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

8 February 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 31 December 2009

426 079 492

Market capitalisation

At 31 December 2009 (ZARm)

32 293

At 31 December 2009 (US$m)

4 333

Harmony ordinary share

and ADR prices

12 month high (1 January 2009 to
31 December 2009) for
ordinary shares

R129.50

12 month low (1 January 2009 to
31 December 2009)
for ordinary shares

R69.05

12 month high (1 January 2009 to
31 December 2009) for ADRs

$13.06

12 month low (1 January 2009 to
31 December 2009) for ADRs

$8.17

Free float

100%

ADR ratio

1:1

JSE Limited

HAR

Range for quarter
(1 October 2009 to 31 December 2009 R74.00 –
– closing prices)

R87.00

Average daily volume for
the quarter (1 October 2009 to
31 December 2009)

1 732 533

Average daily volume for
the period (1 January 2009 to
31 December 2009)

2 238 413

New York Stock

Exchange, Inc.

HMY

Range for quarter
(1 October 2009 to 31 December 2009 $9.73 –
– closing prices)

$11.98

Average daily volume for
the quarter (1 October 2009 to
31 December 2009)

1 053 822

Average daily volume for
the period (1 January 2009 to
31 December 2009)

945 810

Nasdaq

HMY

Range for quarter
(1 October 2009 to 31 December 2009 $9.74 –
– closing prices)

$11.94

Average daily volume for
the quarter (1 October 2009 to
31 December 2009)

816 709

Average daily volume for
the period (1 January 2009 to
31 December 2009)

740 219

Key features for the quarter

Safety remains our top priority

45% increase in cash operating profit to R800 million

•

1% decrease in total operating costs

•

gold price increased by 11% to R264 774/kg

Free cash flow from SA underground operations

‘Fixing the mix’

•

more quality, low-cost ounces the objective

Commissioning of growth projects

•

2.5% drop in total capex

Exciting exploration results from Wafi-Golpu in PNG

Financial review for the second quarter and six months ended
31 December 2009

Quarter

6 months 6 months Year-to-

December September

Q-on-Q December December

year

2009

2009 variance

2009

2008 variance

Gold produced* – kg

11 569

11 714

(1.2)

23 283

23 554

(1.2)

– oz

371 956

376 599

(1.2)

748 555

757 277

(1.2)

Cash operating – R/kg

192 101

188 362

(2.0)

190 172

162 550

(17.0)

costs

– $/oz

798

753

(6.0)

775

580

(33.6)

Gold sold*

– kg

11 640

11 471

1.5

23 111

24 757

(6.7)

– oz

374 234

368 800

1.5

743 034

795 953

(6.7)

Gold price

– R/kg

264 774

239 438

10.6

251 968

235 421

7.0

received

– US$/oz

1 100

957

14.9

1 028

831

23.7

Cash operating – Rm

800

552

44.9

1 351

1 921

(29.7)

profit

– US$m

107

50.7

178

217

(18.0)

Basic

– SAc/s

(7)

>100

161

(87.0)

earnings/(loss) – USc/s

(1)

>100

(83.3)

Headline

– Rm

207

(51)

>100

156

427

(63.4)

profit/(loss)

– US$m

(7)

>100

(58.3)

Headline

– SAc/s

(12)

>100

105

(64.8)

earnings/(loss) – USc/s

(2)

>100

(58.3)

Exchange rate

– R/US$

7.49

7.78

(3.7)

7.63

8.84

(13.7)

* Production and sales statistics for Hidden Valley have been included. The mine is in a build-up phase and revenue and costs
are currently capitalised.

HARMONY’S ANNUAL REPORTS

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

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

Results for the

second quarter and six months

ended 31 December 2009

Results for the second quarter and six months
ended 31 December 2009

Forward-looking statements

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

These forward-looking statements, including,
among others, those relating to the future
business prospects, revenues and income of
Harmony, wherever they may occur in this
quarterly report and the exhibits to this quarterly
report, are necessarily estimates reflecting the
best judgment of the senior management of
Harmony and involve a number of risks and
uncertainties that could cause actual results to
differ materially from those suggested by the
forward-looking statements. As a consequence,
these forward-looking statements should be
considered in light of various important factors,
including those set forth in this quarterly report.
Important factors that could cause actual results
to differ materially from estimates or projections
contained in the forward-looking statements
include, without limitation:

overall economic and business conditions in

South Africa and elsewhere;

the ability to achieve anticipated efficiencies

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

increases/decreases in the market price

of gold;

the occurrence of hazards associated with

underground and surface gold mining;

the occurrence of labour disruptions;

availability, terms and deployment of capital;

changes in government regulation, particularly

mining rights and environmental regulations;

fluctuations in exchange rates;

currency devaluations and other macro-

economic monetary policies; and

socio-economic instability in South Africa and

regionally.

Contents

Page

Chief Executive Officer’s Review

Financial overview

Safety and health

Operational overview

South African underground operations

– Bambanani

– Doornkop

– Elandsrand

– Evander

– Joel

– Masimong

– Phakisa

– Target

– Tshepong

– Virginia

South African surface operations

– Kalgold

– Phoenix

– Rock dumps

International operations

– Hidden Valley

Development

Exploration

Operating results (Rand/Metric)

Condensed Consolidated Income Statement (Rand)

Condensed Consolidated Statement of Other Comprehensive Income (Rand)

Condensed Consolidated Balance Sheet (Rand)

Condensed Consolidated Statement of Changes in Equity (Rand)

Condensed Consolidated Cash Flow Statement (Rand)

Notes to the condensed consolidated financial statements

for the period ended 31 December 2009

Segment Report for the six months ended 31 December 2009 (Rand/Metric)

Operating Results (US$/Imperial)

Condensed Consolidated Income Statement (US$)

Condensed Consolidated Statement of Other Comprehensive Income (US$)

Condensed Consolidated Balance Sheet (US$)

Condensed Consolidated Statement of Changes in Equity (US$)

Condensed Consolidated Cash Flow Statement (US$)

Segment Report for the six months ended 31 December 2009 (US$/Imperial)

Development Results – Metric and Imperial

Contact Details

Chief Executive Officer’s Review

Overview

The turnaround at Harmony continues with an increase in profitability
on the back of favourable market conditions and restructuring for
more quality ounces. ‘Fixing the mix’ – was a primary focus in the
quarter under review. Costs were well-controlled and a higher Rand
gold price received helped us towards significantly improved profit
levels. Work continued on the commissioning of our growth projects
and on production planning for the Pamodzi Gold Free State assets.
In addition, we reported some very exciting exploration results out
of Papua New Guinea (PNG).

Safety

With deep regret, I must report that five of our colleagues died in
work-related incidents during the quarter. Those who died were:
Lekhetho Ranko, a team leader at Bambanani, Ashley Nortje a
boilermaker, and Keith Coleman, a maintenance technician, both at
Target; Lebusa Elia, a team leader at Virginia Operations; and Martin
Thosa, a night shift cleaner at Elandsrand. I would like to extend
my deepest condolences to their families, friends and colleagues.

Our Fatal Injury Frequency Rate (FIFR) showed an encouraging
improvement quarter on quarter. Whilst the current quarter has
not been great, safety is a high priority and is being constantly
addressed. The rewards of these will be seen in time.

Detailed coverage of our safety and health performance and the
measures taken to ensure a safe working environment is contained
in the safety and health section on page 5.

Gold market

The South African Rand was stronger against the US Dollar during
the quarter, the exchange rate averaging R7.49/US$ compared with
R7.78/US$ in the previous quarter.

The US Dollar gold price averaged $1 100/oz, up 14.9% on the
previous quarter, pointing to the metal’s continuing robustness as
world economies recover from the meltdown of 2008. Consequently,
the Rand gold price we received for our production averaged
R264 774/kg, a 10.6% improvement quarter on quarter.

What matters primarily to us as a dominant South African gold
producer, is of course the Rand gold price we receive, the
determinant of which is the Rand/Dollar exchange rate. While
the higher Rand gold price received during the December 2009
quarter was most welcome, we still hold the view that general Rand
strength is likely to continue for so long as any global economic
uncertainties last. We therefore expect the gold price to remain
fairly flat for the next 12 months in R/kg terms.

Operating and financial results

Gold production for the quarter was down 1.2% to 11 569kg as
expected, mainly due to the restructuring, more detail of which is
provided below. Underground volume was 6.2% lower at 2 243 000t,
underground grade flat at 4.51g/t, and underground production
thus 5.7% lower at 325 268oz. Surface volumes increased by 22.9%
to 2 681 000t. Combined with a 20% increase in grade to 0.54g/t,
resulted in surface production increasing by 46.8% to 46 688oz.
The increase in surface production can mainly be attributed to our
opencast operations at PNG.

The aforementioned improvement in the average Rand gold price we
received resulted in an 8.2% increase in revenue to R2 971 million,
and after accounting for total cash operating costs – 1% lower at
R2 172 million mainly because of the lower summer electricity tariff
– cash operating profit was 44.9% higher at R800 million.

Further financial and operating results information is contained in
the financial overview on page 5, and in the operational overview
commencing on page 6.

Restructuring for sustained profitability

As part of our stated strategy, cutbacks from marginal loss-making
mining operations at Harmony could be expected. Our objective is
to eliminate high-cost ounces from our production profile.

We carefully reviewed our asset portfolio over a period of some
months.

During the December 2009 quarter there was an intense focus
on the uneconomical operations – specifically, Harmony 2 shaft,
Merriespruit 1 and 3 shafts, and Brand 3 shaft, all contained within
the Virginia operations; and the Evander 2, 5 and 7 shafts.

Brand 3 and Evander 7 ceased production, mainly due to depletion
of their ore bodies, mature infrastructure and low grades. A number
of their employees were redeployed to our growth projects to fill
vacancies or to replace contractors at other operations.

Evander 2 and 5 were placed on care and maintenance during
January 2010. We will continue to closely monitor Harmony 2,
while the Merriespruit shafts appear to have remaining potential,
provided they meet their production targets. It is likely that we
will be able to minimise further retrenchments by absorbing some
employees at the Pamodzi Gold Free State operations.

Growth project commissioning

The Company continued to focus on commissioning growth projects
during the quarter, which showed encouraging results.

At Phakisa, volume increased by 22.5%, while recovery from the
previous quarter’s geological interferences and resolution of
infrastructure problems were adequately addressed. Tshepong’s
grade challenge is expected to continue until production from
the less erratic, higher-grade Sub-66 Decline area builds up. At
Bambanani, the Shaft Pillar Extraction Project is gaining momentum,
with development well under way.

Doornkop shaft received ISO 14001 accreditation in December 2009,
the first Harmony operation to achieve this. Work during the
Christmas break helped to reduce the impact of a shaft barrel
delay on shaft equipping. While Elandsrand had a disappointing
production quarter, the No 1 settler dam was sealed and
pre-commissioning of the 115 level pump station was completed in
preparation for full commissioning during the March 2010 quarter.
The 100 level refrigeration complex construction is 90% complete,
with completion planned for November 2010.

In PNG, remaining sections of the Hidden Valley process plant were
completed in October 2009 and the overland conveyor in early
December 2009. The past quarter yielded 43 028oz of gold production
and 53 081oz of silver, 50% of which is attributable to Harmony. Hidden
Valley is expected to reach commercial levels of production in March 2010 quarter.

