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

10 May 2010

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

Shareholder information

Issued ordinary share capital at

426 191 965

31 March 2010

Market capitalisation

At 31 March 2010 (ZARm)

29 322

At 31 March 2010 (US$m)

4 009

Harmony ordinary share
and ADR prices

12-month high (1 April 2009 to
31 March 2010) for ordinary shares

R99.22

12-month low (1 April 2009 to
31 March 2010) for ordinary shares

R67.71

12-month high (1 April 2009 to
31 March 2010) for ADRs

$12.39

12-month low (1 April 2009 to
31 March 2010)) for ADRs

$8.06

Free float

Ordinary shares

100%

ADR ratio

1:1

JSE Limited

HAR

Range for quarter
(1 January 2010 to

R68.80 –

31 March 2010 – closing prices)

R80.77

Average daily volume for
the quarter (1 January 2010 to

1 305 283

31 March 2010)

New York Stock
Exchange, Inc.

HMY

Range for quarter
(1 January 2010 to

$8.79 –

31 March 2010 – closing prices)

$11.11

Average daily volume for
the quarter (1 January 2010 to

670 462

31 March 2010)

Nasdaq

HMY

Range for quarter
(1 January 2010 to

$8.81 –

31 March 2010 – closing prices)

$11.10

Average daily volume for
the quarter (1 January 2010 to

553 900

31 March 2010)

Key features for the quarter

Safety remains a top priority

•

99 days fatal-free

Continuing to “fix the mix”

•

more quality, low-cost ounces long term

Growth projects poised to produce

•

mostly on track

10% decrease in gold production

19% drop in total capital expenditure

Excellent exploration results

•

turning tenements into resources

Financial review for the third quarter and nine months ended
31 March 2010

Quarter

9 months 9 months Year-to-

March December

Q-on-Q

March

year

2010

2009 variance

2010

2009 variance

Gold

– kg

10 366

11 569

(10.4)

33 649

34 434

(2.3)

produced

(1)

– oz

333 276

371 956

(10.4) 1 081 831 1 107 078

(2.3)

Cash costs

– R/kg

199 859

192 101

(4.0)

193 274

166 757

15.9

– US$/oz

829

798

(3.8)

792

564

40.4

Cash operating

– Rm

634

800

(20.8)

1 985

3 096

(35.9)

profit

– US$m

107

(20.9)

261

337

(22.6)

Basic(loss)/

– SAc/s

(69)

<(100)

(48)

397*

<(100)

earnings per share

– USc/s

(9)

<(100)

(6)

43*

<(100)

Headline

– Rm

(137)

207

<(100)

968*

(98)

(loss)/profit

– US$m

(18)

<(100)

105*

(97)

Headline (loss)/

– SAc/s

(32)

<(100)

236*

(98)

earnings per share

– USc/s

(4)

<(100)

26*

Adjusted

– SAc/s

(6)

<(100)

243

(87)

headline (loss)/

– USc/s

(1)

<(100)

(85)

earnings per share

(2)

Exchange rate

– R/US$

7.50

7.49

0.2

7.59

9.19

(17.4)

Gold price

– R/kg

267 469

264 774

1.0

256 525

252 346

1.7

received

– US$/oz

1 109

1 100

(0.8)

1 051

854

23.1

* Reported amounts include continued operations only.

(1) Production statistics for Hidden Valley, President Steyn and Target 3 (previously known as Lorraine 3) have been included.

These mines are in a build-up phase and revenue and costs are currently capitalised.

(2) Headline (loss)/earnings adjusted for employee termination and restructuring costs.

HARMONY’S ANNUAL REPORTS

Harmony’s Annual Report, Notice of Annual General Meeting, its Sustainable Development Report and
its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for
the year ended 30 June 2009 are available on our website at www.harmony.co.za.

Incorporated in the Republic of South Africa
Registration Number 1950/038232/06
(“Harmony” or “Company”)
JSE Share code: HAR
NYSE Share code: HMY
ISIN: ZAE 000015228

Results for the third quarter
ended 31 March 2010

Results for the third quarter
ended 31 March 2010

Forward-looking statements

This quarterly report contains forward-looking
statements within the meaning of the United
States Private Securities Litigation Reform Act
of 1995 with respect to Harmony’s financial
condition, results of operations, business
strategies, operating efficiencies, competitive
positions, growth opportunities for existing
services, plans and objectives of management,
markets for stock and other matters. Statements
in this quarter that are not historical facts are
“forward-looking statements” for the purpose of
the safe harbor provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended,
and Section 27A of the U.S. Securities Act of
1933, as amended. Forward-looking statements
are statements that are not historical facts.
These statements include financial projections
and estimates and their underlying assumptions,
statements regarding plans, objectives and
expectations with respect to future operations,
products and services, and statements regarding
future performance. Forward-looking statements
are generally identified by the words “expect”,
“anticipates”, “believes”, “intends”, “estimates”
and similar expressions. These statements are
only predictions. All forward-looking statements
involve a number of risks, uncertainties and
other factors and we cannot assure you that
such statements will prove to be correct. Risks,
uncertainties and other factors could cause actual
events or results to differ from those expressed or
implied by the forward-looking statements.

These forward-looking statements, including,
among others, those relating to the future
business prospects, revenues and income of
Harmony, wherever they may occur in this
quarterly report and the exhibits to this quarterly
report, are necessarily estimates reflecting the
best 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

South Africa and elsewhere;

the ability to achieve anticipated efficiencies

and other cost savings in connection with
past and future acquisitions;

increases/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;

fluctuations in exchange rates;

currency devaluations and other macro-

economic monetary policies; and

socio-economic instability in South Africa and

regionally.

Contents

Page

Chief Executive Officer’s Review

Financial overview

Safety and health

Operational overview

South African underground operations

– Bambanani

– Doornkop

– Evander

– Joel

– Kusasalethu (formerly Elandsrand)

– Masimong

– Phakisa

– Target

– Tshepong

– Virginia

– Old Pamodzi Free State shafts

South African surface operations

– Kalgold

– Phoenix

– Rock dumps

International operations

– Hidden Valley

Development

Exploration

Operating results (Rand/Metric)

Condensed Consolidated Income Statement (Rand)

Condensed Consolidated Statement of Other Comprehensive Income (Rand)

Condensed Consolidated Balance Sheet (Rand)

Condensed Consolidated Statement of Changes in Equity (Rand)

Condensed Consolidated Cash Flow Statement (Rand)

Notes to the condensed consolidated financial statements

for the period ended 31 March 2010

Segment Report for the nine months ended 31 March 2010 (Rand/Metric)

Operating results (US$/Imperial)

Condensed Consolidated Income Statement (US$)

Condensed Consolidated Statement of Other Comprehensive Income (US$)

Condensed Consolidated Balance Sheet (US$)

Condensed Consolidated Statement of Changes in Equity (US$)

Condensed Consolidated Cash Flow Statement (US$)

Segment Report for the nine months ended 31 March 2010 (US$/Imperial)

Development Results – Metric and Imperial

Contact Details

Chief Executive Officer’s Review

Introduction

During the quarter ended 31 March 2010, we continued the difficult

but necessary process of restructuring to eliminate unprofitable

production, our end game being the best asset mix, generating

quality ounces. Following on from the first round of shaft closures –

Evander 2, 5 and 7 and Brand 3 – in the previous quarter and early in

the quarter under review, we announced the closure of Harmony 2,

Merriespruit 1 and 3 shafts, which will take effect during the fourth

quarter. We fully anticipated the short term effects from these

actions and indeed, gold production for the March quarter reduced

by 10% in comparison to the previous quarter, of which 6% can

be attributed to the restructuring. We experienced some technical

challenges and a number of lost shifts due to stoppages imposed

by the regulator for minor infringements. We have dealt with these

matters and discuss the detail later in this review.

We continue to draw to the end of our various capital programmes,

with capital expenditure 19% lower than the previous quarter.

On the safety front our continued diligence produced excellent

results, clouded, however, by the death of winch operator Matome

Johannes Mothele in a fall of ground at Evander, ending a 99-day

period free of fatalities. We extend our deepest condolences to his

family, friends and colleagues.

Operational results

Gold production was 10% lower at 10 366kg (of which 579kg was

capitalised), down from 11 569kg (of which 669kg was capitalised)

in the previous quarter. The decrease is due largely to the closure

of Evander 2, 5 and 7 and Brand 3 shafts. Challenges at Tshepong,

Masimong, Joel and Kusasalethu (previously known as Elandsrand)

also contributed to lower production.

Only Tshepong and Masimong had a slow start-up after the

Christmas break; Joel saw lower grades, mainly as a result of

hoisting delays caused by the lift shaft deepening project; and

Kusasalethu experienced ore-pass problems, which are being

investigated.

Of great concern is the number of production stoppages ordered

by the new Principal Inspector of Mines in the Free State. Thirteen

shifts were lost, which translates to approximately 170 fewer

kilograms of gold and R46 million less revenue. Some of these

stoppages related to administrative infringements and could easily

have been resolved without resort to stoppages. We are in robust

consultation with the Department of Mineral Resources (DMR) to

address our concerns.

Total cash operating costs decreased by R138 million or 7% from

R2 094 million in the previous quarter to R1 956 million including

royalties, mainly due to the closure of Evander 2, 5 and 7 and

Brand 3.

However, R/kg costs increased by 4% to R199 859/kg (R192 101/kg in the

previous quarter) due to lower tonnes milled and a 4% decrease in

grade. Consequently, operating profit was 21% lower at R634 million,

down from R800 million in the previous quarter. As expected,

capital expenditure decreased by 19% to R723 million and our focus

is now on increasing production in line with expectation, focusing

on development and resolving project commissioning issues.

Restructuring

Evander 2, 5 and 7 and Brand 3 shafts

The closure of these shafts resulted in a reduction in gold produced
of 639kg compared with the previous quarter. Restructuring costs
in respect of these closures amount to R120 million. Going forward,
only minimal care and maintenance costs for the closed shafts will
be incurred.

Harmony 2, Merriespruit 1 and 3 shafts

During March 2010 and April 2010 the performance of Harmony 2,
Merriespruit 1 and 3 shafts (all part of the Virginia operations) was
carefully assessed and we reached a well-informed conclusion that
these assets have all depleted their payable reserves. As a result,
the closure process began in mid-April.

Employee representatives, through their trade unions, were informed
of the closures and we have embarked on a formal consultation
process with them, facilitated by a senior commissioner from the
Commission for Conciliation, Mediation and Arbitration (CCMA)
in terms of Section 189A of the Labour Relations Act, to consider
alternatives to retrenchments. The number of employees affected
by the closure is approximately 3 700. Every effort will be made to
mitigate the effects of closure. Steps to be considered may include
transfers to other operations in the group, portable skills training
and early retirement.

Evander

The underpinning geological resource of Evander is the variable and
very rich Kimberley Reef. The mining of this resource demands strict
management philosophies and capital. We are currently looking at
ways to unlock value at Evander as it requires further capital to fully
develop the abundant resource.

Commissioning of growth projects

Hidden Valley continued its commissioning process, with the silver
flotation circuit commissioned during the March quarter. We expect
the Hidden Valley mine and processing plant to reach their original
design capacity and throughput in the June 2010 quarter. The
mine produced 35 359oz Au and 168 505oz Ag (50% of which is
attributable to Harmony) during the quarter. Good progress is being
made with the commissioning phase.

At Doornkop, the equipping of the rock winder compartment is
nearing completion and it is estimated that both the North and
South compartments will be completed by May 2010. The shaft
equipping had to be delayed during the quarter to focus on the
installation of a pump column to increase the pumping capacity
after water intersections on the South caused an increase in
the return water to the shaft. The mud pumping system was
completed during the quarter. Development of the mine is well on
track towards achieving its production targets in 2012. The South
Reef grades are delivering above 5g/t which is in line with the
life-of-mine plan.

At Phakisa, production was affected as a result of compressor
breakdowns at Nyala shaft, rail-veyor commissioning problems
with the third train, under-performance of the ice plants and illegal
mining activities. The compressor and rail-veyor issues have been

Results for the third quarter
ended 31 March 2010

resolved. The ice plants are still under-performing and the original
equipment manufacturers (OEMs) from abroad are helping us to
analyse and resolve the problem. The set-up of the plants is time-
consuming, but the OEMs are familiar with the issues, and they will
be resolved. We believe that Phakisa will make up its production
losses in the first quarter of the new financial year our battle against
criminal mining continues.

