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HARMONY GOLD MINING COMPANY LIMITED - Results for the fourth quarter FY14 and year ended 30 June 2014

Release Date: 14/08/2014 07:05:00      Code(s): HAR       PDF(s):  
Results for the fourth quarter FY14 and year ended 30 June 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

Q4 FY14

Results for the fourth quarter FY14 and year ended 30 June 2014

KEY FEATURES

Year on year

- 3% increase in gold production to 36 453kg (1.17moz)
- 5% improvement in underground recovered grade at 4.77g/t
- 4% reduction in all-in sustaining costs for the year from R431 745/kg to
  R413 433/kg; an 18% reduction in US$ terms from US$1 522/oz to US$1 242/oz
- 30% reduction in total capital expenditure from R3.6bn (US$412m) to
  R2.5bn in FY14 (US$244m)
- Net loss of R1.27 billion was recorded in FY14 compared to a net loss of
  R2.35 billion in FY13
   - an impairment of R1.44 billion mainly in respect of the Phakisa decline shaft
   - employment termination and restructuring cost of R274 million in FY14
- Headline earnings amounted to 26 SA cents per share (2.5 US cents)
   - excluding Rand Refinery loss, headline earnings would be 55 SA cents
     per share (5.3 US cents)
Quarter on quarter
- 7% increase in gold production to 8 935kg (287 266oz)
- All-in sustaining costs remained stable at R428 383/kg (US$ 1 267/oz)
- Headline earnings of 30 SA cents per share (2.9 US cents) for the June 2014
  quarter

All figures represent continuing operations unless stated otherwise

RESULTS FOR THE Fourth QUARTER FY14 ENDED 30 June 2014

                                                                               Year         Year
                                       Quarter    Quarter    Q – on– Q        ended        ended
                                          June      March     variance         June         June             %
                                          2014       2014            %         2014        2013*      Variance
                        – kg             8 935      8 368            7       36 453       35 374             3
Gold produced
                        – oz           287 266    269 035            7    1 171 987    1 137 297             3
                        – R/kg         341 864    343 527            1      328 931      324 979           (1)
Cash operating costs
                        – US$/oz         1 011        987          (2)          988        1 146            14
                        – kg             8 635      8 502            2       36 288       34 970             4
Gold sold
                        – oz           277 621    273 344            2    1 166 682    1 124 312             4
Underground grade       – g/t             4.66       5.10          (9)         4.77         4.54             5
All–in sustaining       – R/kg         428 383    426 221          (1)      413 433      431 745             4 
costs                   – US$/oz         1 267      1 224          (4)        1 242        1 522            18 
                        – R/kg         435 775    450 528          (3)      432 165      454 725           (5)
Gold price received
                        – US$/oz         1 289      1 294            –        1 299        1 603          (19)
                        – R million       847        924           (8)        3 794        4 581          (17)
Production profit*
                        –US$ million        81         85          (5)          367          519          (29)
Basic (loss)/earnings   – SAc/s          (282)          7      > (100)        (293)        (543)            46
per share*(1)           – USc/s           (27)          1      > (100)         (28)         (62)            55
                        – Rm               129         52         >100          114          224          (49)
Headline earnings
                        – US$m              12          5         >100           11           25          (56)
Headline earnings       – SAc/s             30         12         >100           26           52          (50)
per share*(1)           – USc/s            2.9        1.1         >100          2.5          5.9          (58)

*    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 year ended June 2013 include discontinued operations where indicated

 Shareholder information
 Issued ordinary share capital at 30 June 2014          435 825 447
 Issued ordinary share capital at 31 March 2014         435 693 819
 Issued ordinary share capital at 30 June 2013          435 289 890
 
Market capitalisation
At 30 June 2014 (ZARm)                                       13 576
At 30 June 2014 (US$m)                                        1 276
At 31 March 2014 (ZARm)                                      14 247
At 31 March 2014 (US$m)                                       1 355
At 30 June 2013 (ZARm)                                       15 562
At 30 June 2013 (US$m)                                        1 568
 
Harmony ordinary share and ADR* prices
 12-month high (1 July 2013 – 30 June 2014)
 for ordinary shares                                          R42.47

 12-month low (1 July 2013 – 30 June 2014)
 for ordinary shares                                          R24.48

 12-month high (1 July 2013 – 30 June 2014)
 for ADRs                                                    US$4.33

 12-month low (1 July 2013 – 30 June 2014)
 for ADRs                                                    US$2.36

 Free float                                                    100%

 ADR* ratio                                                      1:1

 JSE Limited                                                    HAR
 Range for quarter
                                                     R27.72 – R35.60
 (1 April– 30 June 2014 closing prices)
 Average daily volume for the quarter
                                                      946 701 shares
 (1 April– 30 June 2014)
 Range for quarter
                                                     R27.25 – R40.32
 (1 January – 31 March 2014 closing prices)
 Average daily volume for the quarter
                                                     1 031 429 shares
 (1 January – 31 March 2014)
 Range for year
                                                     R24.48 – R42.47
 (1 July 2013 – 30 June 2014 closing prices)
 Average daily volume for the year
                                                     1 216 789 shares
 (1 July 2013 – 30 June 2014)
 Range for year
                                                     R33.47 – R85.71
 (1 July 2012 – 30 June 2013 closing prices)
 Average daily volume for the year
                                                     1 753 866 shares
 (1 July 2012 – 30 June 2013)

 New York Stock Exchange including other
                                                               HMY
 US trading platforms
 Range for quarter
                                                   US$2.61 – US$3.34
 (1 April– 30 June 2014 closing prices)
 Average daily volume for the quarter
                                                           2 020 458
 (1 April– 30 June 2014)
 Range for quarter
                                                   US$2.52 – US$3.77
 (1 January – 31 March 2014 closing prices)
 Average daily volume for the quarter
                                                           3 102 376
 (1 January – 31 March 2014)
 Range for year
                                                   US$2.36 – US$4.33
 (1 July 2013 – 30 June 2014 closing prices)
 Average daily volume for the year
                                                           2 923 933
 (1 July 2013 – 30 June 2014)
 Range for year
                                                  US$2.30 – US$10.34
 (1 July 2012 – 30 June 2013 closing prices)
 Average daily volume for the year
                                                           2 484 062
 (1 July 2012 – 30 June 2013)
 
Investors' calendar
 Release of Harmony's Integrated Annual
                                                     23 October 2014
 Report of FY14
 Q1 FY15 presentation (webcast and
                                                    5 November 2014
 conference calls only)
 Annual General Meeting                            21 November 2014
 Q2 FY15 live presentation from Cape Town           9 February 2015
 Q3 FY15 presentation (webcast and
                                                         8 May 2015
 conference calls only)
 Q4 FY15 live presentation from Johannesburg         18 August 2015

*ADR: American Depository Receipts

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 2014 will be available on our
website (www.harmony.co.za/investors) on 23 October 2014.

CONTACT DETAILS

Corporate Office

Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue
Randfontein, 1759, South Africa
Telephone: +27 (0)11 411 2000
Website: www.harmony.co.za

Directors

P T Motsepe* Chairman
J M Motloba*^ Deputy Chairman
G P Briggs Chief Executive Officer
F Abbott Financial Director
H E Mashego Executive Director
F F T De Buck*^ Lead independent director
J A Chissano*1^, K V Dicks*^, Dr D S S Lushaba*^,
C E Markus*^, M Msimang*^, K T Nondumo*^,
V P Pillay *^, J Wetton*^, A J Wilkens*

* Non-executive
^ Independent
1 Mozambican

Investor relations team

Email: HarmonyIR@harmony.co.za

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

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

Company Secretary

Riana Bisschoff
Telephone: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
E-mail: riana.bisschoff@harmony.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 (0)86 154 6572
Fax: +27 (0)86 674 4381

ADR Depositary

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email queries: db@amstock.com
Toll free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334

Sponsor

J.P. Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo
Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
Telephone: +27 (0)11 507 0300
Fax: +27 (0)11 507 0503

Trading Symbols

JSE Limited: HAR
New York Stock Exchange, Inc: HMY
Berlin Stock Exchange: HAM1

Registration number

1950/038232/06
Incorporated in the Republic of South Africa

ISIN

ZAE000015228

Competent person's declaration

Harmony reports in terms of the South African Code for Reporting of
Exploration Results, Mineral Resources and Mineral Reserves (SAMREC).
In South Africa Harmony appoints an ore reserve manager at each of its
operations who takes responsibility for the compilation and reporting
of mineral resources and mineral reserves at their operations. In PNG,
competent persons are appointed for the mineral resources and mineral
reserves for specific projects and operations.

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, BSc (Hons),
MSc, MBA, Pr. Sci. Nat., who has 19 years' relevant experience and
is registered with the South African Council for Natural Scientific
Professions (SACNASP) and a member of the South African Institute of
Mining and Metallurgy (SAIMM).

Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc, who
has 26 years relevant experience and is a member of the Australasian
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 2014 is included
in this report.

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.

Section 45 (5) (a) compliance announcement

ANNOUNCEMENT FOR COMPLIANCE REASONS ONLY: NOTICE, AS
REQUIRED IN TERMS OF SECTION 45 (5) (a) OF THE COMPANIES ACT,
71 OF 2008 (THE ACT) FOR THE GRANTING OF FINANCIAL ASSISTANCE
Notice is hereby given, as required in terms of section 45 (5) (a) of the
Act that the Board of directors (the Board) of the company at a meeting
held on 11 August 2014, authorised the company to provide financial
assistance to any 1 (one) or more related or inter-related companies
or corporations of the Company and/or to any 1 (one) or more juristic
persons who are members of, or are related to, any such related or
inter-related company or corporation in terms of section 45 of the Act,
pursuant to the authority granted to the Board by shareholders at the
annual general meeting of the company, held on 5 December 2013.
The aggregate financial exposure of the Company in respect of any
financial assistance in terms of this resolution shall not exceed R1 billion.
In terms of section 45 (3) (b) of the Companies Act, the Board is
satisfied that:

-   immediately after providing financial assistance, the Company
    would satisfy the solvency and liquidity test as set out in section 4
    of the Act; and
-   the terms under which the financial assistance is proposed to be
    given under the resolution are fair and reasonable to the Company.

