Go Back Email this Link to a friend


HARMONY GOLD MINING COMPANY LIMITED - Q4 FY15 results for the fourth quarter and year ended 30 June 2015

Release Date: 18/08/2015 07:05:00      Code(s): HAR       PDF(s):  
Q4 FY15 results for the fourth quarter and year ended 30 June 2015

Harmony Gold Mining Company Limited
("Harmony" or "Company")
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228

Q4 FY15
RESULTS
FOR THE FOURTH
QUARTER AND
YEAR ENDED
30 JUNE 2015

KEY FEATURES
Quarter on quarter
-     Gold production increased by 4% to 7 977kg (256 465oz)
-     Gold sold increased by 12% to 8 321kg (267 523oz)
-     All-in sustaining costs remained stable at R478 746/kg (down 2% at US$1 233/oz)
-     Headline earnings per share increased from loss of 60 SA cents to profit of 44 SA cents
      (from 5 US cents loss to 4 US cents profit)

Year on year
-    Gold production decreased by 8% to 33 513kg (1.08moz)
     – closure of unprofitable Target 3
     – Kusasalethu, Hidden Valley and Doornkop restructured for profitability
-    Underground recovered grade stable y-on-y at 4.75g/t
-    All-in sustaining costs increased by 11% from R413 433/kg to R458 626/kg
     (stable at US$1 246)
-    Operational capital expenditure reduced by 2% from R2.52bn (US$243m) to R2.47bn
     (US$216m)
-    Net loss of R4.5 billion (US$396 million) recorded in FY15
     – Impairment of R3.5 billion (US$303 million)(1)
-    Headline loss per share of 189 SA cents (17 US cents)

(1) US$ convenience translation for year ended 30 June 2015 is US$/R11.45

                                                   Quarter    Quarter        Q-on-Q
                                                      June      March      variance    Year ended   Year ended     Variance
                                                      2015       2015             %     June 2015    June 2014            %     
Gold produced                      - kg              7 977      7 642             4        33 513       36 453          (8)
                                   – oz            256 465    245 697             4     1 077 466    1 171 987          (8)
Cash operating costs               – R/kg          389 671    377 901           (3)       369 203      328 931         (12)
                                   – US$/oz          1 003      1 001             –         1 003          988          (2)
Gold sold                          – kg              8 321      7 444            12        34 332       36 288          (5)
                                   – oz            267 523    239 330            12     1 103 793    1 166 682          (5)
Underground grade                  – g/t              4.61       4.75           (3)          4.75         4.77            –
Total costs and capital            – R/kg          465 923    454 211           (3)       442 895      397 964         (11)
                                   – US$/oz          1 200      1 203             –         1 203        1 196          (1)
All-in sustaining costs            – R/kg          478 746    474 873           (1)       458 626      413 433         (11)
                                   – US$/oz          1 233      1 258             2         1 246        1 242            –
Gold price received                – R/kg          463 910    460 569             1       449 570      432 165            4
                                   – US$/oz          1 195      1 220           (2)         1 222        1 299          (6)
Production profit                  – R million         627        643           (2)         2 802        3 794         (26)
                                   – US$ million        52         55           (5)           245          367         (33)
Basic loss per share               – SAc/s           (725)       (61)        >(100)       (1 044)        (293)       >(100)
                                   – USc/s            (60)        (5)        >(100)          (91)         (27)       >(100)
Headline earnings/(loss)           – Rm                191      (262)          >100         (821)          114       >(100)
                                   – US$ million        16       (22)          >100          (72)           12       >(100)
Headline earnings/(loss) per share – SAc/s              44       (60)          >100         (189)           26       >(100)
                                   – USc/s               4        (5)          >100          (17)            2       >(100)
Exchange rate                      – R/US$           12.08      11.74             3         11.45        10.35           11

HARMONY'S ANNUAL REPORTS
Harmony's Integrated Annual Report, the Sustainable Development Information which serves as supplemental
information to the Integrated Annual Report and its annual report filed on a Form 20F with the United States'
Securities and Exchange Commission for the financial year ended 30 June 2015 will be available on our website
(www.harmony.co.za/investors) on 23 October 2015.

Mineral resource and reserve information as at 30 June 2015 is included in this report.

CONTACT DETAILS

Corporate Office

Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue
Randfontein, 1759, South Africa
Tel: +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

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

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

Company Secretary

Riana Bisschoff
Tel: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
Email: 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
Tel: +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

ADR(2): 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
Tel: +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

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 state-ments 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.

SHAREHOLDER INFORMATION
Issued ordinary share capital at 30 June 2015                    436 187 133
Issued ordinary share capital at 31 March 2015                   436 094 323
Issued ordinary share capital at 30 June 2014                    435 825 447

Market capitalisation
At 30 June 2015 (ZARm)                                                 6 800
At 30 June 2015 (US$m)                                                   560
At 31 March 2015 (ZARm)                                                9 219
At 31 March 2015 (US$m)                                                  761
At 30 June 2014 (ZARm)                                                13 576
At 30 June 2014 (US$m)                                                 1 276

Harmony ordinary shares and ADR prices
12-month high (1 July 2014 – 30 June 2015)                                                                       
for ordinary shares                                                    38.50
12-month low (1 July 2014 – 30 June 2015)
for ordinary shares                                                    15.32
12-month high (1 July 2014 – 30 June 2015) for ADRs                     3.29
12-month low (1 July 2014 – 30 June 2015) for ADRs                      1.31

Free float                                                              100%

ADR ratio                                                                1:1

JSE Limited                                                              HAR
Range for quarter (1 April – 30 June 2015
closing prices)                                              R24.34 – R15.59

Average daily volume for the quarter (1 April –
30 June 2015)                                               1 677 721 shares

Range for quarter (1 January – 31 March 2015
closing prices)                                              R20.47 – R35.50

Average daily volume for the quarter (1 January –
31 March 2015)                                              1 473 990 shares

Range for year (1 July 2014 – 30 June 2015
closing prices)                                              R35.50 – R15.59

Average daily volume for the year (1 July 2014 –
30 June 2015)                                               1 700 854 shares

Range for year (1 July 2013 – 30 June 2014
closing prices)                                              R24.48 – R42.47

Average daily volume for the year (1 July 2013 –
30 June 2014)                                               1 216 789 shares

New York Stock Exchange including other
US trading platforms                                                     HMY

Range for quarter (1 April – 30 June 2015
closing prices)                                            US$2.07 – US$1.31

Average daily volume for the quarter (1 April –
30 June 2015)                                                      2 212 229

Range for quarter (1 January – 31 March 2015
closing prices)                                            US$1.69 – US$3.14

Average daily volume for the quarter (1 January –
31 March 2015)                                                     3 473 101

Range for year (1 July 2014 – 30 June 2015
closing prices)                                            US$3.29 – US$1.31

Average daily volume for the year (1 July 2014–
30 June 2015)                                                      2 989 247

Range for year (1 July 2013 – 30 June 2014
closing prices)                                            US$2.36 – US$4.33

Average daily volume for the year (1 July 2013 –
30 June 2014)                                                      2 923 933

Investors' calendar
Release of Harmony's Integrated Annual Report of FY15        23 October 2015
Q1 FY16 presentation (webcast and conference calls only)     5 November 2015
Annual General Meeting                                      20 November 2015
Q2 FY16 live presentation from Johannesburg                  4 February 2016
Q3 FY16 presentation (webcast and conference calls only)          9 May 2016
Q4 FY16 live presentation from Johannesburg                   17 August 2016

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

Although there are a number of uncertainties that we have to deal
with, Harmony's board and management will continue to manage
what we can – production and costs. We have restructured under-
performing operations, cut corporate costs, curtailed our capital
expenditure and reduced our labour numbers. Our strategy
remains unchanged: being a value focused company – one that
creates value through increasing margins and generating the cash
necessary to develop Golpu in Papua New Guinea.

To ensure that the value of all of our assets are accounted for in
our share price and to create a viable investment case, we are
assessing ways of funding Golpu and unlocking the true value of
each of our assets. This will ensure positive shareholder returns in
the long term.

We are in the process of developing a magnificent copper-gold
project, Golpu, in Papua New Guinea. Our exploration team has
enjoyed, and continues to enjoy, considerable success in locating
copper-gold mineralisation. Towards the end of July 2015 we
announced the superb exploration drilling results from Kili Teke
– a porphyry style mineralisation with significant copper-gold
intercepts. More upside potential exists as Harmony continues
to explore. In a world where new discoveries are rare, we are
encouraged by the prospect that Kili Teke could well develop into
another major copper-gold discovery.

1    SAFETY

I am pleased to report a significant improvement in the company's
safety performance with Harmony recording its first ever fatality-
free quarter in the second quarter of FY15. Safety performance in
terms of all parameters measured improved during the year.

We are not content with our performance though, as nine lives
were tragically lost at our mines during the year under review.
The colleagues we mourn are Mhanjelwa Cebani, a rockdrill operator
at Doornkop, Mosoeu Ntsutheleng, a team leader at Kusasalethu,
and Mariselunes Thibello, a rock drill operator at Bambanani, who
were involved in fatal falls of ground; Mmaneo Florisa Muso from
Tshepong, Michael Chobeng from Masimong and Maxwell Wari
from Hidden Valley who were involved in transport accidents;
Bernardo Ernesto Cuambe, an engineering assistant at Unisel,
who was involved in a headgear accident; and security officers,
Sello Jacob Bobejaan and Thapelo Andries Mofokeng who
succumbed to gas and smoke inhalation from a self-made heating
device inside their security cubicle at Brand 1 ventilation shaft. 
To their families, their friends and their colleagues, I send our most
sincere condolences.

Following each incident in which an injury occurs – whether fatal
or not – an incident report detailing "lessons learnt" is circulated
to all operations to enable them to scrutinise their own systems
and procedures. This enables them to pro-actively identify potential
shortcomings and to take remedial action where necessary to
prevent a recurrence of any such incident.

Emphasis on health and safety campaigns has been reinforced,
via communication initiatives and regular visits underground by
senior management. To achieve zero harm, visible felt leadership
is enforced at all levels, based on our commitment to safety as a
priority that is embedded in our organisational culture. Initiatives
implemented at the operations encourage safer behaviour
throughout the company. Zero harm has not only become our
mantra, but an objective that can be achieved.

2    OPERATIONAL RESULTS

Quarter on quarter
Gold production for the June 2015 quarter increased by 4% to
7 977 kilograms (Mar 15: 7 642kg) with significant improvements
from Tshepong and Target 1.

