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 03 February 2014

Harmony Gold Mining Company

Limited

Randfontein Office Park

Corner Main Reef Road and Ward Avenue

Randfontein, 1759

South Africa

(Address of principal executive offices)

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

F or Form 40-F.)

Form 20-F X Form 40-F

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

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

Securities Exchange Act of 1934.)

Yes No X

Shareholder information

Issued ordinary share capital
at 31 December 2013

435 693 819

Issued ordinary share capital
at 30 September 2013

435 289 890

Market capitalisation

At 31 December 2013 (ZARm)

11 284

At 31 December 2013 (US$m)

1 077

At 30 September 2013 (ZARm)

15 083

At 30 September 2013 (US$m)

1 499

Harmony ordinary share and ADR prices

12-month high (1 January 2013 –
31 December 2013) for ordinary shares

R75.64

12-month low (1 January 2013 –
31 December 2013) for ordinary shares

R24.48

12-month high (1 January 2013 –
31 December 2013) for ADRs

US$8.88

12-month low (1 January 2013 –
31 December 2013) for ADRs

US$2.36

Free float

100%

ADR ratio

1:1

JSE Limited

HAR

Range for quarter (1 October 2013 –
31 December 2013 closing prices)

R24.48 – R36.14

Average daily volume for the quarter
(1 October 2013 – 31 December 2013)

1 180 825 shares

Range for quarter (1 July 2013 –
30 September 2013 closing prices)

R32.74 – R42.47

Average daily volume for the quarter
(1 July 2013 – 30 September 2013)

1 680 746 shares

New York Stock Exchange including
other US trading platforms

HMY

Range for quarter (1 October 2013 –
31 December 2013 closing prices)

US$2.36 – US$3.67

Average daily volume for the quarter
(1 October 2013 – 31 December 2013)

2 722 889

Range for quarter (1 July 2013 –
30 September 2013 closing prices)

US$3.30 – US$4.33

Average daily volume for the quarter
(1 July 2013 – 30 September 2013)

3 824 973

Investors’ calendar

2014

Q3 FY14 presentation
(webcast and conference calls only)

7 May

Q4 FY14 and year-end live presentation
in Johannesburg

14 August

Q1 FY15 presentation
(webcast and conference calls only)

5 November

Annual General Meeting

21 November

Q2 FY14

Harmony Gold Mining Company Limited

(“Harmony” or “Company”)

Incorporated in the Republic of South Africa

Registration number 1950/038232/06

JSE share code: HAR

NYSE share code: HMY

ISIN: ZAE000015228

Results for the second quarter FY14 and

six months ended 31 December 2013

KEY FEATURES

Quarter-on-quarter

Safety improved quarter-on-quarter

Gold production remained steady at 9 515kg (305 913/oz)

•

increase in underground recovered grade of 7% to 4.85g/t

•

Hidden Valley back on track

Reduced overall costs quarter-on-quarter

•

cash operating costs decreased by 5% to R308 665/kg (US$949/oz)

•

reduced all-in sustaining cost from R404 694/kg to R397 503/kg
(US$1 264/oz to US$1 222/oz)

•

restructured by reducing low grade mining

Operating profit¹ decreased from R1 037 million (US$104
million)

to R986 million (US$97 million)

Headline loss per share of 21 SA cents (US$2 cents)

All figures represent continuing operations unless stated otherwise
1 Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the

operating profit line in the income statement

RESULTS FOR THE SECOND QUARTER ENDED 31 DECEMBER 2013

Quarter

Dec

2013

Quarter

Sep

2013

Q-on-Q

Variance

6 months

ended

Dec

2013

6 months

ended

Dec

2012*

Variance

Gold produced

– kg

9 515

9 635

(1)

19 150

19 087

–

– oz

305 913

309 773

(1)

615 686

613 658

–

Cash operating
costs

– R/kg

308 665

324 272

316 517

301 393

(5)

– US$/oz

949

1 013

981

1 108

Gold sold

– kg

9 798

9 353

19 151

19 318

(1)

– oz

315 014

300 703

615 717

621 089

(1)

Underground
grade

– g/t

4.85

4.55

4.69

4.64

All–in sustaining
costs

– R/kg

397 503

404 694

401 021

396 968

(1)

– US$/oz

1 222

1 264

1 242

1 459

Gold price
received

– R/kg

415 532

429 566

(3)

422 386

460 244

(8)

– US$/oz

1 277

1 342

(5)

1 309

1 692

(23)

Operating
profit*¹

– Rm

986

1 037

(5)

2 022

3 057

(34)

–US$m

104

(7)

201

362

(44)

Basic
(loss)/earnings
per share*²

– SAc/s

(21)

>(100)

(18)

289

>(100)

– USc/s

(2)

–

(100)

(2)

>(100)

Headline
(loss)/earnings*²

– Rm

(91)

>(100)

(71)

1 205

>(100)

– US$m

(10)

>(100)

(7)

142

>(100)

Headline
(loss)/earnings
per share*²

– SAc/s

(21)

>(100)

(16)

280

>(100)

– USc/s

(2)

0.5

>(100)

(2)

>(100)

Exchange rate

– R/US$

10.12

9.96

10.04

8.46

* Comparative figures in these line items for the six months ended December 2012 have been restated as a result of the adoption of

IFRIC 20 Stripping costs in the production phase of a surface mine.

¹ Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the

operating profit line in the income statement.

² The six months ended December 2012 include discontinued operations.

CONTACT DETAILS

Corporate Office

Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue
Randfontein, 1759, South Africa
Telephone: +27 (0)11 411 2000
Website: www.harmony.co.za

Directors

P T Motsepe* Chairman
M Motloba*^ Deputy Chairman
G P Briggs Chief Executive Officer

F Abbott Financial Director

H E Mashego Executive Director

F F T De Buck*^ Lead independent director

J A Chissano*

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

C Markus*^, M Msimang*^, K T Nondumo*^,

V P Pillay *^, J Wetton*^, A J Wilkens*

* Non-executive

^ Independent
1 Mozambican

Investor relations team

Email: HarmonyIR@harmony.co.za

Henrika Ninham
Investor Relations Manager
Tel: +27 (0)11 411 2314
Mobile: +27 (0)82 759 1775
Email: henrika@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242

Email: marian@harmony.co.za

Company Secretary

Riana Bisschoff

Telephone: +27 (0)11 411 6020

Mobile: +27 (0)83 629 4706

E-mail: riana.bisschoff@harmony.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)

13th Floor, Rennie House

19 Ameshoff Street

Braamfontein, 2001

PO Box 4844, Johannesburg, 2000, South Africa

Telephone: +27 (0)86 154 6572
Fax: +27 (0)86 674 4381

ADR Depositary

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station

PO Box 2050, New York, NY 10272-2050

Email queries: db@amstock.com

Toll free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334

Sponsor

J.P. Morgan Equities South Africa (Pty) Ltd

1 Fricker Road, corner Hurlingham Road

Illovo

Johannesburg, 2196

Private Bag X9936, Sandton, 2146, South Africa

Telephone: +27 (0)11 507 0300
Fax: +27 (0)11 507 0503

Trading Symbols

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

Registration number

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

ISIN

ZAE000015228

Harmony’s Integrated Annual Report,

Notice of Annual General Meeting and its

Annual Report filed on a Form 20F with the United States’

Securities and Exchange Commission for the year ended

30 June 2013 were released on 25 October 2013.

www.harmony.co.za/investors

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 with respect to Harmony’s financial condition, results of operations,business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters. Statements in this quarter that are not historical facts are “forward-looking statements” for the purpose of the safe harbour provided by Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words “expect”, “anticipates”, “believes”, “intends”, “estimates” and similar expressions. These statements are only predictions. All forward-looking statements involve a number of risks, uncertainties and other factors and we cannot assure you that such statements will prove to be correct. Risks, uncertainties and other factors could cause actual events or results to differ from those expressed or implied by the forward-looking statements. These forward-looking statements, including, among others, those relating to the future business prospects, revenues and income of Harmony, wherever they may occur in this quarterly report and the exhibits to this quarterly report, are necessarily estimates reflecting the best judgement of the senior management of Harmony and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this quarterly report. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: overall economic and business conditions in the countries in which we operate; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions; increases or decreases in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labour disruptions; availability, terms and deployment of capital; changes in government regulations, particularly mining rights and environmental regulations; fluctuations in exchange rates; currency devaluations and other macro-economic monetary policies; and socio-economic instability in the countries in which we operate.

Competent person’s declaration

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

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

Resources and Reserves South Africa: Jaco Boshoff, Pr. Sci. Nat., who has 18 years’ relevant experience and is registered with the South African Council for Natural Scientific Professions (SACNASP).

Resources and Reserves Papua New Guinea: Gregory Job, BSc, MSc,
who has 25 years relevant experience and is a member of the Australian
Institute of Mining and Metallurgy (AusIMM).

Mr Boshoff and Mr Job are full-time employees of Harmony Gold Mining
Company Limited. These competent persons consent to the inclusion
in the report of the matters based on the information in the form and
context in which it appears.

Mineral Resource and Reserve information as at 30 June 2013 has not
changed.

CONTENTS

Contact details

Message from the chief executive officer

Financial overview

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

Commentary on operational results

Condensed consolidated income statements (Rand)

Condensed consolidated statements of comprehensive
income (Rand)

Condensed consolidated statements of
changes in equity (Rand)

Condensed consolidated balance sheets (Rand)

Condensed consolidated cash flow statements (Rand)

Notes to the condensed consolidated financial statements

Segment report (Rand/Metric)

Operating results (US$/Imperial)

Condensed consolidated income statements (US$)

Condensed consolidated statements
of comprehensive income (US$)

Condensed consolidated statements
of changes in equity (US$)

Condensed consolidated balance sheets (US$)

Condensed consolidated cash flow statements (US$)

Segment report (US$/Imperial)

Development results – Metric and Imperial

Results for the second quarter FY14
and six months ended 31 December 2013

Message from the chief executive officer

Harmony has been in operation for 63 years – and we are positioned
to remain sustainable for many years to come. We manage costs and
production to ensure profitability at all gold prices. That is what our
approach to management is all about. At the same token, changes
to our operations and operating parameters are not affected at the
expense of safety. Safety is a core value.

We focus on profitable ounces and on operating margins. We reward
our mining teams to the extent that they contribute to improving
productivity and profitability. We hold our people accountable for the
company’s safe and profitable operations.

Harmony is sustainable and is thriving with gold in its current price range
of US$1 200/oz to US$1 250/oz – 20% down on year-ago levels. We are
confident that we can continue to manage our operations so as to remain
profitable even should the gold price come under further pressure. In
fact, five of our mines are very profitable and are thriving at an all-in cost
of below US$1 000/oz. At present Target 1 (US$854/oz), Bambanani
(US$742/oz), Joel (US$921/oz), Steyn 2 (US$811/oz) and Phoenix
(US$861/oz) are each operating at an all-in sustaining costs of less than
US$1 000/oz.

