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 4 February
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
KEY FEATURES
FINANCIAL SUMMARY FOR THE SECOND QUARTER FY13
ENDED 31 DECEMBER 2012
ENDED 31 DECEMBER 2012
Quarter
December
2012#
Quarter
September
2012#
Q-on-Q
variance
%
6 months
December
2012#
6 months
December
2011#
Variance
%
Gold produced
– kg
9 074
10 013
(9)
19 087
19 114
(1)
– oz
291 734
321 924
(9)
613 658
614 529
(1)
Cash operating
costs
costs
– R/kg
310 858
294 404
(6)
302 226
261 785
(15)
– US$/oz
1 115
1 110
(1)
1 111
1 070
(4)
Gold sold
– kg
9 614
9 704
(1)
19 318
19 173
1
– oz
309 097
311 992
(1)
621 089
616 427
1
Gold price
received
received
– R/kg
479 801
440 868
9
460 244
418 719
10
– US$/oz
1 722
1 663
4
1 692
1 712
(1)
Operating
profit ¹
profit ¹
– R million
1 633
1 408
16
3 041
3 015
1
– US$ million
188
171
10
360
396
(9)
Basic earnings
per share*
per share*
– SAc/s
169
121
40
290
354
(18)
– USc/s
19
15
27
34
46
(26)
Headline
profit/(loss)*
profit/(loss)*
– Rm
680
529
29
1 209
1 452
(17)
– US$m
78
64
22
143
191
(25)
Headline earnings
per share*
per share*
– SAc/s
158
123
28
281
337
(17)
– USc/s
18
15
20
33
44
(25)
Exchange rate
– R/US$
8.67
8.25
5
8.46
7.61
11
# Figures represent continuing operations unless stated otherwise
¹ Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the
operating profit line in the income statement
* Including discontinued operations
Shareholder information
Issued ordinary share capital at
31 December 2012
31 December 2012
435 257 691
Issued ordinary share capital at
30 September 2012
30 September 2012
435 064 236
Market capitalisation
At 31 December 2012
(ZARm)
32 209
At 31 December 2012
(US$m)
3 796
At 30 September 2012
(ZARm)
30 381
At 30 September 2012
(US$m)
3 682
Harmony ordinary share and ADR prices
12-month high (1 January 2011 –
31 December 2012) for ordinary shares
31 December 2012) for ordinary shares
R101.75
12-month low (1 January 2011 –
31 December 2012) for ordinary shares
31 December 2012) for ordinary shares
R65.20
12-month high (1 January 2011 –
31 December 2012) for ADRs
31 December 2012) for ADRs
US$13.31
12-month low (1 January 2011 –
31 December 2012) for ADRs
31 December 2012) for ADRs
US$7.50
Free float
100%
ADR ratio
1:1
JSE Limited
HAR
Range for quarter (1 October 2012 –
31 December 2012 closing prices)
31 December 2012 closing prices)
R65.20 – 74.05
Average daily volume for the quarter
(1 October 2012 – 31 December 2012)
(1 October 2012 – 31 December 2012)
1 558 920 shares
Range for quarter (1 July 2012 –
30 September 2012 closing prices)
30 September 2012 closing prices)
R66.90 – R70.99
Average daily volume for the quarter
(1 July 2012 – 30 September 2012)
(1 July 2012 – 30 September 2012)
2 411 137 shares
New York Stock Exchange, Inc
including other US trading platforms
including other US trading platforms
HMY
Range for quarter (1 October 2012 –
31 December 2012 closing prices)
31 December 2012 closing prices)
US$7.50 – US$8.96
Average daily volume for the quarter
(1 October 2012 – 31 December 2012)
(1 October 2012 – 31 December 2012)
2 392 671 shares
Range for quarter (1 July 2012 –
30 September 2012 closing prices)
30 September 2012 closing prices)
US$7.85 – US$8.40
Average daily volume for the quarter
(1 July 2012 – 30 September 2012)
(1 July 2012 – 30 September 2012)
2 440 148 shares
Investors’ calendar
2013
Q3 FY13 results
3 May 2013
#
Q4 FY13 results
14 August 2013
#
Investor Day
28 August 2013
#
Q1 FY14
8 November 2013
#
#
These dates may change in future
Quarter on quarter
#
:
28% increase in headline earnings per share* to 158 SA cents
(18 US cents)
Doornkop’s build-up takes its production to over a tonne of
gold for the quarter
6% increase in underground grade – third consecutive quarter
of grade improvements
Gold production decreased by 9% to 9 074kg (291 734oz)
South African operations (excluding Kusasalethu) increased
South African operations (excluding Kusasalethu) increased
gold production by 3%
Operating profit¹ 16% higher at R1.6 billion (US$188 million)
Cash operating cost improved by 4% to R2.8 billion
Cash operating cost improved by 4% to R2.8 billion
(US$323 million)
Committed to more housing projects
Interim dividend of 50 SA cents declared
Interim dividend of 50 SA cents declared
# All figures represent continuing operations unless stated otherwise
* Includes discontinued operations
¹ Operating profit is comparable to the term production profit in the segment report in the
financial statements and not to the operating profit line in the income statement
* Includes discontinued operations
¹ Operating profit is comparable to the term production profit in the segment report in the
financial statements and not to the operating profit line in the income statement
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
Q2 FY13
RESULTS FOR THE SECOND QUARTER FY13 AND SIX MONTHS ENDED 31 DECEMBER 2012
2
2
2
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 financial condition, results of operations,
business strategies, operating efficiencies, competitive positions, growth
opportunities for existing services, plans and objectives of management,
markets for stock and other matters. Statements in this quarter that are
not historical facts are “forward-looking statements” for the purpose of
the safe harbour provided by Section 21E of the U.S. Securities Exchange
Act of 1934, as amended, and Section 27A of the U.S. Securities Act of
1933, as amended. Forward-looking statements are statements that are
not historical facts.
meaning of the United States Private Securities Litigation Reform Act of
1995 with respect to Harmony’s financial condition, results of operations,
business strategies, operating efficiencies, competitive positions, growth
opportunities for existing services, plans and objectives of management,
markets for stock and other matters. Statements in this quarter that are
not historical facts are “forward-looking statements” for the purpose of
the safe harbour provided by Section 21E of the U.S. Securities Exchange
Act of 1934, as amended, and Section 27A of the U.S. Securities Act of
1933, as amended. Forward-looking statements are statements that are
not historical facts.
These statements include financial projections and estimates and their
underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and services, and
statements regarding future performance. Forward-looking statements
are generally identified by the words “expect”, “anticipates”, “believes”,
“intends”, “estimates” and similar expressions. These statements are only
predictions. All forward-looking statements involve a number of risks,
uncertainties and other factors and we cannot assure you that such
statements will prove to be correct. Risks, uncertainties and other factors
could cause actual events or results to differ from those expressed or
implied by the forward-looking statements.
underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and services, and
statements regarding future performance. Forward-looking statements
are generally identified by the words “expect”, “anticipates”, “believes”,
“intends”, “estimates” and similar expressions. These statements are only
predictions. All forward-looking statements involve a number of risks,
uncertainties and other factors and we cannot assure you that such
statements will prove to be correct. Risks, uncertainties and other factors
could cause actual events or results to differ from those expressed or
implied by the forward-looking statements.
These forward-looking statements, including, among others, those relating
to the future business prospects, revenues and income of Harmony,
wherever they may occur in this quarterly report and the exhibits to this
quarterly report, are necessarily estimates reflecting the best judgment
of the senior management of Harmony and involve a number of risks
and uncertainties that could cause actual results to differ materially from
those suggested by the forward-looking statements. As a consequence,
these forward-looking statements should be considered in light of various
important factors, including those set forth in this quarterly report.
to the future business prospects, revenues and income of Harmony,
wherever they may occur in this quarterly report and the exhibits to this
quarterly report, are necessarily estimates reflecting the best judgment
of the senior management of Harmony and involve a number of risks
and uncertainties that could cause actual results to differ materially from
those suggested by the forward-looking statements. As a consequence,
these forward-looking statements should be considered in light of various
important factors, including those set forth in this quarterly report.
Important factors that could cause actual results to differ materially
from estimates or projections contained in the forward-looking
statements include, without limitation: overall economic and business
conditions in the countries in which we operate; the ability to achieve
anticipated efficiencies and other cost savings in connection with past
and future acquisitions; increases or decreases in the market price of
gold; the occurrence of hazards associated with underground and surface
gold mining; the occurrence of labour disruptions; availability, terms and
deployment of capital; changes in government regulations, particularly
mining rights and environmental regulations; fluctuations in exchange
rates; currency devaluations and other macro-economic monetary policies;
and socio-economic instability in the countries in which we operate.
statements include, without limitation: overall economic and business
conditions in the countries in which we operate; the ability to achieve
anticipated efficiencies and other cost savings in connection with past
and future acquisitions; increases or decreases in the market price of
gold; the occurrence of hazards associated with underground and surface
gold mining; the occurrence of labour disruptions; availability, terms and
deployment of capital; changes in government regulations, particularly
mining rights and environmental regulations; fluctuations in exchange
rates; currency devaluations and other macro-economic monetary policies;
and socio-economic instability in the countries in which we operate.
Harmony’s Integrated Annual Report,
Notice of Annual General Meeting, its
Sustainable Development Report and its Annual
Report filed on a Form 20F with the United
States’ Securities and Exchange Commission
for the year ended 30 June 2012
are available on our website:
www.harmony.co.za
3
Chief executive officer’s review
4
Safety and Health
5
Financial overview
6 Operational
overview
6
Group operating results
6 Kusasalethu
6 Doornkop
6 Phakisa
6 Tshepong
7 Masimong
7 Hidden
6 Kusasalethu
6 Doornkop
6 Phakisa
6 Tshepong
7 Masimong
7 Hidden
Valley
7 Target
1
7 Bambanani
8 Joel
8 Unisel
8 Target
8 Joel
8 Unisel
8 Target
3
8 Steyn
2
8
Total South African surface operations
8 Kalgold
9 Phoenix
8 Kalgold
9 Phoenix
(tailings)
9 Surface
dumps
9 Discontinued
operations
9 Evander
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)
18 Condensed consolidated balance sheets (Rand)
19 Condensed consolidated statements of changes in equity (Rand)
20 Condensed consolidated cash flow statements (Rand)
21 Notes to the condensed consolidated financial statements
25 Segment report (Rand/Metric)
26 Operating results (US$/Imperial)
28 Condensed consolidated income statements (US$)
29 Condensed consolidated statements of comprehensive income (US$)
30 Condensed consolidated balance sheets (US$)
31 Condensed consolidated statements of changes in equity (US$)
32 Condensed consolidated cash flow statements (US$)
33 Segment report (US$/Imperial)
34 Development results – Metric and Imperial
35 Notes
36 Contact details
11 Exploration highlights
14 Operating results (Rand/Metric) (US$/Imperial)
16 Condensed consolidated income statements (Rand)
17 Condensed consolidated statements of comprehensive income (Rand)
18 Condensed consolidated balance sheets (Rand)
19 Condensed consolidated statements of changes in equity (Rand)
20 Condensed consolidated cash flow statements (Rand)
21 Notes to the condensed consolidated financial statements
25 Segment report (Rand/Metric)
26 Operating results (US$/Imperial)
28 Condensed consolidated income statements (US$)
29 Condensed consolidated statements of comprehensive income (US$)
30 Condensed consolidated balance sheets (US$)
31 Condensed consolidated statements of changes in equity (US$)
32 Condensed consolidated cash flow statements (US$)
33 Segment report (US$/Imperial)
34 Development results – Metric and Imperial
35 Notes
36 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.
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:
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 Scientific
Professions (SACNASP).
is registered with the South African Council for Natural Scientific
Professions (SACNASP).
Reserves and resources PNG:
Stuart Hayward for the Wafi-Golpu mineral resources, Gregory Job for
the Golpu mineral reserve, James Francis for the Hidden Valley mineral
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 defined by the code.
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 defined 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 Wafi-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 Wafi-Golpu project.
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 Wafi-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 Wafi-Golpu project.
There has been no material changes in the mineral reserves
declared as at 30 June 2012.
declared as at 30 June 2012.
There has been no material changes in the mineral reserves
declared as at 30 June 2012.
declared as at 30 June 2012.
3
Chief executive officer’s review
“During the past quarter our underground grade improved by 6%, cash
operating unit costs of underground operations increased by 5% and
the Rand gold price received was 9% higher quarter on quarter. We
recorded an operating profit of R1.6 billion and have declared an interim
dividend of 50 SA cents. Overall a strong financial quarter for Harmony,
notwithstanding the negative impact on operating performance due to
labour disruptions at Kusasalethu”, said Graham Briggs, chief executive
officer of Harmony.
operating unit costs of underground operations increased by 5% and
the Rand gold price received was 9% higher quarter on quarter. We
recorded an operating profit of R1.6 billion and have declared an interim
dividend of 50 SA cents. Overall a strong financial quarter for Harmony,
notwithstanding the negative impact on operating performance due to
labour disruptions at Kusasalethu”, said Graham Briggs, chief executive
officer of Harmony.
Safety
The number of safety achievements increased significantly over the past
12 months. We have demonstrated through our decision at Kusasalethu
that safety is our main priority. More needs to be done however. It is
with deep regret and disappointment that Harmony has recorded three
fatalities during the quarter. We extend our deepest sympathy to the
families and colleagues of: Kelvin Mwale (boiler maker at Evander), Eliot
Zungu (driller at Kusasalethu) and Sechaba Moses Nkhatho (long haul
drive operator at Tshepong).
12 months. We have demonstrated through our decision at Kusasalethu
that safety is our main priority. More needs to be done however. It is
with deep regret and disappointment that Harmony has recorded three
fatalities during the quarter. We extend our deepest sympathy to the
families and colleagues of: Kelvin Mwale (boiler maker at Evander), Eliot
Zungu (driller at Kusasalethu) and Sechaba Moses Nkhatho (long haul
drive operator at Tshepong).
Read more about our safety initiatives on page 4.
Operational and financial results
Gold production decreased by 9% (939kg) in the December 2012
quarter to 9 074kg from 10 013kg in the September 2012 quarter.
This was all as a result of the unprotected strike and labour disruptions
at Kusasalethu.
quarter to 9 074kg from 10 013kg in the September 2012 quarter.
This was all as a result of the unprotected strike and labour disruptions
at Kusasalethu.
Operating profit for the December 2012 quarter increased by
R225 million or 16% to R1 633 million. The increase in operating profit
was due to a decrease in cash operating costs and an increase in the
gold price received.
R225 million or 16% to R1 633 million. The increase in operating profit
was due to a decrease in cash operating costs and an increase in the
gold price received.
Cash operating costs in the December 2012 quarter decreased by
R127 million, mainly as a result of lower electricity costs (summer
tariffs).
R127 million, mainly as a result of lower electricity costs (summer
tariffs).
The rand per kilogram unit cost for the December 2012 quarter
increased by 6% from R294 404/kg in the September 2012 quarter
to R310 858/kg in the December quarter, due to the decrease in gold
production.
increased by 6% from R294 404/kg in the September 2012 quarter
to R310 858/kg in the December quarter, due to the decrease in gold
production.
Capital spent for the quarter increased as expected, from R764 million
to R867 million as the underspending in the September 2012 quarter
came through in the December 2012 quarter.
to R867 million as the underspending in the September 2012 quarter
came through in the December 2012 quarter.
Kusasalethu
Our Kusasalethu mine in South Africa has experienced a pattern of
violence and unprotected industrial action by some employees and
contractors during the December 2012 quarter.
violence and unprotected industrial action by some employees and
contractors during the December 2012 quarter.
The mine was temporarily closed on 20 December 2012 for security
and safety reasons and employees were informed not to return to work
until further notice. The on-going unlawful events caused management
to give serious consideration to both the operational and financial
position of the mine and the future viability of Kusasalethu.
and safety reasons and employees were informed not to return to work
until further notice. The on-going unlawful events caused management
to give serious consideration to both the operational and financial
position of the mine and the future viability of Kusasalethu.