Gold production increased at the following operations when
compared to the March 2015 quarter:

-   Tshepong's (+252kg) 20% increase in tonnes milled (42 000t)
    in the June 2015 quarter, combined with an 8% improvement
    in the recovery grade to 4.43g/t (Mar 15: 4.12g/t) resulted in
    a 29% increase in kilograms produced;

-   Target 1 (+118kg) milled 13 000 tonnes (7%) more than in
    the March 2015 quarter, whilst the recovered grade increased
    by 6% to 5.03g/t (Mar 15: 4.73g/t) for the quarter under
    review, resulting in a 14% increase in gold production;

-   Hidden Valley (+54kg) increased gold production by 8% when
    compared to the March 2015 quarter mainly due to a 12%
    increase in the recovered grade to 1.64g/t (Mar 15: 1.46g/t)
    for the June 2015 quarter. The increase in recovered grade
    was partially offset by a 4% decrease in tonnes milled.

The increase in gold production was however partially offset by
decreases at the following operations:

-   Phakisa (-30kg) milled 5 000 tonnes (3%) less than in the March
    2015 quarter, resulting in a 4% decrease in gold produced;

-   Joel (-30kg) recorded a 14% decrease in the recovered grade
    at 3.83g/t (Mar 15: 4.43g/t). This was however partially offset
    by a 9% increase in tonnes milled resulting in a 5% decrease
    in gold produced;

-   Unisel (-27kg) recorded a 7% decrease in gold production as
    a result of a 7% decrease in the recovery grade to 3.75g/t
    (Mar 15: 4.03g/t).

Production profit decreased by 2% to R627 million. In the
June 2015 quarter, gold sold increased by 12% and revenue
increased by 13% quarter on quarter.

During the June 2015 quarter the US dollar gold price received
decreased by 2% to US$1 195/oz (Mar 15: US$1 220/oz), offset
by a weakening of the rand against the dollar.

Cash operating costs for the June 2015 quarter were 8%
higher quarter on quarter. Total capital expenditure for the
June 2015 quarter increased by only 3% to R728 million
(Mar 15: R710 million).

The all-in sustaining costs remained fairly steady with a 1%
increase in the June 2015 quarter to R478 746/kg, compared to
R474 873/kg in the March 2015 quarter.

Year on year
Gold production for FY15 decreased by 8% to 33 513 kilograms,
compared to 36 453 kilograms in FY14.

There was an increase in production at the following operations:

-    Bambanani (+332kg) increased tonnes milled by 11%
     (23 000t) for FY15; combined with a 2% increase in the
     recovery grade to 12.70g/t (FY14: 12.50g/t) and gold
     production increased by 13%;

-    Phakisa (+142kg) increased tonnes milled by 6% during FY15
     to 611 000 tonnes.

Gold production decreased at the following operations:

-    Kusasalethu (-741kg) milled 235 000 tonnes (21%) less than
     in FY14. Production at the shaft was hampered by safety
     stoppages, underground fires and illegal mining activities
     during FY15;

-    Target 1's (-669kg) recovered grade returned to expected
     levels in FY15 at 5.11g/t (FY14: 5.83g/t) and was the main
     reason for the 15% decrease in gold production;

-    Hidden Valley's (-349kg) tonnes milled decreased by 9%
     (176 000t) in FY15. Production was affected by a tear in the
     overland conveyor belt towards the end of the December 2014
     quarter, as well as planned maintenance at the metallurgical
     plant in the first half of 2015;

-    Masimong (-255kg) recorded a 9% decrease in the recovery
     grade at 3.68g/t for FY15, compared to 4.06g/t in FY14.

-    Suspended operations: Target 3 (-930kg) was placed on care
     and maintenance during FY15 and produced its last gold in
     the December 2014 quarter. Steyn 2 (-392kg) was closed in
     FY14 and produced no gold in FY15.

3    FINANCIAL RESULTS

Year on year
Production profit
Production profit for FY15 decreased to R2.8 billion compared
to R3.8 billion in FY14. This was mainly due to the 8% decrease
in gold production, as well as a 6% increase in operating costs
for FY15.

Gold price received
The rand gold price received increased by 4% to
R449 570/kg in FY15, compared to R432 165/kg in FY14. The
increase was due to a weakening of the rand against the US dollar
from US$/R10.35 to US$/R11.45.

All-in sustaining costs
All-in sustaining costs increased by 11% in FY15 to R458 626/kg, 
compared to R413 433/kg in FY14, largely due to the under-
performance of some of our operations.

Revenue
Revenue decreased by 2% as a result of the 5% decrease in gold
sold to 34 332kg in FY15, more than offset by a 4% increase in the
Rand gold price received at R449 570/kg in FY15.

Production costs
Production costs increased by 6% to R12.6 billion in FY15. Cost
containment remained a priority in FY15. Cash operating costs
only increased by 3% despite inflationary increases and increases
above inflation in electricity costs. Production costs for the year
include R260 million as a result of the reduction in gold inventory
during the year.

Other items in costs of sales
Other items included in cost of sales for the year ended
30 June 2015 include employment termination and restructuring
costs of R251 million mainly relating to restructuring at Kusasalethu,
Masimong, Hidden Valley, management retrenchments and
closure of Target 3.

Loss on scrapping of property, plant and equipment
Loss on scrapping of property, plant and equipment of R491 million
recorded in FY15, of which R430 million relates to the life-of-mine
optimisation process finalised in December 2014. The optimisation
resulted in the abandoning of shaft levels and raise lines at
Kusasalethu and Masimong.

Borrowings
At year-end total borrowings comprised R400 million drawdown
on the Nedbank facility as well as US$250 million on the
US$ revolving credit facility.

Quarter on quarter
Impairment of assets
The impairment of R3 471 million in the June 2015 quarter
consists of an impairment of R2 114 million in respect of Hidden
Valley, R1 036 million on Doornkop, R278 million on Phakisa
and R43 million on Freddies 9. 

The impairments are due to the restructuring of operations for profitability
and in response to low commodity prices and high operating costs, which resulted 
in a reduced life of mine.


Deferred taxation
A deferred tax credit of R558 million was recorded following the
net decrease in the deferred tax rates year on year for the South
African companies, and impairments recognised on property, plant
and equipment.

Net loss
The net loss for the June 2015 quarter was R3 152 million, mainly
due to the impairment of R3 471 million recorded, compared to a
net loss of R263 million in the March 2015 quarter.

Headline earnings per share
Headline earnings per share increased to 44 SA cents from a loss
of 60 SA cents in the March 2015 quarter.

4    EMPLOYEE RELATIONS

4.1 Restructuring
On 19 May 2015, Harmony started a 60 day consultation process
with organised labour at its Doornkop mine in terms of section 189A
of the Labour Relations Act, 66 of 1995 (Section 189A) with a
view to find ways to return the mine to profitability or to place
the mine on care and maintenance. Following several meetings
with organised labour, Harmony and the unions have agreed to
a new operational plan for Doornkop that will return the mine to
profitability, thus saving a significant number of jobs.

Doornkop mine's newly agreed plan provides for more than 3 100
employees (including contractors), with only 526 employees
(including contractors) being affected. The majority of these
employees have been transferred to other operations. Of the 526,
about 183 people have either been re-skilled for redeployment
elsewhere in Harmony or elected to accept a voluntary severance
package.

At Masimong, with its marginal grades, the mine has been
restructured for profitability by reducing development rates and
concentrating on higher-grade areas. This strategy will reduce the
mine's remaining operational life expectancy to about two years
and, while this is short, they are expected to be two profitable
years. A total of 373 people were affected, of which 229 were
transferred to other operations and 74 accepted voluntary
severance packages.

At the Hidden Valley mine our focus has been on cutting costs by
revising the mine plan to encompass a lower stripping ratio and on
tighter control of the mine's operations. On 18 July 2015, a road
accident occurred at Hidden Valley, fatally injuring one employee.
The mine has been closed for two weeks while intensive safety
audits are taking place. This is likely to impact the production of
the first quarter of FY16.

4.2 Wage negotiations
The 2015 round of wage negotiations in the gold sector began
on 22 June 2015 between the Chamber of Mines, representing
five gold companies, and the four trade unions: Association of
Mine Workers and Construction Union (AMCU), National Union of
Mine Workers (NUM), UASA and Solidarity. The approach to this
year's wage negotiations has been distinctly different in the hope
that the negotiated outcome is cognisant of the economic realities
of the individual gold producers negotiating under the auspices of
the Chamber of Mines. Discussions are ongoing.

5    GOLPU

The Conservation and Environment Protection Authority of Papua
New Guinea has granted a Level 2B environmental permit in
respect of proposed advanced exploration and feasibility support
activities. Owners' representatives are engaging with this authority
on the detail of the permit conditions.

Revised block cave footprint designs and preliminary production
schedules have been completed as part of the stage 1 feasibility
study. Work has commenced on the stage 2 prefeasibility study.

The owners' representatives continue to engage with the
government's negotiating team to finalise a pre-mining
development agreement terms sheet for endorsement by the
National Executive Committee.

6    EXPLORATION

Kili Teke (PNG – 100% held by Harmony)

The mineralised footprint (defined by the 0.2% copper envelope)
currently stands at 600m long, 200m wide and 700m deep, and
remains open along strike and at depth. Geology and results from
KTDD012 and KTDD013 (186m@1.02Cu, 0.72g/t Au from 256m),
together with KTDD007 (202m @ 0.74% Cu, 0.57g/t Au from
137m) are extremely encouraging as they reflect high grade zones
developing within the mineralised envelope.

The project is a major new greenfield copper-gold discovery and
drilling to convert the prospect into a new copper-gold resource
continues. Kili Teke could well be another Golpu.

Graham Briggs
Chief Executive Officer

SUMMARY UPDATE OF HARMONY'S MINERAL RESOURCES AND MINERAL
RESERVES AS AT 30 JUNE 2015

Harmony's statement of mineral resources and mineral reserves as
at 30 June 2015 is compliant with the South African Code for the
Reporting of Mineral Resources and Mineral Reserves (SAMREC)
and the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC).

This report provides a summary of the update, while the detailed
statement of the mineral resources and mineral reserves will be
published in the Integrated Report on 23 October 2015, which will
be available at www.harmony.co.za/investors. It should be noted
that the mineral resources are reported inclusive of the mineral
reserves.

Harmony use certain terms in the summary such as 'measured',
'indicated' and 'inferred' resources, which the United States'
Securities and Exchange Commission (SEC) guidelines strictly
prohibit US-registered companies from including in their filings
with the SEC. US investors are urged to consider the disclosure in
this regard in our Form 20-F which will be available on 23 October
2015.

