Edgar Filing: HARMONY GOLD MINING CO LTD

Page 1

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 31 October 2011

Harmony Gold Mining Company

Limited

Randfontein Office Park

Corner Main Reef Road and Ward Avenue

Randfontein, 1759

South Africa

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-

F or Form 40-F.)

Form 20-F X Form 40-F

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.)

Yes No X

Financial review for the period ended 30 September 2011

Quarter

September

June

Q-on-Q

2011

Variance

Gold produced

(1)

– kg

10 207

10 152

0.5

– oz

328 162

326 394

0.5

Cash operating costs

– R/kg

265 288

242 851

(9.2)

– US$/oz

1 156

1 115

(3.7)

Gold sold

– kg

9 948

10 412

(4.5)

– oz

319 836

334 752

(4.5)

Gold price received

– R/kg

396 405

329 536

20.3

– US$/oz

1 727

1 513

14.1

Operating profit

– Rm

1 306

901

45.0

– US$m

183

133

37.6

Basic earnings/(loss) per share

– SAc/s

111

(10)

>100.0

– USc/s

(1)

>100.0

Headline profit

– Rm

411

130

>100.0

– $m

>100.0

Headline earnings per share

– SAc/s

>100.0

– USc/s

>100.0

Exchange rate

– R/US$

7.14

6.78

5.3

(1) Production statistics for Steyn 2 have been included. Steyn 2 is currently in a build-up phase and

revenue and costs are capitalised for this period. Quarter ending September 2011: 36 kg
(June 2011 – 27 kg).

Record operating profits

•

45% increase in operating profit to R1.3 billion

Highest ever revenue

Headline earnings per share (HEPS) increased by
217% to 95 SA cents

Production in line with forecast despite industrial action

•

turnaround at Joel; shaft-equipping completed

•

continued build-up at Phakisa, Kusasalethu and Doornkop

•

Bambanani restructured – crews transferred to build-up operations

More exciting exploration results from PNG

Wa -Golpu pre-feasibility study on track

KEY FEATURES

Shareholder information

Issued ordinary
share capital at
30 September 2011

430 272 715

Issued ordinary
share capital at
30 June 2011

430 084 628

Market capitalisation

At 30 September 2011

ZARm

41 027

At 30 September 2011

US$m

5 103

Harmony ordinary share and ADR prices

12 month high
(1 October 2010 –
30 September 2011)
for ordinary shares

R106.00

12 month low
(1 October 2010 –
30 September 2011)
for ordinary shares

R74.77

12 month high
(1 October 2010 –
30 September 2011)
for ADRs

US$15.57

12 month low
(1 October 2010 –
30 September 2011)
for ADRs

US$10.56

Free oat

Ordinary shares

100%

ADR ratio

1:1

JSE Limited

HAR

Range for quarter
(1 July 2011 –
30 September 2011
closing prices)

R85.80 – R106.00

Average daily volume
for the quarter
(1 July 2011 –
30 September 2011)

1 744 855 shares

New York Stock Exchange,
Inc including other
US trading

HMY

Range for quarter
(1 July 2011 –
30 September 2011
closing prices)

US$11.50 –
US$14.87

Average daily volume
for the quarter
(1 July 2011 –
30 September 2011)

2 915 266 shares

RESULTS FOR THE PERIOD

ENDED 30 SEPTEMBER 2011

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

Forward-looking statements

This quarterly report contains forward-looking statements within
the meaning of the United States Private Securities Litigation Reform
Act of 1995 with respect to Harmony’s nancial condition, results of
operations, business strategies, operating ef ciencies, competitive
positions, growth opportunities for existing services, plans and objectives
of management, markets for stock and other matters. Statements in this
quarter that are not historical facts are “forward-looking statements”
for the purpose of the safe harbour provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and Section 27A
of the U.S. Securities Act of 1933, as amended. Forward-looking
statements are statements that are not historical facts.

These statements include nancial projections and estimates and their
underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and services,
and statements regarding future performance. Forward-looking
statements are generally identi ed by the words “expect”, “anticipates”,
“believes”, “intends”, “estimates” and similar expressions. These
statements are only predictions. All forward-looking statements involve
a number of risks, uncertainties and other factors and we cannot assure
you that such statements will prove to be correct. Risks, uncertainties
and other factors could cause actual events or results to differ from
those expressed or implied by the forward-looking statements.

These forward-looking statements, including, among others, those
relating to the future business prospects, revenues and income of
Harmony, wherever they may occur in this quarterly report and the
exhibits to this quarterly report, are necessarily estimates re ecting the
best judgment of the senior management of Harmony and involve a
number of risks and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements.
As a consequence, these forward-looking statements should be
considered in light of various important factors, including those set forth
in this quarterly report.

Important factors that could cause actual results to differ materially
from estimates or projections contained in the forward-looking
statements include, without limitation: overall economic and business
conditions in the countries in which we operate; the ability to achieve
anticipated ef ciencies and other cost savings in connection with past
and future acquisitions; increases or decreases in the market price of
gold; the occurrence of hazards associated with underground and
surface gold mining; the occurrence of labour disruptions; availability,
terms and deployment of capital; changes in government regulation,
particularly mining rights and environmental regulations; uctuations
in exchange rates; currency devaluations and other macroeconomic
monetary policies; and socio-economic instability in the countries in
which we operate.

Harmony’s Annual Report, Notice of

Annual General Meeting, its Sustainable

Development Report and its Annual Report

led on a form 20F with the United States’

Securities and Exchange Commission for the

year ended 30 June 2011 are available on

our website: www.harmony.co.za

3     Chief Executive Of cer’s review
4      Safety and health
4      Financial overview

5 Operational overview

5 Group results

5 Build-up operations

5     Doornkop
5     Kusasalethu
5     Phakisa
5     Hidden Valley

6 Target 1

6 Target 3

6 Steady-state

operations

6     Tshepong
6     Masimong
6     Evander

7 Other operations

7 Bambanani
7 Steyn 2

7 Joel
7 Unisel

Surface operations (South Africa)
8 Kalgold
8 Phoenix tailings

8 Surface dumps

9 Development
10 Exploration

12   Operating results (Rand/Metric)
14   Condensed consolidated income statements (Rand)
15   Condensed consolidated statements of comprehensive income (Rand)
16   Condensed consolidated balance sheets (Rand)
17   Condensed consolidated statements of changes in equity (Rand)
18   Condensed consolidated cash ow statements (Rand)
19   Notes to the condensed consolidated nancial statements
23   Segment report (Rand/Metric)

26   Operating results (US$/Imperial)
28   Condensed consolidated income statements (US$)
29   Condensed consolidated statements of comprehensive income (US$)
30   Condensed consolidated balance sheets (US$)
31   Condensed consolidated statements of changes in equity (US$)
32   Condensed consolidated cash ow statements (US$)
33   Segmental report (US$/Imperial)
34   Development results – metric and imperial
36   Contact details

Competent person’s declaration

Harmony reports in terms of the South African Code for the Reporting
of Exploration results, Mineral Resources and Ore Reserves (SAMREC).
Harmony employs an ore reserve manager at each of its operations who
takes responsibility for reporting mineral resources and mineral reserves
at his operation.

The mineral resources and mineral reserves in this report are based on
information compiled by the following competent persons:

Reserves and resources South Africa:

Jaco Boshoff, Pri Sci Nat, who has 16 years’ relevant experience and
is registered with the South African Council for Natural Scienti c
Professions (SACNASP).

Reserves and resources PNG:

Stuart Hayward for the Wa -Golpu mineral resources, Gregory Job
for the Golpu mineral reserve, James Francis for the Hidden Valley

mineral resources and Anton Kruger for the Hidden Valley mineral
reserve. Messers Job, Francis and Kruger are corporate members of
the Australian Institute of Mining and Metallurgy and Mr Hayward is a
member of the Australian Institute of Geoscientists. All have relevant
experience in the type and style of mineralisation for which they are
reporting, and are competent persons as de ned by the code.

These competent persons consent to the inclusion in the report of
the matters based on the information in the form and context in
which it appears. Mr Boshoff and Mr Job are full-time employees of
Harmony Gold Mining Company Limited and Mr Hayward is a full-time
employee of Wa -Golpu Services Limited. Mr Francis and Mr Kruger are
full-time employees of Newcrest Mining Limited (Newcrest). Newcrest is
Harmony’s joint venture partner in the Morobe Mining Joint Venture on
the Hidden Valley mine and Wa -Golpu project.

Chief Executive’s Review

Introduction

The increased R/kg gold price received during the September 2011
quarter continued to strengthen Harmony’s profit levels. A record
operating profit was generated this quarter with production remaining
steady despite industrial action. This is an indication of our improved
operational efficiency and gives us confidence for the future.

As our growth projects come on stream, and our existing mines
operate to tailored business plans, we remain confident of reaching our
long-term targets.

Safety

It is with deep regret that I report that two of our colleagues died
in work-related incidents during the quarter. Those who died
were: Matoane Thabana, a locomotive guard at Unisel and Andries
Bhambatha, water jet operator at Tshepong. I would like to extend my
deepest condolences to their families, friends and colleagues.

Operational and financial overview

The gold price received increased by 20.3% to R396 405/kg in the
September 2011 quarter from R329 536/kg received in the previous
quarter. The increase in the gold price resulted in revenues increasing
by 14.8% or R506.9 million. Operating profit for the September 2011
quarter increased by 45.0% (R405.7 million) to R1 306.4 million,
compared to the R900.7 million recorded in the June 2011 quarter.

Production for the September 2011 quarter was only slightly higher
than the previous quarter. Our targeted increase in production was
negatively impacted by the wage strike in August 2011, which resulted
in approximately 500kg being lost. As expected, higher electricity (due
to winter tariffs) and labour costs resulted in the R/kg costs being 9.2%
higher at R265 288/kg compared to R242 851/kg in the June 2011
quarter.

We continue to spend in a responsible manner, with total capital
expenditure for the September 2011 quarter decreasing by 16.4%
(R137.5 million) to R700.1 million, compared to the previous quarter
(R837.6 million).

Exploration

Wafi Transfer Exploration (Morobe Mining JV Exploration
(Harmony 50%)

Prospect development work continued at Zimake, and Bavaga on the
Wafi Transfer structure. Results received from Zimake have outlined
a significant new high tenor Cu-Au anomaly over a 1.5 km

area.

The anomaly is associated with a bulls-eye magnetic target, contains
surface soil results up to 0.5 g/t Au and 0.2% Cu, and is prospective for
porphyry copper-gold mineralisation similar to Golpu.

Papua New Guinea (PNG) exploration (Harmony 100%)

Drilling at the Mt Hagen project has intersected anomalous intervals
of porphyry copper style mineralisation and alteration. The drill core
contains disseminated chalcopyrite and molybdenum associated
with biotite-magnetite (potassic) altered metasediments and is highly

encouraging. Assays received to date resulted in 285m @ 0.1% Cu,
83 ppm Mo from 72m (PNDD001).

