NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
1
. ACCOUNTING POLICIES
Basis of accounting
The condensed consolidated financial statements for the year ended 30 June 2019 are prepared in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act no. 71 of 2008 of South Africa. The Listings Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34
Interim Financial Reporting
. The accounting policies applied in the preparation of the condensed consolidated financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements except for the changes discussed below.
The group adopted IFRS 15
Revenue from Contracts with Customers
and
IFRS 9
Financial Instruments
on 1 July 2018
. The group has also changed its accounting policy in respect of by-product income.
The impact of the changes are not material and are disclosed below.
No other standards, amendments or interpretations became effective during the current reporting period that had a material impact on the group.
An adjustment was made to the comparative figure for Property, plant and equipment, Intangible assets and Deferred tax liability related to the purchase price allocation for Moab Khotsong as part of the measurement period. Refer to note
8
for detail.
Impact of the adoption of IFRS 15 –
Revenue from Contracts with Customers
IFRS 15 establishes a single comprehensive five-step model to account for revenue arising from contracts with customers and is based on the core principle that revenue is recognised when control of a good or service transfers to a customer. It is effective for annual periods beginning on or after 1 January 2018. Harmony adopted the standard on 1 July 2018 under the full retrospective approach. The impact of adoption of the new standard did not have an impact on the group's accounting for revenue as discussed below:
Scope of IFRS 15
The group's contracts that are in scope of the new revenue standard include gold, silver and uranium contracts. Income derived from all of these products are presented in revenue.
Revenue measurement
Under IAS 18 revenue was measured at the fair value of the consideration received and discounted to the present value of consideration due if payment extended beyond normal credit terms. Historically payments have not extended beyond normal credit terms and the amount of revenue recognised equated to the transaction price.
Under IFRS 15, revenue is measured at the amount of consideration to which an entity expects to be entitled in exchange for transferring goods to a customer. The group's contracts do not contain elements of variable consideration, non-cash consideration or significant financing components and therefore the amount of revenue recognised equates to the transaction price. The group has not applied the practical expedient for significant financing components as there are none present in the group's contracts with customers.
Revenue recognition
Under IAS 18, revenue was recognised for the South African operations when the goods were delivered and a certificate of sale for gold and confirmation of transfer for uranium was issued. At Hidden Valley, the point of recognition was when the metal account was credited. This was taken to be the point in time at which the customer accepted the goods and the related risks and rewards of ownership transferred.
IFRS 15 requires revenue to be recognised when a customer obtains control of the goods. The group has assessed that the drivers for revenue recognition are unchanged as this is the point when control of the goods effectively transfers to the customer.
Hedge accounting
The effective portion of gains or losses on the derivatives designated as cash flow hedging items (forecast sales transactions) are recognised in revenue when the forecast sales transactions occur. The adoption of IFRS 15
Revenue from Contracts with Customers
and IFRS 9
Financial Instruments
did not have an impact on the amount or timing of the hedging gains or losses recognised in revenue.
Subsequent changes
Subsequent to the adoption of IFRS 15, the customer who bought gold and silver from Hidden Valley was changed and a new contract was entered into. The point at which control of the product transfers to this customer is when the metal is collected from Hidden Valley and a confirmation of collection is sent to and accepted by the customer.
Change in accounting policy - accounting for by-products
Previously, income from silver and uranium sales were considered by-product revenue and were classified as a credit to cost of sales. The increasing significance of by-product income following the acquisition of the additional Hidden Valley interest warrants the by-products to be considered an output of the group's ordinary activities and therefore income from these products are considered to be part of the group's revenue.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
1. ACCOUNTING POLICIES
continued
Basis of accounting
continued
Change in accounting policy - accounting for by-products
continued
The change in accounting policy results in an increase in revenue and a consequential increase in costs of sales and therefore does not have an impact on previously reported gross profit or loss.
The group has applied the change retrospectively to each prior reporting period presented in accordance with IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
|
|
|
|
|
Year
ended
|
|
Figures in million
|
30 June 2018
|
|
|
|
Revenue as previously reported
|
20 359
|
|
By-product revenue
|
93
|
|
|
|
Revenue (restated)
|
20 452
|
|
|
|
Cost of sales as previously reported
|
23 503
|
|
By-product revenue
|
93
|
|
|
|
Cost of sales (restated)
|
23 596
|
|
Impact of the adoption of IFRS 9 –
Financial Instruments
IFRS 9 replaces IAS 39,
Financial Instruments: Recognition and Measurement
and is effective for annual periods beginning on or after 1 January 2018. On 1 July 2018 management classified its financial instruments into the appropriate IFRS 9 categories. In line with the transitional provisions of IFRS 9, the group has applied the standard retrospectively without restating any comparative figures. The impact of adoption of the new standard is discussed below:
Classification and measurement
In terms of IFRS 9 financial instruments are measured either at amortised cost or at fair value. Movements in fair value are presented in either profit or loss or other comprehensive income (OCI), subject to certain criteria being met.
The new guidance did not have a significant impact on the classification and measurement of the group's financial assets for the following reasons:
|
|
–
|
An irrevocable election was made to classify the equity instruments previously classified as available-for-sale as at fair value through other comprehensive income (FVOCI);
|
|
|
–
|
Equity investments previously measured at fair value through profit or loss (FVTPL) are classified and measured on the same basis under IFRS 9;
|
|
|
–
|
Debt instruments previously classified as held-to-maturity and measured at amortised cost are classified and measured at amortised cost under IFRS 9 as the group's business model is to hold these instruments in order to collect contractual cash flows, which is solely payments of principal and interest;
|
|
|
–
|
Derivative financial instruments continue to be classified and measured at FVTPL; and
|
|
|
–
|
The majority of loans and other receivables previously classified as at amortised cost continue to be classified as at amortised cost as the group's business model is to hold these instruments in order to collect contractual cash flows, which is solely payments of principal and interest.
|
The new standard impacted the measurement of the group's unquoted equity investments. IFRS 9 eliminates the exemption provided under IAS 39 where unquoted equity investments were measured at cost when fair value could not be reliably measured. This change resulted in revaluing unlisted investments with a cost of
R0.0 million
to fair value of
R82.5 million
. The difference between the carrying amounts of financial instruments before the adoption of IFRS 9 and the new carrying amount calculated in accordance with the standard at 1 July 2018 was recognised directly in the opening balance of equity. Refer to the statements of changes in equity. Additionally, the loan to the ARM BBEE Trust, previously carried at amortised cost, is classified at FVTPL under IFRS 9. The change in classification did not have an impact on the carrying amount of the loan on initial adoption as the carrying amount was equal to the fair value. These items are included in other non-current assets on the balance sheet.
There was no impact on the group’s accounting for financial liabilities as the new requirements only affected the accounting for financial liabilities that are designated at FVTPL and currently the group does not have any such liabilities.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
1. ACCOUNTING POLICIES
continued
Basis of accounting
continued
Impact of the adoption of IFRS 9 –
Financial Instruments
continued
Impairment
The change from the “incurred loss” model to the “expected credit loss” model did not have a material impact on the measurement of the group's financial assets.
Hedge accounting
Except for assessing hedge effectiveness, accounting for the group's defined hedge relationships remained unchanged under
IFRS 9. The new requirements will be applied prospectively.
Impact of IFRS 16 –
Leases
(issued but not yet adopted)
IFRS 16 has one model for lessees which will result in almost all leases being included on the statement of financial position. The lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. No significant changes have been included for lessors. IFRS 16 is effective for annual periods beginning on or after 1 January 2019 and replaces the previous lease standard IAS 17
Leases
and related interpretations.
Management has compiled a list of potential leases across the group and is busy reviewing all related contracts in order to identify and account for leases in terms of IFRS 16. Upon the adoption of IFRS 16 on 1 July 2019, the group expects to recognise additional right-of-use assets and lease liabilities. This is expected to lead to an increase in depreciation and interest expense and a change in the classification of cash flows.
2
. REVENUE
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
Restated*
|
|
|
|
|
Revenue from contracts with customers
|
26 459
|
|
19 255
|
|
Gold
|
25 693
|
|
19 162
|
|
Silver
2
|
589
|
|
74
|
|
Uranium
3
|
177
|
|
19
|
|
Hedging gain
4
|
453
|
|
1 197
|
|
|
|
|
Total revenue
1
|
26 912
|
|
20 452
|
|
*
Relates to a change in accounting policy - refer to note
1
for detail. The restated amounts are unaudited.
1
A geographical analysis of revenue is provided in the segment report.
2
Derived primarily from the Hidden Valley operation in Papua New Guinea.
3
Derived from the Moab Khotsong operation.
