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

Randfontein Office Park
CNR Ward Avenue and Main Reef Road
Randfontein, 1760
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 þ       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 þ

 

 

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: February 6, 2008
Harmony Gold Mining Company Limited

Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
Registration number 1950/038232/06
ISIN ZAE000015228 Issuer code: HAPS
TRADING SYMBOLS: Ordinary Shares: JSE Limited: HAR,
New York Stock Exchange, Inc., HMY, London Stock Exchange plc: HRM
Euronext Paris: HG, Euronext Brussels: HMY, Berlin Stock Exchange: HAM1,
NASDAQ: HMY

Financial review for the second quarter and six months ended 31 December 2008

The quarter at a glance:

•		Safety performance improves
•		Net debt reduction of R1.1 billion
•		Total headline earnings of R492 million (>100%)
•		Cash operating profit of R1.1 billion (+38%)
•		Operating margin of 35%
•		Rand Uranium transaction concluded (R901 million profit ex-tax)
•		8% decline in total gold production
•		7% increase in cash operating costs (R/kg)

Financial review for the second quarter and six months ended 31 December 2008

(All results exclude Discontinued Operations, unless otherwise stated)

				Quarter				Quarter								6 months				6 months				Year on
				December				September				Q-on-Q				December				December				year
				2008				2008				variance*				2008				2007				variance*
Gold produced		- kg			11 267				12 287				(8	%)			23 554				25 635				(8	%)
		- oz			362 242				395 035				(8	%)			757 277				824 181				(8	%)
Cash costs		- R/kg			168 299				157 279				(7	%)			162 550				136 877				(19	%)
		- $/oz			527				629				16	%			580				614				6	%
Gold sold		- kg			12 415				12 342				1	%			24 757				26 186				(5	%)
		- oz			399 150				396 803				1	%			795 953				841 896				(5	%)
Cash operating		- Rm			1 113				808				38	%			1 921				725				>100	%
profit		- US$m			112				104				8	%			216				105				>100	%
Basic		- SAc/s			81				118				(31	%)			199				(188	)			>100	%
profit/(loss)		- USc/s			8				15				(46	%)			23				(27	)			>100	%
Headline		- SAc/s			101				8				>100	%			109				(83	)			>100	%
profit/(loss)		- USc/s			10				1				>100	%			12				(12	)			>100	%

Harmony’s Annual Report, Notice of Meeting, Sustainable Development Report and its Annual Report filed on a Form 20F with the United States’ Securities and Exchange Commission for the year ended 30 June 2008 are available on our website at www.harmony.co.za

CHIEF EXECUTIVE’S REVIEW

Overview

Harmony concluded two major transactions in the past six months, raised almost R1 billion by issuing shares and our share price increased by 38% over the year, in spite of market volatility.

We realise there is continuing market uncertainty, particularly with regard to commodities. We are often asked what we are doing in these uncertain times.

Harmony weathered a storm of its own in late 2007. We have made the tough decisions, restructured and decided to continue investing in the mines which will be the future of Harmony.

We do not plan further job reductions, provided the gold price remains strong, and we intend keeping our capital expenditure plans intact. We have created a reasonable margin and continue to secure our future amidst turmoil and uncertain times.

Each of our mines has its own targets, compiled by and committed to by the shaft employees themselves. These targets are the driving force behind our teams. Some of the results have not been seen in our financial figures as yet, but we will continue to focus on the fundamentals.

Safety

Our behaviour-based safety initiative that has been rolled out to all of the shafts and the efforts put into leading by example are proving to have a positive effect. The main aim is to change the attitude and mindset of people and to create a safer working place as a whole. All stakeholders are involved and the continuous communication on safety in the working place as well as off the job is receiving priority attention from all parties.

The past quarter was marked by some outstanding safety performances. I am very grateful to all who assisted in reducing Harmony’s Fatality Injury Frequency Rate from 0.18 to 0.10 year on year and its Lost Time Injury Frequency Rate from 10.0 to 9.13 quarter on quarter.

However, we have not yet reached our target of zero fatalities. It is with deep regret that we report that three of our colleagues died in work-related incidents during the quarter under review. On behalf of the Board and Management, I extend my heartfelt condolences to their families and friends.

