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HARMONY GOLD MINING COMPANY LIMITED - Harmony - Results for the year ended 30 June 2017

Release Date: 17/08/2017 07:50:00      Code(s): HAR       PDF(s):  
Harmony - Results for the year ended 30 June 2017

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


FY17 RESULTS
FOR THE YEAR ENDED 30 JUNE 2017

KEY FEATURES
-  Milestone fatality free quarter achieved during the June 2017 quarter; annual fatality rates improved
-  Met production guidance for a second consecutive year
-  Underground grade increased for fifth consecutive year to 5.07g/t
-  35% increase in headline earnings per share (HEPS) of 298 SA cents (47% to 22 US cents)
-  Continued to secure cash margins through successful hedging strategy, realising gains of R1 747 million (US$128 million)
-  18% reduction in net debt to R887 million (8% to US$68 million)
-  Growing ounces - acquired full ownership of Hidden Valley - stages 5 and 6 investment on track
-  Sustainable and inclusive solutions sought to address silicosis claims
-  Final dividend of 35 SA cents (3 US cents) declared

                                                                                                Year ended      Year ended               %
                                                                                                 June 2017       June 2016        Variance
Gold produced                                  - kg                                                 33 836          33 655               1
                                               - oz                                              1 087 852       1 082 035               1
Cash operating costs                           - R/kg                                              436 917         392 026             (11)
                                               - US$/oz                                              1 000             841             (19)
Gold sold                                      - kg                                                 34 150          33 642               2
                                               - oz                                              1 097 944       1 081 615               2
Underground grade                              - g/t                                                  5.07            5.02               1
Total costs and capital(1, 2)                  - R/kg                                              510 006         457 276             (12)
                                               - US$/oz                                              1 167             981             (19)
All-in sustaining costs(2, 3)                  - R/kg                                              516 687         467 611             (10)
                                               - US$/oz                                              1 182           1 003             (18)
Gold price received                            - R/kg                                              570 164         544 984               5
                                               - US$/oz                                              1 304           1 169              12
Production profit                              - R million                                           4 452           5 084             (12)
                                               - US$ million                                           327             350              (7)
Basic earnings/(loss) per share                - SAc/s                                                  83             218             (62)
                                               - USc/s                                                   5              15             (66)
Headline earnings                              - Rm                                                  1 306             964              35
                                               - US$m                                                   95              67              43
Headline earnings per share                    - SAc/s                                                 298             221              35
                                               - USc/s                                                  22              15              47
Exchange rate                                  - R/US$                                               13.60           14.50              (6)

1 Excludes investment capital for Hidden Valley
2 Figures for the year ended June 2016 restated to include capitalised stripping
3 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 2017 will be available on our website (www.harmony.co.za/investors) on 26 October 2017. Mineral resource
and reserve information as at 30 June 2017 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 preceded 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 presentation. 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 labour 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 and 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 presentation 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 22 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                              PO 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 29 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 2017                      439 957 199

Issued ordinary share capital at 30 June 2016                      437 299 479

MARKET CAPITALISATION

At 30 June 2017 (ZARm)                                                   9 538

At 30 June 2017 (US$m)                                                     728

At 30 June 2016 (ZARm)                                                  22 945

At 30 June 2016 (US$m)                                                   1 567

HARMONY ORDINARY SHARES AND ADR PRICES

12-month high (1 July 2016 - 30 June 2017)                               66.65
for ordinary shares

12-month low (1 July 2016 - 30 June 2017)                                20.68
for ordinary shares

12-month high (1 July 2016 - 30 June 2017) for ADRs                       4.81

12-month low (1 July 2016 - 30 June 2017) for ADRs                        1.59

FREE FLOAT                                                                100%

ADR RATIO                                                                  1:1

JSE LIMITED                                                                HAR

Range for year (1 July 2016 - 30 June 2017 closing prices)     R20.68 - R66.65

Average daily volume for the year                             2 023 722 shares
(1 July 2016 - 30 June 2017)

Range for the previous year                                     R7.92 - R62.89
(1 July 2015 - 30 June 2016 closing prices)

Average daily volume for the previous year                    2 441 859 shares
(1 July 2015 - 30 June 2016)

NEW YORK STOCK EXCHANGE                                                    HMY
including other US trading platforms

Range for year (1 July 2016 - 30 June 2017 closing prices)   US$1.59 - US$4.81

Average daily volume for the year                                    5 076 621
(1 July 2016 - 30 June 2017)

Range for the previous year                                  US$0.53 - US$4.17
(1 July 2015 - 30 June 2016 closing prices)

Average daily volume for the previous year                           4 027 274
(1 July 2015 - 30 June 2016)

Investors' calendar

Release of Harmony's Integrated Annual Report                  26 October 2017
of FY17

Annual General Meeting                                        23 November 2017

H1 FY18 live presentation from Cape Town                       To be confirmed

H2 FY18 live presentation from Johannesburg                    To be confirmed


CONTACT DETAILS

CORPORATE OFFICE

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

DIRECTORS

PT Motsepe* (chairman)
FFT De Buck*^ (lead independent director)
JM Motloba*^ (deputy chairman)
PW Steenkamp (chief executive officer)
F Abbott (financial director)
JA Chissano*1^, KV Dicks*^, Dr DSS Lushaba*^
HE Mashego**, M Msimang*^, KT Nondumo*^
VP Pillay*^, JL Wetton*^, AJ Wilkens*

* Non-executive
** Executive
^ Independent
1 Mozambican

INVESTOR RELATIONS

E-mail: harmonyIR@harmony.co.za

Lauren Fourie
Investor Relations Manager
Telephone: +27 11 411 2025
Mobile: +27 71 607 1498
E-mail: lauren.fourie@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail: marian@harmony.co.za

COMPANY SECRETARY

Riana Bisschoff
Telephone: +27 11 411 6020
Fax: +27 11 696 7934
Mobile: +27 83 629 4706
E-mail: riana.bisschoff@harmony.co.za

TRANSFER SECRETARIES

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, Ameshoff Street, Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
E-mail: info@linkmarketservices.co.za
Fax: +27 86 674 2450

ADR* DEPOSITARY

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries: db@amstock.com
Toll free: +1-800-937-5449
Int: +1-718-921-8137
Fax: +1-718-765-8782
*ADR: American Depositary Receipts

SPONSOR

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

TRADING SYMBOLS

JSE Limited: HAR
New York Stock Exchange, Inc.: HMY

REGISTRATION NUMBER:

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

ISIN:

ZAE 000015228


MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

In financial year 2017 (FY17) we delivered on our strategy to produce
safe profitable ounces and increase margins. Our strategy is supported
by the fundamental pillars of operational excellence, cash certainty and
effective capital allocation.

Operational excellence in FY17 was key in improving the safety
performance, achieving our annual production guidance for a
second consecutive year, and increasing underground grade for
a fifth consecutive year. In FY17, Harmony produced 1.09 million
ounces  (Moz) of gold (exceeding production guidance of 1.05Moz)
and achieved an underground grade of 5.07g/t (FY16: 5.02g/t).

Our successful hedging strategy - which realised gains of R1.7 billion
(US$128 million) - secured cash flow margins, which enabled Harmony
to invest in Hidden Valley and reduce net debt by 18% to R887 million
(8% to US$68 million).

Harmony returned cash to shareholders by paying dividends of
R439  million (US$32 million) and positioned Hidden Valley for
growth by investing in the stage 5 and 6 cutbacks. Management is
fully committed to the success of the Hidden Valley investment,
demonstrated by the progress made since acquiring 100% ownership
of the mine, with the  stage 5 and 6 project delivery on schedule.
Hidden Valley is expected to produce 180 000oz of gold and 3Moz of
silver per annum by FY19.

A final dividend of 35 SA cents (3 US cents) per share was declared in
respect of the year ended 30 June 2017 - a 70% increase in dividends
declared year-on-year. See below for the dividend notice.

Harmony has a proactive approach to safety and health, with
experienced operational and management teams, world-class assets,
and social and environmental initiatives that promote a lasting and
sustainable legacy in the communities within which we operate.

SAFETY

The safety and health of all our employees is our primary concern and
achieving zero harm is an imperative. Sadly, we had five fatalities in
FY17, evidence that we have made progress in creating a safe work
environment but highlighting that we need to do even more.

Harmony has a comprehensive safety risk management approach that
encompasses:

-  understanding behaviours and attitudes in order to drive safety
   compliance;

-  a proactive focus;

-  the application of preventative controls; and

-  creating a culture of continuous learning and genuine care.

Two of our operations recorded exceptional safety results, with
Tshepong achieving 3 million fatality-free shifts (FFS) on 31 March 2017
and Doornkop achieving 2 million FFS on 17 December 2016.


YEAR-ON-YEAR OPERATIONAL RESULTS

Harmony's total gold production for FY17 increased by 181 kilograms
(0.5%) to 33 836 kilograms, compared to 33 655 kilograms in FY16.

The following operations increased their gold production year on year:

-  Hidden Valley: Gold production increased by 31% due to obtaining
   full ownership of the mine at the end of October 2016. The
   investment in Hidden Valley supports free cash flow generation and
   is strengthened by an experienced Papua New Guinean management
   team and stable workforce. The stage 5 and 6 cutbacks are on track
   and the four-month plant shutdown in the first half of FY18 will
   assist the ramp-up in production by the end of FY18;

-  Kusasalethu: The mine showed a notable improvement in gold
   produced, and delivered a turnaround performance in FY17
   following the decision to shorten the life of mine and focus on
   higher grade areas. Production increased by 14%, with a 25%
   increase in underground recovered grade to 7.24g/t;

-  Masimong: Gold production increased by 4%, due to a 6% increase
   in recovered grade to 3.97g/t;

-  Kalgold: Gold production increased by 9% as a result of a 7%
   increase in grade to 0.80g/t and a 2% increase in tonnes milled; and

-  Phoenix: A 10% increase in the recovered grade and a 4% increase
   in tonnes processed resulted in a 14% increase in gold production
   year on year in FY17.