Exploration

Exploration drilling at Wafi/Golpu in Papua New Guinea has widely
expanded the known mineralisation. The footprint of the zone is
now more than double what was previously reported. This success
will have a profound effect on the options for exploitation of this
resource. The resource is still being scoped and to some extent will
make the previous mining concept work redundant. However, it will
set a new baseline for what the mine could look like. Exploration
results are reported in the exploration section on page 13.

It is expected that a significant resource upgrade will be declared
on 30 June 2010.

Pamodzi assets

Harmony became the owners of the Lorraine 3 (renamed Target 3)
shaft and the President Steyn 1 and 2 shafts on 18 February 2010.
The start-up is slower than anticipated due to the state of the
infrastructure and the working places. Some panels have started,
with 1 089 people having been re-called to these shafts.

The opening-up, equipping, infrastructure repair and production are
in progress at Steyn 2 and Target 3. A fire at Steyn 1 has resulted
in mining being delayed until it has been brought under control.
It has been sealed off on all the levels, which makes access to
any working area impossible at this stage. Although the fire is
monitored on a daily basis, the readings are very erratic due to the
vast, open, old areas where it is burning.

The teams on the Steyn 2 and Target 3 shafts spend a lot of time
investigating all possible mining areas and action plans are being
drawn up to bring these areas into full production. A team also
started with the pre-feasibility study on the Steyn 2 shaft pillar.
Different options are being looked at to service the area and to

transport the rock to surface. We will follow our internal project
approval process to decide on the best option for the pillar
extraction. During the quarter, 29kg of gold were produced by these
shafts, of which the cost has been capitalised. Some 61 kg of gold
were extracted from the Steyn Plant clean-up and 42kg of gold from
Freddies 9 rock dump.

Gold market

The R/kg gold price remained steady during the quarter and we
received R267 469/kg for our production. Investment demand
supports the gold price at its current levels, with strong physical
demand in India and from exchange-traded funds. The Rand’s
strength continued and it is uncertain whether it will remain at its
current levels. We remain bullish about the gold market and the
gold price.

Board appointment

Mashego Mashego, previously a member of our Executive
Management, was appointed as Executive Director: Organisational
Development and Transformation, in February 2010. Mashego’s
wealth of human resources knowledge and his experience as
a member of Harmony’s executive team make him a valuable
addition to the board and we wish him well.

Looking ahead

As for managing what is absolutely within our power to manage,
there is not one of our current operations that can or will escape our
vigilance in terms of volume and grade optimisation, cost control, and
productivity enhancement. Turnaround through improved profitability
and getting to the right asset mix remain priorities for us. Added to
this, we will progress our developmental projects – our key growth
drivers – and pursue further, longer-term growth through acquisition
and exploration. To achieve this, we will continue to call on the
substantial reserves of ability, skills and enthusiasm of the thousands
of people comprising the Harmony team.

Graham Briggs
Chief Executive Officer

Financial overview

Cash operating profit was 21% lower at R634 million due to a
decrease of 10% in production, of which 6% is attributable to closed
shafts. This was mitigated by a decrease in total cash operating
costs of R138 million.

Earnings per share

Basic earnings per share decreased from a profit of 28 SA cents to a
loss of 69 SA cents per share. Similarly headline earnings decreased
form a profit of 49 SA cents to a loss of 32 SA cents per share. This
decrease can mainly be attributed to a decrease in production.

Revenue

Revenue decreased to R2 521 million from R2 971 million in a
relatively stable price environment, resulting from a 13% decrease
in kg’s sold. This was caused by lower production and some
inventory build-up.

Costs

Total cash operating costs were 7% lower at R1 956 million due
mainly to closed shafts

Disposal of Big Bell

The sale of Big Bell was concluded in the current quarter,
generating R24 million cash for the group, but at an accounting loss
of R24 million.

Impairment of assets

An impairment expense of R196 million was recorded during the
current quarter relating to the closure of Harmony 2 (R36 million),
Merriespruit 1 (R117 million) and Merriespruit 3 (R43 million).
Impairments totaling R103 million were recorded in the December
2009 quarter following the decision to close Evander 2 and 5
(R66 million) and Brand 3 (R37 million).

Safety and health

Safety

Harmony recorded excellent safety results during the quarter under
review. The company achieved 99 fatality-free calendar days during
the quarter, which has been its best achievement ever recorded.

However, it is with deep regret that we report a fatal accident that
occurred at Evander 8 shaft during the quarter, as a result of a fall of
ground.

We are pleased to announce that a ‘single digit’ lost time injury
frequency rate (LTIFR) was achieved for the sixth consecutive quarter.
During the quarter, the LTIFR year-to-date improved by 18% from 9.35
to 7.71 when compared to the actual ﬁ gure for the previous year and
improved by 4% quarter on quarter from 8.30 to 7.95. The fatal injury
frequency rate (FIFR) also showed remarkable improvement for the
second consecutive quarter with the year-to-date rate improving 24%
from 0.21 to 0.16 when compared to the previous year. Quarter on
quarter, the FIFR outperformed the previous quarter’s rate by 80%
(from 0.20 to 0.04). Harmony’s reportable injury frequency rate (RIFR)
also showed improvement of 18% year on year from 4.97 to 4.08, and
improved by 10% quarter on quarter from 4.59 to 4.1.

The following operations achieved outstanding safety results during
the quarter:

Harmony total operations: 2 000 000 fatality-free shifts.

Doornkop, Harmony 2 shaft operations: 1 250 000 fatality-free
shifts.

Operational overview

South African underground operations

March December

Indicator

2010

2009 Variance

u/g Tonnes milled

(‘000)

1 968

2 243

(12)

Grade

(g/t)

4.46

4.51

(1)

Gold produced*

(kg)

8 807

10 117

(13)

Gold sold

(kg)

8 476

10 398

(19)

Cash operating costs (R/kg)

204 514

193 544

(6)

Operating proﬁt

(’000)

535 064

722 821

(26)

* 29kg has been capitalised

Bambanani

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

129

123

Grade

(g/t)

8.19

7.58

Gold produced

(kg)

1 056

932

Gold sold

(kg)

1 013

969

Cash operating costs

(R/kg)

165 670

179 746

Operating proﬁt

(R’000)

105 371

79 969

Bambanani had a pleasing quarter, with a 5% increase in tonnes

milled and an 8% increase in grade resulting in a 13% increase in gold

production to 1 056kg.

Harmony total north, Harmony total south, Harmony underground
south, Joel, Tshepong operations: 1 000 000 fatality-free shifts.

Masimong 5 shaft: 500 000 fatality free shifts.

It is encouraging to see remarkable improvements in our safety results
during the March 2010 quarter, which bare testimony to the effective
behaviour-based safety programmes that continue to be rolled out at
all Harmony’s operations. Safety remains the key focus at Harmony
and ongoing efforts are being made throughout the company to
improve performance on a daily basis.

Health

Our employees’ well being is important to us and we have therefore
consolidated the various components of healthcare.

A highlight for the quarter under review in terms of noise protection is
that the implementation of personalised hearing protection was 84.3%
completed. Furthermore, mufﬂ ers on all drilling machines as well as
silencing on fans have all been installed and the installation of sound
attenuators on mechanical loaders has been scheduled. To date, this
process is about 14% completed.

Dust remains an area of concern and therefore, in January 2010, silica
quartz sampling was increased from the compulsory 5% to 10%. This
action was embarked upon to increase conﬁ dence levels in sample
results and to identify potential risk areas.

In terms of radiation protection for our employees, radon exposures
on all operations are well controlled.

Capital expenditure

Total capital expenditure was 19% lower at R723 million, R26 million
attributable to South African operations and R143 million to Hidden
Valley.

Africa Vanguard Resources

Harmony acquired the 26% interest in Doornkop, held by Africa
Vanguard Resources (Doornkop) (AVRD) in the Doornkop south
project, during the quarter for a total purchase consideration
of R398 million. The consideration was partially paid during the

quarter with the settlement of AVRD’s Nedbank loan to the value
of R244 million. The remainder of the consideration price was
paid by the issue of 2 162 359 Harmony shares on 28 April 2010,
following the registration of the deed of session at the Mining Titles
registration office.

Royalties

Effective 1 March 2010, The Mineral and Petroleum Resources
Royalty Act, No. 28 of 2008, became effective and resulted in a
royalty expense of R4.7 million for the quarter.

Results for the third quarter
ended 31 March 2010

The grade increase, from 7.58g/t to 8.19g/t, resulted from improved

volumes mined in the higher grade pillar section. Closer attention to

blast frequency delivered higher volumes during March in particular.

Cash operating costs in R/kg terms decreased by 8% due mainly to

increased gold production. This reduction in costs, combined with

higher grade and increased gold production, resulted in Bambanani

attaining a cash operating proﬁ t of R105.4 million for the quarter, a

32% increase from the previous quarter.

Doornkop

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

123

148

(17)

Grade

(g/t)

3.67

3.31

Gold produced

(kg)

452

490

(8)

Gold sold

(kg)

434

517

(16)

Cash operating costs

(R/kg)

209 476

198 561

(6)

Operating proﬁt

(R’000)

24 696

31 426

(21)

Doornkop’s tonnes milled decreased by 17% quarter on quarter. This
underperformance is directly related to a mill breakdown during the
last week of March that resulted in a tonnage lockup on surface and a
drop in the Kimberley Reef production.

While the Kimberley Reef square metres blasted decreased by 13%,
the South Reef square metres blasted improved by 13%. The build-up
on the South Reef over the last three quarters is encouraging and is
contributing to the grade improvement.

The recovered grade increased by 11% to 3.67g/t from 3.31g/t.
The improvement in recovered grade was mainly as a result of a
7% increase in the mine call factor to 89%.

Gold production decreased by 8% to 452kg due mainly to the decline
in tonnes milled.

Unit cash costs for the quarter increased 6% due to decreased gold
production, although cash operating costs were 3% lower.

Lower production volumes, combined with increased unit costs,
resulted in Doornkop’s operating proﬁ t declining by 21%.

Evander

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

138

245

(44)

Grade

(g/t)

4.36

4.31

Gold produced

(kg)

602

1 057

(43)

Gold sold

(kg)

519

1 158

(55)

Cash operating costs

(R/kg)

256 013

249 411

(3)

Operating proﬁt

(R’000)

6 619

23 366

(72)

The Evander restructuring progressed during the quarter, following the
closure of Evander 2, 5 (Winkelhaak) and Evander 7 shafts. Reclamation
continued at Evander 2 shaft until April 2010 and Evander 7
infrastructure will remain operational for Evander 8 shaft. A total of
2 190 employees were affected by the closures, some transferred and
the rest through voluntary retrenchment, medical separations, and
compulsory retrenchment.

Tonnes milled from Evander underground operations decreased
by 44%, as expected, due mainly to the closure of Evander 2, 5 and
7 shafts. Environmental conditions on the decline area of Evander 8
shaft continue to hamper production, but are being addressed.

Evander’s recovered grade increased by 1% mainly as a result of the
mine call factor improving from 68% to 73%, which is encouraging.
Gold production from underground sources at Evander dropped from
1 057kg to 602kg due to the shaft closures and is expected to stabilise
at this level in the June 2010 quarter.

Total cash operating costs decreased by 42%, due mainly to the
closures of the three shafts and the restructuring of the services
department. However, R/kg unit costs increased by 3% mainly as a
result of the 43% drop in gold production.

The decrease in gold produced resulted in a 72% decrease in cash
operating proﬁ t for the quarter.

Joel

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

100

112

(11)

Grade

(g/t)

5.22

5.28

(1)

Gold produced

(kg)

522

591

(12)

Gold sold

(kg)

501

615

(19)

Cash operating costs

(R/kg)

172 416

167 232

(3)

Operating proﬁt

(R’000)

54 324

59 429

(9)

Joel had a disappointing quarter, with tonnes milled decreasing by

11%. This stemmed from hoisting limitations at North shaft where the

lift shaft deepening project resulted in numerous hoisting delays. The

recovered grade remained relatively ﬂ at at 5.22g/t. Gold production

during the quarter dropped 12% to 522kg due to the decrease in

tonnes milled. This impacted cash operating proﬁ t negatively, which

declined 9% to R54.3 million.

Cash operating costs were well-controlled. The impact of the lower

gold production and improved overall costs is reﬂ ected in the R/kg unit

costs, which rose 3% to R172 416/kg.

