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 1 November 2010

Harmony Gold Mining Company

Limited

Randfontein Office Park

Corner Main Reef Road and Ward Avenue

Randfontein, 1759

South Africa

(Address of principal executive offices)

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

F or Form 40-F.)

Form 20-F X Form 40-F

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

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

Securities Exchange Act of 1934.)

Yes No X

SHAREHOLDER INFORMATION

Issued ordinary share capital at

428 850 584

30 September 2010

Market capitalisation

At 30 September 2010 (ZARm)

33 450

At 30 September 2010 (US$m)

4 842

Harmony ordinary share
and ADR prices

12 month high (1 October 2009 to

30 September 2010) for ordinary shares R87.00

12 month low (1 October 2009 to

30 September 2010) for ordinary shares R68.65

12 month high (1 October 2009 to

30 September 2010) for ADRs

US$11.98

12 month low (1 October 2009 to

30 September 2010) for ADRs

US$8.79

Free float

Ordinary shares

100%

ADR ratio

1:1

JSE Limited

HAR

Range for quarter

(1 July 2010 to

R71.90 –

30 September 2010 – closing prices)

R83.80

Average volume for

the quarter (1 July 2010 to

1 863 621

30 September 2010)

shares per day

New York Stock
Exchange, Inc.

HMY

Range for quarter

(1 July 2010 to

US$9.72 –

30 September 2010 – closing prices) US$11.74

Average volume for

the quarter (1 July 2010 to

733 895

30 September 2010)

shares per day

Key features

Wafi/Golpu – size and grade of deposit increasing
• world-class copper/gold porphyry system

Mining Charter targets in line with objectives

Operational results
• 6 fatalities
• production decreased by 2.9%
• cash operating costs up by 11.2% (labour and electricity)
• underground grade steady at 4.68g/t

Healthy operating margin at 20.4%

Cash operating profit of R652 million

Financial summary for the first quarter ended 30 September 2010

Quarter

September

June

Q-on-Q

2010

Variance %

Gold produced

(1)

– kg

10 471

10 784

(2.9)

– oz

336 650

346 714

(2.9)

Cash costs

– R/kg

228 658

201 460

(13.5)

– US$/oz 974 831 (17.2)

Gold sold

(1)

– kg 10 869 10 739 1.2

– oz 349 447 345 266 1.2

Gold price received

– R/kg 287 401 295 580 (2.8)

– US$/oz 1 224 1 219 0.4

Cash operating profit

– Rm 652 942 (30.8)

– US$m 89 125 (28.8)

Basic earnings per share*

– SAc/s 24 7 >100.0

– USc/s 3 1 >100.0

Headline profit/(loss)*

– Rm 141 (27) >100.0

– US$m 19 (4) >100.0

Headline earnings/(loss) per share*

– SAc/s 33 (6) >100.0

– USc/s 5 (1) >100.0

Adjusted headline earnings – SAc/s 51 13 >100.0

per share

(2)*

– USc/s 7 2 >100.0

Exchange rate – R/US$ 7.31 7.54 (3.1)

* Reported amounts include continuing operations only.

(1) Production statistics for Steyn 2 and Target 3 have been included. These mines are in a build-up phase and revenue

and costs are currently capitalised. Revenue capitalised includes Steyn 2, 31kg (June 2010 – 29kg) and Target 3, 111kg
(June 2010 – 92kg). 120kg were capitalised for Hidden Valley in June 2010.

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

Harmony’s Annual Report, Notice of Annual General Meeting, its Sustainable Development Report
and its annual report filed on a Form 20F with the United States’ Securities and Exchange
Commission for the year ended 30 June 2010 are available on our website (www.harmony.co.za).

Incorporated in the Republic of South Africa
Registration Number 1950/038232/06
(“Harmony” or “Company”)

Results for the ﬁ rst quarter FY11, ended 30 September 2010

JSE Share code: HAR | NYSE Share code: HMY | ISIN: ZAE 000015228

Results for the first quarter
ended 30 September 2010

Forward-looking statements

This quarterly report contains forward-looking
statements within the meaning of the United
States Private Securities Litigation Reform Act
of 1995 with respect to Harmony’s financial
condition, results of operations, business
strategies, operating efficiencies, competitive
positions, growth opportunities for existing
services, plans and objectives of management,
markets for stock and other matters. Statements
in this quarter that are not historical facts are
“forward-looking statements” for the purpose of
the safe 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 judgment of the senior management of
Harmony and involve a number of risks and
uncertainties that could cause actual results to
differ materially from those suggested by the
forward-looking statements. As a consequence,
these forward-looking statements should be
considered in light of various important factors,
including those set forth in this quarterly report.
Important factors that could cause actual results
to differ materially from estimates or projections
contained in the forward looking statements
include, without limitation:

overall economic and business conditions in
South Africa and elsewhere;

the ability to achieve anticipated efficiencies
and other cost savings in connection with past
and future acquisitions;

increases/decreases in the market price of
gold;

the occurrence of hazards associated with
underground and surface gold mining;

the occurrence of labour disruptions

availability, terms and deployment of capital;

changes in Government regulation, particularly
mining rights and environmental regulations;

fluctuations in exchange rates;

currency devaluations and other macro-
economic monetary policies; and

socio-economic instability in South Africa and
regionally.

Contents

Page

Chief Executive’s Review

Safety and health

Financial review

Operational review

– Group operational results

– Build-up and steady operations

– Doornkop

– Kusasalethu

– Phakisa

– Masimong

– Tshepong

– Papua New Guinea

– Other South African operations

– Bambanani

– Steyn 2

– Evander

– Joel

– Target 1

– Target 3

– Virginia

– South African surface operations

– Kalgold

– Phoenix

– Surface dumps

Development

Exploration

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

Condensed consolidated income statement (Rand)

Condensed consolidated statement of other comprehensive income (Rand)

Condensed consolidated balance sheet (Rand)

Condensed consolidated statement of changes in equity (Rand)

Condensed consolidated cash flow statement (Rand)

Notes to the condensed consolidated financial statements
for the first quarter ended 30 September 2010

Operating results (US$/Imperial)

Condensed consolidated income statement (US$)

Condensed consolidated statement of other comprehensive income (US$)

Condensed consolidated balance sheet (US$)

Condensed consolidated statement of changes in equity (US$)

Condensed consolidated cash flow statement (US$)

Segment report (US$)

Development results – metric and imperial

Contact details

Chief Executive’s Review

“The current quarter under review has brought us one step closer to

achieving the previously stated production target of 2 million ounces

by 2013. Despite declining gold production in the South African gold

mining industry, Harmony has an exciting growth profile through

its portfolio of South African and Papua New Guinean growth and

development projects. Exploration drilling in Wafi/Golpu showed

tremendous results and emphasises the potential for the Morobe

Mining Joint Venture to establish another high quality, world-class

operation in Papua New Guinea”, stated chief executive officer,

Graham Briggs.

Safety

Performance on the safety front during the quarter was extremely

disappointing. We experienced the loss of six colleagues in work-

related accidents during the quarter, despite the fact that many of the

safety performance indicators continued to demonstrate a positive

trend.

Tragically, five Mine Rescue Team members died at the Phakisa mine

on 24 June 2010 as a result of an explosion while they were manning a

fresh-air base during an underground fire. They were Brigade Captain

Siegfried Hildebrandt and Brigadesmen Burnett Bothma, Frans

Prinsloo, Johannes Bothma and Jose Randall. The circumstances

surrounding this accident are still under investigation and further

detail will be provided upon its completion. Our condolences are

extended to the families, colleagues and friends of these brave men,

who selflessly and voluntarily gave of their time and energy to protect

the lives of others.

In another accident, on 26 August 2010, Raimundo Tala, a winch

operator at Tshepong, died in a fall-of-ground accident. Condolences

are extended to his family, colleagues and friends.

It is our fundamental belief that safety in the workplace can only be

addressed through a co-operative approach that ensures the right

infrastructure is in place from systems, planning, communication

and training perspectives. In addition to this approach, management

and employees must accept joint responsibility for their actions

and it is imperative the working environment empowers people –

management, supervisors, workers and union representatives – to

stop work and withdraw when they feel it is unsafe, or to prevent

others from acting in an unsafe way.

Safety is not only about training, using the correct equipment and

ensuring a safe working environment, it is also about the attitude and

mindset of people. Harmony takes full responsibility for the attitude

and mindset of its employees because it is recognised that these

influence their behaviour at work. Therefore a renewed focus has

been placed on implementing, communicating and reinforcing safety

in the workplace, through the creation of a centralised safety function

and structure which will co-ordinate initiatives between various

regions and shafts.

A number of operations recorded excellent safety milestones during

the quarter and we commend employees, management and union

representatives for these achievements. Refer to the detailed safety

report on page 5.

Gold market

Gold has established itself as a store of wealth and as a currency

in the current uncertain times. We remain bullish on the gold price

and continue to see it in the region of $1 500/oz next year. However,

as the gold price and the continued strength of the Rand are out of

Harmony’s control, we continue to focus on impacting factors within

our control – safety, productivity, production and cost control.

Operating and financial performance

Production growth at our four growth projects of 193kg quarter-on-

quarter was offset by the closure of some of our older shafts, lower

grade at Bambanani and continued work on Joel’s shaft bottom, which

resulted in an overall decline in gold production for the group of 2.9%

to 10 471kg for the quarter ended 30 September 2010.

This reduction can be attributed mainly to:

• lower grades at Bambanani (259kg);

• planned closure of Harmony 2 (58kg) and Merriespruit 3 (58kg)

shafts;

• a 43-production day shaft stoppage at Joel to allow for the completion

of modifications to the shaft bottom spillage arrangement (230kg);

• the loss of 13 production days at Phakisa following the tragic

accident (39kg);

• lower grade at Kalgold (42kg).

Countering these events were improvements at:

• Kusasalethu, where gold production rose by 113kg;

• Hidden Valley, which recorded an 86kg increase in production;

• Doornkop, which recorded an 33kg increase in production;

• Masimong, an increase of 62kg in production;

• Other South African surface operations, which saw gold production

rise by 52kg.

The Rand per kilogram gold price received decreased by 2.8%

to an average of R287 401/kg in the September 2010 quarter, from

R295 580/kg in the previous quarter. However, gold sold increased

by 130kg compared with the previous quarter which resulted in a

R38 million increase in revenue.

As expected, cash operating costs for the quarter increased by

R238 million (11.2%) when compared with the previous quarter mainly

due to:

• Hidden Valley in Papua New Guinea (PNG) being in production for

the full quarter (R50 million);

• cost increases at the South African operations comprised mainly of:

– electricity cost increases owing to winter tariffs (R123 million);

and

– labour costs increases of R46 million.

Consequently, unit costs rose by 13.5% to R228 658/kg.

Capital expenditure decreased by R75 million (9.1%) to R749 million in

the quarter under review compared to R824 million in the June 2010

quarter.

Results for the first quarter
ended 30 September 2010

Cash operating profit for the September 2010 quarter of R652 million

was 30.8% lower when compared to the June 2010 quarter’s cash

operating profit of R942 million.

A more detailed operation-by-operation review is provided under the

heading “Operational overview” on page 6.

In line with our strategy of asset optimisation, a number of corporate

activities were concluded during the quarter. As a result of this

strategy, certain non-core assets were divested and shafts closed

so that the management team may focus its resources on growing,

developing and operating its portfolio of core, quality assets.

These divestments and shaft closures include:

• The sale of the Mount Magnet Gold project in Western Australia

to Australian-based Ramelius Resources Limited for R238 million

(A$35 million) cash on 20 July 2010 as well as R31 million

(A$5 million) released from the replacement of performance

bonds by the purchaser.

• The conclusion of two transactions with Witwatersrand

Consolidated Gold Resources (Wits Gold). In terms of these

transactions, Wits Gold will obtain a prospecting right over

Harmony’s Merriespruit South area and the option held by

ARMGold/Harmony Joint Venture Company (Proprietary) Limited

(Freegold), a wholly-owned subsidiary of Harmony. The option

was to acquire a beneficial interest of up to 40% in any future

mines established by Wits Gold on certain properties in the

Southern Free State (Freegold option). The total consideration

price of the transactions is R336 million (R61 million for the

prospecting area and R275 million for the cancellation of

the option agreement), which will be settled in cash or in a

combination of cash and shares in Wits Gold. The agreements

were signed on 3 September 2010 and outstanding conditions

precedent are expected to be fulfilled by November 2010 for the

option agreement and June 2011 for the prospecting right.

