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
14 August 2013
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 FOURTH QUARTER AND YEAR ENDED 30 JUNE 2013
Quarter
June
2013
2013
Quarter
March
2013
#
Q-on-Q
variance
%
Year
ended
June
2013
#
Year
ended
June
2012
#
Variance
%
Gold produced
– kg
8 588
7 699
12
35 374
36 273
(2)
– oz
276 109
247 529
12 1 137 297 1 166 203
(2)
Cash operating costs
– R/kg
351 109
362 491
3
327 210
274 767
(19)
– US$/oz
1 156
1 264
9
1 154
1 100
(5)
Gold sold
– kg
8 146
7 506
9
34 970
36 182
(3)
– oz
261 901
241 322
9 1 124 312 1 163 277
(3)
Underground grade
– g/t
4.37
4.50
(3)
4.54
4.26
7
Gold price received
– R/kg
427 534
470 030
(9)
454 725
419 668
8
– US$/oz
1 407
1 639
(14)
1 603
1 681
(5)
Operating profit¹
– R million
639
821
(22)
4 502
5258
(14)
– US$ million
68
92
(26)
511
677
(25)
Basic (loss)/earnings
per share*
per share*
– SAc/s
(809)
(29)
>(100)
(548)
614
>(100)
– USc/s
(86)
(3)
>(100)
(62)
79
>(100)
Headline (loss)/profit*
– Rm
(804)
(202)
>(100)
204
2 432
(92)
– US$m
(85)
(23)
>(100)
23
317
(93)
Headline (loss)/earnings
per share*
per share*
– SAc/s
(186)
(47)
>(100)
47
565
(92)
– USc/s
(20)
(5)
>(100)
5
74
(93)
Exchange rate
– R/US$
9.45
8.92
6
8.82
7.77
14
#
Figures represent continuing operations unless stated otherwise
¹
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
operating profit line in the income statement
*
Including discontinued operations
Shareholder information
Issued ordinary share capital at 30 June 2013
435 289 890
Issued ordinary share capital at 31 March 2013
435 257 691*
Issued ordinary share capital at 30 June 2012
431 564 236
Market capitalisation
At 30 June 2013
(ZARm) 15 562
At 30 June 2013
(US$m)
1 568
At 31 March 2013
(ZARm) 25 728
At 31 March 2013
(US$m)
2 804
At 30 June 2012
(ZARm) 33 015
At 30 June 2012
(US$m)
4 037
Harmony ordinary share and ADR prices
12-month high (1 July 2012 –
30 June 2013) for ordinary shares
30 June 2013) for ordinary shares
85.71
12-month low (1 July 2012 –
30 June 2013) for ordinary shares
30 June 2013) for ordinary shares
33.47
12-month high (1 July 2012 –
30 June 2013) for ADRs
30 June 2013) for ADRs
10.34
12-month low (1 July 2012 –
30 June 2013) for ADRs
30 June 2013) for ADRs
3.30
Free float
100%
ADR ratio
1:1
JSE Limited
HAR
Range for quarter (1 April –
30 June 2013 closing prices)
30 June 2013 closing prices)
R33.47 – R58.25
Average daily volume for the quarter
(1 April – 30 June 2013)
(1 April – 30 June 2013)
2 232 419 shares
Range for quarter (1 January –
31 March 2013 closing prices)
31 March 2013 closing prices)
R53.40 – R75.64
Average daily volume for the quarter
(1 January – 31 March 2013)
(1 January – 31 March 2013)
1 581 188 shares
Range for the year (1 July 2012 –
30 June 2013 closing prices)
30 June 2013 closing prices)
R33.47 – R85.71
Average daily volume for the year
(1 July 2012 – 30 June 2013)
(1 July 2012 – 30 June 2013)
1 753 866 shares
Range for the year (1 July 2011 –
30 June 2012 closing prices)
30 June 2012 closing prices)
R72.84 – R115.75
Average daily volume for the year
(1 July 2011 – 30 June 2012)
(1 July 2011 – 30 June 2012)
1 518 116 shares
New York Stock Exchange, Inc including
other US trading platforms
HMY
Range for quarter (1 April –
30 June 2013 closing prices)
30 June 2013 closing prices)
US$3.30 –
US$6.38
Average daily volume for the quarter
(1 April – 30 June 2013)
(1 April – 30 June 2013)
3 302 649
Range for quarter (1 January –
31 March 2013 closing prices)
31 March 2013 closing prices)
US$5.94 –
US$8.88
Average daily volume for the quarter
(1 January – 31 March 2013)
(1 January – 31 March 2013)
2 423 016
Range for the year (1 July 2012 –
30 June 2013 closing prices)
30 June 2013 closing prices)
US$3.30 –
US$10.34
Average daily volume for the year
(1 July 2012 – 30 June 2013)
(1 July 2012 – 30 June 2013)
2 484 062
Range for the year (1 July 2011 –
30 June 2012 closing prices)
30 June 2012 closing prices)
US$8.70 –
US$14.87
Average daily volume for the year
(1 July 2011 – 30 June 2012)
(1 July 2011 – 30 June 2012)
2 321 783
Investors’ calendar
2013
Q1 FY14 results presentation
8 November 2013
#
Annual General Meeting
5 December 2013
#
Q2 and 6 months ended FY14 results
presentation
presentation
3 February 2014
#
Q3 FY14 results presentation
9 May 2014
#
Q4 and year ended FY14 results presentation
14 August 2014
#
# These dates may change in future
* The increase in the issued shares is mainly due to the shares issued
to the Tlhakanelo Employee Share Trust
to the Tlhakanelo Employee Share Trust
KEY FEATURES
Quarter on quarter
Gold production increased by 12% to 8 588kg (276 109oz)
• increase in tonnes milled of 9%
• increase in total recovered grade of 2%
• increase in total recovered grade of 2%
Cash operating costs decreased by 3% to R351 109/kg (US$1 156/oz)
Operating profit¹ lower at R639 million (US$68 million)
Headline loss per share of 186 SA cents (US$20 cents)
• reversal of the Hidden Valley deferred tax asset of R547 million (US$55 million)³
•retrenchment costs
•retrenchment costs
Year on Year
7% increase in underground grade
Lowest recorded annual LTIFR²
Evander sale transaction completed
Watershed agreement signed with Kusasalethu labour
Gold production decreased by 2% to 35 374kg (1 137 297oz)
Cash operating costs increased to R327 210/kg (US$1 154/oz)
Operating profit¹ lower at R4.5 billion (US$511 million)
Headline profit per share* of 47 SA cents (5 US cents)
• reversal of the Hidden Valley deferred tax asset of R547 million (US$55 million)³
• losses related to temporary closure at Kusasalethu
retrenchment
• losses related to temporary closure at Kusasalethu
retrenchment
costs
No final dividend declared (interim dividend of 50 SA cents paid)
*
Includes discontinued operation
1. Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the operating
profit line in the income statement
2. LTIFR = Lost Time Injury Frequency Rate
3. Translated at a spot rate of US$/R9.98 at 30 June 2013
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
Q4 FY13
RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED 30 JUNE 2013
2
2
2
2
Forward-looking statements
This 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.
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
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.
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.
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,
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 2013 will be
available on our website towards the end of
October 2013.
www.harmony.co.za
3
Chief executive officer’s review
5
Financial overview
6
Operational overview
6
Group operational results for the quarter and year
ended 30 June 2013
6 Continuing operation
ended 30 June 2013
6 Continuing operation
6
Kusasalethu
6 Doornkop
6 Phakisa
7 Tshepong
7 Masimong
7 Hidden Valley
6 Doornkop
6 Phakisa
7 Tshepong
7 Masimong
7 Hidden Valley
7
Target 1
7
Bambanani
8 Joel
8 Unisel
8 Target 3
8 Joel
8 Unisel
8 Target 3
8
Steyn 2
8
Total South African surface operations
8 Kalgold
9 Phoenix (tailings)
8 Kalgold
9 Phoenix (tailings)
9
Surface dumps
9
Mineral resources and mineral reserves
10
Mineral resources statement
11
Mineral reserves statement
13
Exploration highlights
16
Operating results (Rand/Metric) (US$/Imperial)
18
Operating results – Year on Year (Rand/Metric) (US$/Imperial)
20
Condensed consolidated income statements (Rand)
21
Condensed consolidated statements of comprehensive income (Rand)
22
Condensed consolidated balance sheets (Rand)
23
Condensed consolidated statements of changes in equity (Rand)
24
Condensed consolidated cash flow statements (Rand)
25
Notes to the condensed consolidated financial statements
30
Segment report (Rand/Metric)
32
Operating results (US$/Imperial)
34
Operating results – Year on Year (US$/Imperial)
36
Condensed consolidated income statements (US$)
37
Condensed consolidated statements of comprehensive income (US$)
38
Condensed consolidated balance sheets (US$)
39
Condensed consolidated statements of changes in equity (US$)
40
Condensed consolidated cash flow statements (US$)
41
Segment report (US$/Imperial)
42
Development results – Metric and Imperial
43
Notes
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:
on information compiled by the following competent persons:
Resources and Reserves South Africa: Jaco Boshoff, Pr. Sci. Nat., who has
18 years’ relevant experience and is registered with the South African
Council for Natural Scientific Professions (SACNASP).
18 years’ relevant experience and is registered with the South African
Council for Natural Scientific Professions (SACNASP).
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).
who has 25 years relevant experience and is a member of the Australian
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.
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.
Mineral Resource and Reserve information as at 30 June 2013 is included
in this report.
in this report.
3
Chief executive officer’s review
Harmony is a globally competitive gold mining company, focused on
growing profits. In the current gold price environment it is no longer
growth at all costs. Investors are seeking returns and do not favour
large capital projects. This is the new reality that we are dealing with.
growing profits. In the current gold price environment it is no longer
growth at all costs. Investors are seeking returns and do not favour
large capital projects. This is the new reality that we are dealing with.
During the past quarter we have concluded our strategic plans for
financial year 2014. Key considerations were:
financial year 2014. Key considerations were:
•
free cash flow
•
applying conservative financial modelling
•
risk mitigation
•
retaining our balance sheet strength
–
reducing all costs (including head office costs)
–
reducing capital expenditure
•
continue to increase our grade
•
plans that will enable us to withstand the volatility of the gold price
Our strategic plans were approved assuming a gold price of R400 000/kg.
We believe that our plans are realistic and we have taken into account
possible risks to execute our strategy. Our safety and health initiatives,
improved productivity, the correct allocation of capital, a quality reserve
base, improved grade, reduced costs, experienced teams and proper
business planning will secure a sustainable business.
We believe that our plans are realistic and we have taken into account
possible risks to execute our strategy. Our safety and health initiatives,
improved productivity, the correct allocation of capital, a quality reserve
base, improved grade, reduced costs, experienced teams and proper
business planning will secure a sustainable business.
1. SAFETY
The year on year fatality injury frequency rate improved by 33% from
0.15 (rate per million man hours) in FY12 to 0.10 (rate per million man
hours) in financial year 2013 (FY13) – the lowest ever recorded in the
history of Harmony. Although Harmony achieved a significant year on
year improvement, a lot more needs to be done to eliminate fatalities.
A total of 10 people lost their lives due to mine accidents in Harmony
during FY13, compared to 15 people in FY12. A major reduction in the
number of fall of ground related fatalities was achieved with only one
fall of ground related fatality recorded in FY13.
0.15 (rate per million man hours) in FY12 to 0.10 (rate per million man
hours) in financial year 2013 (FY13) – the lowest ever recorded in the
history of Harmony. Although Harmony achieved a significant year on
year improvement, a lot more needs to be done to eliminate fatalities.
A total of 10 people lost their lives due to mine accidents in Harmony
during FY13, compared to 15 people in FY12. A major reduction in the
number of fall of ground related fatalities was achieved with only one
fall of ground related fatality recorded in FY13.
The lost time injury rate improved by 21% year on year from 6.67 (rate
per million man hours) to 5.28 (rate per million man hours) – this is the
lowest annual rate in the history of Harmony.
per million man hours) to 5.28 (rate per million man hours) – this is the
lowest annual rate in the history of Harmony.
It is with regret that I have to report that two people were fatally injured
in two separate accidents during the June 2013 quarter. They were
Potso Peter Kotjomela, a scraper winch operator at Phakisa and
Lebohang Michael Chake, a development team leader at Kusasalethu.
The board, management and I wish to express our sincere condolences
to the friends and families of these colleagues.
in two separate accidents during the June 2013 quarter. They were
Potso Peter Kotjomela, a scraper winch operator at Phakisa and
Lebohang Michael Chake, a development team leader at Kusasalethu.
The board, management and I wish to express our sincere condolences
to the friends and families of these colleagues.
2. HEALTH
Over the past three years we have built a centralised health function
to focus on the roll out of our pro-active health strategy, as well as
standardising health protocols across the South African operations.
We have invested a substantial amount of resources, i.e. finance,
information technology and skills in improving our record keeping
systems and processes in an attempt to monitor employee health
individually and collectively to improve the overall health and wellness
of our employees.
to focus on the roll out of our pro-active health strategy, as well as
standardising health protocols across the South African operations.
We have invested a substantial amount of resources, i.e. finance,
information technology and skills in improving our record keeping
systems and processes in an attempt to monitor employee health
individually and collectively to improve the overall health and wellness
of our employees.
40% of our workforce is on chronic medication and are continuously
monitored. Although HIV/Aids remains our biggest health risk, the
actuarial prevalence rate for Harmony has reduced from 27% to 24%
over the past five years. Between 10% to 20% of the employees of
the individual mines are now on antiretroviral therapy (ART). During
the past financial year all Harmony’s employees and contractors were
monitored. Although HIV/Aids remains our biggest health risk, the
actuarial prevalence rate for Harmony has reduced from 27% to 24%
over the past five years. Between 10% to 20% of the employees of
the individual mines are now on antiretroviral therapy (ART). During
the past financial year all Harmony’s employees and contractors were
offered voluntary counselling and testing for HIV/Aids, with 40%
volunteering to be tested.
volunteering to be tested.
Although there has been an improvement in sick absenteeism over the
past financial year from 5.13% to 4.55%, we believe that there is still
massive room for improvement in this area and it will be a key focus for
the health team for the next year.
past financial year from 5.13% to 4.55%, we believe that there is still
massive room for improvement in this area and it will be a key focus for
the health team for the next year.
3. OPERATIONAL AND FINANCIAL RESULTS
Year on year
Gold production for the year ending June 2013 was 35 374kgs,
2% lower than the same period last year, mainly due to the labour
disruptions at Kusasalethu during the December 2012, March 2013
and June 2013 quarters.
2% lower than the same period last year, mainly due to the labour
disruptions at Kusasalethu during the December 2012, March 2013
and June 2013 quarters.
In line with Harmony’s strategic initiative to improve the quality of
ounces mined, year on year underground grade increased by 7%.
Recovered grade was the main driver towards the increase in gold
production across the various operations and improvements were
recorded at most operations.
ounces mined, year on year underground grade increased by 7%.
Recovered grade was the main driver towards the increase in gold
production across the various operations and improvements were
recorded at most operations.
The following operations improved their gold production when
compared to financial year 2012 (FY12):
compared to financial year 2012 (FY12):
•
Joel – gold production was 565kg (21%) higher, mainly as a result of
an 11% improvement in the recovered grade to 5.28g/t (4.78g/t in
FY12), whilst tonnes milled increased by 10% year on year;
an 11% improvement in the recovered grade to 5.28g/t (4.78g/t in
FY12), whilst tonnes milled increased by 10% year on year;
•
Bambanani – gold production was 556kg (54%) higher due to a
49% increase in the recovered grade from 6.57g/t in FY12 to
9.79g/t for the year under review. Tonnes milled increased by 3%
year on year;
49% increase in the recovered grade from 6.57g/t in FY12 to
9.79g/t for the year under review. Tonnes milled increased by 3%
year on year;
•
Doornkop – gold production was higher at 556kg (18%), recovered
grade increased by 9% from 3.31g/t to 3.60g/t in FY13. Tonnes
milled increased by 9%;
grade increased by 9% from 3.31g/t to 3.60g/t in FY13. Tonnes
milled increased by 9%;
•T
arget 3 – gold production increased by 503kg (45%) – recovered
grade increased by 42% to 5.03g/t from 3.55g/t in FY12;
grade increased by 42% to 5.03g/t from 3.55g/t in FY12;
•
Masimong – gold production increased by 396kg (12%), as a
result of a 21% increase in the recovered grade to 4.17g/t
result of a 21% increase in the recovered grade to 4.17g/t
(3.45g/t in FY12);
•
Target 1 – gold production was 337kg (9%) higher; recovered grade
increased by 20% from 4.61g/t in FY12 to 5.53g/t in financial year
2013 (FY13);
increased by 20% from 4.61g/t in FY12 to 5.53g/t in financial year
2013 (FY13);
•
Kalgold – gold production was 291kg (28%) higher; recovered
grade increased by 22% to 0.95g/t compared to 0.78g/t in FY12.
Tonnes milled increased 4% year on year;
grade increased by 22% to 0.95g/t compared to 0.78g/t in FY12.
Tonnes milled increased 4% year on year;
•
Unisel – gold production increased by 220kg (14%); tonnes milled
increased by 13% in FY13;
increased by 13% in FY13;
•
Steyn 2 – gold production increased by 147kg (45%), with the
operation being in production for the whole year. Tonnes milled
increased by 24% whilst recovered grade increased by 31% to
10.15g/t (7.74g/t in FY12).
operation being in production for the whole year. Tonnes milled
increased by 24% whilst recovered grade increased by 31% to
10.15g/t (7.74g/t in FY12).
The following operations require more attention in the next year, as
their production performance was less than acceptable:
their production performance was less than acceptable:
•
Kusasalethu produced a total of 2 740 kilograms of gold,
2 893 kilograms (–51%) less than in financial year 2012 due to
labour unrest;
2 893 kilograms (–51%) less than in financial year 2012 due to
labour unrest;
•
Tshepong produced 1 133kg gold less (–21%) than the previous
financial year. The decrease in gold production is mainly as a
result of a 16% decrease in tonnes milled for financial year 2013.
A decrease in the recovery grade to 3.99g/t, 7% lower than the
4.29g/t recorded in FY12, also contributed towards the decrease in
production;
financial year. The decrease in gold production is mainly as a
result of a 16% decrease in tonnes milled for financial year 2013.
A decrease in the recovery grade to 3.99g/t, 7% lower than the
4.29g/t recorded in FY12, also contributed towards the decrease in
production;
•Dumps – 230kg less gold produced (–15%); a 26% decrease in
the recovery grade was the main contributor towards the decrease
in gold produced. Tonnes milled increased by 11%. The decrease in
grade is due to the depletion of all the higher grade waste dumps;
the recovery grade was the main contributor towards the decrease
in gold produced. Tonnes milled increased by 11%. The decrease in
grade is due to the depletion of all the higher grade waste dumps;
4
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
•
Hidden Valley produced 118kg (–4%) less gold year on year. The
recovery grade decreased by 8% to 1.43g/t from 1.56g/t in FY12,
whilst tonnes milled increased by 4%;
recovery grade decreased by 8% to 1.43g/t from 1.56g/t in FY12,
whilst tonnes milled increased by 4%;
• Phakisa produced 107kg (–4%) less gold than in the previous
financial year, due to the ventilation shaft failure in the March and
June 2013 quarters resulting in tonnes milled being 2% lower
than in FY13, with the recovered grade 3% lower at 4.75g/t
(4.88g/t in FY12).
financial year, due to the ventilation shaft failure in the March and
June 2013 quarters resulting in tonnes milled being 2% lower
than in FY13, with the recovered grade 3% lower at 4.75g/t
(4.88g/t in FY12).
