      20 384     33 276       21 830         12 539     14 146           10 192       3 054        221 968      7 073     5 080         10 320       22 473     244 441    28 903     273 344
Gold sold           – oz
                                Dec-13       38 066      28 550     23 792      32 440      23 052     44 497       23 470         21 895     17 265           12 539       4 951        270 517      5 787     7 202          8 649       21 638     292 155    22 859     315 014
                                Mar-14      500 510     223 445    326 249     444 215     286 428    466 477      306 068        176 285    198 666          142 729      42 531      3 113 603     97 738    71 013        142 303      311 054   3 424 657   405 728   3 830 385
Revenue             (R'000)
                                Dec-13      494 357     364 818    306 991     418 452     297 349    575 876      302 668        283 124    222 669          162 260      63 875      3 492 439     75 268    96 949        113 108      285 325   3 777 764   293 622   4 071 386

  Cash operating                Mar-14      430 915     252 929    252 100     332 857     235 124    257 900      140 068        155 527    147 657          137 632      28 642      2 371 351     56 229    68 421        103 137      227 787   2 599 138   275 499   2 874 637
                    (R'000)
  costs                         Dec-13      444 434     279 505    264 448     338 859     241 911    248 663      139 257        176 265    150 927          134 248      32 615      2 451 132     60 591    80 889        100 228      241 708   2 692 840   244 111   2 936 951

  Inventory                     Mar-14       64 740      20 837   (11 605)    (15 785)     (9 651)   (36 805)     (10 628)          3 609    (6 375)         (19 718)     (1 061)       (22 442)      5 483     (415)         17 747       22 815         373    30 997      31 370
                    (R'000)
  movement                      Dec-13       28 010      12 659     16 146      22 591      16 418     51 668       12 367        (6 288)      9 603           28 051       3 043        194 268   (11 068)       143       (13 675)     (24 600)     169 668  (20 733)     148 935
                                Mar-14      495 655     273 766    240 495     317 072     225 473    221 095      129 440        159 136    141 282          117 914      27 581      2 348 909     61 712    68 006        120 884      250 602   2 599 511   306 496   2 906 007
Operating costs     (R'000)
                                Dec-13      472 444     292 164    280 594     361 450     258 329    300 331      151 624        169 977    160 530          162 299      35 658      2 645 400     49 523    81 032         86 553      217 108   2 862 508   223 378   3 085 886
                                Mar-14        4 855    (50 321)     85 754     127 143      60 955    245 382      176 628         17 149     57 384           24 815      14 950        764 694     36 026     3 007         21 419       60 452     825 146    99 232     924 378
Production profit   (R'000)
                                Dec-13       21 913      72 654     26 397      57 002      39 020    275 545      151 044        113 147     62 139             (39)      28 217        847 039     25 745    15 917         26 555       68 217     915 256    70 244     985 500
                                Mar-14          449     (4 647)      7 921      11 742       5 629     22 662       16 313          1 584      5 300            2 292       1 381         70 626      3 328       277          1 978        5 583      76 209     9 165      85 374
Production profit   ($'000)
                                Dec-13        2 164       7 178      2 609       5 632       3 856     27 227       14 924         11 180      6 140              (4)       2 788         83 694      2 544     1 572          2 623        6 739      90 433     6 941      97 374

Capital                         Mar-14      115 731      54 634     74 573      71 374      43 154     88 100       24 585         28 339     20 524           27 095         536        548 645        696     2 877          5 478        9 051     557 696    21 225     578 921
                    (R'000)
expenditure                     Dec-13      130 309      63 513     98 511      78 740      40 571     64 190       29 220         37 936     24 652           36 768         641        605 051        931     2 463         12 607       16 001     621 052    19 082     640 134
                                Mar-14       10 688       5 046      6 887       6 592       3 985      8 136        2 271          2 617      1 895            2 502          50         50 669         64       266            506          836      51 505     1 960      53 465
Capital
                    ($'000)
expenditure                     Dec-13       12 876       6 276      9 734       7 780       4 009      6 343        2 887          3 748      2 436            3 633          63         59 785         92       243          1 246        1 581      61 366     1 885      63 251

Adjusted                        Mar-14      447 045     556 494    340 244     329 294     357 868    218 341      196 480        414 909    328 059          378 538     295 225        345 144    280 602   430 417        381 105      360 620     346 691   335 115     345 467
                    – R/kg
operating costs                 Dec-13      408 698     346 101    389 497     367 910     371 109    222 422      216 640        258 728    307 717          422 833     240 307        323 996    275 126   361 752        330 343      326 029     324 163   316 287     323 591
                                Mar-14        1 284       1 599        977         946       1 028        627          564          1 192        942            1 087         848            991        806     1 236          1 095        1 036         996       955         992
Adjusted
                    – $/oz
operating costs                 Dec-13        1 256       1 064      1 197       1 131       1 141        684          666            795        946            1 299         739            996        846     1 112          1 015        1 002         996       969         994

