UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 UNDER THE SECURITIES
EXCHANGE ACT OF 1934
For
15 August 2011
Harmony Gold Mining Company
Limited
Randfontein Office Park
Corner Main Reef Road and Ward Avenue
Randfontein, 1759
South Africa
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-
F or Form 40-F.)
Form 20-F X
Form 40-F
(Indicate by check mark whether the registrant by
furnishing the information contained in this form
is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
Yes
No X
Financial summary for the fourth quarter and year ended 30 June 2011
Quarter
Quarter
Q on Q Year ended Year ended
Y on Y
June
March
Variance
June
June
variance
2011
2011
%
2011
2010
%
Gold produced (¹)
– kg
10 152
9 857
3
40 535
44 433
(9)
– oz
326 394
316 909
3
1 303 228
1 428 545
(9)
Cash costs
– R/kg
242 851
217 802
(12)
226 667
195 162
(16)
– US$/oz
1 115
970
(15)
1 009
801
(26)
Gold sold
– kg
10 412
9 716
7
41 043
43 969
(7)
– oz
334 752
312 378
7
1 319 563
1 413 633
(7)
Gold price
– R/kg
329 536
312 029
6
307 875
266 009
16
received
– US$/oz
1 513
1 389
9
1 370
1 092
25
Operating
– R million
901
855
5
3 275
2 926
12
profit
–
US$
million
133
122
9
468
386
21
Basic
– SAc/s
(10)
55
<(100)
139
(38)
>100
(loss)/earnings
– USc/s
(1)
8
<(100)
20
(5)
>100
per share*
Headline profit*
– Rm
130
390
(67)
957
4
>100
–
US$m
19
56
(66)
137
1
>100
Headline earnings – SAc/s
30
91
(67)
223
1
>100
per share*
– USc/s
4
13
(69)
32
–
100
Exchange rate
– R/US$
6.78
6.99
(3)
6.99
7.58
(8)
* Reported amounts include continuing operations only
(1) Production statistics for Steyn 2 and Target 3 have been included. Steyn 2 is currently in a build-up phase and Target 3 was in build-up phase
up to the end of March 2011. Revenue and costs are capitalised for the period that these mines are in build-up phase. Revenue capitalised
includes: Quarter ending June 2011 Steyn 2, 27 kg (Mar 2011 – 14 kg) and Target 3, 0 kg (Mar 2011 – 250 kg), year ended June 2011 Steyn 2, 90 kg
(June 2010 – 33 kg) and Target 3, 531 kg (June 2010 – 117 kg).
includes: Quarter ending June 2011 Steyn 2, 27 kg (Mar 2011 – 14 kg) and Target 3, 0 kg (Mar 2011 – 250 kg), year ended June 2011 Steyn 2, 90 kg
(June 2010 – 33 kg) and Target 3, 531 kg (June 2010 – 117 kg).
Harmony’s Annual Report, Notice of Annual General Meeting, its Sustainable Development Report and
its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for
the year ended 30 June 2010 are available on our website (www.harmony.co.za).
its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for
the year ended 30 June 2010 are available on our website (www.harmony.co.za).
SHAREHOLDER INFORMATION
Issued ordinary shares
at 30 June 2011
at 30 June 2011
430 084 628
Issued ordinary shares
at 31 March 2011
at 31 March 2011
429 807 371
Issued ordinary shares
at 30 June 2010
at 30 June 2010
428 654 779
Market capitalisation
At 30 June 2011 (ZARm)
38 686
At 30 June 2011 (US$m)
5 724
At 31 March 2011 (ZARm)
42 676
At 31 March 2011 (US$m)
6 304
At 30 June 2010 (ZARm)
34 888
At 30 June 2010 (US$m)
4 530
Harmony ordinary share
and ADR prices
and ADR prices
12 month high (1 July 2010 to
R103.25
30 June 2011) for ordinary shares
12 month low (1 July 2010 to
R71.90
30 June 2011) for ordinary shares
12 month high (1 July 2010 to
US$15.57
30 June 2011) for ADRs
12 month low (1 July 2010 to
US$9.72
30 June 2011) for ADRs
Free float
Ordinary shares
100%
ADR ratio
1:1
JSE Limited
HAR
Range for quarter (1 April to
R83.29 –
30 June 2011 closing prices)
R103.25
Average daily volume for the
1 546 143
quarter (1 April to 30 June 2011)
shares
Range for quarter (1 April to
R68.65 –
30 June 2010 closing prices)
R81.40
Average daily volume for the
1 918 132
quarter (1 April to 30 June 2010)
shares
New York Stock Exchange, Inc
including other US trading
including other US trading
HMY
Range for quarter (1 April to
US$12.34 –
30 June 2011 closing prices)
US$15.57
Average daily volume for the
2 771 880
quarter (1 April to 30 June 2011)
shares
Range for quarter (1 April to
US$9.04 –
30 June 2010 closing prices)
US$10.57
Average daily volume for the
1 072 003
quarter (1 April to 30 June 2010)
shares
Key features
Of the quarter…
Gold production 3% higher at 10 152 kg (326 394 ounces)
Grade remained steady
R/kg cost higher at R242 851/kg ($1 115/oz) due to increased electricity
Grade remained steady
R/kg cost higher at R242 851/kg ($1 115/oz) due to increased electricity
and stores costs, as well as inclusion of Target 3
Cash operating pro t 5% higher at R901m (US$133m)
Of the year…
Improved safety rates
Operations in build-up showed 22% improvement in production
Improved underground grade at 4.60g/t
Net pro t of R617m/US$87m (loss of R192m/US$24m in FY10)
Basic earnings per share at R1.44 (21 USc) (loss of 46c (6 USc) in FY10)
Headline earnings of R957m/US$137m (R4m in FY10)
Wa -Golpu resource at more than 1 billion tonnes
Created nancial exibility: US$300m debt facility
Operations in build-up showed 22% improvement in production
Improved underground grade at 4.60g/t
Net pro t of R617m/US$87m (loss of R192m/US$24m in FY10)
Basic earnings per share at R1.44 (21 USc) (loss of 46c (6 USc) in FY10)
Headline earnings of R957m/US$137m (R4m in FY10)
Wa -Golpu resource at more than 1 billion tonnes
Created nancial exibility: US$300m debt facility
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
(“Harmony” or “Company”)
Registration number 1950/038232/06
(“Harmony” or “Company”)
Results for the quarter and the year ended 30 June 2011
JSE Share code: HAR | NYSE Share code: HMY | ISIN: ZAE 000015228
2
Results for the quarter and the year
ended 30 June 2011
Forward-looking statements
This quarterly report contains forward-looking
statements within the meaning of the United
States Private Securities Litigation Reform Act
of 1995 with respect to Harmony’s financial
condition, results of operations, business
strategies, operating efficiencies, competitive
positions, growth opportunities for existing
services, plans and objectives of management,
markets for stock and other matters. Statements
in this quarter that are not historical facts are
“forward-looking statements” for the purpose of
the safe harbour provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended,
and Section 27A of the U.S. Securities Act of
1933, as amended. Forward-looking statements
are statements that are not historical facts.
These statements include financial projections
and estimates and their underlying assumptions,
statements regarding plans, objectives and
expectations with respect to future operations,
products and services, and statements regarding
future performance. Forward-looking statements
are generally identified by the words “expect”,
“anticipates”, “believes”, “intends”, “estimates”
and similar expressions. These statements are
only predictions. All forward-looking statements
involve a number of risks, uncertainties and
other factors and we cannot assure you that
such statements will prove to be correct. Risks,
uncertainties and other factors could cause actual
events or results to differ from those expressed or
implied by the forward-looking statements.
statements within the meaning of the United
States Private Securities Litigation Reform Act
of 1995 with respect to Harmony’s financial
condition, results of operations, business
strategies, operating efficiencies, competitive
positions, growth opportunities for existing
services, plans and objectives of management,
markets for stock and other matters. Statements
in this quarter that are not historical facts are
“forward-looking statements” for the purpose of
the safe harbour provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended,
and Section 27A of the U.S. Securities Act of
1933, as amended. Forward-looking statements
are statements that are not historical facts.
These statements include financial projections
and estimates and their underlying assumptions,
statements regarding plans, objectives and
expectations with respect to future operations,
products and services, and statements regarding
future performance. Forward-looking statements
are generally identified by the words “expect”,
“anticipates”, “believes”, “intends”, “estimates”
and similar expressions. These statements are
only predictions. All forward-looking statements
involve a number of risks, uncertainties and
other factors and we cannot assure you that
such statements will prove to be correct. Risks,
uncertainties and other factors could cause actual
events or results to differ from those expressed or
implied by the forward-looking statements.
These forward-looking statements, including,
among others, those relating to the future
business prospects, revenues and income of
Harmony, wherever they may occur in this
quarterly report and the exhibits to this quarterly
report, are necessarily estimates reflecting the
best judgment of the senior management of
Harmony and involve a number of risks and
uncertainties that could cause actual results to
differ materially from those suggested by the
forward-looking statements. As a consequence,
these forward-looking statements should be
considered in light of various important factors,
including those set forth in this quarterly report.
Important factors that could cause actual results
to differ materially from estimates or projections
contained in the forward-looking statements
include, without limitation:
among others, those relating to the future
business prospects, revenues and income of
Harmony, wherever they may occur in this
quarterly report and the exhibits to this quarterly
report, are necessarily estimates reflecting the
best judgment of the senior management of
Harmony and involve a number of risks and
uncertainties that could cause actual results to
differ materially from those suggested by the
forward-looking statements. As a consequence,
these forward-looking statements should be
considered in light of various important factors,
including those set forth in this quarterly report.
Important factors that could cause actual results
to differ materially from estimates or projections
contained in the forward-looking statements
include, without limitation:
overall economic and business conditions in
the countries in which we operate;
the countries in which we operate;
the ability to achieve anticipated efficiencies
and other cost savings in connection with past
and future acquisitions;
and other cost savings in connection with past
and future acquisitions;
increases or decreases in the market price
of gold;
of gold;
the occurrence of hazards associated with
underground and surface gold mining;
underground and surface gold mining;
the occurrence of labour disruptions;
availability, terms and deployment of capital;
changes in government regulation, particularly
mining rights and environmental regulations;
mining rights and environmental regulations;
fluctuations in exchange rates;
currency devaluations and other macro-
economic monetary policies; and
economic monetary policies; and
socio-economic instability in the countries in
which we operate.
which we operate.
Contents
Page
Chief Executive’s Review
3
Safety and health
5
Financial overview
5
Dividend notice
6
Operational overview
6
– Group operational results
6
– Build-up and steady operations
7
– Doornkop
7
– Kusasalethu
7
– Phakisa
7
– Masimong
7
– Target 1
7
– Target 3
7
– Tshepong
8
– Hidden Valley
8
– Other South African operations
8
– Bambanani
8
– Steyn 2
8
– Evander
8
– Joel
9
– Unisel
9
– Total South African surface operations
9
– Kalgold
9
– Phoenix tailings
9
– Surface dumps
9
Development
10
Exploration
11
Operating results (Rand/Metric) (US$/Imperial)
16
Condensed consolidated income statements (Rand)
18
Condensed consolidated statements of other comprehensive income (Rand)
19
Condensed consolidated balance sheets (Rand)
20
Condensed consolidated statements of changes in equity (Rand)
21
Condensed consolidated cash flow statements (Rand)
22
Notes to the condensed consolidated financial statements
for the fourth quarter and year ended 30 June 2011
for the fourth quarter and year ended 30 June 2011
23
Segment report (Rand/Metric)
28
Operating results (US$/Imperial)
30
Condensed consolidated income statements (US$)
32
Condensed consolidated statements of other comprehensive income (US$)
33
Condensed consolidated balance sheets (US$)
34
Condensed consolidated statements of changes in equity (US$)
35
Condensed consolidated cash flow statements (US$)
36
Segment report (US$/Imperial)
37
Development results – metric and imperial
39
Contact details
40
3
Chief Executive’s Review
With another financial year that has drawn to a close, it is important
to take stock of what we have achieved and to assess the progress
made against our ambition to create a company capable of generating
earnings that fund growth and dividends on a sustainable basis.
to take stock of what we have achieved and to assess the progress
made against our ambition to create a company capable of generating
earnings that fund growth and dividends on a sustainable basis.
During financial year 2011, we:
•
commissioned excellent gold mines in South Africa and Papua
New Guinea (PNG);
•
expanded the world class Wafi-Golpu resource to 9 million
tonnes (Mt) of copper and 26.6 million ounces (Moz) of gold (100%);
•
increased production from growth projects by 22% year on year;
•
tailored each mine’s business plans to its unique requirements;
•
pro-actively addressed industry challenges;
•
improved production and productivity at most of our mines, and
continue to work at replicating that level of success across the
board;
board;
•
increased Harmony’s exploration exposure in PNG – a country with
world class exploration potential – to 8000 km²;
•
improved the quality of our asset portfolio through the disposal
and closure of non-core assets;
•
celebrated Harmony’s 60th year in operation on 25 August 2010.
We made good progress in getting the company where we want it
to be – producing better quality ounces. Hidden Valley in PNG is now
an operating mine, Harmony’s first greenfields offshore development,
which was formally opened in September 2010; in South Africa we
have Kusasalethu, Doornkop and Phakisa projects, all of which are
in build-up, and Tshepong and Masimong which have been steady
contributors to production. We dealt with the challenges at mines
such as Evander, Target and Joel to ensure these mines are positioned
to deliver on their production targets.
to be – producing better quality ounces. Hidden Valley in PNG is now
an operating mine, Harmony’s first greenfields offshore development,
which was formally opened in September 2010; in South Africa we
have Kusasalethu, Doornkop and Phakisa projects, all of which are
in build-up, and Tshepong and Masimong which have been steady
contributors to production. We dealt with the challenges at mines
such as Evander, Target and Joel to ensure these mines are positioned
to deliver on their production targets.
Harmony has invested a great deal in the expansion of its production
base in South Africa and PNG. The investment in exploration continues
to pay dividends, with the Wafi-Golpu resource showing a phenomenal
57% increase to over 1 billion tonnes during the year. Golpu’s grade is
over 1% copper, confirming it is one of the highest grade copper gold
porphyry systems in South East Asia. These excellent results validate
our long-held belief that PNG is a game-changing region for Harmony.
base in South Africa and PNG. The investment in exploration continues
to pay dividends, with the Wafi-Golpu resource showing a phenomenal
57% increase to over 1 billion tonnes during the year. Golpu’s grade is
over 1% copper, confirming it is one of the highest grade copper gold
porphyry systems in South East Asia. These excellent results validate
our long-held belief that PNG is a game-changing region for Harmony.
On a 100% basis, Golpu alone now hosts a resource of 869Mt,
containing 19.3Moz of gold and 9.0Mt of copper (62Moz on a gold
equivalent
containing 19.3Moz of gold and 9.0Mt of copper (62Moz on a gold
equivalent
1
basis). This represents a significant year-on-year increase,
with an additional 368Mt (73% increase), comprising 8 956kt copper
(88% increase) and 10.5Moz ounces of gold (119% increase). Our
resource base in PNG now represent 10% of Harmony’s total gold
resources (or 21% of the resource on a gold equivalent basis), which
is in line with the Company’s strategy to increase its geographic
diversification.
(88% increase) and 10.5Moz ounces of gold (119% increase). Our
resource base in PNG now represent 10% of Harmony’s total gold
resources (or 21% of the resource on a gold equivalent basis), which
is in line with the Company’s strategy to increase its geographic
diversification.
Annual production was lower than planned at 1.3Moz, largely due to
safety stoppages and under-performance at some of the shafts. We
continue to improve the business planning process, using benchmarks
and targets we believe to be realistic. Our ‘life of mine’ plans support
our commitment to improving the grades from our underground
operations, lowering our cost base and benchmarking our costing
parameters internally across our operations as well as externally
safety stoppages and under-performance at some of the shafts. We
continue to improve the business planning process, using benchmarks
and targets we believe to be realistic. Our ‘life of mine’ plans support
our commitment to improving the grades from our underground
operations, lowering our cost base and benchmarking our costing
parameters internally across our operations as well as externally
against other gold producers. Our focus remains on producing safe,
profitable ounces and our operations in build-up will add to our
production in future.
profitable ounces and our operations in build-up will add to our
production in future.
Safety
Tragically, three employees (South Africa) and one contractor (PNG) lost
their lives during the final quarter of the financial year. The deceased
were Mbuzeni Sihoyiya, a locomotive guard at Kusasalethu, Michael
Sello Matea, underground assistant at Joel, Mbuyiseli Malungisa, a
locomotive guard at Masimong and Kerry Kowitz, a contractor working
on the Wafi-Golpu access road. I would like to extend my deepest
condolences to their families, friends and colleagues.
their lives during the final quarter of the financial year. The deceased
were Mbuzeni Sihoyiya, a locomotive guard at Kusasalethu, Michael
Sello Matea, underground assistant at Joel, Mbuyiseli Malungisa, a
locomotive guard at Masimong and Kerry Kowitz, a contractor working
on the Wafi-Golpu access road. I would like to extend my deepest
condolences to their families, friends and colleagues.
Safety is a top priority at Harmony. We have put in place a number
of safety initiatives, which have resulted in excellent safety
achievements. Fatalities do, however, continue to occur. As a result,
we appointed Alwyn Pretorius (previously the chief operating officer:
North region), who is very familiar with Harmony’s underground
working environment, to assist in further improving and accelerating
the execution of our safety and health strategy.
of safety initiatives, which have resulted in excellent safety
achievements. Fatalities do, however, continue to occur. As a result,
we appointed Alwyn Pretorius (previously the chief operating officer:
North region), who is very familiar with Harmony’s underground
working environment, to assist in further improving and accelerating
the execution of our safety and health strategy.