Last quarter we reported on the negative impact on production due

to the North shaft ﬂ ooding. It is pleasing to report that this situation

is now under control. A mud press has been installed and mud is

removed from the bottom of the shaft daily.

The raise boring of the lift shaft extension to 129 level has been

completed.

Kusasalethu (formerly Elandsrand)

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

226

235

(4)

Grade

(g/t)

4.57

5.9

(23)

Gold produced

(kg)

1 032

1 387

(26)

Gold sold

(kg)

1 071

1 488

(28)

Cash operating costs

(R/kg)

262 738

199 147

(32)

Operating proﬁt

(R’000)

7 557

101 047

(93)

During the six-month intervention at Kusasalethu (October 2008 –

March 2009) to restore safety as the ﬁ rst priority, rebuild a culture of

pride and deliver on plan, it was realised that the mine needs a different

identity in order for its employees to break with the past. The plan was

to restore co-created values at the mine to which employees could

subscribe and also, to invite employees to participate in a decision-

making process on the future of Kusasalethu.

The mine has a long history and its employees developed a culture

that was not necessarily aligned with the expectations of Harmony for

the ‘new’ mine that it was building. In order to institute a step change

marking the turnaround of the mine, it was decided to completely

re-brand the mine. The process was approved and was marked by a

major milestone on 19 February 2010 when Elandsrand was ofﬁ cially

renamed Kusasalethu. Kusasalethu is a Zulu word meaning ‘our future’.

Tonnes milled during the quarter dropped 4% due to lower development

and the completion of mechanised metres in the deepening project.

The underperformance on square metres blasted against the plan

is the mine’s biggest challenge and resulted in gold production’s

underperformance.

Scaling in the main reef and waste ore-pass systems caused major

blockages in both systems. Investigations into this issue are under way.

The recovered grade decreased by 23% mainly due to waste dilution as

a result of the ore-pass blockages.

The R/kg unit cost increased by 32% to R262 738/kg, attributable to

production underperformances. Ultimately, these factors contributed

to the cash operating proﬁ t dropping a massive 93%.

Masimong

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

212

235

Grade

(g/t)

4.90

5.29

(7)

Gold produced

(kg)

1 038

1 242

(16)

Gold sold

(kg)

996

1 227

(19)

Cash operating costs

(R/kg)

164 072

142 754

(15)

Operating proﬁt

(R’000)

105 152

149 710

(30)

Tonnes milled decreased 10% as a result of a slow start-up following

the December break. Furthermore, exceptionally hot and humid

surface temperatures increased underground temperatures, resulting

in the loss of two shifts.

The grade was 7% lower at 4.90g/t due to lower B Reef values. The

value in the B Reef has regressed since September 2009, when it was

at 3 000cmg/t, to 1 000cmg/t in March 2010. This drop in B Reef grade

is a function of the three top panels moving out of the high-grade

channels.

The lower tonnage and decline in grade resulted in a disappointing

16% decrease in gold production for the quarter.

Cash operating costs were, once again, well-controlled, 4% lower than

the previous quarter. The contributors were lower electricity, overtime

and stores costs. However, unit cash costs showed a 15% increase

at R164 072/kg as a direct result of the lower gold produced. Lower

production resulted in operating proﬁ t dropping 30%.

Phakisa

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

(1)

Grade

(g/t)

4.01

4.02

–

Gold produced

(kg)

345

350

(1)

Gold sold

(kg)

331

364

(9)

Cash operating costs

(R/kg)

257 035

216 006

(19)

Operating proﬁt

(R’000)

3 050

16 889

(82)

Tonnes milled were 1% lower due to technical issues that the shaft

experienced, ice plant underperformance, and disruptions due to

criminal mining activities. Most of these issues have since been

resolved. We have engaged the international original equipment

manufacturers to analyse and assist with the problem of under-

performing ice plants.

The grade remained ﬂ at at 4.01g/t, which is lower than planned and

as a result of the inﬂ uence of the geological features in the north and

south of the shaft.

Cash operating costs in R/kg terms were 19% higher at R257 035/kg,

reﬂ ecting an increase in employees following the closure of the

Brand 3 shaft and the transfer of a portion of costs from capital

because of the transition from project to production.

Higher costs and a 1% drop in gold production resulted in a drastic

decline in operating proﬁ t of just over R3.1 million – down 82% from

the previous quarter.

As mentioned in the December 2009 quarter, the phase one

infrastructure has been completed. The original skips and cages were

replaced with an eight-tonne skip and a detachable cage in January

2010, making hoisting more efﬁ cient and effective.

Results for the third quarter
ended 31 March 2010

Target

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

194

191

Grade

(g/t)

4.40

4.14

Gold produced

(kg)

853

791

Gold sold

(kg)

800

733

Cash operating costs

(R/kg)

192 393

182 513

(5)

Operating proﬁt

(R’000)

41 800

46 626

(10)

Tonnes milled at Target were up by 2% in spite of disruptions following

the December break. The operation continues to deliver consistent

tonnes in line with its plan. This is achieved primarily through better

planning and design work of the massives stopes, and the correct

execution of the loading plan.

The grade improved 6% from 4.14g/t to 4.40g/t.

Cash operating costs were 13% higher, due mainly to increases in

stores, plant costs, overheads and bonuses paid to employees on the

back of improved production performance.

Cash operating proﬁ t for the quarter fell 10% mainly as a result of an

increase in operating costs.

The signs of continued improvements in safety, production and

proﬁ tability at Target are encouraging. Good progress was made on the

pre-feasibility study of the Block 3 Project. A sounder understanding of

the ore body resulted in better grade predictions, which will improve

the planning process going forward.

Tshepong

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

360

396

(9)

Grade

(g/t)

4.54

4.27

Gold produced

(kg)

1 636

1 692

(3)

Gold sold

(kg)

1 570

1 761

(11)

Cash operating costs

(R/kg)

163 323

162 528

(1)

Operating proﬁt

(R’000)

167 098

176 046

(5)

A slow start-up and increases in heat intensity in the shaft after the

December break, together with unexpected faulting during the quarter,

resulted in Tshepong’s tonnage decreasing 9% to 360 000t.

A 6% improvement in grade was recorded. While face grade remains

a challenge as panels are mined on the edge of the pay shoot where

the values are more erratic, new evaluation models were ﬁ nalised in

January 2010 and the grades achieved at the end of February 2010 and

at the end of March 2010 were in line with the grades indicated by the

updated model during pre-planning processes.

A positive trend in the mine call factor (MCF) was also achieved during

the March 2010 quarter. The MCF of 71.9% was 7% above the plan.

Tshepong’s cash operating costs decreased by 3% overall due

mainly to a reduction in stores costs resulting from strict cost control

measures. The R/kg cash cost remained fairly ﬂ at at R163 323/kg. Cash

operating proﬁ t was 5% lower at R167.1 million due to a 3% decline in

gold production.

Virginia

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

400

471

(15)

Grade

(g/t)

3.11

3.37

(8)

Gold produced

(kg)

1 242

1 585

(22)

Gold sold

(kg)

1 212

1 566

(23)

Cash operating costs

(R/kg)

257 677

241 214

(7)

Operating proﬁt

(R’000)

19 397

38 313

(49)

Tonnage was down 15%, 10% of which was due to the Brand 3 closure.

The remaining drop in tonnes resulted mainly from Merriespruit 1 and

3 shafts.

Overall, the grade was 8% lower at 3.11g/t due to several pay channel

changes made during the quarter. A ﬁ re in three high-grade panels at

Unisel also affected the grade negatively.

Cash operating costs were down 16% or R62.8 million. The main

contributor to this was the closure of Brand 3 (about R55 million).

Lower electricity, stores and overheads costs during the quarter also

contributed. Unit cash costs were 7% higher at R257 677/kg however,

due to the 22% drop in gold production, operating proﬁ t showed a

signiﬁ cant reduction of 49% to R19.4 million.

Consequently, after closely monitoring the under-performance of the

shafts with depleted orebodies at Virginia, a decision was made to

close Merriespruit 1 and 3 and Harmony 2 shafts during the June 2010

quarter.

Old Pamodzi Free State shafts

Target 3 (formerly Lorraine 3 shaft) and President Steyn

Harmony ofﬁ cially took over the old Pamodzi Free State assets from

the liquidators on 18 February 2010. Work started to get these shafts

back to production and 1 089 people have since been re-called to

work at these shafts. The start-up phase is slower than anticipated due

to the condition of the infrastructure and the working places. A few

panels have begun production and during the quarter under review,

29kg (which have been capitalised) was produced in total – 25kg from

Target 3 shaft and 4kg from President Steyn shaft.

South African surface operations

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

2 277

2 292

(1)

Grade

(g/t)

0.44

0.34

Gold produced

(kg)

1 009

783

Gold sold

(kg)

978

826

Cash costs

(R/kg)

159 361

173 447

Operating proﬁt

(R’000)

98 522

76 864

Kalgold

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

394

423

(7)

Grade

(g/t)

0.89

0.83

Gold produced

(kg)

351

350

–

Gold sold

(kg)

320

393

(19)

Cash operating costs

(R/kg)

185 880

185 666

–

Cash costs

(R/ton)

166

154

(8)

Operating proﬁ t

(R’000)

26 292

32 385

(19)

Tonnes milled during the quarter decreased by 7% to 394 000t, mainly

due to heavy rainfall in February 2010.

Production from the pit was affected by six days of industrial action by

employees of the mining contractor, arising from an unresolved wage

dispute.

Recovered grade was 8% higher at 0.89g/t due to higher-grade blocks

mined. Feeding of higher-grade material from the stockpiles into

the plant ensured that gold production was in line with the previous

quarter.

Cash operating costs in R/kg terms were relatively ﬂ at at R185 880/kg

resulting in a 19% decline in cash operating proﬁ t for the quarter.

Phoenix

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

1 276

1 522

(16)

Grade

(g/t)

0.11

0.12

(6)

Gold produced

(kg)

146

185

(21)

Gold sold

(kg)

146

185

(21)

Cash operating costs

(R/kg)

190 699

154 497

(23)

Cash costs

(R/ton)

(16)

Operating proﬁt

(R’000)

11 219

20 617

(46)

Excessive rainfall in January and February 2010 resulted in Phoenix

performing poorly during the quarter, with tonnes milled down 16%.

The operation recovered fully in March 2010.

Delivered grades increased by 4% but the residue increased from

0.181g/t to 0.190g/t, causing recovered grade to drop 6% to 0.11g/t.

The drop in recovered grade, together with lower tonnes milled,

negatively affected gold production, which dropped from 185kg

to 146kg.

The operation is volume driven and therefore the impact of lower

volumes resulted in the R/kg unit cash costs rising by 23% to

R190 699/kg. This almost halved the cash operating proﬁ t

to R11.2 million.

Rock dumps

March December

Indicator

2010

2009 Variance

Tonnes

(‘000)

607

347

Grade

(g/t)

0.84

0.71

Gold produced

(kg)

512

248

>100

Gold sold

(kg)

512

248

>100

Cash operating costs

(R/kg)

132 244

170 339

Cash costs

(R/ton)

112

122

Operating proﬁt

(R’000)

61 011

23 862

>100

The rock dumps performed exceptionally well during the quarter under

review with a 75% increase in tonnes milled. Gold production more

than doubled from 248kg to 512kg.

Primary contributors to this increase were 212kg from the Free State

rock dumps and 180kg from the Evander surface operation, which

included 86kg of gold from the Winkelhaak plant mill clean-up.

Overall, recovered grade improved 18% for the quarter. The combined

effect of increased volumes and grade resulted in a 156% increase in

cash operating proﬁ t.

Some 61kg of gold were extracted from the Steyn Plant clean-up and

42kg of gold from Freddies 9 rock dump.

Results for the third quarter
ended 31 March 2010

Development

Note:   The ore reserve block grades reflect the grades of the blocks in the life of mine plans of the various operations. Those blocks are to a large
            degree the blocks above a certain cut off grade that has been targeted for mining. The development grades are the grades as sampled in
            the ongoing on-reef development at the operations and no selectivity has been applied from a grade point of view.

Bambanani

Two raises remain to be completed in the sub-shaft area when on-

reef development in this area will come to an end. The Bambanani ore

reserve grade is to a large degree a reﬂ ection of the future extraction

of the high grade Basal Reef shaft pillar and there will be a signiﬁ cant

increase in development grade once on reef development commences

in this pillar.