A total net loss of R2.4 billion was recorded, compared to a net profit
of R2.6 billion for the 2012 financial year, mainly due to the impairment
of the Hidden Valley asset and labour disruptions at Kusasalethu and its
subsequent temporary closure.
of R2.6 billion for the 2012 financial year, mainly due to the impairment
of the Hidden Valley asset and labour disruptions at Kusasalethu and its
subsequent temporary closure.
The total basic loss per share is 548 SA cents for the year ended
30 June 2013, compared to earnings of 614 SA cents per share in
the previous year. Total headline earnings per share decreased from
565 SA cents to 47 SA cents per share.
30 June 2013, compared to earnings of 614 SA cents per share in
the previous year. Total headline earnings per share decreased from
565 SA cents to 47 SA cents per share.
Quarter on quarter
We continue to manage that which is in our control – production and
costs. Gold production for the June 2013 quarter increased by 12%
to 8 588kg compared to the previous quarter. This was mainly due to
the build-up in production at Kusasalethu, after the labour unrest at
the mine during the second to fourth quarters of the financial year.
costs. Gold production for the June 2013 quarter increased by 12%
to 8 588kg compared to the previous quarter. This was mainly due to
the build-up in production at Kusasalethu, after the labour unrest at
the mine during the second to fourth quarters of the financial year.
Operating profit for the June 2013 quarter was 22% lower, due to a
9% decrease in the gold price received, as well as an 8% increase in
cash operating cost. Cash operating costs in the June 2013 quarter
increased by R225 million when compared to the March 2013 quarter,
due to the build-up in production at Kusasalethu, annual electricity
increases, as well as winter electricity tariffs.
9% decrease in the gold price received, as well as an 8% increase in
cash operating cost. Cash operating costs in the June 2013 quarter
increased by R225 million when compared to the March 2013 quarter,
due to the build-up in production at Kusasalethu, annual electricity
increases, as well as winter electricity tariffs.
We are making good progress with our cost cutting project, Project 400.
We have reduced our capital expenditure, as well as our services,
exploration, procurement and corporate costs.
We have reduced our capital expenditure, as well as our services,
exploration, procurement and corporate costs.
The rand per kilogram unit cost for the June 2013 quarter decreased by
3% to R351 109/kg in the past quarter, mainly due to the 12% increase
in gold produced for the June 2013 quarter.
3% to R351 109/kg in the past quarter, mainly due to the 12% increase
in gold produced for the June 2013 quarter.
Total capital expenditure for the June 2013 quarter was R804 million –
R127 million higher than the previous quarter – mainly as a result of a
R93 million increase in capital expenditure at Kusasalethu.
R127 million higher than the previous quarter – mainly as a result of a
R93 million increase in capital expenditure at Kusasalethu.
On 19 July 2013 Harmony announced that the carrying value of its 50%
holding in Hidden Valley would be written down to its net recoverable
value. The reason for the impairment is the reduction in the US dollar
gold and silver prices and Hidden Valley’s poor production performance.
An amount of US$268 million (approximately R2.7 billion) has been
written down. In addition, an amount of R58 million in respect of
Harmony’s South African assets has been impaired. The impairments
have reduced the reported net profit, but do not have an impact on
reported cash balances and free cash flow.
holding in Hidden Valley would be written down to its net recoverable
value. The reason for the impairment is the reduction in the US dollar
gold and silver prices and Hidden Valley’s poor production performance.
An amount of US$268 million (approximately R2.7 billion) has been
written down. In addition, an amount of R58 million in respect of
Harmony’s South African assets has been impaired. The impairments
have reduced the reported net profit, but do not have an impact on
reported cash balances and free cash flow.
The net loss for the June 2013 quarter was R3 499 million, compared to
a R124 million net loss recorded for the March 2013 quarter, mainly due
to the impairment of assets of R2 675 million and the derecognition of
the deferred tax asset of R547 million for the Hidden Valley operation.
a R124 million net loss recorded for the March 2013 quarter, mainly due
to the impairment of assets of R2 675 million and the derecognition of
the deferred tax asset of R547 million for the Hidden Valley operation.
The total basic loss per share for the June 2013 quarter increased from
29 SA cents to 809 SA cents per share. The total headline loss per share
increased from 47 SA cents to 186 SA cents.
29 SA cents to 809 SA cents per share. The total headline loss per share
increased from 47 SA cents to 186 SA cents.
Hidden Valley
The various efficiency improvement and cost reduction projects
continue at Hidden Valley showing significant improvements in the
mining grade control, road maintenance (cost and productivity), truck
loading efficiency and smaller mobile fleet requirements.
continue at Hidden Valley showing significant improvements in the
mining grade control, road maintenance (cost and productivity), truck
loading efficiency and smaller mobile fleet requirements.
The restructuring of the joint venture’s management to meet both the
financial and strategic objectives of the business progressed well during
the past quarter.
financial and strategic objectives of the business progressed well during
the past quarter.
4. GOLD MARKET
We are in gold mining for the long haul and believe that R400 000/kg
is a sustainable gold price to assume in the current gold price climate.
With the Rand/dollar exchange rate being weaker, it has been a huge
advantage to be predominately a South African producer.
is a sustainable gold price to assume in the current gold price climate.
With the Rand/dollar exchange rate being weaker, it has been a huge
advantage to be predominately a South African producer.
The rand gold price received during the quarter decreased by 9% to
R427 534/kg, from R470 030/kg in the previous quarter. This was mainly
due to a 14% decrease in the US dollar gold price from US$1 639/oz in
the March 2013 quarter to US$1 407/oz during the past quarter. This
decrease was however partially offset by a 6% weakening in the rand
against the dollar from US$/R8.92 in the previous quarter to US$/R9.45
in the June 2013 quarter.
R427 534/kg, from R470 030/kg in the previous quarter. This was mainly
due to a 14% decrease in the US dollar gold price from US$1 639/oz in
the March 2013 quarter to US$1 407/oz during the past quarter. This
decrease was however partially offset by a 6% weakening in the rand
against the dollar from US$/R8.92 in the previous quarter to US$/R9.45
in the June 2013 quarter.
Year on year, the R/kg gold price received increased by 8% while
the US$/oz price decreased by 5%, due to the R/US$exchange rate
weakening by 14%.
the US$/oz price decreased by 5%, due to the R/US$exchange rate
weakening by 14%.
5. RESERVES AND RESOURCES
As at 30 June 2013, Harmony’s Mineral Reserves amounted to
51.5 million ounces (Moz) of gold, a 2.8% decrease from the 52.9Moz
declared on 30 June 2012. The 2.8% decrease collectively represents
mined Reserves during the year, a change in surface sources Reserves,
together with some scope changes. The geographical representation of
Reserves has not changed from the previous year.
51.5 million ounces (Moz) of gold, a 2.8% decrease from the 52.9Moz
declared on 30 June 2012. The 2.8% decrease collectively represents
mined Reserves during the year, a change in surface sources Reserves,
together with some scope changes. The geographical representation of
Reserves has not changed from the previous year.
Harmony’s attributable gold equivalent Mineral Resources are declared
as 147.7Moz as at 30 June 2013, a 1.7% decrease year-on-year from
the 150.2Moz declared on 30 June 2012. The 1.7% decrease is due to
mining and geology changes.
as 147.7Moz as at 30 June 2013, a 1.7% decrease year-on-year from
the 150.2Moz declared on 30 June 2012. The 1.7% decrease is due to
mining and geology changes.
Our large Resource and Reserve base supports our belief that we have a
solid base of assets containing quality ounces.
solid base of assets containing quality ounces.
6. WAFI-GOLPU PROJECT
Regardless of the quality of the ore body, developing Golpu in line
with the 2012 pre-feasibility study in the current gold and copper
price climate does not deliver an adequate return on investment
and therefore requires to be repositioned. We had various concerns
regarding the substantial capital that will be injected into the project
and are considering ways in which to develop a project with lower
capital requirements and which will be a modular, expandable mine.
with the 2012 pre-feasibility study in the current gold and copper
price climate does not deliver an adequate return on investment
and therefore requires to be repositioned. We had various concerns
regarding the substantial capital that will be injected into the project
and are considering ways in which to develop a project with lower
capital requirements and which will be a modular, expandable mine.
Harmony’s contribution to drilling and project expenditure for the next
two financial years will be funded from our cash flow, after which
external funding options will be considered. During this phase we will
ensure that Golpu’s development strategy is aligned with the strategy of
Harmony, which is to grow investor returns.
two financial years will be funded from our cash flow, after which
external funding options will be considered. During this phase we will
ensure that Golpu’s development strategy is aligned with the strategy of
Harmony, which is to grow investor returns.
A low risk, modular, expandable development approach involves less
risk and is expected to result in an improved project value. The decision
to apply a modular expandable solution is a different approach to that
proposed in the 2012 pre-feasibility study.
risk and is expected to result in an improved project value. The decision
to apply a modular expandable solution is a different approach to that
proposed in the 2012 pre-feasibility study.
7. EMPLOYEE RELATIONS
The labour relations climate remained volatile in the industry prior to
the start of the 2013 round of wage negotiations in the gold sector.
Harmony experienced two work stoppages during the quarter led by
the National Union of Mine Workers (NUM) at Doornkop and Tshepong.
The issues raised during these industrial actions were mainly operational
and have since been resolved, or are in the process of being addressed
through the existing mine-based structures.
the start of the 2013 round of wage negotiations in the gold sector.
Harmony experienced two work stoppages during the quarter led by
the National Union of Mine Workers (NUM) at Doornkop and Tshepong.
The issues raised during these industrial actions were mainly operational
and have since been resolved, or are in the process of being addressed
through the existing mine-based structures.
5
Financial overview
QUARTER ON QUARTER
Net loss
The net loss for the June 2013 quarter was R3 499 million compared
to a R124 million net loss for the March 2013 quarter, mainly due to
impairment of assets of R2 675 million and the reversal of a deferred tax
asset of R547 million for the Hidden Valley operation.
to a R124 million net loss for the March 2013 quarter, mainly due to
impairment of assets of R2 675 million and the reversal of a deferred tax
asset of R547 million for the Hidden Valley operation.
Impairment of assets
Following the sharp decrease in the gold price, an impairment of assets
of R2 733 million was recorded during the June 2013 quarter, consisting
of an impairment of R2 675 million for the Hidden Valley operation and
R58 million for the SA operations. The impairment results from a lower
than expected life-of-mine profit, due to the reduction in the US dollar
gold and silver prices assumptions and Hidden Valley’s poor production
performance.
of R2 733 million was recorded during the June 2013 quarter, consisting
of an impairment of R2 675 million for the Hidden Valley operation and
R58 million for the SA operations. The impairment results from a lower
than expected life-of-mine profit, due to the reduction in the US dollar
gold and silver prices assumptions and Hidden Valley’s poor production
performance.
Other items in Cost of Sales
Other items in Cost of Sales for the June 2013 quarter includes a change
in estimate of the value of static gold in lock-up and other stockpiles
of R29 million and restructuring costs of R39 million, following the
introduction of voluntary retrenchment packages in South Africa and
the restructuring at the Hidden Valley operation. Offsetting this is a net
credit of R40 million for rehabilitation following the reduction of the
rehabilitation liability, primarily as a result of the rehabilitation projects
in the Free State area.
in estimate of the value of static gold in lock-up and other stockpiles
of R29 million and restructuring costs of R39 million, following the
introduction of voluntary retrenchment packages in South Africa and
the restructuring at the Hidden Valley operation. Offsetting this is a net
credit of R40 million for rehabilitation following the reduction of the
rehabilitation liability, primarily as a result of the rehabilitation projects
in the Free State area.
Other expenses
Included in other expenses in the June 2013 quarter is a loss of
R161 million for the foreign exchange movement (March 2013:
R161 million for the foreign exchange movement (March 2013:
R150 million) on the US$ denominated syndicated facility, resulting from
the Rand weakening from US$/R9.22 at 31 March 2013 to US$/R9.98 at
30 June 2013. Also included is an amount of R23 million for the once-off
share-based payment expense related to the Phoenix transaction.
the Rand weakening from US$/R9.22 at 31 March 2013 to US$/R9.98 at
30 June 2013. Also included is an amount of R23 million for the once-off
share-based payment expense related to the Phoenix transaction.
Deferred tax
A deferred tax expense of R547 million was recorded following
the derecognition of the Hidden Valley deferred tax asset during
the June 2013 quarter, as it is no longer deemed recoverable in the
current gold price environment.
the derecognition of the Hidden Valley deferred tax asset during
the June 2013 quarter, as it is no longer deemed recoverable in the
current gold price environment.
Loss per share
Total basic loss per share increased in the June 2013 quarter from 29 SA
cents to 809 SA cents per share. Total headline loss per share increased
from 47 SA cents to 186 SA cents per share.
cents to 809 SA cents per share. Total headline loss per share increased
from 47 SA cents to 186 SA cents per share.
YEAR ON YEAR
Exploration expenditure
Exploration expenditure for the year ended 30 June 2013 increased to
R673 million compared to R500 million for the previous year, mainly
due to R652 million spent on the PNG projects. Expenditure on resource
definition drilling amounted to R233 million, exploration amounted to
R251 million, while the feasibility studies accounted for R168 million of
the total for the year. These expenses are expected to decrease in future
as a result of the optimisation process reductions agreed to by both the
joint venture partners.
R673 million compared to R500 million for the previous year, mainly
due to R652 million spent on the PNG projects. Expenditure on resource
definition drilling amounted to R233 million, exploration amounted to
R251 million, while the feasibility studies accounted for R168 million of
the total for the year. These expenses are expected to decrease in future
as a result of the optimisation process reductions agreed to by both the
joint venture partners.
Profit from discontinued operations
Profit from discontinued operations for the year ended 30 June 2013
includes the group profit of R102 million recorded on the sale of Evander
in the March 2013 quarter, following the fulfilment of all conditions
includes the group profit of R102 million recorded on the sale of Evander
in the March 2013 quarter, following the fulfilment of all conditions
A recognition agreement was signed by management and the
Association of Mineworkers and Construction Union (AMCU) for
Masimong during the week of the 15 July 2013. AMCU now represents
a third of Masimong’s total workforce and at Kusasalethu, AMCU
represents 74% of the employees.
Association of Mineworkers and Construction Union (AMCU) for
Masimong during the week of the 15 July 2013. AMCU now represents
a third of Masimong’s total workforce and at Kusasalethu, AMCU
represents 74% of the employees.
The gold sector wage negotiations started on 11 July 2013 at the
Chamber of Mines. We believe that good sense will prevail and that
strikes will be averted. The labour disruptions at Kusasalethu alone
cost Harmony approximately R1.2 billion. It is not in the interest of
the company, the employees or the industry to further be subjected to
such losses.
Chamber of Mines. We believe that good sense will prevail and that
strikes will be averted. The labour disruptions at Kusasalethu alone
cost Harmony approximately R1.2 billion. It is not in the interest of
the company, the employees or the industry to further be subjected to
such losses.
There are a number of initiatives being implemented to contain the
labour situation, both at company and industry level. Some of these
include the following:
labour situation, both at company and industry level. Some of these
include the following:
•
Workshops with all the unions in the company;
•
Engagement with the unions on signing of the code of conduct by
individual employees similar to the one signed at Kusasalethu;
individual employees similar to the one signed at Kusasalethu;
•
General managers’ mass meetings;
•
Communication campaigns with employees and unions across all
our South African operations;
our South African operations;
•
Re-introduction of the mine productivity bonus;
•
Continued engagement with the other gold mining companies.
8. DISPOSAL OF A 30% INTEREST IN THE PHOENIX OPERATION
On 20 March 2013 Harmony signed transaction and funding
agreements to give effect to an empowerment transaction to dispose
agreements to give effect to an empowerment transaction to dispose
of 30% of its Free State based Phoenix tailings operation (Phoenix)
to BB-BEE shareholders. The BB-BEE shareholders include Sikhuliso
Resources (Proprietary) Limited, Kopano Resources (Proprietary) Limited,
Mazincazelane Investments (Proprietary) Limited and the Malibongwe
Women Development Trust, as well as a community trust that has been
created by Harmony.
to BB-BEE shareholders. The BB-BEE shareholders include Sikhuliso
Resources (Proprietary) Limited, Kopano Resources (Proprietary) Limited,
Mazincazelane Investments (Proprietary) Limited and the Malibongwe
Women Development Trust, as well as a community trust that has been
created by Harmony.
9. DIVIDEND
In view of the fact that Harmony did not record a profit for the last
six months, the board has decided not to declare a final dividend. An
interim dividend of 50 SA cents was paid during FY13.
six months, the board has decided not to declare a final dividend. An
interim dividend of 50 SA cents was paid during FY13.
CONCLUSION
Harmony’s strategy has been consistent in that we seek to optimise
operational delivery, grow our cash flow and share our profits with all
our stakeholders. There are times when pursuing one’s strategy, tough
decisions are required – such as the temporary closure of Kusasalethu.
We will continue to do what is right for our shareholders and
stakeholders to sustain the future of the company.
operational delivery, grow our cash flow and share our profits with all
our stakeholders. There are times when pursuing one’s strategy, tough
decisions are required – such as the temporary closure of Kusasalethu.
We will continue to do what is right for our shareholders and
stakeholders to sustain the future of the company.
Graham Briggs
Chief executive officer
Chief executive officer
6
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
precedent. The remaining R212 million represents profits for Evander
for the eight months ended February 2013. Included in the amount
for the year ended 30 June 2012 is the profit on sale of Evander 6 and
Twistdraai to Taung Gold Limited of R230 million (before tax).
for the eight months ended February 2013. Included in the amount
for the year ended 30 June 2012 is the profit on sale of Evander 6 and
Twistdraai to Taung Gold Limited of R230 million (before tax).
Loss per share
Total basic loss per share amounted to 548 SA cents in the year ended
30 June 2013, compared to earnings of 614 SA cents per share in the
previous year. Total headline earnings per share decreased from 565 SA
cents to 47 SA cents per share.
30 June 2013, compared to earnings of 614 SA cents per share in the
previous year. Total headline earnings per share decreased from 565 SA
cents to 47 SA cents per share.
Borrowings
Total borrowings increased by R722 million to R2 538 million in the year
ended 30 June 2013. This is due to a total drawdown of US$80 million
(R678 million) and a foreign exchange translation loss of R351 million
recorded on the US$ syndicated facility in the year ended 30 June 2013.