Results for the second quarter and six months
ended 31 December 2009

Progressing other projects

The business plan for the Pamodzi Gold Free State assets was
completed during the quarter, the key milestones of which include:
production of 18kg of gold a month from rock dump milling at
Target. Our planning includes the recovery of some 800kg of
gold from the plant clean-up; and production build-up from the
underground assets to 150 000oz over the next 24 months. The
reserve and resource estimates are currently being revised.

Re-treatment of surface tailings is proving to be an attractive
proposition from both safety and cost perspectives. At our Phoenix
Project in the Free State, we plan to increase volume by 400 000tpm
to 900 000tpm, and at the nearby and re-commissioned Project
Saints the mothballed St Helena plant will be upgraded to treat
surface tailings over a period of at least 20 years. We are looking at
financing options to fund these projects.

Project TPM is evaluating the potential for the economic recovery
of uranium from the higher grade uranium ore mined at Tshepong,
Phakisa and Masimong. Currrent activities include resource
estimation, environmental studies, process and plant design, as
well as metallurgical and flotation test work. We are now entering a
12-month feasability stage.

Exploration

Drilling at the Morobe Mining Joint Venture’s Golpu West prospect
in Papua New Guinea has achieved several highly significant
intercepts of porphyry copper gold mineralisation. These form a
new zone of mineralisation immediately west of the known Golpu
resource. Although the mineralisation is open at depth and along
strike, it is evident that this new discovery will have a material effect
on the Golpu resource base and mining studies.

A new zone of epithermal gold mineralisation was outlined in initial
drilling at the Northern Diatreme Margin prospect at Wafi, and a
major new gold anomaly defined through reconnaissance stream
sediment sampling at Bavaga. The latter lies about 6km north of
the Wafi-Golpu project, on the Wafi transfer structure. The size
of the footprint (>1 km in diameter) and the tenor of the anomaly

(>1 g/t Au) are particularly encouraging and suggest potential for a
significant gold deposit.

Further information on our exploration activities is contained in the
exploration section commencing on page 12.

Harmony team

Hannes Meyer was appointed as financial director designate
on 1 August 2009 and officially took over Harmony’s financial
director’s responsibilities from Frank Abbott on 1 November
2009, following his appointment to Harmony’s Board as executive
director. Hannes is a qualified chartered accountant with more than
14 years’ experience in the mining industry. He brings with him vast
knowledge and experience of the mining industry from a financial
perspective and he has already proven to be an asset to Harmony.
Frank Abbott agreed to continue to serve on the Harmony Board as
an executive director for the next 12 months, as from January 2010.
Frank will focus on the strategic direction and growth of the
company. We are delighted that we have these two individuals on
our team and look forward to the contributions they will make.

Looking ahead

We will push ahead with the commissioning of our growth projects,
in order to bring to account their quality ounces, and we will
continue to pursue profitable growth opportunities – organically,
by acquisition and through forging strategic partnerships. Our
immediate goal remains generating profitable ounces of production
and earnings to reward our shareholders, both through dividends and
future growth. We have made good progress in this regard, having
produced 748 555oz for the six months ended 31 December 2009.

We will continue to engage in robust, constructive debate on issues
that may affect the South African mining industry – in particular
the outrageous power price increases being considered and the
nationalisation of the mines.

Graham Briggs
Chief Executive Officer

Our strategy:

generating sustainable proﬁ table ounces to fund growth and dividends

Safety and health

Safety

Harmony continues to focus on sustainable safety improvements.

Our management team is committed to ensuring that safety remains

a priority at Harmony and to ensure that safety procedures and

protocols of the highest standards are implemented at all Harmony’s

operations. Regrettably, ﬁ ve fatalities were recorded during the quarter

under review. Falls of ground and tramming accidents remain the main

causes of the accidents.

We are pleased to announce that during the December 2009 quarter,

a single digit Lost Time Injury Frequency Rate (LTIFR) was achieved for

the ﬁ fth consecutive quarter and also improved by 18% on year-to-

date ﬁ gures from 9.35 to 7.64. However, the LTIFR dropped 20% from

6.91 in the previous quarter to 8.30. The Fatality Injury Frequency Rate

(FIFR) indicated a remarked improvement of 38% quarter on quarter

from 0.32 to 0.20. However, the year to date ﬁ gure deteriorated 24%

from 0.21 to 0.26. The year to date Reportable injury Frequency Rate

(RIFR) improved by 18% when compared to the actual ﬁ gure for the

previous year (from 4.97 to 4.09), but regressed by 29% quarter on

quarter (from 3.55 to 4.59).

A signiﬁ cant amount of attention was directed towards safety

management during the quarter under review. Management has

played a signiﬁ cant role in setting safety objectives and in developing

safety strategies that continue to focus on:

management leading by example;

involvement of all stakeholders;

compliance with standards, and the auditing thereof;

Financial overview

Cash operating profit was 44.9% higher at R800 million due to a higher
average Rand gold price received and lower cash operating costs
counteracting the impact of lower gold production and gold sold
(excluding ounces from Hidden Valley).

Earnings per share

Basic earnings per share increased from a loss of 7 SA cents to
earnings of 28 SA cents. Similarly, headline earnings increased from
a headline loss of 12 SA cents to headline earnings of 49 SA cents.
This improvement can be attributed to an increase in revenue.

Revenue

A 10.6% increase in the average Rand gold price received to
R264 774/kg took revenue 8.2% higher to R2 971 million in spite
of a 6.2% decrease in gold production to 10 900kg (excluding gold
production at Hidden Valley) and a 2.2% decrease in gold sold to
11 224kg (excluding gold sold at Hidden Valley).

Costs

Total cash operating costs were 1% lower at R2 172 million due
mainly to the lower summer-month electricity tariff applicable. Cash
operating unit costs rose by 2% to R192 101/kg due to lower gold
production.

behaviour-based campaigns and initiatives;

recognition of achievements; and

in situ training, particularly in hazard identiﬁ cation and risk

assessment.

Harmony’s commitment to zero fatalities is communicated to

employees on a regular basis, at every level of the company with a

persistent, deliberate and consistent safety awareness effort. We have

a comprehensive safety auditing programme (ﬁ rst reported in FY07) in

place to assess the physical workplace, compliance with fall of ground

regulations, shafts and metallurgical processes (speciﬁ cally in relation

to compliance with the Cyanide Code).

More than 90% of the group’s South African workforce participated in

formal joint management-worker health and safety committees that

participate in occupational health and safety programmes.

The following operations achieved outstanding safety results:

Harmony Total Operations – 1 000 000 fatality free shifts twice

during the quarter

Ernest Oppenheimer Hospital – 4 000 000 fatality free shifts

Harmony 2 and Merriespruit 1 and 3 operations as a unit – 2 500 000

fatality free shifts

Randfontein Medical Bureau – 1 250 000 fatality free shifts

Tshepong – 750 000 fatality free shifts

Evander 8 shaft – 2 250 000 fatality free shifts

Free State Surface Operations – 2 000 000 fatality free shifts

Capital expenditure

Total capital expenditure was 2.5% lower at R892 million. While
capital expenditure for the South African operations increased by
6.8% to R711 million, Hidden Valley capital expenditure was 27.3%
lower at R181 million due to completion of construction at the site
starting to come to an end.

Impairment of assets

An impairment of R67 million for Evander 2 and 5 shafts and
R37 million for Brand 3 shaft were recorded following the decision
to place these shafts on care and maintenance.

Security costs

Security costs increased by 19% to R90.5 million in calendar year
2009, in comparison to calendar year 2008 (R76 million), mainly due
to additional measures being put in place to curb criminal mining.

Disposals

The remaining Avoca shares were disposed of in October 2009
for A$4.1 million.

Nedbank facility

The Company entered into loan facilities with Nedbank Limited in
December 2009. One being term facility of R900 million and the other
a revolving credit facility of R600 million to pay for the acquisition
of the Pamodzi Free State assets and to create financial flexibility.

Results for the second quarter and six months
ended 31 December 2009

Operational overview

South African underground operations

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

2 243

2 392

(6)

Grade

(g/t)

4.51

4.48

Gold produced

(kg)

10 117

10 724

(6)

Gold produced

(oz)

325 268

344 785

(6)

Gold sold

(kg)

10 398

10 617

(2)

Gold sold

(oz)

334 303

341 344

(2)

Cash operating costs (R/kg)

193 544

191 627

(1)

Operating proﬁ t

(R’000) 722 821

483 717

Capital expenditure

(R’000) 682 792

649 561

(5)

Bambanani

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

123

147

(16)

Grade

(g/t)

7.58

6.44

Gold produced

(kg)

932

946

(2)

Gold produced

(oz)

29 964

30 415

(2)

Gold sold

(kg)

969

973

–

Gold sold

(oz)

31 154

31 283

–

Cash operating costs

(R/kg)

179 746

199 533

Operating profit

(R’000)

79 969

40 633

Capital expenditure

(R’000)

27 906

23 019

(21)

Safety during the quarter was poor. A fall of ground (FOG) fatality

was recorded and and far-reaching corrective measures were taken

as a consequence, including a change in the mining method used in

steeply dipping, high-stoping-width panels from breast to down-dip.

An 18% improvement in recovered grade to 7.58g/t helped to

contain the impact of a 16% drop in volume to 123 000t and gold

production was 2% lower at 932kg.

Higher grade resulted both from moving of panels during October

2009 and from the achievement of required volumes from higher-

grade panels. Grade is expected to be maintained going forward by

moving of crews from low-grade areas to higher-grade areas in the

upper shaft.

Lower volume was a consequence both of the aforementioned

change in mining method and from generally unsatisfactory

performance during December 2009.

Cash costs were 10% lower at R179 746/kg, mainly as a result of

lower summer-month electricity tariffs applicable.

A 97% improvement in cash operating profit to R80 million resulted

both from a higher Rand gold price received and lower costs.

Capital expenditure was 21% higher, reflecting the growing

momentum of the Shaft Pillar Extraction Project.

Doornkop

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

148

130

Grade

(g/t)

3.31

3.85

(14)

Gold produced

(kg)

490

500

(2)

Gold produced

(oz)

15 754

16 075

(2)

Gold sold

(kg)

517

500

Gold sold

(oz)

16 622

16 075

Cash operating costs

(R/kg)

198 561

171 476

(16)

Operating profit

(R’000)

31 426

18 536

Capital expenditure

(R’000)

78 720

72 766

(8)

Even more focus on safety-related matters resulted in improved

procedures, training, maintenance and behaviour. The Doornkop

shaft received ISO 14001 accreditation in December 2009, the first

Harmony operation to achieve this milestone.

While volume improved by 14% to 148 000t, reflecting a 26%

increase in square metres blasted, recovered grade was 14% lower

at 3.31g/t, resulting in a 2% decline in gold production to 490kg.

Lower recovered grade was a consequence both of tonnage locked

During the quarter, a safety statistics audit conducted by the auditors
revealed that under-reporting of accidents took place at Harmony’s
Phakisa mine during the period August to November 2009. Appropriate
measures have been taken to rectify this and to ensure that all
accidents are correctly recorded going forward.

Health

Harmony continues to roll out and invest in initiatives and healthcare
programmes to protect the well-being of our employees and improve
productivity of the company going forward.

In terms of occupational hygiene, noise and dust, we are pleased to
announce that the implementation of personalised hearing protection

devices (HPD’s) is about 87% completed. The installation of sound
attenuators on mechanical loaders has been scheduled and some
operations have already begun with the installation process.