All-in sustaining               Mar-14      566 448     677 873    454 007     415 208     443 606    315 767      222 756        468 583    391 820          476 358     317 846        434 202    283 766   465 069        411 143      383 242     429 210   400 943     426 221
                    – R/kg
costs                           Dec-13      533 624     416 838    503 058     458 501     447 878    278 028      241 303        299 632    373 246          526 404     263 910        400 445    280 299   386 310        393 782      360 943     397 713   394 820     397 503
                                Mar-14        1 627       1 947      1 304       1 193       1 274        907          640          1 346      1 126            1 368         913          1 247        815     1 336          1 181        1 101       1 233     1 143       1 224
All-in sustaining
                    – $/oz
costs                           Dec-13        1 640       1 281      1 546       1 409       1 376        854          742            921      1 147            1 618         811          1 231        861     1 187          1 210        1 109       1 222     1 209       1 222

CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)

                                                             Quarter ended                      Nine months ended       Year ended   
                                                  31 March     31 December      31 March      31 March      31 March       30 June   
                                                      2014            2013          2013          2014          2013          2013   
                                               (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)     (Audited)   
Figures in million                      Note                               (Restated)*                (Restated)*   (Restated)*   
Continuing operations                                                                                                              
Revenue                                              3 830           4 071         3 528        11 919        12 419        15 902   
Cost of sales                              3       (3 595)         (3 817)       (3 260)      (11 147)      (10 277)      (16 448)   
Production costs                                   (2 906)         (3 086)       (2 675)       (8 973)       (8 509)      (11 321)   
Amortisation and depreciation                        (475)           (565)         (468)       (1 617)       (1 470)       (2 001)   
Impairment of assets                                  (29)               –             –          (29)             –       (2 733)   
Other items                                          (185)           (166)         (117)         (528)         (298)         (393)   
Gross profit/(loss)                                    235             254           268           772         2 142         (546)   
Corporate, administration and other                                                                                                  
expenditure                                          (109)           (102)         (121)         (319)         (338)         (465)   
Social investment expenditure                          (8)            (21)          (25)          (67)          (70)         (127)   
Exploration expenditure                               (90)           (112)         (157)         (344)         (454)         (673)   
Profit on sale of property, plant and                                                                                                
equipment                                                –               –            15             –           139           139   
Other expenses (net)                        7          (22)           (140)         (138)         (161)         (182)         (350)   
Operating profit/(loss)                                  6           (121)         (158)         (119)         1 237       (2 022)   
Profit from associates                                  10               4             –            17             –             –   
Impairment of investments                                –               –          (39)           (7)          (88)          (88)   
Net gain on financial instruments                       25              39            15           138           181           173   
Investment income                                       64              50            47           159           118           185   
Finance cost                                          (59)            (57)          (65)         (176)         (198)         (256)   
Profit/(loss) before taxation                           46            (85)         (200)            12         1 250       (2 008)   
Taxation                                              (15)             (6)          (44)          (59)         (416)         (655)   
Normal taxation                                         24               –         (124)          (25)         (349)         (271)   
Deferred taxation                                     (39)             (6)            80          (34)          (67)         (384)   
Net profit/(loss) from continuing                                                                                                    
operations                                              31            (91)         (244)          (47)           834       (2 663)   
Discontinued operations                                                                                                            
Profit from discontinued operations                      –               –           143             –           314           314   
Net profit/(loss) for the period                        31            (91)         (101)          (47)         1 148       (2 349)   
Attributable to:                                                                                                                   
Owners of the parent                                    31            (91)         (101)          (47)         1 148       (2 349)   
Earnings/(loss) per ordinary share                                                                                                   
(cents)                                    4                                                                                       
Earnings/(loss) from continuing                                                                                                      
operations                                               7            (21)          (57)          (11)           193         (616)   
Earnings from discontinued                                                                                                           
operations                                               –               –            33             –            73            73   
Total earnings/(loss)                                    7            (21)          (24)          (11)           266         (543)   
Diluted earnings/(loss) per                                                                                                          
ordinary share (cents)                     4                                                                                       
Earnings/(loss) from continuing                                                                                                      
operations                                               7            (21)          (57)          (11)           192         (616)   
Earnings from discontinued                                                                                                           
operations                                               –               –            33             –            73            73   
Total diluted earnings/(loss)                            7            (21)          (24)          (11)           265         (543)   

* The audited June 2013 annual results, unaudited nine months ended March 2013 and unaudited March 2013 quarter results have been restated due to a change in accounting policy. Refer to
  note 2 for details. The restatements to the comparative information have not been audited.

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand)

                                                  Quarter ended                        Nine months ended     Year ended   
                                       31 March     31 December      31 March      31 March      31 March       30 June   
                                           2014            2013          2013          2014          2013          2013   
                                    (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)     (Audited)   
Figures in million                                              (Restated)*                (Restated)*   (Restated)*   
Net profit/(loss) for the period             31            (91)         (101)          (47)         1 148       (2 349)   
Other comprehensive (loss)/income                                                                                         
for the period, net of income tax         (416)             378           506         (733)           726           737   
Foreign exchange translation              (421)             370           519         (745)           716           742   
Movements on investments                      5               8          (13)            12            10           (5)   
Total comprehensive                                                                                                       
(loss)/income for the period              (385)             287           405         (780)         1 874       (1 612)   
Attributable to:                                                                                                      
Owners of the parent                      (385)             287           405         (780)         1 874       (1 612)   

* The audited June 2013 annual results, unaudited nine months ended March 2013 and unaudited March 2013 quarter results have been restated due to a change in accounting policy. Refer to
  note 2 for details. The restatements to the comparative information have not been audited.