South African underground operations
The company's mineral resources at the South African underground
operations as at 30 June 2015 are 60.6 Moz (217.2 Mt at 8.68 g/t)
A decrease of 27% year on year from the 83.3 Moz declared as at
30 June 2014. This decrease is due to depletion by mining during
the year, the exclusion of Freddies No 9 shaft and downscaling at
Masimong. The company's mineral reserves at the South African
underground operations as at 30 June 2015 are 15.0 Moz (80.3
Mt at 5.82 g/t), a decrease of 25% year on year from the 19.9
Moz declared as at 30 June 2014. The decrease is due to depletion
by mining during the year, placing of Target No 3 on care and
maintenance and changes to the Life of mine (LOM) profile at
various operations.

South African surface operations including Kalgold
The company's mineral resources at the South African surface
operations as at 30 June 2015 are 9.5 Moz (1082.3 Mt at 0.27g/t).
A decrease of 1% year on year from the 9.6 Moz declared as
at 30 June 2014. This decrease is due to depletion by mining
and exclusion of surface sources at Joel. The company's mineral
reserves at the South African surface operations as at 30 June
2015 are 7.1 Moz (835.9 Mt at 0.26 g/t), a decrease of 12% year
on year from the 8.0 Moz declared at 30 June 2014. The decrease
is due to depletion by mining and exclusion of surface sources
at Joel.

Papua New Guinea (PNG) operations
The company's mineral resources at the PNG operations as at
30 June 2015 are 40.2 Moz, a decrease of 2% year on year
from the 40.9 Moz declared as at 30 June 2014. This decrease
is due to depletion by mining during the year, and changes to
open pit spatial constraint. The company's mineral reserves at
the PNG operations as at 30 June 2015 are 20.5 Moz, a decrease
of 5% year on year from the 21.5 Moz declared as at 30 June
2014. The decrease is due to depletion by mining during the year,
and changes to the life of mine (LOM) profile at Hidden Valley
operation. The reserves that we declared for Golpu are based on
the prefeasibility study completed in 2012.

During December 2014 Harmony released an updated prefeasibility
study with respect to the Golpu project. Please refer to our website
(https://www.harmony.co.za/our-business/exploration/golpu-
updated-prefeasibility-results) for details. There will be an update
to the reserves of Golpu once the feasibility study for stage 1 and
the prefeasibility study for stage 2 have been completed. The
studies are expected to be completed in January 2016.

Total Harmony
The company's attributable gold equivalent mineral resources are
declared as 110.3 Moz as at 30 June 2015, a 18% decrease year
on year from the 133.8 Moz declared on 30 June 2014.

The gold contained in the mineral resources in South Africa
represent 63.5% of the company total, the PNG operations
represent 36.5% of Harmony's total gold and gold equivalent
mineral resources as at 30 June 2015.

As at 30 June 2015, Harmony's attributable gold and gold
equivalent mineral reserves amounted to 42.6Moz of gold, a 14%
decrease from the 49.5Moz declared at 30 June 2014.

The gold reserve ounces in South Africa represent 51.9% while
the PNG gold and gold equivalent ounces represent 48.1% of
Harmony's total mineral reserves as at 30 June 2015.

In converting the mineral resources to mineral reserves, the
following commodity prices and exchange rates were applied:

-     A gold price of US$1 230/oz

-     An exchange rate of US$/ZAR11.38

-     The above parameters resulted in a rand gold price of
      R450 000/kg for the South African assets

-     The Hidden Valley mine and Golpu project in the
      Morobe Mining Joint Venture used commodity prices
      of US$1 250/oz Au, US$20/oz Ag, US$10/lb Mo and
      US$3.10/lb Cu at an exchange rate of US$0.85 per A$

-     Gold equivalent ounces are calculated assuming
      US$1 400/oz Au, US$3.10/lb Cu and US$23.00/oz Ag, and
      assuming a 100% recovery for all metals. These are the same
      assumptions as those used in the 2012 prefeasibility study
      for the calculation of gold equivalent ounces

Harmony's South African mineral resources and reserves were
reviewed by SRK Consulting Engineers and Scientists for
compliance with SAMREC.

The mineral resources and reserves of the Papua New Guinea
assets were reviewed by AMC Consultants Pty Ltd for compliance
with the standards set out in JORC.

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

TABLE OF MINERAL RESOURCES AND MINERAL RESERVES AS AT 30 JUNE 2015

                                                        Measured                         Indicated                         Inferred                         Total
                                            Tonnes                   Gold      Tonnes                   Gold     Tonnes                 Gold      Tonnes                 Gold
Resources: gold & gold equivalents            (Mt)           g/t   '000oz        (Mt)          g/t    '000oz       (Mt)         g/t   '000oz        (Mt)        g/t    '000oz
SA underground                                71.6          9.52   21 911        76.5         8.45    20 792       69.1        8.06   17 905       217.2       8.68    60 608
SA surface incl Kalgold                      358.0          0.29    3 350       652.2         0.24     5 136       72.0        0.42      968     1 082.3       0.27     9 454
Total South Africa                           429.6                 25 261       728.7                 25 928      141.1               18 873     1 299.5               70 062
Hidden Valley*                                 1.6          1.11       56        40.1         1.60     2 059        1.2        1.37       52        42.8       1.57     2 166
Walfi-Golpu system*                                                             484.9         0.74    11 581      140.0        0.59    2 649       624.9       0.71    14 230
Total Papua New Guinea                         1.6                     56       525.0                 13 639      141.1                2 701       667.7               16 396
Total gold resources                         431.2                 25 316      1253.7                 39 567      282.3               21 574     1 967.2               86 458
Hidden Valley – gold equivalent ounces*        1.4                     16        38.5                    659        1.1                   21        41.0                  696
Walfi-Golpu – gold equivalent ounces*                                           428.2                 19 521      128.6                3 620       556.8               23 141
Total gold equivalent Resources**              1.4                     16       466.7                 20 180      129.7                3 641       597.8               23 837
Total Harmony gold & gold equivalent 
resources**                                  431.2                 25 332     1 253.7                 59 747      282.3               25 215     1 967.2              110 294

                                                        Measured                         Indicated                         Inferred                         Total
Resources: silver & copper                  Tonnes                 Silver      Tonnes                 Silver     Tonnes               Silver      Tonnes               Silver
(Used in equivalent calculations)             (Mt)           g/t   '000oz        (Mt)          g/t    '000oz       (Mt)         g/t   '000oz        (Mt)        g/t    '000oz
Hidden Valley                                  1.4         20.40      917        38.5        29.80    36 880        1.1       33.34    1 162        41.0      29.57    38 959
                                            Tonnes                 Copper      Tonnes                 Copper     Tonnes               Copper      Tonnes               Copper
                                              (Mt)             %     'Mlb        (Mt)            %      'Mlb       (Mt)           %     'Mlb        (Mt)          %      'Mlb
Golpu                                                                           428.2         0.93     8 809      108.7        0.64    1 544       536.9       0.87    10 353
Nambonga                                                                                                           19.9        0.21       92        19.9       0.21        92
Total                                                                           428.2         0.93     8 809      128.6        0.58    1 636       556.8       0.85    10 445

                                                                                            Proved                         Probable                         Total
                                                                               Tonnes                   Gold     Tonnes                 Gold      Tonnes                 Gold
Reserves: gold & gold equivalents                                                (Mt)          g/t    '000oz       (Mt)         g/t   '000oz        (Mt)        g/t    '000oz
SA underground                                                                   42.5         5.97     8 171       37.7        5.65    6 845        80.3       5.82    15 016
SA surface incl Kalgold                                                         268.3         0.29     2 481      567.6        0.25    4 581       835.9       0.26     7 062
Total South Africa                                                              310.8                 10 652      605.4               11 425       916.2               22 078
Hidden Valley*                                                                    1.6         1.11        56       13.1        1.84      773        14.6       1.76       828
Walfi-Golpu system*                                                                                               225.0        0.86    6 194       225.0       0.86     6 194
Total Papua New Guinea                                                            1.6                     56      238.1                6 967       239.6                7 022
Total gold reserves                                                             312.4                 10 708      843.4               18 392     1 155.8               29 100
Hidden Valley – gold equivalent ounces*                                           1.4                     15       12.0                  218        13.4                  232
Walfi-Golpu – gold equivalent ounces*                                                                             225.0               13 265       225.0               13 265
Total gold equivalent reserves**                                                  1.4                     15      237.0               13 482       238.4               13 497
Total Harmony gold & gold equivalent reserves**                                 312.4                 10 722      843.4               31 874     1 155.8               42 597

                                                                                            Proved                         Probable                         Total
Reserves: silver & copper                                                      Tonnes                 Silver     Tonnes               Silver      Tonnes               Silver
(Used in equivalent calculations)                                                (Mt)          g/t    '000oz       (Mt)         g/t   '000oz        (Mt)        g/t    '000oz
Hidden Valley                                                                     1.4        20.40       917       12.0       35.12   13 582        13.4      33.59    14 499
                                                                               Tonnes                 Copper     Tonnes               Copper      Tonnes               Copper
                                                                                 (Mt)            %      'Mlb       (Mt)          %      'Mlb        (Mt)          %      'Mlb
Golpu                                                                                                             225.0        1.21    5 992       225.0       1.21     5 992

*  Represents Harmony's 50% portion
** In instances where individual deposits may contain multiple valuable commodities with a reasonable expectation of being recovered (for example gold and copper in a single deposit) Harmony computes a gold equivalent to more easily assess
   the value of the deposit against gold-only mines. Harmony does this by calculating the value of each of the deposits commodities, then dividing the product by the price of gold. For example, the gold equivalent ounces for the copper portion
   of a deposit would be calculated as follows: (copper pounds x copper price per pound)/gold price per ounce. All gold equivalent calculations are done using metal prices and parameters as stipulated above.

Competent person's declaration
In South Africa, Harmony employs 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, MSAIMM, who
has 20 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).

Mr Boshoff is the Harmony Lead Competent Person.

-   Resources and reserves Papua New Guinea:

Gregory Job, BSc, MSc, who has 27 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.

