UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6­K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a­16 OR 15d­16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For August 20, 2019

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 40­F.)

Form 20F ☒ Form 40F ☐

(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 12g3­2(b) under the Securities Exchange Act of 1934.)

Yes ☐ No ☒


 



FY19 RESULTS
FOR THE YEAR ENDED 30 JUNE 2019
Harmony Gold Mining Company Limited
(“Harmony” or “company”)
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228
FY19 KEY FEATURES
• 17% increase in gold production to 1.438Moz, resulting in a 23% increase in production profit
• 2% increase in underground recovered grade to 5.59g/t
• Moab Khotsong and Hidden Valley boost cash flow – generated R1 375 million (US$97 million) in operating free cash flow
• Successful hedging strategy topped up – secured cash flow margins, contributing R477million (US$34 million) to cash flow
• 19% increase in headline earnings per share to 204 SA cents (8% increase to 14 US cents)
OPERATING RESULTS
 
Year ended
June 2019

Year ended
June 2018

%
Change

Gold produced
kg
44 734

38 193

17

oz
1 438 231

1 227 934

17

Underground grade
g/t
5.59

5.48

2

Gold price received
R/kg
586 653

570 709

3

US$/oz
1 287

1 380

(7
)
Cash operating costs
R/kg
439 722

421 260

(4
)
US$/oz
965

1 018

5

Total costs and capital¹
R/kg
544 487

499 028

(9
)
US$/oz
1 194

1 207

1

All-in sustaining costs²
R/kg
550 005

508 970

(8
)
US$/oz
1 207

1 231

2

Production profit
R million
6 588

5 356

23

US$ million
465

416

12

Exchange rate
R/US$
14.18

12.85

10

¹ FY18 excludes investment capital for Hidden Valley
² Excludes share-based payment charge
FINANCIAL RESULTS
 
Year ended
June 2019

Year ended
June 2018

%
Change

Basic loss per share
SA cents
(498
)
(1 003
)
50

US cents
(35
)
(72
)
51

Headline earnings
R million
1 067

763

40

US$ million
75

58

29

Headline earnings per share
SA cents
204

171

19

US cents
14

13

8

HARMONY'S ANNUAL REPORTS
Harmony’s Integrated Annual Report and its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for the financial year ended 30 June 2019 will be available on our website (www.harmony.co.za/invest) on 24 October 2019. Mineral resource and reserve information as at 30 June 2019 is included in this report.


SHAREHOLDER INFORMATION
Issued ordinary share capital at 30 June 2019
539 841 195

Issued ordinary share capital at 30 June 2018
500 251 751

MARKET CAPITALISATION
At 30 June 2019 (ZARm)
17 135

At 30 June 2019 (US$m)
1 215

At 30 June 2018 (ZARm)
10 615

At 30 June 2018 (US$m)
774

HARMONY ORDINARY SHARES AND ADR PRICES
12-month high (1 July 2018 – 30 June 2019) for ordinary shares
R32.06

12-month low (1 July 2018 – 30 June 2019) for ordinary shares
R20.63

12-month high (1 July 2018 – 30 June 2019) for ADRs
US$2.27

12-month low (1 July 2018 – 30 June 2019) for ADRs
US$1.44

FREE FLOAT
100%

 
 
ADR RATIO
1:1

 
 
JSE LIMITED
HAR

Range for year (1 July 2018 – 30 June 2019 closing prices)
R21.14 – R31.74

Average daily volume for the year (1 July 2018 – 30 June 2019)
1 954 268 shares

Range for previous year (1 July 2017 – 30 June 2018 closing prices)
R19.24 – R28.80

Average daily volume for the previous year (1 July 2017 – 30 June 2018)
1 678 662 shares

NEW YORK STOCK EXCHANGE
HMY

Range for year (1 July 2018 – 30 June 2019 closing prices)
US$1.62 – US$2.27

Average daily volume for the year (1 July 2018 – 30 June 2019)
3 715 154

Range for previous year (1 July 2017 – 30 June 2018 closing prices)
US$1.52 – US$2.50

Average daily volume for the previous year (1 July 2017 – 30 June 2018)
3 933 313

INVESTORS' CALENDAR
Release of Harmony’s FY19 Integrated Annual Report
24 October 2019

Annual General Meeting
22 November 2019




DIRECTORATE AND ADMINISTRATION
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: www.harmony.co.za
DIRECTORS
PT Motsepe* (chairman)
M Msimang*^ (lead independent director)
JM Motlaba*^ (deputy chairman)
PW Steenkamp (chief executive officer)
F Abbott (financial director)
JA Chissano*1^, FFT De Buck*^, KV Dicks*^, Dr DSS Lushaba*^
HE Mashego**, HG Motau*^, KT Nondumo*^, VP Pillay*^
GR Sibiya*^, MV Sisulu*^, JL Wetton*^, AJ Wilkens*
* Non-executive
** Executive
^ Independent
1 Mozambican
INVESTOR RELATIONS
E-mail: HarmonyIR@harmony.co.za
Mobile: +27 82 759 1775
Telephone: +27 11 411 2314
Website: www.harmony.co.za
COMPANY SECRETARIAT
Telephone: +27 11 411 6020
E-mail: companysecretariat@harmony.co.za
TRANSFER SECRETARIES
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, Ameshoff Street, Braamfontein
PO Box 4844, Johannesburg, 2000, South Africa
Telephone: 0861 546 572
E-mail: info@linkmarketservices.co.za
Fax: +27 86 674 4381
ADR* DEPOSITARY
Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
E-mail queries: db@amstock.com
Toll free (within US): +1-886-249-2593
Int: +1-718-921-8124
Fax: +1-718-921-8334
*ADR: American Depositary Receipts
SPONSOR
JP Morgan Equities South Africa (Pty) Ltd
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
REGISTRATION NUMBER
1950/038232/06
Incorporated in the Republic of South Africa
ISIN
ZAE 000015228