Furthermore, Harmony hosted the Chamber of Mines MOSH dust

mini-summit on 12 November 2009 in the Free State, which bares

testimony to our pro-active initiatives that are recognised by external

stakeholders. Also during the quarter under review, the north and

south airborne pollutant laboratories were audited by an external

authority and we are pleased to announce that we achieved an overall

compliance of 97%.

up underground due to a fire on the main feed conveyor belt to the

plant and a plant thickener breakdown.

Cash costs rose by 16% to R198 561/kg, mainly as a result of planned

labour build-up to meet the operation’s future production profile.

Cash operating profit was 70% higher at R31.4 million however,

reflecting the higher Rand gold price received.

While shaft barrel delays at the South Reef Project caused equipping

to fall behind, 14 days were gained during the Christmas break and

the North and South Rock Winder compartments are now equipped

to 212 level. The construction of the 212 level conveyor belt is

expected to be completed by February 2010.

Elandsrand

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

235

260

(10)

Grade

(g/t)

5.90

6.25

(6)

Gold produced

(kg)

1 387

1 625

(15)

Gold produced

(oz)

44 593

52 245

(15)

Gold sold

(kg)

1 488

1 433

Gold sold

(oz)

47 840

46 072

Cash operating costs

(R/kg)

199 147

182 729

(9)

Operating profit

(R’000)

101 047

68 904

Capital expenditure

(R’000)

124 700

111 325

(12)

Increased seismicity during the quarter resulted in one fatality

and a rise in the number of lost time injuries. As a consequence

pre-conditioning of stope faces has been improved to reduce the

risk of face ejection resulting from small, volatile seismic events, and

a broader range of safety initiatives continue to be applied.

Gold production was 15% lower at 1 387kg, reflecting a 10% decline

in volume to 235 000t and a 6% drop in recovered grade to 5.90g/t.

Lower volume resulted from a lack of available face length and from

five productions shifts lost, three due to a Section 54 instruction

following the fatality, one to a power outage caused by a faulty

transformer at the Eskom sub-station and one to a compressor

breakdown. Lower recovered grade was a consequence of lower

face grade, mine call factor and the treatment of low-grade tonnage

from a dam clean-up in the plant.

While cash operating costs were 9% higher at R199 147, reflecting

lower production, cash operating profit was 47% higher at

R101 million due to the improved Rand gold price received.

Evander

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

245

259

(5)

Grade

(g/t)

4.31

4.78

(10)

Gold produced

(kg)

1 057

1 239

(15)

Gold produced

(oz)

33 983

39 835

(15)

Gold sold

(kg)

1 158

1 203

(4)

Gold sold

(oz)

37 231

38 677

(4)

Cash operating costs

(R/kg)

249 411

226 699

(10)

Operating profit

(R’000)

23 366

16 880

Capital expenditure

(R’000)

54 363

51 651

(5)

Safety performance was satisfactory at Evander.

Volume was 5% lower at 245 000t and recovered grade 10% lower
at 4.31g/t, resulting in a 15% decline in gold production to 1 057kg.
Lower volume was mainly the result of the closure of Evander 7 shaft
in December 2009 and panels stopped at Evander 8 shaft because of
high temperatures. Steps to improve ventilation at Evander 8 shaft
have been taken. Lower recovered grade resulted primarily from a
5% decline in face grade and in mine call factor.

Cash operating costs were 10% higher at R249 411/kg, due mainly to
the drop in gold production. Cash operating profit was 38% higher at
R23.4 million due to the higher Rand gold price received.

The impact of the closure of Evander 2 and 5 shafts in January
2010 will reflect in the operation’s results for the quarter ended
31 March 2010.

Joel

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

112

136

(18)

Grade

(g/t)

5.28

3.79

Gold produced

(kg)

591

515

Gold produced

(oz)

19 001

16 558

Gold sold

(kg)

615

529

Gold sold

(oz)

19 773

17 008

Cash operating costs

(R/kg)

167 232

198 792

Operating profit

(R’000)

59 429

22 944

>100

Capital expenditure

(R’000)

32 422

17 809

(82)

Joel recorded a very satisfactory quarter from a safety perspective,
being fatality-free for more than two years.

While volume declined by 18% to 112 000t, recovered grade was
39% higher at 5.28g/t, resulting in a 15% increase in gold production
to 591kg.

Lower volume was due to lower tonnes mined in December 2009
arising from a drop in stoping width, raise boring of the extension

Results for the second quarter and six months
ended 31 December 2009

to the lift shaft and a mud rush on the belt level. Higher recovered
grade was due to increased face grade in the west, more vamping in
the upper mine and reduced stoping widths.

Cash operating costs were 16% lower at R167 232/kg, reflecting
higher gold production, lower electricity costs and good stores
controls. Cash operating profit was 159% higher at R59.4 million due
to higher gold production and an increase in the Rand gold price
received.

Capital expenditure increased by 82% from R17.8 million to
R32.4 million mainly due to the continued capital being spent on the
re-commissioning of Joel plant. Joel plant started treating ore from
Joel shaft during the December 2009 quarter.

Raise boring of the lift shaft extension to 129 level has been
completed. Cleaning operations are in progress which will be
followed by shaft support work and equipping. Completion is
expected in September 2010.

Masimong

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

235

234

–

Grade

(g/t)

5.29

5.81

(9)

Gold produced

(kg)

1 242

1 359

(9)

Gold produced

(oz)

39 931

43 693

(9)

Gold sold

(kg)

1 227

1 349

(9)

Gold sold

(oz)

39 449

43 371

(9)

Cash operating costs

(R/kg)

142 754

137 986

(4)

Operating profit

(R’000)

149 710

138 159

Capital expenditure

(R’000)

45 014

38 866

(16)

Masimong reported very good safety results with an improvement

in both LTIFR and RIFR.

Gold production was 9% lower at 1 242kg. While volume was flat at

235 000t, recovered grade was 9% lower at 5.29g/t due to a drop in

B Reef grades. The Basal Reef panels stayed fairly constant and will

continue to do so.

Cash operating costs were 4% higher at 142 754/kg, a consequence

of the lower gold production. Masimong remains the lowest R/

kg cost producer in the company, including surface operations. A

higher Rand gold price received resulted in an 8% increase in cash

operating profit to R149.7 million.

Capital was 16% higher at R45.0 million but lower than planned due

to the delayed delivery of emergency generators and fridge plant,

now scheduled to arrive in the third and fourth quarters of FY10.

Phakisa

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

Grade

(g/t)

4.02

3.66

Gold produced

(kg)

350

260

Gold produced

(oz)

11 253

8 359

Gold sold

(kg)

364

268

Gold sold

(oz)

11 703

8 616

Cash operating costs

(R/kg)

216 006

222 000

Operating profit

(R’000)

16 889

5 244

>100

Capital expenditure

(R’000)

137 917

127 689

(8)

Safety indicators deteriorated quarter on quarter, pointing to a need

for re-focus.

Gold production rose by 35% to 350kg, reflecting a 23% increase in

volume to 87 000t and a 10% improvement in recovered grade to

4.02g/t. Volume, nonetheless, was below expectation as the mine

continues to address geological issues and down-time on new

infrastructure.

Cash operating costs were 3% lower at R216 006/kg. Higher gold

production and a higher Rand gold price received led to a 222%

increase in cash operating profit to R16.9 million.

The third railveyor train was commissioned during the December

2009 break, thus completing railveyor infrastructure for full

production. Fine-tuning of the Phase 1 infrastructure – in particular,

the remaining four ice plants and the rock handling system –

continues.

Target

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

191

193

(1)

Grade

(g/t)

4.14

4.71

(12)

Gold produced

(kg)

791

909

(13)

Gold produced

(oz)

25 431

29 225

(13)

Gold sold

(kg)

733

955

(23)

Gold sold

(oz)

23 566

30 704

(23)

Cash operating costs

(R/kg)

182 513

166 448

(10)

Operating profit

(R’000)

46 626

59 779

(22)

Capital expenditure

(R’000)

76 888

83 710

Target recorded two fatalities during the quarter. Fall of ground
prevention has become a major focus, and in the narrow reef mining
section where seismicity has increased, all panels are now mined
with safety nets installed on the faces.

While volume was only 1% lower at 191 000t, recovered grade
was 12% lower at 4.14g/t compared with the previous quarter’s
unexpected high of 4.71g/t, resulting in a 13% drop in gold production
to 791kg. Contributing to volume stability is improved availability of
massive stopes through better planning and design, and the return
to production of all 10 narrow reef mining panels following resolution
of ventilation and cooling challenges. Ore reserve management
(ORM) remains crucial to Target’s success going forward; with this
in mind, the ORM team has recently undergone further training and
development.

Cash operating costs were 10% higher at R182 513/kg as a result
of lower grade. Lower electricity, plant and contractor costs and
rationalisation of the trackless fleet will assist in reducing costs in
future. Cash operating profit was 22% lower at R46.6 million due to
lower gold production.

Tshepong

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

396

418

(5)

Grade

(g/t)

4.27

4.07

Gold produced

(kg)

1 692

1 703

(1)

Gold produced

(oz)

54 399

54 753

(1)

Gold sold

(kg)

1 761

1 751

Gold sold

(oz)

56 617

56 296

Cash operating costs

(R/kg)

162 528

168 445

Operating profit

(R’000)

176 046

127 136

Capital expenditure

(R’000)

57 462

71 169

Tshepong was fatality-free for the second consecutive quarter, a
notable achievement, and reflective of the success of various safety
initiatives.

Gold production was flat at 1 692kg, a 5% increase in recovered

grade to 4.27g/t compensating for a 5% decline in volume to

396 000t caused by the shorter December delivery month. Face

grade remains a challenge due to mining at the edge of the pay

shoot where values are more erratic but improvements carried out

to the Harmony 1 Plant are reflected in the higher recovered grade.

Cash operating costs were 4% down at R162 528/kg, due mainly to

lower electricity costs. This, together with a higher Rand gold price

received resulted in a 39% improvement in cash operating profit to

R176 million.

Capital expenditure was 19% lower due to less spent on the

Sub 71 Decline project and delays in the delivery of the emergency

generators.

Virginia

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

471

544

(13)

Grade

(g/t)

3.37

3.07

Gold produced

(kg)

1 585

1 668

(5)

Gold produced

(oz)

50 959

53 627

(5)

Gold sold

(kg)

1 566

1 656

(5)

Gold sold

(oz)

50 348

53 242

(5)

Cash operating costs

(R/kg)

241 214

249 947

Operating profit

(R’000)

38 313

(14 498)

>100

Capital expenditure

(R’000)

47 400

51 557

Virginia Operations recorded one fatality during the quarter, at the

Merriespruit 3 shaft.

The Virginia Operations recorded a better quarter, reflecting the

impact of restructuring (closure of Brand 3 shaft). While a 10%

increase in recovered grade to 3.37g/t did not compensate for a 13%

drop in volume to 471 000t and gold production was consequently

5% lower at 1 585kg, cash operating costs were down 3% to

R241 214/kg. This, together with a higher Rand gold price received,

resulted in a cash operating profit of R38.3 million compared with

the previous quarter’s R14.5 million loss.

