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HARMONY GOLD MINING COMPANY LIMITED - Q1 FY15 Results for the Quarter ended 30 September 2014

Release Date: 05/11/2014 07:05:00      Code(s): HAR       PDF(s):  
Q1 FY15 Results for the Quarter ended 30 September 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


Q1 FY15 RESULTS
FOR THE FIRST QUARTER ENDED 30 September 2014

KEY FEATURES
Quarter on quarter
- 6% increase in gold production to 9 435kg (303 341oz)
- 8% increase in production profit at R913 million (US$85 million)
- Grade continues to increase
  – 4% improvement in underground recovered grade at 4.84g/t
  – on back of 5% improvement in recovered grade for the year ended 30 June 2014                        
- 18% increase in revenue to R4.4 billion (US$412 million)                                                                                                 
- Net debt reduced from R1.0 billion to R771 million (from US$98 million to US$68 million)                                                                                           
- Net loss reduced by 78% to R266 million loss (US$25 million)


RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2014
                                                        Quarter     Quarter        Q-on-Q     
                                                      September        June      variance     
                                                           2014        2014             %     
Gold produced                        – kg                 9 435       8 935             6     
                                     – oz               303 341     287 266             6     

Cash operating costs                 – R/kg             355 693     341 864           (4)     
                                     – US$/oz             1 028       1 011           (2)     

Gold sold                            – kg                 9 987       8 635            16     
                                     – oz               321 089     277 621            16

Underground grade                    – g/t                 4.84        4.66             4  

All-in sustaining costs              – R/kg             431 063     428 383           (1)     
                                     – US$/oz             1 245       1 267             2 

Gold price received                  – R/kg             443 690     435 775             2     
                                     – US$/oz             1 282       1 289           (1)

Production profit                    – R million            913         847             8     
                                     – US$ million           85          81             5  

Basic (loss)/earnings per share      – SAc/s               (61)       (282)            78     
                                     – USc/s                (6)        (27)            78 

Headline (loss)/earnings             – Rm                 (266)         129        >(100)     
                                     – US$m                (25)          12        >(100) 

Headline (loss)/earnings per share   – SAc/s               (61)          30        >(100)     
                                     – USc/s                (6)           3        >(100)     

Harmony's Integrated Annual Report and the Form 20-F filed with the United States' Securities and Exchange
Commission for the financial year ended 30 June 2014 are available on our website at
http://www.harmony.co.za/investors/reporting/annual-reports.


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.

CONTACT DETAILS

Corporate Office                                    
Randfontein Office Park                             
PO Box 2, Randfontein, 1760, South Africa           
Corner Main Reef Road/Ward Avenue                                                            
Randfontein, 1759, South Africa                                                  
Telephone: +27 11 411 2000                                                 
Website: www.harmony.co.za                          
                                                    
Directors
P T Motsepe* Chairman                                                
M Motloba*^ Deputy Chairman
G P Briggs Chief Executive Officer                  
F Abbott Financial Director                         
H E Mashego Executive Director                      
F F T De Buck*^ Lead independent director           
J A Chissano*1^, K V Dicks*^, Dr D S S Lushaba*^,   
C Markus*^, M Msimang*^, K T Nondumo*^,             
V P Pillay *^, J L 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 86 154 6572
Fax: +27 86 674 2450
Email: meetfax@linkmarketservices.co.za

ADR(2) 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
(2)ADR: American Depository Receipts

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 11 507 0300
Fax: +27 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 the Reporting of Exploration results, Mineral Resources and Ore 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 Papua New Guinea, 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 25 years relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM).

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

Mineral Resource and Reserve information as at 30 June 2014 has not changed.



SHAREHOLDER INFORMATION
                                                                          
Issued ordinary share capital at 30 September 2014         435 825 447
Issued ordinary share capital at 30 June 2014              435 825 447     

Market capitalisation

At 30 September 2014 (ZARm)                                     10 765    
At 30 September 2014 (US$m)                                        953
At 30 June 2014 (ZARm)                                          13 576
At 30 June 2014 (US$m)                                           1 276

Harmony ordinary share and ADR prices  

12-month high (1 October 2013 –
30 September 2014) for ordinary shares                           40.32

12-month low (1 October 2013 –
30 September 2014) for ordinary shares                           24.48

12-month high (1 October 2013 –                                            
30 September 2014) for ADRs                                       3.77

12-month low (1 October 2013 –                                            
30 September 2014) for ADRs                                       2.16

Free float                                                        100%     

ADR ratio                                                          1:1
                                                                           
JSE Limited                                                        HAR

Range for quarter (1 July – 30 September 2014                             
closing prices)                                        R24.70 – R35.21

Average daily volume for the quarter                                      
(1 July to 30 September 2014)                           706 279 shares

Range for quarter (1 April – 30 June 2014                                 
closing prices)                                        R27.72 – R35.60    
                                                                          
Average daily volume for the quarter
(1 April – 30 June 2014)                                946 701 shares
                                                 
New York Stock Exchange including other                                   
US trading platforms                                               HMY

Range for quarter (1 July – 30 September 2014
closing prices)                                      US$2.16 – US$3.29

Average daily volume for the quarter
(1 July to 30 September 2014)                         1 771 208 shares

Range for quarter (1 April – 30 June 2014                                
closing prices)                                      US$2.61 – US$3.34

Average daily volume for the quarter                                     
(1 April – 30 June 2014)                              2 020 458 shares

Investors' calendar                                          2014/2015

Annual General Meeting                                21 November 2014

Q2 FY15 live presentation from Cape Town               9 February 2015

Q3 FY15 presentation (webcast and conference
calls only)                                                 8 May 2015