FORWARD LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), with respect to our 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.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues, and the potential benefit of acquisitions (including statements regarding growth and cost savings) wherever they may occur in this report and the exhibits, are necessarily estimates reflecting the best judgment of our senior management 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 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, Papua New Guinea, Australia and elsewhere; estimates of future earnings, and the sensitivity of earnings to gold and other metals prices; estimates of future gold and other metals production and sales; estimates of future cash costs; estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices; estimates of provision for silicosis settlement; statements regarding future debt repayments; estimates of future capital expenditures; the success of our business strategy, exploration and development activities and other initiatives; future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings and financing plans; estimates of reserves statements regarding future exploration results and the replacement of reserves; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as well as at existing operations; fluctuations in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labor disruptions related to industrial action or health and safety incidents; power cost increases as well as power stoppages, fluctuations and usage constraints; supply chain shortages and increases in the prices of production imports and the availability, terms and deployment of capital; our ability to hire and retain senior management, sufficiently technically-skilled employees, as well as our ability to achieve sufficient representation of historically disadvantaged HDSAs in management positions; our ability to comply with requirements that we operate in a sustainable manner and provide benefits to affected communities; potential liabilities related to occupational health diseases; changes in government regulation and the political environment, particularly tax and royalties, mining rights, health and safety, environmental regulation and business ownership including any interpretation thereof; court decisions affecting the South African mining industry, including, without limitation, regarding the interpretation of mining rights; our ability to protect our information technology and communication systems and the personal data we retain; risks related to the failure of internal controls; the outcome of pending or future litigation or regulatory proceedings; fluctuations in exchange rates any further downgrade of South Africa's credit rating; and currency devaluations and other macroeconomic monetary policies; the adequacy of the Group’s insurance coverage; and socio-economic or political instability in South Africa, Papua New Guinea, Australia and other countries in which we operate.
For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the Company’s latest Integrated Annual Report and Form 20-F which is on file with the Securities and Exchange Commission, as well as the Company’s other Securities and Exchange Commission filings. The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law. The foregoing factors and others described under “Risk Factors” should not be construed as exhaustive.



COMPETENT PERSON'S DECLARATION
In South Africa, Harmony employs an ore reserve manager at each of its operations who takes responsibility for the compilation and reporting of mineral resources and mineral reserves at their operations. In Papua New Guinea, competent persons are appointed for the mineral resources and mineral reserves for specific projects and operations.
The mineral resources and mineral reserves in this report are based on information compiled by the following competent persons:
Resources and reserves of South Africa:
Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA, who has 24 years’ relevant experience and is registered with the South African Council for Natural Scientific Professions (SACNASP), a member of the South African Institute of Mining and Metallurgy (SAIMM) and a member of the Geological Society of South Africa (GSSA).
Mr Boshoff is Harmony's Lead Competent Person.
Jaco Boshoff
 
Physical address:
Postal address:
Randfontein Office Park
Corner of Main Reef Road and Ward Avenue
Randfontein
South Africa
PO Box 2
Randfontein
1760
South Africa
Resources and reserves of Papua New Guinea:
Gregory Job, BSc, MSc, who has 31 years’ relevant experience and is a member of the Australian Institute of Mining and Metallurgy (AusIMM).
Greg Job
 
Physical address:
Postal address:
Level 2
189 Coronation Drive
Milton, Queensland 4064
Australia
PO Box 1562
Milton, Queensland
4064
Australia
Both these competent persons, who are full-time employees of Harmony Gold Mining Company Limited, consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.



CONTENTS
PAGE
Shareholder information and contact details
Competent person's declaration
Message from the chief executive officer
Summary update of Harmony's mineral resources and mineral reserves
Operating results – year on year (Rand/Metric)
12
Operating results – year on year (US$/Imperial)
Condensed consolidated income statements (Rand)
Condensed consolidated statements of comprehensive income (Rand)
Condensed consolidated statement of changes in equity (Rand)
Condensed consolidated balance sheets (Rand)
Condensed consolidated cash flow statements (Rand)
Notes to the condensed consolidated financial statements
Segment report (Rand/Metric)
Condensed consolidated income statements (US$)
Condensed consolidated statements of comprehensive income (US$)
Condensed consolidated statement of changes in equity (US$)
Condensed consolidated balance sheets (US$)
Condensed consolidated cash flow statements (US$)
Segment report (US$/Imperial)
Development results – Metric and Imperial



MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
SAFETY
Having tragically lost 11 employees in FY19, I wish to extend my personal, heartfelt condolences to their families, colleagues and friends at the outset of my message to Harmony’s shareholders. Safety is my number one value and also that of Harmony.
Together with each and every employee, my aim is to ensure safe production, by preventing fatalities and embedding a safety culture. It is important that every employee returns home each day – both safe and healthy.
Harmony has set out the following strategic priorities in order to achieve a safe working place by focusing on leadership, risk management and people:
•
Passionate and active leadership
•
Effective risk and critical control management
•
Effective safety management systems
•
Ongoing organisational learning
•
A proactive safety culture and an engaged workforce
Harmony embarked on its safety improvement journey in FY16 in order to align with global best practice and move towards a pro-active and risk based approach. Harmony has subsequently adopted a four-layered risk management safety approach, rolled out the associated safety training, implemented new safety systems and have put in place a secondary level safety assurance team. Our safety improvement journey is continuous and will consistently entrench safe behaviour.
We have seen improvements in FY19. Harmony's group lost time injury frequency rate improved to 6.12 (6.26 in FY18) and the group fatality injury frequency rate improved to 0.12 (0.16 in FY18) (frequency rates are per 1 000 000 hours worked).
YEAR-ON-YEAR OPERATIONAL RESULTS
In line with our strategy to produce safe, profitable ounces and increasing margins through operational excellence and value accretive acquisitions, both annual gold production and cash flows were boosted by the inclusion of a full year of production from Moab Khotsong and Hidden Valley respectively.
The group achieved a 17% increase in gold production at 1.44 million ounces, in line with annual production guidance of 1.45 million ounces. Underground recovered grade increased by 2% to 5.59g/t, the seventh consecutive year of increasing grade.
The performance from our operations is summarised below:
•
Moab Khotsong: the first full financial year inclusion of Moab Khotsong in our portfolio resulted in gold production of 7 928kg (254 891oz), achieving a recovered grade of 8.17g/t. We are confident that the operation will improve its grade performance in FY20;
•
Hidden Valley: safety, good operational momentum and disciplined cost management contributed to Hidden Valley achieving gold production of 6 222kg (200 042oz) and generating operational free cash flow of R573 million (US$40 million) (at a margin of 16%). Stripping of the cutbacks will continue for the next two and a half years, to deliver an average life of mine all-in sustaining cost of below US$950/oz;
•
Kusasalethu: gold production increased by 13% to 4 989kg (160 400oz), as a result of an 11% increase in tonnes milled to 742 000t and a 2% increase in recovered grade to 6.72g/t. The operation has been free cash flow positive for the past three financial years, generating operating free cash flow of R283 million in FY19, a more than 100% increase year on year;
•
Unisel: operational free cash flow increased by more than 100% to R99 million ( more than a 100% to US$7 million) as a result of the 39% increase in recovered grade to 4.73g/t. Gold production decreased by 5% to 1 212kg (38 966oz), following the successful restructuring of the operation in the second half of FY18 where mining is focused on targeted high grade areas of the shaft pillar;
•
Waste rock dumps: gold production increased by 40%, as a result of a 53% increase in tonnes milled to 4 307 000t. Higher production is mainly due to the treatment of a full financial year of the Moab Khotsong waste rock dumps and increased production from processing of the Doornkop waste rock dumps;
•
Central plant reclamation: gold production increased by 15% to 579kg (18 615oz), mainly due to a 14% increase in grade recovered to 0.150g/t;
•
Phoenix (tailings retreatment): gold production increased by 3% to 756kg (24 306oz), due to a 3% increase in tonnes processed to 6.133Mt;
•
Bambanani: gold production decreased by 11% to 2 515kg (80 860oz), due to the 10% decrease in recovered grade to 10.93g/t. This is in line with an overall lower grade profile as the shaft pillar is extracted;
•
Kalgold: gold production remained flat at 1 249kg (40 156oz);
•
Doornkop: gold production decreased by 5% to 3 273kg (105 229oz), as a result of a 9% decrease in recovered grade to 4.48g/t, partially offsetting a 5% increase in tonnes milled;
•
Joel: Gold production decreased by 4% to 1 567kg (50 379oz), as a result of a 6% decrease in tonnes milled to 429 000t. Grade increased by 1% to 3.65g/t. The Joel decline project is nearing completion and an increase in both production and grade is expected in FY20;
•
Target 1: gold production decreased by 7%, due to a 14% decrease in tonnes milled to 588 000t, partially offsetting the 7% increase in recovered grade to 4.51g/t. A capital efficiency project to move the ore and rock crusher, associated mining activities and services closer to the working areas is underway to improve the overall efficiency and productivity of the mining circuit at Target 1;
•
Masimong: gold production decreased by 12% to 2 309kg (74 237oz), due to a 5% decrease in recovered grade to 3.84g/t and a 7% decrease in tonnes milled to 602 000t. The operations performance was impacted by a reduction in higher grade B reef year on year;


•
Tshepong operations: gold production decreased by 15% to 7 967kg (256 146oz), due to a 10% decrease in recovered grade to 4.94g/t and a 6% decrease in tonnes milled. The performance of the Tshepong Operations was mainly impacted by a lack of flexibility due to a reduction in the availability of stoping panels to mine. Post year end we have already seen improvements in the mine’s overall performance, following stoping development and improving overall mining and grade discipline.
All-in sustaining unit costs for the group increased by 8% to R550 005/kg in FY19 mainly due to lower production at Tshepong and inflationary increases in wages and salaries and Eskom electricity tariff increases. In US dollar terms, all-in sustaining unit costs decreased by 2% to US$1 207/oz, mainly due to the weakening of the average Rand exchange rate against the US dollar by 10% to R14.18 in FY19.
Capital expenditure for FY19 increased by 9% to R4 687 million (decrease of 1% to US$331 million). The increase is mainly due to the inclusion of Moab Khotsong for the full twelve month period in FY19 (compared to the four months in FY18).
YEAR-ON-YEAR FINANCIAL RESULTS
Revenue
Revenue increased by R6 460 million or 32% (US$307 million or 19%) mainly due to an 18% increase in gold sold and a R515 million (US$36 million) increase in silver sales. The average gold price received increased by 3% to R586 653/kg (from R570 709/kg in FY18).
Forward gold sale contracts of 6 998kg (or 225 000oz) with an average price of R638 007/kg matured during FY19.
Production costs
Production costs increased by R5 240 million or 35% (US$259 million) during FY19 mainly due to the inclusion of Moab Khotsong for the full year as well as continuing production at Hidden Valley for the full year.
Amortisation and depreciation
Amortisation and depreciation is R1 484 million (US$105 million) higher for FY19 year owing mainly to full year production at Hidden Valley (R1   604 million (US$113 million) increase) as well as Moab Khotsong (R178 million (US$13 million) increase) included for the full year.
Impairment of assets
An increase in the planned long term gold price assumption of R585 000/kg 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 group’s overall 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.
Gains on derivatives
Gains on derivatives recorded a net gain of R484 million (US$34 million) for FY19 (FY18: R99 million (US$8 million)). The gains relate primarily to foreign exchange derivatives entered into during the year when the spot US$/Rand exchange rate was weaker than the closing rate of US$/R14.13.
The hedging programmes realised cash gains of R477 million (US$34 million) for FY19. Management continues to top-up these programmes when the market presents attractive opportunities to do so. Refer to note 10 for a summary of all the open hedging contracts as at 30 June 2019.
Net loss and headline earnings
The net loss for FY19 was R2 607 million (US$185 million), compared to a loss of R4 473 million (US$321 million) for FY18. Moab Khotsong and Hidden Valley’s inclusion for a full financial year as well as lower impairments recorded in FY19 contributed to the improvement.
Headline earnings amounted to 204 SA cents (14 US cents) compared to 171 SA cents (13 US cents) in FY18.
Borrowings
Borrowings as at 30 June 2019 include US$175 million utilised on the US$ term facility and US$120 million on the US$ revolving credit facility (RCF). The group’s South East Asia operations have an outstanding loan of US$20 million used to finance the acquisition of fleet equipment. R1.5 billion has been utilised on the group’s R2 billion facility. Net debt remained stable at R4 922 million at 30 June 2019 compared to R4 908 million at 30 June 2018 (in US$ terms a decrease of US$9 million from US$357 million to US$348 million).
MINERAL RESOURCES AND MINERAL RESERVES
Year-on-year, Harmony's total attributable gold and gold equivalent mineral resources remained steady at 117.3Moz as at 30 June 2019. The total gold contained in the mineral resources at the South African operations represents 61% of the company total, with the Papua New Guinea (PNG) operations representing 39% of Harmony’s total gold and gold equivalent mineral resources as at 30   June 2019.
Harmony’s total attributable gold and gold equivalent mineral reserves amounts to 36.5Moz, a 0.8% decrease from the 36.8Moz declared at 30 June 2018. The gold reserve ounces in South Africa represent 47%, while the PNG gold and gold equivalent ounces represent 53% of Harmony’s total mineral reserves as at 30 June 2019. See page 7 for our reserves and resources statement.
SILICOSIS CLASS ACTION UPDATE
On 26 July 2019, the South Gauteng High Court approved the class action silicosis settlement agreement proposed between the Gold Working Group companies, which includes Harmony, and the representatives of the claimants in the mineworkers class-action. This is a historic settlement, resulting from three years of extensive negotiations. The agreement provides meaningful compensation to all eligible workers suffering from silicosis and/or tuberculosis who worked in the Gold Working Group companies’ mines from 12 March 1965 to date. This is the very first class action settlement of its kind in South Africa. The agreement affects mineworkers who contracted silicosis or pulmonary  tuberculosis during or after being employed as gold miners from March 1965.