On 7 January 2013, the Company announced that Kusasalethu will
remain closed until such time as it is safe enough for its employees
to commence mining activities. Bilateral discussions with labour and a
Section 189 process in terms of the Labour Relations Act 66 of 1995
(LRA) commenced on 7 January 2013. At the last meeting held on 29
January 2013 the unions accepted Harmony’s rationale for issuing
the section 189 in terms of the LRA. The conditions under which the
remain closed until such time as it is safe enough for its employees
to commence mining activities. Bilateral discussions with labour and a
Section 189 process in terms of the Labour Relations Act 66 of 1995
(LRA) commenced on 7 January 2013. At the last meeting held on 29
January 2013 the unions accepted Harmony’s rationale for issuing
the section 189 in terms of the LRA. The conditions under which the
mine could be re-opened were also discussed. We have made some
progress and we are one step closer to finding a sustainable solution
to re-opening Kusasalethu. However, the mine remains closed until
an agreement has been reached and all the conditions of re-opening
it have been agreed upon and committed to by all the unions and
other stakeholders involved. The unions and Harmony have until
7 March 2013 to make a decision about the future of Kusasalethu.
progress and we are one step closer to finding a sustainable solution
to re-opening Kusasalethu. However, the mine remains closed until
an agreement has been reached and all the conditions of re-opening
it have been agreed upon and committed to by all the unions and
other stakeholders involved. The unions and Harmony have until
7 March 2013 to make a decision about the future of Kusasalethu.
Should the afore-mentioned process of discussion and consultation with
labour fail to achieve agreement on and undertakings to comply fully
with the specified conditions for the mine to resume safe production,
the Section 189A process will have to continue and be concluded. This
could lead to Kusasalethu’s possible indefinite closure, with possible
significant job losses and negative impacts across a broad front on the
mine’s host community.
labour fail to achieve agreement on and undertakings to comply fully
with the specified conditions for the mine to resume safe production,
the Section 189A process will have to continue and be concluded. This
could lead to Kusasalethu’s possible indefinite closure, with possible
significant job losses and negative impacts across a broad front on the
mine’s host community.
Gold market
The United States (US) dollar gold price reached its 12th year of
consecutive price gains towards the end of calendar year 2012. Given
the uncertainty in the global economy, we believe that gold will become
more attractive as an investment option and that the gold price may
increase further during calendar year 2013.
consecutive price gains towards the end of calendar year 2012. Given
the uncertainty in the global economy, we believe that gold will become
more attractive as an investment option and that the gold price may
increase further during calendar year 2013.
The Rand gold price received increased to R479 801/kg in the
December 2012 quarter, in comparison to R440 868/kg in the previous
quarter. During the December 2012 quarter the Rand weakened by
5% to US$/R8.67 (US$/R8.25 in the September 2012 quarter). The
weaker Rand combined with a 4% increase in the US dollar gold price
to US$1 722/oz (US$1 663/oz in the September 2012 quarter) resulted
in the higher rand per kilogram gold price received.
December 2012 quarter, in comparison to R440 868/kg in the previous
quarter. During the December 2012 quarter the Rand weakened by
5% to US$/R8.67 (US$/R8.25 in the September 2012 quarter). The
weaker Rand combined with a 4% increase in the US dollar gold price
to US$1 722/oz (US$1 663/oz in the September 2012 quarter) resulted
in the higher rand per kilogram gold price received.
Environmental management
At Harmony, we are committed to building a robust, sustainable
company for our current stakeholders and for future generations
through exploration, development and operating gold mines. When the
orebody is depleted, we ensure that the decommissioning and closing
of operations are done safely and responsibly. We aim to provide
shared value for the Company and its shareholders, the country in
which we operate and our host communities, as well as the biophysical
environment.
company for our current stakeholders and for future generations
through exploration, development and operating gold mines. When the
orebody is depleted, we ensure that the decommissioning and closing
of operations are done safely and responsibly. We aim to provide
shared value for the Company and its shareholders, the country in
which we operate and our host communities, as well as the biophysical
environment.
The Free State Rehabilitation Project began in May 2010, its impetus
coming from several shaft closures within the Virginia operations and
amongst the old shafts that had been acquired by Harmony over the
previous 10 years. Once mining operations ceased at these shafts, they
had to be decommissioned and appropriately shut down, in terms of
legislation.
coming from several shaft closures within the Virginia operations and
amongst the old shafts that had been acquired by Harmony over the
previous 10 years. Once mining operations ceased at these shafts, they
had to be decommissioned and appropriately shut down, in terms of
legislation.
While this project revolves around the closure of mining operations and
all that this entails, it also seeks to mitigate the impact such closures
have on the socio-economic sustainability of communities that depend
on mining in the Free State.
all that this entails, it also seeks to mitigate the impact such closures
have on the socio-economic sustainability of communities that depend
on mining in the Free State.
The project is progressing well and has resulted in a further reduction of
the environmental liability as determined for the Department of Mineral
Resources by R24 million in the last six months (total of R124 million
cumulatively since the inception of the project). More information
on our environmental management can be found on our website
www.harmony.co.za.
the environmental liability as determined for the Department of Mineral
Resources by R24 million in the last six months (total of R124 million
cumulatively since the inception of the project). More information
on our environmental management can be found on our website
www.harmony.co.za.
Our post-mining land use objectives are based on factors including:
• with sustainable development principles, mining operations should
• be regarded as transient land use, implying that, post-mining, the
• be regarded as transient land use, implying that, post-mining, the
4
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
land should be restored so that its value is equivalent to or better
than pre-mining.
than pre-mining.
We see the value of land as being measured both in economic and
socio-ecological terms. In this case, rehabilitation entails restoring
the land to its future value-adding use. Our programme goes beyond
the process of demolition of infrastructure and backfilling of inert
socio-ecological terms. In this case, rehabilitation entails restoring
the land to its future value-adding use. Our programme goes beyond
the process of demolition of infrastructure and backfilling of inert
economic value-add that can be created on rehabilitated land. Harmony
participated in the Carbon Disclosure Programme (Top 100 JSE
Companies) and was placed 3rd with a 98% score. Influenced by this
achievement, Harmony was again included into the Nedbank BettaBeta
Green Exchange Traded Fund (“BGREEN EFT), propelling Harmony into
the top 20 of the fund with it finishing in the Top 10 (placed 8th).
participated in the Carbon Disclosure Programme (Top 100 JSE
Companies) and was placed 3rd with a 98% score. Influenced by this
achievement, Harmony was again included into the Nedbank BettaBeta
Green Exchange Traded Fund (“BGREEN EFT), propelling Harmony into
the top 20 of the fund with it finishing in the Top 10 (placed 8th).
Wafi-Golpu
Drilling performance continued to show a noticeable improvement
and will remain an important focus, with geotechnical data acquisition
and additional mineral resources being key priorities. The next phase
of the metallurgical test work program, focusing on testing alternative
flowsheets to improve gold recovery commenced in November 2012.
and will remain an important focus, with geotechnical data acquisition
and additional mineral resources being key priorities. The next phase
of the metallurgical test work program, focusing on testing alternative
flowsheets to improve gold recovery commenced in November 2012.
Evander
Harmony entered into an agreement to sell its 100% interest in Evander
Gold Mines Limited (Evander) to Emerald Panther Investments 91
(Proprietary) Limited (EP), a wholly owned subsidiary of Pan African
Resources Plc, for R1.5 billion during May 2012. The transaction
remains subject to the consent of the Minister of Mineral Resources
in accordance with section 11 of the Mineral and Petroleum Resources
Development Act. Once the transaction becomes unconditional, EP will
be required to pay the purchase consideration in cash to Harmony.
Gold Mines Limited (Evander) to Emerald Panther Investments 91
(Proprietary) Limited (EP), a wholly owned subsidiary of Pan African
Resources Plc, for R1.5 billion during May 2012. The transaction
remains subject to the consent of the Minister of Mineral Resources
in accordance with section 11 of the Mineral and Petroleum Resources
Development Act. Once the transaction becomes unconditional, EP will
be required to pay the purchase consideration in cash to Harmony.
Silicosis
Harmony has been served with an application for a certification of
a class action by applicants claiming to have suffered from a silica
induced ailment called silicosis by two law firms in two separate class
certification applications.
a class action by applicants claiming to have suffered from a silica
induced ailment called silicosis by two law firms in two separate class
certification applications.
We took advice in this regard and are following the normal legal
processes and will defend the matters on their merits.
processes and will defend the matters on their merits.
Harmony regards the safety and health of each and every one of its
employees paramount to its business and continues to do whatever is
reasonably possible to provide a safe and healthy environment in which
to work. We play an active role within the Chamber of Mines’ structure
to continuously engage with relevant stakeholders, i.e. organised labour
and government to find a lasting solution to the safety and health of
the mining industry.
employees paramount to its business and continues to do whatever is
reasonably possible to provide a safe and healthy environment in which
to work. We play an active role within the Chamber of Mines’ structure
to continuously engage with relevant stakeholders, i.e. organised labour
and government to find a lasting solution to the safety and health of
the mining industry.
Dividend
We are pleased to report that the board has agreed to paying an interim
dividend of 50 SA cents.
dividend of 50 SA cents.
Conclusion
Our focus in the next quarter will be on saving Kusasalethu. The
investment rationale for Harmony remains unchanged, we:
• are one of the world's largest gold miners;
• have high-grade mines in South Africa and PNG;
• own a world-class exploration project (Golpu in PNG);
• support meaningful and responsible corporate social investment;
• minimise and mitigate the impacts to the environment
• pay dividends;
• remain unhedged with low debt;
• are supported by a strong, focused management team.
investment rationale for Harmony remains unchanged, we:
• are one of the world's largest gold miners;
• have high-grade mines in South Africa and PNG;
• own a world-class exploration project (Golpu in PNG);
• support meaningful and responsible corporate social investment;
• minimise and mitigate the impacts to the environment
• pay dividends;
• remain unhedged with low debt;
• are supported by a strong, focused management team.
We will continue to apply our values (safety, accountable, achievement,
connected and honesty) – even at the cost of production.
connected and honesty) – even at the cost of production.
As one of the largest employers in the South African mining industry,
Harmony has accepted not only its legal responsibility but also its
moral obligation to contribute to the transformation of the mining
industry, whilst supporting the country’s imperatives in respect of social
development. Apart from supporting our social license to operate, we
promote good corporate citizenship, respecting the fragility of the
environment and the dignity and rights of the communities in which
we operate.
Harmony has accepted not only its legal responsibility but also its
moral obligation to contribute to the transformation of the mining
industry, whilst supporting the country’s imperatives in respect of social
development. Apart from supporting our social license to operate, we
promote good corporate citizenship, respecting the fragility of the
environment and the dignity and rights of the communities in which
we operate.
We put back more than what we take out.
Graham Briggs
Chief executive officer
Chief executive officer
Safety and health
The safety and well-being of our workforce is our main priority.
At Harmony our commitment to safety and health is a fundamental part
of our culture and we are committed to providing a safe and healthy
workplace for our employees.
At Harmony our commitment to safety and health is a fundamental part
of our culture and we are committed to providing a safe and healthy
workplace for our employees.
During the quarter, workshops have been conducted with IRCA
Global on the individual modules of the occupational health and
safety management systems to improve the quality of the system.
This system reaffirms and formally documents corporate standards
for the management of health and safety at Harmony’s South Africa
operations, which also ensures standardisation of the management
system at all operations.
Global on the individual modules of the occupational health and
safety management systems to improve the quality of the system.
This system reaffirms and formally documents corporate standards
for the management of health and safety at Harmony’s South Africa
operations, which also ensures standardisation of the management
system at all operations.
A high level audit has been conducted at Masimong during the quarter
and audit reviews were done at Target 1 and Target 3 shafts and the
Target metallurgical plant by the chief executive officer and various
other executives.
and audit reviews were done at Target 1 and Target 3 shafts and the
Target metallurgical plant by the chief executive officer and various
other executives.
All safety parameters improved quarter on quarter and year to date,
except for the Fatality Injury Frequency Rate (FIFR) and the rail bound
equipment injury rate.
except for the Fatality Injury Frequency Rate (FIFR) and the rail bound
equipment injury rate.
It is with deep regret that we report that three fatalities occurred in
three separate incidences at Evander, Kusasalethu and Tshepong
respectively during the December 2012 quarter, which kept the FIFR
the same quarter on quarter at 0.13 (including Evander). The 2013 year
to date FIFR rate, however improved by 19% when compared to the
actual figure for the previous year (from 0.16 to 0.13).
three separate incidences at Evander, Kusasalethu and Tshepong
respectively during the December 2012 quarter, which kept the FIFR
the same quarter on quarter at 0.13 (including Evander). The 2013 year
to date FIFR rate, however improved by 19% when compared to the
actual figure for the previous year (from 0.16 to 0.13).
The year on year Lost Time Injury Frequency Rate (LTIFR) improved at
most of the South African operations. The LTIFR for 2013 year to date
improved by 19% from 7.29 to 5.92 and the rate for the quarter is
at its lowest level ever at 5.73, which is a 6% improvement from the
previous quarter.
most of the South African operations. The LTIFR for 2013 year to date
improved by 19% from 7.29 to 5.92 and the rate for the quarter is
at its lowest level ever at 5.73, which is a 6% improvement from the
previous quarter.
The number of safety achievements has increased significantly over the
past 12 months and has encouraged us to improve our performance
even more. Additional focus has been placed on the communication
past 12 months and has encouraged us to improve our performance
even more. Additional focus has been placed on the communication
5
Financial overview
Net profit
The net profit for the December 2012 quarter was R731 million,
40% higher than the previous quarter. A 9% increase in the rand
gold price received at R479 801/kg and the decrease in cash operating
cost of R127 million, offset the effect of the decrease in production
of 939kg, or 9%, following the unprotected strike and lawlessness at
Kusasalethu in October 2012.
40% higher than the previous quarter. A 9% increase in the rand
gold price received at R479 801/kg and the decrease in cash operating
cost of R127 million, offset the effect of the decrease in production
of 939kg, or 9%, following the unprotected strike and lawlessness at
Kusasalethu in October 2012.
Exploration expenditure
During the December 2012 quarter, the drilling programme at
Wafi-Golpu continued along with drilling at our other sites in PNG. We
spent R152 million in the South-east Asia region during the quarter,
compared with R128 million in the prior quarter.
spent R152 million in the South-east Asia region during the quarter,
compared with R128 million in the prior quarter.
Profit on sale of property, plant and equipment
The amount of R69 million includes R60 million for the sale of the
Merriespruit South mining right to Witswatersrand Consolidated
Gold Resources Limited (Wits Gold), which was concluded during the
December 2012 quarter.
Merriespruit South mining right to Witswatersrand Consolidated
Gold Resources Limited (Wits Gold), which was concluded during the
December 2012 quarter.
Impairment of investments
The impairment of investments amounting to R48 million in September
2012 quarter recorded in the income statement is the reduction in the
fair market value on the investment in Wits Gold. During the current
quarter, the value of the investment increased by R13 million and this
increase was recorded in fair value reserves.
2012 quarter recorded in the income statement is the reduction in the
fair market value on the investment in Wits Gold. During the current
quarter, the value of the investment increased by R13 million and this
increase was recorded in fair value reserves.
Net gain on financial instruments
The net gain on financial instruments was R92 million in the
December 2012 quarter. The gain of R92 million is due to the increased
market value of the rehabilitation trust funds’ Equity-Linked Deposits,
resulting from the JSE reaching an all-time high.
December 2012 quarter. The gain of R92 million is due to the increased
market value of the rehabilitation trust funds’ Equity-Linked Deposits,
resulting from the JSE reaching an all-time high.
Earnings per share
Total basic earnings per share increased from 121 SA cents to
169 SA cents per share in the December 2012 quarter. Total headline
earnings per share increased from 123 SA cents to 158 SA cents
per share.
169 SA cents per share in the December 2012 quarter. Total headline
earnings per share increased from 123 SA cents to 158 SA cents
per share.
Investment in financial assets
During the December 2012 quarter, Harmony purchased an additional
3.9% interest in Rand Refinery for R39 million.
3.9% interest in Rand Refinery for R39 million.