Our group average all-in sustaining cost is less than US$1 250/oz or
lower than the R400 000/kg on which our current near-term strategic
planning is based. By this financial year’s end (June 2014) we are
planning on having reduced our costs to a sustainable average of
between US$1 100/oz and US$1 150/oz or R380 000/kg. Our core
competency is on mining profitably and managing our production and
costs. We are nimble enough to respond and adjust to changes.

We have restructured and right-sized Hidden Valley in Papua New
Guinea (PNG) so that its costs are now less than US$1 200/oz. We are
continuing to refine our Golpu gold and copper resource knowledge
in PNG.

Costs at Kalgold and Unisel are already below US$1 200/oz, and at
Doornkop we have eliminated the unprofitable lowest grade reserves
(the Kimberley reef). Target 3 and Masimong will follow suit.

At Kusasalethu and Tshepong we have introduced management and
technical changes to increase production and consequently, lower unit
costs. Phakisa is on the same road, though it is spending on capital
during its production build-up phase.

We have already limited our spending on exploration, corporate
overheads, support services, electricity and capital. In the process,
Harmony has become South Africa’s most productive deep level miner
measured in terms of R/tonne costs, which is where we intend to stay.

Harmony’s strength has always been its ability to adjust quickly and
efficiently to adverse conditions. Harmony has positioned itself to
thrive at current prices and provide investors with handsome returns
when market conditions improve. We will continue to be able to react
optimally to any further adverse market conditions.

1. SAFETY

It is with regret that I report that three employees lost their lives as a
result of mine accidents during the quarter, bringing the total amount
of fatalities for financial year 2014 to seven. On behalf of management
and the Board, I wish to express our sincere condolences to the families
and colleagues of Gcinokuhle Vincent Ngqulunga (driller at Phakisa),
Sehla Mchithakau (driller at Tshepong) and Vincent Tsoeute (driller
at Joel).

The safety performance at Harmony’s South African operations
improved quarter-on-quarter. Management changes that were already
effected at operations and ongoing safety risk training will certainly
contribute to an improvement in safety at those operations in future.

Some operations continue to do well in safety, such as Target 3,
Bambanani, Steyn 2, Unisel, Tshepong and Target 1, who reached
1 million and more fatal free shift milestones during the quarter.

2. OPERATIONAL AND FINANCIAL RESULTS

Gold production remained steady quarter-on-quarter, with a 7%
increase in grade. Gold production for the December 2013 quarter
decreased slightly by 1% (120kg) to 9 515kg in comparison to 9 635kg
in the September 2013 quarter. Underground recovered grade improved
by 7% to 4.85g/t for a third consecutive quarter.

Production at Hidden Valley showed a marked improvement following
the restructuring at the mine over the last couple of quarters. Closing
the Kimberley Reef at Doornkop resulted in a 13% increase in recovered
grade, with Target 1, Bambanani and Unisel performing very well.

Operating profit for the December 2013 quarter was 5% lower than
in the previous quarter at R986 million, due to a 3% decrease in the
gold price received as well as gold production being stable quarter-on-
quarter.

The rand gold price received decreased by 3% from R429 566/kg in the
September 2013 quarter to R415 532/kg in the quarter under review.
The US dollar gold price decreased by 5% from US$1 342/oz in the
September 2013 quarter to US$1 277/oz. The rand weakened by 2%
against the US dollar in the December 2013 quarter to R10.12/US$
from R9.96/US$ in the September 2013 quarter.

Cash operating costs decreased by 6% or R187 million in the
December 2013 quarter.

Capital expenditure for the December 2013 quarter remained fairly
constant at R640 million (R622 million in the September 2013 quarter).
South African operations increased expenditure by 8% or R48 million,
whilst Hidden Valley recorded a 61% (R29 million) decrease in capital
to R19 million.

Our focus on driving our all-in-sustaining cost lower has resulted in an
all-in sustaining cost of R397 503/kg for the December 2013 quarter,
a 2% improvement compared to the R404 694/kg recorded in the
September 2013 quarter and a 15% improvement over the last three
quarters.

3. EMPLOYEE RELATIONS

The Association of Mineworkers and Construction Union (AMCU) sought
to proceed with strike action on a number of gold mining operations
with effect from 20 January 2014 in relation to the wage agreement
that was finalised in September 2013 in the gold sector between the
employers and the National Union of Mineworkers, UASA and Solidarity
and which was applied to all employees in the represented bargaining
units. Together, these three unions represented 72% of employees in
the sector. The agreed increases and improved benefits were backdated
to 1 July 2013 and all employees, irrespective of union affiliation, have
been in receipt of these since September 2013.

On 30 January 2014 South Africa’s Labour Court ruled that a strike
threatened by the AMCU at our Kususalethu and Masimong mines
would be unprotected, and that employees should continue to proceed
to work. The ruling ruled that AMCU must return to court on 14 March
2014 to explain why this interim interdict that was applied for by the
Chamber of Mines should not be made permanent.

We welcome this interim ruling and remain firm in the company’s belief
that the wage agreement is fair and valid. Harmony and the unions can
get this industry working. By actively contributing to the success of the
company, employees can and will share in its fortunes.

4. WAFI-GOLPU

On 6 December 2013 Harmony and Newcrest announced plans to
complete a feasibility study to evaluate an underground exploration
programme for the Wafi-Golpu Project in PNG.

This next phase of work requires a feasibility study on underground
exploration access and associated underground staging platforms
to complete deep underground drilling and bulk sampling of the ore
body. Underground access to the orebody through an exploration shaft
would generate essential ore body knowledge required to support a
future development decision. Geotechnical drilling to identify a suitable
exploration shaft location has commenced.

The Johannesburg office of the engineering consulting firm
WorleyParsons TWP has been engaged to prepare the feasibility study
for the proposed underground exploration access for consideration
and approval by the joint venture. Their engagement also includes
a review of an associated lower capital expenditure development
option for the Golpu deposit to underpin the commercial decision for
underground access.

The joint venture anticipates a final investment decision for the proposed
underground access during the second half of calendar 2014, subject to
receipt of necessary regulatory approvals.

The joint venture also aims to finalise an agreement to provide a
framework for the underground exploration phase, ongoing technical
and economic studies and, ultimately, the future development and
operation of the project.

These planning and study activities are accommodated within the 2014
exploration budget for the project. In parallel to these planning and
study activities, the joint venture will continue with investment in the
community in the Wafi-Golpu project area.

5. ENVIRONMENTAL MANAGEMENT

Harmony demonstrated an improved performance in the Carbon
Disclosure Project year on year since 2010 in both the disclosure and
performance leadership indices. This year we maintained a score of 98%
(holding a joint third position) Gold rating on the Disclosure Index and
an A-Band Platinum rating on the Performance and Leadership Index.
Harmony and Anglo American are the only two mining companies of
the JSE top 100 that achieved A-Band performance. Of the JSE top 100,
only eight companies achieved A-Band ratings.

Graham Briggs
Chief executive officer

Financial overview

Net (loss)/profit

The net loss for the December 2013 quarter was R91 million,
compared to a net profit of R13 million in the September 2013 quarter,
mainly due to the foreign exchange translation loss recorded on the
US$-denominated loan and gold stock adjustments as a result of more
gold sold than produced during the December 2013 quarter.

Other (expenses)/income – net

Included in other expenses in the December 2013 quarter is a
loss of R111 million for the foreign exchange movement on the
US$-denominated syndicated loan, resulting from the Rand weakening
from US$/R10.05 to US$/R10.46 at 31 December 2013.

Non-current assets classified as held for sale

During the December 2013 quarter, Sibanye Gold Limited (Sibanye)
made a cash offer to purchase the entire issued ordinary share capital
of Witwatersrand Consolidated Gold Resources Limited (Wits Gold).
The transaction is subject to regulatory approvals and is expected to be
completed within 12 months. The group’s investment in Wits Gold has
subsequently been classified as a non-current asset held for sale.

Borrowings

During the December 2013 quarter, the Nedbank R850 million facility
was refinanced with a new three year R1.3 billion Nedbank facility on
substantially the same terms as the previous facility. The new revolving

credit facility matures in December 2016. The outstanding amount on
the Nedbank Term Loan of R458 million was settled by drawing against
the new facility. The covenants on both the US$ denominated loan and
Rand facilities were renegotiated and are as follows:

• The group’s interest cover ratio shall not be less than five times

(EBITDA/Total interest);

• Current ratio shall not be less than one (current assets/current

liabilities);

• Cash flow from operating activities shall be above R100 million for

the six months prior to the evaluation date;

• Total net debt shall not exceed R3 billion plus the rand equivalent of

US$300 million;

• Tangible net worth to net debt ratio shall not be less than six times.

Loss/earnings per share

The earnings per share of 3 SA cents decreased to a loss per share of
21 SA cents in the December 2013 quarter.

Results for the second quarter FY14
and six months ended 31 December 2013

OPERATIONAL RESULTS

(Rand/Metric) (US$/Imperial)

