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
5 November 2014
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
RESULTS
FOR THE FIRST
QUARTER ENDED
30 SEPTEMBER 2014
Q1 FY15
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
RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2014
Quarter
September
2014
Quarter
June
2014
Q-on-Q
variance
%
Gold produced
– kg
9 435
8 935
6
– oz
303 341
287 266
6
Cash operating costs
– R/kg
355 693
341 864
(4)
– US$/oz
1 028
1 011
(2)
Gold sold
– kg
9 987
8 635
16
– oz
321 089
277 621
16
Underground grade
– g/t
4.84
4.66
4
All-in sustaining costs
– R/kg
431 063
428 383
(1)
– US$/oz
1 245
1 267
2
Gold price received
– R/kg
443 690
435 775
2
– US$/oz
1 282
1 289
(1)
Production profit
– R million
913
847
8
– US$ million
85
81
5
Basic (loss)/earnings per share
– SAc/s
(61)
(282)
78
– USc/s
(6)
(27)
78
Headline (loss)/earnings
– Rm
(266)
129
>(100)
– US$m
(25)
12
>(100)
Headline (loss)/earnings per share
– SAc/s
(61)
30
>(100)
– USc/s
(6)
3
>(100)
KEY FEATURES
Quarter on quarter
6% increase in gold production to 9 435kg (303 341oz)
8% increase in production profit at R913 million (US$85 million)
Grade continues to increase
•
4% improvement in underground recovered grade at 4.84g/t
•
on back of 5% improvement in recovered grade for the year ended 30 June 2014
18% increase in revenue to R4.4 billion (US$412 million)
Net debt reduced from R1.0 billion to R771 million (from US$98 million to US$68 million)
Net loss reduced by 78% to R266 million loss (US$25 million)
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 with respect to Harmony’s financial
condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets
for stock and other matters. Statements in this quarter that are not historical facts are “forward-looking statements” for the purpose of the safe harbour provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical
facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words “expect”, “anticipates”, “believes”,
“intends”, “estimates” and similar expressions. These statements are only predictions. All forward-looking statements involve a number of risks, uncertainties and other factors and
we cannot assure you that such statements will prove to be correct. Risks, uncertainties and other factors could cause actual events or results to differ from those expressed or implied
by the forward-looking statements. 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 judgement 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.
condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets
for stock and other matters. Statements in this quarter that are not historical facts are “forward-looking statements” for the purpose of the safe harbour provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical
facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words “expect”, “anticipates”, “believes”,
“intends”, “estimates” and similar expressions. These statements are only predictions. All forward-looking statements involve a number of risks, uncertainties and other factors and
we cannot assure you that such statements will prove to be correct. Risks, uncertainties and other factors could cause actual events or results to differ from those expressed or implied
by the forward-looking statements. These forward-looking statements, including, among others, those relating to the future business prospects, revenues and income of Harmony,
wherever they may occur in this quarterly report and the exhibits to this quarterly report, are necessarily estimates reflecting the best judgement 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.
Harmony’s Integrated Annual Report and the Form 20-F filed with the United States’ Securities and Exchange
Commission for the financial year ended 30 June 2014 are available on our website at
http://www.harmony.co.za/investors/reporting/annual-reports.
1
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*
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 S Lushaba*^,
C Markus*^, M Msimang*^, K T Nondumo*^,
V P Pillay *^, J L Wetton*^, A J Wilkens*
* Non-executive
^ Independent
V P Pillay *^, J L Wetton*^, A J Wilkens*
* Non-executive
^ Independent
1
Mozambican
Investor relations team
Email: HarmonyIR@harmony.co.za
Henrika Ninham
Investor Relations Manager
Tel: +27 (0)11 411 2314
Mobile: +27 (0)82 759 1775
Email: henrika@harmony.co.za
Investor Relations Manager
Tel: +27 (0)11 411 2314
Mobile: +27 (0)82 759 1775
Email: henrika@harmony.co.za
Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za
Company Secretary
Riana Bisschoff
Telephone: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
E-mail: riana.bisschoff@harmony.co.za
Telephone: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
E-mail: riana.bisschoff@harmony.co.za
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 2450
Email: meetfax@linkmarketservices.co.za
(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 2450
Email: meetfax@linkmarketservices.co.za
ADR
2
Depositary
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334
2
ADR: American Depository Receipts
Sponsor
J.P. Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo
Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
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
Berlin Stock Exchange: HAM1
New York Stock Exchange, Inc: 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
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).
In South Africa Harmony appoints an ore reserve manager at each of its operations who takes responsibility for the compilation and reporting of
mineral resources and mineral reserves at their operations. In Papua New Guinea, competent persons are appointed for the mineral resources and
mineral reserves for specific projects and operations.
In South Africa Harmony appoints an ore reserve manager at each of its operations who takes responsibility for the compilation and reporting of
mineral resources and mineral reserves at their operations. In Papua New Guinea, competent persons are appointed for the mineral resources and
mineral reserves for specific projects and operations.
The mineral resources and mineral reserves in this report are based on information compiled by the following competent persons:
Resources and Reserves South Africa: Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat., who has 19 years’ relevant experience and is registered
with the South African Council for Natural Scientific Professions (SACNASP) and a member of the South African Institute of Mining and Metallurgy
(SAIMM).
with the South African Council for Natural Scientific Professions (SACNASP) and a member of the South African Institute of Mining and Metallurgy
(SAIMM).
Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc, who has 25 years relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM).
Institute of Mining and Metallurgy (AusIMM).
Mr Boshoff and Mr Job are full-time employees of Harmony Gold Mining Company Limited. 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.
the report of the matters based on the information in the form and context in which it appears.
Mineral Resource and Reserve information as at 30 June 2014 has not changed.
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
2
CONTENTS
SHAREHOLDER INFORMATION
Contact details and competent persons’ declaration
1
Message from the chief executive officer
3
Operational results – quarter on quarter (Rand/Metric)
(US$/Imperial)
(US$/Imperial)
5
Condensed consolidated income statements (Rand)
7
Condensed consolidated statements of
comprehensive income (Rand)
comprehensive income (Rand)
8
Condensed consolidated statements of changes in
equity (Rand)
equity (Rand)
8
Condensed consolidated balance sheets (Rand)
9
Condensed consolidated cash flow statements (Rand)
10
Notes to the condensed consolidated financial
statements
statements
11
Segment report (Rand/Metric)
15
Operational results – (US$/Imperial)
17
Condensed consolidated income statements (US$)
19
Condensed consolidated statements of
comprehensive income (US$)
comprehensive income (US$)
20
Condensed consolidated statements of changes in
equity (US$)
equity (US$)
20
Condensed consolidated balance sheets (US$)
21
Condensed consolidated cash flow statements (US$)
22
Segment report (US$/Imperial)
23
Development results – Metric and Imperial
24
Issued ordinary share capital at 30 September 2014
435 825 447
Issued ordinary share capital at 30 June 2014
435 825 447
Market capitalisation
At 30 September 2014 (ZARm)
10 765
At 30 September 2014 (US$m)
953
At 30 June 2014 (ZARm)
13 576
At 30 June 2014 (US$m)
1 276
Harmony ordinary share and ADR prices
12-month high (1 October 2013 –
30 September 2014) for ordinary shares
30 September 2014) for ordinary shares
40.32
12-month low (1 October 2013 –
30 September 2014) for ordinary shares
30 September 2014) for ordinary shares
24.48
12-month high (1 October 2013 –
30 September 2014) for ADRs
30 September 2014) for ADRs
3.77
12-month low (1 October 2013 –
30 September 2014) for ADRs
30 September 2014) for ADRs
2.16
Free float
100%
ADR ratio
1:1
JSE Limited
HAR
Range for quarter (1 July – 30 September 2014
closing prices)
closing prices)
R24.70 – R35.21
Average daily volume for the quarter
(1 July to 30 September 2014)
(1 July to 30 September 2014)
706 279 shares
Range for quarter (1 April – 30 June 2014
closing prices)
closing prices)
R27.72 – R35.60
Average daily volume for the quarter
(1 April – 30 June 2014)
(1 April – 30 June 2014)
946 701 shares
New York Stock Exchange including other
US trading platforms
US trading platforms
HMY
Range for quarter (1 July – 30 September 2014
closing prices)
closing prices)
US$2.16 – US$3.29
Average daily volume for the quarter
(1 July to 30 September 2014)
(1 July to 30 September 2014)
1 771 208 shares
Range for quarter (1 April – 30 June 2014
closing prices)
closing prices)
US$2.61 – US$3.34
Average daily volume for the quarter
(1 April – 30 June 2014)
(1 April – 30 June 2014)
2 020 458 shares
Investors’ calendar
2014/2015
Annual General Meeting
21 November 2014
Q2 FY15 live presentation from Cape Town
9 February 2015
Q3 FY15 presentation (webcast and conference
calls only)
calls only)
8 May 2015
Q4 FY15 live presentation from Johannesburg
18 August 2015
Q1 FY15 presentation (webcast and conference
calls only)
calls only)
5 November 2015
3
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
1. SAFETY
During the quarter, we continued our efforts to improve our safety.
These actions included regular visits by senior management to
underground workplaces, creating safety awareness through
increased communication and engagement with our employees
and enforcing safety accountability at each of our operations.
A majority of our operations reported safety achievements during
the quarter.
These actions included regular visits by senior management to
underground workplaces, creating safety awareness through
increased communication and engagement with our employees
and enforcing safety accountability at each of our operations.
A majority of our operations reported safety achievements during
the quarter.