The Tshiamiso Trust (Setswana word meaning “to make good” or “to correct”) will track and trace class members and administer claims and payments to eligible claimants following the completion of the legal opt out period as set out be the Court.
For more details refer to www.silicosissettlement.co.za or www.oldcollab.co.za.
WAFI-GOLPU PERMITTING UPDATE
Wafi-Golpu is a quality copper-gold ore body and tier one asset, which has the potential to contribute substantial benefits to all stakeholders.
Permitting of the Wafi-Golpu project has been delayed by the period culminating in the PNG Parliament’s election of a new Prime Minister, as well as the delay associated with legal proceedings between the National Government and the Morobe Provincial Government regarding the internal distribution of PNG’s economic interests in the project.
The permitting delays compelled the Wafi-Golpu Joint Venture (“WGJV") to defer and revise the planned work program it had planned to commence this calendar year.
The PNG Government continues to signal its support for the project and the WGJV is well placed to resume discussions with the PNG Government, given the constructive progress already made on the various agreements required for completion of the permitting process and the grant of a Special Mining Lease. It is difficult to estimate the duration of this delay and the market will be advised when discussions recommence.
Harmony and Newcrest Mining Limited each currently own 50% of Wafi-Golpu through the WGJV. The State of PNG retains the right to purchase, at a pro rata share of accumulated exploration expenditure, up to 30% equity interest in any mineral discovery at Wafi-Golpu, at any time before the commencement of mining.
FY20 GROUP PRODUCTION AND COST GUIDANCE
In the next financial year, we plan to produce approximately 1.46Moz at an all-in sustaining unit cost of R579 000/kg.
IN CONCLUSION
Global economic risks, combined with an ever evolving gold industry, support a higher gold price. As a highly geared gold share, Harmony is well positioned to benefit from the uplift in gold prices. Not only do we have a tier 1 project such as Wafi-Golpu in our portfolio, but we also have a pipeline of organic projects to consider. Harmony is known for its competitive strength of establishing mutually beneficial partnerships with stakeholders, enabling the company to produce more than 1.4 million ounces of gold per annum in a rising gold price environment.
Throughout FY20, we will continue to focus on producing safe, profitable production, pursue safe, value accretive acquisitions and strengthen our cash flows. Value – rather than volume – will translate to shareholder returns in the long term.



SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES AS AT 30 JUNE 2019
Harmony’s statement of mineral resources and mineral reserves as at 30 June 2019 is produced in accordance with the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC). It should be noted that the mineral resources are reported inclusive of the mineral reserves.
This report provides a summary of the update, while the detailed statement of the mineral resources and mineral reserves will be available on our website as from 20 August 2019 and published in the Integrated Report on 24 October 2019, which will be available at www.harmony.co.za/invest. Refer to the website (www.harmony.co.za) for the updated reserves and resources tables as at 30 June 2019.
Introduction
Harmony’s strategy is to produce safe, profitable ounces and increase margins. This includes delivering safely on our operational plans, reducing costs and improving productivity. Harmony’s growth journey entails acquiring higher grade assets.
Harmony – Total
The company’s attributable gold and gold equivalent mineral resources are declared as 117.3Moz as at 30 June 2019, a 0.4% decrease year on year from the 117.8Moz declared as at 30 June 2018. The total gold contained in the mineral resources at the South African operations represents 61% of the company total, with the PNG operations representing 39% of Harmony’s total gold and gold equivalent mineral resources as at 30 June 2019. Harmony’s attributable gold and gold equivalent mineral reserves amounts to 36.5Moz, a 0.8% decrease from the 36.8Moz declared at 30 June 2018. The gold reserve ounces in South Africa represent 47%, while the PNG gold and gold equivalent ounces represent 53% of Harmony’s total mineral reserves as at 30   June 2019.
South Africa
South African underground operations
The company’s mineral resources at the South African underground operations as at 30 June 2019 are 60.6Moz (210.4Mt at 8.96g/t), a decrease of 1.1% year on year from the 61.3Moz (216.7Mt at 8.79/t) declared as at 30 June 2018. The company’s mineral reserves at the South African underground operations as at 30 June 2019 are 10.6Moz (56.7Mt at 5.83g/t), an increase of 4.9% year on year from the 10.1Moz (52.4Mt at 6.02g/t) declared as at 30 June 2018. The increase is mainly due to the reserves added from Moab Khotsong, Tshepong and Doornkop.
South African surface operations, including Kalgold
The company’s mineral resources at the South African surface operations as at 30 June 2019 are 10.8Moz (1 109.5Mt at 0.30g/t) an increase of 14.6% mainly due to the exploration drilling at Kalgold. The company’s mineral reserves after normal depletion at the South African surface operations as at 30 June 2019 are 6.6Moz (808.8Mt at 0.26g/t), a decrease of 2.0% due to depletion.
Papua New Guinea (PNG)
Papua New Guinea operations
The company’s attributable gold and gold equivalent mineral resources at the PNG operations as at 30 June 2019 are 45.9Moz, a decrease of 2.5% year on year from the 47.1Moz declared as at 30 June 2018. This decrease is mainly due to depletion, a new resource model at Hidden Valley and changes in the metal price. The company’s gold and gold equivalent mineral reserves at the PNG operations as at 30 June 2019 are 19.3Moz, a decrease of 3.4% year on year from the 19.9Moz declared as at 30 June 2018.
ASSUMPTIONS
In converting the mineral resources to mineral reserves, the following commodity prices and exchange rates were applied:
•
A gold price of US$1 290/oz
•
An exchange rate of US$/R14.11
•
The above parameters resulted in a rand gold price of R585 000/kg for the South African assets
•
The Hidden Valley mine and the Wafi-Golpu project used commodity prices of US$1 290/oz Au, US$17.00/oz Ag, US$9.00/lb Mo and US$3.00/lb Cu at an exchange rate of AUD1.36 per US$
•
Gold equivalent ounces are calculated assuming US$1 290/oz Au, US$3.00/lb Cu and US$17.00/oz Ag, and assuming a 100% recovery for all metals
Independent review
The Mineral Corporation has reviewed Harmony’s SAMREC statement and performed a detail review of the mineral resources and reserves at Doornkop. The mineral resources and reserves at Moab Khotsong and the Wafi-Golpu Joint Venture were reviewed by SRK Consulting. Hidden Valley's mineral reserves and resources were reviewed by Derisk Geomining Consultants.