Q4 FY15 live presentation from Johannesburg             18 August 2015

Q1 FY15 presentation (webcast and conference
calls only)                                            5 November 2015


MESSAGE FROM THE CHIEF EXECUTIVE OFFICER


1. Safety                                                           
   During the quarter, we continued our efforts to improve our safety.
   These actions included regular visits by senior management to
   underground workplaces, creating safety awareness through
   increased communication and engagement with our employees             
   and enforcing safety accountability at each of our operations.        
   A majority of our operations reported safety achievements during
   the quarter.                                                          
                                                                      
   It is with deep regret that I report that two people were fatally      
   injured in two separate incidences. They were Mhanjelwa Cebani         
   (driller at Doornkop) and Mmaneo Florisa Muso (tramming crew supervisor           
   at Tshepong). My sincere condolences go to the families, friends      
   and colleagues of these employees.                                    
                                                                      
2. Gold market                                                      
   We are gold bulls and believe that the company must continue          
   to be competitive in times of low gold prices to ensure that when     
   the gold price strengthens, we will reap the benefits for all our
   stakeholders.
   
   During the September 2014 quarter the US dollar gold price            
   received remained stable at US$1 282/oz (US$1 289/oz in the June      
   2014 quarter). As a South African gold producer we continue           
   to benefit from a weaker Rand. A 2% weakening in the Rand             
   US dollar exchange rate to R10.77/US$ resulted in a 2% increase       
   in the Rand gold price received for the September 2014 quarter.
   The Rand gold price received increased from R435 775/kg in the        
   previous quarter to R443 690/kg in the quarter under review.          
                                                                         
   Our business plans for the financial year (FY15)         
   were designed to ensure that the company is profitable and            
   cash generative at a gold price of R425 000/kg. As 91% of our
   gold production is produced in South Africa, the Rand US dollar       
   exchange rate remains important.                                      
                                                                         
   We continue to assess our operational performance at current          
   gold price levels (see paragraphs 8 and 9 below). Corporate and 
   service costs have been reduced and we continue to look at ways of 
   further reducing it.                                                     
                                                                      
3. Operational results                                              
   Harmony's underground grade continued to improve quarter on           
   quarter. In the September 2014 quarter, underground recovered         
   grade improved by 4% to 4.84g/t, on the back of a 5% year-on-
   year increase in recovered grade at the end of June 2014.             
                                                                         
   Quarter on quarter gold production increased by 6%                    
   (500 kilograms) to 9 435kg. The following operations contributed      
   to higher gold production:
                                                                         
   - Bambanani increased its tonnes milled by 20%, whilst recovered
     grade improved by 10% to 12.32g/t                                  
                                                                        
   - Target 1 improved recovered grade by 18% to 5.69g/t while          
      tonnes milled decreased by 11%                                     
                                                                         
   - Target 3 improved recovered grade by 25% to 5.46g/t in the
      quarter under review. Tonnes milled increased by 14%
 
   - Phakisa increased its tonnes milled by 8%. Recovered grade         
     was 3% higher at 5.41g/t                                           
    
   - Doornkop increased its recovered grade by 38% to 4.55g/t.                                                          
                                                                         
   - Unisel improved both tonnes milled and recovered grade by
     16% and 5% respectively
                                                                        
   - Masimong increased tonnes milled by 19%, but recovered
     grade decreased by 5% to 3.77g/t, due to increased stoping
     width during the quarter. Masimong's grade is expected to
     return to its previous level in the next quarter
   
   - Kalgold improved both tonnes milled and recovered grade by
     1% and 20% respectively
   
   - Phoenix tailings increased tonnes milled with 3% and improved
     recovered grade from 0.12g/t to 0.14g/t
   
   Gold production at Tshepong, Joel and Hidden Valley were lower
   due to lower face grades being mined at Tshepong and Joel and
   the ore blend between the Hamata and Kaveroi pits at Hidden
   Valley. Kusasalethu did not achieve its planned
   production during the quarter, due to equipment failures in the
   metallurgical plant.
   
   Production at the surface dumps reduced by 1% (–3kg) mainly
   due to a 2% decrease in tonnes milled while the recovered grade
   remained stable at 0.35g/t.

4. Financial Results
   4.1   Revenue
         Revenue increased by R668 million (18%) to R4 431 million as
         a result of the 16% increase in gold sold to 9 987kg and a 2%
         increase in the Rand gold price received at R443 690/kg in the
         September 2014 quarter.
   
   4.2   Production costs
         The increase in production costs in the
         September 2014 quarter is mainly as a result of gold stock
         movements of R301 million due to more gold being sold than produced. Increases
         in electricity costs (due to winter tariffs) and the annual
         labour cost increase accounted for R272 million of the total increase.
   
   4.3   Amortisation and depreciation
         Depreciation increased by R124 million, mainly due to the increase
         in production and an increase in the depreciation rates at certain
         mines following the completion of the new business plans.
   
   4.4   Other (expenses)/income – net
         The increase to R187 million in expenses in
         the September 2014 quarter is mainly due to the foreign exchange
         translation loss of R192 million recorded on the US dollar
         syndicated loan, resulting from the Rand weakening from R10.61/US$1 
         at 30 June 2014 to R11.32/US$1 at 30 September 2014.
   
   4.5   Loss per share
         The loss per share of 61 SA cents for the September 2014 quarter
         reduced from the loss per share of 282 SA cents for the June 2014
         quarter.
   
   4.6   Borrowings
         The drawn down amount on the US dollar syndicated loan remained 
         unchanged at US$270 million. However, the weakening of the Rand 
         against the dollar exchange rate resulted in an increase in the 
         balance in Rand terms. The balance is due at the end of  
         September 2015 and has been reclassified to current liabilities.
   