Doornkop

During the quarter there was a drop in grade due to areas with complex

geology being intersected as well as areas with no carbon present in

the reef that was developed. Generally grades are expected to improve

to the reserve grade as more of the South reef is developed.

Kusasalethu

Generally the grades on both the Old and New Mine returned the

expected grade, with the development grades expected to continue at

reserve grade over the next quarter.

Evander

Development reef metres were mainly from the upper levels where

the grades are lower. Grades are expected to improve over the next

quarter, provided that certain environmental challenges in the decline

section can be overcome.

Ore Reserve Block Grades v Development Grades

Ore Reserve block grade
(cmg/t)

Rolling 4 quarter average
development grade
(cmg/t)

Current quarter
development grade
(cmg/t)

International operations

Morobe Mining JV, PNG (50%)

Hidden Valley

Harmony’s 50% share of gold production for the quarter was 550kg.

Production for the March 2010 quarter was impacted by delays in

the commissioning process, mainly due to technical issues such as

premature mill gear failure and feed conveyor failure from collapsed

rollers due to ﬁ nes. Higher rainfall during the quarter resulted in

accessibility constraints to the site, which further contributed to the

delays.

Commissioning of the processing plant, including the silver ﬂ otation

circuit, was completed during the quarter, with 2 260kg of silver

attributable to Harmony being produced, compared to 826kg in

the previous quarter. Hidden Valley mine and processing plant are

expected to reach their original design capacity and throughput in the

June 2010 quarter.

The mine’s March 2010 quarter results were capitalised.

Waste Metres / Reef Metres / Ave cmg/t

Joel

Most of the on reef development is directed towards 129 level in the

form of winzes (down dip on reef development). Good grades continue

to be intersected in this area which contributes to a signiﬁ cant portion

of the future reserves of the mine.

Masimong

The development grades at Masimong remain below plan and is a

function of some of the B Reef wide-raises currently outside of the

channel, as well as the grades in the Basal Reef in the South West and

North East of the mine also being below expectation.

Phakisa

The on reef development is still close to the shaft in the lower-

grade southern areas. Grades have remained at the same levels as

the previous quarter and will improve as the development progress

towards the north and more reef is exposed within the major north

west- to south east-trending Basal Reef payshoot. More emphasis will

be placed over the following quarters to access more of the Basal Reef

towards the north.

Target (narrow reef mining)

Current raising for narrow reef stoping is taking place on the EA 8 and

EA 12 reefs in the upper portion of the Van der Heeversrust Member

(Elsburgs – EAs). Values in the EA12’s are encouraging and above

expectation and will generate reserves. The EA8’s on the other hand

are more erratic and further work will be necessary to deﬁ ne mineable

ground.

Tshepong

There was a quarter on quarter improvement in development grades

as the grade of the Basal Reef raises improved. The B Reef grade

decreased quarter on quarter because of areas of non-deposition that

were intersected.

Virginia

In general the development at Unisel continued to produce good

results on the Basal Reef and Leader Reef while the Middle Reef

grades remained disappointing due to the development continuing

to intersect highly channelised areas. There will be limited on reef

development over the next quarter at the remainder of the Virginia

shafts due to restructuring that is currently taking place.

Results for the third quarter
ended 31 March 2010

Joel North surface drilling

The current surface drilling programme involves drilling six holes to a

depth of between 1 250m and 1 400m to the north of the current Joel

mine. This will allow an upgrade of the resource between 129 level

(currently the lowest operational level on Joel) and 137 level. Lift-shaft

deepening or an extension of the current declines will be required to

access this ground.

All intersections showed unfaulted reef bands except for LB25 which

intersected two reef bands, separated by a 2.5m reverse fault. The last

remaining hole, LB22, will be completed in April 2010.

Drilling has shown a wide variety of facies types from west to east.

In the west (LB27, LB28 and LB25), the reef is a VS5, Beatrix, Aandenk

composite. LB24 shows pure Beatrix, while in the east (LB23 and LB22),

VS5 and Beatrix dominate. The facies model continues to be updated

with each new borehole result. Valuation of this area will be undertaken

once all assays have been received. However, it is clear that the Joel

North resource has been substantially increased.

International

PNG Exploration (Harmony 100%)

Drilling started during the quarter at the Kurunga prospect, with

good work done erecting a new exploration camp in a relatively

short timeframe. One heli-portable drill rig was mobilised to site

and collared the ﬁ rst hole of a planned eight-hole programme.

To date, drilling has intersected a zone of mineralised skarn

similar to that observed on surface as hosting gold and copper

mineralisation, from 62m down hole. Results from this zone are

expected during the June quarter. Drilling continued at quarter’s

end.

First-pass exploration at the Bakil prospect, 8km south of Kurunga,
has outlined a signiﬁ cant zone of alteration within host volcanics
and diorite intrusives. Rock chip samples returned to date include
Cu assays of up to 0.7% and 1.3% Cu.

Tenement applications totaling approximately 5 092 km

were

lodged with the Department during the quarter. The tenements
covered two projects areas, namely:

1. Southern Highlands Project (2 798 km

) – These tenements

were pegged to test large scale gold and copper-gold
geophysical targets southwest of Porgera.

2. Central Project (2 994km

) – These tenements were pegged

to target historical gold and copper-gold geochemical
anomalies north of Tolokuma Gold Mine.

Morobe Mining JV Exploration (Harmony 50%)

Golpu continues to grow into a major copper-gold system with
mineralisation extended materially along strike and at depth.

Signiﬁ cant intercepts received during the quarter include:

WR331W-1: 379m @ 0.88g/t Au and 1.05% Cu from 1062m
Including: 156m @ 1.09g/t Au and 1.48% Cu from 1149m

Cut-off

Resource

Average

Source

Year

category

Tonnes

Density

(g/t)

(millions)

(g/t)

(kg)

(oz)

Harmony

March 2010

Indicated

22.64

6.05

136 907

4 401 620

2.663

Inferred

36.87

3.91

144 055

4 631 448

2.663

Total

59.51

4.72

280 962

9 033 067

2.663

Exploration

South Africa

Evander South

An 18 month drilling programme consisting of 24 671m of percussion
and diamond drilling was completed in October 2009.

The geological evaluation has been completed and the model updated.
The shift in the Kimberley Reef sub-crop position to the east has
removed a signiﬁ cant portion of the shallow part of the target area.
However, an additional, larger, shallow resource has been identiﬁ ed.
Geo-technical logging of all of the core was completed during
the quarter.

The new estimate (see table below) indicates a total resource of
9 million ounces (59.5 million tonnes at an average grade of 4.72g/t).
It results in a signiﬁ cant increase in the indicated resource when

compared to the 2007 estimate. The potential reserve in situ has
increased by 20% from 3.68 million ounces to 4.4 million ounces.

As a result of the signiﬁ cant change to the magnitude of the resource
as well as the loss, and gain, of different areas of resource, it was
decided to re-do the pre-feasibility study. The new resource model
appears to lend itself to the mining of a shallow, higher-grade ore body
in the south to start, with mining of the deeper section only occurring
later in the life of the mine. A number of alternatives exist as where
to place a surface shaft, each of which will be investigated in the
pre-feasibility study.

The pre-feasibility study is planned for completion in June 2010, in time

for the reserve to be included in the 2010 declaration.

WR333:

727.5m @ 0.77g/t Au and 1.39% Cu from 551m

Including:

353m @ 1.69g/t Au and 2.34% Cu from 892m

The mineralisation has now been deﬁ ned over a vertical extent of
1 400m. At this stage, mineralisation extends over 500m of strike
but remains open-ended. Drilling is continuing, to scope out the
full size potential of the deposit.

These results will have a profoundly positive impact on the
resource base of the project. The drill programme at Golpu is
testing an exploration target in the range of 500 to 800 million
tonnes (Mt) at high grades of between 0.7% and 1.1% copper (Cu)
and 0.5 to 0.7g/t gold (Au) for 8 to 18 million ounces (Moz) of
gold and 3.5 to 8.8 Mt of copper. This target includes the current
resource.

Golpu could develop into one of the most signiﬁ cant copper-gold
projects in PNG with a possible size potential of 13 Moz Au and
6.5 Mt Cu, putting it on a scale similar to other major copper-gold
projects like OK Tedi and the historic mine in Bougainville. This is
a very exciting possibility for investors.

Exploration at the Tais Creek and Waterfall prospects on ML151

have highlighted signiﬁ cant zones of carbonate-Base Metal style

Au mineralisation, directly adjacent to the Hidden Valley ore body.

Channel sampling of access tracks created to establish access

for ﬁ rst pass drilling has returned several encouraging results,

including:

TCR001:

6m @ 3.07g/t Au from 124m

TCR002 :

20m @ 2.46g/t Au from 362m

10m @ 1.61g/t Au, from 408m

14m @ 2.36g/t Au, from 464m

TCR004 :

6m @ 14.85g/t Au, from 436m

including:

2m @ 31 g/t Au, from 438m

TCR004:

4m @ 10.81g/t Au, from 486m

Three new tenement applications were lodged during the quarter,

comprising a total of 514.5 km

(1) – Refer to www.harmony.co.za for 2009 resource statement.

The diagram below indicates the schematic section through the Golpu deposit showing recent drill intercepts.

Results for the third quarter
ended 31 March 2010

Operating results

(Rand/Metric)

Underground production – South Africa

Surface production – South Africa

Total SA

South

Kusasa-

President

Under-

Total SA

Africa

Harmony

Bambanani

Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn*

Target

Target 3* Tshepong

Virginia

ground

Kalgold

Phoenix

Dumps

Surface

Other

Total

PNG*

Total

Ore milled

– t’000

Mar-10

129

123

138

100

226

212

–

194

–

360

400

1 968

394

1 276

607

2 277

–

4 245

–

4 245

Dec-09

123

148

245

112

235

–

191

–

396

471

2 243

423

1 522

347

2 292

–

4 535

–

4 535

Gold produced

– kg

Mar-10

1 056

452

602

522

1 032

1 038

345

853

1 636

1 242

8 807

351

146

512

1 009

–

9 816

550

10 366

Dec-09

932

490

1 057

591

1 387

1 242

350

–

791

–

1 692

1 585

10 117

350

185

248

783

–

10 900

669

11 569

Yield

– g/tonne Mar-10

8.19

3.67

4.36

5.22

4.57

4.90

4.01

–

4.40

–

4.54

3.11

4.46

0.89

0.11

0.84

0.44

–

2.31

–

2.31

Dec-09

7.58

3.31

4.31

5.28

5.90

5.29

4.02

–

4.14

–

4.27

3.37

4.51

0.83

0.12

0.71

0.34

–

2.40

–

2.40

Cash operating costs – R/kg

Mar-10

165 670

209 476

256 013

172 416

262 738

164 072

257 035

–

192 393

–

163 323 257 677

204 514 185 880

190 699 132 244 159 361

–

199 859

–

199 859

Dec-09

179 746

198 561

249 411

167 232

199 147

142 754

216 006

–

182 513

–

162 528

241 214

193 544

185 666

154 497

170 339

173 447

–

192 101

–

192 101

Cash operating costs – R/tonne Mar-10

1 356

770

1 117

900

1 200

803

1 031

–

846

–

742

800

912

166

112

–

461

–

461

Dec-09

1 362

657

1 076

882

1 175

754

869

–

756

–

694

812

873

154

122

–

462

–

462

Gold sold

– kg

Mar-10

1 013

434

519

501

1 071

996

331

800

1 570

1 212

8 476

320

146

512

978

–

9 454

666

10 120

Dec-09

969

517

1 158

615

1 488

1 227

364

–

733

–

1 761

1 566

10 398

393

185

248

826

–

11 224

416

11 640

Revenue

(R’000)

Mar-10

272 238

113 813

137 637

134 635

285 348

267 519

89 084

–

212 347

–

421 777 324 567 2 258 965

85 675

39 061 137 197 261 933

– 2 520 898

–

2 520 898

Dec-09

256 264

138 750

308 338

163 340

391 228

324 391

96 375

–

195 183

–

465 169

414 601

2 753 639

102 880

49 199

66 106

218 185

–

2 971 824

–

2 971 824

Cash operating

(R’000)