Jaco Boshoff                 Greg Job
30 June 2015                 30 June 2015
Physical address
Randfontein Office park      Level 2
Corner of Main Reef Road     189 Coronation Drive
and Ward Avenue              Milton, Queensland 4064
Randfontein                  Australia
South Africa

Postal address
PO Box 2                     PO Box 1562
Randfontein                  Milton, Queensland
1760                         4064
South Africa                 Australia

Administrative information for professional
organisations

AusIMM – The Australasian Institute of Mining and
Metallurgy

PO Box 660, Carlton South, Vic 3053, Australia
Telephone: +61 3 9658 6100;
Facsimile: +61 3 9662 3662
http://www.ausimm.com.au/

SACNASP – The legislated regulatory body for natural
science practitioners in South Africa

Private Bag X540, SILVERTON, 0127,
Gauteng Province, South Africa
Telephone: +27 (12) 841-1075;
Facsimile: +27 (12) 841-1057
http://www.sacnasp.org.za/

SAIMM – The Southern African Institute of Mining and
Metallurgy

PO Box 61127, Marshalltown, 2107,
Gauteng Province, South Africa
Telephone: +27 (011) 834-1273/7;
Facsimile: +27 (011) 838-5923/8156
http://www.saimm.co.za/

AIG – The Australian Institute of Geoscientists

PO Box 576, CROWS NEST NSW 1585, Australia
Telephone: +61 2 9431 8662;
Facsimile: + 61 2 9431 8677
email: aig@aig.org.au/
http://www.aig.org.au/

Legal entitlement to the minerals being
reported upon
The Harmony South Africa operations operate under new order
mining rights in terms of the Minerals and Petroleum Resources
Development of Act of 2002 (Act No. 28, of 2002) (MPRDA). In
PNG Harmony operates under the Independent Sate of Papua
New Guinea Mining Act 1992. All required operating permits
have been obtained, and are in good standing. The legal tenure of
each operation and project has been verified to the satisfaction of
the accountable Competent Person.

OPERATING RESULTS – QUARTER ON QUARTER (RAND/METRIC) (US$/IMPERIAL)

                                                                        South Africa      
                                                                  Underground production                                                                  Surface production                                                                                                  Three                                                                                                                   Total
                               months                                                                                                    Total                                 Total      South    Hidden      Total
                                ended  Kusasalethu  Doornkop  Phakisa  Tshepong Masimong  Target 1  Bambanani      Joel   Unisel  Underground   Phoenix     Dumps   Kalgold  Surface     Africa    Valley    Harmony
Ore milled         - t'000     Jun-15          235       149      153       253      153       188         59       139       96        1 425     1 581       648       367    2 596      4 021       451      4 472
                               Mar-15          197       156      158       211      144       175         55       127       96        1 319     1 500       751       346    2 597      3 916       469      4 385
Gold produced      - kg        Jun-15          915       667      730     1 121      532       945        769       533      360        6 572       207       200       259      666      7 238       739      7 977
                               Mar-15          929       650      760       869      528       827        748       563      387        6 261       204       222       270      696      6 957       685      7 642
Gold produced      - oz        Jun-15       29 418    21 445   23 470    36 041   17 104    30 382     24 724    17 136   11 574      211 294     6 655     6 430     8 327   21 412    232 706    23 759    256 465
                               Mar-15       29 868    20 898   24 435    27 939   16 976    26 589     24 049    18 101   12 442      201 297     6 559     7 137     8 681   22 377    223 674    22 023    245 697
Yield              - g/tonne   Jun-15         3.89      4.48     4.77      4.43     3.48      5.03      13.03      3.83     3.75         4.61      0.13      0.31      0.71     0.26       1.80      1.64       1.78
                               Mar-15         4.72      4.17     4.81      4.12     3.67      4.73      13.60      4.43     4.03         4.75      0.14      0.30      0.78     0.27       1.78      1.46       1.74
Cash operating     - R/kg      Jun-15      475 130   405 966  406 418   367 940  458 677   334 152    237 464   369 006  459 372      383 311   376 024   375 125   392 251  382 065    383 197   453 077    389 671
costs                          Mar-15      453 214   407 286  377 879   438 522  436 333   336 706    227 365   311 538  435 292      379 620   340 902   394 122   386 496  375 565    379 214   364 561    377 901
Cash operating     - $/oz      Jun-15        1 223     1 045    1 047       947    1 181       860        611       950    1 183          987       968       966     1 010      984        987     1 167      1 003
costs                          Mar-15        1 201     1 079    1 001     1 162    1 156       892        602       825    1 153        1 006       903     1 044     1 024      995      1 005       966      1 001
Cash operating     - R/tonne   Jun-15        1 850     1 817    1 939     1 630    1 595     1 680      3 095     1 415    1 723        1 768        49       116       277       98        690       742        695
costs                          Mar-15        2 137     1 697    1 818     1 806    1 600     1 591      3 092     1 381    1 755        1 802        46       117       302      101        674       532        659
Gold sold          - Kg        Jun-15        1 044       673      759     1 166      553       952        800       578      374        6 899       208       194       274      676      7 575       746      8 321
                               Mar-15          976       625      755       864      524       834        743       467      384        6 172       194       216       274      684      6 856       588      7 444
Gold sold          - oz        Jun-15       33 565    21 637   24 402    37 488   17 779    30 607     25 721    18 583   12 024      221 806     6 687     6 237     8 809   21 733    243 539    23 984    267 523
                               Mar-15       31 379    20 094   24 274    27 778   16 847    26 814     23 888    15 014   12 346      198 434     6 237     6 945     8 809   21 991    220 425    18 905    239 330
Revenue            (R'000)     Jun-15      484 792   312 460  351 852   540 523  256 344   442 291    370 676   267 615  173 455    3 200 008    96 678    89 965   126 733  313 376  3 513 384   346 809  3 860 193
                               Mar-15      449 192   286 954  347 963   397 885  241 539   383 403    342 479   215 451  177 009    2 841 875    89 524    99 852   126 033  315 409  3 157 284   271 190  3 428 474
Cash operating     (R'000)     Jun-15      434 744   270 779  296 685   412 461  244 016   315 774    182 610   196 680  165 374    2 519 123    77 837    75 025   101 593  254 455  2 773 578   334 824  3 108 402
costs                          Mar-15      421 036   264 736  287 188   381 076  230 384   278 456    170 069   175 396  168 458    2 376 799    69 544    87 495   104 354  261 393  2 638 192   249 724  2 887 916
Inventory          (R'000)     Jun-15       52 944     3 851   13 463    12 268    9 071     2 758     12 702    11 327    6 981      125 365     (160)   (2 417)     5 463    2 886    128 251   (3 657)    124 594
movement                       Mar-15       22 301  (12 984)  (5 512)       405    (366)   (1 941)    (7 424)  (33 009)  (1 209)     (39 739)   (4 194)   (2 922)     (307)  (7 423)   (47 162)  (55 513)  (102 675)
Operating costs    (R'000)     Jun-15      487 688   274 630  310 148   424 729  253 087   318 532    195 312   208 007  172 355    2 644 488    77 677    72 608   107 056  257 341  2 901 829   331 167  3 232 996
                               Mar-15      443 337   251 752  281 676   381 481  230 018   276 515    162 645   142 387  167 249    2 337 060    65 350    84 573   104 047  253 970  2 591 030   194 211  2 785 241
Production profit  (R'000)     Jun-15      (2 896)    37 830   41 704   115 794    3 257   123 759    175 364    59 608    1 100      555 520    19 001    17 357    19 677   56 035    611 555    15 642    627 197
                               Mar-15        5 855    35 202   66 287    16 404   11 521   106 888    179 834    73 064    9 760      504 815    24 174    15 279    21 986   61 439    566 254    76 979    643 233
Production profit  ($'000)     Jun-15        (239)     3 132    3 453     9 586      270    10 246     14 518     4 934       91       45 991     1 573     1 437     1 629    4 639     50 630     1 295     51 925
                               Mar-15          499     2 999    5 646     1 397      981     9 103     15 316     6 223      831       42 995     2 058     1 302     1 873    5 233     48 228     6 556     54 784
Capital            (R'000)     Jun-15      113 597    57 673   96 529    72 792   34 140    79 055     22 172    49 878   20 228      546 064     1 143     1 397    12 189   14 729    560 793    47 469    608 262
expenditure                    Mar-15      102 713    58 658   93 945    69 942   42 563    73 715     23 860    41 929   18 591      525 916     1 450     1 592    13 519   16 561    542 477    40 685    583 162
Capital            ($'000)     Jun-15        9 405     4 775    7 992     6 026    2 826     6 545      1 836     4 129    1 675       45 209        95       116     1 009    1 220     46 429     3 930     50 359
expenditure                    Mar-15        8 748     4 996    8 001     5 957    3 625     6 278      2 032     3 571    1 583       44 791       123       136     1 151    1 410     46 201     3 465     49 666
Cash operating     - R/kg      Jun-15      599 280   492 432  538 649   432 875  522 850   417 808    266 296   462 585  515 561      466 401   381 546   382 110   439 313  404 180    460 676   517 311    465 923
cost and capital               Mar-15      563 777   497 529  501 491   519 008  516 945   425 842    259 263   386 012  483 331      463 618   348 010   401 293   436 567  399 359    457 190   423 955    454 211
Cash operating     - $/oz      Jun-15        1 543     1 268    1 387     1 115    1 346     1 076        686     1 191    1 328        1 201       983       984     1 131    1 041      1 186     1 332      1 200 
cost and capital               Mar-15        1 493     1 318    1 328     1 375    1 369     1 128        687     1 022    1 280        1 228       922     1 063     1 156    1 058      1 211     1 123      1 203
All-in sustaining  - R/kg      Jun-15      593 635   516 120  550 617   441 458  543 746   435 177    278 032   413 206  538 079      475 031   379 144   408 253   451 333  416 758    469 467   573 007    478 746
costs                          Mar-15      580 834   506 937  505 086   541 040  543 497   428 593    257 253   365 686  506 655      474 925   344 328   405 970   446 887  404 878    467 456   561 306    474 873
All-in sustaining  - $/oz      Jun-15        1 529     1 329    1 418     1 137    1 400     1 121        716     1 064    1 386        1 223       976     1 051     1 162    1 073      1 209     1 467      1 233
costs                          Mar-15        1 539     1 343    1 338     1 433    1 440     1 135        681       969    1 342        1 258       912     1 075     1 184    1 073      1 238     1 482      1 258