   4.7   Cash and cash equivalents
         Cash balances increased by R452 million to R2 281 million mainly
         as a result of the increase in revenue from more gold produced 
         and sold, as well as increased receipts from debtors during the quarter.

5. Recognition award for Harmony's carbon disclosure and reporting
   Harmony has been recognised by the CDP South Africa as the
   top scorer in the CDP South Africa Climate Change Report 2014
   published on 15 October 2014. CDP represents 767 investors
   globally who owns around US$92 trillion in assets.
   
   Harmony attained a score of 100% for carbon disclosure and band          
   "A" performance for leadership in respect of energy and climate
   change. CDP assesses companies' responses against two parallel           
   scoring schemes, namely performance and disclosure. The highest          
   scoring companies for performance and/or disclosure enter                
   the Climate Performance Leadership Index and/or the Climate              
   Disclosure Leadership Index.
                                                                            
   Harmony is the only South African company to have received               
   platinum awards in both the disclosure category and performance          
   categories.                                                              
                                                                         
    
6. White Rivers Exploration (Pty) Limited ("White Rivers") transaction                                         
   Harmony and White Rivers entered into an agreement on                    
   12 September 2014, the main objective being to establish an             
   exploration joint venture to explore and develop potential gold          
   resources at White Rivers' Beisa Project and abutting exploration        
   areas within Harmony's adjacent Target mine. Entering into               
   the joint venture allows both Harmony and White Rivers the               
   opportunity to further enhance the value that mining contributes         
   in the Free State, extending the life of mining communities beyond       
   Harmony's current life of mine.
                                                                         
   Under the terms of the agreement, Harmony will have an initial
   35% interest in the exploration joint venture, with White Rivers
   funding and managing exploration activities to prefeasibility
   study level.
                                                                         
7. Exploration                                                         
   7.1 Golpu                                                                
       Golpu's new prefeasibility study is close to being finalised.
       Our considerations for the new targeted outcome include:                 
       - return on investment                                                  
       - project with lower capital
       - near term cash flow
       We aim to share the details of the prefeasibility study with the         
       market in December 2014.
                                                                            
   7.2 Kili Teke – more good news from Papua New                              
       Guinea                                                              
                                                                        
       Some exciting initial results were reported from one of Harmony's        
       100% owned exploration areas, Kili Teke in the Papua New Guinea          
       highlands (near Porgera). The results from surface sampling outline
       a kilometer scale, copper-gold geochemical porphyry with values          
       of around 2.7% copper and 5.2 g/t gold.                                  
                                                                         
    
8.  Target 3 placed on care and maintenance                                                                    
    Following the suspension of mining operations at Target 3 at the         
    end of the September 2014 quarter, the mine has been placed              
    on care and maintenance.                                                                         
                                                                         
9.  Post quarter end – Kusasalethu                                       
    As per the announcement released on 31 October 2014 (refer               
    www.harmony.co.za/investors), Harmony management decided
    to close Kusasalethu for a two week period with the aim to
    remove all illegal miners, as well as complete all security and access   
    control measures. No production will occur during this period and 
    employees will be sent on leave.

    The decision comes after a third underground fire in October
    2014 month was started by illegal miners. Although no one was
    harmed in any of these fires, it did result in ten production days
    lost in October.

    Harmony is adopting an uncompromising stance towards these
    activities and is working with organised labour and the regulatory
    authorities to do so. Harmony is implementing increased security
    and improved clocking-in systems to tighten control on who enters
    and exits its mines. The company also regularly inspects closed-
    up sections to ensure that they remain sealed off and cannot be
    accessed illegally.

    These illegal mining activities pose a threat not only to the illegal
    miners' own health and safety, but also to the safety of employees.
    Very often these activities result in damage to property and mining
    equipment and disruption to operations due to negligence,
    sabotage, theft and vandalism. The activities of illegal miners
    can also cause pollution, underground fires and deplete mineral
    deposits, potentially making the future mining of such deposits
    uneconomical.

    Kusasalethu’s production has continued to be problematic and management 
    is working on an alternative plan to return the mine to profitability.

10. In conclusion
    Our efforts to improve efficiencies are aimed not only at mining
    and processing, but in every aspect of our business. We believe
    that Harmony remains undervalued and that its successes are not
    currently factored into the share price.

    Graham Briggs
    Chief executive officer

    THE INVESTMENT CASE FOR HARMONY
    Firstly, we are the most efficient South African gold miner, by focusing
    on ways to improve our safety, production and cash operating costs. In
    addition, we are a company that's focused on the future. An investment
    in us is not just for short-term gain – we aim to provide increasing
    long-term benefits. We are able to do this primarily by funding our own
    capital, which puts us in control of our business and enables us to make
    decisions that have a real impact on our profitability.

    Secondly, we produce more than one million ounces of gold and being
    a leveraged gold company means that should the gold price rise our
    margins would improve dramatically in percentage terms. Management
    clearly understands this and we continue to make tough decisions
    in loss-making operations when the gold price softens. However,
    Harmony has a huge potential upside when the gold price strengthens,
    as we believe it will in the medium to long term.
    
    One of our key strengths at Harmony is our understanding of where
    we operate – on both an economic and a social level. The countries in
    which we operate and have experience, South Africa and Papua New
    Guinea, are both emerging economies. They are developing countries
    and we are able to contribute to local communities in a way that can
    make a lasting difference. For this reason, we wholeheartedly embrace
    our social licences to mine and endeavour to go beyond compliance.

    The final reason to invest in Harmony is Golpu. It's a resource that we're
    sure will develop into a world-class copper gold mine, and will allow us
    to sustain our business well into the future.