Message from the chief executive officer

1.  Our strategy

We revisit our strategy throughout the year to ensure that it remains
relevant and appropriate, while being responsive and adaptive to both
internal and external changes. The Harmony board met early in July
2014 to revisit the company strategy.

We believe that Harmony has four key advantages:

-  We continuously regenerate ourselves in order to be efficient
   miners – we keep our costs down, ensure future growth and
   profitability, and are willing to make difficult decisions that will serve
   our company in the long run. All decisions are made based on our
   values, with safety being our core value.

-  We are experienced explorers, mine developers and operators
   in emerging economies. We have a diversified portfolio as well as
   a significant exploration land holding in one of the most prospective
   geological areas in the world (PNG). In addition, we invest time and
   money into building win-win relationships with our stakeholders
   that allow us to confidently manage our socio-political environment
   and earn our social license to operate.

-  We fund our own capital to ensure future growth and
   profitability and invest in our assets even during lower gold price
   cycles, allowing us to have low debt, financial flexibility and be
   highly geared against the gold price.

-  Golpu is a large resource of high-grade, low cost copper and
   gold. A concept study is progressing on a scalable mine,
   which will require less capital to start up, but has the potential for a
   long life that will be flexible and adaptable in multiple copper price
   cycles. We are also de-risking its development thanks to our project
   development experience, our operational base and support services
   in PNG and the orebody's high grade zones.

We want Harmony to be safe, highly profitable and generate the cash
necessary to underpin the development of Golpu, be a sought-after
investment, be robust at any gold or copper price, have a diverse risk
portfolio (with exposure to South Africa, PNG, gold and copper) and to
continue growing our quality ounces. Our strategy for 2015 to 2020,
is to improve our margins through safely delivering on our plans and
increase free cash flow through higher grades and cost control; retain 
a flexible balance sheet; grow our value per share of our PNG assets, 
complete the Golpu studies and it is our intention to build the Golpu mine.
We also intend identify acquisition opportunities of open pit mines and 
bulk projects outside South Africa.

2. Safety

Safety will continue to be Harmony's first priority. Safety workshops
are ongoing and we have increased our efforts to communicate safety 
messages to all employees. Our messages stress the value of each life
and encourage employees to stick to safety standards, to think before
they act and to act on their right to withdraw from an unsafe area. 
High level audits are ongoing; regular underground visits by members of
the executive team and management take place and there are full time
safety representatives at each mine.

Although we manage our capital expenditure in a conservative manner,
it is not done at the expense of safety. Safety comes before production.
Our executive team is involved in a number of industry initiatives in
which leading practices are applied, which have the potential to improve
health and safety performance significantly. Safety is taken seriously at
all levels and takes priority in everything we do.

The lost time- and fatality injury frequency rates have shown an
improvement quarter on quarter and a number of operations achieved
excellent safety results. It is with great sadness though that three
employees lost their lives in three separate accidents during the quarter.
My heartfelt condolences go to the family, friends and colleagues of:

Moji Augustinus Matela (team leader at Tshepong), Amos Twala (team
leader at Bambanani) and Soba Mboyana (winch operator at Masimong).

An independent review of the Harmony safety strategy was conducted
during the quarter and actions were implemented based on the
recommendations.

More information on how we approach safety can be found in our safety
fact sheet at http://www.harmony.co.za/investors/news-and-events/
fact-sheets. Details on our safety performance for the past year and
our targets for the coming financial year can be found in our integrated
report, which will be published towards the end of October 2014.

3.  International Mining Industry Underwriters' (IMIU) risk assessment

Our mining assets are insured for both business interruption as well as
property risk. IMIU is a globally recognised market leader in insuring all
types of mining, including underground exposures and is one of the
lead insurers partaking in Harmony's asset insurance programme. All
our mining assets are subject to an annual risk assessment by specialist
engineers and IMIU's technical team assesses the merits of each and
every risk that IMIU underwrites.

Harmony commenced with the annual IMIU surveys during 2003. Of
significance is the continuous improvement in our operations' scores
in comparison with IMIU's global average score. IMIU's 2014 global
mining average is calculated based on 390 mining operations surveyed
worldwide. 93% of Harmony's operations scored higher than the
global average during 2014 in respect of the measures implemented
to manage property and machinery risks. Overall, based on IMIU's
insurability matrix, a steep improvement in our operations' overall
property risk management has been evident especially over the past
3 years. This is indicative of the continued capital investment in our
infrastructure to maintain safe operating conditions.

Our South African asset portfolio is subject to routine maintenance
which is facilitated through an electronic system, as well as systemised
continuous condition monitoring protocols. We continue to invest in
security upgrades, metallurgical plant upgrades as well as the upgrade
and continuous maintenance of our existing asset portfolio.

4.  Gold market

Harmony remains bullish about gold in the long term. Following the
sharp price decline during 2013, capital expenditure in the gold industry
has been reduced and many projects have been stalled or delayed. This
is expected to lead to a reduction in world gold production, possibly
from as early as 2015. Demand from central banks, especially in the
East, is increasing and the long term demand trend for gold bars
and coins is rising with a notable increase in demand from the East.

In addition, total exchange traded funds' holdings have stabilised
and physical demand rebounds strongly when the price declines. This
confirms gold's long history as an investment tool and store of value. It
remains a secure investment and while the price may fluctuate, gold will
always be in demand.

The average rand gold price received decreased from R454 725/kg in
financial year 2013 (FY13) to R432 165/kg in financial year 2014 (FY14).
The decrease was the result of a 19% decrease in the US dollar gold price
received for FY14 – from US$1 603/oz to US$1 299/oz. The decrease
in the US dollar gold price was partially offset by the weakening of the
rand against the US dollar in FY14 to R10.35/US$ (R8.82/US$ in FY13).

5.  Operational results

Year on year

Gold production for FY14 increased by 3% to 36 453kg, compared to
35 374kg for financial year 2013, with a 4% decrease in all-in sustaining
costs from R431 745/kg in FY13, to R413 433/kg in FY14.

The following operations showed marked improvements year on year:

-  Kusasalethu (+1 954kg) increased its recovered grade by 7% from
   3.85g/t to 4.11g/t. The previous year was severely affected by strikes
   and the increase in gold production in FY14 indicates the beginning
   of a return to normal production levels.

-  Bambanani (+970kg) increased its recovered grade by 28% to
   12.50g/t, while tonnes milled increased by 26% year on year, as the
   shaft pillar mining begins to ramp up.

-  Hidden Valley (+648kg) had a significant turn around in its
   performance during FY14. A 15% improvement in the gold recovery
   grade was achieved (from 1.43g/t for FY13 to 1.65g/t in the year
   under review), while 9% more tonnes (at 2 001 000t) were milled
   during the year.

-  Phakisa (+542kg) continues to build up its production, with a 13%
   increase in tonnes milled at 577 000t year on year. The recovered
   grade also improved by 9%, from 4.75g/t to 5.16g/t.

-  Target 1 (+526kg) had a very good year, with a 5% improvement in
   recovered grade to 5.83g/t, well above its reserve grade combined
   with an 8% increase in tonnes milled at 771 000t.

The following operations' year on year performance was less
encouraging:

-  Doornkop (-1 028kg) – the accident in the March 2014 quarter and
   the closure of the Kimberley reef section resulted in a 2% decrease in
   recovered grade to 3.53g/t, while tonnes milled were also adversely
   affected.

-  Masimong (-898kg) underperformed during the year with a 3%
   decrease in recovered grade and a 23% decrease in tonnes milled
   (from 868 000t to 670 000t).

-  Joel (-893kg) suffered losses due to the shaft bottom that was
   flooded. Although this has been rectified, Joel's recovery grade was
   19% lower year on year at 4.26g/t and in FY14, tonnes milled for
   FY14 also decreased by 10%.

-  Dumps (-376kg) milled 13% less tonnes in FY14 and recovery grade
   was 18% lower at 0.31g/t (FY13:0.38g/t).

-  Target 3's (-213kg) recovered grade decreased by 7% year on year
   (from 5.03g/to to 4.69g/t) while tonnes milled decreased by 7% to
   301 000t.

-  Kalgold (-170kg) recorded a lower recovery grade for FY14 at 0.79g/t
   and throughput increased by 5% to 1 472 000t.

Production profit for FY14 was R3.8 billion compared to R4.6 billion in
FY13, mainly due to a 5% decrease in the rand gold price received and
a 4% (R495 million) increase in cash operating costs for FY14.

Operational capital expenditure for FY14 decreased by 19%
to R2.5 billion as planned, compared to R3.1 billion in FY13, mainly
due to a decrease in capital expenditure at Hidden Valley in Papua New
Guinea (PNG).

Quarter on quarter

Gold production for the June 2014 quarter increased by 7% (567kg)
from 8 368kg in the March 2014 quarter to 8 935kg in the June quarter.
All-in sustaining costs remained steady at R428 383/kg.

Production profit for the quarter was R847 million compared to
R924 million in the March 2014 quarter, mainly due to a lower rand
gold price. The rand gold price received decreased by 3% from
R450 528/kg in the March 2014 quarter to R435 775/kg in the June
2014 quarter. The decrease was as a result of the rand dollar exchange
rate strengthening by 3% against the US dollar to R10.51/US$. The
US dollar gold price received for the June 2014 quarter of $1 289/oz,
was slightly lower than in the March quarter 2014.

Cash operating costs increased by 6% (R180 million) in the June 2014
quarter, mainly due to an increase in consumables as well as higher
winter electricity tariffs for the South African operations.

Capital expenditure for the June 2014 quarter increased by 17% to
R676 million, compared to R579 million in the March 2014 quarter,
mainly at the South African underground operations.

6.  OUR FY15 BUSINESS PLANS

We completed our business plans for FY15 in August 2014. Particular focus
was placed on the following:

-  improving operating margins
-  robust and realistic operating planning
-  increasing free cash flow through higher grades and cost control
-  capital expenditure which ensures returns are made within a
   reasonable period of time.

We believe that our FY15 business plans adhere to the factors set
out above. Every effort will be made to ensure that our performance
exceeds market expectations.