Gold price
Increasing global economic uncertainty is making gold an even
stronger investment option than it already was. At over $1 700/oz,
gold remains a currency and we believe the gold price will continue
its strength. Investors in Harmony have complete exposure to the spot
gold price, as the company does not hedge its gold. During the past
quarter the gold price received strengthened from R312 029/kg to
R329 536/kg.
stronger investment option than it already was. At over $1 700/oz,
gold remains a currency and we believe the gold price will continue
its strength. Investors in Harmony have complete exposure to the spot
gold price, as the company does not hedge its gold. During the past
quarter the gold price received strengthened from R312 029/kg to
R329 536/kg.
Operational results
Quarter on quarter
Gold production for the June 2011 quarter is 3% higher than the
previous quarter, despite days lost to public holidays. The past quarter
saw excellent improvements in development metres, mainly at the
build-up operations. Build-up at Phakisa, Doornkop, Kusasalethu and
Hidden Valley progressed well.
previous quarter, despite days lost to public holidays. The past quarter
saw excellent improvements in development metres, mainly at the
build-up operations. Build-up at Phakisa, Doornkop, Kusasalethu and
Hidden Valley progressed well.
Grade remained steady at 2.08g/t.
Year on year
Tonnes milled for the year under review increased by 7% or
1 317 000 tonnes when compared to the previous financial year. The
main contributors were:
1 317 000 tonnes when compared to the previous financial year. The
main contributors were:
•
Doornkop: The build-up resulted in an additional 178 000 tonnes
(33%) being milled for the year under review;
•
Target 3: The inclusion of its first commercial production during the
June 2011 quarter (75 000 tonnes);
•
Free State surface operations: Tonnes increased by 1.2 million
tonnes, mainly waste rock dumps;
•
Hidden Valley: Recorded a full year of production and tonnes milled
increased by 1.4 million tonnes to 1.7 million tonnes, achieving its
production guidance for the year.
production guidance for the year.
The operations in build-up showed an increase in gold production.
Hidden Valley produced 3 118kg, an additional 1 215kg (64%) in
comparison to the 1 903kg it produced in the previous financial
year. Doornkop’s production increased by 562kg (29%), Phakisa’s by
391kg (29%) and Kusasalethu’s by 165kg (3%). Gold production for the
Hidden Valley produced 3 118kg, an additional 1 215kg (64%) in
comparison to the 1 903kg it produced in the previous financial
year. Doornkop’s production increased by 562kg (29%), Phakisa’s by
391kg (29%) and Kusasalethu’s by 165kg (3%). Gold production for the
4
Results for the quarter and the year
ended 30 June 2011
year under review decreased by 9% (3 898kg), mainly as a result of
the shafts that were closed in the 2011 financial year. Closed shafts
accounted for a decrease in gold produced of 4 092kg year on year.
Underground grade increased year-on-year to 4.60g/t.
the shafts that were closed in the 2011 financial year. Closed shafts
accounted for a decrease in gold produced of 4 092kg year on year.
Underground grade increased year-on-year to 4.60g/t.
Financial overview
Quarter on quarter
Quarter on quarter, cash operating costs in R/kg terms were 12%
higher, mainly due to higher electricity and stores costs, as well as
the inclusion of Target 3 (which reached commercial production during
the quarter) in our operating results. Higher stores costs are due to
additional maintenance performed during public holidays. Electricity
costs are higher due to a 25% increase in tariffs as from April 2011 and
the inclusion of one month’s winter tariff.
higher, mainly due to higher electricity and stores costs, as well as
the inclusion of Target 3 (which reached commercial production during
the quarter) in our operating results. Higher stores costs are due to
additional maintenance performed during public holidays. Electricity
costs are higher due to a 25% increase in tariffs as from April 2011 and
the inclusion of one month’s winter tariff.
Operating profit at R901 million was 5% higher, mainly due to the
increase in the average Rand gold price received to R329 536/kg.
increase in the average Rand gold price received to R329 536/kg.
Year on year
Cash operating costs in Rand terms increased by R686 million or 8%,
mainly due to restructuring costs, the inclusion of Target 3, higher
electricity costs and higher labour costs. This resulted in the cash
operating cost in R/kg terms increasing by 16% from R195 162/kg in
FY10 to R226 667/kg in FY11. Rand per tonne unit costs remained
stable at R469/tonnes.
mainly due to restructuring costs, the inclusion of Target 3, higher
electricity costs and higher labour costs. This resulted in the cash
operating cost in R/kg terms increasing by 16% from R195 162/kg in
FY10 to R226 667/kg in FY11. Rand per tonne unit costs remained
stable at R469/tonnes.
Capital expenditure for FY11 decreased by R317 million (10%)
compared to the previous financial year. This is mainly attributed to
a reduction in capital spent on Hidden Valley of 47% or R252 million.
Capital from the South African operations decreased by R65 million
(2%), due to reduced expenditure at Phakisa (R117 million), Doornkop
(R50 million) and Kusasalethu (R50 million).
compared to the previous financial year. This is mainly attributed to
a reduction in capital spent on Hidden Valley of 47% or R252 million.
Capital from the South African operations decreased by R65 million
(2%), due to reduced expenditure at Phakisa (R117 million), Doornkop
(R50 million) and Kusasalethu (R50 million).
Reserves and resources
As at 30 June 2011, Harmony’s mineral reserves amounted to 41.6Moz
of gold, spread across Harmony’s assets in South Africa and PNG. The
reserves of Kusasalethu, Doornkop, Tshepong and Phakisa in South
Africa and Hidden Valley in PNG now constitute 45% of Harmony’s
total mineral reserves. Once the pre-feasibility study of Wafi-Golpu has
been completed, more ounces from PNG will be added to Harmony’s
reserves.
of gold, spread across Harmony’s assets in South Africa and PNG. The
reserves of Kusasalethu, Doornkop, Tshepong and Phakisa in South
Africa and Hidden Valley in PNG now constitute 45% of Harmony’s
total mineral reserves. Once the pre-feasibility study of Wafi-Golpu has
been completed, more ounces from PNG will be added to Harmony’s
reserves.
The reserve declaration excludes Rand Uranium reserves (the asset
which is being held for sale), as well as some Evander projects which
are no longer included in Harmony’s long term mining plans. These
exclusions, together with mine depletion, resulted in a decrease
of 6.5Moz year on year, allowing Harmony to refocus on growing,
developing and operating its portfolio of quality assets.
which is being held for sale), as well as some Evander projects which
are no longer included in Harmony’s long term mining plans. These
exclusions, together with mine depletion, resulted in a decrease
of 6.5Moz year on year, allowing Harmony to refocus on growing,
developing and operating its portfolio of quality assets.
As at 30 June 2011 Harmony’s attributable gold mineral resources
were 163.9Moz. Gold resources in PNG increased 51% year on year
to 16.3Moz and now comprise 10% of the group’s total resource base.
were 163.9Moz. Gold resources in PNG increased 51% year on year
to 16.3Moz and now comprise 10% of the group’s total resource base.
Harmony’s PNG resource inventory also includes economically
significant copper, molybdenum and silver that co-occur with gold.
Attributable copper resources grew by 2.1Mt to 4.5Mt, up 86%
year on year (and equates to 9.75Moz on a gold equivalent basis
significant copper, molybdenum and silver that co-occur with gold.
Attributable copper resources grew by 2.1Mt to 4.5Mt, up 86%
year on year (and equates to 9.75Moz on a gold equivalent basis
1
).
Molybdenum increased to 84 000 tonnes (up 50%) and silver increased
to 55.16Moz (up 7.8%).
to 55.16Moz (up 7.8%).
These increases were driven by resource expansions at Hidden Valley
and Wafi-Golpu.
and Wafi-Golpu.
Creating financial flexibility
Harmony has strengthened its financial flexibility through obtaining
a 4 year US$300 million revolving credit facility with Nedbank Limited
and FirstRand Bank Limited. The loan agreement was signed on
11 August 2011. This facility is specifically ear-marked for Harmony’s
activities in PNG.
a 4 year US$300 million revolving credit facility with Nedbank Limited
and FirstRand Bank Limited. The loan agreement was signed on
11 August 2011. This facility is specifically ear-marked for Harmony’s
activities in PNG.
Dividend
We are pleased to declare a dividend of 60 SA cents per ordinary share
for the year ended 30 June 2011.
for the year ended 30 June 2011.
Looking ahead
Post year-end, following a five day strike, Harmony signed a two year
wage agreement with the National Union of Mineworkers (NUM),
Solidarity and UASA (collectively referred to as the “Unions”) on the 2nd
of August 2011. The increase in wages will be off-set by improvements
in productivity aimed at the more effective utilization of our mining
assets. Approximately 500kg of production was lost due to the strike.
wage agreement with the National Union of Mineworkers (NUM),
Solidarity and UASA (collectively referred to as the “Unions”) on the 2nd
of August 2011. The increase in wages will be off-set by improvements
in productivity aimed at the more effective utilization of our mining
assets. Approximately 500kg of production was lost due to the strike.
The wage agreement between Harmony and the Unions also includes
a profit share scheme in which all employees in the bargaining unit
will share on a quarterly basis. The profit share will be based on 1% of
operating profits less capital expenditure from the company’s South
African assets.
a profit share scheme in which all employees in the bargaining unit
will share on a quarterly basis. The profit share will be based on 1% of
operating profits less capital expenditure from the company’s South
African assets.
We look forward to having the Unions as our partners in creating a
sustainable mining industry.
sustainable mining industry.
Financial year 2011 was filled with great achievements. We have
improved our safety rates, secured excellent exploration results,
continue to build up our operations and future production potential
and certain operations have generated free operational cash flow.
improved our safety rates, secured excellent exploration results,
continue to build up our operations and future production potential
and certain operations have generated free operational cash flow.
Financial year 2012 promises to be equally exciting. We remain
focussed on continuing to deliver on our long term targets and to
maximise shareholder value.
focussed on continuing to deliver on our long term targets and to
maximise shareholder value.
Graham Briggs
Chief Executive Officer
Chief Executive Officer
Note 1. Gold equivalent ounces are calculated assuming a US$1150/oz Au, US$2.50/lb Cu and
US$13.50/oz Ag with 100% recovery for all metals
5
Safety and health
Safety
The provision of safe and healthy working places remains a key priority
for Harmony, as does the elimination of all workplace injuries and
work-related ill health effects. This has always been an important area
of focus for Harmony.
for Harmony, as does the elimination of all workplace injuries and
work-related ill health effects. This has always been an important area
of focus for Harmony.
Harmony will continue to implement and maintain safety initiatives
and is in the process of rolling out a new improved fall of ground
strategy to further reduce fall of ground incidents – one of the main
contributors to fatal accidents.
and is in the process of rolling out a new improved fall of ground
strategy to further reduce fall of ground incidents – one of the main
contributors to fatal accidents.
It is with deep regret that we report four fatalities during the June 2011
quarter, bringing total fatalities for the 2011 financial year to 16. This
is an improvement on the previous financial year, which recorded 22
fatalities. However, we need to continue to work towards avoiding
these incidents altogether.
quarter, bringing total fatalities for the 2011 financial year to 16. This
is an improvement on the previous financial year, which recorded 22
fatalities. However, we need to continue to work towards avoiding
these incidents altogether.
Harmony’s Lost Time Injury Frequency Rate (LTIFR) in South Africa
remains a single digit, for the eleventh consecutive quarter. Quarter
on quarter the LTIFR rate regressed from 8.65 to 9.64, whilst LTIFR also
regressed with 8% to 8.32 when compared to the previous year.
remains a single digit, for the eleventh consecutive quarter. Quarter
on quarter the LTIFR rate regressed from 8.65 to 9.64, whilst LTIFR also
regressed with 8% to 8.32 when compared to the previous year.
The Reportable Injury Frequency Rate (RIFR) (per million hours worked)
in South Africa regressed by 13% when compared to the previous year
(from 4.19 to 4.73) and by 17% quarter-on-quarter (from 4.62 to 5.39).
in South Africa regressed by 13% when compared to the previous year
(from 4.19 to 4.73) and by 17% quarter-on-quarter (from 4.62 to 5.39).
The Fatal Injury Frequency Rate (FIFR) improved by 19% when
compared to the previous year, but regressed by 44% quarter-on-
quarter (from 0.09 to 0.13)
compared to the previous year, but regressed by 44% quarter-on-
quarter (from 0.09 to 0.13)
Safety achievements for the quarter included:
South African underground operations:
1 000 000 fatality free shifts
Doornkop shaft operations:
1 000 000 fatality free shifts
Doornkop total operations:
1 000 000 fatality free shifts
Phakisa:
500 000 fatality free shifts
Target:
500 000 fatality free shifts
Ongoing behavioural-based safety, competency training and develop-
ment and research, together with the vigilant co-operation of our
stakeholders, will continue to enable Harmony to become an even
safer company to work for.
ment and research, together with the vigilant co-operation of our
stakeholders, will continue to enable Harmony to become an even
safer company to work for.
Health
Our pro-active approach to the health and wellness of our employees
continues. Various programmes and initiatives are supported and
sponsored by the company to ensure the wellbeing of our employees.
Our objective remains to improve health management programs
and effectively utilise clinical information. This includes the review
of policies, procedures, and processes, as well as training, on an
ongoing basis.
continues. Various programmes and initiatives are supported and
sponsored by the company to ensure the wellbeing of our employees.
Our objective remains to improve health management programs
and effectively utilise clinical information. This includes the review
of policies, procedures, and processes, as well as training, on an
ongoing basis.
See our Sustainable Development Report for more details on our
website www.harmony.co.za.
website www.harmony.co.za.
Financial overview
Quarter on quarter
Cash operating profits increased by 5% quarter on quarter to
R901 million, mainly due to an increase in revenue driven by the 6%
increase in the R/kg gold price received. The increase in revenue was
offset by an 18% increase in production cost.
R901 million, mainly due to an increase in revenue driven by the 6%
increase in the R/kg gold price received. The increase in revenue was
offset by an 18% increase in production cost.
Earnings per share
Basic earnings per share decreased from 55 SA cents to a loss of
10 SA cents per share. Headline earnings per share decreased from
91 SA cents to 30 SA cents. Headline earnings have been adjusted for
the impairment of assets as well as the reversal of the impairment of
investment in associate.
10 SA cents per share. Headline earnings per share decreased from
91 SA cents to 30 SA cents. Headline earnings have been adjusted for
the impairment of assets as well as the reversal of the impairment of
investment in associate.
Revenue
Revenue increased from R2 949 million to R3 422 million, or 16%, mainly
due to the 6% increase in the rand gold price received to R329 536/kg.
The increase of gold sold by 7% or 696kg, together with the inclusion
of the results of Target 3, also contributed to the higher revenue total
for the June 2011 quarter.
due to the 6% increase in the rand gold price received to R329 536/kg.
The increase of gold sold by 7% or 696kg, together with the inclusion
of the results of Target 3, also contributed to the higher revenue total
for the June 2011 quarter.
Cost of sales
Cost of sales increased from R2 623 million to R3 491 million in the
June 2011 quarter. The main reasons for this increase are:
June 2011 quarter. The main reasons for this increase are:
•
higher production costs, driven by higher electricity costs which
include the annual increase by Eskom as well as one month’s
winter tariff (R115 million increase); increased labour costs of
winter tariff (R115 million increase); increased labour costs of
R67 million as a result of an increase in employees due to the
build-up at certain shafts; an increase in stores cost due to
higher production. Also contributing to the increase is the inclusion
of costs related to Target 3, amounting to R93 million for the
June 2011 quarter.
higher production. Also contributing to the increase is the inclusion
of costs related to Target 3, amounting to R93 million for the
June 2011 quarter.
•
an increase in amortisation and depreciation from R431 million
in the March 2011 quarter to R477 million. This increase relates
primarily to an increase in tonnes mined at several shafts as well
as depreciation commencing at Target 3 as it was brought into
commercial production;
primarily to an increase in tonnes mined at several shafts as well
as depreciation commencing at Target 3 as it was brought into
commercial production;
•
impairment of assets amounting to R264 million. The impairments
relate to President Steyn 1 and 2 shafts (R99 million and R103 million
respectively) and St Helena (R61 million of which R9 million relates
to goodwill);
respectively) and St Helena (R61 million of which R9 million relates
to goodwill);
•
the annual adjustment on the rehabilitation provision amounting to
R61 million;
•
annual assessments of gold inventory balances resulting in write
downs for Steyn Plant (R41 million) and Target stockpile (R30 million)
and an adjustment on the gold in lock-up (R21 million).
and an adjustment on the gold in lock-up (R21 million).
Exploration expenditure
During the June 2011 quarter, R102 million was spent on exploration.
Of the amount spent during the quarter, R90 million relates to the
PNG projects. The expenditure for the March 2011 quarter was
R77 million, R68 million of which related to PNG. The increase quarter
on quarter relates primarily to the pre-feasibility study being conducted
at Wafi-Golpu.
Of the amount spent during the quarter, R90 million relates to the
PNG projects. The expenditure for the March 2011 quarter was
R77 million, R68 million of which related to PNG. The increase quarter
on quarter relates primarily to the pre-feasibility study being conducted
at Wafi-Golpu.
Reversal of impairment/(impairment) of investment
in associate
in associate
This movement relates to the limiting of costs relating to the Rand
Uranium transaction as well as some foreign exchange movements.
Uranium transaction as well as some foreign exchange movements.
6
Results for the quarter and the year
ended 30 June 2011
Operational overview
GROUP OPERATIONAL RESULTS
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
4 861
4 646
5
Grade
g/t
2.08
2.06
1
Gold produced
Kg
10 152
9 857
3
Cash operating costs
R/kg
242 851
217 802
(12)
Operating profit
R’000
900 734
855 078
5
Gold production for the June 2011 quarter is 3% higher than the
previous quarter, despite days lost to public holidays. Cash operating
previous quarter, despite days lost to public holidays. Cash operating
costs in R/kg terms were 12% higher, mainly due to higher electricity
and stores costs, as well as the inclusion of Target 3 in our operating
results (Target 3 was brought into commercial production during the
past quarter).
and stores costs, as well as the inclusion of Target 3 in our operating
results (Target 3 was brought into commercial production during the
past quarter).