Wafi-Golpu

The resource drilling programme continues to target orebody extension
to the north and infill of deeper sections (indicatively in the Lift 2 and
Lift 3 cave zones). Geotechnical investigation drilling is continuing
along the access/conveyor decline route. Five drill rigs are currently at
work at Wafi-Golpu with two additional drill rigs that have arrived on
site that will commence drilling in the forthcoming quarter. Generally
the drilling results are confirming the resource shell as outlined in
the resource declaration (refer to the Integrated Annual Report
at www.harmony.co.za).

The results of the significant borehole were:

WR406 861m @ 1.51g/t Au, 1.48% Cu including 199m @ 2.87g/t Au
and 2.57% Cu from 1 286m (some assays are still pending).

Gold market

We remain bullish on the gold price, despite the recent fears that
there is a gold bubble. We believe that the gold price will continue to
strengthen as the fundamentals that drove the gold price up are still in
place. Gold remains an attractive investment and a currency in these
times of economic uncertainty. A number of record high gold prices
were seen throughout the first quarter, with a record level of around
$1 900/oz at the beginning of September 2011. Despite the sharp
decline in the gold price towards the end of September 2011, the Rand
gold price performed well due to the benefit of the weakening of the
R/$ exchange rate around the same time. Harmony’s South African
assets represent 92% of total production. The combination of a higher
gold price and a weaker Rand, as well as steady production worked to
our advantage during the quarter.

Conclusion

Harmony has a solid portfolio of producing assets and a successful
international exploration programme. The rapid progress we have
made in PNG, in particular, is proof of the benefits mining can deliver
in an enabling environment when all stakeholders work together. The
Wafi-Golpu project has the potential to change this company materially.

In addition, the exploration results in PNG have been pleasing and we
look forward to more exciting news from the region.

In the next few months we will be focussing on improving our grades,
as well as improving costs per tonnes milled – all in line with our
strategy, as well as progressing the pre-feasibility study at Wafi-Golpu.

Graham Briggs
Chief Executive Officer

Note:

Harmony updated the market on its strategy, operations and exploration on
24 August 2011. You are encouraged to view the presentations and information shared
at www.harmony.co.za to allow you to make an informed decision on your investment or
possible investment in Harmony.

Results for the period
ended 30 September 2011

Safety and health

Safety

Safety remains Harmony’s number one priority. To accelerate the
execution of Harmony’s safety and health strategy and to further
improve its safety performance, Harmony appointed Alwyn Pretorius
as the Executive for safety and health in August 2011, a newly created
executive position. Alwyn has more than 18 years’ experience in the
mining industry and has a good understanding of underground
conditions and the working environment our underground workers are
exposed to.

Our safety strategy includes behavioural aspects, competency training
and development, as well as research and new technologies. We
believe safety in the workplace can be addressed only through a
cooperative approach that ensures the right infrastructure is in place
– from systems and planning, to communication and training. We also
believe management and employees must accept joint responsibility for
their actions. It is therefore imperative that the working environment
empowers people – management, supervisors, workers and union
representatives – to stop work and withdraw from the mining area when
they feel it is unsafe, or prevent others from acting in an unsafe way.

Equally, safety is about attitudes and mindsets. We have renewed our
focus on implementing, communicating and reinforcing safety in the
workplace, and created a centralised safety function to coordinate
initiatives between regions and mines.

Given the high-risk nature of many of our deep-level operations, the
safety, health and well-being of our people are our foremost priority:
Safety is a key performance indicator for management and a key
component of performance reward for our people.

Tragically, two fatalities occurred at the South African operations during
the September 2011 quarter, which indicates that even more needs to
be done to ensure a safe working environment day after day.

We have made progress in terms of safety, with Harmony’s Lost Time
Injury Frequency Rate (LTIFR) (per million hours worked) remaining a
single digit, for the twelfth consecutive quarter. In South Africa, our
LTIFR improved by 6% quarter on quarter, from 9.64 to 9.06. The
Reportable Injury Frequency Rate (RIFR) (per million hours worked)

improved by 18% quarter on quarter (from 5.39 to 4.44). The Fatal
Injury Frequency Rate (FIFR) improved by 31% (0.17 to 0.09) quarter
on quarter.

Safety achievements for the quarter included:

South African (SA) underground
operations:

1 000 000 fatality free shifts

Harmony SA surface operations:

3 000 000 fatality free shifts

Kusasalethu:

500 000 fatality free shifts

Evander total operations:

1 000 000 fatality free shifts

Kalgold plant:

1 000 000 fatality free shifts

Target 1:

750 000 fatality free shifts

Phakisa:

500 000 fatality free shifts

Bambanani:

500 000 fatality free shifts

The following operations completed the quarter without an injury:

• Target plant

•

Harmony One plant

•

Free State commercial services and transport

• Evander workshops.

Health

The health and well-being of our workforce is essential to us, as they are
the cornerstone of our ongoing business success. We continually invest
in the wellness of our employees, through various health programmes
and initiatives to ensure the well-being of each employee. Our focus
is on preventative rather than curative health care and we encourage
employees to live a healthy lifestyle, through health education and
raising awareness. During the quarter our proactive approach to health
and wellness of our employees continued. Our objective remains to
improve health management programmes and effectively utilise clinical
information. This includes the review of policies, procedures and
processes as well as training. These efforts have resulted in improved
health and a better quality of life for our employees

See our Sustainable Development Report FY11 for more details on our
website www.harmony.co.za.

Financial overview

Operating profit increased by 45% to R1 306 million in the September
2011 quarter, with an increase in revenue being the main contributor.

Revenue

The increase in revenue from R3 422 million to R3 929 million is due
to a 14.3% higher US dollar gold price received and a weaker Rand,
with the average R/kg gold price received increasing over 20% to
R396 405/kg.

Cost of sales

Production cost is slightly higher at R2 623 million, mainly due to
increased winter electricity rates that resulted in a R133 million increase
in electricity cost for the quarter.

Employment termination and restructuring costs for the September
quarter amounted to R34 million. The cost is as a result of the
restructuring process at Bambanani shaft.

Reversal of impairment of investment in associate

The reversal of impairment of R48 million for the September 2011
quarter relates to foreign exchange movements relating to the

agreed sale of 40% of Rand Uranium (Pty) Limited to Gold One
International Limited.

Net loss on financial instruments

The loss for the September 2011 quarter is due to the changes in fair
value of the Nedbank Equity Linked Deposits held by the Environmental
Trusts.

Earnings per share

Basic earnings per share increased from a loss of 10 SA cents to earnings
of 111 SA cents per share. Headline earnings per share increased from
30 SA cents per share to 95 SA cents per share, an increase of 217%.

Property, plant and equipment

The increase in property, plant and equipment is largely due to currency
movements of R836 million as a result of the strengthening of the Kina
against the South African Rand. The corresponding entry was recorded
in other reserves through other comprehensive income.

Borrowings

Borrowings increased as a result of a net draw down of R100 million on
the Nedbank facility and a US$50 million draw down on the US dollar
Revolving Credit Facility.

Operational overview

GROUP RESULTS

September

June

Indicator Units

2011

variance

Tonnes 000

4 870

4 861

0.2

Grade g/t 2.09

2.08

0.5

Gold produced

10 207

10 152

0.5

Cash operating costs R/kg

265 288

242 851

(9.2)

Operating profit

R’000 1 306 437

900 734

45.0

Gold production for the September 2011 quarter remained stable at
10 207kg, despite the negative impact of the wage strike in August
2011, which resulted in an estimated loss of 500kg.

Grade remained steady at 2.09g/t.

Higher electricity costs due to two months of winter tariffs and labour
costs resulted in the R/kg costs being 9.2% higher at R265 288/kg.
In line with the wage agreement, cash operating costs now include a
profit share based on 1% of operating profits less capital expenditure
from Harmony’s South African assets, which amounted to R5.9 million.

Harmony’s profit levels were strengthened by a 20.3% increase in the
R/kg gold price received, resulting in a 45.0% increase in operating
profit to R1.3 billion.

BUILD-UP OPERATIONS

Doornkop

September

June

Indicator Units

2011

variance

Tonnes 000

277

234

18.4

Grade g/t

3.13

3.24

(3.4)

Gold produced

866

757

14.4

Cash operating costs

R/kg

270 487

239 316

(13.0)

Operating profit

R’000

118 607

68 250

73.8

Doornkop had another outstanding production quarter. Gold
production increased by 14.4% to 866kg, mainly due to tonnes milled
being 18.4% higher at 277 000 tonnes. The stockpile accumulated
during the two previous quarters was processed and added to the
increased production during the quarter.

Additional emphasis was placed on cleaning, which resulted in
an improved mine call factor (MCF) of 94%, up from 81% in the
previous quarter.

Cash operating costs increased to R270 487/kg due to higher electricity
costs and increased labour costs.

Higher production, combined with an increase in the gold price
received, resulted in operating profit being 73.8% higher during
the September 2011 quarter. This quarter marks the first quarter
of positive operating cash flow after capital since the commencement
of commercial production in May 2009.

Kusasalethu

September

June

Indicator Units

2011

variance

Tonnes 000

331

305

8.5

Grade g/t

4.69

5.20

(9.8)

Gold produced

1 554

1 586

(2.0)

Cash operating costs

R/kg

239 336

219 880

(8.8)

Operating profit

R’000

239 736

176 354

35.9

Tonnes milled were 8.5% higher at 331 000 quarter on quarter, which
countered a decrease in grade at 4.69g/t due to increased waste in the
system. Gold production was 2.0% lower at 1 554kg as a result.

Cash operating costs increased by 8.8% to R239 336/kg due to higher
electricity and labour costs.

A higher gold price received realised an operating profit of
R239.7 million.

Phakisa

September

June

Indicator Units

2011

variance

Tonnes 000

113

106

6.6

Grade g/t

4.65

4.45

4.5

Gold produced

526

472

11.4

Cash operating costs

R/kg

364 804

284 475

(28.2)

Operating profit

R’000

18 194

24 310

(25.2)

Phakisa achieved its third quarter of increased gold production, with
gold production being 11.4% higher quarter on quarter at 526kg, due
to an increase in both tonnes milled at 113 000 tonnes and recovery
grade at 4.65g/t.

Cash operating costs increased to R364 804/kg, as a result of increased
labour and electricity costs, as well as the change in classification of
commissioning costs to cash operating costs (which were formerly
capitalised).

An increase in gold produced and a higher gold price resulted in Phakisa
recording an operating profit of R18.1 million.

Hidden Valley (held in Morobe Mining Joint Venture – 50% of
attributable production reflected)

September

June

Indicator Units

2011

variance

Tonnes 000

415

420

(1.2)

Grade g/t

1.91

1.97

(3.0)

Gold produced

792

826

(4.1)

Cash operating costs

R/kg

206 563

238 644

13.4

Operating profit

R’000

115 633

59 904

93.0

Gold production at Hidden Valley was 4.1% lower quarter-on-quarter at
792kg primarily due to a lower gold grade. Silver production increased
by 11% to 6 860kg associated with a higher grade.

Results for the period
ended 30 September 2011

Mill throughput remained constrained for most of the quarter as a result
of the overland conveyor belt failure in March 2011. The rectification
work and recommissioning of the conveyor was completed during
September 2011 with operations expected to return to planned
production levels during the December 2011 quarter.

Cash operating costs were lower at R206 563/kg mainly due to the
increase in silver production, which is treated as a credit to costs.