Those who died were: Elandsrand employee Amandio Julai Massingue, an underground assistant; Bambanani employee Moeti Mololo, a rock drill operator; and Tshepong employee Matli Lazaro, a scraper winch operator.

Gold market

While the gold price had weakened in terms of the US Dollar during the quarter, the average Rand gold price remained strong. In the current faltering global economy all the signs are that the metal retains its status as a safe haven and store of wealth. This demand pattern, combined with declining supply as juniors struggle to explore or continue with project development due to a lack of funding, adds credence to the argument that the gold price is likely to rise in the medium to long term.

During the quarter our average gold price received was R253 441/kg, 17% higher than the previous quarter, due to the weaker average Rand/$ exchange rate of R9.93/$. The weaker exchange rate was a great benefit to us, notwithstanding the negative impact on the cost of imported supplies.

Looking forward

Overall, I believe calendar 2009 has every prospect to be a good year for Harmony. Commodity prices have come down and this should reflect in our mining input costs. Elandsrand should be a safer and improved production business once it has completed its “intensive care” phase. Two of our growth mines, Doornkop and Phakisa, will have most of their shaft infrastructure completed, and finally Hidden Valley will be in production as from mid-2009, resulting in an increase in production.

The world finds itself in very uncertain times and it is clear that the rules of our game will be:

•

conserving our cash;

•		having a reasonable margin;
•		being debt-free;
•		keeping the company as simple as possible;
•		rewarding our shareholders.

During the last six months we have looked at a number of assets that may potentially fit the Harmony portfolio. Our strategy is not restricted to any particular area, but is aimed at acquiring long-life assets that offer higher margins. The financial climate has put a lot of companies into dire straits, and although a number of due diligences are being performed at the moment, Harmony is unlikely to make any acquisitions before June 2009. We believe that the number of opportunities may increase, but we will not make any rushed decisions. Our aim is to have net zero debt by June 2009 and reward our shareholders for their loyalty in financial year 2009/2010.

Chief Executive Officer Graham Briggs

CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)

										Quarter ended
						December				September				December
						2008				2008				2007
						(Unaudited)				(Unaudited)				(Unaudited)
		Notes				R million				R million				R million
Continuing operations
Revenue							3 146				2 682				2 116
Cost of sales			2				(2 383	)			(2 225	)			(2 009	)
Production cost							(2 033	)			(1 874	)			(1 687	)
Amortisation and depreciation							(310	)			(308	)			(228	)
Employment termination and restructuring costs							(16	)			(12	)			(75	)
Other items							(24	)			(31	)			(19	)
Gross profit							763				457				107
Corporate, administration and other expenditure							(92	)			(91	)			(68	)
Exploration expenditure							(75	)			(45	)			(42	)
Other income/(expenses) — net			3				78				505				(95	)
Operating profit/(loss)							674				826				(98	)
(Loss)/profit from associates							(52	)			1				—
Profit on sale of investment in associate							—				1				—
Impairment of investment in associate			6				—				(112	)			—
Mark-to-market of listed investments							(116	)			—				—
Loss on sale of listed investments							—				—				—
Investment income							107				77				74
Finance cost							(61	)			(85	)			(138	)
Profit/(loss) before taxation							552				708				(162	)
Taxation							(220	)			(234	)			(54	)
Net profit/(loss) from continuing operations							332				474				(216	)
Discontinued operations			4
Profit/(loss) from discontinued operations							984				(72	)			262
Net profit/(loss)							1 316				402				46
Earnings/(loss) per ordinary share (cents)			5
— Earnings/(loss) from continuing operations							81				117				(54	)
— Earnings/(loss) from discontinued operations							243				(18	)			65
Total earnings/(loss) per ordinary share (cents)							324				100				11
Diluted earnings/(loss) per ordinary share (cents)			5
— Earnings/(loss) from continuing operations							81				117				(54	)
— Earnings/(loss) from discontinued operations							242				(18	)			65
Total diluted earnings/(loss) per ordinary share (cents)							323				99				11