Note: Au = gold; Cu = copper; Ag = Silver, Mo = Molybdenum, Moz = million ounces.


 
Mineral resources: gold and gold equivalents
Measured
Indicated
Inferred
Total
 
Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

 
SA underground
68.7

8.61

19 024

69.2

9.20

20 454

72.5

9.05

21 111

210.4

8.96

60 590

 
SA surface incl Kalgold
272.8

0.30

2 589

771.6

0.30

7 371

65.1

0.39

824

1 109.5

0.30

10 784

 
Total South Africa
341.5

 
21 614

840.8

 
27 825

137.6

 
21 935

1 319.9

 
71 374

 
Hidden Valley
2.8

0.97

86

66.5

1.54

3 291

1.8

1.12

63

71.0

1.51

3 439

 
Wafi-Golpu system*
–

–

–

397.6

0.84

10 763

110.5

0.77

2 728

508.1

0.83

13 491

 
Kili Teke
–

–

–

–

–

–

237.0

0.24

1 810

237.0

0.24

1 810

 
Total Papua New Guinea
2.8

 
86

464.1

 
14 053

349.2

 
4 601

816.1

 
18 740

 
Total gold resources
344.3

 
21 699

1 304.9

 
41 878

486.8

 
26 537

2 136.0

 
90 115

 
Hidden Valley – gold equivalent ounces
2.7

 
24

64.5

 
713

1.5

 
16

68.6

 
753

 
 
Wafi-Golpu – gold equivalent ounces*
–

–

344.0

19 139

91.9

3 199

435.9

22 338

 
 
Kili Teke – gold equivalent ounces
–

–

–

–

237.0

4 108

237.0

4 108

 
 
Total gold equivalent resources**
2.7

 
24

408.5

 
19 852

330.4

 
7 323

741.6

 
27 200

 
Total Harmony gold and gold equivalent resource**
344.3

 
21 724

1 304.9

 
61 731

486.8

 
33 860

2 136.0

 
117 314

Mineral resources: silver and copper (used in equivalent calculations)
Measured
Indicated
Inferred
Total
Tonnes
(Mt)

g/t

Silver ‘000oz
Tonnes
(Mt)

g/t

Silver ‘000oz
Tonnes
(Mt)

g/t

Silver ‘000oz

Tonnes
(Mt)

g/t

Silver ‘000oz

Hidden Valley
2.7

21.13

1 863
64.5

26.12

54 151
1.5

25.21

1 256

68.8

25.90

57 270

 
Measured
Indicated
Inferred
Total
Tonnes
(Mt)

%

Copper ‘Mlb
Tonnes
(Mt)

%

Copper ‘Mlb
Tonnes
(Mt)

%

Copper ‘Mlb

Tonnes
(Mt)

%

Copper ‘Mlb

Golpu*
–

–

–
344.0

1.09

8 232
67.9

0.85

1 273

411.9

1.05

9 505

Nambonga*
–

–

–
–

–

–
24.0

0.20

104

24.0

0.20

104

Kili Teke
–

–

–
–

–

–
237.0

0.34

1 767

237.0

0.34

1 767

Total
–

–

–
344.0

1.09

8 232
328.8

0.43

3 143

672.8

0.77

11 375


Mineral reserves:
gold and gold equivalents
Proved
Probable
Total
Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

Tonnes
(Mt)

g/t

Gold ‘000oz

SA underground
40.6

5.86

7 649

16.2

5.75

2 987

56.7

5.83

10 636

SA surface incl Kalgold
173.8

0.30

1 689

634.9

0.24

4 952

808.8

0.26

6 641

Total South Africa
214.4

 
9 338

651.1

 
7 939

865.5

 
17 277

Hidden Valley
2.8

0.97

86

13.9

1.91

854

16.7

1.75

939

Wafi-Golpu system*
 
 
 
202.3

0.86

5 573

202.3

0.86

5 573

Total Papua New Guinea
2.8

 
86

216.2

 
6 427

219.0

 
6 512

Total gold reserves
217.1

 
9 424

867.3

 
14 366

1 084.5

 
23 789

Hidden Valley – gold equivalent ounces
2.7

 
25

13.6

 
175

16.3

 
199

Wafi-Golpu – gold equivalent ounces*
 
 
 