Results for the second quarter and six months
ended 31 December 2009

South African surface operations

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

2 292

2 092

Grade

(g/t)

0.34

0.43

(20)

Gold produced

(kg)

783

891

(12)

Gold produced

(oz)

25 174

28 646

(12)

Gold sold

(kg)

826

854

(3)

Gold sold

(oz)

26 556

27 456

(3)

Cash operating costs (R/kg)

173 447

149 072

(16)

Operating proﬁ t

(R’000)

76 864

68 432

Capital expenditure (R’000)

3 763

3 314

(14)

Kalgold

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

423

452

(6)

Grade

(g/t)

0.83

0.92

(10)

Gold produced

(kg)

350

415

(16)

Gold produced

(oz)

11 253

13 343

(16)

Gold sold

(kg)

393

378

Gold sold

(oz)

12 635

12 153

Cash operating costs

(R/kg)

185 666

172 831

(7)

Operating profit

(R’000)

32 385

14 758

>100

Capital expenditure

(R’000)

1 786

1 811

Kalgold recorded a lost time injury-free quarter.

Gold production was 16% lower at 350kg, reflecting lower volume –
down 6% to 423 000t from the September quarter’s exceptional high
of 452 000t – and lower recovered grade, down 10% to 0.83g/t. Heavy
rain both restricted mining in the open pit and caused oxidised
material to form clay, which negatively affected milling efficiency.

Cash operating costs were 7% higher at R185 666/kg, but cash
operating profit rose by 119% to R32.4 million due to the higher Rand
gold price received.

Phoenix

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

1 522

1 382

Grade

(g/t)

0.122

0.117

Gold produced

(kg)

185

162

Gold produced

(oz)

5 948

5 208

Gold sold

(kg)

185

162

Gold sold

(oz)

5 948

5 208

Cash operating costs

(R/kg)

154 497

173 827

Operating profit

(R’000)

20 617

10 951

Capital expenditure

(R’000)

1 977

1 503

(32)

Gold production increased by 14% to 185kg, reflecting a 10% increase
in volume to 1 522 000t, above design capacity of 1 500 000t, and a
4% increase in recovered grade to 0.122g/t.

Improved grade was as a result of mining the Brand A dam’s higher-
grade bottom strip.

Cash operating costs were 11% lower at R154 497/kg, and a range
of measures are in process to reduce costs further. Cash operating
profit was 88% higher at R20.6 million due to higher production,
lower costs and a higher Rand gold price received.

Rock dumps

December September

Indicator

2009

2009 Variance

Tonnes

(‘000)

347

258

Grade

(g/t)

0.71

1.22

(41)

Gold produced

(kg)

248

314

(21)

Gold produced

(oz)

7 973

10 095

(21)

Gold sold

(kg)

248

314

(21)

Gold sold

(oz)

7 973

10 095

(21)

Cash operating costs

(R/kg)

170 339

104 898

(62)

Operating profit

(R’000)

23 862

42 723

(44)

No accidents were reported for the quarter.

While volume increased by 35% to 347 000t, grade was 41% lower

at 0.71g/t. Gold production was 21% lower however, mainly because

93kg of gold from the Winkelhaak plant mill clean-up was reported in

the September quarter.

Cash operating costs were substantially higher in the quarter under

review as a consequence at R170 339/kg, and cash operating profit

was 44% lower at R23.9 million.

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

The Bambanani ore reserve grade is to a large degree a reflection of

the future extraction of the high grade Basal Reef shaft pillar. All the

on reef development is currently taking place in the sub-shaft area

where the grades are lower than the average reserve grade. There has

however been an improvement in the quarter to quarter development

grades in line with expectations. No on-reef development was planned

in the high grade shaft pillar during the quarter.

Doornkop

There was a further quarter on quarter increase in the South Reef

development grades and it is in line with the reserve grade. There

was however a quarter on quarter drop in the grade in the Kimberley

reef due to facies changes as well as partial exposure of the channel

in certain areas.

Elandsrand

Good grades in line with expectations were intersected in both the
old and new mine resulting in a quarter on quarter improvement in
development grade.

Evander

There was a significant quarter on quarter improvement in grade
as the raises advanced from the edge of the payshoot into the
payshoot. Increase in grades expected to continue.

Joel

Most of the on reef development is directed towards 129 level in
the form of winzes (down dip on reef development). Good grades
continues to be intersected which resulted in an increase in
quarter on quarter development grades. The rolling four-quarter
development grade remains higher than the reserve grade.

International operations

Hidden Valley

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

21 514 ounces. Construction of the 5km overland conveyor linking

the Hidden Valley pit with the processing plant was completed

during the quarter.

The processing plant ramp up continued during the quarter with ore

sourced from the Hamata and Hidden Valley pits and mill throughput

reaching 85% of design capacity in December. The processing plant

is expected to reach full production during the March 2010 quarter

following commissioning of the flotation circuit.

Hidden Valley will be fully commissioned for mining and process

throughput by the end of January 2010 but the process plant profile

for full recovery of both gold and silver will not be finalised until the

end of February. The original design capacity for the Hidden Valley

mine and processing plant will be achieved during the fourth quarter

of FY10.

Ore Reserve Block Grades v Development Grades

Ore Reserve block grade
(cmg/t)

Rolling 4 quarter average
development grade
(cmg/t)

Current quarter
development grade
(cmg/t)

Results for the second quarter and six months
ended 31 December 2009

Exploration

Evander 6 shaft and Twistdraai (Joint Venture with Taung)

Harmony’s objective for these areas is to complete a bankable

feasibility study of the two areas within five years. As soon as

we have received permission from the Department of Mineral

Resources (DMR) to begin the surface drilling, we will commence

with the drilling process.

A study entailing a detailed mine plan and schedule of the

Evander 6 shaft was completed during the quarter. The purpose of

the study is to optimise the extraction of the orebody and improve

the project financials.

Evander South surface drilling

Good progress was made with the drilling programme during the

quarter. A total of 1 420 metres were drilled and the drilling was

completed in October 2009. A total of 24 671 metres were drilled,

which was 2% above the planned 24 072 metres. Demobilisation

of rigs and rehabilitation of the drilling sites concluded the drilling

programme. Costs were 3% under budget.

Pleasing sampling results for 15 boreholes were received during the

quarter. A preliminary update of the geological (datamine) model

using the results obtained to date was completed towards the end

of December 2009.

Poplar

The Poplar project refers to the region in the north of the Evander

basin. We plan to continue with the drilling programme and to

re-evaluate the ore resource.

The Phase 1 programme will involve the drilling of 25 holes (19 500 m).

Eight holes from the previous programme, which had been piloted,

will be re-drilled (7 800 m) and a further 17 holes (11 700 m) drilled.

The programme is scheduled to take 12 months to complete.

Waste Metres / Reef Metres / Ave cmg/t

Masimong

Masimong had a disappointing quarter in terms of on-reef

development due to an underperformance on the ‘B’ Reef drives

and the grades in the Basal Reef development also being below

expectation.

Phakisa

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

southern areas. Grades have however improved quarter on quarter

and will further improve as the development progress towards the

north and more reef is exposed within the major north west- to

south east-trending Basal Reef payshoot.

Target (narrow reef mining)

Development sampling is reported only on those raises being

developed for “gold” as distinct from those raises developed on

selected horizons to “de-stress” future massive stopes. Figures

represent only 35 metres (7 sections) of Raise and these values are

not really representative of the narrow reef grade, nor indeed of the

mine as a whole. It is important to note that, after a period of limited

raise development, raise metres are on the increase at Target and

next quarter’s results ought to be a little more representative.

Tshepong

There was a quarter on quarter decrease in development grades as a

large proportion of the on-reef development is currently taking place

on the edges of the Tshepong payshoot. The development grade is

expected to improve as new raise lines becomes available within the

deeper extension of the payshoot in the Sub 66 and Sub 71 decline

areas and the B reef development moves into high grade channels.

Virginia

In general, the development at Unisel produced good results,

especially on the Basal reef and Leader reef development.

Middle reef grades were disappointing due to areas of increased

channelisation that was intersected The development grades were

lower than expected at Merriespruit and Harmony 2.

Joel North surface drilling – exploration progress

The current surface drilling programme at Joel North involves drilling
six holes to a depth of between 1 300m and 1 400m to the north of
the current Joel mine workings to allow an upgrade of the resource
between 129 level and 137 level.

During the quarter, a fourth diamond drilling machine was brought
on site. LB24 was completed in November 2009 with five deflections
having been drilled. LB23 has also intersected reef and the
deflections are now being drilled. LB23 is expected to be completed
by the end of January 2010, whilst LB25 and LB27 will be finished
early in February 2010. LB22 and LB28 will continue into March 2010.

The programme is about 70% complete and projected completion is
scheduled for April 2010.

Project Saints

Project Saints entails the re-treating of surface tailings in the Free
State at a rate of 1 million tonnes per month. During the quarter
a final feasibility gate-keeping session was held to consider the
outstanding items from the previous feasibility gate-keeping.
Re-drilling where necessary was completed, assays received and
the models were updated.

Phoenix expansion

The current Phoenix project (Saaiplaas plant) has been operating for
almost three years and involves the re-treating of 500 000 tpm of
tailings. It is planned to increase the tonnage throughput at Phoenix
by 400 000 tpm to 900 000 tpm. At the increased throughput rate,
the life of the project is 12 years after which deposition capacity
will run out. Further resources will be available to be treated if more
deposition capacity is permitted within this 12-year period.

Project Libra

With regards to Project Libra, the re-treating of surface tailings at
a rate of 1 million tonnes per month from the Winkelhaak, Leslie
and Kinross tailings dams at Evander, the start of the Environmental
Impact Assessment (EIA) study has been postponed due to a final
tailings deposition site not having been determined.

During the quarter under review dams were re-drilled and the
samples assayed. These processes are continuing. Final assay and
recovery results are due and thereafter the optimal way to mine the
dams will be determined and a production schedule drawn up.

Project TPM

During the quarter, the pilot flotation plant was erected and
commissioned. The primary aim of the plant is to confirm sulphur
recoveries and to optimise the reagent suite for the proposed
TPM plant using live feed from the Harmony 1 plant.

Good progress on the EIA, which is due for submission in March
2010, was made during the December 2009 quarter. Furthermore,
a comprehensive set of procedures pertaining to uranium sampling
and assaying was also completed.

The only outstanding aspect of the pre-feasibility study is the
declaration of a resource and reserve. An application for capital
to proceed with the feasibility study and demonstration plant has
been put forward. The feasibility study will develop and present
a comprehensive and detailed description of the final optimised
process and plant design for the project.

St Helena 10 shaft

This project involves the re-opening of St Helena 10 shaft. During
the December quarter, the block plans incorporating the faulting
structure were prepared and a two dimensional model built.
A mining schedule was drawn up and more accurate capital and
operating costs were determined.

Harmony’s application for power at St Helena 8 and 10 shafts was
approved by Eskom during the quarter under review. We have
submitted an amended EMP to the DMR and are awaiting a response.

Exploration – Morobe JV (50%)

Morobe JV drilling during the quarter included testing of priority
target areas at Wafi-Golpu and ongoing resource definition at Hidden
Valley.

Wafi

At Wafi, drilling continued testing the epithermal gold mineralisation
at the Northern margin of the diatreme. Significant results include:

• WR318:

21.8m @ 1.45g/t Au, 9.02g/t Ag from 66m

17.8m @ 1.0g/t Au, 5.22g/t Ag from 110.2m

58m @ 1.07g/t Au, 5.27g/t Ag from 140m

35m @ 1.02g/t Au, 1.9g/t Ag from 304m

Also at Wafi, drilling at Miapilli to determine the extent and source
of the porphyry mineralisation continued with 2 holes completed
during the quarter.