South Africa

Hidden

Valley*

Total

continuing

operations

Underground production

Surface production

Total

SouthAfrica

Three
months
ended

Kusasa-

lethu

Doornkop

Phakisa

Tshepong

Masimong

Target 1

Bamba-

nani

Joel

Unisel

Target 3

Steyn 2

Total

under-

ground

Phoenix

Dumps

Kalgold*

Total

surface

Ore milled

– t’000

Dec-13

302

238

137

219

161

193

149

107

1 647

1 482

755

364

2 601

4 248

506

4 754

Sep-13

329

236

156

249

189

191

159

108

1 762

1 544

873

364

2 781

4 543

503

5 046

Gold produced

– kg

Dec-13

1 140

872

706

962

684

1 241

697

674

512

350

147

7 985

217

226

315

758

8 743

772

9 515

Sep-13

1 272

765

755

1 049

758

1 081

623

697

476

392

146

8 014

225

297

324

846

8 860

775

9 635

Gold produced

– oz

Dec-13

36 652

28 035

22 698

30 929

21 991

39 899

22 409

21 670

16 461

11 253

4 726

256 723

6 977

7 266

10 127

24 370

281 093

24 820

305 913

Sep-13

40 896

24 595

24 274

33 726

24 370

34 755

20 030

22 409

15 304

12 603

4 694

257 656

7 234

9 549

10 417

27 200

284 856

24 917

309 773

Yield –

g/tonne

Dec-13

3.77

3.66

5.15

4.39

4.25

6.43

12.91

4.52

4.79

4.67

12.25

4.85

0.15

0.30

0.87

0.29

2.06

1.53

2.00

Sep-13

3.87

3.24

4.84

4.21

4.01

5.66

12.22

4.38

4.41

4.78

12.17

4.55

0.15

0.34

0.89

0.30

1.95

1.54

1.91

Cash operating costs

– R/kg

Dec-13

389 854

320 533

374 572

352 244

353 671

200 373

199 795

261 521

294 779

383 566

221 871

306 967

279 221

357 916

318 184

318 876

308 000

316 206

308 665

Sep-13

378 360

372 256

359 825

337 704

339 471

240 274

220 342

258 561

320 525

373 446

233 966

319 395

272 796

344 552

325 694

318 246

319 286

381 274

324 272

Cash operating costs

– $/oz

Dec-13

1 198

985

1 151

1 083

1 087

616

614

804

906

1 179

682

943

858

1 100

978

980

947

972

949

Sep-13

1 182

1 163

1 124

1 055

1 060

750

688

808

1 001

1 166

731

998

852

1 076

1 017

994

997

1 191

1 013

Cash operating costs

– R/tonne

Dec-13

1 472

1 174

1 930

1 547

1 503

1 288

2 579

1 183

1 411

1 790

2 718

1 488

107

275

634

482

618

Sep-13

1 463

1 207

1 741

1 423

1 361

1 360

2 692

1 133

1 413

1 785

2 847

1 453

117

290

623

587

619

Gold sold

– kg

Dec-13

1 184

888

740

1 009

717

1 384

730

681

537

390

154

8 414

180

224

269

673

9 087

711

9 798

Sep-13

1 098

796

742

1 031

745

986

613

693

467

358

144

7 673

221

288

340

849

8 522

831

9 353

Gold sold

– oz

Dec-13

38 066

28 550

23 792

32 440

23 052

44 497

23 470

21 895

17 265

12 539

4 951

270 517

5 787

7 202

8 649

21 638

292 155

22 859

315 014

Sep-13

35 301

25 592

23 856

33 147

23 952

31 701

19 708

22 280

15 014

11 510

4 630

246 691

7 105

9 259

10 931

27 295

273 986

26 717

300 703

Revenue (R’000)

Dec-13

494 357

364 818

306 991

418 452

297 349

575 876

302 668

283 124

222 669

162 260

63 875

3 492 439

75 268

96 949

113 108

285 325

3 777 764

293 622

4 071 386

Sep-13

471 091

342 177

318 272

442 614

319 160

423 239

263 048

297 079

200 535

153 520

61 532

3 292 267

95 253

124 269

146 634

366 156

3 658 423

359 304

4 017 727

Cash operating costs

(R’000)

Dec-13

444 434

279 505

264 448

338 859

241 911

248 663

139 257

176 265

150 927

134 248

32 615

2 451 132

60 591

80 889

100 228

241 708

2 692 840

244 111

2 936 951

Sep-13

481 274

284 776

271 668

354 251

257 319

259 736

137 273

180 217

152 570

146 391

34 159

2 559 634

61 379

102 332

105 525

269 236

2 828 870

295 487

3 124 357

Inventory movement

(R’000)

Dec-13

28 010

12 659

16 146

22 591

16 418

51 668

12 367

(6 288)

9 603

28 051

3 043

194 268

(11 068)

143

(13 675)

(24 600)

169 668

(20 733)

148 935

Sep-13

(86 317)

3 625

(6 345)

(8 697)

476

(34 582)

(1 659)

(1 589)

(2 391)

(19 548)

(1 020)

(158 047)

(317)

(4 017)

2 559

(1 775)

(159 822)

16 283

(143 539)

Operating costs

(R’000)

Dec-13

472 444

292 164

280 594

361 450

258 329

300 331

151 624

169 977

160 530

162 299

35 658

2 645 400

49 523

81 032

86 553

217 108

2 862 508

223 378

3 085 886

Sep-13

394 957

288 401

265 323

345 554

257 795

225 154

135 614

178 628

150 179

126 843

33 139

2 401 587

61 062

98 315

108 084

267 461

2 669 048

311 770

2 980 818

Operating profit

(R’000)

Dec-13

21 913

72 654

26 397

57 002

39 020

275 545

151 044

113 147

62 139

(39)

28 217

847 039

25 745

15 917

26 555

68 217

915 256

70 244

985 500

Sep-13

76 134

53 776

52 949

97 060

61 365

198 085

127 434

118 451

50 356

26 677

28 393

890 680

34 191

25 954

38 550

98 695

989 375

47 534

1 036 909

Operating profit

($’000)

(R’000)

Dec-13

2 164

7 178

2 609

5 632

3 856

27 227

14 924

11 180

6 140

(4)

2 788

83 694

2 544

1 572

2 623

6 739

90 433

6 941

97 374

Sep-13

7 644

5 400

5 317

9 746

6 161

19 890

12 797

11 894

5 057

2 679

2 850

89 435

3 434

2 606

3 871

9 911

99 346

4 772

104 118

Capital expenditure

(R’000)

Dec-13

130 309

63 513

98 511

78 740

40 571

64 190

29 220

37 936

24 652

36 768

641

605 051

931

2 463

12 607

16 001

621 052

19 082

640 134

Sep-13

120 048

60 100

90 762

67 598

37 819

61 509

31 922

42 056

17 228

35 411

562

565 015

–

129

8 023

8 152

573 167

48 478

621 645

Capital expenditure

($’000)

Dec-13

12 876

6 276

9 734

7 780

4 009

6 343

2 887

3 748

2 436

3 633

59 785

243

1 246

1 581

61 366

1 885

63 251

Sep-13

12 055

6 035

9 114

6 788

3 798

6 176

3 205

4 223

1 730

3 556

56 736

–

806

819

57 555

4 868

62 423

Adjusted operating costs

– R/kg

Dec-13

408 698

346 101

389 497

367 910

371 109

222 422

216 640

258 728

307 717

422 833

240 307

323 996

275 126

361 752

330 343

326 029

324 163

316 287

323 591

Sep-13

375 072

375 492

364 217

341 375

362 285

232 532

226 822

263 371

329 937

359 871

235 119

321 965

276 299

341 372

321 027

316 285

321 399

376 717

326 314

Adjusted operating costs

– $/oz

Dec-13

1 256

1 064

1 197

1 131

1 141

684

666

795

946

1 299

739

996

846

1 112

1 015

1 002

996

969

994

Sep-13

1 171

1 173

1 138

1 066

1 132

726

708

823

1 031

1 124

734

1 006

863

1 066

1 003

988

1 004

1 177

1 019

All-in sustaining costs

– R/kg

Dec-13

533 624

416 838

503 058

458 501

447 878

278 028

241 303

299 632

373 246

526 404

263 910

400 445

280 299

386 310

393 782

360 943

397 713

394 820

397 503

Sep-13

499 528

453 515

497 604

418 042

428 681

306 233

248 992

299 968

380 985

470 106

253 014

400 649

276 299

352 628

359 453

335 492

393 978

514 593

404 694

All-in sustaining costs

– $/oz

Dec-13

1 640

1 281

1 546

1 409

1 376

854

742

921

1 147

1 618

811

1 231

861

1 187

1 210

1 109

1 222

1 209

1 222

Sep-13

1 560

1 416

1 554

1 306

1 339

956

778

937

1 190

1 468

790

1 251

863

1 101

1 123

1 048

1 230

1 607

1 264

* Comparative figures for these operations have been restated as a result of the adoption of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.

Refer to note 2 of the Financial Statements.

Results for the second quarter FY14
and six months ended 31 December 2013

Commentary on operational results

Quarter-on-quarter

Harmony increased its underground recovered grade by 7% to 4.85g/t,
representing a third consecutive quarter of increased grade.

Harmony’s production for the second quarter of financial year
2014 compared well with the previous quarter, with a 1% decrease
to 9 515kg.

Cash operating costs decreased by 5% to R308 665/kg mainly due to
the decrease in the electricity price tariffs, compared to the previous
quarter which included winter tariffs.

All-in sustaining costs decreased by 2% quarter-on-quarter from
R404 694/kg to R397 503/kg mainly due to a 5% increase in gold sold
during the quarter. Production delivery against a lower operating cost
base remains the key focus at all of our operations during the next
quarter.

SOUTH AFRICAN OPERATIONS

Kusasalethu

Kusasalethu’s results were adversely affected by the spillage and
flooding of the return ventilation shaft and sub-shaft bottoms which
hampered rock hoisting during the quarter.

During the March 2014 quarter, management will focus on increasing
the availability of the engineering equipment in order to reduce
production downtime.

Doornkop

Doornkop had a good quarter, with a 14% increase in production
mainly due to a 13% increase in grade. Cash operating cost improved
by 14% to R320 533/kg while the all-in sustaining costs improved by
8% to R 416 838/kg.

The Kimberley Reef mine was always earmarked for closure as the new
South Reef mine increased production at a higher recovered grade.
Mechanized mining methods are used on the Kimberley Reef horizon
(mining high volumes at a much lower grade), which is extremely
sensitive to gold price fluctuations and in the current gold price
environment, the end of its economic life was brought closer.

Closing the Kimberley Reef will have a positive effect on both the costs
and grade of Doornkop. Production at the higher-grade South Reef
project is ramping up to scheduled full production in financial year
2016. Focus during the next quarter will be to achieve targets relating
to tonnes and grade, as well as to conclude the Kimberley Reef’s
section 189 process.

Phakisa

Phakisa’s 6% increase in recovered grade quarter-on-quarter (to
5.15g/t) partly countered the effect of a 12% decrease in tonnes milled,
resulting in gold production of 706kg of gold during the quarter.

All-in sustaining costs remained stable at R503 058/kg. During the
March 2014 quarter, on-going rehabilitation work to the Freddies.
3 ventilation shaft will continue. The scope of the rehabilitation work
increased after another smaller cavity was identified during the re-sink
and re-lining process.

Tshepong

Tshepong’s gold production decreased due to a section 54 stoppage
after a fatality occurred. The decrease of 12% in tonnes milled, offset
by a 4% increase in recovered grade (at 4.39g/t) resulted in an 8%
decrease in gold production to 962kg.

Cash operating costs increased by 4% quarter-on-quarter while the
all-in sustaining costs increased by 10% to R458 501/kg, as a result
of lower volumes and higher capital expenditure during the quarter.
Tshepong’s focus during the next quarter will be on creating stoping
face length in the higher grade areas of the mine and maintaining reef
meter development.

Masimong

Masimong had another challenging quarter with gold production being
10% less at 684kg, due to a 15% decrease in volumes quarter-on-
quarter. General underperformance and a fatality during the December
2013 quarter had a negative impact on production.

However, recovered grade increased by 6% quarter-on-quarter
to 4.25g/t.

The decrease in gold production resulted in a 4% increase in cash
operating cost at R353 671/kg and together with higher capital
expenditure quarter-on-quarter, a 4% increase in all-in sustaining costs
from R428 681/kg to R447 878/kg.