The following operations reported lower gold production for the year:

-  Target 1: Production was hampered by unfavourable mining
   conditions in the higher grade areas, with underground recovered
   grade 22% lower year on year at 3.58g/t and gold production
   21% lower;

-  Bambanani: Gold production decreased by 9%, as a result of an 8%
   decrease in underground recovered grade to 11.90g/t;

-  Tshepong: Gold production decreased by 4% due to a 6% decrease
   in tonnes milled, whilst the underground recovered grade improved
   by 2% to 4.69g/t; and

-  Unisel: Production decreased by 6% as a result of a 7% decrease
   in tonnes milled during FY17. Recovered grade remained more or
   less steady. Development will focus on higher grade areas in the
   shaft pillar during FY18.

Cash operating cost increased by 11% or R1.430 billion (18% or
US$166 million) in FY17, mainly due to increases in labour costs (annual
increases and bonuses), inflationary increases in consumables and
contractors for the South African operations, as well as the inclusion of
100% of Hidden Valley's costs from November 2016.

Production profit for FY17 decreased by 13% to R4.452 billion
(US$327 million) when compared to the R5.084 billion (US$350 million)
recorded in FY16. This was mainly due to an 11% increase in cash
operating cost in rand terms.

Overall, all-in sustaining costs increased by 10% in FY17 to R516 687/kg
(US$1 182/oz), compared to R467 611/kg (US$1 003/oz) in FY16.
Preventative maintenance was conducted at many of the South African
operations in order to improve asset management and performance,
which has resulted in a 36% reduction in engineering stoppages
during FY17 and will benefit production performance in the future.

Capital expenditure for FY17 increased by 68% to R3.686 billion
(79% to US$271 million), of which R1.335 billion (US$98 million)
was spent at Hidden Valley. Capital expenditure for South African
operations increased by 13% or R276 million (21% or US$30 million),
which includes R156 million (US$11 million) spent on the Central Plant
reclamation project.


YEAR-ON-YEAR FINANCIAL RESULTS

Revenue

Revenue increased by 5% in FY17 to R19.3 billion (12% to
US$1.42  billion) mainly as a result of year-on-year production
remaining stable and the inclusion of the realised gains on the rand
gold hedges of R728 million (US$54 million) as part of revenue. This
inclusion resulted in the average gold price received being R570 164/kg
(US$1  304/oz), compared with R544  984/kg (US$1  169/oz) in FY16,
despite the rand gold price being flat year on year.

Impairments

The annual impairment assessment of assets resulted in the following
impairments being recorded in FY17: Kusasalethu R677 million
(US$52 million); Target 1 R786 million (US$60 million) and Tshepong
Operations R255 million (US$19 million). Refer to note 8 
for a detailed discussion on the reasons for the impairments.

Silicosis class action

As a consequence of the progress in the negotiations to settle the
silicosis and tuberculosis class action and the ability to determine a
possible settlement amount for the industry working group, a provision
has been raised at 30 June 2017. The provision of R917 million
(US$70 million) before tax is Harmony's best estimate of its portion of
the potential contribution to the Legacy Fund. This is charged to other
operating expenses and reduced headline earnings. Refer to note 11 
for further details.

Net profit

In FY17 a net profit of R362 million (US$20 million) was recorded
compared to a net profit of R949 million (US$64 million) in FY16.
Headline earnings amounted to 298 SA cents per share (22 US cents
per share) compared to headline earnings of 221 SA cents per share
(15 US cents per share) for FY16.

Hedging activity

The hedging programmes realised gains of R1 747 million
(US$128  million) for FY17. Management continues to top-up these
programmes as and when opportunities arise to lock in attractive
margins for the business.

Currency hedging

The foreign currency 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 2017 is US$422 million.
The realised gain from contracts maturing in FY17 amounted to
R1 003 million (US$74 million).

Commodity hedging

Gold hedging is in the form of short-term gold forward sale contracts
with a maximum term of 24 months. US$ gold forward sale contracts
were entered into for Hidden Valley during May 2017. The nominal
value hedged at 30 June 2017 was 388 000 ounces.

During May 2017 Harmony entered into silver zero cost collars for the
silver from Hidden Valley. The nominal value hedged at 30 June 2017
was 970 000 ounces.

A gain of R728 million (US$54 million) was realised on the contracts
that matured and is included in revenue. Cash flow hedge accounting
is applied to the rand gold forward contracts.

Refer to note 3 and 10 for further details.

A summary of all the open hedging contracts as at 30 June 2017 is as follows:

                                                       FY18                                   FY19

                                        Q1           Q2           Q3         Q4      Q1      Q2       Q3    Q4   Total
                 US$m                  111          132          120         59                                    422
US$/ZAR          Floor               15.00        14.40        14.00      14.00
                 Cap                 16.30        15.50        15.00      15.00
                 '000 oz                54           54           54         54      54      27       27           324
R/gold           R'000/kg              686          700          713        728     697     630      643
                 '000 oz                 4            3           12         15      15      15                     64
US$/gold         US$/oz              1 265        1 270        1 272      1 275   1 278   1 281
Total gold       '000 oz                58           57           66         69      69      42       27           388
                 '000 oz                40           60          180        210     240     240                    970
US$/silver       Floor               17.10        17.10        17.10      17.10   17.10   17.10
                 Cap                 18.10        18.10        18.10      18.10   18.10   18.10


SUMMARY UPDATE OF HARMONY'S MINERAL
RESOURCES AND MINERAL RESERVES AS AT
30 JUNE 2017

Harmony owns significant gold ore deposits in South Africa and
gold-copper deposits in Papua New Guinea (PNG). Attributable gold
equivalent mineral resources as declared at 30 June 2017, were
104.3Moz, a 0.9% decrease year on year. The total gold contained
in the mineral resources at the South African operations represents
53.2% of the company's total, with the Papua New Guinea (PNG)
operations representing 46.8% of Harmony's total gold and gold
equivalent mineral resources.

Our attributable gold and gold equivalent mineral reserves amounted to
36.7Moz of gold, only a 0.5% decrease year on year. The gold reserve
ounces in South Africa represent 44.3%, while the PNG gold and gold
equivalent ounces represent 55.7% of our total mineral reserves. See
below for our resources and reserves statement.


TSHEPONG/PHAKISA INTEGRATION

The close proximity of the Tshepong and Phakisa mines provides an
opportunity to optimise existing infrastructure of each operation.
In  the short-term, additional volumes from Phakisa will be hoisted
from Tshepong.


GOLPU
The Wafi-Golpu Joint Venture parties continued to progress activity in
line with the forward work plan previously communicated, including
engagement with the PNG Government on the application for a Special
Mining Lease (SML) for the Wafi-Golpu project.

The current study work is focussed on assessing:

-  self-generation power supply options;

-  reassessment of block cave levels and increased mining rates due
   to increased knowledge obtained from further drilling undertaken
   during the year; and

-  deep sea tailings placement options to compare with terrestrial
   tailings storage options.

The Joint Venture parties are targeting a complete update of the
feasibility study by the end of March 2018. The focus of this work is
to further optimise the business case and confirm any amendments
necessary to the supporting documents for the SML application.
Timing of first production is dependant on the updated study outcomes
and the granting of the SML.


EXPLORATION

Our exploration strategy is to target highly prospective underexplored
terrains, pursue brownfields exploration targets close to existing
infrastructure and thereby create value for shareholders by discovering
large long-life bulk minable gold and copper-gold deposits and
enhancing the profitability of our existing operations. Key work streams
underpinning the FY17 exploration program include:

-  brownfield exploration at Hidden Valley and Kalgold for high-grade
   satellite resources to leverage existing open pit operations and
   extend mine life;

-  brownfield exploration at our underground operations in South
   Africa; and

-  greenfield exploration to enhance Harmony's world-class portfolio of
   copper gold assets in PNG.

REGULATORY CERTAINTY THAT PROMOTES A
SUSTAINABLE MINING INDUSTRY

Harmony has been a key player in transforming the gold mining industry
and remains committed to transformation in South Africa. Regulatory
certainty is key to the future success and sustainability of the South
African mining industry. It is important that the mining regulators
take the interests of all stakeholders into account. Our involvement in
discussions regarding mining regulation through the Chamber of Mines of
South Africa will continue to ensure that transformation is meaningful
and sustainable and does not undermine the viability of an industry
that contributes significantly to the country's economy and its people.


FY18 PRODUCTION AND COST GUIDANCE

In the next year, we plan to produce approximately 1.1Moz at an all-in
sustaining cost of about US$1 180/oz (~R520 000/kg at an exchange
rate of R13.74/US$). We will not mine areas that are unsafe or at
grades lower than planned.


STRONG INVESTMENT CASE

We continue to make progress in growing from a 1.1Moz gold producer
to a 1.5Moz producer by FY19. The first steps to growing our ounces
was obtaining 100% ownership in Hidden Valley (180 000oz per
annum) and commencing with the Central Plant reclamation project
(15 000oz per annum for approximately 19 years) in FY17. Focused
exploration targets, unlocking the value of Golpu and identifying value
accretive acquisitions remain key in improving the quality of our assets,
driving down costs and achieving our aspiration of being a 1.5Moz
producer in FY19. We have also changed our operating model to
ensure, that two executive teams - one in South Africa and the other
in PNG - supported by corporate services, focus on optimising all of our
assets and increasing value for shareholders.

Production is safer and more predictable, grade management is
disciplined, production delivery exceeds guidance, operations are
generating operational free cash flow, and the hedging strategy secures
cash margins. Combined with Harmony's low net debt compared to
peers and its excellent growth opportunities. We believe that Harmony 
has a strong investment case.

Peter Steenkamp
Chief executive officer


NOTICE OF CASH DIVIDEND

Our dividend declaration for the year ended 30 June 2017 is as
follows:

Declaration of ordinary dividend no. 88

The board has approved and declared a final dividend of 35 SA cents
(3 US cents) per ordinary share in respect of the year ended
30 June 2017.

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 20% (twenty per centum);

-  The gross local dividend amount is 35 SA cents per ordinary share
   for shareholders exempt from the Dividends Tax;

-  The net local dividend amount is 28 SA cents per ordinary share for
   shareholders liable to pay the Dividends Tax;

-  Harmony currently has 439 957 199 ordinary shares in issue (which
   includes 75 888 treasury shares); and

-  Harmony Gold Mining Company Limited's income tax reference
   number is 9240/012/60/0.