202.3

 
12 538

202.3

 
12 538

Total gold equivalent reserves**
2.7

 
25

215.9

 
12 713

218.6

 
12 738

Total Harmony gold and gold equivalent reserves**
217.1

 
9 448

867.3

 
27 079

1 084.5

 
36 527

Mineral reserves:
silver and copper
(used in equivalent calculations)
Proved
Probable
Total
Tonnes
(Mt)

g/t

Silver ‘000oz

Tonnes
(Mt)

g/t

Silver ‘000oz

Tonnes
(Mt)

g/t

Silver ‘000oz

Hidden Valley
2.7

21.13

1 863

13.6

30.41

13 271

16.3

28.85

15 134

 
Proved
Probable
Total
Tonnes
(Mt)

%

Copper ‘Mlb

Tonnes
(Mt)

%

Copper ‘Mlb

Tonnes
(Mt)

%

Copper ‘Mlb

Golpu*
–

–

–

202.3

1.21

5 393

202.3

1.21

5 393

* Represents Harmony’s equity portion of 50%.
**In instances where individual deposits may contain multiple valuable commodities with a reasonable expectation of being recovered (for example gold and copper in a single deposit) Harmony computes a gold equivalent to more easily assess the value of the deposit against gold-only mines. Harmony does this by calculating the value of each of the deposits commodities, then dividing the product by the price of gold. For example, the gold equivalent ounces for the copper portion of a deposit would be calculated as follows: (copper pounds x copper price per pound)/gold price per ounce. All gold equivalent calculations are done using metal prices and parameters as stipulated above.


EXPLORATION
Our exploration strategy is to pursue brownfields exploration targets close to existing infrastructure. This will drive short to medium term organic ore reserve replacement and growth to support our current strategy of increasing quality ounces and to mitigate the risk of a depleting ore reserve base. Key work streams underpinning the FY19 exploration program include:
•
brownfield exploration at Hidden Valley and Kalgold to optimise existing open pit operations and extend mine life;
•
brownfield exploration at our underground operations in South Africa; and
•
greenfield exploration at Target North.
South Africa
B-Reef
B Reef exploration at the Tshepong Operations continued during FY19 and a new block of ground was identified at the Phakisa Section where development towards the B Reef will commence in FY20.
Joel Mine Beatrix Reef extensions
The underground exploration drilling at Joel Mine identified well mineralised remnant blocks of Beatrix Reef within the Klippan Erosion channel. These blocks have been added to the resources and reserves of the mine.
Kalgold
A total of 26 790 meters of drilling completed in FY19 with a total to date of 48 610 meters (210 boreholes) completed on the Kalgold near – mine exploration program. Drill results have been very encouraging and a mineral resource update and prefeasibility study to optimise the Kalgold operation based on the results of the exploration drilling is underway.
An airborne electro-magnetic survey was undertaken in FY19 to provide a method for rapidly assessing the regional potential of the Kalgold prospecting rights and initial interpretation has identified numerous potential targets. Further detailed interpretation and field work to put anomalies in context with geology is planned for FY20.
Zaaiplaats
Underground exploration drilling is underway in two specific blocks above infrastructure in the Zaaiplaats project area with the aim to identify opportunities for early access and mining of these blocks of ground. Drilling will continue in FY20.     
Target North
Drilling of the first borehole from surface commenced towards the end of FY19 and a total of 1 542 meters were drilled. Drilling of three initial exploration boreholes are planned to confirm the geological model and test the Ventersdorp Contact Reef, as well as the sub-cropping Dreyerskuil and Eldorado (EA) Reefs. Drilling continues into FY20.    
Papua New Guinea
Hidden Valley District (Harmony 100%)
Near – mine exploration targeting potential high-grade satellite epithermal gold deposits progressed in FY19. Target development and regional exploration of the Webiak is currently underway. Mapping, trenching and surface sampling continued as part of drill target development (1 799 soil, 531 rockchip samples). Drill program planning is in progress, targeting commencement in the first quarter of FY20.
ADMINISTRATIVE INFORMATION FOR PROFESSIONAL ORGANISATIONS
GEOLOGICAL SOCIETY OF SOUTH AFRICA
P.O. Box 91230, Auckland Park, 2006
Gauteng Province, South Africa
Telephone: +27 (11) 358 0028
http://www.gssa.org.za
SACNASP – THE LEGISLATED REGULATORY
BODY FOR NATURAL SCIENCE PRACTITIONERS IN SOUTH AFRICA
Private Bag X540, Silverton, 0127 Gauteng Province, South Africa Telephone: +27 (12) 841 1075
Facsimile: +27 (86) 206 0427
http://www.sacnasp.org.za/
SAIMM – THE SOUTHERN AFRICAN INSTITUTE OF MINING AND METALLURGY
Private Bag X540, Silverton, 0127 Gauteng Province, South Africa Telephone: +27 (12) 841 1075
Facsimile: +27 (86) 206 0427
http://www.saimm.co.za


AUSIMM – THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY
PO Box 660, Carlton South,
Vic 3053, Australia
Telephone: +61 3 9658 6100
Facsimile: +61 3 9662 3662
http://www.ausimm.com.au/
LEGAL ENTITLEMENT TO THE MINERALS BEING REPORTED UPON
Harmony’s South African operations operate under new order mining rights in terms of the Minerals and Petroleum Resources Development of Act of 2002 (Act No. 28, of 2002) (MPRDA). In PNG, Harmony operates under the Independent State of Papua New Guinea Mining Act 1992. All required operating permits have been obtained, and are in good standing. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Competent Person.