The accompanying notes are an integral part of these condensed consolidated financial statements.
All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand)
for the nine months ended 31 March 2014

                                                                          Other   Retained            
Figures in million                              Note   Share capital   reserves   earnings    Total   
Balance – 30 June 2013 as previously reported                 28 325      3 464        522   32 311   
Restatement for IFRIC 20                           2               –       (22)       (74)     (96)   
Restated balance – 30 June 2013                               28 325      3 442        448   32 215   
Share-based payments                                               –        198          –      198   
Net loss for the period                                            –          –       (47)     (47)   
Other comprehensive loss for the period                            –      (733)          –    (733)   
Balance – 31 March 2014                                       28 325      2 907        401   31 633   
Balance – 30 June 2012 as previously reported                 28 331      2 444      3 307   34 082   
Restatement for IFRIC 20                           2               –       (15)       (94)    (109)   
Restated balance – 30 June 2012                               28 331      2 429      3 213   33 973   
Share-based payments                                               –        215          –      215   
Net profit for the period                                          –          –      1 148    1 148   
Other comprehensive income for the period                          –        726          –      726   
Dividends paid(1)                                                  –          –      (435)    (435)   
Balance–31 March 2013                                         28 331      3 370      3 926   35 627   

(1) Dividend of 50 SA cents declared on 13 August 2012 and 50 SA cents on 1 February 2013.

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

The condensed consolidated financial statements for the nine months ended 31 March 2014 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.

CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)

                                                                              At            At            At            At   
                                                                        31 March   31 December       30 June      31 March   
                                                                            2014          2013          2013          2013   
                                                                     (Unaudited)                  (Audited)   (Unaudited)   
Figures in million                                            Note                               (Restated)*   (Restated)*   
ASSETS                                                                                                                      
Non-current assets                                                                                                         
Property, plant and equipment                                             32 400        32 663        32 732        34 828   
Intangible assets                                                          2 194         2 193         2 191         2 190   
Restricted cash                                                               40            38            37            38   
Restricted investments                                                     2 225         2 180         2 054         2 050   
Deferred tax assets                                                           84            91           104           652   
Investments in associates                                        5           125           115           109             –   
Investments in financial assets                                                4             4            49           139   
Inventories                                                                   57            57            57            57   
Trade and other receivables                                                    –             –             –             6   
Total non-current assets                                                  37 129        37 341        37 333        39 960   
Current assets                                                                                                             
Inventories                                                                1 306         1 423         1 417         1 191   
Trade and other receivables                                                  900         1 149         1 162         1 482   
Income and mining taxes                                                      141           106           132             3   
Restricted cash                                                               15            15             –             –   
Cash and cash equivalents                                                  2 008         2 323         2 089         3 099   
                                                                           4 370         5 016         4 800         5 775   
Non-current assets and assets of disposal groups classified                                                                  
as held for sale                                                 6            51            46             –             –   
Total current assets                                                       4 421         5 062         4 800         5 775   
Total assets                                                              41 550        42 403        42 133        45 735   
EQUITY AND LIABILITIES                                                                                                     
Share capital and reserves                                                                                                  
Share capital                                                             28 325        28 325        28 325        28 331   
Other reserves                                                             2 907         3 270         3 442         3 370   
Retained earnings                                                            401           370           448         3 926   
Total equity                                                              31 633        31 965        32 215        35 627   
Non-current liabilities                                                                                                    
Deferred tax liabilities                                                   3 029         3 000         3 021         3 244   
Provision for environmental rehabilitation                                 2 020         2 016         1 997         1 961   
Retirement benefit obligation                                                205           201           194           188   
Other provisions                                                              67            71            55            48   
Borrowings                                                       7         2 843         3 280         2 252         2 238   
Total non-current liabilities                                              8 164         8 568         7 519         7 679   
Current liabilities                                                                                                        
Borrowings                                                       7             –             –           286           287   
Income and mining taxes                                                        3             –             4            92   
Trade and other payables                                                   1 750         1 870         2 109         2 050   
Total current liabilities                                                  1 753         1 870         2 399         2 429   
Total equity and liabilities                                              41 550        42 403        42 133        45 735   

* The audited June 2013 annual results and unaudited March 2013 results have been restated due to a change in accounting policy. 
  Refer to note 2 for details. The restatements to the comparative information have not been audited.

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

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)