A dividend No. 88 of 35 SA cents per ordinary share, being the final
dividend for the year ended 30 June 2017, has been declared payable
on Monday, 16 October 2017 to those shareholders recorded in the
books of the company at the close of business on Friday, 13 October
2017. 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, 13 October 2017.

Last date to trade ordinary shares
cum dividend is                           Tuesday, 10 October 2017

Ordinary shares trade ex-dividend       Wednesday, 11 October 2017

Record date                                Friday, 13 October 2017

Payment date                               Monday, 16 October 2017

No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 11 October 2017 and Friday, 13 October
2017, 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 2017

Harmony's statement of mineral resources and mineral reserves as at
30 June 2017 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  available on our website as from 17 August 2017 and published
in the Integrated Report on 26 October 2017, 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 2017.

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 2017.

Introduction

Maintaining and growing our margins efficiently is 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 are prepared in line
with this approach.

Harmony - Total

The company's attributable gold and gold equivalent mineral resources
are declared as 104.3Moz as at 30 June 2017, a 0.9% decrease year
on year from the 105.2Moz declared as at 30 June 2016. The total
gold contained in the mineral resources at the South African operations
represents 53.2% of the company total, with the PNG operations
representing 46.8% of Harmony's total gold and gold equivalent
mineral resources as at 30 June 2017. Harmony's attributable gold
and gold equivalent mineral reserves amounts to 36.7Moz, a 0.5%
decrease from the 36.9Moz declared at 30 June 2016. The gold reserve
ounces in South Africa represent 44.3% while the PNG gold and gold
equivalent ounces represent 55.7% of Harmony's total mineral reserves
as at 30 June 2017.

South Africa

South African underground operations

The company's mineral resources at the South African underground
operations as at 30 June 2017 are 46.6Moz (160.1Mt at 9.06g/t), a
decrease of 4.0% year on year from the 48.6Moz (162.1Mt at 9.32g/t)
declared as at 30 June 2016. This decrease is due to depletion and
geological changes at some of the operations. The company's mineral
reserves at the South African underground operations as at 30  June
2017 are 9.1Moz (50.4Mt at 5.61g/t), a decrease of 6.2% year on year
from the 9.7Moz (54.1Mt at 5.55g/t) declared as at 30 June 2016.
The decrease is lower than normal depletion due to gains in reserves
from Masimong, Doornkop and Kusasalethu.

South African surface operations, including Kalgold
The company's mineral resources at the South African surface
operations as at 30 June 2017 are 8.8Moz (984.6Mt at 0.28g/t). There
was an increase in reserves at Kalgold and the company's mineral
reserves after normal depletion at the South African surface operations
as at 30 June 2017 are 7.2Moz (827.8Mt at 0.27g/t), in line with the
7.1Moz (840.4Mt at 0.26g/t) declared at 30 June 2016.

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 2017 are 48.8Moz, an increase
of 3.6% year on year from the 47.1Moz declared as at 30 June 2016.
This increase is mainly due to acquiring full ownership of Hidden Valley.
The company's gold and gold equivalent mineral reserves at the PNG
operations as at 30 June 2017 are 20.5Moz, an increase of 1.5% year
on year from the 20.2Moz declared as at 30 June 2016.


ASSUMPTIONS

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

-  A gold price of US$1200/oz.

-  An exchange rate of R/US$13.61.

-  The above parameters resulted in a rand gold price of R525 000/kg
   for the South African assets.

-  The Hidden Valley mine and the Golpu project used commodity
   prices of US$1200/oz Au, US$18.00/oz Ag, US$7.00/lb Mo and
   US$3.00/lb Cu at an exchange rate of US$0.76 per A$.

-  Gold equivalent ounces are calculated assuming US$1200/oz
   Au, US$3.00/lb Cu and US$18.00/oz Ag, and assuming a 100%
   recovery for all metals.


Independent review

Harmony's South African mineral resources and reserves at Joel, Target,
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.


Mineral resources:              Measured                                 Indicated                        Inferred                                    Total
gold and gold           Tonnes                       Gold     Tonnes                   Gold     Tonnes                  Gold     Tonnes                        Gold
equivalents                (Mt)     g/t            '000oz        (Mt)         g/t    '000oz        (Mt)        g/t    '000oz        (Mt)            g/t      '000oz
SA underground            53.9     9.93            17 195       54.6        8.62     15 145       51.6        8.61    14 277       160.1           9.06      46 616
SA surface incl Kalgold  269.8     0.28             2 450      649.5        0.27      5 592       65.3        0.36       764       984.6           0.28       8 807
Total South Africa       323.7                     19 645      704.1                 20 737      116.9                15 041     1 144.7                     55 423
Hidden Valley              0.5     1.04                17       82.2        1.50      3 967        2.6        1.16        97        85.3           1.49       4 081
Wafi-Golpu system*           -        -                 -      400.7        0.86     11 051       99.2        0.74     2 359       499.9           0.83      13 410
Kili Teke                    -        -                 -          -           -          -      237.0        0.24     1 810       237.0           0.24       1 810
Total Papua New            0.5                         17      482.9                 15 018      338.7                 4 267       822.1                     19 301
Guinea    
Total gold Resources     324.2                     19 662    1 187.0                 35 755      455.6                19 308     1 966.8                     74 724
Hidden Valley - gold
equivalent ounces          0.5                          4       79.4                  1 100        2.4                    34        82.3                      1 137
Wafi-Golpu - gold
equivalent ounces*           -                          -      344.0                 20 575       87.8                 3 415       431.8                     23 990
Kili Teke - gold
ecquivalent ounces           -                          -          -                      -      237.0                 4 416       237.0                      4 416
Total gold equivalent
resources**                0.5                          4      423.5                 21 674      327.2                 7 864       751.1                     29 542
Total Harmony gold
and gold equivalent
resource**               324.2                     19 665    1 187.0                 57 429      455.6                27 172     1 966.8                    104 266


Mineral resources:                 Measured                             Indicated                        Inferred                                  Total
silver and copper
(used in equivalent      Tonnes                    Silver      Tonnes                 Silver     Tonnes               Silver      Tonnes                     Silver
calculations)               (Mt)      g/t          '000oz         (Mt)        g/t     '000oz       (Mt)       g/t     '000oz         (Mt)            g/t     '000oz
Hidden Valley               0.4     19.73             272        79.4       28.69     73 272       2.4      29.01      2 231        82.3           28.65     75 776

                                   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                     -        -                -           -           -          -      237.0      0.34      1 767       237.0          0.34        1 767
Total                         -        -                -       344.0        1.09      8 232      324.8      0.44      3 132       668.8          0.77       11 364


                                                                          Proved                          Probable                            Total
Mineral reserves:                                              Tonnes                  Gold      Tonnes                  Gold     Tonnes                      Gold
gold and gold equivalents                                         (Mt)        g/t    '000oz         (Mt)        g/t    '000oz        (Mt)          g/t      '000oz
SA underground                                                   37.1        5.80     6 921        13.3        5.07     2 163       50.4           5.61      9 084
SA surface incl Kalgold                                         186.0        0.29     1 717       641.7        0.26     5 462      827.8           0.27      7 179
Total South Africa                                              223.1                 8 639       655.0                 7 624      878.1                    16 263
Hidden Valley                                                     0.5        1.04        17        25.7        1.66     1 370       26.2           1.65      1 387
Wafi-Golpu system*                                                  -           -         -       189.6        0.91     5 522      189.6           0.91      5 522
Total Papua New Guinea                                            0.5                    17       215.3                 6 892      215.8                     6 908
Total gold reserves                                             223.6                 8 655       870.3                14 516    1 093.9                    23 171
Hidden Valley - gold equivalent ounces                            0.4                     4        24.4                   403       24.8                       407
Wafi-Golpu - gold equivalent ounces*                                -                     -       189.6                13 168      189.6                    13 168
Total gold equivalent reserves**                                  0.4                     4       214.0                13 571      214.4                    13 575
Total Harmony gold and gold equivalent 
reserves**                                                      223.6                 8 659       870.3                28 087    1 093.9                    36 746


Mineral reserves:                                                         Proved                          Probable                            Total
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                                                     0.4       19.73       272        24.4       34.23    26 835       24.8      33.98       27 107

                                                                           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.



EXPLORATION

Our exploration strategy is to target highly prospective underexplored
terrains, pursue brownfields exploration targets close to existing
infrastructure and thereby create value for shareholders by discovering
large long-life bulk minable gold and copper-gold deposits and
enhancing the profitability of our existing operations. Key work streams
underpinning the FY17 exploration program include:

-  brownfield exploration at Hidden Valley and Kalgold for high-grade
   satellite resources to leverage existing open pit operations and
   extend mine life;

-  brownfield exploration at our underground operations in South
   Africa; and

-  greenfield exploration to enhance Harmony's world-class portfolio of
   copper gold assets in PNG.


Papua New Guinea

Kili Teke

The Kili Teke copper-gold deposit is 100% owned by Harmony and
represents the first greenfield porphyry copper gold discovery in PNG
since the Golpu copper gold deposit, which was identified in 1990
and then materially expanded some 20 years later in 2010. Harmony's
exploration team has played an integral role in both discoveries.
Kili Teke is a prolific complex with multiple mineralized intrusive events.
Field work at the Kili Teke deposit has been scaled back in order to fully
model the drilling results, and undertake pre-concept study work to
inform the next phase of follow-up drilling.


South Africa

B-Reef

There is significant potential on the B Reef which is currently being
mined as a high grade secondary reef to the Basal Reef at Masimong
and Tshepong. Ongoing exploration at these mines have yielded
positive results and resulted in the addition of higher grade ounces
to the ore reserves. The same B Reef channel is expected to exist at
Phakisa and exploration drilling has commenced from underground to
delineate the high grade payshoots.

Doornkop

A 2D seismic survey has been completed at Doornkop in conjunction
with long incline boreholes drilled from underground drilling platforms.
The results of this work has led to an increase to the reserves at the
mine.

Kalgold

The area beneath and surrounding the existing Kalgold operations is an
exciting Greenstone Belt exploration opportunity. An extensive drilling
program has been planned, which commenced towards the end of
FY17. The exploration drilling is a low cost option that could contribute
to surface growth ounces in the short to medium term.