Golpu West

Discovery drilling on the Golpu West prospect in PNG identified a new
zone of high grade porphyry copper gold mineralisation adjacent to
the existing Golpu resource. The intercepts include average gold
and copper grades significantly higher than the Golpu resource.
The extent of the Golpu West mineralisation remains open and the
existing resource is expected to grow significantly.

At Golpu, discovery drilling identified a new zone of high grade
porphyry copper gold mineralisation west of the existing Golpu
resource. Significant intercepts at Golpu West include:

– WR321: 331m @ 0.51g/t Au & 0.93% Cu from 694m including

155m @ 0.88g/t Au & 1.5% Cu from 868m

– WR327A: 478.4m @ 0.85g/t Au & 1.36% Cu from 506m including

155m @ 1.47g/t Au & 2.29% Cu from 691m

– WR328: 597m @ 0.57g/t Au & 0.96% Cu from 399m including

198m @ 1.13g/t Au & 1.88% Cu from 788m

The extent of Golpu West mineralisation remains open. Golpu West
is located off the western margin of the Golpu orebody, outside of
existing resource limits. Drilling to define the geometry and extent
of mineralisation is ongoing.

Also at Golpu, drilling has commenced at Golpu Deeps to test the
extent of the Golpu mineralisation at depth.

Financial review for the second quarter and six months
ended 31 December 2009

Operating results

(Rand/Metric)

Underground production – South Africa

Surface production – South Africa

Total SA

South Africa

Harmony

Bambanani

Doornkop

Elandsrand

Evander

Joel

Masimong

Phakisa

Target Tshepong

Virginia

Underground

Kalgold

Phoenix

Dumps

Surface

Other

Total

PNG*

Total

Ore milled

– t’000

Dec-09

123

148

235

245

112

235

191

396

471

2 243

423

1 522

347

2 292

–

4 535

–

4 535

Sep-09

147

130

260

259

136

234

193

418

544

2 392

452

1 382

258

2 092

–

4 484

–

4 484

Gold produced

– kg

Dec-09

932

490

1 387

1 057

591

1 242

350

791

1 692

1 585

10 117

350

185

248

783

–

10 900

669

11 569

Sep-09

946

500

1 625

1 239

515

1 359

260

909

1 703

1 668

10 724

415

162

314

891

–

11 615

11 714

Yield

– g/tonne Dec-09

7.58

3.31

5.90

4.31

5.28

5.29

4.02

4.14

4.27

3.37

4.51

0.83

0.12

0.71

0.34

–

2.40

–

2.40

Sep-09

6.44

3.85

6.25

4.78

3.79

5.81

3.66

4.71

4.07

3.07

4.48

0.92

0.12

1.22

0.43

–

2.59

–

2.59

Cash operating costs

– R/kg

Dec-09

179 746

198 561

199 147

249 411

167 232

142 754

216 006

182 513

162 528

241 214

193 544

185 666

154 497

170 339

173 447

–

192 101

–

192 101

Sep-09

199 533

171 476

182 729

226 699

198 792

137 986

222 000

166 448

168 445

249 947

191 627

172 831

173 827

104 898

149 072

–

188 362

–

188 362

Cash operating costs

– R/tonne Dec-09

1 362

657

1 175

1 076

882

754

869

756

694

812

873

154

122

–

462

–

462

Sep-09

1 284

660

1 142

1 084

753

801

813

784

686

766

859

159

128

–

488

–

488

Gold sold

– kg

Dec-09

969

517

1 488

1 158

615

1 227

364

733

1 761

1 566

10 398

393

185

248

826

–

11 224

416

11 640

Sep-09

973

500

1 433

1 203

529

1 349

268

955

1 751

1 656

10 617

378

162

314

854

–

11 471

–

11 471

Revenue

(R’000)

Dec-09

256 264

138 750

391 228

308 338

163 340

324 391

96 375

195 183

465 169

414 601

2 753 639

102 880

49 199

66 106

218 185

–

2 971 824

–

2 971 824

Sep-09

233 738

120 432

349 650

290 373

127 680

323 889

64 293

219 345

420 604

398 125

2 548 129

83 694

39 111

75 661

198 466

–

2 746 595

–

2 746 595

Cash operating costs (R’000)

Dec-09

167 523

97 295

276 217

263 627

98 834

177 301

75 602

144 368

274 997

382 324

1 958 088

64 983

28 582

42 244

135 809

–

2 093 897

–

2 093 897

Sep-09

188 758

85 738

296 935

280 880

102 378

187 523

57 720

151 301

286 862

416 911

2 055 006

71 725

28 160

32 938

132 823

–

2 187 829

–

2 187 829

Inventory movement (R’000)

Dec-09

8 772

10 029

13 964

21 345

5 077

(2 620)

3 884

4 189

14 126

(6 036)

72 730

5 512

–

5 512

–

78 242

–

78 242

Sep-09

4 347

16 158

(16 189)

(7 387)

2 358

(1 793)

1 329

8 265

6 606

(4 288)

9 406

(2 789)

–

(2 789)

–

6 617

–

6 617

Operating costs

(R’000)

Dec-09

176 295

107 324

290 181

284 972

103 911

174 681

79 486

148 557

289 123

376 288

2 030 818

70 495

28 582

42 244

141 321

–

2 172 139

–

2 172 139

Sep-09

193 105

101 896

280 746

273 493

104 736

185 730

59 049

159 566

293 468

412 623

2 064 412

68 936

28 160

32 938

130 034

–

2 194 446

–

2 194 446

Cash operating proﬁ t

(R’000)

Dec-09

79 969

31 426

101 047

23 366

59 429

149 710

16 889

46 626

176 046

38 313

722 821

32 385

20 617

23 862

76 864

–

799 685

–

799 685

Sep-09

40 633

18 536

68 904

16 880

22 944

138 159

5 244

59 779

127 136

(14 498)

483 717

14 758

10 951

42 723

68 432

–

552 149

–

552 149

Capital expenditure

(R’000)

Dec-09

27 906

78 720

124 700

54 363

32 422

45 014

137 917

76 888

57 462

47 400

682 792

1 786

1 977

–

3 763

24 793

711 348 180 559

891 907

Sep-09

23 019

72 766

111 325

51 651

17 809

38 866

127 689

83 710

71 169

51 557

649 561

1 811

1 503

–

3 314

13 456

666 331

248 784

915 115

* Production and sales statistics for Hidden Valley are shown for information purposes. The mine is in a build-up phase and revenue and cost are currently

capitalised until commercial levels of production are reached.

Results for the second quarter and six months
ended 31 December 2009

CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

Note

R million

Continuing operations 2 971 2 747 3 146 5 718 5 828 11 496

Cost of sales 2 (2 656) (2 604) (2 385) (5 260) (4 762) (9 836)

Production cost (2 172) (2 195) (2 033) (4 367) (3 907) (7 657)

Amortisation and depreciation (321) (350) (310) (671) (618) (1 467)

(Impairment)/reversal of impairment
of assets (104) – 1 (104) (151) (484)

Employment termination and
restructuring costs (3) – (16) (3) (28) (39)

Other items (56) (59) (27) (115) (58) (189)

Gross proﬁt 315 143 761 458 1 066 1 660

Corporate, administration and
other expenditure (116) (88) (92) (204) (183) (362)

Exploration expenditure (50) (60) (85) (110) (137) (289)

Proﬁt/(loss) on sale of
property, plant and equipment 3 1 (80) 4 459 965

Other (expenses)/income – net (20) (73) 159 (93) 145 (101)

Operating proﬁt/(loss) 132 (77) 663 55 1 350 1 873

Proﬁt/(loss) from associates 25 31 (52) 56 (51) 12

Proﬁt on sale of investment in associate – – – – 1 1

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

Fair value movement of listed investments – – (116) – (116) (101)

Proﬁt on sale of listed investments 3 2 – 5 – –

Impairment of investments – (2) – (2) – –

Investment income 54 71 107 125 185 444

Finance cost (37) (35) (63) (72) (149) (212)

Proﬁt/(loss) before taxation 177 (10) 539 167 1 108 1 905

Taxation (59) (19) (217) (78) (454) (196)

Net proﬁt/(loss) from
continuing operations 118 (29) 322 89 654 1 709

Discontinued operations 3

Proﬁt from discontinued operations – – 994 – 1 064 1 218

Net proﬁt/(loss) 118 (29) 1 316 89 1 718 2 927

Earnings/(loss) per ordinary share (cents) 4

– Earnings/(loss) from continuing operations 28 (7) 80 21 161 413

– Earnings from discontinued operations – – 244 – 263 294

Total earnings/(loss) per
ordinary share (cents) 28 (7) 324 21 424 707

Diluted earnings/(loss) per
ordinary share (cents) 4

– Earnings/(loss) from continuing operations 28 (7) 79 21 161 411

– Earnings from discontinued operations – – 244 – 261 293

Total diluted earnings/(loss) per
ordinary share (cents) 28 (7) 323 21 422 704

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

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

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

R million

Net proﬁ t/(loss) for the period

118

(29)

1 316

1 718

2 927

Attributable to:

Owners of the parent

118

(29)

1 316

1 718

2 927

Non-controlling interest

–

Other comprehensive (loss)/income for the period,

net of income tax

(51)

(115)

(36)

(27)

(450)

Foreign exchange translation

(57)

(208)

(38)

(89)

(497)

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

(4)

Total comprehensive income/(loss) for the period

(14)

1 201

1 691

2 477

Attributable to:

Owners of the parent

(14)

1 201

1 691

2 477

Non-controlling interest

–

Results for the second quarter and six months
ended 31 December 2009

CONDENSED CONSOLIDATED BALANCE SHEET (Rand)

31 December

30 September

30 June

31 December

2009

2008

(Unaudited)

(Audited)

Note

R million

ASSETS

Non-current assets

Property, plant and equipment

28 862

28 457

27 912

27 786

Intangible assets

2 217

2 218

2 224

2 223

Restricted cash

167

165

161

169

Restricted investments

1 697

1 668

1 640

1 567

Investments in ﬁ nancial assets

Investments in associates

385

360

329

228

Inventories

–

Trade and other receivables

33 499

32 979

32 398

32 057

Current assets

Inventories 5 1 103 1 147 1 035 898

Income and mining taxes 55 45 45 108

Trade and other receivables 1 108 838 885 2 732

Restricted cash 6 280 – – –

Cash and cash equivalents 808 1 094 1 950 1 645

3 354 3 124 3 915 5 383

Assets of disposal groups classiﬁ ed as held-for-sale 3 – – – 407

3 354 3 124 3 915 5 790

Total assets 36 853 36 103 36 313 37 847

EQUITY AND LIABILITIES

Share capital and reserves

Share capital 28 096 28 093 28 091 27 126

Other reserves 375 388 339 671

Retained earnings/(accumulated loss) 971 853 1 095 (114)

29 442 29 334 29 525 27 683

Non-current liabilities

Deferred Tax 3 317 3 265 3 251 3 699

Provision for environmental rehabilitation 1 612 1 564 1 530 1 189

Retirement beneﬁ t obligation and other provisions 167 166 166 153

Borrowings 7 565 108 110 188

5 661 5 103 5 057 5 229

Current liabilities

Borrowings 7 460 260 252 2 671

Trade and other payables 1 279 1 385 1 460 1 613

Income and mining taxes 11 21 19 273

1 750 1 666 1 731 4 557

Liabilities of disposal groups classiﬁ ed as held-for-sale 3 – – – 378

1 750 1 666 1 731 4 935

Total equity and liabilities 36 853 36 103 36 313 37 847

Number of ordinary shares in issue 426 079 492 426 024 653 425 986 836 417 637 697