This was partially offset by the total repayment of R305 million made
during the year ended 30 June 2013 on the rand facilities.
ended 30 June 2013. This is due to a total drawdown of US$80 million
(R678 million) and a foreign exchange translation loss of R351 million
recorded on the US$ syndicated facility in the year ended 30 June 2013.
This was partially offset by the total repayment of R305 million made
during the year ended 30 June 2013 on the rand facilities.
Operational overview
GROUP OPERATIONAL RESULTS FOR THE QUARTER ENDED
30 JUNE 2013
30 JUNE 2013
Continuing operations
Indicator
Units
June
2013
March
2013
%
variance
Underground tonnes
000
1 592
1 381
15
Surface tonnes
000
3 174
3 005
6
Total tonnes
000
4 766
4 386
9
Underground grade
g/t
4.37
4.50
(3)
Surface grade
g/t
0.51
0.49
4
Total grade
g/t
1.80
1.76
2
Gold produced
Kg
8 588
7 699
12
Cash operating costs
R/kg
351 109
362 491
3
Operating profit
R’000
639 220
821 283
(22)
Gold production improved by 12% quarter-on-quarter to 8 588kg
largely due to a 9% increase in tonnes milled and a 2% increase in total
recovered grade to 1.80g/t.
largely due to a 9% increase in tonnes milled and a 2% increase in total
recovered grade to 1.80g/t.
Underground grade decreased by 3% quarter on quarter to 4.37g/t
due to the lock-up of gold at Kusasalethu and the marginally lower
plant call factor in Harmony One plant which treats the majority of the
tonnes in the Free State region. Increased focus remains on the top
20 high grade panels at each operation, the quality of the sweepings,
stoping width and off reef mining discipline to ensure an increase in
grades and output.
due to the lock-up of gold at Kusasalethu and the marginally lower
plant call factor in Harmony One plant which treats the majority of the
tonnes in the Free State region. Increased focus remains on the top
20 high grade panels at each operation, the quality of the sweepings,
stoping width and off reef mining discipline to ensure an increase in
grades and output.
Cash operating costs improved by 3% to R351 109/kg from the previous
quarter. Total cash operating costs at all the shafts increased during the
quarter, due to higher electricity tariffs – which includes one month of
winter tariffs and an increased rate since April’s official increase – an
increase in bonuses due to higher production outputs and an increase
in plant costs due to higher volumes milled.
quarter. Total cash operating costs at all the shafts increased during the
quarter, due to higher electricity tariffs – which includes one month of
winter tariffs and an increased rate since April’s official increase – an
increase in bonuses due to higher production outputs and an increase
in plant costs due to higher volumes milled.
Kusasalethu
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
212
33
>100
Grade
g/t
3.25
1.48
>100
Gold produced
kg
688
49
>100
Cash operating costs
R/kg
577 337 6 564 347
91
Operating loss
R’000
(121 535)
(285 680)
57
The phased re-opening process of employees returning to Kusasalethu,
post its temporary closure, was concluded on 26 April 2013. Every
employee signed the code of conduct, received training on the
post its temporary closure, was concluded on 26 April 2013. Every
employee signed the code of conduct, received training on the
guarantees and undertakings agreed to in the agreement, and
underwent health and safety inductions. Daily operations are peaceful
and productive.
underwent health and safety inductions. Daily operations are peaceful
and productive.
During the June 2013 quarter, Kusasalethu produced 688kg of gold
at a recovered grade of 3.25g/t. Cash operating cost improved to
R577 337/kg, due to increased gold production. Normalised cost levels
in R/kg are however only expected in the coming quarter.
at a recovered grade of 3.25g/t. Cash operating cost improved to
R577 337/kg, due to increased gold production. Normalised cost levels
in R/kg are however only expected in the coming quarter.
The operating loss decreased quarter on quarter to R122 million, due to
increased gold production.
increased gold production.
Doornkop
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
242
249
(3)
Grade
g/t
3.55
3.60
(1)
Gold produced
kg
859
897
(4)
Cash operating costs
R/kg
332 516
295 429
(13)
Operating profit
R’000
79 158
150 231
(47)
Doornkop’s recovered grade remained stable at 3.55g/t while tonnes
milled decreased by 3% quarter on quarter to 242 000t. The decrease
in tonnes was due to illegal labour disruptions during the quarter,
lasting about four days, resulting in a 4% decrease in gold production
to 859kg. The appropriate action was taken regarding the labour unrest
and no further disruptions were reported during the quarter.
milled decreased by 3% quarter on quarter to 242 000t. The decrease
in tonnes was due to illegal labour disruptions during the quarter,
lasting about four days, resulting in a 4% decrease in gold production
to 859kg. The appropriate action was taken regarding the labour unrest
and no further disruptions were reported during the quarter.
Lower gold production and an increase in electricity, plant and stores
costs during the quarter, resulted in a 13% increase in operating costs
to R332 516/kg, impacting on the operating profit quarter on quarter.
costs during the quarter, resulted in a 13% increase in operating costs
to R332 516/kg, impacting on the operating profit quarter on quarter.
Phakisa
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
133
109
22
Grade
g/t
4.38
4.44
(1)
Gold produced
kg
583
484
20
Cash operating costs
R/kg
444 168
505 324
12
Operating profit
R’000
(8 941)
(18 147)
51
Phakisa had an improved production quarter despite the underground
fire which resulted in a mine stoppage of ten days, followed by a
gradual start-up.
fire which resulted in a mine stoppage of ten days, followed by a
gradual start-up.
Tonnes milled increased by 22% quarter on quarter to 133 000t while
recovered grade remained stable at 4.38g/t. Gold produced increased by
20% to 583kg. Cash operating costs improved by 12% to R444 168/kg,
due to the increase in gold production. The remedial work at Freddies
No. 3 ventilation shaft is on track and is expected to be completed by
the end of calendar year 2013.
recovered grade remained stable at 4.38g/t. Gold produced increased by
20% to 583kg. Cash operating costs improved by 12% to R444 168/kg,
due to the increase in gold production. The remedial work at Freddies
No. 3 ventilation shaft is on track and is expected to be completed by
the end of calendar year 2013.
7
Tshepong
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
211
262
(19)
Grade
g/t
3.86
3.93
(2)
Gold produced
kg
815
1 029
(21)
Cash operating costs
R/kg
418 310
340 586
(23)
Operating profit
R’000
2 069
131 961
(98)
During the June 2013 quarter, gold production was 21% lower quarter
on quarter at 815kg, due to several labour disruptions, as well as the fire
at Phakisa mine, (a linked underground section was halted for ten days
due to the impact of the Phakisa fire in this section). These issues have
been resolved and Tshepong should perform better in the next quarter.
on quarter at 815kg, due to several labour disruptions, as well as the fire
at Phakisa mine, (a linked underground section was halted for ten days
due to the impact of the Phakisa fire in this section). These issues have
been resolved and Tshepong should perform better in the next quarter.
Cash operating costs for the quarter increased in line with the decrease
in gold production to R418 310/kg resulting in a lower operating profit
of R2 million for the quarter.
in gold production to R418 310/kg resulting in a lower operating profit
of R2 million for the quarter.
Masimong
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
210
181
16
Grade
g/t
4.00
4.41
(9)
Gold produced
kg
839
799
5
Cash operating costs
R/kg
289 795
287 596
(1)
Operating profit
R’000
114 723
144 950
(21)
Gold production increased by 5% to 839kg quarter on quarter, due
to a 16% increase in tonnes milled to 210 000t. The recovered grade
decreased by 9% to 4.00g/t and the management team has undertaken
to focus more on clean mining during the next quarter.
to a 16% increase in tonnes milled to 210 000t. The recovered grade
decreased by 9% to 4.00g/t and the management team has undertaken
to focus more on clean mining during the next quarter.
Cash operating costs increased slightly to R289 795/kg due to the
increase in electricity tariffs.
increase in electricity tariffs.
Masimong recorded an operating profit of R115 million during the
quarter, compared to R145 million during the March 2013 quarter.
quarter, compared to R145 million during the March 2013 quarter.
Hidden Valley (held in Morobe Mining Joint Ventures – 50% of
attributable production reflected)
attributable production reflected)
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
457
440
4
Grade
g/t
1.58
1.34
18
Gold produced
kg
722
591
22
Cash operating costs
R/kg
487 898
515 012
5
Operating loss
R’000
(52 066)
(20 924)
>(100)
Gold production increased by 22% from 591kg in the previous quarter
to 722kg, while silver production decreased with 7% from 205 651oz
to 191 429oz. Gold production increased due to improved grades
delivered to the mill and improved recoveries in the treatment plant,
which yielded an 18% increase in recovered grade at 1.58g/t for
the quarter. The increase in tonnes milled of 4% quarter-on-quarter
to 457 000t, is due to improved mobile fleet availability and an
improvement in management of the fleet in the pit.
to 722kg, while silver production decreased with 7% from 205 651oz
to 191 429oz. Gold production increased due to improved grades
delivered to the mill and improved recoveries in the treatment plant,
which yielded an 18% increase in recovered grade at 1.58g/t for
the quarter. The increase in tonnes milled of 4% quarter-on-quarter
to 457 000t, is due to improved mobile fleet availability and an
improvement in management of the fleet in the pit.
The main reason for the decrease in silver production is that the over
land conveyor was not operating for most of the quarter and more ore
was processed out of the Hamata pit which is closer to the plant, but
has a low silver content.
land conveyor was not operating for most of the quarter and more ore
was processed out of the Hamata pit which is closer to the plant, but
has a low silver content.
Cash operating costs improved quarter on quarter by 5% to R487 898/kg,
due to higher gold production.
due to higher gold production.
The operating loss for the quarter of R52 million was as a result of the
lower gold price received and the increase in total cash operating costs.
lower gold price received and the increase in total cash operating costs.
The crusher upgrade was wet commissioned on the 20 June 2013.
Good progress was made with the performance testing of the system.
This will decrease the expected ore movement cost per ton for the
coming quarter.
Good progress was made with the performance testing of the system.
This will decrease the expected ore movement cost per ton for the
coming quarter.
The restructuring of the joint venture management structure to meet
both the financial and strategic objectives of the business progressed
well during the past quarter. The following major cost saving initiatives
will continue to reduce the cash cost per ounce during the September
2013 quarter:
both the financial and strategic objectives of the business progressed
well during the past quarter. The following major cost saving initiatives
will continue to reduce the cash cost per ounce during the September
2013 quarter:
continuation of organisational restructuring started in the June 2013
quarter;
quarter;
eliminating the need for truck haulage to the treatment plant with
the commissioning of the upgraded crusher and OLC system;
the commissioning of the upgraded crusher and OLC system;
re-negotiation of all major contracts.
Target 1
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
179
182
(2)
Grade
g/t
5.01
5.02
(0.2)
Gold produced
kg
897
913
(2)
Cash operating costs
R/kg
281 223
248 585
(13)
Operating profit
R’000
147 189
195 795
(25)
Gold production at Target 1 is slightly down at 897kg, mainly due to
lower tonnes milled of 179 000t compared to 182 000t during the
previous quarter. Grade remained flat at 5.01g/t. Cash operating costs
increased by 13% quarter on quarter to R281 223/kg, due to higher
electricity costs and maintenance costs on the equipment and the fridge
plants.
lower tonnes milled of 179 000t compared to 182 000t during the
previous quarter. Grade remained flat at 5.01g/t. Cash operating costs
increased by 13% quarter on quarter to R281 223/kg, due to higher
electricity costs and maintenance costs on the equipment and the fridge
plants.
Despite the higher costs and the lower gold price received, Target 1
recorded an operating profit of R147 million during the quarter.
recorded an operating profit of R147 million during the quarter.
Bambanani
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
55
34
62
Grade
g/t
11.16
8.76
27
Gold produced
kg
614
298
>100
Cash operating costs
R/kg
201 467
388 477
48
Operating profit
R’000
143 445
23 983
>100
Gold production more than doubled from 298kg in the previous quarter
to 614kg in the June 2013 quarter. The increase in production comes
from both a 27% increase in grade to 11.16g/t and a 62% increase in
tonnes milled to 55 000t.
to 614kg in the June 2013 quarter. The increase in production comes
from both a 27% increase in grade to 11.16g/t and a 62% increase in
tonnes milled to 55 000t.
Bambanani is Harmony’s lowest cash operating cost producer for the
June 2013 quarter, with a 48% decrease in cash operating costs to
R201 467/kg, mainly due to higher gold production. As a result,
operating profit was substantially higher at R143 million.
June 2013 quarter, with a 48% decrease in cash operating costs to
R201 467/kg, mainly due to higher gold production. As a result,
operating profit was substantially higher at R143 million.
8
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
Joel
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
151
139
9
Grade
g/t
4.63
5.60
(17)
Gold produced
kg
699
779
(10)
Cash operating costs
R/kg
243 308
207 107
(17)
Operating profit
R’000
133 094
186 638
(29)
Although tonnes milled increased by 9% quarter-on-quarter to
151 000t, grade declined by 17% to 4.63g/t, resulting in a 10%
decrease in gold production to 699kg.
151 000t, grade declined by 17% to 4.63g/t, resulting in a 10%
decrease in gold production to 699kg.
Joel is the second lowest cost producer in the company at R243 308/kg.
Despite lower gold production, Joel recorded an operating profit of
R133 million.
Despite lower gold production, Joel recorded an operating profit of
R133 million.
Unisel
Indicator
Units
June
2013
March
2013
%
variance
Tonnes milled
000
114
99
15
Grade
g/t
3.75
4.28
(12)
Gold produced
kg
427
424
1
Cash operating costs
R/kg
331 747
318 934
(4)
Operating profit
R’000
40 262
63 267
(36)
Gold production at Unisel increased slightly to 427kg. The 12% decrease
in recovered grade was off-set by the 15% increase in tonnes milled at
114 000t for the quarter. The decrease in grade was mainly as a result
of lower face grades and an increase in stoping widths.
in recovered grade was off-set by the 15% increase in tonnes milled at
114 000t for the quarter. The decrease in grade was mainly as a result
of lower face grades and an increase in stoping widths.
Unisel recorded an operating profit of R40 million during the quarter,
with cash operating costs 4% higher at R331 747/kg as a result of
higher electricity, stores and plant costs.
with cash operating costs 4% higher at R331 747/kg as a result of
higher electricity, stores and plant costs.
Target 3
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
73
81
(10)
Grade
g/t
5.74
5.05
14
Gold produced
kg
419
409
2
Cash operating costs
R/kg
297 759
308 220
3
Operating profit
R’000
61 329
65 148
(6)
Gold production increased by 2% quarter on quarter, despite the 10%
decrease in tonnes milled at 73 000t.
decrease in tonnes milled at 73 000t.
Recovered grade was 14% higher quarter on quarter at 5.74g/t, as a
result of the increase in face grades and an improvement in the mine
call factor.
result of the increase in face grades and an improvement in the mine
call factor.
The operating profit generated was 6% lower at R61 million quarter
on quarter, as a result of the lower gold price received. Cash operating
costs were 3% lower at R297 759/kg, due to increased gold production.
on quarter, as a result of the lower gold price received. Cash operating
costs were 3% lower at R297 759/kg, due to increased gold production.
Steyn 2
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
12
12
–
Grade
g/t
10.08
11.58
(13)
Gold produced
kg
121
139
(13)
Cash operating costs
R/kg
257 736
228 295
(13)
Operating profit
R’000
19 868
33 485
(41)
Tonnes milled remained flat quarter on quarter at 12 000t. Recovered
grade decreased to 10.08g/t from a 30% increase recorded in the
previous quarter to a 13% decrease in the current quarter. A further
emphasis has been placed on clean mining to improve grades going
forward.
grade decreased to 10.08g/t from a 30% increase recorded in the
previous quarter to a 13% decrease in the current quarter. A further
emphasis has been placed on clean mining to improve grades going
forward.
Operating profit decreased to R20 million mainly due to the 13%
decrease in gold production to 121kg.
decrease in gold production to 121kg.
TOTAL SOUTH AFRICAN SURFACE OPERATIONS
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
2 717
2 565
6
Grade
g/t
0.33
0.35
(6)
Gold produced
kg
905
888
2
Cash operating costs
R/kg
324 401
312 931
(4)
Operating profit
R’000
80 625
150 576
(46)
Tonnes milled at the South African surface operations increased by 6%
to 2 717 000t, mainly due to higher volumes at Phoenix – resulting in a
2% increase in gold production quarter on quarter from 888kg of gold
to 905 kg of gold.
to 2 717 000t, mainly due to higher volumes at Phoenix – resulting in a
2% increase in gold production quarter on quarter from 888kg of gold
to 905 kg of gold.
Recovered grade decreased from 0.35g/t to 0.33g/t quarter-on-quarter,
mainly due to lower grades at Phoenix and the surface dumps.
mainly due to lower grades at Phoenix and the surface dumps.
Cash operating costs for the June 2013 quarter were 4% higher at
R324 401/kg, while operating profits decreased quarter-on-quarter to
R81 million, mainly due to lower gold prices received.
R324 401/kg, while operating profits decreased quarter-on-quarter to
R81 million, mainly due to lower gold prices received.
Kalgold
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
367
332
11
Grade
g/t
0.97
0.93
4
Gold produced
kg
357
309
16
Cash operating costs
R/kg
320 417
354 346
10
Operating profit
R’000
27 082
45 459
(40)
Kalgold’s gold production increased by 16% quarter-on-quarter to
357kg, mainly due to an 11% increase in tonnes milled to 367 000t in
the June 2013 quarter, supported by a 4% increase in recovered grade
at 0.97g/t.
357kg, mainly due to an 11% increase in tonnes milled to 367 000t in
the June 2013 quarter, supported by a 4% increase in recovered grade
at 0.97g/t.
Cash operating costs improved by 10% from the previous quarter to
R320 417/kg, due to higher gold production. Total cash operating costs
increased due to higher plant costs following maintenance.
R320 417/kg, due to higher gold production. Total cash operating costs
increased due to higher plant costs following maintenance.
Operating profit was lower at R27 million, due to a lower gold price
received and an increase in total cash operating costs quarter-on-
quarter.
received and an increase in total cash operating costs quarter-on-
quarter.
9
Phoenix (tailings)
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
1 471
1 325
11
Grade
g/t
0.14
0.16
(13)
Gold produced
kg
202
216
(6)
Cash operating costs
R/kg
317 396
254 986
(24)
Operating profit
R’000
24 005
45 371
(47)
Tonnes treated increased by 11% to 1 471 000t, due to the early
commissioning of the St Helena cyclone dam. The decrease in recovered
grade to 0.14g/t is as a result of lower dissolution during the quarter.
Gold production was 6% lower at 202kg as a result. Phoenix’s operating
profit decreased from R45 million to R24 million, due to lower gold
production and higher cash operating costs as a result of higher than
planned reagents and plant rehabilitation costs during the quarter.
commissioning of the St Helena cyclone dam. The decrease in recovered
grade to 0.14g/t is as a result of lower dissolution during the quarter.