• On 10 September 2010, Harmony concluded a sale of assets

agreement with Taung Gold Limited (Taung), in which Taung

acquired the Evander 6 shaft, the related infrastructure and

surface right permits as well as a mining right over the

Evander 6 and Twistdraai areas. The total purchase consideration

is R225 million which will be settled in cash, when all remaining

conditions precedent to the transaction have been fulfilled.

• Following careful and considerable review, the company

announced on 18 October 2010 that it would be closing the

Merriespruit 1 shaft in Virginia at the end of October 2010. Earlier

this year a productivity-linked deal with the trade unions was

reached that allowed Merriespruit 1 to continue its operations,

provided it did not make a loss (on a total cost basis, including

any capital expenditure) for two consecutive months and total

costs remained under R250 000/kg. Despite the operational

team’s best endeavours, Merriespruit 1 has failed to meet these

conditions and closure procedures have commenced.

We have embarked on a formal consultation process with

employees in terms of section 189A of the Labour Relations

Act to consider alternatives to retrenchment. Approximately

1 470 employees are affected by the closure and, of this number,

1 200 will largely be transferred to our growth operations so as to

preserve as many jobs as possible.

Milestone at Hidden Valley

30 September 2010 marked an exciting milestone for Harmony when

the Hidden Valley mine was officially opened at a ceremony attended

by PNG dignitaries, directors and senior management of both Harmony

and Newcrest Limited (Newcrest) and employees. Hidden Valley, part

of the 50/50 Morobe Mining Joint Ventures (MMJV) with Newcrest,

was Harmony’s first offshore greenfields project, and represents an

important step in our group’s strategy for geographical and asset

diversification.

While the development of this project was not without its challenges –

given its remote location and relative lack of infrastructure – the

government and communities of Papua New Guinea (PNG) and

Morobe Province have provided enormous support to the project, and

have worked closely with the MMJV to ensure that the development

of the Hidden Valley mine has long-term, positive and sustainable

consequences for the region.

Hidden Valley also completed its first full quarter of commercial

production, where post-commissioning and ramp up activities are

making good progress.

The experience we have gained with the development of Hidden

Valley will stand us in good stead as we continue to seek growth, both

in Morobe Province as part of the MMJV and elsewhere in PNG on

Harmony’s 100%-owned exploration portfolio.

Wafi/Golpu Joint Venture (part of MMJV)

Excellent progress was made and reported at our Wafi/Golpu joint

venture project during the quarter.

The concept study was finalised in September 2010 and shows that

a copper gold mine at Wafi/Golpu is technically and financially viable,

and that a number of development options could be considered in a

pre-feasibility study. Production could potentially be between 400 000

to 700 000oz of gold, and 100 000 to 200 000t of copper per annum.

This would be sustainable over a 20-year mine life without considering

the Golpu resource extensions currently being identified by drilling.

Cash costs would be in the lower quartile (assuming copper credits)

and capital expenditure would be of the order of US$3 billion. Based

on the outcome of the scoping study, and subsequent project gate

review a decision was made to progress this project to pre-feasibility

stage.

As announced recently, we also continue to drill spectacular intercepts

at this project, with the exploration target at this project upgraded to

30 million ounces of gold and 8 million tonnes of copper, 50% of which

would be attributable to Harmony.

Revisions to the Mining Charter

On 13 September 2010, the South African Minister of Mineral

Resources, Susan Shabangu, released the revised Mining Charter

and the associated scorecard, the Broad-Based Socio-Economic

Empowerment (BBSEE) scorecard. Harmony has been at the forefront

in implementing various transformation initiatives in terms of the

legislated empowerment objectives, and has met most of the new

2014 targets in terms of the revised Mining Charter. The only area

which requires more attention and on which we are currently focusing,

is that of enterprise development, as the revised Mining Charter now

specifically stipulates certain requirements to be met.

Looking ahead

Our aim at Harmony is to focus on safe, profitable ounces. To do this

we have taken bold decisions in shutting unprofitable operations and

focused our attention on our longer-life, lower-cost operations that

will be profitable and sustainable for many years to come. There are

many steps in this journey and this quarter has indeed been one of

them as we progress towards consolidating our lower-cost, quality

asset base. We remain focused on increasing production to 2 million

ounces of gold by FY 2013, with costs per tonne milled in the lowest

quartile of South African producers.

Graham Briggs

Chief Executive Officer

Safety and health

Safety

Harmony remains committed to its aim to achieve its production
targets safely. Every employee has the right to withdraw from an
unsafe environment.

It is with deep regret that we report that six fatalities occurred in two
incidents in the South African operations during the September 2010
quarter.

Harmony achieved a single digit figure on Lost Time Injury Frequency
Rate (LTIFR) for the eighth quarter in a row. The LTIFR for this quarter
is 7.98, a regression of 4% compared to the June 2010 quarter. The
Fatality Injury Frequency Rate (FIFR) improved by 7% quarter-on-
quarter. The following operations achieved excellent safety results
during the quarter:

All North operations (Kusasalethu,
Doornkop, Evander, Kalgold):

1 000 000 fatality free shifts

Bambanani total operations:

750 000 fatality free shifts

Target total operations:

500 000 fatality free shifts

Unisel:

500 000 fatality free shifts

Free State Metallurgy:

500 000 fatality free shifts

The following operations completed the September 2010 quarter
without an injury:

• Kalgold

• Phoenix Plant

• Target Plant

• Joel Plant

• Free State & Randfontein Commercial Services and Transport

• Evander Workshops

• Evander Services

Health

Our employees’ state of health is important to us and we therefore
continue to support healthcare programmes and measure any
potential impact of threats.

Noise levels measured reduced with 75% of all mechanical loaders
having been equipped with silencers. Internal radiation audits are
being conducted and results reflect that all operational underground
operations are well within the limits set by the National Nuclear
Regulator (the NNR). Tuberculosis in conjunction with HIV remains
a concern but is addressed through various initiatives. See our
Sustainable Development Report for more details on our website
www.harmony.co.za.

During the September 2010 quarter healthcare was brought closer to
the operations in order to speed up treatment and identify early signs
of epidemic trends. The medical station at Target was successfully
completed and is now a Health Hub, which provides a fully integrated
proactive healthcare service.

Results for the first quarter
ended 30 September 2010

Financial overview

Cash operating profit decreased by 30.8% to R652 million in the
September 2010 quarter. This was due to an increase in production
costs of R328 million as a result of a rise in the electricity tariffs,
labour costs and other input costs. This was offset by an increase of
R38 million in revenue, as a result of an increase of 1.2% in gold sold.

Earnings per share

Basic earnings per share increased from 3 SA cents to 23 SA cents per
share. Similarly headline earnings per share increased from a loss of
10 SA cents per share to earnings of 33 SA cents per share.

Revenue

Revenue increased from R3 045 million to R3 083 million due to an
increase of 1.2% in gold sold. This increase was offset by a decrease in
the Rand gold price received from R295 580/kg to R287 401/kg.

Cost of sales

Cost of sales increased from R2 649 million to R2 995 million in the
September 2010 quarter. This was due to an increase of R333 million
in production costs and R43 million in depreciation and amortisation.

Capital expenditure

Total capital expenditure decreased by 9.1% to R749 million in the
September 2010 quarter, with R688 million spent in South Africa and
R61 million in PNG.

Other expenses

Other expenses includes foreign exchange losses of R47 million
reclassified from other reserves on the liquidation of foreign
subsidiaries.

Gain on financial instruments

Included in the total for the September 2010 quarter is an amount of
R273 million related to the fair value movement on the Freegold option.

Discontinued operations

The total includes the profit on the sale of Mount Magnet of
R104 million, net of tax, offset by the foreign exchange losses
reclassified from other reserves on the disposal of the subsidiary.

Operational overview

Group operational results

September

June

Indicator

Units

2010

2010 variance

Tonnes

(’000)

5 098

4 699

8.5

Grade

(g/t)

2.03

2.24

(9.4)

Gold produced

(kg)

10 471

10 784

(2.9)

Gold sold

(kg)

10 869

10 739

1.2

Cash operating costs (R/kg)

228 658

201 460

(13.5)

Operating proﬁ t

(R’000)

651 902

941 954

(30.8)

Cash operating profit decreased by 30.8% quarter-on-quarter to
R652 million as gold produced was down by 2.9% to 10 471kg. This
reduced production was as a result of a combination of:

• work stoppages at Joel and Phakisa;

• planned closures of Harmony 2 and Merriespruit 3;

• underground recovery grade remained steady at 4.68g/t.

Total cash operating costs rose by 11.2% during the quarter, which
represents a commendable performance, given the significant rise in
electricity tariffs, higher winter electricity rates, increased labour costs
(as wage agreements came into effect from 1 July 2010) and rises in
other input costs (steel, stores).

Our growth in the short to medium term will come from four
projects, three in South Africa – (Doornkop, Kusasalethu and
Phakisa) and one in PNG, being Hidden Valley. Most of the capital
on these projects has been spent and we have already seen the
production benefits. In addition, Tshepong and Masimong have
shown a steady performance which, together with the projects, will
drive the company down the cost curve. The write-up that follows
will focus first on the aforesaid operations, after which Harmony’s
other South African operations will be discussed.

Build-up and steady operations

Doornkop

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

140

139

0.7

Grade

(g/t)

3.86

3.65

5.8

Gold produced

(kg)

541

508

6.5

Cash operating costs

(R/kg)

249 294

222 276

(12.2)

Operating profit

(R’000)

20 502

32418

(36.8)

Gold production increased by 6.5% quarter-on-quarter, to 541kg,
mainly due to an improvement in face grade from the South Reef,
which resulted in a higher recovered grade of 3.86g/t, 5.7% higher
than the previous quarter. An improvement in development grades
and development metres contributed to the grade improvements.

Cash operating costs were 19.4% higher quarter-on-quarter, mainly
due to higher labour and electricity costs. Additional labour was
employed for the production build-up and the cost of project
commissioning labour was transferred from capital expenditure to
operating costs, resulting in higher labour costs. Electricity costs were
higher due to higher winter tariffs and, to a lesser extent, an increase
in consumption as a result of production build up. Stores and material
costs also increased. Cash operating profit therefore deteriorated by
36.8% due to higher cash operating costs.

Total square metres blasted in the Kimberley reef increased due to
new trackless machinery that was delivered during the quarter. Delays
in equipment delivery schedules will impact on the planned build-up in
the Kimberley reef in the December 2010 quarter. Mitigation measures
are being pursued. The build-up in the South Reef will, however, assist
Doornkop in meeting its targets in December 2010. The transfer of
an additional 13 production crews from Merriespruit 1 shaft during
the December quarter will further assist in improving production and
development at the mine.

The remaining equipping of the shaft rock winder compartments to
212 level was completed during the quarter. Cold commissioning of the
rock winder and loading station will start during the December 2010
quarter. The commissioning of the winder will facilitate a hoisting
capacity of approximately 160 000 tonnes per month. The project is
still on schedule to be completed by the expected completion date
and within budget.

Kusasalethu

September

June

Indicator

Units

2010

2010 variance

Tonnes

(000)

269

314

(14.3)

Grade

(g/t)

5.62

4.46

26.0

Gold produced

(kg)

1 513

1 400

8.1

Cash operating costs

(R/kg)

225 164

209 112

(7.7)

Operating profit

(R’000)

88 758

122 778

(27.7)

Planned build-up in production at Kusasalethu continued in line
with its life-of-mine plan. Gold production increased by 8.1%
quarter-on-quarter to 1 513kg. Exclusion of waste to the mill resulted
in recovered grade increasing by 26.2% to 5.62g/t quarter-on-quarter.

Tonnes milled decreased by 14.3% to 269 000t mainly as a result of the
separation of waste and reef tonnages during August and September
2010. This will persist until the blockage in the waste orepass system
between the old mine (above 100 level) and the new mine (below
100 level) has been removed during the December 2010 quarter, and
following the subsequent rehabilitation of the reef orepass system.
We believe that it will be resolved during the December 2010 quarter.

Cash unit cost increased by 7.7% to R225 164/kg, mainly as a result
of an increase in labour costs, stores and the winter tariff increases.
Cash operating profit declined by 27.7% to R89 million.