Net asset value per share (cents) 6 910 6 886 6 931 6 628

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand)

Retained

earnings/

Other

(accumulated

capital

reserves

loss)

Total

Note

R million

Balance – 30 June 2009

28 091

339

1 095

29 525

Issue of shares

–

Share-based payments

–

Comprehensive income for the period

–

(36)

Dividends paid

–

(213)

Balance as at 31 December 2009

28 096

375

971

29 442

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

Issue of shares 1 231 – – 1 231

Share-based payments – 22 – 22

Comprehensive income for the period – (27) 1 718 1 691

Balance as at 31 December 2008 27 126 671 (114) 27 683

Results for the second quarter and six months
ended 31 December 2009

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

R million

Cash ﬂ ow from operating activities

Cash generated by operations

183

225

1 155

408

1 825

2 813

Interest and dividends received

112

120

194

457

Interest paid

(11)

(9)

(62)

(20)

(174)

(280)

Income and mining taxes paid

(34)

(25)

(142)

(59)

(143)

(704)

Cash generated by operating activities

190

259

1 063

449

1 702

2 286

Cash ﬂ ow from investing activities

(Increase)/decrease in restricted cash

(283)

(3)

(286)

(90)

(83)

Net proceeds on disposal of listed investments

–

Net (additions to)/disposal of property,

plant and equipment

(890)

(907)

(840)

(1 797)

(42)

979

Other investing activities

(3)

(79)

Cash (utilised)/generated by investing activities

(1 147)

(887)

(763)

(2 034)

(58)

817

Cash ﬂ ow from ﬁ nancing activities

Borrowings raised

686

–

686

–

Borrowings repaid

(18)

(7)

(698)

(25)

(1 286)

(3 738)

Ordinary shares issued – net of expenses

980

988

1 953

Dividends paid

–

(213)

–

(213)

–

Cash generated/(utilised) by ﬁ nancing activities

671

(218)

282

453

(298)

(1 785)

Foreign currency translation adjustments

–

(10)

(122)

(10)

(115)

217

Net (decrease)/increase in cash and cash equivalents

(286)

(856)

460

(1 142)

1 231

1 535

Cash and cash equivalents – beginning of period

1 094

1 950

1 186

1 950

415

Cash and cash equivalents – end of period

808

1 094

1 646

808

1 646

1 950

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2009

Accounting policies

Basis of accounting

The condensed consolidated interim financial statements for the period ended 31 December 2009 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 2009. These condensed consolidated interim 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 2009.

Cost of sales

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

R million

Production costs

2 172

2 195

2 033

4 367

3 907

7 657

Amortisation and depreciation

321

350

310

671

618

1 467

Impairment/(reversal of impairment) of assets

104*

–

(1)

104*

151

484

Provision for rehabilitation costs

Care and maintenance cost of restructured shafts

Employment termination and restructuring costs

–

Share-based payments

113

Provision for post-retirement benefits

–

Total cost of sales

2 656

2 604

2 385

5 260

4 762

9 836

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

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

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

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

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

2009 quarter, it was decided that further drilling at the site to define the orebody would enhance the selling potential of the operation. As a

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

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

taking this change into account.

Earnings/(loss) per ordinary share

Earnings/(loss) per ordinary share is calculated on the weighted average number of ordinary shares in issue for the quarter ended 31 December

2009: 425.9 million (30 September 2009: 425.9 million, 31 December 2008: 406.8 million), and the six months ended 31 December 2009:

425.9 million (31 December 2008: 405.0 million) and the year ended 30 June 2009: 414.1 million.

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

quarter ended 31 December 2009: 427.5 million (30 September 2009: 427.2 million, 31 December 2008: 409.1 million), and the six months

ended 31 December 2009: 427.4 million (31 December 2008: 407.1 million) and the year ended 30 June 2009: 416.0 million.

Results for the second quarter and six months
ended 31 December 2009

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹ 31 December 31 December¹

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

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

Basic earnings/(loss)

(7)

324

424

707

Fully diluted earnings/(loss)

(7)

323

422

704

Headline earnings/(loss)

(12)

121

145

262

– from continuing operations

(12)

105

239

– from discontinued operations

–

R million

Reconciliation of headline earnings/(loss):

Continuing operations

Net profit/(loss)

118

(29)

322

654

1 709

Adjusted for (net of tax):

(Profit)/loss on sale of property, plant and equipment

(2)

(1)

(3)

(490)

(975)

Profit on sale of listed investments

(3)

(1)

–

(4)

–

Fair value movement of listed investments

–

Foreign exchange gain reclassified from equity

–

(22)

–

(22)

–

(384)

Profit on sale of associate

–

(1)

Impairment of investment in associates

–

112

Impairment of investments

–

Impairment/(reversal of impairment)

of property, plant and equipment

–

(1)

151

457

Headline earnings/(loss)

207

(51)

399

156

427

989

Discontinued operations

–

994

–

1 064

1 218

Adjusted for (net of tax):

Profit on sale of property, plant and equipment

–

(901)

–

(901)

(1 121)

Headline earnings

–

163

Total headline earnings/(loss)

207

(51)

492

156

590

1 086

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

Inventories

During the quarter ended 31 December 2009, the Group concluded two separate purchase agreements with Pamodzi Gold Free State

(Proprietary) Limited (In Provisional Liquidation) (Pamodzi), for the purchase of a waste rock dump and a gold plant to the value of

R120 million. The Group’s intention is to break up the plant and extract the gold in lock-up. The portion of inventory that is expected to be

recovered more than twelve months after balance sheet date has been classified as non-current.

Restricted cash

The Group entered into two separate purchase agreements with Pamodzi for the purchase of Pamodzi’s Free State North and South Assets

for a total consideration of R280 million.

The Group had an obligation in terms of the North and South agreements to pay, at the conclusion of the later of the waste rock dump and

plant agreements, an amount equal to the purchase consideration into an escrow account as the North and South sale of assets agreements

were not yet unconditional on 31 December 2009. The escrow account is an interest-bearing trust account on which the interest accrues to

the benefit of the Group.

Borrowings

31 December

30 September

30 June

31 December

2009

2008

(Unaudited)

(Audited)

R million

Total long-term borrowings

565

108

110

188

Total current portion of borrowings

460

260

252

2 671

Total borrowings

(1) (2)

1 025

368

362

2 859

(1) On 11 December 2009, the Company entered into a loan facility with Nedbank Limited, comprising 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 five years. The Revolving Credit Facility is repayable
after three years. The Group drew down R650 million of the Term Facility during December 2009.

(2) Included in the borrowings is R102 million (September 2009: 104 million; June 2009: R106 million; December 2008: R198 million) owed to

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

31 December

30 September

30 June

31 December

2009

2008

(Unaudited)

(Audited)

R million

Due within one year

Due between one and five years

156

105

107

110

219

Future finance charges

(3)

(4)

(21)

Total future minimum lease payments

102

104

106

198

Dividend declared

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

31 December

30 September

30 June

31 December

2009

2008

(Unaudited)

(Audited)

Dividend declared (R million)

–

213

–

Number of shares in issue (thousands)

426 079

426 025

425 987

417 638

Dividend per share (cents)

–

Commitments and contingencies

31 December

30 September

30 June

31 December

2009

2008

(Unaudited)

(Audited)

R million

Capital expenditure commitments

Contracts for capital expenditure

411

528

478

692

Authorised by the directors but not contracted for

1 771

1 829

734

1 689

2 182

2 357

1 212

2 381

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

Contingent liability

Class action.

On 18 April 2008, Harmony Gold Mining Company Limited was made aware that it has been named or may be named as a

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

During January 2009, the plaintiff filed an Amended Complaint with the Court. Subsequently, the Company filed a Motion to Dismiss all claims
asserted in the Class Action Case with the Court. The plaintiffs have filed an opposing response and the Company has since replied to that
response. It is not possible to predict with certainty when the Court will rule on the Motion of Dismiss as the timing of the ruling is entirely
within the discretion of the Court. It is currently not possible to estimate if there will be a financial effect, or what that effect might be.

Results for the second quarter and six months
ended 31 December 2009

10. Subsequent events

In January 2010, the sale of Big Bell Operations (Proprietary) Limited, an operation in Western Australia, was concluded, in which the Group
received an amount of AU$3.0 million and the release on performance bonds of AU$3.1 million.

11. Segment report

The segment report follows on page 25.

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

31 December 31 December

2009

2008

R million

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

Revenue from:

Discontinued operations

–

614

Production costs from:

Discontinued operations

–

447

Reconciliation of cash operating profit to gross profit:

Total segment revenue

5 718

6 442

Total segment production costs

(4 367)

(4 354)

Cash operating profit as per segment report

1 351

2 088

Less: Discontinued operations

–

(167)

Cash operating profit as per segment report

1 351

1 921

Cost of sales items other than production costs

(893)

(855)

Amortisation and depreciation

(671)

(618)

Impairment of assets

(104)

(151)

Employment termination and restructuring costs

(3)

(28)

Share-based payments

(72)

(22)

Rehabilitation costs

(8)

(10)

Care and maintenance costs of restructured shafts

(34)

(25)

Provision for post-retirement benefits

(1)

Gross profit as per income statements*

458

1 066

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

Property, plant and equipment not allocated to a segment

Mining assets

755

569

Undeveloped property

5 386

5 168

Other non-mining assets

Less:

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

–

(280)

6 207

5 508

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

13. Review report

The condensed consolidated financial statements for the six months ended 31 December 2009 on pages 16 to 26 have been reviewed
in accordance with International Standards on Review Engagements 2410 – “ Review of interim financial information performed by the
Independent Auditors of the entity ” by PricewaterhouseCoopers Inc. Their unqualified review report is available for inspection at the
Company’s registered office.

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 (Rand/Metric)

Cash

production

operating

Mining

Capital

Kilograms

Tonnes

Revenue

cost

proﬁt

assets

expenditure

produced

milled

R million

kg*

t’000*

Operations

South Africa

Underground

Bambanani

490

369

121

680

1 878

270

Doornkop

259

209

2 699

151

990

278

Elandsrand

741

571

170

2 894

236

3 012

495

Evander

599

559

906

106

2 296

504

Masimong

648

360

288

711

2 601

469

Phakisa

161

139

3 898

266

610

158

Target

414

308

106

2 301

161

1 700

384

Tshepong

886

583

303

3 627

129

3 395

814

Virginia

813

789

841

3 253

1 015

Joel

291

209

135

1 106

248

Surface

All surface operations

(1)

416

271

145

141

1 674

4 384

Total South Africa

5 718

4 367

1 351

18 833

1 378

22 515

9 019

International

Papua New Guinea

(2)

–

3 805

429

768

–

Mount Magnet

–

768

–

Total international

–

3 822

429

–

Total operations

5 718

4 367

1 351

22 655

1 807

23 283

9 019

Reconciliation of the segment

information to the consolidated

income statement and

balance sheet (refer to note 12)

–

6 207

5 718

4 367

28 862

Notes:

(1) Includes Kalgold, Phoenix and Dumps.

(2) Production statistics for Hidden Valley are shown for information purposes. The mine is in a build-up phase and revenue and cost are currently capitalised until commercial

levels of production are reached.

* Production statistics are not reviewed.