Higher stores costs are due to additional supplies used to support the
increased production, as well as additional maintenance performed
during public holidays. Electricity costs were higher due to a 25%
increase in tariffs as from April 2011 and the inclusion of one month’s
winter tariff.
increased production, as well as additional maintenance performed
during public holidays. Electricity costs were higher due to a 25%
increase in tariffs as from April 2011 and the inclusion of one month’s
winter tariff.
Grade remained steady at 2.08g/t.
Operating profit at R901 million was 5% higher than the previous
quarter, mainly due to the increase in the average Rand gold price
received to R329 536/kg.
quarter, mainly due to the increase in the average Rand gold price
received to R329 536/kg.
Net gain on financial instruments
The movement for the June 2011 quarter comprises of the changes
in fair value of the Nedbank Equity Linked Deposits held by the
environmental trusts.
in fair value of the Nedbank Equity Linked Deposits held by the
environmental trusts.
Investment income
Investment income for the June 2011 quarter was R24 million. This was
a R40 million decrease quarter-on-quarter as the March 2011 quarter
included amounts related to the successful appeal against interest
levied by SARS as well as interest on outstanding diesel refunds, which
were not repeated in the current quarter.
a R40 million decrease quarter-on-quarter as the March 2011 quarter
included amounts related to the successful appeal against interest
levied by SARS as well as interest on outstanding diesel refunds, which
were not repeated in the current quarter.
Finance cost
Finance cost increased by R18 million quarter-on-quarter. This was
mainly due to the draw-down of additional funds from the Nedbank
facility during the previous quarter.
mainly due to the draw-down of additional funds from the Nedbank
facility during the previous quarter.
Taxation
The deferred taxation credit for the June 2011 quarter of R195 million
credit consists mainly of credits relating to the change in the
Life-of-Mine rates, amounting to R119 million, as well as additional
temporary differences.
credit consists mainly of credits relating to the change in the
Life-of-Mine rates, amounting to R119 million, as well as additional
temporary differences.
Capital expenditure
Capital expenditure increased from R667 million to R788 million in the
June 2011 quarter, as expected.
June 2011 quarter, as expected.
Borrowings
The long term portion of borrowings decreased from R1 487 million to
R1 229 million in the June 2011 quarter as a result of the net repayment
of R100 million on the Revolving Credit Facility and the instalment
payments on the term facilities of R153 million.
R1 229 million in the June 2011 quarter as a result of the net repayment
of R100 million on the Revolving Credit Facility and the instalment
payments on the term facilities of R153 million.
Year on year
Cash operating profits increased by 12% to R3 275 million for 2011. This
was mainly due to an increase in revenue driven by the 16% increase
in the rand/kilogram gold price.
was mainly due to an increase in revenue driven by the 16% increase
in the rand/kilogram gold price.
Earnings per share
Basic earnings per share increased from a loss of 46 SA cents to
earnings of 144 SA cents per share. Headline earnings per share also
increased from a loss of 7 SA cents to earnings of 223 SA cents.
earnings of 144 SA cents per share. Headline earnings per share also
increased from a loss of 7 SA cents to earnings of 223 SA cents.
Revenue
Revenue increased from R11 284 million to R12 445 million, or 10%,
mainly due to the 16% increase in the rand gold price received to
R307 875/kg. This increase was offset by the 7% decrease in gold sold.
mainly due to the 16% increase in the rand gold price received to
R307 875/kg. This increase was offset by the 7% decrease in gold sold.
Cost of sales
Cost of sales increased from R10 484 million to R11 615 million for 2011.
This is mainly due to increases in production costs (driven by increased
labour, electricity and stores costs) and amortisation and depreciation.
This is mainly due to increases in production costs (driven by increased
labour, electricity and stores costs) and amortisation and depreciation.
Exploration expenditure
During 2011, R353 million was spent on exploration with R296 million
for PNG. The exploration expense in the income statement for 2010 was
R219 million, with R165 million being spent in PNG.
for PNG. The exploration expense in the income statement for 2010 was
R219 million, with R165 million being spent in PNG.
Net gain on financial instruments
The movement in net gain on financial instruments for 2011 was
R414 million, which includes R273 million recognised on the Witsgold
transaction. The balance of the total relates to the changes in fair value
of the Nedbank Equity Linked Deposits held by the Environmental Trusts.
R414 million, which includes R273 million recognised on the Witsgold
transaction. The balance of the total relates to the changes in fair value
of the Nedbank Equity Linked Deposits held by the Environmental Trusts.
Taxation
The deferred taxation credit for the year amounted to R492 million of
which approximately R363 million relates to the change in the Freegold
unredeemed capital allowance. The 2010 deferred tax charge of
R251 million primarily related to increases in average deferred tax rates,
notably at Evander.
which approximately R363 million relates to the change in the Freegold
unredeemed capital allowance. The 2010 deferred tax charge of
R251 million primarily related to increases in average deferred tax rates,
notably at Evander.
Notice of cash dividend
Dividend No. 82 of 60 cents per ordinary share, being the dividend for the year ended 30 June 2011, has been declared payable on Monday,
19 September 2011 to those shareholders recorded in the books of the company at the close of business on Friday, 16 September 2011. 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, 9 September 2011.
Last date to trade ordinary shares cum dividend
19 September 2011 to those shareholders recorded in the books of the company at the close of business on Friday, 16 September 2011. 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, 9 September 2011.
Last date to trade ordinary shares cum dividend
Friday, 9 September 2011
Ordinary shares trade ex dividend
Monday, 12 September 2011
Currency conversion date in respect of the UK own name shareholders
Monday, 12 September 2011
Record date
Friday, 16 September 2011
Payment date
Monday, 19 September 2011
No dematerialisation or rematerialisation of share certificates may occur between Monday, 12 September 2011 and Friday, 16 September
2011, both dates inclusive, nor may any transfers between registers take place during this period.
2011, both dates inclusive, nor may any transfers between registers take place during this period.
7
BUILD-UP AND STEADY OPERATIONS
SOUTH AFRICA
Doornkop
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
234
173
35
Grade
g/t
3.24
3.30
(2)
Gold produced
Kg
757
571
33
Cash operating costs
R/kg
239 316
229 447
(4)
Operating profit
R’000
68 250
46 314
47
Doornkop delivered an excellent production quarter. Tonnes milled
increased by 35% quarter-on-quarter to 234 000 tonnes and kilograms
increased by 33% to 757kg. The increase in throughput is mainly due to
an increase in development metres and eight additional crews.
increased by 35% quarter-on-quarter to 234 000 tonnes and kilograms
increased by 33% to 757kg. The increase in throughput is mainly due to
an increase in development metres and eight additional crews.
The Doornkop plant performed better this quarter and further
improvement is expected in the next quarter, as an additional mill will
be available.
improvement is expected in the next quarter, as an additional mill will
be available.
Kusasalethu
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
305
297
3
Grade
g/t
5.20
4.93
5
Gold produced
Kg
1 586
1 464
8
Cash operating costs
R/kg
219 880
200 579
(10)
Operating profit
R’000
176 354
146 982
20
Improved mining execution, higher mining grades than planned at
5.20g/t and an increase in tonnes milled to 305 000 tonnes resulted in
production being 8% higher quarter on quarter at 1 586kg.
5.20g/t and an increase in tonnes milled to 305 000 tonnes resulted in
production being 8% higher quarter on quarter at 1 586kg.
During the June 2011 quarter a quality monitoring method, in the
form of a short interval control system, was implemented. The system
involves daily monitoring of results and allows management to address
operational issues as and when they arise.
form of a short interval control system, was implemented. The system
involves daily monitoring of results and allows management to address
operational issues as and when they arise.
Phakisa
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
106
88
20
Grade
g/t
4.45
4.64
(4)
Gold produced
Kg
472
408
16
Cash operating costs
R/kg
284 475
286 765
1
Operating profit
R’000
24 310
9 674
>100
Phakisa recorded a 16 % increase in kilograms produced from
408kg in the March 2011 quarter to 472kg in the June 2011 quarter.
The improvement was largely due to an increase in ore milled to
106 000 tonnes. Grade was 4% lower than the previous quarter
at 4.45g/t.
408kg in the March 2011 quarter to 472kg in the June 2011 quarter.
The improvement was largely due to an increase in ore milled to
106 000 tonnes. Grade was 4% lower than the previous quarter
at 4.45g/t.
Higher production alleviated the impact of higher electricity costs,
resulting in cash operating costs remaining stable quarter on quarter
at R284 475/kg, Higher production and a stronger gold price ensured
a significant increase in operating profit from R10 million in the
March 2011 quarter to R24 million in the June 2011 quarter.
resulting in cash operating costs remaining stable quarter on quarter
at R284 475/kg, Higher production and a stronger gold price ensured
a significant increase in operating profit from R10 million in the
March 2011 quarter to R24 million in the June 2011 quarter.
Masimong
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
190
216
(12)
Grade
g/t
4.35
4.81
(10)
Gold produced
Kg
827
1 039
(20)
Cash operating costs
R/kg
214 694
175 496
(22)
Operating profit
R’000
95 776
140 570
(32)
Masimong’s exceptional record of 1.5 million fatality free shifts came
to an end when a loco accident resulted in the death of an employee.
to an end when a loco accident resulted in the death of an employee.
The fatality resulted in six lost days of production due to safety
stoppages. Panel availability lead to a drop in B reef grade, resulting
in the recovery grade being 10% lower quarter on quarter at 4.35g/t.
Lower grade and a 12% decrease in tonnes milled to 190 000 tonnes,
resulted in lower production at 827kg.
stoppages. Panel availability lead to a drop in B reef grade, resulting
in the recovery grade being 10% lower quarter on quarter at 4.35g/t.
Lower grade and a 12% decrease in tonnes milled to 190 000 tonnes,
resulted in lower production at 827kg.
Cash operating costs were 22% higher quarter on quarter at
214 694/kg, due to a 10% decrease in grade and general cost increases,
as outlined on page 6 of this report.
214 694/kg, due to a 10% decrease in grade and general cost increases,
as outlined on page 6 of this report.
Target 1
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
168
161
4
Grade
g/t
4.11
4.88
(16)
Gold produced
Kg
690
785
(12)
Cash operating costs
R/kg
269 323
203 459
(32)
Operating profit
R’000
51 169
59 007
(13)
Target 1 resolved the belt challenges experienced in the March 2011
quarter. More tonnes were hoisted as a result of new belts being
inserted on the decline belt. Tonnes milled increased by 4% quarter on
quarter to 168 000 tonnes.
quarter. More tonnes were hoisted as a result of new belts being
inserted on the decline belt. Tonnes milled increased by 4% quarter on
quarter to 168 000 tonnes.
The recovery grade was 16% lower in comparison to the previous
quarter, mainly due to inconsistencies in the grade. As a result
production was 12% lower than the March 2011 quarter at 690kg, with
cash operating costs higher at R269 323/kg.
quarter, mainly due to inconsistencies in the grade. As a result
production was 12% lower than the March 2011 quarter at 690kg, with
cash operating costs higher at R269 323/kg.
Target 3
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
75
n/a
n/a
Grade
g/t
3.65
n/a
n/a
Gold produced
Kg
274
250
10
Cash operating costs
R/kg
339 956
n/a
n/a
Operating profit
R’000
930
n/a
n/a
8
Results for the quarter and the year
ended 30 June 2011
Target 3 had its first quarter of commercial production since Harmony’s
acquisition of the asset in February 2010.
acquisition of the asset in February 2010.
Target 3 recorded an operating profit of R930 000, with gold production
at 274kg. Although cash operating costs were high at R339 956/kg, it
should improve as the operation builds up its production.
at 274kg. Although cash operating costs were high at R339 956/kg, it
should improve as the operation builds up its production.
Tshepong
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
327
333
(2)
Grade
g/t
4.50
5.04
(11)
Gold produced
Kg
1 473
1 679
(12)
Cash operating costs
R/kg
209 333
170 662
(23)
Operating profit
R’000
179 753
236 045
(24)
Tshepong generated an operating profit of R179 million for the quarter.
The 11% decrease in the recovery grade to 4.50g/t quarter on quarter
is partially due to waste from the decline being hoisted with the ore.
The 11% decrease in the recovery grade to 4.50g/t quarter on quarter
is partially due to waste from the decline being hoisted with the ore.
Cash operating costs were higher at R209 333/kg. Electricity tariff
increases, the inclusion of one month of winter tariffs and the
increase of material for engineering activities contributed to the higher
unit costs.
increases, the inclusion of one month of winter tariffs and the
increase of material for engineering activities contributed to the higher
unit costs.
Hidden Valley
(held in Morobe Mining Joint Venture – 50% of attributable
production reflected)
production reflected)
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
420
407
3
Grade
g/t
1.97
1.95
1
Gold produced
Kg
826
794
4
Cash operating costs
R/kg
238 644
216 981
(10)
Operating profit
R’000
59 904
83 202
(28)
Production at Hidden Valley was 4% higher quarter on quarter at 826kg,
mainly due the higher mill throughput and increased gold recoveries,
which were partly offset by a lower gold feed grade.
mainly due the higher mill throughput and increased gold recoveries,
which were partly offset by a lower gold feed grade.
Gold recoveries of 90% were sustained during the quarter. Mill
throughput was higher, but remains constrained as a result of the
overland conveyor belt failure in March 2011. Increased site costs are
due to the additional ore haulage costs incurred to mitigate the loss of
the overland conveyor. Repairs on the overland conveyor progressed
to plan with the conveyor expected to be operating by the end of
September 2011. Higher cash costs at R238 644/kg is partly offset by
an increase in silver production and higher silver prices received.
throughput was higher, but remains constrained as a result of the
overland conveyor belt failure in March 2011. Increased site costs are
due to the additional ore haulage costs incurred to mitigate the loss of
the overland conveyor. Repairs on the overland conveyor progressed
to plan with the conveyor expected to be operating by the end of
September 2011. Higher cash costs at R238 644/kg is partly offset by
an increase in silver production and higher silver prices received.
Silver production increased by 31% quarter on quarter, due to higher
feed grade and improved recoveries.
feed grade and improved recoveries.
OTHER SOUTH AFRICAN OPERATIONS
Bambanani
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
112
81
38
Grade
g/t
6.56
6.90
(5)
Gold produced
Kg
735
559
31
Cash operating costs
R/kg
302 668
333 259
9
Operating profit/(loss)
R’000
25 032
(12 961)
>100
The short interval control system implemented at Bambanani
addressed ineffectiveness at the operation and resulted in
improvements in tonnes milled and production. An operating profit of
R25 million was generated, due to a 31% increase in gold production
to 735kg and a 38% increase in tonnes milled to 112 000 tonnes. Grade
requires more attention, with a 5% drop quarter on quarter to 6.56g/t.
addressed ineffectiveness at the operation and resulted in
improvements in tonnes milled and production. An operating profit of
R25 million was generated, due to a 31% increase in gold production
to 735kg and a 38% increase in tonnes milled to 112 000 tonnes. Grade
requires more attention, with a 5% drop quarter on quarter to 6.56g/t.
Steyn 2
June
March
%
Indicator
Units
2011
2011
variance
Gold produced
Kg
27
14
93
The production at Steyn 2 is much higher than the previous quarter
at 27kg, but build-up at this shaft remains below expectations. Major
infrastructure challenges have been addressed and most of the
major capital for the shaft pillar will be spent in the first and second
quarter of FY12.
at 27kg, but build-up at this shaft remains below expectations. Major
infrastructure challenges have been addressed and most of the
major capital for the shaft pillar will be spent in the first and second
quarter of FY12.
Evander
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
132
130
2
Grade
g/t
5.68
3.72
53
Gold produced
kg
750
483
55
Cash operating costs
R/kg
205 235
298 153
31
Operating profit
R’000
88 615
7 304
>100
Evander performed very well during the quarter, with a substantial
increase in recovery grade at 5.68g/t, due to improvements in the face
grade. More mining crews were moved into the main payshoot of the
decline section, where the grade is higher.
increase in recovery grade at 5.68g/t, due to improvements in the face
grade. More mining crews were moved into the main payshoot of the
decline section, where the grade is higher.
Production at 750kg was higher quarter on quarter, resulting in a 31%
decrease in cash unit costs to R205 235/kg and an operating profit
of R89 million.
decrease in cash unit costs to R205 235/kg and an operating profit
of R89 million.
9
Joel
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
121
118
3
Grade
g/t
3.70
3.77
(2)
Gold produced
kg
448
445
1
Cash operating costs
R/kg
259 121
238 256
(9)
Operating profit
R’000
34 627
30 997
12
Joel had a stable quarter, with gold production at 448kg and a slight
drop in grade to 3.70g/t.
drop in grade to 3.70g/t.
Cash operating profit increased by 12% to R35 million, largely due to a
higher gold price received. Cash operating costs, however, increased
by 9% quarter on quarter to R259 121/kg, due to an increase in
electricity tariffs.
higher gold price received. Cash operating costs, however, increased
by 9% quarter on quarter to R259 121/kg, due to an increase in
electricity tariffs.
Unisel
June
March
%
Indicator
Units
2011
2011
variance
Tonnes milled
000
106
104
2
Grade
g/t
3.96
4.49
(12)
Gold produced
Kg
420
467
(10)
Cash operating costs
R/kg
255 486
227 266
(12)
Operating profit
R’000
31 884
38 814
(18)
Increased seismicity in the decline section resulted in production in
certain working places being stopped and working crews being moved
to the upper section, which has less flexibility. This impacted on the
recovery grade, which declined by 12% to 3.96g/t and also resulted
in production declining by 10% quarter on quarter to 420kg. Lower
production and the increase in electricity tariffs and stores costs
resulted in an increase in cash operating costs of 12% to R255 486/kg.
certain working places being stopped and working crews being moved
to the upper section, which has less flexibility. This impacted on the
recovery grade, which declined by 12% to 3.96g/t and also resulted
in production declining by 10% quarter on quarter to 420kg. Lower
production and the increase in electricity tariffs and stores costs
resulted in an increase in cash operating costs of 12% to R255 486/kg.