Mar-10

174 429

94 567

153 941

89 745

270 855

169 901

88 508

–

163 656

–

266 394 319 543 1 791 539

64 460

27 783

67 502 159 745

– 1 951 284

–

1 951 284

costs

Dec-09

167 523

97 295

263 627

98 834

276 217

177 301

75 602

–

144 368

–

274 997

382 324

1 958 088

64 983

28 582

42 244

135 809

–

2 093 897

–

2 093 897

Royalty

(R’000)

Mar-10

518

116

179

256

291

406

169

–

455

–

802

492

3 684

784

207

1 050

–

4 734

–

4 734

payments

Dec-09

–

Inventory

(R’000)

Mar-10

(8 080)

(5 566)

(23 102)

(9 690)

6 645

(7 940)

(2 643)

–

6 436

–

(12 517) 14 865

(71 322)

(5 861)

–

8 477

2 616

–

(68 706)

–

(68 706)

movement

Dec-09

8 772

10 029

21 345

5 077

13 964

(2 620)

3 884

–

4 189

–

14 126

(6 036)

72 730

5 512

–

5 512

–

78 242

–

78 242

Operating costs

(R’000)

Mar-10

166 867

89 117

131 018

80 311

277 791

162 367

86 034

–

170 547

–

254 679 305 170 1 723 901

59 383

27 842

76 186 163 411

– 1 887 312

–

1 887 312

Dec-09

176 295

107 324

284 972

103 911

290 181

174 681

79 486

–

148 557

–

289 123

376 288

2 030 818

70 495

28 582

42 244

141 321

–

2 172 139

–

2 172 139

Cash operating proﬁ t (R’000)

Mar-10

105 371

24 696

6 619

54 324

7 557

105 152

3 050

–

41 800

–

167 098

19 397

535 064

26 292

11 219

61 011

98 522

–

633 586

–

633 586

Dec-09

79 969

31 426

23 366

59 429

101 047

149 710

16 889

–

46 626

–

176 046

38 313

722 821

32 385

20 617

23 862

76 864

–

799 685

–

799 685

Capital expenditure

(R’000)

Mar-10

28 958

86 208

30 995

19 500

107 665

48 780

102 914

30 503

82 241

24 796

62 197

43 258

668 015

2 551

927

–

3 478 13 197

684 690

37 940

722 630

Dec-09

27 906

78 720

54 363

32 422

124 700

45 014

137 917

3 974

76 888

2 676

57 462

47 400

689 442

1 786

1 977

–

3 763

18 143

711 348

180 559

891 907

* Production and sales statistics for Hidden Valley, President Steyn and Target 3 (previously known as Lorraine 3) are shown for information purposes.

These mines are in a build-up phase and revenue and cost are currently capitalised until commercial levels of production are reached.

Results for the third quarter
ended 31 March 2010

CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)

Quarter ended

Nine months ended

Year ended

31 March

31 December

31 March¹

31 March

31 March¹

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

Note

R million

Continuing operations

Revenue 2 521 2 971 3 005 8 239 8 833 11 496

Cost of sales

(2 585)

(2 656)

(2 211)

(7 845)

(6 973)

(9 836)

Production cost (1 887) (2 172) (1 830) (6 254) (5 737) (7 657)

Amortisation and depreciation (324) (321) (303) (995) (921) (1 467)

Impairment of assets (196) (104) (3) (300) (154) (484)

Employment termination and
restructuring costs (120) (3) (11) (123) (39) (39)

Other items (58) (56) (64) (173) (122) (189)

Gross (loss)/proﬁt (64) 315 794 394 1 860 1 660

Corporate, administration and
other expenditure (108) (116) (80) (312) (263) (362)

Exploration expenditure (74) (50) (75) (184) (212) (289)

Proﬁ t on sale of property,
plant and equipment 1 3 427 4 888 965

Other (expenses)/income – net (2) (20) (101) (94) 43 (101)

Operating (loss)/proﬁt (247) 132 965 (192) 2 316 1 873

Proﬁ t/(loss) from associates 5 25 14 61 (37) 12

Proﬁ t on sale of investment in associate – – – – 1 1

Impairment of investment in associate – – – – (112) (112)

(Loss)/proﬁt on sale of investment
in subsidiary (24) – 6 (24) 6 –

Fair value movement of listed investments

–

(114)

(101)

Proﬁ t on sale of listed investments

–

Impairment of investments

–

(2)

–

Investment income

152

186

337

444

Finance cost

(62)

(37)

(42)

(134)

(190)

(212)

(Loss)/proﬁt before taxation (267) 177 1 098 (100) 2 207 1 905

Taxation (28) (59) (125) (106) (580) (196)

Net (loss)/proﬁ t from continuing
operations

(295)

118

973

(206)

1 627

1 709

Discontinued operations

(Loss)/proﬁ t from discontinued operations

–

(1)

–

1 062

1 218

Net (loss)/proﬁt

(295)

118

972

(206)

2 689

2 927

(Loss)/earnings per ordinary share (cents)

– (Loss)/earnings from continuing

operations

(69)

232

(48)

397

413

– Earnings from discontinued operations

–

259

294

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

(69)

232

(48)

656

707

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

– (Loss)/earnings from continuing

operations

(68)

230

(48)

395

411

– Earnings from discontinued operations

–

258

293

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

(68)

230

(48)

653

704

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

¹ The comparative ﬁ gures are re-presented due to Mount Magnet being reclassiﬁ ed as part of continuing operations. See note 3 in this regard.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)

Quarter ended

Nine months ended

Year ended

31 March

31 December

31 March

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

R million

Net (loss)/proﬁt for the period

(295)

118

972

(206)

2 689

2 927

Attributable to:

Owners of the parent

(295)

118

972

(206)

2 689

2 927

Non-controlling interest

–

Other comprehensive income/(loss)

for the period, net of income tax

(27)

(51)

(220)

(63)

(247)

(450)

Foreign exchange translation

(57)

(203)

(292)

(497)

Repurchase of equity interest

(98)

–

(98)

–

Mark-to-market of available-for-sale investments

(1)

(17)

Total comprehensive (loss)/income
for the period

(322)

752

(269)

2 442

2 477

Attributable to:

Owners of the parent

(322)

752

(269)

2 442

2 477

Non-controlling interest

–

Results for the third quarter
ended 31 March 2010

CONDENSED CONSOLIDATED BALANCE SHEET (Rand)

31 March

31 December

30 June

31 March

2010

2009

(Unaudited)

(Audited)

(Unaudited)

Note

R million

ASSETS

Non-current assets

Property, plant and equipment 6 29 403 28 862 27 912 28 103

Intangible assets 2 210 2 217 2 224 2 223

Restricted cash

147

167

161

167

Restricted investments

1 726

1 697

1 640

1 608

Investments in ﬁnancial assets

Investments in associates

391

385

329

242

Inventories

–

Trade and other receivables

34 052

33 499

32 398

32 433

Current assets

Inventories 5 1 152 1 103 1 035 914

Income and mining taxes 44 55 45 58

Trade and other receivables 1 217 1 108 885 2 871

Restricted cash 6 – 280 – –

Cash and cash equivalents 481 808 1 950 2 839

2 894 3 354 3 915 6 682

Assets of disposal groups classiﬁ ed as held-for-sale 3 – – – 425

2 894 3 354 3 915 7 107

Total assets 36 946 36 853 36 313 39 540

EQUITY AND LIABILITIES

Share capital and reserves

Share capital 28 102 28 096 28 091 28 081

Other reserves 535 375 339 503

Retained earnings 676 971 1 095 857

29 313

29 442

29 525

29 441

Non-current liabilities

Deferred tax

3 326

3 317

3 251

3 796

Provision for environmental rehabilitation

1 704

1 612

1 530

1 366

Retirement beneﬁt obligation and other provisions 167 167 166 268

Borrowings 7 780 565 110 159

5 977 5 661 5 057 5 589

Current liabilities

Borrowings 7 221 460 252 2 681

Trade and other payables 1 418 1 279 1 460 1 489

Income and mining taxes 17 11 19 –

1 656 1 750 1 731 4 170

Liabilities of disposal groups classiﬁed as held-for-sale 3 – – – 340

1 656 1 750 1 731 4 510

Total equity and liabilities 36 946 36 853 36 313 39 540

Number of ordinary shares in issue 426 191 965 426 079 492 425 986 836 425 763 329

Net asset value per share (cents) 6 878 6 910 6 931 6 915

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

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

Other

Retained

capital

reserves

earnings

Total

Note

R million

Balance – 30 June 2009

28 091

339

1 095

29 525

Issue of shares

–

Share-based payments

–

108

–

108

AVRD share issue reserve

–

151

–

151

Comprehensive loss for the period

–

(63)

(206)

(269)

Dividends paid

–

(213)

Balance as at 31 March 2010

28 102

535

676

29 313

Balance - 30 June 2008 25 895 676 (1 832) 24 739

Issue of shares 2 186 – – 2 186

Share-based payments – 74 – 74

Comprehensive income for the period – (247) 2 689 2 442

Balance as at 31 March 2009

28 081

503

857

29 441

Results for the third quarter
ended 31 March 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)

Quarter ended

Nine months ended

Year ended

31 March

31 December

31 March

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

R million

Cash ﬂ ow from operating activities

Cash generated by operations

295

183

985

703

1 871

2 813

Interest and dividends received

156

186

350

457

Interest paid

(32)

(11)

(41)

(52)

(215)

(280)

Income and mining taxes paid

(11)

(34)

(133)

(70)

(276)

(704)

Cash generated by operating activities

318

190

967

767

1 730

2 286

Cash ﬂ ow from investing activities

Decrease/(increase) in restricted cash

301

(283)

(89)

(83)

Net proceeds on disposal of listed investments

–

Proceeds on disposal of subsidiary

–

Net (additions to)/disposals of property,

plant and equipment

(988)

(890)

(645)

(2 785)

979

Other investing activities

(8)

(3)

(163)

(3)

(89)

(79)

Cash (utilised)/generated by investing activities

(671)

(1 147)

(807)

(2 705)

(171)

817

Cash ﬂ ow from ﬁ nancing activities

Borrowings raised

250

686

–

936

500

–

Borrowings repaid

(260)

(18)

(20)

(285)

(1 806)

(3 738)

Ordinary shares issued – net of expenses

955

1 943

1 953

Dividends paid

–

(213)

–

Cash (utilised)/generated by ﬁ nancing activities

(4)

671

935

449

637

(1 785)

Foreign currency translation adjustments

–

229

217

Net (decrease)/increase in cash and cash equivalents

(327)

(286)

1 194

(1 469)

2 425

1 535

Cash and cash equivalents – beginning of period

808

1 094

1 646

1 950

415

Cash and cash equivalents – end of period

481

808

2 840

481

2 840

1 950

Cash and cash equivalents comprises of:

Continuing operations

481

808

2 839

481

2 839

1 950

Discontinuing operations

–

Total cash and cash equivalents

481

808

2 840

481

2 840

1 950

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2010

Accounting policies

Basis of accounting

The condensed consolidated interim ﬁ nancial statements for the period ended 31 March 2010 have been prepared using accounting policies

that comply with International Financial Reporting Standards (IFRS), which are consistent with the accounting policies used in the audited

annual ﬁ nancial statements for the year ended 30 June 2009. These condensed consolidated interim ﬁ nancial statements are prepared in

accordance with IAS 34, Interim Financial Reporting, and in the manner required by the Companies Act of South Africa. They should be read

in conjunction with the annual ﬁ nancial statements for the year ended 30 June 2009.

Cost of sales

Quarter ended

Nine months ended

Year ended

31 March 31 December

31 March¹

31 March

31 March¹

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

R million

Production costs

1 887

2 172

1 830

6 254

5 737

7 657

Amortisation and depreciation

324

321

303

995

921

1 467

Impairment of assets

(2)(3)

196

104

300

154

484

Provision for rehabilitation costs

(2)

Care and maintenance cost of restructured shafts

Employment termination and restructuring costs

120

123

Share-based payments

108

113

Provision for post-retirement beneﬁ ts

–

Total cost of sales

2 585

2 656

2 211

7 845

6 973

9 836

(1) The comparative figures are re-presented due to Mount Magnet being reclassified as part of continuing operations. See note 3 in this regard.

(2) The impairment recorded in the March 2010 quarter relates to Harmony 2 and Merriespruit 1 and 3, which have been placed on care and maintenance.

(3) The impairment recorded in the December 2009 quarter relates to Brand 3 and Evander 2 and 5 which have been placed on care and maintenance.