The focus in the next quarter will be to address the underperformance
to ensure a turnaround at the mine. Actions include: restructuring the
shaft, equipping and mining high grade pillars that were previously left
un-mined and reduce maintenance capital to an absolute minimum.

Target 1

Target 1 had another excellent quarter with a 14% increase in recovered
grade and a 15% increase in gold production.

The mine’s sustained operational improvements resulted in a lower all-in
sustaining cost of R278 028/kg and a 17% reduction in cash operating
cost to R200 373/kg.

Bambanani

Gold production increased by 12% quarter-on-quarter, due to a 6%
increase in both volumes and recovered grade at 12.91g/t.

Bambanani has the lowest all-in sustaining cost in the company at
R241 303/kg, as well as the best cash operating cost at R199 795/kg.

During the March 2014 quarter Bambanani will continue its good
performance, through a further increase in volume.

Joel

Stoppages in December 2013 resulted in a 6% decrease in tonnes
milled at Joel. Recovered grade increased by 3% to 4.52g/t, resulting in
a 3% decrease in gold to 674kg.

Quarter-on-quarter cash operating cost increased slightly to R261 521/kg
and all-in sustaining costs remained stable at R299 632/kg.

Unisel

Unisel had a good production quarter due to a 9% increase in recovered
grade (from 4.41g/t to 4.79g/t), resulting in a 8% increase in gold
production to 512kg.

Cash operating costs improved by 8% to R294 779/kg quarter-on-
quarter and all-in sustaining costs decreased from R380 985/kg to
R373 246/kg.

Target 3

Target 3 had a very challenging quarter. Tonnes decrease by 9% (from
82 000t to 75 000t), the recovered grade decreased by 2% to 4.67g/t,
which resulted in an 11% decrease in gold production to 350kg.

Due to the underperformance in gold output the cash operating cost
also increased by 3% to R383 566/kg.

All-in sustaining cost increased by 12% to R526 404/kg.

A review of Target 3’s performance was done in January to assess the
underperformance. The focus will be on opening up the Basal Reef.

Steyn 2

Tonnes milled remained steady quarter-on-quarter at 12 000t while the
recovered grade increased by 1% from 12.17g/t to 12.25g/t, resulting
in gold production remaining steady.

Cash operating costs improved by 5% quarter-on-quarter to R221 871/kg
and all-in sustaining costs increased from R253 014/kg to R263 910/kg,
due to higher capital spent quarter-on-quarter.

Phoenix (tailings)

Recovered grade remained stable at 0.15g/t while 4% less tonnes were
milled at Phoenix during the quarter, which resulted in a 4% decrease in
gold production to 217kg.

The decrease in gold output resulted in a 2% increase in cash operating
costs to R279 221/kg and a slight increase in all-in sustaining costs from
R276 299/kg to R280 299/kg in the quarter.

During the March 2014 quarter, focus will remain on optimising
efficiency, recovery and cost control.

Surface dumps

Quarter-on-quarter gold production decreased by 24% due to a 14%
decrease in tonnes milled. Grade was 12% lower at 0.30g/t.

The decrease in gold output resulted in a 4% increase in cash operating
costs to R357 916/kg and a 10% increase quarter-on-quarter in all-in
sustaining costs at R386 310/kg.

Kalgold

Kalgold’s gold production decreased by 3% quarter-on-quarter to
315kg, as tonnes were in line with the previous quarter while recovered
grade was 2% lower at 0.87g/t for the December 2013 quarter.

Cash operating cost decreased by 2% to R318 184/kg while all-in
sustaining costs increased by 10% to R393 782/kg due to an increase in
the total capital expenditure on the new oxygen plant, costs incurred on
the new residue tank and other plant refurbishment projects.

During the quarter, a decision was taken to postpone the scheduled
replacements of A and B mills to the next financial year in line with the
capital reduction initiative throughout the Company.

INTERNATIONAL OPERATIONS

Hidden Valley

(held in Morobe Mining Joint Ventures – 50% of

attributable production reflected)

Hidden Valley’s tonnes milled and recovered grade at 1.53g/t was in
line with the previous quarter and resulted in gold production of 772kg
during the December 2013 quarter. Silver production at 272 710oz was
8%, higher than the previous quarter

Cash operating costs improved by 17% to R316 206/kg, while all-in
sustaining costs decreased by 23% to R394 820/kg during the quarter,

due to lower production stripping, increased silver by-product credits,
lower sustaining capital expenditure and continued cost reduction
efforts.

The operating performance of the overland conveyor improved during
the quarter and minor configuration changes to the crusher were
completed.

Exploration highlights

INTERNATIONAL (PAPUA NEW GUINEA)

Morobe Mining Joint Venture (MMJV) (50% Harmony)

Wafi-Golpu

In addition to what is said in the message from the chief executive
officer on page 5:

Harmony and its joint venture partner, Newcrest Mining Limited, plan
to undertake a feasibility study to evaluate an underground exploration
program for the Wafi-Golpu Project. The underground exploration
program is proposed to include an exploration shaft to facilitate deep
drilling and bulk sampling of the orebody to generate essential orebody
knowledge required to support a future development decision.

Geotechnical drilling to identify a suitable exploration shaft location is
in progress.

A final investment decision for the proposed underground exploration
program is expected during the second half of calendar 2014, subject
to receipt of necessary government and regulatory approvals. Work is
continuing on a substantially lower capital expenditure development
option for Wafi-Golpu and drilling activity has been scaled down from
four rigs to only one drill assigned to resource definition continuing into
the third quarter.

Drilling during the quarter delivered the following results (also refer to
the projection view schematic below):

North-south resource definition hole confirms continuity of porphyry
and high grade mineralisation

• 943.49m @ 1.28g/t Au and 1.44% Cu from 996m (WR499)2

• Including 560m @1.88g/t Au and 2.13% Cu from 1252m

New zone of higher grade gold mineralisation identified between Golpu
and Wafi

• 54m @ 3.61g/t Au from 146m (WR502)

Results for the second quarter FY14
and six months ended 31 December 2013

Figure 1: Projection view of Wafi-Golpu

1 Resource estimates quoted on 100% basis – refer Harmony’s Mineral Resources & Reserves statement as at 30 June 2013

2 Partial result reported

Figure 2: Harmony PNG Exploration project locations and Q2 work summary

Results for the

second quarter FY14 and

six months ended

31 December 2013

(Rand)

Results for the second quarter FY14
and six months ended 31 December 2013

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Rand)

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

(Unaudited)

(Audited)

Figures in million

Note

(Restated)*

Continuing operations

Revenue

4 071

4 018

4 613

8 089

8 891

15 902

Cost of sales

(3 817)

(3 735)

(3 508)

(7 552)

(7 018)

(16 448)

Production costs

(3 086)

(2 981)

(2 956)

(6 067)

(5 834)

(11 321)

Amortisation and depreciation

(565)

(577)

(509)

(1 142)

(1 002)

(2 001)

Impairment of assets

–

(2 733)

Other items

(166)

(177)

(43)

(343)

(182)

(393)

Gross profit/(loss)

254

283

1 105

537

1 873

(546)

Corporate, administration and other
expenditure

(102)

(108)

(111)

(210)

(217)

(465)

Social investment expenditure

(21)

(38)

(25)

(59)

(45)

(127)

Exploration expenditure

(112)

(142)

(160)

(254)

(296)

(673)

Profit on sale of property,
plant and equipment

–

124

139

Other (expenses)/income – net

(140)

(47)

(139)

(44)

(350)

Operating (loss)/profit

(121)

(4)

831

(125)

1 395

(2 022)

Profit from associates

–

Impairment of investments

–

(7)

–

(7)

(48)

(88)

Net gain on financial instruments

113

166

173

Investment income

185

Finance cost

(57)

(60)

(75)

(117)

(133)

(256)

(Loss)/profit before taxation

(85)

886

(34)

1 451

(2 008)

Taxation

(6)

(38)

(221)

(44)

(373)

(655)

Normal taxation

–

(49)

(115)

(49)

(226)

(271)

Deferred taxation

(6)

(106)

(147)

(384)

Net (loss)/profit from continuing
operations

(91)

665

(78)

1 078

(2 663)

Discontinued operations

Profit from discontinued operations

–

171

314

Net (loss)/profit for the period

(91)

747

(78)

1 249

(2 349)

Attributable to:
Owners of the parent

(91)

747

(78)

1 249

(2 349)

(Loss)/earnings per ordinary
share (cents)

(Loss)/earnings from continuing
operations

(21)

154

(18)

249

(616)

Earnings from discontinued
operations

–

Total (loss)/earnings

(21)

173

(18)

289

(543)

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

(Loss)/earnings from continuing
operations

(21)

154

(18)

249

(616)

Earnings from discontinued
operations

–

Total diluted (loss)/earnings

(21)

173

(18)

289

(543)

* The audited June 2013 annual results, interim December 2012 and unaudited December 2012 quarter results have been restated due to a change in accounting policy. Refer to note 2 for details.

The restatements to the comparative information have not been audited.

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

The condensed consolidated financial statements for the six months ended 31 December 2013 have been prepared by Harmony Gold Mining Company Limited’s corporate reporting team headed by Mr Herman Perry. This process was supervised by the financial director, Mr Frank Abbott and approved by the board of Harmony Gold Mining Company Limited. The condensed consolidatied financial statements for the six months ended 31 December 2013 were reviewed by the group’s external auditors, PricewaterhouseCoopers Incorporated
(see note 13).

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Rand)

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

(Unaudited)

(Audited)

Figures in million

(Restated)*

Net (loss)/profit for the period

(91)

747

(78)

1 249

(2 349)

Other comprehensive income/(loss)
for the period, net of income tax

378

(695)

195

(317)

220

737

Foreign exchange translation

370

(694)

172

(324)

197

742

Movements on investments

(1)

(5)

Total comprehensive
income/(loss) for the period

287

(682)

942

(395)

1 469

(1 612)

Attributable to:

Owners of the parent

287

(682)

942

(395)

1 469

(1 612)

* The audited June 2013 annual results, interim December 2012 and unaudited December 2012 quarter results have been restated due to a change in accounting policy. Refer to note 2 for details.

The restatements to the comparative information have not been audited.

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

All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Rand)

for the six months ended 31 December 2013

Figures in million

Note

Share capital

Other

reserves

Retained

earnings

Total

Balance – 30 June 2013 as previously reported

28 325

3 464

522

32 311

Restatement for IFRIC 20

–

(22)

(74)

(96)

Restated balance – 30 June 2013

28 325

3 442

448

32 215

Share-based payments

–

145

–

145

Net loss for the period

–

(78)

Other comprehensive loss for the period

–

(317)

–

(317)

Balance – 31 December 2013

28 325

3 270

370

31 965

Balance – 30 June 2012 as previously reported

28 331

2 444

3 307

34 082

Restatement for IFRIC 20

–

(15)

(94)

(109)

Restated balance – 30 June 2012

28 331

2 429

3 213

33 973

Share-based payments

–

130

–

130

Net profit for the period

–

1 249

Other comprehensive income for the period

–

220

–

220

Dividends paid

–

(218)

Balance – 31 December 2012

28 331

2 779

4 244

35 354

Dividend of 50 SA cents declared on 13 August 2012.

