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HARMONY GOLD MINING COMPANY LIMITED - Results for the six months and year ended 30 June 2016

Release Date: 17/08/2016 07:05:00      Code(s): HAR       PDF(s):  
Results for the six months and year ended 30 June 2016

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

H2 FY16 RESULTS
FOR THE SIX MONTHS AND YEAR ENDED
30 JUNE 2016

KEY FEATURES

Year on year

- 6% increase in underground recovered grade    - Net profit of R949 million (US$64 million)   - Headline earnings per share (HEPS)
- 54% reduction in net debt to R1.08 billion    - Dividend of 50 SA cents (4 US cents)          of 221 SA cents (15 US cents)
 (61% to US$74 million)                                                                        - Enhancing our portfolio of copper-gold
                                                                                                 assets
 
                                                      6 months   6 months
                                                         ended      ended
                                                          June   December                       Year        Year
                                                          2016       2015            %         ended       ended           %
                                                      (H2FY16)   (H1FY16)     Variance     June 2016   June 2015    Variance
Gold produced                        – kg               15 974     17 681         (10)        33 655      33 513           –
                                     – oz              513 576    568 459         (10)     1 082 035   1 077 466           –
Cash operating costs                 – R/kg            413 796    372 358         (11)       392 026     369 203         (6)
                                     – US$/oz              836        851            2           841       1 003          16
Gold sold                            – kg               15 900     17 742         (10)        33 642      34 332         (2)
                                     – oz              511 198    570 417         (10)     1 081 615   1 103 793         (2)
Underground grade                    – g/t                4.88       5.16          (5)          5.02        4.75           6
Total costs and capital              – R/kg            484 167    430 417         (12)       455 929     442 895         (3)
                                     – US$/oz              978        983            1           978       1 203          19
All-in sustaining costs*             – R/kg            492 792    444 884         (11)       467 526     453 044         (3)
                                     – US$/oz              996      1 016            2         1 003       1 231          19
Gold price received                  – R/kg            605 476    490 773           23       544 984     449 570          21
                                     – US$/oz            1 223      1 121            9         1 169       1 222         (4)
Production profit                    – R million         3 092      1 992           55         5 084       2 802          81
                                     – US$ million         201        146           38           350         245          43
Basic earnings/(loss) per share      – SAc/s               320      (102)         >100           218     (1 044)        >100
                                     – USc/s                21        (7)         >100            15        (86)        >100
Headline earnings/(loss)             – Rm                1 412      (449)         >100           964       (821)        >100
                                     – US$m                 92       (33)         >100            66        (68)        >100
Headline earnings/(loss) per share   – SAc/s               324      (103)         >100           221       (189)        >100
                                     – USc/s                21        (8)         >100            15        (16)        >100
Exchange rate                        – R/US$             15.39      13.62           13         14.50       11.45          27
*Excludes share-based payment charge

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 2016 will be available on   
our website (www.harmony.co.za/investors) on 26 October 2016. Mineral resource and reserve information as at 30 June 2016 is included in this report.             

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the safe harbor provided
by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended, with respect to our 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. These include
all statements other than statements of historical fact, including, without limitation, any statements
proceeded by, followed by, or that include the words "targets", "believes", "expects", "aims"
"intends" "will", "may", "anticipates", "would", "should", "could", "estimates", "forecast",
"predict", "continue" or similar expressions or the negative thereof.

These forward-looking statements, including, among others, those relating to our future business
prospects, revenues and income, wherever they may occur in this report and the exhibits to this
report, are essentially estimates reflecting the best judgment of our senior management 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 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 South Africa, Papua New Guinea, Australia and elsewhere, estimates of future
earnings, and the sensitivity of earnings to the gold and other metals prices, estimates of future gold
and other metals production and sales, estimates of future cash costs, estimates of future cash flows,
and the sensitivity of cash flows to the gold and other metals prices, statements regarding future
debt repayments, estimates of future capital expenditures, the success of our business strategy,
development activities and other initiatives, estimates of reserves statements regarding future
exploration results and the replacement of reserves, the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions, fluctuations in the market
price of gold, the occurrence of hazards associated with underground and surface gold mining,
the occurrence of labor disruptions, power cost increases as well as power stoppages, fluctuations
and usage constraints, supply chain shortages and increases in the prices of production imports,
availability, terms and deployment of capital, changes in government regulation, particularly mining
rights and environmental regulation, fluctuations in exchange rates, the adequacy of the Group's
insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea
and other countries in which we operate.

For a more detailed discussion of such risks and other factors (such as availability of credit or other
sources of financing), see the Company's latest Integrated Annual Report on Form 20-F which is on
file with the Securities and Exchange Commission, as well as the Company's other Securities and
Exchange Commission filings. The Company undertakes no obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or circumstances after the date of
this annual report or to reflect the occurrence of unanticipated events, except as required by law.

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 of South Africa:

Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA,
who has 21 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 Harmony's Lead Competent Person.

Jaco Boshoff
Physical address:                              Postal address:
Randfontein Office park                        P.O. Box 2
Corner of Main Reef Road and Ward Avenue       Randfontein
Randfontein                                    1760
South Africa                                   South Africa

Resources and reserves of Papua New Guinea:

Gregory Job, BSc, MSc, who has 28 years' relevant experience and
is a member of the Australian Institute of Mining and Metallurgy (AusIMM).

Greg Job
Physical address:                              Postal address:
Level 2                                        PO Box 1562
189 Coronation Drive                           Milton, Queensland
Milton, Queensland 4064                        4064
Australia                                      Australia

Both these competent persons, who are full-time employees of
Harmony Gold Mining Company Limited, consent to the inclusion in
the report of the matters based on the information in the form and
context in which it appears.

SHAREHOLDER INFORMATION 
                                                                    
Issued ordinary share capital at 30 June 2016                                   437 299 479   
Issued ordinary share capital at 31 December 2015                               436 789 929   
Issued ordinary share capital at 30 June 2015                                   436 187 133 
  
MARKET CAPITALISATION                                                                         
At 30 June 2016 (ZARm)                                                               22 945   
At 30 June 2016 (US$m)                                                                1 567   
At 31 December 2015 (ZARm)                                                            6 813   
At 31 December 2015 (US$m)                                                              440   
At 30 June 2015 (ZARm)                                                                6 800   
At 30 June 2015 (US$m)                                                                  560 
  
HARMONY ORDINARY SHARES AND ADR PRICES                                                        
12-month high (1 July 2015– 30 June 2016) for ordinary shares                         62.89   
12-month low (1 July 2015– 30 June 2016) for ordinary shares                           7.92   
12-month high (1 July 2015– 30 June 2016) for ADRs                                     4.17   
12-month low (1 July 2015 – 30 June 2016) for ADRs                                     0.53   

FREE FLOAT                                                                             100%   

ADR RATIO                                                                               1:1   

JSE LIMITED                                                                             HAR   

Range for six months (1 January – 30 June 2016 closing prices)              R15.60 – R62.89   
Average daily volume for the six months (1 January – 30 June 2016)         2 934 226 shares   
Range for previous six months (1 July – 31 December 2015                                      
closing prices)                                                              R7.92 – R19.89   
Average daily volume for the previous six months                                              
(1 July – 31 December 2015)                                                1 968 724 shares   
Range for year (1 July 2015 – 30 June 2016 closing prices)                   R7.92 – R62.89   
Average daily volume for the year (1 July 2015 – 30 June 2016)             2 441 859 shares   
Range for the previous year                                                                   
(1 July 2014 – 30 June 2015 closing prices)                                 R15.32 – R38.50   
Average daily volume for the previous year
(1 July 2014 – 30 June 2015)                                               1 700 854 shares   

NEW YORK STOCK EXCHANGE

including other US trading platforms                                                    HMY  
Range for six months (1 January – 30 June 2016 closing prices)            US$1.06 – US$4.17   
Average daily volume for the six months (1 January – 30 June 2016)                5 306 179   
Range for previous six months                                             US$0.53 – US$1.34   
(1 July – 31 December 2015 closing prices)                                                    
Average daily volume for the previous six months                                  2 778 343   
(1 July – 31 December 2015)                                                                   
Range for year (1 July 2015 – 30 June 2016 closing prices)                US$0.53 – US$4.17   
Average daily volume for the year (1 July 2015 – 30 June 2016)                    4 027 274   
Range for the previous year (1 July 2014 – 30 June 2015 closing prices)   US$1.31 – US$3.29   
Average daily volume for the previous year (1 July 2014 – 30 June 2015)           2 989 247   

INVESTORS' CALENDAR                                                                           
Release of Harmony's Integrated Annual Report of FY16                       26 October 2016   
Annual General Meeting                                                     25 November 2016   

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
P W Steenkamp 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
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

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
(2) ADR: American Depository Receipts

Sponsor
J.P. Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo
Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
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

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

Harmony is driven by excellence. We have a proactive approach
to safety and health, with excellent operational and management
teams, a world-class exploration team, we lead environmental
rehabilitation in South Africa and we continued to differentiate
ourselves through quality grade management, increasing
underground grade for the fourth consecutive year – this year by
6% to 5.02g/t.

Our revenue increased by 19% on the back of a 21% increase
in the R/kg gold price, combined with achieving our production
guidance of approximately 1.1 million ounces. Net debt was reduced
by 54% to R1.08 billion (61% to US$74 million).
Having turned around the previous year's headline
loss to headline earnings of 221 SA cents (15 US$ cents), we felt
it prudent to declare a dividend of 50 SA cents (refer to dividend
notice). Harmony remains well positioned to benefit
from a strong R/kg gold price.

We continue to have a positive view on the strength of the gold
price, with cash certainty being key in times of extreme market
volatility. The gold hedge was a necessary short-term step to secure
margins at some of our higher-cost operations and creates certainty
for a portion of our future cash flows. It enables us to further reduce
our debt and strengthen our balance sheet.