Target 1

September

June

Indicator Units

2011

variance

Tonnes 000

210

168

25.0

Grade g/t

4.47

4.11

8.8

Gold produced

939

690

36.1

Cash operating costs

R/kg

223 578

269 323

17.0

Operating profit

R’000

160 102

51 169

>100

Target 1 had an excellent production quarter. Gold production increased
by 36.1% to 939kg as a result of the 25.0% increase in tonnes milled
and a higher recovery grade of 4.47g/t.

Increased production assisted in lowering cash operating costs by 17.0%
quarter on quarter to R223 578/kg, despite increases in electricity and
labour costs.

Operating profit increased more than threefold at R160.1 million, when
compared to the June 2011 quarter due to higher gold production and
an increase in the gold price received.

Target 3

September

June

Indicator Units

2011

variance

Tonnes 000

4.0

Grade g/t

3.09

3.65

(15.3)

Gold produced

241

274

(12.0)

Cash operating costs

R/kg

444 100

339 956

(30.6)

Operating (loss)/profit

R’000

(12 501)

930

>(100)

Tonnes milled increased by 4.0% to 78 000 tonnes. However, quarter
on quarter, the lower recovery grade resulted in gold production
decreasing by 12.0% to 241kg. The 15.3% decrease in the recovery
grade to 3.09g/t is attributable to lower B reef values, the increase in
stoping width at the Elsburg reef and shortage of Basal reef panels
in the sub-shaft. We are currently focussing on the B reef progress, using
pre-development reef slushers to identify high grade zones. A similar
approach is used at Masimong. The Elsburg reef will be undercut to only
expose the first and second band and leave the low grade third band in
the hanging wall.

Maintenance to increase the support of the brattice wall (the
cement wall dividing the shaft in two, a downcast area and an up
cast area for the air flow in the main shaft), together with increased
electricity and labour costs, resulted in a higher cash operating costs at
R444 100/kg for the September 2011 quarter. Higher grades and
production are expected when mining commences in the sub-shaft.

STEADY-STATE OPERATIONS

Tshepong

September

June

Indicator Units

2011

variance

Tonnes 000

287

327

(12.2)

Grade g/t

4.12

4.50

(8.4)

Gold produced

1 183

1 473

(19.7)

Cash operating costs

R/kg

263 276

209 333

(25.8)

Operating profit

R’000

161 493

179 753

(10.2)

Safety stoppages, the wage strike and a slow start-up after the wage
strike resulted in tonnes milled decreasing by 12.2% to 287 000 tonnes.
In addition, a lower recovery grade of 4.12g/t, due to more waste being
mined from the decline, resulted in lower gold production of 1 183kg.

Cash operating costs were 25.8% higher at R263 276/kg due to increases
in electricity costs and labour costs and the decrease in gold production
during the quarter. Despite a very challenging quarter at Tshepong, the
operation still managed to record a profit of R161.5 million.

Masimong

September

June

Indicator Units

2011

variance

Tonnes 000

232

190

22.1

Grade g/t

3.43

4.35

(21.1)

Gold produced

796

827

(3.7)

Cash operating costs

R/kg

277 340

214 694

(29.2)

Operating profit

R’000

99 157

95 776

3.5

Masimong increased its tonnes milled by 22.1% to 232 000 tonnes.
The waste pass system is currently under maintenance and therefore
all the waste was milled, resulting in a lower recovery grade of 3.43g/t.
Continued maintenance is expected to continue during the next three
quarters, which will result in lower recovery grades.

Cash operating costs increased to R277 340/kg. The 29.2% increase is
attributed to higher electricity costs, labour costs and plant costs due to
higher volumes processed during the quarter.

Masimong has the potential to reach their production targets as before.
The focus on the grade, especially the B reef, is important and is
monitored in the form of a short interval control system.

Evander

September

June

Indicator Units

2011

variance

Tonnes 000

123

132

(6.8)

Grade g/t

6.94

5.68

22.2

Gold produced

854

750

13.9

Cash operating costs

R/kg

208 597

205 235

(1.6)

Operating profit

R’000

154 944

88 615

74.9

Evander demonstrated its transformation in yet another quarter
with gold production being 13.9% higher at 854kg and achieving a
much higher recovery grade of 6.94g/t. The higher recovery grade is
attributable to the increase in face grade, as more mining crews moved
into the main payshoot of the decline section.

Cash operating costs remained stable at R208 597/kg, with increased
production offsetting the effect of higher labour costs and electricity
increases during the quarter. Higher production and an increase in the
gold price received resulted in an increase of 74.9% in operating profit
to R154.9 million.

OTHER OPERATIONS

Bambanani

September

June

Indicator Units

2011

variance

Tonnes 000

112

(17.9)

Grade g/t

5.02

6.56

(23.5)

Gold produced

462

735

(37.1)

Cash operating costs

R/kg

437 706

302 668

(44.6)

Operating (loss)/profit

R’000

(25 696)

25 032

>(100)

Bambanani has struggled to meet its production targets and to curb its
costs for a number of quarters. It was subsequently decided – in line with
Harmony’s stated strategy to restructure for safe, profitable and quality
ounces – to halt mining in the sub shaft. The current activities on the
mine have moved from the deeper operating areas to the acceleration
of the development of the shaft pillar. We mitigated the effect of the
restructuring on jobs by redeploying the majority of the employees to
our operations in build-up.

Although the decision impacted on the past quarter’s production,
production and profits in the long term will improve. Tonnes milled
decreased by 17.9% to 92 000, while grade and gold production
reduced to 5.02g/t and 462kg. The lower production levels and higher
electricity costs resulted in a 44.6% increase in cash operating costs;
with an operating loss of R25.7 million being recorded.

Steyn 2

September

June

Indicator Units

2011

variance

Gold produced

33.3

The decision to restructure Bambanani also impacted Steyn 2 and mining
of the decline section was terminated and our focus moved to the shaft
pillar. An increase in gold production of 33.3% quarter-on-quarter at
36kg was recorded. The shaft pillar is delivering higher face grades.

Joel

September

June

Indicator Units

2011

variance

Tonnes 000

147

121

21.5

Grade g/t

4.70

3.70

27.0

Gold produced

691

448

54.2

Cash operating costs

R/kg

202 729

259 121

21.8

Operating profit

R’000

134 010

34 627

>100

Joel delivered an exceptional quarter, with improvements in all
production measures. An increase of 27.0% in recovery grade together
with an increase of 21.5% in tonnes milled resulted in a 54.2% increase
in gold production at 691kg.

Joel recorded the lowest cash operating cost in the company for the
quarter at R202 729/kg, which represents a 21.8% improvement
quarter on quarter. As a result an operating profit of R134.0 million
was achieved, supported by favourable gold price received during the
September 2011 quarter.

Unisel

September

June

Indicator Units

2011

variance

Tonnes milled

000

106

(13.2)

Grade g/t

3.70

3.96

(6.6)

Gold produced

340

420

(19.0)

Cash operating costs

R/kg

360 400

255 486

(41.1)

Operating profit

R’000

15 341

31 884

(51.9)

Unisel lost twenty days of production due to safety stoppages and the
wage strike. Tonnes milled decreased by 13.2% and with grade 6.6%
lower at 3.7g/t, gold production was 19.0% lower at 340kg.

Grade at Unisel is variable when moving further to the south, due to the
ratio between the Basal reef and Leader reef. The Leader reef is present
which varies more than the Basal reef and will be closely monitored.
The continued increase in seismicity in the decline section of Unisel,
together with resulting damages in the footwall excavations, are being
closely monitored.

Cash operating costs deteriorated to R360 400/kg owing to significant
decreases in production, increased electricity and labour costs. A higher
gold price resulted in an operating profit of R15.3 million being recorded
for the September 2011 quarter.

SURFACE OPERATIONS (South Africa)

September

June

Indicator Units

2011

variance

Tonnes 000

2 473

2 565

(3.6)

Grade g/t 0.37

0.34

8.8

Gold produced

Kg 927

867

6.9

Cash operating costs R/kg

263 671

268 657

1.9

Operating profit

R’000

127 417

64 130

98.7

Surface sources achieved a 6.9% increase in gold production due to an
8.8% increase in the recovery grade at 0.37g/t. The increase is mainly
attributable to the Phoenix tailings which recorded a much higher
recovery grade when compared to the June 2011 quarter. Tonnes mined
and treated decreased to 2 473 000.

Cash operating costs quarter on quarter remained stable at

R263 671/kg. Operating profits generated almost doubled to
R127.4 million in comparison to the previous quarter, due to the higher
gold price received.

Results for the period
ended 30 September 2011

Kalgold

September

June

Indicator Units

2011

variance

Tonnes 000

364

392

(7.1)

Grade g/t

0.74

0.69

7.2

Gold produced

270

0.0

Cash operating costs

R/kg

337 615

311 819

(8.3)

Operating profit

R’000

20 401

18 247

11.8

Recovery grade was 7.2% higher quarter on quarter at 0.74g/t and
tonnes milled 7.1% lower at 364 000 tonnes, resulting in the gold
production remaining steady at 270kg.

During the past quarter the cash operating costs increased to

R337 615/kg, due to increased labour and electricity costs. An operating
profit of R20.4 million was generated during the quarter; mainly due to
the increased gold price received.

The pre-primary crushers broke down and will be repaired during the
next three months. Ore will be crushed by two mobile plants. Any
decrease in throughput will be mitigated by feeding higher grade
material from the stock pile. A task team of external and internal
experts has been assembled to evaluate the Kalgold plant and prepare
an action plan to catch up on backlog maintenance and to implement
improvements. Gold production in the next quarterly is likely to be more
or less the same as during the September 2011 quarter.

Phoenix (tailings)

September

June

Indicator Units

2011

variance

Tonnes

000

1 365

1 247

9.5

Grade g/t

0.16

0.11

45.5

Gold produced

215

137

56.9

Cash operating costs

R/kg

235 051

297 029

20.9

Operating profit

R’000

34 773

5 169

>100

An increase in tonnes milled and grade at 1 365 000 tonnes and 0.16g/t
respectively, resulted in gold production being 56.9% higher at 215kg.

Cash operating costs at R235 051/kg was 20.9% lower quarter on
quarter due to higher gold production, whilst an operating profit of
R34.8 million was generated.

Surface dumps

September

June

Indicator Units

2011

variance

Tonnes 000

744

926

(19.7)

Grade g/t

0.59

0.50

18.0

Gold produced

442

460

(3.9)

Cash operating costs

R/kg

232 423

234 874

1.0

Operating profit

R’000

72 243

40 714

77.4

Treatment of tonnes at the surface dumps decreased to 744 000 tonnes,
countered, with an increase in the recovery grade to 0.59g/t, resulting in
lower gold production at 442kg.

Higher gold prices received, resulted in an operating profit of
R72.2 million.

Development

The main object of development is to develop the known orebody to be able to exploit the orebody to its full potential.

A development programme is vital in the life of a mine. The on reef development on a shaft is an indication of the grades that will be mined in future.
Important information is derived, such as expected geological structures, dip of the ore body and the channel width.

Depending on the shaft layout – such as raise line length and spacing – ledging and stoping will take place in approximately 18 to 36 months after
on reef development.