Disposal groups classified as held-for-sale and discontinued operations

Following approval by the Board of Directors in April 2007, the assets and liabilities related to Mount Magnet (an operation in Australia) were

classiﬁ ed as held-for-sale. This operation also met the criteria to be classiﬁ ed as discontinued operations in terms of IFRS 5. During the June

2009 quarter, it was decided that further drilling at the site to deﬁ ne the ore body would enhance the selling potential of the operation. As a

result, the operation no longer met the requirements of IFRS 5 to be classiﬁ ed as held-for-sale, and was therefore reclassiﬁ ed as continuing

operations again. Consequently, the income statements and earnings per share amounts for all comparative periods have been re-presented

taking this change into account.

(Loss)/earnings per ordinary share

(Loss)/earnings per ordinary share is calculated on the weighted average number of ordinary shares in issue for the quarter ended 31 March

2010: 426.1 million (31 December: 425.9 million, 31 March 2009: 421.0 million), and the nine months ended 31 March 2010: 425.9 million

(31 March 2009: 410.3 million) and the year ended 30 June 2009: 414.1 million.

The fully diluted (loss)/earnings per ordinary share is calculated on the weighted average number of diluted ordinary shares in issue for the

quarter ended 31 March 2010: 429.6 million (31 December 2009: 427.5 million, 31 March 2009: 423.6 million), and the nine months ended

31 March 2010: 429.6 million (31 March 2009: 412.4 million) and the year ended 30 June 2009: 416.0 million.

Results for the third quarter
ended 31 March 2010

Quarter ended

Nine months ended

Year ended

31 March 31 December

31 March¹

31 March

31 March¹

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

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

Basic (loss)/earnings

(69)

232

(48)

656

707

Fully diluted (loss)/earnings

(68)

230

(48)

653

704

Headline (loss)/earnings

(32)

123

275

262

– from continuing operations

(32)

128

236

239

– from discontinued operations

–

(5)

–

R million

Reconciliation of headline (loss)/earnings:

Continuing operations

Net (loss)/proﬁ t

(295)

118

973

(206)

1 627

1 709

Adjusted for (net of tax):

Proﬁ t on sale of property, plant and equipment

(1)

(2)

(437)

(3)

(924)

(975)

Proﬁ t on sale of listed investments

–

(3)

–

(3)

–

Fair value movement of listed investments

–

Foreign exchange gain reclassiﬁ ed from equity

–

(22)

–

(384)

Proﬁ t on liquidation of subsidiaries

(20)

–

(20)

–

Loss on sale of subsidiaries

–

Impairment of investments

–

Proﬁ t on sale of associate

–

(1)

Impairment of investment in associates

–

112

Impairment of property, plant and equipment

162

256

154

457

Headline (loss)/earnings

(137)

207

539

969

989

Discontinued operations

Net (loss)/proﬁ t

–

(1)

–

1 062

1 218

Adjusted for (net of tax):

Proﬁ t on sale of property, plant and equipment

–

(22)

–

(901)

(1 121)

Headline (loss)/earnings

–

(23)

–

161

Total headline (loss)/earnings

(137)

207

516

1 130

1 086

¹ The comparative figures are re-presented due to Mount Magnet being reclassified as part of continuing operations. See note 3 in this regard.

Inventories

During the quarter ended 31 December 2009, the Group concluded two separate purchase agreements with Pamodzi Gold Free State
(Proprietary) Limited (In Provisional Liquidation) (Pamodzi), for the purchase of a waste rock dump and a gold plant to the value of R120 million.
The Group’s intention is to break up the plant and extract the gold in lock-up. The portion of inventory that is expected to be recovered more
than twelve months after balance sheet date has been classiﬁ ed as non-current.

President Steyn and Target 3 assets

The Group entered into two separate purchase agreements with Pamodzi for the purchase of Pamodzi’s Free State North and South Assets
for a total consideration of R280 million.

The Group had an obligation in terms of the agreements to pay an amount equal to the purchase consideration into an escrow account.
On 18 February 2010 the sale of assets agreements became unconditional and the purchase consideration was released from the escrow
account to the liquidators. The cost of the assets was capitalised to property, plant and equipment.

Borrowings

31 March

31 December

30 June

31 March

2010

2009

(Unaudited)

(Audited)

(Unaudited)

R million

Total long-term borrowings

780

565

110

159

Total current portion of borrowings

221

460

252

2 681

Total borrowings

(1)(2)(3)

1 001

1 025

362

2 840

(1)

On 11 December 2009, the Company entered into a loan facility with Nedbank Limited, comprising of a Term Facility of R900 million and a

Revolving Credit Facility of R600 million. Interest accrues on a day-to-day basis over the term of the loan at a variable interest rate, which
is ﬁ xed for a three month period, equal to JIBAR plus 3.5%. Interest is repayable quarterly.

The Term Facility is repayable bi-annually in equal instalments of R90 million over ﬁ ve years. The Revolving Credit Facility is repayable after
three years. The Group drew down R650 million of the Term Facility during December 2009 and a further R250 million during March 2010.

(2)

Included in the borrowings is R99 million (December 2009: R102 million; June 2009: R106 million; March 2009: R168 million) owed to

Westpac Bank Limited in terms of a ﬁ nance lease agreement. The future minimum lease payments are as follows:

31 March

31 December

30 June

31 March

2010

2009

(Unaudited)

(Audited)

(Unaudited)

R million

Due within one year

Due between one and ﬁ ve years

133

102

105

110

178

Future ﬁ nance charges

(3)

(4)

(10)

Total future minimum lease payments

102

106

168

(3)

On 31 March 2010, the Group settled a term loan advanced by Nedbank Limited on 30 July 2003 to African Vanguard Resources (Doornkop)
(Proprietary) Limited (AVRD). This settlement constitute one part of the purchase consideration in a purchase agreement concluded by
the Group on 19 March 2010 (refer to note 10 in this regard). The settlement value amounted to R244 million. Interest accrued during the
nine months ended 31 March 2010 amounted to R17 million (31 March 2009: R22 million).

Dividend declared

On 13 August 2009, the Board of Directors approved a ﬁ nal dividend for the 2009 ﬁ nancial year of 50 SA cents per share. The total dividend
amounting to R213 million was paid on 21 September 2009.

Commitments and contingencies

31 March

31 December

30 June

31 March

2010

2009

(Unaudited)

(Audited)

(Unaudited)

R million

Capital expenditure commitments

Contracts for capital expenditure

375

411

478

790

Authorised by the directors but not contracted for

1 281

1 771

734

1 478

1 656

2 182

1 212

2 268

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

Contingent liability

Class action.

On 18 April 2008, Harmony Gold Mining Company Limited was made aware that it has been named as a defendant in a lawsuit

filed in the U.S. District Court in the Southern District of New York on behalf of certain purchasers and sellers of Harmony’s American
Depositary Receipts (ADRs) with regard to certain of its business practises. Harmony has retained legal counsel.

During January 2009, the plaintiff filed an Amended Complaint with the United States District Court (“Court”). Subsequently, the Company filed
a Motion to Dismiss all claims asserted in the Class Action Case. On 19 March 2010 the Court denied the Company’s application for dismissal
and subsequently the Company filed a Motion for Reconsideration in which it requested the Court to reconsider its judgement. This matter
was heard on 27 April 2010 and the Company’s request for reconsideration of judgement was denied. The parties are scheduled to meet
during May 2010 to agree on the scheduling of the matter. It is currently not possible to estimate if there will be a financial effect, or what
that effect might be.

Results for the third quarter
ended 31 March 2010

10. Subsequent events

On 19 March 2010, Harmony Gold Mining Company Limited (Harmony) concluded an agreement with AVRD, for the purchase of its 26% share
of the mining titles on the Doornkop South Reef for a total consideration of R398 million. The purchase consideration was partially settled by
the payment of a cash amount equal to the AVRD Nedbank loan of R244 million on 31 March 2010, which was initially guaranteed by Harmony
and certain of its subsidiaries. The remaining purchase consideration of R154 million was settled on 28 April 2010 when the deed of cession
was registered in the Mining Titles Registration Ofﬁ ce, with the issue of 2 162 359 Harmony shares. An amount equal to the value of shares
was included under reserves for the current quarter ended 31 March 2010.

In terms of the purchase agreement 975 419 Harmony shares are held in escrow until 1 May 2014.

11. Segment report

The segment report follows on page 25.

12. Reconciliation of segment information to consolidated income statements and balance sheet

31 March

2010

2009

(Unaudited)

R million

The “reconciliation of segment data to consolidated ﬁ nancials” line item in the segment reports
are broken down in the following elements, to give a better understanding of the differences
between the income statement, balance sheet and segment report:

Revenue from:

Discontinued operations

–

614

Production costs from:

Discontinued operations

–

447

Reconciliation of operating profit to gross profit:

Total segment revenue

8 239

9 447

Total segment production costs

(6 254)

(6 184)

Operating proﬁ t as per segment report

1 985

3 263

Less:

Discontinued operations

–

(167)

Operating proﬁ t as per segment report

1 985

3 096

Cost of sales items other than production costs

(1 591)

(1 236)

Amortisation and depreciation

(995)

(921)

Impairment of assets

(300)

(154)

Employment termination and restructuring costs

(123)

(39)

Share-based payments

(108)

(74)

Rehabilitation costs

(15)

(9)

Care and maintenance costs of restructured shafts

(50)

(38)

Provision for former employees’ post retirement beneﬁ ts

–

(1)

Gross profit as per income statements *

394

1 860

Reconciliation of total segment mining assets to consolidated property, plant and equipment:

Property, plant and equipment not allocated to a segment:

Mining assets

767

605

Undeveloped property

5 328

4 809

Other non-mining assets

346

Less:

Non-current assets previously classiﬁ ed as held-for-sale

–

(268)

6 441

5 199

* 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 FOR THE NINE MONTHS ENDED 31 MARCH 2010 (Rand/Metric) (Unaudited)

Production

Operating

Mining

Capital

Kilograms

Tonnes

Revenue

cost

proﬁt

assets

expenditure

produced

milled

R million

t’000

Operations

South Africa

Underground

Bambanani

(2)

762

536

226

947

114

2 938

399

Doornkop

373

298

2 473

238

1 442

401

Evander

736

690

909

137

2 898

642

Joel

426

289

137

138

1 628

348

Kusasalethu

1 026

849

177

2 943

344

4 044

721

Masimong

916

524

392

745

133

3 639

681

Phakisa

250

225

3 983

368

955

244

Target

(2)

627

479

148

2 502

269

2 578

578

Tshepong

1 308

837

471

3 646

191

5 031

1 174

Virginia

1 137

1 094

659

142

4 495

1 415

Surface

All surface operations

(1)

678

433

245

128

2 683

6 661

Total South Africa

8 239

6 254

1 985

19 073

2 062

32 331

13 264

International

Papua New Guinea

(2)

–

3 872

467

1 318

–

Mount Magnet

–

Total international

–

3 889

467

1 318

–

Total operations

8 239

6 254

1 985

22 962

2 529

33 649

13 264

Reconciliation of the segment

information to the consolidated

income statement and

balance sheet (refer to note 12)

–

6 441

8 239

6 254

29 403

Notes:

(1)

Includes Kalgold, Phoenix, Dumps and President Steyn plant clean-up.

(2)

Production statistics for Hidden Valley, President Steyn and Target 3 (previously known as Lorraine 3) are shown for information purposes. These mines are in a build-up phase and

revenue and costs are currently capitalised until commercial levels of production are reached.

Results for the third quarter
ended 31 March 2010

SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2009 (Rand/Metric) (Unaudited)

Production

Operating

Mining

Capital

Kilograms

Tonnes

Revenue

cost

proﬁ t

assets

expenditure

produced

milled

R million

kg*

t’000*

Continuing operations

South Africa

Underground

Bambanani

728

499

229

671

2 904

379

Doornkop

248

214

2 396

302

919

401

Evander

1 166

736

430

1 185

154

4 564

877

Joel

394

278

116

131

1 551

382

Kusasalethu

1 090

827

263

2 642

311

3 953

729

Masimong

907

488

419

674

3 627

668

Phakisa

117

3 541

357

447

118

Target

500

385

115

2 730

249

1 915

477

Tshepong

1 407

743

664

3 637

181

5 523

1 027

Virginia

1 568

1 095

473

932

127

6 276

1 696

Surface

All surface operations

(1)

708

400

308

148

2 755

6 470

Total South Africa

8 833

5 737

3 096

18 687

1 902

34 434

13 224

International

Papua New Guinea

(2)

–

3 949

1 376

–

Mount Magnet

–

268

–

Total international

–

4 217

1 376

–

Total continuing operations

8 833

5 737

3 096

22 904

3 278

34 434

13 224

Discontinued operations

Cooke operations

614

447

167

–

2 500

1 287

Total discontinued operations

614

447

167

–

2 500

1 287

Total operations

9 447

6 184

3 263

22 904

3 365

36 934

14 511

Reconciliation of the segment

information to the consolidated

income statement and

balance sheet (refer to note 12)

(614)

(447)

5 199

8 833

5 737

28 103

Notes:

(1)

Includes Kalgold, Phoenix and Dumps.