		Six months ended
		December				December
		2008				2007
		R million				R million
Continuing operations
Revenue			5 828				4 255
Cost of sales			(4 608	)			(4 073	)
Production cost			(3 907	)			(3 531	)
Amortisation and depreciation			(618	)			(429	)
Employment termination and restructuring costs			(28	)			(75	)
Other items			(55	)			(38	)
Gross profit			1 220				182
Corporate, administration and other expenditure			(183	)			(140	)
Exploration expenditure			(120	)			(86	)
Other income/(expenses) — net			583				(110	)
Operating profit/(loss)			1 500				(154	)
(Loss)/profit from associates			(51	)			—
Profit on sale of investment in associate			1				—
Impairment of investment in associate			(112	)			—
Mark-to-market of listed investments			(116	)			33
Loss on sale of listed investments			—				(459	)
Investment income			184				141
Finance cost			(146	)			(259	)
Profit/(loss) before taxation			1 260				(698	)
Taxation			(454	)			(52	)
Net profit/(loss) from continuing operations			806				(750	)
Discontinued operations
Profit/(loss) from discontinued operations			912				230
Net profit/(loss)			1 718				(520	)
Earnings/(loss) per ordinary share (cents)
— Earnings/(loss) from continuing operations			199				(188	)
— Earnings/(loss) from discontinued operations			225				57
Total earnings/(loss) per ordinary share (cents)			424				(131	)
Diluted earnings/(loss) per ordinary share (cents)
— Earnings/(loss) from continuing operations			198				(186	)
— Earnings/(loss) from discontinue operations			224				56
Total diluted earnings/(loss)
per ordinary share (cents)			422				(130	)

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

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)

						Quarter ended
		December				September				December
		2008				2008				2007
		(Unaudited)				(Unaudited)				(Unaudited)
		R million				R million				R million
Net profit/(loss) for the period			1 316				402				46
Attributable to:
Owners of the parent			1 316				402				46
Non-controlling interest			—				—				—
Other comprehensive (loss)/income for the period, net of income tax			(115	)			88				52
Foreign exchange translation (loss)/profit			(208	)			119				(15	)
Mark-to-market of available-for-sale investments			93				(31	)			67
Total comprehensive income/(loss) for the period			1 201				490				98
Attributable to:
Owners of the parent			1 201				490				98
Non-controlling interest			—				—				—

		Six months ended
		December				December
		2008				2007
		R million				R million
Net profit/(loss) for the period			1 718				(520	)
Attributable to:
Owners of the parent			1 718				(520	)
Non-controlling interest			—				—
Other comprehensive (loss)/income for the period, net of income tax			(27	)			415
Foreign exchange translation (loss)/profit			(89	)			(110	)
Mark-to-market of available-for-sale investments			62				525
Total comprehensive income/(loss) for the period			1 691				(105	)
Attributable to:
Owners of the parent			1 691				(105	)
Non-controlling interest			—				—

CONDENSED CONSOLIDATED BALANCE SHEET (Rand)

										At				At
						At				September				June
						December				2008				2008
						2008				(Unaudited)				(Audited)
		Notes				R million				R million				R million
ASSETS
Non-current assets
Property, plant and equipment							27 786				26 886				27 556
Intangible assets							2 223				2 213				2 209
Restricted cash							169				181				78
Restricted investments							1 567				1 512				1 465
Investments in financial assets							28				48				67
Investments in associates			6				228				34				145
Trade and other receivables							56				127				137
							32 057				31 001				31 657
Current assets
Inventories							898				752				693
Trade and other receivables							2 732				875				875
Income and mining taxes							108				54				82
Cash and cash equivalents			7				1 645				1 186				413
							5 383				2 867				2 063
Non-current assets classified as held for sale			4				407				1 408				1 537
							5 790				4 275				3 600
Total assets							37 847				35 276				35 257
EQUITY AND LIABILITIES
Share capital and reserves
Share capital							27 126				25 904				25 895
Other reserves							671				777				676
Accumulated loss							(114	)			(1 430	)			(1 832	)
							27 683				25 251				24 739
Non-current liabilities
Borrowings			8				188				176				242
Deferred income tax							3 699				3 008				2 990
Provisions for other liabilities and charges							1 342				1 297				1 273
							5 229				4 481				4 505
Current liabilities
Trade and other payables							1 613				1 394				1 372
Provisions and accrued liabilities							273				295				287
Borrowings			8				2 671				3 363				3 857
							4 557				5 052				5 516
Liabilities directly associated with non-current assets classified as held for sale			4				378				492				497
							4 935				5 544				6 013
Total equity and liabilities							37 847				35 276				35 257
Number of ordinary shares in issue							417 637 697				403 424 148				403 253 756
Net asset value per share (cents)							6 628				6 259				6 135