Therefore, the target areas for development are extremely important to prove the existence of ore of sufficient mineral content to mine profitably and
to continuously upgrade the resources to reserves.

Mineral reserves block grades vs development grades

Note: The ore reserve block grades reflect the grades of the blocks in the life-of-mine plans for the various operations. These blocks are to a large degree the blocks above

a certain cut-off grade that has been targeted for mining. The development grades are those as sampled in the ongoing on-reef development at the operations
and no selectivity has been applied from a grade point of view.

Doornkop

The South reef development grades remained above 1 000 cmg/t in
line with the previous quarter and the rolling four quarter grade is now
slightly above the reserve grade. No on-reef development was planned
for the Kimberly reef.

Kusasalethu

The quarter on quarter development grade has improved and continues
to return grades that are in line with the overall ore body grade and as
predicted for the areas that are being developed.

Phakisa

The development towards the north continues to show positive results
in line with expectation. During the quarter under review, the overall
development grades improved to above 1 000 cmg/t despite most of
the development at Phakisa still taking place in the lower grade central
block.

Masimong

Basal reef and B reef development grades were lower on a quarterly
basis. On the Basal reef the reason for lower grade is due to lower
values sampled in the new development to the south of the mine, while
on the B reef a wide raise had to continue in an out-of-channel area for
the purpose of top ventilation holing.

Target (narrow reef mining)

Quarter on quarter there was a decrease in development grades of the
narrow reef mining section at Target 1 shaft due to the very erratic
nature of the specific area being developed. At Target 3 there has
been a steady improvement in metres developed quarter on quarter.
However, no Basal reef development took place during the quarter due
to the delay of getting back into the Basal reef areas of the sub-shaft.
The development done on the A reef and B reef is very encouraging and
returned better than expected values.

Tshepong

In general the Basal reef development grades have increased quarter on
quarter, while the grades on the B reef were lower. The development
focus at Tshepong remains the development of new and existing raise
lines on the Basal reef in the higher grade decline area where most of
the future mining at the mine will take place.

Bambanani

Most of the development is taking place in the shaft pillar where the
development grade remains above 3 000 cmg/t, which is in line with
expectations.

Results for the period
ended 30 September 2011

Exploration

International (Papua New Guinea)

Morobe Mining Joint Venture (50% Harmony)

Wafi-Golpu

Drilling continues to confirm the world class nature of the mineral
endowment. Early indications from metallurgical test work programs
are confirming excellent recoveries and product grades. Two large
capacity drill rigs arrived in Lae and will extend the drill fleet to eight
rigs in latter part of Quarter 2.

Early construction activities have continued including an expansion of
camp facilities to support an increase in the drilling and construction
workforce with two of the additional three drill rigs now in country.

Construction and improvement of the access road to the proposed site
continued during the quarter and stakeholder engagement with the
community, landowners and various government agencies is ongoing.

The pre-feasibility study remains on schedule for completion in the first
half of calendar 2012 and commencement of the detailed feasibility
study by mid-2012.

Evander 8

There was an improvement in the quarter on quarter development
grade with the rolling four quarter grade now matching the reserve
grade. The reserve at Evander is now made up of the Kinross payshoot
in the decline area of the mine where the grades in the raise lines being
developed remained in line with expectations.

Joel

There was a slight decrease in the development grades quarter on
quarter which is in line with the grade variability expected of the ore
body. The grade in the winzes being developed from 121 level to
129 level, in the very prospective north-western portion of the mine,
remains good.

Virginia (Unisel)

At Unisel, the development grade of the Basal reef is in line with
expectations, while the Leader reef grade was lower than expected. In
some areas in the decline section the separation between the Middle
reef and Basal reef is less than one meter and they are being developed
jointly and will be mined as such.

(1) Refer to Harmony’s annual statement

of Mineral resources and reserves at
30 June 2011. Resource figures quoted on
100% basis.

(2) Incomplete intersection reported.

Figure 2: PNDD001; 599m. Biotite altered

metasediments with quartz vein stockwork
containing chalcopyrite, molybdenum, pyrite
and magnetite. Assays pending.

During the quarter, drilling at Wafi-Golpu focused on increasing the level
of confidence in the geological model within the central and northern
parts of the porphyry system to support a future reserve upgrade and
the pre-feasibility study. Significant results include:

•

WR396_W2:

223m @ 0.61% Cu, 0.40g/t Au from 1 299m

•

WR402:

160m @ 0.51% Cu, 0.18g/t Au from 490m

•

WR405:

707m @ 0.53% Cu, 0.49g/t Au from 771m

including 126m @ 0.73% Cu

and 0.23g/t Au from 1 092m

• WR406

(1)

417m @ 1.49% Cu, 1.65g/t Au from 958m

The Golpu system has been extended at depth where drillhole WR406,
designed to test 200m below the high grade intersection within WR377
(883m at 2.23g/t Au and 2.15% Cu), intersected 417m at 1.65g/t Au
and 1.49%Cu. Mineralisation remains open to the north and at depth
and step out drilling targeting the northern extent of the high grade
mineralisation is in progress.

(1) Partial result

Wafi structural corridor

Zimake (EL1590)

Results received for broad spaced ridge and spur soil sampling at
Zimake target has defined a +1.5 km² Cu-Au anomaly coincident with
a circular magnetic anomaly. Copper and gold geochemistry in soil and
rock chips correlate extremely well with values ranging up to 0.5 g/t Au
and 0.2% Cu. The metal association from the soil indicates possible
porphyry copper + gold mineralisation at depth.

Fieldwork including grid based soil sampling and mapping is underway
to assist with drill targeting.

Hidden Valley district exploration

At Hidden Valley, drilling continued to increase the confidence in the
mineral resource within the Kaveroi lode and test the down dip and
strike extensions of Hidden Valley and Kaveroi lodes. The mineralisation
in this direction has now been confirmed.

Significant results include:

•

HVDD106 8m @ 11g/t Au and 12g/t Ag from 170m

•

HVDD107 12m @ 2.1g/t Au and 8g/t Ag from 274m

•

HVDD108 26m @ 1.2g/t Au and 7g/t Ag from 263m

Results from drill testing of the Hamata deposit confirm the presence
of mineralisation down dip of the current Inferred Resource boundary.
Significant intersections include:

•

HMDD005 43.5m @ 4.7g/t Au from 24.5m

•

HMDD009 13m @ 6.4g/t Au from 47m

• HMDD010 13m @ 8.7g/t Au from 49m and 7m @ 6.4g/t Au

from 241m

•

HMDD011 12.3m @ 4.9g/t Au from 45m

PNG Exploration (Harmony 100%)

Mount Hagen project (EL1611 and EL1596)

Exploration work at Mt Hagen remained focused on drill testing at the
Kurunga Intrusive Complex (KIC). Exploration activities also included
ridge and spur soil sampling and detailed mapping at the Ugti Creek,
Mt Maragabui, and Rulna Prospects (495 samples), although results to
date for these prospects have not warranted additional follow-up.

Bakil Prospect (EL1611)

No geological field work was undertaken during the quarter although
drill pads for two holes were prepared ahead of drill testing scheduled
for Q2FY12.

Kurunga Prospect (EL1596) and Penamb Prospect (EL1596)

Drilling to test Cu-Au-Mo anomalism associated with the KIC continued
during the quarter with three holes for 1 160m completed. Drilling
progressed to the Penamb anomaly where geology encountered was
extremely encouraging.

The drilling intersected a mineralised potassic vein stockwork with an
increase in disseminated chalcopyrite. This potassic zone transitions into
200m of phyllic stockwork to end of hole. This clear shift from outer
potassic to phyllic alteration zones suggests potential and proximity of a
significant mineralised Cu-Mo-Au system.

Vein mineralogies include quartz-pyrite-molybdenite-magnetite±
chalcopyrite, quartz-carbonate-pyrite-sericite and quartz-anhydrite-
pyrite-sericte, which is also highly encouraging.

Assays received to date resulted in 285m @ 0.1% Cu, 83 ppm Mo from
72m (PNDD001).

Results for the period
ended 30 September 2011

Operating results (Rand/Metric) (US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Three

Total

South

Inter-

months

Kusasa-

Under-

Total

Africa

Hidden

national

Harmony

ended

Bambanani

Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn 2

Target 1

Target 3

Tshepong

Unisel

ground

Kalgold

Phoenix

Dumps

Surface Other Total Valley Other Total

Ore milled

– t’000

Sep-11

92 277 123 147 331 232 113

– 210 78 287 92

1 982 364

1 365 744

2 473 –

4 455 415

–

4 870

Jun-11

112 234 132 121 305 190 106

– 168 75 327 106

1 876 392

1 247 926

2 565 –

4 441 420

– 4 861

Gold produced

– kg

Sep-11

462 866 854 691

1 554 796 526 36 939 241

1 183 340

8 488 270 215 442 927 –

9 415 792

–

10 207

Jun-11

735 757 750 448

1 586 827 472 27 690 274

1 473 420

8 459 270 137 460 867 –

9 326 826

– 10 152

Gold produced

– oz

Sep-11

14 854 27 843 27 457 22 216 49 962 25 592 16 911 1 157 30 190 7 748 38 034 10 931

272 895 8 681 6 912 14 211 29 804

– 302 699 25 463 –

328 162

Jun-11

23 631 24 338 24 113 14 404 50 991 26 589 15 175

868 22 184 8 809 47 358 13 503

271 963 8 681 4 405 14 789 27 875

– 299 838 26 556

– 326 394

Yield

– g/tonne

Sep-11

5.02 3.13 6.94 4.70 4.69 3.43 4.65

– 4.47 3.09 4.12 3.70 4.26 0.74 0.16 0.59 0.37

– 2.11 1.91

– 2.09

Jun-11

6.56 3.24 5.68 3.70 5.20 4.35 4.45

– 4.11 3.65 4.50 3.96 4.49 0.69 0.11 0.50 0.34

– 2.09 1.97

– 2.08

Cash operating

– R/kg

Sep-11

437 706 270 487 208 597 202 729 239 336 277 340 364 804

– 223 578 444 100 263 276 360 400 270 969 337 615 235 051 232 423 263 671 –

270 247

206 563 –

265 288

costs

Jun-11

302 668 239 316 205 235 259 121 219 880 214 694 284 475

– 269 323 339 956 209 333 255 486 240 610 311 819 297 029 234 874 268 657

– 243 225 238 644

– 242 851

Cash operating

– $/oz

Sep-11

1 907 1 178 909 883 1 043 1 208 1 589

– 974 1 935 1 147 1 570 1 180 1 471 1 024 1 013 1 149

– 1 177 900

– 1 156

costs

Jun-11

1 389 1 099 942 1 190 1 009 986 1 306

– 1 236 1 561 961 1 173 1 105 1 431 1 363 1 078 1 233

– 1 117 1 096

– 1 115

Cash operating

– R/tonne

Sep-11

2 198 846 1 448 953 1 124 952 1 698

– 1 000 1 372 1 085 1 332 1 156 250

37 138

–

569 394

– 554

costs

Jun-11

1 986 774 1 166 959 1 143 934 1 267

– 1 106 1 242 943 1 012 1 081 215

33 117

–

509 469

– 506

Gold sold

– kg

Sep-11

457 860 841 710

1 462 786 520 36 927 238

1 170 336

8 343 269 223 448 940 –

9 283 665

–

9 948

Jun-11

758 762 727 480

1 583 854 487 27 756 300

1 520 434

8 688 354 137 460 951 –

9 639 773

– 10 412

Gold sold

– oz

Sep-11

14 693 27 650 27 039 22 827 47 004 25 270 16 718 1 157 29 804 7 652 37 616 10 803