It is with deep regret that I report that two people were fatally
injured in two separate incidences. They were Mhanjelwa Cebani
(driller at Doornkop) and Mmaneo Florisa Muso (tramming crew
supervisor at Tshepong). My sincere condolences go to the families,
friends and colleagues of these employees.
injured in two separate incidences. They were Mhanjelwa Cebani
(driller at Doornkop) and Mmaneo Florisa Muso (tramming crew
supervisor at Tshepong). My sincere condolences go to the families,
friends and colleagues of these employees.
2. GOLD MARKET
We are gold bulls and believe that the company must continue
to be competitive in times of low gold prices to ensure that when
the gold price strengthens, we will reap the benefits for all our
stakeholders.
to be competitive in times of low gold prices to ensure that when
the gold price strengthens, we will reap the benefits for all our
stakeholders.
During the September 2014 quarter the US dollar gold price
received remained stable at US$1 282/oz (US$1 289/oz in the June
2014 quarter). As a South African gold producer we continue
to benefit from a weaker Rand. A 2% weakening in the Rand
US dollar exchange rate to R10.77/US$ resulted in a 2% increase
in the Rand gold price received for the September 2014 quarter.
The Rand gold price received increased from R435 775/kg in the
previous quarter to R443 690/kg in the quarter under review.
received remained stable at US$1 282/oz (US$1 289/oz in the June
2014 quarter). As a South African gold producer we continue
to benefit from a weaker Rand. A 2% weakening in the Rand
US dollar exchange rate to R10.77/US$ resulted in a 2% increase
in the Rand gold price received for the September 2014 quarter.
The Rand gold price received increased from R435 775/kg in the
previous quarter to R443 690/kg in the quarter under review.
Our business plans for the financial year (FY15) were designed
to ensure that the company is profitable and cash generative at
a gold price of R425 000/kg. As 91% of our gold production
is produced in South Africa, the Rand US dollar exchange rate
remains important.
to ensure that the company is profitable and cash generative at
a gold price of R425 000/kg. As 91% of our gold production
is produced in South Africa, the Rand US dollar exchange rate
remains important.
We continue to assess our operational performance at current
gold price levels (see paragraphs 8 and 9 below). Corporate and
service costs have been reduced and we continue to look at ways
of further reducing it.
gold price levels (see paragraphs 8 and 9 below). Corporate and
service costs have been reduced and we continue to look at ways
of further reducing it.
3. OPERATIONAL RESULTS
Harmony’s underground grade continued to improve quarter on
quarter. In the September 2014 quarter, underground recovered
grade improved by 4% to 4.84g/t, on the back of a 5% year-on-
year increase in recovered grade at the end of June 2014.
quarter. In the September 2014 quarter, underground recovered
grade improved by 4% to 4.84g/t, on the back of a 5% year-on-
year increase in recovered grade at the end of June 2014.
Quarter on quarter gold production increased by 6%
(500 kilograms) to 9 435kg. The following operations contributed
to higher gold production:
(500 kilograms) to 9 435kg. The following operations contributed
to higher gold production:
• Bambanani increased its tonnes milled by 20%, whilst recovered
grade improved by 10% to 12.32g/t
• Target 1 improved recovered grade by 18% to 5.69g/t while
tonnes milled decreased by 11%
• Target 3 improved recovered grade by 25% to 5.46g/t in the
quarter under review. Tonnes milled increased by 14%
• Phakisa increased its tonnes milled by 8%. Recovered grade
was 3% higher at 5.41g/t
• Doornkop increased its recovered grade by 38% to 4.55g/t
• Unisel improved both tonnes milled and recovered grade by
16% and 5% respectively
• Masimong increased tonnes milled by 19%, but recovered
grade decreased by 5% to 3.77g/t, due to increased stoping
width during the quarter. Masimong’s grade is expected to
return to its previous level in the next quarter
return to its previous level in the next quarter
• Kalgold improved both tonnes milled and recovered grade by
1% and 20% respectively
• Phoenix tailings increased tonnes milled with 3% and improved
recovered grade from 0.12g/t to 0.14g/t
Gold production at Tshepong, Joel and Hidden Valley were lower
due to lower face grades being mined at Tshepong and Joel and
the ore blend between the Hamata and Kaveroi pits at Hidden
Valley. Kusasalethu did not achieve its planned production during
the quarter, due to equipment failures in the metallurgical plant.
due to lower face grades being mined at Tshepong and Joel and
the ore blend between the Hamata and Kaveroi pits at Hidden
Valley. Kusasalethu did not achieve its planned production during
the quarter, due to equipment failures in the metallurgical plant.
Production at the surface dumps reduced by 1% (-3kg) mainly
due to a 2% decrease in tonnes milled while the recovered grade
remained stable at 0.35g/t.
due to a 2% decrease in tonnes milled while the recovered grade
remained stable at 0.35g/t.
4. FINANCIAL RESULTS
4.1 Revenue
Revenue increased by R668 million (18%) to R4 431 million as
a result of the 16% increase in gold sold to 9 987kg and a 2%
increase in the Rand gold price received at R443 690/kg in the
September 2014 quarter.
a result of the 16% increase in gold sold to 9 987kg and a 2%
increase in the Rand gold price received at R443 690/kg in the
September 2014 quarter.
4.2 Production costs
The increase in production costs in the September 2014 quarter is
mainly as a result of gold stock movements of R301 million due
to more gold being sold than produced. Increases in electricity
costs (due to winter tariffs) and the annual labour cost increase
accounted for R272 million of the total increase.
mainly as a result of gold stock movements of R301 million due
to more gold being sold than produced. Increases in electricity
costs (due to winter tariffs) and the annual labour cost increase
accounted for R272 million of the total increase.
4.3 Amortisation and depreciation
Depreciation increased by R124 million, mainly due to the increase
in production and an increase in the depreciation rates at certain
mines following the completion of the new business plans.
in production and an increase in the depreciation rates at certain
mines following the completion of the new business plans.
4.4 Other (expenses)/income – net
The increase to R187 million in expenses in the September 2014
quarter is mainly due to the foreign exchange translation loss of
R192 million recorded on the US dollar syndicated loan, resulting
from the Rand weakening from R10.61/US$1 at 30 June 2014 to
R11.32/US$1 at 30 September 2014.
quarter is mainly due to the foreign exchange translation loss of
R192 million recorded on the US dollar syndicated loan, resulting
from the Rand weakening from R10.61/US$1 at 30 June 2014 to
R11.32/US$1 at 30 September 2014.
4.5 Loss per share
The loss per share of 61 SA cents for the September 2014 quarter
reduced from the loss per share of 282 SA cents for the June 2014
quarter.
reduced from the loss per share of 282 SA cents for the June 2014
quarter.
4.6 Borrowings
The drawn down amount on the US dollar syndicated loan
remained unchanged at US$270 million. However, the weakening
of the Rand against the dollar exchange rate resulted in an increase
in the balance in Rand terms. The balance is due at the end of
September 2015 and has been reclassified to current liabilities.
remained unchanged at US$270 million. However, the weakening
of the Rand against the dollar exchange rate resulted in an increase
in the balance in Rand terms. The balance is due at the end of
September 2015 and has been reclassified to current liabilities.
4.7 Cash and cash equivalents
Cash balances increased by R452 million to R2 281 million mainly
as a result of the increase in revenue from more gold produced and
sold, as well as increased receipts from debtors during the quarter.
as a result of the increase in revenue from more gold produced and
sold, as well as increased receipts from debtors during the quarter.
5. RECOGNITION AWARD FOR HARMONY’S
CARBON DISCLOSURE AND REPORTING
Harmony has been recognised by the CDP South Africa as the
top scorer in the CDP South Africa Climate Change Report 2014
published on 15 October 2014. CDP represents 767 investors
globally who owns around US$92 trillion in assets.
top scorer in the CDP South Africa Climate Change Report 2014
published on 15 October 2014. CDP represents 767 investors
globally who owns around US$92 trillion in assets.
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
4
Harmony attained a score of 100% for carbon disclosure and band
“A” performance for leadership in respect of energy and climate
change. CDP assesses companies’ responses against two parallel
scoring schemes, namely performance and disclosure. The highest
scoring companies for performance and/or disclosure enter
the Climate Performance Leadership Index and/or the Climate
Disclosure Leadership Index.
“A” performance for leadership in respect of energy and climate
change. CDP assesses companies’ responses against two parallel
scoring schemes, namely performance and disclosure. The highest
scoring companies for performance and/or disclosure enter
the Climate Performance Leadership Index and/or the Climate
Disclosure Leadership Index.
Harmony is the only South African company to have received
platinum awards in both the disclosure category and performance
categories.
platinum awards in both the disclosure category and performance
categories.
6. WHITE RIVERS EXPLORATION (PTY) LIMITED
(“WHITE RIVERS”) TRANSACTION
Harmony and White Rivers entered into an agreement on
12 September 2014, the main objective being to establish an
exploration joint venture to explore and develop potential gold
resources at White Rivers’ Beisa Project and abutting exploration
areas within Harmony’s adjacent Target mine. Entering into
the joint venture allows both Harmony and White Rivers the
opportunity to further enhance the value that mining contributes
in the Free State, extending the life of mining communities beyond
Harmony’s current life of mine.
12 September 2014, the main objective being to establish an
exploration joint venture to explore and develop potential gold
resources at White Rivers’ Beisa Project and abutting exploration
areas within Harmony’s adjacent Target mine. Entering into
the joint venture allows both Harmony and White Rivers the
opportunity to further enhance the value that mining contributes
in the Free State, extending the life of mining communities beyond
Harmony’s current life of mine.
