6-K 1 harmony_quarter.htm
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 9 May 2012
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
Au
Golpu pre-feasibility study on track
Optimising of asset portfolio continued
• sale of Rand Uranium completed
• sale agreement signed for Evander
Gold production lower than planned
Deferred tax credit of R652 million (US$84 million)
ESOP launched for employees
HEPS of 234 SA cents (30 US cents)
KEY FEATURES
Shareholder information
Issued ordinary
share capital at
31 March 2012
431 471 444
Issued ordinary
share capital at
31 December 2011
431 312 677
Market capitalisation
At 31 March 2012
ZARm
35 980
At 31 March 2012
US$m
4 688
Harmony ordinary share and ADR prices
12 month high
(1 April 2011 –
31 March 2012)
for ordinary shares
R115.75
12 month low
(1 April 2011 –
31 March 2012)
for ordinary shares
R82.88
12 month high
(1 April 2011 –
31 March 2012)
for ADRs
US$15.57
12 month low
(1 April 2011 –
31 March 2012)
for ADRs
US$10.70
Free float
Ordinary shares
100%
ADR ratio
1:1
JSE Limited
HAR
Range for quarter
(1 January 2012 –
31 March 2012
closing prices)
R82.88 – R101.75
Average daily volume
for the quarter
(1 January 2012 –
31 March 2012)
1 638 216 shares
New York Stock Exchange, Inc
including other
US trading
HMY
Range for quarter
(1 January 2012 –
31 March 2012
closing prices)
US$10.70 – US$13.31
Average daily volume
for the quarter
(1 January 2012 –
31 March 2012)
2 115 404 shares
RESULTS FOR THE THIRD QUARTER FY12
ENDED 31 MARCH 2012
Harmony Gold Mining Company Limited
(“Harmony” or “Company”)
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE Share code: HAR
NYSE Share code: HMY
ISIN: ZAE000015228
FINANCIAL SUMMARY FOR THE THIRD QUARTER AND NINE MONTHS
ENDED 31 MARCH 2012
*Nine
*Nine
months
months
*Quarter
*Quarter
Q-on-Q
ended
ended
March
December
Variance
March
March
Variance
2012
2011
%
2012
2011
%
Gold
– kg
8 753
10 718
(18)
29 678
30 383
(2)
produced
– oz
281 415
344 592
(18)
954 169
976 834
(2)
Cash costs
– R/kg
293 842
249 356
(18)
267 959
221 166
(21)
– US$/oz
1 182
958
(23)
1 089
962
(13)
Gold sold
– kg
8 559
11 000
(22)
29 507
30 631
(4)
– oz
275 177
353 658
(22)
948 671
984 811
(4)
Gold price
– R/kg
419 649
438 183
(4)
418 749
300 386
39
received
– US$/oz
1 688
1 683
–
1 703
1 324
29
Operating
– R million
1 123
2 077
(46)
4 507
2 374
90
profit
(1)
–
US$
million 145 257
(43)
590
336
76
Basic earnings – SAc/s
235
243
(3)
589
154
282
per share*
– USc/s
30
30
–
77
22
250
Headline
– Rm
1 007
1 041
(3)
2 460
826
198
earnings* –
US$m
130 129 1 322 117 175
Headline
– SAc/s
234
242
(3)
571
192
198
earnings
– USc/s
30
30
–
75
27
178
per share*
Exchange rate
– R/US$
7.73
8.10
(5)
7.65
7.06
8
* Including discontinued operations.
(1) Operating pro t is comparable to the term production pro t in the segment report in the nancial statements and not to
the operating pro t line in the income statement.
Q3 FY12
2
2
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 nancial condition, results of
operations, business strategies, operating ef ciencies, 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 nancial 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 identi ed 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 re ecting 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 ability to achieve
anticipated ef ciencies and other cost savings in connection with past
and future acquisitions; increases or decreases in the market price of
gold; the occurrence of hazards associated with underground and
surface gold mining; the occurrence of labour disruptions; availability,
terms and deployment of capital; changes in government regulations,
particularly mining rights and environmental regulations; uctuations
in exchange rates; currency devaluations and other macro-economic
monetary policies; and socio-economic instability in the countries in
which we operate.
Harmony’s Integrated Annual Report,
Notice of Annual General Meeting, its
Sustainable Development Report and its
Annual Report led on a Form 20F with
the United States’ Securities and Exchange
Commission for the year ended
30 June 2011 are available on our
website: www.harmony.co.za
3 Chief executive officer’s review
5 Financial overview
6 Operational overview
6
Group operating results
6
Build-up and steady operations
6 Doornkop
6 Kusasalethu
7 Phakisa
7 Hidden Valley
7 Masimong
7 Target
1
7 Target
3
7 Tshepong
8 Other operations
8 Bambanani
8 Steyn
2
8 Evander
8 Joel
8 Unisel
9
Total South African surface operations
9 Kalgold
9 Phoenix
(tailings)
9 Surface
dumps
10 Development
11 Exploration highlights
14 Operating results (Rand/Metric) (US$/Imperial)
16 Condensed consolidated income statements (Rand)
17 Condensed consolidated statements of comprehensive income (Rand)
17 Condensed consolidated statements of changes in equity (Rand)
18 Condensed consolidated balance sheets (Rand)
19 Condensed consolidated cash flow statements (Rand)
20 Notes to the condensed consolidated financial statements
23 Segment report (Rand/Metric)
24 Operating results (US$/Imperial)
26 Condensed consolidated income statements (US$)
27 Condensed consolidated statements of comprehensive income (US$)
27 Condensed consolidated statements of changes in equity (US$)
28 Condensed consolidated balance sheets (US$)
29 Condensed consolidated cash flow statements (US$)
30 Segment report (US$/Imperial)
31 Development results – Metric and Imperial
32 Contact details
Competent person’s declaration
Harmony reports in terms of the South African Code for the Reporting
of Exploration results, Mineral Resources and Ore Reserves (SAMREC).
Harmony employs an ore reserve manager at each of its operations who
takes responsibility for reporting mineral resources and mineral reserves
at his operation.
The mineral resources and mineral reserves in this report are based on
information compiled by the following competent persons:
Reserves and resources South Africa:
Jaco Boshoff, Pri Sci Nat, who has 16 years’ relevant experience and
is registered with the South African Council for Natural Scienti c
Professions (SACNASP).
Reserves and resources PNG:
Stuart Hayward for the Wa -Golpu mineral resources, Gregory Job
for the Golpu mineral reserve, James Francis for the Hidden Valley
mineral resources and Anton Kruger for the Hidden Valley mineral
reserve. Messers Job, Francis and Kruger are corporate members of
the Australian Institute of Mining and Metallurgy and Mr Hayward is a
member of the Australian Institute of Geoscientists. All have relevant
experience in the type and style of mineralisation for which they are
reporting, and are competent persons as de ned by the code.
These competent persons consent to the inclusion in the report of
the matters based on the information in the form and context in
which it appears. Mr Boshoff and Mr Job are full-time employees of
Harmony Gold Mining Company Limited and Mr Hayward is a full-time
employee of Wa -Golpu Services Limited. Mr Francis and Mr Kruger are
full-time employees of Newcrest Mining Limited (Newcrest). Newcrest is
Harmony’s joint venture partner in the Morobe Mining Joint Venture on
the Hidden Valley mine and Wa -Golpu project.
3
Chief executive officer’s review
We have made excellent strides in the last couple of years in achieving
our stated strategy of creating a sustainable company that generates
free cash flow that funds dividends and growth. The March 2012
quarter has been a difficult quarter and we have to ensure we continue
to improve on all fronts – safety, production and returns.
Gold production in the March 2012 quarter was negatively impacted
by a number of factors, some unexpected. This resulted in a reduction
of gold production, the details of which are explained below in the
commentary on operational results (pages 6 to 9).
It was with great excitement that we announced the launch of
Harmony’s employee share trust in March 2012, a venture that
recognises the importance of the employees who sustain our business.
Our employees are our ‘human gold’. A core focus for Harmony
therefore continues to be the improvement in safety and health of
our employees and some good initiatives were undertaken that will
improve this substantially going forward.
Safety
Given the high-risk nature of many of our underground operations, the
safety, health and well-being of our people is our foremost priority. As
part of our efforts to continually improve our safety, a number of audits
were conducted by an external party during the quarter to identify
potential areas of improvement in our safety strategy. Following the
review, an improved safety framework for Harmony is being developed
and we expect this to be rolled out during the next 12 months.
In the short term, a high level internal safety audit team, consisting of
mining and safety experts, has been established. The main objective of
this team is to verify conditions in the risk areas at Harmony’s operations
and establish the effectiveness of the management systems that are in
place to ensure the safety of employees. The team will also review
the level of implementation of strategic health and safety programmes
and standards at all operations.
Despite our best efforts to curb fatalities, it is with deep regret that
I report that five of our colleagues died in work-related incidents
during the quarter. Those who died were: Zanekhaya Meteawdaba
(belt attendant, Doornkop), Lefy David Ntsihlele (engineering assistant,
Doornkop), Johannes Leepile and Zukisa Mentile (both winch operators
at Kusasalethu) and Lisene Phidalis Rankopane (boilermaker aide at
Bambanani West). I would like to extend my deepest condolences to
their families, friends and colleagues.
Operations that showed significant improvements in safety trends
during the quarter were Tshepong, Bambanani and Evander. In
addition, Target 1, Target 3, Kalgold, Joel, Phakisa and Masimong are
fatality-free for the year to date.
Other significant safety achievements during the quarter were the
following:
•
Kalgold operations
2 500 000 fatality-free shifts
•
Harmony One Plant
1 250 000 fatality-free shifts
•
Target 1 shaft
1 000 000 fatality-free shifts
•
Masimong
2 237 688 fall of ground
fatality-free shifts
•
Doornkop
4 897 318 fall of ground
fatality-free shifts.
Health
Our pro-active approach to the health and wellness of our employees
continue and we are continually investing in healthcare through
policies, procedures and training, to achieve the optimal consolidated
health and business solution for employees’ wellness and productivity
improvement.
See our 2011 Sustainable Development Report for more details on our
website www.harmony.co.za.
Gold market
Although the gold price received decreased from R438 183/kg in the
December 2011 quarter to R419 649/kg in the March 2012 quarter, a
4% variance, the R/kg gold price still provides us with a strong margin.
The US dollar gold price remained fairly constant at US$1 688/oz,
marginally up from the US$1 683/oz recorded in the December 2011
quarter. We believe that the gold price will strengthen in the long term
as the same fundamentals are still in place and the uncertainty in the
world-wide markets continues to support a higher gold price.
As we have no control over the gold price or the strength of the rand
we have to continue to focus on factors within our control, such as
safety, productivity, production and cost control.
Operational results
Gold production decreased by 18% (1 965kg) in the March 2012 quarter
to 8 753kg from 10 718kg in the December 2011 quarter. The rand per
kilogram unit cost for the March 2012 quarter increased by 18% from
R249 356/kg in the December 2011 quarter to R293 842/kg in the
quarter under review. This was due to an 18% decrease in the gold
produced.
A number of factors contributed to a weaker than expected
performance during the quarter:
• The festive season and public holiday disruptions associated with
the March 2012 quarter;
• Safety stoppages;
• Shifts lost due to the one day protected strike of the Congress of
South African Trade Unions (COSATU);
• High rainfall in Papua New Guinea impacted gold production at
Hidden Valley negatively;
• The upgrade of the infrastructure at Doornkop resulted in gold
production at this shaft being 44% lower quarter on quarter
(as guided in February 2012);
• Lower than expected recovered grades at most of our shafts
contributed to a 13% decline in underground grade. Face grades
are in line with geo-statistical models and, apart from Bambanani
and Target 3, the face grades and shaft call factors at all the shafts
improved. Belt grades, across almost all operations, were not in
line with our plans – mainly as a result of the square metres not
being blasted due to safety stoppages and high grade panels
underperforming.
Disposal of interest in Rand Uranium and Evander
Investment in Rand Uranium (Pty) Limited
The sale transaction with Gold One International Limited (Gold One) was
concluded on 6 January 2012, with the first payment of US$24 million
(R193 million) being received on that day. The outstanding amount as
at 31 March 2012 was R108 million. Subsequent to the March 2012
quarter-end, additional payments were received from Gold One in
respect of the sale.