268 233 8 649 7 170 14 404 30 223

– 298 456 21 380 –

319 836

Jun-11

24 370 24 499 23 374 15 432 50 895 27 457 15 657

868 24 306 9 645 48 869 13 953

279 325 11 381 4 405 14 789 30 575

– 309 900 24 852

– 334 752

Revenue

(R’000)

Sep-11

175 069 348 165 329 960 282 825 575 039 314 230 205 781

– 366 466 92 696 466 248 135 929

3 292 408 108 833 89 235 179 650 377 718 –

3 670 126

259 038 –

3 929 164

Jun-11

249 573 251 188 239 907 158 441 521 415 281 110 160 566

– 248 583 98 673 499 685 142 338

2 851 479 116 059 45 336 151 481 312 876

–

3 164 355 257 876

– 3 422 231

Cash operating

(R’000)

Sep-11

202 220 234 242 178 142 140 086 371 928 220 763 191 887

– 209 940 107 028 311 456 122 536

2 290 228 91 156 50 536 102 731 244 423 –

2 534 651

163 598 –

2 698 249

costs Jun-11

222 461 181 162 153 926 116 086 348 730 177 552 134 272

– 185 833 93 148 308 348 107 304

2 028 822 84 191 40 693 108 042 232 926

–

2 261 748 197 120

– 2 458 868

Inventory

(R’000)

Sep-11

(1 455)

(4 684)

(3 126)

8 729 (36 625)

(5 690)

(4 300)

– (3 576)

(1 831)

(6 701)

(1 948)

(61 207)

(2 724)

3 926 4 676 5 878

– (55 329)

(20 193)

–

(75 522)

movement

Jun-11

2 080 1 776 (2 634) 7 728 (3 669) 7 782 1 984

– 11 581 4 595 11 584 3 150 45 957 13 621

(526) 2 725 15 820

– 61 777

852

– 62 629

Production costs

(R’000)

Sep-11

200 765 229 558 175 016 148 815 335 303 215 073 187 587

– 206 364 105 197 304 755 120 588

2 229 021 88 432 54 462 107 407 250 301 –

2 479 322

143 405 –

2 622 727

Jun-11

224 541 182 938 151 292 123 814 345 061 185 334 136 256

– 197 414 97 743 319 932 110 454

2 074 779 97 812 40 167 110 767 248 746

–

2 323 525 197 972

– 2 521 497

Operating profit*

(R’000)

Sep-11

(25 696)

118 607 154 944 134 010 239 736 99 157 18 194

– 160 102 (12 501)

161 493

15 341 1 063 387

20 401

34 773

72 243 127 417

– 1 190 804 115 633

– 1 306 437

Jun-11

25 032 68 250 88 615 34 627

176 354 95 776 24 310

– 51 169

930

179 753 31 884

776 700 18 247 5 169 40 714 64 130

– 840 830 59 904

– 900 734

Operating profit*

($’000)

Sep-11

(3 599)

16 611 21 702 18 768 33 578 13 888 2 548

– 22 424 (1 751)

22 619 2 148

148 936 2 857 4 869

10 118

17 844

–

166 780

16 195

–

182 975

Jun-11

3 694 10 074 13 080 5 110 26 029 14 135 3 588

– 7 552

137 26 530 4 706

114 635 2 693

763 6 009 9 465

– 124 100 8 842

– 132 942

Capital

(R’000)

Sep-11

43 790 64 717 37 580 13 227 97 564 50 101 73 938 32 907 62 600 11 899 58 700 15 689

562 712 9 635

63 12 647 22 345 5 771 590 828 39 937 69 337

700

102

expenditure**

Jun-11

52 308 70 860 50 484 18 350

105 246 48 441 93 305 37 490 76 220 14 189 72 124 16 440

655 457 5 765 5 526 22 655 33 946 21 311

710 714

76 972

49 954

837 640

Capital

($’000)

Sep-11

6 133 9 064 5 263 1 853

13 665 7 017

10 356 4 609 8 768 1 667 8 222 2 197

78 814 1 349

9 1 771 3 129 808 82 751 5 594 9 711

056

expenditure**

Jun-11

7 720 10 458 7 451 2 708 15 534 7 150 13 771 5 533 11 250 2 094 10 645 2 426 96 740

851

816 3 344 5 011 3 145 104 896 11 361

7 373

123 630

Production statistics for Steyn 2 have been included. This mine is in a build-up phase and revenue and costs are currently capitalised, until commercial
production levels are reached.
* Operating profit is comparable to the term production profit in the segment report in the nancial statement and not to the operating profit line item
in the income statement.
** The total capital expenditure reported in the June 2011 quarter was R787.7 million (US$116.3 million), which excluded the capital expenditure for
International other.

Results for the period
ended 30 September 2011

CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand)

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

Note

(Unaudited)

(Audited)

Continuing operations

Revenue

3 929

3 422

3 083

12 445

Cost of sales

(3 192)

(3 491)

(2 995)

(11 615)

Production costs

(2 623)

(2 521)

(2 431)

(9 170)

Amortisation and depreciation

(475)

(477)

(426)

(1 776)

Impairment of assets

– (264)

Employment termination and restructuring costs

(34)

– (78)

(158)

Other items

(60)

(229)

(60)

(247)

Gross

profit/(loss)

737 (69) 88 830

Corporate, administration and other expenditure

(84)

(71)

(94)

(354)

Social investment expenditure

(15)

(18)

(16)

(84)

Exploration expenditure

(97)

(102)

(99)

(353)

Profit on sale of property, plant and equipment

26 5 16 29

Other income/(expenses) – net

18 33 (54)

(24)

Operating profit/(loss)

585

(222)

(159)

Loss from associates

– – (8)

(51)

Reversal of impairment/(impairment) of investment in associate

48 18 –

(142)

Net (loss)/gain on financial instruments

(26)

22 38

141

Gain on farm-in option

–

– 273 273

Investment income

16 24 14

140

Finance cost

(73)

(89)

(59)

(288)

Profit/(loss) before taxation

550

(247)

117

Taxation

(72)

205 6

480

Normal taxation

(40)

10 (9)

(12)

Deferred taxation

(32)

195 15

492

Net profit/(loss) from continuing operations

478

(42)

105

597

Discontinued operations

(Loss)/profit from discontinued operations

– – (3)

Net profit/(loss) for the period

478

(42)

102

617

Attributable to:
Owners of the parent

478 (42)

102 617

Non-controlling interest

– – – –

Earnings/(loss) per ordinary share (cents)

Earnings/(loss) from continuing operations

111 (10)

24 139

(Loss)/earnings from discontinued operations

– – (1)

Total earnings/(loss) per ordinary share (cents)

111

(10)

144

Diluted earnings/(loss) per ordinary share (cents)

Earnings/(loss) from continuing operations

111 (10)

24 139

(Loss)/earnings from discontinued operations

– – (1)

Total diluted earnings/(loss) per ordinary share (cents)

111

(10)

144

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand)

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Net profit/(loss) for the period

478

(42)

102

617

Other comprehensive income for the period, net of income tax

955 418 106 368

Foreign exchange translation

924 473 106 470

Fair value movement of available-for-sale investments

(55)

– (102)

Total comprehensive income for the period

1 433

376

208

985

Attributable to:
Owners of the parent

433 376 208 985

Non-controlling interest

– – – –

The accompanying notes are an integral part of these condensed consolidated financial statements.

Results for the period
ended 30 September 2011

CONDENSED CONSOLIDATED BALANCE SHEETS (Rand)

At At At

30 September

30 June

30 September

2011 2011 2010

Figures in million

Note

(Unaudited)

(Audited)

(Unaudited)

ASSETS

Non-current assets

Property, plant and equipment

32 278 31 221 29 873

Intangible assets

2 171 2 170 2 199

Restricted cash

31 31

116

Restricted investments

1 860 1 883 1 787

Investments in associates

– –

377

Deferred tax assets

1 287 1 149 734

Investments in financial assets

215 185 296

Inventories

168 172 237

Trade and other receivables

24 23 67

Total

non-current

assets

38 034 36 834 35 686

Current assets

Inventories

1 006 837 902

Trade and other receivables

876 1 073 649

Income and mining taxes

100 139 73

Cash and cash equivalents

1 325 693 772

3 307 2 742 2 396

Assets of disposal groups classified as held-for-sale

314 268

–

Total

current

assets

3 621 3 010 2 396

Total assets

41 655 39 844 38 082

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

28 314 28 305 28 269

Other reserves

1 741 762 395

Retained earnings

1 313 1 093 578

Total equity

31 368 30 160 29 242

Non-current liabilities

Deferred tax liabilities

4 300 4 216 4 306

Provision for environmental rehabilitation

2 046 1 971 1 723

Retirement benefit obligation and other provisions

174 174 169

Borrowings

1 684 1 229 970

Total non-current liabilities

8 204

7 590

7 168

Current liabilities

Borrowings

331 330 207

Income and mining taxes

3 2

Trade and other payables

1 733 1 746 1 452

2 067 2 078 1 672

Liabilities of disposal groups classified as held-for-sale

16 16 –

Total

current

liabilities

2 083 2 094 1 672

Total equity and liabilities

41 655

39 844

38 082

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand) (Unaudited)

for the three months ended 30 September 2011

Other

Retained

Figures in million

Note

capital

reserves

earnings

Total

Balance – 30 June 2011

28 305

762

1 093

30 160

Issue of shares

9 – – 9

Share-based payments

– 24 – 24

Net profit for the period

–

– 478 478

Other comprehensive income for the period

– 955

Dividends paid

– –

(258)

Balance – 30 September 2011

28 314

1 741

1 313

31 368

Balance – 30 June 2010

261 258 690

209

Issue of shares

8 – – 8

Share-based payments

– 31 – 31

Net profit for the period

– –

102

Other comprehensive income for the period

– 106

Dividends paid

– –

(214)

Balance – 30 September 2010

28 269

395

578

29 242

The accompanying notes are an integral part of these condensed consolidated financial statements.