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

Results for the second quarter FY14
and six months ended 31 December 2013

CONDENSED CONSOLIDATED BALANCE SHEETS

(Rand)

31 December

30 September

30 June

31 December

2013

2012

(Unaudited)

(Audited)

Figures in million

Note

(Restated)*

ASSETS

Non-current assets

Property, plant and equipment

32 663

32 195

32 732

33 931

Intangible assets

2 193

2 191

2 192

Restricted cash

Restricted investments

2 180

2 143

2 054

2 020

Deferred tax assets

104

554

Investments in associates

115

112

109

–

Investments in financial assets

159

Inventories

Trade and other receivables

–

Total non-current assets

37 341

36 871

37 333

38 963

Current assets

Inventories

1 423

1 482

1 417

1 066

Trade and other receivables

1 149

1 238

1 162

1 292

Income and mining taxes

106

103

132

–

Restricted cash

–

Cash and cash equivalents

2 323

2 288

2 089

2 511

5 016

5 111

4 800

4 869

Non-current assets and assets of disposal groups classified
as held for sale

–

1 822

Total current assets

5 062

5 111

4 800

6 691

Total assets

42 403

41 982

42 133

45 654

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

28 325

28 331

Other reserves

3 270

2 790

3 442

2 779

Retained earnings

370

461

448

4 244

Total equity

31 965

31 576

32 215

35 354

Non-current liabilities

Deferred tax liabilities

3 000

2 998

3 021

3 270

Provision for environmental rehabilitation

2 016

1 990

1 997

1 912

Retirement benefit obligation

201

198

194

184

Other provisions

Borrowings

3 280

2 868

2 252

2 072

Total non-current liabilities

8 568

8 117

7 519

7 478

Current liabilities

Borrowings

–

291

286

301

Income and mining taxes

–

Trade and other payables

1 870

1 974

2 109

2 050

1 870

2 289

2 399

2 367

Liabilities of disposal groups classified as held for sale

–

455

Total current liabilities

1 870

2 289

2 399

2 822

Total equity and liabilities

42 403

41 982

42 133

45 654

* The audited June 2013 annual results and interim December 2012 results have been restated due to a change in accounting policy. Refer to note 2 for details. The restatements to the comparative

information have not been audited.

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

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Rand)

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

(Unaudited)

(Audited)

Cash flow from operating activities
Cash generated by operations

700

238

1 392

938

2 729

3154

Interest and dividends received

138

Interest paid

(21)

(29)

(50)

(58)

(125)

Income and mining taxes paid

(28)

–

(221)

(28)

(113)

(312)

Cash generated by operating activities

683

235

1 172

918

2 614

2 855

Cash flow from investing activities
Cash transferred to disposal group

–

(90)

–

(252)

–

Proceeds on disposal of investment in
subsidiary

–

1 264

Proceeds on disposal of Merriespruit South

–

Purchase of investments

–

(86)

Other investing activities

(1)

(9)

(45)

(10)

(45)

(4)

Net additions to property, plant and
equipment

(624)

(618)

(1 047)

(1 242)

(1 940)

(3 652)

Cash utilised by investing
activities

(625)

(627)

(1 121)

(1 252)

(2 176)

(2 478)

Cash flow from financing activities
Borrowings raised

–

612

348

612

678

Borrowings repaid

(3)

(164)

(6)

(173)

(333)

Ordinary shares issued – net of expenses

–

Option premium on BEE transaction

–

Dividends paid

–

(218)

(435)

Cash generated/(utilised) by financing
activities

(3)

609

184

606

287

(87)

Foreign currency translation adjustments

(20)

(18)

(38)

Net increase in cash and cash equivalents

199

245

234

738

316

Cash and cash equivalents – beginning of
period

2 288

2 089

2 266

2 089

1 773

Cash and cash equivalents – end of
period

2 323

2 288

2 511

2 323

2 511

2 089

Includes capital expenditure for Wafi-Golpu and other International projects of R0 million in the December 2013 quarter (September 2013: R0 million)(June 2013: R133 million) (December 2012:

R7 million) and R537 million in the 12 months ended 30 June 2013.

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

Results for the second quarter FY14
and six months ended 31 December 2013

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the period ended 31 December 2013 (Rand)

Accounting policies

Basis of accounting

The condensed consolidated financial statements for the six months ended 31 December 2013 have been prepared in accordance with IAS 34,
Interim Financial Reporting, JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
in the manner required by the Companies Act of South Africa. They should be read in conjunction with the annual financial statements for
the year ended 30 June 2013, which have been prepared in accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board (IFRS). The accounting policies are consistent with those described in the annual financial statements,
except for the adoption of applicable revised and/or new standards issued by the International Accounting Standards Board.

The following accounting standards, amendments to standards and new interpretations have been adopted with effect from 1 July 2013.

IFRS 7

Amendment – Disclosures – Offsetting Financial Assets and Financial Liabilities

IFRS 10

Consolidated Financial Statements

IFRS 11

Joint Arrangements

IFRS 12

Disclosure of Interests in Other Entities

IFRS 13

Fair Value Measurement

IFRSs

Annual Improvements 2009 – 2011

IAS 19

Employee Benefits (Revised 2011)

IAS 27

Separate Financial Statements (Revised 2011)

IAS 28

Investments in Associates and Joint Ventures (Revised 2011)

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

New standards and amendments which have an impact on the condensed consolidated financial statements of the group are described below:

IAS 19 includes a number of amendments to the accounting for defined benefit plans, including actuarial gains and losses that are now
recognised in other comprehensive income (OCI). Actuarial gains and losses recognised in OCI will not be recycled to profit or loss. The impact
for the group was immaterial.

IFRS 11 requires joint operations to be accounted at the group’s interest in the assets, liabilities, revenue and expenses of the joint operation.
Harmony previously accounted for joint operations using the proportional consolidation method. The change in accounting policy has not had
an impact on any previously reported numbers.

IFRIC 20 clarifies the requirements for accounting for costs of stripping activity in the production phase of surface mining. Stripping assets that
cannot be attributed to an identifiable component of the orebody will be written off to retained earnings on adoptions of IFRIC 20. Refer to
note 2 for further details.

Change in accounting policies

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

IFRIC 20 – Stripping Costs in the Production Phase of a Surface Mine (“IFRIC 20”) which became effective on 1 January 2013, clarifies the
requirements for accounting for the costs of stripping activity in the production phase of surface mining when two benefits accrue: (i) usable
ore that can be used to produce inventory; and (ii) improved access to further quantities of material that will be mined in future periods.
Harmony has applied IFRIC 20 on a prospective basis from 1 July 2011 in compliance with the transitional requirements of IFRIC 20.

Harmony previously accounted for stripping costs incurred during the production phase to remove waste material by deferring these costs,
which were then charged to production costs on the basis of the average life-of-mine stripping ratio.

A stripping activity asset shall be recognised if all of the following are met:

(i) it is probable that the future economic benefit (improved access to the orebody) associated with the stripping activity will flow to the entity;

(ii) the entity can identify the component of the orebody for which access has been improved; and

(iii) the cost relating to the stripping activity associated with that component can be measure reliably.

The stripping asset shall be depreciated over the expected useful life of the identified component of the orebody based on the units of
production method.

Where there were no identifiable components of the orebody to which the predecessor asset relates, the asset was written off to retained
earnings at the beginning of the earliest period presented. An amount of R54 million was written off to retained earnings.

The comparative periods presented have been restated. The restatement had no effect on the condensed consolidated cash flow statements.

The results for the six months ended 31 December 2013, year ended 30 June 2013 and the financial position at those dates have been reviewed
and audited respectively, but the restatement of the results and balances affected by IFRIC 20 have not been audited.

Reconciliation of the effect of the change in accounting standard:

Condensed consolidated income statements

Quarter ended

Six months ended

Year ended

31 December

30 June

2012

2013

(Unaudited)

(Audited)

Cost of sales
Production costs
As previously reported

(2 980)

(5 850)

(11 400)

IFRIC 20 adjustment

Restated

(2 956)

(5 834)

(11 321)

Amortisation and depreciation
As previously reported

(501)

(982)

(1 942)

IFRIC 20 adjustment

(8)

(20)

(59)

Restated

(509)

(1 002)

(2 001)

Increase/decrease in net profit/loss for the period*

(4)

* There is no material taxation effect on these items.

Condensed consolidated statements of comprehensive income

Quarter ended

Six months ended

Year ended

31 December

30 June

2012

2013

(Unaudited)

(Audited)

Increase/decrease in net profit/loss for the period*

(4)

Other comprehensive income for the period net of income tax
Foreign exchange translation
As previously reported

174

200

749

IFRIC 20 adjustment

(2)

(3)

(7)

Restated

172

197

742

Increase/decrease in total comprehensive income/loss for the period

(7)

* There is no material taxation effect on these items.

Condensed consolidated balance sheets

30 June

31 December

2013

2012

Figures in million

(Audited)

Non-current assets
Property, plant and equipment
As previously reported

32 820

34 028

IFRIC 20 adjustment

(88)

(97)

Restated

32 732

33 931

Current assets
Inventories
As previously reported

1 425

1 085

IFRIC 20 adjustment

(8)

(19)

Restated

1 417

1 066

Share capital and reserves
Other reserves
As previously reported

3 464

2 797

IFRIC 20 adjustment

(22)

(18)

Restated

3 442

2 779

Retained earnings
As previously reported

522

4 342

IFRIC 20 adjustment

(74)

(98)

Restated

448

4 244

Decrease in total equity

(96)

(116)

Translation effect of the IFRIC 20 adjustments on foreign operations (Hidden Valley).

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONTINUED

for the period ended 31 December 2013 (Rand)

Results for the second quarter FY14
and six months ended 31 December 2013

Earnings/(loss) and headline earnings per share

Quarter ended

Six months ended

Year ended

31 December

30 June

2012

2013

(Unaudited)

(Audited)

Total basic and diluted earnings/(loss) per share (cents)
As previously reported

169

290

(548)

IFRIC 20 adjustment

(1)

Restated

173

289

(543)

Total headline earnings

Figures in million

As previously reported

680

1 209

204

IFRIC 20 adjustment

(4)

Restated

696

1 205

224

Headline earnings per share (cents)
As previously reported

158

281

IFRIC 20 adjustment

(1)

Restated

162

280

Diluted headline earnings (cents)
As previously reported

157

280

IFRIC 20 adjustment

(1)

Restated

161

279

Cost of sales

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

(Unaudited)

(Audited)

Figures in million

(Restated)*

Production costs – excluding royalty

3 047

2 943

2 888

5 990

5 710

11 104

Royalty expense

124

217

Amortisation and depreciation

565

577

509

1 142

1 002

2 001

Impairment of assets

–

2 733

Rehabilitation (credit)/expenditure

(15)

(1)

–

(24)

Care and maintenance cost of
restructured shafts

Employment termination and
restructuring costs

–

144

Share-based payments

113

164

126

266

Other

–

Total cost of sales

3 817

3 735

3 508

7 552

7 018

16 448

* The audited June 2013 annual results, interim December 2012 and unaudited December 2012 quarter results have been restated due to a change in accounting policy. Refer to note 2

for details. The restatements to the comparative information have not been audited.