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand)

		Issued
		share				Other				Accumulated
		capital				reserves				loss				Total
		R million				R million				R million				R million
Note			10
Balance — 30 June 2008			25 895				676				(1 832	)			24 739
Issue of share capital			1 231				—				—				1 231
Deferred share-based payments			—				22				—				22
Comprehensive (loss)/income for the period			—				(27	)			1 718				1 691
Balance as at 31 December 2008			27 126				671				(114	)			27 683
Balance — 30 June 2007			25 636				(349	)			(1 581	)			23 706
Issue of share capital			41				—				—				41
Deferred share-based payments			—				21				—				21
Comprehensive income/(loss) for the period			—				415				(520	)			(105	)
Balance as at 31 December 2007			25 677				87				(2 101	)			23 663

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)

		Quarter ended
						December				September				December
						2008				2008				2007
						(Unaudited)				(Unaudited)				(Unaudited)
		Note				R million				R million				R million
Cash flow from operating activities
Cash generated/(utilised) by operations							1 155				670				(376	)
Interest and dividends received							112				82				76
Interest paid							(62	)			(112	)			(118	)
Income and mining taxes paid							(142	)			(1	)			(9	)
Cash generated/(utilised) by operating activities							1 063				639				(427	)
Cash flow from investing activities
Decrease/(increase) in restricted cash							13				(103	)			(71	)
Net proceeds on disposal of listed investments							—				—				—
Net (additions)/disposals of property, plant and equipment							(840	)			798				(734	)
Other investing activities							64				10				65
Cash (utilised)/generated by investing activities							(763	)			705				(740	)
Cash flow from financing activities
Cash (utilised)/generated by investing activities							(763	)			705				(740	)
Cash flow from financing activities
Long-term loans raised							—				—				10
Long-term loans repaid							(698	)			(588	)			—
Ordinary shares issued — net of expenses							980				8				5
Cash generated/(utilised) by financing activities							282				(580	)			15
Foreign currency translation adjustments							(122	)			7				16
Net increase/(decrease) in cash and cash equivalents							460				771				(1 136	)
Cash and cash equivalents — beginning of period							1 186				415				1 571
Cash and cash equivalents — end of period			7				1 646				1 186				435

		Six months ended
		December				December
		2008				2007
		R million				R million
Cash flow from operating activities
Cash generated/(utilised) by operations			1 825				(322	)
Interest and dividends received			194				145
Interest paid			(174	)			(177	)
Income and mining taxes paid			(143	)			(21	)
Cash generated/(utilised) by operating activities			1 702				(375	)
Cash flow from investing activities
Decrease/(increase) in restricted cash			(90	)			203
Net proceeds on disposal of listed investments			—				1 310
Net (additions)/disposals of property, plant and equipment			(42	)			(1 567	)
Other investing activities			74				14
Cash (utilised)/generated by investing activities			(58	)			(40	)
Cash flow from financing activities
Cash (utilised)/generated by investing activities			(58	)			(40	)
Cash flow from financing activities
Long-term loans raised			—				2 098
Long-term loans repaid			(1 286	)			(1 802	)
Ordinary shares issued — net of expenses			988				24
Cash generated/(utilised) by financing activities			(298	)			320
Foreign currency translation adjustments			(115	)			36
Net increase/(decrease) in cash and cash equivalents			1 231				(59	)
Cash and cash equivalents — beginning of period			415				494
Cash and cash equivalents — end of period			1 646				435

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2008

1. Accounting policies

(a) Basis of accounting

The condensed consolidated interim financial statements for the period ended 31 December 2008 have been prepared using accounting policies that comply with International Financial Reporting Standards (IFRS), which are consistent with the accounting policies used in the audited annual financial statements for the year ended 30 June 2008. These condensed consolidated interim financial statements are prepared in accordance with IAS 34, Interim Financial Reporting and should be read in conjunction with the financial statements for the year ended 30 June 2008.