    Extract from the Integrated Report for the financial year 2014
    "Chief executive officer discusses the major issues of FY14 and beyond"
     www.harmony.co.za       

Operating results (Rand/Metric) (US$/Imperial)
                                                                                                                                     South Africa                                                                                       
                                                                                                     Underground production                                                              Surface production
                               Three                                                                                                                                                                                             Total
                               months   Kusasa-                                                                                                                         Total                                         Total       South       Hidden        Total
                                Ended     lethu    Doornkop    Phakisa    Tshepong    Masimong     Target 1 Bambanani           Joel     Unisel       Target 3    Underground     Phoenix    Dumps       Kalgold    Surface      Africa       Valley      Harmony
                               Sep-14       290         136        158         259         185          183         59           146        114             81          1 611      1 609       636           393      2 638       4 249          521        4 770
Ore milled         – t'000
                               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
                               Sep-14     1 334         619        855       1 078         698        1 042        727           533        477            442          7 805        233       222           326        781       8 586          849        9 435
Gold produced      – kg
                               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
                               Sep-14    42 889      19 901     27 489      34 658      22 441       33 501     23 374        17 136     15 336         14 211        250 936      7 491     7 137        10 481     25 109     276 045       27 296      303 341
Gold produced      – oz
                               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
                               Sep-14      4.60        4.55       5.41        4.16        3.77         5.69      12.32          3.65       4.18           5.46           4.84       0.14      0.35          0.83       0.30        2.02         1.63         1.98
Yield              – g/tonne
                               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
Cash operating                 Sep-14   414 573     440 977    346 363     369 139     367 828      285 610    242 113       369 818    371 111        349 385        356 054    328 605   385 590       373 819    363 676     356 748      345 028      355 693
costs              – R/kg  
                               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
Cash operating                 Sep-14     1 198       1 274      1 001       1 067       1 063          825        699         1 069      1 072          1 009          1 029        949     1 114         1 080      1 051       1 031          997        1 028
costs              – D/oz
                               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
Cash operating                 Sep-14     1 907       2 007      1 874       1 536       1 388        1 626      2 983         1 350      1 553          1 907          1 725         48       135           310        108         721          562          704
costs              – R/tonne
                               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
                               Sep-14     1 433         697        868       1 096         709        1 090        739           630        485            462          8 209        258       239           358        855       9 064          923        9 987
Gold sold          – kg 
                               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
                               Sep-14    46 072      22 409     27 907      35 237      22 795       35 044     23 759        20 255     15 593         14 854        263 925      8 295     7 684        11 510     27 489     291 414       29 675      321 089
Gold sold          – oz
                               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
                               Sep-14   635 948     309 439    385 455     486 350     314 566      483 669    328 079       279 430    215 453        204 975      3 643 364    114 586   106 905       158 640    380 131   4 023 495      407 641    4 431 136
Revenue            (R'000)
                               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
Cash operating                 Sep-14   553 041     272 965    296 140     397 932     256 744      297 606    176 016       197 113    177 020        154 428      2 779 005     76 565    85 601       121 865    284 031   3 063 036      292 929    3 355 965
costs              (R'000) 
                               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
Inventory                      Sep-14    29 247      35 654      1 826       9 085       1 274       13 923    (1 481)        25 540       (11)          7 238        122 295      9 620     6 603         9 954     26 177     148 472       13 517      161 989
movement           (R'000)
                               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)
                               Sep-14   582 288     308 619    297 966     407 017     258 018      311 529    174 535       222 653    177 009        161 666      2 901 300     86 185    92 204       131 819    310 208   3 211 508      306 446    3 517 954
Operating costs    (R'000)
                               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
Production                     Sep-14    53 660         820     87 489      79 333      56 548      172 140    153 544        56 777     38 444         43 309        742 064     28 401    14 701        26 821     69 923     811 987      101 195      913 182
profit/(loss)      (R'000)
                               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                     Sep-14     4 984          76      8 127       7 370       5 253       15 991     14 264         5 275      3 571          4 023         68 934      2 638     1 366         2 490      6 494      75 428        9 400       84 828
profit/(loss)      (D'000)
                               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
Capital                        Sep-14   124 368      55 554     85 185      83 513      40 526       73 614     24 540        30 778     29 229         20 437        567 744        634       503         6 420      7 557     575 301       21 153      596 454
expenditure        (R'000)
                               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
Capital                        Sep-14    11 553       5 160      7 913       7 758       3 765        6 838      2 280         2 859      2 715          1 898         52 739         59        47           596        702      53 441        1 965       55 406
expenditure        (D'000)
                               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
Adjusted                       Sep-14   415 112     452 885    349 811     377 677     370 678      290 243    241 208       358 710    371 633        354 776        360 050    334 150   385 791       372 575    364 675     360 548      332 683      357 974
operating costs    – R/kg
                               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
Adjusted                       Sep-14     1 199       1 308      1 011       1 091       1 071          839        697         1 036      1 074          1 025          1 040        965     1 115         1 076      1 054       1 042          960        1 034
operating costs    – D/oz
                               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
All-in                         Sep-14   516 475     542 644    455 711     467 277     443 372      369 043    271 532       402 722    446 757        410 359        438 942    336 607   398 180       404 573    382 277     433 919      403 002      431 063
sustaining costs   – R/kg
                               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
All-in                         Sep-14     1 492       1 568      1 317       1 350       1 281        1 066        785         1 164      1 291          1 186          1 268        973     1 150         1 169      1 104       1 254        1 163        1 245
sustaining costs   – D/oz
                               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


CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)
                                                                                                 Quarter ended                  Year ended                 
                                                                                                                                      