                                                         Quarter ended                      Nine months ended      Year ended   
                                              31 March     31 December      31 March      31 March      31 March      30 June   
                                                  2014            2013          2013          2014          2013         2013   
Figures in million                         (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)    (Audited)   
Cash flow from operating activities                                                                                         
Cash generated by operations                       755             700          204         1 693         2 933        3 154   
Interest and dividends received                     34              32           34            92            90          138   
Interest paid                                     (39)            (21)         (27)          (89)          (85)        (125)   
Income and mining taxes paid                         _            (28)         (70)          (28)         (183)        (312)   
Cash generated by operating activities             750             683          141         1 668         2 755        2 855   
Cash flow from investing activities                                                                                           
Increase in restricted cash                        (3)               –            –            (3)             –            –   
Restricted cash transferred from                                                                                                
disposal group                                       –               –          252             –             –            –   
Proceeds on disposal of investment                                                                                              
in subsidiary                                        –               –        1 264             –         1 264        1 264   
Purchase of investments                              –               –         (33)             –          (72)         (86)   
Other investing activities                           –             (1)            3          (10)           (3)          (4)   
Net additions to property,                                                                                                      
plant and equipment(1)                           (599)           (624)        (835)       (1 841)       (2 714)      (3 652)   
Cash (utilised)/generated by investing                                                                                          
activities                                       (602)           (625)          651       (1 854)       (1 525)      (2 478)   
Cash flow from financing activities                                                                                           
Borrowings raised                                    –               –            –            612           678          678   
Borrowings repaid                                (462)             (3)          (4)         (468)         (177)        (333)   
Ordinary shares issued – net of expenses             –               –            –              –             –            1   
Option premium on BEE transaction                    –               –            –              –             –            2   
Dividends paid                                       –               –        (217)             –         (435)        (435)   
Cash (utilised)/generated by                                                                                                    
financing activities                             (462)             (3)        (221)           144            66         (87)   
Foreign currency translation                                                                                                    
adjustments                                        (1)            (20)           17          (39)            30           26   
Net (decrease)/increase in cash and cash                                                                                        
equivalents                                      (315)              35          588          (81)         1 326          316   
Cash and cash equivalents – beginning                                                                                           
of period                                        2 323           2 288        2 511         2 089         1 773        1 773   
Cash and cash equivalents – end                                                                                                 
of period                                        2 008           2 323        3 099         2 008         3 099        2 089   

(1) The 2013 year includes capital expenditure for Wafi-Golpu and other international projects of R537 million, the March 2013 quarter R148 million and the nine months ended 31 March 2013
    R403 million.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 31 March 2014 (Rand)

1.   Accounting policies
     Basis of accounting
     The condensed consolidated financial statements for the nine months ended 31 March 2014 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.

     The following accounting standards, amendments to standards and new interpretations have been adopted with effect from 1 July 2013.

     IFRS 7     Amendment–Disclosures–Offsetting Financial Assets and Financial Liabilities
     IFRS 10    Consolidated Financial Statements
     IFRS 11    Joint Arrangements
     IFRS12     Disclosure of Interests in Other Entities
     IFRS 13    Fair Value Measurement
     IFRSs      Annual Improvements 2009 – 2011
     IAS 19     Employee Benefits (Revised 2011)
     IAS 27     Separate Financial Statements (Revised 2011)
     IAS 28     Investments in Associates and Joint Ventures (Revised 2011)
     IFRIC 20   Stripping Costs in the Production Phase of a Surface Mine

     New standards and amendments which have an impact on the condensed consolidated financial statements of the group are described below:

     IAS 19 includes a number of amendments to the accounting for defined benefit plans, including actuarial gains and losses that are now
     recognised in other comprehensive income (OCI). Actuarial gains and losses recognised in OCI will not be recycled to profit or loss. The impact
     for the group was immaterial.

     IFRS 11 requires joint operations to be accounted at the group's interest in the assets, liabilities, revenue and expenses of the joint operation.
     Harmony previously accounted for joint operations using the proportional consolidation method. The change in accounting policy has not had
     an impact on any previously reported numbers.

     IFRIC 20 clarifies the requirements for accounting for costs of stripping activity in the production phase of surface mining. Stripping assets that
     cannot be attributed to an identifiable component of the orebody will be written off to retained earnings on adoption of IFRIC 20. Refer to
     note 2 for further details.

2.   Change in accounting policies
     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 prospective basis from 1 July 2011 in compliance with the transitional requirements of IFRIC 20.

     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 orebody for which access has been improved; and

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

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

     Where there were no identifiable components of the orebody to which the predecessor asset relates, the asset was written off to retained
     earnings at the beginning of the earliest period presented. An amount of R54 million was written off to opening retained earnings.

     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 this date have been reviewed and audited respectively, 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       Nine months ended        Year ended
                                                                                                        31 March                31 March           30 June
                                                                                                            2013                    2013              2013
                                                                                                     (Unaudited)             (Unaudited)         (Audited)
     Cost of sales
     Production costs
     As previously reported                                                                              (2 707)                 (8 556)          (11 400)
     IFRIC 20 adjustment                                                                                      32                      47                79

     Restated                                                                                            (2 675)                 (8 509)          (11 321)
     Amortisation and depreciation                                                                                                    
     As previously reported                                                                                (459)                 (1 441)           (1 942)
     IFRIC 20 adjustment                                                                                    (9)                    (29)              (59)
     Restated                                                                                              (468)                 (1 470)           (2 001)
     Increase/decrease in net profit/loss for the period*                                                     23                      18                20
     * There is no material taxation effect on these items.

     Condensed consolidated statements of comprehensive income
                                                                                                   Quarter ended       Nine months ended        Year ended
                                                                                                        31 March                31 March           30 June
                                                                                                            2013                    2013              2013
                                                                                                     (Unaudited)             (Unaudited)         (Audited)
     Increase/decrease in net profit/loss for the period*                                                     23                      18                20
     Other comprehensive income for the period net of income tax                                              
     Foreign exchange translation                                                                             
     As previously reported                                                                                  523                     723               749
     IFRIC 20 adjustment                                                                                     (4)                     (7)               (7)
     Restated                                                                                                519                     716               742
     Increase/decrease in total comprehensive income/loss for the period                                      19                      11                13
     * There is no material taxation effect on these items.