Borrowings and cash
Cash and cash equivalents increased by R245 million to R2 511 million
at 31 December 2012 following good operational results by the
majority of the group’s mines. A drawdown of US$40 million from
the US$ syndicated revolving credit facility resulted in an increase in
borrowings, offset by a payment of R153 million on the Nedbank
term facilities. The cash in excess of debt for the group improved to
R138 million.
at 31 December 2012 following good operational results by the
majority of the group’s mines. A drawdown of US$40 million from
the US$ syndicated revolving credit facility resulted in an increase in
borrowings, offset by a payment of R153 million on the Nedbank
term facilities. The cash in excess of debt for the group improved to
R138 million.
NOTICE OF CASH DIVIDEND
Declaration of Ordinary Dividend No. 85
The board has approved and declared an interim dividend of
50 SA cents per ordinary share (gross) in respect of the six months
ended 31 December 2012.
50 SA cents per ordinary share (gross) in respect of the six months
ended 31 December 2012.
The dividend will be subject to the new Dividends Tax that was
introduced with effect from 1 April 2012. In accordance with
paragraphs 11.17 (a)(i) to (x) and 11.17(c) of the JSE Listings
Requirements the following additional information is disclosed:
introduced with effect from 1 April 2012. In accordance with
paragraphs 11.17 (a)(i) to (x) and 11.17(c) of the JSE Listings
Requirements the following additional information is disclosed:
– There are no Secondary Taxation on Companies (STC)
– The gross local dividend amount is 50 SA cents per ordinary
– The net local dividend amount is 42.5 SA cents per ordinary
– Harmony has currently 435 257 691 ordinary shares in issue
– Harmony Gold Mining Company Limited’s income tax
reference number is 9240/012/60/0.
Dividend No. 85 of 50 SA cents per ordinary share, being the
dividend for the six months ended 31 December 2012, has
been declared payable on Monday, 11 March 2013 to those
shareholders recorded in the books of the company at the close
of business on Friday, 8 March 2013. The dividend is declared
in the currency of the Republic of South Africa. Any change in
address or dividend instruction to apply to this dividend must be
received by the company’s transfer secretaries or registrar not
later than Friday, 1 March 2013.
dividend for the six months ended 31 December 2012, has
been declared payable on Monday, 11 March 2013 to those
shareholders recorded in the books of the company at the close
of business on Friday, 8 March 2013. The dividend is declared
in the currency of the Republic of South Africa. Any change in
address or dividend instruction to apply to this dividend must be
received by the company’s transfer secretaries or registrar not
later than Friday, 1 March 2013.
Last date to trade ordinary shares
Friday, cum dividend
Friday, cum dividend
Friday, 1 March 2013
Ordinary shares trade ex-dividend
Monday, 4 March 2013
Currency conversion date in respect
of the UK own name shareholders
of the UK own name shareholders
Monday, 1 March 2013
Record date
Friday, 8 March 2013
Payment date
Monday, 11 March 2013
No dematerialisation or rematerialisation of share certificates may
occur between Monday, 4 March 2013 and Friday, 8 March 2013,
both dates inclusive, nor may any transfers between registers take
place during this period.
occur between Monday, 4 March 2013 and Friday, 8 March 2013,
both dates inclusive, nor may any transfers between registers take
place during this period.
of these achievements within Harmony to ensure there is a balanced
health and safety message within the group.
health and safety message within the group.
Significant safety achievements during the quarter were:
•
Phakisa achieved 2 000 000 fatality free shifts.
•
Tshepong, Kusasalethu and Doornkop achieved 1 000 000 fatality
free shifts.
free shifts.
•
Doornkop achieved 5 500 000 fall of ground fatality free shifts.
Harmony will continue to promote the safety and health of our
workforce, by maintaining a safe working environment and proactively
supporting the physical and emotional wellbeing of our people.
workforce, by maintaining a safe working environment and proactively
supporting the physical and emotional wellbeing of our people.
Assets and liabilities of disposal groups held for sale
Increases in the cash balances and mining assets resulted in an increase
in the net assets of the disposal group for Evander Gold Mines Limited
during the December 2012 quarter.
in the net assets of the disposal group for Evander Gold Mines Limited
during the December 2012 quarter.
6
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
Operational overview
GROUP OPERATIONAL RESULTS
Continuing operations (excludes Evander)
Indicator
Units
December
2012
September
2012
%
variance
Underground tonnes
000
1 594
1 880
(15)
Surface tonnes
000
2 886
2 881
–
Total tonnes
000
4 460
4 761
(6)
Underground grade
g/t
4.77
4.52
6
Surface grade
g/t
0.51
0.52
(2)
Total grade
g/t
2.03
2.10
(3)
Gold produced
kg
9 074
10 013
(9)
Cash operating costs
R/kg
310 858
294 404
(6)
Operating profit
R’000
1 633 173
1 408 376
16
Harmony increased its operating profit for the December 2012 quarter
by 16% to R1.6 billion, as a result of improved underground recovered
grade at the South African operations (excluding Kusasalethu) and a
9% increase in the Rand gold price received at R479 801/kg.
by 16% to R1.6 billion, as a result of improved underground recovered
grade at the South African operations (excluding Kusasalethu) and a
9% increase in the Rand gold price received at R479 801/kg.
A third consecutive quarter of increased underground recovered grade
at 4.77g/t was achieved, while tonnes milled decreased by 15% to
1 594 000t, mainly due to the labour disruptions at Kusasalethu.
at 4.77g/t was achieved, while tonnes milled decreased by 15% to
1 594 000t, mainly due to the labour disruptions at Kusasalethu.
Harmony produced 9 074kg of gold, 9% less quarter on quarter due
to the unprotected strike and lawlessness at Kusasalethu and related
subsequent events at the mine. Please see page 3 for more details.
to the unprotected strike and lawlessness at Kusasalethu and related
subsequent events at the mine. Please see page 3 for more details.
As Kusasalethu is Harmony’s biggest gold producing mine, the 58%
decrease in tonnes milled at 138 000t and 75% less gold produced
at 402kg, adversely affected the results of the group. Overall, cash
operating costs increased by 6% to R310 858/kg when compared to
the R294 404/kg of the previous quarter.
decrease in tonnes milled at 138 000t and 75% less gold produced
at 402kg, adversely affected the results of the group. Overall, cash
operating costs increased by 6% to R310 858/kg when compared to
the R294 404/kg of the previous quarter.
Kusasalethu
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
138
328
(58)
Grade
g/t
2.91
4.88
(40)
Gold produced
kg
402
1 601
(75)
Cash operating costs
R/kg
857 928
282 606
(>100)
Operating profit/(loss)
R’000
(113 450)
249 961
(>100)
Production at Kusasalethu decreased by 75% to 402kg for the quarter
as a result of a 58% reduction in tonnes milled (from 328 000 tonnes
in the September 2012 quarter to 138 000 tonnes in the December 2012
quarter).
as a result of a 58% reduction in tonnes milled (from 328 000 tonnes
in the September 2012 quarter to 138 000 tonnes in the December 2012
quarter).
Grade also decreased quarter on quarter by 40% from 4.88g/t to
2.91g/t. The lower grade was mainly due to the higher ratio of waste
tonnes from development areas compared to reef stoping and stopping
the plant earlier than planned for the festive season, due to threats and
intimidation by labour during December 2012.
2.91g/t. The lower grade was mainly due to the higher ratio of waste
tonnes from development areas compared to reef stoping and stopping
the plant earlier than planned for the festive season, due to threats and
intimidation by labour during December 2012.
Cash operating costs increased threefold at R857 928/kg due to lower
gold production and resulted in Kusasalethu recording an operating loss
of R113 million for the quarter.
gold production and resulted in Kusasalethu recording an operating loss
of R113 million for the quarter.
Doornkop
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
272
245
11
Grade
g/t
3.69
3.56
4
Gold produced
kg
1 004
871
15
Cash operating costs
R/kg
269 449
294 156
8
Operating profit
R’000
217 794
125 560
74
Doornkop’s build-up takes its production to over a tonne of gold for the
quarter, proof that the mine is building up towards its full production
potential. Gold production at Doornkop was 15% higher at 1 004kg,
due to an 11% increase in tonnes milled quarter on quarter at 272 000t,
together with a 4% increase in recovered grade at 3.69g/t from both
the South- and the Kimberly Reef.
quarter, proof that the mine is building up towards its full production
potential. Gold production at Doornkop was 15% higher at 1 004kg,
due to an 11% increase in tonnes milled quarter on quarter at 272 000t,
together with a 4% increase in recovered grade at 3.69g/t from both
the South- and the Kimberly Reef.
Cash operating costs decreased by 8% to R269 449/kg, due to an
increase in gold production and lower summer electricity tariffs. Higher
gold production resulted in a 74% increase quarter on quarter, in
operating profit at R218 million.
increase in gold production and lower summer electricity tariffs. Higher
gold production resulted in a 74% increase quarter on quarter, in
operating profit at R218 million.
Phakisa
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
128
142
(10)
Grade
g/t
5.38
4.78
13
Gold produced
kg
688
679
1
Cash operating costs
R/kg
338 233
367 785
8
Operating profit
R’000
99 575
47 800
>100
Phakisa doubled its operating profit quarter on quarter to R100 million,
due to a higher recovery grade of 5.38g/t and an 8% improvement
quarter on quarter in cash operating costs at R338 233/kg.
due to a higher recovery grade of 5.38g/t and an 8% improvement
quarter on quarter in cash operating costs at R338 233/kg.
The decrease in tonnage is due to damages to the Freddies No. 3
ventilation shaft caused by the scaling of a 100 metres shale formation
in the upper portion of the shaft. The adverse environmental conditions
caused by the failure of the No. 3 ventilation shaft, forced stoppages
in certain working areas. The ventilation challenges are currently
being assessed in order to resolve the situation and an initial estimate
indicates that all remedial work could be completed by the end of the
calendar year.
ventilation shaft caused by the scaling of a 100 metres shale formation
in the upper portion of the shaft. The adverse environmental conditions
caused by the failure of the No. 3 ventilation shaft, forced stoppages
in certain working areas. The ventilation challenges are currently
being assessed in order to resolve the situation and an initial estimate
indicates that all remedial work could be completed by the end of the
calendar year.
Tshepong
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
254
313
(19)
Grade
g/t
4.53
3.70
22
Gold produced
kg
1 151
1 159
(1)
Cash operating costs
R/kg
309 081
329 079
6
Operating profit
R’000
199 169
126 551
57
Tshepong recorded a 57% increase in operating profit of R199 million
when compared to the previous quarter, due to lower cash operating
costs at R309 081/kg and an increase of 22% in recovered grade at
4.53g/t. The recovered grade improved after it was discovered and
when compared to the previous quarter, due to lower cash operating
costs at R309 081/kg and an increase of 22% in recovered grade at
4.53g/t. The recovered grade improved after it was discovered and
7
subsequently resolved that waste and reef ore has been mixed at the
operation due to cross tramming.
operation due to cross tramming.
Gold production remained steady at 1 151kg as tonnes milled decreased
by 19% to 254 000t.
by 19% to 254 000t.
Masimong
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
216
261
(17)
Grade
g/t
4.59
3.78
21
Gold produced
kg
991
987
0.4
Cash operating costs
R/kg
252 109
265 698
5
Operating profit
R’000
228 129
177 406
29
Gold production at Masimong remained steady at 991kg. Recovered
grade increased by 21% to 4.59g/t and the improvement is attributable
to the restoration of tramming of waste and reef discipline. Tonnes
milled decreased by 17% to 216 000t due to the split of the waste and
the reef during the quarter.
grade increased by 21% to 4.59g/t and the improvement is attributable
to the restoration of tramming of waste and reef discipline. Tonnes
milled decreased by 17% to 216 000t due to the split of the waste and
the reef during the quarter.
The cash operating costs improved by 5% to R252 109/kg mainly due
to less volumes and lower summer electricity rates. The higher gold
price and grade resulted in an operating profit of R228 million, a 29%
increase compared to the previous quarter.
to less volumes and lower summer electricity rates. The higher gold
price and grade resulted in an operating profit of R228 million, a 29%
increase compared to the previous quarter.
Hidden Valley (held in Morobe Mining Joint Ventures (MMJV) –
50% of attributable production reflected)
50% of attributable production reflected)
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
456
491
(7)
Grade
g/t
1.41
1.40
1
Gold produced
kg
642
689
(7)
Cash operating costs
R/kg
451 424
379 303
(19)
Operating profit
R’000
32 246
26 066
24
Gold production at Hidden Valley for the quarter is 7% lower than the
previous quarter at 642kg and silver production increased by 5% to
470 623oz in the December quarter. Lower gold production resulted
from reduced mill throughput due to lower plant availability during
the quarter, with 7% less tonnes milled at 456 000t. Silver production
increased as a result of higher grades and recovery rates.
previous quarter at 642kg and silver production increased by 5% to
470 623oz in the December quarter. Lower gold production resulted
from reduced mill throughput due to lower plant availability during
the quarter, with 7% less tonnes milled at 456 000t. Silver production
increased as a result of higher grades and recovery rates.
A 24% higher operating profit of R32 million was recorded for Hidden
Valley, due to the higher gold price. Cash operating costs increased by
19% to R451 424/kg. Higher cash operating costs can be attributed to
the decrease in gold production, the increase in diesel fuel usage for
power generation and an increase in consumption of reagents.
Valley, due to the higher gold price. Cash operating costs increased by
19% to R451 424/kg. Higher cash operating costs can be attributed to
the decrease in gold production, the increase in diesel fuel usage for
power generation and an increase in consumption of reagents.
The crusher installation, located at the front end of the overland
conveyor is progressing and will be commissioned in April 2013, one
month later than forecast. After this crusher is commissioned, operating
costs are expected to reduce with the removal of higher cost trucking
of ore to the mill.
conveyor is progressing and will be commissioned in April 2013, one
month later than forecast. After this crusher is commissioned, operating
costs are expected to reduce with the removal of higher cost trucking
of ore to the mill.
To improve productivity and reduce costs, our focus will specifically
be on:
• improving the mining performance and quality of mining to allow
access to higher grade ore
be on:
• improving the mining performance and quality of mining to allow
access to higher grade ore
•
implementing an effective overland conveyor haulage solution through
the crusher installation which will allow reduced operating costs;
• presenting higher gold and silver grade Hidden Valley Kaveroi material
to the processing plant;
• improving gold and silver recoveries in the processing plant through
stabilised ore feed at current nameplate capacity (approximately
350 000 tonnes per month) and reducing the cost base post the
crusher installation. These challenges, however, will result in Hidden
Valley’s production being below guidance for the full financial year
at approximately 90 000 ounces.
the crusher installation which will allow reduced operating costs;
• presenting higher gold and silver grade Hidden Valley Kaveroi material
to the processing plant;
• improving gold and silver recoveries in the processing plant through
stabilised ore feed at current nameplate capacity (approximately
350 000 tonnes per month) and reducing the cost base post the
crusher installation. These challenges, however, will result in Hidden
Valley’s production being below guidance for the full financial year
at approximately 90 000 ounces.
Target 1
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
178
178
–
Grade
g/t
6.10
6.02
1
Gold produced
kg
1 086
1 071
1
Cash operating costs
R/kg
212 656
221 587
4
Operating profit
R’000
295 282
218 952
35
Tonnes remained steady at 178 000 tonnes and recovered grade
improved quarter on quarter to 6.10g/t, which resulted in a 1% increase
in gold production to 1 086kg. Unavailability of trackless equipment up
to the last week of November 2012, hampered the tonnage delivery,
but this will be resolved in the March 2013 quarter after a new load haul
dumper was acquired to assist to increase the output.
improved quarter on quarter to 6.10g/t, which resulted in a 1% increase
in gold production to 1 086kg. Unavailability of trackless equipment up
to the last week of November 2012, hampered the tonnage delivery,
but this will be resolved in the March 2013 quarter after a new load haul
dumper was acquired to assist to increase the output.
Cash operating costs improved by 4% quarter on quarter to
R212 656/kg, mainly due to the lower summer electricity tariffs.
The operating profit of R295 million, representing a 35% increase
quarter on quarter, is attributed to the increase in gold price and the
lower cash operating costs.
quarter on quarter, is attributed to the increase in gold price and the
lower cash operating costs.