7.  Financial results

Year on year

Revenue

The 4% increase in gold sold from 34 970kg in FY13 to 36 288kg in
FY14, was more than offset by a 5% decrease in average gold price
received, resulting in a decrease in revenue of R220 million year on year.

Production costs

The annual production cost increase was well contained from
R11.3 billion in FY13 to R11.9 billion in FY14, or 5%, despite high
electricity and labour cost increases.

Other items in cost of sales

Other items included in cost of sales for the year ended 30 June 2014
include employment termination and restructuring costs of R274 million
relating mainly to the voluntary retrenchment packages offered in South
Africa and the restructuring at the Hidden Valley operation.

Loss per share

The loss per share of 293 SA cents for the year ended 30 June 2014
reduced from the loss per share of 543 SA cents for the year ended
30 June 2013.

Borrowings

Total borrowings increased by R322 million to R2 860 million in the year
ended 30 June 2014. This is due to a total drawdown of US$60 million
(R612 million) and a foreign exchange translation loss of R155 million
recorded on the US$ syndicated facility during the year. This was partially
offset by the repayment of R467 million made during the year on the
Nedbank revolving credit facility.

Quarter on quarter

Impairment of assets

The impairment in the June 2014 quarter consists of an impairment of
R1.38 billion in respect to Phakisa (includes goodwill of R1.31 billion), R7 million
on Steyn 2 and R21 million on St Helena, following the annual life-of-
mine reassessment.

The impairment recorded in respect of Phakisa resulted from the combination of
a number of factors, including the removal of the decline project from
the business plan, new revenue and cost estimates in the business plan,
and using higher discount rates as determined by market parameters.

(Loss)/profit from associates

The June 2014 quarter includes the provision of the loss related to the
inventory discrepancy at Rand Refinery of R127 million.

Deferred taxation

A deferred tax credit of R337 million was recorded following the net
decrease in the deferred tax rates year on year for the South African
companies.

Net (loss)/profit

The net loss for the June 2014 quarter was R1.22 billion, compared to
a net profit of R31 million in the March 2014 quarter, mainly due to the
impairment of R1.41 billion recorded.

(Loss)/profit per share

The loss per share of 282 SA cents in the June 2014 quarter reduced
from the earnings per share of 7 SA cents in the March 2014 quarter.

Non-current assets and assets of disposal groups classified as
held for sale

The sale of the investment in Witwatersrand Consolidated Gold
Resources Limited (Wits Gold) was completed during the June 2014
quarter and the consideration for the sale of R51 million was received
in April 2014. The accumulated gains of R14 million were reclassified to
the income statement and resulted in a profit on disposal.

8. Golpu

The Golpu resource definition drilling program is now complete for FY14
and there are no new assay results to report this quarter. A conceptual
study report on four, high-grade, sub-level cave start-up mine options
was completed which has progressed into pre-feasibility study.

Mine options at 2.5 Mtpa and 5 Mtpa were selected for progression to 
pre-feasibility study level which will be completed when the gated 
process has been completed toward the end of the calendar year.


9.  Employee relations

The labour relations climate in Harmony and in the gold sector has
remained relatively stable over the quarter under review.

10.  Bio-energy project

Harmony is implementing a bio-energy project involving the procreation
of biocrops on mine-impacted land in the Free State to generate natural
gas as a substitute for fossil fuels in the company's Harmony 1 Gold
Plant elution and carbon regeneration circuits. Phase 1 of the project
aims to deliver 71,000GJ of energy within 18 months with production
being ramped up to generate 187,000GJ within 36 months. This project
aims to turn mine-impacted land to account by creating a value-adding
use for it and, in so doing, promote skills development and job creation
for communities and ensure a sustainable legacy in the Free State.

As part of this process, we will convert electrical and polyfuel heating of
elution water at our gold plants to biogas heating.

11.  In conclusion

Our strategy is to focus on improving our margins, growing the value
per share of our PNG assets and we intend identifying acquisition
opportunities outside South Africa. We remain committed to positioning
Harmony as a competitive, value focused gold mining company.

Graham Briggs
Chief Executive Officer

Summary update of Harmony's Mineral Resources and Mineral Reserves as at 30 June 2014

Harmony's statement of Mineral Resources and Mineral Reserves as
at 30 June 2014 is produced in accordance with the South African
Code for Reporting of Exploration Results, Mineral Resources and
Mineral Reserves (SAMREC) and the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC).

This report only provides a summary of the update, while the
detailed statement of the Mineral Resources and Mineral Reserves
will be published in the Integrated Report on 23 October 2014,
which will be available at www.harmony.co.za/investors. The Mineral
Resources are reported inclusive of the Mineral Reserves. We use
certain terms in this summary such as 'Measured', 'Indicated'
and 'Inferred' Resources, which the United States' (US) Securities
and Exchange Commission (SEC) guidelines strictly prohibit
US-registered companies from including in their filings with the SEC.
US investors are urged to closely consider the disclosure in our Form
20-F which will also be available after 23 October 2014.

The Company's attributable gold equivalent Mineral Resources are
declared as 133.8 million ounces (Moz) as at 30 June 2014, a 9.4%
decrease year-on-year from the 147.7Moz declared on 30 June 2013.
The 9.4% decrease collectively represents depletion during the year
and geology related changes. The gold Resource ounces in South
Africa represent 69%, while Papua New Guinea (PNG) gold and gold
equivalent ounces represent 31% of Harmony's total gold equivalent
Resources as at 30 June 2014.

As at 30 June 2014, Harmony's attributable gold equivalent Mineral
Reserves amounted to 49.5Moz of gold, a 3.9% decrease from the
51.5Moz declared on 30 June 2013. The 3.9% decrease collectively
represents depletion during the year, a change in Reserves from surface
sources together with some scope changes at some of the underground
operations. The gold Reserve ounces in South Africa represent 57%
while the PNG gold and gold equivalent ounces represent 43% of
Harmony's total Reserves as at 30 June 2014.

There are no changes in the Reserves of Wafi-Golpu (jointly held by
Harmony and Newcrest Mining Limited in a 50/50 joint venture) since the
pre-feasibility study was completed in 2012. Changes to the Resources
are as a result of additional drilling and a more robust geological model.
On a 100% basis, Golpu continues to host high grade, quality Reserves
of 450Mt, containing 12.4Moz of gold and 5.4 million tonnes (Mt) of
copper.

In converting the Mineral Resources to Mineral Reserves the following
parameters were applied:

-  for the South African assets a gold price of R425 000/kg;
-  the Hidden Valley operations and Wafi-Golpu project in the Morobe
   Mining Joint Venture applied prices of US$1 250/oz Au, US$21/oz Ag,
   US$15/lb Mo and US$3.10/lb Cu. For Wafi-Golpu, gold
   equivalent ounces are calculated assuming a US$1400/oz Au and
   US$3.10/lb Cu and for Hidden Valley US$23.00/oz Ag with 100%
   recovery assumed for all metals.

Harmony's South African Mineral Resources were reviewed and
audited by SRK Consulting Engineers and Scientists for compliance
with SAMREC. The Golpu Mineral Resources were audited by AMC
Consultants Pty Ltd for compliance with the standards set out in JORC
Code. Other Harmony Papua New Guinea Mineral Resources and Ore
Reserves have been reviewed in previous years, but these reviews were
not updated for this declaration as there have been no material changes
to calculation methodologies.

Note: Au = gold; Cu = copper; Ag = Silver, Mo = Molybdenum

Summary of Mineral Resources and Mineral Reserves as at 30 June 2014

                                    Measured                      Indicated                      Inferred                      Total
                          Tonnes                Gold   Tonnes                  Gold    Tonnes                 Gold    Tonnes                Gold
Resources                   (Mt)       g/t    '000oz     (Mt)        g/t     '000oz      (Mt)       g/t     '000oz      (Mt)      g/t     '000oz
SA underground              77.7      9.31    23 242     83.4       9.25     24 808     155.2      7.07     35 262     316.3     8.19     83 312
SA surface incl Kalgold    391.3      0.28     3 594    680.0       0.23      5 198      51.3      0.47        769   1 122.6     0.26      9 561
Total South Africa         469.0              26 836    763.4                30 006     206.5               36 031   1 438.9              92 873
Hidden Valley*               1.2      1.15        44     48.7       1.59      2 505       2.8      1.24        112      52.7     1.57      2 661
Wafi-Golpu system*                                 –    484.9       0.74     11 580     140.0      0.59      2 649     624.9     0.71     14 229
Total Papua New Guinea       1.2                  44    533.6                14 085     142.8                2 761     677.6              16 890
Total gold Resources       470.2              26 880  1 297.0                44 091     349.3               38 792   2 116.5             109 763
Hidden Valley – gold  
equivalent ounces*                                14                            792                             45                           850
Wafi-Golpu – gold  
equivalent ounces*                                                           19 521                          3 620                        23 141
Total Gold Equivalen
Resources                  470.2              26 894  1 297.0                64 404     349.3               42 457   2 116.5             133 754

                                                    Proved                       Probable                        Total
                                          Tonnes                Gold   Tonnes                 Gold      Tonnes               Gold
Reserves                                    (Mt)       g/t    '000oz     (Mt)        g/t    '000oz        (Mt)      g/t    '000oz
SA underground                              54.4      5.71     9 978     54.4       5.67     9 924       108.8     5.69    19 902
SA surface incl Kalgold                    361.0      0.28     3 303    608.7       0.24     4 739       969.7     0.26     8 042
Total South Africa                         415.4              13 281    663.1               14 663     1 078.5             27 944
Hidden Valley*                               1.1      1.13        41     27.0       1.78     1 547        28.1     1.76     1 588
Wafi-Golpu system*                                                      225.0       0.86     6 194         225     0.86     6 194
Total Papua New Guinea                       1.1                  41    252.0                7 741       253.1              7 782
Total gold Reserves                        416.5              13 322    915.1               22 404     1 331.6             35 726
Hidden Valley – gold equivalent ounces*                           11                           456                            466
Wafi-Golpu – gold equivalent ounces*                                                        13 265                         13 265
Total Gold Equivalent Reserves             416.5              13 333    915.1               36 125     1 331.6             49 457

*Represents Harmony's 50% portion

OPERATIONAL RESULTS – Quarter on quarter   (Rand/Metric) (US$/Imperial)