(2)

Included in the capital expenditure is an amount of R1 137 million contributed by Newcrest in terms of the farm-in agreement.

Harmony Quarterly Report 2009 27

Results for the third quarter ended

31 March 2010

(US$)

Incorporated in the Republic of South Africa
Registration Number 1950/038232/06
(“Harmony” or “Company”)
JSE Share code: HAR
NYSE Share code: HMY
ISIN: ZAE 000015228

Results for the third quarter
ended 31 March 2010

Results for the third quarter
ended 31 March 2010

Operating results

(US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Total SA

South

Kusasa-

President

Under-

Total SA

Africa

Harmony

Bambanani

Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn*

Target

Target 3* Tshepong

Virginia

ground

Kalgold

Phoenix

Dumps

Surface

Other

Total

PNG*

Total

Ore milled

– t’000

Mar-10

142

136

152

110

249

234

–

214

–

397

441

2 170

434

1 407

669

2 510

–

4 680

–

4 680

Dec-09

136

163

270

124

259

–

211

–

437

519

2 474

466

1 678

383

2 527

–

5 001

–

5 001

Gold produced

– oz

Mar-10

33 951

14 532

19 355

16 783

33 180

33 372

11 092

129

27 425

804

52 599

39 931

283 153

11 285

4 694

16 461

32 440

–

315 593

17 683

333 276

Dec-09

29 964

15 754

33 983

19 001

44 593

39 931

11 253

–

25 431

–

54 399

50 959

325 268

11 253

5 948

7 973

25 174

–

350 442

21 514

371 956

Yield

– oz/t

Mar-10

0.239

0.107

0.127

0.153

0.133

0.143

0.117

–

0.128

–

0.132

0.091

0.130

0.026

0.003

0.025

0.013

–

0.067

–

0.071

Dec-09

0.220

0.097

0.126

0.153

0.172

0.154

0.117

–

0.121

–

0.124

0.098

0.131

0.024

0.004

0.021

0.010

–

0.070

–

0.070

Cash operating costs – $/oz

Mar-10

687

868

1 061

715

1 089

680

1 066

–

798

–

677

1 068

848

771

791

548

661

–

829

–

829

Dec-09

747

825

1 036

695

827

593

897

–

758

–

675

1 002

804

771

642

708

721

–

798

–

798

Cash operating costs – $/t

Mar-10

164

135

109

145

124

–

102

–

110

–

Dec-09

165

130

106

142

105

–

106

–

Gold sold

– oz

Mar-10

32 569

13 953

16 686

16 108

34 433

32 022

10 642

129

25 721

804

50 477

38 967

272 511

10 288

4 694

16 461

31 443

–

303 954

21 412

325 366

Dec-09

31 154

16 622

37 231

19 773

47 840

39 449

11 703

–

23 566

–

56 617

50 348

334 303

12 635

5 948

7 973

26 556

–

360 859

13 375

374 234

Revenue

($’000)

Mar-10

36 287

15 170

18 346

17 946

38 034

35 658

11 874

–

28 304

–

56 219

43 262

301 100

11 420

5 206

18 287

34 913

–

336 013

–

336 013

Dec-09

34 225

18 530

41 179

21 814

52 249

43 323

12 871

–

26 067

–

62 124

55 371

367 753

13 740

6 571

8 829

29 140

–

396 893

–

396 893

Cash operating

($’000)

Mar-10

23 250

12 605

20 518

11 963

36 102

22 646

11 797

–

21 813

–

35 507

42 591

238 792

8 592

3 703

8 997

21 292

–

260 084

–

260 084

costs

Dec-09

22 373

12 994

35 208

13 200

36 889

23 679

10 097

–

19 281

–

36 726

51 060

261 507

8 679

3 817

5 642

18 138

–

279 645

–

279 645

Royalty

($’000)

Mar-10

–

107

492

104

140

–

632

–

632

payments

Dec-09

–

Inventory

($’000)

Mar-10

(1 077)

(742)

(3 079)

(1 292)

886

(1 058)

(352)

–

858

–

(1 668)

(1 981)

(9 505)

(781)

–

1 130

349

–

(9 156)

–

(9 156)

movement

Dec-09

1 172

1 339

2 851

678

1 865

(350)

519

–

559

–

1 887

(806)

9 714

736

–

736

–

10 450

–

10 450

Operating costs

($’000)

Mar-10

22 242

11 878

17 463

10 705

37 027

21 642

11 468

–

22 732

–

33 946

40 676

229 779

7 915

3 711

10 155

21 781

–

251 560

–

251 560

Dec-09

23 545

14 333

38 059

13 878

38 754

23 329

10 616

–

19 840

–

38 613

50 254

271 221

9 415

3 817

5 642

18 874

–

290 095

–

290 095

Operating proﬁ t

($’000)

Mar-10

14 045

3 292

883

7 241

1 007

14 016

406

–

5 572

–

22 273

2 586

71 321

3 505

1 495

8 132

13 132

–

84 453

–

84 453

Dec-09

10 680

4 197

3 120

7 936

13 495

19 994

2 255

–

6 227

–

23 511

5 117

96 532

4 325

2 754

3 187

10 266

–

106 798

–

106 798

Capital expenditure

($’000)

Mar-10

3 860

11 491

4 131

2 599

14 351

6 502

13 717

4 066

10 962

3 305

8 290

5 766

89 040

340

124

–

464

1 759

91 263

5 057

96 320

Dec-09

3 727

10 513

7 260

4 330

16 654

6 012

18 419

531

10 269

357

7 674

6 330

92 076

239

264

–

503

2 423

95 002

24 114

119 116

* Production and sales statistics for Hidden Valley, President Steyn and Target 3 (previously known as Lorraine 3) are shown for information purposes.

These mines are in a build-up phase and revenue and cost are currently capitalised until commercial levels of production are reached.

Results for the third quarter
ended 31 March 2010

CONDENSED CONSOLIDATED INCOME STATEMENT (US$)

(Convenience translation)

Quarter ended

Nine months ended

Year ended

31 March

31 December

31 March¹

31 March

31 March¹

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

US$ million

Continuing operations
Revenue

336

397

303

1 085

961

1 277

Cost of sales

(345)

(355)

(222)

(1 034)

(758)

(1 104)

Production cost

(252)

(290)

(184)

(824)

(624)

(850)

Amortisation and depreciation

(43)

(31)

(131)

(100)

(167)

Impairment of assets

(26)

(14)

–

(40)

(17)

(61)

Employment termination and restructuring costs

(16)

–

(1)

(16)

(4)

Other items

(8)

(6)

(23)

(13)

(22)

Gross (loss)/proﬁt

(9)

203

173

Corporate, administration and other expenditure

(14)

(15)

(8)

(41)

(29)

(40)

Exploration expenditure

(10)

(7)

(8)

(25)

(23)

(32)

Proﬁ t on sale of property, plant and equipment

–

116

Other (expenses)/income – net

–

(2)

(10)

(12)

(3)

Operating (loss)/proﬁt

(33)

(26)

252

214

Proﬁ t/(loss) from associates

(4)

Impairment of investment in associate

–

(13)

(14)

(Loss)/proﬁ t on sale of investment in subsidiary

(3)

–

(3)

–

Fair value movement of listed investments

–

(13)

(10)

Proﬁ t on sale of listed investments

–

Investment income

Finance cost

(8)

(5)

(4)

(18)

(21)

(24)

(Loss)/proﬁ t before taxation

(35)

111

(13)

239

216

Taxation

(4)

(8)

(13)

(14)

(63)

(23)

Net (loss)/proﬁt from continuing operations

(39)

(27)

176

193

Discontinued operations
Proﬁ t from discontinued operations

–

116

118

Net (loss)/proﬁt

(39)

(27)

292

311

(Loss)/earnings per ordinary share (cents)
– (Loss)/earnings from continuing operations

(9)

(6)

– Earnings from discontinued operations

–

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

(9)

(6)

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

(9)

(6)

– Earnings from discontinued operations

–

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

(9)

(6)

¹ The comparative ﬁ gures are re-presented due to Mount Magnet being reclassiﬁ ed as part of continuing operations.

The currency conversion average rates for the quarter ended: March 2010: US$1 = R7.50 (December 2009: US$1 = R7.49, March 2009: US$1=R9.92).

The currency conversion average rates for the nine months ended: March 2010: US$1 = R7.59 (March 2009: US$1 = R9.19).

The income statement for the year ended 30 June 2009 has been extracted from the 2009 Annual Report.

Note on convenience translations

Except where speciﬁ c statements have been extracted from the 2009 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 ﬁ nancial statements presented on page 30 to 36.

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (US$)

(Convenience translation)

Quarter ended

Nine months ended

Year ended

31 March

31 December

31 March

June

2010

2009

2010

2009

(Unaudited)

(Audited)

US$ million

Net (loss)/proﬁ t for the period

(39)

(27)

292

311

Attributable to:

Owners of the parent

(39)

(27)

292

311

Non-controlling interest

–

Other comprehensive (loss)/income

for the period, net of income tax

(4)

(7)

(22)

(9)

(27)

111

Foreign exchange translation

(8)

(20)

(32)

105

Repurchase of equity interest

(13)

–

(13)

–

Mark-to-market of available-for-sale investments

–

(2)

–

Total comprehensive (loss)/income for the period

(43)

(36)

265

422

Attributable to:

Owners of the parent

(43)

(36)

265

422

Non-controlling interest

–

The currency conversion average rates for the quarter ended: March 2010: US$1 = R7.50 (December 2009: US$1 = R7.49,
March 2009: US$1=R9.92).

The currency conversion average rates for the nine months ended: March 2010: US$1 = R7.59 (March 2009: US$1 = R9.19).

The statement of other comprehensive income for the year ended 30 June 2009 has been extracted from the 2009 Annual Report.

Results for the third quarter
ended 31 March 2010

CONDENSED CONSOLIDATED BALANCE SHEET (US$)

(Convenience translation)

31 March

31 December

30 June

31 March

2010

2009

(Unaudited)

(Audited)

(Unaudited)

US$ million

ASSETS

Non-current assets

Property, plant and equipment

4 020

3 916

3 614

2 964

Intangible assets

302

301

288

234

Restricted cash

Restricted investments

236

230

212

170

Investments in ﬁ nancial assets

Investments in associates

Inventories

–

Trade and other receivables

4 654

4 545

4 195

3 422

Current assets

Inventories

158

150

134

Income and mining taxes

Trade and other receivables

166

150

115

303

Restricted cash

–

Cash and cash equivalents

110

253

299

396

455

508

704

Assets of disposal groups classiﬁ ed as held-for-sale – – – 45

396 455 508 749

Total assets

5 050

5 000

4 703

4 171

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

3 842

3 812

4 004

2 962

Other reserves

(72)

Retained earnings/(accumulated loss)

132

(108)

4 007

3 995

3 824

3 105

Non-current liabilities

Deferred tax

455

450

421

401

Provisions for other liabilities and charges

233

219

198

144

Retirement beneﬁ t obligation and other provisions

Borrowings

107

818

769

655

590

Current liabilities

Borrowings

283

Trade and other payables

193

173

189

157

Income and mining taxes

–

225

236

224

440

Liabilities of disposal groups classiﬁ ed as held-for-sale

–

225

236

224

476

Total equity and liabilities

5 050

5 000

4 703

4 171

Number of ordinary shares in issue

426 191 965

426 079 492

425 986 836

425 763 329

Net asset value per share (cents)

941

937

898

729

The balance sheet for March 2010 converted at a conversion rate of US$1 = R7.31 (December 2009: US$1 = R7.37, March 2009: US$1 = R9.48).

The balance sheet as at 30 June 2009 has been extracted from the 2009 Annual Report.