Bambanani
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
42
33
27
Grade
g/t
8.50
10.21
(17)
Gold produced
kg
357
337
6
Cash operating costs
R/kg
332 224
329 674
(1)
Operating profit/(loss)
R’000
53 493
40 649
32
Tonnes milled at Bambanani improved by 27% to 42 000t, while
recovered grade decreased by 17% quarter-on-quarter to 8.50g/t,
due to an increase in stoping width at the mine. As a result of higher
volumes, gold production increased by 6% to 357kg of gold when
compared to the previous quarter.
recovered grade decreased by 17% quarter-on-quarter to 8.50g/t,
due to an increase in stoping width at the mine. As a result of higher
volumes, gold production increased by 6% to 357kg of gold when
compared to the previous quarter.
Cash operating costs remained steady at R332 224/kg, despite the
increase in gold production, due to the increase in labour crews for
additional work required. Bambanani started to supply compressed
air to Steyn 2 and therefore Bambanani’s power costs are expected to
increase proportionately in future.
increase in gold production, due to the increase in labour crews for
additional work required. Bambanani started to supply compressed
air to Steyn 2 and therefore Bambanani’s power costs are expected to
increase proportionately in future.
Bambanani recorded a 32% increase in operating profit from R41 million
in the September quarter to R53 million in the December quarter under
review, due to the higher gold production.
in the September quarter to R53 million in the December quarter under
review, due to the higher gold production.
8
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
Joel
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
154
167
(8)
Grade
g/t
5.52
5.39
2
Gold produced
kg
850
900
(6)
Cash operating costs
R/kg
194 233
189 823
(2)
Operating profit
R’000
265 772
212 482
25
Joel’s recovered grade improved by 2% to 5.52g/t, due to higher than
expected face grades and its focus on clean mining. Gold production
was lower at 850kg due to an 8% decrease in tonnes milled at 154 000t.
expected face grades and its focus on clean mining. Gold production
was lower at 850kg due to an 8% decrease in tonnes milled at 154 000t.
Cash operating costs increased by 2% quarter on quarter to R194 233/kg,
due to slightly lower gold production. Joel remains the lowest cost
producer in the group.
due to slightly lower gold production. Joel remains the lowest cost
producer in the group.
Joel generated an operating profit of R266 million, representing a 25%
increase quarter on quarter.
increase quarter on quarter.
Unisel
Indicator
Units
December
2012
September
2012
%
variance
Tonnes milled
000
117
116
1
Grade
g/t
4.55
3.71
23
Gold produced
kg
532
430
24
Cash operating costs
R/kg
280 244
338 063
17
Operating profit
R’000
109 414
44 450
>100
Unisel had an improved production quarter and resultantly doubled its
operating profit to R109 million
operating profit to R109 million
A 24% quarter on quarter increase in gold production is attributed to
the 23% improvement in recovered grade. Tonnes milled remained
steady at 117 000t. Cash operating costs improved by 17% quarter on
quarter to R280 244/kg due to increased gold production.
the 23% improvement in recovered grade. Tonnes milled remained
steady at 117 000t. Cash operating costs improved by 17% quarter on
quarter to R280 244/kg due to increased gold production.
Target 3
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
82
87
(6)
Grade
g/t
5.26
4.22
25
Gold produced
kg
431
367
17
Cash operating costs
R/kg
305 935
359 738
15
Operating profit
R’000
75 569
26 776
>100
The recovered grade at Target 3 improved from 4.22g/t to 5.26g/t
quarter on quarter, mainly due to the split of reef and waste and an
increase in grade at both the B Reef and Basal Reef. Gold production
increased by 17% to 431kg, due to the 25% increase in recovered grade.
quarter on quarter, mainly due to the split of reef and waste and an
increase in grade at both the B Reef and Basal Reef. Gold production
increased by 17% to 431kg, due to the 25% increase in recovered grade.
Cash operating costs improved by 15% from R359 738/kg in the
previous quarter to R305 935/kg in the current quarter, due to higher
gold production.
previous quarter to R305 935/kg in the current quarter, due to higher
gold production.
An operating profit of R76 million was recorded, more than a 100%
increase quarter on quarter, due to lower operating costs and higher
gold production.
increase quarter on quarter, due to lower operating costs and higher
gold production.
Steyn 2
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
13
10
30
Grade
g/t
8.92
10.10
(12)
Gold produced
kg
116
101
15
Cash operating costs
R/kg
300 069
383 436
22
Operating profit/(loss)
R’000
21 282
5 568
>100
Steyn 2 also recorded and an increase in its operating profit of more
than a 100% at R21 million, as a result of the 15% increase in gold
production to 116kg. The increase in gold production is due to the 30%
increase in tonnes milled quarter on quarter, from 10 000t to 13 000t.
Recovery grade decreased 12% to 8.92g/t, due to lower face grade and
a lower plant call factor.
than a 100% at R21 million, as a result of the 15% increase in gold
production to 116kg. The increase in gold production is due to the 30%
increase in tonnes milled quarter on quarter, from 10 000t to 13 000t.
Recovery grade decreased 12% to 8.92g/t, due to lower face grade and
a lower plant call factor.
Cash operating costs improved by 22% to R300 069/kg, mainly due to
the higher gold production as well as a reduction of the power costs
(Steyn 2 is now receiving compressed air from Bambanani shaft).
the higher gold production as well as a reduction of the power costs
(Steyn 2 is now receiving compressed air from Bambanani shaft).
TOTAL SOUTH AFRICAN SURFACE OPERATIONS
Continuing Operations (excluding Evander surface sources)
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
2 410
2 390
1
Grade
g/t
0.34
0.34
–
Gold produced
kg
824
821
(6)
Cash operating costs
R/kg
299 511
303 430
1
Operating profit
R’000
148 898
106 155
40
Recovered grade, tonnes milled and gold production remained steady at
the South African continuing surface sources at 0.34g/t, 2 410 000t and
824kg respectively. Surface sources generated a 40% higher operating
profit of R149 million due to the increase in the gold price received,
whilst cash operating costs remained steady at R299 511/kg.
the South African continuing surface sources at 0.34g/t, 2 410 000t and
824kg respectively. Surface sources generated a 40% higher operating
profit of R149 million due to the increase in the gold price received,
whilst cash operating costs remained steady at R299 511/kg.
Kalgold
Indicator
Units
December
2012
September
2012
%
variance
Tonnes 000
309
390
(21)
Grade
g/t
1.06
0.87
22
Gold produced
kg
326
340
(4)
Cash operating costs
R/kg
291 991
251 459
(16)
Operating profit
R’000
61 733
59 762
3
Tonnes milled for the quarter decreased by 21% to 309 000t, due to
the unavailability of the C mill as a result of a mill pinion breakdown.
Recovered grade at Kalgold improved notably quarter on quarter by
22% to 1.06g/t, as a result of better grades from the A Zone pit. Gold
production was 14kg lower due to the decrease in milled volumes,
countering the effect of the improvement in recovered grade.
the unavailability of the C mill as a result of a mill pinion breakdown.
Recovered grade at Kalgold improved notably quarter on quarter by
22% to 1.06g/t, as a result of better grades from the A Zone pit. Gold
production was 14kg lower due to the decrease in milled volumes,
countering the effect of the improvement in recovered grade.
9
Phoenix (tailings)
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
1 276
1 286
(1)
Grade
g/t
0.163
0.156
4
Gold produced
kg
208
201
3
Cash operating costs
R/kg
261 135
287 239
9
Operating profit
R’000
44 970
25 930
73
Gold production was 3% higher at 208kg due to a 4% improvement in
recovered grade at 0.163g/t. Tonnes milled quarter on quarter remained
steady at 1 276 000t.
recovered grade at 0.163g/t. Tonnes milled quarter on quarter remained
steady at 1 276 000t.
Cash operating costs improved by 9% to R261 135/kg and together
with the higher gold production, contributed to a 73% increase in
operating profit at R45 million.
with the higher gold production, contributed to a 73% increase in
operating profit at R45 million.
Surface dumps (excluding Evander surface sources)
Indicator
Units
December
2012
September
2012
%
variance
Tonnes 000
825
714
16
Grade
g/t
0.35
0.39
(10)
Gold produced
kg
290
280
4
Cash operating costs
R/kg
335 490
378 161
11
Operating profit
R’000
42 195
20 463
>100
Recovered grade decreased quarter on quarter by 10% to 0.35g/t, but
was off-set by a 16% increase in tonnes processed, which resulted in a
4% increase in gold production at 290kg.
was off-set by a 16% increase in tonnes processed, which resulted in a
4% increase in gold production at 290kg.
Operating profit increased to R42 million due to higher gold production
and an 11% decrease in cash operating costs of R335 490/kg.
and an 11% decrease in cash operating costs of R335 490/kg.
DISCONTINUED OPERATION – EVANDER
Total Evander (Underground and surface)
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
141
159 (11)
Grade
g/t
4.70
5.14
(9)
Gold produced
kg
663
817
(19)
Cash operating costs
R/kg
297 813
259 613
(15)
Operating profit/(loss) R’000
128 724
141 358
(9)
Evander underground
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
91
117
(22)
Grade
g/t
6.87
6.48
6
Gold produced
kg
625
758
(18)
Cash operating costs
R/kg
298 787
268 873
(11)
Operating profit/(loss) R’000
121 084
123 741
(2)
Evander surface sources
Indicator
Units
December
2012
September
2012
%
variance
Tonnes
000
50
42
19
Grade
g/t
0.76
1.40
(46)
Gold produced
kg
38
59
(36)
Cash operating costs
R/kg
281 789
143 220
(97)
Operating profit/(loss) R’000
7 640
17 617
(57)
Underground tonnes at Evander decreased by 22% to 91 000t, while
grade improved by 6% to 6.87g/t. Gold production was lower at 625kg,
due to less tonnes being processed during the quarter.
grade improved by 6% to 6.87g/t. Gold production was lower at 625kg,
due to less tonnes being processed during the quarter.
Lower gold production resulted in an 11% increase in the cash operating
costs to R298 787/kg.
costs to R298 787/kg.
10
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
Development
The main purpose of development is to explore the potential of future mining operations. A development programme is vital to the life of a mine.
The on-reef development grade of a shaft is an indication of the grades that will be mined in future. Important information such as expected
geological structures, dip of the orebody and channel width is derived.
geological structures, dip of the orebody and channel width is derived.
Depending on the shaft layout – such as the length of the raise line and spacing – ledging and stoping will take place 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 be profitably mined and to continuously upgrade resources to reserves.
after on-reef development. Therefore the target areas for development are extremely important to prove the existence of ore of sufficient mineral
content to be profitably mined and to continuously upgrade resources to reserves.
Mineral reserves block grades vs development grades
December 2012 (Quarter 2)
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.
no selectivity has been applied from a grade point of view.
Kusasalethu
The quarter on quarter development grade has increased substantially
due to very good values intersected in a localised area of well mineralised
Ventersdorp Contact Reef (VCR). In the remainder of the areas being
developed the grades reported are also in line with or above the reserve
grade.
due to very good values intersected in a localised area of well mineralised
Ventersdorp Contact Reef (VCR). In the remainder of the areas being
developed the grades reported are also in line with or above the reserve
grade.
Doornkop
The development grade is in line with the previous quarter and is as
expected for the areas that are being developed on the South Reef.
Good progress is being made with the development of the South Reef
at Doornkop.
expected for the areas that are being developed on the South Reef.
Good progress is being made with the development of the South Reef
at Doornkop.
Phakisa
There was virtually no change in the quarter on quarter development
grades. Grades are as expected but will increase as more development
takes place towards the higher grade areas towards the north and
south of the shaft.
grades. Grades are as expected but will increase as more development
takes place towards the higher grade areas towards the north and
south of the shaft.
Tshepong
The Basal Reef continues to return good results from the areas in
the decline section of the mine. This is very encouraging in terms of
the future grade profile of Tshepong. The development grade from the
B Reef project area is still very erratic but very encouraging grades were
reported from some of the development raises during the quarter.
the decline section of the mine. This is very encouraging in terms of
the future grade profile of Tshepong. The development grade from the
B Reef project area is still very erratic but very encouraging grades were
reported from some of the development raises during the quarter.
Masimong
There was little change in the overall quarter on quarter Basal Reef
development grades. However, grades did improve in the south western
section of the mine while there was a decrease in the southern part of
the mine. The B Reef development grade is lower than expected as
some of the development efforts remained in areas of non-deposition
of the B Reef.
development grades. However, grades did improve in the south western
section of the mine while there was a decrease in the southern part of
the mine. The B Reef development grade is lower than expected as
some of the development efforts remained in areas of non-deposition
of the B Reef.
Target 1 (narrow reef mining)
The raises developed for narrow reef mining on the Dreyerskuil
formation continue to return good values, exceeding our expectations.
formation continue to return good values, exceeding our expectations.
Bambanani
All development is taking place in the shaft pillar. The overall
development grade remains in line with expectations and continues to
support the high grade profile of the mine. There was however a drop
in the quarterly development grade due to the intersection of a localised
lower grade area.
development grade remains in line with expectations and continues to
support the high grade profile of the mine. There was however a drop
in the quarterly development grade due to the intersection of a localised
lower grade area.
Joel
Development grades increased significantly during this quarter as a
result of good values intersected from areas with very well developed
and well mineralised Beatrix Reef. These areas will have a significant and
positive impact on the future grade profile of the mine.
result of good values intersected from areas with very well developed
and well mineralised Beatrix Reef. These areas will have a significant and
positive impact on the future grade profile of the mine.
Unisel
At Unisel, the development grade of the Basal Reef improved further
owing to the development of higher grade pillars. There was however
a drop off in grade towards the Brand 5 shaft area. The Leader Reef
continued to return encouraging development results.
owing to the development of higher grade pillars. There was however
a drop off in grade towards the Brand 5 shaft area. The Leader Reef
continued to return encouraging development results.
Target 3 (narrow reef mining)
The major focus this quarter was on A Reef development which returned
very good results. Limited development took place on the other reefs
and the development focus in the March 2013 quarter will shift towards
the Basal Reef.
very good results. Limited development took place on the other reefs
and the development focus in the March 2013 quarter will shift towards
the Basal Reef.
Evander
There was a decrease in the quarter on quarter development grade due
to some localised lower grade areas that were intersected in the decline
pay shoot area.
to some localised lower grade areas that were intersected in the decline
pay shoot area.
* No reef development was done at Steyn 2
during this period, only shaft extraction.
11
Exploration highlights
International (Papua New Guinea)
Morobe Mining Joint Venture (MMJV) (50% Harmony)
Wafi-Golpu
The joint venture participants continue to engage with the Papua New
Guinea (PNG) government and landowner representatives to ensure
Guinea (PNG) government and landowner representatives to ensure
alignment on the planned project development and key elements of the
next phase of work. Capital costs continue to be reviewed and potential
key contractors assessed.
next phase of work. Capital costs continue to be reviewed and potential
key contractors assessed.
Activities during the quarter were focused on the initial camp
construction, exploration drilling (outlined below) and refinement of
the technical development plan.
construction, exploration drilling (outlined below) and refinement of
the technical development plan.
Figure 1: Schematic section of Golpu
Since the Ore Reserve update in August 2012, a total of 11 holes have
been drilled to completion into the Golpu porphyry deposit. Data from
this drilling upgrades the gold and copper grades in Lift 1, confirms the
eastern boundary of Lift 2 and informs an improved understanding of
the structure of the deposit.
been drilled to completion into the Golpu porphyry deposit. Data from
this drilling upgrades the gold and copper grades in Lift 1, confirms the
eastern boundary of Lift 2 and informs an improved understanding of
the structure of the deposit.
Significant results received during the December 2012 quarter from
holes targeting Lift 1 include:
• WR423 758 @ 0.67g/t Au, 1.28% Cu from 333m including
251m @ 1.34g/t Au, 2.59% Cu from 840m
• WR440 286m @ 0.53g/t Au, 1.22% Cu from 474m including
134m @ 1.06g/t Au, 2.41% Cu from 624m
holes targeting Lift 1 include:
• WR423 758 @ 0.67g/t Au, 1.28% Cu from 333m including
251m @ 1.34g/t Au, 2.59% Cu from 840m
• WR440 286m @ 0.53g/t Au, 1.22% Cu from 474m including
134m @ 1.06g/t Au, 2.41% Cu from 624m
This data increases the relative volume of higher grade mineralisation in
Lift 1, raising the margin per tonne of that mining block relative to the
pre-feasibility study (PFS) estimates.