                                                                                                                                              South Africa

                                                                                                        Underground production                                                                    Surface production
                                 Three                                                                                                                                                                                                   Total
                                months                                                                            Bambanani                                                    Total                                          Total      South      Hidden        Total
                                 ended  Kusasalethu    Doornkop    Phakisa   Tshepong     Masimong    Target 1      Steyn 2         Joel     Unisel         Target 3    Underground    Phoenix      Dumps         Kalgold   Surface     Africa      Valley      Harmony
                                Jun-14          286         161        146        247          156         206           49          152         98               71          1 572      1 564        649             388     2 601      4 173         525        4 698
Ore milled          – t'000
                                Mar-14          226         102        138        232          164         181           61           88         95               73          1 360      1 483        620             356     2 459      3 819         467        4 286
                                Jun-14        1 353         532        763      1 188          616         998          549          619        392              311          7 321        192        225             268       685      8 006         929        8 935
Gold produced       – kg
                                Mar-14          929         434        752      1 024          660       1 173          806          345        458              360          6 941        201        155             255       611      7 552         816        8 368
                                Jun-14       43 500      17 104     24 531     38 195       19 805      32 086       17 651       19 901     12 603            9 999        235 375      6 173      7 234           8 616    22 023    257 398      29 868      287 266
Gold produced       – oz
                                Mar-14       29 868      13 953     24 177     32 922       21 219      37 713       25 914       11 092     14 725           11 574        223 157      6 462      4 983           8 198    19 643    242 800      26 235      269 035
                                Jun-14         4.73        3.30       5.23       4.81         3.95        4.84        11.20         4.07       4.00             4.38           4.66       0.12       0.35            0.69      0.26       1.92        1.77         1.90
Yield               – g/tonne
                                Mar-14         4.11        4.25       5.45       4.41         4.02        6.48        13.21         3.92       4.82             4.93           5.10       0.14       0.25            0.72      0.25       1.98        1.75         1.95

Cash operating                  Jun-14      349 534     521 910    367 172    296 997      396 333     283 327      301 040      283 733    379 821          447 550        346 871    352 250    340 707         372 201   356 264    347 675     291 793      341 864
                    – R/kg
costs                           Mar-14      463 848     582 786    335 239    325 056      356 248     219 864      209 318      450 803    322 395          382 311        341 644    279 746    441 426         404 459   372 810    344 166     337 621      343 527

Cash operating                  Jun-14        1 034       1 544      1 086        879        1 173         838          891          839      1 124            1 324          1 026      1 042      1 008           1 101     1 054      1 029         863        1 011
                    – US$/oz
costs                           Mar-14        1 332       1 674       963         934        1 023         632          601        1 295        926            1 098            981        804      1 268           1 162     1 071        989         970          987

Cash operating                  Jun-14        1 654       1 725      1 919      1 428        1 565       1 373        3 373        1 155      1 519            1 960          1 615         43        118             257        94        667         516          650
                    – R/tonne
costs                           Mar-14        1 907       2 480      1 827      1 435        1 434       1 425        2 766        1 767      1 554            1 885          1 744         38        110             290        93        681         590          671
                                Jun-14        1 131         458        759      1 181          612       1 103          545          544        390              344          7 067        204        225             273       702      7 769         866        8 635
Gold sold           – Kg
                                Mar-14        1 118         491        722        983          634       1 035          774          390        440              317          6 904        220        158             321       699      7 603         899        8 502
                                Jun-14       36 362      14 725     24 402     37 970       19 676      35 462       17 522       17 490     12 539           11 060        227 208      6 559      7 234           8 777    22 570    249 778      27 843      277 621
Gold sold           – oz
                                Mar-14       35 944      15 786     23 213     31 604       20 384      33 276       24 884       12 539     14 146           10 192        221 968      7 073      5 080          10 320    22 473    244 441      28 903      273 344
                                Jun-14      493 055     195 768    332 058    516 839      268 045     482 003      238 972      238 095    170 550          149 999      3 085 384     89 208     93 668         119 767   302 643  3 388 027     374 891    3 762 918
Revenue             (R'000)
                                Mar-14      500 510     223 445    326 249    444 215      286 428     466 477      348 599      176 285    198 666          142 729      3 113 603     97 738     71 013         142 303   311 054  3 424 657     405 728    3 830 385

  Cash operating                Jun-14      472 920     277 656    280 152    352 833      244 141     282 760      165 271      175 631    148 890          139 188      2 539 442     67 632     76 659          99 750   244 041  2 783 483     271 076    3 054 559
                    (R'000)
  costs                         Mar-14      430 915     252 929    252 100    332 857      235 124     257 900      168 710      155 527    147 657          137 632      2 371 351     56 229     68 421         103 137   227 787  2 599 138     275 499    2 874 637

  Inventory                     Jun-14     (83 364)    (33 881)    (5 436)   (11 891)      (3 134)      21 428        2 285     (15 350)    (1 117)           10 593      (119 867)        786      (203)           3 388     3 971  (115 896)    (23 155)    (139 051)
                    (R'000)
  movement                      Mar-14       64 740      20 837   (11 605)   (15 785)      (9 651)    (36 805)     (11 689)       3 609     (6 375)         (19 718)       (22 442)      5 483      (415)          17 747    22 815        373      30 997       31 370
                                Jun-14      389 556     243 775    274 716    340 942      241 007     304 188      167 556      160 281    147 773          149 781      2 419 575     68 418     76 456         103 138   248 012  2 667 587     247 921    2 915 508
Operating costs     (R'000)
                                Mar-14      495 655     273 766    240 495    317 072      225 473     221 095      157 021      159 136    141 282          117 914      2 348 909     61 712     68 006         120 884   250 602  2 599 511     306 496   2 906 007
                                Jun-14      103 499    (48 007)     57 342    175 897       27 038     177 815       71 416       77 814     22 777              218        665 809     20 790     17 212          16 629    54 631    720 440     126 970     847 410
Production profit   (R'000)
                                Mar-14        4 855    (50 321)     85 754    127 143       60 955     245 382      191 578       17 149     57 384           24 815        764 694     36 026      3 007          21 419    60 452    825 146      99 232     924 378
                                Jun-14        9 844     (4 566)      5 454     16 730        2 571      16 913        6 793        7 401      2 167               20         63 327      1 977      1 636           1 582     5 195     68 522      12 076      80 598
Production profit   (US$'000)
                                Mar-14          449     (4 647)      7 921     11 742        5 629      22 662       17 694        1 584      5 300            2 292         70 626      3 328        277           1 978     5 583     76 209       9 165      85 374

Capital                         Jun-14      142 781      59 675     96 274     82 806       46 330      75 609       39 240       36 572     23 209           28 923        631 419        683      3 100           7 026    10 809    642 228      33 561     675 789
                    (R'000)
expenditure                     Mar-14      115 731      54 634     74 573     71 374       43 154      88 100       25 121       28 339     20 524           27 095        548 645        696      2 877           5 478     9 051    557 696      21 225     578 921
                                Jun-14       13 581       5 676      9 157      7 876        4 407       7 192        3 732        3 479      2 208            2 751         60 059         65        295             668     1 028     61 087       3 192      64 279
Capital
                    (US$'000)
expenditure                     Mar-14       10 688       5 046      6 887      6 592        3 985       8 136        2 321        2 617      1 895            2 502         50 669         64        266             506       836     51 505       1 960      53 465

Adjusted                        Jun-14      348 804     548 431    368 133    294 107      395 334     279 358      312 620      299 867    385 498          444 310        347 984    335 444    339 804         396 904   360 742    349 039     288 118     342 933
                    – R/kg
operating costs                 Mar-14      447 045     556 494    340 244    329 294      357 868     218 341      229 506      414 909    328 059          378 538        345 144    280 602    430 417         381 105   360 620    346 691     335 115     345 467
                                Jun-14        1 032       1 622      1 089        870        1 170         826          925          887      1 140            1 314          1 029        992      1 005           1 174     1 067      1 033        847        1 015
Adjusted
                    – US$/oz
operating costs                 Mar-14        1 284       1 599       977         946        1 028         627          659        1 192        942            1 087            991        806      1 236           1 095     1 036        996         955         992

All-in sustaining               Jun-14      489 102     688 392    491 231    375 224      485 991     358 028      362 042      344 922    459 398          538 569        442 360    338 792    363 737         434 223   383 899    437 028     350 783     428 383
                    – R/kg
costs                           Mar-14      566 448     677 873    454 007    415 208      443 606     315 767      255 333      468 583    391 820          476 358        434 202    283 766    465 069         411 143   383 242    429 210     400 943     426 221
                                Jun-14        1 447       2 037      1 453      1 110        1 438       1 059        1 071        1 020      1 359            1 593          1 309      1 002      1 076           1 285     1 136      1 293      1 032        1 267
All-in sustaining
                    – US$/oz
costs                           Mar-14        1 627       1 947      1 304      1 193        1 274         907          733        1 346      1 126            1 368          1 247       815       1 336           1 181     1 101      1 233      1 143        1 224

OPERATING RESULTS – Year on year   (Rand/Metric) (US$/Imperial)

                                                                                                                                                        South Africa

                                                                                                                  Underground production                                                                            Surface production
                                                                                                                                                                                                                                                                     Total
                                 Year                                                                                                                                                           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     Other      Africa       Valley       Harmony
                                Jun-14        1 143         737          577          947          670           771          206          548          408          301           33           6 341      6 073      2 897       1 472       10 442         –      16 783        2 001        18 784
Ore milled          – t'000
                                Jun-13          711       1 008          512        1 040          868           717          164          611          446          323           47           6 447      5 358      3 326       1 398       10 082         –      16 529        1 844        18 373
                                Jun-14        4 694       2 603        2 976        4 223        2 718         4 493        2 576        2 335        1 838        1 413          392          30 261        835        903       1 162        2 900         –      33 161        3 292        36 453
Gold produced       – kg
                                Jun-13        2 740       3 631        2 434        4 154        3 616         3 967        1 606        3 228        1 813        1 626          477          29 292        827      1 279       1 332        3 438         –      32 730        2 644        35 374
                                Jun-14      150 916      83 687       95 680      135 772       87 385       144 453       82 821       75 072       59 093       45 429       12 603         972 911     26 846     29 032      37 358       93 236         –   1 066 147      105 840     1 171 987
Gold produced       – oz
                                Jun-13       88 093     116 738       78 255      133 554      116 256       127 542       51 635      103 782       58 289       52 277       15 335         941 756     26 588     41 121      42 825      110 534         –   1 052 290       85 007     1 137 297
                                Jun-14         4.11        3.53         5.16         4.46         4.06          5.83        12.50         4.26         4.50         4.69        11.88            4.77       0.14       0.31        0.79         0.28         –        1.98         1.65          1.94
Yield               – g/tonne
                                Jun-13         3.85        3.60         4.75         3.99         4.17          5.53         9.79         5.28         4.07         5.03        10.15            4.54       0.15       0.38        0.95         0.34         –        1.98         1.43          1.93