Gold production was 6% lower at 202kg as a result. Phoenix’s operating
profit decreased from R45 million to R24 million, due to lower gold
production and higher cash operating costs as a result of higher than
planned reagents and plant rehabilitation costs during the quarter.
Surface dumps
Indicator
Units
June
2013
March
2013
%
variance
Tonnes
000
879
908
(3)
Grade
g/t
0.39
0.40
(3)
Gold produced
kg
346
363
(5)
Cash operating costs
R/kg
332 601
312 157
(7)
Operating profit
R’000
29 538
59 746
(51)
Gold production was 5% lower at 346kg during the quarter. Preference
was given at the plants to the increased ore deliveries from the
underground operations and therefore less capacity was available for
surface dumps.
was given at the plants to the increased ore deliveries from the
underground operations and therefore less capacity was available for
surface dumps.
A R30 million operating profit was recorded during the quarter, much
lower than the March 2013 quarter, due to lower gold production,
a lower gold price received and higher cash operating costs.
lower than the March 2013 quarter, due to lower gold production,
a lower gold price received and higher cash operating costs.
MINERAL RESOURCES AND MINERAL RESERVES
AS AT 30 JUNE 2013
AS AT 30 JUNE 2013
Harmony’s statement of Mineral Resources and Mineral Reserves as at
30 June 2013 is produced in accordance with the South African Code
for the Reporting of Mineral Resources and Mineral Reserves (SAMREC
Code) and the Australian Code (JORC Code). The Mineral Resources are
reported inclusive of the Mineral Reserves.
30 June 2013 is produced in accordance with the South African Code
for the Reporting of Mineral Resources and Mineral Reserves (SAMREC
Code) and the Australian Code (JORC Code). The Mineral Resources are
reported inclusive of the Mineral Reserves.
The Company’s attributable gold equivalent Mineral Resources are
declared as 147.7 million ounces (Moz) as at 30 June 2013, a 1.7%
decrease year-on-year from the 150.2Moz declared on 30 June 2012.
The 1.7% decrease collectively represents mined Resources during the
year, together with some geology changes. The gold Resource ounces in
South Africa represent 72%, while Papua New Guinea (PNG) gold and
gold equivalent ounces represent 28% of Harmony’s total Resources as
at 30 June 2013.
declared as 147.7 million ounces (Moz) as at 30 June 2013, a 1.7%
decrease year-on-year from the 150.2Moz declared on 30 June 2012.
The 1.7% decrease collectively represents mined Resources during the
year, together with some geology changes. The gold Resource ounces in
South Africa represent 72%, while Papua New Guinea (PNG) gold and
gold equivalent ounces represent 28% of Harmony’s total Resources as
at 30 June 2013.
As at 30 June 2013, Harmony’s Mineral Reserves amounted to 51.5Moz
of gold, a 2.8% decrease from the 52.9Moz declared on 30 June 2012.
The 2.8% decrease collectively represents mined Reserves during the
year, change in surface sources Reserves, together with some scope
changes. The gold Reserve ounces in South Africa represent 58% while
PNG gold and gold equivalent ounces represent 42% of Harmony’s total
Reserves as at 30 June 2013.
of gold, a 2.8% decrease from the 52.9Moz declared on 30 June 2012.
The 2.8% decrease collectively represents mined Reserves during the
year, change in surface sources Reserves, together with some scope
changes. The gold Reserve ounces in South Africa represent 58% while
PNG gold and gold equivalent ounces represent 42% of Harmony’s total
Reserves as at 30 June 2013.
There were no changes in the Reserves and Resources of Wafi-Golpu
(jointly held by Harmony and Newcrest Mining Limited in a 50/50 joint
venture) since the pre-feasibility study was completed in 2012 (refer
Figure 1 below). On a 100% basis, Golpu continues to host a high grade,
quality reserve of 450Mt, containing 12.4Moz of gold and 5.4 million
tonnes (Mt) of copper (38.9Moz on a gold equivalent* basis).
(jointly held by Harmony and Newcrest Mining Limited in a 50/50 joint
venture) since the pre-feasibility study was completed in 2012 (refer
Figure 1 below). On a 100% basis, Golpu continues to host a high grade,
quality reserve of 450Mt, containing 12.4Moz of gold and 5.4 million
tonnes (Mt) of copper (38.9Moz on a gold equivalent* basis).
The company’s detailed Resources and Reserves declaration will be
published in the FY13 Annual Report, which will be made available to
shareholders towards the end of October 2013.
published in the FY13 Annual Report, which will be made available to
shareholders towards the end of October 2013.
Figure 1. Geographical distribution of Mineral Resources and Mineral
Reserves as at 30 June 2013
Reserves as at 30 June 2013
Gold resources including gold
Gold reserves including gold
equivalent* (30 June 2013)
equivalent* (30 June 2013)
South Africa
72%
South Africa
58%
PNG
28%
PNG
42%
*
30 June 2013 Gold equivalent based on US$1 400/oz Au, US$3.10/lb Cu and US$23.00/oz
Ag at 100% recovery for all metals
In converting the Mineral Resources to Mineral Reserves the following
parameters were applied:
parameters were applied:
• a gold price of R400 000/kg;
• the Hidden Valley operations and Wafi-Golpu project in the Morobe
Mining Joint Venture used prices of US$1 250/oz Au, US$21/oz Ag,
US$15/lb Mo and US$3.10/lb Cu. For Wafi-Golpu, gold equivalent
ounces are calculated assuming a US$1 400/oz Au and US$3.10/lb
Cu and for Hidden Valley US$23.00/oz Ag was assumed with 100%
recovery for all metals.
Mining Joint Venture used prices of US$1 250/oz Au, US$21/oz Ag,
US$15/lb Mo and US$3.10/lb Cu. For Wafi-Golpu, gold equivalent
ounces are calculated assuming a US$1 400/oz Au and US$3.10/lb
Cu and for Hidden Valley US$23.00/oz Ag was assumed with 100%
recovery for all metals.
Harmony’s South African Resources to Reserves conversion process as
well as four operations Target 1, Masimong, Kalgold and the Phoenix
Project were reviewed and audited by SRK Consulting Engineers and
Scientists for compliance with the South African Code for Reporting
Mineral Resources and Mineral Reserves – SAMREC Code and
Sarbanes-Oxley requirements. Harmony’s Papua New Guinea Mineral
Resources and Mineral Reserves have been independently reviewed by
AMC Consultants Pty Ltd for compliance with the standards set out
in the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves – The JORC Code.
well as four operations Target 1, Masimong, Kalgold and the Phoenix
Project were reviewed and audited by SRK Consulting Engineers and
Scientists for compliance with the South African Code for Reporting
Mineral Resources and Mineral Reserves – SAMREC Code and
Sarbanes-Oxley requirements. Harmony’s Papua New Guinea Mineral
Resources and Mineral Reserves have been independently reviewed by
AMC Consultants Pty Ltd for compliance with the standards set out
in the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves – The JORC Code.
The company’s detailed Resources and Reserves declaration will be
published in the FY13 Annual Report, which will be made available to
shareholders towards the end of October 2013. We use certain terms in
this document such as ‘Measured’, ‘Indicated’ and ‘Inferred’ Resources,
which the United States (US) Securities and Exchange Commission (SEC)
guidelines strictly prohibit US-registered companies from including in
their filings with the SEC. US investors are urged to closely consider the
disclosure in our Form 20-F.
published in the FY13 Annual Report, which will be made available to
shareholders towards the end of October 2013. We use certain terms in
this document such as ‘Measured’, ‘Indicated’ and ‘Inferred’ Resources,
which the United States (US) Securities and Exchange Commission (SEC)
guidelines strictly prohibit US-registered companies from including in
their filings with the SEC. US investors are urged to closely consider the
disclosure in our Form 20-F.
Note: Au= gold; Cu = copper; Ag = Silver
10
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
MINERAL RESOURCES STATEMENT
The following tables summarise the Mineral Resources for the
South African and Papua New Guinea operations and projects:
South African and Papua New Guinea operations and projects:
SA underground operations
Tonnes
(Mt)
g/t
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Measured
97.0
8.23
799
25 684
Indicated
98.2
8.33
818
26 296
Inferred
190.7
7.07
1 348
43 337
Total
385.9
7.68
2 965
95 317
SA surface operations
Tonnes
(Mt)
g/t
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Measured
382.3
0.30
116
3 743
Indicated
680.6
0.25
172
5 518
Inferred
107.6
0.64
68
2 205
Total
1 170.5
0.30
356
11 466
South Africa total
Tonnes
(Mt)
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Measured
479.3
915
29 427
Indicated
778.8
990
31 814
Inferred
298.3
1 416
45 542
Total
1 556.4
3 321
106 783
Papua New Guinea
Hidden Valley operations
Tonnes
(Mt)
*
g/t
Gold
(‘000 Kg)
*
Gold
(‘000 Oz)
*
Equity
Gold
(‘000 Oz)
**
Measured
1.4
1.17
2
52
26
Indicated
118.6
1.49
176
5 676
2 838
Inferred
7.0
1.13
8
254
127
Total
127.0
1.46
186
5 982
2 991
Wafi-Golpu system
Tonnes
(Mt)
*
g/t
Gold
(‘000 Kg)
*
Gold
(‘000 Oz)
*
Equity
Gold
(‘000 Oz)
**
Measured
–
–
–
–
–
Indicated
923.5
0.77
714
22 958
11 479
Inferred
252.5
0.70
177
5 686
2 843
Total
1 176.0
0.76
891
28 644
14 322
* Represents Harmony/Newcrest joint venture 100% portion
** Represents Harmony’s 50% portion
Equivalent gold ounces
Hidden Valley operations
Equivalent Gold
(‘000 Oz)
*
Equity Equivalent
Gold
(‘000 Oz)
**
Measured
66
33
Indicated
7 436
3 718
Inferred
352
176
Total
7 854
3 927
Wafi-Golpu system
Equivalent Gold
(‘000 Oz)
*
Equity Equivalent
Gold
(‘000 Oz)
**
Measured
–
–
Indicated
60 048
30 024
Inferred
13 914
6 957
Total
73 962
36 981
* Represents Harmony/Newcrest joint venture 100% portion – gold, silver and copper
** Represents Harmony’s 50% portion – gold, silver and copper
In addition to the gold Resources, Harmony also reports on silver, copper
and molybdenum from its PNG operations.
and molybdenum from its PNG operations.
Silver
Tonnes
(Mt)
*
g/t
Ag
(‘000 Kg)
*
Ag
(‘000 Oz)
**
Equity
Silver
(‘000 Oz)
**
Measured
1.3
19.1
26
816
408
Indicated
922.3
4.3
3 979
127 942
63 971
Inferred
236.6
2.0
484
15 556
7 778
Total
1 160.2
3.9
4 489
144 314
72 157
Copper
Tonnes
(Mt)
*
%
Cu
(‘000 t)
*
Cu
(M lbs)
*
Equity
Copper
(M lbs)
**
Measured
–
–
–
–
–
Indicated
810.0
0.92
7 492
16 517
8 258
Inferred
229.8
0.70
1 608
3 544
1 772
Total
1 039.8
0.88
9 100
20 061
10 030
Molybdenum
Tonnes
(Mt)
*
ppm
Mo
(‘000 t)
*
Mo
(M lbs)
*
Equity
Molybdenum
(M lbs)
**
Measured
–
–
–
–
–
Indicated
810.0
100
81
179
90
Inferred
190.0
75
14
31
15
Total
1 000.0
96
95
211
105
* Represents Harmony/Newcrest joint venture 100% portion
** Represents Harmony’s 50% portion
11
Papua New Guinea including gold equivalents**
Tonnes
(Mt)
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Measured
0.7
1
33
Indicated
521.1
1 049
33 742
Inferred
129.7
222
7 133
Total
651.5
1 272
40 908
** Represents Harmony’s 50% portion
Total Harmony including gold equivalents**
Tonnes
(Mt)
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Measured
480.1
916
29 460
Indicated
1 299.8
2 039
65 556
Inferred
428.0
1 638
52 675
Total
2 207.9
4 593
147 691
** Represents SA Total and Harmony’s 50% portion from PNG
Mineral Resources reconciliation: FY12 to FY13
Q
Gold equivalents
Q Gold
0
20
40
60
80
100
120
140
160
180
23.7
1.8
0.7
23.7
124.0
126.5
June 2012 –
gold & gold
equivalents
Mined
during
during
FY13
Geology
changes
changes
June 2013 –
gold & gold
equivalents
Moz
Gold Equivalent Mineral Resources Reconciliation – FY12 to FY13
Gold
(tonnes)
Gold
(Moz)
June 2012 – gold and gold equivalents
4 672
150.2
Reductions
Mined during FY13
(56)
(1.8)
Geology changes
(22)
(0.7)
June 2013 – gold and gold equivalents
4 594
147.7
MINERAL RESERVES STATEMENT
The following tables show the Mineral Reserves for the South African
and Papua New Guinea operations and projects:
and Papua New Guinea operations and projects:
SA underground operations
Tonnes
(Mt)
g/t
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Proved
53.6
5.93
318
10 223
Probable
66.8
5.83
390
12 531
Total
120.4
5.87
708
22 754
SA surface operations
Tonnes
(Mt)
g/t
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Proved
371.6
0.30
110
3 554
Probable
393.9
0.27
107
3 439
Total
765.5
0.28
217
6 993
South Africa total
Tonnes
(Mt)
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Proved
425.3
428
13 777
Probable
460.7
497
15 970
Total
886.0
925
29 747
Papua New Guinea*
Hidden Valley operations
Tonnes
(Mt)
*
g/t
Gold
(‘000 Kg)
*
Gold
(‘000 Oz)
*
Equity
Gold
(‘000 Oz)
**
Proved
1.3
1.23
2
52
26
Probable
62.4
1.74
108
3 486
1 743
Total
63.7
1.73
110
3 538
1 769
Wafi-Golpu system
Tonnes
(Mt)
*
g/t
Gold
(‘000 Kg)
*
Gold
(‘000 Oz)
*
Equity
Gold
(‘000 Oz)
**
Proved
–
–
–
–
–
Probable
450.0
0.86
385
12 388
6 194
Total
450.0
0.86
385
12 388
6 194
* Represents Harmony/Newcrest joint venture 100% portion
** Represents Harmony’s 50% portion
Equivalent gold ounces
Hidden Valley operations
Equivalent Gold
(‘000 Oz)*
Equity Equivalent
Gold
(‘000 Oz)**
Proved
66
33
Probable
4 456
2 228
Total
4 522
2 261
12
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
Golpu
Equivalent Gold
(‘000 Oz)*
Equity Equivalent
Gold
(‘000 Oz)**
Proved
–
–
Probable
38 918
19 459
Total
38 918
19 459
* Represents Harmony/Newcrest joint venture 100% portion – gold, silver and copper
** Represents Harmony’s 50% portion – gold, silver and copper
In addition to the gold Reserves, Harmony also reports on silver, copper
and molybdenum from its PNG operations.
and molybdenum from its PNG operations.
Silver
Tonnes
(Mt)
*
g/t
Ag
(‘000 Kg)
*
Ag
(‘000 Oz)
**
Equity
Silver
(‘000 Oz)
**
Proved
1.3
20.4
25
818
409
Probable
507.8
4.8
2 450
78 758
39 379
Total
509.1
4.9
2 475
79 576
39 788
Copper
Tonnes
(Mt)
*
%
Cu
(‘000 t)
*
Cu
(M lbs)
*
Equity
Copper
(M lbs)
**
Proved
–
–
–
–
–
Probable
450.0
1.21
5 436
11 984
5 992
Total
450.0
1.21
5 436
11 984
5 992
Molybdenum
Tonnes
(Mt)
*
ppm
Mo
(‘000 t)
*
Mo
(M lbs)
*
Equity
Molybdenum
(M lbs)
**
Proved
–
–
–
–
–
Probable
450.0
81
36
80
40
Total
450.0
81
36
80
40
* Represents Harmony/Newcrest joint venture 100% portion
** Represents Harmony’s 50% portion
Papua New Guinea including gold equivalents**
Tonnes
(Mt)
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Proved
0.6
1
33
Probable
256.2
675
21 686
Total
256.8
676
21 719
** Represents Harmony’s 50% portion
Harmony Group including gold equivalents **
Tonnes
(Mt)
Gold
(‘000 Kg)
Gold
(‘000 Oz)
Proved
425.9
430
13 809
Probable
716.9
1 171
37 657
Total
1 142.8
1 601
51 466
** Represents SA Total and Harmony’s 50% portion from PNG
Mineral Reserves reconciliation: FY12 to FY13
Underground:
22.8Moz @ 5.87 g/t
PNG:
7.9Moz @ 0.96 g/t
SA surface:
7Moz @ 0.28 g/t
•
Gold equivalents
•
Gold
1.5
0.8
0.9
June
2012
Mined
during
during
FY13
Surface
Sources
Scope
changes
June
2013
Moz
0
10
20
30
40
50
60
13.8
13.8
37.7
39.1
Gold Equivalent Mineral Reserves Reconciliation – FY12 to FY13
Gold
(tonnes)
Gold
(Moz)
June 2012 – gold and gold equivalents
1 645
52.9
Reductions
Mined during FY13
(46)
(1.5)
Surface Sources
(25)
(0.8)
Increase
Scope changes
28
0.9
June 2013 – gold and gold equivalents
1 602
51.5
13
Exploration highlights
INTERNATIONAL (PAPUA NEW GUINEA)
Morobe Mining Joint Venture (MMJV) (50% Harmony)
Wafi-Golpu
Remodelling and future of the Wafi-Golpu project
Further to what is said in the chief executive’s review about this project
on page 4, the Golpu and Wafi deposit remodelling incorporating
the latest ore body data has been completed. This scope included the
estimation of metallurgical recovery for all processing options available
which are dependent on oxidation, rock-type and metal grades.
on page 4, the Golpu and Wafi deposit remodelling incorporating
the latest ore body data has been completed. This scope included the
estimation of metallurgical recovery for all processing options available
which are dependent on oxidation, rock-type and metal grades.
During the quarter a total of 12 237.7m were drilled. The rig fleet has
decreased from 7 to 5 rigs during the month in preparation for the plan
of 4 rigs operating on the project in FY14. Another drill rig will be
demobbed by the end of the first week of July. Two rigs are currently
assigned to the Golpu Resource Definition program, 2 rigs currently
assigned to brownfields exploration and 1 rig is completing the final
decline path geotechnical hole, after which it will be demobbed.
decreased from 7 to 5 rigs during the month in preparation for the plan
of 4 rigs operating on the project in FY14. Another drill rig will be
demobbed by the end of the first week of July. Two rigs are currently
assigned to the Golpu Resource Definition program, 2 rigs currently
assigned to brownfields exploration and 1 rig is completing the final
decline path geotechnical hole, after which it will be demobbed.