Lift 1, raising the margin per tonne of that mining block relative to the
pre-feasibility study (PFS) estimates.
Significant results received during the quarter from holes targeted
below Lift 1 include:
• WR429W_3658m @ 0.86g/t Au, 1.09% Cu from 1,240m including
246m @ 1.68g/t Au, 1.97% Cu from 1,398m
below Lift 1 include:
• WR429W_3658m @ 0.86g/t Au, 1.09% Cu from 1,240m including
246m @ 1.68g/t Au, 1.97% Cu from 1,398m
This data confirms the eastern margin of the deposit within Lift 2 and
the continuation of the high grade mineralisation below Lift 2.
the continuation of the high grade mineralisation below Lift 2.
Hidden Valley district exploration
In the Morobe Exploration JV, discovery exploration continued at
Kerimengie and commenced at Mt Tonn and Garawaria. Kerimengie
is located near Hidden Valley mine in the Wau district and is a small
historical gold deposit.
Kerimengie and commenced at Mt Tonn and Garawaria. Kerimengie
is located near Hidden Valley mine in the Wau district and is a small
historical gold deposit.
Significant results at Kerimengie include:
• QD148 66m @ 0.7g/t Au, 1.9g/t Ag from 22m
• QD150 267m @ 1.0g/t Au, 7.2g/t Ag from 5m
• QD151^ 219m @ 1.0g/t Au from 0m
• QD148 66m @ 0.7g/t Au, 1.9g/t Ag from 22m
• QD150 267m @ 1.0g/t Au, 7.2g/t Ag from 5m
• QD151^ 219m @ 1.0g/t Au from 0m
^ preliminary result reported
Follow up drilling is planned at Kerimengie.
Regionally, drilling at the Garawaria prospect 60 kilometres southeast
of Hidden Valley has commenced testing the epithermal gold target
identified through surface sampling. Drilling also commenced at Mt.
Tonn located in the Wafi Transfer Zone targeting Golpu style porphyry
mineralisation. Assay results from both programs are pending.
of Hidden Valley has commenced testing the epithermal gold target
identified through surface sampling. Drilling also commenced at Mt.
Tonn located in the Wafi Transfer Zone targeting Golpu style porphyry
mineralisation. Assay results from both programs are pending.
12
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
PNG exploration (Harmony 100%)
Figure 2: Harmony’s exploration tenements
Mt Hagen Project (EL1611 & EL1596)
At Mt Hagen, exploration work focused on review and target
development of the Penamb and Penamb NE area of the Kuringa
Intrusive Complex.
development of the Penamb and Penamb NE area of the Kuringa
Intrusive Complex.
In addition initial field reconnaissance was commenced at the Maramp
prospect located approximately 23km east of Kurunga.
prospect located approximately 23km east of Kurunga.
Penamb Prospect (EL1596)
Drilling at Penamb prospect comprised 894.5m in 2 holes
(PNDD006 – 007).
(PNDD006 – 007).
Au from 717m and has doubled the strike of the zone of 0.1% Cu
mineralization to 800m. This zone of low grade copper mineralization
remains open along strike and at depth, but drilling to date would
suggest that the possibility of an economic Cu-Au orebody within 800m
of the surface is unlikely.
mineralization to 800m. This zone of low grade copper mineralization
remains open along strike and at depth, but drilling to date would
suggest that the possibility of an economic Cu-Au orebody within 800m
of the surface is unlikely.
PNDD007 was drilled as a scissor hole to test below mapped sericite-
pyrite alteration that covers the northern margin of the prospect.
Assays remain pending but the geology and mineralisation recorded
in the logging appears to correlate with the current modeled zone of
0.1% copper.
pyrite alteration that covers the northern margin of the prospect.
Assays remain pending but the geology and mineralisation recorded
in the logging appears to correlate with the current modeled zone of
0.1% copper.
Penamb East Prospect (EL1611)
Drilling at the Penamb East prospect comprised 3 holes/1 440m
(PNDD008-010) and was designed to test a surface gold anomaly
(+100 ppb Au) extending northeast from Penamb prospect over
approximately 2km. Core processing was in progress at quarter end
and assays have not yet been received.
(PNDD008-010) and was designed to test a surface gold anomaly
(+100 ppb Au) extending northeast from Penamb prospect over
approximately 2km. Core processing was in progress at quarter end
and assays have not yet been received.
Geology encountered in the drilling was similar to that at Kurunga, and
comprised andesites and bedded sediments of the Kana Volcanics with
various intrusive units including feldspar–quartz-hornblende porphyry,
coarse feldspar porphyry, and hornblende diorite.
comprised andesites and bedded sediments of the Kana Volcanics with
various intrusive units including feldspar–quartz-hornblende porphyry,
coarse feldspar porphyry, and hornblende diorite.
Epithermal mineralisation was evident in holes PNDD008 and PNDD009
as several zones of quartz-carbonate base metal veins, although these
stockwork zones were narrow and weakly developed. PNDD010 failed
to intersect epithermal mineralisation.
as several zones of quartz-carbonate base metal veins, although these
stockwork zones were narrow and weakly developed. PNDD010 failed
to intersect epithermal mineralisation.
Southern Highlands project (EL1786)
Surface sampling and mapping continued during the quarter with
394 soil samples and 54 rock chip samples collected. Initial results
for the survey indicate predominantly low tenor for copper and gold.
However, the over-thrust Dari Limestone contains distinct Au-Pb-Zn
anomalism with variable gold assays to 1.2 g/t Au associated with iron
rich skarn.
394 soil samples and 54 rock chip samples collected. Initial results
for the survey indicate predominantly low tenor for copper and gold.
However, the over-thrust Dari Limestone contains distinct Au-Pb-Zn
anomalism with variable gold assays to 1.2 g/t Au associated with iron
rich skarn.
A plan for first pass drilling comprising 7 holes/4000m was finalised
for the Lake Kopiago prospect. This drilling has been designed
predominantly to outline broad sections over 800m apart to identify
large scale alteration and mineralisation vectors below cover. The drilling
will also test critical lithological contacts and the Au-base metal skarns
identified from the mapping.
for the Lake Kopiago prospect. This drilling has been designed
predominantly to outline broad sections over 800m apart to identify
large scale alteration and mineralisation vectors below cover. The drilling
will also test critical lithological contacts and the Au-base metal skarns
identified from the mapping.
13
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
(“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
Q2 FY13
Results for the
second quarter FY13
and six months ended
31 December 2012
(Rand/US$)
14
15
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
Operating results
(Rand/Metric) (US$/Imperial)
South Africa
Hidden
Valley
Total
Continuing
Operations
Harmony
Total
Underground production
Surface production
Other
Total
South
Africa
Africa
Discontinued Operations
Three
months
Ended
months
Ended
Kusasa-
lethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1
Bamba-
nani
Joel
Unisel
Target 3
Steyn 2
Total
Under-
ground
Phoenix
Dumps
Kalgold
Total
Surface
Evander
Evander
Surface
Ore milled
– t’000
Dec-12
138
272
128
254
216
178
42
154
117
82
13
1 594
1 276
825
309
2 410
–
4 004
456
4 460
91
50
4 601
Sep-12
328
245
142
313
261
178
33
167
116
87
10
1 880
1 286
714
390
2 390
–
4 270
491
4 761
117
42
4 920
Gold produced
– kg
Dec-12
402
1 004
688
1 151
991
1 086
357
850
532
431
116
7 608
208
290
326
824
–
8 432
642
9 074
625
38
9 737
Sep-12
1 601
871
679
1 159
987
1 071
337
900
430
367
101
8 503
201
280
340
821
–
9 324
689
10 013
758
59
10 830
Gold produced
– oz
Dec-12
12 925
32 279
22 120
37 005
31 861
34 916
11 478
27 328
17 104
13 857
3 729
244 602
6 687
9 323
10 481
26 491
–
271 093
20 641
291 734
20 094
1 222
313 050
Sep-12
51 473
28 003
21 830
37 263
31 733
34 433
10 835
28 936
13 825
11 799
3 247
273 377
6 462
9 002
10 931
26 395
–
299 772
22 152
321 924
24 370
1 897
348 191
Yield
– g/tonne
Dec-12
2.91
3.69
5.38
4.53
4.59
6.10
8.50
5.52
4.55
5.26
8.92
4.77
0.16
0.35
1.06
0.34
–
2.11
1.41
2.03
6.87
0.76
2.12
Sep-12
4.88
3.56
4.78
3.70
3.78
6.02
10.21
5.39
3.71
4.22
10.10
4.52
0.16
0.39
0.87
0.34
–
2.18
1.40
2.10
6.48
1.40
2.20
Cash operating
costs
costs
– R/kg
Dec-12
857 928
269 449
338 233
309 081
252 109
212 656
332 224
194 233
280 244
305 935
300 069
300 225
261 135
335 490
291 991
299 511
–
300 155
451 424
310 858
298 787
281 789
309 969
Sep-12
282 606
294 156
367 785
329 079
265 698
221 587
329 674
189 823
338 063
359 738
383 436
286 654
287 239
378 161
251 459
303 430
–
288 131
379 303
294 404
268 673
143 220
291 780
Cash operating
costs
costs
– $/oz
Dec-12
3 078
967
1 214
1 109
905
763
1 192
697
1 006
1 098
1 077
1 077
937
1 204
1 048
1 075
–
1 077
1 620
1 115
1 072
1 011
1 112
Sep-12
1 066
1 109
1 387
1 241
1 002
836
1 243
716
1 275
1 357
1 446
1 081
1 083
1 426
948
1 144
–
1 087
1 430
1 110
1 013
540
1 100
Cash operating
costs
costs
– R/tonne
Dec-12
2 499
995
1 818
1 401
1 157
1 297
2 824
1 072
1 274
1 608
2 678
1 433
43
118
308
102
–
632
636
632
2 052
214
656
Sep-12
1 379
1 046
1 759
1 219
1 005
1 333
3 367
1 023
1 253
1 518
3 873
1 296
45
148
219
104
–
629
532
619
1 741
201
642
Gold sold
– kg
Dec-12
597
1 070
707
1 184
1 019
1 118
367
933
547
444
119
8 105
211
291
317
819
–
8 924
690
9 614
607
38
10 259
Sep-12
1 545
848
678
1 158
986
1 008
337
856
430
345
101
8 292
179
269
316
764
–
9 056
648
9 704
714
59
10 477
Gold sold
– oz
Dec-12
19 194
34 401
22 731
38 066
32 762
35 944
11 799
29 997
17 586
14 275
3 826
260 581
6 784
9 356
10 192
26 332
–
286 913
22 184
309 097
19 515
1 222
329 834
Sep-12
49 673
27 264
21 798
37 231
31 701
32 408
10 835
27 521
13 825
11 092
3 247
266 595
5 755
8 648
10 160
24 563
–
291 158
20 834
311 992
22 956
1 897
336 845
Revenue
(R’000)
Dec-12
292 482
511 124
339 811
567 915
488 974
536 138
175 758
446 403
262 752
213 106
57 136
3 891 599
101 280
139 392
151 485
392 157
–
4 283 756
329 052
4 612 808
291 891
18 348
4 923 047
Sep-12
683 540
374 477
298 387
509 194
435 594
442 824
149 441
374 867
190 189
151 293
44 331
3 654 137
78 855
118 204
140 117
337 176
–
3 991 313
286 867
4 278 180
315 346
26 067
4 619 593
Cash operating
costs
costs
(R’000)
Dec-12
344 887
270 527
232 704
355 752
249 840
230 944
118 604
165 098
149 090
131 858
34 808
2 284 112
54 316
97 292
95 189
246 797
–
2 530 909
289 814
2 820 723
186 742
10 708
3 018 173
Sep-12
452 453
256 210
249 726
381 403
262 244
237 320
111 100
170 841
145 367
132 024
38 727
2 437 415
57 735
105 885
85 496
249 116
–
2 686 531
261 340
2 947 871
203 654
8 450
3 159 975
Inventory
movement
movement
(R’000)
Dec-12
61 045
22 803
7 532
12 994
11 005
9 912
3 661
15 533
4 248
5 679
1 046
155 458
1 994
(95)
(5 437)
(3 538)
–
151 920
6 992
158 912
(15 935)
–
142 977
Sep-12
(18 874)
(7 293)
861
1 240
(4 056)
(13 448)
(2 308)
(8 456)
372
(7 507)
36
(59 433)
(4 810)
(8 144)
(5 141)
(18 095)
–
(77 528)
(539)
(78 067)
(12 049)
–
(90 116)
Operating costs
(R’000)
Dec-12
405 932
293 330
240 236
368 746
260 845
240 856
122 265
180 631
153 338
137 537
35 854
2 439 570
56 310
97 197
89 752
243 259
–
2 682 829
296 806
2 979 635
170 807
10 708
3 161 150
Sep-12
433 579
248 917
250 587
382 643
258 188
223 872
108 792
162 385
145 739
124 517
38 763
2 377 982
52 925
97 741
80 355
231 021
–
2 609 003
260 801
2 869 804
191 605
8 450
3 069 859
Operating
profit/(loss)
profit/(loss)
(R’000)
Dec-12
(113 450)
217 794
99 575
199 169
228 129
295 282
53 493
265 772
109 414
75 569
21 282
1 452 029
44 970
42 195
61 733
148 898
–
1 600 927
32 246
1 633 173
121 084
7 640
1 761 897
Sep-12
249 961
125 560
47 800
126 551
177 406
218 952
40 649
212 482
44 450
26 776
5 568
1 276 155
25 930
20 463
59 762
106 155
–
1 382 310
26 066
1 408 376
123 741
17 617
1 549 734
Operating
profit/(loss)
profit/(loss)
($’000)
Dec-12
(13 087)
25 126
11 487
22 976
26 317
34 065
6 171
30 660
12 623
8 719
2 454
167 511
5 188
4 867
7 123
17 178
–
184 689
3 720
188 409
13 968
882
203 259
Sep-12
30 305
15 223
5 796
15 344
21 509
26 546
4 929
25 762
5 388
3 246
676
154 724
3 144
2 482
7 245
12 871
–
167 595
3 160
170 755
15 002
2 135
187 892
Capital
expenditure
expenditure
(R’000)
Dec-12
100 148
73 320
80 095
73 376
44 158
101 454
36 811
40 663
19 924
40 044
1 224
611 217
56 381
4 754
26 127
87 262
19 845
718 324
148 371
866 695
55 342
–
922 037
Sep-12
116 450
77 688
77 645
75 254
36 268
86 400
31 261
38 105
15 565
28 320
838
583 794
67 869
5 765
12 548
86 182
6 699
676 675
87 153
763 828
53 489
–
817 317
Capital
expenditure
expenditure
($’000)
Dec-12
11 553
8 458
9 240
8 465
5 094
11 704
4 247
4 691
2 298
4 620
141
70 511
6 504
548
3 014
10 066
2 289
82 866
17 117
99 983
6 384
–
106 367
Sep-12
14 119
9 419
9 414
9 124
4 397
10 475
3 790
4 620
1 887
3 434
102
70 781
8 229
699
1 521
10 449
812
82 042
10 567
92 609
6 485
–
99 094
16
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Rand)
Figures in million
Note
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December¹
2011
(Unaudited)
31 December
2012
31 December¹
2011
30 June
2012
(Audited)
Continuing operations
Revenue
4 613
4 278
4 439
8 891
8 013
15 169
Cost of sales
2
(3 524)
(3 490)
(3 116)
(7 014)
(6 091)
(12 137)
Production costs
(2 980)
(2 870)
(2 558)
(5 850)
(4 998)
(9 911)
Amortisation and depreciation
(501)
(481)
(497)
(982)
(942)
(1 921)
Other items
(43)
(139)
(61)
(182)
(151)
(305)
Gross profit
1 089
788
1 323
1 877
1 922
3 032
Corporate, administration and other
expenditure
expenditure
(111)
(106)
(85)
(217)
(165)
(352)
Social investment expenditure
(25)
(20)
(14)
(45)
(28)
(72)
Exploration expenditure
(160)
(136)
(99)
(296)
(195)
(500)
Profit on sale of property, plant
and equipment
and equipment
4
69
55
2
124
29
63
Other (expenses)/income – net
(47)
3
11
(44)
28
(50)
Operating profit
815
584
1 138
1 399
1 591
2 121
Reversal of impairment of investment
in associate
in associate
–
–
2
–
50
56
Impairment of investments
5
–
(48)
–
(48)
–
(144)
Net gain on financial instruments
92
74
61
166
38
86
Investment income
38
33
22
71
38
97
Finance cost
(75)
(58)
(80)
(133)
(150)
(286)
Profit before taxation
870
585
1 143
1 455
1 567
1 930
Taxation
6
(221)
(152)
(256)
(373)
(313)
123
Normal taxation
(115)
(111)
(60)
(226)
(100)
(199)
Deferred taxation
(106)
(41)
(196)
(147)
(213)
322
Net profit from continuing operations
649
433
887
1 082
1 254
2 053
Discontinued operations
Profit from discontinued operations
7
82
89
159
171
270
592
Net profit for the period
731
522
1 046
1 253
1 524
2 645
Attributable to:
Owners of the parent
731
522
1 046
1 253
1 524
2 645
Earnings per ordinary share (cents)
8
Earnings from continuing operations
150
100
206
250
291
477
Earnings from discontinued operations
19
21
37
40
63
137
Total earnings
169
121
243
290
354
614
Diluted earnings per ordinary share
(cents)
(cents)
8
Earnings from continuing operations
150
100
205
250
290
476
Earnings from discontinued operations
19
21
37
40
63
136
Total diluted earnings
169
121
242
290
353
612
¹ The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 7 in this regard.