OPERATING RESULTS – YEAR ON YEAR (RAND/METRIC)
 
 
Year
ended
South Africa
Hidden
 Valley¹

Total
Harmony

 
 
Underground production
Surface production
Total
South
Africa

 
 
Tshepong operations

Moab Khotsong

Bambanani

Joel

Doornkop

Target 1

Kusasalethu

 
Masimong

Unisel

Total
Under-
ground

Phoenix

Central
plant
reclamation

Dumps

Kalgold

Total Surface

 
 
Ore milled
t'000
Jun-19
1 612

970

230

429

730

588

742

 
602

256

6 159

6 133

3 872

4 307

1 619

15 931

22 090

3 886

25 976

Jun-18
1 716

327

233

454

696

680

670

 
647

376

5 799

5 962

3 810

2 821

1 550

14 143

19 942

2 499

22 441

Yield
g/tonne
Jun-19
4.94

8.17

10.93

3.65

4.48

4.51

6.72

 
3.84

4.73

5.59

0.123

0.150

0.352

0.77

0.26

1.74

1.60

1.72

Jun-18
5.47

10.08

12.11

3.60

4.93

4.20

6.61

 
4.05

3.40

5.48

0.124

0.132

0.383

0.81

0.25

1.77

1.36

1.76

Gold produced
kg
Jun-19
7 967

7 928

2 515

1 567

3 273

2 653

4 989

 
2 309

1 212

34 413

756

579

1 515

1 249

4 099

38 512

6 222

44 734

Jun-18
9 394

3 296

2 821

1 635

3 429

2 854

4 429

 
2 623

1 280

31 761

737

502

1 081

1 250

3 570

35 331

2 862

38 193

Gold sold
kg
Jun-19
7 922

7 794

2 495

1 612

3 255

2 685

5 028

 
2 291

1 207

34 289

750

577

1 497

1 263

4 087

38 376

6 192

44 568

Jun-18
9 338

3 165

2 804

1 656

3 404

2 828

4 301

 
2 609

1 272

31 377

739

508

1 074

1 231

3 552

34 929

2 763

37 692

Gold price received
R/kg
Jun-19
591 331

573 522

591 962

593 531

593 301

590 298

591 742

 
593 003

590 468

587 680

577 889

592 359

587 483

593 482

588 265

587 742

579 902

586 653

Jun-18
577 058

528 387

576 398

576 023

575 077

576 316

577 313

 
576 729

576 222

571 727

537 547

576 829

567 737

576 630

565 838

571 128

550 956

570 709

Gold revenue
(R'000)
Jun-19
4 684 522

4 470 030

1 476 946

956 772

1 931 194

1 584 950

2 975 279

 
1 358 570

712 695

20 150 958

433 417

341 791

879 462

749 568

2 404 238

22 555 196

3 590 755

26 145 951

Jun-18
5 388 567

1 672 345

1 616 221

953 894

1 957 562

1 629 821

2 483 024

 
1 504 687

732 955

17 939 076

397 247

293 029

609 750

709 832

2 009 858

19 948 934

408 809

20 357 743

Cash operating cost (net of by-product credits)
(R'000)
Jun-19
4 007 667

3 166 555

984 749

967 021

1 593 279

1 478 422

2 376 844

 
1 213 849

568 559

16 356 945

344 260

212 125

691 557

694 797

1 942 739

18 299 684

1 370 850

19 670 534

Jun-18
3 828 757

1 036 677

904 761

909 825

1 418 186

1 333 591

2 091 272

 
1 160 903

773 518

13 457 490

326 142

191 328

449 688

565 456

1 532 614

14 990 104

227 900

15 218 004

Inventory movement
(R'000)
Jun-19
(34 242)

(65 616)

9 166

4 417

(29 489)

12 921

17 679

 
(8 683)

(4 204)

(98 051)

(3 083)

(78)

(7 358)

5 149

(5 370)

(103 421)

(8 794)

(112 215)

Jun-18
(30 197)

(84 193)

(8 740)

10 019

(7 176)

(15 190)

(65 234)

 
(6 723)

(2 634)

(210 068)

575

3 536

(3 563)

(12 438)

(11 890)

(221 958)

6 007

(215 951)

Operating costs
(R'000)
Jun-19
3 973 425

3 100 939

993 915

971 438

1 563 790

1 491 343

2 394 523

 
1 205 166

564 355

16 258 894

341 177

212 047

684 199

699 946

1 937 369

18 196 263

1 362 056

19 558 319

Jun-18
3 798 560

952 484

896 021

919 844

1 411 010

1 318 401

2 026 038

 
1 154 180

770 884

13 247 422

326 717

194 864

446 125

553 018

1 520 724

14 768 146

233 907

15 002 053

Production profit
(R'000)
Jun-19
711 097

1 369 091

483 031

(14 666)

367 404

93 607

580 756

 
153 404

148 340

3 892 064

92 240

129 744

195 263

49 622

466 869

4 358 933

2 228 699

6 587 632

Jun-18
1 590 007

719 861

720 200

34 050

546 552

311 420

456 986

 
350 507

(37 929)