TOTAL SOUTH AFRICAN SURFACE OPERATIONS
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
2 565
2 538
1
Grade
g/t
0.34
0.35
(3)
Gold produced
Kg
867
899
(4)
Cash operating costs
R/kg
268 657
227 335
(18)
Operating profit
000
64 130
69 130
(7)
Tonnes treated at the South African surface sources remained stable
quarter on quarter at 2 565 000 tonnes. Production declined by 4% to
867kg due to a decrease in grade at 0.34g/t.
quarter on quarter at 2 565 000 tonnes. Production declined by 4% to
867kg due to a decrease in grade at 0.34g/t.
The unit cost increased to R268 657/kg, mainly due to the effect of
electricity and water tariff increases during the quarter.
electricity and water tariff increases during the quarter.
An operating profit of R64 million was generated, due to a higher gold
price received.
price received.
Kalgold
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
392
373
5
Grade
g/t
0.69
0.74
(7)
Gold produced
Kg
270
276
(2)
Cash operating costs
R/kg
311 819
231 188
(35)
Operating profit
R’000
18 247
19 740
(8)
An engineering plan was implemented over the last six months to
improve the availability of equipment at the operation. This resulted in
a 5% increase in tonnes milled to 392 000 tonnes. Lower grade areas
were mined in the open pit during the quarter, resulting in production
being 2% lower at 270kg.
improve the availability of equipment at the operation. This resulted in
a 5% increase in tonnes milled to 392 000 tonnes. Lower grade areas
were mined in the open pit during the quarter, resulting in production
being 2% lower at 270kg.
Mechanical breakdowns at the plant, together with higher electricity
costs resulted in a higher cash operating cost of R311 819/kg, which
also impacted the operating profit, reducing it by 8% quarter on quarter
to R18 million.
costs resulted in a higher cash operating cost of R311 819/kg, which
also impacted the operating profit, reducing it by 8% quarter on quarter
to R18 million.
Phoenix (tailings)
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
1 247
1 242
–
Grade
g/t
0.11
0.12
(8)
Gold produced
Kg
137
149
(8)
Cash operating costs
R/kg
297 029
259 966
(14)
Operating profit
000
5 169
12 508
(59)
Tonnes milled at Phoenix remained steady at 1 247 000 tonnes.
The decrease in operating profit of R6 million for the quarter is as a
result of an 8% decrease in grade. Cash operating costs were 14%
higher quarter on quarter due to an increase in security costs following
theft incidents and interruptions at the plant.
result of an 8% decrease in grade. Cash operating costs were 14%
higher quarter on quarter due to an increase in security costs following
theft incidents and interruptions at the plant.
Surface dumps
June
March
%
Indicator
Units
2011
2011
variance
Tonnes
000
926
923
–
Grade
g/t
0.50
0.51
(2)
Gold produced
Kg
460
474
(3)
Cash operating costs
R/kg
234 874
214 833
(9)
Operating profit
000
40 714
36 882
10
Treatment of tonnes at the surface dumps remained fairly flat quarter
on quarter at 926 000 tonnes.
on quarter at 926 000 tonnes.
An increase in the operating profit to a total of R40 million is attributable
to the higher gold price received during the quarter.
to the higher gold price received during the quarter.
10
Results for the quarter and the year
ended 30 June 2011
Development
Note:
The ore reserve block grades reflect the grades of the blocks in the life-of-mine plans for the various operations. These blocks are to a large degree the blocks
above a certain cut-off grade that has been targeted for mining. The development grades are those as sampled in the ongoing on-reef development at the
operations and no selectivity has been applied from a grade point of view.
operations and no selectivity has been applied from a grade point of view.
Bambanani
In the southern part of the sub-shaft area of the mine, development
grades remain lower than expected. In the shaft pillar the grade
remains above 3000cmg/t, which is in line with expectations.
grades remain lower than expected. In the shaft pillar the grade
remains above 3000cmg/t, which is in line with expectations.
Doornkop
The South Reef development grades are mostly in line with expectations
and in line with the reserve grade. No on-reef development was
planned for the Kimberly Reef.
and in line with the reserve grade. No on-reef development was
planned for the Kimberly Reef.
Evander 8
Almost all on-reef development is now concentrated on the Kinross
payshoot in the decline area of the mine. Although there was a quarter
on quarter drop in the development grade due to local variations, the
grades in the main raise lines remained in line with expectations.
payshoot in the decline area of the mine. Although there was a quarter
on quarter drop in the development grade due to local variations, the
grades in the main raise lines remained in line with expectations.
Joel
Grades in the winzes being developed from 121 to 129 level, in the very
prospective north-western portion of the mine, remain good.
prospective north-western portion of the mine, remain good.
Kusasalethu
On-reef development continues to return grades that are in line with
the overall ore body grade and as predicted for the areas that are being
developed.
the overall ore body grade and as predicted for the areas that are being
developed.
Masimong
There was a quarter on quarter improvement in the grade of the B reef
development. For most of the quarter the Basal reef development
grades remained below expectation. The Basal grade is however
starting to improve as the development is moving into better areas.
development. For most of the quarter the Basal reef development
grades remained below expectation. The Basal grade is however
starting to improve as the development is moving into better areas.
Phakisa
The development towards the north is showing positive results in line
with expectation. These grades were however offset by lower grades
from the development towards the south. Most of the development
at Phakisa is still taking place in the lower grade central block with its
very erratic nature in terms of grade. However, positive grade trends
are emerging from the development towards the north, as expected.
with expectation. These grades were however offset by lower grades
from the development towards the south. Most of the development
at Phakisa is still taking place in the lower grade central block with its
very erratic nature in terms of grade. However, positive grade trends
are emerging from the development towards the north, as expected.
Target (narrow reef mining)
Quarter on quarter there was an improvement in development grades
of the narrow reef mining section at the Target 1 shaft. At Target 3
there has been a steady improvement in meters developed quarter
on quarter.
of the narrow reef mining section at the Target 1 shaft. At Target 3
there has been a steady improvement in meters developed quarter
on quarter.
Tshepong
In general the Basal Reef development grades were lower than
expected, while the B reef continued to yield positive results in most
of the target areas.
expected, while the B reef continued to yield positive results in most
of the target areas.
Unisel
At Unisel, the development grade of the Basal reef is in line with
expectations, while the Leader reef grade was lower than expected.
No on-reef development was done on the Middle reef for the quarter.
expectations, while the Leader reef grade was lower than expected.
No on-reef development was done on the Middle reef for the quarter.
Ore reserve block grades v development grades
11
Exploration
International (Papua New Guinea)#
Morobe Mining Joint Venture (50% Harmony)
Wafi-Golpu
The pre-feasibility study is advancing well with all major contracts let.
A project director has been appointed and a dedicated project office
established. Drilling activities continued this quarter, with five rigs that
drilled 6 798 meters targeting infill and extensions for Golpu, drill holes
to gain samples for metallurgical testing for Wafi and geotechnical
information for the Watut decline path.
A project director has been appointed and a dedicated project office
established. Drilling activities continued this quarter, with five rigs that
drilled 6 798 meters targeting infill and extensions for Golpu, drill holes
to gain samples for metallurgical testing for Wafi and geotechnical
information for the Watut decline path.
The resource continues to grow and the timing of the completion
of the study is dependent on the amount of infill drilling that will be
required to gather sufficient information.
of the study is dependent on the amount of infill drilling that will be
required to gather sufficient information.
During the quarter, three holes were drilled in the southern and central
part of the prospect to further increase the level of confidence in the
geological model. Intercepts were as follows:
part of the prospect to further increase the level of confidence in the
geological model. Intercepts were as follows:
• WR390 707m @ 0.53%Cu, 0.49g/t Au from 771m
• WR398 554m @ 0.76%Cu, 0.52g/t Au from 554m
• WR392_W1 643m @ 1.39%Cu, 0.94g/t Au from 1133m including
350m @ 1.98%Cu, 2.17g/t Au from 1226m
Drill hole WR392_W1 intersected over 600m of strongly developed
porphyry mineralisation and extended the mineralisation to both the
east and the west of the previous interpretation.
porphyry mineralisation and extended the mineralisation to both the
east and the west of the previous interpretation.
A new zone of Wafi-style epithermal mineralisation was intersected
between Nambonga and Golpu. The pre-collar of drill hole WR397
intersected 10m @ 9.1g/t Au from 389m and is located 200m north-
east of WR392 (85m @ 3.2g/t Au). This new zone of mineralisation
between Nambonga and Golpu. The pre-collar of drill hole WR397
intersected 10m @ 9.1g/t Au from 389m and is located 200m north-
east of WR392 (85m @ 3.2g/t Au). This new zone of mineralisation
is centred on a zone of quartz-carbonate veining and is open in all
directions. It has the potential to develop into a near surface zone of
high grade gold mineralisation.
directions. It has the potential to develop into a near surface zone of
high grade gold mineralisation.
The Wafi-Golpu resource statement (please refer to the Reserves
and Resource press release of 20 July 2011 available on our website,
www.harmony.co.za) confirms Harmony’s long-held belief that Golpu
is a world-class discovery. On a 100% basis, Golpu alone now hosts
a resource of 869Mt at 1.03% copper and 0.69g/t gold, containing
19.3Moz of gold and 9.0 million tonnes (Mt) of copper (62Moz on a gold
equivalent1 basis). This represents a significant year-on-year increase,
with an additional 368Mt (73% increase), comprising 4.2Mt copper
(88% increase) and 10.5Moz of gold (119% increase) (see Table 1 below).
The deposit has grown to the north and at depth, and the grade has
also increased. The resource remains open at depth and to the north,
with extension and infill drilling continuing (see Figure 1 below).
and Resource press release of 20 July 2011 available on our website,
www.harmony.co.za) confirms Harmony’s long-held belief that Golpu
is a world-class discovery. On a 100% basis, Golpu alone now hosts
a resource of 869Mt at 1.03% copper and 0.69g/t gold, containing
19.3Moz of gold and 9.0 million tonnes (Mt) of copper (62Moz on a gold
equivalent1 basis). This represents a significant year-on-year increase,
with an additional 368Mt (73% increase), comprising 4.2Mt copper
(88% increase) and 10.5Moz of gold (119% increase) (see Table 1 below).
The deposit has grown to the north and at depth, and the grade has
also increased. The resource remains open at depth and to the north,
with extension and infill drilling continuing (see Figure 1 below).
Table 1: Golpu (only) 2011 Resource statement in comparison to the
2010 declaration
Grade
Metal
Gold
Cut
off
Tonnage
Au
Cu
Au
Cu
Equiv.
Golpu %
Cu
Mt
(g/)t
(%)
(Moz)
(Mt)
(Moz)
2010
0.3%
501
0.54
0.96
8.8
4.8
32
*2
2011
0.2%
869
0.69
1.03
19.3
9.0
62
*1
Growth
368
0.15
0.07
10.5
4.2
30
% Growth
73%
28%
7%
119%
88%
94%
*
Represents Harmony / Newcrest joint venture (MMJV) 100% portion
1.
Gold equivalent ounces on 30 June 2011 are calculated assuming a US$1150/oz Au,
US$2.50/lb Cu and US$13.50/oz Ag with 100% recovery for all metals
2.
Gold equivalent ounces on 30 June 2010 are calculated assuming a US$950/oz Au,
US$2.00/lb Cu and US$14oz Ag with 100% recovery for all metals
Figure 1: Golpu long section showing the
comparison between the new 30 June 2011
Resource outline and the previous 30 June 2010
Resource outline.
comparison between the new 30 June 2011
Resource outline and the previous 30 June 2010
Resource outline.
12
Results for the quarter and the year
ended 30 June 2011
The increase in the Golpu resource has increased the Wafi Golpu System
resource to over 1 billion tonnes, which is displayed in table 2 below.
resource to over 1 billion tonnes, which is displayed in table 2 below.
Table 2: Wafi-Golpu System Resource Statement, comparing the
30 June 2011 declaration with the 30 June 2010 declaration
Grade
Metal
Gold
Tonnage
Au
Cu
Au
Cu
Equiv.
Golpu
(Mt)
(g/)t
(%)
(Moz)
(Mt)
(Moz)
2011
1
012
0.82 0.89
26.6
9.0 70
*2
2010
644
0.77 0.75
16
4.8 40
*1
Growth
368
0.05
0.14
10.6
4.2
30
% Growth
57%
6%
19%
66%
88%
75%
*
Represents Harmony / Newcrest joint venture (MMJV) 100% portion
1.
Gold equivalent ounces on 30 June 2011 are calculated assuming a US$1150/oz Au,
US$2.50/lb Cu and US$13.50/oz Ag with 100% recovery for all metals
2.
Gold equivalent ounces on 30 June 2010 are calculated assuming a US$950/oz Au,
US$2.00/lb Cu and US$14oz Ag with 100% recovery for all metals
The Golpu copper-gold deposit is a nested porphyry system that
comprises at least three separate mineralised intrusions. Potential
for additional mineralised intrusives along strike from Golpu, at
Nambonga, and for additional feeder zones around the margins and
at depth below the diatreme, is high, with the area hugely prospective
and underexplored (see Figure 2 below).
comprises at least three separate mineralised intrusions. Potential
for additional mineralised intrusives along strike from Golpu, at
Nambonga, and for additional feeder zones around the margins and
at depth below the diatreme, is high, with the area hugely prospective
and underexplored (see Figure 2 below).
The Wafi epithermal gold system is also expanding, with new zones of
gold mineralisation discovered off the northern margin of the diatreme
in areas never previously drill-tested.
gold mineralisation discovered off the northern margin of the diatreme
in areas never previously drill-tested.
Figure 2: The Wafi-Golpu System
comprises the Golpu, Wafi and
Nambonga Resources and
significant growth potential
comprises the Golpu, Wafi and
Nambonga Resources and
significant growth potential
13
The Wafi-Golpu resource has world class credentials, compared with other similar projects. See the graph below (Figure 3). Wafi-Golpu is of
substantial size, with the resource having the highest copper and gold grade amongst its peers.
substantial size, with the resource having the highest copper and gold grade amongst its peers.
Figure 3. Wafi-Golpu Gold Equivalent
1
comparison – source: Bank of America Merrill Lynch
Figure 4: Regional setting of the Wafi-Golpu deposit showing
Wafi-Transfer and main target areas
Wafi-Transfer and main target areas
1.
Gold equivalent ounces on 30 June 2011 are calculated assuming a US$1150/oz Au,
US$2.50/lb Cu and US$13.50/oz Ag with 100% recovery for all metals
Wafi structural corridor
Outside of the Wafi-Golpu project area, several first class gold and
copper-gold targets are being developed along strike on the Wafi-
Transfer structure (see Figure 4). Main focus for the quarter included:
copper-gold targets are being developed along strike on the Wafi-
Transfer structure (see Figure 4). Main focus for the quarter included:
•
Bavaga, where results to date have outlined a +1g/t stream
sediment anomaly with a footprint of 2 by 1 kilometers and;
•
Zimake, a circular magnetic anomaly approximately 5km by 6km with
associated pan concentrate samples assaying up to 7.9ppm Au.
Both target areas are prospective for Wafi-style epithermal high
sulphidation gold and associated Golpu porphyry copper-gold
mineralisation. Reconnaissance work is continuing.
sulphidation gold and associated Golpu porphyry copper-gold
mineralisation. Reconnaissance work is continuing.
14
Results for the quarter and the year
ended 30 June 2011
Hidden Valley district exploration
Excellent first pass results have been returned from the Mungowe
prospect, located approximately 7km northwest of Hidden Valley.
Mapping and rock chip sampling has outlined a high-grade zone of
outcropping mineralisation with results including: 1m @ 87 g/t Au,
82.9 g/t Ag and 4m @ 31 g/t Au, 121 g/t Ag.
prospect, located approximately 7km northwest of Hidden Valley.
Mapping and rock chip sampling has outlined a high-grade zone of
outcropping mineralisation with results including: 1m @ 87 g/t Au,
82.9 g/t Ag and 4m @ 31 g/t Au, 121 g/t Ag.
High grades are localised at the intersection of several fault zones,
but this sits within a broader envelope of carbonate-base metal
mineralisation and alteration covering an area of approximately
3km x 1.5km. The footprint of the anomaly together with its structural-
geological setting similar to that at Hidden Valley, is very encouraging.
but this sits within a broader envelope of carbonate-base metal
mineralisation and alteration covering an area of approximately
3km x 1.5km. The footprint of the anomaly together with its structural-
geological setting similar to that at Hidden Valley, is very encouraging.
Prospect development work including compilation of results from the
Kulang-Kerimenge trend continues.
Kulang-Kerimenge trend continues.
Figure 5: HV satellite deposit target locations
PNG Exploration (Harmony 100%)
Outside of the Morobe Mining Joint Venture (MMJV), exploration work
on the PNG tenement portfolio focused on the Mount Hagen Project,
with drilling commencing at the Kurunga Prospect.
on the PNG tenement portfolio focused on the Mount Hagen Project,
with drilling commencing at the Kurunga Prospect.
Mount Hagen project (EL1611 & EL1596)
First-pass drilling at the Kurunga Prospect is underway to test three
discrete copper anomalies in close proximity, each roughly 500-
700m diameter. The anomalies exhibit typical porphyry style metal
zonation, with a central Copper-Molybolenum (Cu-Mo) core (with
patchy coincident gold (Au) surrounded by elevated Zink-Lead (Zn-Pb)
geochemistry. In addition, anomalies rank among the highest order
geochemical targets in the entire mobile belt.
discrete copper anomalies in close proximity, each roughly 500-
700m diameter. The anomalies exhibit typical porphyry style metal
zonation, with a central Copper-Molybolenum (Cu-Mo) core (with
patchy coincident gold (Au) surrounded by elevated Zink-Lead (Zn-Pb)
geochemistry. In addition, anomalies rank among the highest order
geochemical targets in the entire mobile belt.