The accompanying notes are an integral part of these condensed consolidated financial statements.
17
The condensed consolidated financial statements have been prepared by Harmony Gold Mining Company Limited’s
corporate reporting team headed by Mr Herman Perry, supervised by the financial director, Mr Frank Abbott. They have
been approved by the Board of Harmony Gold Mining Company Limited. The condensed consolidated financial statements
for the six months ended 31 December 2012 were reviewed by the group’s external auditors, PricewaterhouseCoopers
Incorporated (see note 16).
corporate reporting team headed by Mr Herman Perry, supervised by the financial director, Mr Frank Abbott. They have
been approved by the Board of Harmony Gold Mining Company Limited. The condensed consolidated financial statements
for the six months ended 31 December 2012 were reviewed by the group’s external auditors, PricewaterhouseCoopers
Incorporated (see note 16).
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Rand)
Figures in million
Note
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December
2011
(Unaudited)
31 December
2012
31 December
2011
30 June
2012
(Audited)
Net profit for the period
731
522
1 046
1 253
1 524
2 645
Other comprehensive income for the
period, net of income tax
period, net of income tax
197
26
179
223
1 134
1 587
Foreign exchange translation
174
26
212
200
1 136
1 485
Gain/(loss) on fair value movement
of available-for-sale investments
of available-for-sale investments
5
23
–
(33)
23
(2)
(42)
Impairment of available-for-sale
investments recognised in profit or loss
investments recognised in profit or loss
5
–
–
–
–
–
144
Total comprehensive income for
the period
the period
928
548
1 225
1 476
2 658
4 232
Attributable to:
Owners of the parent
928
548
1 225
1 476
2 658
4 232
The accompanying notes are an integral part of these condensed consolidated financial statements.
All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.
All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.
18
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
(Rand)
Figures in million
Note
At
31 December
2012
At
30 September
2012
(Unaudited)
At
30 June
2012
(Audited)
At
31 December
2011
ASSETS
Non-current assets
Property, plant and equipment
Non-current assets
Property, plant and equipment
34 028
33 334
32 853
32 830
Intangible assets
2 192
2 194
2 196
2 185
Restricted cash
37
36
36
31
Restricted investments
2 020
1 919
1 842
1 929
Deferred tax assets
554
523
486
1 179
Investments in financial assets
9
159
98
146
183
Inventories
57
58
58
169
Trade and other receivables
13
20
28
28
Total non-current assets
39 060
38 182
37 645
38 534
Current assets
Inventories
Inventories
1 085
1 185
996
990
Trade and other receivables
1 292
1 165
1 245
1 131
Income and mining taxes
–
8
118
194
Cash and cash equivalents
2 511
2 266
1 773
1 205
4 888
4 624
4 132
3 520
Assets of disposal groups classified as held for sale
7
1 822
1 658
1 423
315
Total current assets
6 710
6 282
5 555
3 835
Total assets
45 770
44 464
43 200
42 369
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
Share capital and reserves
Share capital
28 331
28 331
28 331
28 326
Other reserves
2 797
2 515
2 444
1 945
Retained earnings
4 342
3 611
3 307
2 359
Total equity
35 470
34 457
34 082
32 630
Non-current liabilities
Deferred tax liabilities
Deferred tax liabilities
3 270
3 166
3 106
4 452
Provision for environmental rehabilitation
1 912
1 895
1 865
2 092
Retirement benefit obligation
184
181
177
174
Other provisions
40
87
30
3
Borrowings
10
2 072
1 840
1 503
991
Total non-current liabilities
7 478
7 169
6 681
7 712
Current liabilities
Borrowings
Borrowings
10
301
306
313
323
Income and mining taxes
16
110
1
3
Trade and other payables
2 050
1 982
1 747
1 684
2 367
2 398
2 061
2 010
Liabilities of disposal groups classified as held for sale
7
455
440
376
17
Total current liabilities
2 822
2 838
2 437
2 027
Total equity and liabilities
45 770
44 464
43 200
42 369
The accompanying notes are an integral part of these condensed consolidated financial statements.
19
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Rand)
for the six months ended 31 December 2012
Figures in million
Share
capital
Other
reserves
Retained
earnings
Total
Balance – 30 June 2012
28 331
2 444
3 307
34 082
Share-based payments
–
130
–
130
Net profit for the period
–
–
1 253
1 253
Other comprehensive income for the period
–
223
–
223
Dividends paid ¹
–
–
(218)
(218)
Balance – 31 December 2012
28 331
2 797
4 342
35 470
Balance – 30 June 2011
28 305
762
1 093
30 160
Issue of shares
21
–
–
21
Share-based payments
–
49
–
49
Net profit for the period
–
–
1 524
1 524
Other comprehensive income for the period
–
1 134
–
1 134
Dividends paid ²
–
–
(258)
(258)
Balance – 31 December 2011
28 326
1 945
2 359
32 630
1. Dividend of 50 SA cents declared on 13 August 2012.
2. Dividend of 60 SA cents declared on 12 August 2011.
The accompanying notes are an integral part of these condensed consolidated financial statements.
20
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)
Figures in million
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December
2011
(Unaudited)
31 December
2012
31 December
2011
30 June
2012
(Audited)
Cash flow from operating activities
Cash generated by operations
Cash generated by operations
1 392
1 337
1 566
2 729
2 658
4 551
Interest and dividends received
30
26
12
56
28
80
Interest paid
(29)
(29)
(36)
(58)
(77)
(141)
Income and mining taxes (paid)/refunded
(221)
108
(149)
(113)
(149)
(277)
Cash generated by operating activities
1 172
1 442
1 393
2 614
2 460
4 213
Cash flow from investing activities
Restricted cash transferred to disposal group
Restricted cash transferred to disposal group
(90)
(162)
–
(252)
–
–
Proceeds on disposal of investment in associate
–
–
–
–
–
222
Proceeds on disposal of Evander 6 and Twistdraai
–
–
–
–
–
125
Proceeds on disposal of Merriespruit South
61
–
–
61
–
–
Other investing activities
(45)
–
3
(45)
3
(85)
Net additions to property, plant and equipment
(1 047)
(893)
(779)
(1 940)
(1 447)
(3 140)
Cash utilised by investing activities
(1 121)
(1 055)
(776)
(2 176)
(1 444)
(2 878)
Cash flow from financing activities
Borrowings raised
Borrowings raised
348
330
–
678
799
1 443
Borrowings repaid
(164)
(9)
(718)
(173)
(1 070)
(1 248)
Ordinary shares issued – net of expenses
–
–
11
–
20
26
Dividends paid
–
(218)
–
(218)
(258)
(431)
Cash generated/(utilised) by financing
activities
activities
184
103
(707)
287
(509)
(210)
Foreign currency translation adjustments
10
3
(30)
13
5
(45)
Net increase in cash and cash equivalents
245
493
(120)
738
512
1 080
Cash and cash equivalents – beginning of period
2 266
1 773
1 325
1 773
693
693
Cash and cash equivalents – end of period
2 511
2 266
1 205
2 511
1 205
1 773
The accompanying notes are an integral part of these condensed consolidated financial statements.
21
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 31 December 2012 (Rand)
1.
Accounting
policies
Basis of accounting
The condensed consolidated financial statements for the six months ended 31 December 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 2012, which have been prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are consistent with
those described in the annual financial statements, except for the adoption of applicable revised and/or new standards issued by the International
Accounting Standards Board.
The condensed consolidated financial statements for the six months ended 31 December 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 2012, 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
Figures in million
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December¹
2011
(Unaudited)
31 December
2012
31 December¹
2011
30 June
2012
(Audited)
Production costs – excluding royalty
2 912
2 814
2 513
5 726
4 922
9 791
Royalty expense
68
56
45
124
76
120
Amortisation and depreciation
501
481
497
982
942
1 921
Reversal of impairment of assets
–
–
–
–
–
(60)
Rehabilitation (credit)/expenditure
(1)
7
1
6
7
(17)
Care and maintenance cost of
restructured shafts
restructured shafts
16
20
20
36
49
88
Employment termination and
restructuring costs
restructuring costs
–
7
17
7
51
81
Share-based payments²
21
105
23
126
44
87
Other
7
–
–
7
–
126
Total cost of sales
3 524
3 490
3 116
7 014
6 091
12 137
1. The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 7 in this regard.
2. Refer to note 3 for details.
3.
Share-based
payments
This includes the cost relating to the new Employee Share Ownership Plan (ESOP) awards that were granted in August 2012. In terms of the
ESOP rules, all employees other than management were awarded a minimum of 100 Scheme Shares and 200 Share Appreciation Rights (SARs),
with employees with service longer than 10 years receiving an additional 10%. Both the Entitlement Shares and SARs vest in five equal portions
on each anniversary of the award. In addition these employees qualify for an additional cash bonus under the SARs in the event that the share
price growth is less than R18 per share. The effect of the bonus puts the employees in the position they would have been in had the share price
increased by R18 per share since issue date.
ESOP rules, all employees other than management were awarded a minimum of 100 Scheme Shares and 200 Share Appreciation Rights (SARs),
with employees with service longer than 10 years receiving an additional 10%. Both the Entitlement Shares and SARs vest in five equal portions
on each anniversary of the award. In addition these employees qualify for an additional cash bonus under the SARs in the event that the share
price growth is less than R18 per share. The effect of the bonus puts the employees in the position they would have been in had the share price
increased by R18 per share since issue date.
Harmony issued 3.5 million shares to the Tlhakanelo Share Trust on 31 August 2012. In addition, 6 817 880 SARs were issued. In terms
of IFRS 2, Share-based Payment, the SARs includes an equity-settled portion as well as a cash-settled portion related to the cash bonus.
The cash-settled portion has been recognised in the balance sheet, the fair value of which will be re-measured at each reporting date. At the
annual general meeting on 28 November 2012, the shareholders authorised the acceleration of the vesting from August to March each year.
of IFRS 2, Share-based Payment, the SARs includes an equity-settled portion as well as a cash-settled portion related to the cash bonus.
The cash-settled portion has been recognised in the balance sheet, the fair value of which will be re-measured at each reporting date. At the
annual general meeting on 28 November 2012, the shareholders authorised the acceleration of the vesting from August to March each year.
4.
Profit on sale of property, plant and equipment
During December 2012, the transaction for the sale of the Merriespruit South mining right to Witwatersrand Consolidated Gold Resources
Limited (Wits Gold) was completed, resulting in a profit of R60 million.
Limited (Wits Gold) was completed, resulting in a profit of R60 million.
5.
Impairment of investments
As at 30 June 2012, management impaired the investment in Wits Gold. A decline in the fair value of the investment on the JSE during the
September 2012 quarter was recorded in the income statement. The increase in the value of the investment during the December 2012 quarter
has been recognised in the fair value reserve.
September 2012 quarter was recorded in the income statement. The increase in the value of the investment during the December 2012 quarter
has been recognised in the fair value reserve.
6.
Taxation
The Supreme Court of Appeal’s decision on Freegold’s appeal regarding the South African Revenue Service’s (SARS) application of mining tax
ringfencing was received on 1 October 2012 and the Court found in favour of SARS. This resulted in additional normal taxes of R94 million
offset by deferred tax credits of R154 million being recognised in the June 2012 quarter as an adjusting event. Unredeemed capital deductions
are not allowed against non-mining income. However these deductions will be allowable against future mining income.
ringfencing was received on 1 October 2012 and the Court found in favour of SARS. This resulted in additional normal taxes of R94 million
offset by deferred tax credits of R154 million being recognised in the June 2012 quarter as an adjusting event. Unredeemed capital deductions
are not allowed against non-mining income. However these deductions will be allowable against future mining income.
22
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
7.
Disposal groups classified as held for sale and discontinued operations
Evander Gold Mines Limited
The assets and liabilities of 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 a sale of shares and claims agreement on 30 January 2012. On 30 May 2012,
Harmony announced the signing of a new sale of shares and claims agreement with Pan African Resources plc (Pan African).The disposal will
be for an aggregate purchase consideration of R1.5 billion, less certain distributions made by Evander to Harmony between 1 April 2012 and
the close of the transaction.
(Harmony), have been classified as held for sale following signing of a sale of shares and claims agreement on 30 January 2012. On 30 May 2012,
Harmony announced the signing of a new sale of shares and claims agreement with Pan African Resources plc (Pan African).The disposal will
be for an aggregate purchase consideration of R1.5 billion, less certain distributions made by Evander to Harmony between 1 April 2012 and
the close of the transaction.
Certain regulatory approvals were still outstanding at the reporting date.
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.
been re-presented as a result.
8.
Earnings and net asset value per share
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December¹
2011
(Unaudited)
31 December
2012
31 December¹
2011
30 June
2012
(Audited)
Weighted average number of shares (million)
431.6
431.5
430.5
431.6
430.2
430.8
Weighted average number of diluted
shares (million)
shares (million)
432.6
432.3
432.3
432.6
431.9
432.0
Total earnings per share (cents):
Basic earnings
Basic earnings
169
121
243
290
354
614
Diluted earnings
169
121
242
290
353
612
Headline earnings
158
123
242
281
337
565
– from continuing operations
139
102
205
241
275
465
– from discontinued operations
19
21
37
40
62
100
Diluted headline earnings
157
123
241
280
336
563
– from continuing operations
138
102
204
240
274
463
– from discontinued operations
19
21
37
40
62
100
Figures in million
Reconciliation of headline earnings:
Continuing operations
Net profit/(loss)
649
433
887
1 082
1 254
2 053
Adjusted for:
Reversal of impairment of investment
in associate*
Reversal of impairment of investment
in associate*
–
–
(2)
–
(50)
(56)
Impairment of investments*
–
48
–
48
–
144
Reversal of impairment of assets
–
–
–
–
–
(60)
Taxation effect on reversal of impairment
of assets
of assets
–
–
–
–
–
(34)
Profit on sale of property, plant
and equipment
and equipment
(69)
(55)
(2)
(124)
(29)
(63)
Taxation effect of profit on sale of property,
plant and equipment
plant and equipment
18
14
–
32
8
16
Headline earnings/(loss)
598
440
883
1 038
1 183
2 000
Discontinued operations
Net profit
82
89
159
171
270
592
Adjusted for:
Profit on sale of property, plant and
equipment
Profit on sale of property, plant and
equipment
–
–
(1)
–
(1)
(232)
Taxation effect of profit on sale of property,
plant and equipment
plant and equipment
–
–
–
–
–
72
Headline earnings
82
89
158
171
269
432
Total headline earnings
680
529
1 041
1 209
1 452
2 432
¹
The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 7 in this regard.