The sub-station for the 100 level refrigeration complex and the
98 level complex were commissioned during the quarter, and the
mechanical construction work on the refrigeration plants is on track,
to be completed at the end of December 2010. The raise-boring of the
centre hole of the No. 3 Backfill shaft between 109 level and 113 level
was completed and sinking has progressed 38m down to 113 level
from 109 level. Civil construction for the installation of the turbine

on 92 level is complete and mechanical installation has started.
The project is still on schedule to be completed by the expected
completion date and within budget.

Phakisa

September

June

Indicator

Units

2010

2010 variance

Tonnes

(’000)

(9.5)

Grade

(g/t)

4.38

–

Gold produced

(kg)

377

416

(9.4)

Cash operating costs

(R/kg)

296 520

231 570

(28.0)

Operating profit

(R’000)

320

23 462

(98.6)

Phakisa recorded the tragic death of five Mine Rescue members
caused by the explosion incident on 24 June 2010. This accident,
together with an ice pipe failure in the shaft and a fire in the 66 – 63
stope resulted in a 9.5% decrease in tonnes milled quarter-on-quarter.

Pleasingly, an improvement in reef metres achieved was recorded
despite the lost days and this will have a positive impact on flexibility
going forward. In addition, a new record of 1 630t of ice per day was
achieved in the quarter, resulting in a water temperature of < 6°C,
which will have a positive effect on productivity.

The grade was constant at 4.38g/t. A significant improvement in the
face grade mined (g/t) was achieved from August 2010, with a focus
on reducing footwall waste and improving the mining mix.

Total cash operating costs increased by 16.0% due to labour cost
increases, and to a lesser extent, electricity and water. Unit costs
regressed as a result of less gold produced and higher costs, rising
by 28.0% to R296 520/kg. Consequently, operating profit was lower.

Equipment salvaged from the Virginia operations reduced the need
for capital spent on equipment. Most of the Phase 1 infrastructure has
been completed. Modifications to the loading boxes on 77 level are still
planned for the December 2010 break. The project is still on schedule
to be completed by the expected completion date and within budget.

Masimong

September

June

Indicator

Units

2010

2010 variance

Tonnes

(’000)

243

218

11.5

Grade

(g/t)

5.20

5.51

(5.6)

Gold produced

(kg)

1 263

1 201

5.2

Cash operating costs

(R/kg)

161 372

145 421

(10.9)

Operating profit

(R’000)

172 532

182 052

(5.2)

Masimong continued to improve on the production front, with tonnes
milled rising by 11.5% from the previous quarter. Square metres mined
also showed an upward trend, recording more than 18 000m

September 2010 alone. The second phase of the Holokisa programme,
involving cycle mining, with specific tasks performed on specific days,
is the main contributor to this improvement. The achievement of 100%
sweeping percentage for the quarter is another indication that quality
mining is synonymous with cycle mining. As expected and in line with
Masimong’s plan, grade declined by 5.6% to 5.20g/t. Higher tonnages
resulted in a rise in gold production of 5.2%.

Results for the first quarter
ended 30 September 2010

Cash unit costs increased by 10.9%, to R161 372/kg, with the main

contributors being electricity, labour, stores and increased plant costs.

Higher gold production offset some of the higher costs, ensuring that

Masimong is still the lowest R/kg producer in the company. Operating

profit declined, however, by 5.2% to R173 million.

Tshepong

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

338

344

(1.7)

Grade

(g/t)

4.99

–

Gold produced

(kg)

1 688

1 718

(1.7)

Cash operating costs

(R/kg)

175 322

165 375

(6.0)

Operating profit

(R’000)

206 436

205 015

0.7

Tonnes milled decreased slightly by 1.7%, reflecting a good

performance from the mine, despite stoppages experienced as a

result of the fire at the neighbouring Phakisa Mine (which resulted

in 11 shifts lost in the south east area) and shifts lost following the

fatal accident.

Recovered grade stayed constant at 4.99g/t, supported by good

face grades. Tshepong’s grade remains sensitive to stoping width,

which is rigorously controlled by the under-cut mining method used

at this mine. Gold production declined slightly, by 1.7%, in line with

tonnes milled.

Total cash operating costs were well controlled, rising by only 4.2%,

despite increases in electricity tariffs and winter rates (+35%) and

other overhead costs. On a unit cash cost basis, costs rose by 6.0%

to R175 322/kg, which is the second lowest in the company. Cash

operating profit improved by 0.7% to R206 million for the quarter,

supported by a steady gold price.

The development of the Sub-71 decline is progressing well, despite

the area having been directly affected by the Phakisa fire. Some delays

in the commissioning of the belt were encountered, but this work

was completed this quarter and, together with the completion of the

temporary tip on 73 level, should assist in improving the development

rate in the quarters to come.

Hidden Valley (held in Morobe Mining Joint Venture – 50% of

attributable production reflected)

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

427

304

40.5

Grade

(g/t)

1.57

1.53

2.7

Gold produced

(kg)

671

585*

14.7

Cash operating costs

(R/kg)

244 720

244 544

(0.1)

Operating profit

(R’000)

18 946

15 652

21.0

* Including 120kg which was capitalised in the June 2010 quarter

before commercial levels of production was achieved.

Hidden Valley completed its first full quarter at commercial levels of
production. Gold production showed a 14.7% improvement compared
to the previous quarter with 671kg of attributable gold and 4 124kg of
attributable silver produced (a 14.7% quarter-on-quarter improvement
in silver production).

Process plant throughput dropped by 7.0% to 427 000 tonnes in the
September quarter. There were two principal causes of this reversal in
the mill ramp-up trend:

• the major factor was a deliberate decision to improve recoveries

by pegging back the mill feed rate in July to counteract poor
plant recoveries experienced at that stage which was caused by
excessively high carbon loadings; and

• a planned 72-hour shutdown in September.

As previously advised throughput rates are expected to remain
constrained until the proportion of primary ore delivered to the
processing plant increases in the second half of the year.

The focus to improve gold and silver recoveries continued during the
quarter with improvements achieved in both the flotation plant and
CIL circuit. Average gold recoveries achieved for the quarter was 77%,
a 5% improvement on the previous quarter. Average silver recoveries
for the quarter improved by 45% to 38%.

Total material mined at the mine (ore and waste) was 3.4 million
tonnes (1.7 million tonnes attributable), an increase of 12% compared
to the previous quarter. This improvement reflected better availability
of the mining fleet, the addition of five new HD785-7 haul trucks and
improved manning levels in the mine operations workforce.

Total cash operating costs increased to R164 million (US$22.4 million)
reflecting the first full quarter of commercial operation (previous
quarter’s cash operating costs were R114 million (US$14.9 million) for
two months). Unit operating cost after silver credits remained constant
quarter-on-quarter in rand terms (R244 720/kg). In US$ terms there
was an increase of 3.4% to US$1 042/oz. Unit costs are expected to
reduce significantly as the process plant ramps up to design capacity.

Other South African operations

Bambanani

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

129

–

Grade

(g/t)

7.06

9.07

(22.2)

Gold produced

(kg)

911

1 170

(22.1)

Cash operating costs

(R/kg)

245 750

164 200

(49.7)

Operating profit

(R’000)

46 485

143 028

(67.5)

The new, down-dip mining method in all high stoping width, steeply-
dipping panels has resulted in further mining improvements, proving
the method’s success from both a safety and production perspective.
Tonnes milled remained constant, affected by under-performance
in the upper pillars as a result of seismic activity, a pump column
breakdown in the shaft and the seismic event at the end of September.

Grade reduced significantly, by 22.2% to 7.06g/t, from 9.07g/t the

previous quarter. Decreases in face grade were according to plan,

but were exacerbated by seismicity in the pillars. Specific attention

to tramming discipline started to show improvements in belt grades

in September 2010.

Bambanani, as a low-volume operation, is highly dependent on grade

and the lower grade had a significant impact on gold production,

which decreased by 22.1%.

Total cash operating costs rose by 16.5% compared with the previous

quarter, mainly due to increased electricity costs (17.4%) and salary

increases (8.4%). Lower gold production clearly had a negative impact

on unit costs, which rose by 49.7% to R245 750/kg, and on cash profit,

which declined by 67.5% to R46 million. Development on the shaft

pillar project proceeded well, and was on target for the quarter.

Steyn 2

September

June

Indicator

Unit

2010

2010 variance

Gold produced

(kg)

6.9

During the quarter, serious problems were encountered in the outer

pillars, where opening-up operations are in progress. Four pillars

opened up were lost due to a collapse of the entrances or centre raises.

This has a significant impact on the build-up, as production in the outer

pillars will not improve in the near future. Progress was made on the

decline shaft infrastructure, although the manual cleaning process

is slow. The haulage system on 73 level to Bambanani is also being

rehabilitated, and will assist Steyn 2 in maintaining its shaft bottom.

Various scenarios of mining the shaft pillar are being looked at and will

be further refined during the next quarter.

Evander

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

140

146

(4.1)

Grade

(g/t)

3.94

3.95

(0.3)

Gold produced

(kg)

552

577

(4.3)

Cash operating costs

(R/kg)

290 188

283 939

(2.2)

Operating (loss)/profit

(R’000)

(2 192)

4 429

(149.5)

Evander produced according to plan during the quarter as a result

of improved environmental conditions in the decline working areas.

Evander’s plan includes lower production levels for the first six months

of the 2011 financial year, because of a ventilation constraint on the

decline shaft. It is expected that production will increase during the

second half of the 2011 financial year.

The chilled water project, that pumps chilled water from 7 shaft

refrigeration plant to 8 shaft, was completed during this quarter, and

significantly reduced the heat load in the decline section.

Tonnes remained flat and recovered grade remained virtually constant

at 3.94g/t.

Total cash operating costs decreased by 2.2% quarter-on-quarter

mainly as a result of reduced labour cost after the restructuring,

despite significant electricity cost increases. R/kg costs increased by

2.2% as a result of the lower tonnes and gold produced.

Joel

The shaft bottom rehabilitation process was completed in 50 days

(rather than the planned 59 days) and a permanent spillage

arrangement (spillage skip) will be installed during the December 2010

period. During the quarter, 43 production days were lost as a result

of the stoppage, resulting in lower recovered grade at 3.70g/t. Cash

costs decreased by 9.3%, mainly due to lower volumes mined due to

the stoppage. Joel’s results indicate the serious impact of the shaft

bottom stoppage.

Target 1

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

205

199

3.0

Grade

(g/t)

4.08

4.37

(6.6)

Gold produced

(kg)

836

869

(3.8)

Cash operating costs

(R/kg)

215 050

221 938

3.1

Operating profit

(R’000)

54 702

65 629

(16.6)

Tonnes milled increased by 3.0% quarter-on-quarter. This was

largely achieved through increased narrow reef stope tonnages and

improvements brought about through the ‘clean mining’ initiative, as

well as an increase in tonnages from massive stopes and lower grade

development ore.

Grade decreased by 6.6% on the previous quarter as a massive stope

area could not be effectively mined following a fall of ground. This is

expected to improve in the current quarter as mining progresses in

the sub-level pillar.

Total cash operating costs were 6.8% down on the previous quarter,

due to lower stores costs and overheads.

Target 3

September

June

Indicator

Unit

2010

2010 variance

Gold produced

(kg)

111

20.7

The shaft continued with its build-up, but delays were experienced

owing to poor sub-shaft conditions. Development progress was much

improved, rising by 123.5% to 722m, from 323m the previous quarter.

Production for the quarter came mainly from the main shaft, at 35 000t.

Grade was 3.28g/t, resulting in the production of 111kg of gold.

Progress has been made on the sub-shaft infrastructure, which is the

Basal Reef mining area. During September 2010 a decision was taken

to abandon the shaft below 71 level as a result of the collapse of the

ore passes, and create a new belt level on 71 level. The new belt was

designed, manufactured and installed in four weeks. The belt level was

commissioned and started up on 5 October 2010, and will assist in the

build-up in the sub-shaft on the Basal Reef.

Results for the first quarter
ended 30 September 2010

Virginia

September

June

Indicator

Units

2010

2010 variance

u/g tonnes milled

(‘000)

244

241

1.2

Grade

(g/t)

3.11

3.29

(5.5)

Gold produced

(kg)

760

793

(4.2)

Cash operating costs

(R/kg)

300 593

272 570

(10.3)

Operating profit

(R’000)

(2 136)

31 647

(106.7)

The Virginia operations recorded the same level of production as the
previous quarter, despite the closure of Harmony 2 and Merriespruit 3.
The additional tonnes came from Merriespruit 1, albeit at a lower
grade. Consequently, grade declined by 5.3% to 3.11g/t.