4
Relates to the realised effective portion of the hedge-accounted gold derivatives. Forward gold sale contracts of 6 998kg or 225 000oz with an
average price of R638 007/kg matured during the 2019 year. Refer to note
10
for further information.
3
. COST OF SALES
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
Restated*
|
|
|
|
|
Production costs - excluding royalty
1
|
20 131
|
|
14 933
|
|
Royalty expense
|
193
|
|
151
|
|
Amortisation and depreciation
2
|
4 054
|
|
2 570
|
|
Impairment of assets
3
|
3 898
|
|
5 336
|
|
Rehabilitation expenditure
|
33
|
|
67
|
|
Care and maintenance cost of restructured shafts
|
134
|
|
128
|
|
Employment termination and restructuring costs
4
|
242
|
|
208
|
|
Share-based payments
5
|
155
|
|
244
|
|
Other
|
29
|
|
(41
|
)
|
Total cost of sales
|
28 869
|
|
23 596
|
|
* Relates to a change in accounting policy - refer to note
1
for detail. The restated amounts are unaudited.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
3
. COST OF SALES
continued
1
Production costs increased during the 2019 year mainly due to the inclusion of Moab Khotsong (R2 439 million increase) for the full year as well as
continuing production at Hidden Valley (R1 587 million) for the full year following commercial levels of production.
2
Depreciation is higher for the 2019 year owing mainly to full year production at Hidden Valley (R1 604 million increase) as well as Moab Khotsong (R178 million increase) included for the full year. Offsetting this are decreases year on year at Target (R199 million) as well as
Unisel and Masimong (R184 million) owing to the impact of the impairment that was recognised at the end of the 2018 year.
3
Impairment of assets is mainly attributable to Tshepong Operations and Kusasalethu. Refer to the Property plant and equipment section for further details.
4
The employment termination and restructuring expenditure relate to the voluntary severance program in place to reduce labour costs.
5
No new issue for the management share incentive scheme was made following the 2015 issue maturing in November 2018
.
4
. GAINS ON DERIVATIVES
Gains on derivatives include the fair value movements of derivatives which have not been designated as hedging instruments for hedge accounting purposes and the amortisation of day one gains and losses for hedging instruments.
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Derivative gains
1
|
516
|
|
136
|
|
Day one loss amortisation
|
(32
|
)
|
(37
|
)
|
|
|
|
Total gains on derivatives
|
484
|
|
99
|
|
1
The gains in 2019 are primarily as a result of a top-up in the foreign exchange derivatives concluded during periods when the rand was weaker than
the closing exchange rate of US$/R14.13. Refer to note
10
for further information.
5
. OTHER OPERATING EXPENSES
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Social investment expenditure
|
155
|
|
73
|
|
Foreign exchange translation loss
1
|
86
|
|
682
|
|
Silicosis settlement reversal of provision
2
|
(62
|
)
|
(68
|
)
|
Other operating (income)/expenses
|
7
|
|
(20
|
)
|
|
|
|
Total other operating expenses
|
186
|
|
667
|
|
1
The foreign exchange loss is driven primarily by the prevailing exchange rates at the drawdown and repayment dates of the US$ denominated loans
as well as the exchange rate movements during the year. Refer to note
15
for the details of the foreign exchange translation loss on the US$
borrowings.
2
Refer to note
14
for details.
6
. TAXATION
The deferred tax credit for the year ended 30 June 2019 relates to a reversal of temporary differences on property, plant and equipment as a result of the impairment. Contributing further to the deferred tax credit in the current period is a reduction in the weighted average deferred tax rates for certain of the South African companies as a result of decreased profitability of the operations. The rate for Freegold decreased from 8.7% to 8.1% while Moab Khotsong's rate decreased from 9.1% to 4.7%. There has been no change with regards to the unrecognised deferred tax assets for the Harmony company and Hidden Valley.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
7
. EARNINGS(LOSS) PER ORDINARY SHARE
|
|
|
|
|
|
|
Year ended
|
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Weighted average number of shares (million)
|
524
|
|
446
|
|
Weighted average number of diluted shares (million)
|
533
|
|
465
|
|
|
|
|
Total earnings/(loss) per share (cents):
|
|
|
|
|
|
Basic loss
|
(498
|
)
|
(1 003
|
)
|
Diluted loss
1
|
(500
|
)
|
(1 004
|
)
|
Headline earnings
|
204
|
|
171
|
|
Diluted headline earnings
|
197
|
|
163
|
|
|
|
|
1
The dilution is as a result of the potential reduction in earnings attributable to equity holders of the parent company as a result of the exercise of the Tswelopele Beneficiation Operation option. Phoenix contributed a profit and therefore the reduction in earnings attributable to Harmony would increase the loss and loss per share.
Reconciliation of headline earnings:
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Net profit/(loss) for the year
|
(2 607
|
)
|
(4 473
|
)
|
Adjusted for:
|
|
|
Impairment of assets
|
3 898
|
|
5 336
|
|
Taxation effect on impairment of assets
|
(239
|
)
|
(99
|
)
|
Profit on sale of property, plant and equipment
|
(5
|
)
|
(2
|
)
|
Loss on scrapping of property, plant and equipment
|
21
|
|
1
|
|
Taxation effect on loss on scrapping of property, plant and equipment
|
(1
|
)
|
—
|
|
Headline earnings
|
1 067
|
|
763
|
|
8
. ACQUISITION OF MOAB KHOTSONG
Effective 1 March 2018 the group acquired the Moab Khotsong and Great Noligwa mines and related infrastructure as well as
gold-bearing tailings and the Nufcor uranium plant (collectively the Moab Khotsong operations) from AngloGold Ashanti Limited on a going concern basis. The combined assets acquired and liabilities assumed constitute a business as defined by IFRS 3
Business Combinations
. The purchase price allocation (PPA) was initially prepared on a provisional basis in accordance with IFRS 3. A decrease of R32 million was made to the mineral right value capitalised following the finalisation of the deferred tax calculation. This also increased the amount of goodwill recognised as part of the acquisition. The comparative figures at 30 June 2018 have been restated for this change.The measurement period has now closed and the accounting for the acquisition has been concluded.
The cash consideration paid to acquire the Moab Khotsong operations amounted to R3 474 million (US$300 million).
|
|
9
.
|
PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
|
Impairment of property, plant and equipment
The recoverable amount of mining assets is determined utilising real discounted future cash flows or resource multiples in the case of undeveloped properties and certain resource bases. One of the most significant assumptions that influence the group's operations' life-of-mine plans, and therefore impairment, is the expected gold price. During this year's planning and testing, commodity price and exchange rate assumptions as per the table below were used. Due to the increase in the US$ commodity price and weakening of the rand against the US$ dollar at the end of the financial year, management decided it would be appropriate to differentiate between short, medium and long term assumptions used in the models. Post-tax real discount rates ranging between 8.9% and 11.1% (2018: 8.35% and 10.25%), depending on the asset, were used to determine the recoverable amounts (fair value less costs to sell).
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
|
|
9
.
|
PROPERTY, PLANT AND EQUIPMENT
AND INTANGIBLE ASSETS
continued
|
Impairment of property, plant and equipment
continued
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
US$ gold price per ounce (FY20)
|
1 325
|
|
1 250
|
|
US$ gold price per ounce (FY21)
|
1 310
|
|
1 250
|
|
US$ gold price per ounce (Long term)
|
1 290
|
|
1 250
|
|
US$ silver price per ounce (FY20 + FY21)
|
15.75
|
|
—
|
|
US$ silver price per ounce (Long term)
|
17.00
|
|
17.00
|
|
Exchange rate (R/US$) (FY20)
|
14.43
|
|
13.30
|
|
Exchange rate (R/US$) (FY21)
|
14.25
|
|
13.30
|
|
Exchange rate (R/US$) (Long term)
|
14.11
|
|
13.30
|
|
Exchange rate (PGK/US$)
|
3.34
|
|
3.17
|
|
Rand gold price (R/kg)
(FY20)
|
615 000
|
|
535 000
|
|
Rand gold price (R/kg)
(FY21)
|
600 000
|
|
535 000
|
|
Rand gold price (R/kg) (Long term)
|
585 000
|
|
535 000
|
|
|
|
|
Values of US$25.00, US$8.00 and US$2.80 per ounce were used for measured, indicated and inferred resources, respectively in the case of resource multiples for undeveloped properties and certain resource bases.
Following the implementation of carbon tax during 2019, management included an estimate of the associated costs in the life-of-mine and resource base models. Management made the following assumptions in determining the estimate:
•
current levels of consumption will continue into the future;
•
during phase 1, the maximum benefit threshold will apply;
•
during phase 2, there will be a gradual phasing-out of the benefit threshold, resulting in the pass-through on electricity charges.