*
There is no taxation effect on these items.
23
Net asset value per share
At
31 December
2012
At
30 September
2012
(Unaudited)
At
30 June
2012
(Audited)
At
31 December
2011
Number of shares in issue
435 257 691
435 064 236
431 564 236
431 312 677
Net asset value per share (cents)
8 150
7 920
7 897
7 565
9.
Investments in financial assets
During the December 2012 quarter, an additional 3.9% interest in Rand Refinery was purchased for R39 million. The investment is classified as
an available-for-sale investment and subsequent changes in fair value will be recorded in reserves.
an available-for-sale investment and subsequent changes in fair value will be recorded in reserves.
10.
Borrowings
The Nedbank revolving credit facility of R850 million is available until December 2013.
The balance on the Nedbank term facilities at 31 December 2012 is R610 million, following a payment of R153 million at the end of
December 2012.
December 2012.
Two draw downs of US$40 million each (R330 million and R348 million) were made from the US$300 million syndicated revolving credit facility
during the September and December 2012 quarters, respectively. This takes the outstanding amount to US$210 million. The facility is repayable
by September 2015.
during the September and December 2012 quarters, respectively. This takes the outstanding amount to US$210 million. The facility is repayable
by September 2015.
11.
Commitments and contingencies
Figures in million
At
31 December
2012
At
30 September
2012
(Unaudited)
At
30 June
2012
(Audited)
At
31 December
2011
Capital expenditure commitments:
Contracts for capital expenditure
Contracts for capital expenditure
576
510
519
291
Authorised by the directors but not contracted for
1 572
2 263
2 257
3 373
2 148
2 773
2 776
3 664
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 2012, available on the
group’s website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2012, with the exception of the items
discussed below.
group’s website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2012, with the exception of the items
discussed below.
Following management’s decision to keep Kusasalethu closed after the Christmas break and to commence with a process in terms of
Section 189A of the Labour Relations Act, 66 of 1995, there is a possibility that the mine may be closed and placed on care and maintenance,
which would result in retrenchments. Management estimated that the costs of the retrenchment would be approximately R325 million. At the
date of reporting, management and employees representatives were engaged in discussions facilitated by the Commission of Conciliation,
Mediation and Arbitration (CCMA).
Section 189A of the Labour Relations Act, 66 of 1995, there is a possibility that the mine may be closed and placed on care and maintenance,
which would result in retrenchments. Management estimated that the costs of the retrenchment would be approximately R325 million. At the
date of reporting, management and employees representatives were engaged in discussions facilitated by the Commission of Conciliation,
Mediation and Arbitration (CCMA).
12.
Subsequent
events
(a)
On 1 February 2013, the Board approved an interim divided of 50 SA cents, amounting to approximately R218 million, payable on
11 March 2013.
(b)
Kusasalethu has been temporarily closed. Refer to note 11 for further discussion.
13.
Segment
report
The segment report follows on the page 25.
24
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
14.
Reconciliation of segment information to consolidated income statements
Figures in million
Six months ended
31 December
2012
(Unaudited)
31 December¹
2011
(Unaudited)
The “Reconciliation of segment information to consolidated income statements” 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:
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
Total segment revenue
9 542
8 749
Total segment production costs
(6 231)
(5 366)
Production profit per segment report
3 311
3 383
Discontinued operations
(270)
(368)
Production profit from continuing operations
3 041
3 015
Cost of sales items, other than production costs and royalty expense
(1 164)
(1 093)
Gross profit as per income statements*
1 877
1 922
¹
The comparative figures are re-presented due to Evander being reclassified as a discontinued operation. See note 7 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.
15.
Related
parties
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the
group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the September 2012 quarter, Harmony
shares were purchased by certain directors as set out below:
group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the September 2012 quarter, Harmony
shares were purchased by certain directors as set out below:
Graham Briggs
14 347 shares
Frank Abbott
73 900 shares
Ken Dicks
12 500 shares
16.
Review
report
The condensed consolidated financial statements for the six months ended 31 December 2012 on pages 16 to 25 have been reviewed in
accordance with International Standards on Review Engagements 2410 – “Review of interim financial information performed by the
Independent Auditors of the entity” by PricewaterhouseCoopers Inc. Their unqualified review report is available for inspection at the company’s
registered office.
accordance with International Standards on Review Engagements 2410 – “Review of interim financial information performed by the
Independent Auditors of the entity” by PricewaterhouseCoopers Inc. Their unqualified review report is available for inspection at the company’s
registered office.
25
Segment report
(Rand/Metric)
for the six months ended 31 December 2012
Revenue
Production cost
Production profit/(loss)
Capital expenditure
#
Kilograms produced*
Tonnes milled *
31 December
31 December
31 December
31 December
31 December
31 December
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
South Africa
Underground
Kusasalethu
976
1 099
840
660
136
439
217
211
2 003
2 822
466
587
Doornkop
886
746
542
448
344
298
151
139
1 875
1 763
517
509
Phakisa
638
501
491
389
147
112
158
149
1 367
1 184
270
239
Tshepong
1 077
1 164
751
631
326
533
149
135
2 310
2 738
567
593
Masimong
925
715
519
438
406
277
80
122
1 978
1 690
477
464
Target 1
979
822
465
422
514
400
188
128
2 157
1 960
356
418
Bambanani
426
322
306
365
120
(43)
70
143
911
825
98
132
Joel
821
612
343
299
478
313
79
28
1 750
1 418
321
297
Unisel
453
343
299
251
154
92
35
34
962
802
233
192
Target 3
364
225
262
213
102
12
68
36
798
537
169
154
Surface
All other surface operations
All other surface operations
730
744
474
466
256
278
200
62
1 645
1 767
4 800
4 619
Total South Africa
8 275
7 293
5 292
4 582
2 983
2 711
1 395
1 187
17 756
17 506
8 274
8 204
International
Hidden Valley
616
720
558
416
58
304
236
93
1 331
1 608
947
889
Total international
616
720
558
416
58
304
236
93
1 331
1 608
947
889
Total continuing operations
8 891
8 013
5 850
4 998
3 041
3 015
1 631
1 280
19 087
19 114
9 221
9 093
Discontinued operations
Evander
651
736
381
368
270
368
109
88
1 480
1 811
300
319
Total discontinued operations
651
736
381
368
270
368
109
88
1 480
1 811
300
319
Total operations
9 542
8 749
6 231
5 366
3 311
3 383
1 740
1 368
20 567
20 925
9 521
9 412
Reconciliation of the segment
information to the consolidated
income statement (refer to note 14)
information to the consolidated
income statement (refer to note 14)
(651)
(736)
(381)
(368)
8 891
8 013
5 850
4 998
* Production statistics are unaudited.
#
Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R255 million (2011: R114 million).
26
27
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
Operating results
(US$/Imperial)
South Africa
Hidden
Valley
Total
Continuing
Operations
Harmony
Total
Underground production
Surface production
Other
Total
South
Africa
Africa
Discontinued Operations
Three
months
Ended
months
Ended
Kusasa-
lethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1
Bamba-
nani
Joel
Unisel
Target 3
Steyn 2
Total
Under-
ground
Phoenix
Dumps
Kalgold
Total
Surface
Evander
Evander
Surface
Ore milled
– t’000
Dec-12
152
300
141
280
238
196
46
170
129
90
14
1 756
1 407
910
341
2 658
–
4 414
503
4 917
100
55
5 072
Sep-12
362
270
157
345
288
196
36
184
128
96
11
2 073
1 418
788
430
2 636
–
4 709
541
5 250
129
46
5 425
Gold produced
– oz
Dec-12
12 925
32 279
22 120
37 005
31 861
34 916
11 478
27 328
17 104
13 857
3 729
244 602
6 687
9 323
10 481
26 491
–
271 093
20 641
291 734
20 094
1 222
313 050
Sep-12
51 473
28 003
21 830
37 263
31 733
34 433
10 835
28 936
13 825
11 799
3 247
273 377
6 462
9 002
10 931
26 395
–
299 772
22 152
321 924
24 370
1 897
348 191
Yield
–
oz/t
Dec-12
0.085
0.108
0.157
0.132
0.134
0.178
0.250
0.161
0.133
0.154
0.266
0.139
0.005
0.010
0.031
0.010
–
0.061
0.041
0.059
0.201
0.022
0.062
Sep-12
0.142
0.104
0.139
0.108
0.110
0.176
0.301
0.157
0.108
0.123
0.295
0.132
0.005
0.011
0.025
0.010
–
0.064
0.041
0.061
0.189
0.041
0.064
Cash operating
costs
costs
– $/oz
Dec-12
3 078
967
1 214
1 109
905
763
1 192
697
1 006
1 098
1 077
1 077
937
1 204
1 048
1 075
–
1 077
1 620
1 115
1 072
1 011
1 112
Sep-12
1 066
1 109
1 387
1 241
1 002
836
1 243
716
1 275
1 357
1 446
1 081
1 083
1 426
948
1 144
–
1 087
1 430
1 110
1 013
540
1 100
Cash operating
costs
costs
– $/t
Dec-12
262
104
190
147
121
136
297
112
133
169
287
150
4
12
32
11
–
66
66
66
215
22
69
Sep-12
152
115
193
134
110
147
374
113
138
167
427
143
5
16
24
11
–
69
59
68
191
22
71
Gold sold
– oz
Dec-12
19 194
34 401
22 731
38 066
32 762
35 944
11 799
29 997
17 586
14 275
3 826
260 581
6 784
9 356
10 192
26 332
–
286 913
22 184
309 097
19 515
1 222
329 834
Sep-12
49 673
27 264
21 798
37 231
31 701
32 408
10 835
27 521
13 825
11 092
3 247
266 595
5 755
8 648
10 160
24 563
–
291 158
20 834
311 992
22 956
1 897
336 845
Revenue
($’000)
Dec-12
33 742
58 965
39 202
65 516
56 409
61 850
20 276
51 498
30 312
24 585
6 591
448 946
11 684
16 080
17 476
45 240
–
494 186
37 960
532 146
33 673
2 117
567 936
Sep-12
82 874
45 403
36 177
61 736
52 813
53 689
18 119
45 450
23 059
18 343
5 375
443 038
9 561
14 332
16 988
40 881
–
483 919
34 781
518 700
38 233
3 160
560 093
Cash operating
costs
costs
($’000)
Dec-12
39 787
31 208
26 846
41 041
28 822
26 642
13 683
19 046
17 199
15 211
4 016
263 501
6 266
11 224
10 980
28 470
–
291 971
33 433
325 404
21 543
1 235
348 182
Sep-12
54 857
31 064
30 277
46 242
31 796
28 773
13 470
20 713
17 626
16 007
4 695
295 520
7 000
12 837
10 366
30 203
–
325 723
31 686
357 409
24 692
1 025
383 126
Inventory
movement
movement
($’000)
Dec-12
7 042
2 631
869
1 499
1 270
1 143
422
1 792
490
655
121
17 934
230
(11)
(627)
(408)
–
17 526
807
18 333
(1 838)
–
16 495
Sep-12
(2 288)
(884)
104
150
(492)
(1 630)
(280)
(1 025)
45
(910)
4
(7 206)
(583)
(987)
(623)
(2 193)
–
(9 399)
(65)
(9 464)
(1 461)
–
(10 925)
Operating costs
($’000)
Dec-12
46 829
33 839
27 715
42 540
30 092
27 785
14 105
20 838
17 689
15 866
4 137
281 435
6 496
11 213
10 353
28 062
–
309 497
34 240
343 737
19 705
1 235
364 677
Sep-12
52 569
30 180
30 381
46 392
31 304
27 143
13 190
19 688
17 671
15 097
4 699
288 314
6 417
11 850
9 743
28 010
–
316 324
31 621
347 945
23 231
1 025
372 201
Operating profit
($’000)
Dec-12
(13 087)
25 126
11 487
22 976
26 317
34 065
6 171
30 660
12 623
8 719
2 454
167 511
5 188
4 867
7 123
17 178
–
184 689
3 720
188 409
13 968
882
203 259
Sep-12
30 305
15 223
5 796
15 344
21 509
26 546
4 929
25 762
5 388
3 246
676
154 724
3 144
2 482
7 245
12 871
–
167 595
3 160
170 755
15 002
2 135
187 892
Capital
expenditure
expenditure
($’000)
Dec-12
11 553
8 458
9 240
8 465
5 094
11 704
4 247
4 691
2 298
4 620
141
70 511
6 504
548
3 014
10 066
2 289
82 866
17 117
99 983
6 384
–
106 367
Sep-12
14 119
9 419
9 414
9 124
4 397
10 475
3 790
4 620
1 887
3 434
102
70 781
8 229
699
1 521
10 449
812
82 042
10 567
92 609
6 485
–
99 094
28
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
CONDENSED CONSOLIDATED INCOME STATEMENTS
(US$)
(Convenience translation)
Figures in million
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December¹
2011
(Unaudited)
31 December
2012
(Unaudited)
31 December¹
2011
(Unaudited)
30 June
2012
(Audited)
Continuing operations
Revenue
532
519
548
1 051
1 053
1 953
Cost of sales
(407)
(423)
(385)
(829)
(799)
(1 561)
Production costs
(344)
(348)
(316)
(691)
(657)
(1 276)
Amortisation and depreciation
(58)
(58)
(61)
(116)
(124)
(247)
Other items
(5)
(17)
(8)
(22)
(18)
(38)
Gross profit
125
96
163
222
254
392
Corporate, administration and other expenditure
(13)
(13)
(10)
(26)
(22)
(45)
Social investment expenditure
(3)
(2)
(2)
(5)
(4)
(9)
Exploration expenditure
(18)
(16)
(12)
(35)
(26)
(64)
Profit on sale of property, plant and equipment
8
7
–
15
4
8
Other (expenses)/income – net
(5)
–
1
(5)
3
(6)
Operating profit
94
72
140
166
209
276
Reversal of impairment of investment in associate
–
–
–
–
7
7
Impairment of investments
–
(6)
–
(6)
–
(19)
Net gain on financial instruments
11
9
8
20
5
11
Investment income
4
4
3
8
5
12
Finance cost
(9)
(7)
(10)
(15)
(20)
(37)
Profit before taxation
100
72
141
173
206
250
Taxation
(25)
(18)
(31)
(44)
(41)
16
Normal taxation
(13)
(13)
(7)
(27)
(13)
(25)
Deferred taxation
(12)
(5)
(24)
(17)
(28)
41
Net profit from continuing operations
75
54
110
129
165
266
Discontinued operations
Profit from discontinued operations
9
11
19
20
35
75
Net profit for the period
84
65
129
149
200
341
Attributable to:
Owners of the parent
Owners of the parent
84
65
129
149
200
341
Earnings per ordinary share (cents)
Earnings from continuing operations
Earnings from continuing operations
17
12
25
29
38
61
Earnings from discontinued operations
2
3
5
5
8
18
Total earnings
19
15
30
34
46
79
Diluted earnings per ordinary share (cents)
Earnings from continuing operations
Earnings from continuing operations
17
12
25
29
38
61
Earnings from discontinued operations
2
3
5
5
8
18
Total diluted earnings
19
15
30
34
46
79
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: Decenber 2012: US$1 = R8.67 (September 2012: US$1 = R8.25, December 2011:
US$1 = R8.10). For year ended: June 2012: US$1 = R7.77. Six months ended: December 2012: US$1 = R8.46 (December 2011: US$1 = R7.61).
US$1 = R8.10). For year ended: June 2012: US$1 = R7.77. Six months ended: December 2012: US$1 = R8.46 (December 2011: US$1 = R7.61).