Results for the period
ended 30 September 2011

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand)

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Cash flow from operating activities
Cash generated by operations

1 092 1 052 703 2

418

Interest and dividends received

16 24 14

140

Interest paid

(41)

(35)

(30)

(134)

Income and mining taxes paid

– (19)

(4)

(45)

Cash generated by operating activities

1 067

1 022

683

2 379

Cash flow from investing activities
(Increase)/decrease in restricted cash

– (4)

30 116

Proceeds on disposal of investment in subsidiary

–

– 229 229

Proceeds on disposal of available-for-sale financial assets

– – –

Prepayment for Evander 6 and Twistdraai transaction

– 100

Other investing activities

– (10)

10 (5)

Net additions to property, plant and equipment

(668)

(829)

(748)

(3 110)

Cash utilised by investing activities

(668)

(743)

(479)

(2 654)

Cash flow from financing activities
Borrowings raised

799 150

– 925

Borrowings repaid

(352)

(415)

(7)

(546)

Ordinary shares issued – net of expenses

9 15 8 44

Dividends paid

(258)

– (214)

(214)

Cash generated/(utilised) by financing activities

198

(250)

(213)

209

Foreign currency translation adjustments

(11)

Net increase/(decrease) in cash and cash equivalents

632 37 2 (77)

Cash and cash equivalents – beginning of period

693 656 770 770

Cash and cash equivalents – end of period

1 325

693

772

693

The accompanying notes are an integral part of these condensed consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2011 (Rand)

1. Accounting policies

Basis of accounting

The condensed consolidated financial statements for the three months ended 30 September 2011 have been prepared in accordance with
IAS 34, Interim Financial Reporting, JSE Listings Requirements and in the manner required by the Companies Act of South Africa. They should
be read in conjunction with the annual financial statements for the year ended 30 June 2011, which have been prepared in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are
consistent with those described in the annual financial statements, except for the adoption of applicable revised and/or new standards issued
by the International Accounting Standards Board.

Cost of sales

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Production costs

2 591

2 508

2 408

9 074

Royalty expense

32 13 23 96

Amortisation and depreciation

475 477 426

776

Impairment of assets

(1)

– 264

Rehabilitation expenditure

5 61 4 74

Care and maintenance cost of restructured shafts

31 37 25

124

Employment termination and restructuring costs

(2)

34 –

158

Share-based payments

24 45 31

136

Other

(3)

– 86 – (87)

Total cost of sales

3 192

3 491

2 995

11 615

(1) During the June 2011 quarter, an impairment of R264 million relating to President Steyn 1 and 2 shafts and St Helena was recorded.

(2) The amount of R34 million in September 2011 quarter relates to restructuring at the Bambanani shaft.

(3) Included in Other for the June 2011 quarter is R41 million for the write down of the Steyn plant demolishment project.

3. Exploration expenditure

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Total exploration expenditure

105 111 106 398

Less: Expenditure capitalised

(1)

(8)

(9)

(7)

(45)

Exploration expenditure per income statement

102

353

(1) Relates to brownfields exploration at Hidden Valley.

Property, plant and equipment

During the September quarter the Rand had weakened over 20% against the Kina and resulted in an increase of R836 million in the carrying
amount. The corresponding entry was recorded in other reserves through other comprehensive income.

Disposal groups classified as held for sale and discontinued operations

Investment in associate

The investment in Rand Uranium has been classified as held for sale following a decision by the shareholders of the company to commence
with a process to sell the company. In terms of the binding offer accepted by the shareholders on 21 April 2011, the capital portion of the
subordinated shareholder’s loan of R61 million due to the group will be repaid out of the sale proceeds. The group’s attributable portion of
the sale proceeds amounts to US$37.25 million. The investment is carried at the lower of carrying value and fair value less cost to sell. At each
reporting date, the carrying value is remeasured for possible impairment or reversal of impairment. An impairment of R142 million has been
recognised for the 2011 year. During September 2011 quarter, a reversal of impairment of R48 million was recognised resulting from changes
in the US$/R exchange rate.

Results for the period
ended 30 September 2011

Earnings/(loss) and net asset value per share

Earnings/(loss) per share is calculated on the weighted average number of shares in issue for the three months ended 30 September 2011:
430.1 million (30 June 2011: 430.0 million, 30 September 2010: 428.7 million), and the year ended 30 June 2011: 429.3 million.

The diluted earnings/(loss) per share is calculated on weighted average number of diluted shares in issue for the three months ended
30 September 2011: 431.6 million (30 June 2011: 431.4 million, 30 September 2010: 429.9 million), and the year ended 30 June 2011:
430.4 million.

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

(Unaudited)

(Audited)

Total earnings/(loss) per share (cents):

Basic earnings/(loss)

111 (10)

23 144

Diluted earnings/(loss)

111 (10)

23 144

Headline earnings

95 30 33

223

– from continuing operations

95 30 33

223

– from discontinued operations

– – – –

Diluted headline earnings

95 30 33

222

– from continuing operations

95 30 33

222

– from discontinued operations

– – – –

Figures in million

Reconciliation of headline earnings:

Continuing operations

Net profit/(loss)

478 (42)

105 597

Adjusted for:
Profit on sale of property, plant and equipment

(26)

(5)

(16)

(29)

Taxation effect of profit on sale of property, plant and equipment

7 1 5 7

Net gain on financial instruments

– (6)

– (7)

Taxation effect of net gain on financial instruments

– 2 – 2

(Reversal of impairment)/impairment of investment in associate*

(48)

(18)

– 142

Foreign exchange loss reclassified from other comprehensive income*

– – 47 47

Impairment of assets

– 264

Taxation effect of impairment of assets

– (66)

Headline

earnings

411 130 141 957

Discontinued operations

Net (loss)/profit

– – (3)

Adjusted for:
Profit on sale of investment in subsidiary

– –

(138)

Taxation effect of profit on sale of investment in subsidiary

– – 34 34

Foreign exchange loss reclassified from other comprehensive income

–

107

Headline

earnings

– – – –

Total

headline

earnings

411 130 141 957

* There is no taxation effect on these items.

Net asset value per share (cents)

At At At

30 September

30 June

30 September

2011 2011 2010

(Unaudited) (Audited)

(Unaudited)

Number of shares in issue

430 272 715

430 084 628

428 850 584

Net asset value per share (cents)

7 290

7 013

6 819

7. Borrowings

At At At

30 September

30 June

30 September

2011 2011 2010

Figures in million

(Unaudited) (Audited)

(Unaudited)

Total long-term borrowings

1 684

1 229

970

Total current portion of borrowings

331 330 207

Total borrowings

(1) (2)

2 015

1 559

1 177

(1) At 30 September 2011, R300 million (30 June 2011: R400 million, 30 September 2010: R300 million) of the Nedbank facilities had not been drawn down.

On 11 August 2011, the group entered into a US$300 million syndicated revolving credit facility, which was jointly arranged by Nedbank Limited and FirstRand Bank Limited
(acting through its Rand Merchant Bank division). The facility is repayable after four years and attracts interest at LIBOR plus 260 basis points, which is payable quarterly.

At 30 September 2011, US$250 million of this facility had not been drawn down.

(2) Included in the borrowings is R52 million (30 June 2011: R51 million; September 2010: R74 million) owed to Westpac Bank Limited in terms of a finance lease agreement.

The future minimum lease payments are as follows:

At At At

30 September

30 June

30 September

2011 2011 2010

Figures in million

(Unaudited) (Audited)

(Unaudited)

Due within one year

31 29 30

Due between one and five years

22 23 46

53 52 76

Future finance charges

(1)

(2)

Total future minimum lease payments

52 51 74

Commitments and contingencies

At At At

30 September

30 June

30 September

2011 2011 2010

Figures in million

(Unaudited) (Audited)

(Unaudited)

Capital expenditure commitments:

Contracts for capital expenditure

290 194 369

Authorised by the directors but not contracted for

3 570

1 504

2 070

3 860

1 698

2 439

This expenditure will be financed from existing resources and borrowings where necessary.

Contingent liability

For a detailed disclosure on contingent liabilities refer to Harmony’s integrated annual report for the year ended 30 June 2011, available on the
group’s website at www.harmony.co.za. There were no significant changes in contingencies since 30 June 2011.

9. Dividends paid

On 12 August 2011, the board approved a payment of dividend of 60 SA cents per share for the year ended 30 June 2011. The total dividend
amounting to R258 million was paid on 19 September 2011.

10. Subsequent events

There are no subsequent events to report.

11. Segment report

The segment report follow on page 23.

Results for the period
ended 30 September 2011

12. Reconciliation of segment information to consolidated income statements

30 September

2011 2010

Figures in million

(Unaudited) (Unaudited)

The “Reconciliation of segment information to consolidated income statement” line item in the
segment report is broken down in the following elements, to give a better understanding of
the differences between the income statement and segment report:

Reconciliation of production profit to gross profit:

Total segment revenue

3 929

3 083

Total segment production costs and royalty expense

(2 623)

(2 431)

Production profit per segment report

1 306

652

Cost of sales items other than production costs and royalty expense

(569)

(564)

Amortisation and depreciation

(475)

(426)

Employment termination and restructuring costs

(34)

(78)

Share-based payments

(24)

(31)

Rehabilitation costs

(5)

(4)

Care and maintenance costs of restructured shafts

(31)

(25)

Gross profit as per income statements*

737

* The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement

after that.

SEGMENT REPORT (Rand/Metric) (Unaudited)

for the three months ended 30 September 2011

Revenue

Production cost

Production profit

Capital expenditure Kilograms produced

Tonnes milled

September September September September September September

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

R million

t’000

South Africa

Underground

Bambanani

(1)

175 270 201 223 (26)

47 77 83 498 942 92 129

Doornkop

348 168 230 148 118 20 65 70 866 541 277 140

Evander

330 174 175 176 155 (2) 38 59 854 552 123 140

Joel

283 44 149 75 134 (31) 13 18 691 148 147 40

Kusasalethu

575 475 335 387 240 88 98 104

1 554

1 513 331 269

Masimong

314 374 215 202 99 172 50 41 796

1 263 232 243

Phakisa

206 112 188 111 18 1 74 92 526 377 113 86

Target

(2)

459 244 311 189 148 55 75 118

1 180 947 288 205

Tshepong

466 500 305 294 161 206 59 61

1 183

1 688 287 338

Virginia

136 223 121 225 15 (2) 16 30 340 760 92 244

Surface

All other surface operations

(3)

378 317 250 238 128

12 927 1 069 2 473 2 837

Total

South

Africa

3 670 2 901 2 480 2 268 1 190 633 591 688 9 415 9 800 4 455 4 671

International

Hidden Valley

259 182 143 163 116 19 40 61 792 671 415 427

Other

– – – – – – 69 – – – – –

Total

international

259 182 143 163 116 19 109 61 792 671 415 427

Total

operations

3 929 3 083 2 623 2 431 1 306 652 700 749

10 207

10 471 4 870 5 098

Reconciliation of the segment information to the
consolidated income statement (refer to note 12)

– – – –

3 929

3 083

2 623

2 431

(1) Production statistics for Steyn 2 have been included. This mine is in a build-up phase and revenue and costs are currently capitalised, until commercial production levels are reached.
(2) The September 2010 production statistics includes Target 3 for information purpose. Target 3 was still in build-up phase with revenue and costs being capitalised.
(3) Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.