Initial assay results received to date have been encouraging. The
top 132m of KUDD008 averages 170 ppm Molybolenum (Mo) and is
accompanied by sporadic vein intervals of +0.1 % Cu. The assays also
include an interval of high grade Mo mineralisation:
top 132m of KUDD008 averages 170 ppm Molybolenum (Mo) and is
accompanied by sporadic vein intervals of +0.1 % Cu. The assays also
include an interval of high grade Mo mineralisation:
• KUDD009; 33m @ 343 ppm Mo from 4m.
Golpu resource grade averages 95 ppm Mo for comparison. Results
indicate that the Kurunga system is metal bearing and confirms the
prospectivity of the soil anomaly. The remainder of assays for the
program are pending.
indicate that the Kurunga system is metal bearing and confirms the
prospectivity of the soil anomaly. The remainder of assays for the
program are pending.
15
Figure 6: Greyscale magnetic image (analytic signal) over the Mt Hagen project area with colour overlay showing copper geochemical anomalies.
The red areas represent high order copper anomalies ranging between 250 parts per million (ppm) to 0.14% copper.
Ridge and spur soil sampling and reconnaissance mapping have
produced a 1 300m x 600m, coincident Cu-Au-Mo anomaly to the
southwest of Kurunga at Penamb (refer figure 5 above). Preliminary field
observations combined with historic mid-1980’s Esso reports indicate
the presence of a fertile Cu-Au porphyry system with significant phyllic
and propyllitic alteration zones within the main Penamb creek and
along several ridges. Drill testing is planned for quarter 1 of FY12.
produced a 1 300m x 600m, coincident Cu-Au-Mo anomaly to the
southwest of Kurunga at Penamb (refer figure 5 above). Preliminary field
observations combined with historic mid-1980’s Esso reports indicate
the presence of a fertile Cu-Au porphyry system with significant phyllic
and propyllitic alteration zones within the main Penamb creek and
along several ridges. Drill testing is planned for quarter 1 of FY12.
Amanab project (EL1708)
No fieldwork was undertaken during the quarter. Reconnaissance
mapping and sampling is scheduled for the next quarter.
mapping and sampling is scheduled for the next quarter.
# Note: The technical information was compiled by Greg Job, Harmony’s Executive Growth
and Resource Development for South-East Asia, who has the overall responsibility
and accountability for the Golpu project, in terms of the South African Code for the
Reporting of Exploration Results, Mineral Resources and Ore Reserves (SAMREC)
2007. Mr Job has 21 years’ experience in mine and resource geology and is a member
of the Australian Institute of Mining and Metallurgy. He is a full time employee of
Harmony and qualifies as Competent Person as defined in the SAMREC Code and
the Australian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves (JORC). Mr Job has consented to the inclusion of the exploration details
based on the information in the form and context in which it appears.
and accountability for the Golpu project, in terms of the South African Code for the
Reporting of Exploration Results, Mineral Resources and Ore Reserves (SAMREC)
2007. Mr Job has 21 years’ experience in mine and resource geology and is a member
of the Australian Institute of Mining and Metallurgy. He is a full time employee of
Harmony and qualifies as Competent Person as defined in the SAMREC Code and
the Australian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves (JORC). Mr Job has consented to the inclusion of the exploration details
based on the information in the form and context in which it appears.
South Africa
Uranium Project Tshepong, Phakisa, Masimong Project (TPM)
TPM evaluates the potential for the economic recovery of uranium
from the ore mined at the Tshepong, Phakisa and Masimong operations
in the Free State. The processing of the uranium enhances the gold
recovery resulting in increased gold production from these operations.
When the uranium is treated as a by-product, and therefore a credit to
costs, operating costs of the contributing shafts will be reduced.
from the ore mined at the Tshepong, Phakisa and Masimong operations
in the Free State. The processing of the uranium enhances the gold
recovery resulting in increased gold production from these operations.
When the uranium is treated as a by-product, and therefore a credit to
costs, operating costs of the contributing shafts will be reduced.
During the March 2011 quarter the feasibility study was completed.
Higher operating and capital cost assumptions were used. This resulted
in lower net present values than expected. A value engineering
process is currently underway to further assess the net present value
of the project.
Higher operating and capital cost assumptions were used. This resulted
in lower net present values than expected. A value engineering
process is currently underway to further assess the net present value
of the project.
16
Results for the quarter and the year
ended 30 June 2011
17
Operating results
(Rand/Metric) (US$/Imperial)
Underground production – South Africa
Surface production – South Africa
Total
South
South
Quarter
Kusasa-
Under-
Total
Africa
Africa
Hidden
Harmony
Ended
Bambanani
Doornkop
Evander
Joel
lethu Masimong
Phakisa
Steyn 2
Target 1
Target 3 Tshepong
Unisel
ground
Kalgold Phoenix Dumps
Surface
Other
Total Valley
Total
Ore milled
– t’000
Jun-11
112
234
132
121
305
190
106
–
168
75
327
106
1 876
392
1 247
926
2 565
–
4 441
420
4 861
Mar-11
81
173
130
118
297
216
88
–
161
–
333
104
1 701
373
1 242
923
2 538
–
4 239
407
4 646
Gold produced
– kg
Jun-11
735
757
750
448
1 586
827
472
27
690
274
1 473
420
8 459
270
137
460
867
–
9 326
826
10 152
Mar-11
559
571
483
445
1 464
1 039
408
14
785
250
1 679
467
8 164
276
149
474
899
–
9 063
794
9 857
Gold produced
– oz
Jun-11
23 631
24 338
24 113
14 404
50 991
26 589
15 175
868
22 184
8 809
47 358
13 503
271 963
8 681
4 405 14 789
27 875
–
299 838
26 556
326 394
Mar-11
17 972
18 358
15 529
14 307
47 069
33 405
13 117
450
25 238
8 038
53 981
15 014
262 478
8 874
4 790
15 239
28 903
–
291 381
25 528
316 909
Yield
– g/tonne
Jun-11
6.56
3.24
5.68
3.70
5.20
4.35
4.45
–
4.11
3.65
4.50
3.96
4.49
0.69
0.11
0.50
0.34
–
2.09
1.97
2.08
Mar-11
6.90
3.30
3.72
3.77
4.93
4.81
4.64
–
4.88
–
5.04
4.49
4.64
0.74
0.12
0.51
0.35
–
2.08
1.95
2.06
Cash operating costs
– R/kg
Jun-11
302 668
239 316
205 235
259 121
219 880
214 694
284 475
–
269 323 339 956
209 333
255 486
240 610
311 819
297 029
234 874
268 657
–
243 225
238 644
242 851
Mar-11
333 259
229 447
298 153
238 256
200 579
175 496
286 765
–
203 459
–
170 662
227 266
216 799
231 188
259 966
214 833
227 335
–
217 876
216 981
217 802
Cash operating costs
– $/oz
Jun-11
1 389
1 099
942
1 190
1 009
986
1 306
–
1 236
1 561
961
1 173
1 105
1 431
1 363
1 078
1 233
–
1 117
1 096
1 115
Mar-11
1 484
1 022
1 327
1 061
893
781
1 277
–
906
–
760
1 012
965
1 029
1 157
957
1 012
–
970
966
970
Cash operating costs
– R/tonne
Jun-11
1 986
774
1 166
959
1 143
934
1 267
–
1 106
1 242
943
1 012
1 081
215
33
117
91
–
509
469
506
Mar-11
2 300
757
1 108
899
989
844
1 330
–
992
–
860
1 021
1 007
171
31
110
81
–
452
423
450
Gold sold
– Kg
Jun-11
758
762
727
480
1 583
854
487
27
756
300
1 520
434
8 688
354
137
460
951
–
9 639
773
10 412
Mar-11
541
543
523
405
1 545
1 005
394
14
707
250
1 624
452
8 003
263
147
470
880
–
8 883
833
9 716
Gold sold
– oz
Jun-11
24 370
24 499
23 374
15 432
50 895
27 457
15 657
868
24 306
9 645
48 869
13 953
279 325
11 381
4 405 14 789
30 575
–
309 900
24 852
334 752
Mar-11
17 394
17 458
16 815
13 021
49 673
32 311
12 667
450
22 731
8 038
52 213
14 532
257 303
8 456
4 726
15 111
28 293
–
285 596
26 782
312 378
Revenue
(R’000)
Jun-11
249 573
251 188
239 907
158 441
521 415
281 110
160 566
–
248 583
98 673
499 685
142 338
2 851 479 116 059
45 336 151 481
312 876
–
3 164 355
257 876
3 422 231
Mar-11
169 264
169 602
162 346
126 329
480 596
314 222
123 501
–
221 194
–
507 523
141 255
2 415 832
81 888
45 861 147 391
275 140
–
2 690 972
258 327
2 949 299
Cash operating
(R’000)
Jun-11
222 461
181 162
153 926
116 086
348 730
177 552
134 272
–
185 833
93 148
308 348
107 304
2 028 822
84 191
40 693 108 042
232 926
–
2 261 748
197 120
2 458 868
costs
Mar-11
186 292
131 014
144 008
106 024
293 648
182 340
117 000
–
159 715
–
286 542
106 133
1 712 716
63 808
38 735 101 831
204 374
–
1 917 090
172 283
2 089 373
Inventory
(R’000)
Jun-11
2 080
1 776
(2 634)
7 728
(3 669)
7 782
1 984
–
11 581
4 595
11 584
3 150
45 957
13 621
(526)
2 725
15 820
–
61 777
852
62 629
movement
Mar-11
(4 067)
(7 726)
11 034
(10 692)
39 966
(8 688)
(3 173)
–
2 472
–
(15 064)
(3 692)
370
(1 660)
(5 382)
8 678
1 636
–
2 006
2 842
4 848
Operating costs
(R’000)
Jun-11
224 541
182 938
151 292
123 814
345 061
185 334
136 256
–
197 414
97 743
319 932
110 454
2 074 779
97 812
40 167 110 767
248 746
–
2 323 525
197 972
2 521 497
Mar-11
182 225
123 288
155 042
95 332
333 614
173 652
113 827
–
162 187
–
271 478
102 441
1 713 086
62 148
33 353 110 509
206 010
–
1 919 096
175 125
2 094 221
Operating profit
(R’000)
Jun-11
25 032
68 250
88 615
34 627
176 354
95 776
24 310
–
51 169
930
179 753
31 884
776 700
18 247
5 169 40 714
64 130
–
840 830
59 904
900 734
Mar-11
(12 961)
46 314
7 304
30 997
146 982
140 570
9 674
–
59 007
–
236 045
38 814
702 746
19 740
12 508
36 882
69 130
–
771 876
83 202
855 078
Operating profit
($’000)
Jun-11
3 694
10 074
13 080
5 110
26 029
14 135
3 588
–
7 552
137
26 530
4 706
114 635
2 693
763
6 009
9 465
–
124 100
8 842
132 942
Mar-11
(1 856)
6 629
1 047
4 436
21 040
20 122
1 385
–
8 446
–
33 788
5 556
100 593
2 826
1 791
5 279
9 896
–
110 489
11 911
122 400
Capital expenditure
(R’000)
Jun-11
52 308
70 860
50 484
18 350
105 246
48 441
93 305
37 490
76 220
14 189
72 124
16 440
655 457
5 765
5 526 22 655
33 946
21 311
710 714
76 972
787 686
Mar-11
37 321
67 049
29 981
14 733
85 915
40 588
81 737
37 009
74 469
22 026
67 259
14 225
572 312
1 246
5 844
12 353
19 443
7 112
598 867
67 982
666 849
Capital expenditure
($’000)
Jun-11
7 720
10 458
7 451
2 708
15 534
7 150
13 771
5 533
11 250
2 094
10 645
2 426
96 740
851
816
3 344
5 011
3 145
104 896
11 361
116 257
Mar-11
5 342
9 598
4 292
2 109
12 298
5 810
11 700
5 298
10 660
3 153
9 628
2 036
81 924
178
837
1 768
2 783
1 018
85 725
9 731
95 456
18
Results for the quarter and the year
ended 30 June 2011
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Rand)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Note
R
million
R
million
R
million
R
million
R
million
Continuing operations
Revenue
Revenue
3 422
2 949
3 045
12 445
11 284
Cost of sales
2
(3 491)
(2 623)
(2 649)
(11 615)
(10 484)
Production costs
(2 508)
(2 064)
(2 075)
(9 074)
(8 325)
Royalty
expense
(13)
(30)
(28)
(96)
(33)
Amortisation and depreciation
(477)
(431)
(383)
(1 776)
(1 375)
Impairment of assets
(264)
–
(30)
(264)
(331)
Employment termination and
restructuring
restructuring
costs
–
(26)
(82)
(158)
(205)
Other
items
(229)
(72)
(51)
(247)
(215)
Gross
(loss)/profi
t
(69)
326
396
830
800
Corporate, administration and
other
other
expenditure
(71)
(93)
(124)
(354)
(382)
Social
investment
expenditure
(18)
(27)
(28)
(84)
(81)
Exploration
expenditure
3
(102)
(77)
(60)
(353)
(219)
Profit on sale of property,
plant and equipment
plant and equipment
5
8
101
29
104
Other income/(expenses) – net
33
(8)
40
(24)
(58)
Operating (loss)/profit
(222)
129
325
44
164
(Loss)/profit from associates
–
(24)
(7)
(51)
56
Reversal of impairment/(impairment) of
investment in associate
investment in associate
6
18
(160)
–
(142)
–
Loss on sale of investment in subsidiary
–
–
–
–
(24)
Net gain on financial instruments
4
22
3
11
414
38
Investment
income
24
64
25
140
187
Finance cost
(89)
(71)
(94)
(288)
(246)
(Loss)/profit before taxation
(247)
(59)
260
117
175
Taxation
205
297
(227)
480
(335)
Normal
taxation
10
(12)
(20)
(12)
(84)
Deferred taxation
5
195
309
(207)
492
(251)
Net (loss)/pro t from
continuing
continuing
operations
(42)
238
33
597
(160)
Discontinued operations
(Loss)/pro t from discontinued operations
(Loss)/pro t from discontinued operations
6
–
–
(20)
20
(32)
Net (loss)/profit
(42)
238
13
617
(192)
Attributable to:
Owners of the parent
Owners of the parent
(42)
238
13
617
(192)
Non-controlling
interest
–
–
–
–
–
(Loss)/earnings per ordinary share (cents)
7
– (Loss)/earnings from continuing operations
(10)
55
8
139
(38)
– (Loss)/earnings from discontinued operations
–
–
(5)
5
(8)
Total (loss)/earnings per ordinary
share
share
(cents)
(10)
55
3
144
(46)
Diluted (loss)/earnings per ordinary
share (cents)
share (cents)
7
– (Loss)/earnings from continuing operations
(10)
55
8
139
(38)
– (Loss)/earnings from discontinued operations
–
–
(5)
5
(8)
Total diluted (loss)/earnings per
ordinary
ordinary
share
(cents)
(10)
55
3
144
(46)
The accompanying notes are an integral part of these condensed consolidated financial statements.
19
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (Rand)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
R million
R million
R million
R million
R million
Net (loss)/pro t for the period
(42)
238
13
617
(192)
Other comprehensive income/(loss) for the period,
net of income tax
net of income tax
418
6
(166)
368
(131)
Foreign exchange translation
473
22
(161)
470
(127)
Fair value movement of available-for-sale investments
(55)
(16)
(5)
(102)
(4)
Total comprehensive income/(loss) for the period
376
244
(153)
985
(323)
Attributable to:
Owners of the parent
Owners of the parent
376
244
(153)
985
(323)
Non-controlling interest
–
–
–
–
–
The accompanying notes are an integral part of these condensed consolidated financial statements.
20
Results for the quarter and the year
ended 30 June 2011
CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)
At
At
At
30 June
31 March
30 June
2011
2011
2010
(Unaudited)
(Audited)
Note
R million
R million
R million
ASSETS
Non-current assets
Property, plant and equipment
8
31 221
30 557
29 556
Intangible assets
8
2 170
2 188
2 210
Restricted cash
31
27
146
Restricted investments
1 883
1 866
1 742
Investments in nancial assets
185
236
12
Investments in associates
–
–
385
Inventories
9
172
227
214
Trade and other receivables
23
69
75
35 685
35 170
34 340
Current assets
Inventories
9
837
954
987
Trade and other receivables
1 073
1 111
932
Income and mining taxes
139
119
74
Cash and cash equivalents
693
656
770
2 742
2 840
2 763
Assets of disposal groups classi ed as held for sale
6
268
174
245
3 010
3 014
3 008
Total assets
38 695
38 184
37 348
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
28 305
28
290
28 261
Other reserves
762
299
258
Retained earnings
1 093
1 135
690
30 160
29 724
29 209
Non-current liabilities
Deferred tax liability
3 067
3 313
3 534
Provision for environmental rehabilitation
10
1 971
1 785
1 692
Retirement bene t obligation and other provisions
174
179
169
Borrowings
11
1 229
1 487
981
6 441
6 764
6 376
Current liabilities
Borrowings
11
330
336
209
Income and mining taxes
2
17
9
Trade and other payables
12
1 746
1 343
1 410
2 078
1 696
1 628
Liabilities of disposal groups classi ed as held for sale
6
16
–
135
2 094
1 696
1 763
Total equity and liabilities
38 695
38 184
37 348
The accompanying notes are an integral part of these condensed consolidated nancial statements.
21
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Rand)
for the year ended 30 June 2011
Share
Other
Retained
capital
reserves
earnings
Total
R million
R million
R million
R million
Balance – 30 June 2010
28 261
258
690
29 209
Issue of shares
44
–
–
44
Share-based payments
–
136
–
136
Total comprehensive income for the year
–
368
617
985
Dividends paid
–
–
(214)
(214)
Balance as at 30 June 2011
28 305
762
1 093
30 160
Balance – 30 June 2009
28 091
339
1 095
29 525
Issue of shares
175
–
–
175
Share-based payments
(5)
148
–
143
Repurchase of equity interest
–
(98)
–
(98)
Total comprehensive loss for the year
–
(131)
(192)
(323)
Dividends paid
–
–
(213)
(213)
Balance as at 30 June 2010
28 261
258
690
29 209
The statement of changes in equity for the year ended 30 June 2010 has been audited.