The income statement for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
29
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
US$)
(Convenience translation)
Figures in million
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December
2011
(Unaudited)
31 December
2012
(Unaudited)
31 December
2011
(Unaudited)
30 June
2012
(Audited)
Net profit for the period
84
65
129
149
200
341
Other comprehensive income/(loss) for the
period, net of income tax
period, net of income tax
23
3
22
27
149
(595)
Foreign exchange translation
20
3
26
24
149
(607)
Gain/(loss) on fair value movement of
available-for-sale investments
available-for-sale investments
3
–
(4)
3
–
(7)
Impairment of available-for-sale investments
recognised in profit or loss
recognised in profit or loss
–
–
–
–
–
19
Total comprehensive income/(loss)
for the period
for the period
107
68
151
176
349
(254)
Attributable to:
Owners of the parent
107
68
151
176
349
(254)
The currency conversion average rates for the quarter ended: September 2012: US$1 = R8.67 (September 2012: US$1 = R8.25, December 2011:
US$1 = R8.10). For year ended: June 2012: US$1 = R7.77. Six months ended: December 2012: US$1 = R8.46 (December 2011: US$1 = R7.61).
US$1 = R8.10). For year ended: June 2012: US$1 = R7.77. Six months ended: December 2012: US$1 = R8.46 (December 2011: US$1 = R7.61).
The statement of comprehensive income for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.
Note on convenience translations
Except where specific statements have been extracted from the 2012 Annual Report, the requirements of IAS 21, The Effects
of the Changes in Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial
statements presented on pages 28 to 33.
of the Changes in Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial
statements presented on pages 28 to 33.
30
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
CONDENSED CONSOLIDATED BALANCE SHEETS (US$)
(Convenience translation)
Figures in million
At
31 December
2012
(Unaudited)
At
30 September
2012
(Unaudited)
At
30 June
2012
(Audited)
At
31 December
2011
(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment
Non-current assets
Property, plant and equipment
4 003
4 045
4 003
4 050
Intangible assets
258
266
268
269
Restricted cash
4
4
4
4
Restricted investments
238
233
224
238
Deferred tax assets
65
63
59
145
Investments in financial assets
19
12
18
23
Inventories
7
7
7
21
Trade and other receivables
2
2
3
3
Total non-current assets
4 596
4 632
4 586
4 753
Current assets
Inventories
Inventories
128
144
121
122
Trade and other receivables
152
141
152
139
Income and mining taxes
–
1
14
24
Cash and cash equivalents
295
275
216
149
575
561
503
434
Assets of disposal groups classified as held for sale
215
202
174
39
Total current assets
790
763
677
473
Total assets
5 386
5 395
5 263
5 226
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
Share capital and reserves
Share capital
3 333
3 438
4 036
3 494
Other reserves
329
305
(64)
240
Retained earnings
511
438
180
291
Total equity
4 173
4 181
4 152
4 025
Non-current liabilities
Deferred tax liabilities
Deferred tax liabilities
385
384
378
549
Provision for environmental rehabilitation
225
230
227
258
Retirement benefit obligation
22
22
22
22
Other provisions
5
11
4
–
Borrowings
244
223
183
122
Total non-current liabilities
881
870
814
951
Current liabilities
Borrowings
Borrowings
35
37
38
40
Income and mining taxes
2
13
–
–
Trade and other payables
241
241
213
208
278
291
251
248
Liabilities of disposal groups classified as held for sale
54
53
46
2
Total current liabilities
332
344
297
250
Total equity and liabilities
5 386
5 395
5 263
5 226
The balance sheet for December 2012 converted at a conversion rate of US$1 = R8.50 (September 2012: US$1 = R8.24, December 2011:
US$1 = R8.11, June 2012: US$1 = R8.21).
US$1 = R8.11, June 2012: US$1 = R8.21).
The balance sheet as at 30 June 2012 has been extracted from the 2012 Annual Report.
31
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(US$) (Unaudited)
for the six months ended 31 December 2012 (Convenience translation)
Figures in million
Share
capital
Other
reserves
Retained
earnings
Total
Balance – 30 June 2012
3 333
287
389
4 009
Share-based payments
–
16
–
16
Net profit for the period
–
–
147
147
Other comprehensive income for the period
–
26
–
26
Dividends paid
–
–
(25)
(25)
Balance – 31 December 2012
3 333
329
511
4 173
Balance – 30 June 2011
3 491
94
135
3 720
Issue of shares
3
–
–
3
Share-based payments
–
6
–
6
Net profit for the period
–
–
188
188
Other comprehensive income for the period
–
140
–
140
Dividends paid
–
–
(32)
(32)
Balance – 31 December 2011
3 494
240
291
4 025
The currency conversion closing rates for the year ended 31 December 2012: US$1 = R8.50 (December 2011: US$1 = R8.11).
32
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(US$)
(Convenience translation)
Figures in million
Quarter ended
Six months ended
Year ended
31 December
2012
(Unaudited)
30 September
2012
(Unaudited)
31 December
2011
(Unaudited)
31 December
2012
(Unaudited)
31 December
2011
(Unaudited)
30 June
2012
(Audited)
Cash flow from operating activities
Cash generated by operations
Cash generated by operations
161
162
193
323
349
586
Interest and dividends received
4
3
2
7
4
10
Interest paid
(4)
(4)
(4)
(8)
(10)
(18)
Income and mining taxes (paid)/refunded
(25)
13
(18)
(13)
(20)
(33)
Cash generated by operating activities
136
174
173
309
323
545
Cash flow from investing activities
Restricted cash transferred to disposal group
Restricted cash transferred to disposal group
(10)
(20)
–
(30)
–
–
Proceeds on disposal of investment in associate
–
–
–
–
–
28
Proceeds on disposal of Evander 6 and Twistdraai
–
–
–
–
–
15
Proceeds on disposal of Merriespruit South
7
–
–
7
–
–
Other investing activities
(5)
–
–
(5)
–
(10)
Net additions to property, plant and equipment
(121)
(108)
(96)
(229)
(190)
(404)
Cash utilised by investing activities
(129)
(128)
(96)
(257)
(190)
(371)
Cash flow from financing activities
Borrowings raised
Borrowings raised
40
40
–
80
105
188
Borrowings repaid
(19)
(1)
(89)
(20)
(141)
(159)
Ordinary shares issued – net of expenses
–
–
1
–
3
3
Dividends paid
–
(26)
–
(26)
(34)
(57)
Cash generated/(utilised) by financing
activities
activities
21
13
(88)
34
(67)
(25)
Foreign currency translation adjustments
(8)
–
(4)
(7)
(19)
(35)
Net increase in cash and cash equivalents
20
59
(15)
79
47
114
Cash and cash equivalents – beginning of period
275
216
164
216
102
102
Cash and cash equivalents – end of period
295
275
149
295
149
216
The currency conversion average rates for the quarter ended: December 2012: US$1 = R8.67 (September 2012: US$1 = R8.25, December 2011:
US$1 = R8.10). For year ended: June 2012: US$1 = R7.77. Six months ended: December 2012: US$1 = R8.46 (December 2011: US$1 = R7.61).
US$1 = R8.10). For year ended: June 2012: US$1 = R7.77. Six months ended: December 2012: US$1 = R8.46 (December 2011: US$1 = R7.61).
Closing balance translated at closing rates of: December 2012: US$1 = R8.50 (September 2012: US$1 = R8.25, December 2011: US$1 = R8.11).
The cash flow statement for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
33
Segment report
(US$/Imperial) (Unaudited)
for the six months ended 31 December 2012
Revenue
Production cost
Production profit/(loss)
Capital expenditure #
Ounces produced
Tons milled
31 December
31 December
31 December
31 December
31 December
31 December
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
Underground
Kusasalethu
115
144
99
87
16
57
26
28
64 398
90 729
514
647
Doornkop
105
98
64
59
41
39
18
18
60 282
56 682
570
561
Phakisa
75
66
58
51
17
15
19
20
43 950
38 066
298
264
Tshepong
127
153
89
83
38
70
18
18
74 268
88 028
625
653
Masimong
109
94
61
58
48
36
10
16
63 594
54 335
526
512
Target 1
116
109
55
55
61
54
23
17
69 349
63 016
392
461
Bambanani
50
42
36
48
14
(6)
8
19
29 289
26 524
107
146
Joel
97
80
41
39
56
41
9
4
56 264
45 590
354
327
Unisel
54
45
35
33
19
12
4
4
30 929
25 785
257
211
Target 3
43
29
31
28
12
1
8
5
25 656
17 265
186
170
Surface
All other surface operations
All other surface operations
87
98
56
61
31
37
24
6
52 886
56 811
5 294
5 092
Total South Africa
978
958
625
602
353
356
167
155
570 865
562 831
9 123
9 044
International
Hidden Valley
Hidden Valley
73
95
66
55
7
40
28
12
42 793
51 698
1 044
981
Total international
73
95
66
55
7
40
28
12
42 793
51 698
1 044
981
Total continuing operations
1 051
1 053
691
657
360
396
195
167
613 658
614 529
10 167
10 025
Discontinued operations
Evander
Evander
75
96
45
49
30
47
13
12
47 583
58 225
330
352
Total discontinued operations
75
96
45
49
30
47
13
12
47 583
58 225
330
352
Total operations
1 126
1 149
736
706
390
443
208
179
661 241
672 754
10 497
10 377
# Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of US$30 million (2011: US$15 million).
34
Results for the second quarter FY13
and six months ended 31 December 2012
and six months ended 31 December 2012
DEVELOPMENT RESULTS
(Metric)
Quarter ended December 2012
Channel
Channel
Reef
Sampled
width
value
Gold
Meters
Meters
(Cm’s)
(g/t)
(Cmg/t)
Kusasalethu
VCR Reef
394
383
84.81
19.91
1 688
All Reefs
394
383
84.81
19.91
1 688
Doornkop
South Reef
330
342
37.22
21.07
784
All Reefs
330
342
37.22
21.07
784
Phakisa
Basal
414
429
97.09
10.22
993
All Reefs
414
429
97.09
10.22
993
Tshepong
Basal
371
356
8.89
172.87
1 536
B Reef
300
259
58.06
13.97
811
All Reefs
671
615
29.57
41.64
1 231
Masimong 5
Basal
304
297
51.79
16.74
867
B Reef
123
126
82.49
10.32
851
All Reefs
426
423
60.95
14.15
862
Target
Elsburg
296
227
139.28
8.01
1 116
Basal
3
7
22.00
32.35
712
A Reef
115
75
138.02
11.03
1 523
B Reef
84
57
139.57
13.14
1 834
All Reefs
498
365
136.82
9.52
1 302
Target 1
Elsburg
115
82
234.88
7.96
1 870
All Reefs
115
82
234.88
7.96
1 870
Total Bambanani
(Incl. Bambanani. Steyn 2)
Basal
61
61
166.88
17.00
2 836
All Reefs
61
61
166.88
17.00
2 836
Joel
Beatrix
193
182
228.62
7.97
1 823
All Reefs
193
182
228.62
7.97
1 823
Unisel
Basal
293.6
229
138.20
12.57
1 737
Leader
428.1
363
209.44
6.21
1 300
All Reefs
722
592
181.90
8.08
1 469
Target 3
Elsburg
181
145
85.21
8.09
689
Basal
3
7
22.00
32.35
712
A Reef
115
75
138.02
11.03
1 523
B Reef
84
57
139.57
13.14
1 834
All Reefs
383
283
108.40
10.49
1 138
Evander 8
Kimberley
380
378
29.47
52.35
1 542
All Reefs
380
378
29.47
52.35
1 542
Total Harmony
Basal
1 446
1 378
74.10
17.68
1 310
Beatrix
193
182
228.62
7.97
1 823
Leader
428
363
209.44
6.21
1 300
B Reef
507
441
75.48
12.64
954
A Reef
114.6
74.5
138.02
11.03
1 523
Elsburg
296.2
227
139.28
8.01
1 116
Kimberley
379.6
378
29.47
52.35
1 542
South Reef
330
342
37.22
21.07
784
VCR
394
383
84.81
19.91
1 688
All Reefs
4 088
3 769
93.22
13.93
1 299
DEVELOPMENT RESULTS
(Imperial)
Quarter ended December 2012
Channel
Channel
Reef
Sampled
Width
Value
Gold
Feet
Feet
(Inch)
(oz/t)
(In.oz/t)
Kusasalethu
VCR Reef
1 292
1 257
33
0.59
19
All Reefs
1 292
1 257
33
0.59
19
Doornkop
South Reef
1 082
1 122
15
0.60
9
All Reefs
1 082
1 122
15
0.60
9
Phakisa
Basal
1 358
1 407
38
0.30
11
All Reefs
1 358
1 407
38
0.30
11
Tshepong
Basal
1 218
1 168
3
5.88
18
B Reef
984
848
23
0.41
9
All Reefs
2 202
2 016
12
1.18
14
Masimong 5
Basal
996
973
20
0.50
10
B Reef
402
413
32
0.31
10
All Reefs
1 398
1 386
24
0.41
10
Target
Elsburg
972
745
55
0.23
13
Basal
10
23
9
0.91
8
A Reef
376
244
54
0.32
17
B Reef
277
185
55
0.38
21
All Reefs
1 634
1 198
54
0.28
15
Target 1
Elsburg
378
269
92
0.23
21
All Reefs
378
269
92
0.23
21
Total Bambanani
(Incl. Bambanani. Steyn 2)
Basal
200
200
66
0.49
33
All Reefs
200
200
66
0.49
33
Joel
Beatrix
633
598
90
0.23
21
All Reefs
633
598
90
0.23
21
Unisel
Basal
963
750
54
0.37
20
Leader
1 405
1 191
82
0.18
15
All Reefs
2 368
1 941
72
0.23
17
Target 3
Elsburg
594
476
34
0.23
8
Basal
10
23
9
0.91
8
A Reef
376
244
54
0.32
17
B Reef
277
185
55
0.38
21
All Reefs
1 256
928
43
0.30
13
Evander 8
Kimberley
1 245
1 240
12
1.48
18
All Reefs
1 245
1 240
12
1.48
18
Total Harmony
Basal
4 745
4 522
29.00
0.52
15.04
Beatrix
633
598
90.00
0.23
20.93
Leader
1 405
1 191
82.00
0.18
14.93
B Reef
1 663
1 447
30.00
0.37
10.95
A Reef
376
244
54.00
0.32
17.49
Elsburg
972
745
55.00
0.23
12.81
Kimberley
1 245
1 240
12.00
1.48
17.71
South Reef
1 082
1 122
15.00
0.60
9.00
VCR
1 292
1 257
33.00
0.59
19.39
All Reefs
13 412
12 366
37.00
0.40
15
PRINTED BY INCE (PTY) LTD
W2CF15632
35
NOTES
36
36
36
6
6
36
6
36
3
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
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
M Motloba*^ Deputy Chairman
G P Briggs Chief Executive Officer
F Abbott Financial Director
H E Mashego Executive Director
F F T De Buck*^Lead independent director
J A Chissano*1^, K V Dicks*^, Dr D S lushaba*^, C Markus*^,
M Msimang*^, J Wetton*^, A J Wilkens*
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 Msimang*^, J Wetton*^, A J Wilkens*
* Non-executive
^ Independent
1 Mozambican
^ Independent
1 Mozambican
Investor relations team
Henrika Basterfield
Investor Relations Manager
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail:
Investor Relations Manager
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail:
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:
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail:
Company Secretary
Riana Bisschoff
Telephone: +27 11 411 6020
Mobile: +27 83 629 4706
E-mail:
Telephone: +27 11 411 6020
Mobile: +27 83 629 4706
E-mail:
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
(Registration number 2000/007239/07)
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
United Kingdom Registrars
Capita Registrars
The Registry, 34 Beckenham Road, Beckenham
Kent BR3 4TU, United Kingdom
Telephone: 0871 664 0300 (UK) (calls cost 10p a minute plus network
extras, lines are open 09:00 am – 17:30 pm, Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
E-mail: shareholder.services@capitaregistrars.com
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 09:00 am – 17:30 pm, Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
E-mail: shareholder.services@capitaregistrars.com
ADR Depositary
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company, Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries:
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334
c/o American Stock Transfer and Trust Company, Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries:
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334
Sponsor
JP Morgan Equities Limited
1 Fricker Road, corner Hurlingham Road, Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
Telephone: +27 11 507 0300
Fax: +27 11 507 0503
1 Fricker Road, corner Hurlingham Road, Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
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
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
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: February 4
Harmony Gold Mining Company Limited
By: /s/ Frank Abbott
Name: Frank Abbott
Title: Financial Director
Title: Financial Director