Drilling in the June 2013 quarter targeted the Golpu Upper Mine Zone
volume which demonstrated grade continuity and extended porphyry
volume which demonstrated grade continuity and extended porphyry
content in the south western quadrant, between Golpu and Golpu
West. Intercepts include:
West. Intercepts include:
•
WR459
615.8m @ 0.57g/t Au, 0.54% Cu from 490m
•
WR464
546m @ 0.43g/t Au, 0.84% Cu from 224m
•
WR474
752m @ 0.48g/t Au, 0.91% Cu from 118m
•
WR475
1 014m @ 0.34g/t Au, 0.68% Cu from 274m
•
WR476
566m @ 0.70g/t Au, 1.37% Cu from 548m
•
WR479^
1 084m @ 0.71g/t Au, 1.31% Cu from 114m
•
WR481
646m @ 0.53g/t Au, 0.81% Cu from 125m
•WR484^
504m @ 0.48g/t Au, 1.15% Cu from 179m
^ Partial result reported
Since the Golpu Mineral Resource in June 2012, the majority of drilling
has been focussed in the upper mineralised zone with 20 holes for
22 194m. This program has extended high grade mineralisation 50m to
the north and demonstrated high grade continuity of multiple porphyry
intercepts enabling the northern porphyry shape to be defined a single
north-south trending intrusive complex.
has been focussed in the upper mineralised zone with 20 holes for
22 194m. This program has extended high grade mineralisation 50m to
the north and demonstrated high grade continuity of multiple porphyry
intercepts enabling the northern porphyry shape to be defined a single
north-south trending intrusive complex.
The results of the combined drilling indicate increased gold and copper
grades immediately above the Reid Fault in the vicinity of the Upper
Mine Zone (Lift 1 PFS volume). The drill spacing in this area is now
approximately 100m, enabling detailed geological interpretations and
modelling.
grades immediately above the Reid Fault in the vicinity of the Upper
Mine Zone (Lift 1 PFS volume). The drill spacing in this area is now
approximately 100m, enabling detailed geological interpretations and
modelling.
June 2013 Quarter intercepts in the lower mineralised volume include:
• WR472W_1
1 240m @ 0.43 g/t Au, 0.55% Cu from 1 008m
WR472W_1 was completed to 2 250.1m, the deepest hole drilled
to date at Golpu. The hole demonstrated continuity of porphyry and
associated mineralisation throughout the PFS lift 2/3 volumes and
beyond to the 3450mRL, 150m deeper than any previous drilling.
to date at Golpu. The hole demonstrated continuity of porphyry and
associated mineralisation throughout the PFS lift 2/3 volumes and
beyond to the 3450mRL, 150m deeper than any previous drilling.
Since the Golpu June 2012 Mineral Resource update 4 holes for 8 107m
have been drilled targeting the lower mineralised volume below the
Reid Fault. The holes demonstrate vertical continuity of porphyry and
associated mineralisation at depth. Mineralisation remains open below
the Lower Mine Zone (PFS lift 3 volume).
Brownfields drilling continued in two areas testing shallow epithermal
high grade gold targets around the defined diatreme margin and
porphyry copper-gold mineralisation at the Miapili prospect, 600m NE
of Golpu.
Figure 1. Figure showing the Upper Mine intercepts Results
14
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
The mineralisation style in WR483 is similar to previous Northern Zone holes WR392, WR397 and WR426. Mineralisation is quartz-carbonate-pyrite
veining in strongly argillic altered sediment. The intercepts are 100m north and 100m west of WR392 and WR426.
veining in strongly argillic altered sediment. The intercepts are 100m north and 100m west of WR392 and WR426.
Brownfields exploration assay results this quarter from the Northern
Zone epithermal prospect returned multiple high grade gold intercepts
from WR483:
Zone epithermal prospect returned multiple high grade gold intercepts
from WR483:
WR483
12m @ 1.12g/t Au from 98m
WR483
32m @ 3.16 g/t Au from 272m
WR483
20m @ 7.38 g/t Au from 320m
WR483
22m @ 4.83 g/t Au from 364m
The Northern Zone appears to be a Wafi Link Zone analogue with
similar 30° – 35° east dipping orientation. Based on the current four
similar 30° – 35° east dipping orientation. Based on the current four
intercepts, Northern Zone has dimensions of at least 100m (east-west)
and 200m (north-south) and remains open to the north. As with Link
Zone, Northern Zone exhibits multiple high grade intercepts within a
broad gold zone.
and 200m (north-south) and remains open to the north. As with Link
Zone, Northern Zone exhibits multiple high grade intercepts within a
broad gold zone.
Drilling at Miapili is underway to test for porphyry copper-gold
mineralisation to the west and below WR315 (534m @ 0.34 g/t Au and
0.08% Cu). Assays are not yet available.
mineralisation to the west and below WR315 (534m @ 0.34 g/t Au and
0.08% Cu). Assays are not yet available.
The intersection of porphyry mineralisation in this hole would extend
the Golpu northwesterly trend and currently represents the highest
potential for a new porphyry discovery within the Wafi Golpu project.
the Golpu northwesterly trend and currently represents the highest
potential for a new porphyry discovery within the Wafi Golpu project.
Figure 2. Figure showing the Upper and Lower Mine intercepts from the June 2013 quarter
Figure 3. New gold intersections in the Northern Zone indicate a potential high grade Link Zone like structure
15
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
Q4 FY13
Results for the
fourth quarter and year
ended 30 June 2013
(Rand)
16
17
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
Operating results
(Rand/Metric) (US$/Imperial)
Three
months
Ended
months
Ended
South Africa
Hidden
Valley
Harmony
Total
Underground production
Surface production
Total
South Africa
Kusasalethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1
Bambanani
Joel
Unisel
Target 3
Steyn 2
Total
Under-
ground
Phoenix
Dumps
Kalgold
Total
Surface
Ore milled
– t’000
Jun-13
212
242
133
211
210
179
55
151
114
73
12
1 592
1 471
879
367
2 717
4 309
457
4 766
Mar-13
33
249
109
262
181
182
34
139
99
81
12
1 381
1 325
908
332
2 565
3 946
440
4 386
Gold produced
– kg
Jun-13
688
859
583
815
839
897
614
699
427
419
121
6 961
202
346
357
905
7 866
722
8 588
Mar-13
49
897
484
1 029
799
913
298
779
424
409
139
6 220
216
363
309
888
7 108
591
7 699
Gold produced
– oz
Jun-13
22 120
27 617
18 744
26 203
26 974
28 839
19 741
22 473
13 728
13 471
3 890
223 800
6 494
11 124
11 478
29 096
252 896
23 213
276 109
Mar-13
1 575
28 839
15 561
33 083
25 688
29 354
9 581
25 045
13 632
13 150
4 469
199 977
6 945
11 671
9 935
28 551
228 528
19 001
247 529
Yield –
g/tonne
Jun-13
3.25
3.55
4.38
3.86
4.00
5.01
11.16
4.63
3.75
5.74
10.08
4.37
0.14
0.39
0.97
0.33
1.83
1.58
1.80
Mar-13
1.48
3.60
4.44
3.93
4.41
5.02
8.76
5.60
4.28
5.05
11.58
4.50
0.16
0.40
0.93
0.35
1.80
1.34
1.76
Cash operating
costs
costs
– R/kg
Jun-13
577 337
332 516
444 168
418 310
289 795
281 223
201 467
243 308
331 747
297 759
257 736
340 394
317 396
332 601
320 417
324 401
338 554
487 898
351 109
Mar-13
6 564 347
295 429
505 324
340 586
287 596
248 585
388 477
207 107
318 934
308 220
228 295
355 075
254 986
312 157
354 346
312 931
349 810
515 012
362 491
Cash operating
costs
costs
– $/oz
Jun-13
1 900
1 094
1 462
1 377
954
926
663
801
1 092
980
848
1 120
1 045
1 095
1 054
1 068
1 114
1 606
1 156
Mar-13
22 891
1 030
1 762
1 187
1 003
867
1 354
722
1 112
1 075
796
1 238
889
1 088
1 235
1 091
1 220
1 795
1 264
Cash operating
costs
costs
– R/tonne
Jun-13
1 874
1 180
1 947
1 616
1 158
1 409
2 249
1 126
1 243
1 709
2 599
1 488
44
131
312
108
618
771
633
Mar-13
9 747
1 064
2 244
1 338
1 270
1 247
3 405
1 161
1 366
1 556
2 644
1 599
42
125
330
108
630
692
636
Gold sold
– Kg
Jun-13
427
793
568
793
816
934
597
700
415
436
118
6 597
205
358
301
864
7 461
685
8 146
Mar-13
129
839
470
1 000
777
865
290
703
412
388
135
6 008
210
360
329
899
6 907
599
7 506
Gold sold
– oz
Jun-13
13 728
25 496
18 262
25 496
26 235
30 029
19 194
22 505
13 343
14 018
3 794
212 100
6 591
11 510
9 677
27 778
239 878
22 023
261 901
Mar-13
4 147
26 974
15 111
32 151
24 981
27 810
9 324
22 602
13 246
12 474
4 340
193 160
6 752
11 574
10 578
28 904
222 064
19 258
241 322
Revenue (R’000)
Jun-13
175 728
335 584
243 101
339 801
349 828
409 201
256 002
300 268
178 132
190 917
50 327
2 828 889
86 460
151 774
124 248
362 482
3 191 371
291 325
3 482 696
Mar-13
61 084
393 842
221 319
469 867
365 507
406 147
136 233
330 439
193 643
181 969
63 311
2 823 361
98 617
169 435
154 844
422 896
3 246 257
281 787
3 528 044
Cash operating
costs
costs
(R’000)
Jun-13
397 208
285 631
258 950
340 923
243 138
252 257
123 701
170 072
141 656
124 761
31 186
2 369 483
64 114
115 080
114 389
293 583
2 663 066
352 262
3 015 328
Mar-13
321 653
265 000
244 577
350 463
229 789
226 958
115 766
161 336
135 228
126 062
31 733
2 208 565
55 077
113 313
109 493
277 883
2 486 448
304 372
2 790 820
Inventory
movement
movement
(R’000)
Jun-13
(99 945)
(29 205)
(6 908)
(3 191)
(8 033)
9 755
(11 144)
(2 898)
(3 786)
4 827
(727)
(151 255)
(1 659)
7 156
(17 223)
(11 726)
(162 981)
(8 871)
(171 852)
Mar-13
25 111
(21 389)
(5 111)
(12 557)
(9 232)
(16 606)
(3 516)
(17 535)
(4 852)
(9 241)
(1 907)
(76 835)
(1 831)
(3 624)
(108)
(5 563)
(82 398)
(1 661)
(84 059)
Operating costs
(R’000)
Jun-13
297 263
256 426
252 042
337 732
235 105
262 012
112 557
167 174
137 870
129 588
30 459
2 218 228
62 455
122 236
97 166
281 857
2 500 085
343 391
2 843 476
Mar-13
346 764
243 611
239 466
337 906
220 557
210 352
112 250
143 801
130 376
116 821
29 826
2 131 730
53 246
109 689
109 385
272 320
2 404 050
302 711
2 706 761
Operating profit
(R’000)
Jun-13
(121 535)
79 158
(8 941)
2 069
114 723
147 189
143 445
133 094
40 262
61 329
19 868
610 661
24 005
29 538
27 082
80 625
691 286
(52 066)
639 220
Mar-13
(285 680)
150 231
(18 147)
131 961
144 950
195 795
23 983
186 638
63 267
65 148
33 485
691 631
45 371
59 746
45 459
150 576
842 207
(20 924)
821 283
Operating profit
($’000)
Jun-13
(12 861)
8 376
(946)
219
12 139
15 574
15 178
14 084
4 261
6 489
2 102
64 615
2 541
3 126
2 866
8 533
73 148
(5 508)
67 640
Mar-13
(32 021)
16 838
(2 034)
14 792
16 247
21 946
2 687
20 919
7 091
7 302
3 754
77 521
5 086
6 696
5 095
16 877
94 398
(2 346)
92 052
Capital
expenditure
expenditure
(R’000)
Jun-13
147 930
63 733
95 553
83 853
46 164
69 279
26 381
43 495
20 999
41 158
921
639 466
12 746
1 865
12 369
26 980
666 446
137 986
804 432
Mar-13
55 038
70 686
84 169
78 011
44 020
73 877
20 937
37 419
21 442
35 551
847
521 997
19 068
2 360
1 426
22 854
544 851
132 378
677 229
Capital
expenditure
expenditure
($’000)
Jun-13
15 653
6 744
10 111
8 873
4 885
7 331
2 791
4 602
2 222
4 355
97
67 664
1 349
197
1 309
2 855
70 519
14 601
85 120
Mar-13
6 169
7 923
9 434
8 744
4 934
8 281
2 347
4 194
2 403
3 985
95
58 509
2 137
264
160
2 561
61 070
14 838
75 908
18
19
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
Operating results – Year on Year
(Rand/Metric) (US$/Imperial)
Year
Ended
Ended
South Africa
Hidden
Valley
Total
Continuing
Operations
Underground production
Surface production
Other
Total
South
Africa
Africa
Kusasalethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1
Bambanani
Joel
Unisel
Target 3
Steyn 2
Total
Under-
ground
Phoenix
Dumps
Kalgold
Total
Surface
Ore milled
– t’000
Jun-13
711
1 008
512
1 040
868
717
164
611
446
323
47
6 447
5 358
3 326
1 398
10 082
–
16 529
1 844
18 373
Jun-12
1 197
928
521
1 233
933
788
159
557
394
316
38
7 064
4 996
2 986
1 342
9 324
–
16 388
1 766
18 154
Gold produced
– kg
Jun-13
2 740
3 631
2 434
4 154
3 616
3 967
1 606
3 228
1 813
1 626
477
29 292
827
1 279
1 332
3 438
–
32 730
2 644
35 374
Jun-12
5 633
3 075
2 541
5 287
3 220
3 630
1 044
2 663
1 593
1 123
330
30 139
822
1 509
1 041
3 372
–
33 511
2 762
36 273
Gold produced
– oz
Jun-13
88 093
116 738
78 255
133 554
116 256
127 542
51 635
103 782
58 289
52 277
15 335
941 756
26 588
41 121
42 825
110 534
–
1 052 290
85 007
1 137 297
Jun-12
181 105
98 863
81 695
169 980
103 526
116 708
33 565
85 618
51 216
36 106
10 609
968 991
26 428
48 515
33 469
108 412
–
1 077 403
88 800
1 166 203
Yield –
g/tonne
Jun-13
3.85
3.60
4.75
3.99
4.17
5.53
9.79
5.28
4.07
5.03
10.15
4.54
0.15
0.38
0.95
0.34
–
1.98
1.43
1.93
Jun-12
4.71
3.31
4.88
4.29
3.45
4.61
6.57
4.78
4.04
3.55
7.74
4.26
0.16
0.51
0.78
0.36
–
2.04
1.56
2.00
Cash operating
costs
costs
– R/kg
Jun-13
553 358
296 714
405 077
343 895
272 403
238 840
292 136
206 737
315 136
316 547
286 067
317 478
279 615
337 428
303 729
310 465
–
316 742
456 803
327 210
Jun-12
261 167
285 269
319 317
243 087
263 900
234 625
470 696
208 807
312 957
380 267
359 415
273 232
241 309
247 510
293 658
260 245
–
271 923
309 230
274 767
Cash operating
costs
costs
– $/oz
Jun-13
1 951
1 046
1 428
1 212
960
842
1 030
729
1 111
1 116
1 009
1 119
986
1 190
1 071
1 095
–
1 117
1 611
1 154
Jun-12
1 046
1 142
1 279
973
1 057
940
1 885
836
1 253
1 523
1 439
1 094
966
991
1 176
1 042
–
1 089
1 238
1 100
Cash operating
costs
costs
– R/tonne
Jun-13
2 132
1 069
1 926
1 374
1 135
1 321
2 861
1 092
1 281
1 594
2 903
1 442
43
130
289
106
–
627
655
630
Jun-12
1 229
945
1 557
1 042
911
1 081
3 091
998
1 265
1 351
2 781
1 164
40
125
228
94
–
555
484
548
Gold sold
– Kg
Jun-13
2 698
3 550
2 423
4 135
3 598
3 925
1 591
3 192
1 804
1 613
473
29 002
805
1 278
1 263
3 346
–
32 348
2 622
34 970
Jun-12
5 559
3 049
2 528
5 262
3 203
3 645
1 039
2 679
1 588
1 129
329
30 010
832
1 516
1 046
3 394
–
33 404
2 778
36 182
Gold sold
– oz
Jun-13
86 742
114 135
77 902
132 944
115 679
126 191
51 152
102 625
58 000
51 859
15 207
932 436
25 882
41 088
40 607
107 577
–
1 040 013
84 299
1 124 312
Jun-12
178 726
98 027
81 277
169 177
102 979
117 189
33 405
86 132
51 055
36 298
10 578
964 843
26 749
48 740
33 630
109 119
–
1 073 962
89 315
1 163 277
Revenue (R’000)
Jun-13
1 212 834
1 615 027
1 102 618
1 886 777
1 639 903
1 794 310
717 434
1 451 977
824 716
737 285
215 105
13 197 986
365 212
578 805
570 694
1 514 711
– 14 712 697
1 189 031
15 901 728
Jun-12
2 319 867
1 283 708
1 063 753
2 218 684
1 348 804
1 525 478
424 105
1 124 316
671 513
472 245
125 415
12 577 888
349 054
636 715
442 203
1 427 972
– 14 005 860
1 163 444
15 169 304
Cash operating
costs
costs
(R’000)
Jun-13
1 516 201
1 077 368
985 957
1 428 541
985 011
947 479
469 171
667 347
571 341
514 705
136 454
9 299 575
231 242
431 570
404 567
1 067 379
– 10 366 954
1 207 788
11 574 742
Jun-12
1 471 151
877 201
811 384
1 285 200
849 759
851 689
491 407
556 053
498 541
427 040
105 668
8 225 093
198 356
373 492
305 698
877 546
–
9 102 639
854 093
9 956 732
Inventory
movement
movement
(R’000)
Jun-13
(32 663)
(35 084)
(3 626)
(1 514)
(10 316)
(10 387)
(13 307)
(13 356)
(4 018)
(6 242)
(1 552)
(132 065)
(6 306)
(4 707)
(27 909)
(38 922)
–
(170 987)
(4 079)
(175 066)
Jun-12
(32 228)
(14 915)
(8 728)
(9 835)
(6 364)
2 952
2 033
9 389
(4 483)
1 107
(1 715)
(62 787)
3 443
11 109
5 018
19 570
–
(43 217)
(2 835)
(46 052)
Operating costs
(R’000)
Jun-13
1 483 538
1 042 284
982 331
1 427 027
974 695
937 092
455 864
653 991
567 323
508 463
134 902
9 167 510
224 936
426 863
376 658
1 028 457
– 10 195 967
1 203 709
11 399 676
Jun-12
1 438 923
862 286
802 656
1 275 365
843 395
854 641
493 440
565 442
494 058
428 147
103 953
8 162 306
201 799
384 601
310 716
897 116
–
9 059 422
851 258
9 910 680
Operating profit
(R’000)
Jun-13
(270 704)
572 743
120 287
459 750
665 208
857 218
261 570
797 986
257 393
228 822
80 203
4 030 476
140 276
151 942
194 036
486 254
–
4 516 730
(14 678)
4 502 052
Jun-12
880 944
421 422
261 097
943 319
505 409
670 837
(69 335)
558 874
177 455
44 098
21 462
4 415 582
147 255
252 114
131 487
530 856
–
4 946 438
312 186
5 258 624
Operating profit
($’000)
Jun-13
(30 685)
64 922
13 635
52 113
75 402
97 167
29 649
90 453
29 176
25 938
9 092
456 862
15 900
17 224
21 995
55 119
–
511 981
(1 664)
510 317
Jun-12
113 417
54 256
33 615
121 447
65 069
86 366
(8 927)
71 952
22 846
5 677
2 764
568 482
18 959
32 459
16 928
68 346
–
636 828
40 192
677 020
Capital
expenditure
expenditure
(R’000)
Jun-13
419 566
285 427
337 462
310 494
170 610
331 010
115 390
159 682
77 930
145 073
3 830
2 356 474
156 064
14 744
52 470
223 278
26 544
2 606 296
505 888
3 112 184
Jun-12
415 444
293 708
302 342
287 921
207 941
258 570
185 655
84 056
71 068
89 535
80 414
2 276 654
29 517
23 884
76 403
129 804
31 540
2 437 998
296 463
2 734 461
Capital
expenditure
expenditure
($’000)
Jun-13
47 559
32 354
38 252
35 195
19 339
37 521
13 080
18 100
8 833
16 444
434
267 111
17 690
1 671
5 948
25 309
3 009
295 429
57 343
352 772
Jun-12
53 486
37 813
38 925
37 068
26 771
33 290
23 902
10 822
9 150
11 527
10 353
293 107
3 800
3 075
9 836
16 711
4 061
313 879
38 168
352 047
20
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Rand)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2013
2013
2012
2013
2012
Figures in million
Note
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Continuing operations
Revenue
3 483
3 528
3 934
15 902
15 169
Cost of sales
2
(6 173)
(3 283)
(3 325)
(16 468)
(12 137)
Production costs
(2 844)
(2 707)
(2 639)
(11 400)
(9 911)
Amortisation and depreciation
(501)
(459)
(548)
(1 942)
(1 921)
(Impairment)/reversal of impairment of assets
(2 733)
–
60
(2 733)
60
Other items
(95)
(117)
(198)
(393)
(365)
Gross (loss)/profit
(2 690)
245
609
(566)
3 032
Corporate, administration and other expenditure
(127)
(121)
(91)
(465)
(352)
Social investment expenditure
(57)
(25)
(22)
(127)
(72)
Exploration expenditure
(219)
(157)
(161)
(673)
(500)
Profit on sale of property, plant and equipment
4
–
15
34
139
63
Other expenses – net
5
(169)
(138)
(74)
(350)
(50)
Operating (loss)/profit
(3 262)
(181)
295
(2 042)
2 121
Reversal of impairment of investment in associate
–
–
–
–
56
Impairment of investments
6
–
(39)
(144)
(88)
(144)
Net (loss)/gain on financial instruments
(8)
15
12
173
86
Investment income
67
47
33
185
97
Finance cost
(57)
(65)
(69)
(256)
(286)
(Loss)/profit before taxation
(3 260)
(223)
127
(2 028)
1 930
Taxation
(239)
(44)
(200)
(655)
123
Normal taxation
78
(124)
(83)
(271)
(199)
Deferred taxation
7
(317)
80
(117)
(384)
322
Net (loss)/profit from continuing operations
(3 499)
(267)
(73)
(2 683)
2 053
Discontinued operations
Profit from discontinued operations
8
–
143
180
314
592
Net (loss)/profit for the period
(3 499)
(124)
107
(2 369)
2 645
Attributable to:
Owners of the parent
(3 499)
(124)
107
(2 369)
2 645
(Loss)/earnings per ordinary share (cents)
9
(Loss)/earnings from continuing operations
(809)
(62)
(17)
(621)
477
Earnings from discontinued operations
–
33
42
73
137
Total (loss)/earnings
(809)
(29)
25
(548)
614
Diluted (loss)/earnings per ordinary share (cents)
9
(Loss)/earnings from continuing operations
(809)
(62)
(17)
(621)
476
Earnings from discontinued operations
–
33
42
73
136
Total diluted (loss)/earnings
(809)
(29)
25
(548)
612
The accompanying notes are an integral part of these condensed consolidated financial statements.