An increase in the planned gold price was offset by an increase in costs (both working costs and capital expenditure), which was further compounded by the inclusion of carbon tax, in both the life-of-mine and resource base models. Although there was an increase in the overall group’s net present value of the life-of-mine models, the revision of the areas included in certain of the resource base models resulted in lower grades which negatively impacted on the cash flows and ultimately the recoverable amounts.
The impairment of assets consists of the following:
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Tshepong Operations (a)
|
2 254
|
|
988
|
|
Kusasalethu (b)
|
690
|
|
579
|
|
Doornkop
|
—
|
|
317
|
|
Target 1 (c)
|
312
|
|
699
|
|
Joel (d)
|
198
|
|
160
|
|
Bambanani (e)
|
6
|
|
—
|
|
Masimong
|
—
|
|
329
|
|
Target 3
1
(f)
|
318
|
|
—
|
|
Unisel
|
—
|
|
487
|
|
Target North
1
|
—
|
|
1 458
|
|
Other Freegold assets
|
117
|
|
174
|
|
Other Harmony assets
|
—
|
|
145
|
|
Other Avgold assets
|
3
|
|
—
|
|
|
|
|
Total impairment
|
3 898
|
|
5 336
|
|
1
Target 3 and Target North has not been allocated to a segment. Refer to note
21
for further information.
|
|
(a)
|
Tshepong Operations
has a recoverable amount of R3.8 billion. The impairment is due to the increased costs to exploit the
resource base as well as a lower expected recovered grade.
|
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
9
.
PROPERTY, PLANT AND EQUIPMENT
AND INTANGIBLE ASSETS
continued
Impairment of property, plant and equipment
continued
|
|
(b)
|
At
Kusasalethu
a
decrease in grade and
increased estimated costs in the resource base resulted in a lower recoverable amount of R1.3 billion.
|
|
|
(c)
|
Target 1
has a lower recoverable amount of R851 million as a result of increased costs and decrease in grade in the resource base together with the estimated impact of carbon tax. The increase in discount rate due to increased risk factors also negatively impacted on the recoverable amount.
|
|
|
(d)
|
Joel
has a recoverable amount of R765 million. The increased capital costs in the resource base together with carbon tax negatively impacted the net present value of expected cash flows.
|
|
|
(e)
|
Bambanani
has a recoverable amount of R763 million. The impairment of goodwill reduced the carrying amount of intangible assets. As goodwill is not depreciated, it results in an impairment as the life of the operation shortens.
|
|
|
(f)
|
Target 3
remains under care and maintenance. A change in valuation method from discounted cash flow model to resource multiple approach which reduced the recoverable amount.
|
The recoverable amounts for these assets were determined on a fair value less cost to sell basis using assumptions in the discounted cash flow models and attributable resource values. These are fair value measurements classified as level 3.
Sensitivity analysis
A 10% decrease or increase in the gold price and resource values used (with all other variables held constant) would have resulted in the following impairment being recorded as at 30 June 2019:
|
|
|
|
|
|
|
Year ended
|
|
30 June 2019
|
Figures in million
|
10% decrease
|
|
10% increase
|
|
|
|
|
Tshepong Operations
|
7 155
|
|
—
|
|
Kusasalethu
|
1 962
|
|
—
|
|
Kalgold
|
39
|
|
—
|
|
Doornkop
|
1 350
|
|
—
|
|
Target 1
|
1 278
|
|
—
|
|
Joel
|
984
|
|
—
|
|
Bambanani
|
331
|
|
—
|
|
Masimong
|
105
|
|
—
|
|
Target 3
|
337
|
|
300
|
|
Unisel
|
45
|
|
—
|
|
Target North
|
291
|
|
—
|
|
Other Freegold assets
|
117
|
|
—
|
|
Other Harmony assets
|
58
|
|
—
|
|
Other Avgold assets
|
3
|
|
—
|
|
Moab Khotsong
|
2 758
|
|
—
|
|
|
|
|
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
9
.
PROPERTY, PLANT AND EQUIPMENT
AND INTANGIBLE ASSETS
continued
Intangible assets
|
|
|
|
|
|
|
Year ended
|
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
Figures in million
|
|
Restated*
|
|
|
|
|
Opening balance
|
545
|
|
591
|
|
Acquisition of Moab Khotsong
|
—
|
|
302
|
|
Impairment - Tshepong Operations
|
—
|
|
(326
|
)
|
Impairment - Joel
|
—
|
|
(42
|
)
|
Impairment - Bambanani
|
(6
|
)
|
—
|
|
Other movements (net)
|
(6
|
)
|
20
|
|
|
|
|
Total intangible assets
|
533
|
|
545
|
|
*Refer to note 8 for the details on the restatement.
The remaining balance of goodwill relates to Moab Khotsong and Bambanani.
10
. DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
|
|
|
At
|
|
At
|
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Financial assets
|
|
|
Non-current
|
197
|
|
84
|
|
|
|
|
Rand gold forward sale contracts (a)
|
23
|
|
70
|
|
US$ commodity contracts (b)
|
1
|
|
11
|
|
Foreign exchange hedging contracts (c)
|
173
|
|
3
|
|
|
|
|
Current
|
309
|
|
539
|
|
|
|
|
Rand gold forward sale contracts (a)
|
22
|
|
412
|
|
US$ commodity contracts (b)
|
4
|
|
63
|
|
Foreign exchange hedging contracts (c)
|
283
|
|
64
|
|
|
|
|
|
|
|
Total derivative financial assets
|
506
|
|
623
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
Non-current
|
172
|
|
10
|
|
|
|
|
Rand gold forward sale contracts (a)
|
158
|
|
10
|
|
US$ commodity contracts (b)
|
14
|
|
—
|
|
|
|
|
Current
|
270
|
|
205
|
|
|
|
|
Rand gold forward sale contracts (a)
|
225
|
|
2
|
|
US$ commodity contracts (b)
|
43
|
|
—
|
|
Foreign exchange hedging contracts (c)
|
2
|
|
203
|
|
|
|
|
|
|
|
Total derivative financial liabilities
|
442
|
|
215
|
|
|
|
|
|
|
(a)
|
Harmony has entered into rand gold forward sale derivative contracts to hedge the risk of lower rand gold prices from its South African operations. Cash flow hedge accounting is applied to the majority of these contracts, resulting in the effective portion of the unrealised gains and losses being recorded in other comprehensive income (other reserves). During the 12 months ended 30 June 2019, the contracts that matured realised a gain of R
453
million (June 2018: R1 197 million), which has been included in revenue. There were no ineffective portions in the periods presented. The unamortised portion of the day one gain or loss amounted to R
36
million on 30 June 2019 (June 2018: R11 million). Losses from non-hedge accounted commodity contracts amounted to R
51
million (June 2018: R12 million) and are included in gains on derivatives.
|
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
10
. DERIVATIVE FINANCIAL INSTRUMENTS
continued
|
|
(b)
|
Harmony entered into commodity hedging contracts to secure sales prices for its Hidden Valley operations. The contracts comprise US$ gold forward sale derivative contracts as well as silver zero cost collars which establish a minimum (floor) and maximum (cap) silver sales price. Hedge accounting is applied to a portion of the US$ gold forward sale contracts entered into during the 2019 financial year. None of these contracts had matured by 30 June 2019. The gain on commodity contracts to which hedge accounting is not applied amounted to R
13
million (June 2018: R35 million) and is recorded in gains on derivatives in the income statement.
|
|
|
(c)
|
Harmony maintains a foreign exchange hedging programme in the form of zero cost collars, which establish a floor and cap US$/Rand exchange rate at which to convert US dollars to Rands, and foreign exchange forward contracts. As hedge accounting is not applied, the resulting gains and losses have been recorded in gains on derivatives in the income statement. For 2019, the changes in the fair value resulted in gains amounting to R
555
million (June 2018: R113 million).