Cash operating                  Jun-14      389 762     420 617      358 995      326 498      360 006       233 487      222 764      294 493      326 466      394 522      263 893         327 866    294 408    363 568     351 670      338 887         –     328 830      329 943       328 931
                    – R/kg
costs                           Jun-13      553 358     296 714      405 077      343 895      272 403       238 840      292 136      206 737      315 136      316 547      286 067         317 478    279 615    337 428     288 147      304 428         –     316 108      434 796       324 979

Cash operating                  Jun-14        1 171       1 264        1 079          981        1 082           702          669          885          981        1 185          793             985        885      1 092       1 057        1 018         –         988          991           988
                    – US$/oz
costs                           Jun-13        1 951       1 046        1 428        1 212          960           842        1 030          729        1 111        1 116        1 009           1 119        986      1 190       1 016        1 073         –       1 114        1 533         1 146

Cash operating                  Jun-14        1 601       1 486        1 852        1 456        1 460         1 361        2 786        1 255        1 471        1 852        3 135           1 565         40        113         278           94         –         650          543           638
                    – R/tonne
costs                           Jun-13        2 132       1 069        1 926        1 374        1 135         1 321        2 861        1 092        1 281        1 594        2 903           1 442         43        130         275          104         –         626          623           626
                                Jun-14        4 531       2 633        2 963        4 204        2 708         4 508        2 567        2 308        1 834        1 409          393          30 058        825        895       1 203        2 923         –      32 981        3 307        36 288
Gold sold           – Kg
                                Jun-13        2 698       3 550        2 423        4 135        3 598         3 925        1 591        3 192        1 804        1 613          473          29 002        805      1 278       1 263        3 346         –      32 348        2 622        34 970
                                Jun-14      145 673      84 653       95 263      135 161       87 064       144 936       82 530       74 204       58 964       45 301       12 635         966 384     26 524     28 775      38 677       93 976         –   1 060 360      106 322     1 166 682
Gold sold           – oz
                                Jun-13       86 742     114 135       77 902      132 944      115 679       126 191       51 152      102 625       58 000       51 859       15 207         932 436     25 882     41 088      40 607      107 577         –   1 040 013       84 299     1 124 312
                                Jun-14    1 959 013   1 126 208    1 283 570    1 822 120    1 170 982     1 947 595    1 110 756      994 583      792 420      608 508      167 938      12 983 693    357 467    385 899     521 812    1 265 178         –  14 248 871    1 433 545    15 682 416
Revenue             (R'000)
                                Jun-13    1 212 834   1 615 027    1 102 618    1 886 777     1 639 903    1 794 310      717 434    1 451 977      824 716      737 285      215 105      13 197 986    365 212    578 805     570 694    1 514 711         –  14 712 697    1 189 031    15 901 728

  Cash operating                Jun-14    1 829 543   1 094 866    1 068 368    1 378 800      978 495     1 049 059      573 839      687 640      600 044      557 459      103 446       9 921 559    245 831    328 302     408 640      982 773         –  10 904 332    1 086 173    11 990 505
                    (R'000)
  costs                         Jun-13    1 516 201   1 077 368      985 957    1 428 541      985 011       947 479      469 171      667 347      571 341      514 705      136 454       9 299 575    231 242    431 570     383 812    1 046 624         –  10 346 199    1 149 601    11 495 800

  Inventory                     Jun-14     (76 931)       3 240      (7 240)     (13 782)        4 109         1 709           59     (19 618)        (280)        (622)        3 268       (106 088)    (5 116)    (4 492)      10 019          411         –    (105 677)       3 520     (102 157)
                    (R'000)
  movement                      Jun-13     (32 663)    (35 084)      (3 626)      (1 514)     (10 316)      (10 387)     (13 307)     (13 356)      (4 018)      (6 242)      (1 552)       (132 065)    (6 306)    (4 707)    (27 909)     (38 922)         –    (170 987)     (4 079)     (175 066)
                                Jun-14    1 752 612   1 098 106    1 061 128    1 365 018      982 604     1 050 768      573 898      668 022      599 764      556 837      106 714       9 815 471    240 715    323 810     418 659      983 184         –   10 798 655   1 089 693    11 888 348
Operating costs     (R'000)
                                Jun-13    1 483 538   1 042 284      982 331    1 427 027      974 695       937 092      455 864      653 991      567 323      508 463      134 902       9 167 510    224 936    426 863     355 903    1 007 702         –   10 175 212   1 145 522    11 320 734
                                Jun-14      206 401      28 102      222 442      457 102      188 378       896 827      536 858      326 561      192 656       51 671       61 224       3 168 222    116 752     62 089     103 153      281 994         –    3 450 216     343 852     3 794 068
Production profit   (R'000)
                                Jun-13    (270 704)     572 743      120 287      459 750      665 208       857 218      261 570      797 986      257 393      228 822       80 203       4 030 476    140 276    151 942     214 791      507 009         –   4 537 485       43 509     4 580 994
                                Jun-14       19 940       2 715       21 490       44 160       18 200        86 642       51 865       31 549       18 613        4 992        5 914         306 080     11 279      5 999       9 965       27 243         –     333 323       33 220       366 543
Production profit   (US$'000)
                                Jun-13     (30 685)      64 922       13 635       52 113       75 402        97 167       29 649       90 453       29 176       25 938        9 092         456 862     15 900     17 224      24 347       57 471         –     514 333        4 932       519 265

Capital                         Jun-14      508 869     237 922      360 120      300 518      167 874       289 408      124 967      144 903       85 613      128 197        1 739       2 350 130      2 310      8 569      33 134       44 013         –   2 394 143      122 346     2 516 489
                    (R'000)
expenditure                     Jun-13      419 566     285 427      337 462      310 494      170 610       331 010      115 390      159 682       77 930      145 073        3 830       2 356 474    156 064     14 744      52 470      223 278    26 544   2 606 296      505 888     3 112 184
                                Jun-14       49 162      22 986       34 791       29 033       16 218        27 960       12 073       13 999        8 271       12 385          168         227 046        223        828       3 201        4 252         –     231 298       11 820       243 118
Capital
                    (US$'000)
expenditure                     Jun-13       47 559      32 354       38 252       35 195       19 339        37 521       13 080       18 100        8 833       16 444          434         267 111     17 690      1 671       5 948       25 309     3 009     295 429       57 343       352 772

Adjusted                        Jun-14      395 061     429 415      365 692      331 640      371 056       237 627      234 117      296 210      334 795      402 113      251 681         333 975    291 815    361 798     356 360      339 808         –     334 502      329 224       334 021
                    – R/kg
operating costs                 Jun-13      571 058     301 531      415 213      354 213      281 455       245 026      297 064      213 772      329 332      320 093      293 125         326 196    280 227    339 889     282 737      303 962         –     323 931      445 555       333 048
                                Jun-14        1 187       1 290        1 099          997        1 115           714          703          890        1 006        1 208          756           1 004        877      1 087       1 071        1 021         –       1 005          985         1 004
Adjusted
                    – US$/oz
operating costs                 Jun-13        2 013       1 063        1 464        1 249          992           864        1 047          754        1 161        1 129        1 033           1 150        988      1 198         997        1 072         –       1 142        1 560         1 174

All-in sustaining               Jun-14      522 347     523 839      486 710      415 061      450 210       312 436      263 867      338 957      397 993      503 810      272 956         418 105    294 615    383 701     397 889      364 396         –     413 270      415 068       413 433
                    – R/kg
costs                           Jun-13      742 033     380 935      549 340      441 108      346 557       338 405      325 497      252 342      388 617      419 004      321 340         411 584    284 911    365 401     329 652      332 542         –     403 856      775 866       431 745
                                Jun-14        1 570       1 574        1 463        1 247        1 353           939          793        1 019        1 196        1 514          820           1 256        885      1 153       1 196        1 095         –       1 242        1 244         1 242
All-in sustaining
                    – US$/oz
costs                           Jun-13        2 616       1 343        1 937        1 555        1 222         1 193        1 148          890        1 370        1 477        1 133           1 451      1 005      1 288       1 162        1 172         –       1 424        2 711         1 522

CONDENSED CONSOLIDATED INCOME STATEMENTS   (Rand)

                                                                           Quarter ended                         Year ended
                                                                30 June         31 March       30 June        30 June        30 June
                                                                   2014             2014          2013           2014           2013
                                                            (Unaudited)      (Unaudited)   (Unaudited)     (Reviewed)      (Audited)
Figures in million                                  Note                                   (Restated)*                   (Restated)*

Continuing operations
Revenue                                                           3 763           3 830          3 483         15 682         15 902
Cost of sales                                          3        (4 941)         (3 595)        (6 171)       (16 088)       (16 448)

   Production costs                                             (2 916)         (2 906)        (2 812)       (11 888)       (11 321)
   Amortisation and depreciation                                  (526)           (475)          (531)        (2 143)        (2 001)
   Impairment of assets                                         (1 410)            (29)        (2 733)        (1 439)        (2 733)
   Other items                                                     (89)           (185)           (95)          (618)          (393)

Gross (loss)/profit                                             (1 178)             235        (2 688)          (406)          (546)
Corporate, administration and other expenditure                   (112)           (109)          (127)          (431)          (465)
Social investment expenditure                                      (21)             (8)           (57)           (88)          (127)
Exploration expenditure                                           (114)            (90)          (219)          (458)          (673)
Profit on sale of property, plant and equipment        5             30               –              –             30            139
Other expenses (net)                                   8           (47)            (22)          (169)          (208)          (350)