The accompanying notes are an integral part of these condensed consolidated nancial statements.
22
Results for the quarter and the year
ended 30 June 2011
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Note
R million
R million
R million
R million
R
million
Cash ow from operating activities
Cash generated by operations
1 052
213
877
2 418
1 611
Interest and dividends received
24
64
32
140
187
Interest
paid
(35)
(34)
(38)
(134)
(90)
Income and mining taxes (paid)/refund
(19)
8
(55)
(45)
(125)
Cash generated by operating activities
1 022
251
816
2 379
1 583
Cash ow from investing activities
(Increase)/decrease in restricted cash
(4)
–
–
116
15
Proceeds on disposal of investment in subsidiary
–
–
–
229
24
Proceeds on disposal of available-for-sale
financial
financial
assets
–
–
8
1
50
Prepayment for Evander 6 and Twistdraai
transaction
transaction
12
100
–
–
100
–
Other
investing
activities
(10)
16
(11)
10
(12)
Net additions to property, plant and equipment
(829)
(687)
(708)
(3 110)
(3 493)
Cash utilised by investing activities
(743)
(671)
(711)
(2 654)
(3 416)
Cash ow from nancing activities
Borrowings
raised
150
250
300
925
1
236
Borrowings
repaid
(415)
(17)
(106)
(546)
(391)
Ordinary shares issued – net of expenses
15
13
7
44
18
Dividends
paid
–
–
–
(214)
(213)
Cash (utilised)/generated by financing activities
(250)
246
201
209
650
Foreign currency translation adjustments
8
(7)
(17)
(11)
3
Net increase/(decrease) in cash and cash
equivalents
equivalents
37
(181)
289
(77)
(1
180)
Cash and cash equivalents – beginning of period
656
837
481
770
1 950
Cash and cash equivalents – end of period
693
656
770
693
770
The accompanying notes are an integral part of these condensed consolidated nancial statements.
23
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE FOURTH
QUARTER AND YEAR ENDED 30 JUNE 2011
QUARTER AND YEAR ENDED 30 JUNE 2011
1.
Accounting
policies
Basis of accounting
The condensed consolidated nancial statements for the year ended 30 June 2011 have been prepared in accordance with IAS 34, Interim
Financial Reporting, JSE Listing Requirements and in the manner required by the Companies Act of South Africa. They should be read in
conjunction with the annual nancial statements for the year ended 30 June 2010, which have been prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are consistent
with those described in the annual nancial statements, except for the adoption of applicable revised and/or new standards issued by the
International Accounting Standards Board.
Financial Reporting, JSE Listing Requirements and in the manner required by the Companies Act of South Africa. They should be read in
conjunction with the annual nancial statements for the year ended 30 June 2010, which have been prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are consistent
with those described in the annual nancial statements, except for the adoption of applicable revised and/or new standards issued by the
International Accounting Standards Board.
2.
Cost of sales
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
R million
R million
R million
R million
R million
Production costs
2 508
2 064
2 075
9 074
8 325
Royalty
expense
13
30
28
96
33
Amortisation and depreciation
477
431
383
1 776
1 375
Impairment of assets
(1)
264
–
30
264
331
Rehabilitation expenditure
(2)
61
4
14
74
29
Care and maintenance cost of restructured shafts
37
35
15
124
57
Employment termination and restructuring costs
–
26
82
158
205
Share based payments
45
28
41
136
148
Other
(3)
86
5
(19)
(87)
(19)
Total cost of sales
3 491
2 623
2 649
11 615
10 484
(1)
During the June 2011 quarter, an impairment of R264 million relating to President Steyn 1 and 2 shafts and St Helena was recorded. The impairments for the year ended
30 June 2010 relates mainly to the Virginia and Evander operations, which was recorded as a result of shaft closures.
(2)
The expense for the June 2011 quarter results from the annual re-estimation of the rehabilitation obligation.
(3)
Included in Other for the June 2011 quarter is R41 million for the write down of the Steyn plant demolishment project.
3.
Exploration
expenditure
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
R million
R million
R million
R million
R million
Total exploration expenditure
111
87
60
398
219
Less: expenditure capitalised
(1)
(9)
(10)
–
(45)
–
Exploration expenditure per income statement
102
77
60
353
219
(1) Relates to Brownfields exploration at Hidden Valley
4.
Net gain on financial instruments
During the September 2010 quarter, a gain of R273 million was recognised on the Freegold option. This was following Harmony Gold Mining
Company Limited (Harmony) entering into two transactions with Witwatersrand Consolidated Gold Resources Limited (Wits Gold), whereby
Wits Gold obtains a prospecting right over Harmony’s Merriespruit South area and the option held by ARMgold/Harmony Freegold Joint
Venture Company (Proprietary) Limited (Freegold), a wholly owned subsidiary of Harmony, is cancelled.
Company Limited (Harmony) entering into two transactions with Witwatersrand Consolidated Gold Resources Limited (Wits Gold), whereby
Wits Gold obtains a prospecting right over Harmony’s Merriespruit South area and the option held by ARMgold/Harmony Freegold Joint
Venture Company (Proprietary) Limited (Freegold), a wholly owned subsidiary of Harmony, is cancelled.
The remainder of the total relates primarily to the increase in the fair value of the Nedbank Equity Linked Deposits held by the Environmental Trusts.
24
Results for the quarter and the year
ended 30 June 2011
5.
Deferred
taxation
The deferred taxation credit of R195 million includes credits of R119 million related to the annual re-assessment of the deferred tax rates.
The deferred taxation credit of R309 million in the March 2011 quarter includes a deferred tax credit of R333 million relating to Freegold.
South African Revenue Service (SARS) previously disallowed Freegold’s “post 1973 gold mine” additional capital allowance claim, and
also disallowed Freegold’s application of mining ringfencing. The disputed matters were set down to be heard in the Income Tax Court of
Johannesburg on 14 March 2011, but SARS withdrew the additional capital allowance claim on 10 March 2011, conceding that the Freegold
operations are entitled to claim this capital allowance. The inclusion of the capital allowance caused an increase in the deferred tax asset
on the balance sheet and the resulting credit in the income statement. For additional disclosure on the mining ringfencing application refer
to note 13.
South African Revenue Service (SARS) previously disallowed Freegold’s “post 1973 gold mine” additional capital allowance claim, and
also disallowed Freegold’s application of mining ringfencing. The disputed matters were set down to be heard in the Income Tax Court of
Johannesburg on 14 March 2011, but SARS withdrew the additional capital allowance claim on 10 March 2011, conceding that the Freegold
operations are entitled to claim this capital allowance. The inclusion of the capital allowance caused an increase in the deferred tax asset
on the balance sheet and the resulting credit in the income statement. For additional disclosure on the mining ringfencing application refer
to note 13.
6.
Disposal groups classified as held for sale and discontinued operations
Mount Magnet
The conditions precedent for the sale of Mount Magnet were ful lled and the transaction became effective on 20 July 2010. A total purchase
consideration of R238 million was received from Ramelius Resources Limited in exchange for 100% of the issued shares of Mount Magnet.
The group recognised a total pro t of R104 million net of tax, before the realisation of accumulated foreign exchange losses of R84 million
from other comprehensive income to the consolidated income statement. The income statement and earnings per share amounts for all
comparative periods have been re-presented to disclose the operation as a discontinued operation.
consideration of R238 million was received from Ramelius Resources Limited in exchange for 100% of the issued shares of Mount Magnet.
The group recognised a total pro t of R104 million net of tax, before the realisation of accumulated foreign exchange losses of R84 million
from other comprehensive income to the consolidated income statement. The income statement and earnings per share amounts for all
comparative periods have been re-presented to disclose the operation as a discontinued operation.
Investment in associate
The investment in Rand Uranium has been classi ed as held for sale following the decision by the shareholders to sell the business. In terms
of the binding offer accepted by the shareholders on 21 April 2011, the capital portion of the subordinated shareholder’s loan of R61 million
due to the group will be repaid out of the sale proceeds. Where the carrying value of the investment exceeds the expected proceeds, an
impairment is recognised in the income statement. An impairment of R142 million has been recognised for the 2011 year.
of the binding offer accepted by the shareholders on 21 April 2011, the capital portion of the subordinated shareholder’s loan of R61 million
due to the group will be repaid out of the sale proceeds. Where the carrying value of the investment exceeds the expected proceeds, an
impairment is recognised in the income statement. An impairment of R142 million has been recognised for the 2011 year.
Evander 6 and Twistdraai
On 10 September 2010, Harmony concluded a sale of assets agreement with Taung Gold Limited (Taung), in which Taung acquired the Evander
6 Shaft, the related infrastructure and surface rights permits as well as a mining right over the Evander 6 and Twistdraai areas. The total
purchase consideration is R225 million, which will be settled in cash when all remaining conditions precedent to the transaction have been
ful lled. In terms of an amended agreement Taung paid an amount of R100 million in April 2011. Refer to note 12 for additional disclosure.
6 Shaft, the related infrastructure and surface rights permits as well as a mining right over the Evander 6 and Twistdraai areas. The total
purchase consideration is R225 million, which will be settled in cash when all remaining conditions precedent to the transaction have been
ful lled. In terms of an amended agreement Taung paid an amount of R100 million in April 2011. Refer to note 12 for additional disclosure.
7.
(Loss)/earnings and net asset value per share
(Loss)/earnings per share is calculated on the weighted average number of shares in issue for the quarter ended 30 June 2011: 430.0 million
(31 March 2011: 429.5 million, 30 June 2010: 427.6 million), and the year ended 30 June 2011: 429.3 million (30 June 2010: 426.4 million).
(31 March 2011: 429.5 million, 30 June 2010: 427.6 million), and the year ended 30 June 2011: 429.3 million (30 June 2010: 426.4 million).
The diluted (loss)/earnings per share is calculated on weighted average number of diluted shares in issue for the quarter ended
30 June 2011: 431.4 million (31 March 2011: 430.7 million, 30 June 2010: 429.1 million), and the year ended 30 June 2011: 430.4 million
(30 June 2010: 427.8 million).
30 June 2011: 431.4 million (31 March 2011: 430.7 million, 30 June 2010: 429.1 million), and the year ended 30 June 2011: 430.4 million
(30 June 2010: 427.8 million).
25
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Total (loss)/earnings per
share (cents):
share (cents):
Basic (loss)/earnings
(10)
55
3
144
(46)
Diluted (loss)/earnings
(10)
55
3
144
(46)
Headline earnings/(loss)
30
91
(10)
223
(7)
– from continuing operations
30
91
(6)
223
1
– from discontinued operations
–
–
(4)
–
(8)
Diluted headline earnings/(loss)
30
91
(10)
222
(7)
– from continuing operations
30
91
(6)
222
1
– from discontinued operations
–
–
(4)
–
(8)
R million
R million
R million
R million
R million
Reconciliation of headline earnings/(loss):
Continuing operations
Net (loss)/profit
(42)
238
33
597
(160)
Adjusted for (net of tax):
Profit on sale of property, plant and equipment
(5)
(8)
(101)
(30)
(104)
Taxation effect of profit on sale of property, plant
and
and
equipment
1
2
21
8
22
Net gain on financial instruments
(6)
(3)
(4)
(7)
(7)
Taxation effect of net gain on financial instruments
2
1
1
2
2
(Reversal of impairment)/impairment of investment
in associate*
in associate*
(18)
160
–
142
–
Foreign exchange loss/(gain) reclassified from other
comprehensive income*
comprehensive income*
–
–
–
47
(22)
Loss on sale of investment in subsidiary
–
–
–
–
24
Taxation effect of loss on sale of investment in subsidiary
–
–
–
–
(7)
Impairment of assets
264
–
30
264
331
Taxation effect of impairment of assets
(66)
–
(4)
(66)
(75)
Headline earnings/(loss)
130
390
(24)
957
4
Discontinued operations
Net (loss)/profit
–
–
(20)
20
(32)
Adjusted for (net of tax):
Profit on sale of investment in subsidiary
Profit on sale of investment in subsidiary
–
–
–
(138)
(1)
Taxation effect of profit on sale of investment in subsidiary
–
–
–
34
–
Foreign exchange loss reclassified from other
comprehensive income*
comprehensive income*
–
–
–
84
–
Headline loss
–
–
(20)
–
(33)
Total headline earnings/(loss)
130
390
(44)
957
(29)
*There is no taxation effect on these items.
Net asset value per share (cents)
At
At
At
30 June
31 March
30 June
2011
2011
2010
Number of shares in issue
430 084 628
429 807 371
428 654 779
Net asset value per share (cents)
7 013
6 916
6 814
8.
Property, plant and equipment and intangible assets
An impairment of R264 million has been recognised at 30 June 2011 for the President Steyn 1 and 2 shafts and St Helena. R9 million of the
impairment relates to goodwill, which is included in intangible assets.
impairment relates to goodwill, which is included in intangible assets.
9.
Inventories
A write down of R41 million was recorded for the Steyn plant demolishment project as well as R21 million for the net realisable value
adjustment for other gold in lock-up. In addition, a write down of R30 million was recorded for certain stockpiles.
adjustment for other gold in lock-up. In addition, a write down of R30 million was recorded for certain stockpiles.
26
Results for the quarter and the year
ended 30 June 2011
10.
Provision for environmental rehabilitation
An adjustment of R157 million was made to the liability following the annual re-estimation of the rehabilitation obligation.
11.
Borrowings
30 June
31 March
30 June
2011
2011
2010
(Unaudited)
(Audited)
R million
R million
R million
Total long-term borrowings
1 229
1 487
981
Total current portion of borrowings
330
336
209
Total borrowings
(1) (2)
1 559
1 823
1 190
(1) In December 2009, the Company entered into a loan facility with Nedbank Limited, comprising of a Term Facility of R900 million and a Revolving Credit Facility of
R600 million. Interest accrues on a day to day basis over the term of the loan at a variable interest rate, which is fixed for a three month period, equal to JIBAR plus 3.5%.
Interest is repayable quarterly. The Term Facility is repayable bi-annually in equal instalments of R90 million over five years. The first instalment was paid on 30 June 2010.
Interest is repayable quarterly. The Term Facility is repayable bi-annually in equal instalments of R90 million over five years. The first instalment was paid on 30 June 2010.
In December 2010, the Company entered into an additional loan facility with Nedbank Limited, comprising of a Term Facility of R500 million and a Revolving Credit Facility
of R250 million. Interest terms are identical to the original facility. The Term Facility is repayable bi-annually in equal instalments of R62.5 million over four years. The first
instalment was paid on 30 June 2011. The terms of the original Revolving Credit Facility were amended to coincide with the repayment terms of the new Revolving Credit
Facility, being payable after three years from December 2010.
of R250 million. Interest terms are identical to the original facility. The Term Facility is repayable bi-annually in equal instalments of R62.5 million over four years. The first
instalment was paid on 30 June 2011. The terms of the original Revolving Credit Facility were amended to coincide with the repayment terms of the new Revolving Credit
Facility, being payable after three years from December 2010.
At 30 June 2011, R400 million (31 March 2011: R300 million, 30 June 2010: R300 million) of these facilities had not been drawn down.
(2) Included in the borrowings is R51 million (31 March 2011: R58 million; June 2010: R91 million) owed to Westpac Bank Limited in terms of a finance lease agreement. The
future minimum lease payments are as follows:
30 June
31 March
30 June
2011
2011
2010
(Unaudited)
(Audited)
R million
R million
R million
Due within one year
29
29
33
Due between one and five years
22
30
60
51
59
93
Future nance charges
(1)
(1)
(2)
Total future minimum lease payments
50
58
91
12.
Trade and other payables
Included in the balance at 30 June 2011 is an amount of R100 million paid by Taung to Harmony in terms of the amended agreement for the
purchase of the Evander 6 shaft and Twistdraai areas. In terms of the amended agreement, the amount is repayable to Taung should the
outstanding conditions for the transactions not be ful lled.
13.
Commitments and contingencies
30 June
31 March
30 June
2011
2011
2010
(Unaudited)
(Audited)
R million
R million
R million
Capital expenditure commitments:
Contracts for capital expenditure
Contracts for capital expenditure
194
191
335
Authorised by the directors but not contracted for
1 504
2 175
1 006
1 698
2 366
1 341
This expenditure will be nanced from existing resources and borrowings where necessary.
Contingent liability
For a detailed disclosure on contingent liabilities refer to Harmony’s annual report for the nancial year ended 30 June 2010, available on the
group’s website at www.harmony.co.za. In addition the following contingencies have been added or amended:
(a) During March 2011, the Constitutional Court handed down judgement in the case of Mr Thembekile Mankayi v AngloGold Ashanti Limited
group’s website at www.harmony.co.za. In addition the following contingencies have been added or amended:
(a) During March 2011, the Constitutional Court handed down judgement in the case of Mr Thembekile Mankayi v AngloGold Ashanti Limited
(AGA) regarding litigation in terms of the Occupational Diseases in Mines and Works Act (ODIMWA). The judgement allows Mr Mankayi’s
executor to proceed with the case in the High Court of South Africa. Harmony was named as a second defendant in the original case.
Should anyone bring similar claims against Harmony in future, those claimants would need to provide evidence proving that silicosis
was contracted while in the employment of the Company and that it was contracted due to negligence on the Company’s part. The link
between the cause (negligence by the Company while in its employ) and the effect (the silicosis) will be an essential part of any case.
It is therefore uncertain as to whether the Company will incur any costs related to silicosis claims in the future and due to the limited
information available on any potential claims and the uncertainty of the outcome of these claims, no estimation can be made for the
possible obligation.
executor to proceed with the case in the High Court of South Africa. Harmony was named as a second defendant in the original case.