|
The following table shows the volume of open positions at the reporting date:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2020
|
FY2021
|
TOTAL
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ZAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zero cost collars
|
|
|
|
|
|
|
|
|
|
US$m
|
71
|
|
69
|
|
64
|
|
62
|
|
49
|
|
48
|
|
37
|
|
14
|
|
414
|
|
Floor
|
14.48
|
|
14.59
|
|
14.80
|
|
14.96
|
|
15.30
|
|
15.28
|
|
15.37
|
|
15.55
|
|
14.92
|
|
Cap
|
15.19
|
|
15.35
|
|
15.57
|
|
15.75
|
|
16.11
|
|
16.27
|
|
16.36
|
|
16.55
|
|
15.74
|
|
|
|
|
|
|
|
|
|
|
|
Forward contracts
|
|
|
|
|
|
|
|
|
|
US$m
|
69
|
|
69
|
|
66
|
|
60
|
|
61
|
|
35
|
|
24
|
|
6
|
|
390
|
|
FEC
|
14.71
|
|
15.00
|
|
15.27
|
|
15.44
|
|
15.89
|
|
15.82
|
|
15.96
|
|
16.23
|
|
15.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R/gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
95
|
|
94
|
|
94
|
|
96
|
|
71
|
|
71
|
|
73
|
|
33
|
|
627
|
|
R'000/kg
|
626
|
|
641
|
|
648
|
|
661
|
|
668
|
|
674
|
|
689
|
|
702
|
|
659
|
|
|
|
|
|
|
|
|
|
|
|
US$/gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
12
|
|
12
|
|
12
|
|
12
|
|
8
|
|
6
|
|
3
|
|
1
|
|
66
|
|
US$/oz
|
1 351
|
|
1 363
|
|
1 357
|
|
1 370
|
|
1 376
|
|
1 387
|
|
1 404
|
|
1 414
|
|
1 368
|
|
|
|
|
|
|
|
|
|
|
|
Total gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
107
|
|
106
|
|
106
|
|
108
|
|
79
|
|
77
|
|
76
|
|
34
|
|
693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
90
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
90
|
|
Floor
|
17.40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
17.40
|
|
Cap
|
18.40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
18.40
|
|
|
|
|
|
|
|
|
|
|
|
Refer to note
16
for details on the fair value measurements.
11
. INVENTORIES
Gold in process increased R137 million year on year due to the timing of the plant clean-up at year-end, where the first possible dispatch day fell in the new financial period. Also contributing to the higher balance is the additional spares purchased in PNG when certain maintenance services were in-sourced.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
12
. SHARE CAPITAL
Harmony conducted a placement of new ordinary shares to qualifying investors during June 2018. For detailed disclosure refer to Harmony's annual, financial statements for the financial year ended 30 June 2018.
African Rainbow Minerals Limited (ARM) subscribed for 11 032 623 shares at R19.12 a share to maintain its shareholding of 14.29% post the placement of shares issued during the 2018 financial year.
Additional share capital movements relate to shares issued as part of the group's employee share schemes. On 15 January 2019 the group issued 6.7 million ordinary shares to its employee share trust as part of a new employee share option plan (ESOP). The shares were granted to the employees on 25 February 2019 and the value of R28.29 per share, being the fair value on grant date, was included in the share-based payment expense. The scheme was classified as equity-settled and will vest over a three year period.
13
. PROVISION FOR ENVIRONMENTAL REHABILITATION
The balance at 30 June 2019 decreased following the annual reassessment of the environmental provision. The biggest contributor was Moab Khotsong, where a decrease of R240 million was recognised following on alignment of the methodology and other assumptions including rates.
14
. PROVISION FOR SILICOSIS SETTLEMENT
Harmony and certain of its subsidiaries (Harmony group), together with other mining companies, are named in a class action for silicosis and tuberculosis which was certified by the Johannesburg High Court in May 2016.
A gold mining industry working group which includes Harmony (the working group) was formed in November 2014 to address issues relating to the compensation and medical care for occupational lung diseases in the gold mining industry in South Africa. The working group engaged all stakeholders on these matters and on 3 May 2018, the working group announced that they have reached an agreement with the lawyers representing the claimants in the silicosis class action litigation. The settlement is subject to certain suspensive conditions, including the agreement being approved by the South Gauteng High Court.
Harmony has provided for the estimated cost of the settlement based on actuarial assessments. At 30 June 2019, management had estimated Harmony's share as R942 million (pre-tax). The time value of money recognised for the year ended 30 June 2019 is R79 million and the change in estimate is a gain of R62 million primarily due to a change in the timing of the expected cash flows.
Please refer to note
22
for events after the reporting date.
15
. BORROWINGS
During the year ended 30 June 2019:
•
The remaining outstanding balance of US$50 million (R670 million) was repaid on the US$200 million bridge loan.
|
|
•
|
Harmony entered into a four-year loan with Westpac Bank of US$24 million (R322 million) to finance the acquisition of fleet equipment for the group’s PNG operations. The loan is repayable in quarterly instalments and bears interest at a rate of LIBOR + 3.2%. During the year US$5 million (R64 million) was repaid on the loan.
|
•
US$30 million (R419 million) was repaid on the US$350 million syndicated facility.
|
|
•
|
Harmony drew down the remaining R500 million on the R1 billion Nedbank revolving credit facility (RCF).
|
|
|
•
|
During November 2018, Harmony concluded a new four-year R2.0 billion facility with Nedbank and ABSA which consists of a R600 million term facility and a R1.4 billion RCF to replace the Nedbank R1 billion RCF.
|
On 19 August 2019, Harmony and a syndicate of local and international lenders signed an agreement for a new US$400m facility, replacing the existing US$350m facility. The key terms and conditions of the facility are as follows;
•
US$200 Term loan and US$200 revolving credit facility
•
Tenor - 3+1 years
•
Margin for the term loan - 3.05% and RCF 2.90%
This agreement will become effective once all conditions precedent are fulfilled. As part of the facility, the tangible net worth to net debt covenant has been set to at least 4 times.
There were no breaches of the loan covenants for the 2019 and 2018 financial years.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
15
. BORROWINGS
continued
|
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
US$ term loan
US dollar
|
|
US$ RCF
US dollar
|
|
Rand term loan
SA rand
|
|
Rand RCF
SA rand
|
|
Westpac fleet loan US dollar
|
|
|
|
|
|
|
|
Borrowings summary at 30 June 2019
|
|
|
|
|
|
Original facility
|
175
|
|
175
|
|
600
|
|
1 400
|
|
N/A
|
|
Drawn down/ loan balance
|
175
|
|
120
|
|
600
|
|
900
|
|
20
|
|
Undrawn committed borrowing facilities
|
N/A
|
|
55
|
|
N/A
|
|
500
|
|
N/A
|
|
Maturity
|
July
|
|
July
|
|
November
|
|
November
|
|
June
|
|
|
2020
|
|
2020
|
|
2022
|
|
2022
|
|
2022
|
|
Interest rate
|
LIBOR +
3.15%
|
|
LIBOR +
3.00%
|
|
JIBAR +
2.90%
|
|
JIBAR +
2.80%
|
|
LIBOR +
3.20%
|
|
|
|
|
|
|
|
The foreign exchange translation loss on the US$ borrowings for 2019 was R99 million (2018: R669 million)
|
|
|
|
|
|
|
Year ended
|
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Rand/US$ exchange rate:
|
|
|
Closing/spot
|
14.13
|
|
13.81
|
|
Average
|
14.18
|
|
12.85
|
|
|
|
|
16
. FINANCIAL RISK MANAGEMENT ACTIVITIES
Foreign exchange risk
Harmony's revenues are sensitive to the R/US$ exchange rate as all revenues are generated by gold sales denominated in US$. Harmony maintains a foreign currency hedging programme to manage foreign exchange risk. The limit currently set by the Board is 25% of the group's foreign exchange risk exposure for a period of 24 months. Refer to note
10
for the details of the contracts. The audit and risk committee reviews the details of the programme quarterly.
Commodity price sensitivity
The profitability of the group’s operations, and the cash flows generated by those operations, are affected by changes in the market price of gold, and in the case of Hidden Valley, silver as well. Harmony entered into derivative contracts to manage the variability in cash flows from the group’s production, in order to create cash certainty and protect the group against lower commodity prices. The general limit for gold hedging currently set by the Board is 20% for a 24-month period. In response to the increase in the rand gold price, this limit was temporarily increased to 24% just before year-end to accommodate additional hedging for certain more marginal operations. This increased limit normalizes back to 20% by the end of the 2020 financial year. The limit set by the Board is 50% of silver exposure over a 24-month period.
Management continues to top-up these programmes as and when opportunities arise to lock in attractive margins for the business, but are not required to maintain hedging at these levels. The audit and risk committee reviews the details of the programme quarterly.
Refer to note
10
and the fair value determination section below for further detail on these contracts.
Fair value determination
The fair value levels of hierarchy are as follows:
Level 1: Quoted prices (unadjusted) in active markets
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is, as prices) or indirectly (that is derived from prices);
Level 3: Inputs for the asset that are not based on observable market data (that is unobservable inputs).