Under the terms of the agreement, Harmony will have an initial
35% interest in the exploration joint venture, with White Rivers
funding and managing exploration activities to prefeasibility
study level.
35% interest in the exploration joint venture, with White Rivers
funding and managing exploration activities to prefeasibility
study level.
7. EXPLORATION
7.1 Golpu
Golpu’s new prefeasibility study is close to being finalised. Our
considerations for the new targeted outcome include:
considerations for the new targeted outcome include:
• return on investment
• project with lower capital
• near term cash flow
We aim to share the details of the prefeasibility study with the
market in December 2014.
market in December 2014.
7.2 Kili Teke – more good news from Papua New
Guinea
Some exciting initial results were reported from one of Harmony’s
100% owned exploration areas, Kili Teke in the Papua New Guinea
highlands (near Porgera). The results from surface sampling outline
a kilometer scale, copper-gold geochemical porphyry with values
of around 2.7% copper and 5.2 g/t gold.
100% owned exploration areas, Kili Teke in the Papua New Guinea
highlands (near Porgera). The results from surface sampling outline
a kilometer scale, copper-gold geochemical porphyry with values
of around 2.7% copper and 5.2 g/t gold.
8. TARGET 3 PLACED ON CARE AND
MAINTENANCE
Following the suspension of mining operations at Target 3 at the
end of the September 2014 quarter, the mine has been placed on
care and maintenance.
end of the September 2014 quarter, the mine has been placed on
care and maintenance.
9. POST QUARTER END – KUSASALETHU
As per the announcement released on 31 October 2014 (refer
www.harmony.co.za/investors), Harmony management decided to
close Kusasalethu for a two week period with the aim to remove
all illegal miners, as well as complete all security and access
control measures. No production will occur during this period and
employees will be sent on leave.
www.harmony.co.za/investors), Harmony management decided to
close Kusasalethu for a two week period with the aim to remove
all illegal miners, as well as complete all security and access
control measures. No production will occur during this period and
employees will be sent on leave.
The decision comes after a third underground fire in October
2014 month was started by illegal miners. Although no one was
2014 month was started by illegal miners. Although no one was
THE INVESTMENT CASE FOR HARMONY
Firstly, we are the most efficient South African gold miner, by focusing
on ways to improve our safety, production and cash operating costs. In
addition, we are a company that’s focused on the future. An investment
in us is not just for short-term gain – we aim to provide increasing
long-term benefits. We are able to do this primarily by funding our own
capital, which puts us in control of our business and enables us to make
decisions that have a real impact on our profitability.
on ways to improve our safety, production and cash operating costs. In
addition, we are a company that’s focused on the future. An investment
in us is not just for short-term gain – we aim to provide increasing
long-term benefits. We are able to do this primarily by funding our own
capital, which puts us in control of our business and enables us to make
decisions that have a real impact on our profitability.
Secondly, we produce more than one million ounces of gold and being
a leveraged gold company means that should the gold price rise our
margins would improve dramatically in percentage terms. Management
clearly understands this and we continue to make tough decisions
in loss-making operations when the gold price softens. However,
Harmony has a huge potential upside when the gold price strengthens,
as we believe it will in the medium to long term.
a leveraged gold company means that should the gold price rise our
margins would improve dramatically in percentage terms. Management
clearly understands this and we continue to make tough decisions
in loss-making operations when the gold price softens. However,
Harmony has a huge potential upside when the gold price strengthens,
as we believe it will in the medium to long term.
One of our key strengths at Harmony is our understanding of where
we operate – on both an economic and a social level. The countries in
which we operate and have experience, South Africa and Papua New
Guinea, are both emerging economies. They are developing countries
and we are able to contribute to local communities in a way that can
make a lasting difference. For this reason, we wholeheartedly embrace
our social licences to mine and endeavour to go beyond compliance.
we operate – on both an economic and a social level. The countries in
which we operate and have experience, South Africa and Papua New
Guinea, are both emerging economies. They are developing countries
and we are able to contribute to local communities in a way that can
make a lasting difference. For this reason, we wholeheartedly embrace
our social licences to mine and endeavour to go beyond compliance.
The final reason to invest in Harmony is Golpu. It’s a resource that we’re
sure will develop into a world-class copper gold mine, and will allow us
to sustain our business well into the future.
sure will develop into a world-class copper gold mine, and will allow us
to sustain our business well into the future.
Extract from the Integrated Report for the financial year 2014
“Chief executive officer discusses the major issues of FY14 and beyond”
www.harmony.co.za
harmed in any of these fires, it did result in ten production days
lost in October.
lost in October.
Harmony is adopting an uncompromising stance towards these
activities and is working with organised labour and the regulatory
authorities to do so. Harmony is implementing increased security
and improved clocking-in systems to tighten control on who enters
and exits its mines. The company also regularly inspects closed-
up sections to ensure that they remain sealed off and cannot be
accessed illegally.
activities and is working with organised labour and the regulatory
authorities to do so. Harmony is implementing increased security
and improved clocking-in systems to tighten control on who enters
and exits its mines. The company also regularly inspects closed-
up sections to ensure that they remain sealed off and cannot be
accessed illegally.
These illegal mining activities pose a threat not only to the illegal
miners’ own health and safety, but also to the safety of employees.
Very often these activities result in damage to property and mining
equipment and disruption to operations due to negligence,
sabotage, theft and vandalism. The activities of illegal miners
can also cause pollution, underground fires and deplete mineral
deposits, potentially making the future mining of such deposits
uneconomical.
miners’ own health and safety, but also to the safety of employees.
Very often these activities result in damage to property and mining
equipment and disruption to operations due to negligence,
sabotage, theft and vandalism. The activities of illegal miners
can also cause pollution, underground fires and deplete mineral
deposits, potentially making the future mining of such deposits
uneconomical.
Kusasalethu’s production has continued to be problematic and
management is working on an alternative plan to return the mine
to profitability.
management is working on an alternative plan to return the mine
to profitability.
10. IN CONCLUSION
Our efforts to improve efficiencies are aimed not only at mining
and processing, but in every aspect of our business. We believe
that Harmony remains undervalued and that its successes are not
currently factored into the share price.
and processing, but in every aspect of our business. We believe
that Harmony remains undervalued and that its successes are not
currently factored into the share price.
Graham Briggs
Chief executive officer
Chief executive officer
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
6
5
OPERATING RESULTS (RAND/METRIC) (US$/IMPERIAL)
South Africa
Total
Harmony
Three
months
Ended
months
Ended
Underground production
Surface production
Total
South
Africa
Africa
Hidden
Valley
Kusasa-
lethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1 Bambanani
Joel
Unisel
Target 3
Total
Underground
Phoenix
Dumps
Kalgold
Total
Surface
Ore milled
– t’000
Sep-14
290
136
158
259
185
183
59
146
114
81
1 611
1 609
636
393
2 638
4 249
521
4 770
Jun-14
286
161
146
247
156
206
49
152
98
71
1 572
1 564
649
388
2 601
4 173
525
4 698
Gold produced
– kg
Sep-14
1 334
619
855
1 078
698
1 042
727
533
477
442
7 805
233
222
326
781
8 586
849
9 435
Jun-14
1 353
532
763
1 188
616
998
549
619
392
311
7 321