2. Cost of sales

		Quarter ended
		December				September				December
		2008				2008				2007
		(Unaudited)				(Unaudited)				(Unaudited)
		R million				R million				R million
Production costs			2 033				1 874				1 687
Amortisation and depreciation			310				308				228
Provision for rehabilitation costs			4				6				—
Care and maintenance cost of restructured shafts			10				12				10
Employment termination and restructuring costs			16				12				75
Share-based compensation			9				13				9
Provision for post-retirement benefits			1				—				—
Total cost of sales			2 383				2 225				2 009

		Six months ended
		December				December
		2008				2007
		R million				R million
Production costs			3 907				3 531
Amortisation and depreciation			618				429
Provision for rehabilitation costs			10				—
Care and maintenance cost of restructured shafts			22				19
Employment termination and restructuring costs			28				75
Share-based compensation			22				19
Provision for post-retirement benefits			1				—
Total cost of sales			4 608				4 073

3. Other income/(expenses) — net

Included in other income/(expenses) in the September 2008 quarter is R523 million profit on sale of 30.01% of Harmony’s Papua New Guinea gold and copper assets to Newcrest Mining Limited.

4. Non-current assets held for sale and discontinued operations

The assets and liabilities related to Mount Magnet (operations in Australia) have been presented as held for sale following approval of the Group’s management and Board of Directors on 20 April 2007. During fiscal 2008, we entered into an agreement with Monarch Gold Mining Company (Monarch) for the sale of these operations. However, during July 2008 we were advised that Monarch had placed itself in voluntary administration and on 1 August 2008 the Administrator indicated that Monarch would not proceed with the proposed purchase, and consequently the purchase agreement has been terminated. Management is still intent on the disposal of Mount Magnet despite the asset being classified as held for sale for more than 12 months.

The assets and liabilities relating to the Cooke 1, Cooke 2, Cooke 3, Cooke plant and relating surface operations (operations in the Gauteng area) have been presented as held for sale following the approval of the Group’s management on 16 October 2007. These operations were also deemed to be discontinued operations.

The conditions precedent on the sale of Randfontein’s Cooke assets to Rand Uranium have been fulfilled and the transaction became effective on 21 November 2008.

In exchange for 60% of the issued share capital of Rand Uranium, Harmony received US$40 million out of the total purchase consideration of US$209 million on the effective date of the transaction. A further US$157 million, plus interest thereon at 5% per annum, will be received by 22 April 2009. The balance of the purchase consideration of approximately US$12 million is due as soon as the second stage of the transaction, which relates to its Old Randfontein assets, is finalised, which is anticipated to be on or shortly after 22 April 2009. Pamodzi Resources Fund 1, LLP’s (PRF) investors, affiliates of First Reserve and AMCI Capital, have provided Harmony with a guarantee in respect of the payment of the above amounts. In addition, PRF pledged its shares in Rand Uranium to Harmony as security for RPF’s obligation to pay the purchase consideration to Harmony.

As a result of the transaction, the Group recognised a profit on sale of assets of R1 722 million before tax in the income statement in the December 2008 quarter.

Included in profit/(loss) from discontinued operations for the September 2008 quarter is an impairment charge for the Mount Magnet assets for R152 million, relating to the decrease in the fair value less cost to sell.

5. Earnings/(loss) per ordinary share

Earnings/(loss) per ordinary share is calculated on the weighted average number of ordinary shares in issue for the quarter ended 31 December 2008: 406.8 million (30 September 2008: 403.1 million, 31 December 2007: 399.8 million) and the six months ended 31 December 2008: 405.0 million (31 December 2007: 399.7 million).