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

(Convenience translation)

Other

Retained

capital

reserves

earnings

Total

US$ million

Balance – 30 June 2009

3 840

151

4 037

Issue of shares

–

Share-based payments

–

AVRD share issue reserve

–

Comprehensive loss for the period

–

(9)

(27)

(36)

Dividends paid

–

(29)

Balance as at 31 March 2010

3 842

4 010

Balance – 30 June 2008

2 731

(193)

2 609

Issue of shares

231

–

231

Share-based payments

–

Comprehensive income for the period

–

(27)

292

265

Balance as at 31 March 2009

2 962

3 113

The currency conversion closing rates for the nine months ended: March 2010: US$1 = R7.31 (March 2009: US$1 = R9.48).

Results for the third quarter
ended 31 March 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (US$)

(Convenience translation)

Quarter ended

Nine months ended

Year ended

31 March

31 December

31 March

30 June

2010

2009

2010

2009

(Unaudited)

(Audited)

US$ million

Cash ﬂ ow from operating activities
Cash generated by operations

204

319

Interest and dividends received

Interest paid

(4)

(1)

(4)

(7)

(23)

(31)

Income and mining taxes paid

(1)

(5)

(13)

(9)

(30)

(85)

Cash generated by operating activities

102

189

254

Cash ﬂ ow from investing activities
Decrease/(increase) in restricted cash

(38)

–

(10)

(9)

Net proceeds on disposal of listed investments

–

Proceeds on disposal of subsidiary

–

Net (additions to)/disposals of property,
plant and equipment

(131)

(117)

(65)

(367)

111

Other investing activities

(1)

–

(16)

–

(10)

(8)

Cash (utilised)/generated by investing activities

(89)

(151)

(81)

(356)

(19)

Cash ﬂ ow from ﬁ nancing activities
Borrowings raised

–

123

–

Borrowings repaid

(35)

(2)

(37)

(196)

(427)

Ordinary shares issued – net of expenses

–

101

211

194

Dividends paid

–

(29)

–

Cash (utilised)/generated by ﬁ nancing activities

(1)

(233)

Foreign currency translation adjustments

–

Net (decrease)/increase in cash and cash equivalents

(44)

(35)

122

(187)

246

200

Cash and cash equivalents – beginning of period

110

145

177

253

Cash and cash equivalents – end of period

110

299

253

Operating activities translated at average rates for the quarter ended: March 2010: US$1 = R7.50 (December 2009: US$1 = R7.49,
March 2009: US$1 = R9.92). Nine months ended March 2010: US$1 = R7.59 (March 2009: US$1 = R9.19.

Closing balance translated at closing rates of: March 2010: US$1 = R7.31 (December 2009: US$1 = R7.37, March 2009: US$1 = R9.48).

The cash ﬂ ow statement for the year ended 30 June 2009 has been extracted from the 2009 Annual Report.

SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2010 (US$/Imperial) (Unaudited)

(Convenience translation)

Production

Operating

Mining

Capital

Ounces

Tons

Revenue

cost

proﬁ t

assets

expenditure

produced

milled

US$ million

t’000

Operations

South Africa

Underground

Bambanani

(2)

100

129

94 459

440

Doornkop

338

46 361

442

Evander

124

93 173

708

Joel

52 342

384

Kusasalethu

135

112

402

130 018

795

Masimong

121

102

116 996

751

Phakisa

545

30 704

269

Target

(2)

342

82 885

638

Tshepong

172

110

498

161 751

1 295

Virginia

150

144

144 517

1 560

Surface

All surface operations

(1)

86 260

7 344

Total South Africa

1 085

824

261

2 607

271

1 039 466

14 626

International

Papua New Guinea

(2)

–

529

42 365

–

Mount Magnet

–

Total international

–

531

42 365

–

Total operations

1 085

824

261

3 138

333

1 081 831

14 626

Notes:

(1)

Includes Kalgold, Phoenix, Dumps and President Steyn Plant clean-up.

(2)

Production statistics for Hidden Valley, President Steyn and Target 3 (previously known as Lorraine 3) are shown for information purposes. These mines are in a build-up phase

and revenue and costs are currently capitalised until commercial levels of production are reached.

All income statement items, including capital expenditure, are converted at the currency convertion rate of US$1 = R7.59.

Mining assets are converted at the currency convertion rate of US$1 = R7.31.

Results for the third quarter
ended 31 March 2010

SEGMENT REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2009 (US$/Imperial) (Unaudited)

(Convenience translation)

Production

Operating

Mining

Capital

Ounces

Tons

Revenue

cost

proﬁ t

assets

expenditure

produced

milled

US$ million

t’000

Continuing operations

South Africa

Underground

Bambanani

93 366

419

Doornkop

253

29 546

442

Evander

127

125

146 736

966

Joel

49 866

421

Kusasalethu

120

279

127 091

804

Masimong

116 611

737

Phakisa

373

14 371

130

Target

288

61 569

526

Tshepong

153

384

177 568

1 132

Virginia

172

120

201 778

1 870

Surface

All surface operations

(1)

88 576

7 135

Total South Africa

961

624

337

1 972

208

1 107 078

14 582

International

Papua New Guinea

(2)

–

416

150

–

Mount Magnet

–

Total international

–

444

150

–

Total continuing operations

961

624

337

2 416

358

1 107 078

14 582

Discontinued operations

Cooke operations

–

80 377

1 419

Total discontinued operations

–

80 377

1 419

Total operations

1 030

674

356

2 416

367

1 187 455

16 001

Notes:

(1)

Includes Kalgold, Phoenix and Dumps.

(2)

Included in the capital expenditure is an amount of US$126 million contributed by Newcrest in terms of the farm-in agreement.

All income statement items, including capital expenditure converted at a conversion rate of US$1 = R9.19.

Mining assets converted at a conversion rate of US$1 = R9.48.

DEVELOPMENT RESULTS (Metric)

Quarter ended 31 March 2010

Channel

Reef

Sampled

Width

Value

Gold

(metres)

(cm’s)

(g/t)

(cmg/t)

Tshepong

Basal

605

632

10.17

113.57

1 154

B Reef

113.40

7.08

803

All Reefs

688

716

22.28

49.97

1 113

Phakisa

Basal

306

324

29.45

26.98

794

All Reefs

306

324

29.45

26.98

794

Bambanani

Basal

98.1

89.65

18.71

1 677

All Reefs

89.65

18.71

1 677

Doornkop

Kimberley Reef

228.6

156

357.12

1.45

516

South Reef

309.3

273

45.29

13.82

626

All Reefs

538

429

158.68

3.69

586

Kusasalethu

VCR Reef

703.1

718

69.75

17.07

1 191

All Reefs

703

718

69.75

17.07

1 191

Target

Elsburg

203.9

165

169.30

8.78

1 486

All Reefs

204

165

169.30

8.78

1 486

Masimong

Basal

410.8

278

55.59

15.57

865

All Reefs

411

278

55.59

15.57

865

Evander

Kimberley

342.9

327

47.09

20.65

972

All Reefs

343

327

47.09

20.65

972

Virginia

(incl. Unisel & Brand 3)

Basal

853.6

754

86.61

10.74

930

Leader

585.8

492

146.21

7.72

1 129

A Reef

255.3

252

44.31

14.26

632

Middle

198.3

120

134.58

3.91

526

B Reef

84.4

116

62.64

8.94

560

All Reefs

1 977

1 734

99.09

8.99

890

Joel

Beatrix

563.9

594

83.17

13.75

1 143

All Reefs

564

594

83.17

13.75

1 143

Total
Harmony

Basal

2 273

2 068

50.24

19.86

997.71

Beatrix

564

594

83.17

13.75

1 143.26

Leader

586

492

146.21

7.72

1 128.67

B Reef

167

200

83.96

7.88

661.81

A Reef

255.3

252

44.31

14.26

631.81

Middle

198.3

120

134.58

3.91

525.68

Elsburg

203.9

165

169.30

8.78

1 486.00

Kimberley

571.5

483

147.22

5.60

825.09

South Reef

309

273

45.29

13.82

625.90

VCR

703

718

69.75

17.07

1 190.97

All Reefs

5 832

5 365

80.30

12.35

992

DEVELOPMENT RESULTS (Imperial)

Quarter ended 31 March 2010

Channel

Reef

Sampled

Width

Value

Gold

(feet)

(inches)

(oz/t)

(in.oz/t)

Tshepong

Basal

1 986

2 073

4.00

3.32

B Reef

271

276

45.00

0.20

All Reefs

2 257

2 349

9.00

1.42

Phakisa

Basal

1 003

1 063

12.00

0.76

All Reefs

1 003

1 063

12.00

0.76

Bambanani

Basal

322

262

35.00

0.55

All Reefs

322

262

35.00

0.55

Doornkop

Kimberley Reef

750

512

141.00

0.04

South Reef

1 015

896

18.00

0.40

All Reefs

1 765

1 407

62.00

0.11

Kusasalethu

VCR Reef

2 307

2 356

27.00

0.51

All Reefs

2 307

2 356

27.00

0.51

Target

Elsburg

669

541

67.00

0.25

All Reefs

669

541

67.00

0.25

Masimong

Basal

1 348

912

22.00

0.45

All Reefs

1 348

912

22.00

0.45

Evander

Kimberley

1 125

1 073

19.00

0.59

All Reefs

1 125

1 073

19.00

0.59

Virginia

(incl. Unisel & Brand 3)

Basal

2 801

2 474

34.00

0.31

Leader

1 922

1 614

58.00

0.22

A Reef

838

827

17.00

0.43

Middle

651

394

53.00

0.11

B Reef

277

381

25.00

0.26

All Reefs

6 488

5 689

39.00

0.26

Joel

Beatrix

1 850

1 949

33.00

0.40

All Reefs

1 850

1 949

33.00

0.40

Total
Harmony

Basal

7 459

6 785

20.00

0.57

11.46

Beatrix

1 850

1 949

33.00

0.40

13.13

Leader

1 922

1 614

58.00

0.22

12.96

B Reef

548

656

33.00

0.23

7.60

A Reef

838

827

17.00

0.43

7.26

Middle

651

394

53.00

0.11

6.04

Elsburg

669

541

67.00

0.25

17.06

Kimberley

1 875

1 585

58.00

0.16

9.47

South Reef

1 015

896

18.00

0.40

7.19

VCR

2 307

2 356

27.00

0.51

13.68

All Reefs

19 133

17 602

32.00

0.36

Results for the third quarter
ended 31 March 2010

NOTES

Results for the third quarter
ended 31 March 2010

CONTACT DETAILS

HARMONY GOLD MINING COMPANY LIMITED

Corporate Office

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

Directors

P T Motsepe (Chairman)*

G P Briggs (Chief Executive Officer)

H O Meyer (Financial Director)

H E Mashego ( Executive Director: Organisational

Development and Transformation)

F Abbott (Executive Director)

J A Chissano*

F F T De Buck*, Dr C Diarra*+,

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

M Motloba*, C M L Savage*, A J Wilkens*

(* non-executive)

Mocambican)

(+ US/Mali Citizen)

Investor Relations Team

Esha Brijmohan

Investor Relations Officer

Telephone

+27 11 411 2314

Fax

+27 11 692 3879

Mobile

+27 82 759 1775

E-mail

esha@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

Khanya Maluleke

Telephone

+27 11 411 2019

Fax

+27 11 411 2070

Mobile

+27 82 767 1082

E-mail

Khanya.maluleke@harmony.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
16th Floor, 11 Diagonal Street
Johannesburg, 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
Bechenham
Kent BR3 4TU
United Kingdom
Telephone          :     0871 664 0300 (UK) (calls cost 10p a minute plus network
                              extras, lines are open 8:30 am to 5:30 pm Monday to Friday)
                              or +44 (0) 20 8639 3399 (calls from overseas)
Fax                   :     +44 (0) 20 8639 2220

ADR Depositary

BNY Mellon
101 Barclay Street
New York, NY 10286
United States of America
Telephone : +1888-BNY-ADRS
Fax : +1 212 571 3050

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

NASDAQ

HMY

London Stock Exchange Plc

HRM

Euronext, Paris

Euronext, Brussels

HMY

Berlin Stock Exchange

HAM1

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

ISIN: ZAE 000015228

PRINTED BY INCE (PTY) LTD

W2CF09489

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused

this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: May 10, 2010

Harmony Gold Mining Company Limited

By:

/s/

Hannes Meyer

Name:

Hannes Meyer

Title: Financial Director