SAFETY

Sadly, in spite of recording an overall improvement in our safety
performance for the year, we had ten fatalities – nine in South Africa (SA) 
and one in Papua NewGuinea (PNG), compared with nine fatalities in the previous year
(eight in SA and one in PNG).

Year on year, our lost time and reportable injury frequency rates
improved and are in line with the industry's milestone requirements.
During the year – to further assist management in ensuring that
safety standards are followed and regulations are adhered to, and
to increase awareness regarding safe behaviour – we established a
second-level safety assurance team, reporting to our central safety
structure. Training and safety awareness campaigns continue at all
of our operations.

YEAR-ON-YEAR OPERATIONAL RESULTS

Our total gold production for FY16 increased by 142kg (0.4%) to
33 655kg, compared to 33 513kg in FY15. Gold production in South
Africa increased by 4% year on year, if the Target 3 operation 
(place on care and maintenance)in FY15 is excluded.

The following operations increased their gold production year on
year:

- Phakisa, by 870kg (28%), as a result of milling 75 000t (12%)
  more and increasing recovered grade by 14% to 5.81g/t
  (FY15: 5.10g/t);
- Tshepong, by 753kg (18%), as a result of a 10% (96 000t) rise
  in milled tonnes and a 7% improvement in recovered grade to
  4.62g/t (FY15: 4.31g/t);
- Bambanani, by 105kg (4%), as a result of a 2% increase in
  recovered grade to 12.99g/t (FY15: 12.70g/t);
- Doornkop, by 67kg (3%), due to a 4% (27 000t) increase in
  tonnes milled and in spite of a 2% decrease in recovered grade
  to 4.33g/t;
- Joel, by 20kg, through an increase in recovered grade of 2% to
  4.20g/t, while volume remained stable year on year;
- Unisel, by 9kg, a consequence of a 2% (7 000t) increase in tonnes
  milled, with volume and grade remaining stable;
- the dumps, by 203kg (24%), through improved tonnes milled
  (13%) and recovered grade (9%).

The following operations reported lower gold production for the
year:

- Hidden Valley was down 686kg (23%), due to a 19% decrease in
  recovered grade to 1.31g/t (FY15: 1.61g/t) and a 5% decrease in
  tonnes. Some 33 production days were lost during the September
  2015 quarter when operations were suspended due to a fatality
  in July 2015. The December 2015 quarter was affected by poor
  grade and road closures, which restricted mining activity.
- Target 1 was 437kg (11%) lower due to a 10% decrease in
  recovered grade to 4.58g/t (FY15: 5.11g/t). The operation was
  adversely affected by safety stoppages during the March 2016 quarter.
- Kalgold was down 95kg (8%), a result of recovered grade
  decreasing by 7% to 0.75g/t (FY15: 0.81g/t) and in spite of tonnes
  milled increasing by 1% (7 000t).
- Kusasalethu, 90kg (2%) lower, was negatively affected by a
  planned stoppage to upgrade its infrastructure. A 26% (240 000t)
  decrease in tonnes milled however was partially offset by a 33%
  increase in the recovered grade to 5.78g/t (FY15: 4.35g/t).
- Phoenix was down 63kg (7%) due to a 14% decrease in recovered
  grade to 0.12g/t (FY15: 0.14g/t), which was partially offset by a
  4% (220 000t) increase in tonnes milled.
- Masimong was 31kg down due to having milled 20 000t (3%) less
  than in FY15.

Target 3 was placed on care and maintenance during FY15 and
produced no gold in FY16.

YEAR-ON-YEAR FINANCIAL RESULTS

Higher gold production, together with a higher average Rand gold
price received, delivered a 19% increase in revenue of R18.3 billion (decrease by 6% to US$1.27 billion).
The average Rand gold price increased by 21% to R544 984/kg
(R449 570/kg in FY15), due to a 27% weakening of the Rand
against the US dollar to US$/R14.50 (offsetting the 4 % decrease in the average gold price received to US1 169/oz).

Production profit increased to R5.084 billion, up 81% from
R2.802 billion in FY15 (increased by 43% to US$350 million), after accounting for a 7% increase in cash
operating costs (R821 million) (decrease of US$171 million or 16%). Operating costs were higher due
to increases in labour costs, electricity and contractor costs at our
South African operations.

Overall, cost increases were lower than inflation, with all-in sustaining cost
(AISC) for all operations increasing by only 3% to R467 526/kg,
compared to R453 044/kg in FY15 (decreased by 19% to US$1 003/oz compared to US$1 231/oz in FY15).

Annual adjustments recorded include the net reversal of an
impairment of R43 million (US$3 million) (which consists of a reversal of impairment
of R738 million (US$50 million) on Doornkop, offset by an impairment of R466 million (US$32 million) 
on Hidden Valley and R229 million (US$16 million) on Masimong) and a rehabilitation
provision change in estimate credit of R110 million (US$7 million).

In FY16 a net profit of R949 million (US$64 million) was recorded compared to a
net loss of R4.5 billion (US$374 million) in FY15 and consequently, headline earnings
amounted to 221 SA cents per share (15 US cents per share) compared to a headline loss of
189 SA cents per share (16 US cents per share) for FY15.

HEDGING ACTIVITY

Currency hedging

Since February 2016, Harmony initiated and maintained a foreign exchange hedging programme. Hedging is in the form of zero cost collars,
which establish a minimum (floor) and maximum (cap) Rand/US dollar exchange rate at which to convert US dollars to Rands. The nominal
value of the hedging contracts as at 30 June 2016 was US$500 million. The hedging contracts are spread over a 12 month period, and are
summarised as follows:
                                       H1 FY17                       H2 FY17   
Sold call options                                                              
Nominal                         US$250 million                US$250 million   
Average strike price                    R18.57                        R17.97   
Lowest strike price                     R17.93                        R16.92   
Highest strike price                    R19.08                        R19.08   
Purchased put option                                                           
Nominal                         US$250 million                US$250 million   
Average strike price                    R15.56                        R15.53   
Lowest strike price                     R15.40                        R15.10   
Highest strike price                    R15.80                        R16.10   

Gold hedging

To create cash certainty, we entered into short-term gold forward sale contracts during July 2016 for 432 000oz over a period of 24 months,
representing approximately 20% of our total production. The sharp increase in the R/kg gold price provided us with an
opportunity to lock in 20% of our gold sales at a very attractive average rate of approximately R682 000/kg. The breakdown of gold forward
sale contracts entered into post year end are as follows:

                                             H1                          H2   
FY17   Kgs                                3 049                       3 360   
       Average R/kg                    R645 121                    R666 888   
FY18   Kgs                                3 360                       3 360   
       Average R/kg                    R692 836                    R720 374   
FY19   Kgs                                  311                               
       Average R/kg                    R725 499                               

The limited size and duration of the hedge means shareholders retain full upside exposure on 80% of Harmony's gold production for
the next two years, after which they will have 100% exposure to the gold price.

MINERAL RESOURCES AND RESERVES

Harmony owns significant gold ore deposits. Attributable gold
equivalent mineral resources as declared at 30 June 2016, were
105.2Moz, a 4.6% decrease year on year. The total gold contained
in the mineral resources at the South African operations represents
55.2% of the company's total, with the Papua New Guinea (PNG)
operations representing 44.8% of Harmony's total gold and gold
equivalent mineral resources.

Our attributable gold and gold equivalent mineral reserves
amounted to 36.9Moz of gold, a 13.3% decrease year on year.
The gold reserve ounces in South Africa represent 45.4% while the
PNG gold and gold equivalent ounces represent 54.6% of our total
mineral reserves. See below for our resources and reserves
statement.

GOLPU

The joint venture is pursuing a conventional process of applying
for a special mining lease under the PNG Mining Act, targeted
to be lodged in the first quarter of FY17.

EXPLORATION

Kili Teke

Worldwide, new greenfield copper-gold discoveries are scarce. Our
exploration strategy in PNG remains to create long term value for
shareholders by enhancing and developing our world-class portfolio
of copper-gold assets, at industry leading discovery costs – less than
$US10 per equivalent gold ounce.

Kili Teke is a prolific complex with multiple mineralised intrusive
events. The revised mineral resource estimate for Kili Teke comprises
222Mt at 0.35% copper, 0.25 g/t gold and 170 ppm molybdenum
containing 782 000t copper, 1.75Moz of gold and 38 000t
molybdenum. The updated resource has grown 50% to 6Moz on
a gold equivalent basis(1) compared to the November 2015 model.
Refer to the website (www.harmony.co.za) for a detailed annexure
related to the Kili Teke resource update.

(1)Gold equivalent based on US$1 150 per ounce gold, and US$3 per pound
   of copper and assumes 100% recovery of all metals.

South Africa

Exploration drilling is planned at Tshepong, Phakisa, Doornkop,
Target 1 and Kalgold.

NEW DRAFT MINING CHARTER

A new draft of the broad-based socio-economic empowerment charter
for the South African mining industry (Mining Charter) was published
by the Minister of Mineral Resources on 15 April 2016. We are actively
participating in the discussions on the provisions of the new charter to
ensure that the interests of all our stakeholders are protected.

STAKEHOLDER RELATIONS

Stronger margins helped us to continue to meet our social and
environmental commitments, substantiating our holistic approach to
mining in the interests of all of our stakeholders and our status as a
responsible miner. Harmony has – and continues to – make a difference:

- to shareholders – creating value by operating profitably and
  growing our margins
- to our employees – ensuring that they are safe and healthy
- to communities – participating in local economic development,
  limiting and mitigating our impact on the environment
- to government – contributing to the national fiscus

By conducting our business efficiently, profitably and sustainably,
Harmony creates shared value for all stakeholders, enabling it to
contribute to improved education, build infrastructure, provide
healthcare, stimulate local economies and rehabilitate the environment.

OBJECTIVE FOR THE NEXT THREE YEARS

Maintaining and growing our margins efficiently are essential to
sustaining our business and meeting our strategic objectives.