192
225
268
685
8 006
929
8 935
Gold produced
– oz
Sep-14
42 889
19 901
27 489
34 658
22 441
33 501
23 374
17 136
15 336
14 211
250 936
7 491
7 137
10 481
25 109
276 045
27 296
303 341
Jun-14
43 500
17 104
24 531
38 195
19 805
32 086
17 651
19 901
12 603
9 999
235 375
6 173
7 234
8 616
22 023
257 398
29 868
287 266
Yield
– g/tonne
Sep-14
4.60
4.55
5.41
4.16
3.77
5.69
12.32
3.65
4.18
5.46
4.84
0.14
0.35
0.83
0.30
2.02
1.63
1.98
Jun-14
4.73
3.30
5.23
4.81
3.95
4.84
11.20
4.07
4.00
4.38
4.66
0.12
0.35
0.69
0.26
1.92
1.77
1.90
Cash operating
costs
costs
– R/kg
Sep-14
414 573
440 977
346 363
369 139
367 828
285 610
242 113
369 818
371 111
349 385
356 054
328 605
385 590
373 819
363 676
356 748
345 028
355 693
Jun-14
349 534
521 910
367 172
296 997
396 333
283 327
301 040
283 733
379 821
447 550
346 871
352 250
340 707
372 201
356 264
347 675
291 793
341 864
Cash operating
costs
costs
– $/oz
Sep-14
1 198
1 274
1 001
1 067
1 063
825
699
1 069
1 072
1 009
1 029
949
1 114
1 080
1 051
1 031
997
1 028
Jun-14
1 034
1 544
1 086
879
1 173
838
891
839
1 124
1 324
1 026
1 042
1 008
1 101
1 054
1 029
863
1 011
Cash operating
costs
costs
– R/tonne
Sep-14
1 907
2 007
1 874
1 536
1 388
1 626
2 983
1 350
1 553
1 907
1 725
48
135
310
108
721
562
704
Jun-14
1 654
1 725
1 919
1 428
1 565
1 373
3 373
1 155
1 519
1 960
1 615
43
118
257
94
667
516
650
Gold sold
– kg
Sep-14
1 433
697
868
1 096
709
1 090
739
630
485
462
8 209
258
239
358
855
9 064
923
9 987
Jun-14
1 131
458
759
1 181
612
1 103
545
544
390
344
7 067
204
225
273
702
7 769
866
8 635
Gold sold
– oz
Sep-14
46 072
22 409
27 907
35 237
22 795
35 044
23 759
20 255
15 593
14 854
263 925
8 295
7 684
11 510
27 489
291 414
29 675
321 089
Jun-14
36 362
14 725
24 402
37 970
19 676
35 462
17 522
17 490
12 539
11 060
227 208
6 559
7 234
8 777
22 570
249 778
27 843
277 621
Revenue (R’000)
Sep-14
635 948
309 439
385 455
486 350
314 566
483 669
328 079
279 430
215 453
204 975
3 643 364
114 586
106 905
158 640
380 131
4 023 495
407 641
4 431 136
Jun-14
493 055
195 768
332 058
516 839
268 045
482 003
238 972
238 095
170 550
149 999
3 085 384
89 208
93 668
119 767
302 643
3 388 027
374 891
3 762 918
Cash operating
costs
costs
(R’000)
Sep-14
553 041
272 965
296 140
397 932
256 744
297 606
176 016
197 113
177 020
154 428
2 779 005
76 565
85 601
121 865
284 031
3 063 036
292 929
3 355 965
Jun-14
472 920
277 656
280 152
352 833
244 141
282 760
165 271
175 631
148 890
139 188
2 539 442
67 632
76 659
99 750
244 041
2 783 483
271 076
3 054 559
Inventory
movement
movement
(R’000)
Sep-14
29 247
35 654
1 826
9 085
1 274
13 923
(1 481)
25 540
(11)
7 238
122 295
9 620
6 603
9 954
26 177
148 472
13 517
161 989
Jun-14
(83 364)
(33 881)
(5 436)
(11 891)
(3 134)
21 428
2 285
(15 350)
(1 117)
10 593
(119 867)
786
(203)
3 388
3 971
(115 896)
(23 155)
(139 051)
Operating costs (R’000)
Sep-14
582 288
308 619
297 966
407 017
258 018
311 529
174 535
222 653
177 009
161 666
2 901 300
86 185
92 204
131 819
310 208
3 211 508
306 446
3 517 954
Jun-14
389 556
243 775
274 716
340 942
241 007
304 188
167 556
160 281
147 773
149 781
2 419 575
68 418
76 456
103 138
248 012
2 667 587
247 921
2 915 508
Production
profit/(loss)
profit/(loss)
(R’000)
Sep-14
53 660
820
87 489
79 333
56 548
172 140
153 544
56 777
38 444
43 309
742 064
28 401
14 701
26 821
69 923
811 987
101 195
913 182
Jun-14
103 499
(48 007)
57 342
175 897
27 038
177 815
71 416
77 814
22 777
218
665 809
20 790
17 212
16 629
54 631
720 440
126 970
847 410
Production
profit/(loss)
profit/(loss)
($’000)
Sep-14
4 984
76
8 127
7 370
5 253
15 991
14 264
5 275
3 571
4 023
68 934
2 638
1 366
2 490
6 494
75 428
9 400
84 828
Jun-14
9 844
(4 566)
5 454
16 730
2 571
16 913
6 793
7 401
2 167
20
63 327
1 977
1 636
1 582
5 195
68 522
12 076
80 598
Capital
expenditure
expenditure
(R’000)
Sep-14
124 368
55 554
85 185
83 513
40 526
73 614
24 540
30 778
29 229
20 437
567 744
634
503
6 420
7 557
575 301
21 153
596 454
Jun-14
142 781
59 675
96 274
82 806
46 330
75 609
39 240
36 572
23 209
28 923
631 419
683
3 100
7 026
10 809
642 228
33 561
675 789
Capital
expenditure
expenditure
($’000)
Sep-14
11 553
5 160
7 913
7 758
3 765
6 838
2 280
2 859
2 715
1 898
52 739
59
47
596
702
53 441
1 965
55 406
Jun-14
13 581
5 676
9 157
7 876
4 407
7 192
3 732
3 479
2 208
2 751
60 059
65
295
668
1 028
61 087
3 192
64 279
Adjusted
operating costs
operating costs
– R/kg
Sep-14
415 112
452 885
349 811
377 677
370 678
290 243
241 208
358 710
371 633
354 776
360 050
334 150
385 791
372 575
364 675
360 548
332 683
357 974
Jun-14
348 804
548 431
368 133
294 107
395 334
279 358
312 620
299 867
385 498
444 310
347 984
335 444
339 804
396 904
360 742
349 039
288 118
342 933
Adjusted
operating costs
operating costs
– $/oz
Sep-14
1 199
1 308
1 011
1 091
1 071
839
697
1 036
1 074
1 025
1 040
965
1 115
1 076
1 054
1 042
960
1 034
Jun-14
1 032
1 622
1 089
870
1 170
826
925
887
1 140
1 314
1 029
992
1 005
1 174
1 067
1 033
847
1 015
All-in sustaining
costs
costs
– R/kg
Sep-14
516 475
542 644
455 711
467 277
443 372
369 043
271 532
402 722
446 757
410 359
438 942
336 607
398 180
404 573
382 277
433 919
403 002
431 063
Jun-14
489 102
688 392
491 231
375 224
485 991
358 028
362 042
344 922
459 398
538 569
442 360
338 792
363 737
434 223
383 899
437 028
350 783
428 383
All-in sustaining
costs
costs
– $/oz
Sep-14
1 492
1 568
1 317
1 350
1 281
1 066
785
1 164
1 291
1 186
1 268
973
1 150
1 169
1 104
1 254
1 163
1 245
Jun-14
1 447
2 037
1 453
1 110
1 438
1 059
1 071
1 020
1 359
1 593
1 309
1 002
1 076
1 285
1 136
1 293
1 032
1 267
7
CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)
Figures in million
Note
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
30 September
2013
(Unaudited)
Revenue
4 431
3 763
4 018
15 682
Cost of sales
2
(4 319)
(4 941)
(3 735)
(16 088)
Production costs
(3 518)
(2 916)
(2 981)
(11 888)
Amortisation and depreciation
(650)
(526)
(577)
(2 143)
Impairment of assets
–
(1 410)
–
(1 439)
Other items
(151)
(89)
(177)
(618)
Gross profit/(loss)
112
(1 178)
283
(406)
Corporate, administration and other expenditure
(111)
(112)
(108)
(430)
Social investment expenditure
(24)
(21)
(38)
(88)
Exploration expenditure
(85)
(114)
(142)
(458)
Profit on sale of property, plant and equipment
–
30
–
30
Other (expenses)/income – net
5
(187)
(47)
1
(208)
Operating loss
(295)
(1 442)
(4)
(1 560)
(Loss)/profit from associates
4
–
(125)
3
(109)
Profit on disposal/(impairment) of investments
–
14
(7)
7
Net gain on financial instruments
7
32
74
170
Investment income
51
61
45
220
Finance cost
(65)
(101)
(60)
(277)
(Loss)/profit before taxation
(302)
(1 561)
51
(1 549)
Taxation
36
338
(38)
279
Normal taxation
1
1
(49)
(24)
Deferred taxation
35
337
11
303
Net (loss)/profit for the period
(266)
(1 223)
13
(1 270)
Attributable to:
Owners of the parent
Owners of the parent
(266)
(1 223)
13
(1 270)
(Loss)/earnings per ordinary share (cents)
3
Basic (loss)/earnings
(61)
(282)
3
(293)
Diluted (loss)/earnings
(61)
(282)
3
(293)
The accompanying notes are an integral part of these condensed consolidated financial statements.
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
8
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(RAND)
Figures in million
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
30 September
2013
(Unaudited)
Net (loss)/profit for the period
(266)
(1 223)
13
(1 270)
Other comprehensive income/(loss) for the period,
net of income tax
net of income tax
179
624
(695)
(140)
Items that may be reclassified subsequently
to profit or loss:
to profit or loss:
179
655
(695)
(109)
Foreign exchange translation
179
668
(694)
(108)
Movements on investments
–
(13)
(1)
(1)
Items that will not be reclassified to profit or loss:
–
(31)
–
(31)
Actuarial loss recognised during the year
–
(38)
–
(38)
Deferred taxation thereon
–
7
–
7
Total comprehensive loss for the period
(87)
(599)
(682)
(1 410)
Attributable to:
Owners of the parent
Owners of the parent
(87)
(599)
(682)
(1 410)
The accompanying notes are an integral part of these condensed consolidated financial statements.
The unaudited condensed consolidated financial statements for the three months ended 30 September 2014 have been prepared by
Harmony Gold Mining Company Limited’s corporate reporting team headed by Herman Perry. This process was supervised by the financial
director, Frank Abbott and approved by the board of Harmony Gold Mining Company Limited. These financial statements have not been
audited or independently reviewed.
Harmony Gold Mining Company Limited’s corporate reporting team headed by Herman Perry. This process was supervised by the financial
director, Frank Abbott and approved by the board of Harmony Gold Mining Company Limited. These financial statements have not been
audited or independently reviewed.