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

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

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 - YEAR ON YEAR (RAND/METRIC)

                                                                                                                                                      South Africa
                                                                                                                          Underground production                                                                        Surface production
                                                                                                                                                                                                                                                                   Total
                               Year                                                                                                                                                               Total                                             Total          South        Hidden          Total
                               ended                     Tshepong          Phakisa  Bambanani                 Joel        Doornkop         Target 1 Kusasalethu       Masimong     Unisel   Underground     Phoenix       Dumps     Kalgold       Surface         Africa        Valley(1)     Harmony
 Ore milled          - t'000   Jun-17                       1 027             668         231                  514             641              745         607            640        394         5 467       6 729       2 810       1 506        11 045         16 512         2 889         19 401
                               Jun-16                       1 088             686         232                  542             630              739         668            650        424         5 659       6 465       3 041       1 479        10 985         16 644         1 729         18 373
 Yield               - g/tonne Jun-17                        4.69            6.00       11.90                 4.37            4.17             3.58        7.24           3.97       4.05          5.07       0.136       0.375       0.800         0.288           1.87          1.07           1.77
                               Jun-16                        4.62            5.81       12.99                 4.20            4.33             4.58        5.78           3.74       4.02          5.02       0.124       0.350       0.746         0.271           1.89          1.31           1.83
 Gold produced       - kg      Jun-17                       4 819           4 009       2 750                2 246           2 673            2 669       4 394          2 538      1 595        27 693         918       1 055       1 205         3 178         30 871         2 965         33 836
                               Jun-16                       5 031           3 988       3 013                2 278           2 730            3 387       3 863          2 432      1 704        28 426         804       1 065       1 103         2 972         31 398         2 257         33 655
 Gold sold           - kg      Jun-17                       4 817           3 999       2 745                2 280           2 712            2 642       4 498          2 539      1 590        27 822         932       1 064       1 213         3 209         31 031         3 119         34 150
                               Jun-16                       5 029           3 991       3 015                2 245           2 712            3 419       3 822          2 432      1 705        28 370         788       1 058       1 086         2 932         31 302         2 340         33 642
 Gold price received - R/kg    Jun-17                     572 921         575 663     574 227              573 986         572 494          570 091     572 376        571 870     575 650      573 193     549 777     572 172     573 010       565 984        572 447       544 442        570 164
                               Jun-16                     547 967         547 829     536 410              543 442         545 770          536 196     543 633        541 806     542 487      543 291     544 390     544 996     548 072       545 972        543 543       564 272        544 984
 Revenue             (R'000)   Jun-17                   2 759 762       2 302 075   1 576 252            1 308 688       1 552 605        1 506 180   2 574 548      1 451 978     915 284   15 947 372     512 392     608 791     695 061     1 816 244     17 763 616     1 499 938     19 263 554
                               Jun-16                   2 755 728       2 186 387   1 617 275            1 220 027       1 480 128        1 833 255   2 077 765      1 317 672     924 940   15 413 177     428 979     576 606     595 206     1 600 791     17 013 968     1 320 396     18 334 364
 Cash operating      (R'000)   Jun-17                   2 031 560       1 645 243     874 042              927 796       1 223 571        1 356 071   2 018 699      1 115 342     838 543   12 030 867     363 974     458 624     556 754     1 379 352     13 410 219     1 214 270     14 624 489
 cost                          Jun-16                   1 845 207       1 377 684     808 403              845 321       1 058 108        1 242 398   1 847 583      1 038 231     753 780   10 816 715     320 090     427 100     548 181     1 295 371     12 112 086     1 081 545     13 193 631
 Inventory           (R'000)   Jun-17                      (2 137)         (2 890)     (3 245)               7 718          17 079          (11 105)     61 779         (2 354)      (740)       64 105       8 067       8 591       7 408        24 066         88 171        99 196        187 367
 movement                      Jun-16                      (1 125)         (2 519)      2 900              (14 129)        (11 402)           7 570     (31 307)          (292)       110       (50 194)     (7 837)     (8 596)     (8 137)      (24 570)       (74 764)      130 573         55 809
 Operating costs     (R'000)   Jun-17                   2 029 423       1 642 353     870 797              935 514       1 240 650        1 344 966   2 080 478      1 112 988     837 803   12 094 972     372 041     467 215     564 162     1 403 418     13 498 390     1 313 466     14 811 856
                               Jun-16                   1 844 082       1 375 165     811 303              831 192       1 046 706        1 249 968   1 816 276      1 037 939     753 890   10 766 521     312 253     418 504     540 044     1 270 801     12 037 322     1 212 118     13 249 440
 Production profit   (R'000)   Jun-17                     730 339         659 722     705 455              373 174         311 955          161 214     494 070        338 990      77 481    3 852 400     140 351     141 576     130 899       412 826      4 265 226       186 472      4 451 698
                               Jun-16                     911 646         811 222     805 972              388 835         433 422          583 287     261 489        279 733     171 050    4 646 656     116 726     158 102      55 162       329 990      4 976 646       108 278      5 084 924
 Capital expenditure (R'000)   Jun-17                     386 626         329 513      76 759              242 503         242 649          323 699     288 850        119 160      77 864    2 087 623       5 129     162 849      95 573       263 551      2 351 174     1 334 534      3 685 708
                               Jun-16                     306 858         323 063     106 156              215 007         207 627          322 338     359 512        110 289      62 065    2 012 915       5 312      17 599      38 862        61 773     2 074 688        121 321      2 196 009
 Cash operating      - R/kg    Jun-17                     421 573         410 387     317 833              413 088         457 752          508 082     459 422        439 457     525 732      434 437     396 486     434 715     462 037       434 031        434 395       466 847        436 917
 costs                         Jun-16                     366 767         345 457     268 305              371 080         387 585          366 814     478 277        426 904     442 359      380 522     398 122     401 033     496 991       435 858        385 760       479 196        392 026
                     - R/tonne Jun-17                       1 978           2 463       3 784                1 805           1 909            1 820       3 326          1 743      2 128         2 201          54         163         370           125            812           500            772
                               Jun-16                       1 696           2 008       3 484                1 560           1 680            1 681       2 766          1 597      1 778         1 911          50         140         371           118            728           626            718
 Cash operating      - R/kg    Jun-17                     501 802         492 581     345 746              521 059         548 530          629 363     525 159        486 407     574 550      509 822     402 073     589 074     541 350       516 961        510 557       503 475        510 006
 cost and Capital(2)           Jun-16                     427 761         426 466     303 538              465 464         463 639          461 983     571 342        472 253     478 782      451 334     404 729     417 558     532 224       456 643        451 837       532 949        457 276
 All-in sustaining   - R/kg    Jun-17                     506 969         507 849     357 025              477 484         562 907          651 833     541 247        500 938     591 913      518 940     404 685     445 451     558 731       476 431        514 333       543 186        516 687
 cost                          Jun-16                     438 401         436 477     304 634              424 617         473 562          471 876     584 497        493 527     496 099      458 094     403 907     422 205     549 590       464 470        457 910       597 398        467 611
 Operating free      %         Jun-17                          12              14          40                   11               6              (12)         10             15           -           11          28          (2)          6            10             11           (56)             6
 cash flow margin(3)           Jun-16                          22              22          43                   13              14               15          (6)            13         12            17          24          23           2            15             17            14             16
  
1 Ore milled for Hidden Valley includes 461 000 tonnes (Jun-16: Nil) that has been capitalised as part of pre-stripping of stages 5 and 6.
  Gold produced and sold for Hidden Valley includes 364 kilograms (Jun-16: Nil) that has been capitalised.
2 Excludes investment capital for Hidden Valley.
3 Excludes run of mine costs for Kalgold (Jun-17: R-0.254m. Jun-16: R2.429m) and Hidden Valley (Jun-17: R212.419m. Jun-16: R61.267m).


CONDENSED CONSOLIDATED INCOME STATEMENTS
(RAND)

                                                                                                            Year ended
                                                                                                      30 June         30 June
                                                                                                          2017           2016
Figures in million                                                                        Notes     (Reviewed)       (Audited)


Revenue                                                                                       10       19 264          18 334
Cost of sales                                                                                  2      (19 639)        (15 786)
  Production costs                                                                                    (14 812)        (13 250)
  (Impairment)/Reversal of impairment of assets                                                8       (1 718)             43
  Amortisation and depreciation                                                                        (2 519)         (2 170)
  Other items                                                                                            (590)           (409)

Gross profit/(loss)                                                                                      (375)          2 548
Corporate, administration and other expenditure                                                          (517)           (409)
Exploration expenditure                                                                                  (241)           (191)
Gains on derivatives                                                                           3        1 025             446
Other operating expenses                                                                       4         (886)           (802)
Operating profit/(loss)                                                                                  (994)          1 592
Gain on bargain purchase                                                                       5          848               -
Loss on liquidation of subsidiaries                                                                       (14)              -
Profit/(loss) from associates                                                                  9          (22)              7
Investment income                                                                                         268             256
Finance cost                                                                                             (234)           (274)

Profit/(loss) before taxation                                                                            (148)          1 581
Taxation                                                                                       6          510            (632)
  Current taxation                                                                                       (488)           (123)
  Deferred taxation                                                                                       998            (509)

Net profit for the year                                                                                   362             949

Attributable to:
Owners of the parent                                                                                      362             949

Earnings per ordinary share (cents)                                                            7
Basic earnings                                                                                             83             218
Diluted earnings                                                                                           79             213


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 2017 have been prepared by Harmony Gold Mining Company Limited's corporate reporting team headed by Herman Perry
CA(SA). This process was supervised by the financial director, Frank Abbott CA(SA) and approved by the board of Harmony Gold
Mining Company Limited on 15 August 2017. These condensed consolidated financials have been reviewed by the group's external
auditors, PricewaterhouseCoopers Incorporated (see note 20).



CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (RAND)

                                                                                                                                   Year ended
                                                                                                                               30 June      30 June
                                                                                                                                  2017         2016
Figures in million                                                                                                  Notes   (Reviewed)     (Audited)

Net profit for the year                                                                                                           362           949
Other comprehensive income for the year, net of income tax                                                                        818           143
Items that may be reclassified subsequently to profit or loss:                                                                    821           139
   Foreign exchange translation gain/(loss)                                                                                      (322)          139
   Remeasurement of Rand gold contracts                                                                                10
     Unrealised gain on Rand gold contracts                                                                                     2 172             -
     Released to revenue                                                                                                         (728)            -
     Released to gains on derivatives                                                                                             (16)            -
     Deferred taxation thereon                                                                                                   (285)            -

Items that will not be reclassified to profit or loss:                                                                             (3)            4
   Remeasurement of retirement benefit obligation
    Actuarial gain/(loss) recognised during the period                                                                             (1)            3
    Deferred taxation thereon                                                                                                      (2)            1

Total comprehensive income for the year                                                                                         1 180         1 092

Attributable to:
Owners of the parent                                                                                                            1 180         1 092

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 2017




                                                                                                                    Other  Accumulated
Figures in million                                                                           Share capital       reserves         loss        Total

Balance - 30 June 2016                                                                              28 336          4 252       (4 409)      28 179
Share-based payments                                                                                     -            371            -          371
Net profit for the year                                                                                  -              -          362          362
Other comprehensive income for the year                                                                  -            818            -          818
Dividends paid1                                                                                          -              -         (439)        (439)
Balance - 30 June 2017 (Reviewed)                                                                   28 336          5 441       (4 486)      29 291

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 year                                                                                  -              -          949          949
Other comprehensive income for the year                                                                  -            143             -         143
Balance - 30 June 2016 (Audited)                                                                    28 336          4 252       (4 409)      28 179


1 Dividend of 50 SA cents declared on 15 August 2016 and dividend of 50 SA cents declared on 31 January 2017.


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



CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)

                                                                                                                    At         At
                                                                                                               30 June    30 June
                                                                                                                  2017       2016
Figures in million                                                                                  Notes   (Reviewed)   (Audited)

ASSETS
Non-current assets

Property, plant and equipment                                                                          8       30 044     29 919
Intangible assets                                                                                      8          603        870
Restricted cash                                                                                                    64         62
Restricted investments                                                                                          2 658      2 496
Investments in associates                                                                              9           46          -
Investments in financial assets                                                                                     4          5
Inventories                                                                                                        38         37
Trade and other receivables                                                                                       185        172
Derivative financial assets                                                                           10          306          -
Total non-current assets                                                                                       33 948     33 561

Current assets

Inventories                                                                                            5        1 127      1 167
Restricted cash                                                                                                    18         17
Trade and other receivables                                                                                     1 003        660
Derivative financial assets                                                                           10        1 541        369
Cash and cash equivalents                                                                                       1 246      1 256
Total current assets                                                                                            4 935      3 469

Total assets                                                                                                   38 883     37 030

EQUITY AND LIABILITIES
Share capital and reserves

Share capital                                                                                                  28 336     28 336
Other reserves                                                                                                  5 441      4 252
Accumulated loss                                                                                               (4 486)    (4 409)
 
Total equity                                                                                                   29 291     28 179


Non-current liabilities

Deferred tax liabilities                                                                               6        1 702      2 413
Provision for environmental rehabilitation                                                             5        2 638      2 183
Provision for silicosis settlement                                                                    11          917          -
Retirement benefit obligation                                                                                     179        169
Other non-current liabilities                                                                                      13         16
Borrowings                                                                                            12          299      2 039

Total non-current liabilities                                                                                   5 748      6 820

Current liabilities

Borrowings                                                                                            12        1 834        300
Trade and other payables                                                                                        2 010      1 731
Total current liabilities                                                                                       3 844      2 031

Total equity and liabilities                                                                                   38 883     37 030


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



CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(RAND)
                                                                                                                    Year ended
                                                                                                               30 June        30 June
                                                                                                                  2017           2016
Figures in million                                                                                  Notes   (Reviewed)       (Audited)

Cash flow from operating activities
Cash generated by operations                                                                                     4 346          4 659
Interest and dividends received                                                                                     75             74
Interest paid                                                                                                      (79)          (155)
Income and mining taxes paid                                                                                      (538)           (65)
Cash generated by operating activities                                                                           3 804          4 513

Cash flow from investing activities
Increase in restricted cash                                                                                         (1)           (12)
Decrease in amounts invested in restricted investments                                                               7             39
Loan to associate repaid                                                                                             -              7
Loan to ARM BBEE Trust                                                                                               -           (200)
Cash on acquisition of Hidden Valley                                                                    5          459              -
Net additions to property, plant and equipment                                                         14       (3 924)        (2 433)
Cash utilised by investing activities                                                                           (3 459)        (2 599)

Cash flow from financing activities
Borrowings raised                                                                                      12          699            300
Borrowings repaid                                                                                      12         (710)        (2 045)
Dividends paid                                                                                                    (439)             -
Cash utilised by financing activities                                                                             (450)        (1 745)
Foreign currency translation adjustments                                                                           95              20
Net increase/(decrease) in cash and cash equivalents                                                               (10)           189
Cash and cash equivalents - beginning of year                                                                    1 256          1 067
Cash and cash equivalents - end of year                                                                          1 246          1 256


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 2017 (Rand)

1 Accounting policies

  Basis of accounting

  The condensed consolidated financial statements for the year ended 30 June 2017 are prepared in accordance with the
  requirements of the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act no.71 
  of 2008 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, with the exception of the policy for hedge accounting, which was only
  applicable during 2017.

   The following standards, amendments to standards and new interpretations have been adopted with effect 1 July 2016 and had
   no impact on the results of the group (other than disclosure where relevant):

   IFRSs                                   Annual Improvements 2012-2014 cycle
   IAS 1 (Amendments)                      Presentation of Financial Statements

   New amendments to standards which had an effect on the condensed consolidated financial statements:
   
   IFRS 11 (Amendments)                    Joint Arrangements - Acquisitions of interests in joint operations

   The principles and disclosure requirements of IFRS 3 Business Combinations were applied to the acquisition of an additional
   interest in a joint operation which related to Harmony's acquisition of Newcrest Mining Limited's (Newcrest) 50% interest in the
   Hidden Valley operation in Papua New Guinea (PNG). Refer to note 5 for further details.

   Management is continuing with its assessment of the new standards that are effective from 1 July 2018, the most prominent
   being IFRS 9 Financial Instruments , and IFRS 15 Revenue from Contracts with Customers. Further analysis of the potential
   impact of the standards still indicates that they will not have a significant impact on the financial statements.

   The line items "Social investment expenditure", "Loss on scrapping of property, plant and equipment" and "Foreign exchange
   translation" were presented separately in the income statement for 2016. These line items have been included within "Other
   operating expenses" for 2017.


2 Cost of sales
                                                                                                                                           Year ended
                                                                                                                                   30 June            30 June
                                                                                                                                      2017               2016
   Figures in million                                                                                                            (Reviewed)          (Audited)
   Production costs - excluding royalty(1)                                                                                          14 597             13 079
   Royalty expense                                                                                                                     215                171
   Amortisation and depreciation                                                                                                     2 519              2 170
   Impairment/(Reversal of impairment) of assets(2)                                                                                  1 718                (43)
   Rehabilitation expenditure/(credit)(3)                                                                                               23                (41)
   Care and maintenance cost of restructured shafts                                                                                    109                114
   Employment termination and restructuring costs(4)                                                                                    74                 16
   Share-based payments                                                                                                                391                329
   Other                                                                                                                                (7)                (9)
   Total cost of sales                                                                                                              19 639             15 786
   
   1 Production costs increased for 2017 as a result of increases in labour costs (annual increases and bonuses) and consumables together with the
     inclusion of 100% of Hidden Valley from November 2016.

   2 The impairment of the long-lived assets in 2017 consist of: Kusasalethu shaft (R678 million), Tshepong Operations (R255 million) and Target 1
     shaft (R785 million). The net reversal of impairment in 2016 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. There were no reversals recognised in 2017. Refer to note 8 for further
     details.

   3 Included in the total for 2017 is a credit of R109 million (2016: R110 million) relating to the change in estimate following the annual reassessment of
     the provision for environmental rehabilitation.

   4 Included in the total for 2017 is R61 million relating to consulting and contractor fees for the optimisation of the Hidden Valley operation.



3 Gains on derivatives

   Gains on derivatives include the fair value movements of derivatives which have not been designated as hedging instruments
   for hedge accounting purposes, the amortisation of day one gains and losses for hedging instruments and the hedging
   ineffectiveness.

                                                                                                                                  Year ended
                                                                                                                             30 June           30 June
                                                                                                                                2017              2016
   Figures in million                                                                                                      (Reviewed)         (Audited)
   Unrealised derivative gain/(loss)1                                                                                            100               369
   Realised derivative gain1                                                                                                   1 019                77
   Day one loss amortisation                                                                                                     (94)                -
   Total gains on derivatives                                                                                                  1 025               446

   1  Relates primarily to the foreign exchange hedging contracts. Refer to note 10.



4 Other operating expenses

                                                                                                                                   Year ended
                                                                                                                             30 June           30 June
                                                                                                                                2017              2016
   Figures in million                                                                                                      (Reviewed)         (Audited)
   Social investment expenditure                                                                                                  74                58
   Loss on scrapping of property, plant and equipment (refer to note 8)                                                          140                64
   Foreign exchange translation1 (refer to note 12)                                                                             (194)              638
   Silicosis settlement provision (refer to note 11)                                                                             917                 -
   Profit on sale of property, plant and equipment                                                                               (42)               (7)
   Other                                                                                                                          (9)               49
   Total other operating expenses                                                                                                886               802

   1 The gains arising from the foreign exchange hedging contracts were previously included as part of the foreign exchange translation gain/loss line.
     The derivative gains and losses are now included in the gains from derivatives (refer to note 3). As a result, the foreign exchange translation
     gain/loss has been re-presented for 2016 to exclude the gains on derivatives.



5 Acquisition of full ownership of Hidden Valley

   Background prior to the transaction
   The group had a 50% interest in the mining and exploration assets located in the Morobe province, PNG. Newcrest owned the
   remaining 50% interest in these assets. The assets include the Hidden Valley mine and the Wafi-Golpu projects. This
   partnership was formed during the 2009 financial year through a range of transactions, and was completed by 30 June 2009.
   This partnership was considered a joint arrangement and was accounted for as a joint operation.