Should anyone bring similar claims against Harmony in future, those claimants would need to provide evidence proving that silicosis
was contracted while in the employment of the Company and that it was contracted due to negligence on the Company’s part. The link
between the cause (negligence by the Company while in its employ) and the effect (the silicosis) will be an essential part of any case.
It is therefore uncertain as to whether the Company will incur any costs related to silicosis claims in the future and due to the limited
information available on any potential claims and the uncertainty of the outcome of these claims, no estimation can be made for the
possible obligation.
(b)
The Court’s decision on Freegold’s appeal regarding the South African Revenue Service’s (SARS) application of mining tax ring-fencing
was received on 1 August 2011 and the Court found in favour of SARS. The case was concluded in March 2011, but judgement was
reserved at that time. The Company has decided to appeal the nding by the Court. Any additional income taxes payable are expected
to be offset by additional deferred tax credits due to the impact this application will have on unredeemed capital.
reserved at that time. The Company has decided to appeal the nding by the Court. Any additional income taxes payable are expected
to be offset by additional deferred tax credits due to the impact this application will have on unredeemed capital.
27
(c)
On 18 April 2008, Harmony Gold Mining Company Limited was made aware that it had been named or might be named as a defendant
in a lawsuit led in the U.S. District Court in the Southern District of New York on behalf of certain purchasers and sellers of Harmony’s
American Depository Receipts (ADRs) and options with regard to certain of its business practices. Harmony has retained legal counsel.
American Depository Receipts (ADRs) and options with regard to certain of its business practices. Harmony has retained legal counsel.
During January 2009, the plaintiff led an Amended Complaint with the United States District Court (Court). Subsequently, the Company
led a Motion to Dismiss all claims asserted in the Class Action Case. On 19 March 2010, the Court denied the Company’s application for
dismissal and subsequently the Company led a Motion for Reconsideration in which it requested the Court to reconsider its judgement.
This matter was heard on 27 April 2010 and the Company’s request for reconsideration of judgement was denied.
This matter was heard on 27 April 2010 and the Company’s request for reconsideration of judgement was denied.
The Company has subsequent to 30 June 2011 reached a mutually acceptable settlement with the lead plaintiff. The settlement requires
nal approval from the Court and no assurance can be given that the settlement will ultimately be approved.
14.
Subsequent events
(a)
Refer to note 13(b) for details on the post balance sheet date event relating to the Freegold court case.
(b)
On 11 August 2011, the group entered into a US$300 million Revolving Credit Facility. The facility has a term of four years and attracts
interest at LIBOR plus 260 basis points. This arrangement is subject to certain conditions precedent being satis ed. The facility was jointly
arranged by Nedbank Limited and Firstrand Bank Limited (acting through its Rand Merchant Bank division).
arranged by Nedbank Limited and Firstrand Bank Limited (acting through its Rand Merchant Bank division).
(c)
On 12 August 2011 the board approved a payment of dividend of 60 SA cents per share for the year ended 30 June 2011.
15.
Segment report
The segment report follows on page 28 and 29.
16.
Reconciliation of segment information to consolidated income statements and balance sheets
30 June
30 June
2011
2010
(Audited)
R million
R million
The “Reconciliation of segment information to consolidated income statement and balance
sheet” line item in the segment report is broken down in the following elements, to give a
better understanding of the differences between the income statement, balance sheet and
segment report:
Revenue from:
Discontinued operations
sheet” line item in the segment report is broken down in the following elements, to give a
better understanding of the differences between the income statement, balance sheet and
segment report:
Revenue from:
Discontinued operations
–
–
Production costs from:
Discontinued operations
Discontinued operations
–
–
Reconciliation of production profit to gross profit:
Total segment revenue
12 445
11 284
Total segment production costs and royalty expense
(9 170)
(8 358)
Production profit as per segment report
3 275
2 926
Less: discontinued operations
–
–
3 275
2 926
Cost of sales items other than production costs and royalty expense
(2 445)
(2 126)
Amortisation and depreciation
(1 776)
(1 375)
Impairment of assets
(264)
(331)
Employment termination and restructuring costs
(158)
(205)
Share-based payments
(136)
(148)
Rehabilitation costs
(74)
(29)
Care and maintenance costs of restructured shafts
(124)
(57)
Other
87
19
Gross profit as per income statements *
830
800
Reconciliation of total segment mining assets to consolidated property, plant and equipment:
Property, plant and equipment not allocated to a segment:
Mining assets
871
786
Undeveloped property
5 139
5 139
Other non-mining assets
70
72
Less: Non-current assets classified as held for sale
–
(226)
6 080
5 771
* The reconciliation was done up to the rst recognisable line item on the income statement. The reconciliation will follow the income statement after that.
17.
Audit review
The condensed consolidated nancial statements for the year ended 30 June 2011 on pages 18 to 29 have been reviewed in accordance with
the International Standards on Review Engagements 2410 – “Review of interim nancial information performed by the independent Auditors
of the entity” by PricewaterhouseCoopers Inc. Their unquali ed review opinion is available for inspection at the company’s registered of ce.
the International Standards on Review Engagements 2410 – “Review of interim nancial information performed by the independent Auditors
of the entity” by PricewaterhouseCoopers Inc. Their unquali ed review opinion is available for inspection at the company’s registered of ce.
28
Results for the quarter and the year
ended 30 June 2011
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2011 (Rand/Metric)
Production
Production
Mining
Capital
Kilograms
Tonnes
Revenue
cost
(1)
profit
assets
expenditure
(4)
produced
milled
R million
R million
R million
R million
R million
kg*
t’000*
Continuing operations
South Africa
Underground
Bambanani
(2)
921
828
93
965
321
3
051
426
Doornkop
781
601
180
3 085
292
2 512
718
Evander
717
622
95
946
196
2
302
541
Joel
454
417
37
183
73
1
449
407
Kusasalethu
1 774
1 321
453
3 220
380
5 609
1 099
Masimong
1
326
756
570
899
178
4 280
868
Phakisa
551
473
78
4 317
369
1 762
387
Target
(2)
1 080
815
265
2 729
439
3 981
805
Tshepong
2 007
1 172
835
3 589
273
6 468
1 343
Virginia
682
562
120
672
79
2 213
576
Surface
All other surface operations
(3)
1 176
888
288
155
147
3 790
10 431
Total South Africa
11 469
8 455
3 014
20 760
2 747
37 417
17 601
International
Papua New Guinea
976
715
261
4 381
289
3 118
1 679
Total international
976
715
261
4 381
289
3 118
1 679
Total operations
12 445
9 170
3 275
25 141
3 036
40 535
19 280
Reconciliation of the segment
information to the consolidated
income statements and
balance sheets (refer to note 16)
information to the consolidated
income statements and
balance sheets (refer to note 16)
–
–
6
080
12 445
9 170
31 221
(1)
Production costs includes royalty expense.
(2)
Production statistics for Steyn 2 and up to March 2011 for Target 3 are included for information purposes. Steyn 2 is in build-up phase and revenue and costs are currently
capitalised until commercial levels of production are reached. Target 3 had reached commercial production levels in April 2011.
(3)
Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.
(4)
The total excludes non-operational capital expenditure of R67 million relating to Papua New Guinea.
* Production statistics are not reviewed
29
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2010 (Rand/Metric)
Production
Operating
Mining
Capital
Kilograms
Tonnes
Revenue
cost
profit
assets
expenditure
produced
milled
R million
R million
R million
R million
R million
kg*
t’000*
Continuing operations
South Africa
Underground
Bambanani
(2)
1
114
745
369
954
207
4
137
528
Doornkop
517
410
107
2 837
342
1 950
540
Evander 910
859
51
922
175
3
475
788
Joel
524
379
145
175
88
2
006
439
Kusasalethu
1 392
1 091
301
2 974
430
5 444
1 035
Masimong
1
277
702
575
799
177
4
840
899
Phakisa
375
326
49
4 065
486
1 371
339
Target
(2)
878
664
214
2 537
382
3 539
777
Tshepong
1 823
1 147
676
3 645
261
6 749
1 518
Virginia
1 415
1 340
75
682
180
5 288
1 656
Surface
All other surface operations
(1)
980
632
348
127
84
3
731
9
140
Total South Africa
11 205
8 295
2 910
19 717
2 812
42 530
17 659
International
Papua New Guinea
(3)
79
63
16
3 771
541
1 903
304
Total international
79
63
16
3 771
541
1 903
304
Total continuing operations
11 284
8 358
2 926
23 488
3 353
44 433
17 963
Discontinued operations
Mount Magnet
–
–
–
226
–
–
–
Total discontinued operations
–
–
–
226
–
–
–
Total operations
11 284
8 358
2 926
23 714
3 353
44 433
17 963
Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 16)
information to the consolidated
income statement and
balance sheet (refer to note 16)
–
–
5
771
11 284
8 358
29 485
Notes:
(1) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up
(2) Production statistics for President Steyn and Target 3 are included for information purposes. These mines are in build-up phase and revenue and costs are currently capitalised
until commercial levels of production are reached.
(3) Production statistics for Papua New Guinea are included for the full year for information purposes. The mine was in build-up phase until the end of April 2010, when commercial
levels of production were reached. Revenue and costs up to this date were capitalised.
* Production statistics are not reviewed
30
Results for the quarter and the year
ended 30 June 2011
31
Operating results
(US$/Imperial)
Underground production – South Africa
Surface production – South Africa
Total
South
South
Quarter
Kusasa-
Under-
Total
Africa
Africa
Hidden
Harmony
Ended
Bambanani Doornkop
Evander
Joel
lethu Masimong
Phakisa
Steyn 2
Target 1
Target 3 Tshepong
Unisel
ground
Kalgold Phoenix Dumps
Surface
Other
Total Valley
Total
Ore milled
– t’000
Jun-11
124
258
146
133
336
210
117
–
185
83
361
117
2 070
432
1 375
1 021
2 828
–
4 898
463
5 361
Mar-11
89
191
143
130
328
238
97
–
178
–
367
115
1 876
411
1 370
1 018
2 799
–
4 675
449
5 124
Gold produced
– oz
Jun-11
23 631
24 338
24 113
14 404
50 991
26 589
15 175
868
22 184
8 809
47 358
13 503
271 963
8 681
4 405 14 789
27 875
–
299 838
26 556
326 394
Mar-11
17 972
18 358
15 529
14 307
47 069
33 405
13 117
450
25 238
8 038
53 981
15 014
262 478
8 874
4 790
15 239
28 903
–
291 381
25 528
316 909
Yield
– oz/t
Jun-11
0.191
0.094
0.165
0.108
0.152
0.127
0.130
–
0.120
0.106
0.131
0.115
0.131
0.020
0.003
0.014
0.010
–
0.061
0.057
0.061
Mar-11
0.202
0.096
0.109
0.110
0.144
0.140
0.135
–
0.142
–
0.147
0.131
0.135
0.022
0.003
0.015
0.010
–
0.061
0.057
0.060
Cash operating costs
– $/oz
Jun-11
1 389
1 099
942
1 190
1 009
986
1 306
–
1 236
1 561
961
1 173
1 105
1 431
1 363
1 078
1 233
–
1 117
1 096
1 115
Mar-11
1 484
1 022
1 327
1 061
893
781
1 277
–
906
–
760
1 012
965
1 029
1 157
957
1 012
–
970
966
970
Cash operating costs
– $/t
Jun-11
265
104
156
129
153
125
169
–
148
166
126
135
145
29
4
16
12
–
68
63
68
Mar-11
300
98
144
117
128
110
173
–
128
–
112
132
131
22
4
14
10
–
59
55
58
Gold sold
– oz
Jun-11
24 370
24 499
23 374
15 432
50 895
27 457
15 657
868
24 306
9 645
48 869
13 953
279 325
11 381
4 405
14 789
30 575
–
309 900
24 852
334 752
Mar-11
17 394
17 458
16 815
13 021
49 673
32 311
12 667
450
22 731
8 038
52 213
14 532
257 303
8 456
4 726
15 111
28 293
–
285 596
26 782
312 378
Revenue
($’000)
Jun-11
36 835
37 074
35 409
23 385
76 957
41 490
23 698
–
36 689
14 563
73 750
21 008
420 858
17 129
6 691 22 357
46 177
–
467 035
38 061
505 096
Mar-11
24 229
24 277
23 239
18 083
68 794
44 979
17 678
–
31 662
–
72 649
20 220
345 810
11 722
6 565
21 098
39 385
–
385 195
36 978
422 173
Cash operating
($’000)
Jun-11
32 834
26 738
22 718
17 134
51 470
26 206
19 817
–
27 428
13 748
45 510
15 837
299 440
12 426
6 006
15 946
34 378
–
333 818
29 093
362 911
costs
Mar-11
26 667
18 754
20 613
15 177
42 033
26 101
16 747
–
22 862
–
41 017
15 192
245 163
9 134
5 544
14 577
29 255
–
274 418
24 660
299 078
Inventory
($’000)
Jun-11
307
262
(389)
1 141
(542)
1 149
293
–
1 709
678
1 710
465
6 783
2 010
(78)
402
2 334
–
9 117
126
9 243
movement
Mar-11
(582)
(1 106)
1 579
(1 530)
5 721
(1 244)
(454)
–
354
–
(2 156)
(528)
54
(238)
(770)
1 242
234
–
288
407
695
Operating costs
($’000)
Jun-11
33 141
27 000
22 329
18 275
50 928
27 355
20 110
–
29 137
14 426
47 220
16 302
306 223
14 436
5 928 16 348
36 712
–
342 935
29 219
372 154
Mar-11
26 085
17 648
22 192
13 647
47 754
24 857
16 293
–
23 216
–
38 861
14 664
245 217
8 896
4 774
15 819
29 489
–
274 706
25 067
299 773
Operating profit
($’000)
Jun-11
3 694
10 074
13 080
5 110
26 029
14 135
3 588
–
7 552
137
26 530
4 706
114 635
2 693
763
6 009
9 465
–
124 100
8 842
132 942
Mar-11
(1 856)
6 629
1 047
4 436
21 040
20 122
1 385
–
8 446
–
33 788
5 556
100 593
2 826
1 791
5 279
9 896
–
110 489
11 911
122 400
Capital expenditure
($’000)
Jun-11
7 720
10 458
7 451
2 708
15 534
7 150
13 771
5 533
11 250
2 094
10 645
2 426
96 740
851
816
3 344
5 011
3 145
104 896
11 361
116 257
Mar-11
5 342
9 598
4 292
2 109
12 298
5 810
11 700
5 298
10 660
3 153
9 628
2 036
81 924
178
837
1 768
2 783
1 018
85 725
9 731
95 456
32
Results for the quarter and the year
ended 30 June 2011
CONDENSED CONSOLIDATED INCOME STATEMENTS (US$)
(Convenience translation)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
US$ million
US$ million
US$ million
US$ million
US$ million
Continuing operations
Revenue
Revenue
505
422
404
1
781
1
489
Cost of sales
(515)
(375)
(352)
(1 663)
(1 383)
Production costs
(370)
(295)
(275)
(1 299)
(1 099)
Royalty
expense
(2)
(4)
(4)
(14)
(4)
Amortisation and depreciation
(70)
(62)
(51)
(254)
(181)
Impairment of assets
(39)
–
(4)
(38)
(43)
Employment termination and restructuring costs
–
(4)
(11)
(23)
(27)
Other
items
(34)
(10)
(7)
(35)
(29)
Gross
(loss)/profit
(10)
47
52
118
106
Corporate, administration and other expenditure
(10)
(13)
(16)
(51)
(50)
Social investment expenditure
(3)
(4)
(4)
(12)
(11)
Exploration
expenditure
(15)
(11)
(8)
(51)
(29)
Profit on sale of property, plant and equipment
1
1
13
4
14
Other income/(expenses) – net
5
(1)
5
(3)
(8)
Operating
(loss)/profit
(32)
19
42
5
22
(Loss)/profit from associates
–
(3)
(1)
(7)
7
Reversal of impairment/(impairment) of investment
in
in
associate
3
(23)
–
(20)
–
Loss on sale of investment in subsidiary
–
–
–
–
(3)
Net gain on financial instruments
3
–
2
59
5
Investment
income
4
9
3
20
25
Finance
cost
(13)
(10)
(12)
(41)
(32)
(Loss)/profit before taxation
(35)
(8)
34
16
24
Taxation
30
42
(30)
68
(44)
Normal
taxation
1
(2)
(3)
(2)
(11)
Deferred
taxation
29
44
(27)
70
(33)
Net (loss)/profit from continuing operations
(5)
34
4
84
(20)
Discontinued operations
(Loss)/profit from discontinued operations
(Loss)/profit from discontinued operations
–
–
(2)
3
(4)
Net
(loss)/profit
(5)
34
2
87
(24)
Attributable to:
Owners of the parent
Owners of the parent
(5)
34
2
87
(24)
Non-controlling
interest
–
–
–
–
–
(Loss)/earnings per ordinary share (cents)
– (Loss)/earnings from continuing operations
– (Loss)/earnings from continuing operations
(1)
8
1
20
(5)
– (Loss)/earnings from discontinued operations
–
–
(1)
1
(1)
Total (loss)/earnings per ordinary share (cents)
(1)
8
–
21
(6)
Diluted (loss)/earnings per ordinary share (cents)
– (Loss)/earnings from continuing operations
– (Loss)/earnings from continuing operations
(1)
8
1
20
(5)
– (Loss)/earnings from discontinued operations
–
–
(1)
1
(1)
Total diluted (loss)/earnings per ordinary share (cents)
(1)
8
–
21
(6)
The currency conversion average rates for the quarter ended: June 2011: US$1 = R6.78 (March 2011: US$1 = R6.99, June 2010: US$1 = R7.54).
The currency conversion average rates for the year ended: June 2011: US$1 = R6.99 (June 2010: US$1 = R7.58).
The income statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.
The currency conversion average rates for the year ended: June 2011: US$1 = R6.99 (June 2010: US$1 = R7.58).
The income statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.