The fully diluted earnings/(loss) per ordinary share is calculated on weighted average number of diluted ordinary shares in issue for the quarter ended 31 December 2008: 409.1 million (30 September 2008: 404.6 million, 31 December 2007: 402.1 million) and the six months ended 31 December 2008: 407.1 (31 December 2007: 402.4 million)

						Quarter ended
		December				September				December
		2008				2008				2007
		(Unaudited)				(Unaudited)				(Unaudited)
		R million				R million				R million
Total earnings/(loss) per ordinary share (cents):
Basic earnings/(loss)			324				100				11
Fully diluted earnings/(loss)			323				99				11
Headline earnings/(loss)			121				24				14
— Continuing operations			101				8				(48	)
— Discontinued operations			20				16				62
Reconciliation of headline earnings/(loss):
Continuing operations
Net profit/(loss)			332				474				(216	)
Adjusted for (net of tax):
Loss/(profit) on sale of property, plant and equipment			78				(553	)			(29	)
Loss on sale of listed investment			—				—				—
Profit on sale of associate			—				(1	)			—
Impairment of investment in associates			—				112				—
Provision for doubtful debt			—				—				53
Headline profit/(loss)			410				32				(192	)
Discontinued operations
Net profit/(loss)			984				(72	)			262
Adjusted for (net of tax):
(Profit)/loss on sale of property, plant and equipment			(901	)			(14	)			51
Impairment of property, plant and equipment			(1	)			152				(66	)
Headline profit			82				66				247
Total headline profit/(loss)			492				98				55

		Six months ended
		December				December
		2008				2007
		R million				R million
Total earnings/(loss) per ordinary share (cents):
Basic earnings/(loss)			424				(131	)
Fully diluted earnings/(loss)			422				(130	)
Headline earnings/(loss)			145				(27	)
— Continuing operations			109				(83	)
— Discontinued operations			36				56
Reconciliation of headline earnings/(loss):
Continuing operations
Net profit/(loss)			806				(750	)
Adjusted for (net of tax):
Loss/(profit) on sale of property, plant and equipment			(476	)			(27	)
Loss on sale of listed investment			—				392
Profit on sale of associate			—				—
Impairment of investment in associates			112				—
Provision for doubtful debt			—				53
Headline profit/(loss)			442				(332	)
Discontinued operations
Net profit/(loss)			912				230
Adjusted for (net of tax):
(Profit)/loss on sale of property, plant and equipment			(915	)			51
Impairment of property, plant and equipment			151				(59	)
Headline profit			148				222
Total headline profit/(loss)			590				(110	)

6. Investment in associate

Harmony Gold Mining Company owns 32.4% of Pamodzi Gold Limited. At 30 September 2008, management tested for impairment of the investment in associate and an amount of R112 million was impaired. During the December 2008 quarter the Group recognised a loss of R34 million, its share of the associate loss, resulting in a carrying value of R0.

On 21 November 2008, Harmony Group sold 60% of the issued share capital of Rand Uranium to PRF. Refer to note 4 for details. This resulted in the Group owning 40% of Rand Uranium. The book value of the investment at 31 December 2008 was R228 million.

7. Cash and cash equivalents Comprises of:

		December				September				June
		2008				2008				2008
						(Unaudited)				(Audited)
		R million				R million				R million
Continuing operations			1 645				1186				413
Discontinued operations			1				—				2
Total cash and cash equivalents			1 646				1 186				415

8. Borrowings

		December				September				June
		2008				2008				2008
						(Unaudited)				(Audited)
		R million				R million				R million
Unsecured borrowings
Convertible unsecured fixed rate bonds			1 672				1 649				1 626
Africa Vanguard Resources (Proprietary) Limited			32				32				32
			1 704				1 681				1 658
Less: Short-term portion			(1 672	)			(1 649	)			(1 626	)
Total unsecured long-term borrowings			32				32				32
Secured borrowings
Westpac Bank Limited*			198				183				258
Africa Vanguard Resources (Doornkop) (Pty) Limited (Nedbank Limited)			209				201				194
Nedbank Limited			750				1 482				2 000
Less: Unamortised transaction costs			(2	)			(8	)			(11	)
			1 155				1 858				2 441
Less: Short-term portion			(999	)			(1 714	)			(2 231	)
Total secured long-term borrowings			156				144				210
Total long-term borrowings			188				176				242
Total current portion of borrowings			2 671				3 363				3 857
Total long-term borrowings			2 859				3 539				4 099