     Condensed consolidated balance sheets
                                                                                                                                      At                At
                                                                                                                                 30 June          31 March
                                                                                                                                    2013              2013
     Figures in million                                                                                                        (Audited)       (Unaudited)
     Non-current assets
     Property, plant and equipment
     As previously reported                                                                                                       32 820            34 911
     IFRIC 20 adjustment                                                                                                            (88)              (83)
     Restated                                                                                                                     32 732            34 828
     Current assets
     Inventories
     As previously reported                                                                                                        1 425             1 206
     IFRIC 20 adjustment                                                                                                             (8)              (15)
     Restated                                                                                                                      1 417             1 191
     Share capital and reserves
     Other reserves
     As previously reported                                                                                                        3 464             3 392
     IFRIC 20 adjustment(1)                                                                                                         (22)              (22)
     Restated                                                                                                                      3 442             3 370
     Retained earnings
     As previously reported                                                                                                          522             4 002
     IFRIC 20 adjustment                                                                                                            (74)              (76)
     Restated                                                                                                                        448             3 926
     Decrease in total equity                                                                                                       (96)              (98)

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

Earnings/(loss) and headline earnings/(loss) per share

                                             Quarter ended   Nine months ended   Year ended   
                                                  31 March            31 March      30 June   
                                                      2013                2013         2013   
                                               (Unaudited)         (Unaudited)    (Audited)   
Basic (loss)/earnings per share (cents)                                                       
As previously reported                                (29)                 262        (548)   
IFRIC 20 adjustment                                      5                   4            5   
Restated                                              (24)                 266        (543)   
Diluted (loss)/earnings per share (cents)                                                     
As previously reported                                (29)                 261        (548)   
IFRIC 20 adjustment                                      5                   4            5   
Restated                                              (24)                 265        (543)   
Total headline (loss)/earnings                                                                
Figures in million                                                                            
As previously reported                               (202)               1 008          204   
IFRIC 20 adjustment                                     23                  18           20   
Restated                                             (179)               1 026          224   
Headline (loss)/earnings per share (cents)                                                    
As previously reported                                (47)                 234           47   
IFRIC 20 adjustment                                      5                   4            5   
Restated                                              (42)                 238           52   
Diluted headline (loss)/earnings (cents)                                                      
As previously reported                                (47)                 233           47   
IFRIC 20 adjustment                                      5                   4            5   
Restated                                              (42)                 237           52   

3.   Cost of sales                                                                                                            
                                                     Quarter ended                        Nine months ended      Year ended   
                                          31 March     31 December       31 March      31 March      31 March       30 June   
                                              2014            2013           2013          2014          2013          2013   
                                       (Unaudited)     (Unaudited)    (Unaudited)   (Unaudited)   (Unaudited)     (Audited)   
Figures in million                                                   (Restated)*                 (Restated)*   (Restated)*   
Production costs – excluding royalty         2 881           3 047          2 626         8 871         8 337        11 104   
Royalty expense                                 25              39             49           102           172           217   
Amortisation and depreciation                  475             565            468         1 617         1 470         2 001   
Impairment of assets(1)                         29               –              –            29             –         2 733   
Rehabilitation expenditure/(credit)(2)          17            (15)             10            17            16          (24)   
Care and maintenance cost of                                                                                                  
restructured shafts                             16              18             16            51            52            68   
Employment termination and                                                                                                    
restructuring cost(3)                           90              50              –           234             7            46   
Share-based payments(4)                         62             113             95           227           221           266   
Other                                            –               –            (4)           (1)             2            37   
Total cost of sales                          3 595           3 817          3 260        11 147        10 277        16 448   

*    The audited June 2013 annual results, unaudited nine months ended March 2013 and unaudited March 2013 quarter results have been restated due to a change in accounting policy.
     Refer to note 2 for details. The restatements to the comparative information have not been audited.
(1)  The decision to stop mining at the Steyn 2 shaft (included in the Bambanani segment) resulted in the remaining carrying value being impaired.
(2)  A credit of R24 million arose in the December 2013 quarter as a result of work performed in the Free State, resulting in a reduction in the rehabilitation liability.
(3)  Included in the December 2013 and March 2014 quarters are amounts relating to the restructuring at Hidden Valley and the 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.   Earnings/(loss) and net asset value per share
                                                            Quarter ended                        Nine months ended     Year ended   
                                                 31 March     31 December      31 March      31 March      31 March       30 June   
                                                     2014            2013          2013          2014          2013          2013   
                                              (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)     (Audited)   
                                                                            (Restated)*                (Restated)*   (Restated)*   
Weighted average number                                                                                                             
of shares (million)                                 433.3           432.9         431.8         433.0         431.6         431.9   
Weighted average number of diluted                                                                                                  
shares (million)                                    434.3           433.4         432.8         434.4         432.8         432.7   
Total earnings/(loss) per share (cents):                                                                                           
Basic earnings/(loss)                                   7            (21)          (24)          (11)           266         (543)   
Diluted earnings/(loss)                                 7            (21)          (24)          (11)           265         (543)   
Headline earnings/(loss)                               12            (21)          (42)           (4)           238            52   
– from continuing operations                           12            (21)          (51)           (4)           189             3   
– from discontinued operations                          –               –             9             –            49            49   
Diluted headline earnings/(loss)                       12            (21)          (42)           (4)           237            52   
– from continuing operations                           12            (21)          (51)           (4)           188             3   
– from discontinued operations                          –               –             9             –            49            49   
Figures in million                                                                                                                  
Reconciliation of headline                                                                                                          
earnings/(loss):                                                                                                                   
Continuing operations                                                                                                              
Net profit/(loss)                                      31            (91)         (244)          (47)           834       (2 663)   
Adjusted for:                                                                                                                      
Impairment of investments(1)                            –               –            39             7            88            88   
Impairment of assets                                   29               –             –            29             -         2 733   
Taxation effect on impairment of assets               (8)               –             –           (8)             –          (38)   
Profit on sale of property, plant and                                                                                               
equipment                                               –               –          (15)             –         (139)         (139)   
Taxation effect of profit on sale of                                                                                                
property, plant and equipment                           –               –             –             –            31            31   
Headline earnings/(loss)                               52            (91)         (220)          (19)           814            12   
Discontinued operations                                                                                                            
Net profit                                              –               –           143             –           314           314   
Adjusted for:                                                                                                                      
Profit on sale of investment in subsidiary(1)           –               –         (102)             –         (102)         (102)   
Headline earnings                                       –               –            41             –           212           212   
Total headline earnings/(loss)                         52            (91)         (179)          (19)         1 026           224   