                                                                      30 September          30 June         30 September           30 June
                                                                              2014             2014                 2013              2014   
Figures in million                                      Note           (Unaudited)      (Unaudited)          (Unaudited)         (Audited)      
Revenue                                                                      4 431            3 763                4 018            15 682      
Cost of sales                                              2               (4 319)          (4 941)              (3 735)          (16 088)      
  Production costs                                                         (3 518)          (2 916)              (2 981)          (11 888)      
  Amortisation and depreciation                                              (650)            (526)                (577)           (2 143)      
  Impairment of assets                                                           –          (1 410)                    –           (1 439)      
  Other items                                                                (151)             (89)                (177)             (618)      
Gross profit/(loss)                                                            112          (1 178)                  283             (406)      
Corporate, administration and other expenditure                              (111)            (112)                (108)             (430)      
Social investment expenditure                                                 (24)             (21)                 (38)              (88)      
Exploration expenditure                                                       (85)            (114)                (142)             (458)      
Profit on sale of property, plant and equipment                                  –               30                    –                30      
Other (expenses)/income – net                              5                 (187)             (47)                    1             (208)      
Operating loss                                                               (295)          (1 442)                  (4)           (1 560)      
(Loss)/profit from associates                              4                     –            (125)                    3             (109)      
Profit on disposal/(impairment) of investments                                   –               14                  (7)                 7      
Net gain on financial instruments                                                7               32                   74               170      
Investment income                                                               51               61                   45               220      
Finance cost                                                                  (65)            (101)                 (60)             (277)      
(Loss)/profit before taxation                                                (302)          (1 561)                   51           (1 549)      
Taxation                                                                        36              338                 (38)               279      
Normal taxation                                                                  1                1                 (49)              (24)      
Deferred taxation                                                               35              337                   11               303      
Net (loss)/profit for the period                                             (266)          (1 223)                   13           (1 270)      
Attributable to:                                                                                                                                
Owners of the parent                                                         (266)          (1 223)                   13           (1 270)      
(Loss)/earnings per ordinary share (cents)                 3                                                                                    
Basic (loss)/earnings                                                         (61)            (282)                    3             (293)      
Diluted (loss)/earnings                                                       (61)            (282)                    3             (293)      

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand)

                                                                         Quarter ended                       Year ended
                                                                                                             
                                                          30 September         30 June     30 September         30 June
                                                                  2014            2014             2013            2014
Figures in million                                         (Unaudited)     (Unaudited)      (Unaudited)       (Audited)

Net (loss)/profit for the period                                 (266)         (1 223)               13         (1 270)
Other comprehensive income/(loss) for the period, 
net of income tax                                                 179              624            (695)           (140)
Items that may be reclassified subsequently 
to profit or loss:                                                179              655             695)           (109)
  Foreign exchange translation                                    179              668             694)           (108)
  Movements on investments                                          –             (13)              (1)             (1)
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 for the period                           (87)           (599)            (682)         (1 410)
Attributable to:
Owners of the parent                                              (87)           (599)            (682)         (1 410)

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

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand)
for the three months ended 30 September 2014 (unaudited)

                                                                                      (Accumulated
                                                                                            loss)/
                                                                Share      Other          retained
Figures in million                                             capital  reserves          earnings      Total
Balance – 30 June 2014                                         28 325      3 539             (822)     31 042
Share-based payments                                                –         69                 –         69
Net loss for the period                                             –          –             (266)      (266)
Other comprehensive income for the period                           –        179                 –        179
Balance – 30 September 2014                                    28 325      3 787           (1 088)     31 024

Balance – 30 June 2013                                         28 325      3 442               448     32 215
Share-based payments                                                –         43                 –         43
Net profit for the period                                           –          –                13         13
Other comprehensive loss for the period                             –      (695)                 –      (695)
Balance – 30 September 2013                                    28 325      2 790               461     31 576

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

The unaudited condensed consolidated financial statements for the three months ended 30 September 2014 have been prepared by
Harmony Gold Mining Company Limited's corporate reporting team headed by Herman Perry. This process was supervised by the financial
director, Frank Abbott and approved by the board of Harmony Gold Mining Company Limited. These financial statements have not been
audited or independently reviewed.

CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)

                                                              At          At             At
                                                    30 September     30 June   30 September
                                                            2014        2014           2013
Figures in million                           Note    (Unaudited)   (Audited)    (Unaudited)

ASSETS
Non-current assets
Property, plant and equipment                             33 232     33 069         32 195
Intangible assets                                            885        886          2 191
Restricted cash                                               38         42             38
Restricted investments                                     2 329      2 299          2 143
Deferred tax assets                                           76         81             93
Investments in associates                      4               –          –            112
Investments in financial assets                                4          4             42
Inventories                                                   50         50             57
Total non-current assets                                  36 614     36 431         36 871

Current assets
Inventories                                                1 390      1 534          1 482
Trade and other receivables                                  693        951          1 238
Income and mining taxes                                       94        110            103
Restricted cash                                               15         15              –
Cash and cash equivalents                                  2 281      1 829          2 288
Total current assets                                       4 473      4 439          5 111

Total assets                                              41 087     40 870         41 982

EQUITY AND LIABILITIES
Share capital and reserves
Share capital                                             28 325     28 325         28 325
Other reserves                                             3 787      3 539          2 790
(Accumulated loss)/retained earnings                     (1 088)      (822)            461
Total equity                                              31 024     31 042         31 576

Non-current liabilities
Deferred tax liabilities                                   2 640      2 680          2 998
Provision for environmental rehabilitation                 2 148      2 098          1 990
Retirement benefit obligation                                251        247            198
Other non-current liabilities                  6              40         95             63
Borrowings                                     5               –      2 860          2 868
Total non-current liabilities                              5 079      7 980          8 117