Total cash operating costs rose by 5.7% quarter-on-quarter mainly
from increased electricity and plant costs. Savings were made on
labour and stores compared with the previous quarter. Nonetheless,
higher costs and lower gold production had a negative impact on
operating profit, prompting the decision to close Merriespruit 1.

South African surface operations

Kalgold

September

June

Indicator

Units

2010

2010 variance

Tonnes

(’000)

433

431

0.5

Grade

(g/t)

0.85

0.95

(10.5)

Gold produced

(kg)

368

410

(10.2)

Cash operating costs

(R/kg)

238 840

185 629

(28.7)

Operating profit

(R’000)

26 036

42 351

(38.5)

During the quarter topsoil stripping commenced in preparation for a
new waste dump. The high strip ratio is as a result of 181 000 more
waste tonnes mined for slope stability purposes and to cut back the
perimeter of the pit according to the new design.

Recovered grade was 10.7% lower than the previous quarter due to
lower feed grade. Higher grade ore blocks were delayed due to the
planned opening up of the eastern high wall causing a drop in the feed
grade. The average mining grade was 1.10g/t from the Watertank pit.

Total cash operating cost increased by 15.5% to R88 million and R/kg
costs increased by 28.7%. Costs were mainly driven by a R9 million
movement in the run-of-mine stock adjustment as a result of a reduction
in the volume and grade on the stockpiles, as well as an increase in
the contractor cost (as more waste tonnes were mined than in the
previous quarter). It is expected that the mining cost will continue to
be high in the December 2010 quarter, because of additional waste
stripping, before this decreases again in the March 2011 quarter.

Cash operating profit decreased by 38.5% or R16.3 million, mainly due
to cost increases.

Phoenix (tailings)

September

June

Indicator

Units

2010

2010 variance

Tonnes

(’000)

1 546

1 337

15.6

Grade

(g/t)

0.11

0.12

(8.3)

Gold produced

(kg)

165

154

7.1

Cash operating costs

(R/kg)

231 606

231 195

(0.2)

Operating profit

(R’000)

9 133

9 266

(1.4)

Phoenix tailings saw an improved quarter with 15.6% improvement in
tonnes milled. The improvement follows modifications at the Brand A
monitoring site and the plant thickener systems. Gold produced
improved by 7.1% due to higher volumes. The Phoenix team is focusing
on improving recoveries to gain the benefit of higher tonnes.

Cash operating costs increased by 0.2% to R231 306/kg due to higher
consumption of reagents and higher electricity and mechanical
breakdown costs. Higher costs were offset by a stronger R/kg gold
price, however, operating profit decreased by 1.4% to R9.1 million
compared to last quarter.

Surface dumps

September

June

Indicator

Units

2010

2010 variance

Tonnes

(‘000)

858

711

20.7

Grade

(g/t)

0.62

0.68

(8.8)

Gold produced

(kg)

536

484

10.7

Gold sold

(kg)

536

484

10.7

Cash operating costs (R/kg)

196 034

158 539

(23.7)

Operating proﬁ t

(R’000)

43 533

55 896

(22.1)

The surface dumps tonnes milled increased by 20.7% compared to the
June 2010 quarter to 858 000 tonnes. Gold production kilograms also
increased by 10.7%, despite the grade that decreased with 8.8% to
0.62g/t for the September 2010 quarter. Cash operating unit cost is at
R196 034/kg, 23.7% higher than the previous quarter.

Development

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

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

Bambanani

There was a quarter-on-quarter improvement in the development
grades as a result of development in the shaft pillar and high grades
sampled in the 114 line between 98 and 103 levels. This resulted in the
quarterly development grade being in line with the ore reserve grade.

Doornkop

The South Reef development grades achieved during the quarter is in
line with expectations and in line with the ore reserve block grades.
Lower grades are expected in the coming quarter as new on reef
development commences in a more distal portion of the orebody on
202 level. No on reef development is planned for the Kimberly reef.

Evander

There was an improvement in grade compared to the previous quarter
because development is now focused on the Kinross payshoot, where
the ventilation constraint that the shaft experienced since January 2010
has been resolved.

Joel

Development metres were poor during the quarter as a result of the
shaft stoppage. The metres that was sampled though, indicated high
grades reinforcing the grade expectations for 129 level.

Kusasalethu

The new mine returned very good grades once again from 105 and
109 level which is in line with expectation.

Masimong

The Basal Reef development value improved and is in line with the
expected grades of the areas being developed. There was a drop in
the B reef grades due to some of the wide raises going into out of
channel areas.

Phakisa

As previously mentioned the majority of development at Phakisa is
still taking place in the lower grade central block with its very erratic
nature in terms of grade. There was, however, a quarter-on-quarter
improvement in development grades where some of the development
towards the south in the basal reef Steyn facies achieved better grades
than expected. The major drive is still on the development of the area
to the north to get into the higher grade Black Chert facies and move
closer to the average reserve grade.

Target (narrow reef mining)

At Target 1 shaft good values were sampled in two raises that are
being developed for narrow reef stoping. It is important to note that
this is not representative of Target 1 shaft as a whole as it excludes the
massive mining as well as the raises developed for rock engineering
requirements.

The development metres at Target 3 shaft continues to increase
quarter-on-quarter where some promising grades are being sampled
in the A-reef raises. Once the ventilation constraints have been
removed, development will also start on the Basal reef and B reef.

Tshepong

The Basal Reef development grade was lower quarter-on-quarter, but
still in line with the ore reserve grade. Some of the raise lines sampled
will be re-investigated to ensure that the bottom contact of the Basal
reef has been exposed. There was an improvement in the B reef
development grade quarter-on-quarter.

Virginia

At Unisel there was an improvement in the development grade, mainly
because of better grades in the Middle reef in the decline section. The
Leader and Basal reef grades were also better quarter-on-quarter.

Ore Reserve Block Grades v Development Grades

Results for the first quarter
ended 30 September 2010

Exploration

South Africa

Joel North

For the purpose of extending the life of Joel, a drilling programme was
undertaken that resulted in favourable results. We have commenced
with a pre-feasibility study in these areas, which is scheduled to be
completed in October 2010.

Poplar

The Poplar project is in the Evander region immediately north of
Evander South. Exploration drilling was carried out by previous owners
over a fifty-year period resulting in numerous feasibility reports. The
resource occurs between 500m and 1 300m below surface and the
relatively shallow depth allows the project to potentially produce its
first gold within five years.

The drilling programme consists of 25 holes (19 500m) and it is
expected that the programme will take 12 months to complete. The
drilling is ahead of schedule with a total of 8 468 metres drilled in the
September 2010 quarter.

International (Papua New Guinea)*

Morobe Mining Joint Venture (MMJV)

Wafi-Golpu

The Wafi-Golpu Project in Papua New Guinea (PNG) has shown further
significant exploration drill hole intercepts at the Golpu porphyry
copper-gold deposit, which is part of the MMJV. During the quarter
Harmony released an updated Statement of Reserves and Resources
which included an appreciable increase in the Wafi-Golpu Resource to
16Moz of gold and 4.8Mt of copper. Additional exploration drilling at
Golpu undertaken during the quarter has further extended the deposit
with significant intercepts as follows:

• WR347: 799m@1.43g/t Au, 1.90% Cu from 883m including

616m @ 1.79g/t Au, 2.34% Cu from 910m

• WR348: 561m@0.51g/t Au, 0.99% Cu from 179m including

209m @ 0.89g/t Au, 1.88% Cu from 359m

• WR349: 327m@0.39g/t Au, 1.23% Cu from 194m including

117m @ 0.63g/t Au, 2.09% Cu from 262m

WR347 was drilled as a 100m step-out hole on the northern margin
of the existing resource. The intercept correlates with a zone of
bornite (Cu

FeS

) mineralisation, whereas most other mineralisation

is chalcopyrite (CuFeS

) and represents the highest grade results ever

returned from drilling at the project. This intersection significantly
extends the higher grade core of the Golpu Resource to the north with
the ore body remaining open in this direction and at depth.

WR349 indicates that the high grade porphyry mineralisation extends
to the north and closer to the surface than previously modelled.

As a result of this drilling, the Wafi-Golpu exploration target has been
upgraded to 30Moz of gold and 8Mt of copper based on a tonnage
range between 900 and 1 400 million tonnes. This targets growth of
epithermal deposits to between 100 and 200 million tonnes at a grade

range between 1.5 and 2.0g/t plus porphyry deposits to a range of
800 and 1 200 million tonnes at grades between 0.7 and 1.1% copper
and 0.5 to 0.9g/t gold (approved by competent persons).

The Wafi-Golpu Concept Study (Concept Study) was completed during
August 2010. The Concept Study was building on previous studies
and was updated with new information and enhanced development
approaches during the study. The Concept Study demonstrates that
a very robust business case exists for the project and therefore both
Harmony and Newcrest have approved that the project progresses to
the Pre-Feasibility Study phase.

The main value drivers, for which several options will be considered
during the Pre-Feasibility Study, are:

• further increasing the tonnage and grade of the resource;

• optimise the production rates from the panel caves to suit the

footprint and draw heights;

• optimise the gold recovery of the refractory Wafi ore bodies; and

• positioning of infrastructure, waste dumps and tailings storage

facilities in such areas to minimise the impact on the environment
and to optimise the costs.

The joint venture study team is targeting to complete the
Pre-Feasibility Study towards the end of calendar year 2011.
The Pre-Feasibility Study cost, which includes the construction of an
access road, the establishment of a camp and associated infrastructure
and the commencement of underground exploration access, is
estimated to be US$150 million. Approval for the construction of the
access road and establishment of a camp and associated infrastructure
has been obtained from the local landowners and construction of the
access road will commence early during 2011.

Hidden Valley satellite deposit exploration

Work to establish satellite resources and capitalise on the infrastructure
around Hidden Valley has included:

• Diamond drilling at the Tais Creek and Waterfall prospects (6 holes/

2 395m);

• Mapping and rock chip sampling at the Kulang Prospect located

approximately 5km north of the Kerimenge deposit.

Kulang Prospect – EL497 JV

The Kulang prospect is located approximately 5km north of the historic
Kerimenge deposit and approximately 7km east of the Hamata plant
site. Reconnaissance mapping and rock chip sampling has defined a
zone in excess 1.5km long and up to 50m wide of epithermal gold
mineralisation. The mineralisation is evident as a silicified, and
manganese carbonate veined structural zone, accompanied by base
metal sulphides.

Rock chip samples have returned assays up to 8.4g/t Au with some
samples containing visible gold. Several areas along the structure are
now being exploited by local artisanal miners.

Pinkish rhodochrosite (manganocarbonate) and base metal veins form
Kulang Prospect with assaying 5.29g/t Au and 181g/t Ag.

Programme planning is currently underway with the aim to fast track
drill testing of the mineralised structure.

PNG Exploration (Harmony 100%)

Mount Hagen Project (EL1611 and EL1596)

Exploration activities focused on drilling at the Kurunga prospect
with three holes completed for 949m. Reconnaissance mapping and
sampling at Bakil Prospect continued. A regional helicopter borne
magnetic survey for the Mount Hagen Project tenements commenced
in September 2010.

Kurunga Prospect

First pass drilling was completed at the Kurunga prospect for a total
of 7 holes/2 450m. Only part assay results returned from drill hole
KUDD005 have been received with best results returned to date:

KUDD005:

3m @ 4.72g/t Au from 68m;

9m @ 0.53g/t Au from 83m.

The 3m intercept in KUDD005 correlates with a fault zone with sericite
pyrite alteration and includes 1m grading 12.3g/t Au associated with
massive pyrite mineralisation.

The final hole of the programme KUDD007 was completed to a depth of
335m and looked encouraging. The hole intersected +200 of moderate
to intense sheeted to stockwork quartz-chlorite-carbonate-sulphide
veining with associated magnetite-destructive phyllic alteration.
Assays for this hole remain outstanding.

Bakil Prospect

• 561 soil samples were collected over approximately 22 line

kilometers of ridge and spur soil sampling in the western zone
(west of the Mogilip River). The sampling covered an area of
approximately 4 x 4 km and includes the area of strong argillic
alteration identified in the Bakil landslips. Following completion
of the western zone soils, a fly camp will be constructed on the
eastern side of the Mogilip river to service the ridge and spur
sampling there.