4
Results for the third quarter FY12
ended 31 March 2012
Evander Gold Mines Limited
A sale of share and claims agreement was signed on 30 January 2012
with Pan African Resources plc and Witwatersrand Consolidated
Gold Resources Limited (the Consortium). The disposal will be for
an aggregate purchase consideration of R1.7 billion, less certain
distributions made by Evander to Harmony between 1 April 2012 and
the close of the transaction.
The transaction is subject to, among others, the following conditions
precedent:
• the Consortium raising the required funding comprising of debt
and/or equity;
• each of the Consortium members obtaining the requisite
shareholder approval for the acquisition; and
•
obtaining all relevant regulatory approvals.
Wafi-Golpu
Eight drilling rigs were operating by the end of the quarter. Two of
which were engaged on geotechnical assessment for the proposed
decline and mine infrastructure locations and six were engaged on
further definition of the Golpu orebody. The initial Golpu pre-feasibility
report will be subject to various internal discussions and review between
Harmony and its joint venture partner, Newcrest Mining Limited.
The study gating process with technical experts from both companies
as well as external independent reviewers for each key discipline
commenced in April 2012. The outcomes of the pre-feasibility study
will be shared with investors during the September 2012 quarter.
Environmental management
Renewable energy initiatives and carbon trading
Harmony has initiated a number of energy efficiency projects which
have resulted in emission reductions for the group. In FY11, Harmony
reduced its electricity consumption by 48.5GWh, decreasing emissions
by 48 500t CO
2
e (CO
2
e= carbon dioxide equivalents). The Company
has identified many other projects to implement. To this end, Harmony
and Nedbank are in the process of registering three projects under the
clean development mechanism for carbon trading.
The Free State rehabilitation programme
The Free State rehabilitation programme has been geared towards
reducing environmental liability, eliminating potential safety and
health exposures to both our people and society in general, as well as
assisting the Free State Province in meeting some of its socio-economic
imperatives especially job creation.
The Free State rehabilitation programme is progressing very well.
In the year to date, rehabilitation work has been performed at the
following sites:
•
Virginia 2 Shaft, its plant and hostel;
•
Brand 1, 2 and 3 shafts;
• Saaiplaas plant;
•
Saint Helena 2 shaft and hostel;
•
Saint Helena 4 shaft;
•
Saint Helena plant;
•
Steyn 1 shaft; and
•
Freddies 7 shaft.
These initiatives coupled with the Masimong hostel conversion
project resulted in a total reduction in our rehabilitation liabilities
of R60 million. This represents a 3% reduction of Harmony’s overall
rehabilitation liability.
Other initiatives underway that will further contribute to the reduction
of the rehabilitation liability include:
•
Reclaiming of waste rock dumps;
• Slimes retreatment through Saaiplaas plant which liberates a
surface footprint and results in an improved footprint on the
placement dam.
Launch of Harmony’s employees share trust:
The employee share trust was successfully launched on 15 March 2012
with a lot of excitement from organised labour representatives and
employees in general. The trust will be known as the Tlhakanelo
Employee Share Trust.
Conclusion
During the next quarter we will continue to improve our safety
performances across the company to reduce stoppages. To ensure
an immediate uplift in grade, the top 10 higher grade panels at each
operation will be focused on. A standardised short interval control
monitoring initiative has also been rolled out to all the Harmony
operations at the beginning of April 2012. As a result, production
performances will be monitored on a daily basis, assisting us in
identifying potential production challenges and addressing these
immediately. In addition, we will increase the discipline on clean
mining.
Graham Briggs
Chief executive officer
5
Financial overview
Net profit
The net profit for the March 2012 quarter was R1 014 million,
3% lower than the previous quarter. This was due to the gross profit
being 62% lower at R501 million offset by a deferred tax credit of
R652 million.
The net profit for the nine months ended 31 March 2012 was
R2 538 million compared to R659 million for the corresponding nine
months of the previous year. This was as a result of the significant
higher gold price received for the period of R418 749/kg versus
R300 386/kg the previous year.
Taxation
Included in the large deferred taxation credit is an amount of
R605 million related to the change in the mining tax rate formula.
Prior to the change, some of our subsidiaries were exempt from paying
Secondary Tax on Companies (STC) when declaring a dividend, but had
to pay a higher mining tax rate.
With the repeal of STC and the introduction of the Dividend Tax, the
higher gold mining tax rate formula was removed. The change in the
mining tax rate affected the calculation of deferred tax, resulting in
lower deferred tax balances.
The lower statutory tax rate would result in a lower tax liability over the
life of mine and therefore a lower average deferred tax rate. Applying
these lower rates to the temporary differences balances at the
beginning of the year will result in a change in estimate of R605 million
which has been credited to the taxation line in the income statement
in the quarter ended 31 March 2012.
Discontinued operations and assets and liabilities of disposal
group classified as held for sale
Evander Gold Mines Limited has been classified as a disposal group held
for sale following the signing of a sales agreement on 30 January 2012.
It has also been classified as a discontinued operation. The comparative
information in the income statement for all periods shown has been
re-presented accordingly.
Earnings per share
Total basic earnings per share for the March 2012 quarter decreased
from 243 SA cents to 235 SA cents per share. Total headline earnings
per share decreased from earnings of 242 SA cents per share to
234 SA cents per share.
For the nine month period to March 2012, total headline earnings per
share amounts to 571 SA cents per share compared to 192 SA cents
per share for the corresponding period in the previous year.
Capital
Total capital expenditure for the March 2012 quarter was R767 million,
a R15 million decrease in comparison to the December 2011 quarter
(R782 million). Capital expenditure at most SA operations decreased
with Bambanani and Phakisa being the exceptions. Capital at
Bambanani increased by R11 million for the backfill plant. Total capital
spent at Hidden Valley increased by R29 million and Wafi-Golpu
increased by R34 million.
Deferred tax liabilities
The change in the deferred tax rates (discussed above under Taxation)
resulted in the reduction of the deferred tax liabilities.
Cash flow
The strong cash generated by operating activities for the nine months
ended March 2012 of R3.2 billion paid for capital expenditure of
R2.2 billion and reduced the net debt significantly.
Dividend Tax (DT)
The Minister of Finance announced in his budget speech in
February 2012 that DT will be implemented effective 1 April 2012,
at a rate of 15%. The dividend tax replaces the current Secondary
Tax on Companies (STC). While STC was payable by the Company,
the DT is normally levied on the shareholder, or the person
entitled to the benefit of the dividend.
According to the new legislation, regulated intermediaries
(e.g. share registrars and stockbrokers) will withhold the
DT amount before the dividend is paid out. All South African
companies and several other bodies are exempt from DT, while
South African natural person shareholders will be liable for
DT at 15%.
Foreign investors may be eligible for a reduced rate or be able
to claim credit from taxes withheld depending on the relevant
double tax treaty between South Africa and the relevant country.
The legislation allows for credits accumulated under STC to
be carried forward and may be utilised within three years of
the introduction of DT. Harmony had STC credits amounting
to R151 million at 31 March 2012 which will be available for
offset against future dividends. This means that no DT needs to
be withheld on the next R151 million of dividend paid out by the
Company, irrespective of the category of shareholder. If such a
shareholder is a resident company these credits can be passed on
to their beneficial shareholders.
6
Results for the third quarter FY12
ended 31 March 2012
Operational overview
GROUP OPERATIONAL RESULTS
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
4 595
4 542
1
Grade (total)
g/t 1.90
2.36
(20)
Underground
grade g/t 4.24
4.85
(13)
Gold produced
Kg
8 753
10 718
(18)
Cash operating costs R/kg
293 842
249 356
(18)
Operating profit
R’000 1 122 827 2 077 067
(46)
Continuing operations (excludes Evander)
March
December
%
Indicator Units
2012
2011
variance
Tonnes
000
4 423
4 388
1
Grade (total)
g/t
1.78
2.24
(21)
Underground grade
g/t
4.06
4.70
(14)
Gold produced
Kg
7 891
9 824
(20)
Cash operating costs
R/kg
302 215
252 602
(20)
Operating profit
R’000
948 916 1 881 458
(50)
Gold production was 18% lower than the previous quarter at 8 753kg.
An estimated 600 kilograms were lost due to safety stoppages alone.
In addition, the operations’ grade performance was poor, with overall
recovered grade being 20% lower than the December 2011 quarter
at 1.90g/t and underground grade being 13% lower at 4.24g/t. The
reasons for the underperformance in grade are the following:
•
belt grades, across almost all operations, were not in line with our
plans – mainly as a result of the square metres not being blasted
due to safety stoppages and high grade panels underperforming;
•
more development waste was hoisted with ore at Kusasalethu and
Masimong (the mixing of waste with ore is being addressed at
both operations);
• One Plant – which processes the ore from Tshepong, Phakisa,
Masimong, Bambanani, Steyn 2 and Unisel – had an exceptional
plant call factor of 115% in December 2011. The March 2012
quarter is therefore much lower and more normalised at 104%;
• in the Free State, where one fatality occurred, we had a total of
eight Section 54* safety-related stoppages, resulting in the loss
of 368 kilograms. On average, following a Section 54* stoppage,
it takes up to three days to safely restart operations. After one
reportable accident at Unisel, Bambanani, Steyn 2, West Shaft and
Unisel were all stopped as they are all the responsibility of one
general manager. This resulted in a production loss of 21 days
(cumulative);
•
at Doornkop, 17 production days on South Reef (high grade) were
lost due to the infrastructure upgrade announced in February 2012,
while the lower grade Kimberley Reef continued to be mined,
resulting in a drop in face grade; and at Joel, 14 production days
were lost due to a guide rope repair in North Shaft, resulting in ore
tonnage being locked up underground; and
• at Hidden Valley production was adversely impacted by high
rainfall during the quarter, impeding access to high grade ore.
* In terms of the Mine Health and Safety Act 29 of 1996.
The increase in tonnes milled was insufficient to offset the decrease in
recovered grade and consequently, gold production was 18% lower
quarter on quarter at 8 753kg. Cash operating costs increased to
R293 842/kg, a consequence of lower gold production.
Operating profit was lower at R1.1 billion due both to the decline in
gold production and a 4% decrease in the average gold price received
to R419 649/kg.
An improved safety performance, increased focus on the mining of
the top 10 higher grade panels at each operation, daily monitoring of
production performances and an increased focus on clean mining will
result in improved production results in the June 2012 quarter.
BUILD-UP AND STEADY OPERATIONS
Doornkop
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
158
232
(32)
Grade g/t
3.16
3.87
(18)
Gold produced
Kg
500
897
(44)
Cash operating costs
R/kg
401 952
237 007
(70)
Operating profit
R’000
15 663
179 225
(91)
During the past quarter, gold production at Doornkop was affected
by safety stoppages relating to two fatalities and the upgrade of the
South Reef’s infrastructure. The temporary production interruption
due to the upgrade is typical of a newly built operation. In a new mine,
as production builds up, commissioning challenges are experienced.
We have a lot of confidence in the geology and grade of South Reef
and the upgrade allows us to exploit more of the developed South
Reef reserves at an improved rate in future.
Tonnes decreased by 32% to 158 000t, while the recovery grade
declined to 3.16g/t, as less of the higher grade South Reef was mined.
Due mainly to lower gold production, cash operating costs increased
to R401 952/kg from R237 007/kg in the previous quarter.
Lower production, higher costs and a lower average Rand gold price
received resulted in lower operating profit of R16 million.
Kusasalethu
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
273
256
7
Grade g/t
4.47
4.95
(10)
Gold produced
Kg
1 221
1 268
(4)
Cash operating costs
R/kg
289 818
283 053
(2)
Operating profit
R’000
167 968
198 948
(16)
At Kusasalethu tonnes milled increased by 7% to 273 000t due to
more development waste, which was hoisted in the previous quarter,
being processed in the current quarter. This resulted in a 10% decrease
in the recovered grade to 4.47g/t.
A safety stoppage in March 2012 resulted in further production losses.
Cash operating cost increased slightly to R289 818/kg. An operating
profit of R168 million was recorded, 16% lower than the previous
quarter.
7
Phakisa
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
129
126
2
Grade g/t
4.78
5.22
(8)
Gold produced
Kg
616
658
(6)
Cash operating costs
R/kg
328 601
299 804
(10)
Operating profit
R’000
55 374
93 819
(41)
Phakisa increased tonnes milled from 126 000t to 129 000t quarter
on quarter. Recovered grade decreased by 8% to 4.78g/t. During the
March 2012 quarter 616kg of gold was produced, a decrease of 6%
quarter on quarter due to the decline in the grade.