21
The condensed consolidated provisional financial statements (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 12 months ended 30 June 2013 were reviewed by the group’s
external auditors, PricewaterhouseCoopers Incorporated (see note 18).
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 12 months ended 30 June 2013 were reviewed by the group’s
external auditors, PricewaterhouseCoopers Incorporated (see note 18).
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Rand)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2013
2013
2012
2013
2012
Figures in million
Note
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Net (loss)/profit for the period
(3 499)
(124)
107
(2 369)
2 645
Other comprehensive income for the period,
net of income tax
net of income tax
25
510
606
758
1 587
Foreign exchange translation
26
523
506
749
1 485
Movements on investments
6
(1)
(13)
100
9
102
Total comprehensive (loss)/income for the period
(3 474)
386
713
(1 611)
4 232
Attributable to:
Owners of the parent
(3 474)
386
713
(1 611)
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.
22
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
CONDENSED CONSOLIDATED BALANCE SHEETS
(Rand)
At
At
At
30 June
31 March
30 June
2013
2013
2012
Figures in million
Note
(Unaudited)
(Audited)
ASSETS
Non-current assets
Property, plant and equipment
10
32 820
34 911
32 853
Intangible assets
2 191
2 190
2 196
Restricted cash
37
38
36
Restricted investments
2 054
2 050
1 842
Deferred tax assets
7
104
652
486
Investments
11
153
139
146
Inventories
57
57
58
Trade and other receivables
–
6
28
Total non-current assets
37 416
40 043
37 645
Current assets
Inventories
1 425
1 206
996
Trade and other receivables
1 162
1 482
1 245
Income and mining taxes
132
3
118
Cash and cash equivalents
2 089
3 099
1 773
4 808
5 790
4 132
Assets of disposal groups classified as held for sale
8
–
–
1 423
Total current assets
4 808
5 790
5 555
Total assets
42 224
45 833
43 200
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
28 325
28 331
28 331
Other reserves
3 478
3 392
2 444
Retained earnings
503
4 002
3 307
Total equity
32 306
35 725
34 082
Non-current liabilities
Deferred tax liabilities
3 021
3 244
3 106
Provision for environmental rehabilitation
1 997
1 961
1 865
Retirement benefit obligation
194
188
177
Other provisions
55
48
30
Borrowings
12
2 252
2 238
1 503
Total non-current liabilities
7 519
7 679
6 681
Current liabilities
Borrowings
12
286
287
313
Income and mining taxes
4
92
1
Trade and other payables
2 109
2 050
1 747
2 399
2 429
2 061
Liabilities of disposal groups classified as held for sale
8
–
–
376
Total current liabilities
2 399
2 429
2 437
Total equity and liabilities
42 224
45 833
43 200
The accompanying notes are an integral part of these condensed consolidated financial statements.
23
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Rand)
for the year ended 30 June 2013
Figures in million
Share
capital
Other
reserves
Retained
earnings
Total
Balance – 30 June 2012
28 331
2 444
3 307
34 082
Issue of shares
1
–
–
1
Share-based payments
(7)
274
–
267
Net loss for the period
–
–
(2 369)
(2 369)
Other comprehensive income for the period
–
758
–
758
Option premium on BEE transaction
–
2
–
2
Dividends paid
1
–
–
(435)
(435)
Balance – 30 June 2013
28 325
3 478
503
32 306
Balance – 30 June 2011
28 305
762
1 093
30 160
Issue of shares
26
–
–
26
Share-based payments
–
95
–
95
Net profit for the period
–
–
2 645
2 645
Other comprehensive income for the period
–
1 587
–
1 587
Dividends paid
2
–
–
(431)
(431)
Balance – 30 June 2012
28 331
2 444
3 307
34 082
1. Dividend of 50 SA cents declared on 13 August 2012 and 50 SA cents on 1 February 2013
2. Dividend of 60 SA cents declared on 12 August 2011 and 40 SA cents on 2 February 2012
The statement of changes in equity for the year ended 30 June 2012 has been audited.
The accompanying notes are an integral part of these condensed consolidated financial statements.
24
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Rand)
Quarter ended
Year ended
30 June
31 March
30 June
30 June
30 June
2013
2013
2012
2013
2012
Figures in million
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Cash flow from operating activities
Cash generated by operations
221
204
1 211
3 154
4 551
Interest and dividends received
48
34
20
138
80
Interest paid
(40)
(27)
(38)
(125)
(141)
Income and mining taxes paid
(129)
(70)
(163)
(312)
(277)
Cash generated by operating activities
100
141
1 030
2 855
4 213
Cash flow from investing activities
Restricted cash transferred from disposal group
–
252
–
–
–
Proceeds on disposal of Evander
–
1 264
–
1 264
–
Proceeds on disposal of investment in associate
–
–
29
–
222
Proceeds on disposal of Evander 6 and Twistdraai
–
–
125
–
125
Proceeds on disposal of Merriespruit South
–
–
–
61
–
Purchase of investments
(14)
(33)
–
(86)
–
Other investing activities
(1)
3
(56)
(4)
(85)
Net additions to property, plant and equipment
1
(938)
(835)
(952)
(3 713)
(3 140)
Cash (utilised)/generated by investing activities
(953)
651
(854)
(2 478)
(2 878)
Cash flow from financing activities
Borrowings raised
–
–
342
678
1 443
Borrowings repaid
(156)
(4)
(161)
(333)
(1 248)
Ordinary shares issued – net of expenses
1
–
3
1
26
Option premium on BEE transaction
2
–
–
2
–
Dividends paid
–
(217)
–
(435)
(431)
Cash (utilised)/generated by financing activities
(153)
(221)
184
(87)
(210)
Foreign currency translation adjustments
(4)
17
(14)
26
(45)
Net (decrease)/increase in cash and cash equivalents
(1 010)
588
346
316
1 080
Cash and cash equivalents – beginning of period
3 099
2 511
1 427
1 773
693
Cash and cash equivalents – end of period
2 089
3 099
1 773
2 089
1 773
1. Includes capital expenditure for Wafi-Golpu and other international projects of R133 million in the June 2013 quarter (March 2013: R148 million) (June 2012: R122 million) and
R537 million in the 12 months ended 30 June 2013 (June 2012: R314 million).
The accompanying notes are an integral part of these condensed consolidated financial statements.
25
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2013 (Rand)
1.
Accounting
policies
Basis of accounting
The condensed consolidated provisional financial statements are prepared in accordance with the requirements of the JSE Limited Listings
Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings Requirements require provisional
reports to be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial
Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and contain the information
required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the condensed consolidated provisional
financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.
Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings Requirements require provisional
reports to be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial
Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and contain the information
required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the condensed consolidated provisional
financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.
2.
Cost of sales
Quarter ended
Year ended
Figures in million
30 June
2013
(Unaudited)
31 March
2013
(Unaudited)
30 June
2012
(Unaudited)
30 June
2013
30 June
2012
(Audited)
Production costs – excluding royalty
2 799
2 658
2 623
11 183
9 791
Royalty expense
45
49
16
217
120
Amortisation and depreciation
501
459
548
1 942
1 921
Impairment/(reversal of impairment) of assets
1
2 733
–
(60)
2 733
(60)
Rehabilitation (credit)/expenditure
2
(40)
10
20
(24)
(17)
Care and maintenance cost of restructured shafts
16
16
19
68
88
Employment termination and restructuring costs
3
39
–
11
46
81
Share-based payments
4
45
95
21
266
87
Other
5
35
(4)
127
37
126
Total cost of sales
6 173
3 283
3 325
16 468
12 137
1. The impairment in the June 2013 quarter consists of an impairment of R2.68 billion on Hidden Valley, R31 million on St Helena and R27 million on Steyn 2. The net reversal
in the June 2012 quarter consists mainly of a reversal of R194 million for Target 1 and an impairment of R126 million on Steyn 2. Refer to note 10 for further detail.
2. The credit in the June 2013 quarter relates to a change in estimate following the annual reassessment. The decrease in the 2012 and 2013 years resulted due to the
rehabilitation projects completed in the Free State area during both years.
3. Included in the June 2013 quarter are amounts relating to the restructuring at Hidden Valley and the introduction of voluntary retrenchment packages in South Africa.
The amounts for the 2012 financial year relates to restructuring at the Bambanani shaft.
4. Refer to note 3 for details.
5. Included in the June 2013 quarter are amounts relating to the change in estimate of gold in lock-up and other stockpiles. The June 2012 quarter includes amounts relating
to the change in estimate of gold in lock-up.
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 Scheme 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 Scheme 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 remeasured 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.
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 remeasured 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.
During the March 2013 quarter, the first portion of the Scheme Shares and SARs awarded in August 2012 vested, resulting in all qualifying
employees receiving a minimum value of R1 912 before tax, amounting to a total value of R58 million being distributed in April 2013. During
March 2013, new qualifying employees who have not previously received an offer were awarded 80 Scheme Shares and 160 SARs which will
vest in four equal portions on each anniversary of the award. A total of 97 040 Scheme Shares and 194 080 SARs were issued by the Tlhakanelo
Share Trust for this award.
employees receiving a minimum value of R1 912 before tax, amounting to a total value of R58 million being distributed in April 2013. During
March 2013, new qualifying employees who have not previously received an offer were awarded 80 Scheme Shares and 160 SARs which will
vest in four equal portions on each anniversary of the award. A total of 97 040 Scheme Shares and 194 080 SARs were issued by the Tlhakanelo
Share Trust for this award.
4.
Profit on sale of property, plant and equipment
Included in the amount is the transaction for the sale of the Merriespruit South mining right to Witwatersrand Consolidated Gold Resources
Limited (Wits Gold) that was completed, resulting in a profit of R60 million during the December 2012 quarter.
Limited (Wits Gold) that was completed, resulting in a profit of R60 million during the December 2012 quarter.
26
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
5.
Other expenses – net
(a) Included in the June 2013 quarter is a foreign exchange translation loss of R161 million (March 2013: R150 million) on the US dollar
denominated loan. The effect of foreign exchange changes for the 12 months totals a translation loss of R351 million (June 2012:
R45 million). Refer to note 12 for further details.
R45 million). Refer to note 12 for further details.
(b) On 20 March 2013 Harmony signed transaction and funding agreements to give effect to an empowerment transaction to dispose of 30%
of its Free State based Phoenix tailings operation (Phoenix) to BB-BEE shareholders, which includes a free-carry allocation of 5% to a
Community Trust that has been created and is currently controlled by Harmony. The transaction closed on 25 June 2013, following the
fulfilment of the last condition precedent. In terms of the agreements Phoenix was transferred to a newly incorporated subsidiary
(PhoenixCo). The fair value of the net assets for purposes of the transaction was set at R450 million.
Community Trust that has been created and is currently controlled by Harmony. The transaction closed on 25 June 2013, following the
fulfilment of the last condition precedent. In terms of the agreements Phoenix was transferred to a newly incorporated subsidiary
(PhoenixCo). The fair value of the net assets for purposes of the transaction was set at R450 million.
The awards to the BEE partners have been accounted for as an in-substance option as the BEE partners will only share in the upside of their
equity interest in PhoenixCo until the date the financing provided by Harmony is fully repaid. On this date the options will be exercised. The
award of the options to the BEE partners is accounted for as an equity-settled share based payment arrangement. The in-substance options
carry no vesting conditions and the fair value of the options of R23 million has been expensed on the grant date, 25 June 2013.
equity interest in PhoenixCo until the date the financing provided by Harmony is fully repaid. On this date the options will be exercised. The
award of the options to the BEE partners is accounted for as an equity-settled share based payment arrangement. The in-substance options
carry no vesting conditions and the fair value of the options of R23 million has been expensed on the grant date, 25 June 2013.
6.
Impairment of investments
A decline in the fair value of the investment in Witwatersrand Consolidated Gold Resource Limited (Wits Gold) during the year resulted in an
impairment of R88 million (2012: R144 million) recorded in the income statement.
impairment of R88 million (2012: R144 million) recorded in the income statement.
7.
Deferred taxation
The net deferred taxation debit in the income statement in the June 2013 quarter is primarily due to the derecognition of the deferred tax asset
amounting to R547 million previously recorded for the Hidden Valley operation.
amounting to R547 million previously recorded for the Hidden Valley operation.
The net deferred taxation debit in the income statement in the June 2012 quarter is mainly due to the annual reassessment of the Life-of-Mine
deferred tax rates amounting to R270 million.
deferred tax rates amounting to R270 million.
8.
Disposal groups classified as held for sale and discontinued operations
Evander Gold Mines Limited
Harmony entered into an agreement to sell its 100% interest in Evander Gold Mines Limited (Evander) to a wholly owned subsidiary of
Pan African Resources Plc for R1.5 billion, less certain distributions, during May 2012. The last condition was met on 14 February 2013 and the
transaction was completed on 28 February 2013. In terms of the agreement Harmony received a distribution of R210 million and a purchase
consideration of R1 314 million. A group profit of R102 million was recorded in the March 2013 quarter.
Pan African Resources Plc for R1.5 billion, less certain distributions, during May 2012. The last condition was met on 14 February 2013 and the
transaction was completed on 28 February 2013. In terms of the agreement Harmony received a distribution of R210 million and a purchase
consideration of R1 314 million. A group profit of R102 million was recorded in the March 2013 quarter.
9.