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
16
. FINANCIAL RISK MANAGEMENT ACTIVITIES
continued
|
|
|
|
|
|
Fair value hierarchy level
|
At
30 June 2019
(Reviewed)
|
|
|
Figures in million
|
|
|
|
Fair value through other comprehensive income financial instruments
|
|
|
Other non-current assets
1
|
Level 3
|
59
|
|
Fair value through profit or loss financial instruments
|
|
|
Restricted investments
2
|
Level 2
|
1 256
|
|
Derivative financial assets
3
|
Level 2
|
506
|
|
Derivative financial liabilities
3
|
Level 2
|
(442
|
)
|
Loan to ARM BBEE Trust
4
|
Level 3
|
271
|
|
|
|
|
|
|
|
|
|
|
Fair value hierarchy level
|
At
30 June 2018 (Audited)
|
|
|
Figures in million
|
|
|
|
Available-for-sale financial assets
|
|
|
Other non-current assets
1
|
Level 3
|
8
|
|
Fair value through profit or loss financial instruments
|
|
|
Restricted investments
2
|
Level 2
|
913
|
|
Derivative financial instruments
3
|
Level 2
|
408
|
|
|
|
|
1
Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
2
The majority of the balance is directly derived from the Top 40 index on the JSE, and is discounted at market interest rate. This relates to equity
linked deposits in the group's environmental rehabilitation trust funds. The balance of the environmental trust funds are carried at amortised cost and
therefore not disclosed here.
3
The mark-to market remeasurement of the following contracts is derived from:
|
|
•
|
Forex hedging contracts
(zero cost collars): a Black-Scholes valuation technique, derived from spot rand/US$ exchange rate inputs, implied volatilities on the rand/US$ exchange rate, rand/US$ inter-bank interest rates and discounted at market interest rate (zero-coupon interest rate curve). FECs are derived from the forward rand/US$ exchange rate and discounted at market interest rate (zero-coupon interest rate curve).
|
|
|
•
|
Rand gold hedging contracts
(forward sale contracts): spot Rand/US$ exchange rate, Rand and dollar interest rates (forward points), spot US$ gold price, differential between the US interest rate and gold lease interest rate which is discounted at market interest rate.
|
|
|
•
|
US$ gold hedging contracts
(forward sale contracts): spot US$ gold price, differential between the US interest rate and gold lease interest rate and discounted at market interest rate.
|
|
|
•
|
Silver hedging contracts
(zero cost collars): a Black-Scholes valuation technique, derived from spot US$ silver price, strike price, implied volatilities, time to maturity and interest rates and discounted at market interest rate.
|
4
The fair value was calculated using a discounted cash flow model taking into account projected interest payments and the projected ARM share price
on the expected repayment date.
For all other financial instruments, fair value approximates carrying value.
17
. ADDITIONAL CASH FLOW DISCLOSURES
(a) Restricted investments
During March 2019, the Group withdrew R183 million from its rehabilitation trusts for the reimbursement of rehabilitation work that was completed in prior years.
(b) Additions to property, plant and equipment
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Capital expenditure - operations
1
|
3 490
|
|
2 619
|
|
Additions resulting from development at Hidden Valley
2
|
—
|
|
1 563
|
|
Capital and capitalised exploration and evaluation expenditure for Wafi-Golpu
|
350
|
|
288
|
|
Additions resulting from stripping activities
3
|
1 196
|
|
98
|
|
Other
|
—
|
|
3
|
|
|
|
|
Total additions to property, plant and equipment
|
5 036
|
|
4 571
|
|
1
Increase year on year due to Moab Khotsong's expenditure being included for a full year.
2
Hidden Valley reached commercial levels of production in June 2018 and halted the capitalisation of development costs related to stage 5 and 6.
3
Includes stripping activity costs for Hidden Valley once commercial levels of production were reached.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
18
. COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
At
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Capital expenditure commitments:
|
|
|
Contracts for capital expenditure
|
418
|
|
273
|
|
Authorised by the directors but not contracted for
|
1 499
|
|
1 719
|
|
|
|
|
Total capital commitments
|
1 917
|
|
1 992
|
|
This expenditure will be financed from existing resources and, where appropriate, borrowings.
Contingent liabilities
Legal proceedings commenced in December 2010 against the Hidden Valley mine in PNG over alleged damage to the Watut River (which runs adjacent to the Hidden Valley mine), alleged to have been caused by waste rock and overburden run-off from the mine. The damages sought by the plaintiffs were not specified. No active steps have been taken by the plaintiffs in this proceeding for more than five years. During the 2019 financial year t
he court dismissed the case from the roll for lack of prosecution.
For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended
30 June 2018.
19
. RELATED PARTIES
|
|
|
|
|
|
|
|
Name of director/prescribed officer
|
Shares
purchased
in open
market
|
|
Shares sold
in open
market
|
|
Performance
shares
vested and
retained
|
|
|
|
|
|
Peter Steenkamp (Chief Executive Officer: South-Africa)
|
—
|
|
—
|
|
512 000
|
|
Frank Abbott (Financial director)
|
—
|
|
—
|
|
394 193
|
|
Phillip Tobias (Chief Operating Officer: New business)
|
—
|
|
—
|
|
126 378
|
|
Johannes van Heerden (Chief Executive Officer: South-east Asia)
|
—
|
|
—
|
|
85 000
|
|
|
|
|
|
20
. SEGMENT REPORT
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM).
The segment report follows on page
32
.
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2019 (Rand)
21
. RECONCILIATION OF SEGMENT INFORMATION
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Reconciliation of production profit to gross profit/(loss)
|
|
|
|
|
|
Revenue
|
26 912
|
|
20 452
|
|
|
26 146
|
|
20 358
|
|
–
Other metal sales treated as by-product credits in the segment report
|
766
|
|
93
|
|
|
—
|
|
1
|
|
Production costs
|
(20 324
|
)
|
(15 084
|
)
|
|
(19 558
|
)
|
(15 002
|
)
|
–
Other metal sales treated as by-product credits in the segment report
|
(766
|
)
|
(93
|
)
|
|
—
|
|
11
|
|
|
|
|
|
|
|
Production profit per segment report
|
6 588
|
|
5 368
|
|
Impairment of assets
|
(3 898
|
)
|
(5 336
|
)
|
Amortisation and depreciation
|
(4 054
|
)
|
(2 570
|
)
|
Other cost of sales items
|
(593
|
)
|
(606
|
)
|
|
|
|
Gross profit/(loss) as per income statements
1
|
(1 957
|
)
|
(3 144
|
)
|
1
The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
|
|
|
|
|
|
|
At
|
Figures in million
|
30 June 2019
(Reviewed)
|
|
30 June 2018
(Audited)
|
|
|
|
|
Reconciliation of total segment mining assets to consolidated property, plant and equipment
|
|
|
|
|
|
Property, plant and equipment not allocated to a segment
|
|
|
Mining assets
|
341
|
|
982
|
|
Undeveloped property
|
3 681
|
|
3 681
|
|
Other non-mining assets
|
115
|
|
103
|
|
Wafi-Golpu assets
|
2 467
|
|
2 137
|
|
|
|
|
|
6 604
|
|
6 903
|
|
22
. SUBSEQUENT EVENTS
|
|
(a)
|
The settlement agreement for the silicosis and tuberculosis class action was approved by the South Gauteng High Court on 26 July 2019. The class members will be given an opportunity to option out of the settlement. Following this, the Tshiamiso Trust will be established and begin implementing the settlement. This has no impact on the provision.
|
|
|
(b)
|
On 19 August 2019, a new syndicated facility was signed. Refer to note
15
for further details
|
23
. REVIEW CONCLUSION
These condensed consolidated financial statements for the year ended 30 June 2019 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon. A copy of the auditor's review conclusion is available for inspection at the company's registered office, together with the financial statements identified in the auditor's report.