Cash operating costs increased by 10% to R328 601/kg, due to lower
gold production and additional labour costs (crews from Bambanani,
post its restructuring, were transferred to Phakisa). An operating profit
of R55 million was generated during the quarter.
Hidden Valley (held in Morobe Mining Joint Venture – 50% of
attributable production reflected)
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
418
474
(12)
Grade g/t
1.17
1.72
(32)
Gold produced
Kg
490
816
(40)
Cash operating costs
R/kg
427 753
268 500
(59)
Operating profit
R’000
18 910
188 062
(90)
Hidden Valley produced 490kg of gold and 5 319kg of silver at a cash
cost of R427 753/kg. This compares with 816kg of gold and 8 564kg
of silver produced in the December 2011 quarter at a cash cost of
R268 500/kg.
Gold production was adversely affected by high rainfall during
the months of January and February 2012, which impeded access to
high-grade ore.
Increased reliance on low-grade oxide stockpiles during the period
resulted in both lower mill throughput and lower recoveries, also
contributing to lower overall gold and silver production.
Lower gold production was the main contributor to the increase in cash
costs per ounce. Trucking of ore to the mill continues to supplement
the use of the overland conveyor system and adds to the high-cost
profile.
Masimong
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
238
232
3
Grade g/t
3.26
3.85
(15)
Gold produced
Kg
776
894
(13)
Cash operating costs
R/kg
264 233
240 999
(10)
Operating profit
R’000
119 556
178 560
(33)
Masimong increased tonnes milled by 3% during the current quarter
to 238 000t, at a lower recovered grade of 3.26g/t, which resulted
in a 13% decrease in gold production to 776kg. During the previous
quarter it was identified that the reef ore pass system is beyond
rehabilitation and a new ore pass will be developed. Until such time as
the new ore pass is completed, reef and waste will be mixed and will
affect the grade in the short term. This development has started and
will be completed during the September 2012 quarter.
Cash operating costs were 10% higher at R264 233/kg due to lower
gold production. Operating profit declined to R120 million due to
lower gold production and a lower gold price received.
Target 1
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
190
208
(9)
Grade g/t
4.54
4.91
(8)
Gold produced
Kg
862
1 021
(16)
Cash operating costs
R/kg
240 175
202 816
(18)
Operating profit
R’000
148 186
240 255
(38)
Tonnage was down 9% at 190 000t, due to load-haul-dump trucks
undergoing scheduled maintenance, which reduced loading from the
massive stopes.
Recovered grade decreased to 4.54g/t. Due to lower tonnage and
grade, the gold production declined by 16% to 862kg. Cash operating
costs were R240 175kg, 18% higher than in the December 2011
quarter, mainly as a result of lower gold production. An operating
profit of R148 million was recorded, a 38% decrease on the previous
quarter, resulting both from lower gold production and a lower gold
price received.
Target 3
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
82
76
8
Grade g/t
3.61
3.89
(7)
Gold produced
Kg
296
296
–
Cash operating costs
R/kg
354 581
350 851
(1)
Operating profit
R’000
20 423
24 174
(16)
Gold production from Target 3 remained flat at 296kg, with an increase
of 8% in tonnage to 82 000t offsetting the effect of a decline in the
recovered grade to 3.61g/t.
Operating profit of R20 million was recorded compared to R24 million
during the previous quarter, the decline due to the lower gold
price received during the quarter. Cash operating costs were stable
at R354 581/kg.
Tshepong
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
323
306
6
Grade g/t
4.02
5.08
(21)
Gold produced
Kg
1 297
1 555
(17)
Cash operating costs
R/kg
244 231
203 708
(20)
Operating profit
R’000
225 386
371 743
(39)
Tshepong increased tonnes milled by 6% to 323 000t.
8
Results for the third quarter FY12
ended 31 March 2012
Recovered grade was lower at 4.02g/t compared to the exceptional
5.08g/t in the previous quarter. Management is investigating ways
to improve the waste/reef split from the decline, which currently
negatively impacts on the recovered grade.
Tshepong produced 1 297kg for the quarter, a 17% reduction quarter
on quarter.
Cash operating costs increased by 20% to R244 231/kg, a function of
lower gold production. Operating profit was R225 million.
OTHER OPERATIONS
Bambanani
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
20
25
(20)
Grade g/t
8.35
8.56
(3)
Gold produced
Kg
167
214
(22)
Cash operating costs
R/kg
494 916
564 808
12
Operating loss
R’000
(12 782)
(30 458)
58
Bambanani had a challenging quarter. In terms of a Section 54*
stoppage imposed by the Department of Mineral Resources (DMR)
following a fatality at West shaft, Bambanani, as well as Steyn 2, West
Shaft and Unisel were stopped for 21 days as one general manager is
responsible for all of these shafts. To safely resume operations after a
stoppage can take up to three days.
Recovered grade was 8.35g/t, a decrease of 3% due to the decrease in
face grade values. As a result of lower volumes and a decline in grade,
only 167kg of gold was produced for the quarter.
Cash operating costs decreased to R494 916/kg as the restructuring
process of only mining the shaft pillar in future is being finalised, but
remained very high due to the low gold production. An operating loss
of R13 million was recorded compared to a loss of R30 million in the
December 2011 quarter.
Steyn 2
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
11
15
(27)
Grade g/t
6.91
7.53
(8)
Gold produced
Kg
76
113
(33)
Cash operating costs
R/kg
447 842
337 593
(33)
Operating (loss)/profit
R’000
(2 379)
13 010
>(100)
Steyn 2 was also adversely affected by the 21-day stoppage (refer to the
Bambanani commentary above) and a subsequent three-day safe start-
up. Only 11 000t were milled in the March 2012 quarter. The transport
of the ore is a constraint at Steyn 2 until West Shaft’s infrastructure
upgrade to facilitate more hosting capacity has been completed. This is
expected to be completed by the end of June 2012.
* In terms of the Mine Health and Safety Act 29 of 1996.
Evander
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
123
117
5
Grade g/t
6.75
7.19
(6)
Gold produced
kg
830
841
(1)
Cash operating costs
R/kg
214 901
214 379
–
Operating profit
R’000
169 427
183 652
(8)
Evander increased tonnes milled by 5% to 123 000t during the
March 2012 quarter, while the recovered grade was 6% lower at
6.75g/t. Gold production was slightly lower at 830kg due to the
decrease in grade.
Cash operating costs were stable at R214 901/kg for the quarter,
while the operating profit decreased by 8% quarter on quarter to
R169 million, due both to lower production and a lower gold price
received.
Joel
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
113
150
(25)
Grade g/t
4.03
4.85
(17)
Gold produced
kg
455
727
(37)
Cash operating costs
R/kg
281 404
199 586
(41)
Operating profit
R’000
54 303
178 690
(70)
Unplanned rope guide repairs in North Shaft caused a 14-day stoppage
at Joel, resulting in ore tonnage being locked up underground. Some
113 000t of ore were milled, 25% less than in the previous quarter,
while recovered grade was 17% lower at 4.03g/t.
Due to lower volume and grade, gold production declined to 455kg
from the previous quarter’s 727kg. Cash operating costs increased
to R281 404/kg due to lower gold production. Operating profit of
R54 million was generated during the quarter.
Unisel
March
December
%
Indicator Units
2012
2011
variance
Tonnes milled
000
90
100
(10)
Grade g/t
3.69
4.62
(20)
Gold produced
Kg
332
462
(28)
Cash operating costs
R/kg
356 738
276 102
(29)
Operating profit
R’000
19 679
77 308
(75)
Unisel’s tonnage decreased by 10% to 90 000t. Unisel was also subject
to a safety stoppage due to a fatality that occurred at Bambanani West.
Unisel’s grade normalised to 3.69g/t in the quarter under review from
an abnormally higher grade of 4.62g/t achieved in the December 2011
quarter. Gold production was 28% lower than the previous quarter
due to lower volume and grade.
Cash operating costs increased to R356 738/kg as a result of lower
gold production. Operating profit of R20 million was recorded for
the quarter.
9
TOTAL SOUTH AFRICAN SURFACE OPERATIONS
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
2 427
2 225
9
Grade g/t 0.34
0.43
(21)
Gold produced
Kg 835
956
(13)
Cash operating costs R/kg
275 214
240 183
(15)
Operating profit
R’000
123 113
180 079
(32)
Surface sources increased tonnage by 9% to 2 427 000t, the main
contribution coming from the Phoenix tailings. Gold production,
however, was lower at 835kg due to a 21% decline in the recovered
grade to 0.34g/t.
Cash operating costs increased to R275 214/kg due to the lower gold
output. The South African surface sources generated an operating
profit of R123 million, collectively, 32% lower than the December 2011
quarter as a result of lower gold output and a lower gold price received.
Kalgold
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
310
331
(6)
Grade g/t
0.73
0.82
(11)
Gold produced
Kg
225
273
(18)
Cash operating costs
R/kg
323 222
268 462
(20)
Operating profit
R’000
25 607
41 495
(38)
Kalgold milled 310 000t during the quarter at a recovered grade of
0.73g/t. This represented decreases of 6% and 11%, respectively, when
compared to the December 2011 quarter. Gold production declined to
225kg from the 273kg produced in the previous quarter.
Kalgold plant is replacing and repairing the carbon in leach (CIL)
tanks, carbon regeneration circuit and the elution circuit. Satisfactory
progress has been made on the CIL project during the quarter.
Cash operating costs increased by 20% to R323 222/kg due to lower
gold production, additional repair work during the quarter and the
rental costs of mobile crushers. As a result, the operating profit
decreased to R26 million for the quarter.
Phoenix (tailings)
March
December
%
Indicator Units
2012
2011
variance
Tonnes
000
1 256
1 085
16
Grade g/t
0.16
0.19
(16)
Gold produced
Kg
200
207
(3)
Cash operating costs
R/kg
241 480
236 551
(2)
Operating profit
R’000
39 159
39 457
(1)
Phoenix tailings increased tonnage by 16% to 1 256 000t. However,
the recovered grade decreased to more normal 0.16g/t.
Surface dumps (includes Evander surface sources)
March
December
%
Indicator Units
2012
2011
variance
Tonnes 000
861
809
6
Grade g/t
0.48
0.59
(19)
Gold produced
Kg
410
476
(14)
Cash operating costs
R/kg
265 324
225 544
(18)
Operating profit
R’000
58 347
99 127
(41)
Tonnage from the surface dumps increased by 6% during the
March 2012 quarter to 861 000t. Recovered grade was 0.48g/t
compared with the previous quarter’s 0.59g/t, a consequence of most
sources delivering lower grade material.
The lower recovered grade resulted in a reduction in gold production
to 410kg.
Cash operating costs increased by 18% quarter on quarter to
R265 324/kg. Operating profit of R58 million was generated, 41%
lower than the December 2011 quarter due to the lower output and a
decrease in the gold price.
10
Results for the third quarter FY12
ended 31 March 2012
Development
The main purpose of development is to explore the possibilities of future mining operations. A development programme is vital in the life of a
mine. The on reef development grade on a shaft is an indication of the grades that will be mined in future. Important information is derived, such
as expected geological structures, dip of the ore body and the channel width.
Depending on the shaft layout – such as raise line length and spacing – ledging and stoping will take place in approximately 18 to 36 months
after on reef development.
Therefore the target areas for development are extremely important to prove the existence of ore of sufficient mineral content to mine profitably
and to continuously upgrade the resources to reserves.
Mineral reserves block grades vs development grades
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.
Doornkop
There was a decrease in the development grade during the current
quarter which is in line with expectations of the areas being developed
on 202 level. On reef development was also stopped for the period
in which the shaft infrastructure was being upgraded and this resulted
in limited new information becoming available during the quarter. All
on reef development has been re-started on the South Reef and better
results are expected in the next quarter.
Kusasalethu
The quarter on quarter development grade has improved and the
grades intersected continue to support the ore reserve estimates.
Phakisa
There was further progress with the development towards the north
and these areas continue to return good grades, as expected. This
resulted in an improved development grade for this quarter compared
to the previous quarter.
Masimong
Basal Reef and B Reef development grades remained below expectation
for the quarter and the areas being developed are receiving increased
focus from the geologists in order to firm up on the geological
models and provide improved guidance with respect to development
target areas.
Target (narrow reef mining)
Quarter on quarter there was an increase in development grades of
the narrow reef mining section at Target 1 shaft due to well-developed
Dreyerskuil Reef that was intersected. At Target 3 there is still an
encouraging improvement in both the metres developed and the
development grade quarter on quarter.