1. A credit of R24 million arose in the December 2013 quarter as a result of work performed in the Free State, resulting in a reduction in the rehabilitation liability.

2. Included in the September and December 2013 quarters are amounts relating to the restructuring at Hidden Valley and the voluntary retrenchment packages offered in South Africa.

3. This includes the cost relating to the Employee Share Ownership Plan (ESOP) awards that were granted in August 2012. The December 2013 quarter includes costs related to the

acceleration of vesting for employees who took voluntary retrenchment.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONTINUED

for the period ended 31 December 2013 (Rand)

Earnings/(loss) and net asset value per share

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

(Unaudited)

(Audited)

(Restated)*

Weighted average number
of shares ( million)

432.9

432.6

431.6

432.8

431.6

431.9

Weighted average number of diluted
shares ( million)

433.4

433.0

432.6

433.8

432.6

432.7

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

(21)

173

(18)

289

(543)

Diluted (loss)/earnings

(21)

173

(18)

289

(543)

Headline (loss)/earnings

(21)

162

(16)

280

– from continuing operations

(21)

143

(16)

240

– from discontinued operations

–

Diluted headline (loss)/earnings

(21)

161

(16)

279

– from continuing operations

(21)

142

(16)

239

– from discontinued operations

–

Figures in million

Reconciliation of headline
(loss)/earnings:

Continuing operations

Net (loss)/profit

(91)

665

(78)

1 078

(2 663)

Adjusted for:
Impairment of investments

–

Impairment of assets

–

2 733

Taxation effect on impairment of assets

–

(38)

Profit on sale of property,
plant and equipment

–

(69)

–

(124)

(139)

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

–

Headline (loss)/earnings

(91)

614

(71)

1 034

Discontinued operations

Net profit

–

171

314

Adjusted for:
Profit on sale of investment in
subsidiary

–

(102)

Headline earnings

–

171

212

Total headline (loss)/earnings

(91)

696

(71)

1 205

224

There is no taxation effect on these items.

Net asset value per share

31 December

30 September

30 June

31 December

2013

2012

(Unaudited)

(Audited)

(Restated)*

Number of shares in issue

435 693 819

435 289 890

435 257 691

Net asset value per share (cents)

7 337

7 254

7 405

8 123

* The audited June 2013 annual results, interim December 2012 and unaudited December 2012 quarter results have been restated due to a change in accounting policy. Refer to note 2 for

details. The restatements to the comparative information have not been audited.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONTINUED

for the period ended 31 December 2013 (Rand)

Results for the second quarter FY14
and six months ended 31 December 2013

Non-current assets and assets of disposal groups classified as held for sale

During the December 2013 quarter, a cash offer for Witwatersrand Consolidated Gold Resources Limited’s (Wits Gold) entire share capital was
made to all Wits Gold shareholders by Sibanye Gold Limited. Harmony has accepted the offer. Following this, R46 million which represents
Harmony’s fair value stake in Wits Gold has been classified as a non-current asset held for sale (formerly classified as Investment in financial
assets) under IFRS 5. A regulatory process is being followed and the sale is expected to be completed within the next 12 months.

Borrowings

Two draw downs of US$30 million each were made from the US$300 million syndicated revolving credit facility during the September 2013
quarter. During the December 2013 quarter there were no draw downs and the drawn level remains at US$270 million. The weakening of the
Rand against the US$ resulted in a foreign exchange translation loss of R111 million being recorded, increasing the borrowings balance and
Other expenses-net. The facility is repayable by September 2015.

Harmony refinanced its Nedbank revolving credit facility and entered into a new agreement for R1.3 billion revolving credit facility during the
December 2013 quarter. The interest rate is equivalent to JIBAR + 350 basis points and is repayable by December 2016.

At the same time management also agreed an amended set of financial covenants with the lender group, to give the group more long-term
financial flexibility. Two of the covenants were re-negotiated as follows:

• The interest cover measure has been changed from EBIT to EBITDA

and the ratio of cover has changed from two times to five times.

• The ratio of Market Capitalisation to Net Debt has been replaced by the ratio of Tangible Net Worth

to Net Debt. The ratio remained the

same at six times.

EBITDA as defined in the agreement excludes unusual items such as impairment and restructuring cost.

Tangible Net Worth is defined as total equity less intangible assets.

The covenants applicable to all Harmony debt facilities are accordingly as follows:

• The group’s interest cover ratio shall not be less than five (EBITDA/Total interest).

• Current ratio shall not be less than one (current assets/current liabilities).

• Cash flow from operating activities shall be above R100 million for the six months prior to the evaluation date.

• Total net debt shall not exceed R3 billion plus the rand equivalent of US$300 million.

• Tangible Net Worth to facilities outstanding ratio shall not be less than six times.

Financial risk management activities

Fair value determination

The following table presents the group’s assets and liabilities that are measured at fair value by level within the fair value hierarchy:

Level 1: Quoted prices (unadjusted) in active markets for identical assets;

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is, as prices)

or indirectly (that is derived from prices);

Level 3: Inputs for the asset that are not based on observable market data (that is unobservable inputs).

31 December

30 September

30 June

31 December

2013

2012

Figures in million

(Unaudited)

(Audited)

Available-for-sale financial assets

Level 1

Level 2

–

Level 3

Fair value through profit and loss

Level 1

–

Level 2

934

1 116

1 041

1 135

Level 3

–

Level 1 fair values are directly derived from actively traded shares on the JSE.

Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis to ensure that significant prolonged decline in the value of the investments

has not occurred. The December 2012 balance includes the interest in Rand Refinery. At the end of the 2013 financial year, the investment in Rand Refinery was reclassified as an investment
in associate on obtaining significant influence.

The majority of the level 2 fair values are directly derived from the Shareholders Weighted Top 40 index (SWIX 40) on the JSE and are discounted at market interest rate.

* Includes non-current assets or disposal groups held for sale where applicable.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONTINUED

for the period ended 31 December 2013 (Rand)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONTINUED

for the period ended 31 December 2013 (Rand)

Commitments and contingencies

31 December

30 September

30 June

31 December

2013

2012

Figures in million

(Unaudited)

(Audited)

Capital expenditure commitments:
Contracts for capital expenditure

322

351

416

576

Authorised by the directors but not contracted for

1 152

1 835

1 545

1 572

1 474

2 186

1 961

2 148

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

Contingent liability

For a detailed disclosure on contingent liabilities refer to Harmony’s integrated annual report for the financial year ended 30 June 2013, available on the group’s website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2013.

Related parties

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the September 2013 quarter, Frank Abbott purchased 65 600 shares.

10. Subsequent events

There were no subsequent events to report.

11. Segment report

The segment report follows on page 23.

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

Six months ended

31 December

2013

2012

Figures in million

(Restated)*

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

Reconciliation of production profit to gross profit

Total segment revenue

8 089

9 542

Total segment production costs

(6 067)

(6 215)

Production profit per segment report

2 022

3 327

Discontinued operations

–

(270)

Production profit from continuing operations

2 022

3 057

Cost of sales items, other than production costs and royalty expense

(1 485)

(1 184)

Gross profit as per income statements

537

1 873

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

Results for the second quarter FY14
and six months ended 31 December 2013

31 December

2013

2012

Figures in million

(Restated)*

Reconciliation of total segment mining assets to consolidated property, plant and equipment
Property, plant and equipment not allocated to a segment Mining assets

1 133

942

Undeveloped property

5 139

Other non-mining assets

Wafi-Golpu assets

1 069

804

Less: Non-current assets previously classified as held for sale

–

(1 233)

7 430

5 714

* The interim December 2012 results have been restated due to a change in accounting policy. Refer to note 2 for details. The restatements to the comparative information have not been audited.

13. Review report

These condensed consolidated financial statements for the six months ended 31 December 2013 on pages 12 to 23 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified conclusion thereon. A copy of the auditor’s report on the condensed consolidated financial statements is available for inspection at the company’s registered office, together with the financial statements identified in the auditor’s report.

Segment report

(Rand/Metric)

for the six months ended 31 December 2013

Revenue

Production cost*

Production

profit*

Mining assets

Capital

expenditure

Kilograms

produced

Tonnes milled

31 December

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

R million

t’000

Continuing operations

South Africa
Underground
Kusasalethu

965

976

867

840

136

3 502

3 329

250

217

2 412

2 003

631

466

Doornkop

707

886

581

542

126

344

3 380

3 330

124

151

1 637

1 875

474

517

Phakisa

625

638

546

491

147

4 530

4 593

189

158

1 461

1 367

293

270

Tshepong

861

1 077

707

751

154

326

3 986

3 484

146

149

2 011

2 310

468

567

Masimong

617

925

516

519

101

406

1 021

998

1 442

1 978

350

477

Target 1

999

979

525

465

474

514

2 690

2 703

126

188

2 322

2 157

384

356

Bambanani

(a)

691

426

356

306

335

120

881

1 004

1 613

911

129

Joel

580

821

349

343

231

478

354

260

1 371

1 750

308

321

Unisel

423

453

311

299

112

154

347

665

988

962

215

233

Target 3

316

364

289

262

102

508

398

742

798

157

169

Surface
All other surface operations

652

730

485

493

167

237

472

365

200

1 604

1 645

5 382

4 800

Total South Africa

7 436

8 275

5 532

5 311

1 904

2 964

21 671

21 129

1 194

1 395

17 603

17 756

8 791

8 274

International
Hidden Valley

653

616

535

523

118

3 562

5 855

236

1 547

1 331

1 009

947

Total international

653

616

535

523

118

3 562

5 855

236

1 547

1 331

1 009

947

Total continuing
operations

8 089

8 891

6 067

5 834

2 022

3 057

25 233

26 984

1 262

1 631

19 150

19 087

9 800

9 221

Discontinued operations

Evander

–

651

–

381

–

270

–

1 233

–

109

–

1 480

–

300

Total discontinued
operations

–

651

–

381

–

270

–

1 233

–

109

–

1 480

–

300

Total operations

8 089

9 542

6 067

6 215

2 022

3 327

25 233

28 217

1 262

1 740

19 150

20 567

9 800

9 521

Reconciliation of the
segment information to
the consolidated financial
statements (refer to note 12)

–

(651)

–

(381)

7 430

5 714

8 089

8 891

6 067

5 834

32 663

33 931

* The interim December 2012 results have been restated due to a change in accounting policy. Refer to note 2 for details. The restatements to the comparative information have not been audited.