• 109 rock chip samples were collected, including channel samples.

Results for some of the grab samples have been received and
included the high grade copper results of up to 9.3% Cu as
discussed in the significant results section.

• Preliminary mapping work at Bakil indicates a large (>1km diameter)

clay-sulphide (argillic) alteration and leached zone occurring
centred in the Bakil landslip area where bedrock is well-exposed.
The alteration appears to show close association with E-W and
NE-SW trending faults. Significantly, new occurrences of copper
mineralisation in outcrop are being regularly discovered as the
exploration team covers more ground.

Amanab Project (EL1708)

Field work at the Amanab project continued with first pass ridge and
spur soil sampling and reconnaissance rock chip sampling at Yup river
East and West prospects. A total of 360 soil samples and 17 rock chip
samples were collected and submitted for assay during the quarter
but to date only partial results have been received.

* The technical information was compiled by Greg Job, Harmony’s New Business Executive for
   South-East Asia, who has the overall responsibility and accountability for the Golpu Project, in
   terms of the South African Code for the Reporting of Exploration Results, Mineral Resources
   and Ore Reserves (SAMREC) 2007. Mr Job has 21 years` experience in mine and resource
   geology and is a member of the Australian Institute of Mining and Metallurgy. He is a full time
   employee of Harmony and qualifies as Competent Person as defined in the SAMREC code and
   the Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
   (JORC). Mr Job has consented to the inclusion of the exploration details based on the
   information in the form and context in which it appears.

Results for the first quarter
ended 30 September 2010

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

Underground production – South Africa

Surface production – South Africa

Total SA

South

Interna

Kusasa-

Under-

Total

Africa

Hidden

tional

Harmony

Bambanani

Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn 2

Target 1

Target 3 Tshepong

Virginia

ground

Kalgold

Phoenix

Dumps

Surface

Other

Total

Valley

Other

Total

Ore milled

– t’000

Sep-10

129

140

269

243

–

205

–

338

244

1 834

433

1 546

858

2 837

–

4 671

427

–

5 098

Jun-10

129

139

146

314

218

–

199

–

344

241

1 916

431

1 337

711

2 479

–

4 395

304

–

4 699

Gold produced

– kg

Sep-10

911

541

552

148

1 513

1 263

377

836

111

1 688

760

8 731

368

165

536

1 069

–

9 800

671

–

10 471

Jun-10

1 170

508

577

378

1 400

1 201

416

869

1 718

793

9 151

410

154

484

1 048

–

10 199

585

–

10 784

Gold produced

– oz

Sep-10

29 289

17 394

17 747

4 758

48 644

40 606

12 121

997

26 878

3 569

54 270

24 435

280 708

11 831

5 305

17 233

34 369

–

315 077

21 573

–

336 650

Jun-10

37 616

16 333

18 551

12 153

45 011

38 613

13 375

932

27 939

2 958

55 235

25 496

294 212

13 182

4 951

15 561

33 694

–

327 906

18 808

–

346 714

Yield

– g/tonne Sep-10

7.06

3.86

3.94

3.70

5.62

5.20

4.38

–

4.08

–

4.99

3.11

4.68

0.85

0.11

0.62

0.38

–

2.07

1.57

–

2.03

Jun-10

9.07

3.65

3.95

4.15

4.46

5.51

4.38

–

4.37

–

4.99

3.29

4.71

0.95

0.12

0.68

0.42

–

2.29

1.53

–

2.24

Cash operating

– R/kg

Sep-10

245 750

249 294

290 188

588 101

225 164

161 372

296 520

–

215 050

–

175 322

300 593

228 946

238 840

231 606

196 034

216 260

–

227 542

244 720

–

228 658

costs

Jun-10

164 200

222 276

283 939

253 926

209 112

145 521

231 570

–

221 938

–

165 375

272 570

201 753

185 629

231 195

158 539

179 814

–

199 472

244 544

–

201 460

Cash operating

– $/oz

Sep-10

1 046

1 061

1 236

2 504

959

687

1 263

–

916

–

746

1 280

975

1 017

986

835

921

–

969

1 042

–

974

costs

Jun-10

677

916

1 171

1 047

862

600

955

–

915

–

682

1 124

832

765

953

654

741

–

822

1 008

–

831

Cash operating

– R/tonne Sep-10

1 735

963

1 144

2 176

1 266

839

1 300

–

877

–

876

936

1 072

203

122

–

470

385

–

463

costs

Jun-10

1 489

812

1 122

1 055

932

802

1 014

–

969

–

826

897

951

177

108

–

457

374

–

452

Gold sold

– kg

Sep-10

939

585

608

152

1 661

1 302

388

847

111

1 739

776

9 139

402

165

536

1 103

–

10 242

627

–

10 869

Jun-10

1 185

486

588

339

1 241

1 216

421

835

1 740

949

9 121

405

154

484

1 043

–

10 164

575

–

10 739

Gold sold

– oz

Sep-10

30 190

18 808

19 548

4 887

53 402

41 860

12 474

997

27 232

3 569

55 910

24 949

293 826

12 925

5 305

17 233

35 463

–

329 289

20 158

–

349 447

Jun-10

38 099

15 625

18 905

10 899

39 899

39 095

13 535

932

26 846

2 958

55 942

30 511

293 246

13 021

4 951

15 561

33 533

–

326 779

18 487

–

345 266

Revenue

(R’000)

Sep-10

269 901

168 047

174 211

43 915

475 433

374 366

111 701

–

244 091

–

500 096

222 842

2 584 603

115 562

47 348

153 582

316 492

–

2 901 095

181 854

–

3 082 949

Jun-10

351 782

143 719

173 936

98 498

365 469

360 950

125 134

–

250 664

–

515 208

277 489

2 662 849

117 637

44 870

140 711

303 218

–

2 966 067

78 996

–

3 045 063

Cash operating

(R’000)

Sep-10

223 878

134 868

160 184

87 039

340 673

203 813

111 788

–

179 782

–

295 944

228 451

1 966 420

87 893

38 215

105 074

231 182

–

2 197 602

164 207

–

2 361 809

costs

Jun-10

192 114

112 916

163 833

95 984

292 757

174 771

96 333

–

192 864

–

284 114

216 148

1 821 834

76 108

35 604

76 733

188 445

–

2 010 279

113 713

–

2 123 992

Inventory

(R’000)

Sep-10

(462)

12 677

16 219

(11 971)

46 002

(1 979)

(407)

–

9 607

–

(2 284)

(3 473)

63 929

1 633

–

4 975

6 608

–

70 537

(1 299)

–

69 238

movement

Jun-10

16 640

(1 615)

5 674

(5 817)

(50 066)

4 127

5 339

–

(7 829)

–

26 079

29 694

22 226

(822)

–

8 082

7 260

–

29 486

(50 369)

–

(20 883)

Operating costs

(R’000)

Sep-10

223 416

147 545

176 403

75 068

386 675

201 834

111 381

–

189 389

–

293 660

224 978

2 030 349

89 526

38 215

110 049

237 790

–

2 268 139

162 908

–

2 431 047

Jun-10

208 754

111 301

169 507

90 167

242 691

178 898

101 672

–

185 035

–

310 193

245 842

1 844 060

75 286

35 604

84 815

195 705

–

2 039 765

63 344

–

2 103 109

Operating

(R’000)

Sep-10

46 485

20 502

(2 192)

(31 153)

88 758

172 532

320

–

54 702

–

206 436

(2 136)

554 254

26 036

9 133

43 533

78 702

–

632 956

18 946

–

651 902

proﬁ t

Jun-10

143 028

32 418

4 429

8 331

122 778

182 052

23 462

–

65 629

–

205 015

31 647

818 789

42 351

9 266

55 896

107 513

–

926 302

15 652

–

941 954

Operating proﬁ t

($’000)

Sep-10

6 363

2 807

(300)

(4 265)

12 150

23 618

–

7 488

–

28 259

(292)

75 872

3 564

1 249

5 960

10 773

–

86 645

2 594

–

89 239

Jun-10

18 957

4 297

587

1 104

16 273

24 130

3 109

–

8 698

–

27 174

4 195

108 524

5 613

1 228

7 408

14 249

–

122 773

2 074

–

124 847

Capital

(R’000)

Sep-10

38 917

69 496

59 207

18 337

104 357

40 463

91 716

44 290

62 112

56 067

60 650

30 173

675 785

4 645

–

4 645

7 626

688 056

59 218

1 990

749 264

expenditure

Jun-10

33 366

104 138

38 078

18 100

85 991

44 759

117 399

59 206

69 223

42 839

69 935

37 775

720 809

4 383

599

–

4 982

23 958

749 749

73 149

1 363

824 261

Capital

($’000)

Sep-10

5 327

9 513

8 105

2 510

14 285

5 539

12 555

6 063

8 502

7 675

8 302

4 130

92 506

636

–

636

1 044

94 186

8 106

272

102 564

expenditure

Jun-10

4 422

13 803

5 047

2 399

11 397

5 932

15 560

7 847

9 175

5 678

9 269

5 007

95 536

581

–

660

3 175

99 371

9 695

181

109 247

Production statistics for Steyn 2 and Target 3 have been included. These mines are in a build-up phase and revenue and costs are currently capitalised, until commercial production levels are reached. Included in the gold produced for the June quarter is 120kg which was capitalised for Hidden Valley.

Results for the first quarter
ended 30 September 2010

CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)

Quarter ended

Year ended

30 September

30 June

30 September¹

30 June

2010

2009

2010

(Unaudited)

(Audited)

Note

R million

Continuing operations

Revenue 3 083 3 045 2 747 11 284

Cost of sales 2 (2 995) (2 649) (2 600) (10 484)

Production costs (2 408) (2 075) (2 195) (8 325)

Royalty expense (23) (28) – (33)

Amortisation and depreciation (426) (383) (350) (1 375)

Impairment of assets – (30) – (331)

Employment termination and restructuring costs (78) (82) – (205)

Other items (60) (51) (55) (215)

Gross proﬁt 88 396 147 800

Corporate, administration and other expenditure (94) (124) (79) (382)

Social investment expenditure (16) (28) (9) (81)

Exploration expenditure (99) (60) (48) (219)

Profit on sale of property, plant and equipment 16 101 – 104

Other (expenses)/income – net (54) 40 (74) (58)

Operating (loss)/proﬁt (159) 325 (63) 164

(Loss)/profit from associates (8) (7) 31 56

Loss on sale of investment in subsidiary – – – (24)

Net gain on financial instruments 3 311 11 – 38

Investment income 14 25 71 187

Finance cost (59) (94) (54) (246)

Proﬁt/(loss) before taxation 99 260 (15) 175

Taxation 6 (230) (18) (335)

Normal taxation (9) (20) (28) (84)

Deferred taxation 15 (210) 10 (251)

Net proﬁt/(loss) from continuing operations 105 30 (33) (160)

Discontinued operations
(Loss)/profit from discontinued operations 4 (3) (17) 4 (32)

Net proﬁt/(loss) 102 13 (29) (192)

Attributable to:

Owners of the parent

102

(29)

(192)

Non-controlling interest

–

Earnings/(loss) per ordinary share (cents)

– Earnings/(loss) from continuing operations

(8)

(38)

– (Loss)/earnings from discontinued operations

(1)

(4)

(8)

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

(7)

(46)

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

– Earnings/(loss) from continuing operations

(8)

(38)

– (Loss)/earnings from discontinued operations

(1)

(4)

(8)

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

(7)

(46)

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

¹ The comparative ﬁgures are re-presented due to Mount Magnet being reclassiﬁ ed as a discontinued operation. See note 4 in this regard.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)

Quarter ended

Year ended

30 September

30 June

30 September

30 June

2010

2009

2010

(Unaudited)

(Audited)

R million

Net proﬁ t/(loss) for the period

102

(29)

(192)

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

106

(166)

(131)

Foreign exchange translation

106

(161)

(127)

Fair value movement of available-for-sale investments

–

(5)

(4)

Total comprehensive income/(loss) for the period

208

(153)

(14)

(323)

Attributable to:

Owners of the parent

208

(153)

(14)

(323)

Non-controlling interest

–

Results for the first quarter
ended 30 September 2010

CONDENSED CONSOLIDATED BALANCE SHEET (Rand)

30 September

30 June

30 September

2010

2009

(Unaudited)

(Audited)

(Unaudited)