Tshepong
The Basal Reef development grades were in line with expectations and
returned good results especially from the areas to the west of the shaft
and the decline area. The B Reef grade was lower quarter on quarter
due to poorly developed reef that was intersected in some of the on
reef development.
Bambanani
All of the development is taking place in the shaft pillar. There was a
quarter on quarter drop in the wide raise development grade due to
the intersection of an expected localised lower grade area.
Evander
Grade of the reef development, as expected, is down quarter on
quarter due to developing only one winze in the high grade area down
to 25 level. All the other development is at the lower grade edge of
the bigger payshoot. In the next few months more winzes will start up
within the high grade area of the main pay shoot and this will improve
the overall development grade.
Joel
The development grades at Joel remained above the reserve grade and
are in line with our expectations.
Unisel
At Unisel, the development grade of the Basal Reef improved due to
higher grade pillars that are being developed. The Leader Reef grade
was better than expected and returned encouraging results. No Middle
Reef was developed during the quarter.
11
Exploration highlights
International (Papua New Guinea)
Morobe Mining Joint Venture (50% Harmony)
Wafi-Golpu
During the March 2012 quarter, the independent review of the pre-feasibility study began, with the final report expected to be released to the
Joint Venture partners (Harmony and Newcrest Mining Limited) during the September 2012 quarter. The upgrade of the existing Wafi camp
continued during the March 2012 quarter, supporting the extensive drilling activity being undertaken. Construction and upgrade of the road to
site progressed during the quarter. Stakeholder engagement with the community, landowners and various government agencies also continued
during the period.
The pre-feasibility study remains on schedule, for completion in the first half of calendar 2012, with consideration by the Joint Venture partners to
occur thereafter. The infill drilling programme continued to encounter challenging down-hole conditions associated with the deep targets at Golpu,
with only two holes completed in the quarter under review.
Infill resource drill hole WR418 intersected a significant zone of high
grade mineralisation which returned 604m @ 2.01% Cu and 1.92g/t
Au from 922m, including 436m @ 2.56% Cu and 2.51g/t Au. This
intercept confirms the continuity of the high grade mineralisation
within the central portion of the resource. Drilling in the upper levels
of the system also intersected well-developed mineralisation.
Drill hole WR421 intersected 150 metres of highly mineralised
porphyry, highlighting the potential for defining additional higher
grade mineralisation within the upper levels. Assay results are pending.
Drilling in the north has expanded the 0.1% Cu shell, with WR408
intersecting 450m @ 0.18% Cu and 0.11g/t Au from 1 592m.
WR415W-2 drilled the southern-most part of the deposit and intersected
a large zone of low grade gold-copper mineralisation associated with
multiple porphyritic intrusions, returning 806m @ 0.30%Cu and
0.25g/t Au from 1 237m.
Results from the drilling are in line with the existing resource model. Six
drill holes are currently in progress, seeking to extend the resource base
along the eastern margins of the system and within the upper levels.
Drill testing of the highly prospective Wafi Transfer Zone began during
the quarter, and is presently testing the Kesiago and Zimake prospects.
At the Kesiago prospect, previous shallow drilling returned 389m @
Figure 1. Golpu:
(1)
Refer www.harmony.co.za for Statement
of Mineral Resources and Ore Reserves at
30 June 2011. Resource figures quoted
on 100% basis.
Note: Cu = copper; Au = gold.
12
Results for the third quarter FY12
ended 31 March 2012
0.24g/t Au and confirmed the presence of porphyry-related mineralisation. Drilling is targeting higher-grade mineralisation below this zone.
The second rig is testing the Zimake prospect, where surface sampling has confirmed the presence of outcropping gold and copper mineralisation
co-incident with an extensive surface gold-copper geochemical anomaly and large geophysical feature.
Figure 2: Wafi- transfer zone – porphyry corridor
(1)
Refer to www.harmony.co.za for Statement of Mineral Resources and Ore Reserves as at 30 June 2011. Resource figures quoted on 100% basis.
Note: Cu = copper; Au = gold.
Figure 3: Plan view of Wafi-transfer zone
(1)
Refer to www.harmony.co.za for Statement of Mineral
Resources and Ore Reserves as at 30 June 2011.
Resource figures quoted on 100% basis.
13
Hidden Valley district exploration
Drilling at Hidden Valley confirmed the continuity and extent of the
higher grade mineralisation within the current resource of the Hidden
Valley and Kaveroi lodes, with the following significant results drilled
this quarter:
•
HVDD124
81m @ 1.6g/t Au from 214m
• HVDD126
35.3m @ 9.6g/t Au from 336.7m including 12m @
23g/t Au from 345m
• HVDD131
13m @ 2.6g/t Au from 188m and 36m @ 2.4g/t Au
from 256m
• HVDD130
10.4m @ 13g/t Au from 326.6m including 4m @
31g/t Au from 333m
Results of the infill drill-hole HVDD126, designed to test for continuity
of the high grade zone upon which the Kaveroi underground concept
is based, have confirmed the geometry of this high grade domain.
Regionally, drill testing of the Heyu Prospect, located four kilometres
northwest of the Hidden Valley mine, continued. Drilling has been
successful, with the intersection of gold mineralisation. Significant
results include:
• HEYDH001
9m @ 1.4g/t Au from 287m and 8m @ 0.53g/t Au
from 592.5m
Drilling will continue to test the remainder of the prospective
geochemical targets to help define the extent of the mineralisation.
PNG exploration (Harmony 100%)
Tenement processing at the Mineral Resource Authority progressed
significantly. Six tenement renewals and five new tenement
applications were approved during the quarter. This includes EL1786,
a new tenement application at Lake Kopiago where a major porphyry
Cu-Au target has been developed.
Mt Hagen project (EL1611 and EL1596)
Exploration work at Mt Hagen focused on the Kurunga Intrusive
Complex (KIC) with the aim of completing first pass exploration over
the target by December 2012.
Drilling during the quarter was undertaken at Penamb and Bakil
prospects for a total of 2 304m. Reconnaissance Exploration
activities comprised ridge and spur soil sampling and mapping, and
stream sediment sampling at the Ganz, and Penamb east prospects
(355 samples).
Initial gold results from Penamb East are highly encouraging.
Bakil prospect (EL1611)
Assays for BKDD002, and BKD003 were received during the quarter,
but returned no significant results. No further work is planned at this
stage.
Penamb prospect (EL1596)
Drilling during the quarter at Penamb prospect comprised three
holes/1 674m (PND003-PND005). Results received include:
•
PNDD003
225m @ 0.1% Cu, 87ppm Mo from 456m
• PNDD004*
79m @ 0.1% Cu, 54ppm Mo from 60m
(*results incomplete)
Results for PNDD005 are pending. Previous results reported for the
prospect include:
•
PNDD001
285m @ 0.1% Cu, 83 Mo from 63m
• PNDD002
144m @ 0.1% Cu, 27ppm Mo from 32m
190m @ 0.1% Cu, 47ppm Mo from 193m
Drilling to date has outlined a 400m x 300m zone of 0.1% Cu
mineralisation. Chalcopyrite occurs as vein stockworks and is finely
disseminated. Alteration generally comprises weak to moderate biotite
+/– actinolite forming selvages along vein margins. At this stage the
system remains open but logging has yet to establish vectors to a
high-grade mineralised core.
Figure 4: PNDD003; 749m. Fine chalcopyrite vein stockwork and disseminations,
with biotite alteration forming vein selvages. The sample is characteristic of outer
potassic alteration off the margin of a big porphyry Cu-Au-Mo system.
Penamb East prospect (EL1611)
Ridge and spur soil sampling at the Penamb East prospect has outlined
a +0.1 g/t Au soil anomaly over 1km long and up to 400m wide, with
individual assays ranging up to 0.3 g/t Au.
Follow-up creek mapping and rock chip sampling has established
a northeast trend to the mineralisation with several veined and
mineralised outcrops identified. Sixteen of the 43 rock chips collected
returned gold grades greater than 0.1ppm. A large number of these
samples were collected from outcropping veins consisting of quartz,
white clay, pyrite and base metal sulphides, notably galena. The
samples are anomalous in As, Sb and Ag levels, confirming an
epithermal nature to the vein system.
Southern Highlands project (EL1786)
EL1786 was granted during the quarter. The tenement encompasses a
bull’s-eye magnetic target with associated Au-Cu skarn mineralisation,
and is considered highly prospective for an Ok Tedi-style copper gold
system. Work during the quarter included camp set-up and community
awareness ahead of an airborne magnetic survey starting late in April.
South Africa
Masimong exploration
Masimong 5 shaft has a vast area, greater than that which has been
mined at Masimong to date, of unknown potential to the east of a
North-South striking 270m up-throw-fault running to the east of the
shaft. The B Reef channels are expected to continue into this ground
but have not been explored.
The aim of this surface drilling is therefore to locate these channels,
with a view to developing into them. Diamond drilling of the first two
holes (ED7 and 8) has commenced. A total of 2 358m have been drilled
and the depth of the two holes is now 1 403.69m (ED8) and 1 535.3m
(ED7) below surface. Both holes are very close to the estimated position
of the B Reef.