RESULTS FOR THE THREE MONTHS

ENDED 30 SEPTEMBER 2011

(US$)

Results for the period
ended 30 September 2011

Operating results (US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Three

Total

South

Inter-

months

Kusasa-

Under-

Total

Africa

Hidden

national

Harmony

ended

Bambanani

Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn 2

Target 1

Target 3

Tshepong

Unisel

ground

Kalgold

Phoenix Dumps Surface Other

Total Valley Other

Total

Ore milled

– t’000

Sep-11

101 305 136 162 365 256 125

– 232 86 316 101

2 185 401

1 505 820

2 726 –

4 911 458

–

5 369

Jun-11

124 258 146 133 336 210 117

– 185 83 361 117

2 070 432

1 375

1 021

2 828 –

4 898 463

5 361

Gold produced

– oz

Sep-11

14 854 27 843 27 457 22 216 49 962 25 592 16 911 1 157 30 190 7 748 38 034 10 931

272 895 8 681 6 912 14 211 29 804

– 302 699 25 463 –

328 162

Jun-11

23 631 24 338 24 113 14 404 50 991 26 589 15 175

868 22 184 8 809 47 358 13 503

271 963 8 681 4 405 14 789 27 875

– 299 838 26 556

– 326 394

Yield

– oz/t

Sep-11

0.147 0.091 0.202 0.137 0.137 0.100 0.135

– 0.130 0.090 0.120 0.108 0.124 0.022 0.005 0.017 0.011

– 0.061 0.056

– 0.061

Jun-11

0.191 0.094 0.165 0.108 0.152 0.127 0.130

– 0.120 0.106 0.131 0.115 0.131 0.020 0.003 0.014 0.010

– 0.061 0.057

– 0.061

Cash operating

– $/oz

Sep-11

1 907 1 178 909 883 1 043 1 208 1 589

– 974 1 935 1 147 1 570 1 180 1 471 1 024 1 013 1 149

– 1 177 900

– 1 156

costs

Jun-11

1 389 1 099 942 1 190 1 009 986 1 306

– 1 236 1 561 961 1 173 1 105 1 431 1 363 1 078 1 233

– 1 117 1 096

– 1 115

Cash operating

– $/t

Sep-11

280 108 183 121 143 121 215

– 127 174 138 170 147 32

5 18 13 – 72 50

– 70

costs

Jun-11

265 104 156 129 153 125 169

– 148 166 126 135 145 29

4 16 12 – 68 63

– 68

Gold sold

– oz

Sep-11

14 693 27 650 27 039 22 827 47 004 25 270 16 718 1 157 29 804 7 652 37 616 10 803

268 233 8 649 7 170 14 404 30 223

– 298 456 21 380 –

319 836

Jun-11

24 370 24 499 23 374 15 432 50 895 27 457 15 657

868 24 306 9 645 48 869 13 953

279 325 11 381 4 405 14 789 30 575

– 309 900 24 852

– 334 752

Revenue

($’000)

Sep-11

24 520 48 764 46 214 39 612 80 540 44 011 28 822

– 51 327 12 983 65 303 19 038

461 134 15 243 12 498 25 162 52 903

– 514 037 36 281 –

550 318

Jun-11

36 835 37 074 35 409 23 385 76 957 41 490 23 698

– 36 689 14 563 73 750 21 008

420 858 17 129 6 691 22 357 46 177

– 467 035 38 061

– 505 096

Cash operating

($’000)

Sep-11

28 323 32 809 24 950 19 621 52 092 30 920 26 876

– 29 404 14 990 43 623 17 163

320 771 12 768 7 079 14 389 34 236

– 355 007 22 914 –

377 921

costs Jun-11

32 834 26 738 22 718 17 134 51 470 26 206 19 817

– 27 428 13 748 45 510 15 837

299 440 12 426 6 006 15 946 34 378

– 333 818 29 093

– 362 911

Inventory

($’000)

Sep-11

(204)

(656)

(438)

1 223 (5 130)

(797)

(602)

– (501)

(256)

(939)

(273)

(8 573)

(382)

550 655 823

–

(7 750)

(2 828) –

(10 578)

movement

Jun-11

307 262 (389) 1 141 (542) 1 149 293

– 1 709 678 1 710 465 6 783 2 010

(78) 402 2 334

– 9 117 126

– 9 243

Production costs

($’000)

Sep-11

28 119 32 153 24 512 20 844 46 962 30 123 26 274

– 28 903 14 734 42 684 16 890

312 198 12 386 7 629 15 044 35 059

– 347 257 20 086 –

367 343

Jun-11

33 141 27 000 22 329 18 275 50 928 27 355 20 110

– 29 137 14 426 47 220 16 302

306 223 14 436 5 928 16 348 36 712

– 342 935 29 219

– 372 154

Operating profit*

($’000)

Sep-11

(3 599)

16 611 21 702 18 768 33 578 13 888 2 548

– 22 424 (1 751)

22 619 2 148

148 936 2 857 4 869

10 118

17 844

–

166 780

16 195

–

182 975

Jun-11

3 694 10 074 13 080 5 110 26 029 14 135 3 588

– 7 552

137 26 530 4 706

114 635 2 693

763 6 009 9 465

– 124 100 8 842

– 132 942

Capital

($’000)

Sep-11

6 133 9 064 5 263 1 853

13 665 7 017

10 356 4 609 8 768 1 667 8 222 2 197

78 814 1 349

9 1 771 3 129 808 82 751 5 594 9 711

056

expenditure**

Jun-11

7 720 10 458 7 451 2 708 15 534 7 150 13 771 5 533 11 250 2 094 10 645 2 426 96 740

851

816 3 344 5 011 3 145 104 896 11 361

7 373

123 630

* Operating profit is comparable to the term production profit in the segment report in the nancial statement and not to the operating profit line item

in the income statement.

** The total capital expenditure reported in the June 2011 quarter was US$116.3 million, which excluded the capital expenditure for International other.

Results for the period
ended 30 September 2011

CONDENSED CONSOLIDATED INCOME STATEMENTS (US$)

(Convenience translation)

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Continuing operations

Revenue

550 505 422

781

Cost of sales

(447)

(515)

(411)

(1 664)

Production costs

(367)

(372)

(333)

(1 313)

Amortisation and depreciation

(67)

(70)

(58)

(254)

Impairment of assets

– (39)

Employment termination and restructuring costs

(5)

– (11)

(23)

Other items

(8)

(34)

(9)

(35)

Gross

profit/(loss)

103 (10) 11 117

Corporate, administration and other expenditure

(12)

(10)

(13)

(51)

Social investment expenditure

(2)

(3)

(2)

(12)

Exploration expenditure

(14)

(15)

(14)

(51)

Profit on sale of property, plant and equipment

4 1 2 4

Other income/(expenses) – net

3 5 (7)

(3)

Operating profit/(loss)

(32)

(23)

Loss from associates

– – (1)

(7)

Reversal of impairment/(impairment) of investment in associate

7 3 –

(20)

Net (loss)/gain on financial instruments

(4)

3 5

Gain on farm-in option

– – 38 38

Investment income

2 4 2

Finance cost

(10)

(13)

(8)

(41)

Profit/(loss) before taxation

(35)

Taxation

(10)

30 1

Normal taxation

(6)

1 (1)

(2)

Deferred taxation

(4)

29 2

Net profit/(loss) from continuing operations

(5)

Discontinued operations

Profit from discontinued operations

– – – 3

Net profit/(loss) for the period

(5)

Attributable to:
Owners of the parent

67 (5)

14 86

Non-controlling interest

– – – –

Earnings/(loss) per ordinary share (cents)
Earnings/(loss) from continuing operations

16 (1)

3 19

Earnings from discontinued operations

– – – 1

Total earnings/(loss) per ordinary share (cents)

(1)

Diluted earnings/(loss) per ordinary share (cents)
Earnings/(loss) from continuing operations

16 (1)

3 19

Earnings from discontinued operations

– – – 1

Total diluted earnings/(loss) per ordinary share (cents)

(1)

The currency conversion average rates for the three months ended: September 2011: US$1 = R7.14 (June 2011: US$ = R6.78, September 2010:
US$1 = R7.31).

The income statement for the year ended 30 June 2011 has been extracted from the 2011 Annual Report.

Note on convenience translation

Except where speci c statements have been extracted from the 2011 Annual Report, the requirements of IAS 21, The Effects of the Changes in Foreign
Exchange Rates, have not necessarily been applied in the translation of the US dollar nancial statements presented on page 28 to 33.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (US$)

(Convenience translation)

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Net profit/(loss) for the period

(5)

Other comprehensive income for the period, net of income tax

134 62 15

540

Foreign exchange translation

129 70 15

555

Fair value movement of available-for-sale investments

(8)

– (15)

Total comprehensive income for the period

201

626

Attributable to:
Owners of the parent

201 57 29

626

Non-controlling interest

– – – –

The currency conversion average rates for the three months ended: September 2011: US$1 = R7.14 (June 2011: US$ = R6.78, September 2010:
US$1 = R7.31).

The statement of comprehensive income for the year ended 30 June 2011 has been extracted from the 2011 Annual Report.

Results for the period
ended 30 September 2011

CONDENSED CONSOLIDATED BALANCE SHEETS (US$)

(Convenience translation)

At At At

30 September

30 June

30 September

2011 2011 2010

Figures in million

(Unaudited) (Audited)

(Unaudited)

ASSETS

Non-current assets

Property, plant and equipment

3 997 4 607 4 289

Intangible assets

269 320 316

Restricted cash

4 5

Restricted investments

230 278 257

Investments in associates

– –

Deferred tax assets

159 170 105

Investments in financial assets

27 27 43

Inventories

21 25 34

Trade and other receivables

3 3

Total non-current assets

4 710 5 435 5 125

Current assets
Inventories

125 124 130

Trade and other receivables

109 158 93

Income and mining taxes

12 21 10

Cash and cash equivalents

164 102 111

410 405 344

Assets of disposal groups classified as held-for-sale

39 40 –

Total current assets

449 445 344

Total assets

5 159 5 880 5 469

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

3 506 4 033 4 059

Other reserves

216 519 57

Retained earnings/(accumulated loss)

163 (102)

Total equity

3 885 4 450 4 199

Non-current liabilities

Deferred tax liabilities

533 623 618

Provision for environmental rehabilitation

253 291 247

Retirement benefit obligation and other provisions

22 26 24

Borrowings

209 181 139

Total non-current liabilities

1 017

1 121

1 028

Current liabilities

Borrowings

41 49 30

Income and mining taxes

– – 2

Trade and other payables

214 258 210

255 307 242

Liabilities of disposal groups classified as held-for-sale

2 2 –

Total current liabilities

257 309 242

Total equity and liabilities

5 159

5 880

5 469

The balance sheet for September 2011 converted at a conversion rate of US$1 = R8.08 (September 2010: US$1 = R6.96).

The balance sheet as at 30 June 2011 has been extracted from the 2011 Annual Report.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (US$) (Unaudited)

for the three months ended 30 September 2011 (Convenience translation)

Other

Retained

Figures in million

capital

reserves

earnings

Total

Balance – 30 June 2011

3 505

136

3 736

Issue of shares

1 – – 1

Share-based payments

– 3 – 3

Net profit for the period

– – 59 59

Other comprehensive income for the period

– 118

Dividends paid

– –

(32)

Balance – 30 September 2011

3 506

216

163

3 885

Balance – 30 June 2010

058 38 99

195

Issue of shares

1 – – 1

Share-based payments

– 4 – 4

Net profit for the period

– – 15 15

Other comprehensive income for the period

– 15 – 15

Dividends paid

– –

(31)

Balance – 30 September 2010

4 059

4 199

The currency conversion closing rates for the three months ended 30 September 2011: US$1 = R8.08 (September 2010: US$1 = R6.96).