Note

R million

ASSETS

Non-current assets

Property, plant and equipment

29 873

29 556

28 457

Intangible assets

2 199

2 210

2 218

Restricted cash

116

146

165

Restricted investments

1 787

1 742

1 668

Investments in financial assets

296

Investments in associates

377

385

360

Inventories

237

214

–

Trade and other receivables

34 952

34 340

32 979

Current assets

902

987

1 147

Trade and other receivables

649

932

838

Income and mining taxes

Cash and cash equivalents

772

770

1 094

2 396 2 763 3 124

Assets of disposal groups classified as held for sale 4 – 245

2 396 3 008 3 124

Total assets 37 348 37 348 36 103

EQUITY AND LIABILITIES

Share capital and reserves

Share capital 28 269 28 261 28 093

Other reserves 395 258 388

Retained earnings 578 690 853

29 242 29 209 29 334

Non-current liabilities

Deferred tax 3 572 3 534 3 265

Provision for environmental rehabilitation 1 723 1 692 1 564

Retirement benefit obligation and other provisions 169 169 166

Borrowings 6 970 981 108

6 434 6 376 5 103

Current liabilities

Borrowings 6 207 209 260

Income and mining taxes 13 9 21

Trade and other payables 1 452 1 410 1 385

1 672 1 628 1 666

Liabilities of disposal groups classified as held for sale 4 – 135 –

1 672 1 763 1 666

Total equity and liabilities 37 348 37 348 36 103

Number of ordinary shares in issue 428 850 584 428 654 779 426 024 653

Net asset value per share (cents) 6 819 6 814 6 886

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

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

for the period ended 30 September 2010

Other

Retained

capital

reserves

earnings

Total

R million

Balance – 30 June 2010

28 261

258

690

29 209

Issue of shares

–

Share-based payments

–

Total comprehensive income for the period

–

106

102

208

Dividends paid

–

(214)

Balance as at 30 September 2010

28 269

395

578

29 242

Balance – 30 June 2009

28 091

339

1 095

29 525

Issue of shares

–

Share-based payments

–

Total comprehensive loss for the period

–

(29)

(14)

Dividends paid

–

(213)

Balance as at 30 September 2009

28 093

388

853

29 334

Results for the first quarter
ended 30 September 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)

Quarter ended

Year ended

30 September

30 June

30 September

30 June

2010

2009

2010

(Unaudited)

(Audited)

R million

Cash ﬂow from operating activities
Cash generated by operations

703

884

225

1 611

Interest and dividends received

187

Interest paid

(30)

(38)

(9)

(90)

Income and mining taxes paid

(4)

(55)

(25)

(125)

Cash generated by operating activities

683

816

259

1 583

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

–

(3)

Proceeds on disposal of investment in subsidiary

229

–

Proceeds on disposal of available-for-sale financial assets

–

Other investing activities

(11)

(12)

Net additions to property, plant and equipment

(748)

(708)

(907)

(3 493)

Cash utilised by investing activities

(479)

(711)

(887)

(3 416)

Cash ﬂow from ﬁnancing activities
Borrowings raised

–

300

–

1 236

Borrowings repaid

(7)

(106)

(7)

(391)

Ordinary shares issued – net of expenses

Dividends paid

(214)

–

(213)

Cash (utilised)/generated by financing activities

(213)

201

(218)

650

Foreign currency translation adjustments

(17)

(10)

Net increase/(decrease) in cash and cash equivalents

289

(856)

(1 180)

Cash and cash equivalents – beginning of period

770

481

1 950

Cash and cash equivalents – end of period

772

770

1 094

770

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2010

Accounting policies

Basis of accounting

The condensed consolidated financial statements for the period ended 30 September 2010 have been prepared using accounting policies that
comply with International Financial Reporting Standards (IFRS), which are consistent with the accounting policies used in the audited annual
financial statements for the year ended 30 June 2010. These condensed consolidated financial statements are prepared in accordance with
IAS 34, Interim Financial Reporting, and in the manner required by the Companies Act of South Africa. They should be read in conjunction with
the annual financial statements for the year ended 30 June 2010.

Cost of sales

Quarter ended

Year ended

30 September

30 June

30 September¹

30 June

2010

2009

2010

(Unaudited)

(Audited)

R million

Production costs

2 408

2 075

2 195

8 325

Royalty expense

–

Amortisation and depreciation

426

383

350

1 375

Impairment of assets²

–

331

Rehabilitation expenditure

Care and maintenance cost of restructured shafts

Employment termination and restructuring costs

–

205

Share-based payments

148

Provision for post-retirement beneﬁ ts

–

(19)

–

(19)

Total cost of sales

2 995

2 649

2 600

10 484

(1)

The comparative figures are re-presented due to Mount Magnet being reclassified as part of discontinued operations. See note 4 in this regard.

(2)

The impairment for the year ended 30 June 2010 relates mainly to Virginia and Evander, which was recorded as a result of shaft closures.

Net gain on financial instruments

On 3 September 2010, Harmony Gold Mining Company Limited (Harmony) entered into two transactions with Witwatersrand Consolidated
Gold Resources Limited (Wits Gold), in which Wits Gold will obtain a prospecting right over Harmony’s Merriespruit South area and the option
held by ARMGold/Harmony Freegold Joint Venture Company (Proprietary) Limited (Freegold), a wholly owned subsidiary of Harmony. The
option was to acquire a beneficial interest of up to 40% in any future mines established by Wits Gold on certain properties in the Southern Free
State (Freegold option), which will be cancelled. Harmony will abandon a portion of its mining right in respect of the Merriespruit South area
to enable Wits Gold to include this area in its prospecting right, which is located immediately south of the Merriespruit South area.

The total consideration is R336 million (R61 million for the prospecting area and R275 million for the cancellation of the option agreement),
which will be settled in cash or in a combination of cash and shares in Wits Gold, when all remaining conditions precedent to the transaction
have been fulfilled. The group classifies the Freegold option as a financial asset at fair value through profit and loss and has recognised a fair
value movement gain in the consolidated income statement of R273 million following the conclusion of the agreements on 3 September 2010.

Disposal groups classified as held for sale and discontinued operations

The conditions precedent for the sale of Mount Magnet were fulfilled and the transaction became effective on 20 July 2010. A total purchase
consideration of R238 million was received from Ramelius Resources Limited in exchange for 100% of the issued shares of Mount Magnet.
The group recognised a total profit of R104 million, net of tax, before the realisation of accumulated foreign exchange losses of R107 million
from other comprehensive income to the consolidated income statement on the effective date. The income statement and earnings per share
amounts for all comparative periods have been re-presented to disclose the operation as a discontinued operation.

Results for the first quarter
ended 30 September 2010

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
30 September 2010: 428.7 million (30 June 2010: 427.6 million, 30 September 2009: 425.9 million), and the year ended 30 June 2010: 426.4 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 30 September 2010: 429.9 million (30 June 2010: 429.1 million, 30 September 2009: 427.2 million), and the year ended
30 June 2010: 427.8 million.

Quarter ended

Year ended

30 September

30 June

30 September¹

30 June

2010

2009

2010

(Unaudited)

(Audited)

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

Basic earnings/(loss)

(7)

(46)

Fully diluted earnings/(loss)

(7)

(46)

Headline earnings/ (loss)

(10)

(12)

(7)

– from continuing operations

(6)

(13)

– from discontinued operations

–

(4)

(8)

Diluted headline earnings/(loss)

(10)

(12)

(7)

– from continuing operations

(6)

(13)

– from discontinued operations

–

(4)

(8)

R million

Reconciliation of headline earnings/(loss):

Continuing operations

Net proﬁt/(loss)

105

(33)

(160)

Adjusted for:

Proﬁt on sale of property, plant and equipment

(16)

(101)

–

(104)

Taxation effect of proﬁ t on sale of property, plant and equipment

–

Net gain on ﬁ nancial instruments

–

(5)

(2)

(7)

Taxation effect of gain on ﬁnancial instruments

–

Foreign exchange loss/(gain) reclassiﬁ ed from other comprehensive income

–

(22)

Taxation effect of foreign exchange loss/(gain) reclassiﬁed
from other comprehensive income

–

Loss on sale of investment in subsidiary

–

Taxation effect of loss on sale of investment in subsidiary

–

(7)

Impairment of other investments

–

Taxation effect of impairment of other investments

–

Impairment of assets

–

331

Taxation effect of impairment of assets

–

(4)

–

(75)

Impairment of investment in associate

–

Taxation effect of impairment of investment in associate

–

Headline earnings/(loss)

141

(27)

(54)

Discontinued operations

Net (loss)/proﬁt

(3)

(17)

(32)

Adjusted for:

Proﬁ t on sale of investment in subsidiary

(138)

–

(1)

Taxation effect of proﬁt on sale of investment in subsidiary

–

Foreign exchange loss reclassiﬁ ed from other comprehensive income

107

–

Taxation effect of foreign exchange loss reclassiﬁed from
other comprehensive income

–

Headline (loss)/earnings

–

(17)

(33)

Total headline earnings/(loss)

141

(44)

(51)

(29)

(¹)

The comparative figures are re-presented due to Mount Magnet being reclassified as discontinued operation. See note 4 in this regard.

Borrowings

30 September

30 June

30 September

2010

2009

(Unaudited)

(Audited)

(Unaudited)

R million

Total long-term borrowings

970

981

108

Total current portion of borrowings

207

209

260

Total borrowings

(

) (

)

1 177

1 190

368

(

)

On 11 December 2009, the company entered into a loan facility with Nedbank Limited, comprising of a Term Facility of R900 million and
a Revolving Credit Facility of R600 million. Interest accrues on a day-to-day basis over the term of the loan at a variable interest rate,
which is fixed for a three-month period, equal to JIBAR plus 3.5%. Interest is repayable quarterly.

The Term Facility is repayable bi-annually in equal instalments of R90 million over 5 years. The first instalment was paid on 30 June 2010.
The Revolving Credit Facility is repayable after 3 years.

(

)

Included in the borrowings is R74 million (June 2010: R91 million; September 2009: R104 million) owed to Westpac Bank Limited in terms
of a finance lease agreement. The future minimum lease payments are as follows:

30 September

30 June

30 September

2010

2009

(Unaudited)

(Audited)

(Unaudited)

R million

Due within one year

Due between one and ﬁ ve years

107

Future ﬁ nance charges

(2)

(3)

Total future minimum lease payments

104

Commitments and contingencies

30 September

30 June

30 September

2010

2009

(Unaudited)

(Audited)

(Unaudited)

R million

Capital expenditure commitments:
Contracts for capital expenditure

369

335

528

Authorised by the directors but not contracted for

2 070

1 006

1 829

2 439

1 341

2 357

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

Contingent liability

For a detailed disclosure on contingent liabilities refer to Harmony’s annual report for the financial year ended 30 June 2010, available on the
group’s website www.harmony.co.za. There were no significant changes in contingencies since 30 June 2010.

Dividends paid

On 13 August 2010, the Board of Directors approved a final dividend for the 2010 financial year of 50 SA cents per share. The total dividend
amounting to R214 million was paid on 20 September 2010.

Subsequent events

Closure of Merriespruit 1

On 4 October 2010, the decision was made to finally close Merriespruit 1 shaft, under the Section 189 of the Labour Relations Act already in
place. The closure was postponed in terms of an agreement reached with organised labour to keep the shaft open while it remained profitable.

Results for the first quarter
ended 30 September 2010

10. Segment report

The segment report follows on page 25.

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

30 September

30 September¹

2010

2009

(Unaudited)

R million

The “reconciliation of segment data to consolidated financials” line item in the segment report
is broken down in the following elements, to give a better understanding of the differences
between the income statement, balance sheet and segment report.

Revenue from:

Discontinued operations

–

Production costs from:

Discontinued operations

–

Reconciliation of production proﬁt to gross proﬁt:

Total segment revenue

3 083

2 747

Total segment production costs

(2 431)

(2 195)

Production proﬁt as per segment report

652

552

Less: discontinued operations

–

652

552

Cost of sales items other than production costs and royalty expense

(564)

(405)

Amortisation and depreciation

(426)

(350)

Employment termination and restructuring costs

(78)

–

Share-based payments

(31)

(34)

Rehabilitation costs

(4)

Care and maintenance costs of restructured shafts

(25)

(17)

Gross proﬁt as per income statements *

147

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

Property, plant and equipment not allocated to a segment:

Mining assets

829

596

Undeveloped property

5 139

Other non-mining assets

6 035

5 801

The comparative figures are re-presented due to Mount Magnet being reclassified as discontinued operations. See note 4 in this regard.