14
Results for the third quarter FY12
ended 31 March 2012
15
Operating results
(Rand/Metric) (US$/Imperial)
South Africa
International
Discontinued
Operations
Underground production
Surface production
Three
months
ended
Bamba-
nani
Doorn-
kop
Joel
Kusasa-
lethu
Masi-
mong
Phakisa
Steyn 2
Target 1
Target 3
Tshepong
Unisel
Total
Under-
ground
Kalgold
Phoenix
Dumps
Total
Surface
Other
Total
South
Africa
Hidden
Valley
Other
Total
Continuing
Operations
Evander
Evander
Surface
Harmony
Total
Ore milled
– t’000
Mar-12
20
158
113
273
238
129
11
190
82
323
90
1 627
310
1 256
812
2 378
–
4 005
418
–
4 423
123
49
4 595
Dec-11
25
232
150
256
232
126
15
208
76
306
100
1 726
331
1 085
772
2 188
–
3 914
474
–
4 388
117
37
4 542
Gold produced
– kg
Mar-12
167
500
455
1 221
776
616
76
862
296
1 297
332
6 598
225
200
378
803
–
7 401
490
–
7 891
830
32
8 753
Dec-11
214
897
727
1 268
894
658
113
1 021
296
1 555
462
8 105
273
207
423
903
–
9 008
816
–
9 824
841
53
10 718
Gold produced
– oz
Mar-12
5 369
16 075
14 629
39 256
24 949
19 805
2 443
27 714
9 517
41 699
10 674
212 130
7 234
6 430
12 153
25 817
–
237 947
15 754
–
253 701
26 685
1 029
281 415
Dec-11
6 880
28 839
23 374
40 767
28 743
21 155
3 633
32 826
9 517
49 994
14 854
260 582
8 777
6 655
13 600
29 032
–
289 614
26 235
–
315 849
27 039
1 704
344 592
Yield
–g/tonne
Mar-12
8.35
3.16
4.03
4.47
3.26
4.78
6.91
4.54
3.61
4.02
3.69
4.06
0.73
0.16
0.47
0.34
–
1.85
1.17
–
1.78
6.75
0.65
1.90
Dec-11
8.56
3.87
4.85
4.95
3.85
5.22
7.53
4.91
3.89
5.08
4.62
4.70
0.82
0.19
0.55
0.41
–
2.30
1.72
–
2.24
7.19
1.43
2.36
Cash operating
– R/kg
Mar-12
494 916
401 952
281 404
289 818
264 233
328 601
447 842
240 175
354 581
244 231
356 738
296 184
323 222
241 480
264 365
275 157
–
293 903
427 753
–
302 215
214 901
276 656
293 842
costs
Dec-11
564 808
237 007
199 586
283 053
240 999
299 804
337 593
202 816
350 851
203 708
276 102
252 140
268 462
236 551
228 400
242 380
–
251 162
268 500
–
252 602
214 379
202 755
249 356
Cash operating
– $/oz
Mar-12
1 991
1 617
1 132
1 166
1 063
1 322
1 801
966
1 426
982
1 435
1 191
1 300
971
1 063
1 107
–
1 182
1 721
–
1 216
864
1 132
1 182
costs
Dec-11
2 170
910
767
1 087
926
1 152
1 297
779
1 348
783
1 061
969
1 031
909
877
931
–
965
1 031
–
970
824
767
958
Cash operating
– R/tonne
Mar-12
4 133
1 272
1 133
1 296
862
1 569
3 094
1 090
1 280
981
1 316
1 201
235
38
123
93
–
543
501
–
539
1 450
181
560
costs
Dec-11
4 835
916
967
1 402
929
1 566
2 543
996
1 366
1 035
1 276
1 184
221
45
125
100
–
578
462
–
566
1 541
290
588
Gold sold
– kg
Mar-12
163
461
386
1 384
755
599
74
801
275
1 262
323
6 483
207
202
379
788
–
7 271
406
–
7 677
850
32
8 559
Dec-11
218
911
749
1 201
910
670
115
1 040
302
1 583
471
8 170
274
201
418
893
–
9 063
1 066
–
10 129
818
53
11 000
Gold sold
– oz
Mar-12
5 241
14 821
12 410
44 497
24 274
19 258
2 379
25 753
8 841
40 574
10 385
208 433
6 655
6 494
12 185
25 334
–
233 767
13 053
–
246 820
27 328
1 029
275 177
Dec-11
7 009
29 289
24 081
38 613
29 257
21 541
3 697
33 437
9 710
50 895
15 143
262 672
8 809
6 462
13 439
28 710
–
291 382
34 273
–
325 655
26 299
1 704
353 658
Revenue (R’000)
Mar-12
68 282
193 030
160 893
579 738
316 727
251 284
31 007
335 149
115 179
529 302
135 155
2 715 746
87 531
84 659
159 049
331 239
–
3 046 985
174 823
–
3 221 808
356 635
13 337
3 591 780
Dec-11
96 114
398 020
328 950
523 510
401 168
295 476
50 584
455 504
132 145
698 006
207 517
3 586 994
120 867
88 082
182 727
391 676
–
3 978 670
460 778
–
4 439 448
357 866
22 703
4 820 017
Cash operating
(R’000)
Mar-12
82 651
200 976
128 039
353 868
205 045
202 418
34 036
207 031
104 956
316 768
118 437
1 954 225
72 725
48 296
99 930
220 951
–
2 175 176
209 599
–
2 384 775
178 368
8 853
2 571 996
costs
Dec-11
120 869
212 595
145 099
358 911
215 453
197 271
38 148
207 075
103 852
316 766
127 559
2 043 598
73 290
48 966
96 613
218 869
–
2 262 467
219 096
–
2 481 563
180 293
10 746
2 672 602
Inventory (R’000)
Mar-12
(1 587)
(23 609)
(21 449)
57 902
(7 874)
(6 508)
(650)
(20 068)
(10 200)
(12 852)
(2 961)
(49 856)
(10 801)
(2 796)
5 256
(8 341)
–
(58 197)
(53 686)
–
(111 883)
8 840
–
(103 043)
movement
Dec-11
5 703
6 200
5 161
(34 349)
7 155
4 386
(574)
8 174
4 119
9 497
2 650
18 122
6 082
(341)
(1 056)
4 685
–
22 807
53 620
–
76 427
(6 079)
–
70 348
Production costs
(R’000)
Mar-12
81 064
177 367
106 590
411 770
197 171
195 910
33 386
186 963
94 756
303 916
115 476
1 904 369
61 924
45 500
105 186
212 610
–
2 116 979
155 913
–
2 272 892
187 208
8 853
2 468 953
Dec-11
126 572
218 795
150 260
324 562
222 608
201 657
37 574
215 249
107 971
326 263
130 209
2 061 720
79 372
48 625
95 557
223 554
–
2 285 274
272 716
–
2 557 990
174 214
10 746
2 742 950
Operating (R’000)
Mar-12
(12 782)
15 663
54 303
167 968
119 556
55 374
(2 379)
148 186
20 423
225 386
19 679
811 377
25 607
39 159
53 863
118 629
–
930 006
18 910
–
948 916
169 427
4 484
1 122 827
profit/(loss)*
Dec-11
(30 458)
179 225
178 690
198 948
178 560
93 819
13 010
240 255
24 174
371 743
77 308
1 525 274
41 495
39 457
87 170
168 122
–
1 693 396
188 062
–
1 881 458
183 652
11 957
2 077 067
Operating
($’000)
Mar-12
(1 653)
2 025
7 024
21 721
15 461
7 161
(307)
19 163
2 641
29 147
2 545
104 928
3 312
5 064
6 965
15 341
–
120 269
2 446
–
122 715
21 911
580
145 206
profit/(loss)*
Dec-11
(3 762)
22 134
22 069
24 570
22 053
11 587
1 607
29 672
2 985
45 910
9 548
188 373
5 125
4 873
10 765
20 763
–
209 136
23 226
–
232 362
22 681
1 477
256 520
Capital (R’000)
Mar-12
54 600
62 053
14 059
101 722
44 094
78 103
14 665
59 371
21 770
64 122
17 111
531 670
18 613
2 768
1 414
22 795
9 553
564 018
82 003
78 261
724 282
42 465
–
766 747
expenditure
Dec-11
44 077
74 560
14 891
113 165
71 643
75 129
21 791
65 439
24 060
76 287
17 935
598 977
20 563
5 088
897
26 548
8 350
633 875
53 176
44 688
731 739
50 650
–
782 389
Capital ($’000)
Mar-12
7 061
8 025
1 818
13 155
5 702
10 100
1 896
7 678
2 815
8 292
2 213
68 755
2 407
358
158
2 923
1 261
72 939
10 605
10 121
93 665
5 492
–
99 157
expenditure
Dec-11
5 444
9 208
1 839
13 976
8 848
9 279
2 691
8 082
2 971
9 422
2 215
73 975
2 540
628
111
3 279
1 031
78 285
6 567
5 519
90 371
6 255
–
96 626
* Operating profit/(loss) is comparable to the term production profit/(loss) in the segment report in the financial statements and not to the operating profit line
item in the income statement.
16
Results for the third quarter FY12
and nine months ended 31 March 2012
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Rand)
Quarter ended
Nine months ended
Year ended
31 March 31 December¹
31 March¹
31 March
31 March¹
30 June¹
2012 2011 2011 2012 2011 2011
Figures in million
Note
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Continuing operations
Revenue
3 222
4 439
2 761
11 235
8 443
11 596
Cost of sales
2
(2 721)
(3 116)
(2 414)
(8 811)
(7 473)
(10 699)
Production costs
(2 273)
(2 558)
(1 928)
(7 271)
(6 144)
(8 504)
Amortisation and depreciation
(431)
(497)
(392)
(1 373)
(1 172)
(1 609)
Impairment
of
assets
– – – – –
(264)
Employment termination and
restructuring
costs
(19) (17) (26) (70)
(136)
(136)
Other
items
2 (44) (68) (97) (21)
(186)
Gross profit
501
1 323
347
2 424
970
897
Corporate, administration
and other expenditure
(96)
(85)
(84)
(261)
(258)
(322)
Social
investment
expenditure
(22) (14) (27) (50) (66) (82)
Exploration
expenditure
(143) (99) (75) (339) (225) (324)
Profit on sale of property,
plant and equipment
–
2
5
28
22
27
Other (expenses)/income – net
(5)
11
(7)
24
(55)
(21)
Operating profit
235
1 138
159
1 826
388
175
Loss from associates
–
–
(24)
–
(51)
(51)
Reversal of impairment/(impairment)
of investment in associate
3
6
2
(160)
56
(160)
(142)
Net gain on financial instruments
36
61
3
73
108
129
Gain on farm-in option
–
–
–
–
273
273
Investment
income
25 22 62 64
110
133
Finance
cost
(65) (80) (63) (214) (185) (268)
Profit/(loss) before taxation
237
1 143
(23)
1 805
483
249
Taxation
636 (256)
299 323 250 387
Normal
taxation
(16) (60) (5) (115) (26) (27)
Deferred
taxation
4 652 (196)
304 438 276 414
Net profit from
continuing
operations
873 887 276 2 128 733 636
Discontinued operations
Profit/(loss) from
discontinued
operations
3 141 159 (38) 410 (74) (19)
Net profit for the period
1 014
1 046
238
2 538
659
617
Attributable to:
Owners of the parent
1 014
1 046
238
2 538
659
617
Earnings per ordinary share (cents)
5
Earnings from continuing operations
202
206
64
494
171
148
Earnings/(loss) from
discontinued
operations
33 37 (9) 95
(17) (4)
Total
earnings
235 243 55 589 154 144
Diluted earnings per
ordinary share (cents)
5
Earnings from continuing operations
202
205
64
492
171
148
Earnings/(loss) from
discontinued
operations
32 37 (9) 95
(17) (4)
Total
diluted
earnings
234 242 55 587 154 144
¹ The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 3 in this regard.
The accompanying notes are an integral part of these condensed consolidated financial statements.
17
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Rand)
Quarter ended
Nine months ended
Year ended
31 March
31 December
31 March
31 March
31 March
30 June
2012 2011 2011 2012 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Net profit for the period
1 014
1 046
238
2 538
659
617
Other comprehensive
(loss)/income for the period,
net of income tax
(153)
179
6
981
(50)
368
Foreign exchange translation
(157)
212
22
979
(3)
470
Gain/(loss) on fair value movement
of available-for-sale investments
4
(33)
(16)
2
(47)
(102)
Total comprehensive income for the period
861
1 225
244
3 519
609
985
Attributable to:
Owners of the parent
861
1 225
244
3 519
609
985
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Rand) (Unaudited)
for the nine months ended 31 March 2012
Share
Other
Retained
Figures in million
capital
reserves
earnings
Total
Balance – 30 June 2011
28 305
762
1 093
30 160
Issue of shares
24
–
–
24
Share-based
payments
– 72 – 72
Net profit for the period
–
–
2 538
2 538
Other comprehensive income for the period
–
981
–
981
Dividends paid
– –
(431)
(431)
Balance – 31 March 2012
28 329
1 815
3 200
33 344
Balance – 30 June 2010
28 261
258
690
29 209
Issue of shares
29
–
–
29
Share-based
payments
– 91 – 91
Net profit for the period
–
–
659
659
Other comprehensive loss for the period
–
(50)
–
(50)
Dividends paid
– –
(214)
(214)
Balance – 31 March 2011
28 290
299
1 135
29 724
The accompanying notes are an integral part of these condensed consolidated financial statements.
The unaudited financial statements for the nine months ended 31 March 2012 have been prepared by Harmony Gold
Mining Company Limited’s corporate reporting team headed by Mr Herman Perry. This process was supervised by the
financial director, Mr Frank Abbott and approved by the Board of Harmony Gold Mining Company Limited. These
financial statements have not been audited or independently reviewed.
18
Results for the third quarter FY12
and nine months ended 31 March 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
(Rand)
At At At At
31 March
31 December
30 June
31 March
2012 2011 2011 2011
Figures in million
Note
(Unaudited)
(Audited)
(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment
31 949
32 830
31 221
30 557
Intangible
assets
2 194 2 185 2 170 2 188
Restricted cash
30 31 31 27
Restricted investments
1 808 1 929 1 883 1 866
Deferred tax assets
1 042 1 179 1 149 2 310
Investments in financial assets
187
183
185
236
Inventories
165 169 172 227
Trade and other receivables
35
28
23
69
Total
non-current assets
37 410 38 534 36 834 37 480
Current assets
Inventories
1 086 990 837 954
Trade and other receivables
1 259
1 131
1 073
1 111
Income and mining taxes
142
194
139
119
Cash and cash equivalents
1 427
1 205
693
656
3 914 3 520 2 742 2 840
Assets of disposal groups classified as held for sale
3
1 326
315
268
174
Total current assets
5 240 3 835 3 010 3 014
Total assets
42 650 42 369 39 844 40 494
EQUITY AND LIABILITIES
Share capital and reserves
Share
capital
28 329 28 326 28 305 28 290
Other
reserves
1 815
1 945 762 299
Retained
earnings
3 200 2 359 1 093 1 135
Total equity
33 344 32 630 30 160 29 724
Non-current liabilities
Deferred
tax
liabilities
3 568 4 452 4 216 5 623
Provision for environmental rehabilitation
1 905
2 092
1 971
1 785
Retirement benefit obligation and other provisions
181
177
174
179
Borrowings
6 1 277 991 1 229 1 487
Total
non-current liabilities
6 931 7 712 7 590 9 074
Current liabilities
Borrowings
6 318 323 330 336
Income and mining taxes
7
3
2
17
Trade and other payables
1 543
1 684
1 746
1 343
1 868 2 010 2 078 1 696
Liabilities of disposal groups classified as held for sale
3
507
17
16
–
Total current liabilities
2 375 2 027 2 094 1 696
Total equity and liabilities
42 650
42 369
39 844
40 494
The accompanying notes are an integral part of these condensed consolidated financial statements.