Note on convenience translations
Except where specific statements have been extracted from the 2010 Annual Report, the requirements of IAS 21, The Effects of the Changes in
Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial statements presented on page 32 to 38.
Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial statements presented on page 32 to 38.
33
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (US$)
(Convenience translation)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
US$ million
US$ million
US$ million
US$ million
US$ million
Net (loss)/profit for the period
(5)
34
2
87
(24)
Other comprehensive income/(loss) for
the period, net of income tax
the period, net of income tax
62
1
(22)
52
25
Foreign exchange translation
70
3
(21)
67
25
Fair value movement of available-for-sale investments
(8)
(2)
(1)
(15)
–
Total comprehensive income/(loss)
for the period
for the period
57
35
(20)
139
1
Attributable to:
Owners of the parent
Owners of the parent
57
35
(20)
139
1
Non-controlling
interest
–
–
–
–
–
The currency conversion average rates for the quarter ended: June 2011: US$1 = R6.78 (March 2011: US$1 = R6.99, June 2010: US$1 = R7.54).
The currency conversion average rates for the year ended: June 2011: US$1 = R6.99 (June 2010: US$1 = R7.58).
The statement of other comprehensive income for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.
34
Results for the quarter and the year
ended 30 June 2011
CONDENSED CONSOLIDATED BALANCE SHEETS (US$)
(Convenience translation)
At
At
At
30 June
31 March
30 June
2011
2011
2010
(Unaudited)
(Unaudited)
(Audited)
US$ million
US$ million
US$ million
ASSETS
Non-current assets
Property, plant and equipment
4 607
4 509
3 874
Intangible assets
320
323
290
Restricted cash
5
4
19
Restricted investments
278
275
228
Investments in financial assets
27
35
2
Investments in associates
–
–
50
Inventories
25
33
28
Trade and other receivables
3
10
10
5 265
5 189
4 501
Current assets
Inventories
124
141
129
Trade and other receivables
158
164
122
Income and mining taxes
21
18
10
Cash and cash equivalents
102
97
101
405
420
362
Assets of disposal groups classified as held for sale
40
26
32
445
446
394
Total assets
5 710
5 635
4 895
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
4 177
4 175
4 027
Other reserves
112
44
(40)
Retained earnings/(accumulated loss)
161
167
(159)
4 450
4 386
3 828
Non-current liabilities
Deferred tax
453
489
463
Provisions for environmental rehabilitation
291
263
222
Retirement benefit obligation and other provisions
26
26
22
Borrowings
181
219
129
951
997
836
Current liabilities
Borrowings
49
50
27
Income and mining taxes
–
3
1
Trade and other payables
258
199
185
307
252
213
Liabilities of disposal groups classified as held for sale
2
–
18
309
252
231
Total equity and liabilities
5 710
5 635
4 895
Number of ordinary shares in issue
430 084 628
429 807 371
428 654 779
Net asset value per share (cents)
1 035
1 020
893
The balance sheet for June 2011 converted at a conversion rate of US$1 = R6.78 (March 2011: US$1 = R6.78, June 2010: US$1 = R7.63).
The balance sheet as at 30 June 2010 has been extracted from the 2010 Annual Report.
35
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (US$)
for the year ended 30 June 2011 (Convenience translation)
Retained
earnings/
Share
Other
(Accumulated
capital
reserves
loss)
Total
US$ million
US$ million
US$ million
US$ million
Balance – 30 June 2010
4 170
38
102
4 310
Issue of shares
7
–
–
7
Share-based payments
–
20
–
20
Total comprehensive income for the year
–
54
91
145
Dividends paid
–
–
(32)
(32)
Balance as at 30 June 2011
4 177
112
161
4 450
Balance – 30 June 2009
4 004
(72)
(108)
3 824
Issue of shares
24
–
–
24
Share-based payments
(1)
20
–
19
Repurchase of equity interest
–
(13)
–
(13)
Total comprehensive loss for the year
–
25
(24)
1
Dividends paid
–
–
(27)
(27)
Balance as at 30 June 2010
4 027
(40)
(159)
3 828
The currency conversion closing rates for the year ended: June 2011: US$1 = R6.78 (June 2010: US$1 = R7.63).
The statement of changes in equity for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.
The statement of changes in equity for the year ended 30 June 2011 is unaudited.
36
Results for the quarter and the year
ended 30 June 2011
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (US$)
(Convenience translation)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2011
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
US$ million
US$ million
US$ million
US$ million
US$ million
Cash flow from operating activities
Cash generated by operations
155
30
116
346
214
Interest and dividends received
4
9
4
20
25
Interest paid
(5)
(5)
(5)
(19)
(12)
Income and mining taxes (paid)/refund
(3)
1
(7)
(6)
(17)
Cash generated by operating activities
151
35
108
341
210
Cash flow from investing activities
(Increase)/decrease in restricted cash
(1)
–
–
17
2
Proceeds on disposal of investment in subsidiary
–
–
–
33
3
Proceeds on disposal of available-for-sale financial assets
–
–
1
–
7
Prepayment for Evander 6 and Twistdraai transaction
15
–
–
14
–
Other investing activities
(1)
2
(1)
1
(2)
Net additions to property, plant and equipment
(122)
(98)
(94)
(445)
(463)
Cash utilised by investing activities
(109)
(96)
(94)
(380)
(453)
Cash flow from financing activities
Borrowings raised
22
36
40
132
168
Borrowings repaid
(60)
(2)
(14)
(78)
(57)
Ordinary shares issued – net of expenses
2
2
1
6
3
Dividends paid
–
–
–
(31)
(29)
Cash (utilised)/generated by financing activities
(36)
36
27
29
85
Foreign currency translation adjustments
(1)
(5)
(6)
11
6
Net increase/(decrease) in cash and cash equivalents
5
(30)
35
1
(152)
Cash and cash equivalents – beginning of period
97
127
66
101
253
Cash and cash equivalents – end of period
102
97
101
102
101
Operating activities translated at average rates for the quarter ended: June 2011: US$1 = R6.78 (March 2011: US$1 = R6.99, June 2010: US$ = R7.54).
Average rates for the year ended : June 2011: US$1 = R6.99 (June 2010: US$1 = R7.58)
Average rates for the year ended : June 2011: US$1 = R6.99 (June 2010: US$1 = R7.58)
Closing balance translated at closing rates of: June 2011: US$1 = R6.78 (March 2011: US$1 = R6.78, June 2010: US$1: R7.63).
The cash ow statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.
37
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2011 (US$/Imperial) (Unaudited)
(Convenience translation)
Production
Production
Mining
Capital
Ounces
Tons
Revenue
cost
(1)
profit
assets
expenditure
(4)
produced
milled
US$ million
US$ million
US$ million
US$ million
US$ million
oz
t’000
Continuing operations
South Africa
Underground
Bambanani
(2)
132
118
14
142
46
98 092
470
Doornkop
112
86
26
455
42
80 763
792
Evander
102
89
13
140
28
74 011
596
Joel
65
60
5
27
11
46 586
448
Kusasalethu
254
189
65
475
54
180 334
1 212
Masimong
190
108
82
133
26
137 605
957
Phakisa
79
68
11
637
53
56 649
427
Target
(2)
154
117
37
403
63
127 992
888
Tshepong
287
168
119
530
39
207 950
1 481
Virginia
98
80
18
99
11
71 149
636
Surface
All other surface operations
(3)
168
127
41
23
21
121 851
11 501
Total South Africa
1 641
1 210
431
3 064
394
1 202 982
19 408
International
Papua New Guinea
140
103
37
646
42
100 246
1 852
Total international
140
103
37
646
42
100 246
1 852
Total operations
1 781
1 313
468
3 710
436
1 303 228
21 260
(1) Production costs includes royalty expense.
(2) Production statistics for Steyn 2 and up to March 2011 for Target 3 are included for information purposes. Steyn 2 is in build-up phase and revenue and costs are currently
capitalised until commercial levels of production are reached. Target 3 had reached commercial production levels in April 2011.
(3) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.
(4) The total excludes non-operational capital expenditure of US$10 million relating to Papua New Guinea.
All income statement items, including capital expenditure, are converted at the currency conversion rate of US$1 = R6.98
Mining assets are converted at the currency conversion rate of US$1 = R6.78
38
Results for the quarter and the year
ended 30 June 2011
SEGMENT REPORT FOR THE YEAR ENDED 30 JUNE 2010 (US$/Imperial) (Unaudited)
(Convenience translation)
Production
Operating
Mining
Capital
Ounces
Tons
Revenue
cost
profit
assets
expenditure
produced
milled
US$ million
US$ million
US$ million
US$ million
US$ million
oz
t’000
Continuing operations
Underground
Bambanani
(2)
147
98
49
125
28
133 007
582
Doornkop
68
54
14
372
45
62 694
595
Evander
120
113
7
121
23
111 724
869
Joel
69
50
19
23
10
64 495
484
Kusasalethu
184
144
40
390
57
175 029
1 141
Masimong
168
93
75
105
23
155 609
991
Phakisa
50
43
7
533
64
44 079
374
Target
116
88
28
333
51
113 782
857
Tshepong
241
151
90
478
35
216 986
1 674
Virginia
187
177
10
89
24
170 013
1 826
Surface
All other surface operations
(1)
129
84
45
17
11
119 954
10 077
Total South Africa
1 479
1 095
384
2 586
371
1 367 372
19 470
International
Papua New Guinea
(3)
10
8
2
494
71
61 173
335
Total international
10
8
2
494
71
61 173
335
Total continuing operations
1 489
1 103
386
3 080
442
1 428 545
19 805
Discontinued operations
Mount Magnet
–
–
–
29
–
–
–
Total discontinued operations
–
–
–
29
–
–
–
Total operations
1 489
1 103
386
3 109
442
1 428 545
19 805
Notes:
(1)
Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up
(2)
Production statistics for President Steyn and Target 3 are included for information purposes. These mines are in build-up phase and revenue and costs are currently capitalised
until commercial levels of production are reached.
(3)
Production statistics for Papua New Guinea are shown for the full year for information purposes. The mine was in build-up phase until the end of April 2010, when commercial
levels of production were reached. Revenue and costs up to this date were capitalised.
All income statement items, including capital expenditure, are converted at the currency conversion rate of US$1 = R7.58.
Mining assets are converted at the currency conversion rate of US$1 = R7.63.
39
DEVELOPMENT RESULTS
(Metric)
Quarter ended 30 June 2011
Channel
Channel
Reef
Sampled
Width
Value
Gold
(metres)
(metres)
(cm’s)
(g/t)
(cmg/t)
Tshepong
Basal
665
584
11.99
74.18
889
B Reef
144
74
81.49
82.05
6 686
All Reefs
808
658
19.81
77.82
1 541
Phakisa & Nyala
Basal
421
432
79.80
10.60
846
All Reefs
421
432
79.80
10.60
846
Total Bambanani
Basal
67.6
84
179.20
11.73
2 101
All Reefs
68
84
179.20
11.73
2 101
Doornkop
South Reef
323.4
330
69.00
16.10
1 110
All Reefs
323
330
69.00
16.09
1 110
Kusasalethu
VCR Reef
528.7
582
66.00
17.06
1 126
All Reefs
529
582
66.00
17.06
1 126
Total Target
(incl. Target 1 & Target 3)
Elsburg
526.2
366
143.36
9.02
1 293
A Reef
39.2
12
123.33
15.54
1 917
B Reef
54.1
10
10.80
39.80
430
All Reefs
620
388
139.32
9.26
1 290
Masimong
Basal
532.0
451
46.54
18.58
865
B Reef
132.5
125
59.24
18.67
1 106
All Reefs
665
576
49.30
18.60
917
Evander
Kimberley
289.7
264
77.00
16.19
1 247
All Reefs
290
264
77.00
16.19
1 247
Virginia
(incl. Unisel & Merriespruit)
Basal
465.1
362
130.82
9.54
1 248
Leader
572.9
492
214.40
4.60
986
B Reef
25.6
10
9.00
80.49
724
All Reefs
1 064
864
177.00
6.18
1 093
Joel
Beatrix
435.0
378
127.70
14.05
1 794
All Reefs
435
378
127.70
14.05
1 794
Total Harmony
Basal
2 150
1 913
65.28
15.24
995
Beatrix
435
378
127.70
14.05
1 794
Leader
573
492
214.40
4.60
986
B Reef
356
219
62.25
47.24
2 941
A Reef
39.2
12.0
123.33
15.54
1 917
Elsburg
526.2
366.0
143.36
9.02
1 293
Kimberley
289.7
264.0
77.00
16.19
1 247
South Reef
323
330
69.00
16.09
1 110
VCR
529
582
66.00
17.06
1 126
All Reefs
5 221
4 556
93.88
13.00
1 220
DEVELOPMENT RESULTS
(Imperial)
Quarter ended 30 June 2011
Channel
Channel
Reef
Sampled
Width
Value
Gold
(feet)
(feet)
(inches)
(oz/t)
(in.oz/t)
Tshepong
Basal
2 180
1 916
5.00
2.04
10
B Reef
471
243
32.00
2.40
77
All Reefs
2 652
2 159
8.00
2.21
18
Phakisa & Nyala
Basal
1 381
1 417
31.00
0.31
10
All Reefs
1 381
1 417
31.00
0.31
10
Total Bambanani
Basal
222
276
71.00
0.34
24
All Reefs
222
276
71.00
0.34
24
Doornkop
South Reef
1 061
1 083
27.00
0.47
13
All Reefs
1 061
1 083
27.00
0.47
13
Kusasalethu
VCR Reef
1 735
1 909
26.00
0.50
13
All Reefs
1 735
1 909
26.00
0.50
13
Total Target
(incl. Target 1 & Target 3)
Elsburg
1 726
1 201
56.00
0.27
15
A Reef
129
39
49.00
0.45
22
B Reef
177
33
4.00
1.24
5
All Reefs
2 032
1 273
55.00
0.27
15
Masimong
Basal
1 745
1 479
18.00
0.55
10
B Reef
435
411
23.00
0.55
13
All Reefs
2 180
1 890
19.00
0.55
11
Evander
Kimberley
950
866
30.00
0.48
14
All Reefs
950
866
30.00
0.48
14
Virginia
(incl. Unisel & Merriespruit)
Basal
1 526
1 188
52.00
0.28
14
Leader
1 880
1 614
84.00
0.13
11
B Reef
84
33
4.00
2.08
8
All Reefs
3 490
2 835
70.00
0.18
13
Joel
Beatrix
1 427
1 240
50.00
0.41
21
All Reefs
1 427
1 240
50.00
0.41
21
Total Harmony
Basal
7 054
6 276
26.00
0.44
11
Beatrix
1 427
1 240
50.00
0.41
21
Leader
1 880
1 614
84.00
0.13
11
B Reef
1 168
719
25.00
1.35
34
A Reef
129
39
49.00
0.45
22
Elsburg
1 726
1 201
56.00
0.27
15
Kimberley
950
866
30.00
0.48
14
South Reef
1 061
1 083
27.00
0.47
13
VCR
1 735
1 909
26.00
0.50
13
All Reefs
17 130
14 948
37.00
0.38
14
40
Results for the quarter and the year
ended 30 June 2011
CONTACT DETAILS
HARMONY GOLD MINING COMPANY LIMITED
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: http://www.harmony.co.za
PO Box 2
Randfontein, 1760
South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759
South Africa
Telephone: +27 11 411 2000
Website: http://www.harmony.co.za
Directors
P T Motsepe (Chairman)*
G P Briggs (Chief Executive Officer)
H O Meyer (Financial Director)
H E Mashego (Executive Director)
F F T De Buck*
G P Briggs (Chief Executive Officer)
H O Meyer (Financial Director)
H E Mashego (Executive Director)
F F T De Buck*
^
(Lead independent director)
F Abbott*, J A Chissano*
1
, K V Dicks*
^
Dr D S Lushaba*
^
, C Markus*
^
,
M Motloba*
^
, M Msimang*
^
, D Nokó*
^
,
C M L Savage*
^
, A J Wilkens*, J Wetton*
^
* Non-executive
^
Independent
1
Mozambican
Investor Relations Team
Henrika Basterfield
Investor Relations Officer
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail: henrika@harmony.co.za
Investor Relations Officer
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail: henrika@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
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
iThemba Governance and Statutory Solutions (Pty) Ltd
Annamarie van der Merwe
Telephone: +27 86 111 1010
Fax: +27 86 504 1315
Mobile: +27 83 264 0328
E-mail: avdm@ithemba.co.za
Annamarie van der Merwe
Telephone: +27 86 111 1010
Fax: +27 86 504 1315
Mobile: +27 83 264 0328
E-mail: avdm@ithemba.co.za
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
United Kingdom Registrars
Capita Registrars
The Registry
34 Beckenham Road
Bechenham
Kent BR3 4TU
United Kingdom
Telephone:
0871 664 0300 (UK)
The Registry
34 Beckenham Road
Bechenham
Kent BR3 4TU
United Kingdom
Telephone:
0871 664 0300 (UK)
(calls cost 10p a minute plus network extras, lines are open
8:30 am to 5:30 pm (Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
Fax: +44 (0) 20 8639 2220
8:30 am to 5:30 pm (Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
Fax: +44 (0) 20 8639 2220
ADR Depositary
BNY Mellon
101 Barclay Street
New York, NY 10286
United States of America
Telephone: +1888-BNY-ADRS
Fax: +1 212 571 3050
101 Barclay Street
New York, NY 10286
United States of America
Telephone: +1888-BNY-ADRS
Fax: +1 212 571 3050
Sponsor
JP Morgan Equities Limited
1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
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
London Stock Exchange Plc: HRM
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1
New York Stock Exchange, Inc: HMY
London Stock Exchange Plc: HRM
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
Incorporated in the Republic of South Africa
ISIN: ZAE 000015228
PRINTED BY INCE (PTY) LTD
W2CF12636
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: August 15, 2011
Harmony Gold Mining Company Limited
By:
/s/ Hannes Meyer
Name: Hannes Meyer
Title: Financial Director
Title: Financial Director