Current liabilities
Borrowings                                     5           3 052          –            291
Income and mining taxes                                        9          –             24
Trade and other payables                       6           1 923      1 848          1 974
Total current liabilities                                  4 984      1 848          2 289

Total equity and liabilities                              41 087     40 870         41 982

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

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)

                                                                       Quarter ended                       Year ended
                                                                                                           
                                                        30 September         30 June      30 September        30 June
                                                                2014            2014              2013           2014
                                                         (Unaudited)     (Unaudited)       (Unaudited)      (Audited)
Figures in million                                                         Restated*         Restated#

Cash flow from operating activities
Cash generated by operations                                  1 071             443               295           2 247
Interest and dividends received                                  25              47                26             139
Interest paid                                                  (23)            (32)              (29)           (121)
Income and mining taxes refunded                                 25              31                 –               3
Cash generated by operating activities                        1 098             489               292           2 268

Cash flow from investing activities
Decrease/(increase) in restricted cash                            4             (3)                 –             (6)
Decrease/(increase) in restricted investments                     1            (24)                 –            (24)
Proceeds on disposal of investments                               –              51                 –              51
Net additions to property, plant and equipment(1)             (651)           (699)             (684)         (2 661)
Cash utilised by investing activities                         (646)           (675)             (684)         (2 640)

Cash flow from financing activities
Borrowings raised                                                 –               –               612             612
Borrowings repaid                                                 –               –               (3)           (468)
Cash generated by financing activities                            –               –               609             144

Foreign currency translation adjustments                          –               7              (18)            (32)

Net increase/(decrease) in cash and cash equivalents            452           (179)               199           (260)
Cash and cash equivalents – beginning of period               1 829           2 008             2 089           2 089
Cash and cash equivalents – end of period                     2 281           1 829             2 288           1 829
 
(1) Includes capital expenditure for Wafi-Golpu and other international projects of R15 million in the September 2014 quarter (June 2014 quarter: R12 million) 
    (September 2013 quarter: Rnil) and R12 million in the year ended 30 June 2014.
*   Cash generated by operating activities and cash utilised by investing activities previously reported as R470 million and (R656 million) restated to 
    R489 million and (R675 million) respectively in the June 2014 quarter. This is mainly related to the change in accounting policy for IFRIC 20.
#   Cash generated by operating activities and cash utilised by investing activities previously reported as R235 million and (R627 million) restated to R292 
    million and (R684 million) respectively in the September 2013 quarter. This is mainly related to the change in accounting policy for IFRIC 20.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the three months ended 30 September 2014 (Rand)

1. Accounting policies
   Basis of accounting
   The condensed consolidated financial statements for the three months ended 30 September 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 2014, 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 2014 and had no impact on the financial results of the group:

   IFRSs     Annual Improvements 2010 – 2012 Cycle
   IAS 32    Amendment – Presentation – Offsetting Financial Assets and Financial Liabilities
   IAS 36    Amendment – Impairment of Assets – Recoverable amount disclosures for non-financial assets
   IFRIC 21 Levies

2. Cost of sales

                                                                    Quarter ended                      Year ended
                                                                                                       
                                                    30 September          30 June     30 September        30 June
                                                            2014             2014             2013           2014
Figures in million                                   (Unaudited)      (Unaudited)      (Unaudited)      (Audited)

Production costs – excluding royalty                      3 486             2 891            2 943         11 761
Royalty expense                                              32                25               38            127
Amortisation and depreciation                               650               526              577          2 143
Impairment of assets1                                         –             1 410                –          1 439
Rehabilitation expenditure/(credit)2                         14               (9)               15              8
Care and maintenance cost of restructured shafts             17                13               17             66
Employment termination and restructuring costs3              48                40               94            274
Share-based payments                                         73                44               51            270
Other                                                       (1)                 1                –              –
Total cost of sales                                       4 319             4 941            3 735         16 088

1 The impairment in the June 2014 quarter consists of an impairment of R1.38 billion on Phakisa, R7 million on Steyn 2 and R21 million on St Helena.
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 in the totals for the year ended June 2014 and the June 2014 and September 2013 quarters are amounts relating to the restructuring at Hidden
  Valley, while all periods include amounts relating to the voluntary retrenchment packages offered in South Africa. The September 2014 quarter total includes
  amounts provided for employees of Target 3.

3.(Loss)/earnings per share

                                                                       Quarter ended                       Year ended
                                                                                                           
                                                        30 September         30 June      30 September        30 June
                                                                2014            2014              2013           2014
                                                         (Unaudited)     (Unaudited)       (Unaudited)      (Audited)

Weighted average number of shares (million)                   434.1            433.9            432.6           433.2
Weighted average number of diluted shares (million)           435.4            435.2            433.0           434.7
Total (loss)/earnings per share (cents):
Basic (loss)/earnings                                          (61)            (282)                3           (293)
Diluted (loss)/earnings                                        (61)            (282)                3           (293)
Headline (loss)/earnings                                       (61)               30                5              26
Diluted headline (loss)/earnings                               (61)               30                5              26
Figures in million
Reconciliation of headline (loss)/earnings:
Net (loss)/profit                                            (266)           (1 223)               13         (1 270)
Adjusted for:
(Profit on disposal)/impairment of investments1                  –              (14)                7             (7)
Impairment of assets                                             –             1 410                –           1 439
Taxation effect on impairment of assets                          –              (20)                –            (24)
Profit on sale of property, plant and equipment                  –              (30)                –            (30)
Taxation effect of profit on sale of property,
plant and equipment                                              –                 6                –               6
Headline (loss)/earnings                                     (266)               129               20             114

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

4.  Investment in associate
    Harmony holds a 10.38% share in Rand Refinery. Due to the issues experienced at Rand Refinery following
    the implementation of a new Enterprise Resource Planning (ERP) system on 1 April 2013, and the fact that the annual financial
    statements for the year ended 30 September 2013 have not been finalised, Harmony has provided for its full share of loss for the
    inventory discrepancy. 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.