19
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Rand)
Quarter ended
Nine months ended
Year ended
31 March
31 December
31 March
31 March
31 March
30 June
2012 2011 2011 2012 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Cash flow from operating activities
Cash generated by operations
682
1 566
213
3 340
1 366
2 418
Interest and dividends received
32
12
64
60
116
140
Interest
paid
(26) (36) (34) (103) (99)
(134)
Income and mining taxes refunded/(paid)
35
(149)
8
(114)
(26)
(45)
Cash generated by operating activities
723
1 393
251
3 183
1 357
2 379
Cash flow from investing activities
Decreased in restricted cash
–
–
–
–
120
116
Proceeds on disposal of investment in subsidiary
–
–
–
–
229
229
Proceeds on disposal of investment in associate
193
–
–
193
–
–
Proceeds on disposal of available-for-sale
financial
assets
– – – –
1
16
Pre-payment for Evander 6
and Twistdraai transaction
–
–
–
–
–
100
Other investing activities
(33)
3
16
(30)
20
(5)
Net additions to property,
plant and equipment
(740)
(779)
(687)
(2 187)
(2 281)
(3 110)
Cash utilised by investing activities
(580)
(776)
(671)
(2 024)
(1 911)
(2 654)
Cash flow from financing activities
Borrowings
raised
302
– 250 1 101 775 925
Borrowings
repaid
(17) (718) (17) (1 087) (130) (546)
Ordinary shares issued – net of expenses
3
11
13
23
29
44
Dividends
paid
(173)
–
– (431) (214) (214)
Cash generated/(utilised)
by financing activities
115
(707)
246
(394)
460
209
Foreign currency translation adjustments
(36)
(30)
(7)
(31)
(20)
(11)
Net increase/(decrease) in cash and
cash
equivalents
222 (120)
(181) 734 (114) (77)
Cash and cash equivalents
– beginning of period
1 205
1 325
837
693
770
770
Cash and cash equivalents
– end of period
1 427
1 205
656
1 427
656
693
The accompanying notes are an integral part of these condensed consolidated financial statements.
20
Results for the third quarter FY12
and nine months ended 31 March 2012
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 31 March 2012 (Rand)
1. Accounting policies
Basis of accounting
The condensed consolidated financial statements for the nine months ended 31 March 2012 have been prepared in accordance with IAS 34,
Interim Financial Reporting, JSE Listings Requirements and in the manner required by the Companies Act of South Africa. They should be
read in conjunction with the annual financial statements for the year ended 30 June 2011, which have been prepared in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are
consistent with those described in the annual financial statements, except for the adoption of applicable revised and/or new standards issued
by the International Accounting Standards Board.
2.
Cost of sales
Quarter ended
Nine months ended
Year ended
31 March
31 December
1
31
March
1
31 March
31 March
1
30
June
1
2012 2011 2011 2012 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Production costs – excluding royalty
2 231
2 499
1 897
7 138
6 059
8 408
Royalty
expense
42 59 31 133 85 96
Amortisation and depreciation
431
497
392
1 373
1 172
1 609
Impairment of assets
–
–
–
–
–
264
Rehabilitation expenditure
2
(43)
1
5
(37)
13
43
Care and maintenance cost
of restructured shafts
20
20
32
69
82
117
Employment termination and
restructuring costs
3
19 17 26 70
136
136
Share-based
payments
21 23 26 66 82
125
Other –
–
5
(1)
(156)
(99)
Total cost of sales
2 721
3 116
2 414
8 811
7 473
10 699
1
The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 3 in this regard.
2
The credit in the current quarter relates to a change in estimate on areas where rehabilitation work has been performed.
3
The amounts for the 2012 financial year relates to restructuring at the Bambanani shaft.
3.
Disposal groups classified as held for sale and discontinued operations
Investment in Rand Uranium
The investment in Rand Uranium (Proprietary) Limited (Rand Uranium) was classified as held for sale in the March 2011 quarter following a
decision to sell it. The transaction with Gold One International Limited (Gold One) was concluded on 6 January 2012, with the first payment
of US$24 million (R193 million) being received on that day. The outstanding amount as at 31 March 2012 was R108 million. Subsequent
to the March 2012 quarter-end, additional payments were received from Gold One for the sale. For further information refer to note 8.
Evander Gold Mines Limited
The assets and liabilities related to Evander Gold Mines Limited (Evander), a wholly-owned subsidiary of Harmony Gold Mining Company
Limited (Harmony), have been classified as held for sale following signing of the sale of share and claims agreement on 30 January 2012
with Pan African Resources plc and Witwatersrand Consolidated Gold Resources Limited (the Consortium). The disposal will be for an
aggregate purchase consideration of R1.7 billion, excluding the proceeds of the Taung Gold Limited transaction and less certain
distributions made by Evander to Harmony between 1 April 2012 and the close of the transaction.
The transaction is subject to, among others, the following conditions precedent:
• the Consortium raising the required funding comprising of debt and/or equity;
• each of the Consortium members obtaining the requisite shareholder approval for the acquisition; and
• obtaining all relevant regulatory approvals.
The operation also meets the requirements to be classified as a discontinued operation. The comparative figures in the income statement
have been re-presented as a result.
4. Deferred taxation
The deferred tax for the March 2012 quarter includes a tax credit of R605 million, relating to a change in the gold mining tax rate formula
in South Africa. Previously some of our subsidiaries were exempt from paying Secondary Tax on Companies when declaring a dividend,
but had to pay a higher mining tax rate. With the introduction of Dividend Tax, the higher gold mining tax rate formula was repealed
resulting in lower income tax and deferred tax rates. The affected subsidiaries are Randfontein, Freegold, Evander and Kalgold.
21
5.
Earnings and net asset value per share
Quarter ended
Nine months ended
Year ended
31 March
31 December
1
31
March
1
31 March
31 March
1
30
June
1
2012 2011 2011 2012 2011 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Weighted average number
of
shares
(million)
431.3 430.5 429.5 430.6 429.1 429.3
Weighted average number
of diluted shares (million)
432.8
432.3
430.7
432.2
430.2
430.4
Total earnings per share (cents):
Basic
earnings
235 243 55 589 154 144
Diluted
earnings
234 242 55 587 154 144
Headline
earnings
234 242 91 571 192 223
– from continuing operations
201
205
100
477
214
232
– from discontinued operations
33
37
(9)
94
(22)
(9)
Diluted headline earnings
233
241
91
569
192
222
– from continuing operations
200
204
100
475
214
231
– from discontinued operations
33
37
(9)
94
(22)
(9)
Figures in million
Reconciliation of headline earnings:
Continuing operations
Net
profit
873 887 276 2 128 733 636
Adjusted for:
(Reversal of impairment)/impairment
of investment in associate*
(6)
(2)
160
(55)
160
142
Foreign exchange loss reclassified
from other comprehensive income*
–
–
–
–
47
47
Impairment of assets
–
–
–
–
–
264
Taxation effect on impairment of assets
–
–
–
–
–
(66)
Other
adjustments
–
(3) (9) (28) (26) (34)
Taxation effect on other adjustments
(1)
1
2
7
7
8
Headline
earnings
866 883 429 2 052 921 997
Discontinued operations
Net
profit/(loss)
141 159 (38) 410 (74) (19)
Adjusted for:
Profit on sale of investment
in
subsidiary
– – – –
(138)
(54)
Taxation effect of profit on sale
of investment in subsidiary
–
–
–
–
34
34
Profit on sale of property,
plant
and
equipment
– (1) (2) (2) (2) (2)
Taxation effect of profit on sale of
property, plant and equipment
–
–
1
–
1
1
Foreign exchange loss reclassified
from other comprehensive income*
–
–
–
–
84
–
Headline
earnings/(loss)
141 158 (39) 408 (95) (40)
Total headline earnings
1 007
1 041
390
2 460
826
957
1
The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 3 in this regard.
* There is no taxation effect on these items.
Net asset value per share
At At At At
31 March
31 December
30 June
31 March
2012 2011 2011 2011
(Unaudited)
(Audited)
(Unaudited)
Number of shares in issue
431 471 444
431 312 677 430 084 628 429 807 371
Net asset value per share (cents)
7 728
7 565
7 013
6 916
22
Results for the third quarter FY12
and nine months ended 31 March 2012
6. Borrowings
The Nedbank revolving credit facility was repaid in full during the December 2011 quarter. The full R850 million facility is available until
December 2013. The balance on Nedbank term facilities at the end of March 2012 quarter is R915 million.
In addition to the US$50 million drawn during the September 2011 quarter, a further US$40 million of the US$300 million syndicated revolving
credit facility was drawn during the March 2012 quarter, with US$210 million still available. The facility is repayable by August 2015 and attracts
interest at LIBOR plus 260 basis points, which is payable quarterly.
7.
Commitments and contingencies
At At At At
31 March
31 December
30 June
31 March
2012 2011 2011
2011
Figures in million
(Unaudited)
(Audited)
(Unaudited)
Capital expenditure commitments:
Contracts for capital expenditure
391
291
194
191
Authorised by the directors but not contracted for
3 032
3 373
1 504
2 175
3 423
3 664
1 698
2 366
This expenditure will be financed from existing resources and, where appropriate, borrowings.
Contingent liability
For a detailed disclosure on contingent liabilities refer to Harmony’s annual report for the financial year ended 30 June 2011, available on the
group’s website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2011, except as discussed below.
Harmony reached a mutually acceptable settlement with the plaintiff class and this settlement was found to be fair and reasonable and was
approved by the United States District Court in November 2011. A single class member has filed an appeal of the District Court’s order approving
the settlement. That appeal is currently pending in the United States Court of Appeals for the Second Circuit. The settlement amount has been
paid into escrow by the company’s insurers and will be distributed to the plaintiffs once the appeal has been finalised.
8. Subsequent events
During April 2012, an amount of R86 million was received from Gold One relating to the sale of shares in Rand Uranium. An additional
R25 million is being held in an escrow account for a period of 12 months.
9. Segment report
The segment report follows on the page 23.
10. Reconciliation of segment information to consolidated income statements
Nine months ended
31 March
31 March
1
2012 2011
Figures in million
(Unaudited) (Unaudited)
The “Reconciliation of segment information to consolidated income
statement” 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 and segment report:
Reconciliation of production profit to gross profit
Total segment revenue
12 341
9 023
Total segment production costs
(7 834)
(6 649)
Production profit per segment report
4 507
2 374
Discontinued operations
(543) (75)
Production profit from continuing operations
3 964
2 299
Cost of sales items, other than production costs and royalty expense
(1 540)
(1 329)
Gross profit as per income statements *
2 424
970
1
The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 3 in this regard.