Earnings and net asset value per share
Quarter ended
Year ended
30 June
2013
(Unaudited)
31 March
2013
(Unaudited)
30 June
2012
(Unaudited)
30 June
2013
30 June
2012
(Audited)
Weighted average number of shares (million)
432.6
431.8
431.4
431.9
430.8
Weighted average number of diluted shares (million)
433.1
432.8
432.3
432.7
432.0
Total (loss)/earnings per share (cents):
Basic (loss)/earnings
(809)
(29)
25
(548)
614
Diluted (loss)/earnings
(809)
(29)
25
(548)
612
Headline (loss)/earnings
(186)
(47)
(6)
47
565
– from continuing operations
(186)
(56)
(11)
(2)
465
– from discontinued operations
–
9
5
49
100
Diluted headline (loss)/earnings
(186)
(47)
(6)
47
563
– from continuing operations
(186)
(56)
(11)
(2)
463
– from discontinued operations
–
9
5
49
100
27
Quarter ended
Year ended
30 June
2013
(Unaudited)
31 March
2013
(Unaudited)
30 June
2012
(Unaudited)
30 June
2013
30 June
2012
(Audited)
Figures in million
Reconciliation of headline earnings:
Continuing operations
Net (loss)/profit
(3 499)
(267)
(73)
(2 683)
2 053
Adjusted for:
Reversal of impairment of investment in associate*
–
–
–
–
(56)
Impairment of investments*
–
39
144
88
144
Impairment/(reversal of impairment) of assets
2 733
–
(60)
2 733
(60)
Taxation effect on impairment/(reversal of impairment)
of assets
of assets
(38)
–
(34)
(38)
(34)
Profit on sale of property, plant and equipment
–
(15)
(34)
(139)
(63)
Taxation effect of profit on sale of property, plant and
equipment
equipment
–
–
9
31
16
Headline (loss)/earnings**
(804)
(243)
(48)
(8)
2 000
Discontinued operations
Net profit
–
143
180
314
592
Adjusted for:
Profit on sale of property, plant and equipment
–
–
(230)
–
(232)
Taxation effect of profit on sale of property, plant and
equipment
equipment
–
–
71
–
72
Profit on sale of investment in subsidiary*
–
(102)
–
(102)
–
Headline earnings
–
41
21
212
432
Total headline (loss)/earnings
(804)
(202)
(27)
204
2 432
* There is no taxation effect on these items
** Write-off of the Hidden Valley deferred tax asset of R547 million is not added back as it is not permitted per the South African Institute of Chartered Accountants Circular
on Headline Earnings
Net asset value per share
At
30 June
2013
At
31 March
2013
(Unaudited)
At
30 June
2012
(Audited)
Number of shares in issue
435 289 890
435 257 691
431 564 236
Net asset value per share (cents)
7 422
8 208
7 897
10. Property, plant and equipment and impairment
One of the most significant assumptions that influence the life-of-mine plans and therefore impairment amount is the expected future gold
price. During this year’s testing, we used a short term gold price of US$1 250, medium term gold price of US$1 300 and long term gold price
of US$1 400 per ounce for Hidden Valley and an overall price of R400 000/kg for the South African operations. A 10% decrease in the gold
price used in the models would have resulted in an additional impairment at Steyn 2 of R17 million, Target 1 of R350 million and the Hidden
Valley operation of R1.96 billion.
price. During this year’s testing, we used a short term gold price of US$1 250, medium term gold price of US$1 300 and long term gold price
of US$1 400 per ounce for Hidden Valley and an overall price of R400 000/kg for the South African operations. A 10% decrease in the gold
price used in the models would have resulted in an additional impairment at Steyn 2 of R17 million, Target 1 of R350 million and the Hidden
Valley operation of R1.96 billion.
11. Investment in Rand Refinery
During the June 2013 quarter, an additional 1.4% interest in Rand Refinery was purchased for R14 million. This is in addition to the 7.16%
interest purchased for R72 million in two tranches during the March 2013 and December 2012 quarter. Harmony holds just over 10% interest
in Rand Refinery as at 30 June 2013.
interest purchased for R72 million in two tranches during the March 2013 and December 2012 quarter. Harmony holds just over 10% interest
in Rand Refinery as at 30 June 2013.
28
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
12. Borrowings
The Nedbank revolving credit facility was repaid in full during the December 2011 quarter and the full R850 million facility is available until
December 2013. The balance on Nedbank term facilities at 30 June 2013 is R458 million.
December 2013. The balance on Nedbank term facilities at 30 June 2013 is R458 million.
Two drawdowns 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 drawn level to US$210 million. The facility is repayable by
September 2015.
during the September and December 2012 quarters, respectively. This takes the drawn level to US$210 million. The facility is repayable by
September 2015.
The weakening of the Rand against the US dollar resulted in a foreign exchange translation loss of R161 million being recorded against the
borrowings balance in the June 2013 quarter, in addition to the R150 million recorded in the March 2013 quarter. The effect of foreign
exchange changes for the 12 months totals a translation loss of R351 million (2012: R45 million).
borrowings balance in the June 2013 quarter, in addition to the R150 million recorded in the March 2013 quarter. The effect of foreign
exchange changes for the 12 months totals a translation loss of R351 million (2012: R45 million).
13. Commitments and contingencies
Figures in million
At
30 June
2013
At
31 March
2013
(Unaudited)
At
30 June
2012
(Audited)
Capital expenditure commitments
Contracts for capital expenditure
416
594
519
Authorised by the directors but not contracted for
1 545
958
2 257
1 961
1 552
2 776
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 the disclosure made in Harmony’s annual report for the financial year ended 30 June 2012 relating to silicosis, Harmony and its
subsidiaries, alongside other mining companies operating in South Africa (other respondents) were served with another application to certify a
class during January 2013. Harmony, its subsidiaries and other respondents are awaiting a consolidated and supplemented certification
application of the two separate applications served.
subsidiaries, alongside other mining companies operating in South Africa (other respondents) were served with another application to certify a
class during January 2013. Harmony, its subsidiaries and other respondents are awaiting a consolidated and supplemented certification
application of the two separate applications served.
14. Subsequent events
There are no subsequent events to report.
15. Segment report
The segment report follows on page 30.
16. Reconciliation of segment information to consolidated income statements and balance sheet
Figures in million
Year ended
30 June
2013
30 June
2012
Audited
The “Reconciliation of segment information to 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 income statement, balance sheet and segment report:
report is broken down in the following elements, to give a better understanding of the differences between
the income statement, balance sheet and segment report:
Reconciliation of production profit to gross (loss)/profit
Total segment revenue
16 776
16 574
Total segment production costs
(11 933)
(10 678)
Production profit per segment report
4 843
5 896
Discontinued operations
(341)
(638)
Production profit from continuing operations
4 502
5 258
Cost of sales items, other than production costs and royalty expense
(5 068)
(2 226)
Gross (loss)/profit as per income statements*
(566)
3 032
29
Figures in million
Year ended
30 June
2013
30 June
2012
Reconciliation of total segment mining assets to consolidated property, plant and equipment
Property, plant and equipment not allocated to a segment
Mining assets
836
1 226
Undeveloped property
5 139
5 139
Other non-mining assets
286
110
Wafi-Golpu assets
1 148
553
Less: Non-current assets previously classified as held-for-sale
–
(1 124)
7 409
5 904
* The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
17. 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 year, 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 year, Harmony shares were
purchased by certain directors as set out below:
Graham Briggs
14 347 shares
Frank Abbott
73 900 shares
Ken Dicks
20 000 shares
18. Audit review
The condensed consolidated financial statements for the year ended 30 June 2013 on pages 20 to 30 have been reviewed in accordance with
the 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 opinion is available for inspection at the company’s registered office.
the 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 opinion is available for inspection at the company’s registered office.
30
Segment
report
(Rand/Metric)
for the year ended 30 June 2013
Revenue
Production cost
Production
profit/(loss)
Mining assets
(1)
Capital
expenditure
#
Kilograms
produced*
Tonnes milled*
30 June
30 June
30 June
30 June
30 June
30 June
30 June
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
R million
R million
R million
R million
R million
kg
t’000
Continuing operations
South Africa
Underground
Kusasalethu
South Africa
Underground
Kusasalethu
1 213
2 320
1 484
1 439
(271)
881
3 435
3 260
420
415
2 740
5 633
711
1 197
Doornkop
1 615
1 284
1 042
862
573
422
3 378
3 235
285
294
3 631
3 075
1 008
928
Phakisa
1 103
1 064
982
803
121
261
4 547
4 448
337
302
2 434
2 541
512
521
Tshepong
1 887
2 219
1 427
1 275
460
944
3 877
3 693
310
288
4 154
5 287
1 040
1 233
Masimong
1 640
1 349
975
843
665
506
989
980
171
208
3 616
3 220
868
933
Target 1
1 794
1 525
937
855
857
670
2 704
2 644
331
259
3 967
3 630
717
788
Bambanani
932
549
591
597
341
(48)
882
944
119
266
2 083
1 374
211
197
Joel
1 452
1 124
654
565
798
559
290
216
160
84
3 228
2 663
611
557
Unisel
825
672
567
494
258
178
656
364
78
71
1 813
1 593
446
394
Target 3
737
472
508
428
229
44
457
345
145
90
1 626
1 123
323
316
Surface
All other surface operations
1 515
1 428
1 029
899
486
529
264
233
250
162
3 438
3 372
10 082
9 324
Total South Africa
14 713
14 006
10 196
9 060
4 517
4 946
21 479
20 362
2 606
2 439
32 730
33 511
16 529
16 388
International
Hidden Valley
1 189
1 163
1 204
851
(15)
312
3 932
5 595
506
296
2 644
2 762
1 844
1 766
Total international
1 189
1 163
1 204
851
(15)
312
3 932
5 595
506
296
2 644
2 762
1 844
1 766
Total continuing
operations
operations
15 902
15 169
11 400
9 911
4 502
5 258
25 411
25 957
3 112
2 735
35 374
36 273
18 373
18 154
Discontinued operations
Evander
874
1 405
533
767
341
638
–
992
140
177
1 955
3 369
390
638
Total discontinued
operations
operations
874
1 405
533
767
341
638
–
992
140
177
1 955
3 369
390
638
Total operations
16 776
16 574
11 933
10 678
4 843
5 896
25 411
26 949
3 252
2 912
37 329
39 642
18 763
18 792
Reconciliation of the
segment information to the
consolidated income
statement and balance sheet
(refer to note 16)
segment information to the
consolidated income
statement and balance sheet
(refer to note 16)
(874)
(1 405)
(533)
(767)
7 409
5 904
15 902
15 169
11 400
9 911
32 820
32 853
(1)
Mining assets disclosures included in the segment report and the amounts included in the reconciliation of segment information (refer to note 16) were previously not disclosed and have been reviewed for the year ended 30 June 2013 and 30 June 2012.
# Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R537 million (2012: R314 million).
* Production statistics are unaudited.
The segment report for the year ended 30 June 2012 has been audited.
31
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
Q4 FY13
Results for the
fourth quarter and year
ended 30 June 2013
(US$)
32
33
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
Operating results
(US$/Imperial)
Three
months
ended
months
ended
South Africa
Hidden
Valley
Harmony
Total
Underground production
Surface production
Total
South Africa
Kusasalethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1
Bambanani
Joel
Unisel
Target 3
Steyn 2
Total
Under-
ground
Phoenix
Dumps
Kalgold
Total
Surface
Ore milled
– t’000
Jun-13
234
267
147
233
232
197
61
167
126
80
13
1 757
1 622
969
405
2 996
4 753
504
5 257
Mar-13
36
275
120
289
200
201
37
153
109
89
13
1 522
1 461
1 001
366
2 828
4 350
485
4 835
Gold produced
– oz
Jun-13
22 120
27 617
18 744
26 203
26 974
28 839
19 741
22 473
13 728
13 471
3 890
223 800
6 494
11 124
11 478
29 096
252 896
23 213
276 109
Mar-13
1 575
28 839
15 561
33 083
25 688
29 354
9 581
25 045
13 632
13 150
4 469
199 977
6 945
11 671
9 935
28 551
228 528
19 001
247 529
Yield –
oz/t
Jun-13
0.095
0.103
0.128
0.112
0.116
0.146
0.324
0.135
0.109
0.168
0.299
0.127
0.004
0.011
0.028
0.010
0.053
0.046
0.053
Mar-13
0.044
0.105
0.130
0.114
0.128
0.146
0.259
0.164
0.125
0.148
0.344
0.131
0.005
0.012
0.027
0.010
0.053
0.039
0.051
Cash operating
costs
costs
– $/oz
Jun-13
1 900
1 094
1 462
1 377
954
926
663
801
1 092
980
848
1 120
1 045
1 095
1 054
1 068
1 114
1 606
1 156
Mar-13
22 891
1 030
1 762
1 187
1 003
867
1 354
722
1 112
1 075
796
1 238
889
1 088
1 235
1 091
1 220
1 795
1 264
Cash operating
costs
costs
– $/t
Jun-13
180
113
186
155
111
135
215
108
119
165
254
143
4
13
30
10
59
74
61
Mar-13
1 001
108
228
136
129
127
351
118
139
159
274
163
4
13
34
11
64
70
65
Gold sold
– oz
Jun-13
13 728
25 496
18 262
25 496
26 235
30 029
19 194
22 505
13 343
14 018
3 794
212 100
6 591
11 510
9 677
27 778
239 878
22 023
261 901
Mar-13
4 147
26 974
15 111
32 151
24 981
27 810
9 324
22 602
13 246
12 474
4 340
193 160
6 752
11 574
10 578
28 904
222 064
19 258
241 322
Revenue ($’000)
Jun-13
18 594
35 509
25 723
35 955
37 016
43 298
27 088
31 772
18 849
20 201
5 325
299 330
9 149
16 060
13 147
38 356
337 686
30 826
368 512
Mar-13
6 847
44 144
24 807
52 666
40 968
45 523
15 270
37 038
21 705
20 396
7 096
316 460
11 054
18 991
17 356
47 401
363 861
31 584
395 445
Cash operating
costs
costs
($’000)
Jun-13
42 030
30 223
27 400
36 074
25 727
26 692
13 089
17 995
14 989
13 201
3 300
250 720
6 784
12 177
12 103
31 064
281 784
37 273
319 057
Mar-13
36 053
29 703
27 414
39 281
25 756
25 438
12 977
18 084
15 158
14 130
3 556
247 550
6 173
12 701
12 273
31 147
278 697
34 116
312 813
Inventory
movement
movement
($’000)
Jun-13
(10 575)
(3 090)
(731)
(338)
(850)
1 032
(1 179)
(307)
(401)
511
(77)
(16 005)
(176)
757
(1 822)
(1 241)
(17 246)
(939)
(18 185)
Mar-13
2 815
(2 397)
(573)
(1 407)
(1 035)
(1 861)
(394)
(1 965)
(544)
(1 036)
(214)
(8 611)
(205)
(406)
(12)
(623)
(9 234)
(186)
(9 420)
Operating costs
($’000)
Jun-13
31 455
27 133
26 669
35 736
24 877
27 724
11 910
17 688
14 588
13 712
3 223
234 715
6 608
12 934
10 281
29 823
264 538
36 334
300 872
Mar-13
38 868
27 306
26 841
37 874
24 721
23 577
12 583
16 119
14 614
13 094
3 342
238 939
5 968
12 295
12 261
30 524
269 463
33 930
303 393
Operating profit
($’000)
Jun-13
(12 861)
8 376
(946)
219
12 139
15 574
15 178
14 084
4 261
6 489
2 102
64 615
2 541
3 126
2 866
8 533
73 148
(5 508)
67 640
Mar-13
(32 021)
16 838
(2 034)
14 792
16 247
21 946
2 687
20 919
7 091
7 302
3 754
77 521
5 086
6 696
5 095
16 877
94 398
(2 346)
92 052
Capital
expenditure
expenditure
($’000)
Jun-13
15 653
6 744
10 111
8 873
4 885
7 331
2 791
4 602
2 222
4 355
97
67 664
1 349
197
1 309
2 855
70 519
14 601
85 120
Mar-13
6 169
7 923
9 434
8 744
4 934
8 281
2 347
4 194
2 403
3 985
95
58 509
2 137
264
160
2 561
61 070
14 838
75 908
34
35
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
Operating results – Year on Year
(US$/Imperial)
Year
Ended
Ended
South Africa
Hidden
Valley
Total
Continuing
Operations
Underground production
Surface production
Other
Total
South
Africa
Africa
Kusasalethu
Doornkop
Phakisa
Tshepong
Masimong
Target 1
Bambanani
Joel
Unisel
Target 3
Steyn 2
Total
Under-
ground
Phoenix
Dumps
Kalgold
Total
Surface
Ore milled
– t’000
Jun-13
784
1 112
565
1 147
958
790
180
674
492
355
51
7 108
5 908
3 668
1 542
11 118
–
18 226
2 033
20 259
Jun-12
1 320
1 023
575
1 359
1 029
869
175
614
434
348
42
7 788
5 509
3 292
1 480
10 281
–
18 069
1 948
20 017
Gold produced
– oz
Jun-13
88 093
116 738
78 255
133 554
116 256
127 542
51 635
103 782
58 289
52 277
15 335
941 756
26 588
41 121
42 825
110 534
–
1 052 290
85 007
1 137 297
Jun-12
181 105
98 863
81 695
169 980
103 526
116 708
33 565
85 618
51 216
36 106
10 609
968 991
26 428
48 515
33 469
108 412
–
1 077 403
88 800
1 166 203
Yield
-g/tonne
Jun-13
0.112
0.105
0.139
0.116
0.121
0.161
0.287
0.154
0.118
0.147
0.301
0.132
0.005
0.011
0.028
0.010
–
0.058
0.042
0.056
Jun-12
0.137
0.097
0.142
0.125
0.101
0.134
0.192
0.139
0.118
0.104
0.225
0.124
0.005
0.015
0.023
0.011
–
0.060
0.046
0.058
Cash operating
costs
costs
– $/oz
Jun-13
1 951
1 046
1 428
1 212
960
842
1 030
729
1 111
1 116
1 009
1 119
986
1 190
1 071
1 095
–
1 117
1 611
1 154
Jun-12
1 046
1 142
1 279
973
1 057
940
1 885
836
1 253
1 523
1 439
1 094
966
991
1 176
1 042
–
1 089
1 238
1 100
Cash operating
costs
costs
– $/tonne
Jun-13
219
110
198
141
117
136
295
112
132
164
303
148
4
13
30
11
–
64
67
65
Jun-12
143
110
182
122
106
126
362
117
148
158
324
136
5
15
27
11
–
65
56
64
Gold sold
– oz
Jun-13
86 742
114 135
77 902
132 944
115 679
126 191
51 152
102 625
58 000
51 859
15 207
932 436
25 882
41 088
40 607
107 577
–
1 040 013
84 299
1 124 312
Jun-12
178 726
98 027
81 277
169 177
102 979
117 189
33 405
86 132
51 055
36 298
10 578
964 843
26 749
48 740
33 630
109 119
–
1 073 962
89 315
1 163 277
Revenue
-($’000)
Jun-13
137 477
183 066
124 984
213 869
185 886
203 388
81 322
164 584
93 483
83 573
24 383
1 496 015
41 397
65 609
64 689
171 695
–
1 667 710
134 779
1 802 489
Jun-12
298 671
165 271
136 953
285 644
173 652
196 397
54 601
144 750
86 454
60 799
16 147
1 619 339
44 939
81 974
56 931
183 844
–
1 803 183
149 787
1 952 970
Cash operating
costs
costs
($’000)
Jun-13
171 864
122 121
111 760
161 928
111 653
107 398
53 181
75 645
64 762
58 343
15 467
1 054 122
26 212
48 919
45 858
120 989
–
1 175 111
136 905
1 312 016
Jun-12
189 403
112 935
104 462
165 463
109 402
109 651
63 266
71 589
64 185
54 979
13 604
1 058 939
25 537
48 085
39 357
112 979
–
1 171 918
109 960
1 281 878
Inventory
movement
movement
($’000)
Jun-13
(3 702)
(3 977)
(411)
(172)
(1 169)
(1 177)
(1 508)
(1 514)
(455)
(708)
(176)
(14 969)
(715)
(534)
(3 164)
(4 413)
–
(19 382)
(462)
(19 844)
Jun-12
(4 149)
(1 920)
(1 124)
(1 266)
(819)
380
262
1 209
(577)
143
(221)
(8 082)
443
1 430
646
2 519
–
(5 563)
(365)
(5 928)
Operating costs
($’000)
Jun-13
168 162
118 144
111 349
161 756
110 484
106 221
51 673
74 131
64 307
57 635
15 291
1 039 153
25 497
48 385
42 694
116 576
–
1 155 729
136 443
1 292 172
Jun-12
185 254
111 015
103 338
164 197
108 583
110 031
63 528
72 798
63 608
55 122
13 383
1 050 857
25 980
49 515
40 003
115 498
–
1 166 355
109 595
1 275 950
Operating profit
($’000)
Jun-13
(30 685)
64 922
13 635
52 113
75 402
97 167
29 649
90 453
29 176
25 938
9 092
456 862
15 900
17 224
21 995
55 119
–
511 981
(1 664)
510 317
Jun-12
113 417
54 256
33 615
121 447
65 069
86 366
(8 927)
71 952
22 846
5 677
2 764
568 482
18 959
32 459
16 928
68 346
–
636 828
40 192
677 020
Capital
expenditure
expenditure
($’000)
Jun-13
47 559
32 354
38 252
35 195
19 339
37 521
13 080
18 100
8 833
16 444
434
267 111
17 690
1 671
5 948
25 309
3 009
295 429
57 343
352 772
Jun-12
53 486
37 813
38 925
37 068
26 771
33 290
23 902
10 822
9 150
11 527
10 353
293 107
3 800
3 075
9 836
16 711
4 061
313 879
38 168
352 047
36
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
CONDENSED CONSOLIDATED INCOME STATEMENTS
(US$)
(Convenience translation)
Figures in million
Quarter ended
Year ended
30 June
2013
(Unaudited)
31 March
2013
(Unaudited)
30 June
2012
(Unaudited)
30 June
2013
(Unaudited)
30 June
2012
(Audited)
Continuing operations
Revenue
369
395
485
1 803
1 953
Cost of sales
(653)
(367)
(409)
(1 866)
(1 561)
Production costs
(301)
(303)
(325)
(1 292)
(1 276)
Amortisation and depreciation
(53)
(51)
(67)
(220)
(247)
(Impairment)/reversal of impairment of assets
(289)
–
7
(310)
7
Other items
(10)
(13)
(24)
(44)
(45)
Gross (loss)/profit
(284)
28
76
(63)
392
Corporate, administration and other expenditure
(13)
(14)
(11)
(53)
(45)
Social investment expenditure
(6)
(3)
(3)
(14)
(9)
Exploration expenditure
(23)
(18)
(20)
(76)
(64)
Profit on sale of property, plant and equipment
–
2
4
16
8
Other expenses – net
(18)
(15)
(9)
(40)
(6)
Operating (loss)/profit
(344)
(20)
37
(230)
276
Reversal of impairment of investment in associate
–
–
–
–
7
Impairment of investments
–
(4)
(18)
(10)
(19)
Net (loss)/gain on financial instruments
(1)
2
1
20
11
Investment income
7
5
4
21
12
Finance cost
(6)
(7)
(8)
(29)
(37)
(Loss)/profit before taxation
(344)
(24)
16
(228)
250
Taxation
(26)
(5)
(24)
(75)
16
Normal taxation
8
(14)
(10)
(31)
(25)
Deferred taxation
(34)
9
(14)
(44)
41
Net (loss)/profit from continuing operations
(370)
(29)
(8)
(303)
266
Discontinued operations
Profit from discontinued operations
–
16
22
36
75
Net (loss)/profit for the period
(370)
(13)
14
(267)
341
Attributable to:
Owners of the parent
(370)
(13)
14
(267)
341
(Loss)/earnings per ordinary share (cents)
(Loss)/earnings from continuing operations
(86)
(7)
(2)
(70)
61
Earnings from discontinued operations
–
4
5
8
18
Total (loss)/earnings
(86)
(3)
3
(62)
79
Diluted (loss)/earnings per ordinary share (cents)
(Loss)/earnings from continuing operations
(86)
(7)
(2)
(70)
61
Earnings from discontinued operations
–
4
5
8
18
Total diluted (loss)/earnings
(86)
(3)
3
(62)
79
The currency conversion average rates for the quarter ended: June 2013: US$1 = R9.45 (March 2013: US$1 = R8.92, June 2012: US$1 = R8.12).