Production statistics are unaudited.

Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R0 million (2012: R255 million).

(a) Includes Steyn 2.

Results for the second quarter FY14
and six months ended 31 December 2013

Operating results

(US$/Imperial)

South Africa

Hidden Valley*

Total

Harmony

Underground production

Surface production

Total

South Africa

Three
months
ended

Kusasa-

lethu

Doornkop

Phakisa

Tshepong

Masimong

Target 1

Bamba-

nani

Joel

Unisel

Target 3

Steyn 2

Total

under-

ground

Phoenix

Dumps

Kalgold*

Total

surface

Ore milled

– t’000

Dec-13

333

262

151

241

178

213

164

118

1 816

1 634

833

401

2 868

4 684

558

5 242

Sep-13

363

260

172

275

208

211

175

119

1 942

1 703

963

401

3 067

5 009

555

5 564

Gold produced

– oz

Dec-13

36 652

28 035

22 698

30 929

21 991

39 899

22 409

21 670

16 461

11 253

4 726

256 723

6 977

7 266

10 127

24 370

281 093

24 820

305 913

Sep-13

40 896

24 595

24 274

33 726

24 370

34 755

20 030

22 409

15 304

12 603

4 694

257 656

7 234

9 549

10 417

27 200

284 856

24 917

309 773

Yield –

oz/t

Dec-13

0.110

0.107

0.150

0.128

0.124

0.187

0.373

0.132

0.140

0.136

0.364

0.141

0.004

0.009

0.025

0.008

0.060

0.044

0.058

Sep-13

0.113

0.095

0.141

0.123

0.117

0.165

0.358

0.128

0.129

0.140

0.361

0.133

0.004

0.010

0.026

0.009

0.057

0.045

0.056

Cash operating costs

– $/oz

Dec-13

1 198

985

1 151

1 083

1 087

616

614

804

906

1 179

682

943

858

1 100

978

980

947

972

949

Sep-13

1 182

1 163

1 124

1 055

1 060

750

688

808

1 001

1 166

731

998

852

1 076

1 017

994

997

1 191

1 013

Cash operating costs

– $/t

Dec-13

132

105

173

139

134

115

229

106

126

160

248

133

Sep-13

133

110

159

129

124

246

103

129

163

264

132

Gold sold

– oz

Dec-13

38 066

28 550

23 792

32 440

23 052

44 497

23 470

21 895

17 265

12 539

4 951

270 517

5 787

7 202

8 649

21 638

292 155

22 859

315 014

Sep-13

35 301

25 592

23 856

33 147

23 952

31 701

19 708

22 280

15 014

11 510

4 630

246 691

7 105

9 259

10 931

27 295

273 986

26 717

300 703

Revenue ($’000)

Dec-13

48 847

36 047

30 334

41 347

29 381

56 902

29 906

27 975

22 002

16 033

6 311

345 085

7 437

9 579

11 176

28 192

373 277

29 013

402 290

Sep-13

47 304

34 360

31 959

44 445

32 048

42 499

26 414

29 831

20 137

15 416

6 179

330 592

9 565

12 478

14 724

36 767

367 359

36 079

403 438

Cash operating costs

($’000)

Dec-13

43 915

27 618

26 130

33 483

23 903

24 570

13 760

17 416

14 913

13 265

3 222

242 195

5 987

7 993

9 904

23 884

266 079

24 121

290 200

Sep-13

48 327

28 596

27 279

35 572

25 839

26 082

13 784

18 097

15 320

14 700

3 431

257 027

6 163

10 275

10 596

27 034

284 061

29 671

313 732

Inventory movement

($’000)

Dec-13

2 768

1 251

1 595

2 232

1 622

5 105

1 222

(621)

949

2 772

301

19 196

(1 094)

(1 351)

(2 431)

16 765

(2 049)

14 716

Sep-13

(8 667)

364

(637)

(873)

(3 473)

(167)

(160)

(240)

(1 963)

(102)

(15 870)

(32)

(403)

257

(178)

(16 048)

1 635

(14 413)

Operating costs

($’000)

Dec-13

46 683

28 869

27 725

35 715

25 525

29 675

14 982

16 795

15 862

16 037

3 523

261 391

4 893

8 007

8 553

21 453

282 844

22 072

304 916

Sep-13

39 660

28 960

26 642

34 699

25 887

22 609

13 617

17 937

15 080

12 737

3 329

241 157

6 131

9 872

10 853

26 856

268 013

31 307

299 320

Operating profit

($’000)

Dec-13

2 164

7 178

2 609

5 632

3 856

27 227

14 924

11 180

6 140

(4)

2 788

83 694

2 544

1 572

2 623

6 739

90 433

6 941

97 374

Sep-13

7 644

5 400

5 317

9 746

6 161

19 890

12 797

11 894

5 057

2 679

2 850

89 435

3 434

2 606

3 871

9 911

99 346

4 772

104 118

Capital expenditure

($’000)

Dec-13

12 876

6 276

9 734

7 780

4 009

6 343

2 887

3 748

2 436

3 633

59 785

243

1 246

1 581

61 366

1 885

63 251

Sep-13

12 055

6 035

9 114

6 788

3 798

6 176

3 205

4 223

1 730

3 556

56 736

–

806

819

57 555

4 868

62 423

Adjusted operating costs

– $/oz

Dec-13

1 256

1 064

1 197

1 131

1 141

684

666

795

946

1 299

739

996

846

1 112

1 015

1 002

996

969

994

Sep-13

1 171

1 173

1 138

1 066

1 132

726

708

823

1 031

1 124

734

1 006

863

1 066

1 003

988

1 004

1 177

1 019

All-in sustaining costs

– $/oz

Dec-13

1 640

1 281

1 546

1 409

1 376

854

742

921

1 147

1 618

811

1 231

861

1 187

1 210

1 109

1 222

1 209

1 222

Sep-13

1 560

1 416

1 554

1 306

1 339

956

778

937

1 190

1 468

790

1 251

863

1 101

1 123

1 048

1 230

1 607

1 264

* Comparative figures for these operations have been restated as a result of the adoption of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.

Refer to note 2 of the Rand Financial Statements.

Results for the second quarter FY14
and six months ended 31 December 2013

CONDENSED CONSOLIDATED INCOME STATEMENTS

(US$) (Unaudited)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

Figures in million

(Restated)*

Continuing operations

Revenue

402

403

532

805

1 051

1 803

Cost of sales

(377)

(375)

(405)

(752)

(829)

(1 829)

Production costs

(305)

(299)

(341)

(604)

(689)

(1 283)

Amortisation and depreciation

(56)

(58)

(59)

(114)

(118)

(227)

Impairment of assets

–

(274)

Other items

(16)

(18)

(5)

(34)

(22)

(45)

Gross profit/(loss)

127

222

(26)

Corporate, administration and
other expenditure

(10)

(11)

(13)

(21)

(26)

(53)

Social investment expenditure

(2)

(4)

(3)

(6)

(5)

(14)

Exploration expenditure

(11)

(14)

(18)

(25)

(35)

(76)

Profit on sale of property, plant and
equipment

–

Other (expenses)/income – net

(14)

–

(5)

(14)

(5)

(40)

Operating (loss)/profit

(12)

(1)

(13)

166

(193)

Profit from associates

–

Impairment of investments

–

(1)

–

(1)

(6)

(10)

Net gain on financial instruments

Investment income

Finance cost

(6)

(9)

(12)

(15)

(29)

(Loss)/profit before taxation

(9)

102

(3)

173

(191)

Taxation

(1)

(4)

(25)

(5)

(44)

(69)

Normal taxation

–

(5)

(13)

(5)

(27)

(31)

Deferred taxation

(1)

(12)

–

(17)

(38)

Net (loss)/profit from continuing
operations

(10)

(8)

129

(260)

Discontinued operations

Profit from discontinued operations

–

Net (loss)/profit for the period

(10)

(8)

149

(224)

Attributable to:

Owners of the parent

(10)

(8)

149

(224)

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

(2)

–

(2)

(60)

Earnings from discontinued operations

–

Total (loss)/earnings

(2)

–

(2)

(52)

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

(2)

–

(2)

(60)

Earnings from discontinued operations

–

Total diluted (loss)/earnings

(2)

–

(2)

(52)

* The comparative periods have been restated due to a change in accounting policy. Refer to note 2 of the Rand financial statements for details.

The currency conversion average rates for the quarter ended: December 2013: US$1 = R10.12 (September 2013: US$1 = R9.96, December 2012:US$1 = R8.67). For year ended: June 2013: US$1 = R8.82. Six months ended: December 2013: US$1 = R10.04 (December 2012: US$1 = R8.46).

Note on convenience translations
Except where specific statements have been extracted from 2013 Annual Financial Statements, the requirements of IAS 21, The Effects of the Changes in Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial statements presented on pages 26 to 30.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(US$) (Unaudited)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

2013

2012

2013

2012

2013

Figures in million

(Restated)*

Net (loss)/profit for the period

(10)

(8)

149

(224)

Other comprehensive income/(loss) for the
period, net of income tax

(70)

(31)

Foreign exchange translation

(70)

(32)

Movements on investments

–

(1)

Total comprehensive income/(loss)
for the period

(69)

109

(39)

175

(141)

Attributable to:

Owners of the parent

(69)

109

(39)

175

(141)

* The comparative periods have been restated due to a change in accounting policy. Refer to note 2 of the Rand financial statements for details.

The currency conversion average rates for the quarter ended: December 2013: US$1 = R10.12 (September 2013: US$1 = R9.96,
December 2012: US$1 = R8.67). For year ended: June 2013: US$1 = R8.82. Six months ended: December 2013: US$1 = R10.04 (December 2012: US$1 = R8.46).

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(US$) (Unaudited)

for the six months ended 31 December 2013 (Convenience translation)

Figures in million

Share capital

Other

reserves

Retained

earnings

Total

Balance – 30 June 2013 as previously reported

2 708

331

3 089

Restatement for IFRIC 20

–

(2)

(7)

(9)

Restated balance – 30 June 2013

2 708

329

3 080

Share-based payments

–

Net loss for the period

–

(7)

Other comprehensive loss for the period

–

(30)

–

(30)

Balance – 31 December 2013

2 708

313

3 057

Balance – 30 June 2012 as previously reported

3 333

287

389

4 009

Restatement for IFRIC 20

–

(2)

(11)

(13)

Restated balance – 30 June 2012

3 333

285

378

3 996

Share-based payments

–

Net profit for the period

–

147.

