HARMONY GOLD MINING COMPANY LIMITED - Q1 FY15 Results for the Quarter ended 30 September 2014Release 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').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
|