   Hidden Valley transaction

   On 19 September 2016 Harmony announced the agreement to purchase Newcrest PNG 1 Ltd, the wholly owned subsidiary of
   Newcrest which holds Newcrest's 50% interest in the Hidden Valley joint venture, for a cash consideration of US$1. As part of
   the transaction, Newcrest made a once-off contribution of US$22.5 million (R309 million) towards Hidden Valley's future
   estimated environmental liability. The transaction was conditional upon certain regulatory approvals which were obtained on
   25 October 2016 and Harmony gained control over Hidden Valley from this date.

   The completion of the transaction gives Harmony 100% ownership of the Hidden Valley mine and surrounding exploration
   tenements. The acquisition of the additional 50% interest in the Hidden Valley mine is aligned with the group's growth
   aspirations. The Hidden Valley operation is an open-pit gold and silver mining operation which includes the processing plant.
   The mine reached commercial levels of production in the 2009 financial year. There is an established quality management team
   that have good relationships with key stakeholders including the community and a stable workforce. Full ownership of the mine
   has enabled management to commit to the re-investment of capital at the operation (previously delayed by the joint venture
   partners) and commence the stripping of stages 5 and 6 which is expected to extend the life of mine of the operation.
   Since the close of the transaction, the additional 50% interest in Hidden Valley contributed revenue of R583 million and
   R52 million profit to the group. If the acquisition had occurred on 1 July 2016, the group's unaudited consolidated revenue would
   have increased by R533 million and profit would have decreased by R34 million.

   IFRS does not currently provide guidance how to account for step-up transactions from joint operations to control and the group
   has elected to apply the principles of IFRS 3 to such transactions. The purchase price allocation was initially prepared on a
   provisional basis in accordance with IFRS 3.


   No new information has been obtained since the acquisition date about facts and circumstances that existed at the acquisition
   date requiring adjustments to the below amounts, or any additional provisions that existed at the date of acquisition, and
   therefore accounting for the acquisition has been concluded.

   Consideration transferred

   The cash consideration paid to acquire Newcrest's 50% interest in Hidden Valley amounted to US$1. The group acquired a
   cash balance of R459 million which is presented within the cash flow statement as a net inflow of cash from investing activities.
   The cash paid by Newcrest as a once-off contribution to the rehabilitation liability is included in the cash balance presented as
   part of the net assets acquired in the transaction.
   Acquisition related costs

   The Group incurred acquisition related costs of R4 million on advisory and legal fees. These costs are recognised as
   transaction costs as part of corporate and administrative expenses.

   Identifiable assets acquired and liabilities assumed

   The fair value of the identifiable net assets acquired was determined on the expected discounted cash flows based on the life-of-
   mine plan of Hidden Valley at a post-tax real discount rate of 12.53%, exchange rate of PGK/US$3.17, gold price of
   US$1 189/oz and silver price of US$17.80/oz. The valuation was performed at 26 October 2016. The fair values are as follows:

                                                                                                          Previously          Acquired             Total
   Figures in million                                                                                  held interest          interest(1)          (100%)
   Fair value of identifiable net assets acquired
   Property, plant and equipment                                                                                 636               636             1 272
   Inventories (current)                                                                                         491               491               982
   Trade and other receivables (current)                                                                          22                19                41
   Cash and cash equivalents                                                                                      54               459               513
   Provision for environmental rehabilitation                                                                   (483)             (483)             (966)
   Trade and other payables (current)                                                                           (114)             (274)             (388)
                                                                                                                 606               848             1 454
   Less fair value of previously held interest(2)                                                                                                   (606)
   Net fair value of identifiable net assets acquired                                                                                                848

   1 Harmony acquired the legal entity which held Newcrest's interest in Hidden Valley. This subsidiary contained certain assets and liabilities which
     were different to those held by Harmony with respect to its interest in Hidden Valley.
   2 The fair value of the previously held interest equalled the carrying amount of the assets and liabilities recognised by Harmony relating to the
     previously held interest at the date of acquisition and no gain or loss was recognised with respect to the deemed disposal of the previously held
     interest.

   The fair value of the previously held interest at 30 June 2016 was R615 million which consisted of Harmony's long term assets
   and related rehabilitation provision for its interest in Hidden Valley totalling R319 million and the working capital relating to
   Harmony's interest in Hidden Valley totalling R296 million.

   On the date of acquisition, the fair value of the previously held interest does not equal 50% of the fair value of the total
   identifiable assets and liabilities assumed primarily because the acquired legal entity which held Newcrest's interest in Hidden
   Valley included the cash paid by Newcrest (R309 million or US$22.5 million) and other assets and liabilities which differed from
   the assets and liabilities held in Harmony's previously held interest.

   Gain on bargain purchase

   A gain on bargain purchase arising from the acquisition has been determined as follows:

   Figures in million
   Consideration paid                                                                                                                                  -
   Fair value of identifiable net assets acquired                                                                                                    848
   Gain on bargain purchase                                                                                                                          848

   Since Harmony only paid US$1 for the 50% share a gain on bargain purchase results. A strategic review of the Hidden Valley
   operation conducted by Newcrest resulted in their decision to exit the operation as it represented a non-core asset.



6  Taxation

   Current taxation expense increased for the year ended 30 June 2017 compared to the previous year, due to the utilisation of
   assessed losses and unredeemed capital at most of the South African operations in the prior year as well as the inclusion of
   derivative gains in determining taxable income.

   The weighted average deferred tax rates for most South African companies decreased as a result of decreased forecast
   profitability of these operations. The deferred tax rate for Freegold decreased from 20.0% to 12.5% and for Randfontein
   (consisting of Doornkop and Kusasalethu) decreased from 10.1% to 3.8%. The effect of these decreases resulted in the credit
   to the income statement in 2017.



7  Earnings per ordinary share

                                                                                                                     Year ended
                                                                                                                30 June         30 June
                                                                                                                   2017            2016
                                                                                                              (Reviewed)       (Audited)
   Weighted average number of shares (million)                                                                      438             436
   Weighted average number of diluted shares (million)                                                              459             446

   Total earnings per share (cents):

   Basic earnings                                                                                                    83             218
   Diluted earnings                                                                                                  79             213
   Headline earnings                                                                                                298             221
   Diluted headline earnings                                                                                        284             216

   Figures in million
   Reconciliation of headline earnings:

   Net profit                                                                                                       362             949
   Adjusted for:
   Gain on bargain purchase1                                                                                       (848)              -
   Loss on liquidation of subsidiary1                                                                                14               -
   Impairment/(Reversal of impairment) of assets                                                                  1 718             (43)
   Taxation effect on impairment/reversal of impairment of assets                                                   (26)             12
   Profit on sale of property, plant and equipment                                                                  (42)             (7)
   Taxation effect on profit on sale of property, plant and equipment                                                 7               1
   Loss on scrapping of property, plant and equipment                                                               140              64
   Taxation effect on loss on scrapping of property, plant and equipment                                            (19)            (12)
   Headline earnings                                                                                              1 306             964
  
   1  There is no taxation effect on this item.



8  Property, plant and equipment and Intangible assets


   (a) Acquisition of Hidden Valley
       Refer to note 5 for details of the property, plant and equipment acquired as part of the Hidden Valley transaction.


   (b) Impairment/reversal of impairment of property, plant and equipment and goodwill
       The recoverable amount of mining assets is generally determined utilising real discounted future cash flows. 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 8.98% and 11.92% (2016: 8.43% and 11.77%),
       depending on the asset, were used to determine the recoverable amounts (fair value less costs to sell).
                                                                                                                           2018 onwards
          US$ gold price ($/ounce)                                                                                                1 200
          US$ silver price ($/ounce)                                                                                              17.00
          Exchange rate (R/US$)                                                                                                   13.61
          Exchange rate (PGK/US$)                                                                                                  3.16
          Rand gold price (R/kg)                                                                                                525 000

       For South African operations, values of US$32.69, US$18.68 and US$4.67 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 impairment assessment performed resulted in an impairment loss of R1.7 billion for the 2017 financial year. The slight
       decrease in the gold price used in the life-of-mine plans, together with cost inflation, impacted negatively on margins. This,
       as well as increases in the discount rates used, contributed to the lower recoverable amounts.

       -  An impairment of R785 million was recorded for Target 1, resulting in a recoverable amount of R2.0 billion. Information
          gained from the underground drilling during the year indicated that some areas of the bottom reef of the Dreyerskuil are
          highly channelised, which negatively impacted on the overall grade for the operation. These areas were subsequently
          excluded from the life-of-mine plan. This, together with the general pressure on margins, reduced the profitability of the
          operation over its life and contributed to the decrease in the recoverable amount.

       -  An impairment of R678 million was recorded for Kusasalethu mainly following a reduction in the additional attributable
          resource value as a result of a decrease in the ounces. The company investigated the viability of a decline to extend the life.
          The business case showed that the option was not feasible and therefore the resource ounces were reduced. The
          recoverable amount of the operation is R 2.8 billion.

       -  An impairment of R255 million was recorded for Tshepong Operations resulting in a recoverable amount of R7.8 billion. Due
          to the integration of Tshepong and Phakisa as of 1 July 2017, the two cash generating units (CGUs) were combined for
          impairment testing for the first time. The carrying amount of the combined CGU included goodwill of R581 million. The
          planned improvement to the environmental conditions at the operation resulted in additional capital expenditure, which
          impacted on the recoverable amount. The impairment has been allocated to the CGU's goodwill, which is included in
          intangible assets.

       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 additional impairments as follows:

       Figures in million
       Tshepong Operations                                                                                                       3 439
       Kusasalethu                                                                                                               1 374
       Hidden Valley                                                                                                             1 041
       Target 1                                                                                                                  1 006
       Doornkop                                                                                                                    934
       Masimong                                                                                                                    395
       Other surface operations                                                                                                    257
       Unisel                                                                                                                      221
       Bambanani                                                                                                                   128

   (c) Loss on scrapping of property, plant and equipment
       An amount of R140 million was recorded for various operations as a result of the abandonment of individual surface assets
       that are no longer core to the business or in use.



9  Investments in associate

   Harmony's gross portion of the subordinated shareholders' loan extended to Rand Refinery Proprietary Limited (Rand Refinery)
   in December 2014 amounted to R120 million. The loan formed part of the net investment in associate and was included in
   Trade and other receivables. On 5 June 2017, the loan was converted into redeemable preference shares. The fair value of the
   loan on the date of the conversion was R71 million, resulting in a loss of R15 million being recognised. The fair value was
   determined using a discounted cash flow model which included expected dividends and redemption amounts at a discount rate
   of 17.6%. The fair value measurement is classified as a level 3 model and is non-recurring.