SEGMENT REPORT
(RAND/METRIC)
FOR THE YEAR ENDED 30 JUNE 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Production cost
|
Production profit/(loss)
|
Mining assets
|
Capital expenditure
#
|
Kilograms produced*
|
Tonnes milled*
|
|
30 June
|
30 June
|
30 June
|
30 June
|
30 June
|
30 June
|
30 June
|
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|
R million
|
R million
|
R million
|
R million
|
R million
|
kg
|
t'000
|
South Africa
Underground
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tshepong operations
|
4 685
|
|
5 389
|
|
3 973
|
|
3 799
|
|
712
|
|
1 590
|
|
6 297
|
|
8 078
|
|
1 130
|
|
1 008
|
|
7 967
|
|
9 394
|
|
1 612
|
|
1 716
|
|
Moab Khotsong
|
4 470
|
|
1 672
|
|
3 101
|
|
952
|
|
1 369
|
|
720
|
|
3 634
|
|
3 670
|
|
559
|
|
173
|
|
7 928
|
|
3 296
|
|
970
|
|
327
|
|
Bambanani
|
1 477
|
|
1 616
|
|
994
|
|
896
|
|
483
|
|
720
|
|
562
|
|
659
|
|
61
|
|
64
|
|
2 515
|
|
2 821
|
|
230
|
|
233
|
|
Joel
|
957
|
|
954
|
|
971
|
|
920
|
|
(14
|
)
|
34
|
|
947
|
|
995
|
|
187
|
|
250
|
|
1 567
|
|
1 635
|
|
429
|
|
454
|
|
Doornkop
|
1 931
|
|
1 958
|
|
1 564
|
|
1 411
|
|
367
|
|
547
|
|
2 759
|
|
2 721
|
|
308
|
|
274
|
|
3 273
|
|
3 429
|
|
730
|
|
696
|
|
Target 1
|
1 585
|
|
1 630
|
|
1 491
|
|
1 318
|
|
94
|
|
312
|
|
1 076
|
|
1 260
|
|
297
|
|
309
|
|
2 653
|
|
2 854
|
|
588
|
|
680
|
|
Kusasalethu
|
2 975
|
|
2 483
|
|
2 395
|
|
2 026
|
|
580
|
|
457
|
|
1 300
|
|
2 151
|
|
316
|
|
289
|
|
4 989
|
|
4 429
|
|
742
|
|
670
|
|
Masimong
|
1 359
|
|
1 505
|
|
1 205
|
|
1 154
|
|
154
|
|
351
|
|
106
|
|
57
|
|
109
|
|
129
|
|
2 309
|
|
2 623
|
|
602
|
|
647
|
|
Unisel
|
713
|
|
733
|
|
564
|
|
771
|
|
149
|
|
(38
|
)
|
46
|
|
38
|
|
45
|
|
85
|
|
1 212
|
|
1 280
|
|
256
|
|
376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other surface operations
|
2 403
|
|
2 009
|
|
1 938
|
|
1 521
|
|
465
|
|
488
|
|
724
|
|
553
|
|
84
|
|
136
|
|
4 099
|
|
3 570
|
|
15 931
|
|
14 143
|
|
Total South Africa
|
22 555
|
|
19 949
|
|
18 196
|
|
14 768
|
|
4 359
|
|
5 181
|
|
17 451
|
|
20 182
|
|
3 096
|
|
2 717
|
|
38 512
|
|
35 331
|
|
22 090
|
|
19 942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hidden Valley
|
3 591
|
|
409
|
|
1 362
|
|
234
|
|
2 229
|
|
175
|
|
3 694
|
|
3 884
|
|
1 591
|
|
1 563
|
|
6 222
|
|
2 862
|
|
3 886
|
|
2 499
|
|
Total international
|
3 591
|
|
409
|
|
1 362
|
|
234
|
|
2 229
|
|
175
|
|
3 694
|
|
3 884
|
|
1 591
|
|
1 563
|
|
6 222
|
|
2 862
|
|
3 886
|
|
2 499
|
|
Total operations
|
26 146
|
|
20 358
|
|
19 558
|
|
15 002
|
|
6 588
|
|
5 356
|
|
21 145
|
|
24 066
|
|
4 687
|
|
4 280
|
|
44 734
|
|
38 193
|
|
25 976
|
|
22 441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of the segment information to the consolidated income statement and balance sheet (refer to note 21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
766
|
|
94
|
|
766
|
|
82
|
|
—
|
|
12
|
|
6 604
|
|
6 903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 912
|
|
20 452
|
|
20 324
|
|
15 084
|
|
6 588
|
|
5 368
|
|
27 749
|
|
30 969
|
|
4 687
|
|
4 280
|
|
44 734
|
|
38 193
|
|
25 976
|
|
22 441
|
|
#
Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R
350
million (2018: R288 million).
*
Production statistics are unaudited and not reviewed.
CONDENSED CONSOLIDATED
INCOME STATEMENTS (US$)
(CONVENIENCE TRANSLATION)
|
|
|
|
|
|
|
|
|
Year ended
|
|
|
30 June 2019
(Unaudited)
|
|
30 June 2018
(Audited)
|
|
Figures in million
|
|
|
Restated*
|
|
|
|
|
|
Revenue
|
|
1 898
|
|
1 591
|
|
Cost of sales
|
|
(2 037
|
)
|
(1 807
|
)
|
|
|
|
|
Production costs
|
|
(1 433
|
)
|
(1 174
|
)
|
Amortisation and depreciation
|
|
(286
|
)
|
(200
|
)
|
Impairment of assets
|
|
(276
|
)
|
(386
|
)
|
Other items
|
|
(42
|
)
|
(47
|
)
|
|
|
|
|
|
|
|
|
Gross profit/(loss)
|
|
(139
|
)
|
(216
|
)
|
Corporate, administration and other expenditure
|
|
(52
|
)
|
(63
|
)
|
Exploration expenditure
|
|
(10
|
)
|
(11
|
)
|
Gains on derivatives
|
|
34
|
|
8
|
|
Other operating income/(expenses)
|
|
(13
|
)
|
(53
|
)
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
(180
|
)
|
(335
|
)
|
Acquisition related costs
|
|
—
|
|
(8
|
)
|
Share of profits from associates
|
|
4
|
|
3
|
|
Investment income
|
|
22
|
|
27
|
|
Finance costs
|
|
(41
|
)
|
(26
|
)
|
|
|
|
|
|
|
|
|
Profit/(loss) before taxation
|
|
(195
|
)
|
(339
|
)
|
Taxation
|
|
10
|
|
18
|
|
Current taxation
|
|
(10
|
)
|
(16
|
)
|
Deferred taxation
|
|
20
|
|
34
|
|
|
|
|
|
Net profit/(loss) for the period
|
|
(185
|
)
|
(321
|
)
|
|
|
|
|
Attributable to:
|
|
|
|
Owners of the parent
|
|
(185
|
)
|
(321
|
)
|
|
|
|
|
Earnings per ordinary share (cents)
|
|
|
|
Basic earnings
|
|
(35
|
)
|
(72
|
)
|
Diluted earnings
|
|
(36
|
)
|
(72
|
)
|
* Refer to note 1 for detail. The restated amounts are unaudited.
The currency conversion average rates for the 12 months ended 30 June 2019: US$1 = 14.18 (30 June 2018: US$1 = R12.85).
The income statement for the year ended 30 June 2018 has been extracted from the 2018 annual financial statements.
|
|
Note on convenience translations
Except where specific statements have been extracted from the 2018 annual financial statements, the requirements of IAS 21
The Effects of the Changes in Foreign Exchange Rates
have not necessarily been applied in the translation of the US Dollar financial statements presented on page 33 to 37.
|
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (US$)
(CONVENIENCE TRANSLATION)
|
|
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
|
30 June 2019
(Unaudited)
|
|
30 June 2018
(Audited)
|
|
|
|
|
|
Net profit/(loss) for the year
|
|
(185
|
)
|
(321
|
)
|
Other comprehensive income for the year, net of income tax
|
|
(48
|
)
|
(175
|
)
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss:
|
|
(48
|
)
|
(174
|
)
|
Foreign exchange translation gain/(loss)
|
|
(4
|
)
|
(117
|
)
|
Remeasurement of gold hedging contracts
|
|
|
|
Unrealised gain/(loss) on gold contracts
|
|
(25
|
)
|
21
|
|
Released to revenue
|
|
(32
|
)
|
(93
|
)
|
Deferred taxation thereon
|
|
13
|
|
15
|
|
|
|
|
|
Items that will not be reclassified to profit or loss:
|
|
—
|
|
(1
|
)
|
Remeasurement of retirement benefit obligation
|
|
|
|
Actuarial loss recognised during the
year
|
|
—
|
|
(1
|
)
|
|
|
|
|
Total comprehensive income for the year
|
|
(233
|
)
|
(496
|
)
|
|
|
|
|
Attributable to:
|
|
|
|
Owners of the parent
|
|
(233
|
)
|
(496
|
)
|
The currency conversion average rates for the 12 months ended 30 June 2019: US$1 = 14.18 (30 June 2018: US$1 = R12.85).
The statement of comprehensive income for the year ended 30 June 2018 has been extracted from the 2018 annual financial statements.