Harmony has shown that it can successfully operate as a gold
miner and explorer in both South Africa and PNG. The board has
supported a three-year strategy in which we plan to grow Harmony's
production to approximately 1.5Moz, producing gold at an all-in sustaining cost of
$950/oz, through:

- growing, nurturing and developing our core assets
- harvesting operations that are high cost and have a short life
- developing Golpu Stage 1
- expanding in South Africa, into Africa and PNG
- assessing organic growth opportunities

In the next year, we plan to produce approximately 1 050 000
ounces at about $1 100/oz (~R495 000/kg at an exchange rate of
R14.00). Through operational excellence, adhering to our company
values, applying mining discipline, further increasing our productivity,
creating an enabling environment and grade cut-off, we believe that
the guidance is realistic and achievable. We will not mine areas that
are unsafe or at grades lower than planned.

Our management teams are geared to deliver. On executive level,
I am well supported by an experienced, competent team and on
operational level, my two chief operating officers will ensure safe,
profitable production. I have no doubt that Harmony's current
momentum will be upheld.

Harmony has a strong investment case, being one of the few gold
mining companies increasing its underground grade, with one of the
lowest debt:ebitda ratios in the gold mining industry making a real
and lasting difference in the communities adjacent to our mines and
growing our gold–copper ounces at industry leading discovery costs.

Peter Steenkamp

Chief Executive Officer

NOTICE OF CASH DIVIDEND

Declaration of ordinary dividend no.86

The board has approved and declared a final dividend of 50 SA
cents per ordinary share in respect of the year ended
30 June 2016.

In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c)
of the JSE Listings Requirements the following additional
information is disclosed:

- The dividend has been declared out of income reserves;
- The local Dividends Tax rate is 15% (fifteen per centum);
- The gross local dividend amount is 50 SA cents per ordinary
  share for shareholders exempt from the Dividends Tax;
- The net local dividend amount is 42.5 SA cents per ordinary
  share for shareholders liable to pay the Dividends Tax;
- Harmony currently has 437 299 479 ordinary shares in issue
  (which includes 572 296 treasury shares); and
- Harmony Gold Mining Company Limited's income tax
  reference number is 9240/012/60/0.

A dividend No. 86 of 50 SA cents per ordinary share, being the
dividend for the year ended 30 June 2016, has been declared
payable on Monday, 19 September 2016 to those shareholders
recorded in the books of the company at the close of business
on Friday, 16 September 2016. The dividend is declared in the
currency of the Republic of South Africa. Any change in address or
dividend instruction to apply to this dividend must be received by
the company's transfer secretaries or registrar not later than Friday,
16 September 2016.

Last date to trade ordinary shares cum dividend is Tuesday,
13 September 2016

Ordinary shares trade ex-dividend Wednesday, 14 September 2016

Record date Friday, 16 September 2016

Payment date Monday, 19 September 2016

No dematerialisation or rematerialisation of share certificates
may occur between Wednesday, 14 September 2016 and Friday,
16 September 2016, both dates inclusive, nor may any transfers
between registers take place during this period.

SUMMARY UPDATE OF HARMONY'S MINERAL RESOURCES AND MINERAL RESERVES
AS AT 30 JUNE 2016

Harmony's statement of mineral resources and mineral reserves as
at 30 June 2016 is produced in accordance 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). It should
be noted that the mineral resources are reported inclusive of the
mineral reserves.

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 26 October 2016, which will
be available at www.harmony.co.za/investors. Refer to the website
(www.harmony.co.za) for the updated reserves and resources tables
as at 30 June 2016.

Harmony uses certain terms in the summary such as 'measured',
'indicated' and 'inferred' resources, which the United States'
Securities and Exchange Commission guidelines strictly prohibit
companies registered in the United States from including in their
filings with the commission. United States investors are urged to
consider the disclosure in this regard in our Form 20-F which will
be available on our website at www.harmony.co.za/investors/
reporting/20f on 26 October 2016.

Introduction

Gold mining and gold production are central to Harmony's existence.
Maintaining and growing our margins efficiently are essential to
sustaining our business and meeting our strategic objectives. This
includes delivering safely on our operational plans, reducing costs,
improving productivity and maximising revenue.

We are devoted to improving the company's operational
performance. Our values are entrenched in everything we do –
safety, accountability, achievement, being connected and honest –
and they inform our decisions and our actions. Realistic planning
supports our strategy to optimise assets – our ore bodies, our
infrastructure and our people. This will ensure safer, more profitable
production. Our life of mine plans for financial year 2017 were done
in line with this approach.

Harmony – Total

The company's attributable gold and gold equivalent mineral
resources are declared as 105.2Moz as at 30 June 2016, a 4.6%
decrease year on year from the 110.3Moz declared as at 30 June
2015. The total gold contained in the mineral resources at the South
African operations represents 55.2% of the company total, with
the Papua New Guinea (PNG) operations representing 44.8% of
Harmony's total gold and gold equivalent mineral resources as at 30
June 2016.

Harmony's attributable gold and gold equivalent mineral reserves
amounts to 36.9Moz, a 13.3% decrease from the 42.6Moz declared
at 30 June 2015. The gold reserve ounces in South Africa represent
45.4% while the PNG gold and gold equivalent ounces represent
54.6% of Harmony's total mineral reserves as at 30 June 2016.

SOUTH AFRICA

South African underground operations

The company's mineral resources at the South African underground
operations as at 30 June 2016 are 48.6Moz (162.1Mt at 9.32g/t), a
decrease of 19.9% year on year from the 60.6Moz (217.2Mt at 8.68g/t)
declared as at 30 June 2015. This decrease is mainly due to depletion
and reduced resources at Unisel and Masimong. There was also a
reduction at Doornkop due to the low grade South Reef to the east of the
mine that has been removed from the declaration.

The company's mineral reserves at the South African underground
operations as at 30 June 2016 are 9.7Moz (54.1Mt at 5.55g/t),
a decrease of 35.7% year on year from the 15.0Moz (80.3Mt at
5.82g/t) declared as at 30 June 2015. The decrease is due to normal depletion
and the revised Kusasalethu life of mine plan. The shorter life of 
mine plan at Kusasalethu optimises the mine's cash flow at a higher
grade and creates a much stronger margin, providing us with 
the option to consider the feasibility to
access the high grade VCR payshoot below infrastructure in the future.

South African surface operations, including Kalgold

The company's mineral resources at the South African surface
operations as at 30 June 2016 are 9.5Moz (1 085.2Mt at 0.27g/t) which
is materially the same as at the 30 June 2015 (1 082.3Mt at 0.27g/t).
The company's mineral reserves at the South African surface operations
as at 30 June 2016 are 7.1Moz (840.3Mt at 0.26g/t), in line with the
7.1Moz (835.9Mt at 0.26g/t) declared at 30 June 2015.

PAPUA NEW GUINEA (PNG)

Papua New Guinea operations

The company's attributable gold and gold equivalent mineral
resources at the PNG operations as at 30 June 2016 are 47.1Moz,
an increase of 17.1% year on year from the 40.2Moz declared as at
30 June 2015. This increase is due to resources declared at Kili Teke
and increases due to gold equivalent ratios that changed due to new
long term commodity prices used.

The company's gold and gold equivalent mineral reserves at the PNG
operations as at 30 June 2016 are 20.2Moz, a decrease of 1.8%
year on year from the 20.5Moz declared as at 30 June 2015.

ASSUMPTIONS

-   In converting the mineral resources to mineral reserves, the
    following commodity prices and exchange rates were applied:
-   A gold price of US$1 150/oz
-   An exchange rate of R/US$12.85
-   The above parameters resulted in a rand gold price of R475 000/kg
    for the South African assets.
-   The Hidden Valley mine and Golpu project in the Morobe Mining
    Joint Venture used commodity prices of US$ 1 150/oz Au,
    US$15.00/oz Ag, US$5.00/lb Mo and US$3.00/lb Cu at an
    exchange rate of US$0.80 per A$.
-   Gold equivalent ounces are calculated assuming US$1 150/oz Au, 
    US$3.00/lb Cu and US$15.00/oz Ag, and assuming a 100%
    recovery for all metals.

Harmony's South African mineral resources and reserves at
Tshepong, Phakisa, Kalgold and the group statement were
independently reviewed by The Mineral Corporation for compliance
to SAMREC. The mineral resources of the Hidden Valley operation
were independently reviewed by SRK Consulting Engineers
and Scientists and Golpu was independently 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
                                                       Measured                             Indicated                            Inferred                      Total             
Mineral Resources:                          Tonnes                      Gold      Tonnes                      Gold      Tonnes               Gold    Tonnes              Gold   
gold and gold equivalents                     (Mt)        g/t         '000oz        (Mt)        g/t         '000oz        (Mt)       g/t   '000oz      (Mt)     g/t    '000oz   
SA underground                                55.3       9.83         17 475        61.1       9.08         17 846        45.7      9.03   13 248     162.1    9.32    48 569   
SA surface incl Kalgold                      346.2       0.28          3 146       664.0       0.25          5 266        75.0      0.44    1 051   1 085.2    0.27     9 463   
Total South Africa                           401.5                    20 621       725.2                    23 111       120.6             14 299   1 247.3            58 031   
Hidden Valley*                                 1.3       1.09             47        36.4       1.62          1 898         1.1      1.28       47      38.9    1.59     1 991   
Wafi-Golpu system*                               –          –              –       400.7       0.86         11 051        99.1      0.74    2 358     499.9    0.83    13 409   
Kili Teke                                        –          –              –           –          –              –       221.5      0.25    1 751     221.5    0.25     1 751   
Total Papua New Guinea                         1.3                        47       437.2                    12 949       321.8              4 155     760.3            17 151   
Total gold Resources                         402.8                    20 668     1 162.4                    36 060       442.4             18 454   2 007.6            75 182   
Hidden Valley – gold equivalent ounces*        1.3                        11        35.0                       450         1.0                 14      37.3               475   
Wafi-Golpu – gold equivalent ounces*             –                         –       344.0                    21 469        87.8              3 559     431.8            25 028   
Kili Teke                                        –                         –           –                         –       221.5              4 494     221.5             4 494   
Total gold equivalent Resources*               1.3                        11       379.0                    21 919       310.3              8 067     690.6            29 997   
Total Harmony gold and gold                                                                                                                                                     
equivalent Resource**                        402.8                    20 679      1162.4                    57 979       442.4             26 521   2 007.6           105 179   