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

Net asset value per share
                                                                                                          At                    At                   At                   At
                                                                                                    31 March           31 December              30 June             31 March
                                                                                                        2014                  2013                 2013                 2013
                                                                                                 (Unaudited)                                  (Audited)          (Unaudited)
                                                                                                                                            (Restated)*          (Restated)*

Number of shares in issue                                                                        435 693 819           435 693 819          435 289 890          435 257 691
Net asset value per share (cents)                                                                      7 259                 7 337                7 405                8 185

* The audited June 2013 annual results, unaudited nine months ended March 2013 and unaudited March 2013 quarter results have been restated due to a change in accounting policy. Refer
  to note 2 for details. The restatements to the comparative information have not been audited.

5.   Investment in associate
     Investment in associate includes Harmony's 10.38% share of Rand Refinery Proprietary Limited (Rand Refinery) results amounting to R17 million for
     the nine months ended 31 March 2014. Rand Refinery has not issued its audited results for its year ended 30 September 2013 and therefore
     Harmony's share of results has been based on unaudited management accounts.

     Rand Refinery implemented a new Enterprise Resource Planning (ERP) system on 1 April 2013 to conduct its financial and management
     accounting. Since the implementation of the ERP software, the customisation of the software has been problematic with the result that Rand
     Refinery has not been able to reconcile certain accounts at 30 September 2013. Rand Refinery's management team is currently resolving
     the problems encountered with the ERP software and is in the process of investigating the transactions processed from 1 April 2013 on the
     ERP system to determine if any adjustments to their current financial records are required. At this stage, the Rand Refinery management team
     cannot be certain that the results in its management accounts are accurate.

6.   Non-current assets and assets of disposal groups classified as held for sale
     During the December 2013 quarter, a cash offer for Witwatersrand Consolidated Gold Resources Limited's (Wits Gold) entire share capital was
     made to all Wits Gold shareholders by Sibanye Gold Limited. Harmony has accepted the offer. Following this, the balance which represents
     Harmony's fair value stake in Wits Gold has been classified as a non-current asset held for sale (formerly classified as Investment in financial
     assets) under IFRS 5. See note 11 for developments after balance sheet date.

7.   Borrowings
     Two draw downs of US$30 million each were made from the US$300 million syndicated revolving credit facility during the September 2013
     quarter. There were no draw downs subsequently and the drawn level remains at US$270 million. The weakening of the Rand against the
     US$ resulted in a foreign exchange translation loss of R144 million being recorded for the year to date, increasing the borrowings balance and
     other expenses (net). The facility is repayable by September 2015.

     Harmony refinanced its Nedbank revolving credit facility and entered into a new agreement for R1.3 billion revolving credit facility during the
     December 2013 quarter. At the same time management also agreed an amended set of covenants with the leader group, to give the group
     more long-term financial flexibility. The interest rate is equivalent to JIBAR + 350 basis points. The outstanding amount at 28 March 2014 of
     R467 million was repaid. The facility is available until December 2016.

8.   Financial risk management activities
     Fair value determination

     The following table presents the group's assets and liabilities that are measured at fair value by level within the fair value hierarchy:

     Level 1: Quoted prices (unadjusted) in active markets for identical assets;

     Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is, as prices)
              or indirectly (that is derived from prices);

     Level 3: Inputs for the asset that are not based on observable market data, (that is unobservable inputs).
                                                                                                                           At                     At                    At                   At
                                                                                                                     31 March            31 December               30 June             31 March
                                                                                                                         2014                   2013                  2013                 2013
     Figures in million                                                                                           (Unaudited)                                   (Audited)          (Unaudited)
     Available-for-sale financial assets(1)*
     Level 1                                                                                                               51                     46                    44                   44
     Level 2                                                                                                                –                      –                     –                    –
     Level 3                                                                                                                4                      4                     5                   96
     Fair value through profit and loss(2)*
     Level 1                                                                                                                –                      –                     –                    –
     Level 2                                                                                                              768                    934                 1 041                1 043
     Level 3                                                                                                                –                      –                     –                    –

     (1) Level 1 fair values are directly derived from actively traded shares on the JSE.
         Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis to ensure that significant prolonged decline in the value of the investments
         has occurred. At the end of the 2013 financial year, the investment in Rand Refinery was reclassified as an investment in associate on obtaining significant influence.
     (2) The majority of the level 2 fair values are directly derived from the Shareholders Weighted Top 40 index (SWIX 40) on the JSE, and are discounted at market interest rate.
     * Includes non-current assets or disposal groups held for sale where applicable.