OPERATING RESULTS – YEAR ON YEAR (RAND/METRIC) (US$/IMPERIAL)
                                                                                                                                                  South Africa
                                                                                                       Underground production                                                                     Surface production
                                                                                                                                                                                                                       Total
                                 Year                                                                                                                                Total                                 Total       South       Hidden       Total
                                ended  Kusasalethu   Doornkop    Phakisa   Tshepong   Masimong   Target 1   Bambanani       Joel    Unisel  Target 3  Steyn 2  Underground  Phoenix    Dumps  Kalgold    Surface      Africa       Valley     Harmony
Ore milled         - t'000     Jun-15          908        603        611        992        670        749         229        551       417        90        -        5 820    6 245    2 701    1 472     10 418      16 238        1 825      18 063
                               Jun-14        1 143        737        577        947        670        771         206        548       408       301       33        6 341    6 073    2 897    1 472     10 442      16 783        2 001      18 784
Gold produced      - kg        Jun-15        3 953      2 663      3 118      4 278      2 463      3 824       2 908      2 258     1 695       483        -       27 643      867      862    1 198      2 927      30 570        2 943      33 513
                               Jun-14        4 694      2 603      2 976      4 223      2 718      4 493       2 576      2 335     1 838     1 413      392       30 261      835      903    1 162      2 900      33 161        3 292      36 453
Gold produced      - oz        Jun-15       127 09     85 618    100 246    137 540     79 187    122 944      93 495     72 596    54 495    15 529        -      888 742   27 875   27 713   38 517     94 105     982 847       94 619   1 077 466
                               Jun-14      150 916     83 687     95 680    135 772     87 385    144 453      82 821     75 072    59 093    45 429   12 603      972 911   26 846   29 032   37 358     93 236   1 066 147      105 840   1 171 987
Yield              - g/tonne   Jun-15         4.35       4.42       5.10       4.31       3.68       5.11       12.70       4.10      4.06      5.37        -         4.75     0.14     0.32     0.81       0.28        1.88         1.61        1.86
                               Jun-14         4.11       3.53       5.16       4.46       4.06       5.83       12.50       4.26      4.50      4.69    11.88         4.77     0.14     0.31     0.79       0.28        1.98         1.65        1.94
Cash operating     - R/kg      Jun-15      472 112    402 065    373 876    371 149    397 380    308 156     239 552    334 168   397 615   352 497        -      366 928  339 896  382 959  377 547    367 988     367 030      391 774     369 203
costs                          Jun-14      389 762    420 617    358 995    326 498    360 006    233 487     222 764    294 493   326 466   394 522  263 893      327 866  294 408  363 568  351 670    338 887     328 830      329 943     328 931
Cash operating     - $/oz      Jun-15        1 283      1 092      1 016      1 008      1 080        837         651        908     1 080       958        -          997      924    1 041    1 026      1 000         997        1 065       1 003
costs                          Jun-14        1 171      1 264      1 079        981      1 082        702         669        885       981     1 185      793          985      885    1 092    1 057      1 018         988          991         988
Cash operating     - R/tonne   Jun-15        2 055      1 776      1 908      1 601      1 461      1 573       3 042      1 369     1 616     1 892        -        1 743       47      122      307        103         691          632         685
costs                          Jun-14        1 601      1 486      1 852      1 456      1 460      1 361       2 786      1 255     1 471     1 852    3 135        1 565       40      113      278         94         650          543         638
Gold sold          - kg        Jun-15        4 297      2 711      3 156      4 337      2 491      3 868       2 947      2 330     1 715       502        -       28 354      881      864    1 230      2 975      31 329        3 003      34 332
                               Jun-14        4 531      2 633      2 963      4 204      2 708      4 508       2 567      2 308     1 834     1 409      393       30 058      825      895    1 203      2 923      32 981        3 307      36 288
Gold sold          - oz        Jun-15      138 151     87 160    101 468    139 437     80 087    124 358      94 748     74 911    55 138    16 140        -      911 598   28 324   27 778   39 545     95 647   1 007 245       96 548   1 103 793
                               Jun-14      145 673     84 653     95 263    135 161     87 064    144 936      82 530     74 204    58 964    45 301   12 635      966 384   26 524   28 775   38 677     93 976   1 060 360      106 322   1 166 682
Revenue            (R'000)     Jun-15    1 938 854  1 219 563  1 420 103  1 948 230  1 118 128  1 737 965   1 329 685  1 046 231   770 175   222 494        -   12 751 428  396 398  389 163  551 323  1 336 884  14 088 312    1 346 310  15 434 622
                               Jun-14    1 959 013  1 126 208  1 283 570  1 822 120  1 170 982  1 947 595   1 110 756    994 583   792 420   608 508  167 938   12 983 693  357 467  385 899  521 812  1 265 178  14 248 871    1 433 545  15 682 416
Cash operating     (R'000)     Jun-15    1 866 258  1 070 700  1 165 744  1 587 777    978 747  1 178 389     696 616    754 551   673 957   170 256        -   10 142 995  294 690  330 111  452 301  1 077 102  11 220 097    1 152 992  12 373 089
costs                          Jun-14    1 829 543  1 094 866  1 068 368  1 378 800    978 495  1 049 059     573 839    687 640   600 044   557 459  103 446    9 921 559  245 831  328 302  408 640    982 773  10 904 332    1 086 173  11 990 505
Inventory          (R'000)     Jun-15      129 449     21 487     15 055     23 589     12 776     12 463       8 156     14 955     7 904     6 917        -      252 751    4 947      871   10 839     16 657     269 408      (9 898)     259 510
movement                       Jun-14     (76 931)      3 240    (7 240)   (13 782)      4 109      1 709          59   (19 618)     (280)     (622)   3 268     (106 088)  (5 116)  (4 492)   10 019        411   (105 677)        3 520   (102 157)
Operating costs    (R'000)     Jun-15    1 995 707  1 092 187  1 180 799  1 611 366    991 523  1 190 852     704 772    769 506   681 861   177 173        -   10 395 746  299 637  330 982  463 140  1 093 759  11 489 505    1 143 094  12 632 599
                               Jun-14    1 752 612  1 098 106  1 061 128  1 365 018    982 604  1 050 768     573 898    668 022   599 764   556 837  106 714    9 815 471  240 715  323 810  418 659    983 184  10 798 655    1 089 693  11 888 348
Production profit  (R'000)     Jun-15     (56 853)    127 376    239 304    336 864    126 605    547 113     624 913    276 725    88 314    45 321        -    2 355 682   96 761   58 181   88 183    243 125   2 598 807      203 216   2 802 023
                               Jun-14      206 401     28 102    222 442    457 102    188 378    896 827     536 858    326 561   192 656    51 671   61 224    3 168 222  116 752   62 089  103 153    281 994   3 450 216      343 852   3 794 068
Production profit  ($'000)     Jun-15      (4 966)     11 127     20 905     29 427     11 060     47 794      54 591     24 174     7 715     3 959        -      205 786    8 453    5 083    7 703     21 239     227 025       17 752     244 777
                               Jun-14       19 940      2 715     21 490     44 160     18 200     86 642      51 865     31 549    18 613     4 992    5 914      306 080   11 279    5 999    9 965     27 243     333 323       33 220     366 543
Capital            (R'000)     Jun-15      462 863    245 144    403 495    313 317    165 670    295 504     109 910    182 239    99 428    20 437        -    2 298 007    3 641    5 979   40 898     50 518   2 348 525      121 121   2 469 646
expenditure                    Jun-14      508 869    237 922    360 120    300 518    167 874    289 408     124 967    144 903    85 613   128 197    1 739    2 350 130    2 310    8 569   33 134     44 013   2 394 143      122 346   2 516 489
Capital            ($'000)     Jun-15       40 434     21 415     35 248     27 370     14 472     25 814       9 601     15 920     8 686     1 785        -      200 745      318      522    3 573      4 413     205 158       10 581     215 739
expenditure                    Jun-14       49 162     22 986     34 791     29 033     16 218     27 960      12 073     13 999     8 271    12 385      168      227 046      223      828    3 201      4 252     231 298       11 820     243 118
Cash operating     - R/kg      Jun-15      589 203    494 121    503 284    444 388    464 644    385 432     277 347    414 876   456 274   394 810               450 060  344 096  389 896  411 685    385 248     443 854      432 930     442 895
cost and capital               Jun-14      498 170    512 020    480 003    397 660    421 769    297 901     271 276    356 549   373 045   485 248  268 329      405 528  297 175  373 058  380 184    354 064     401 028      367 108     397 964
Cash operating     - $/oz      Jun-15        1 601      1 343      1 367      1 207      1 262      1 047         754      1 127     1 240     1 073        -        1 223      935    1 059    1 119      1 047       1 206        1 176       1 203
cost and capital               Jun-14        1 497      1 539      1 442      1 195      1 267        895         815      1 071     1 121     1 458      806        1 219      893    1 121    1 142      1 064       1 205        1 103       1 196
All-in sustaining  - R/kg      Jun-15      594 399    508 743    501 996    460 844    486 861    399 642     276 855    390 417   477 013   409 945        -      459 347  344 319  403 906  427 005    395 810     453 253      514 690     458 626
costs                          Jun-14      522 347    523 839    486 710    415 061    450 210    312 436     263 867    338 957   397 993   503 810  272 956      418 105  294 615  383 701  397 889    364 396     413 270      415 068     413 433
All-in sustaining  - $/oz      Jun-15        1 615      1 382      1 364      1 252      1 323      1 086         752      1 061     1 296     1 114        -        1 248      936    1 097    1 160      1 075       1 232        1 395       1 246
costs                          Jun-14        1 570      1 574      1 463      1 247      1 353        939         793      1 019     1 196     1 514      820        1 256      885    1 153    1 196      1 095       1 242        1 244       1 242

CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)