Figures in million
Share
capital
Other
reserves
(Accumulated
loss)/
retained
earnings
Total
Balance – 30 June 2014
28 325
3 539
(822)
31 042
Share-based payments
–
69
–
69
Net loss for the period
–
–
(266)
(266)
Other comprehensive income for the period
–
179
–
179
Balance – 30 September 2014
28 325
3 787
(1 088)
31 024
Balance – 30 June 2013
28 325
3 442
448
32 215
Share-based payments
–
43
–
43
Net profit for the period
–
–
13
13
Other comprehensive loss for the period
–
(695)
–
(695)
Balance – 30 September 2013
28 325
2 790
461
31 576
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (RAND)
for the three months ended 30 September 2014 (unaudited)
9
CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)
Figures in million
Note
At
30 September
2014
(Unaudited)
At
30 June
2014
(Audited)
At
30 September
2013
(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment
Property, plant and equipment
33 232
33 069
32 195
Intangible assets
885
886
2 191
Restricted cash
38
42
38
Restricted investments
2 329
2 299
2 143
Deferred tax assets
76
81
93
Investments in associates
4
–
–
112
Investments in financial assets
4
4
42
Inventories
50
50
57
Total non-current assets
36 614
36 431
36 871
Current assets
Inventories
Inventories
1 390
1 534
1 482
Trade and other receivables
693
951
1 238
Income and mining taxes
94
110
103
Restricted cash
15
15
–
Cash and cash equivalents
2 281
1 829
2 288
Total current assets
4 473
4 439
5 111
Total assets
41 087
40 870
41 982
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
Share capital
28 325
28 325
28 325
Other reserves
3 787
3 539
2 790
(Accumulated loss)/retained earnings
(1 088)
(822)
461
Total equity
31 024
31 042
31 576
Non-current liabilities
Deferred tax liabilities
Deferred tax liabilities
2 640
2 680
2 998
Provision for environmental rehabilitation
2 148
2 098
1 990
Retirement benefit obligation
251
247
198
Other non-current liabilities
6
40
95
63
Borrowings
5
–
2 860
2 868
Total non-current liabilities
5 079
7 980
8 117
Current liabilities
Borrowings
Borrowings
5
3 052
–
291
Income and mining taxes
9
–
24
Trade and other payables
6
1 923
1 848
1 974
Total current liabilities
4 984
1 848
2 289
Total equity and liabilities
41 087
40 870
41 982
The accompanying notes are an integral part of these condensed consolidated financial statements.
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
10
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)
Figures in million
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
Restated*
30 September
2013
(Unaudited)
Restated
#
Cash flow from operating activities
Cash generated by operations
Cash generated by operations
1 071
443
295
2 247
Interest and dividends received
25
47
26
139
Interest paid
(23)
(32)
(29)
(121)
Income and mining taxes refunded
25
31
–
3
Cash generated by operating activities
1 098
489
292
2 268
Cash flow from investing activities
Decrease/(increase) in restricted cash
Decrease/(increase) in restricted cash
4
(3)
–
(6)
Decrease/(increase) in restricted investments
1
(24)
–
(24)
Proceeds on disposal of investments
–
51
–
51
Net additions to property, plant and equipment
1
(651)
(699)
(684)
(2 661)
Cash utilised by investing activities
(646)
(675)
(684)
(2 640)
Cash flow from financing activities
Borrowings raised
Borrowings raised
–
–
612
612
Borrowings repaid
–
–
(3)
(468)
Cash generated by financing activities
–
–
609
144
Foreign currency translation adjustments
–
7
(18)
(32)
Net increase/(decrease) in cash and cash equivalents
452
(179)
199
(260)
Cash and cash equivalents – beginning of period
1 829
2 008
2 089
2 089
Cash and cash equivalents – end of period
2 281
1 829
2 288
1 829
1
Includes capital expenditure for Wafi-Golpu and other international projects of R15 million in the September 2014 quarter (June 2014 quarter: R12 million) (September
2013 quarter: Rnil) and R12 million in the year ended 30 June 2014.
* Cash generated by operating activities and cash utilised by investing activities previously reported as R470 million and (R656 million) restated to R489 million and
(R675 million) respectively in the June 2014 quarter. This is mainly related to the change in accounting policy for IFRIC 20.
# Cash generated by operating activities and cash utilised by investing activities previously reported as R235 million and (R627 million) restated to R292 million and
(R684 million) respectively in the September 2013 quarter. This is mainly related to the change in accounting policy for IFRIC 20.
The accompanying notes are an integral part of these condensed consolidated financial statements.
11
1.
Accounting policies
Basis of accounting
The condensed consolidated financial statements for the three months ended 30 September 2014 have been prepared in accordance
with IAS 34, Interim Financial Reporting, JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, 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 2014, 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.
with IAS 34, Interim Financial Reporting, JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, 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 2014, 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 following accounting standards, amendments to standards and new interpretations have been adopted with effect from
1 July 2014 and had no impact on the financial results of the group:
1 July 2014 and had no impact on the financial results of the group:
IFRSs
Annual Improvements 2010 – 2012 Cycle
IAS 32
Amendment – Presentation – Offsetting Financial Assets and Financial Liabilities
IAS 36
Amendment – Impairment of Assets – Recoverable amount disclosures for non-financial assets
IFRIC 21 Levies
2.
Cost of sales
Figures in million
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
30 September
2013
(Unaudited)
Production costs – excluding royalty
3 486
2 891
2 943
11 761
Royalty expense
32
25
38
127
Amortisation and depreciation
650
526
577
2 143
Impairment of assets
1
–
1 410
–
1 439
Rehabilitation expenditure/(credit)
2
14
(9)
15
8
Care and maintenance cost of restructured shafts
17
13
17
66
Employment termination and restructuring costs
3
48
40
94
274
Share-based payments
73
44
51
270
Other
(1)
1
–
–
Total cost of sales
4 319
4 941
3 735
16 088
1
The impairment in the June 2014 quarter consists of an impairment of R1.38 billion on Phakisa, R7 million on Steyn 2 and R21 million on St Helena.
2
Included in the total for the June 2014 quarter is a credit of R21 million relating to the change in estimate following the annual reassessment.
3
Included in the totals for the year ended June 2014 and the June 2014 and September 2013 quarters are amounts relating to the restructuring at Hidden
Valley, while all periods include amounts relating to the voluntary retrenchment packages offered in South Africa. The September 2014 quarter total includes
amounts provided for employees of Target 3.
amounts provided for employees of Target 3.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the three months ended 30 September 2014 (Rand)
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
12
3.
(Loss)/earnings per share
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
30 September
2013
(Unaudited)
Weighted average number of shares (million)
434.1
433.9
432.6
433.2
Weighted average number of diluted shares (million)
435.4
435.2
433.0
434.7
Total (loss)/earnings per share (cents):
Basic (loss)/earnings
Basic (loss)/earnings
(61)
(282)
3
(293)
Diluted (loss)/earnings
(61)
(282)
3
(293)
Headline (loss)/earnings
(61)
30
5
26
Diluted headline (loss)/earnings
(61)
30
5
26
Figures in million
Reconciliation of headline (loss)/earnings:
Net (loss)/profit
Net (loss)/profit
(266)
(1 223)
13
(1 270)
Adjusted for:
(Profit on disposal)/impairment of investments
(Profit on disposal)/impairment of investments
1
–
(14)
7
(7)
Impairment of assets
–
1 410
–
1 439
Taxation effect on impairment of assets
–
(20)
–
(24)
Profit on sale of property, plant and equipment
–
(30)
–
(30)
Taxation effect of profit on sale of property,
plant and equipment
plant and equipment
–
6
–
6
Headline (loss)/earnings
(266)
129
20
114
1
There is no taxation effect on these items.
4.
Investment in associate
Harmony holds a 10.38% share in Rand Refinery. Due to the issues experienced at Rand Refinery following the implementation of a
new Enterprise Resource Planning (ERP) system on 1 April 2013, and the fact that the annual financial statements for the year ended
30 September 2013 have not been finalised, Harmony has provided for its full share of loss for the inventory discrepancy. Therefore,
Harmony has recognised a R127 million loss in the June 2014 quarter to account for its share of this discrepancy.
new Enterprise Resource Planning (ERP) system on 1 April 2013, and the fact that the annual financial statements for the year ended
30 September 2013 have not been finalised, Harmony has provided for its full share of loss for the inventory discrepancy. Therefore,
Harmony has recognised a R127 million loss in the June 2014 quarter to account for its share of this discrepancy.
As a precautionary measure following the challenges experienced by the implementation of the software system, Rand Refinery’s
shareholders have extended Rand Refinery an irrevocable, subordinated loan facility of up to R1.2 billion, which can only be drawn
down when there is confirmation that an actual loss has been incurred. The facility, if drawn down, is convertible to equity after a
period of two years. Harmony’s maximum commitment in terms of this facility will be R140 million. Interest on the facility will be
JIBAR plus a margin of 3.5%. The agreements relating to the facility were signed on 23 July 2014.
shareholders have extended Rand Refinery an irrevocable, subordinated loan facility of up to R1.2 billion, which can only be drawn
down when there is confirmation that an actual loss has been incurred. The facility, if drawn down, is convertible to equity after a
period of two years. Harmony’s maximum commitment in terms of this facility will be R140 million. Interest on the facility will be
JIBAR plus a margin of 3.5%. The agreements relating to the facility were signed on 23 July 2014.
5.
Borrowings
There were no draw downs made from the US$300 million syndicated revolving credit facility during the September 2014 quarter
and the drawn level remains at US$270 million. The weakening of the Rand against the US$ resulted in a foreign exchange
translation loss of R192 million being recorded in the September 2014 quarter (June 2014 quarter: R11 million), increasing the
borrowings balance and Other (expenses)/income – net. The facility is repayable by September 2015. As a result, the borrowings
balance was reclassified to current liabilities.
and the drawn level remains at US$270 million. The weakening of the Rand against the US$ resulted in a foreign exchange
translation loss of R192 million being recorded in the September 2014 quarter (June 2014 quarter: R11 million), increasing the
borrowings balance and Other (expenses)/income – net. The facility is repayable by September 2015. As a result, the borrowings
balance was reclassified to current liabilities.
At 30 September 2014, the full amount was available on the Nedbank revolving credit facility of R1.3 billion. The facility is available
until December 2016.
until December 2016.