Mineral Resources:                                     Measured                            Indicated                            Inferred                      Total
silver and 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                                  1.3      21.52            882        35.0      30.72         34 526         1.0     31.69    1 057      37.3   30.43    36 466   
                                                       Measured                             Indicated                           Inferred                      Total             
                                            Tonnes                    Copper      Tonnes                    Copper      Tonnes             Copper    Tonnes            Copper   
                                              (Mt)          %           'Mlb        (Mt)          %           'Mlb        (Mt)         %     'Mlb      (Mt)       %      'Mlb   
Golpu                                            –          –              –       344.0       1.09          8 232        67.9      0.85    1 273     411.9    1.05     9 505   
Nambonga                                         –          –              –           –          –              –        19.9      0.21       92      19.9    0.21        92   
Kili Teke                                        –          –              –           –          –              –       221.5      0.35    1 723     221.5    0.35     1 723   
Total                                            –          –              –       344.0       1.09          8 232       309.3      0.45    3 088     653.3    0.79    11 320   

                                                                                                        Proved                    Probable                     Total            
                                                                                              Tonnes              Gold   Tonnes               Gold    Tonnes             Gold   
Mineral Reserves: gold and gold equivalents                                                     (Mt)      g/t   '000oz     (Mt)       g/t   '000oz      (Mt)     g/t   '000oz   
SA Underground                                                                                  37.6     5.81    7 008     16.6      4.96    2 645      54.1    5.55    9 654   
SA Surface including Kalgold                                                                   261.0     0.28    2 384    579.4      0.25    4 720     840.4    0.26    7 104   
Total South africa                                                                             298.5             9 393    596.0              7 365     894.5           16 758   
Hidden Valley*                                                                                   1.3     1.09       47     12.5      1.67      671      13.8    1.62      718   
Golpu system*                                                                                      –        –        –    189.6      0.91    5 522     189.6    0.91    5 522   
Total Papua New Guinea                                                                           1.3                47    202.0              6 193     203.4            6 239   
Total gold Reserves                                                                            299.9             9 440    798.0             13 558   1 097.9           22 997   
Hidden Valley – gold equivalent ounces*                                                          1.3                12     11.5                167      12.7              178   
Golpu – gold equivalent ounces*                                                                    –                 –    189.6             13 741     189.6           13 741   
Total gold equivalent Reserves*                                                                  1.3                12    201.0             13 908     202.3           13 919   
Total Harmony gold and gold equivalent Reserves**                                              299.9             9 451    798.0             27 465   1 097.9           36 916   

                                                                                                   Proved                     Probable                       Total
Mineral Reserves: silver and 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                                                                               1.3    21.52      882       11.5  34.69       12 789     12.7   33.37      13 671
                                                                                                   Proved                      Probable                      Total
                                                                                         Tonnes            Copper     Tonnes              Copper   Tonnes              Copper
                                                                                           (Mt)        %     'Mlb       (Mt)      %         'Mlb     (Mt)       %        'Mlb
Golpu                                                                                         –        –        –      189.6   1.26        5 269    189.6    1.26       5 269

*   Represents Harmony's equity portion of 50%.
**  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.

ADMINISTRATIVE INFORMATION FOR PROFESSIONAL ORGANISATIONS

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 (86) 206 0427
http://www.sacnasp.org.za/

SAIMM – The Southern African Institute of Mining
and Metallurgy
P.O. 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/

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/

Legal entitlement to the minerals being reported upon
Harmony's South African 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 State 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 – six monthly (RAND/METRIC) (US$/IMPERIAL)
                                                                                                                               South Africa
                                                                                                    Underground production                                                  Surface production
                                   Six                                                                                                                                                                    Total
                                   months                                                                                                           Total                                     Total       South      Hidden      Total
                                   ending  Kusasalethu   Doornkop    Phakisa   Tshepong   Masimong   Target 1  Bambanani       Joel    Unisel Underground     Phoenix     Dumps   Kalgold   Surface      Africa      Valley    Harmony
Ore                                Jun-16          286        316        330        535        301        359        106        264       202       2 699       3 161     1 612       745     5 518       8 217         994      9 211
milled                 - t'000     Dec-15          382        314        356        553        349        380        126        278       222       2 960       3 304     1 429       734     5 467       8 427         735      9 162
                                   Jun-16        1 874      1 356      1 962      2 506      1 098      1 299      1 217      1 086       765      13 163         385       518       532     1 435      14 598       1 376     15 974
Gold produced          - kg        Dec-15        1 989      1 374      2 026      2 525      1 334      2 088      1 796      1 192       939      15 263         419       547       571     1 537      16 800         881     17 681
                                   Jun-16       60 250     43 597     63 080     80 570     35 301     41 764     39 127     34 916    24 595     423 200      12 378    16 654    17 104    46 136     469 336      44 240    513 576
                       - oz        Dec-15       63 948     44 175     65 137     81 181     42 889     67 131     57 743     38 323    30 190     490 717      13 471    17 587    18 359    49 417     540 134      28 325    568 459
                                   Jun-16         6.55       4.29       5.95       4.68       3.65       3.62      11.48       4.11      3.79        4.88        0.12      0.32      0.71      0.26        1.78        1.38       1.73
Yield                  - g/tonne   Dec-15         5.21       4.38       5.69       4.57       3.82       5.49      14.25       4.29      4.23        5.16        0.13      0.38      0.78      0.28        1.99        1.20       1.93
                                   Jun-16      493 474    393 324    359 707    378 718    472 507    474 139    330 966    391 795   499 125     414 629     414 577   434 317   518 949   460 397     419 128     357 227    413 796
Cash                   - R/kg      Dec-15      463 958    381 921    331 657    354 907    389 369    300 044    225 845    352 208   396 112     351 108     383 002   369 514   476 532   412 949     356 765     669 695    372 358
operating
costs                              Jun-16          997        795        727        765        955        958        669        792     1 008         838         838       878     1 048       930         847         722        836
                       - $/oz      Dec-15        1 060        872        758        811        889        685        516        804       905         802         875       844     1 088       943         815       1 530        851
Cash operating                     Jun-16        3 233      1 688      2 139      1 774      1 724      1 716      3 800      1 612     1 890       2 022          50       140       371       120         745         495        718
costs                  - R/tonne   Dec-15        2 416      1 671      1 887      1 621      1 488      1 649      3 219      1 510     1 675       1 810          49       141       371       116         711         803        719
                                   Jun-16        1 806      1 314      1 955      2 496      1 095      1 323      1 212      1 008       761      12 970         379       507       550     1 436      14 406       1 494     15 900
Gold sold              - Kg        Dec-15        2 016      1 398      2 036      2 533      1 337      2 096      1 803      1 237       944      15 400         409       551       536     1 496      16 896         846     17 742
                                   Jun-16       58 064     42 247     62 855     80 248     35 205     42 535     38 967     32 408    24 467     416 996      12 185    16 300    17 683    46 168     463 164      48 034    511 198
                       - oz        Dec-15       64 816     44 946     65 459     81 437     42 986     67 388     57 967     39 771    30 350     495 120      13 150    17 715    17 233    48 098     543 218      27 199    570 417
                                   Jun-16    1 094 106    793 872  1 184 626  1 513 124    662 784    800 723    733 943    610 307   461 552   7 855 037     228 671   305 487   331 996   866 154   8 721 191     905 875  9 627 066
Revenue                (R'000)     Dec-15      983 659    686 256  1 001 761  1 242 604    654 888  1 032 532    883 332    609 720   463 388   7 558 140     200 308   271 119   263 210   734 637   8 292 777     414 521  8 707 298
                                   Jun-16      924 771    533 348    705 746    949 067    518 813    615 907    402 786    425 489   381 831   5 457 758     159 612   224 976   276 081   660 669   6 118 427     491 544  6 609 971
Cash operating costs   (R'000)     Dec-15      922 812    524 760    671 938    896 140    519 418    626 491    405 617    419 832   371 949   5 358 957     160 478   202 124   272 100   634 702   5 993 659     590 001  6 583 660
Inventory                          Jun-16     (43 481)   (25 720)    (4 988)    (7 011)    (2 906)        632      (977)   (33 734)   (1 383)   (119 568)     (4 371)  (10 171)     7 888   (6 654)   (126 222)      51 051   (75 171)
Movement               (R'000)     Dec-15       12 174     14 318      2 469      5 886      2 614      6 938      3 877     19 605     1 493      69 374     (3 466)     1 575  (16 025)  (17 916)      51 458      79 522    130 980
operating costs                    Jun-16      881 290    507 628    700 758    942 056    515 907    616 539    401 809    391 755   380 448   5 338 190     155 241   214 805   283 969   654 015   5 992 205     542 595  6 534 800
                       (R'000)     Dec-15      934 986    539 078    674 407    902 026    522 032    633 429    409 494    439 437   373 442   5 428 331     157 012   203 699   256 075   616 786   6 045 117     669 523  6 714 640
Production                         Jun-16      212 816    286 244    483 868    571 068    146 877    184 184    332 134    218 552    81 104   2 516 847      73 430    90 682    48 027   212 139   2 728 986     363 280  3 092 266
profit                 (R'000)     Dec-15       48 673    147 178    327 354    340 578    132 856    399 103    473 838    170 283    89 946   2 129 809      43 296    67 420     7 135   117 851   2 247 660   (255 002)  1 992 658
Production                         Jun-16       13 824     18 594     31 432     37 095      9 541     11 964     21 574     14 197     5 268     163 489       4 770     5 891     3 121    13 782     177 271      23 598    200 869
profit                 ($'000)     Dec-15        3 575     10 808     24 040     25 011      9 756     29 309     34 796     12 505     6 604     156 404       3 180     4 951       524     8 655     165 059    (18 726)    146 333
                                   Jun-16      196 209    115 874    162 445    167 480     57 328    160 994     52 850    103 098    32 263   1 048 541       4 736    14 402    17 966    37 104   1 085 645      38 465  1 124 110
Capital                (R'000)     Dec-15      163 303     91 753    160 618    139 378     52 961    161 344     53 306    111 909    29 802     964 374         576     3 197    18 028    21 801     986 175      40 369  1 026 544
expenditure                        Jun-16       12 745      7 527     10 552     10 879      3 724     10 458      3 433      6 697     2 096      68 111         308       936     1 167     2 411      70 522       2 499     73 021
                       ($'000)     Dec-15       11 992      6 738     11 795     10 235      3 889     11 848      3 915      8 218     2 189      70 819          42       235     1 324     1 601      72 420       2 965     75 385
                                   Jun-16      598 175    478 777    442 503    445 549    524 719    598 076    374 393    486 728   541 299     494 287     426 878   462 120   552 720   486 253     493 497     385 181    484 167
Cash Operating         - R/kg      Dec-15      546 061    448 699    410 936    410 106    429 070    377 316    255 525    446 091   427 850     414 291     384 377   375 358   508 105   427 133     415 466     715 516    430 417
Cost and Capital                   Jun-16        1 209        967        894        900      1 060      1 208        756        983     1 094         999         862       934     1 117       982         997         778        978
                       - $/oz      Dec-15        1 247      1 025        939        937        980        862        584      1 019       977         946         878       857     1 161       976         949       1 634        983
                                   Jun-16      614 069    486 741    453 534    456 159    546 615    604 176    375 987    445 332   561 454     501 430     422 997   461 111   565 351   490 977     499 393     429 121    492 792
All-in sustaining*     - R/kg      Dec-15      558 006    461 175    420 099    420 902    450 047    388 367    256 670    407 736   443 413     421 597     386 218   386 406   528 067   437 110     422 371     894 524    444 884
costs                              Jun-16        1 241        983        916        922      1 104      1 221        760        900     1 134       1 013         855       932     1 142       992       1 009         867        996
                       - $/oz      Dec-15        1 275      1 053        960        961      1 028        887        586        931     1 013         963         882       883     1 206       998         965       2 043      1 016
*Excludes share-based payment charge                       