                                                                                  Quarter ended                    Year ended   
                                                                     30 June        31 March       30 June      30 June     30 June   
                                                                        2015            2015          2014         2015        2014   
Figures in million                                        Note   (Unaudited)     (Unaudited)   (Unaudited)   (Reviewed)   (Audited)   
Revenue                                                                3 860           3 428         3 763       15 435      15 682   
Cost of sales                                                2       (7 316)         (3 444)       (4 941)     (19 053)    (16 088)   
Production costs                                                     (3 233)         (2 785)       (2 916)     (12 632)    (11 888)   
Amortisation and depreciation                                          (624)           (596)         (526)      (2 472)     (2 143)   
Impairment of assets                                                 (3 471)               –       (1 410)      (3 471)     (1 439)   
Other items                                                               12            (63)          (89)        (478)       (618)   
Gross loss                                                           (3 456)            (16)       (1 178)      (3 618)       (406)   
Corporate, administration and other expenditure                         (95)            (90)         (112)        (378)       (430)   
Social investment expenditure                                           (12)            (20)          (21)         (71)        (88)   
Exploration expenditure                                      3          (44)            (39)         (114)        (263)       (458)   
Profit/(loss) on sale of property,                                                                                                    
plant and equipment                                                        6             (1)            30            6          30   
Loss on scrapping of property, plant and equipment           6          (61)               –             –        (491)           –   
Other expenses (net)                                         8          (12)           (127)          (47)        (378)       (208)   
Operating loss                                                       (3 674)           (293)       (1 442)      (5 193)     (1 560)   
Loss from associates                                         7          (25)               –         (125)         (25)       (109)   
Profit on disposal of investments                                          4               –            14            4           7   
Net (loss)/gain on financial instruments                                (15)               7            32            9         170   
Investment income                                                         57              61            61          229         220   
Finance cost                                                            (61)            (71)         (101)        (264)       (277)   
Loss before taxation                                                 (3 714)           (296)       (1 561)      (5 240)     (1 549)   
Taxation                                                     4           562              33           338          704         279   
Normal taxation                                                            4               3             1            5        (24)   
Deferred taxation                                                        558              30           337          699         303   
Net loss for the period                                              (3 152)           (263)       (1 223)      (4 536)     (1 270)   
Attributable to:                                                                                                                      
Owners of the parent                                                 (3 152)           (263)       (1 223)      (4 536)     (1 270)   
Loss per ordinary share (cents)                              5                                                                        
Basic loss                                                             (725)            (61)         (282)      (1 044)       (293)   
Diluted loss                                                           (725)            (61)         (282)      (1 044)       (293)   

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

The condensed consolidated provisional financial statements (condensed consolidated financial statements) for the year ended
30 June 2015 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 on
14 August 2015. These condensed consolidated financials have been reviewed by the group's external auditors, PricewaterhouseCoopers
Incorporated (see note 16).

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(RAND)

                                                                                  Quarter ended                     Year ended   
                                                                     30 June        31 March       30 June      30 June     30 June   
                                                                        2015            2015          2014         2015        2014   
Figures in million                                               (Unaudited)     (Unaudited)   (Unaudited)   (Reviewed)   (Audited)   
Net loss for the period                                              (3 152)           (263)       (1 223)      (4 536)     (1 270)   
Other comprehensive (loss)/income for the period,                                                                                     
net of income tax                                                       (79)              73           624           59       (140)   
Items that may be reclassified subsequently to profit or loss:          (84)              73           655           54       (109)   
  Foreign exchange translation                                          (84)              73           668           54       (108)   
  Movements on investments                                                 –               –          (13)            –         (1)   
Items that will not be reclassified to profit or loss:                     5               –          (31)            5        (31)   
  Remeasurement of retirement benefit obligation                                                                                        
  Actuarial gain/(loss) recognised during the year                         8               –          (38)            8        (38)   
Deferred taxation thereon                                                (3)               –             7          (3)           7   
Total comprehensive loss for the period                              (3 231)           (190)         (599)      (4 477)     (1 410)   
Attributable to:                                                                                                                      
Owners of the parent                                                 (3 231)           (190)         (599)      (4 477)     (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 year ended 30 June 2015

                                                                                          Share      Other   Accumulated             
Figures in million                                                                      capital   reserves          loss     Total   
Balance – 30 June 2014                                                                   28 325      3 539         (822)    31 042   
Share-based payments                                                                        (1)        189             –       188   
Net loss for the period                                                                       –          –       (4 536)   (4 536)   
Other comprehensive income for the period                                                     –         59             –        59   
Balance – 30 June 2015 (Reviewed)                                                        28 324      3 787       (5 358)    26 753   
Balance – 30 June 2013                                                                   28 325      3 442           448    32 215   
Share-based payments                                                                          –        237             –       237   
Net loss for the period                                                                       –          –       (1 270)   (1 270)   
Other comprehensive loss for the period                                                       –      (140)             –     (140)   
Balance – 30 June 2014 (Audited)                                                         28 325      3 539         (822)    31 042   


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

CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)

                                                                                                      At            At          At   
                                                                                                 30 June      31 March     30 June   
                                                                                                    2015          2015        2014   
Figures in million                                                                     Note   (Reviewed)   (Unaudited)   (Audited)   
ASSETS                                                                                                                               
Non-current assets                                                                                                                   
Property, plant and equipment                                                             6       29 548        33 018      33 069   
Intangible assets                                                                                    885           885         886   
Restricted cash                                                                                       48            45          42   
Restricted investments                                                                             2 384         2 375       2 299   
Deferred tax assets                                                                       4            –            66          81   
Loan to associate                                                                         7           80           124           –   
Investments in financial assets                                                                        5             5           4   
Inventories                                                                                           36            50          50   
Total non-current assets                                                                          32 986        36 568      36 431   
Current assets                                                                                                                       
Inventories                                                                                        1 292         1 453       1 534   
Trade and other receivables                                                                          746           854         951   
Income and mining taxes                                                                               30            28         110   
Restricted cash                                                                                       16            15          15   
Cash and cash equivalents                                                                          1 067           701       1 829   
Total current assets                                                                               3 151         3 051       4 439   
Total assets                                                                                      36 137        39 619      40 870   
EQUITY AND LIABILITIES                                                                                                               
Share capital and reserves                                                                                                           
Share capital                                                                                     28 324        28 325      28 325   
Other reserves                                                                                     3 787         3 833       3 539   
Accumulated loss                                                                                 (5 358)       (2 206)       (822)   
Total equity                                                                                      26 753        29 952      31 042   
Non-current liabilities                                                                                                              
Deferred tax liabilities                                                                  4        1 906         2 528       2 680   
Provision for environmental rehabilitation                                                         2 218         2 216       2 098   
Retirement benefit obligation                                                             2          163           258         247   
Other non-current liabilities                                                                         37            33          95   
Borrowings                                                                                8        3 399         2 860       2 860   
Total non-current liabilities                                                                      7 723         7 895       7 980   
Current liabilities                                                                                                                  
Income and mining taxes                                                                                1             8           –   
Trade and other payables                                                                           1 660         1 764       1 848   
Total current liabilities                                                                          1 661         1 772       1 848   
Total equity and liabilities                                                                      36 137        39 619      40 870   

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

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)

                                                                                Quarter ended                     Year ended   
                                                                   30 June        31 March       30 June      30 June     30 June   
                                                                      2015            2015          2014         2015        2014   
                                                               (Unaudited)     (Unaudited)   (Unaudited)   (Reviewed)   (Audited)   
Figures in million                                      Note                                   Restated*                            
Cash flow from operating activities                                                                                                 
Cash generated by operations                                           568             353           443        1 928       2 247   
Interest and dividends received                                         25              21            47          101         139   
Interest paid                                                         (48)            (14)          (32)        (108)       (121)   
Income and mining taxes (paid)/refunded                                (5)              26            31           85           3   
Cash generated by operating activities                                 540             386           489        2 006       2 268   
Cash flow from investing activities                                                                                                 
(Increase)/decrease in restricted cash                                 (4)              12           (3)            8         (6)   
Decrease/(increase) in restricted investments                           11              19          (24)           31        (24)   
Proceeds on disposal of investments                                      –               –            51            –          51   
Loan to associate                                                        –               –             –        (120)           –   
Net additions to property, plant and equipment            10         (718)           (710)         (699)      (2 827)     (2 661)   
Cash utilised by investing activities                                (711)           (679)         (675)      (2 908)     (2 640)   
Cash flow from financing activities                                                                                                 
Borrowings raised                                                      541             400             –          941         612   
Borrowings repaid                                                     (11)           (782)             –        (793)       (468)   
Cash generated/(utilised) by                                                                                                        
financing activities                                                   530           (382)             –          148         144   
Foreign currency translation adjustments                                 7               2             7          (8)        (32)   
Net increase/(decrease) in cash and cash equivalents                   366           (673)         (179)        (762)       (260)   
Cash and cash equivalents – beginning of period                        701           1 374         2 008        1 829       2 089   
Cash and cash equivalents – end of period                            1 067             701         1 829        1 067       1 829   

* For the June 2014 quarter: Cash generated by operating activities previously reported as R470 million restated to R489 million. Cash utilised by investing activities
  previously reported as R656 million restated to R675 million. This is mainly related to the change in accounting policy for IFRIC 20, which became effective 1 July 2013.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2015 (Rand)

1.   Accounting policies
     Basis of accounting
     The condensed consolidated financial statements for the year ended 30 June 2015 have been prepared in accordance with IAS 34,
     Interim Financial Reporting, JSE Listings Requirements for provisional reports, 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 June       31 March       30 June       30 June    30 June
                                                               2015           2015          2014          2015       2014
     Figures in million                                 (Unaudited)    (Unaudited)   (Unaudited)    (Reviewed)  (Audited)
     Production costs – excluding royalty                     3 217          2 759         2 891        12 537     11 761
     Royalty expense                                             16             26            25            95        127
     Amortisation and depreciation                              624            596           526         2 472      2 143
     Impairment of assets(1)                                  3 471              –         1 410         3 471      1 439
     Rehabilitation (credit)/expenditure(2)                    (41)             15           (9)           (6)          8
     Care and maintenance cost of restructured shafts(3)         49             20            13           106         66
     Employment termination and restructuring
     Costs/(credit)(4)                                           24            (3)            40           251        274
     Share-based payments                                        36             32            44           208        270
     Other(5)                                                  (80)            (1)             1          (81)          –
     Total cost of sales                                      7 316          3 444         4 941        19 053     16 088

     (1) The impairment in the June 2015 quarter consists of an impairment of R2.11 billion on Hidden Valley, R1.04 billion on Doornkop, R278 million on Phakisa and
         R43 million on Freddies 9. The June 2014 quarter impairment consists of an impairment of R1.38 billion on Phakisa, R7 million on Steyn 2 and R21 million on
         St Helena. Refer to note 6 for further details.
     (2) Included in the total for the June 2015 quarter is a credit of R61 million relating to the change in estimate following the annual reassessment.
     (3) Including R20 million reparation costs relating to the Brand 1A vent shaft explosion.
     (4) The March 2015 quarter total includes a credit for Kusasalethu following the conclusion of the Section 189A process during the quarter.
     (5) Included in the total for the June 2015 quarter is a credit of R87 million relating to the reduction in employees qualifying for post-retirement benefits.

3.   Exploration expenditure
     The Harmony board approved the updated Golpu project prefeasibility study in December 2014. The approval and the progression to
     the final feasibility study stage demonstrates the technical and commercial viability of the Golpu project. As a result Harmony started
     capitalising project exploration and evaluation expenditure for the Golpu project in the March 2015 quarter.