* The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
23
SEGMENT REPORT
(Rand/Metric) (Unaudited)
for the nine months ended 31 March 2012
Production
Production
Capital
Kilograms
Tonnes
Revenue
cost
profit/(loss)
expenditure
produced
milled
31 March
31 March
31 March
31 March
31 March
31 March
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
R million
R million
R million
R million
kg
t’000
Continuing operations
South Africa
Underground
Bambanani
421 671 480 603 (59) 68 212 231
1 068
2 289 163 314
Doornkop
939 530 626 418 313 112 201 221
2 263
1 755 667 484
Joel
773 295 406 293 367 2 42 55
1 873
1 001 410 286
Kusasalethu
1 678
1 252
1 072 976 606 276 312 274
4 043
4 023 860 794
Masimong
1 032
1 045 635 571 397 474 166 129
2 466
3 453 702 678
Phakisa
753 390 585 337 168 53 227 276
1 800
1 290 368 281
Target
1 497 732 916 520 581 212 245 348
3 655
3 017 844 562
Tshepong
1 694
1 508 935 852 759 656 199 201
4 035
4 995 916
1 016
Virginia
479 539 366 451 113 88 51 63
1 134
1 793 282 470
Surface
All other surface operations
1 074 763 678 606 396 157
96
93 2 569 2 581 6 997 7 640
Total South Africa
10 340 7 725 6 699 5 627 3 641 2 098 1 751 1 891 24 906 26 197 12 209 12 525
International
Hidden
Valley
895 718 572 517 323 201 175 212 2 098 2 292 1 307 1 259
Other
– – – – – –
192 – – – – –
Total international
895 718 572 517 323 201 367 212 2 098 2 292 1 307 1 259
Total continuing operations
11 235 8 443 7 271 6 144 3 964 2 299 2 118 2 103 27 004 28 489 13 516 13 784
Discontinued operations
Evander
1 106 580 563 505 543 75 131 146
2 674
1 894 491 635
Total discontinued operations
1 106 580 563 505 543 75 131 146
2 674
1 894 491 635
Total operations
12 341 9 023 7 834 6 649 4 507 2 374 2 249 2 249 29 678 30 383 14 007 14 419
Reconciliation of the segment information to
the consolidated income statement (refer to note 10)
(1 106)
(580)
(563)
(505)
11 235
8 443
7 271
6 144
24
Results for the third quarter FY12
ended 31 March 2012
25
Operating results
(US$/Imperial)
South Africa
International
Discontinued
Operations
Underground production
Surface production
Three
months
ended
Bamba-
nani
Doorn-
kop
Joel
Kusasa-
lethu
Masi-
mong
Phakisa
Steyn 2
Target 1
Target 3
Tshepong
Unisel
Total
Under-
ground
Kalgold
Phoenix
Dumps
Total
Surface
Other
Total
South
Africa
Hidden
Valley
Other
Total
Continuing
Operations
Evander
Evander
Surface
Harmony
Total
Ore milled
– t’000
Mar-12
22
174
125
301
262
142
12
210
90
356
99
1 793
342
1 385
895
2 622
–
4 415
461
–
4 876
136
54
5 066
Dec-11
28
256
165
282
256
139
17
229
84
337
110
1 903
365
1 196
851
2 412
–
4 315
523
–
4 838
129
41
5 008
Gold produced
– oz
Mar-12
5 369
16 075
14 629
39 256
24 949
19 805
2 443
27 714
9 517
41 699
10 674
212 130
7 234
6 430
12 153
25 817
–
237 947
15 754
–
253 701
26 685
1 029
281 415
Dec-11
6 880
28 839
23 374
40 767
28 743
21 155
3 633
32 826
9 517
49 994
14 854
260 582
8 777
6 655
13 600
29 032
–
289 614
26 235
–
315 849
27 039
1 704
344 592
Yield –
oz/t
Mar-12
0.244
0.092
0.117
0.130
0.095
0.139
0.204
0.132
0.106
0.117
0.108
0.118
0.021
0.005
0.014
0.010
–
0.054
0.034
–
0.052
0.196
0.019
0.056
Dec-11
0.246
0.113
0.142
0.145
0.112
0.152
0.214
0.143
0.113
0.148
0.135
0.137
0.024
0.006
0.016
0.012
–
0.067
0.050
–
0.065
0.210
0.042
0.069
Cash operating
– $/oz
Mar-12
1 991
1 617
1 132
1 166
1 063
1 322
1 801
966
1 426
982
1 435
1 191
1 300
971
1 063
1 107
–
1 182
1 721
–
1 216
864
1 113
1 182
costs
Dec-11
2 170
910
767
1 087
926
1 152
1 297
779
1 348
783
1 061
969
1 031
909
877
931
–
965
1 031
–
970
824
779
958
Cash operating
– $/t
Mar-12
486
149
132
152
101
184
367
127
151
115
155
141
27
5
14
11
–
64
59
–
63
170
21
66
costs
Dec-11
533
103
109
157
104
175
277
112
153
116
143
133
25
5
14
11
–
65
52
–
63
173
32
66
Gold sold
– oz
Mar-12
5 241
14 821
12 410
44 497
24 274
19 258
2 379
25 753
8 841
40 574
10 385
208 433
6 655
6 494
12 185
25 334
–
233 767
13 053
–
246 820
27 328
1 029
275 177
Dec-11
7 009
29 289
24 081
38 613
29 257
21 541
3 697
33 437
9 710
50 895
15 143
262 672
8 809
6 462
13 439
28 710
–
291 382
34 273
–
325 655
26 299
1 704
353 658
Revenue ($’000)
Mar-12
8 830
24 962
20 807
74 971
40 959
32 496
4 010
43 341
14 895
68 449
17 478
351 198
11 319
10 948
20 568
42 835
–
394 033
22 608
–
416 641
46 120
1 725
464 486
Dec-11
11 870
49 156
40 626
64 654
49 545
36 492
6 247
56 255
16 320
86 204
25 629
442 998
14 927
10 878
22 567
48 372
–
491 370
56 907
–
548 277
44 197
2 804
595 278
Cash operating
($’000)
Mar-12
10 688
25 990
16 557
45 762
26 516
26 177
4 401
26 773
13 573
40 964
15 316
252 717
9 404
6 246
12 923
28 573
–
281 290
27 105
–
308 395
23 066
1 145
332 606
costs
Dec-11
14 928
26 256
17 920
44 326
26 608
24 363
4 711
25 574
12 826
39 121
15 754
252 387
9 051
6 047
11 932
27 030
–
279 417
27 059
–
306 476
22 267
1 327
330 070
Inventory ($’000)
Mar-12
(205)
(3 053)
(2 774)
7 488
(1 018)
(842)
(84)
(2 595)
(1 319)
(1 662)
(383)
(6 447)
(1 397)
(362)
680
(1 079)
–
(7 526)
(6 943)
–
(14 469)
1 143
–
(13 326)
movement
Dec-11
704
766
637
(4 242)
884
542
(71)
1 009
509
1 173
327
2 238
751
(42)
(130)
579
–
2 817
6 622
–
9 439
(751)
–
8 688
Production ($’000)
Mar-12
10 483
22 937
13 783
53 250
25 498
25 335
4 317
24 178
12 254
39 302
14 933
246 270
8 007
5 884
13 603
27 494
–
273 764
20 162
–
293 926
24 209
1 145
319 280
costs
Dec-11
15 632
27 022
18 557
40 084
27 492
24 905
4 640
26 583
13 335
40 294
16 081
254 625
9 802
6 005
11 802
27 609
–
282 234
33 681
–
315 915
21 516
1 327
338 758
Operating ($’000)
Mar-12
(1 653)
2 025
7 024
21 721
15 461
7 161
(307)
19 163
2 641
29 147
2 545
104 928
3 312
5 064
6 965
15 341
–
120 269
2 446
–
122 715
21 911
580
145 206
profit/(loss)*
Dec-11
(3 762)
22 134
22 069
24 570
22 053
11 587
1 607
29 672
2 985
45 910
9 548
188 373
5 125
4 873
10 765
20 763
–
209 136
23 226
–
232 362
22 681
1 477
256 520
Capital ($’000)
Mar-12
7 061
8 025
1 818
13 155
5 702
10 100
1 896
7 678
2 815
8 292
2 213
68 755
2 407
358
158
2 923
1 261
72 939
10 605
10 121
93 665
5 492
–
99 157
expenditure
Dec-11
5 444
9 208
1 839
13 976
8 848
9 279
2 691
8 082
2 971
9 422
2 215
73 975
2 540
628
111
3 279
1 031
78 285
6 567
5 519
90 371
6 255
–
96 626
* Operating profit/(loss) is comparable to the term production profit/(loss) in the segment report in the financial statements and not to the operating profit line
item in the income statement.
26
Results for the third quarter FY12
and nine months ended 31 March 2012
CONDENSED CONSOLIDATED INCOME STATEMENTS
(US$)
(Convenience translation)
Quarter ended
Nine months ended
Year ended
31 March 31 December¹
31 March¹
31 March
31 March¹
30 June¹
2012 2011 2011 2012 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Continuing operations
Revenue
417
548
395
1 469
1 196
1 659
Cost of sales
(351)
(385)
(345)
(1 151)
(1 059)
(1 533)
Production
costs
(294) (316) (276) (950) (870)
(1
218)
Amortisation and depreciation
(55)
(61)
(55)
(179)
(166)
(230)
Impairment of assets
–
–
–
–
–
(39)
Employment termination
and restructuring costs
(2)
(2)
(4)
(9)
(19)
(20)
Other
items
–
(6) (10) (13) (4) (26)
Gross
profit
66 163 50 318 137 126
Corporate, administration and other expenditure
(13)
(10)
(12)
(34)
(37)
(46)
Social investment expenditure
(3)
(2)
(4)
(7)
(9)
(12)
Exploration
expenditure
(18) (12) (11) (44) (32) (46)
Profit on sale of property, plant and equipment
–
–
1
4
3
4
Other (expenses)/income – net
(1)
1
(1)
3
(8)
(3)
Operating
profit
31 140 23 240 54 23
Loss from associates
–
–
(3)
–
(7)
(7)
Reversal of impairment/(impairment)
of investment in associate
1
–
(23)
7
(23)
(20)
Net gain on financial instruments
5
8
–
10
15
18
Gain on farm-in option
–
–
–
–
39
38
Investment
income
3 3 9 8
16
19
Finance
cost
(8) (10) (9) (28) (26) (38)
Profit before taxation
32
141
(3)
237
68
33
Taxation
82 (31) 42 42 35 55
Normal
taxation
(2) (7) (2) (15) (4) (3)
Deferred
taxation
84 (24) 44 57 39 58
Net profit from continuing operations
114
110
39
279
103
88
Discontinued operations
Profit/(loss) from discontinued operations
18
19
(5)
53
(10)
(2)
Net profit for the period
132
129
34
332
93
86
Attributable to:
Owners of the parent
132
129
34
332
93
86
Earnings per ordinary share (cents)
Earnings from continuing operations
26
25
9
65
24
21
Earnings/(loss) from discontinued operations
4
5
(1)
12
(2)
(1)
Total
earnings
30 30 8 77 22 20
Diluted earnings per ordinary share (cents)
Earnings from continuing operations
26
25
9
64
24
21
Earnings/(loss) from discontinued operations
4
5
(1)
12
(2)
(1)
Total diluted earnings
30
30
8
76
22
20
¹ The comparative figures are re-presented due to Evander being reclassified as a discontinued operation.
The currency conversion average rates for the quarter ended: March 2012: US$1 = R7.73 (December 2011: US$1 = R8.10, March 2011: US$1 = 6.99).
Nine months ended: March 2012: US$1 = R7.65 (March 2011: US$1 = R 7.06).
The income statement for the year ended 30 June 2011 has been extracted from the 2011 Annual Report, but is re-presented due to Evander being
reclassified as a discontinued operation.
Note on convenience translation
Except where specific statements have been extracted from the 2011 Annual Report, the requirements of IAS 21, The Effects of the Changes in
Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial statements presented on pages 26 to 30.
27
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(US$)
(Convenience translation)
Quarter ended
Nine months ended
Year ended
31 March
31 December
31 March
31 March
31 March
30 June
2012 2011 2011 2012 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Net profit for the period
132
129
34
332
93
86
Other comprehensive (loss)/income for
the period, net of income tax
(19)
22
1
128
(7)
540
Foreign exchange translation
(20)
26
3
128
–
555
Gain/(loss) on fair value movement of
available-for-sale investments
1
(4)
(2)
–
(7)
(15)
Total comprehensive income for the period
113
151
35
460
86
626
Attributable to:
Owners of the parent
113
151
35
460
86
626
The currency conversion average rates for the quarter ended: March 2012: US$1 = R7.73 (December 2011: US$1 = R8.10, March 2011:
US$1 = 6.99). Nine months ended: March 2012: US$1 = R7.65 (March 2011: US$1 = R 7.06).
The statement of comprehensive income for the year ended 30 June 2011 has been extracted from the 2011 Annual Report.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(US$) (Unaudited)
for the nine months ended 31 March 2012
(Convenience translation)
Share
Other
Retained
Figures in million
capital
reserves
earnings
Total
Balance – 30 June 2011
3 686
99
142
3 927
Issue of shares
3 – – 3
Share-based
payments
– 9 – 9
Net profit for the period
–
–
331
331
Other comprehensive income for the period
–
128
–
128
Dividends paid
– –
(56)
(56)
Balance – 31 March 2012
3 689
236
417
4 342
Balance – 30 June 2010
4 171
38
102
4 311
Issue of shares
4 – – 4
Share-based
payments
– 13 – 13
Net profit for the period
–
–
97
97
Other comprehensive loss for the period
–
(7)
–
(7)
Dividends paid
– –
(32)
(32)
Balance – 31 March 2011
4 175
44
167
4 386
The currency conversion closing rates for the period ended 31 March 2012: US$1 = R7.68 (March 2011: US$1 = R6.78).