Results for the second quarter and six months
ended 31 December 2009

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

Cash

Production

operating

Mining

Capital

Kilograms

Tonnes

Revenue

cost

proﬁt

assets

expenditure

produced

milled

R million

kg*

t’000*

Continuing operations

South Africa

Underground

Bambanani

509

342

167

695

2 116

264

Doornkop

157

138

2 338

217

589

253

Elandsrand

720

565

155

2 552

211

2 725

503

Evander

804

522

282

1 208

111

3 178

610

Masimong

592

336

256

663

2 445

457

Phakisa

3 406

237

244

Target

296

250

2 354

166

1 199

318

Tshepong

903

501

402

3 613

117

3 709

697

Virginia

1 043

758

285

924

4 313

1 149

Joel

271

190

127

1 115

275

Surface

All surface operations

(1)

473

262

211

150

1 921

4 198

Total South Africa

5 828

3 907

1 921

18 030

1 284

23 554

8 790

International

Papua New Guinea

–

4 008

933

–

Mount Magnet

–

240

–

Total international

–

4 248

933

–

Total continuing operations

5 828

3 907

1 921

22 278

2 217

23 554

8 790

Discontinued operations

Cooke operations

614

447

167

–

2 500

1 287

Total discontinued operations

614

447

167

–

2 500

1 287

Total operations

6 442

4 354

2 088

22 278

2 304

26 054

10 077

Reconciliation of the segment

information to the consolidated

income statement and

balance sheet (refer to note 12)

(614)

(447)

5 508

5 828 3 907 27 786

Notes:

(1) Includes Kalgold, Phoenix and Dumps.

* Production statistics are not reviewed.

Harmony Quarterly Report 2009 27

Results for the

second quarter and six months ended

31 December 2009

(US$)

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

Results for the

second quarter and six months

ended 31 December 2009

Financial review for the second quarter and six months
ended 31 December 2009

OPERATING RESULTS

(US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Total SA

South Africa

Harmony

Bambanani

Doornkop

Elandsrand

Evander

Joel

Masimong

Phakisa

Target Tshepong

Virginia

Underground

Kalgold

Phoenix

Dumps

Surface

Other

Total

PNG*

Total

Ore milled

– t’000

Dec-09

136

163

259

270

124

259

211

437

519

2 474

466

1 678

383

2 527

–

5 001

–

5 001

Sep-09

162

143

287

286

150

258

213

461

600

2 638

498

1 524

285

2 307

–

4 945

–

4 945

Gold produced

– oz

Dec-09

29 964

15 754

44 593

33 983

19 001

39 931

11 253

25 431

54 399

50 959

325 268

11 253

5 948

7 973

25 174

–

350 442

21 514

371 956

Sep-09

30 415

16 075

52 245

39 835

16 558

43 693

8 359

29 225

54 753

53 627

344 785

13 343

5 208

10 095

28 646

–

373 431

3 168

376 599

Yield

– oz/t

Dec-09

0.220

0.097

0.172

0.126

0.153

0.154

0.117

0.121

0.124

0.098

0.131

0.024

0.003

0.021

0.009

–

0.070

–

0.070

Sep-09

0.188

0.112

0.182

0.139

0.110

0.169

0.107

0.137

0.119

0.090

0.131

0.027

0.003

0.035

0.012

–

0.076

–

0.076

Cash operating costs

– $/oz

Dec-09

747

825

827

1 036

695

593

897

758

675

1 002

804

771

642

708

721

–

798

–

798

Sep-09

798

685

730

906

795

552

887

665

673

999

766

691

695

419

596

–

753

–

753

Cash operating costs

– $/t

Dec-09

165

142

130

106

105

106

–

Sep-09

150

133

126

100

–

Gold sold

– oz

Dec-09

31 154

16 622

47 840

37 231

19 773

39 449

11 703

23 566

56 617

50 348

334 303

12 635

5 948

7 973

26 556

–

360 859

13 375

374 234

Sep-09

31 283

16 075

46 072

38 677

17 008

43 371

8 616

30 704

56 296

53 242

341 344

12 153

5 208

10 095

27 456

–

368 800

–

368 800

Revenue

($’000)

Dec-09

34 225

18 530

52 249

41 179

21 814

43 323

12 871

26 067

62 124

55 371

367 753

13 740

6 571

8 829

29 140

–

396 893

–

396 893

Sep-09

30 037

15 477

44 933

37 315

16 408

41 622

8 262

28 188

54 051

51 162

327 455

10 755

5 026

9 723

25 504

–

352 959

–

352 959

Cash operating costs ($’000)

Dec-09

22 373

12 994

36 889

35 208

13 200

23 679

10 097

19 281

36 726

51 060

261 507

8 679

3 817

5 642

18 138

–

279 645

–

279 645

Sep-09

24 257

11 018

38 158

36 095

13 156

24 098

7 417

19 444

36 864

53 576

264 083

9 217

3 619

4 233

17 069

–

281 152

–

281 152

Inventory movement ($’000)

Dec-09

1 172

1 339

1 865

2 851

678

(350)

519

559

1 887

(806)

9 714

736

–

736

–

10 450

–

10 450

Sep-09

559

2 076

(2 080)

(949)

303

(230)

171

1 062

849

(551)

1 210

(358)

–

(358)

–

852

–

852

Operating costs

($’000)

Dec-09

23 545

14 333

38 754

38 059

13 878

23 329

10 616

19 840

38 613

50 254

271 221

9 415

3 817

5 642

18 874

–

290 095

–

290 095

Sep-09

24 816

13 094

36 078

35 146

13 459

23 868

7 588

20 506

37 713

53 025

265 293

8 859

3 619

4 233

16 711

–

282 004

–

282 004

Operating proﬁ t

($’000)

Dec-09

10 680

4 197

13 495

3 120

7 936

19 994

2 255

6 227

23 511

5 117

96 532

4 325

2 754

3 187

10 266

–

106 798

–

106 798

Sep-09

5 221

2 383

8 855

2 169

2 949

17 754

674

7 682

16 338

(1 863)

62 162

1 896

1 407

5 490

8 793

–

70 955

–

70 955

Capital expenditure

($’000)

Dec-09

3 727

10 513

16 654

7 260

4 330

6 012

18 419

10 269

7 674

6 330

91 188

239

264

–

503

3 311

95 002

24 114

119 116

Sep-09

2 958

9 351

14 306

6 638

2 289

4 995

16 409

10 757

9 146

6 625

83 474

233

193

–

426

1 729

85 629

31 971

117 600

* Production and sales statistics for Hidden Valley are shown for information purposes. The mine is in a build-up phase and revenue and cost are currently

capitalised until commercial levels of production are reached.

Results for the second quarter and six months
ended 31 December 2009

CONDENSED CONSOLIDATED INCOME STATEMENT (US$)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹ 31 December 31 December¹

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

US$ million

Continuing operations
Revenue

397

353

317

750

659

1 277

Cost of sales

(355)

(335)

(241)

(690)

(538)

(1 104)

Production cost

(290)

(282)

(205)

(572)

(442)

(850)

Amortisation and depreciation

(43)

(45)

(31)

(88)

(70)

(167)

Impairment of assets

(14)

–

(14)

(17)

(61)

Employment termination and restructuring costs

–

(2)

–

(3)

(4)

Other items

(8)

(3)

(16)

(6)

(22)

Gross proﬁt

121

173

Corporate, administration and other expenditure

(15)

(11)

(9)

(27)

(21)

(40)

Exploration expenditure

(7)

(8)

(14)

(15)

(32)

(Loss)/proﬁ t on sale of
property, plant and equipment

–

(8)

116

Other (expenses)/income – net

(2)

(9)

(13)

(3)

Operating proﬁ t/(loss)

(10)

153

214

Proﬁ t/(loss) from associates

(5)

(6)

Impairment of investment in associate

–

(13)

(14)

Fair value movement of listed investments

–

(12)

–

(13)

(10)

Proﬁ t on sale of listed investments

–

Investment income

Finance cost

(5)

(4)

(6)

(9)

(17)

(24)

Proﬁt/(loss) before taxation

(1)

125

216

Taxation

(8)

(2)

(22)

(10)

(51)

(23)

Net proﬁ t/(loss) from continuing operations

(3)

193

Discontinued operations
Proﬁ t from discontinued operations

–

100

–

120

118

Net proﬁt/(loss)

(3)

133

194

311

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

(1)

– Earnings from discontinued operations

–

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

(1)

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

(1)

– Earnings from discontinued operations

–

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

(1)

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

The currency conversion average rates for the quarter ended: December 2009: US$1 = R7.49 (September 2009: US$1 = R7.78, December 2008:
US$1 = R9.93)

The currency conversion average rates for the six months ended: December 2009: US$1 = R7.63 (December 2008: US$1 = R8.84)

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

Note on convenience translations

Except where speciﬁc statements have been extracted from the 2009 Annual Report, the requirements of IAS 21, The Effects of the Changes in
Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar ﬁ nancial statements presented on page 30 to 36.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (US$)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

US$ million

Net proﬁ t/(loss) for the period

(3)

133

194

311

Attributable to:

Owners of the parent

(3)

133

194

311

Non-controlling interest

–

Other comprehensive (loss)/income for the

period, net of income tax

(7)

(12)

(5)

(3)

111

Foreign exchange translation

(8)

(21)

(5)

(10)

105

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

(1)

–

Total comprehensive income/(loss) for the period

(2)

121

191

422

Attributable to:

Owners of the parent

(2)

121

191

422

Non-controlling interest

–

The currency conversion average rates for the quarter ended: December 2009: US$1 = R7.49 (September 2009: US$1 = R7.78, December 2008:
US$1 = R9.93)

The currency conversion average rates for the six months ended: December 2009: US$1 = R7.63 (December 2008: US$1 = R8.84)

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

Results for the second quarter and six months
ended 31 December 2009

CONDENSED CONSOLIDATED BALANCE SHEET (US$)

(Convenience translation)

31 December

30 September

30 June

31 December

2009

2008

(Unaudited)

(Audited)

(Unaudited)

US$ million

ASSETS

Non-current assets

Property, plant and equipment

3 916

3 774

3 614

2 988

Intangible assets

301

294

288

239

Restricted cash

Restricted investments

230

221

212

168

Investments in ﬁ nancial assets

Investments in associates

Inventories

–

Trade and other receivables

4 545

4 374

4 195

3 446

Current assets

Inventories

150

152

134

Income and mining taxes

Trade and other receivables

150

111

115

293

Restricted cash

–

Cash and cash equivalents

110

145

253

177

455

414

508

579

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

–

455 414 508 623

Total assets 5 000 4 788 4 703 4 069

EQUITY AND LIABILITIES

Share capital and reserves

Share capital 3 812 3 726 4 004 2 917

Other reserves 51 51 (72) 72

Retained earnings/(accumulated loss) 132 113 (108) (12)

3 995 3 890 3 824 2 977

Non-current liabilities

Deferred tax 450 433 421 398

Provisions for other liabilities and charges 219 207 198 128

Retirement beneﬁt obligation and other provisions 23 22 22 16

Borrowings 77 14 14 20

769 676 655 562

Current liabilities

Borrowings 62 34 33 287

Trade and other payables 173 185 189 173

Income and mining taxes 1 3 2 29

236 222 224 489

Liabilities of disposal groups classiﬁed as held-for-sale – – – 41

236 222 224 530

Total equity and liabilities 5 000 4 788 4 703 4 069

Number of ordinary shares in issue 426 079 492 426 024 653 425 986 836 417 637 697

Net asset value per share (cents) 937 913 898 713

Balance sheet for December 2009 converted at a conversion rate of US$1 = R7.37 (September 2009: R7.54, December 2008: R9.30).