6.
Other non-current liabilities
During the September 2014 quarter, negotiations were entered into with the claimants in the matter relating to the pumping and
treatment cost of fissure water in the Klerksdorp, Orkney, Stilfontein and Hartbeesfontein (KOSH) Basin. Payment was made to
Simmer and Jack Investments Proprietary Limited as full and final settlement during the quarter, while the full and final settlement
to Anglogold Ashanti Limited was made in October 2014. The amount owing to Anglogold Ashanti Limited was reclassified to trade
and other payables at 30 September 2014.
treatment cost of fissure water in the Klerksdorp, Orkney, Stilfontein and Hartbeesfontein (KOSH) Basin. Payment was made to
Simmer and Jack Investments Proprietary Limited as full and final settlement during the quarter, while the full and final settlement
to Anglogold Ashanti Limited was made in October 2014. The amount owing to Anglogold Ashanti Limited was reclassified to trade
and other payables at 30 September 2014.
13
7.
Financial risk management activities
Fair value determination
The following table presents the group’s assets and liabilities that are measured at fair value by level within the fair value hierarchy:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets;
Level 2:
Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that
is, as prices) or indirectly (that is derived from prices);
is, as prices) or indirectly (that is derived from prices);
Level 3:
Inputs for the asset that are not based on observable market data (that is unobservable inputs).
Figures in million
At
30 September
2014
(Unaudited)
At
30 June
2014
(Audited)
At
30 September
2013
(Unaudited)
Available-for-sale financial assets
1
Level 1
–
–
37
Level 2
–
–
–
Level 3
4
4
5
Fair value through profit or loss
2
Level 1
–
–
–
Level 2
632
798
933
Level 3
–
–
–
1
Level 1 fair values are directly derived from actively traded shares on the JSE.
Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
2
The majority of the level 2 fair values are directly derived from the Shareholders Weighted Top 40 index (SWIX 40) on the JSE, and are discounted at market
interest rate.
8.
Commitments and contingencies
Figures in million
At
30 September
2014
(Unaudited)
At
30 June
2014
(Audited)
At
30 September
2013
(Unaudited)
Capital expenditure commitments:
Contracts for capital expenditure
Contracts for capital expenditure
206
157
351
Authorised by the directors but not contracted for
2 359
519
1 835
2 565
676
2 186
This expenditure will be financed from existing resources and, where appropriate, borrowings.
Contingent liabilities
For a detailed disclosure on contingent liabilities refer to Harmony’s annual financial statements for the financial year ended
30 June 2014, available on the group’s website (www.harmony.co.za). There were no significant changes in contingencies since
30 June 2014, except as discussed below:
30 June 2014, available on the group’s website (www.harmony.co.za). There were no significant changes in contingencies since
30 June 2014, except as discussed below:
(a)
During July 2014, Harmony extended an irrevocable, subordinated loan facility to Rand Refinery. The facility, if drawn down,
is convertible to equity after a period of two years. Harmony’s maximum commitment in terms of this facility is R140 million.
Refer to note 4 for further details.
is convertible to equity after a period of two years. Harmony’s maximum commitment in terms of this facility is R140 million.
Refer to note 4 for further details.
9.
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. There have been
no transactions with related parties during the September 2014 quarter.
activities of the group, directly or indirectly, including any director (whether executive or otherwise) of the group. There have been
no transactions with related parties during the September 2014 quarter.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
for the three months ended 30 September 2014 (Rand)
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
14
10. Subsequent events
(a) Refer to note 6 for subsequent changes relating to the KOSH matter.
(b) Target 3 was closed at the end of the September 2014 quarter and placed on care and maintenance. The section 189 process
is still continuing and expected to impact approximately 350 employees. Retrenchment costs are expected to be approximately
R25 million.
R25 million.
(c) On 31 October 2014, Harmony announced that it would be closing Kusasalethu for two weeks, following three underground
fires started by illegal miners during October 2014. During this period, management aims to remove all illegal miners as well
as complete all security and access control measures needed to tighten control on entry and exit from the mine. No production
will occur during this period and employees will be sent on leave. This stoppage, together with the ten production days lost in
October 2014 as a result of the fires, will have a negative impact on Kusasalethu’s results and therefore on the group’s results for
the December 2014 quarter.
as complete all security and access control measures needed to tighten control on entry and exit from the mine. No production
will occur during this period and employees will be sent on leave. This stoppage, together with the ten production days lost in
October 2014 as a result of the fires, will have a negative impact on Kusasalethu’s results and therefore on the group’s results for
the December 2014 quarter.
11. Segment report
The segment report follows on page 15.
12. Reconciliation of segment information to condensed consolidated income statements and balance sheets
Figures in million
Three months ended
30 September
2014
(Unaudited)
30 September
2013
(Unaudited)
The “Reconciliation of segment information to condensed consolidated financial statements”
line item in the segment report is broken down in the following elements, to give a better
understanding of the differences between the financial statements and segment report:
line item in the segment report is broken down in the following elements, to give a better
understanding of the differences between the financial statements and segment report:
Reconciliation of production profit to gross profit
Total segment revenue
Total segment revenue
4 431
4 018
Total segment production costs
(3 518)
(2 981)
Production profit per segment report
913
1 037
Depreciation
(650)
(577)
Other cost of sales items
(151)
(177)
Gross profit as per income statements
1
112
283
1
The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
Figures in million
At
30 September
2014
(Unaudited)
At
30 September
2013
(Unaudited)
Reconciliation of total segment mining assets to consolidated property,
plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets
plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets
779
1 155
Undeveloped property
5 139
5 139
Other non-mining assets
143
74
Wafi-Golpu assets
1 140
981
7 201
7 349
15
Revenue
30 September
Production cost
30 September
Production profit
30 September
Mining assets
30 September
30 September
Capital
expenditure
#
30 September
Kilograms
produced
30 September
Tonnes milled
30 September
30 September
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
R million
R million
R million
R million
R million
kg
t’000
South Africa
Underground
Underground
Kusasalethu
636
471
582
395
54
76
3 666
3 457
124
120
1 334
1 272
290
329
Doornkop
309
342
309
288
–
54
3 343
3 375
55
60
619
765
136
236
Phakisa
385
318
298
265
87
53
4 611
4 534
85
91
855
755
158
156
Tshepong
486
443
407
346
79
97
3 959
3 918
83
68
1 078
1 049
259
249
Masimong
315
319
258
258
57
61
1 068
1 005
41
38
698
758
185
189
Target 1
484
423
312
225
172
198
2 785
2 704
74
62
1 042
1 081
183
191
Bambanani
(a)
328
325
174
169
154
156
834
886
25
33
727
769
59
63
Joel
279
297
223
179
56
118
468
329
31
42
533
697
146
159
Unisel
215
201
177
150
38
51
635
344
29
17
477
476
114
108
Target 3
205
154
162
127
43
27
551
482
20
35
442
392
81
82
Surface
All other surface operations
All other surface operations
381
366
310
267
71
99
475
465
8
8
781
846
2 638
2 781
Total South Africa
4 023
3 659
3 212
2 669
811
990
22 395
21 499
575
574
8 586
8 860
4 249
4 543
International
Hidden Valley
Hidden Valley
408
359
306
312
102
47
3 636
3 347
21
48
849
775
521
503
Total international
408
359
306
312
102
47
3 636
3 347
21
48
849
775
521
503
Total operations
4 431
4 018
3 518
2 981
913
1 037
26 031
24 846
596
622
9 435
9 635
4 770
5 046
Reconciliation of the segment
information to the condensed
consolidated financial statements
(refer to note 12)
information to the condensed
consolidated financial statements
(refer to note 12)
7 201
7 349
4 431
4 018
3 518
2 981
33 232
32 195
#
Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R15 million (2013: Rnil).
(a)
Includes Steyn 2 for the September 2013 amounts.