9.    Commitments and contingencies
      Figures in million                                                                                                  At                   At                        At            At
                                                                                                                    31 March          31 December                   30 June      31 March
                                                                                                                        2014                 2013                      2013          2013
                                                                                                                 (Unaudited)                                      (Audited)   (Unaudited)

      Capital expenditure commitments:
      Contracts for capital expenditure                                                                                  245                  322                       416           594
      Authorised by the directors but not contracted for                                                                 491                1 152                     1 545           958

                                                                                                                         736                1 474                     1 961         1 552
      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 integrated 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.

10.   Related parties
      Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of
      the group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the September 2013 quarter,
      Frank Abbott purchased 65 600 shares in the company.

11.   Subsequent events
      (a) On 14 April 2014 the consideration for the sale of Wits Gold was received.

      (b) In April 2014, the Department of Mineral Resources approved the ground swap transaction between Joel mine and Sibanye Gold Limited's
          Beatrix mine. However, the execution of the agreements is still pending and therefore the transaction is not effective. The execution is
          expected by June 2014.

      (c) During April 2014, the payment to employees was made for the second tranche of ESOP shares and SARs, following the vesting in
          March 2014.

12.   Segment report
      The segment report follows below.

13.   Reconciliation of segment information to condensed consolidated income statements and balance sheets
                                                                                                                                                                     Nine months ended
                                                                                                                                                                    31 March      31 March
                                                                                                                                                                        2014          2013
                                                                                                                                                                 (Unaudited)   (Unaudited)
      Figures in million                                                                                                                                                      (Restated)*

      The "Reconciliation of segment information to condensed 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 financial statements and segment report:
      Reconciliation of production profit to gross profit
      Total segment revenue                                                                                                                                          11 919         13 293
      Total segment production costs                                                                                                                                (8 973)        (9 042)
      Production profit per segment report                                                                                                                            2 946          4 251
      Discontinued operations                                                                                                                                             –          (341)
      Production profit from continuing operations                                                                                                                    2 946          3 910
      Cost of sales items, other than production costs and royalty expense                                                                                          (2 174)        (1 768)

      Gross profit as per income statements(1)                                                                                                                          772          2 142

      (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.

                                                                                                                                          At             At
                                                                                                                                    31 March       31 March
                                                                                                                                        2014           2013
                                                                                                                                 (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                                                                                                                            821            832
Undeveloped property                                                                                                                   5 139          5 139
Other non-mining assets                                                                                                                  133             59
Wafi-Golpu assets                                                                                                                        971            998

                                                                                                                                       7 064          7 028
* The nine months ended March 2013 results have been restated due to a change in accounting policy. Refer to note 2 for details.

Segment report (Rand/Metric) (Unaudited)
for the nine months ended 31 March 2014
                                                                                                         Production
                                           Revenue                        Production cost*               profit/(loss)*            Mining assets*          Capital expenditure# Kilograms produced  Tonnes milled
                                           31 March                       31 March                       31 March                  31 March                31 March             31 March            31 March
                                           2014           2013            2014           2013            2014           2013       2014       2013         2014        2013     2014       2013     2014     2013
                                           R million                      R million                      R million                 R million               R million               kg               t'000
Continuing operations
South Africa
Underground
Kusasalethu                               1 466          1 037           1 363          1 186            103           (149)       3 539     3 354         366       272      3 341     2 052       857      499
Doornkop                                    930          1 279             854            786             76             493       3 385     3 360         178       222      2 071     2 772       576      766
Phakisa                                     952            860             786            730            166             130       4 622     4 512         264       242      2 213     1 851       431      379
Tshepong                                  1 305          1 547           1 024          1 089            281             458       3 914     3 815         218       227      3 035     3 339       700      829
Masimong                                    903          1 290             742            740            161             550       1 040     1 005         122       124      2 102     2 777       514      658
Target 1                                  1 466          1 385             747            675            719             710       2 736     2 704         214       262      3 495     3 070       565      538
Bambanani(a)                              1 040            626             513            448            527             178         844       930          88        92      2 419     1 348       190      144
Joel                                        756          1 152             508            487            248             665         379       275         108       116      1 716     2 529       396      460
Unisel                                      622            647             452            429            170             218         662       663          62        57      1 446     1 386       310      332
Target 3                                    459            546             407            379             52             167         525       429          99       104      1 102     1 207       230      250
Surface
All other surface operations                961          1 152             735            746            226             406         469       385          33       222      2 215     2 533     7 841    7 365
Total South Africa                       10 860         11 521           8 131          7 695          2 729           3 826      22 115    21 432       1 752     1 940     25 155    24 864    12 610   12 220
International
Hidden Valley                             1 059            898             842            814            217              84       3 221     6 368          89       368      2 363     1 922     1 476    1 387
Total international                       1 059            898             842            814            217              84       3 221     6 368          89       368      2 363     1 922     1 476    1 387
Total continuing
operations                               11 919         12 419           8 973          8 509          2 946           3 910      25 336    27 800       1 841     2 308     27 518    26 786    14 086   13 607
Discontinued operations
Evander                                       –            874               –            533              –             341           –         –           –       140          –     1 955         –      390
Total discontinued
operations                                    –            874               –            533              –             341           –         –           –       140          –     1 955         –      390
Total operations                         11 919         13 293           8 973          9 042          2 946           4 251      25 336    27 800       1 841     2 448     27 518    28 741    14 086   13 997
Reconciliation of the
segment information to the
condensed consolidated
financial statements (refer to
note 13)                                      –           (874)              –          (533)                                    7 064     7 028
                                        11 919          12 419          8 973          8 509                                   32 400    34 828

*   The March 2013 results have been restated due to a change in accounting policy. Refer to note 2 for details.
#   Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of Rnil (2013: R403 million).
(a) Includes Steyn 2.