5.  Borrowings
    There were no draw downs made from the US$300 million syndicated revolving credit facility during the September 2014 quarter
    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 R192 million being recorded in the September 2014 quarter (June 2014 quarter: R11 million), increasing the
    borrowings balance and Other (expenses)/income – net. The facility is repayable by September 2015. As a result, the borrowings
    balance was reclassified to current liabilities.
    
    At 30 September 2014, the full amount was available on the Nedbank revolving credit facility of R1.3 billion. The facility is available
    until December 2016.

6.  Other non-current liabilities
    During the September 2014 quarter, negotiations were entered into with the claimants in the matter relating to the pumping and
    treatment cost of fissure water in the Klerksdorp, Orkney, Stilfontein and Hartbeesfontein (KOSH) Basin. Payment was made to
    Simmer and Jack Investments Proprietary Limited as full and final settlement during the quarter, while the full and final settlement
    to Anglogold Ashanti Limited was made in October 2014. The amount owing to Anglogold Ashanti Limited was reclassified to trade
    and other payables at 30 September 2014.

7. 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 September     30 June     30 September
                                                2014        2014             2013
Figures in million                       (Unaudited)   (Audited)      (Unaudited)

Available-for-sale financial assets(1)
Level 1                                           –            –               37
Level 2                                           –            –                –
Level 3                                           4            4                5
Fair value through profit or loss(2)
Level 1                                           –            –                –
Level 2                                         632          798              933
Level 3                                           –            –                –

(1) Level 1 fair values are directly derived from actively traded shares on the JSE.
(2) Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
    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.

8.  Commitments and contingencies

                                                                    At          At               At
                                                          30 September     30 June     30 September
                                                                  2014        2014             2013
    Figures in million                                     (Unaudited)   (Audited)      (Unaudited)
    Capital expenditure commitments:
    Contracts for capital expenditure                             206          157              351
    Authorised by the directors but not contracted for          2 359          519            1 835
                                                                2 565          676            2 186

    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 annual financial statements for the financial year ended
    30 June 2014, available on the group's website (www.harmony.co.za). There were no significant changes in contingencies since
    30 June 2014, except as discussed below:

    (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 4 for further details.

9.  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. There have been
    no transactions with related parties during the September 2014 quarter.

10. Subsequent events
    (a) Refer to note 6 for subsequent changes relating to the KOSH matter.

    (b) Target 3 was closed at the end of the September 2014 quarter and placed on care and maintenance. The section 189 process
        is still continuing and expected to impact approximately 350 employees. Retrenchment costs are expected to be approximately
        R25 million.

    (c) On 31 October 2014, Harmony announced that it would be closing Kusasalethu for two weeks, following three underground
        fires started by illegal miners during October 2014. During this period, management aims to remove all illegal miners as well
        as complete all security and access control measures needed to tighten control on entry and exit from the mine. No production
        will occur during this period and employees will be sent on leave. This stoppage, together with the ten production days lost in
        October 2014 as a result of the fires, will have a negative impact on Kusasalethu's results and therefore on the group's results for
        the December 2014 quarter.

11. Segment report
    The segment report follows on below.

12. Reconciliation of segment information to condensed consolidated income statements and balance sheets
    
                                                                                                        Three months ended
                                                                                                  30 September     30 September
                                                                                                          2014             2013
    Figures in million                                                                             (Unaudited)      (Unaudited)
    The "Reconciliation of segment information to condensed consolidated financial statements"
    line item in the segment report is broken down in the following elements, to give a better
    understanding of the differences between the financial statements and segment report:
    Reconciliation of production profit to gross profit
    Total segment revenue                                                                               4 431            4 018
    Total segment production costs                                                                    (3 518)          (2 981)
    Production profit per segment report                                                                  913            1 037
    Depreciation                                                                                        (650)            (577)
    Other cost of sales items                                                                           (151)            (177)
    Gross profit as per income statements(1)                                                              112              283

    (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 September    30 September
                                                                                      2014            2013
   Figures in million                                                          (Unaudited)     (Unaudited)
   
   Reconciliation of total segment mining assets to consolidated property,
   plant and equipment
   Property, plant and equipment not allocated to a segment
   Mining assets                                                                      779            1 155
   Undeveloped property                                                             5 139            5 139
   Other non-mining assets                                                            143               74
   Wafi-Golpu assets                                                                1 140              981
                                                                                    7 201            7 349
   
   Segment report (Rand/Metric)
   for the three months ended 30 September 2014 (Unaudited)
   
                                                                                                                                             Capital          Kilograms
                                                                     Revenue   Production cost  Production profit     Mining assets     expenditure#           produced      Tonnes milled
                                                                30 September      30 September       30 September      30 September     30 September       30 September       30 September
                                                              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