SEGMENT REPORT (RAND/METRIC)
for the three months ended 30 September 2014 (Unaudited)
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
16
US$ RESULTS
FOR THE FIRST QUARTER
ENDED
30 SEPTEMBER 2014
Q1 FY15
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
18
17
OPERATING RESULTS (US$/IMPERIAL)
South Africa
Hidden
Valley
Harmony
Total
Underground production
Surface production
Total
South
Africa
Africa
Three
months
Ended
months
Ended
Kusasa-
lethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1 Bambanani
Joel
Unisel
Target 3
Total
Underground
Phoenix
Dumps
Kalgold
Total
Surface
Ore milled
– t'000
Sep-14
320
150
174
286
204
202
65
161
126
89
1 777
1 774
701
433
2 908
4 685
575
5 260
Jun-14
315
178
161
272
172
227
54
168
108
78
1 733
1 725
716
428
2 869
4 602
579
5 181
Gold produced
– oz
Sep-14
42 889
19 901
27 489
34 658
22 441
33 501
23 374
17 136
15 336
14 211
250 936
7 491
7 137
10 481
25 109
276 045
27 296
303 341
Jun-14
43 500
17 104
24 531
38 195
19 805
32 086
17 651
19 901
12 603
9 999
235 375
6 173
7 234
8 616
22 023
257 398
29 868
287 266
Yield
– oz/t
Sep-14
0.134
0.133
0.158
0.121
0.110
0.166
0.360
0.106
0.122
0.160
0.141
0.004
0.010
0.024
0.009
0.059
0.047
0.058
Jun-14
0.138
0.096
0.152
0.140
0.115
0.141
0.327
0.118
0.117
0.128
0.136
0.004
0.010
0.020
0.008
0.056
0.052
0.055
Cash operating
costs
costs
– $/oz
Sep-14
1 198
1 274
1 001
1 067
1 063
825
699
1 069
1 072
1 009
1 029
949
1 114
1 080
1 051
1 031
997
1 028
Jun-14
1 034
1 544
1 086
879
1 173
838
891
839
1 124
1 324
1 026
1 042
1 008
1 101
1 054
1 029
863
1 011
Cash operating
costs
costs
– $/t
Sep-14
161
169
158
129
117
137
252
114
131
161
145
4
11
26
9
61
47
59
Jun-14
143
148
166
123
135
118
291
99
131
170
139
4
10
22
8
58
45
56
Gold sold
– oz
Sep-14
46 072
22 409
27 907
35 237
22 795
35 044
23 759
20 255
15 593
14 854
263 925
8 295
7 684
11 510
27 489
291 414
29 675
321 089
Jun-14
36 362
14 725
24 402
37 970
19 676
35 462
17 522
17 490
12 539
11 060
227 208
6 559
7 234
8 777
22 570
249 778
27 843
277 621
Revenue ($'000)
Sep-14
59 074
28 744
35 805
45 178
29 220
44 929
30 476
25 957
20 014
19 040
338 437
10 644
9 931
14 736
35 311
373 748
37 866
411 614
Jun-14
46 897
18 620
31 584
49 159
25 495
45 846
22 730
22 646
16 222
14 267
293 466
8 485
8 909
11 392
28 786
322 252
35 658
357 910
Cash operating
costs
costs
($'000)
Sep-14
51 373
25 356
27 508
36 964
23 849
27 645
16 350
18 310
16 444
14 345
258 144
7 112
7 952
11 321
26 385
284 529
27 210
311 739
Jun-14
44 982
26 409
26 647
33 560
23 222
26 895
15 720
16 705
14 161
13 239
241 540
6 433
7 292
9 488
23 213
264 753
25 784
290 537
Inventory
movement
movement
($'000)
Sep-14
2 717
3 312
170
844
118
1 293
(138)
2 372
(1)
672
11 359
894
613
925
2 432
13 791
1 256
15 047
Jun-14
(7 929)
(3 223)
(517)
(1 131)
(298)
2 038
217
(1 460)
(106)
1 008
(11 401)
75
(19)
322
378
(11 023)
(2 202)
(13 225)
Operating costs ($'000)
Sep-14
54 090
28 668
27 678
37 808
23 967
28 938
16 212
20 682
16 443
15 017
269 503
8 006
8 565
12 246
28 817
298 320
28 466
326 786
Jun-14
37 053
23 186
26 130
32 429
22 924
28 933
15 937
15 245
14 055
14 247
230 139
6 508
7 273
9 810
23 591
253 730
23 582
277 312
Production
profit/(loss)
profit/(loss)
($'000)
Sep-14
4 984
76
8 127
7 370
5 253
15 991
14 264
5 275
3 571
4 023
68 934
2 638
1 366
2 490
6 494
75 428
9 400
84 828
Jun-14
9 844
(4 566)
5 454
16 730
2 571
16 913
6 793
7 401
2 167
20
63 327
1 977
1 636
1 582
5 195
68 522
12 076
80 598
Capital
expenditure
expenditure
($'000)
Sep-14
11 553
5 160
7 913
7 758
3 765
6 838
2 280
2 859
2 715
1 898
52 739
59
47
596
702
53 441
1 965
55 406
Jun-14
13 581
5 676
9 157
7 876
4 407
7 192
3 732
3 479
2 208
2 751
60 059
65
295
668
1 028
61 087
3 192
64 279
Adjusted
operating costs
operating costs
– $/oz
Sep-14
1 199
1 308
1 011
1 091
1 071
839
697
1 036
1 074
1 025
1 040
965
1 115
1 076
1 054
1 042
960
1 034
Jun-14
1 032
1 622
1 089
870
1 170
826
925
887
1 140
1 314
1 029
992
1 005
1 174
1 067
1 033
847
1 015
All-in
sustaining costs
sustaining costs
– $/oz
Sep-14
1 492
1 568
1 317
1 350
1 281
1 066
785
1 164
1 291
1 186
1 268
973
1 150
1 169
1 104
1 254
1 163
1 245
Jun-14
1 447
2 037
1 453
1 110
1 438
1 059
1 071
1 020
1 359
1 593
1 309
1 002
1 076
1 285
1 136
1 293
1 032
1 267
19
CONDENSED CONSOLIDATED INCOME STATEMENTS (US$)
(Convenience translation)
Figures in million
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
30 September
2013
(Unaudited)
Revenue
412
358
403
1 515
Cost of sales
(401)
(469)
(375)
(1 549)
Production costs
(327)
(277)
(299)
(1 148)
Amortisation and depreciation
(60)
(50)
(58)
(207)
Impairment of assets
–
(134)
–
(135)
Other items
(14)
(8)
(18)
(59)
Gross profit/(loss)
11
(111)
28
(34)
Corporate, administration and other expenditure
(10)
(11)
(11)
(42)
Social investment expenditure
(2)
(2)
(4)
(9)
Exploration expenditure
(8)
(11)
(14)
(44)
Profit on sale of property, plant and equipment
–
3
–
3
Other expenses (net)
(18)
(4)
–
(20)
Operating loss
(27)
(136)
(1)
(146)
Profit from associates
–
(12)
–
(10)
Profit on disposal/(impairment) of investments
–
1
(1)
1
Net gain on financial instruments
1
3
8
16
Investment income
4
6
5
21
Finance cost
(6)
(10)
(6)
(27)
(Loss)/profit before taxation
(28)
(148)
5
(145)
Taxation
3
32
(4)
27
Normal taxation
–
–
(5)
(2)
Deferred taxation
3
32
1
29
Net (loss)/profit for the period
(25)
(116)
1
(118)
Attributable to:
Owners of the parent
Owners of the parent
(25)
(116)
1
(118)
Loss per ordinary share (cents)
Basic loss
Basic loss
(6)
(27)
–
(27)
Diluted loss
(6)
(27)
–
(27)
The currency conversion average rates for the quarter ended: September 2014: US$1 = R10.77 (June 2014: US$1 = R10.51, September
2013: US$1 = R9.96). For year ended: June 2014: US$1 = R10.35.
2013: US$1 = R9.96). For year ended: June 2014: US$1 = R10.35.
The income statement for the year ended 30 June 2014 has been extracted from the 2014 annual financial statements.
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
20
Figures in million
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
30 September
2013
(Unaudited)
Net (loss)/profit for the period
(25)
(116)
1
(118)
Other comprehensive income/(loss) for the period,
net of income tax
net of income tax
17
59
(70)
(209)
Items that may be reclassified subsequently
to profit or loss:
to profit or loss:
17
62
(70)
(206)
Foreign exchange translation
17
63
(70)
(206)
Movements on investments
–
(1)
–
–
Items that will not be reclassified to profit or loss:
–
(3)
–
(3)
Acturial loss recognised during the year
–
(4)
–
(4)
Deferred taxation thereon
–
1
–
1
Total comprehensive loss for the period
(8)
(57)
(69)
(327)
Attributable to:
Owners of the parent
Owners of the parent
(8)
(57)
(69)
(327)
The currency conversion average rates for the quarter ended: September 2014: US$1 = R10.77 (June 2014: US$1 = R10.51, September
2013: US$1 = R9.96). For year ended: June 2014: US$1 = R10.35.
2013: US$1 = R9.96). For year ended: June 2014: US$1 = R10.35.
The statement of comprehensive income for the year ended 30 June 2014 has been extracted from the 2014 annual financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (US$)
(Convenience translation)
Note on convenience translations
Except where specific statements have been extracted from 2014 annual financial statements, 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 19 to 23.
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 19 to 23.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (US$)
for the three months ended 30 September 2014 (Convenience translation) (unaudited)
Figures in million
Share capital
Other reserves
(Accumulated
loss)/
retained
earnings
Total
Balance – 30 June 2014
2 503
313
(73)
2 743
Share-based payments
–
6
–
6
Net loss for the period
–
–
(23)
(23)
Other comprehensive income for the period
–
16
–
16
Balance – 30 September 2014
2 503
335
(96)
2 742
Balance – 30 June 2013
2 820
343
45
3 208
Share-based payments
–
4
–
4
Net profit for the period
–
–
1
1
Other comprehensive loss for the period
–
(69)
–
(69)
Balance – 30 September 2013
2 820
278
46
3 144
The currency conversion closing rates for the period ended 30 September 2014: US$1 = R11.32 (September 2013: US$1 = R10.05).
21
Figures in million
At
30 September
2014
(Unaudited)
At
30 June
2014
(Audited)
At
30 September
2013
(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment
Property, plant and equipment
2 937
3 116
3 205
Intangible assets
78
84
218
Restricted cash
3
4
4
Restricted investments
206
217
213
Deferred tax assets
7
8
9
Investments in associates
–
–
11
Investments in financial assets
–
–
4
Inventories
4
5
6
Total non-current assets
3 235
3 434
3 670
Current assets
Inventories
Inventories
123
145
147
Trade and other receivables
61
90
123
Income and mining taxes
8
10
10
Restricted cash
1
1
–
Cash and cash equivalents
202
172
228
Total current assets
395
418
508
Total assets
3 630
3 852
4 178
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
Share capital
2 503
4 035
2 820
Other reserves
335
(887)
278
(Accumulated loss)/retained earnings
(96)
(223)
46
Total equity
2 742
2 925
3 144
Non-current liabilities
Deferred tax liabilities
Deferred tax liabilities
233
253
298
Provision for environmental rehabilitation
190
198
198
Retirement benefit obligation
22
23
20
Other non-current liabilities
4
9
6
Borrowings
–
270
285
Total non-current liabilities
449
753
807
Current liabilities
Borrowings
Borrowings
270
–
29
Income and mining taxes
1
–
2
Trade and other payables
168
174
196
Total current liabilities
439
174
227
Total equity and liabilities
3 630
3 852
4 178
The balance sheet for September 2014 converted at a conversion rate of US$1 = R11.32 (June 2014: US$1 = R10.61, September 2013:
US$1 = R10.05).