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY (US$)
FOR THE YEAR ENDED 30 JUNE 2019 (CONVENIENCE TRANSLATION)
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
|
Share capital
|
|
Accumulated loss
|
|
Other
reserves
|
|
Total
|
|
|
|
|
|
|
|
Balance - 30 June 2018
|
|
2 076
|
|
(644
|
)
|
364
|
|
1 796
|
|
|
|
|
|
|
|
Impact of adopting IFRS 9 (refer to note 1)
|
|
—
|
|
—
|
|
6
|
|
6
|
|
|
|
|
|
|
|
Restated opening balance - 1 July 2018
|
|
2 076
|
|
(644
|
)
|
370
|
|
1 802
|
|
|
|
|
|
|
|
Issue of shares
|
|
15
|
|
—
|
|
—
|
|
15
|
|
Share-based payments
|
|
—
|
|
—
|
|
16
|
|
16
|
|
Net loss for the year
|
|
—
|
|
(185
|
)
|
—
|
|
(185
|
)
|
Other comprehensive income for the year
|
|
—
|
|
—
|
|
(48
|
)
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - 30 June 2019 (Unaudited)
|
|
2 091
|
|
(829
|
)
|
338
|
|
1 600
|
|
|
|
|
|
|
|
Balance - 30 June 2017
|
|
4 036
|
|
(547
|
)
|
(1 255
|
)
|
2 234
|
|
|
|
|
|
|
|
Issue of shares
|
|
79
|
|
—
|
|
—
|
|
79
|
|
Share-based payments
|
|
—
|
|
|
29
|
|
29
|
|
Net loss for the year
|
|
—
|
|
(321
|
)
|
—
|
|
(321
|
)
|
Other comprehensive income for the year
|
|
—
|
|
—
|
|
(175
|
)
|
(175
|
)
|
Reclassification from other reserves
|
|
|
1
|
|
(1
|
)
|
—
|
|
Dividends paid
|
|
—
|
|
(11
|
)
|
—
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - 30 June 2018 (Audited)
|
|
4 115
|
|
(878
|
)
|
(1 402
|
)
|
1 835
|
|
The currency conversion closing rates for the year ended 30 June 2019: US$1 = 14.13 (30 June 2018: US$1 = R13.81).
CONDENSED CONSOLIDATED
BALANCE SHEETS (US$)
(CONVENIENCE TRANSLATION)
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
Figures in million
|
|
30 June 2019
(Unaudited)
|
|
30 June 2018
(Audited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
|
1 964
|
|
2 243
|
|
Intangible assets
|
|
38
|
|
39
|
|
Restricted cash
|
|
6
|
|
6
|
|
Restricted investments
|
|
234
|
|
237
|
|
Investments in associates
|
|
8
|
|
6
|
|
Inventories
|
|
3
|
|
3
|
|
Other non-current assets
|
|
24
|
|
19
|
|
Derivative financial assets
|
|
14
|
|
6
|
|
|
|
|
|
Total non-current assets
|
|
2 291
|
|
2 559
|
|
|
|
|
|
Current assets
|
|
|
|
Inventories
|
|
139
|
|
127
|
|
Restricted cash
|
|
3
|
|
3
|
|
Trade and other receivables
|
|
75
|
|
83
|
|
Derivative financial assets
|
|
22
|
|
39
|
|
Cash and cash equivalents
|
|
70
|
|
51
|
|
|
|
|
|
Total current assets
|
|
309
|
|
303
|
|
Total assets
|
|
2 600
|
|
2 862
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
|
Share capital and reserves
|
|
|
|
Share capital
|
|
2 091
|
|
4 115
|
|
Other reserves
|
|
338
|
|
(1 402
|
)
|
Accumulated loss
|
|
(829
|
)
|
(878
|
)
|
|
|
|
|
Total equity
|
|
1 600
|
|
1 835
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
Deferred tax liabilities
|
|
49
|
|
83
|
|
Provision for environmental rehabilitation
|
|
216
|
|
240
|
|
Provision for silicosis settlement
|
|
67
|
|
67
|
|
Retirement benefit obligation
|
|
14
|
|
13
|
|
Other non-current liabilities
|
|
—
|
|
3
|
|
Borrowings
|
|
413
|
|
357
|
|
Derivative financial liabilities
|
|
12
|
|
1
|
|
|
|
|
|
Total non-current liabilities
|
|
771
|
|
764
|
|
|
|
|
|
Current liabilities
|
|
|
|
Borrowings
|
|
6
|
|
50
|
|
Trade and other payables
|
|
204
|
|
198
|
|
Derivative financial liabilities
|
|
19
|
|
15
|
|
|
|
|
|
Total current liabilities
|
|
229
|
|
263
|
|
Total equity and liabilities
|
|
2 600
|
|
2 862
|
|
The balance sheet for 30 June 2019 converted at a conversion rate of US$1 = R14.13 (30 June 2018: US$1 = R13.81)
The balance sheet at 30 June 2018 has been extracted from the 2018 annual financial statements.
CONDENSED CONSOLIDATED
CASH FLOW STATEMENTS (US$)
(CONVENIENCE TRANSLATION)
|
|
|
|
|
|
|
|
|
Year ended
|
Figures in million
|
|
30 June 2019
(Unaudited)
|
|
30 June 2018
(Audited)
|
|
|
|
|
|
CASH FLOW FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Cash generated by operations
|
|
356
|
|
334
|
|
Interest and dividends received
|
|
5
|
|
6
|
|
Interest paid
|
|
(27
|
)
|
(14
|
)
|
Income and mining taxes paid
|
|
(4
|
)
|
(23
|
)
|
|
|
|
|
Cash generated from operating activities
|
|
330
|
|
303
|
|
|
|
|
|
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Increase in restricted cash
|
|
(1
|
)
|
(2
|
)
|
Decrease in amounts invested in restricted investments
|
|
13
|
|
—
|
|
Consideration paid for the acquisition of Moab Khotsong operations
|
|
—
|
|
(300
|
)
|
Redemption of preference shares from associates
|
|
2
|
|
—
|
|
Capital distributions from investments
|
|
2
|
|
—
|
|
Additions to property, plant and equipment
|
|
(355
|
)
|
(356
|
)
|
|
|
|
|
Cash utilised by investing activities
|
|
(339
|
)
|
(658
|
)
|
|
|
|
|
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Borrowings raised
|
|
107
|
|
565
|
|
Borrowings repaid
|
|
(95
|
)
|
(312
|
)
|
Proceeds from the issue of shares
|
|
15
|
|
79
|
|
Dividends paid
|
|
—
|
|
(12
|
)
|
|
|
|
|
Cash generated from financing activities
|
|
27
|
|
320
|
|
Foreign currency translation adjustments
|
|
1
|
|
(9
|
)
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
19
|
|
(44
|
)
|
Cash and cash equivalents - beginning of year
|
|
51
|
|
95
|
|
|
|
|
|
Cash and cash equivalents - end of year
|
|
70
|
|
51
|
|
The currency conversion average rates for the 12 months ended 30 June 2019: US$1 = 14.18 (30 June 2018: US$1 = R12.85).
The closing balance translated at closing rate of 30 June 2019 US$1 = R14.13 (30 June 2018: US$1 = R13.81)
The cash flow statement for the year ended 30 June 2018 has been extracted from the 2018 annual financial statements.
SEGMENT REPORT
(US$/IMPERIAL)
FOR THE YEAR ENDED 30 JUNE 2019 (CONVENIENCE TRANSLATION) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Production cost
|
Production profit/(loss)
|
Mining assets
|
Capital expenditure
#
|
Ounces produced*
|
Tons milled*
|
|
30 June
|
30 June
|
30 June
|
30 June
|
30 June
|
30 June
|
30 June
|
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|
US$ million
|
US$ million
|
US$ million
|
US$ million
|
US$ million
|
oz
|
t'000
|
South Africa
Underground
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tshepong operations
|
330
|
|
419
|
|
280
|
|
296
|
|
50
|
|
123
|
|
446
|
|
585
|
|
80
|
|
78
|
|
256 146
|
|
302 026
|
|
1 777
|
|
1 893
|
|
Moab Khotsong
|
315
|
|
130
|
|
219
|
|
74
|
|
96
|
|
56
|
|
257
|
|
268
|
|
39
|
|
13
|
|
254 891
|
|
105 969
|
|
1 069
|
|
360
|
|
Bambanani
|
104
|
|
126
|
|
70
|
|
70
|
|
34
|
|
56
|
|
40
|
|
48
|
|
4
|
|
5
|
|
80 860
|
|
90 698
|
|
254
|
|
257
|
|
Joel
|
67
|
|
74
|
|
69
|
|
72
|
|
(2
|
)
|
2
|
|
67
|
|
72
|
|
13
|
|
19
|
|
50 379
|
|
52 566
|
|
473
|
|
501
|
|
Doornkop
|
136
|
|
152
|
|
110
|
|
110
|
|
26
|
|
42
|
|
195
|
|
197
|
|
22
|
|
21
|
|
105 229
|
|
110 245
|
|
805
|
|
767
|
|
Target 1
|
112
|
|
127
|
|
105
|
|
103
|
|
7
|
|
24
|
|
76
|
|
91
|
|
21
|
|
24
|
|
85 296
|
|
91 758
|
|
650
|
|
749
|
|
Kusasalethu
|
210
|
|
193
|
|
169
|
|
158
|
|
41
|
|
35
|
|
92
|
|
156
|
|
22
|
|
22
|
|
160 400
|
|
142 395
|
|
817
|
|
738
|
|
Masimong
|
96
|
|
117
|
|
85
|
|
90
|
|
11
|
|
27
|
|
8
|
|
4
|
|
8
|
|
10
|
|
74 237
|
|
84 332
|
|
664
|
|
714
|
|
Unisel
|
50
|
|
57
|
|
40
|
|
60
|
|
10
|
|
(3
|
)
|
3
|
|
3
|
|
3
|
|
7
|
|
38 966
|
|
41 152
|
|
283
|
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other surface operations
|
171
|
|
157
|
|
136
|
|
116
|
|
35
|
|
41
|
|
51
|
|
40
|
|
7
|
|
12
|
|
131 785
|
|
114 778
|
|
17 565
|
|
15 595
|
|
Total South Africa
|
1 591
|
|
1 552
|
|
1 283
|
|
1 149
|
|
308
|
|
403
|
|
1 235
|
|
1 464
|
|
219
|
|
211
|
|
1 238 189
|
|
1 135 919
|
|
24 357
|
|
21 989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hidden Valley
|
253
|
|
32
|
|
96
|
|
18
|
|
157
|
|
14
|
|
262
|
|
281
|
|
112
|
|
122
|
|
200 042
|
|
92 015
|
|
4 285
|
|
2 757
|
|
Total international
|
253
|
|
32
|
|
96
|
|
18
|
|
157
|
|
14
|
|
262
|
|
281
|
|
112
|
|
122
|
|
200 042
|
|
92 015
|
|
4 285
|
|
2 757
|
|
Total operations
|
1 844
|
|
1 584
|
|
1 379
|
|
1 167
|
|
465
|
|
417
|
|
1 498
|
|
1 745
|
|
331
|
|
333
|
|
1 438 231
|
|
1 227 934
|
|
28 642
|
|
24 746
|
|
#
Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of US$25 million (2018: US$22 million).