DEVELOPMENT RESULTS (Metric)                                                    DEVELOPMENT RESULTS (Imperial)
Quarter ending March 2014                                                       Quarter ending March 2014
                                                          Channel                                                                          Channel
                               Reef   Sampled     Width     Value      Gold                                    Reef   Sampled    Width       Value        Gold
                             Meters    Meters    (Cm's)     (g/t)   (Cmg/t)                                   (feet)   (feet)   (inch)      (oz/t)   (In.oz/t)
Tshepong                                                                        Tshepong
Basal                           331       292      7.91    154.93     1 225     Basal                          1 085      958     3.00        4.69          14
B Reef                          155       128    106.02      1.72       182     B Reef                           508      420    42.00        0.05           2
All Reefs                       486       420     37.81     24.00       907     All Reefs                      1 593    1 378    15.00        0.69          10
Phakisa                                                                         Phakisa
Basal                           328       332     92.39     11.87     1 097     Basal                          1 077    1 089    36.00        0.35          13
All Reefs                       328       332     92.39     11.87     1 097     All Reefs                      1 077    1 089    36.00        0.35          13
Total Bambanani                                                                 Total Bambanani
(Incl. Bambanani, Steyn 2)                                                      (Incl. Bambanani, Steyn 2)
Basal                             –          –        –         –          –    Basal                              –        –         –          –           –
All Reefs                         –          –        –         –          –    All Reefs                          –        –         –          –           –
Doornkop                                                                        Doornkop
South Reef                      187       201     46.00     18.17       836     South Reef                      614       659    18.00        0.53          10
All Reefs                       187       201     46.00     18.18       836     All Reefs                       614       659    18.00        0.53          10
Kusasalethu                                                                     Kusasalethu
VCR Reef                        480       292     96.00      8.18       785     VCR Reef                       1 576      958    38.00        0.24           9
All Reefs                       480       292     96.00      8.18       785     All Reefs                      1 576      958    38.00        0.24           9
Total Target                                                                    Total Target
(incl. Target 1 & Target 3)                                                     (incl. Target 1 & Target 3)
Elsburg                         336       289    147.33      6.75       994     Elsburg                        1 101      948    58.00        0.20          11
Basal                           134        74      8.08    127.83     1 033     Basal                            441      243     3.00        3.95          12
A Reef                          120        50    120.16      7.50       901     A Reef                           395      164    47.00        0.22          10
B Reef                          169       104     60.62     18.28     1 108     B Reef                           554      341    24.00        0.53          13
All Reefs                       759       517    107.33      9.44     1 013     All Reefs                      2 490    1 696    42.00        0.28          12
Masimong 5                                                                      Masimong 5
Basal                           481       430     40.73     21.24       865     Basal                          1 578    1 411    16.00        0.62          10
B Reef                          131       144     68.63     16.19     1 111     B Reef                           431      472    27.00        0.47          13
All Reefs                       612       574     47.72     19.42       927     All Reefs                      2 009    1 883    19.00        0.56          11
Unisel                                                                          Unisel
Basal                           405       340    120.44     15.31     1 844     Basal                          1 327    1 115    47.00        0.45          21
Leader                          476       344    179.97      4.56       821     Leader                         1 562    1 129    71.00        0.13           9
All Reefs                       881       684    150.38      8.84     1 329     All Reefs                      2 889    2 244    59.00        0.26          15
Joel                                                                            Joel
Beatrix                         118       111    118.00     10.14     1 197     Beatrix                         388       364    46.00        0.30          14
All Reefs                       118       111    118.00     10.15     1 197     All Reefs                       388       364    46.00        0.30          14
Total Harmony                                                                   Total Harmony
Basal                         1 679      1 468    62.70     19.53     1 224     Basal                          5 509    4 816    25.00        0.56          14
Beatrix                         118        111   118.00     10.15     1 197     Beatrix                          388      364    46.00        0.30          14
Leader                          476        344   179.97      4.56       821     Leader                         1 562    1 129    71.00        0.13           9
B Reef                          455        376    79.14     10.03       794     B Reef                         1 492    1 234    31.00        0.29           9
A Reef                          120         50   120.16      7.50       901     A Reef                           395      164    47.00        0.22          10
Elsburg                         336        289   147.33      6.75       994     Elsburg                        1 101      948    58.00        0.20          11
South Reef                      187        201    46.00     18.18       836     South Reef                       614      659    18.00        0.53          10
VCR                             480        292    96.00      8.18       785     VCR                            1 576      958    38.00        0.24           9
All Reefs                     3 852      3 131    90.28     11.46     1 035     All Reefs                     12 636   10 272    36.00        0.33          12
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