US$1 = R10.05).
The balance sheet at 30 June 2014 has been extracted from the 2014 annual financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS (US$)
(Convenience translation)
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
22
Figures in million
Quarter ended
Year ended
30 June
2014
(Audited)
30 September
2014
(Unaudited)
30 June
2014
(Unaudited)
Restated*
30 September
2013
(Unaudited)
Restated
#
Cash flow from operating activities
Cash generated by operations
Cash generated by operations
99
42
30
218
Interest and dividends received
2
4
3
13
Interest paid
(2)
(3)
(3)
(12)
Income and mining taxes refunded
2
3
–
–
Cash generated by operating activities
101
46
30
219
Cash flow from investing activities
Increase in restricted cash
Increase in restricted cash
–
–
–
(1)
Increase in restricted investments
–
(2)
–
(2)
Proceeds on disposal of investments
–
5
–
5
Net additions to property, plant and equipment
1
(60)
(66)
(69)
(257)
Cash utilised by investing activities
(60)
(63)
(69)
(255)
Cash flow from financing activities
Borrowings raised
Borrowings raised
–
–
61
60
Borrowings repaid
–
–
–
(44)
Cash generated by financing activities
–
–
61
16
Foreign currency translation adjustments
(11)
(1)
(3)
(17)
Net increase/(decrease) in cash and cash equivalents
30
(18)
19
(37)
Cash and cash equivalents – beginning of period
172
190
209
209
Cash and cash equivalents – end of period
202
172
228
172
1
Includes capital expenditure for Wafi-Golpu and other international projects of US$1 million in the September 2014 quarter (June 2014 quarter: US$1 million)
(September 2013 quarter: US$nil) and US$1 million in the year ended 30 June 2014.
* Cash generated by operating activities and cash utilised by investing activities previously reported as US$45 million and (US$62 million) restated to US$46 million and
(US$63 million) respectively in the June 2014 quarter. This is mainly related to the change in accounting policy for IFRIC 20.
# Cash generated by operating activities and cash utilised by investing activities previously reported as US$24 million and (US$63 million) restated to US$30 million and
(US$69 million) respectively in the September 2013 quarter. This is mainly related to the change in accounting policy for IFRIC 20.
The currency conversion average rates for the quarter ended: September 2014: US$1 = R10.77 (June 2014: US$1 = R10.51, September
2013: US$1 = R9.96). For year ended: June 2014: US$1 = R10.35.
2013: US$1 = R9.96). For year ended: June 2014: US$1 = R10.35.
Closing balance translated at closing rates of: September 2014: US$1 = R11.32 (June 2014: US$1 = 10.61, September 2013: US$1 =
R10.05).
R10.05).
The cash flow statement for the year ended 30 June 2014 has been extracted from the 2014 annual financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (US$)
(Convenience translation)
23
Revenue
30 September
Production cost
30 September
Production profit
30 September
Mining assets
30 September
30 September
Capital
expenditure
#
30 September
Ounces
produced
30 September
Tons milled
30 September
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
US$ million
US$ million
US$ million
US$ million
US$ million
oz
t’000
South Africa
Underground
Kusasalethu
Underground
Kusasalethu
59
47
54
39
5
8
324
344
11
12
42 889
40 896
320
363
Doornkop
29
34
29
29
–
5
295
336
5
6
19 901
24 595
149
260
Phakisa
36
32
28
27
8
5
408
451
8
9
27 489
24 274
174
172
Tshepong
45
45
38
35
7
10
350
390
7
7
34 658
33 726
286
275
Masimong
29
32
24
26
5
6
94
100
4
4
22 441
24 370
204
208
Target 1
45
43
29
23
16
20
246
269
7
6
33 501
34 755
203
211
Bambanani
(a)
30
32
16
16
14
16
74
88
2
3
23 374
24 724
65
69
Joel
26
30
21
18
5
12
41
33
3
4
17 136
22 409
161
175
Unisel
20
20
16
15
4
5
56
34
3
2
15 336
15 304
126
119
Target 3
19
15
15
13
4
2
49
48
2
4
14 211
12 603
88
90
Surface
All other surface operations
All other surface operations
36
37
29
27
7
10
42
46
1
1
25 109
27 200
2 909
3 067
Total South Africa
374
367
299
268
75
99
1 979
2 139
53
58
276 045
284 856
4 685
5 009
International
Hidden Valley
Hidden Valley
38
36
28
31
10
5
321
333
2
5
27 296
24 917
575
555
Total international
38
36
28
31
10
5
321
333
2
5
27 296
24 917
575
555
Total operations
412
403
327
299
85
104
2 300
2 472
55
63
303 341
309 773
5 260
5 564
#
Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of US$1 million (2013: US$nil).
(a)
Includes Steyn 2 for the September 2013 amounts.
SEGMENT REPORT (US$/IMPERIAL)
for the three months ended 30 September 2014 (Unaudited)
Harmony Gold Mining Company Limited
Results for the first quarter FY15 ended 30 September 2014
24
DEVELOPMENT RESULTS (METRIC)
Quarter ending September 2014
DEVELOPMENT RESULTS (IMPERIAL)
Quarter ending September 2014
Channel
Reef
Meters
Sampled
Meters
Width
(Cm’s)
Value
(g/t)
Gold
(Cmg/t)
Tshepong
Basal
277
256
7.66
174.50
1 337
B Reef
48
46
155.61
4.00
623
All Reefs
325
302
30.20
40.67
1 228
Phakisa
Basal
493
500
88.52
13.72
1 215
All Reefs
493
500
88.52
13.72
1 215
Doornkop
South Reef
340
318
65.00
8.65
562
All Reefs
340
318
65.00
8.64
562
Kusasalethu
VCR Reef
738
682
86.00
10.58
910
All Reefs
738
682
86.00
10.58
910
Total Target
(incl. Target 1 & Target 3)
Elsburg
49
12
278.00
1.06
296
Basal
45
56
20.00
68.70
1 374
A Reef
43
92
62.00
17.56
1 089
B Reef
114
90
118.00
6.64
784
All Reefs
251
250
83.12
12.09
1 005
Masimong 5
Basal
566
484
34.23
24.88
852
B Reef
182
207
89.65
34.77
3 117
All Reefs
748
691
50.83
30.10
1 530
Unisel
Basal
138
86
204.53
5.90
1 206
Leader
507
396
234.75
5.25
1 233
All Reefs
645
482
229.36
5.35
1 228
Joel
Beatrix
291
354
123.00
6.88
846
All Reefs
291
354
123.00
6.88
846
Total Harmony
Basal
1 520
1 382
58.97
18.93
1 116
Beatrix
291
354
123.00
6.88
846
Leader
507
396
234.75
5.25
1 233
B Reef
344
343
105.94
20.49
2 170
A Reef
43
92
62.00
17.56
1 089
Elsburg
49
12
278.00
1.06
296
South Reef
340
318
65.00
8.64
562
VCR
738
682
86.00
10.58
910
All Reefs
3 831
3 579
95.75
11.61
1 111
Channel
Reef
Feet
Sampled
Feet
Width
(Inch)
Value
(oz/t)
Gold
(In.oz/t)
Tshepong
Basal
909
840
3.00
5.12
15
B Reef
157
151
61.00
0.12
7
All Reefs
1 066
991
12.00
1.18
14
Phakisa
Basal
1 618
1 640
35.00
0.40
14
All Reefs
1 618
1 640
35.00
0.40
14
Doornkop
South Reef
1 114
1 043
26.00
0.25
6
All Reefs
1 114
1 043
26.00
0.25
6
Kusasalethu
VCR Reef
2 420
2 236
34.00
0.31
10
All Reefs
2 420
2 236
34.00
0.31
10
Total Target
(incl. Target 1 & Target 3)
Elsburg
159
39
109.00
0.03
3
Basal
148
184
8.00
1.97
16
A Reef
141
302
24.00
0.52
13
B Reef
375
295
46.00
0.20
9
All Reefs
823
820
33.00
0.35
12
Masimong 5
Basal
1 858
1 588
13.00
0.75
10
B Reef
597
679
35.00
1.02
36
All Reefs
2 454
2 267
20.00
0.88
18
Unisel
Basal
453
282
81.00
0.17
14
Leader
1 663
1 299
92.00
0.15
14
All Reefs
2 116
1 581
90.00
0.16
14
Joel
Beatrix
956
1 161
48.00
0.20
10
All Reefs
956
1 161
48.00
0.20
10
Total Harmony
Basal
4 986
4 534
23.00
0.56
13
Beatrix
956
1 161
48.00
0.20
10
Leader
1 663
1 299
92.00
0.15
14
B Reef
1 129
1 125
42.00
0.59
25
A Reef
141
302
24.00
0.52
13
Elsburg
159
39
109.00
0.03
3
South Reef
1 114
1 043
26.00
0.25
6
VCR
2 420
2 236
34.00
0.31
10
All Reefs
12 567
11 741
38.00
0.34
13
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:
November 5, 2014
Harmony Gold Mining Company Limited
By:
/s/ Frank Abbott
Name: Frank Abbott
Title: Financial Director
Title: Financial Director