Operating (loss)/profit                                         (1 442)               6        (3 260)        (1 561)        (2 022)
(Loss)/profit from associates                          6          (125)              10              –          (108)              –
Profit on disposal/(impairment) of investments         7             14               –              –              7           (88)
Net gain/(loss) on financial instruments                             32              25            (8)            170            173
Investment income                                                    61              64             67            220            185
Finance cost                                                      (101)            (59)           (57)          (277)          (256)

(Loss)/profit before taxation                                   (1 561)              46        (3 258)        (1 549)        (2 008)
Taxation                                                            338            (15)          (239)            279          (655)

   Normal taxation                                                    1              24             78           (24)          (271)
   Deferred taxation                                                337            (39)          (317)            303          (384)

Net (loss)/profit from continuing operations                    (1 223)              31        (3 497)        (1 270)        (2 663)

Discontinued operations
Profit from discontinued operations                                   –               –              –              –            314

Net (loss)/profit for the period                                (1 223)              31        (3 497)        (1 270)        (2 349)

Attributable to:
Owners of the parent                                            (1 223)              31        (3 497)        (1 270)        (2 349)

(Loss)/earnings per ordinary share (cents)             4
(Loss)/earnings from continuing operations                        (282)               7          (808)          (293)          (616)
Earnings from discontinued operations                                 –               –             –               –             73

Total (loss)/earnings                                             (282)               7          (808)          (293)          (543)

Diluted (loss)/earnings per ordinary share (cents)     4
(Loss)/earnings from continuing operations                        (282)               7          (808)          (293)          (616)
Earnings from discontinued operations                                 –               –              –              –             73

Total diluted (loss)/earnings                                     (282)               7          (808)          (293)          (543)

* The audited June 2013 annual results and unaudited June 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                        Year ended
                                                                  30 June        31 March      30 June       30 June       30 June
                                                                     2014            2014         2013          2014          2013
                                                              (Unaudited)     (Unaudited)  (Unaudited)    (Reviewed)     (Audited)
Figures in million                                                                         (Restated)*                 (Restated)*

Net (loss)/profit for the period                                   (1 223)             31      (3 497)       (1 270)       (2 349)
Other comprehensive income/(loss) for the period, net of
income tax                                                             624          (416)           25         (140)           737
Items that may be reclassified subsequently to profit or loss:         655          (416)           25         (109)           737
   Foreign exchange translation                                        668          (421)           26         (108)           742
   Movements on investments                                           (13)              5          (1)           (1)           (5)
Items that will not be reclassified to profit or loss:                (31)              –            –          (31)             –
   Actuarial loss recognised during the year                          (38)              –            –          (38)             –
   Deferred taxation thereon                                             7              –            –             7             –

Total comprehensive (loss)/income for the period                     (599)          (385)      (3 472)       (1 410)       (1 612)

Attributable to:
Owners of the parent                                                 (599)          (385)      (3 472)       (1 410)       (1 612)

* The audited June 2013 annual results and unaudited June 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 CHANGES IN EQUITY (Rand)
for the year ended 30 June 2014

                                                                                        (Accumulated
                                                                 Share       Other    loss)/retained
Figures in million                                      Note   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                                                 –         237                 –         237
Net loss for the period                                              –           –           (1 270)     (1 270)
Other comprehensive loss for the period                              –       (140)                 –       (140)

Balance – 30 June 2014 (Reviewed)                               28 325       3 539             (822)      31 042

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
Issue of shares                                                      1           –                 –           1
Share-based payments                                               (7)         274                 –         267
Net loss for the period                                              –           –           (2 349)     (2 349)
Other comprehensive income for the period                            –         737                 –         737
Option premium on BEE transaction                                    –           2                 –           2
Share of retained earnings on acquisition of associate               –           –                19          19
Dividends paid(1)                                                    –           –             (435)       (435)

Balance – 30 June 2013                                          28 325       3 442               448      32 215


*   The audited June 2013 and 2012 annual 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) 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 provisional financial statements (condensed consolidated financial statements) have been prepared
by Harmony Gold Mining Company Limited's corporate reporting team headed by Mr Herman Perry, supervised by the financial
director, Mr Frank Abbott. They have been approved by the board of Harmony Gold Mining Company Limited on 11 August 2014.
The condensed consolidated financial statements for the 12 months ended 30 June 2014 were reviewed by the group's external
auditors, PricewaterhouseCoopers Incorporated (see note 15).

CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)

                                                                                            At            At           At
                                                                                       30 June      31 March      30 June
                                                                                          2014          2014         2013
                                                                                    (Reviewed)   (Unaudited)    (Audited)
Figures in million                                                            Note                            (Restated)*

ASSETS
Non-current assets
Property, plant and equipment                                                    5      33 069        32 400       32 732
Intangible assets                                                                5         886         2 194        2 191
Restricted cash                                                                             42            40           37
Restricted investments                                                                   2 299         2 225        2 054
Deferred tax assets                                                                         81            84          104
Investments in associates                                                        6           –           125          109
Investments in financial assets                                                              4             4           49
Inventories                                                                                 50            57           57

Total non-current assets                                                                36 431        37 129       37 333

Current assets
Inventories                                                                              1 534         1 306        1 417
Trade and other receivables                                                                951           900        1 162
Income and mining taxes                                                                    110           141          132
Restricted cash                                                                             15            15            –
Cash and cash equivalents                                                                1 829         2 008        2 089
                                                                                         4 439         4 370        4 800
Non-current assets and assets of disposal groups classified as held for sale     7           –            51            –

Total current assets                                                                     4 439         4 421        4 800

Total assets                                                                            40 870        41 550       42 133

EQUITY AND LIABILITIES

Share capital and reserves
Share capital                                                                           28 325        28 325       28 325
Other reserves                                                                           3 539         2 907        3 442
(Accumulated loss)/retained earnings                                                     (822)           401          448

Total equity                                                                            31 042        31 633       32 215

Non-current liabilities
Deferred tax liabilities                                                                 2 680         3 029        3 021
Provision for environmental rehabilitation                                               2 098         2 020        1 997
Retirement benefit obligation                                                              247           205          194
Other non-current liabilities                                                               95            67           55
Borrowings                                                                       8       2 860         2 843        2 252

Total non-current liabilities                                                            7 980         8 164        7 519

Current liabilities
Borrowings                                                                       8           –             –          286
Income and mining taxes                                                                      –             3            4
Trade and other payables                                                                 1 848         1 750        2 109

Total current liabilities                                                                1 848         1 753        2 399

Total equity and liabilities                                                            40 870        41 550       42 133

* The audited June 2013 annual 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                             Year ended
                                                          30 June          31 March        30 June        30 June        30 June
                                                             2014              2014           2013           2014           2013
Figures in million                                    (Unaudited)       (Unaudited)    (Unaudited)     (Reviewed)      (Audited)
Cash flow from operating activities
Cash generated by operations                                  431               755            221          2 124          3 154
Interest and dividends received                                40                34             48            132            138
Interest paid                                                (32)              (39)           (40)          (121)          (125)
Income and mining taxes refunded/(paid)                        31                 –          (129)              3          (312)
 
Cash generated by operating activities                        470               750            100          2 138          2 855
 
Cash flow from investing activities 
Increase in restricted cash                                   (3)               (3)              –            (6)              –
Increase in restricted investments                           (17)                 –              –           (17)              –
Proceeds on disposal of investments                            51                 –              –             51              –
Proceeds on disposal of investment in subsidiary                –                 –              –              –          1 264
Purchase of investments                                         –                 –           (14)              –           (86)
Other investing activities                                      –                 –            (1)           (10)            (4)
Net additions to property, plant and equipment(1)            (687)            (599)          (938)        (2 528)        (3 652)
 
Cash utilised by investing activities                        (656)            (602)          (953)        (2 510)        (2 478)
 
Cash flow from financing activities 
Borrowings raised                                               –                 –              –            612            678
Borrowings repaid                                               –             (462)          (156)          (468)          (333)
Ordinary shares issued – net of expenses                        –                 –              1              –              1
Option premium on BEE transaction                               –                 –              2              –              2
Dividends paid                                                  –                 –              –              –          (435)
 
Cash (utilised)/generated by financing activities               –             (462)          (153)            144           (87)
 
Foreign currency translation adjustments                        7               (1)            (4)           (32)             26
Net (decrease)/increase in cash and cash equivalents        (179)             (315)        (1 010)          (260)            316
Cash and cash equivalents – beginning of period             2 008             2 323          3 099          2 089          1 773
 
Cash and cash equivalents – end of period                   1 829             2 008          2 089          1 829          2 089

(1) The 2013 year includes capital expenditure for Wafi-Golpu and other international projects of R537 million and the June 2013 quarter R133 million.

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

1.    Accounting policies
      Basis of accounting
      The condensed consolidated financial statements for the year ended 30 June 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 Financial
      Pronouncements as issued by the Financial Reporting Standards Council, 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
      IFRS  12   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 for the prior years.

      IFRS 11 requires joint operations to be accounted at the group's interest in the assets, liabilities, revenue and expenses of the joint operation.
      The group only has a joint arrangement in PNG, through its 50% interest in mining and exploration assets located in Morobe province. These
      operations are classified as joint operations under IFRS 11. The joint operations were previously accounted for by proportional consolidation.
      Going forward, the group will account for its interest in assets, liabilities, revenue and expenses of these unincorporated joint operations.

      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 on
      1 July 2011.

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

      The results for the years ended 30 June 2013 and 2012 and the financial position at these dates have been audited but the restatement of the
      results and balances affected by IFRIC 20 have not been audited.

      Reconciliation of the effect of the change in accounting standard:
      Condensed consolidated income statements      
      
                                                                             Quarter ended      Year ended
                                                                                   30 June         30 June
                                                                                      2013            2013
      Figures in million                                                       (Unaudited)       (Audited)
      
      Cost of sales
      Production costs
      As previously reported                                                       (2 844)        (11 400)
      IFRIC 20 adjustment                                                               32              79
      Restated                                                                     (2 812)        (11 321)
      Amortisation and depreciation
      As previously reported                                                         (501)         (1 942)
      IFRIC 20 adjustment                                                             (30)            (59)
      Restated                                                                       (531)         (2 001)
      Increase/decrease in net profit/loss for the period*                               2              20
      * There is no material taxation effect on these items.
      