   Harmony's share of losses from associates amounted to R7 million for the year, which have been accounted for as part of the
   investment in associates. The cumulative losses of R25 million result in the net investment balance of R46 million at
   30 June 2017.



10 Derivative financial assets


                                                                                                                 At               At
                                                                                                            30 June          30 June
                                                                                                               2017             2016
   Figures in million                                                                                    (Reviewed)         (Audited)
   Non-current                                                                                                  306                -
   Rand gold contracts (a)                                                                                      298                -
   US$ commodity contracts (b)                                                                                    8                -
   Current                                                                                                    1 541              369
   Rand gold contracts (a)                                                                                    1 080                -
   US$ commodity contracts (b)                                                                                   12                -
   Foreign exchange hedging contracts (c)                                                                       449              369

   (a) During the year Harmony started a hedging programme and entered into Rand gold forward sale derivative contracts (Rand
       gold contracts). At 30 June 2017, the volume of open contracts is 10 077 kg (324 000 oz) spread over 21 months at an
       average forward sale price of R693 437/kg. Cash flow hedge accounting is applied to these contracts, resulting in the
       effective portion of the unrealised gains and losses being recorded in other comprehensive income (other reserves). During
       the year ended 30 June 2017, the contracts that matured realised a gain of R744 million, of which R728 million has been
       included in revenue and the ineffective portion of R16 million in gains on derivatives. The unamortised portion of the day one
       gain or loss amounted to R34 million on 30 June 2017.

   (b) During May 2017, Harmony began a hedging programme for Hidden Valley by entering into commodity hedging contracts.
       The contracts comprise US$ gold forward sale derivative contracts as well as silver zero cost collars which establish a
       minimum (floor) and maximum (cap) silver sales price. At 30 June 2017, the volume of open contracts is 1 991 kg
       (64 000 oz) for the gold contracts at an average of US$1 276/oz and 30 170 kg (970 000 oz) for the silver contracts, spread
       over 18 months. The weighted average prices for the silver contracts are as follows: cap US$18.10/oz and floor
       US$17.10/oz. Hedge accounting is not applied and the resulting gains and losses are recorded in gains on derivatives in the
       income statement.

   (c) Harmony has entered into foreign exchange hedging contracts (forex hedging contracts) in the form of zero cost collars,
       which establish a floor and cap US$/Rand exchange rate at which to convert US dollars to Rands. The nominal value of
       open forex hedging contracts at 30 June 2017 is US$422 million (30 June 2016: US$500 million). The hedging contracts are
       spread over a 12-month period with a weighted average cap price of US$1=R 15.53 (30 June 2016: US$1=R18.27) and
       weighted average floor price of US$1=R14.41 (30 June 2016: US$1=R15.55). As hedge accounting is not applied, the
       resulting gains and losses have been recorded in gains on derivatives in the income statement (refer to note 3).



11 Provision for silicosis settlement

   Harmony and certain of its subsidiaries (Harmony group), together with other mining companies, are named in a class action for
   silicosis and tuberculosis which was certified by the Johannesburg High Court in May 2016. The companies requested leave to
   appeal to the Supreme Court of Appeal, which was granted on 13 September 2016 and is scheduled to be heard from
   19 – 23 March 2018.

   A gold mining industry working group consisting of African Rainbow Minerals Limited, Anglo American South Africa Limited,
   AngloGold Ashanti Limited, Gold Fields Limited, Sibanye Gold Limited and Harmony (collectively the working group) was
   formed in November 2014 to address issues relating to the compensation and medical care for occupational lung diseases in
   the gold mining industry in South Africa. Essentially, the companies are seeking a comprehensive and sustainable solution
   which deals with both the legacy compensation issues and future legal frameworks which, while being fair to employees, also
   ensures the future sustainability of companies in the industry. The working group has engaged all stakeholders on these
   matters, including government, organised labour, other mining companies and legal representatives of claimants who have filed
   legal suits against the companies. The Working Group believes that achieving a comprehensive settlement which is fair to past,
   present and future employees and sustainable for the sector is preferable to protracted litigation.

   The facts of the matter have previously been disclosed as a contingent liability. As a result of the progress made by the working
   group and the status of negotiations with affected stakeholders, management is now in a position to reasonably estimate
   Harmony's share of a possible settlement of the class action claims and related costs within an acceptable range. A pre-tax
   charge of R917 million has been recognised in the results for the year ending 30 June 2017.

   The assumptions that were made in the determination of the provision amount include:

     -    Silicosis prevalence rates;
     -    Estimated settlement per claimant;
     -    Benefit take-up rates;
     -    The contributions to fund the benefit payments and administration costs;
     -    An appropriate discount rate; and
     -    Inflation.

   There is uncertainty with regard to the rate at which potential claims would be reported as well as the benefit take-up rates.

   The ultimate outcome of these matters remains uncertain, with a possible failure to reach a settlement or to obtain the requisite
   court approval of the settlement. The provision recorded in the financial statements is consequently subject to adjustment or
   reversal in the future, depending on the progress of the working group discussions and stakeholder consultations, and the
   ongoing legal proceedings.



12 Borrowings

   During the year ended 30 June 2017:

     -  R300 million was repaid on the R1.3 billion Nedbank revolving credit facility (RCF) in July 2016. The facility matured during
        February 2017 and was replaced with a new R1 billion Nedbank RCF with similar terms to the previous facility. During March
        2017, R300 million was drawn down on the new facility.

     -  US$30 million (R410 million) was repaid on the US$ RCF between August and November 2016. US$30 million
        (R399 million) was drawn down on the facility during April 2017.

                                                                                                        US$ facility   Rand facility
   Figures in million                                                                                      US dollar         SA rand
   Borrowings summary at 30 June 2017
   Facility                                                                                                      250           1 000
   Drawn down                                                                                                    140             300
   Undrawn committed borrowing facilities                                                                        110             700
   Maturity                                                                                                 February        February
                                                                                                                2018            2020
   Interest rate                                                                                             LIBOR +         JIBAR +
                                                                                                                  3%           3.15%

   The foreign exchange translation movements on the US$ loan are as follows:

                                                                                                                    Year ended
                                                                                                             30 June          30 June
                                                                                                                2017             2016
   Figures in million                                                                                      (Reviewed)        (Audited)
   Translation gain/(loss) on US$ revolving credit facility                                                      214             (665)

   Rand/US$ exchange rate:
   Closing/spot                                                                                                 13.11           14.72
   Average                                                                                                      13.60           14.50

   At 30 June 2017, the drawn amount of US$140 million on the US$ RCF is repayable within 12 months and has been reclassified
   as current. Management has concluded a new US$ facility. Refer to note 17 for details after the reporting date.



13 Financial risk management activities

   Commodity price sensitivity

   The profitability of the group's operations, and the cash flows generated by those operations, are affected by changes in the
   market price of gold, and in the case of Hidden Valley, silver as well. During 2017, Harmony entered into derivative contracts to
   manage the variability in cash flows from the group's production, in order to create cash certainty and protect the group against
   lower commodity prices. The limits currently set by the Board are for 20% of the production from gold and 25% from silver over
   a 24-month period. Management continues to top-up these programmes as and when opportunities arise to lock in attractive
   margins for the business.

   The variability in the price of gold is managed by entering into gold forward sales contracts for the portion of the group's
   production. The production of the South African operations is linked to Rand gold forward contracts. These contracts have been
   designated as cash flow hedging instruments and hedge accounting has been applied. US$ gold forward contracts were entered
   into for the production from Hidden Valley, which were not designated as hedging instruments for hedge accounting and are
   accounted for in the income statement.

   The variability in to the price of silver for Hidden Valley is managed by entering into US$ zero cost collars. These contracts have
   not been designated as hedging instruments for hedge accounting and are accounted for in the income statement.

   Refer to note 3 and 10 and the fair value determination section below for further detail on these contracts.

   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:
                                                                                                                                        At                At
                                                                                                                                   30 June           30 June
                                                                                                            Fair value
                                                                                                             hierarchy                2017              2016
                                                                                                                 level          (Reviewed)          (Audited)
   Available-for-sale financial assets
   Investment in financial assets(1)                                                                           Level 3                  4                  5
   Fair value through profit or loss financial assets
   Restricted investments(2)                                                                                   Level 2                840                639
   Derivative financial assets(3)                                                                              Level 2              1 847                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. The balance of the environmental trust funds are held to maturity and
      therefore not disclosed here.
   3  The mark-to market remeasurement of the following contracts is derived from:
       -  Forex hedging contracts (zero cost collars): a Black-Scholes valuation technique, derived from spot Rand/US$ exchange rate inputs and
          discounted at market interest rate.
       -  Rand gold hedging contracts (forward sale contracts): spot Rand/US$ exchange rate, Rand and dollar interest rates (forward points), spot
          US$ gold price, differential between the US interest rate and gold lease interest rate which is discounted at market interest rate.
       -  US$ gold hedging contracts (forward sale contracts): spot US$ gold price, differential between the US interest rate and gold lease interest
          rate and discounted at market interest rate.
       -  Silver hedging contracts (zero cost collars): a Black-Scholes valuation technique, derived from spot US$ silver price and discounted at market
          interest rate.

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



14 Net additions to property, plant and equipment

                                                                                                                             Year ended
                                                                                                                       30 June       30 June
                                                                                                                          2017          2016
   Figures in million                                                                                               (Reviewed)      (Audited)
   Capital expenditure - operations                                                                                      2 354         2 152
   Additions resulting from development at Hidden Valley                                                                 1 335             -
   Capital and capitalised exploration and evaluation expenditure for Golpu                                                197           240
   Additions resulting from stripping activities                                                                            77            42
   Other1                                                                                                                  (39)           (1)
   Net additions                                                                                                         3 924         2 433

   1  Includes sale of Ernest Oppenheimer Hospital in 2017.



15 Commitments and contingencies

                                                                                                                             At                At
                                                                                                                        30 June           30 June
                                                                                                                           2017              2016
   Figures in million                                                                                                 (Reviewed)         (Audited)
   Capital expenditure commitments:
   Contracts for capital expenditure                                                                                        187               264
   Authorised by the directors but not contracted for                                                                       789               516
                                                                                                                            976               780
   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 2016. Except as disclosed in note 11, there were no significant changes in contingencies since 30 June 2016.