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  Underground   Phoenix     Dumps   Kalgold     Surface      Africa     Valley     Harmony
Ore milled                         Jun-16          668        630        686      1 088        650        739        232        542       424          -        5 659     6 465     3 041     1 479      10 985      16 644      1 729      18 373
                       - 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-16        3 863      2 730      3 988      5 031      2 432      3 387      3 013      2 278     1 704          -       28 426       804     1 065     1 103       2 972      31 398      2 257      33 655
Gold                   - 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
produced                           Jun-16      124 198     87 772    128 217    161 751     78 190    108 895     96 870     73 239    54 785          -      913 917    25 849    34 241    35 463      95 553   1 009 470     72 565   1 082 035
                       - oz        Jun-15      127 092     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-16         5.78       4.33       5.81       4.62       3.74       4.58      12.99       4.20      4.02          -         5.02      0.12      0.35      0.75        0.27        1.89       1.31        1.83
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-16      478 277    387 585    345 457    366 767    426 904    366 814    268 305    371 080   442 359          -      380 522   398 122   401 033   496 991     435 858     385 760    479 196     392 026
Cash                   - 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
operating                          Jun-16        1 026        831        741        787        916        787        576        796       949          -          816       854       860     1 066         935         828      1 028         841
                       - $/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
                                   Jun-16        2 766      1 680      2 008      1 696      1 597      1 681      3 484      1 560     1 778          -        1 911        50       140       371         118         728        626         718
Cash operating costs   - 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
                                   Jun-16        3 822      2 712      3 991      5 029      2 432      3 419      3 015      2 245     1 705          -       28 370       788     1 058     1 086       2 932      31 302      2 340      33 642
                       - 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
Gold sold                          Jun-16      122 880     87 193    128 314    161 685     78 191    109 923     96 934     72 179    54 817          -      912 116    25 335    34 015    34 916      94 266   1 006 382     75 233   1 081 615
                       - 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-16    2 077 765  1 480 128  2 186 387  2 755 728  1 317 672  1 833 255  1 617 275  1 220 027   924 940          -   15 413 177   428 979   576 606   595 206   1 600 791  17 013 968  1 320 396  18 334 364
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-16    1 847 583  1 058 108  1 377 684  1 845 207  1 038 231  1 242 398    808 403    845 321   753 780          -   10 816 715   320 090   427 100   548 181   1 295 371  12 112 086  1 081 545  13 193 631
Cash operating costs   (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
Inventory                          Jun-16     (31 307)   (11 402)    (2 519)    (1 125)      (292)      7 570      2 900   (14 129)       110          -     (50 194)   (7 837)   (8 596)   (8 137)    (24 570)    (74 764)    130 573      55 809
movement               (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
                                   Jun-16    1 816 276  1 046 706  1 375 165  1 844 082  1 037 939  1 249 968    811 303    831 192   753 890          -   10 766 521   312 253   418 504   540 044   1 270 801  12 037 322  1 212 118  13 249 440
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-16      261 489    433 422    811 222    911 646    279 733    583 287    805 972    388 835   171 050          -    4 646 656   116 726   158 102    55 162     329 990   4 976 646    108 278   5 084 924
Production             (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
profit                             Jun-16       18 035     29 893     55 950     62 876     19 293     40 229     55 588     26 817    11 797          -      320 478     8 051    10 904     3 804      22 759     343 237      7 467     350 704
                       ($'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-16      359 512    207 627    323 063    306 858    110 289    322 338    106 156    215 007    62 065          -    2 012 915     5 312    17 599    35 994      58 905   2 071 820     78 834   2 150 654
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-16       24 795     14 320     22 282     21 164      7 607     22 232      7 322     14 829     4 281          -      138 832       366     1 214     2 482       4 062     142 894      5 437     148 331
                       ($'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
                                   Jun-16      571 342    463 639    426 466    427 761    472 253    461 983    303 538    465 464   478 782          -      451 334   404 729   417 558   529 624     455 678     451 746    514 125     455 929
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-16        1 226        995        915        918      1 013        991        651        999     1 027          -          968       868       896     1 136         978         969      1 103         978
                       - $/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
                                   Jun-16      584 498    473 562    436 477    438 401    493 527    471 876    304 634    424 617   496 099          -      458 094   403 907   422 205   546 949     463 492     457 819    597 398     467 526
All-in sustaining*     - R/kg      Jun-15      587 406    501 151    495 644    454 512    479 096    395 669    270 623    384 022   469 246    403 249      452 900   344 319   403 906   422 323     393 875     447 135    514 690     453 044
costs                              Jun-16        1 254      1 016        936        940      1 059      1 012        654        911     1 064          -          983       866       906     1 173         994         982      1 282       1 003
                       - $/oz      Jun-15        1 596      1 362      1 347      1 235      1 302      1 075        735      1 043     1 275      1 096        1 231       936     1 097     1 148       1 070       1 215      1 395       1 231
* Excludes share-based payment charge                       

DEVELOPMENT RESULTS
6 month average
January 2016 – June 2016

METRIC                                                         IMPERIAL
                                          Channel                                                          Channel
                 Reef Sampled     Width     Value      Gold                      Reef  Sampled    Width      Value       Gold
               Meters  Meters    (Cm's)     (g/t)   (Cmg/t)                      Feet     Feet   (Inch)     (oz/t)  (In.oz/t)
Tshepong                                                       Tshepong
Basal             472     344      9.41    149.00     1 402    Basal            1 548    1 129     4.00       4.03         16
B Reef            529     544    155.12     13.21      2049    B Reef           1 736    1 785    61.00       0.39         24
All Reefs       1 001     888     98.67     18.23     1 799    All Reefs        3 284    2 913    39.00       0.53         21
Phakisa                                                        Phakisa
Basal             822     844     58.92     21.30     1 255    Basal            2 696    2 769    23.00       0.63         14
All Reefs         822     844     58.92     21.30     1 255    All Reefs        2 696    2 769    23.00       0.63         14
Bambabani                                                      Bambabani
Basal              62      56    197.50     10.09     1 993    Basal              203      184    78.00       0.29         23
All Reefs          62      56    197.50     10.09     1 993    All Reefs          203      184    78.00       0.29         23
Doornkop                                                       Doornkop
Main Reef                  39     46.00      4.93       227    Main Reef                   128    18.00       0.15          3
South Reef        625     585     62.98     15.32       965    South Reef       2 049    1 919    25.00       0.44         11
All Reefs         625     624     61.92     14.83       918    All Reefs        2 049    2 047    24.00       0.44         11
Kusasalethu                                                    Kusasalethu
VCR Reef          575     448    109.13      9.30     1 015    VCR Reef         1 887    1 470    43.00       0.27         12
All Reefs         575     448    109.13      9.30     1 015    All Reefs        1 887    1 470    43.00       0.27         12
Target 1                                                       Target 1
Elsburg            83      90    260.90      1.73       451    Elsburg            271      295   103.00       0.05          5
All Reefs          83      90    260.90      1.73       451    All Reefs          271      295   103.00       0.05          5
Masimong 5                                                     Masimong 5
Basal             447     317     75.97     16.37     1 243    Basal            1 465    1 040    30.00       0.48         14
B Reef            320     374     74.62     22.68     1 692    B Reef           1 049    1 227    29.00       0.67         19
All Reefs         766     691     75.24     19.76     1 486    All Reefs        2 514    2 267    30.00       0.57         17
Unisel                                                         Unisel
Basal             251     190    136.35     13.95     1 903    Basal              823      623    54.00       0.40         22
Leader            709     588    217.64      4.82     1 050    Leader           2 325    1 929    86.00       0.14         12
All Reefs         960     778    197.79      6.36     1 258    All Reefs        3 149    2 552    78.00       0.19         14
Joel                                                           Joel
Beatrix         1 194   1 107    122.16      7.69       940    Beatrix          3 918    3 632    48.00       0.22         11
All Reefs       1 194   1 107    122.16      7.69       940    All Reefs        3 918    3 632    48.00       0.22         11
Total Harmony                                                  Total Harmony
Basal           2 053   1 751     65.12     21.13     1 376    Basal            6 736    5 745    26.00       0.61         16
Beatrix         1 194   1 107    122.16      7.69       940    Beatrix          3 918    3 632    48.00       0.22         11
Leader            709     588    217.64      4.82     1 050    Leader           2 325    1 929    86.00       0.14         12
B Reef            849     918    122.32     15.56     1 904    B Reef           2 785    3 012    48.00       0.46         22
Elsburg            83      90    260.90      1.73       451    Elsburg            271      295   103.00       0.05          5
South Reef        625     585     62.98     15.32       965    South Reef       2 049    1 919    25.00       0.44         11
VCR               575     448    109.13      9.30     1 015    VCR              1 887    1 470    43.00       0.27         12
Main Reef                  39     46.00      4.93       227    Main Reef                   128    18.00       0.15          3
All Reefs       6 087   5 526    108.67     11.46     1 246    All Reefs       19 970   18 130    43.00       0.33         14

CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)
                                                                                Six months ended                      Year ended
                                                                        30 June    31 December       30 June      30 June         30 June
                                                                           2016           2015          2015         2016            2015
Figures in million                                          Note    (Unaudited)    (Unaudited)   (Unaudited)   (Reviewed)       (Audited)

Revenue                                                                   9 627          8 707         7 288       18 334          15 435
Cost of sales                                                  2        (7 780)        (8 006)      (10 760)     (15 786)        (19 053)
Production costs                                                        (6 535)        (6 715)       (6 018)     (13 250)        (12 632)
Amortisation and depreciation                                           (1 084)        (1 086)       (1 220)      (2 170)         (2 472)
Reversal of impairment/(impairment) of assets                                43              -       (3 471)           43         (3 471)
Other items                                                               (204)          (205)          (51)        (409)           (478)
Gross profit/(loss)                                                       1 847            701       (3 472)        2 548         (3 618)
Corporate, administration and other expenditure                           (227)          (182)         (185)        (409)           (378)
Social investment expenditure                                              (33)           (25)          (32)         (58)            (71)
Exploration expenditure                                                    (88)          (103)          (83)        (191)           (263)
Loss on scrapping of property, plant and
equipment                                                      6           (64)              -          (61)         (64)           (491)
Foreign exchange translation gain/(loss)                       3            606          (798)         (125)        (192)           (367)
Other expenses (net)                                                       (31)           (11)           (9)         (42)             (5)
Operating profit/(loss)                                                   2 010          (418)       (3 967)        1 592         (5 193)
Profit/(loss) from associates                                  7           (28)             35          (25)            7            (25)
Profit on disposal of investments                                             -              -             4            -               4
Net gain/(loss) on financial instruments                                     28           (13)           (8)           15               9
Investment income                                                           127            114           118          241             229
Finance cost                                                              (133)          (141)         (132)        (274)           (264)
Profit/(loss) before taxation                                             2 004          (423)       (4 010)        1 581         (5 240)
Taxation                                                       4          (610)           (22)           595        (632)             704
Normal taxation                                                           (122)            (1)             7        (123)               5
Deferred taxation                                                         (488)           (21)           588        (509)             699
Net profit/(loss) for the period                                          1 394          (445)       (3 415)          949         (4 536)
Attributable to:
Owners of the parent                                                      1 394          (445)       (3 415)          949         (4 536)
Earnings/(loss) per ordinary share (cents)                     5
Basic earnings/(loss)                                                       320          (102)         (786)          218         (1 044)
Diluted earnings/(loss)                                                     306          (102)         (786)          213         (1 044)

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 2016
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 15 August 2016.
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)
                                                                              Six months ended                       Year ended
                                                                       30 June    31 December         30 June       30 June       30 June
                                                                          2016           2015            2015         2016           2015
Figures in million                                                 (Unaudited)    (Unaudited)     (Unaudited)   (Reviewed)      (Audited)
Net profit/(loss) for the period                                         1 394          (445)         (3 415)         949         (4 536)
Other comprehensive income/(loss) for the period, net
of income tax                                                            (329)           472              (6)         143              59
Items that may be reclassified subsequently to profit or
loss:                                                                    (333)           472             (11)         139              54
Foreign exchange translation gain/(loss)                                 (333)           472             (11)         139              54
Items that will not be reclassified to profit or loss:                       4             -                5           4               5
 Remeasurement of retirement benefit obligation
  Actuarial gain recognised during the year                                  3             -                8           3               8
  Deferred taxation thereon                                                  1             -              (3)           1             (3)
Total comprehensive income/(loss) for the period                         1 065            27          (3 421)       1 092         (4 477)
Attributable to:
Owners of the parent                                                     1 065            27          (3 421)       1 092         (4 477)

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 2016
                                                                                                          Other     Accumulated
Figures in million                                                                     Share capital   reserves            loss     Total
Balance - 30 June 2015                                                                       28 324       3 787         (5 358)    26 753
Share-based payments                                                                              -         322               -       322
Reversal of provision for odd lot repurchases                                                    12           -               -        12
Net profit for the period                                                                         -           -             949       949
Other comprehensive income for the period                                                         -         143               -       143
Balance - 30 June 2016 (Reviewed)                                                            28 336       4 252         (4 409)    28 179
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 (Audited)                                                             28 324       3 787         (5 358)    26 753

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

CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)
                                                                                                             At             At         At
                                                                                                        30 June    31 December    30 June
                                                                                                           2016           2015       2015
Figures in million                                                                            Note   (Reviewed)    (Unaudited)  (Audited)

ASSETS
Non-current assets
Property, plant and equipment                                                                    6       29 919         30 101     29 548
Intangible assets                                                                                           870            878        885
Restricted cash                                                                                              62             55         48
Restricted investments                                                                                    2 496          2 434      2 384
Investments in associates                                                                        7            -             10          -
Investments in financial assets                                                                               5              5          5
Inventories                                                                                                  37             36         36
Other non-current receivables                                                                   12          172             74         80
Total non-current assets                                                                                 33 561         33 593     32 986
Current assets                                                                                                                         
Inventories                                                                                               1 167          1 260      1 292
Trade and other receivables                                                                      7          654            658        746
Income and mining taxes                                                                          4            6             11         30
Derivative financial assets                                                                      3          369              -          -
Restricted cash                                                                                              17             16         16
Cash and cash equivalents                                                                                 1 256            876      1 067
Total current assets                                                                                      3 469          2 821      3 151
Total assets                                                                                             37 030         36 414     36 137

EQUITY AND LIABILITIES
Share capital and reserves
Share capital                                                                                            28 336         28 324     28 324
Other reserves                                                                                            4 252          4 358      3 787
Accumulated loss                                                                                        (4 409)        (5 803)    (5 358)
Total equity                                                                                             28 179         26 879     26 753
Non-current liabilities
Deferred tax liabilities                                                                                  2 413          1 926      1 906
Provision for environmental rehabilitation                                                                2 183          2 364      2 218
Retirement benefit obligation                                                                               169            170        163
Other non-current liabilities                                                                                16             41         37
Borrowings                                                                                       8        2 039          3 092      3 399
Total non-current liabilities                                                                             6 820          7 593      7 723
Current liabilities
Borrowings                                                                                       8          300            299          -
Income and mining taxes                                                                          4           40              1          1
Trade and other payables                                                                                  1 691          1 642      1 660
Total current liabilities                                                                                 2 031          1 942      1 661
Total equity and liabilities                                                                             37 030         36 414     36 137

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

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)
                                                                             Six months ended                       Year ended
                                                                        30 June    31 December      30 June       30 June         30 June
                                                                           2016           2015         2015          2016            2015
Figures in million                                           Note   (Unaudited)    (Unaudited)  (Unaudited)    (Reviewed)       (Audited)
Cash flow from operating activities
Cash generated by operations                                              2 923          1 736          921         4 659           1 928
Interest and dividends received                                              27             47           46            74             101
Interest paid                                                             (116)           (39)         (62)         (155)           (108)
Income and mining taxes (paid)/refunded                                    (83)             18           21          (65)              85
Cash generated by operating activities                                    2 751          1 762          926         4 513           2 006
Cash flow from investing activities
(Increase)/decrease in restricted cash                                      (5)            (7)            8          (12)               8
Decrease in restricted investments                                           36              3           30            39              31
(Increase)/decrease in loan to associate                                      -              7            -             7           (120)
Loan to ARM BBEE Trust                                         12         (200)              -            -         (200)               -
Net additions to property, plant and equipment                 10       (1 265)        (1 168)      (1 428)       (2 433)         (2 827)
Cash utilised by investing activities                                   (1 434)        (1 165)      (1 390)       (2 599)         (2 908)
Cash flow from financing activities
Borrowings raised                                               8             -            300          941           300             941
Borrowings repaid                                               8         (928)        (1 117)        (793)       (2 045)           (793)
Cash generated/(utilised) by financing activities                         (928)          (817)          148       (1 745)             148
Foreign currency translation adjustments                                    (9)             29            9            20             (8)
Net increase/(decrease) in cash and cash equivalents                        380          (191)        (307)           189           (762)
Cash and cash equivalents - beginning of period                             876          1 067        1 374          1067           1 829
Cash and cash equivalents - end of period                                 1 256            876        1 067         1 256           1 067

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 2016 (Rand)

1 Accounting policies

  Basis of accounting
  The condensed consolidated financial statements for the year ended 30 June 2016 are prepared in accordance with the requirements of
  the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings
  Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement and
  recognition requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
  Board (IASB) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
  Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by
  IAS 34 Interim Financial Reporting . The accounting policies applied in the preparation of the condensed consolidated financial
  statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.