      Condensed consolidated statements of comprehensive income
                                                                             Quarter ended      Year ended
                                                                                   30 June         30 June
                                                                                      2013            2013
      Figures in million                                                       (Unaudited)       (Audited)
      
      Increase/decrease in net profit/loss for the period*                               2              20
      Other comprehensive income for the period net of income tax
      Foreign exchange translation
      As previously reported                                                            26             749
      IFRIC 20 adjustment                                                                –             (7)
      Restated                                                                          26             742
      Increase/decrease in total comprehensive income/loss for the period                2              13
      * There is no material taxation effect on these items.
      
      Condensed consolidated balance sheets
                                                                                          At            At
                                                                                     30 June       30 June
                                                                                        2013          2012
      Figures in million                                                           (Audited)     (Audited)
      
      Non-current assets
      Property, plant and equipment
      As previously reported                                                          32 820        32 853
      IFRIC 20 adjustment                                                               (88)          (93)
      Restated                                                                        32 732        32 760
      Current assets
      Inventories
      As previously reported                                                           1 425           996
      IFRIC 20 adjustment                                                                (8)          (16)
      Restated                                                                         1 417           980
      Share capital and reserves
      Other reserves
      As previously reported                                                           3 464         2 444
      IFRIC 20 adjustment(1)                                                            (22)          (15)
      Restated                                                                         3 442         2 429
      Retained earnings
      As previously reported                                                             522         3 307
      IFRIC 20 adjustment                                                               (74)          (94)
      Restated                                                                           448         3 213
      Decrease in total equity                                                          (96)         (109)
      
      (1) Translation effect of the IFRIC 20 adjustments on foreign operations.
      
      Loss and headline (loss)/earnings per share
      
                                                                               Quarter ended     Year ended
                                                                                     30 June        30 June
                                                                                        2013           2013
                                                                                 (Unaudited)      (Audited)
      
      Total basic and diluted loss per share (cents)
      As previously reported                                                           (809)          (548)
      IFRIC 20 adjustment                                                                  1              5
      Restated                                                                         (808)          (543)
      Total headline (loss)/earnings
      Figures in million
      As previously reported                                                           (804)            204
      IFRIC 20 adjustment                                                                  2             20
      Restated                                                                         (802)            224
      Total headline and diluted headline (loss)/earnings per share (cents)
      As previously reported                                                           (186)             47
      IFRIC 20 adjustment                                                                  1              5
      
      Restated                                                                         (185)             52

3.    Cost of sales
                                                                         Quarter ended                           Year ended
                                                            30 June           31 March        30 June        30 June         30 June
                                                               2014               2014           2013           2014            2013
                                                        (Unaudited)        (Unaudited)    (Unaudited)     (Reviewed)       (Audited)
      Figures in million                                                                  (Restated)*                    (Restated)*
      Production costs – excluding royalty                    2 891              2 881          2 767         11 761          11 104
      Royalty expense                                            25                 25             45            127             217
      Amortisation and depreciation                             526                475            531          2 143           2 001
      Impairment of assets(1)                                 1 410                 29          2 733          1 439           2 733
      Rehabilitation (credit)/expenditure(2)                    (9)                17            (40)              8            (24)
      Care and maintenance cost of restructured shafts           13                 16             16             66              68
      Employment termination and restructuring costs(3)          40                 90             39            274              46
      Share-based payments                                       44                 62             45            270             266
      Other                                                       1                 –              35              –              37

      Total cost of sales                                     4 941              3 595          6 171         16 088          16 448

      * The audited June 2013 annual results and unaudited June 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 impairment in the June 2014 quarter consists of an impairment of R1.38 billion on Phakisa, R7 million on Steyn 2 (March 2014: R29 million) and R21 million on St Helena. The June
          2013 impairment consists of an impairment of R2.7 billion on Hidden Valley, R31 million on St Helena and R27 million on Steyn 2. Refer to note 5 for further details.
      (2) Included in the total for the June 2014 quarter is a credit of R21 million relating to the change in estimate following the annual reassessment.
      (3) Included are amounts relating to the restructuring at Hidden Valley and the voluntary retrenchment packages offered in South Africa.
      

4.    Earnings/(loss) per share
      
                                                                               Quarter ended                         Year ended
                                                                     30 June        31 March         30 June        30 June        30 June
                                                                        2014            2014            2013           2014           2013
                                                                 (Unaudited)     (Unaudited)     (Unaudited)     (Reviewed)      (Audited)
                                                                                                 (Restated)*                   (Restated)*
      
      Weighted average number of shares (million)                      433.9           433.3           432.6          433.2          431.9
      Weighted average number of diluted shares (million)              435.2           434.6           433.1          434.7          432.7
      Total (loss)/earnings per share (cents):
      Basic (loss)/earnings                                            (282)               7           (808)          (293)          (543)
      Diluted (loss)/earnings                                          (282)               7           (808)          (293)          (543)
      Headline earnings/(loss)                                            30              12           (185)             26             52
      – from continuing operations                                        30              12           (185)             26              3
      – from discontinued operations                                       –               –              –               –             49
      Diluted headline earnings/(loss)                                    30              12           (185)             26             52
      – from continuing operations                                        30              12           (185)             26              3
      – from discontinued operations                                       –               –               –              –             49
      Figures in million
      
      Reconciliation of headline earnings/(loss):
      Continuing operations
      Net (loss)/profit                                              (1 223)              31         (3 497)        (1 270)        (2 663)
      Adjusted for:
      (Profit on disposal)/impairment of investments(1)                 (14)               –              –             (7)             88
      Impairment of assets                                             1 410              29          2 733           1 439          2 733
      Taxation effect on impairment of assets                           (20)             (8)           (38)            (24)           (38)
      Profit on sale of property, plant and equipment                   (30)              –              –             (30)          (139)
      Taxation effect of profit on sale of property, plant and
      equipment                                                            6              –               –               6             31
      
      Headline earnings/(loss)                                           129              52           (802)            114             12
      
      Discontinued operations
      Net profit                                                           –              –               –               –            314
      Adjusted for:
      Profit on sale of investment in subsidiary(1)                        –              –               –               –          (102)
      
      Headline earnings                                                    –              –               –               –            212
      
      Total headline earnings/(loss)                                     129              52           (802)            114            224
      
      (1) There is no taxation effect on these items.
      *   The audited June 2013 annual results and unaudited June 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.    Property, plant and equipment and intangible assets
      (a) Impairment
          One of the most significant assumptions that influence the life-of-mine plans and therefore impairment is the expected gold price.
          During this year's planning and testing, we used a long term gold price of US$1 300 per ounce and exchange rates of R10.17/US$,
          A$0.92/US$ and PGK0.404/US$. Post-tax real discount rates ranging between 7.03% and 11.56% (2013: 6.21% and 10.20%), depending
          on the asset, were used to determine the recoverable amounts (generally fair value less costs to sell).

          During the 2014 year, an impairment of R1.38 billion was recognised on Phakisa, following a change in the life-of-mine plan during the
          annual planning process, combined with the factors discussed above. The change resulted after the completion of a feasibility study on the
          proposed decline shaft, which showed a large amount of capital required, leading to negative cash flows in the short and medium term.
          Management therefore decided not to proceed with the sinking of the decline shaft. The impairment comprises of R1.31 billion goodwill
          and R0.07 billion other assets. The recoverable amount of Phakisa is R4.26 billion.

          Impairments on Steyn 2 (R36 million) and St Helena (R21 million) were recognised following the decision not to mine these operations in
          future. The operations were impaired to the recoverable amount of Rnil.

          A 10% decrease in the gold price used in the models as well as a 10% decrease in the silver price for Hidden Valley would have resulted
          in an additional impairment at Kalgold of R23 million, Phakisa R1.0 billion, Target 1 of R 704 million and Hidden Valley of R1.5 billion.

      (b) Profit on sale of property, plant and equipment
          During May 2014, the ground swap between Joel mine and Sibanye's Beatrix mine was completed, resulting in a non-cash profit being
          recognised for the difference between carrying value of the Joel portion and the fair value of the Beatrix portion.

6.    Investment in associate
      Harmony holds a 10.38% share in Rand Refinery Proprietary Limited (Rand Refinery) as at 30 June 2014 and has equity accounted for its share
      of the profits based on Rand Refinery's most recent available 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 and therefore has not been able to finalise its annual financial
      statements for the year. 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. Thus far a discrepancy has been noted between the actual inventory and the accounting records of approximately
      87 000 ounces of gold. Due to the uncertainty surrounding the matter, Harmony has provided for its full share of the loss. Therefore, Harmony
      has recognised a R127 million loss in the June 2014 quarter to account for its share of this discrepancy.

      As a precautionary measure following the challenges experienced by the implementation of the software system, Rand Refinery's shareholders
      have extended Rand Refinery an irrevocable, subordinated loan facility of up to R1.2 billion, which can only be drawn down when there is
      confirmation that an actual loss has been incurred. The facility, if drawn down, is convertible to equity after a period of two years. Harmony's
      maximum commitment in terms of this facility will be R140 million. Interest on the facility will be JIBAR plus a margin of 3.5%. The agreements
      relating to the facility were signed on 23 July 2014.

7.    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 represented
      Harmony's fair value stake in Wits Gold was classified as a non-current asset held for sale (formerly classified as Investment in financial assets)
      under IFRS 5. On 14 April 2014, a total consideration of R51 million was received. The accumulated gains recognised in equity were reclassified
      to the income statement, resulting in a profit on disposal.

8.    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 R155 million being recorded for the year, 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 lender 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.

9.    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
                                                            30 June          31 March          30 June
                                                               2014              2014             2013
      Figures in million                                 (Reviewed)       (Unaudited)        (Audited)
      Available-for-sale financial assets(1)
      Level 1                                                     –                51               44
      Level 2                                                     –                 –                –
      Level 3                                                     4                 4                5
      Fair value through profit or loss(2)
      Level 1                                                     –                 –                –
      Level 2                                                   798               768            1 041
      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 not 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.