Results for the period
ended 30 September 2011

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (US$)

(Convenience translation)

Three months ended

Year ended

30 September

30 June

30 September

30 June

2011

2010

2011

Figures in million

(Unaudited)

(Audited)

Cash flow from operating activities
Cash generated by operations

153 155 96 346

Interest and dividends received

2 4 2

Interest paid

(6)

(5)

(4)

(19)

Income and mining taxes paid

– (3)

(1)

(7)

Cash generated by operating activities

149

151

340

Cash flow from investing activities
(Increase)/decrease in restricted cash

– (1)

4 17

Proceeds on disposal of investment in subsidiary

– – 31 32

Proceeds on disposal of available-for-sale financial assets

– – – –

Prepayment for Evander 6 and Twistdraai transaction

– 15 – 15

Other investing activities

– (1)

1 –

Net additions to property, plant and equipment

(94)

(122)

(102)

(445)

Cash utilised by investing activities

(94)

(109)

(66)

(381)

Cash flow from financing activities
Borrowings raised

112 22 –

134

Borrowings repaid

(49)

(60)

(1)

(81)

Ordinary shares issued – net of expenses

1 2 1 6

Dividends paid

(36)

– (29)

(30)

Cash generated/(utilised) by financing activities

(36)

(29)

Foreign currency translation adjustments

(1)

Net increase in cash and cash equivalents

118 5

10 1

Cash and cash equivalents – beginning of period

102 97 101 101

Cash and cash equivalents – end of period

164

102

111

102

Operating activities translated at average rates for the three months ended: September 2011: US$1 = R7.14 (June 2011: US$1 = R6.78,
September 2011: US$1 = R6.96).

Closing balance translated at closing rates of: September 2011: US$1 = R8.08 (June 2011: US$1 = R6.78, September 2010: US$ = R6.96).

The cash ow statement for the year ended 30 June 2011 has been extracted from the 2011 Annual Report.

SEGMENT REPORT (US$/Imperial) (Unaudited)

for the three months ended 30 September 2011

Revenue

Production cost

Production profit

Capital expenditure

Ounces produced

Tons milled

September September September September September September

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

US$ million

t’000

South Africa

Underground

Bambanani

(1)

24 37 28 31 (4)

11 16 011 30 286

101

142

Doornkop

49 23 32 20 17 3 9 10

27 843

17 394

305

154

Evander

46 24 24 24 22 – 5 8

27 457

17 747

136

154

Joel

40 6 21 10 19 (4) 2 3

22 216

4 758

162 44

Kusasalethu

81 65 47 53 34 12 14 14

49 962

48 644

365

297

Masimong

44 51 30 28 14 23 7 6

25 592

40 606

256

268

Phakisa

29 15 26 15 3 – 10 12

16 911

12 121

125 95

Target

(2)

64 33 44 26 20 7 11 16

37 938

30 447

318

226

Tshepong

65 69 43 40 22 29 8 8

38 034

54 270

316

373

Virginia

31 2 – 2 4

10 931

24 435

101

269

Surface

All other surface operations

(3)

53 43 35 33 18 10 3 2

29 804

34 369

2 726

3 128

Total South Africa

514

397

347

311

167

302 699

315 077

4 911

5 150

International

Hidden Valley

36 25 20 22 16 3 6 9

25 463

21 573

458

471

Other

– – – – – – 10 – – – – –

Total

international

36 25 20 22 16 3 16 9

25 463

21 573

458

471

Total

operations

550 422 367 333 183 89 98 103

328 162

336 650

5 369

5 621

Results for the period
ended 30 September 2011

DEVELOPMENT RESULTS (Metric)

For the three months ended 30 September 2011

Channel

Reef

Sampled

Width

Value

Gold

(metres)

(cm’s)

(g/t)

(cmg/t)

Tshepong

Basal 590

551

10.89

91.93

1 001

B Reef

113

107.28

30.65

3 288

All Reefs 703

625

22.23

57.13

270

Phakisa & Nyala

Basal 331

361

66.28

13.64

904

All Reefs 331

361

66.28

13.64

904

Total Bambanani

(incl. Bambanani. Steyn 2)

Basal 90

156.81

15.75

2 470

All Reefs 90

156.81

15.75

470

Doornkop

South Reef

371

384

60.45

18.17

1 099

All Reefs 371

384

60.45

18.17

099

Kusasalethu

VCR Reef

649

642

75.18

16.61

1 249

All Reefs

649 642 75.18

16.61

249

Total Target

Elsburg 465

272

119.52

8.21

981

A Reef

111.17

14.02

1 558

B Reef

40.33

17.72

715

All Reefs 549

331

112.90

9.06

023

Target 1

Elsburg 166

230.66

9.06

2 089

All Reefs 166

230.66

9.06

089

Target 3

Elsburg 299

212

87.77

7.57

664

A Reef

111.17

14.02

1 558

B Reef

40.33

17.72

715

All Reefs 383

271

86.59

9.06

784

Masimong

Basal 418

367

50.44

17.55

885

B Reef

129

136

67.14

14.41

968

All Reefs 547

503

54.97

16.51

908

Evander

Kimberley 359

344

42.92

40.32

1 730

All Reefs 359

344

42.92

40.32

730

Virginia

(incl. Unisel)

Basal 444.6

342

140.90

8.57

1 207

Leader 362.3

316

192.79

6.01

1 159

Middle 30.6

125.83

13.14

1 653

B Reef

6.4

9.00

80.49

724

All Reefs 844

692

163.41

7.37

204

Joel

Beatrix 462

469

137.89

10.98

1 515

All Reefs 462

469

137.89

10.98

515

Total Harmony

Basal 1 874

1 713

64.85

16.59

1 076

Beatrix 462

469

137.89

10.98

1 515

Leader 362

316

192.79

6.01

1 159

B Reef

284

236

76.28

21.77

1 661

A Reef

47.8

111.17

14.02

1 558

Middle 30.6

31.5

125.83

13.14

1 653

Elsburg 465.2

272.25

119.52

8.21

981

Kimberley 358.8

344.25

42.92

40.32

1 730

South Reef

371

384

60.45

18.17

1 099

VCR 649

641.5

75.18

16.61

1 249

All Reefs

4 905

4 442

85.81

14.44

1 239

DEVELOPMENT RESULTS (Imperial)

For the three months ended 30 September 2011

Channel

Reef

Sampled

Width

Value

Gold

(feet)

(inches)

(oz/t)

(in.oz/t)

Tshepong

Basal 1 937

1 808

2.87

B Reef

371

241

0.90

All Reefs 2 308

049

1.62

Phakisa & Nyala

Basal 1 086

1184

0.40

All Reefs 1 086

1 184

0.40

Total Bambanani

(incl. Bambanani. Steyn 2)

Basal 294

303

0.46

All Reefs 294

303

0.46

Doornkop

South Reef

1 218

1 260

0.53

All Reefs 1

218

260

0.53

Kusasalethu

VCR Reef

2 129

2 105

0.48

All Reefs

2 129

2 105

0.48

Total Target

Elsburg 1 526

893

0.24

A Reef

157

115

0.41

B Reef

117

0.51

All Reefs 1 800

1 087

0.27

Target 1

Elsburg 545

198

0.26

All Reefs 545

198

0.26

Target 3

Elsburg 982

695

0.22

A Reef

157

115

0.41

B Reef

117

0.51

All Reefs 1 255

888

0.27

Masimong

Basal 1 371

1 203

0.51

B Reef

422

448

0.43

All Reefs 1 794

651

0.47

Evander

Kimberley 1 177

1 129

1.17

All Reefs 1 177

129

1.17

Virginia

(incl. Unisel)

Basal 1 459

1 122

0.25

Leader 1 189

1 035

0.18

Middle 100

103

0.38

B Reef

2.08

All Reefs 2 769

269

0.22

Joel

Beatrix 1 517

1 538

0.32

All Reefs 1 517

538

0.32

Total Harmony

Basal 6 147

5 620

26.00

0.48

12.36

Beatrix 1 517

1 538

54.00

0.32

17.39

Leader 1 189

1 035

76.00

0.18

13.31

B Reef

931

776

30.00

0.64

19.07

A Reef

157

115

44.00

0.41

17.89

Middle 100

103

50.00

0.38

18.98

Elsburg 1 526

893

47.00

0.24

11.26

Kimberley 1 177

1 129

17.00

1.17

19.87

South Reef

1 218

1 260

24.00

0.53

12.62

VCR 2 129

2 105

30.00

0.48

14.34

All Reefs 16 091

575

34.00

0.42

PRINTED BY INCE (PTY) LTD

W2CF12636

Harmony’s strategy is to produce 1.8 to 2 million* safe and pro table ounces of gold by 2015. Following a review of
assets during 2011, action was taken and capital committed to increase production at existing operations, further
the development of current projects and advance scoping studies so as to ensure the future production pipeline of
tomorrow’s gold by growing reserves and resources and strengthening the quality of our asset base.

Our challenge going forward is to meet our targets and objectives and, more speci cally, to deliver consistent
production results, improve productivity, curb costs and to create and deliver value to shareholders.

Harmony’s strategy

* Excludes future acquisitions or disposals.

CONTACT DETAILS

Corporate Of ce

Randfontein Of ce Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue, Randfontein, 1759, South Africa
Telephone: +27 11 411 2000
Website: www.harmony.co.za

Directors

P T Motsepe Chairman*
G P Briggs Chief Executive Of cer
H O Meyer Financial Director
H E Mashego Executive Director
F F T De Buck*^ Lead independent director
F Abbott*, J A Chissano*

^, K V Dicks*^, Dr D S Lushaba*^, C Markus*^,

M Motloba*^, M Msimang*^, D Noko*^, C M L Savage*^, J Wetton*^,
A J Wilkens*
* Non-executive
^ Independent

Mozambican

Investor relations team

Henrika Baster eld
Investor Relations Of cer
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 759 1775
E-mail: henrika@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax: +27 86 614 0999
Mobile: +27 82 888 1242
E-mail: marian@harmony.co.za

Company Secretary

iThemba Governance and Statutory Solutions (Pty) Ltd
Riana Bisschoff
Telephone: 011 411 2127
Mobile: +2783 629 4706
E-mail: riana@ithembaonline.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381

United Kingdom Registrars

Capita Registrars
The Registry, 34 Beckenham Road, Beckenham
Kent BR3 4TU, United Kingdom
Telephone: 0871 664 0300 (UK) (calls cost 10p a minute plus network
extras, lines are open 8:30am – 5:30pm, Monday to Friday)
or +44 (0) 20 8639 3399 (calls from overseas)
Fax: +44 (0) 20 8639 2220

ADR Depository

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: +1-886-249-2593
Int: +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
Telephone: +27 11 507 0300
Fax: +27 11 507 0503

Trading Symbols

JSE Limited: HAR
New York Stock Exchange, Inc: HMY
London Stock Exchange Plc: HRM
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1

Registration number

1950/038232/06
Incorporated in the Republic of South Africa

ISIN

ZAE 000015228

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: October 31, 2011

Harmony Gold Mining Company Limited

By: /s/ Hannes Meyer

Name: Hannes Meyer
Title: Financial Director