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

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

(Convenience translation)

Retained

earnings/

Other

(Accumulated

capital

reserves

loss)

Total

US$ million

Balance – 30 June 2009

3 811

149

4 006

Issue of shares

–

Share-based payments

–

Comprehensive income for the period

–

(5)

Dividends paid

–

(29)

Balance as at 31 December 2009

3 812

132

3 995

Balance – 30 June 2008

2 784

(197)

2 660

Issue of shares

132

–

132

Share-based payments

–

Comprehensive income for the period

–

(3)

185

182

Balance as at 31 December 2008

2 916

(12)

2 976

The currency conversion closing rates for the six months ended December 2009: US$1 = R7.37 (December 2008: US$1 = R9.30)

Results for the second quarter and six months
ended 31 December 2009

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (US$)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2009

2008

2009

2008

2009

(Unaudited)

(Audited)

US$ million

Cash ﬂ ow from operating activities

Cash generated by operations

118

206

319

Interest and dividends received

Interest paid

(1)

(6)

(3)

(20)

(31)

Income and mining taxes paid

(5)

(3)

(14)

(8)

(16)

(85)

Cash generated by operating activities

107

192

254

Cash ﬂ ow from investing activities

(Increase)/decrease in restricted cash

(38)

–

(37)

(10)

(9)

Net proceeds on disposal of listed investments

–

Net (additions to)/disposal of property,

plant and equipment

(117)

(85)

(236)

(8)

111

Other investing activities

–

(8)

Cash (utilised)/generated by investing activities

(151)

(114)

(78)

(266)

(10)

Cash ﬂ ow from ﬁ nancing activities

Borrowings raised

–

Borrowings repaid

(2)

(1)

(100)

(3)

(176)

(427)

Ordinary shares issued – net of expenses

–

194

Dividends paid

–

(29)

–

(29)

–

Cash generated/(utilised) by ﬁ nancing activities

(30)

(2)

(77)

(233)

Foreign currency translation adjustments

–

Net (decrease)/increase in cash and cash equivalents

(35)

(108)

(143)

124

200

Cash and cash equivalents – beginning of period

145

253

143

253

Cash and cash equivalents – end of period

110

145

177

110

177

253

Operating activities translated at average rates for the quarter ended December 2009: US$1 = R7.49 (September 2009: US$1 = R7.78,
December 2008: US$1 = R9.93). Six months ended December 2009: US$1 = R7.63 (December 2008 : US$1 = 8.84)

Closing balance translated at closing rates of: December 2009: US$1 = R7.37 (September 2009: US$1 = R7.54, December 2008: US$1 = R9.30)

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

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 (US$/Imperial) (Unaudited)

(Convenience translation)

Cash

production

operating

Mining

Capital

Ounces

Tons

Revenue

cost

proﬁt

assets

expenditure

produced

milled

US$ million

t’000

Operations

South Africa

Underground

Bambanani

60 379

298

Doornkop

366

31 829

306

Elandsrand

393

96 838

546

Evander

123

73 818

556

Masimong

83 624

517

Phakisa

529

19 612

174

Target

312

54 656

424

Tshepong

116

492

109 152

898

Virginia

107

104

114

104 586

1 119

Joel

35 559

274

Surface

All surface operations

(1)

53 820

4 834

Total South Africa

750

572

178

2 554

181

723 873

9 946

International

Papua New Guinea

(2)

–

516

24 682

–

Mount Magnet

–

Total international

–

518

24 682

–

Total operations

750

572

178

3 072

237

748 555

9 946

Notes:

(1) Includes Kalgold, Phoenix and Dumps.

(2) Production statistics for Hidden Valley are shown for information purposes. The mine is in a build-up phase and revenue and cost are currently capitalised until commercial

levels of production are reached.

All income statement items, including capital expenditure, are converted at the currency conversion rate of US$1 = R7.63.

Mining assets are converted at the currency conversion rate of US$1 = R7.37.

Results for the second quarter and six months
ended 31 December 2009

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2008 (US$/Imperial) (Unaudited)

(Convenience translation)

Cash

production

operating

Mining

Capital

Ounces

Tons

Revenue

cost

proﬁt

assets

expenditure

produced

milled

US$ million

t’000

Continuing operations

South Africa

Underground

Bambanani

68 031

292

Doornkop

251

18 936

279

Elandsrand

274

87 610

555

Evander

130

102 175

672

Masimong

78 609

504

Phakisa

366

7 844

Target

253

38 549

351

Tshepong

102

388

119 247

768

Virginia

119

138 666

1 267

Joel

35 848

303

Surface

All surface operations

(1)

61 762

4 629

Total South Africa

659

442

217

1 937

146

757 277

9 693

International

Papua New Guinea

–

431

105

–

Mount Magnet

–

Total international

–

457

105

–

Total continuing operations

659

442

217

2 394

251

757 277

9 693

Discontinued operations

Cooke operations

–

80 377

1 419

Total discontinued operations

–

80 377

1 419

Total operations

730

494

236

2 394

261

837 654

11 112

Notes:

(1) Includes Kalgold, Phoenix and Dumps.

All income statement items, including capital expenditure, are converted at the currency conversion rate of US$1 = R8.84.

Mining assets are converted at the currency conversion rate of US$1 = R9.30.

DEVELOPMENT RESULTS (Metric)

Quarter ended December 2009

Channel

Reef

Sampled

Width

Value

Gold

(metres)

(cm’s)

(g/t)

(cmg/t)

Tshepong

Basal

516

500

7.12

134.10

954

B Reef

110

118

117.40

7.62

895

All Reefs

625

618

28.17

33.46

943

Phakisa

Basal

253

228

28.03

29.13

816

All Reefs

253

228

28.03

29.13

816

Bambanani

Basal

146.7

144

113.00

16.03

1 811

All Reefs

147

144

113.00

16.03

1 811

Doornkop

Kimberley Reef

295.6

234

361.38

1.98

716

South Reef

222.5

246

37.44

28.91

1 082

All Reefs

518

480

195.36

4.62

904

Elandsrand

VCR Reef

772.0

798

120.82

12.03

1 453

All Reefs

772

798

120.82

12.03

1 453

Target

Elsburg

93.5

139.00

22.56

3 136

All Reefs

139.00

22.56

3 136

Masimong

Basal

480.7

478

51.74

12.76

660

B Reef

25.6

–

All Reefs

506

478

51.74

12.76

660

Evander

Kimberley

725.1

690

98.03

13.70

1 343

All Reefs

725

690

98.03

13.70

1 343

Virginia

(incl. Unisel & Brand 3)

Basal

1 007.8

872

83.83

8.90

746

Leader

1 035.6

950

161.11

6.02

969

A Reef

244.2

238

86.37

7.77

671

Middle

107.5

159.78

4.64

741

All Reefs

2 395

2 134

121.15

6.91

837

Joel

Beatrix

854.5

867

114.00

12.06

1 375

All Reefs

855

867

114.00

12.06

1 375

Total
Harmony

Basal

2 404

2 222

55.83

15.23

850.55

Beatrix

855

867

114.00

12.06

1 375.00

Leader

1 036

950

161.11

6.02

969.22

B Reef

135

118

117.40

7.62

894.67

A Reef

244.2

238

86.37

7.77

671.24

Middle

107.5

159.78

4.64

740.65

Elsburg

93.5

139.00

22.56

3 136.00

Kimberley

1 020.7

924

164.72

7.19

1 184.24

South Reef

223

246

37.44

28.91

1 082.32

VCR

772

798

120.82

12.03

1 453.21

All Reefs

6 890

6 472

105.82

10.15

1 074

DEVELOPMENT RESULTS (Imperial)

Quarter ended December 2009

Channel

Reef

Sampled

Width

Value

Gold

(feet)

(inches)

(oz/t)

(in.oz/t)

Tshepong

Basal

1 692

1 640

3.00

3.65

B Reef

359

387

46.00

0.22

All Reefs

2 051

2 027

11.00

0.98

Phakisa

Basal

831

748

11.00

0.85

All Reefs

831

748

11.00

0.85

Bambanani

Basal

481

472

44.00

0.47

All Reefs

481

472

44.00

0.47

Doornkop

Kimberley Reef

970

768

142.00

0.06

South Reef

730

807

15.00

0.83

All Reefs

1 700

1 575

77.00

0.13

Elandsrand

VCR Reef

2 533

2 618

48.00

0.35

All Reefs

2 533

2 618

48.00

0.35

Target

Elsburg

307

115

55.00

0.65

All Reefs

307

115

55.00

0.65

Masimong

Basal

1 577

1 568

20.00

0.38

B Reef

–

All Reefs

1 661

1 568

20.00

0.38

Evander

Kimberley

2 379

2 264

39.00

0.40

All Reefs

2 379

2 264

39.00

0.40

Virginia

(incl. Unisel & Brand 3)

Basal

3 306

2 861

33.00

0.26

Leader

3 398

3 117

63.00

0.18

A Reef

801

781

34.00

0.23

Middle

353

243

63.00

0.13

All Reefs

7 858

7 002

48.00

0.20

Joel

Beatrix

2 803

2 844

45.00

0.35

All Reefs

2 803

2 844

45.00

0.35

Total
Harmony

Basal

7 887

7 289

22.00

0.44

9.77

Beatrix

2 803

2 844

45.00

0.35

15.79

Leader

3 398

3 117

63.00

0.18

11.13

B Reef

443

387

46.00

0.22

10.27

A Reef

801

781

34.00

0.23

7.71

Middle

353

243

63.00

0.13

8.50

Elsburg

307

115

55.00

0.65

36.01

Kimberley

3 349

3 032

65.00

0.21

13.60

South Reef

730

807

15.00

0.83

12.43

VCR

2 533

2 618

48.00

0.35

16.69

All Reefs

22 604

21 233

42.00

0.29

Results for the second quarter and six months
ended 31 December 2009

NOTES

Results for the second quarter and six months
ended 31 December 2009

CONTACT DETAILS

HARMONY GOLD MINING COMPANY LIMITED

Corporate Office

Randfontein Office Park
PO Box 2
Randfontein, 1760
South Africa
Corner Main Reef Road
and Ward Avenue
Randfontein, 1759
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)

F Abbott (Executive Director)

J A Chissano*

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

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

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

(* non-executive)

(1 Mocambican)

(+ US/Mali Citizen)

Investor Relations Team

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

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

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

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
16th Floor, 11 Diagonal Street
Johannesburg, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone : +27 86 154 6572
Fax : +27 86 674 3260

United Kingdom Registrars

Capita Registrars
The Registry
34 Beckenham Road
Bechenham
Kent BR3 4TU
United Kingdom
Telephone       :        +44 (0) 20 8639 3399
                              0871 664 0300 (UK)
Fax                :        +44 (0) 20 8639 2220

ADR Depositary

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

Sponsor

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

Trading Symbols

JSE Limited                                            HAR
New York Stock Exchange, Inc.                HMY
NASDAQ                                                HMY
London Stock Exchange Plc                      HRM
Euronext, Paris                                        HG
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

W2CF07873

SIGNATURES

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

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

Dated:

February 8, 2010

Harmony Gold Mining Company Limited

By:

/s/

Hannes Meyer

Name:

Hannes Meyer

Title: Financial Director