16 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 year ended 30 June 2017:

                                                                                                            Shares      Shares sold    Performance
                                                                                                      purchased in          in open         shares
                                                                                                       open market           market     vested and
                                                                                                                                          retained
   Name of director/prescribed officer
   Frank Abbott (Financial director)(1)                                                                         -                 -         84 952
   Beyers Nel (Chief Operating Officer: SA)                                                                     -                 -         14 646
   Johannes van Heerden (Chief executive officer (South East Asia))                                             -                 -         25 000
 
   1  These shares have been voluntarily locked-up in terms of the minimum shareholding requirement of the 2006 Share Plan but remains beneficially
      owned.

   (b) Refer to note 5 for details on the transaction related to the Hidden Valley acquisition.



17 Subsequent events

   (a) On 28 July 2017, Harmony entered into an agreement for a new three-year syndicated facility of US$350 million
       (US$175 million term loan plus US$175 million revolving credit facility). The facility was negotiated on similar terms to the
       previous facility. Management has signed and executed the new facility and all the conditions precedent were fulfilled by
       15 August 2017.

   (b) On 15 August 2017, the board declared a final dividend for the 2017 year of 35 SA cents per share, payable on
       16 October 2017.



18 Segment report

   Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
   maker (CODM). The CODM has previously been identified as the executive committee (Exco). During April 2017, the top
   management structure was changed, creating a group CEO's office consisting of the chief executive officer, financial director,
   director corporate affairs and chief operating officer: new business. The group CEO's office has replaced Exco as the CODM.
   There has been no change to the information reported to the CODM.


   The segment report follows below


19 Reconciliation of segment information to condensed consolidated income statements and balance sheets

   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.

                                                                                                                                  Year ended
                                                                                                                              30 June           30 June
                                                                                                                                 2017              2016
   Figures in million                                                                                                       (Reviewed)         (Audited)
   Reconciliation of production profit to gross profit

   Total segment revenue                                                                                                       19 264            18 334
   Total segment production costs                                                                                             (14 812)          (13 250)
   Production profit per segment report                                                                                         4 452             5 084
   Amortisation and depreciation                                                                                               (2 519)           (2 170)
   (Impairment)/Reversal of impairment of assets                                                                               (1 718)               43
   Other cost of sales items                                                                                                     (590)             (409)
   Gross profit/(loss) as per income statements1                                                                                 (375)            2 548
   
   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
                                                                                                                                 2017                 2016
   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                                                                                                                  713                  657
   Undeveloped property                                                                                                         5 139                5 139
   Other non-mining assets                                                                                                        177                  168
   Wafi-Golpu assets                                                                                                            1 790                1 785
                                                                                                                                7 819                7 749


20 Review conclusion

   These condensed consolidated financial statements for the year ended 30 June 2017 have been reviewed by
   PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon. A copy of the auditor's review
   conclusion 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 2017
                                                          Revenue                   Production cost              Production profit                Mining assets               Capital expenditure#     Kilograms produced*    Tonnes milled*
                                                          30 June                      30 June                       30 June                         30 June                        30 June                   30 June             30 June
                                                     2017           2016           2017         2016             2017         2016              2017          2016             2017           2016       2017        2016    2017         2016
                                                         R million                    R million                     R million                       R million                       R million                  kg                  t'000

South Africa
Underground
Tshepong(a)                                         2 760          2 756          2 029          1 844             731            912          4 332          4 161             387            307      4 819      5 031     1 027       1 088
Phakisa(a)                                          2 302          2 186          1 642          1 375             660            811          4 134          4 246             330            323      4 009      3 988       668         686
Bambanani                                           1 576          1 617            871            811             705            806            745            807              77            106      2 750      3 013       231         232
Joel                                                1 309          1 220            936            831             373            389            909            728             243            215      2 246      2 278       514         542
Doornkop                                            1 553          1 480          1 241          1 047             312            433          2 979          2 984             243            208      2 673      2 730       641         630
Target 1                                            1 506          1 833          1 345          1 250             161            583          2 021          2 826             324            322      2 669      3 387       745         739
Kusasalethu                                         2 575          2 078          2 080          1 816             495            262          2 846          3 766             289            360      4 394      3 863       607         668
Masimong                                            1 452          1 318          1 113          1 038             339            280            433            485             119            110      2 538      2 432       640         650
Unisel                                                915            925            838            754              77            171            529            543              78             62      1 595      1 704       394         424
Target 3(b)                                           -                -              -              -               -              -            521            526             -              -          -          -           -           -

Surface
All other surface operations                        1 816          1 601          1 404          1 272             412            329            486            448             261             59      3 178      2 972    11 045      10 985
Total South Africa                                 17 764         17 014         13 499         12 038           4 265          4 976         19 935         21 520           2 351          2 072     30 871     31 398    16 512      16 644

International
Hidden Valley                                       1 500          1 320          1 313          1 212             187            108          2 290            650           1 335             79      2 965      2 257     2 889       1 729
Total international                                 1 500          1 320          1 313          1 212             187            108          2 290            650           1 335             79      2 965      2 257     2 889       1 729
Total operations                                   19 264         18 334         14 812         13 250           4 452          5 084         22 225         22 170           3 686          2 151     33 836     33 655    19 401      18 373
Reconciliation of the segment
information to the consolidated income
statement and balance sheet (refer to
note 19)                                                                                                                                       7 819          7 749
                                                                                                    
                                                   19 264         18 334        14 812          13 250           4 452          5 084         30 044         29 919           3 686          2 151     33 836     33 655    19 401      18 373


#   Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R197 million (2016: R240 million).
(a) Tshepong and Phakisa are two separate segments for the 2017 year. As of 1 July 2017, they have been integrated into Tshepong Operations and will be treated as one segment for the 2018 year.
(b) 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 2016 has been audited. The segment report for the year ended 30 June 2017 has been reviewed.



DEVELOPMENT RESULTS
FY 2017

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                 1 202       1 092       9,35      141,71       1 325       Basal           3 944    3 583      4,00       3,80        15
B Reef                  533         482     131,83        5,01         660       B Reef          1 748    1 581     52,00       0,15         8
All Reefs             1 735       1 574      46,86       23,93       1 121       All Reefs       5 693    5 164     18,00       0,72        13
Phakisa                                                                          Phakisa
Basal                 1 293       1 308      51,74       27,57       1 427       Basal           4 241    4 291     20,00       0,82        16
All Reefs             1 293       1 308      51,74       27,57       1 427       All Reefs       4 241    4 291     20,00       0,82        16
Bambabani                                                                        Bambabani
Basal                   130          92     153,04       16,26       2 489       Basal             427      302     60,00       0,48        29
All Reefs               130          92     153,04       16,26       2 489       All Reefs         427      302     60,00       0,48        29
Doornkop                                                                         Doornkop
Main Reef                  -        189      91,41        4,58         419       Main Reef           -      620     36,00       0,13         5
South Reef            1 337       1 083      58,13       21,35       1 241       South Reef      4 387    3 553     23,00       0,62        14
All Reefs             1 337       1 272      63,08       17,74       1 119       All Reefs       4 387    4 173     25,00       0,51        13
Kusasalethu                                                                      Kusasalethu
VCR Reef              1 127       1 138      92,96       15,41       1 433       VCR Reef        3 698    3 734     37,00       0,44        16
All Reefs             1 127       1 138      92,96       15,41       1 433       All Reefs       3 698    3 734     37,00       0,44        16
Target 1                                                                         Target 1
Elsburg                 104         116     292,48        5,59       1 636       Elsburg           342      381    115,00       0,16        19
All Reefs               104         116     292,48        5,59       1 636       All Reefs         342      381    115,00       0,16        19
Masimong 5                                                                       Masimong 5
Basal                 1 106         952      81,79       12,75       1 043       Basal           3 630    3 123     32,00       0,37        12
B Reef                  927         993      90,79       19,68       1 787       B Reef          3 042    3 258     36,00       0,57        21
All Reefs             2 034       1 945      86,38       16,47       1 423       All Reefs       6 672    6 381     34,00       0,48        16
Unisel                                                                           Unisel
Basal                 1 042         658     138,48        8,17       1 131       Basal           3 418    2 159     55,00       0,24        13
Leader                1 042         946     206.10        5.42       1 116       Leader          3 418    3 104     81.00       0.16        13
Middle                  118          74     169,68       14,39       2 441       Middle            387      243     67,00       0,42        28
All Reefs             2 202       1 678     177,98        6,63       1 180       All Reefs       7 223    5 505     70,00       0,19        14
Joel                                                                             Joel
Beatrix               1 423        1428     145,67        7,72       1 125       Beatrix         4 668    4 685     57,00       0,23        13
All Reefs             1 423       1 428     145,67        7,72       1 125       All Reefs       4 668    4 685     57,00       0,23        13
Total Harmony                                                                    Total Harmony
Basal                 4 773       4 102      63,61       20,23       1 287       Basal          15 660   13 458     25,00       0,59        15
Beatrix               1 423       1 428     145,67        7,72       1 125       Beatrix         4 668    4 685     57,00       0,23        13
Leader                1 042         946     206,10        5,42       1 116       Leader          3 418    3 104     81,00       0,16        13
B Reef                1 460       1 475     104,20       13,62       1 419       B Reef          4 791    4 839     41,00       0,40        16
Middle                  118          74     169,68       14,39       2 441       Middle            387      243     67,00       0,42        28
Elsburg                 104         116     292,48        5,59       1 636       Elsburg           342      381    115,00       0,16        19
South Reef            1 337       1 083      58,13       21,35       1 241       South Reef      4 387    3 553     23,00       0,62        14
VCR                   1 127       1 138      92,96       15,41       1 433       VCR             3 698    3 734     37,00       0,44        16
Main Reef                 -         189      91,41        4,58         419       Main Reef           -      620     36,00       0,13         5
All Reefs            11 384      10 551      99,53       12,82       1 276       All Reefs      37 349   34 616     39,00       0,38        15

17 August 2017
Date: 17/08/2017 07:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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