28
Results for the third quarter FY12
and nine months ended 31 March 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
(US$)
(Convenience translation)
At At At At
31 March
31 December
30 June
31 March
2012 2011 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Audited)
(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment
4 161
4 050
4 607
4 509
Intangible
assets
286 269 320 323
Restricted
cash
4 4 5 4
Restricted
investments
235 238 278 275
Deferred
tax
assets
136 145 170 341
Investments in financial assets
24
23
27
35
Inventories
21 21 25 33
Trade and other receivables
5
3
3
10
Total
non-current
assets
4 872 4 753 5 435 5 530
Current assets
Inventories
141 122 124 141
Trade and other receivables
164
139
158
164
Income and mining taxes
18
24
21
18
Cash and cash equivalents
186
149
102
97
509 434 405 420
Assets of disposal groups classified as held for sale
173
39
40
26
Total
current
assets
682 473 445 446
Total
assets
5 554 5 226 5 880 5 976
EQUITY AND LIABILITIES
Share capital and reserves
Share
capital
3 689 3 494 4 033 4 175
Other
reserves
236 240 519 44
Retained
earnings
417 291 (102) 167
Total
equity
4 342 4 025 4 450 4 386
Non-current liabilities
Deferred
tax
liabilities
465 549 623 830
Provision for environmental rehabilitation
248
258
291
263
Retirement benefit obligation and other provisions
24
22
26
26
Borrowings
166 122 181 219
Total non-current liabilities
903
951
1 121
1 338
Current liabilities
Borrowings
41 40 49 50
Income and mining taxes
1
–
–
3
Trade and other payables
201
208
258
199
243 248 307 252
Liabilities of disposal groups classified as held for sale
66
2
2
–
Total
current
liabilities
309 250 309 252
Total equity and liabilities
5 554
5 226
5 880
5 976
The balance sheet for March 2012 converted at a conversion rate of US$1 = R7.68 (December 2011: US$1 = R 8.11, March 2011: US$1 = R6.78).
The balance sheet as at 30 June 2011 has been extracted from the 2011 Annual Report.
29
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(US$)
(Convenience translation)
Quarter ended
Nine months ended
Year ended
31 March
31 December
31 March
31 March
31 March
30 June
2012 2011 2011 2012 2011 2011
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Cash flow from operating activities
Cash generated by operations
88
193
30
437
194
346
Interest and dividends received
4
2
9
8
16
20
Interest
paid
(3) (4) (5) (13) (14) (19)
Income and mining taxes refunded/(paid)
5
(18)
1
(15)
(4)
(7)
Cash generated by operating activities
94
173
35
417
192
340
Cash flow from investing activities
Decrease in restricted cash
–
–
–
–
17
17
Proceeds on disposal of investment in subsidiary
–
–
–
–
32
30
Proceeds on disposal of investment in associate.
25
–
–
25
–
–
Pre-payment for Evander 6
and Twistdraai transaction
–
–
–
–
–
15
Other
investing
activities
(4) – 2 (4) 3 2
Net additions to property, plant and equipment
(96)
(96)
(98)
(286)
(323)
(445)
Cash utilised by investing activities
(75)
(96)
(96)
(265)
(271)
(381)
Cash flow from financing activities
Borrowings
raised
40
– 36 143 110 134
Borrowings
repaid
(2) (89) (2) (142) (18) (81)
Ordinary shares issued – net of expenses
–
1
2
3
4
6
Dividends
paid
(23)
–
– (57) (30) (30)
Cash generated/(utilised) by
financing
activities
15 (88) 36 (53) 66 29
Foreign currency translation adjustments
(4)
(4)
(5)
(4)
9
13
Net increase/(decrease) in cash and
cash
equivalents
30 (15)
(30) 95 (4) 1
Cash and cash equivalents
– beginning of period
156
164
127
91
101
101
Cash and cash equivalents
– end of period
186
149
97
186
97
102
The currency conversion average rates for the quarter ended: March 2012: US$1 = R7.73 (December 2011: US$1 = R8.10, March 2011:
US$1 = 6.99). Nine months ended: March 2012: US$1 = R7.65 (March 2011: US$1 = R 7.06).
Closing balance translated at closing rates of: March 2012: US$1 = R7.68 (December 2011: US$1 = R8.11, March 2011: US$ = R6.78).
The cash flow statement for the year ended 30 June 2011 has been extracted from the 2011 Annual Report.
30
Results for the third quarter FY12
ended
31 March 2012
Segment report (US$/Imperial) Unaudited
for the nine months ended 31 March 2012
Production
Production
Capital
Ounces
Revenue
cost
profit/(loss)
expenditure
produced
Tons
milled
31 March
31 March
31 March
31 March
31 March
31 March
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
US$ million
US$ million
US$ million
US$ million
oz
t’000
Continuing
operations
South Africa
Underground
Bambanani
55 95 63 85 (8) 10 28 33
34 336
73 593
180
346
Doornkop
123 75 82 59 41 16 26 31
72 757
56 425
735
534
Joel
101 42 53 42 48 – 6 8
60 219
32 182
452
315
Kusasalethu
219 177 140 138 79 39 41 39
129 985
129 343 948 876
Masimong
135
148 83 81 52 67 22 18
79 284
111 016
774
747
Phakisa
98 56 76 48 22 8 30 39
57 871
41 474
406
310
Target
196
104
120 74 76 30 32 49
117 512
96 999
931
620
Tshepong
221
214
122
121 99 93 26 29
129 727
160 592
1 009
1 120
Virginia
63 76 48 63 15 13 7 9
36 459
57 646
310
519
Surface
All other surface operations
141
107
88
86
53
21
9
13
82 628
82 980
7 717
8 426
Total South Africa
1 352
1 094 875 797 477 297 227 268
800 778
842 250
13 462
13 813
International
Hidden
Valley
117
102 75 73 42 29 23 30
67 452
73 690
1 442
1 389
Other
– – – – – – 25 – – – – –
Total international
117
102 75 73 42 29 48 30
67 452
73 690
1 442
1 389
Total continuing operations
1 469
1 196 950 870 519 326 275 298
868 230
915 940
14 904
15 202
Discontinued operations
Evander
145 82 74 72 71 10 17 21
85 939
60 894
539
697
Total discontinued operations
145 82 74 72 71 10 17 21
85 939
60 894
539
697
Total operations
1 614
1 278
1 024 942 590 336 292 319
954 169
976 834
15 443
15 899
31
DEVELOPMENT RESULTS (Metric)
Quarter ended March 2012
Channel
Reef
Sampled
Width
Value
Gold
Meters
Meters
(Cm’s)
(g/t)
(Cmg/t)
Tshepong
Basal 473
476
9.02
163.74
1
476
B Reef
80
42
86.14
9.97
858
All Reefs 554
518
15.27
93.39
1
426
Phakisa & Nyala
Basal 550
544
92.70
12.06
1
118
All Reefs 550
544
92.70
12.06
1
118
Total Bambanani
(Incl. Bambanani, Steyn 2)
Basal 54
54
146.80
14.18
2
082
All Reefs 54
54
146.80
14.18
2
082
Doornkop
South Reef
228
264
38.00
16.52
632
All Reefs 228
264
38.00
16.63
632
Kusasalethu
VCR Reef
537
532
78.20
27.17
2 125
All Reefs 537
532
78.20
27.17
2
125
Total Target
(Incl. Target 1 & Target 3)
Elsburg 398
246
116.54
12.18
1
419
Basal 12
28
22.00
32.35
712
A Reef
72
86
182.00
8.58
1 562
B Reef
28
42
139.00
16.07
2 233
All Reefs 509
402
126.31
11.76
1
486
Masimong
Basal 329
326
53.94
15.60
841
B Reef
91
87
88.94
4.83
430
All Reefs 420
413
61.31
12.31
755
Evander
Kimberley 448
459
52
20.872
1
085
All Reefs 448
459
51.97
20.87
1
085
Virginia
(Unisel)
Basal 133
76
191.66
10.60
2
031
Leader 229
216
217.28
5.46
1
186
All Reefs 362
292
210.61
6.68
1
406
Joel
Beatrix 112
87
224.00
6.06
1
357
All Reefs 112
87
224.00
6.06
1
357
Total Harmony
Basal
1 552
1 504
63.46
19.62
1 245
Beatrix 112
87
224.00
6.06
1
357
Leader 229
216
217.28
5.46
1
186
B Reef
199
171
100.55
9.73
978
A Reef
72
86
182.00
8.58
1 562
Elsburg 398
246
116.54
12.18
1
419
Kimberley 448
459
51.97
20.87
1
085
South Reef
228
264
38.00
16.63
632
VCR 537
532
78.20
27.17
2
125
All Reefs
3 774
3 565
83.83
15.70
1 316
DEVELOPMENT RESULTS (Imperial)
Quarter ended March 2012
Channel
Channel
Reef
Sampled
width
value
Gold
(feet)
(feet)
(inches)
(oz/t)
(in.oz/t)
Tshepong
Basal
1553
1
562
4.00
4.24
17
B Reef
263
138
34.00
0.29
10
All Reefs
1 817
1 699
6.00
2.73
16
Phakisa & Nyala
Basal
1 804
1
785
36.00
0.36
13
All Reefs
1 804
1 785
36.00
0.36
13
Total Bambanani
(Incl. Bambanani, Steyn 2)
Basal 178
178
58.00
0.41
24
All Reefs 178
178
58.00
0.41
24
Doornkop
South Reef
748
866
15.00
0.48
7
All Reefs 748
866
15.00
0.48
7
Kusasalethu
VCR Reef
1 762
1 745
31.00
0.79
24
All Reefs
1 762
1 745
31.00
0.79
24
Total Target
(Incl. Target 1 & Target 3)
Elsburg
1 305
807
46.00
0.35
16
Basal 38
92
9.00
0.91
8
A Reef
235
282
72.00
0.25
18
B Reef
92
138
55.00
0.47
26
All Reefs
1 670
1 319
50.00
0.34
17
Masimong
Basal
1 080
1
070
21.00
0.46
10
B Reef
298
285
35.00
0.14
5
All Reefs
1 378
1 355
24.00
0.36
9
Evander
Kimberley
1 470
1
506
20.00
0.62
12
All Reefs
1 470
1 506
20.00
0.62
12
Virginia
(Unisel)
Basal 438
249
75.00
0.31
23
Leader 751
709
86.00
0.16
14
All Reefs
1 189
958
83.00
0.19
16
Joel
Beatrix 366
285
88.00
0.18
16
All Reefs 366
285
88.00
0.18
16
Total Harmony
Basal
5 092
4
936
25.00
0.57
14
Beatrix 366
285
88.00
0.18
16
Leader 751
709
86.00
0.16
14
B Reef
653
561
40.00
0.28
11
A Reef
235
282
72.00
0.25
18
Elsburg
1 305
807
46.00
0.35
16
Kimberley
1 470
1
506
20.00
0.62
12
South Reef
748
866
15.00
0.48
7
VCR
1 762
1
745
31.00
0.79
24
All Reefs
12 382
11 698
33.00
0.46
15
32
32
32
CONTACT DETAILS
Corporate Office
Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue, Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: www.harmony.co.za
Directors
P T Motsepe* Chairman
D Noko*^ Deputy Chairman
G P Briggs Chief Executive Officer
F Abbott Financial Director
H E Mashego Executive Director
F F T De Buck*^ Lead independent director
J A Chissano*
1
^, K V Dicks*^, Dr D S Lushaba*^, C Markus*^,
M Motloba*^, M Msimang*^, J Wetton*^, A J Wilkens*
* 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
Marian van der Walt
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail: marian@harmony.co.za
Company Secretary
Riana Bisschoff
Telephone: 011 411 2127
Mobile: +27 83 629 4706
E-mail: riana.bisschoff@harmony.co.za
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
United Kingdom Registrars
Capita Registrars
The Registry, 34 Beckenham Road, Beckenham
Kent BR3 4TU, United Kingdom
Telephone: 0871 664 0300 (UK) (calls cost 10p a minute plus network
extras, lines are open 8:30am – 5:30pm, Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
Fax: +44 (0) 20 8639 2220
ADR Depositary
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company, Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email Queries: adr@db.com
Toll Free: +1-866-243-9656
Intl: +1-718-921-8200
Fax: +1-718-921-8334
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
Trading Symbols
JSE Limited: HAR
New York Stock Exchange, Inc: HMY
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1
Registration number
1950/038232/06
Incorporated in the Republic of South Africa
ISIN
ZAE000015228
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: May 9, 2012
Harmony Gold Mining Company Limited
By:
/s/ Frank Abbott
Name: Frank Abbott
Title: Financial Director