4.   Taxation
     A deferred tax credit of R558 million was recorded in the June 2015 quarter following the net decrease in the deferred tax rates year
     on year for the South African companies and impairments recorgnised on property, plant and equipment. Included in the total is a
     debit of R64 million for the derecognition of the Australian deferred tax asset (see note 6).

5.   Earnings/(loss) per share
                                                                              Quarter ended                      Year ended
                                                                 30 June        31 March      30 June       30 June       30 June
                                                                    2015            2015         2014          2015          2014
                                                             (Unaudited)     (Unaudited)  (Unaudited)    (Reviewed)     (Audited)

     Weighted average number of shares (million)                   435.0           434.4        433.9         434.4         433.2
     Weighted average number of diluted shares (million)           438.2           439.5        435.2         438.1         434.7
     Total earnings/(loss) per share (cents):
     Basic loss                                                    (725)            (61)        (282)       (1 044)         (293)
     Diluted loss                                                  (725)            (61)        (282)       (1 044)         (293)
     Headline earnings/(loss)                                         44            (60)           30         (189)            26
     Diluted headline earnings/(loss)                                 44            (60)           30         (189)            26
     Figures in million
     Reconciliation of headline earnings/(loss):
     Net loss                                                    (3 152)           (263)      (1 223)       (4 536)       (1 270)
     Adjusted for:
     Profit on disposal of investments(1)                            (4)               –         (14)           (4)           (7)
     Impairment of assets                                          3 471               –        1 410         3 471         1 439
     Taxation effect on impairment of assets                       (169)               –         (20)         (169)          (24)
     (Profit)/loss on sale of property, plant and equipment          (6)               1         (30)           (6)          (30)
     Taxation effect of (loss)/profit on sale of property,
     plant and equipment                                             (1)               –            6           (1)             6
     Loss on scrapping of property, plant and equipment               61               –            –           491             –
     Taxation effect on loss of scrapping of property,
     plant and equipment                                             (9)               –            –          (67)             –
     Headline earnings/(loss)                                        191           (262)          129         (821)           114

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

6.   Property, plant and equipment
     (a) Impairment
         One of the most significant assumptions that influence the life-of-mine plans and therefore impairment is the expected gold
         price. During this year's planning and testing, gold price and exchange rate assumptions as per the table below were used.
         Post-tax real discount rates ranging between 7.99% and 12.03% (2014: 7.03% and 11.56%), depending on the asset, were
         used to determine the recoverable amounts (generally fair value less costs to sell).
         
                                                                                                    2016            2017            2018
                                                                                              Short term     Medium term       Long term
                                                                                                  Year 1          Year 2          Year 3
         US$ gold price                                                                            1 150           1 180           1 200
         US$ silver price                                                                          14.00           14.50           17.00
         Exchange rate (R/US$)                                                                     12.17           11.86           11.66
         Exchange rate (PGK/US$)                                                                    2.75            2.75            2.80
         
         For South African operations, values of US$40.86, US$23.35 and US$5.84 per ounce were used for measured, indicated and
         inferred resources, respectively. For Hidden Valley, values of US$15.00 and US$6.00 per ounce were used for indicated and
         inferred resources, respectively.
         
         During the 2015 year, an impairment of R2.11 billion was recognised on Hidden Valley following a change in the life-of-mine
         plan during the annual planning process. Low commodity prices and high all-in sustaining costs resulted in a shortening in the
         life-of-mine of the operation. The revised plan also made the recoverability of the deferred tax asset for Australia unlikely, and
         as a result it was derecognised.
         
         Following the decision to restructure Doornkop in May 2015, a revised life-of-mine plan was completed. The new plan resulted
         in a lower recoverable amount and an impairment of R1.04 billion was recognised.
         
         Other impairments include R278 million on Phakisa as cost pressures continue to impact profitability and R43 million for
         Freddies 9 as plans to develop the project further have been abandoned.
         
         The recoverable amounts for the impaired shafts are as follows: Hidden Valley R653 million (US$53.7 million), Doornkop
         R1 846 million, Phakisa R3 989 million and Freddies 9 Rnil. These were determined on a fair value less costs to sell basis using
         the assumptions above in discounted cash flow models and attributable resource values. These are fair value measurements
         classified as level 3.

         The sensitivity scenario of a 10% decrease in the gold price used in the models as well as a 10% decrease in the silver price for
         Hidden Valley would have resulted in an additional impairment at Phakisa of R1.3 billion, Doornkop of R923 million and Hidden
         Valley of R461 million. The decreases noted would have resulted in impairments at Target 1 of R938 million, Target 3 of 
         R33 million, Tshepong of R693 million, Unisel of R6 million and other Harmony assets of R393 million.

     (b) Loss on scrapping of property, plant and equipment
         As previously reported, management embarked on a life-of-mine optimisation process in respect of the South African operations
         which was finalised at the end of the December 2014 quarter. The optimisation ensured greater focus on mining profitable and
         higher grade areas at our operations and therefore resulted in the abandonment of lower grade and unprofitable areas from
         the life-of-mine plan for most of the operations.

         In the case of Kusasalethu and Masimong, the optimisation led to the abandonment of levels and areas with a carrying value.
         The abandonment of these areas resulted in the derecognition of property, plant and equipment as no future economic benefits
         are expected from their use or disposal and a loss on scrapping of property, plant and equipment of R214 million on Kusasalethu
         and R216 million on Masimong was recorded in the December 2014 quarter.

         At 30 June 2015, following the annual life-of-mine planning, an additional amount of R61 million was recorded for various
         shafts as a result of the abandonment of uneconomical areas in the plans.

7.   Investment in associate
     Harmony holds a 10.38% share in Rand Refinery Proprietary Limited (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, Harmony provided for its
     estimated share of loss for the inventory discrepancy and recognised a R127 million loss in the June 2014 quarter.

     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. The facility is convertible
     to equity after a period of two years. The agreements relating to the facility were signed on 23 July 2014. During the December
     2014 quarter, Rand Refinery drew down R1.02 billion on the shareholders' loan. Harmony's portion of the shareholders' loan was
     R120 million. Interest on the facility is JIBAR plus a margin of 3.5%.

     Following the finalisation of Rand Refinery's 2013 and 2014 audited financial statements, which accounted for the known inventory
     discrepancy at that date, Harmony has recorded a further R25 million against the loan to Rand Refinery (loan to associate) for its
     share of the loss. At 30 June 2015, the loan to associate was tested for impairment and a provision for impairment of R15 million
     was required. This impairment is included in "Other expenses (net)" in the income statement.

8.   Borrowings
     During the March 2015 quarter, the US$300 million syndicated revolving credit facility (US$270 million drawn) was repaid and a
     new revolving credit facility of US$250 million (of which US$205 million was drawn down) was entered into. During the June 2015
     quarter, US$45 million (R541 million) was drawn down on the US$ revolving credit facility. R400 million was drawn down on the
     R1.3 billion Nedbank revolving credit facility during the March 2015 quarter.

                                                                                                  US$ facility            Rand facility
     Figures in million                                                                              US dollar                  SA rand
     Borrowings summary
     Facility                                                                                              250                    1 300
     Drawn down                                                                                            250                      400
     Undrawn committed borrowing facilities                                                                  –                      900
     Maturity                                                                                    February 2018            December 2016
     Interest rate                                                                                  LIBOR + 3%             JIBAR + 3.5%

     A foreign exchange translation loss of R4 million was recorded in the June 2015 quarter (March 2015: R118 million) increasing the
     borrowings balance and other expenses (net). The total foreign exchange translation loss for the 2015 financial year is R382 million
     (2014: R155 million).

9.   Financial risk management activities
     Fair value determination
     The following table presents the group's assets and liabilities that are measured at fair value by level within the fair value hierarchy:
     Level 1: Quoted prices (unadjusted) in active markets for identical assets;
     Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that
              is, as prices) or indirectly (that is derived from prices);
     Level 3: Inputs for the asset that are not based on observable market data (that is unobservable inputs).
     
                                                    At            At          At   
                                               30 June      31 March     30 June   
                                                  2015          2015        2014   
     Figures in million                     (Reviewed)   (Unaudited)   (Audited)   
     Available-for-sale financial assets(1)                                          
     Level 1                                         –             –           –   
     Level 2                                         –             –           –   
     Level 3                                         5             5           4   
     Fair value through profit or loss(2)                                            
     Level 1                                         –             –           –   
     Level 2                                       540           155         798   
     Level 3                                         –             –           –   

    (1) Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
    (2) The majority of the level 2 fair values are directly derived from the All Share Top 40 index (ALSI 40) on the JSE, and are discounted at market interest rate. This
        relates to equity-linked deposits in the group's environmental rehabilitation trust funds (included in restricted investments).

10. Net additions to property, plant and equipment includes:

                                                                    Quarter ended                    Year ended
                                                            30 June    31 March     30 June       30 June      30 June
                                                               2015        2015        2014          2015         2014
    Figures in million                                  (Unaudited) (Unaudited) (Unaudited)    (Reviewed)    (Audited)
    Capital expenditure – operations                           608          583         676         2 470        2 516
    Capital and capitalised exploration and
    evaluation expenditure for Wafi-Golpu                       65           40          12           119           12
    Additions resulting from stripping activities at
    Hidden Valley                                               53           85           8           236          120
    Other                                                      (8)            2           3             2           13
    Net additions                                              718          710         699         2 827        2 661

11. Commitments and contingencies
                                                                                         At            At           At
                                                                                    30 June      31 March      30 June
                                                                                       2015          2015         2014
    Figures in million                                                           (Reviewed)   (Unaudited)    (Audited)
    Capital expenditure commitments:
    Contracts for capital expenditure                                                   158           196          157
    Authorised by the directors but not contracted for                                  257           877          519

                                                                                        415         1 073          676

    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. There were no significant changes in contingencies since 30 June 2014, except as discussed below:

    (a) US class action
        The distribution of the settlement amount, held in escrow, to the plaintiff class of the lawsuit filed in the United States of
        America was completed. From both legal and accounting perspectives, the matter is now concluded.

12. Related parties
    Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities
    of the group, directly or indirectly, including any director (whether executive or otherwise) of the group.
    During the June 2015 quarter, Frank Abbott, financial director, purchased 60 000 shares in the company in the open market.

13. Subsequent events
    Harmony has signed a R100 million guarantee for the ARM Broad Based Economic Empowerment (BBEE) Trust, a member of the
    African Rainbow Minerals (ARM) group. The guarantee is for additional security for the ARM BBEE Trust loan due to Nedbank
    Limited.