   South Africa                                                                                                                                                                
   Underground                                                                                                                                                                          
   Kusasalethu                                                 636       471     582       395       54        76    3 666    3 457    124       120    1 334     1 272       290      329      
   Doornkop                                                    309       342     309       288        –        54    3 343    3 375     55        60      619       765       136      236      
   Phakisa                                                     385       318     298       265       87        53    4 611    4 534     85        91      855       755       158      156      
   Tshepong                                                    486       443     407       346       79        97    3 959    3 918     83        68    1 078     1 049       259      249      
   Masimong                                                    315       319     258       258       57        61    1 068    1 005     41        38      698       758       185      189      
   Target 1                                                    484       423     312       225      172       198    2 785    2 704     74        62    1 042     1 081       183      191      
   Bambanani(a)                                                328       325     174       169      154       156      834      886     25        33      727       769        59       63      
   Joel                                                        279       297     223       179       56       118      468      329     31        42      533       697       146      159      
   Unisel                                                      215       201     177       150       38        51      635      344     29        17      477       476       114      108      
   Target 3                                                    205       154     162       127       43        27      551      482     20        35      442       392        81       82      
   Surface                                                                                                                                                                                      
   All other surface operations                                381       366     310       267       71        99      475      465      8         8      781       846     2 638    2 781      
   Total South Africa                                        4 023     3 659   3 212     2 669      811       990   22 395   21 499    575       574    8 586     8 860     4 249    4 543      
   International                                                                                                                                                                                
   Hidden Valley                                               408       359     306       312      102        47    3 636    3 347     21        48      849       775       521      503      
   Total international                                         408       359     306       312      102        47    3 636    3 347     21        48      849       775       521      503      
   Total operations                                          4 431     4 018   3 518     2 981      913      1037   26 031   24 846    596       622    9 435     9 635     4 770    5 046      
   Reconciliation of the segment
   information to the condensed                                                                                                                              
   consolidated financial statements
   (refer to note 12)                                                                                                7 201    7 349                                                          
                                                             4 431     4 018   3 518     2 981                      33 232   32 195                                                       

   #Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R15 million (2013: Rnil).
   (a)Includes Steyn 2 for the September 2013 amounts.
    

DEVELOPMENT RESULTS (METRIC)
Quarter ending September 2014
                                                       Channel

                           Reef    Sampled     Width    Value     Gold
                         Meters     Meters    (Cm's)    (g/t)  (Cmg/t)
  
Tshepong
Basal                          277     256      7.66   174.50    1 337
B Reef                          48      46    155.61     4.00      623
All Reefs                      325     302     30.20    40.67    1 228

Phakisa
Basal                          493     500     88.52    13.72    1 215
All Reefs                      493     500     88.52    13.72    1 215

Doornkop
South Reef                     340     318     65.00     8.65      562
All Reefs                      340     318     65.00     8.64      562

Kusasalethu
VCR Reef                       738     682     86.00    10.58      910
All Reefs                      738     682     86.00    10.58      910

Total Target
(incl. Target 1 & Target 3)
Elsburg                         49      12    278.00     1.06      296
Basal                           45      56     20.00    68.70    1 374
A Reef                          43      92     62.00    17.56    1 089
B Reef                         114      90    118.00     6.64      784
All Reefs                      251     250     83.12    12.09    1 005

Masimong 5
Basal                          566     484     34.23    24.88      852
B Reef                         182     207     89.65    34.77    3 117
All Reefs                      748     691     50.83    30.10    1 530

Unisel
Basal                          138      86    204.53     5.90    1 206
Leader                         507     396    234.75     5.25    1 233
All Reefs                      645     482    229.36     5.35    1 228

Joel
Beatrix                        291     354    123.00     6.88      846
All Reefs                      291     354    123.00     6.88      846

Total Harmony
Basal                         1 520   1 382    58.97    18.93    1 116
Beatrix                         291     354   123.00     6.88      846
Leader                          507     396   234.75     5.25    1 233
B Reef                          344     343   105.94    20.49    2 170
A Reef                           43      92    62.00    17.56    1 089
Elsburg                          49      12   278.00     1.06      296
South Reef                      340     318    65.00     8.64      562
VCR                             738     682    86.00    10.58      910
All Reefs                     3 831   3 579    95.75    11.61    1 111


DEVELOPMENT RESULTS (IMPERIAL)
Quarter ending September 2014
                                                         Channel

                              Reef  Sampled     Width     Value      Gold
                              Feet     Feet    (Inch)    (oz/t) (In.oz/t)

Tshepong
Basal                          909      840      3.00      5.12        15
B Reef                         157      151     61.00      0.12         7
All Reefs                    1 066      991     12.00      1.18        14

Phakisa
Basal                        1 618    1 640     35.00      0.40        14
All Reefs                    1 618    1 640     35.00      0.40        14

Doornkop
South Reef                   1 114    1 043     26.00      0.25         6
All Reefs                    1 114    1 043     26.00      0.25         6

Kusasalethu
VCR Reef                     2 420    2 236     34.00      0.31        10
All Reefs                    2 420    2 236     34.00      0.31        10

Total Target
(incl. Target 1 & Target 3)
Elsburg                        159       39    109.00      0.03         3
Basal                          148      184      8.00      1.97        16
A Reef                         141      302     24.00      0.52        13
B Reef                         375      295     46.00      0.20         9
All Reefs                      823      820     33.00      0.35        12

Masimong 5
Basal                        1 858    1 588     13.00      0.75        10
B Reef                         597      679     35.00      1.02        36
All Reefs                    2 454    2 267     20.00      0.88        18

Unisel
Basal                          453      282     81.00      0.17        14
Leader                       1 663    1 299     92.00      0.15        14
All Reefs                    2 116    1 581     90.00      0.16        14

Joel
Beatrix                        956    1 161     48.00      0.20        10
All Reefs                      956    1 161     48.00      0.20        10

Total Harmony
Basal                         4 986   4 534     23.00      0.56        13
Beatrix                         956   1 161     48.00      0.20        10
Leader                        1 663   1 299     92.00      0.15        14
B Reef                        1 129   1 125     42.00      0.59        25
A Reef                          141     302     24.00      0.52        13
Elsburg                         159      39    109.00      0.03         3
South Reef                    1 114   1 043     26.00      0.25         6
VCR                           2 420   2 236     34.00      0.31        10

All Reefs                    12 567  11 741     38.00      0.34        13


Date 5 November 2014
Date: 05/11/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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