For the year ended: June 2013: US$1 = R8.82 (June 2012: US$= R7.77).
For the year ended: June 2013: US$1 = R8.82 (June 2012: US$= R7.77).
The income statement for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
37
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(US$)
(Convenience translation)
Figures in million
Quarter ended
Year ended
30 June
2013
(Unaudited)
31 March
2013
(Unaudited)
30 June
2012
(Unaudited)
30 June
2013
(Unaudited)
30 June
2012
(Audited)
Net (loss)/profit for the period
(370)
(13)
14
(267)
341
Other comprehensive income/(loss) for the period, net of income tax
3
58
74
86
(595)
Foreign exchange translation
3
59
62
85
(607)
Movements on investments
–
(1)
12
1
12
Total comprehensive (loss)/income for the period
(367)
45
88
(181)
(254)
Attributable to:
Owners of the parent
(367)
45
88
(181)
(254)
The currency conversion average rates for the quarter ended: June 2013: US$1 = R9.45 (March 2013: US$1 = R8.92, June 2012: US$1 = R8.12).
For the year ended: June 2013: US$1 = R8.82 (June 2012: US$1 = R7.77).
For the year ended: June 2013: US$1 = R8.82 (June 2012: US$1 = R7.77).
The statement of comprehensive income for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.
Note on convenience translations
Except where specific statements have been extracted from the 2012 Annual Report, the requirements of IAS 21, The Effects
of the Changes in Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial
statements presented on pages 36 to 41.
of the Changes in Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial
statements presented on pages 36 to 41.
38
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
CONDENSED CONSOLIDATED BALANCE SHEETS
(US$)
(Convenience translation)
Figures in million
At
30 June
2013
(Unaudited)
At
31 March
2013
(Unaudited)
At
30 June
2012
(Audited)
ASSETS
Non-current assets
Property, plant and equipment
3 287
3 787
4 003
Intangible assets
219
238
268
Restricted cash
4
4
4
Restricted investments
206
222
224
Deferred tax assets
10
71
59
Investments
15
15
18
Inventories
6
6
7
Trade and other receivables
–
1
3
Total non-current assets
3 747
4 344
4 586
Current assets
Inventories
143
131
121
Trade and other receivables
116
161
152
Income and mining taxes
13
–
14
Cash and cash equivalents
209
336
216
481
628
503
Assets of disposal groups classified as held for sale
–
–
174
Total current assets
481
628
677
Total assets
4 228
4 972
5 263
EQUITY AND LIABILITIES
Share capital and reserves
Share capital
2 837
3 074
4 036
Other reserves
348
368
(64)
Retained earnings
50
434
180
Total equity
3 235
3 876
4 152
Non-current liabilities
Deferred tax liabilities
303
352
378
Provision for environmental rehabilitation
200
213
227
Retirement benefit obligation
19
20
22
Other provisions
6
5
4
Borrowings
226
243
183
Total non-current liabilities
754
833
814
Current liabilities
Borrowings
29
31
38
Income and mining taxes
–
10
–
Trade and other payables
210
222
213
239
263
251
Liabilities of disposal groups classified as held for sale
–
–
46
Total current liabilities
239
263
297
Total equity and liabilities
4 228
4 972
5 263
The balance sheet for June 2013 converted at a conversion rate of US$1 = R9.98 (March 2013: US$1 = R9.22, June 2012: US$1 = R8.21).
The balance sheet as at 30 June 2012 has been extracted from the 2012 Annual Report.
39
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(US$)
for the year ended 30 June 2013 (Convenience translation)
Figures in million
Share
capital
Other
reserves
Retained
earnings
Total
Balance – 30 June 2012
2 838
245
331
3 414
Share-based payments
(1)
27
–
26
Net loss for the period
–
–
(237)
(237)
Other comprehensive income for the period
–
76
–
76
Dividends paid
–
–
(44)
(44)
Balance – 30 June 2013
2 837
348
50
3 235
Balance – 30 June 2011
4 033
519
(102)
4 450
Issue of shares
3
–
–
3
Share-based payments
–
12
–
12
Net profit for the period
–
–
341
341
Other comprehensive income for the period
–
(595)
–
(595)
Dividends paid
–
–
(59)
(59)
Balance – 30 June 2012
4 036
(64)
180
4 152
The currency conversion closing rates for the period ended 30 June 2013: US$1 = R9.98 (June 2012: US$1 = R8.21).
The statement of changes in equity for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
40
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(US$)
(Convenience translation)
Figures in million
Quarter ended
Year ended
30 June
2013
(Unaudited)
31 March
2013
(Unaudited)
30 June
2012
(Unaudited)
30 June
2013
(Unaudited)
30 June
2012
(Audited)
Cash flow from operating activities
Cash generated by operations
23
23
149
358
586
Interest and dividends received
5
4
2
16
10
Interest paid
(4)
(3)
(5)
(14)
(18)
Income and mining taxes paid
(14)
(8)
(20)
(35)
(33)
Cash generated by operating activities
10
16
126
325
545
Cash flow from investing activities
Restricted cash transferred from disposal group
–
28
–
–
–
Proceeds on disposal of Evander
–
142
–
143
–
Proceeds on disposal of investment in associate
–
–
4
–
28
Proceeds on disposal of Evander 6 and Twistdraai
–
–
15
–
15
Proceeds on disposal of Merriespruit South
–
–
–
7
–
Purchase of investments
(1)
(4)
–
(10)
–
Other investing activities
–
–
(7)
–
(10)
Net additions to property, plant and equipment
1
(99)
(94)
(117)
(421)
(404)
Cash (utilised)/generated by investing activities
(100)
72
(105)
(281)
(371)
Cash flow from financing activities
Borrowings raised
–
–
43
77
188
Borrowings repaid
(17)
–
(20)
(38)
(159)
Ordinary shares issued – net of expenses
–
–
–
–
3
Dividends paid
–
(24)
(1)
(49)
(57)
Cash (utilised)/generated by financing activities
(17)
(24)
22
(10)
(25)
Foreign currency translation adjustments
(20)
(23)
(13)
(41)
(35)
Net (decrease)/increase in cash and cash equivalents
(127)
41
30
(7)
114
Cash and cash equivalents – beginning of period
336
295
186
216
102
Cash and cash equivalents – end of period
209
336
216
209
216
1. Includes capital expenditure for Wafi-Golpu and other international projects of US$14 million in the June 2013 quarter (March 2013: US$17 million) June 2012: US$15 million) and
US$61 million in the 12 months ended 30 June 2013 (June 2012: US$40 million).
The currency conversion average rates for the quarter ended: June 2013: US$1 = R9.45 (March 2013: US$1 = R8.92, June 2012: US$1 = R8.12).
For the year ended: June 2013: US$1 = R8.82 (June 2012: US$1 = R7.77).
For the year ended: June 2013: US$1 = R8.82 (June 2012: US$1 = R7.77).
Closing balance translated at closing rates of: June 2013: US$1 = R9.98 (June 2012: US$1 = R8.21).
The cash flow statement for the year ended 30 June 2012 has been extracted from the 2012 Annual Report.
41
Segment report
(US$/Imperial)
for the year ended 30 June 2013
Revenue
Production
cost
Production
profit/(loss)
Mining assets
(1)
Capital
expenditure
#
Ounces
produced*
Tons milled*
30 June
30 June
30 June
30 June
30 June
30 June
30 June
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
US$ million
US$ million
US$ million
US$ million
US$ million
oz
t’000
Continuing operations
South Africa
Underground
Kusasalethu
137
299
168
185
(31)
114
344
397
48
53
88 093
181 105
784
1 320
Doornkop
183
165
118
111
65
54
338
394
32
38
116 738
98 863
1 112
1 023
Phakisa
125
137
111
103
14
34
455
542
38
39
78 255
81 695
565
575
Tshepong
214
286
162
164
52
122
388
450
35
37
133 554
169 980
1 147
1 359
Masimong
186
174
110
109
76
65
99
119
19
27
116 256
103 526
958
1 029
Target 1
203
196
106
110
97
86
271
322
38
33
127 542
116 708
790
869
Bambanani
106
71
67
77
39
(6)
88
115
14
34
66 970
44 174
231
217
Joel
165
145
74
73
91
72
29
26
18
11
103 782
85 618
674
614
Unisel
93
86
64
64
29
22
66
44
9
9
58 289
51 216
492
434
Target 3
84
61
58
55
26
6
46
42
16
12
52 277
36 106
355
348
Surface
All other surface operations
172
183
117
115
55
68
26
28
28
20
110 534
108 412
11 118
10 281
Total South Africa
1 668
1 803
1 155
1 166
513
637
2 150
2 479
295
313
1 052 290
1 077 403
18 226
18 069
International
Hidden Valley
135
150
137
110
(2)
40
394
682
57
38
85 007
88 800
2 033
1 948
Total international
135
150
137
110
(2)
40
394
682
57
38
85 007
88 800
2 033
1 948
Total continuing
operations
operations
1 803
1 953
1 292
1 276
511
677
2 544
3 161
352
351
1 137 297
1 166 203
20 259
20 017
Discontinued operations
Evander
99
181
60
99
39
82
–
121
15
23
62 855
108 317
430
704
Total discontinued
operations
operations
99
181
60
99
39
82
–
121
15
23
62 855
108 317
430
704
Total operations
1 902
2 134
1 352
1 375
550
759
2 544
3 282
367
374
1 200 152
1 274 520
20 689
20 721
(1)
Segment mining assets disclosures were previously not reported and are unaudited for the year ended 30 June 2013 and 30 June 2012.
#
Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of US$61 million (2012: US$40 million).
* Production statistics are unaudited.
The segment report for the year ended 30 June 2012 has been audited. The segment report for the year ended 30 June 2013 is unaudited.
42
Results for the fourth quarter
and year ended 30 June 2013
and year ended 30 June 2013
DEVELOPMENT RESULTS
(Metric)
Quarter ending June 2013
Channel
Reef
Meters
Sampled
Meters
Width
(Cm’s)
Value
(g/t)
Gold
(Cmg/t)
Tshepong
Basal
406
396
8.36
158.77
1 327
B Reef
165
138
58.18
11.75
684
All Reefs
571
534
21.23
54.68
1 161
Phakisa
Basal
245
256
95.20
14.09
1 341
All Reefs
245
256
95.20
14.09
1 341
Doornkop
South Reef
438
399
42.96
18.84
809
All Reefs
438
399
42.96
18.84
809
Kusasalethu
VCR Reef
497
502
104.20
11.49
1 197
All Reefs
497
502
104.20
11.49
1 197
Total Target
(Incl. Target 1 & Target 3)
Elsburg
75
60
266.40
4.38
1 166
Basal
25
12
11.50
86.30
993
A Reef
33
34
73.71
11.72
864
B Reef
302
170
139.13
12.76
1 776
All Reefs
435
276
153.19
9.77
1 497
Masimong 5
Basal
582
510
43.24
15.33
663
B Reef
84
141
98.04
14.55
1 427
All Reefs
666
651
55.11
15.03
828
Unisel
Basal
292
216
207.40
6.79
1 409
Leader
464
410
217.42
6.33
1 376
Middle
64
26
189.00
10.14
1 917
All Reefs
820
652
212.97
6.61
1 409
Joel
Beatrix
303
297
150.00
14.65
2 197
All Reefs
303
297
150.00
14.65
2 197
Total Harmony
Basal
1 550
1 390
68.11
16.09
1 096
Beatrix
303
297
150.00
14.65
2 197
Leader
464
410
217.42
6.33
1 376
B Reef
551
449
101.35
13.13
1 331
A Reef
33
34
73.71
11.72
864
Middle
64
26
189.00
10.14
1 917
Elsburg
75
60
266.40
4.38
1 166
South Reef
438
399
42.96
18.84
809
VCR Reef
497
502
104.20
11.49
1 197
All Reefs
3 975
3 567
102.81
12.03
1 236
DEVELOPMENT RESULTS
(Imperial)
Quarter ending June 2013
Channel
Reef
Meters
Sampled
Meters
Width
(inch)
Value
(oz/t)
Gold
(In.oz/t)
Tshepong
Basal
1 332
1 299
3.00
5.08
15
B Reef
540
453
23.00
0.34
8
All Reefs
1 872
1 752
8.00
1.67
13
Phakisa
Basal
803
840
37.00
0.42
15
All Reefs
803
840
37.00
0.42
15
Doornkop
South Reef
1 438
1 309
17.00
0.55
9
All Reefs
1 438
1 309
17.00
0.55
9
Kusasalethu
VCR Reef
1 629
1 647
41.00
0.34
14
All Reefs
1 629
1 647
41.00
0.34
14
Total Target
(Incl. Target 1 & Target 3)
Elsburg
247
197
105.00
0.13
13
Basal
81
39
5.00
2.28
11
A Reef
108
112
29.00
0.34
10
B Reef
992
558
55.00
0.37
20
All Reefs
1 428
906
60.00
0.29
17
Masimong 5
Basal
1 909
1 673
17.00
0.45
8
B Reef
277
463
39.00
0.42
16
All Reefs
2 186
2 136
22.00
0.43
10
Unisel
Basal
959
709
82.00
0.20
16
Leader
1 521
1 345
86.00
0.18
16
Middle
210
85
74.00
0.30
22
All Reefs
2 690
2 139
84.00
0.19
16
Joel
Beatrix
995
974
59.00
0.43
25
All Reefs
995
974
59.00
0.43
25
Total Harmony
Basal
5 085
4 560
27.00
0.47
13
Beatrix
995
974
59.00
0.43
25
Leader
1 521
1 345
86.00
0.18
16
B Reef
1 809
1 473
40.00
0.38
15
A Reef
108
112
29.00
0.34
10
Middle
210
85
74.00
0.30
22
Elsburg
247
197
105.00
0.13
13
South Reef
1 438
1 309
17.00
0.55
9
VCR Reef
1 629
1 647
41.00
0.34
14
All Reefs
13 041
11 703
40.00
0.36
14
PRINTED BY INCE (PTY) LTD
W2CF16343
43
NOTES
44
44
44
44
44
4
4
4
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
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*^, K T Nondumo*^, V P Pillay *^, J Wetton*^, A J Wilkens*
* Non-executive
^ Independent
^ Independent
1
Mozambican
Investor relations team
Henrika Basterfield
Investor Relations Manager
Investor Relations Manager
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail: henrika@harmony.co.za
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail: henrika@harmony.co.za
Marian van der Walt
Executive: Corporate and Investor Relations
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail: marian@harmony.co.za
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail: marian@harmony.co.za
Company Secretary
Riana Bisschoff
Telephone: +27 11 411 6020
Mobile: +27 83 629 4706
E-mail: riana.bisschoff@harmony.co.za
South African Share Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381
(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
ADR Depositary
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company, Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries: db@amstock.com
Toll Free: +1-800-937-5449
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: db@amstock.com
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: August 14, 2013
Harmony Gold Mining Company Limited
By: /s/ Frank Abbott
Name: Frank Abbott
Title: Financial Director
Title: Financial Director