		December				September				June
		2008				2008				2008
						(Unaudited)				(Audited)
		R million				R million				R million
Due within one year			63				46				57
Due between two and five years			156				156				228
			219				202				285
Future finance charges			(21	)			(19	)			(27	)
Total future minimum lease payments			198				183				258

9. Commitments and contingencies

		December				September				June
		2008				2008				2008
						(Unaudited)				(Audited)
		R million				R million				R million
Capital expenditure commitments
Contracts for capital expenditure			692				512				1 164
Authorised by the directors but not contracted for			1 689				2 132				1 720
			2 381				2 644				2 884
This expenditure will be financed from existing resources and where appropriate, borrowings.
Contingent liabilities			18				18				18
Guarantees and suretyships			305				303				171
Environmental guarantees			323				321				189

Contingent liability

On 18 April 2008, Harmony Gold Mining Company Limited was made aware that it has been named or may be named as a defendant in a lawsuit filed in the U.S. District Court in the Southern District of New York on behalf of certain purchasers and sellers of Harmony’s American Depositary Receipts (ADRs). Harmony has retained legal counsel, who will advise Harmony on further developments in the U.S.

10. Share capital

Wafi-Golpu royalty

On 1 December 2008, Harmony issued 3 364 675 shares to Rio Tinto Limited. The Harmony shares were issued to cancel the Rio Tinto royalty rights over Wafi-Golpu in Papua New Guinea. The value of issued shares was R242 million (US$24 million) at R71.98 per share.

Capital raising

Harmony engaged in capital raising between 25 November 2008 and 19 December 2008 by issuing shares into the open market following the resolution passed by shareholders at the Annual General Meeting held on 24 November 2008. In the capital raising, 10 504 795 Harmony shares were issued at an average subscription price of R93.20, resulting in R979 million before costs being raised. The number of shares issued is equivalent to 2.6% of Harmony’s issued share capital. The cost of the issue was R15 million or 1.5% of the value of shares issued.

11. Segment report

The Group early adopted IFRS 8 — Operating Segments in the 2008 financial year. The standard requires a “management approach”, under which segment information is presented on the same basis as that used for internal reporting to the chief operating decision maker (CODM).

The Group has only one product, being gold. In order to determine operating and reportable segments, management reviewed various factors, including geographical location as well as managerial structure. It was determined that an operating segment consists of a shaft or a group of shafts managed by a single general manager and management team.

After applying the quantitative thresholds from the standard, the reportable segments were determined as:

Tshepong, Phakisa, Bambanani, Masimong, Target, Doornkop, Elandsrand, Evander, Virginia, Cooke (held for sale and discontinued) and Papua New Guinea. All other operating segments have been grouped together under other — underground or other — surface, under their classification as either continuing or discontinued.

The comparative segment reports have been restated for these changes.

When assessing profitability, the CODM considers the revenue and production costs of each segment. The net of these amounts is the cash operating profit or loss. Therefore, cash operating profit has been disclosed in the segment report

as the measure of profit or loss.

The CODM does not consider depreciation or impairment and therefore these amounts have not been disclosed in the segment report.

12. Review report

The condensed consolidated financial statements for the six months ended 31 December 2008 have been reviewed in accordance with International Standards on Review Engagements 2410 — “Review of interim financial information performed by the Independent Auditors of the entity” by PricewaterhouseCoopers Inc. Their unqualified review opinion is available for inspection at the Company’s registered office.

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2008 (Rand/Metric)

						Production				Operating
Continuing operations		Revenue				cost				profit
South Africa		R million				R million				R million
Underground
Tshepong			903				501				402
Phakisa			60				43				17
Bambanani			509				342				167
Doornkop			157				138				19
Elandsrand			720				565				155
Target			296				250				46
Masimong			592				336				256
Evander			804				522				282
Virginia			1 043				758				285
Other(1)			271				190				81
Surface
Other (2)			473				262				211
Total South Africa			5 828				3 907				1 921
International
Papua New Guinea(3)			—				—				—
Total international			—				—				—
Total continuing operations			5 828				3 907				1 921
Discontinued operations
Cooke			614				447				167
Total discontinued operations			614				447				167
Total operations			6 442				4 354				2 088