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

SEGMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2010 (Rand/Metric) (Unaudited)

Production

Mining

Capital

Kilograms

Tonnes

Revenue

costs

(1)

proﬁt/(loss)

assets

expenditure

produced

milled

R million

t’000

Continuing operations
South Africa
Underground
Bambanani

(2)

270

223

987

942

129

Doornkop

168

148

2 896

541

140

Evander

174

176

(2)

935

552

140

Joel

(31)

184

148

Kusasalethu

475

387

3 046

104

1 513

269

Masimong

374

202

172

815

1 263

243

Phakisa

112

111

4 133

377

Target

(2)

244

189

2 598

118

947

205

Tshepong

500

294

206

3 620

1 688

338

Virginia

223

225

(2)

694

760

244

Surface
All other surface operations

(3)

317

238

145

1 069

2 837

Total South Africa

2 901

2 268

633

20 053

688

9 800

4 671

International
Papua New Guinea

182

163

3 785

671

427

Total international

182

163

3 785

671

427

Total continuing operations

3 083

2 431

652

23 838

749

10 471

5 098

Discontinued operations
Mount Magnet

–

Total discontinued operations

–

Total operations

3 083

2 431

652

23 838

749

10 471

5 098

Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 11)

–

6 035

3 083

2 431

29 873

Notes:

(1) Production costs includes royalty expense.

(2) Production statistics for Steyn 2 and Target 3 are shown for information purposes. These mines are in build-up phase and revenue and costs are currently capitalised until

commercial levels of production are reached.

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

Results for the first quarter
ended 30 September 2010

SEGMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2009 (Rand/Metric)(Unaudited)

Production

Mining

Capital

Kilograms

Tonnes

Revenue

costs

proﬁt/(loss)

assets

expenditure

produced

milled

R million

t’000

Continuing operations
South Africa
Underground
Bambanani

234

193

672

946

147

Doornkop

120

101

2 618

500

130

Evander

290

273

958

1 239

259

Joel

128

105

230

515

136

Kusasalethu

350

281

2 797

111

1 625

260

Masimong

324

186

138

684

1 359

234

Phakisa

3 778

128

260

Target

219

160

2 262

909

193

Tshepong

421

294

127

3 660

1 703

418

Virginia

398

413

(15)

868

1 668

544

Surface
Other

(1)

199

130

141

891

2 092

Total South Africa

2 747

2 195

552

18 668

666

11 615

4 484

International
Papua New Guinea

–

3 713

249

–

Total international

–

3 713

249

–

Total continuing operations

2 747

2 195

552

22 381

915

11 615

4 484

Discontinued operations
Mount Magnet

–

275

–

Total discontinued operations

–

275

–

Total operations

2 747

2 195

552

22 656

915

11 615

4 484

Reconciliation of the segment
information to the consolidated
income statement and
balance sheet (refer to note 11)

–

5 801

2 747

2 195

28 457

Note:

(1)

Includes Kalgold, Phoenix and Dumps.

Results for the first quarter ended

30 September 2010

(US$)

Incorporated in the Republic of South Africa
Registration Number 1950/038232/06
(“Harmony” or “Company”)

Results for the ﬁ rst quarter FY11, ended 30 September 2010

JSE Share code: HAR | NYSE Share code: HMY | ISIN: ZAE 000015228

Results for the first quarter
ended 30 September 2010

Operating results

(US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Total SA

South

Interna

Kusasa-

Under-

Total

Africa

Hidden

tional

Harmony

Bambanani

Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn 2

Target 1

Target 3 Tshepong

Virginia

ground

Kalgold

Phoenix

Dumps

Surface

Other

Total

Valley

Other

Total

Ore milled

– t’000

Sep-10

142

154

297

268

–

226

–

373

269

2 022

477

1 705

946

3 128

–

5 150

471

–

5 621

Jun-10

142

153

161

100

346

240

105

–

219

–

379

266

2 111

475

1 474

784

2 733

–

4 844

335

–

5 179

Gold produced

– oz

Sep-10

29 289

17 394

17 747

4 758

48 644

40 606

12 121

997

26 878

3 569

54 270

24 435

280 708

11 831

5 305

17 233

34 369

–

315 077

21 573

–

336 650

Jun-10

37 616

16 333

18 551

12 153

45 011

38 613

13 375

932

27 939

2 958

55 235

25 496

294 212

13 182

4 951

15 561

33 694

–

327 906

18 808

–

346 714

Yield

– oz/t

Sep-10

0.206

0.113

0.115

0.108

0.164

0.152

0.128

–

0.119

–

0.145

0.091

0.137

0.025

0.003

0.018

0.011

–

0.060

0.046

–

0.059

Jun-10

0.265

0.107

0.115

0.122

0.130

0.161

0.127

–

0.128

–

0.146

0.096

0.138

0.028

0.003

0.020

0.012

–

0.067

0.045

–

0.065

Cash operating

– $/oz

Sep-10

1 046

1 061

1 236

2 504

959

687

1 263

–

916

–

746

1 280

975

1 017

986

835

921

–

969

1 042

–

974

costs

Jun-10

677

916

1 171

1 047

862

600

955

–

915

–

682

1 124

832

765

953

654

741

–

822

1 008

–

831

Cash operating

– $/t

Sep-10

216

120

142

271

157

104

161

–

109

–

109

116

133

–

costs

Jun-10

179

135

127

112

122

–

117

–

108

114

–

Gold sold

– oz

Sep-10

30 190

18 808

19 548

4 887

53 402

41 860

12 474

997

27 232

3 569

55 910

24 949

293 826

12 925

5 305

17 233

35 463

–

329 289

20 158

–

349 447

Jun-10

38 099

15 625

18 905

10 899

39 899

39 095

13 535

932

26 846

2 958

55 942

30 511

293 246

13 021

4 951

15 561

33 533

–

326 779

18 487

–

345 266

Revenue

($’000)

Sep-10

36 946

23 004

23 848

6 011

65 081

51 247

15 291

–

33 413

–

68 458

30 505

353 804

15 819

6 481

21 024

43 324

–

397 128

24 894

–

422 022

Jun-10

46 626

19 049

23 054

13 055

48 440

47 841

16 585

–

33 223

–

68 287

36 779

352 939

15 592

5 947

18 650

40 189

–

393 128

10 470

–

403 598

Cash operating

($’000)

Sep-10

30 646

18 462

21 928

11 915

46 634

27 900

15 303

–

24 610

–

40 512

31 272

269 182

12 031

5 232

14 383

31 646

–

300 828

22 478

–

323 306

costs

Jun-10

25 464

14 966

21 715

12 722

38 803

23 164

12 768

–

25 563

–

37 656

28 648

241 469

10 088

4 719

10 171

24 978

–

266 447

15 072

–

281 519

Inventory

($’000)

Sep-10

(63)

1 735

2 220

(1 639)

6 297

(271)

(56)

–

1 315

–

(313)

(475)

8 750

224

–

681

905

–

9 655

(178)

–

9 477

movement

Jun-10

2 205

(214)

752

(771)

(6 636)

547

708

–

(1 038)

–

3 457

3 936

2 946

(109)

–

1 071

962

–

3 908

(6 676)

–

(2 768)

Operating costs

($’000)

Sep-10

30 583

20 197

24 148

10 276

52 931

27 629

15 247

–

25 925

–

40 199

30 797

277 932

12 255

5 232

15 064

32 551

–

310 483

22 300

–

332 783

Jun-10

27 669

14 752

22 467

11 951

32 167

23 711

13 476

–

24 525

–

41 113

32 584

244 415

9 979

4 719

11 242

25 940

–

270 355

8 396

–

278 751

Operating proﬁ t

($’000)

Sep-10

6 363

2 807

(300)

(4 265)

12 150

23 618

–

7 488

–

28 259

(292)

75 872

3 564

1 249

5 960

10 773

–

86 645

2 594

–

89 239

Jun-10

18 957

4 297

587

1 104

16 273

24 130

3 109

–

8 698

–

27 174

4 195

108 524

5 613

1 228

7 408

14 249

–

122 773

2 074

–

124 847

Capital

($’000)

Sep-10

5 327

9 513

8 105

2 510

14 285

5 539

12 555

6 063

8 502

7 675

8 302

4 130

92 506

636

–

636

1 044

94 186

8 106

272

102 564

expenditure

Jun-10

4 422

13 803

5 047

2 399

11 397

5 932

15 560

7 847

9 175

5 678

9 269

5 007

95 536

581

–

660

3 175

99 371

9 695

181

109 247

Results for the first quarter
ended 30 September 2010

CONDENSED CONSOLIDATED INCOME STATEMENT (US$)

(Convenience translation)

Quarter ended

Year ended

30 September

30 June

30 September¹

30 June

2010

2009

2010

(Unaudited)

(Audited)

US$ million

Continuing operations
Revenue

422

404

353

1 489

Cost of sales

(411)

(352)

(334)

(1 383)

Production costs

(330)

(275)

(282)

(1 099)

Royalty expense

(3)

(4)

–

(4)

Amortisation and depreciation

(58)

(51)

(45)

(181)

Impairment of assets

–

(4)

–

(43)

Employment termination and restructuring costs

(11)

–

(27)

Other items

(9)

(7)

(29)

Gross profit

106

Corporate, administration and other expenditure

(13)

(16)

(10)

(50)

Social investment expenditure

(2)

(4)

(1)

(11)

Exploration expenditure

(14)

(8)

(6)

(29)

Profit on sale of property, plant and equipment

–

Other (expenses)/income – net

(7)

(10)

(8)

Operating (loss)/proﬁt

(23)

(8)

(Loss)/profit from associates

(1)

Loss on sale of investment in subsidiary

–

(3)

Net gain on financial instruments

–

Investment income

Finance cost

(8)

(12)

(7)

(32)

Proﬁt/(loss) before taxation

(2)

Taxation

(30)

(2)

(44)

Normal taxation

(1)

(3)

(11)

Deferred taxation

(27)

(33)

Net proﬁ t/(loss) from continuing operations

(4)

(20)

Discontinued operations
(Loss)/profit from discontinued operations

–

(2)

(4)

Net proﬁt/(loss)

(3)

(24)

Attributable to:

Owners of the parent

(3)

(24)

Non-controlling interest

–

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

(1)

(5)

– Loss from discontinued operations

–

(1)

–

(1)

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

–

(1)

(6)

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

(1)

(5)

– Loss from discontinued operations

–

(1)

–

(1)

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

–

(1)

(6)

¹ The comparative ﬁ gures are re-presented due to Mount Magnet being reclassiﬁ ed as a discontinued operation.

The currency conversion average rates for the quarter ended: September 2010: US$1 = R7.31 (June 2010: US$1 = R7.54, September 2009:
US$1 = R7.78)

The income statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.

Note on convenience translations

Except where specific statements have been extracted from the 2010 Annual Report, the requirements of IAS 21, The Effects of the Changes in
Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial statements presented on page 30 to 36.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (US$)

(Convenience translation)

Quarter ended

Year ended

30 September

30 June

30 September¹

June

2010

2009

2010

(Unaudited)

(Audited)

US$ million

Net proﬁt/(loss) for the period

(3)

(24)

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

(22)

Foreign exchange translation

(21)

Fair value movement of available-for-sale investments

–

(1)

–

Total comprehensive income/(loss) for the period

(20)

(2)

Attributable to:

Owners of the parent

(20)

(2)

Non-controlling interest

–

The currency conversion average rates for the quarter ended: September 2010: US$1 = R7.31 (June 2010: US$1 = R7.54, September 2009:
US$1 = R7.78)

The statement of other comprehensive income for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.