2 Cost of sales
                                                                                Six months ended                      Year ended
                                                                     30 June      31 December       30 June      30 June          30 June
                                                                        2016             2015          2015         2016             2015
  Figures in million                                             (Unaudited)      (Unaudited)   (Unaudited)   (Reviewed)        (Audited)
  Production costs - excluding royalty                                 6 427           6 652          5 976       13 079           12 537
  Royalty expense                                                        108              63             42          171               95
  Amortisation and depreciation                                        1 084           1 086          1 220        2 170            2 472
  (Reversal of impairment)/impairment of assets(1)                      (43)               -          3 471         (43)            3 471
  Rehabilitation expenditure/(credit)(2)                                (69)              28           (26)         (41)              (6)
  Care and maintenance cost of restructured shafts                        56              58             69          114              106
  Employment termination and restructuring costs                           1              15             21           16              251
  Share-based payments(3)                                                224             105             68          329              208
  Other                                                                  (8)             (1)           (81)          (9)             (81)
  Total cost of sales                                                  7 780           8 006         10 760       15 786           19 053
  
  (1) The net reversal of impairment of long-lived assets in the June 2016 period consists of a reversal of impairment of R738 million on Doornkop, offset by
      an impairment of R466 million on Hidden Valley and R229 million on Masimong. The June 2015 impairment 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. Refer to note 6 for further details.
  (2) Included in the total for the June 2016 period is a credit of R110 million relating to the change in estimate following the annual reassessment.
  (3) Due to the low share price at the time of the awarding of performance shares (PS) for 2015, a large number of PS were allocated to employees. The
      increase in the share price between the award date and the approval date resulted in an increase in the IFRS 2 Share-based payment fair value per
      award measurement.
  
3 Foreign exchange translation gain/(loss)
                                                                               Six months ended                        Year ended
                                                                       30 June    31 December        30 June       30 June        30 June
                                                                          2016           2015           2015          2016           2015
  Figures in million                                               (Unaudited)    (Unaudited)    (Unaudited)    (Reviewed)      (Audited)
  Translation gain/(loss) on US$ revolving credit
  facility (a)                                                             135          (800)          (122)         (665)          (382)
  Unrealised derivative gain (b)                                           369              -              -           369              -
  Realised derivative gain (b)                                              77              -              -            77              -
  Other                                                                     25              2            (3)            27             15
  Total foreign exchange translation gain/(loss)                           606          (798)          (125)         (192)          (367)
  Rand/US$ exchange rate:
  Closing/spot at                                                        14.72          15.62          12.16         14.72          12.16
  Average                                                                15.39          13.62          11.91         14.50          11.45

  a) Refer to note 8 for details on the US$ revolving credit facility.
  b) During February 2016, Harmony entered into foreign exchange hedging contracts (forex hedging contracts) in the form of zero cost
     collars, which establish a minimum (floor) and maximum (cap) Rand/US Dollar exchange rate at which to convert US dollars to
     Rands. The nominal value of open forex hedging contracts at 30 June 2016 is US$500 million. The hedging contracts are spread
     over a 12 month period with a weighted average cap price of US$1=R18.27 and weighted average floor price of US$1=R15.55. The
     mark-to-market of the derivative asset is R369 million as at 30 June 2016 due to the strengthening of the Rand exchange rate against
     the US dollar since the conclusion of the forex hedging contracts. As we do not apply hedge accounting, the gains have been
     recorded in the income statement.
  
4 Taxation

  Normal taxation expense increased during the year ended 30 June 2016 due to the increased profitability at most of the South African
  operations and the inclusion of the unrealised derivative gain of R369 million in determining taxable income.

  The deferred tax expense increased during 2016 due to the net increase in the deferred tax rates year on year and utilisation of assessed
  losses and unredeemed capital by the South African companies. The weighted average deferred tax rates for most South African
  companies increased as a result of increased forecast profitability of these operations.

5 Earnings/(loss) per share
                                                                            Six months ended                         Year ended
                                                                30 June       31 December          30 June       30 June          30 June
                                                                   2016              2015             2015          2016             2015
                                                            (Unaudited)       (Unaudited)      (Unaudited)    (Reviewed)        (Audited)
  Weighted average number of shares (million)                     436.3             435.2            434.7         435.7            434.4
  Weighted average number of diluted shares (million)             455.9             436.9            438.6         446.4            438.1
  Total earnings/(loss) per share (cents):
  Basic earnings/(loss)                                             320             (102)            (786)           218          (1 044)
  Diluted earnings/(loss)                                           306             (102)            (786)           213          (1 044)
  Headline earnings/(loss)                                          324             (103)             (16)           221            (189)
  Diluted headline earnings/(loss)                                  310             (103)             (16)           216            (189)
  Figures in million
  Reconciliation of headline earnings/(loss):
  Net profit/(loss)                                               1 394             (445)          (3 415)           949          (4 536)
  Adjusted for:
  Profit on disposal of investments(1)                                -                 -              (4)             -              (4)
  Reversal of impairment/(impairment) of assets                    (43)                 -            3 471          (43)            3 471
  Taxation effect on reversal of
  impairment/(impairment) of assets                                  12                 -            (169)            12            (169)
  Profit on sale of property, plant and equipment                   (3)               (4)              (5)           (7)              (6)
  Taxation effect on profit on sale of property, plant
  and equipment                                                       -                 -              (1)             1              (1)
  Loss on scrapping of property, plant and equipment                 64                 -               61            64              491
  Taxation effect on loss on scrapping of property,
  plant and equipment                                              (12)                 -              (9)          (12)             (67)
  Headline earnings/(loss)                                        1 412             (449)             (71)           964            (821)

  (1) There is no taxation effect on this item.

6 Property, plant and equipment

  (a)    Impairment/reversal of impairment
         One of the most significant assumptions that influence the Group's operations' life-of-mine plans and therefore impairment is the
         expected gold price. During this year's planning and testing, commodity price and exchange rate assumptions as per the table below
         were used. Post-tax real discount rates ranging between 8.43% and 11.77% (2015: 7.99% and 12.03%), depending on the asset,
         were used to determine the recoverable amounts (generally fair value less costs to sell).

                                                                                                                             2017 onwards
  US$ gold price ($/ounce)                                                                                                          1 189
  US$ silver price ($/ounce)                                                                                                        17.80
  Exchange rate (R/US$)                                                                                                             13.86
  Exchange rate (PGK/US$)                                                                                                            3.10
  Rand gold price (R/Kg)                                                                                                          530 000

  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, US$5.84 per ounce was used for indicated and inferred resources.

    The annual impairment assessment performed resulted in a net reversal of impairment of R43 million for the 2016 financial year.
  - A reversal of R738 million was recorded for Doornkop mainly due to the increased Rand gold price assumption, improvements in
    operational efficiencies following the restructuring in 2015 and new areas included in the life-of-mine plan based on additional
    exploration performed during 2016. The recoverable amount is R2.8 billion.
  - An impairment of R466 million was recorded for Hidden Valley. The updated life-of-mine plan for Hidden Valley results in lower
    production in 2017 as the mine undergoes processing of ore stockpiles and a period of care and maintenance, with stripping activities
    for stage 5 planned to recommence in the 2018 financial year. The recoverable amount is R319 million (US$21.7 million).
  - An impairment of R229 million was recorded for Masimong which has a remaining life of mine of three years. The exploration
    programme to find additional areas of the higher grade B Reef proved unsuccessful and was stopped during 2016. In addition, the
    grade estimation of the Basal Reef decreased and as a result a portion of the resource was abandoned at 30 June 2016. The
    recoverable amount is R472 million.

     The recoverable amounts for these assets 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 commodity price used in the discounted cash flow models and the resource values
     used (with all other variables held constant) would have resulted in an additional impairment at Hidden Valley of R319 million and
     Masimong of R281 million. The decreases noted would have resulted in impairments at Unisel of R162 million, Free State surface
     assets of R141 million, Other Harmony assets of R46 million and Doornkop of R15 million (as opposed to the reversal recorded of
     R738 million).

  (b) Loss on scrapping of property, plant and equipment
      At 30 June 2016, following the annual life-of-mine planning, an amount of R64 million (2015: R491 million) was recorded for various
      operations as a result of the abandonment of uneconomical areas in the life-of-mine plans of those operations. The abandonment of
      unprofitable areas in the plans resulted in the derecognition of property, plant and equipment as no future economic benefits are
      expected from their use or disposal. For June 2015, the scrapping loss recorded mainly related to the life-of-mine optimisation
      process finalised in December 2014 which resulted in the abandoning of shaft levels and raise lines at Kusasalethu and Masimong.

7 Investment in associate

  Harmony's gross portion of the subordinated shareholders' loan extended to Rand Refinery Proprietary Limited (Rand Refinery) in
  December 2014 amounts to R120 million. This loan forms part of the net investment in associate. At 30 June 2016, Harmony set off its
  share of profits from associate of R7 million against its share of losses of R25 million recorded against the loan in 2015, as well as an
  additional provision for impairment of R25 million (2015: R15 million). The recoverable amount of the loan at 30 June 2016 is R62 million
  (2015: R80 million). The fair value measurement of the net investment is classified as level 3 and is non-recurring. The loan is due in
  December 2016 and has been included in Other receivables - current.