10.  Commitments and contingencies
      
                                                                   At               At               At
                                                              30 June         31 March          30 June
                                                                 2014             2014             2013
      Figures in million                                   (Reviewed)      (Unaudited)        (Audited)
      Capital expenditure commitments:
      Contracts for capital expenditure                           157              245              416
      Authorised by the directors but not contracted for          519              491            1 545
      
                                                                  676              736            1 961
      
     This expenditure will be financed from existing resources and, where appropriate, borrowings.

     Contingent liabilities

     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 except as
     discussed below.

     (a) US class action

         Following the dismissal of the appeal by the plaintiff in the United States Supreme Court, the case has been concluded. The matter will be
         settled once the administrative processes have been completed.

11.  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, financial director, purchased 65 600 shares in the company.

12.  Subsequent events
     (a)  During July 2014, Harmony extended an irrevocable, subordinated loan facility to Rand Refinery. The facility, if drawn down, is convertible
          to equity after a period of two years. Harmony's maximum commitment in terms of this facility is R140 million. Refer to note 6 for
          further details.

13.  Segment report
     The segment report follows.

14.  Reconciliation of segment information to condensed consolidated income statements and balance sheets
                                                                                                                            Year ended
                                                                                                                    30 June            30 June
                                                                                                                       2014               2013
                                                                                                                 (Reviewed)          (Audited)
     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 loss
     Total segment revenue                                                                                           15 682             16 776
     Total segment production costs                                                                                (11 888)           (11 854)
     Production profit per segment report                                                                             3 794              4 922
     Discontinued operations                                                                                              –              (341)
     Production profit from continuing operations                                                                     3 794              4 581
     Depreciation                                                                                                   (2 143)            (2 001)
     Impairment                                                                                                     (1 439)            (2 733)
     Other cost of sales items                                                                                        (618)              (393)
     Gross loss as per income statements(1)                                                                           (406)              (546)
     
     (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
                                                                                                                    30 June            30 June
                                                                                                                       2014               2013
                                                                                                                 (Reviewed)          (Audited)
     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                                                                                                      787                836
     Undeveloped property                                                                                             5 139              5 139
     Other non-mining assets                                                                                            117                286
     Wafi-Golpu assets                                                                                                1 092              1 148
     
                                                                                                                      7 135              7 409
     
      
    * The year ended June 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.


15. Review report
    These condensed consolidated financial statements for the year ended 30 June 2014 have been reviewed by
    PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon. A copy of the auditor's review report is available for
    inspection at the company's registered office, together with the financial statements identified in the auditor's report.

Segment report (Rand/Metric)
for the year ended 30 June 2014

                                                                         Production
                                   Revenue          Production cost*     profit/(loss)*      Mining assets*      Capital expenditure# Kilograms produced@   Tonnes milled@
                                   30 June             30 June             30 June              30 June                 30 June              30 June           30 June
                                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                     1 959     1 213     1 753      1 484      206        (271)    3 616     3 435         509        420     4 694      2 740     1 143       711
Doornkop                        1 126     1 615     1 098      1 042       28         573     3 386     3 378         238        285     2 603      3 631       737     1 008
Phakisa                         1 284     1 103     1 061        982      223         121     4 590     4 547         360        337     2 976      2 434       577       512
Tshepong                        1 822     1 887     1 365      1 427      457         460     3 941     3 877         301        310     4 223      4 154       947     1 040
Masimong                        1 171     1 640       983        975      188         665     1 060       989         168        171     2 718      3 616       670       868
Target 1                        1 948     1 794     1 051        937      897         857     2 770     2 704         289        331     4 493      3 967       771       717
Bambanani (a)                   1 279       932       681        591      598         341       841       882         127        119     2 968      2 083       239       211
Joel                              995     1 452       668        654      327         798       450       290         145        160     2 335      3 228       548       611
Unisel                            792       825       600        567      192         258       663       656          85         78     1 838      1 813       408       446
Target 3                          609       737       557        508       52         229       542       457         128        145     1 413      1 626       301       323
Surface
All other surface operations    1 263     1 515       981      1 008      282         507       473       250          44        250     2 900      3 438    10 442    10 082
Total South Africa             14 248    14 713    10 798     10 175    3 450       4 538    22 332    21 465       2 394      2 606    33 161     32 730    16 783    16 529
International
Hidden Valley                   1 434     1 189     1 090      1 146      344          43     3 602     3 858         122        506     3 292      2 644     2 001     1 844
Total international             1 434     1 189     1 090      1 146      344          43     3 602     3 858         122        506     3 292      2 644     2 001     1 844
Total continuing 
operations                     15 682    15 902    11 888     11 321    3 794       4 581    25 934    25 323       2 516      3 112    36 453     35 374    18 784    18 373
Discontinued operations
Evander                             –       874         –        533        –         341         –         –           –        140         –      1 955         –       390
Total discontinued
operations                          –       874         –        533        –         341         –         –           –        140         –      1 955         –       390
Total operations               15 682    16 776    11 888     11 854    3 794       4 922    25 934    25 323       2 516      3 252    36 453     37 329    18 784    18 763
Reconciliation of the
segment information to
the condensed consolidated
financial statements
(refer to note 14)                  –     (874)        –       (533)                          7 135     7 409
                               15 682    15 902    11 888     11 321                         33 069    32 732

*     The June 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.
#     Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R12 million (2013: R537 million).
(a)   Includes Steyn 2.
@     Production statistics are unaudited.

The segment report for the year ended 30 June 2013 has been audited. The segment report for the year ended 30 June 2014 has been reviewed.

DEVELOPMENT RESULTS (Metric)
Quarter ending June 2014
                                                                            Channel      
                               Reef          Sampled          Width           Value            Gold
                              Meters          Meters         (Cm's)           (g/t)         (Cmg/t)
Tshepong            
Basal                           280             276            8.17          203.84           1 666
B Reef                           37              38           54.23           23.11           1 253
All Reefs                       316             314           13.74          117.55           1 616
Phakisa            
Basal                           448             468           80.74           14.09           1 137
All Reefs                       448             468           80.74           14.09           1 137
Total Bambanani            
(Incl. Bambanani, Steyn 2)            
Basal                             –               –              –               –                –
All Reefs                         –               –              –               –                –
Doornkop            
South Reef                      517             510           45.00           15.79             711
All Reefs                       517             510           45.00           15.79             711
Kusasalethu            
VCR Reef                        535             486          107.00            8.34             892
All Reefs                       535             486          107.00            8.34             892
Total Target            
(incl. Target 1 & Target 3)            
            
Elsburg                          63              68          116.00            6.47             750
Basal                            96              64            9.00           16.80             151
A Reef                           47               8           74.00           19.53           1 445
B Reef                          217             192          140.00            8.03           1 124
All Reefs                       423             332          108.24            8.02             868
Masimong 5            
Basal                           489             402           41.74           20.95             874
B Reef                          260             306           58.23            9.45             550
All Reefs                       749             708           48.86           15.02             734
Unisel            
Basal                           223             198          128.81           12.17           1 567
Leader                          524             436          221.62            4.46             987
All Reefs                       747             634          192.64            6.07           1 169
Joel            
Beatrix                         219             174           75.00           15.51           1 163
All Reefs                       219             174           75.00           15.51           1 163
Total Harmony            
Basal                         1 535            1 408          58.88           20.07           1 181
Beatrix                         219             174           75.00           15.51           1 163
Leader                          524             436          221.62            4.46             987
B Reef                          514             536           87.23            9.23             806
A Reef                           47               8           74.00           19.53           1 445
Elsburg                          63              68          116.00            6.47             750
South Reef                      517             510           45.00           15.79             711
VCR                             535             486          107.00            8.34             892
All Reefs                     3 955           3 626           89.01           11.11             989
            
DEVELOPMENT RESULTS (Imperial)
Quarter ending June 2014
                                                                            Channel
                                Reef         Sampled           Width          Value            Gold
                                Feet            Feet        (Inch's)         (oz/t)        (In.oz/t)
Tshepong
Basal                            917             906            3.00          6.38               19
B Reef                           121             125           21.00           0.69              14
All Reefs                      1 038           1 030            5.00          3.71               19
Phakisa
Basal                          1 471           1 535           32.00           0.41              13
All Reefs                      1 471           1 535           32.00           0.41              13
Total Bambanani
(Incl. Bambanani, Steyn 2)

Basal                              –               –               –             –                –
All Reefs                          –               –               –             –                –
Doornkop
South Reef                     1 696           1 673           18.00           0.45               8
All Reefs                      1 696           1 673           18.00           0.45               8
Kusasalethu 
VCR Reef                       1 756           1 594           42.00           0.24              10
All Reefs                      1 756           1 594           42.00           0.24              10
Total Target 
(incl. Target 1 & Target 3) 
 
Elsburg                         207             223            46.00           0.19               9
Basal                           314             210             4.00           0.44               2
A Reef                          155              26            29.00           0.57              17
B Reef                          713             630            55.00           0.23              13
All Reefs                      1 388           1 089           43.00           0.23              10
Masimong 5 
Basal                          1 604           1 319           16.00           0.63              10
B Reef                          853            1 004           23.00           0.27               6
All Reefs                      2 458           2 323           19.00           0.44               8
Unisel 
Basal                           730             650            51.00           0.35              18
Leader                         1 720           1 430           87.00           0.13              11
All Reefs                      2 450           2 080           76.00           0.18              13
Joel 
Beatrix                         718             571            30.00           0.45              13
All Reefs                       718             571            30.00           0.45              13
Total Harmony 
Basal                          5 036           4 619           23.00           0.59              14
Beatrix                         718             571            30.00           0.45              13
Leader                         1 720           1 430           87.00           0.13              11
B Reef                         1 687           1 759           34.00           0.27               9
A Reef                           155              26           29.00           0.57              17
Elsburg                          207             223           46.00           0.19               9
South Reef                     1 696           1 673           18.00           0.45               8
VCR                            1 756           1 594           42.00           0.24              10
All Reefs                     12 975          11 896           35.00           0.32              11




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