Results for the first quarter
ended 30 September 2010

CONDENSED CONSOLIDATED BALANCE SHEET (US$)

(Convenience translation)

30 September

30 June

30 September

2010

2009

(Unaudited)

(Audited)

(Unaudited)

US$ million

ASSETS

Non-current assets

Property, plant and equipment

4 289

3 874

3 774

Intangible assets

316

290

294

Restricted cash

Restricted investments

257

228

221

Investments in financial assets

Investments in associates

Inventories

–

Trade and other receivables

5 020

4 501

4 374

Current assets

Inventories

130

129

152

Trade and other receivables

111

Income and mining taxes

122

Cash and cash equivalents

111

101

145

344

362

414

Assets of disposal groups classified as held for sale

–

344

394

414

Total assets

5 364

4 895

4 788

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

4 059

4 027

3 726

Other reserves

(40)

Retained earnings/(accumulated loss)

(159)

113

4 199

3 828

3 890

Non-current liabilities

Deferred tax

513

463

433

Provisions for other liabilities and charges

247

222

207

Retirement benefit obligation and other provisions

Borrowings

139

129

923

836

676

Current liabilities

Borrowings

Income and mining taxes

Trade and other payables

210

185

242

213

222

Liabilities of disposal groups classified as held for sale

–

242

231

222

Total equity and liabilities

5 364

4 895

4 788

Number of ordinary shares in issue

428 850 584

428 654 779

426 024 653

Net asset value per share (cents)

979

893

913

The balance sheet for September 2010 converted at a conversion rate of US$1 = R6.96 (September 2009: US$1 = R7.54).

The balance sheet as at 30 June 2010 has been extracted from the 2010 Annual Report.

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

for the period ended 30 September 2010 (Convenience translation)

Other

Retained

capital

reserves

earnings

Total

US$ million

Balance – 30 June 2010

4 058

4 195

Issue of shares

–

Share-based payments

–

Total comprehensive income for the period

–

Dividends paid

–

(31)

Balance as at 30 September 2010

4 059

4 199

Balance – 30 June 2009

3 726

145

3 916

Issue of shares

–

Share-based payments

–

Total comprehensive loss for the period

–

(4)

(3)

Dividends paid

–

(28)

Balance as at 30 September 2009

3 726

113

3 890

The currency conversion closing rates for the year ended: September 2010: US$1 = R6.96 (September 2009: US$1 = R7.54).

Results for the first quarter
ended 30 September 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (US$)

(Convenience translation)

Quarter ended

Year ended

30 September

30 June

30 September

30 June

2010

2009

2010

(Unaudited)

(Audited)

US$ million

Cash ﬂow from operating activities
Cash generated by operations

117

214

Interest and dividends received

Interest paid

(4)

(5)

(1)

(12)

Income and mining taxes paid

(1)

(7)

(3)

(17)

Cash generated by operating activities

108

210

Cash ﬂow from investing activities
Decrease in restricted cash

–

Proceeds on disposal of investment in subsidiary

–

Proceeds on disposal of available-for-sale financial assets

–

Other investing activities

(1)

(2)

Net additions to property, plant and equipment

(102)

(94)

(117)

(463)

Cash utilised by investing activities

(66)

(94)

(114)

(453)

Cash ﬂow from ﬁnancing activities
Borrowings raised

–

168

Borrowings repaid

(1)

(14)

(1)

(57)

Ordinary shares issued – net of expenses

–

Dividends paid

(29)

–

(29)

Cash (utilised)/generated by financing activities

(29)

(30)

Foreign currency translation adjustments

(6)

Net increase/(decrease) in cash and cash equivalents

(108)

(152)

Cash and cash equivalents – beginning of period

101

253

Cash and cash equivalents – end of period

111

101

145

101

Operating activities translated at average rates for the quarter ended: September 2010: US$1 = R7.31 (June 2010: US$1 = R7.54, September 2009:
US$1 = R7.78).

Closing balance translated at closing rates of: September 2010: US$1 = R6.96 (June 2010: US$1 = R7.63, September 2009: US$1 = R7.54).

The cash ﬂ ow statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.

SEGMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2010 (US$/Imperial) (Unaudited)

(Convenience translation)

Production

Mining

Capital

Ounces

Tons

Revenue

costs

(1)

proﬁt/(loss)

assets

expenditure

produced

milled

US$ million

t’000

Continuing operations
South Africa
Underground
Bambanani

(2)

142

30 286

142

Doornkop

416

17 394

154

Evander

–

134

17 747

154

Joel

(4)

4 758

Kusasalethu

437

48 644

297

Masimong

117

40 606

268

Phakisa

–

593

12 121

Target

(2)

373

30 447

226

Tshepong

520

54 270

373

Virginia

–

100

24 435

269

Surface
All other surface operations

(3)

34 369

3 128

Total South Africa

397

311

2 879

315 077

5 150

International
Papua New Guinea

543

21 573

471

Total international

543

21 573

471

Total continuing operations

422

333

3 422

103

336 650

5 621

Discontinued operations
Mount Magnet

–

Total discontinued operations

–

Total operations

422

333

3 422

103

336 650

5 621

Notes:

(1)

Production costs includes royalty expense.

(2)

Production statistics for Steyn 2 and Target 3 are shown for information purposes. These mines are in build-up phase and revenue and costs are currently capitalised until

commercial levels of production are reached.

(3)

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

All income statement items, including capital expenditure, are converted at the currency conversion rate of US$1 = R7.31.

Mining assets are converted at the currency conversion rate of US$1 = R6.96.

Results for the first quarter
ended 30 September 2010

SEGMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2009 (Unaudited) (US$/Imperial)

(Convenience translation)

Production

Mining

Capital

Ounces

Tons

Revenue

costs

proﬁt/(loss)

assets

expenditure

produced

milled

US$ million

t’000

Continuing operations
South Africa
Underground
Bambanani

371

30 415

162

Doornkop

128

16 075

143

Evander

485

39 835

286

Joel

16 558

150

Kusasalethu

52 245

287

Masimong

300

43 693

258

Phakisa

–

347

8 359

Target

501

29 225

213

Tshepong

54 753

461

Virginia

(2)

115

53 627

600

Surface
Other

(1)

28 646

2 307

Total South Africa

353

282

2 477

373 431

4 945

International
Papua New Guinea

–

492

–

Total international

–

492

–

Total continuing operations

353

282

2 969

118

373 431

4 945

Discontinued operations
Mount Magnet

–

Total discontinued operations

–

Total operations

353

282

3 005

118

373 431

4 945

Note:

(1)

Includes Kalgold, Phoenix and Dumps.

All income statement items, including capital expenditure, are converted at the currency conversion rate of US$1 = R7.78.

Mining assets are converted at the currency conversion rate of US$1 = R7.54.

DEVELOPMENT RESULTS (Metric)

Quarter ended 30 September 2010

Channel

Reef

Sampled

Width

Value

Gold

(metres)

(cm’s)

(g/t)

(cmg/t)

Tshepong

Basal

688

644

10.20

103.19

1 054

B Reef

137

100

57.00

11.82

678

All Reefs

825

744

16.49

60.85

1 003

Phakisa & Nyala

Basal

291

300

40.60

22.04

895

All Reefs

291

300

40.60

22.04

895

Total Bambanani

(incl. Bambanani, Steyn 1 & Steyn 2)

Basal

65.2

160.10

16.80

2 689

All Reefs

160.10

16.80

2 689

Doornkop

South Reef

484.0

489

65.00

15.20

990

All Reefs

484

489

65.00

15.23

990

Kusasalethu

VCR Reef

647.4

614

60.61

24.35

1 476

All Reefs

647

614

60.61

24.35

1 476

Total Target

(incl. Target 1 & Target 3)

Elsburg

317.6

183

174.76

13.59

2 375

A Reef

39.1

141.20

15.96

2 253

B Reef

33.0

27.20

41.51

1 129

All Reefs

390

255

150.09

14.59

2 190

Masimong

Basal

523.6

398

64.57

18.53

1 197

B Reef

24.7

–

All Reefs

548

398

64.57

18.53

1 197

Evander

Kimberley

287.0

303

36.00

76.42

2 751

All Reefs

287

303

36.00

76.42

2 751

Virginia

(incl. Unisel & Merriespruit)

Basal

696.9

630

126.09

9.16

1 155

Leader

330.7

304

180.61

7.16

1 293

Middle

57.9

147.27

13.70

2 017

All Reefs

1 086

986

144.01

8.63

1 243

Joel

Beatrix

58.5

204.00

6.92

1 412

All Reefs

204.00

6.92

1 412

Total Harmony

Basal

2 264

2 032

65.69

17.32

1 137.98

Beatrix

204.00

6.92

1 412.00

Leader

331

304

180.61

7.16

1 293.16

B Reef

195

134

49.44

16.03

792.43

A Reef

39.1

38.0

141.20

15.96

2 253.00

Middle

57.9

52.0

147.27

13.70

2 016.96

Elsburg

317.6

183.0

174.76

13.59

2 374.63

Kimberley

287.0

303.0

36.00

76.42

2 751.00

South Reef

484

489

65.00

15.23

990.00

VCR

647

614

60.61

24.35

1 475.79

All Reefs

4 682

4 215

79.10

17.26

1 365

DEVELOPMENT RESULTS (Imperial)

Quarter ended 30 September 2010

Channel

Reef

Sampled

Width

Value

Gold

(feet)

(inches)

(oz/t)

(in.oz/t)

Tshepong

Basal

2 257

2 113

4.00

3.03

B Reef

450

328

22.00

0.35

All Reefs

2 707

2 441

6.00

1.92

Phakisa & Nyala

Basal

954

984

16.00

0.64

All Reefs

954

984

16.00

0.64

Total Bambanani

(incl. Bambanani, Steyn 1 & Steyn 2)

Basal

214

197

63.00

0.49

All Reefs

214

197

63.00

0.49

Doornkop

South Reef

1 588

1604

26.00

0.44

All Reefs

1 588

1 604

26.00

0.44

Kusasalethu

VCR Reef

2 124

2 014

24.00

0.71

All Reefs

2 124

2 014

24.00

0.71

Total Target

(incl. Target 1 & Target 3)

Elsburg

1 042

600

69.00

0.40

A Reef

128

125

56.00

0.46

B Reef

108

112

11.00

1.18

All Reefs

1 279

837

59.00

0.43

Masimong

Basal

1 718

1 306

25.00

0.55

B Reef

–

All Reefs

1 799

1 306

25.00

0.55

Evander

Kimberley

942

994

14.00

2.26

All Reefs

942

994

14.00

2.26

Virginia

(incl. Unisel & Merriespruit)

Basal

2 286

2 067

50.00

0.27

Leader

1 085

997

71.00

0.21

Middle

190

171

58.00

0.40

All Reefs

3 561

3 235

57.00

0.25

Joel

Beatrix

192

217

80.00

0.20

All Reefs

192

217

80.00

0.20

Total Harmony

Basal

7 429

6 667

26.00

0.50

13.07

Beatrix

192

217

80.00

0.20

16.21

Leader

1 085

997

71.00

0.21

14.85

B Reef

640

440

19.00

0.48

9.10

A Reef

128

125

56.00

0.46

25.87

Middle

190

171

58.00

0.40

23.16

Elsburg

1 042

600

69.00

0.40

27.27

Kimberley

942

994

14.00

2.26

31.59

South Reef

1 588

1 604

26.00

0.44

11.37

VCR

2 124

2 014

24.00

0.71

16.95

All Reefs

15 360

13 829

31.00

0.51

Results for the first quarter
ended 30 September 2010

NOTES

Results for the first quarter
ended 30 September 2010

CONTACT DETAILS

HARMONY GOLD MINING COMPANY LIMITED

Corporate Office

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

Directors

P T Motsepe (Chairman)*
G P Briggs (Chief Executive Officer)
H O Meyer (Financial Director)
H E Mashego (Executive Director: Organisational
Development and Transformation)
F F T De Buck*^ (Lead independent director)
F Abbott*
J A Chissano* 1
Dr C Diarra* †^
K V Dicks* ^ , Dr D S Lushaba* ^ , C Markus*^,
M Motloba* ^ , C M L Savage* ^ , A J Wilkens*
* Non-executive
Mozambican
† US/Mali Citizen
^ Independent

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

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

Company Secretary

Khanya Maluleke
Telephone:   +27 11 411 2019
Fax:           +27 11 411 2070
Mobile:        +27 82 767 1082
E-mail:        Khanya.maluleke@harmony.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
16th Floor, 11 Diagonal Street
Johannesburg, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 86 154 6572
Fax: +27 86 674 4381

United Kingdom Registrars

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

ADR Depositary

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

Sponsor

JP Morgan Equities Limited
1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax: +27 11 507 0503

Trading Symbols

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

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

ISIN: ZAE 000015228

PRINTED BY INCE (PTY) LTD

W2CF10173

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: November 1, 2010

Harmony Gold Mining Company Limited

By:

/s/

Hannes Meyer

Name:

Hannes Meyer

Title: Financial Director