14. Segment report
    The segment report follows below.

15. Reconciliation of segment information to condensed consolidated income statements and balance sheets
    
                                                                                                         Year ended
                                                                                                    30 June         30 June
                                                                                                       2015            2014
    Figures in million                                                                           (Reviewed)       (Audited)
    The "Reconciliation of segment information to condensed consolidated financial statements"
    line item in the segment report is broken down in the following elements, to give a better
    understanding of the differences between the financial statements and segment report:
    Reconciliation of production profit to gross loss
    Total segment revenue                                                                            15 435          15 682
    Total segment production costs                                                                 (12 632)        (11 888)
    Production profit per segment report                                                              2 803           3 794
    Depreciation                                                                                    (2 472)         (2 143)
    Impairment                                                                                      (3 471)         (1 439)
    Other cost of sales items                                                                         (478)           (618)
    Gross loss as per income statements(1)                                                          (3 618)           (406)
    
    (1) The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

                                                                                                         At              At   
                                                                                                    30 June         30 June   
                                                                                                       2015            2014   
    Figures in million                                                                           (Reviewed)       (Audited)   
    Reconciliation of total segment mining assets to consolidated property,
    plant and equipment                            
    Property, plant and equipment not allocated to a segment                                                                  
    Mining assets                                                                                       762             787   
    Undeveloped property                                                                              5 139           5 139   
    Other non-mining assets                                                                             199             117   
    Wafi-Golpu assets                                                                                 1 188           1 092   
                                                                                                      7 288           7 135   
16. Review report
    These condensed consolidated financial statements for the year ended 30 June 2015 have been reviewed by PricewaterhouseCoopers
    Inc., who expressed an unmodified review conclusion thereon. A copy of the auditor's review report is available for inspection at the
    company's registered office, together with the financial statements identified in the auditor's report.

SEGMENT REPORT (RAND/METRIC)
for the year ended 30 June 2015

                                                                                Production                               Capital            Kilograms                        
                                         Revenue          Production cost      profit/(loss)       Mining assets       expenditure(#)      produced(@)        Tonnes milled(@)   
                                         30 June              30 June             30 June             30 June            30 June             30 June             30 June   
                                      2015     2014        2015      2014      2015      2014     2015       2014     2015      2014      2015     2014       2015      2014   
                                        R million            R million            R million          R million           R million             kg                 t'000   
South Africa                                                                                                                                                                   
Underground                                                                                                                                                                    
Kusasalethu                          1 939    1 959       1 996     1 753      (57)       206    3 619      3 616      463       509     3 953    4 694        908     1 143   
Doornkop                             1 220    1 126       1 092     1 098       128        28    2 239      3 386      245       238     2 663    2 603        603       737   
Phakisa                              1 420    1 284       1 181     1 061       239       223    4 307      4 590      403       360     3 118    2 976        611       577   
Tshepong                             1 948    1 822       1 611     1 365       337       457    4 025      3 941      313       301     4 278    4 223        992       947   
Masimong                             1 118    1 171         992       983       126       188      893      1 060      166       168     2 463    2 718        670       670   
Target 1                             1 738    1 948       1 191     1 051       547       897    2 782      2 770      296       289     3 824    4 493        749       771   
Bambanani(a)                         1 330    1 279         705       681       625       598      821        841      110       127     2 908    2 968        229       239   
Joel                                 1 046      995         770       668       276       327      578        450      182       145     2 258    2 335        551       548   
Unisel                                 770      792         682       600        88       192      594        663       99        85     1 695    1 838        417       408   
Target 3                               222      609         177       557        45        52      535        542       20       128       483    1 413         90       301   
Surface                                                                                                                                                                        
All other surface operations         1 338    1 263       1 092       981       246       282      483        473       51        44     2 927    2 900     10 418    10 442   
Total South Africa                  14 089   14 248      11 489    10 798     2 600     3 450   20 876     22 332    2 348     2 394    30 570   33 161     16 238    16 783   
International                                                                                                                                                                  
Hidden Valley                        1 346    1 434       1 143     1 090       203       344    1 384      3 602      121       122     2 943    3 292      1 825     2 001   
Total international                  1 346    1 434       1 143     1 090       203       344    1 384      3 602      121       122     2 943    3 292      1 825     2 001   
Total operations                    15 435   15 682      12 632    11 888     2 803     3 794   22 260     25 934    2 469     2 516    33 513   36 453     18 063    18 784   
Reconciliation of the segment                                                                                                                                                  
information to the condensed                                                                                                                                                   
consolidated financial statements                                                                                                                                              
(refer to note 15)                                                                               7 288      7 135                                                              
                                    15 435   15 682      12 632    11 888                       29 548     33 069                                                              

(#)   Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R119 million (2014: R12 million).
(a)   Includes Steyn 2 for the June 2014 amounts.
(@)   Production statistics are unaudited.

The segment report for the year ended 30 June 2014 has been audited. The segment report for the year ended 30 June 2015 has been reviewed.

DEVELOPMENT RESULTS (METRIC)
Quarter ending June 2015

                                              Channel

                      Reef Sampled     Width    Value     Gold
                    Meters  Meters    (Cm's)    (g/t)  (Cmg/t)
Tshepong
Basal                  432     400      8,61   205,04    1 765
Beatrix
Leader
B Reef                 322     292    125,09    18,77    2 348
All Reefs              754     692     57,76    34,82    2 011
Phakisa
Basal                  401     416     60,77    21,18    1 287
Beatrix                  –       –         –        –        –
Leader                   –       –         –        –        –
All Reefs              401     416     60,77    21,18    1 287
Bambanani
Basal                    –       –         –                 –
Beatrix                  –       –         –                 –
Leader                   –       –         –                 –
All Reefs                –       –         –        –        –
Doornkop
VCR Reef                 –       –         –        –        –
UE1A                     –       –         –        –        –
Main Reef                –       –         –        –        –
Kimberley Reef           –       –         –        –        –
South Reef             551     516     52,00    15,83      820
All Reefs              551     516     52,00    15,78      820
Kusasalethu
VCR Reef               581     398    144,53     6,66      962
All Reefs              581     398    144,53     6,66      962
Target 1
Elsburg                 79      36    266,00     1,83      487
Basal                    –       –         –                 –
A Reef                   –       –         –                 –
B Reef                   –       –         –                 –
All Reefs               79      36    266,00     1,83      487
Masimong 5
Basal                  368     314     39,94    19,82      791
Leader                   –       –         –        –        –
A Reef                   –       –         –        –        –
Middle                   –       –         –        –        –
B Reef                 171     174     64,31    19,05    1 225
All Reefs              539     488     48,63    19,46      946
Unisel
Basal                  238     226    147,86     5,97      882
Leader                 516     444    175,42     6,38    1 119
A Reef                   –       –         –                 –
Middle                   –       –         –                 –
B Reef                   –       –         –                 –
All Reefs              754     670    166,12     6,26    1 039
Joel
Basal                    –       –         –        –        –
Beatrix                266     255    173,00     6,84    1 183
Leader                   –       –         –        –        –
All Reefs              266     255    173,00     6,84    1 183
Total Harmony
Basal                1 439   1 356     55,07    22,62    1 246
Beatrix                266     255    173,00     6,84    1 183
Leader                 516     444    175,42     6,38    1 119
B Reef                 493     466    102,39    18,84    1 929
A Reef                   –       –         –                 –
Middle                   –       –         –                 –
Elsburg                 79      36    266,00     1,83      487
Kimberley                –       –         –                 –
South Reef             551     516     52,00    15,78      820
VCR                    581     398    144,53     6,66      962
Main Reef                –       –         –                 –
All Reefs            3 925   3 471     97,47    12,45    1 213

DEVELOPMENT RESULTS (IMPERIAL)
Quarter ending June 2015

                                             Channel

                   Reef  Sampled    Width      Value      Gold
                   Feet   Meters   (Inch)     (oz/t) (In.oz/t)
Tshepong
Basal             1 418    1 312     3,00       6,76        20
Beatrix               –        –        –                    –
Leader                –        –        –                    –
B Reef            1 056      958    49,00       0,55        27
All Reefs         2 474    2 270    23,00       1,00        23
Phakisa
Basal             1 317    1 365    24,00       0,62        15
Beatrix               –        –        –                    –
Leader                –        –        –                    –
All Reefs         1 317    1 365    24,00       0,62        15
Bambanani
Basal                 –        –        –                    –
Beatrix               –        –        –                    –
Leader                –        –        –                    –
All Reefs             –        –        –                    –
Doornkop
VCR Reef
UE1A
Main Reef             –        –        –                    –
Kimberley Reef
South Reef        1 809    1 693     20,00      0,47         9
All Reefs         1 809    1 693     20,00      0,47         9
Kusasalethu
VCR Reef          1 907    1 306     57,00      0,19        11
All Reefs         1 907    1 306     57,00      0,19        11
Target 1
Elsburg             259      118    105,00      0,05         6
Basal                 –        –         –                   –
A Reef                –        –         –                   –
B Reef                –        –         –                   –
All Reefs           259      118    105,00      0,05         6
Masimong 5
Basal             1 207    1 030     16,00      0,57         9
Leader                –        –         –                   –
A Reef                –        –         –                   –
Middle                –        –         –                   –
B Reef              561      571     25,00      0,56        14
All Reefs         1 768    1 601     19,00      0,57        11
Unisel
Basal               781      741     58,00      0,17        10
Leader            1 693    1 457     69,00      0,19        13
A Reef                –        –         –                   –
Middle                –        –         –                   –
B Reef                –        –         –                   –
All Reefs         2 474    2 198     65,00      0,18        12
Joel
Basal                 –        –         –                   –
Beatrix             871      837     68,00      0,20        14
Leader                –        –         –                   –
All Reefs           871      837     68,00      0,20        14
Total Harmony
Basal             4 722    4 449     22,00      0,65        14
Beatrix             871      837     68,00      0,20        14
Leader            1 693    1 457     69,00      0,19        13
B Reef            1 616    1 529     40,00      0,55        22
A Reef                –        –         –                   –
Middle                –        –         –                   –
Elsburg             259      118    105,00      0,05         6
Kimberley             –        –         –                   –
South Reef        1 809    1 693     20,00      0,47         9
VCR               1 907    1 306     57,00      0,19        11
Main Reef             –        –         –                   –
All Reefs        12 877   11 389     38,00      0,37        14





Date: 18/08/2015 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.

                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.