		Capital								Tonnes
Continuing operations		expenditure				Kilograms				milled
South Africa		R million				sold				t’000
Underground
Tshepong			117				3 833				697
Phakisa			237				254				66
Bambanani			20				2 180				264
Doornkop			217				657				253
Elandsrand			211				3 086				503
Target			166				1 281				318
Masimong			68				2 485				457
Evander			111				3 425				610
Virginia			82				4 387				1 149
Other(1)			24				1 155				275
Surface
Other (2)			31				2 014				4 198
Total South Africa			1 284				24 757				8 790
International
Papua New Guinea(3)			933				—				—
Total international			933				—				—
Total continuing operations			2 217				24 757				8 790
Discontinued operations
Cooke			87				2 667				1 287
Total discontinued operations			87				2 667				1 287
Total operations			2 304				27 424				10 077

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 (Rand/Metric)

						Production				Operating
Continuing operations		Revenue				cost				profit/(loss)
South Africa		R million				R million				R million
Underground
Tshepong			738				482				256
Phakisa			3				4				(1	)
Bambanani			472				427				45
Doornkop			138				120				18
Elandsrand			371				374				(3	)
Target			229				170				59
Masimong			326				354				(28	)
Evander			714				502				212
Virginia			707				668				39
Other (1)			183				220				(37	)
Surface
Other (2)			374				210				164
Total South Africa			4 255				3 531				724
International
Papua New Guinea			—				—				—
Total international			—				—				—
Total continuing operations			4 255				3 531				724
Discontinued operations
Cooke			681				467				214
Other			759				657				102
Total discontinued operations			1 440				1 124				316
Total operations			5 695				4 655				1 040

		Capital								Tonnes
Continuing operations		expenditure				Kilograms				milled
South Africa		R million				sold				t’000
Underground
Tshepong			102				4 547				774
Phakisa			123				18				6
Bambanani			64				2 870				537
Doornkop			165				846				248
Elandsrand			140				2 329				383
Target			84				1 413				310
Masimong			63				2 001				444
Evander			133				4 420				734
Virginia			81				4 319				1 138
Other (1)			26				1 134				258
Surface
Other (2)			70				2 289				4 195
Total South Africa			1 051				26 186				9 027
International
Papua New Guinea			436				—				—
Total international			436				—				—
Total continuing operations			1 487				26 186				9 027
Discontinued operations
Cooke			79				4 158				1 801
Other			145				4 683				1 685
Total discontinued operations			224				8 841				3 486
Total operations			1 711				35 027				12 513

This report was approved by the Board of Directors and is signed on their behalf by:

G Briggs		F Abbott		Randfontein
Chief Executive Officer		Interim Financial Director		6 February 2009

CONTACT DETAILS

HARMONY GOLD MINING COMPANY LIMITED

Corporate Office

Randfontein Office Park
PO Box 2
Randfontein, 1760
South Africa
Corner Main Reef Road
and Ward Avenue
Randfontein, 1759
Johannesburg
South Africa
Telephone: +27 11 411 2000

Website: http://www.harmony.co.za

Investor Relations Team

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

Esha Brijmohan
Investor Relations Officer
Telephone: +27 11 411 2314
Fax: +27 11 692 3879
Mobile: +27 82 922 4584
E-mail: esha@harmony.co.za

Company Secretary

Khanya Maluleke
Telephone: +27 11 411 2019
Fax: +27 11 411 2070
E-mail: khanya.maluleke@harmony.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
5th Floor, 11 Diagonal Street
Johannesburg, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 86 154 6572
Fax: +27 11 834 4389

ADR Depositary

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

Directors

P T Motsepe (Chairman)*
G Briggs (Chief Executive Officer)
F Abbott (Interim Financial Director)
J A Chissano*1
F F T De Buck*, Dr C Diarra*+,
K V Dicks*, Dr D S Lushaba*, C Markus*,
M Motloba*, C M L Savage*, A J Wilkens*

 

(* non-executive)
(1 Mozambican)
(+ US/Mali Citizen)

United Kingdom Registrars

Capita Registrars
The Registry
34 Beckenham Road
Bechenham
Kent BR3 4TU
United Kingdom
Telephone: +44 870 162 3100
Fax: +44 208 636 2342