147

Other comprehensive income for the period

–

Dividends paid

–

(26)

Balance – 31 December 2012

3 333

327

499

4 159

The currency conversion closing rates for the six months ended 31 December 2013: US$1 = R10.46 (December 2012: US$1 = R8.50)

Results for the second quarter FY14
and six months ended 31 December 2013

CONDENSED CONSOLIDATED BALANCE SHEETS

(US$) (Unaudited)

(Convenience translation)

31 December

30 September

30 June

31 December

2013

2012

Figures in million

(Restated)*

ASSETS

Non-current assets

Property, plant and equipment

3 123

3 205

3 279

3 991

Intangible assets

210

218

220

258

Restricted cash

Restricted investments

209

213

206

238

Deferred tax assets

Investments in associates

–

Investments in financial assets

–

Inventories

Trade and other receivables

–

Total non-current assets

3 572

3 670

3 741

4 584

Current assets

Inventories

136

147

142

126

Trade and other receivables

110

123

116

152

Income and mining taxes

–

Restricted cash

–

Cash and cash equivalents

222

228

209

295

479

508

480

573

Assets of disposal groups classified as held for sale

–

215

Total current assets

483

508

480

788

Total assets

4 055

4 178

4 221

5 372

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

2 708

2 820

2 837

3 333

Other reserves

313

278

347

327

Retained earnings

499

Total equity

3 057

3 144

3 229

4 159

Non-current liabilities

Deferred tax liabilities

287

298

303

385

Provision for environmental rehabilitation

193

198

200

225

Retirement benefit obligation

Other provisions

Borrowings

313

285

226

244

Total non-current liabilities

819

807

753

881

Current liabilities
Borrowings

–

Income and mining taxes

–

Trade and other payables

179

196

211

241

179

227

239

278

Liabilities of disposal groups classified as held for sale

–

Total current liabilities

179

227

239

332

Total equity and liabilities

4 055

4 178

4 221

5 372

* The comparative periods have been restated due to a change in accounting policy. Refer to note 2 of the Rand financial statements for details.

The balance sheet for December 2013 converted at a conversion rate of US$1 = R10.46 (September 2013: US$1 = R10.05, June 2013:
US$1 = R9.98) December 2012: US$1 = R8.50.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(US$) (Unaudited)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December

30 September

31 December

30 June

Figures in million

2013

2012

2013

2012

2013

Cash flow from operating activities
Cash generated by operations

161

323

359

Interest and dividends received

Interest paid

(2)

(3)

(4)

(5)

(8)

(14)

Income and mining taxes paid

(3)

–

(25)

(3)

(13)

(33)

Cash generated by operating activities

136

309

328

Cash flow from investing activities
Cash transferred to disposal group

–

(10)

–

(30)

–

Proceeds on disposal of investment in
subsidiary

–

139

Purchase of investments

–

(9)

Other investing activities

–

(1)

(5)

(1)

(5)

(1)

Net additions to property, plant and
equipment

(62)

(114)

(124)

(222)

(414)

Cash utilised by investing activities

(62)

(63)

(129)

(125)

(257)

(285)

Cash flow from financing activities
Borrowings raised

–

Borrowings repaid

–

(19)

(1)

(20)

(35)

Dividends paid

–

(26)

(50)

Cash generated/(utilised) by financing
activities

–

(5)

Foreign currency translation adjustments

(11)

(3)

(8)

(13)

(7)

(45)

Net increase in cash and cash equivalents

(6)

(7)

Cash and cash equivalents – beginning of
period

228

209

275

209

216

Cash and cash equivalents – end of
period

222

228

295

222

295

209

Includes capital expenditure for Wafi-Golpu and other International projects of US$0 in the December 2013 quarter (September 2013: US$0) December 2012: US$1 million) and

US$61 million in the year ended 30 June 2013.

The currency conversion average rates for the quarter ended: December 2013: US$1 = R10.12 (September 2013: US$1 = R9.96, December 2012: US$1 = R8.67). For year ended: June 2013: US$1 = R8.82. Six months ended: December 2013: US$1 = R10.04 (December 2012: US$1 = R8.46).

Closing balance translated to closing rates of: December 2013: US$1 = R10.46 (September 2013: US$1 = R10.05, June 2013:
US$1 = R9.98, December 2012: US$ = R8.50).

The cash flow statement for the year ended 30 June 2013 has been extracted from the 2013 Annual Report

Segment report

(US$/Imperial) (Unaudited)

for the six months ended 31 December 2013

Revenue

Production cost

Production

profit

Mining assets

Capital

expenditure

Ounces

produced

Tons milled

31 December

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

US$ million

t’000

Continuing operations

South Africa
Underground
Kusasalethu

115

335

392

77 548

64 398

696

514

Doornkop

105

323

392

52 630

60 282

522

570

Phakisa

433

540

46 972

43 950

323

298

Tshepong

127

381

410

64 655

74 268

516

625

Masimong

109

117

46 361

63 594

386

526

Target 1

100

116

257

318

74 654

69 349

424

392

Bambanani

118

51 859

29 289

142

107

Joel

44 079

56 264

339

354

Unisel

31 765

30 929

237

257

Target 3

23 856

25 656

173

186

Surface
All other surface operations

51 570

52 886

5 935

5 294

Total South Africa

740

978

551

627

189

351

2 072

2 486

119

167

565 949

570 865

9 693

9 123

International
Hidden Valley

341

689

49 737

42 793

1 113

1 044

Total international

341

689

49 737

42 793

1 113

1 044

Total continuing
operations

805

1 051

604

689

201

362

2 413

3 175

126

195

615 686

613 658

10 806

10 167

Discontinued operations

Evander

–

145

–

47 583

–

330

Total discontinued
operations

–

145

–

47 583

–

330

Total operations

805

1 126

604

734

201

392

2 413

3 320

126

208

615 686

661 241

10 806

10 497

* The comparative periods have been restated following the adoption of IFRIC 20. Refer to note 2 for details.

DEVELOPMENT RESULTS

(Metric)

Quarter ending December 2013

Channel

Reef

Meters

Sampled

Meters

Width

(Cm’s)

Value

(g/t)

Gold

(Cmg/t)

Tshepong

Basal

418

407

8.81

189.19

1 667

B Reef

249

213

85.90

9.75

838

All Reefs

667

620

35.26

39.22

1 383

Phakisa

Basal

256

263

102.57

11.65

1 195

Leader

47.00

1.43

All Reefs

259

269

101.33

11.54

1 169

Total Bambanani

(Incl. Bambanani, Steyn 2)

Basal

58.71

11.68

685

All Reefs

58.71

11.68

685

Bambanani

Basal

58.71

11.68

685

All Reefs

58.71

11.68

685

Doornkop

South Reef

365

350

51.72

13.80

714

All Reefs

365

350

51.72

13.80

714

Kusasalethu

VCR Reef

558

497

107.66

10.75

1 157

All Reefs

558

497

107.66

10.75

1 157

Target

Elsburg

209

108

189.29

8.03

1 521

Basal

10.24

229.46

2 350

A Reef

141.95

7.38

1 047

B Reef

229

128

84.09

23.32

1 961

All Reefs

608

339

111.09

16.03

1 781

Target 1

Elsburg

132

251.70

7.14

1 797

All Reefs

132

251.70

7.14

1 797

Target 3

Elsburg

98.50

11.35

1 118

Basal

10.24

229.46

2 350

A Reef

141.95

7.38

1 047

B Reef

229

128

84.09

23.32

1 961

All Reefs

477

275

78.37

22.68

1 778

Masimong 5

Basal

386

348

48.63

15.87

772

B Reef

115

134

75.04

14.21

1 067

All Reefs

500

482

55.98

15.25

854

Unisel

Basal

322.8

258

192.95

9.25

1 784

Leader

463.7

399

200.22

6.19

1 239

Middle

47.0

214.75

13.27

2 849

All Reefs

833

689

198.17

7.66

1 518

Joel

Beatrix

260

258

157.88

8.50

1 342

All Reefs

260

258

157.88

8.50

1 342

Total Harmony

Basal

1 485

1 354

73.00

19.00

1 387

Beatrix

260

258

157.88

8.50

1 342

Leader

466

405

197.95

6.17

1 222

B Reef

593

475

82.34

14.64

1 205

A Reef

83.4

141.95

7.38

1 047

Middle

47.0

214.75

13.27

2 849

Elsburg

208.7

108

189.29

8.03

1 521

South Reef

365

350.25

51.72

13.80

714

VCR

558

497

107.66

10.75

1 157

All Reefs

4 067

3 520

103.30

12.14

1 254

DEVELOPMENT RESULTS

(Imperial)

Quarter ending December 2013

Channel

Reef

(feet)

Sampled

(feet)

Width

(inch)

Value

(oz/t)

Gold

(In.oz/t)

Tshepong

Basal

1 371

1 335

6.38

B Reef

818

697

0.28

All Reefs

2 189

2 032

1.13

Phakisa

Basal

840

863

0.34

Leader

0.04

All Reefs

848

883

0.34

Total Bambanani

(Incl. Bambanani, Steyn 2)

Basal

0.34

All Reefs

0.34

Bambanani

Basal

0.34

All Reefs

0.34

Doornkop

South Reef

1 198

1 149

0.41

All Reefs

1 198

1 149

0.41

Kusasalethu

VCR Reef

1 831

1 631

0.32

All Reefs

1 831

1 631

0.32

Target

Elsburg

685

354

0.23

Basal

285

203

6.75

A Reef

273

135

0.21

B Reef

753

420

0.68

All Reefs

1 996

1 112

0.47

Target 1

Elsburg

432

210

0.21

All Reefs

432

210

0.21

Target 3

Elsburg

253

144

0.33

Basal

285

203

6.75

A Reef

273

135

0.21

B Reef

753

420

0.68

All Reefs

1 564

902

0.66

Masimong 5

Basal

1 265

1 142

0.47

B Reef

376

440

0.41

All Reefs

1 641

1 582

0.45

Unisel

Basal

1 059

846

0.27

Leader

1 521

1 309

0.18

Middle

154

105

0.38

All Reefs

2 734

2 261

0.22

Joel

Beatrix

853

846

0.25

All Reefs

853

846

0.25

Total Harmony

Basal

4 871

4 441

29.00

0.55

15.93

Beatrix

853

846

62.00

0.25

15.41

Leader

1 530

1 329

78.00

0.18

14.03

B Reef

1 947

1 558

32.00

0.43

13.84

A Reef

273

135

56.00

0.21

12.02

Middle

154

105

85.00

0.38

32.72

Elsburg

685

354

75.00

0.23

17.46

South Reef

1 198

1 149

20.00

0.41

8.19

VCR

1 831

1 631

42.00

0.32

13.29

All Reefs

13 342

11 548

41.00

0.35

PRINTED BY INCE (PTY) LTD

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: 03 February 2014

Harmony Gold Mining Company Limited

By: /s/ Frank Abbot

Name: Frank Abbot
Title: Financial Director