8 Borrowings

  During the 2016 financial year R300 million and R400 million was raised and repaid respectively on the R1.3 billion Nedbank revolving
  credit facility. US$110 million (R1 645 million) was repaid on the US$ revolving credit facility. Refer to note 3 for details on the foreign
  exchange translation movement.
                                                                                                            US$ facility    Rand facility
  Figures in million                                                                                           US dollar          SA rand
  Borrowings summary at 30 June 2016
  Facility                                                                                                           250            1 300
  Drawn down                                                                                                         140              300
  Undrawn committed borrowing facilities                                                                             110            1 000
  Maturity                                                                                                      February         December
                                                                                                                    2018             2016
  Interest rate                                                                                               LIBOR + 3%     JIBAR + 3.5%
  
  At 30 June 2016, the drawn amount of R300 million on the Nedbank facility is repayable within 12 months and has been reclassified as
  current. Refer to note 13 for events after reporting date.

9 Financial risk management activities

   Fair value determination

   The fair value levels of hierarchy are as follows:

   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).

   The following table presents the group's assets and liabilities that are measured at fair value at reporting date:

                                                                                               Fair value                           At 31
                                                                                                hierarchy       At 30 June       December       At 30 June
                                                                                                    level             2016           2015             2015
   Available-for-sale financial assets
   Investment in financial assets(1)                                                              Level 3                5              5                5
   Fair value through profit or loss
   Restricted investments(2)                                                                      Level 2              640            614              538
   Derivative assets(3)                                                                           Level 2              369              -                -

   (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 Top 40 index on the JSE, and are discounted at market interest rate. This relates to
       equity-linked deposits in the group's environmental rehabilitation trust funds.
   (3) The mark-to-market remeasurement of the forex hedging contracts (zero cost collars) is derived from a Black-Scholes valuation technique, derived
       from spot Rand/US$ exchange rate inputs and discounted at market interest rate.

   For all other financial instruments, fair value approximates carrying value.

10 Net additions to property, plant and equipment
                                                                         Six months ended                           Year ended
                                                               30 June      31 December            30 June        30 June         30 June
                                                                  2016             2015               2015           2016            2015
  Figures in million                                       (Unaudited)      (Unaudited)        (Unaudited)     (Reviewed)       (Audited)
  Capital expenditure - operations                               1 125            1 027              1 191          2 152           2 470
  Capital and capitalised exploration and evaluation
  expenditure for Golpu                                            126              114                105            240             119
  Additions resulting from stripping activities at Hidden
  Valley                                                            14               28                138             42             236
  Other                                                              -              (1)                (6)            (1)               2
  Net additions                                                  1 265            1 168              1 428          2 433           2 827

11 Commitments and contingencies
                                                                                                        At              At             At
                                                                                                   30 June    31 December         30 June
                                                                                                      2016           2015            2015
  Figures in million                                                                            (Reviewed)    (Unaudited)       (Audited)
  Capital expenditure commitments:
  Contracts for capital expenditure                                                                    264            166             158
  Authorised by the directors but not contracted for                                                   516          1 607             257
                                                                                                       780          1 773             415
  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
   2015. Other than discussed below, there were no significant changes in contingencies since 30 June 2015.

   (a) Silicosis
       On 13 May 2016, the Johannesburg High Court ordered the certification of a silicosis class and a tuberculosis (TB) class, which are
       to proceed as a single class against the mining companies acted in the application. The companies requested leave to appeal to the
       Supreme Court of Appeal (SCA), which was granted on 24 June 2016. Harmony submitted its notice of appeal in respect of the
       transmissibility of the general damages order on 22 July 2016.

       Due to the limited information available on the above claim and potential other claims, and the uncertainty of the outcome of the
       matter, no costs estimation can as yet be made for the possible obligation.

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.

   (a) Movement in shares owned by directors/prescribed officers for the year ended 30 June 2016:
   
                                                                                               Shares                      Performance
                                                                                         purchased in  Shares sold in    shares vested
   Name of director/prescribed officer                                                    open market     open market     and retained
   
   Frank Abbott (Financial director) (1)                                                      300 000               -           18 547
   Graham Briggs (Chief executive officer) (2)                                                      -               -           46 874
   Harry "Mashego" Mashego (Executive director) (3)                                                 -          10 000            7 760
   Ken Dicks (Independent non-executive director) (4)                                          15 000               -              n/a
   Johannes van Heerden (5)                                                                         -          41 337           13 153

   (1) Purchased on 15 December 2015.
   (2) Graham Briggs retired on 31 December 2015.
   (3) Sold on 23 March 2016.
   (4) Purchased on 8 December 2015.
   (5) Sold in several tranches during 2016.

   (b) During July 2015, Harmony signed a R150 million guarantee for the ARM Broad Based Economic Empowerment (BBEE) Trust (the Trust), 
       shareholder of the African Rainbow Minerals Limited. The guarantee was for additional security for the Trust's loan due to
       Nedbank Limited. The guarantee was subsequently cancelled in April 2016 after Harmony advanced R200 million to the Trust as part
       of the restructuring and refinancing of the Trust's bank debt. The loan is subordinated and unsecured. The interest rate is market
       related (3 month JIBAR plus 4.25%) and is receivable on the maturity of the loan on 31 December 2022. At 30 June 2016, the loan to
       the Trust was tested for impairment and a provision for impairment of R33 million was required. This impairment is included in "Other
       expenses (net)" in the income statement. The recoverable amount on the Trust loan at 30 June 2016 is R172 million and is recorded
       in Other non-current receivable in the balance sheet. The fair value measurement is classified as level 3 and is non-recurring.

13 Subsequent events

       a) On 7 July 2016, Harmony repaid the remaining R300 million outstanding on the R1.3 billion Nedbank ZAR facility.
       b) During July 2016, Harmony entered into short term gold forward sale contracts for a total of 432 000 ounces over a period of 
          24 months. These contracts create cash certainty for approximately 20% of the Group's total production at an average gold price of
          R682 000/kg. We will be applying cash flow hedge accounting to these contracts.
       c) On 15 August 2016, the board declared a dividend of 50 SA cents for the year ended 30 June 2016, payable on 19 September 2016.

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
                                                                                                                          2016                2015
   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 profit
   Total segment revenue                                                                                                18 334              15 435
   Total segment production costs                                                                                     (13 250)            (12 632)
   Production profit per segment report                                                                                  5 084               2 803
   Depreciation                                                                                                        (2 170)             (2 472)
   Reversal of impairment/(impairment) of assets                                                                            43             (3 471)
   Other cost of sales items                                                                                             (409)               (478)
   Gross profit/(loss) as per income statements(1)                                                                       2 548             (3 618)

   (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
                                                                                                                          2016               2015
   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                                                                                                           657                762
   Undeveloped property                                                                                                  5 139              5 139
   Other non-mining assets                                                                                                 168                199
   Wafi-Golpu assets                                                                                                     1 785              1 188
                                                                                                                         7 749              7 288
16 Review report

   These condensed consolidated financial statements for the year ended 30 June 2016 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 2016
                                                  Revenue                Production cost          Production profit/(loss)    Mining assets          Capital expenditure#       Kilograms produced@         Tonnes milled@
                                                   30 June                   30 June                      30 June                 30 June                  30 June                     30 June                 30 June
                                              2016          2015        2016          2015           2016         2015       2016          2015       2016         2015           2016       2015         2016          2015
                                                   R million                 R million                    R million               R million                R million                      kg                    t'000
South Africa
Underground
Kusasalethu                                  2 078         1 939       1 816         1 996            262         (57)      3 766         3 619        360          463          3 863      3 953          668           908
Doornkop                                     1 480         1 220       1 047         1 092            433          128      2 984         2 239        208          245          2 730      2 663          630           603
Phakisa                                      2 186         1 420       1 375         1 181            811          239      4 246         4 307        323          403          3 988      3 118          686           611
Tshepong                                     2 756         1 948       1 844         1 611            912          337      4 161         4 025        307          313          5 031      4 278        1 088           992
Masimong                                     1 318         1 118       1 038           992            280          126        485           893        110          166          2 432      2 463          650           670
Target 1                                     1 833         1 738       1 250         1 191            583          547      2 826         2 782        322          296          3 387      3 824          739           749
Bambanani                                    1 617         1 330         811           705            806          625        807           821        106          110          3 013      2 908          232           229
Joel                                         1 220         1 046         831           770            389          276        728           578        215          182          2 278      2 258          542           551
Unisel                                         925           770         754           682            171           88        543           594         62           99          1 704      1 695          424           417
Target 3(a)                                      -           222           -           177              -           45        526           535          -           20              -        483            -            90
Surface
All other surface operations                 1 601         1 338       1 272         1 092            329          246        448           483         59           51          2 972      2 927       10 985        10 418
Total South Africa                          17 014        14 089      12 038        11 489          4 976        2 600     21 520        20 876      2 072        2 348         31 398     30 570       16 644        16 238
International
Hidden Valley                                1 320         1 346       1 212         1 143            108          203        650         1 384         79          121          2 257      2 943        1 729         1 825
Total international                          1 320         1 346       1 212         1 143            108          203        650         1 384         79          121          2 257      2 943        1 729         1 825
Total operations                            18 334        15 435      13 250        12 632          5 084        2 803     22 170        22 260      2 151        2 469         33 655     33 513       18 373        18 063
Reconciliation of the segment
information to the condensed
consolidated financial statements (refer
to note 15)                                      -             -           -             -                                  7 749         7 288
                                            18 334        15 435      13 250        12 632                                 29 919        29 548

#   Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R240 million (2015: R119 million).
(a) Target 3 was placed on care and maintenance in October 2014.
@   Production statistics are unaudited and not reviewed.

The segment report for the year ended 30 June 2015 has been audited. The segment report for the year ended 30 June 2016 has been reviewed.

www.harmony.co.za


Date of release: 17 August 2016
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