*Production statistics are unaudited and not reviewed.
DEVELOPMENT RESULTS
FOR THE YEAR ENDED 30 JUNE 2019
METRIC
|
|
|
|
|
|
|
|
|
|
|
|
Channel
|
|
|
Reef
|
Sampled
|
Width
|
Value
|
Gold
|
|
|
Meters
|
Meters
|
(Cm's)
|
(g/t)
|
(Cmg/t)
|
Tshepong
|
|
|
|
|
|
Basal
|
1 355
|
1 356
|
8.94
|
175.80
|
1 572
|
B Reef
|
715
|
572
|
132.08
|
28.39
|
3 750
|
All Reefs
|
2 069
|
1 928
|
45.48
|
48.78
|
2 218
|
Phakisa
|
|
|
|
|
|
Basal
|
1 254
|
1 248
|
42.89
|
29.53
|
1 267
|
All Reefs
|
1 254
|
1 248
|
42.89
|
29.53
|
1 267
|
Doornkop
|
|
|
|
|
|
South Reef
|
1 621
|
1 611
|
66.89
|
13.71
|
917
|
All Reefs
|
1 621
|
1 611
|
66.89
|
13.71
|
917
|
Kusasalethu
|
|
|
|
|
|
VCR Reef
|
1 217
|
1 156
|
59.12
|
24.79
|
1 466
|
All Reefs
|
1 217
|
1 156
|
59.12
|
24.79
|
1 466
|
Target 1
|
|
|
|
|
|
Elsburg
|
116
|
72
|
272.44
|
3.65
|
994
|
All Reefs
|
116
|
72
|
272.44
|
3.65
|
994
|
Masimong 5
|
|
|
|
|
|
Basal
|
794
|
698
|
73.49
|
17.32
|
1 273
|
B Reef
|
519
|
597
|
81.77
|
60.16
|
4 920
|
All Reefs
|
1 313
|
1 295
|
77.31
|
38.21
|
2 954
|
Unisel
|
|
|
|
|
|
Basal
|
1 453
|
1 204
|
148.71
|
10.19
|
1 516
|
All Reefs
|
1 453
|
1 204
|
148.71
|
10.19
|
1 516
|
Joel
|
|
|
|
|
|
Beatrix
|
1 288
|
1 320
|
80.96
|
13.40
|
1 085
|
All Reefs
|
1 288
|
1 320
|
80.96
|
13.40
|
1 085
|
Moab
Khotsong
|
|
|
|
|
|
Vaal Reef
|
1 049
|
916
|
95.79
|
29.60
|
2 835
|
C Reef
|
153
|
202
|
11.22
|
35.44
|
398
|
All Reefs
|
1 202
|
1 118
|
80.51
|
29.75
|
2 395
|
Total Harmony
|
|
|
|
|
Basal
|
4 856
|
4 506
|
65.69
|
21.71
|
1 426
|
Beatrix
|
1 288
|
1 320
|
80.96
|
13.40
|
1 085
|
B Reef
|
1 233
|
1 169
|
106.39
|
40.86
|
4 347
|
Elsburg
|
116
|
72
|
272.44
|
3.65
|
994
|
Vaal Reef
|
1 049
|
916
|
95.79
|
29.60
|
2 835
|
South Reef
|
1 621
|
1 611
|
66.89
|
13.71
|
917
|
VCR
|
1 217
|
1 156
|
59.12
|
24.79
|
1 466
|
C Reef
|
153
|
202
|
11.22
|
35.44
|
398
|
All Reefs
|
11 532
|
10 952
|
74.23
|
23.20
|
1 722
|
VCR: Ventersdorp Contract Reef
IMPERIAL
|
|
|
|
|
|
|
|
|
|
|
|
Channel
|
|
|
Reef
|
Sampled
|
Width
|
Value
|
Gold
|
|
|
Feet
|
Feet
|
(Inch)
|
(oz/t)
|
(In.oz/t)
|
Tshepong
|
|
|
|
|
|
Basal
|
4 445
|
4 449
|
4.00
|
4.51
|
18
|
B Reef
|
2 344
|
1 877
|
52.00
|
0.83
|
43
|
All Reefs
|
6 789
|
6 325
|
18.00
|
1.42
|
25
|
Phakisa
|
|
|
|
|
|
Basal
|
4 113
|
4 094
|
17.00
|
0.86
|
15
|
All Reefs
|
4 113
|
4 094
|
17.00
|
0.86
|
15
|
Doornkop
|
|
|
|
|
|
South Reef
|
5 319
|
5 285
|
26.00
|
0.41
|
11
|
All Reefs
|
5 319
|
5 285
|
26.00
|
0.41
|
11
|
Kusasalethu
|
|
|
|
|
|
VCR Reef
|
3 991
|
3 794
|
23.00
|
0.73
|
17
|
All Reefs
|
3 991
|
3 794
|
23.00
|
0.73
|
17
|
Target 1
|
|
|
|
|
|
Elsburg
|
380
|
236
|
107.00
|
0.11
|
11
|
All Reefs
|
380
|
236
|
107.00
|
0.11
|
11
|
Masimong 5
|
|
|
|
|
|
Basal
|
2 604
|
2 290
|
29.00
|
0.50
|
15
|
B Reef
|
1 702
|
1 959
|
32.00
|
1.77
|
56
|
All Reefs
|
4 306
|
4 249
|
30.00
|
1.13
|
34
|
Unisel
|
|
|
|
|
|
Basal
|
4 768
|
3 950
|
59.00
|
0.30
|
17
|
All Reefs
|
4 768
|
3 950
|
59.00
|
0.30
|
17
|
Joel
|
|
|
|
|
|
Beatrix
|
4 224
|
4 331
|
32.00
|
0.39
|
12
|
All Reefs
|
4 224
|
4 331
|
32.00
|
0.39
|
12
|
Moab
Khotsong
|
|
|
|
|
|
Vaal Reef
|
3 443
|
3 005
|
38.00
|
0.86
|
33
|
C Reef
|
501
|
663
|
4.00
|
1.14
|
5
|
All Reefs
|
3 944
|
3 668
|
32.00
|
0.86
|
28
|
Total Harmony
|
|
|
|
|
Basal
|
15 930
|
14 783
|
26.00
|
0.63
|
16
|
Beatrix
|
4 224
|
4 331
|
32.00
|
0.39
|
12
|
B Reef
|
4 046
|
3 835
|
42.00
|
1.19
|
50
|
Elsburg
|
380
|
236
|
107.00
|
0.11
|
11
|
Vaal Reef
|
3 443
|
3 005
|
38.00
|
0.86
|
33
|
South Reef
|
5 319
|
5 285
|
26.00
|
0.41
|
11
|
VCR
|
3 991
|
3 794
|
23.00
|
0.73
|
17
|
C Reef
|
501
|
663
|
4.00
|
1.14
|
5
|
All Reefs
|
37 834
|
35 933
|
29.00
|
0.68
|
20
|