4 691 654

70 530

98 165

163 625

156 814

489 134

5 180 788

174 902

5 355 690

Capital expenditure
(R'000)
Jun-19
1 130 180

558 876

61 093

187 092

308 324

297 265

315 921

 
109 386

45 426

3 013 563

5 757

7 084

7 682

61 179

81 702

3 095 265

1 591 274

4 686 539

Jun-18
1 008 390

173 193

63 545

250 459

273 925

309 451

288 781

 
128 680

84 711

2 581 135

3 075

22 318

2 529

107 644

135 566

2 716 701

1 563 355

4 280 056

Cash operating costs
R/kg
Jun-19
503 033

399 414

391 550

617 116

486 795

557 264

476 417

 
525 703

469 108

475 313

455 370

366 364

456 473

556 283

473 954

475 168

220 323

439 722

Jun-18
407 575

314 526

320 724

556 468

413 586

467 271

472 177

 
442 586

604 311

423 711

442 526

381 131

415 993

452 365

429 304

424 276

287 028

421 260

Cash operating costs
R/tonne
Jun-19
2 486

3 264

4 282

2 254

2 183

2 514

3 203

 
2 016

2 221

2 656

56

55

161

429

122

828

353

757

Jun-18
2 231

3 170

3 883

2 004

2 038

1 961

3 121

 
1 794

2 057

2 321

55

50

159

365

108

752

390

741

Cash operating cost
and Capital²
R/kg
Jun-19
644 891

469 908

415 842

736 511

580 997

669 313

539 740

 
573 077

506 588

562 883

462 985

378 599

461 544

605 265

493 887

555 540

476 073

544 487

Jun-18
514 919

367 072

343 249

709 654

493 471

575 698

537 379

 
491 644

670 491

504 979

446 699

425 590

418 332

538 480

467 277

501 169

403 747

499 028

All-in sustaining cost
R/kg
Jun-19
636 281

477 581

441 226

701 644

572 132

662 816

556 621

 
593 408

523 823

566 572

462 579

378 038

462 178

624 147

500 426

558 494

497 399

550 005

Jun-18
514 537

420 286

360 462

661 921

508 065

582 200

554 302

 
513 197

678 436

516 420

446 268

420 016

417 462

552 032

470 458

509 878

466 256

508 970

Operating free cash flow margin³
%
Jun-19
(10
)%
17
%
29
%
(21
)%
2
%
(12
)%
9
%
 
3
%
14
 %
4
%
19
%
36
%
20
%
(1
)%
16
%
5
%
16
%
7
%
Jun-18
10
 %
28
%
40
%
(22
)%
14
%
(1
)%
4
%
 
14
%
(17
)%
11
%
17
%
27
%
26
%
5
 %
17
%
11
%
24
%
11
%
¹No production for Hidden Valley was capitalised during FY19. Ore milled for FY18 includes 1 914 000 tonnes that was capitalised as part of the pre-stripping of stages 5 & 6. Gold produced for FY18 includes 2 068 kilograms and gold sold 2 021 kilograms that was capitalised.
²Excludes investment capital for Hidden Valley of R1 471 million for FY18.
³Excludes run of mine costs for Kalgold (Jun-19:R1.966m, Jun-18:-R3.082m) and Hidden Valley (Jun-19:-R55.881m, Jun-18:R8.283m) as well as Hidden Valley's investment capital as per note 2.








OPERATING RESULTS – YEAR ON YEAR (US$/IMPERIAL)
 
 
Year
ended
South Africa
Hidden
 Valley¹

Total
Harmony

 
 
Underground production
Surface production
Total
South
Africa

 
 
Tshepong operations

Moab Khotsong

Bambanani

Joel

Doornkop

Target 1

Kusasalethu

 
Masimong

Unisel

Total
Under-
ground

Phoenix

Central
plant
reclamation

Dumps

Kalgold

Total Surface

 
 
Ore milled
t'000
Jun-19
1 777

1 069

254

473

805

650

817

 
664

283

6 792

6 762

4 269

4 749

1 785

17 565

24 357

4 285

28 642

Jun-18
1 893

360

257

501

767

749

738

 
714

415

6 394

6 575

4 201

3 110

1 709

15 595

21 989

2 757

24 746

Yield
oz/ton
Jun-19
0.144

0.238

0.318

0.107

0.131

0.131

0.196

 
0.112

0.138

0.163

0.004

0.004

0.010

0.022

0.008

0.051

0.047

0.050

Jun-18
0.160

0.294

0.353

0.105

0.144

0.123

0.193

 
0.118

0.099

0.160

0.004

0.004

0.011

0.024

0.007

0.052

0.039

0.051

Gold produced
oz
Jun-19
256 146

254 891

80 860

50 379

105 229

85 296

160 400

 
74 237

38 966

1 106 404

24 306

18 615

48 708

40 156

131 785

1 238 189

200 042

1 438 231

Jun-18
302 026

105 969

90 698

52 566

110 245

91 758

142 395

 
84 332

41 152

1 021 141

23 695

16 139

34 755

40 189

114 778

1 135 919

92 015

1 227 934

Gold sold
oz
Jun-19
254 698

250 583

80 216

51 827

104 650

86 324

161 653

 
73 657

38 807

1 102 415

24 113

18 551

48 129

40 605

131 398

1 233 813

199 077

1 432 890

Jun-18
300 223

101 757

90 151

53 242

109 440

90 922

138 281

 
83 882

40 896

1 008 794

23 759

16 333

34 530

39 577

114 199

1 122 993

88 833

1 211 826

Gold price received
$/oz
Jun-19
1 297

1 258

1 299

1 302

1 302

1 295

1 298

 
1 301

1 295

1 289

1 268

1 299

1 289

1 302

1 290

1 289

1 272

1 287

Jun-18
1 397

1 279

1 395

1 394

1 392

1 395

1 397

 
1 396

1 395

1 384

1 301

1 396

1 374

1 396

1 370

1 382

1 283

1 380

Gold revenue
($'000)
Jun-19
330 389

315 262

104 166

67 479

136 203

111 783

209 840

 
95 817

50 265

1 421 204

30 568

24 106

62 027

52 865

169 566

1 590 770

253 248

1 844 018

Jun-18
419 350

130 146

125 778

74 234

152 342

126 836

193 234

 
117 098

57 040

1 396 058

30 915

22 804

47 452

55 241

156 412

1 552 470

30 617

1 583 087

Cash operating cost (net of by-product credits)
($'000)
Jun-19
282 652

223 330

69 452

68 202

112 371

104 270

167 634

 
85 610

40 099

1 153 620

24 280

14 961

48 774

49 003

137 018

1 290 638

96 684

1 387 322

Jun-18
297 962

80 677

70 411

70 805

110 366

103 783

162 747

 
90 344

60 197

1 047 292

25 381

14 890

34 996

44 005

119 272

1 166 564

17 062

1 183 626

Inventory movement
($'000)
Jun-19
(2 415)

(4 628)

646

312

(2 080)

911

1 247

 
(612)

(296)

(6 915)

(217)

(6)

(519)

363

(379)

(7 294)

(620)

(7 914)

Jun-18
(2 350)

(6 552)

(680)

780

(558)

(1 182)

(5 077)

 
(523)

(205)

(16 347)

45

275

(277)

(968)

(925)

(17 272)

436

(16 836)

Operating costs
($'000)
Jun-19
280 237

218 702

70 098

68 514

110 291

105 181

168 881

 
84 998

39 803

1 146 705

24 063

14 955

48 255

49 366

136 639

1 283 344

96 064

1 379 408

Jun-18
295 612

74 125

69 731

71 585

109 808

102 601

157 670

 
89 821

59 992

1 030 945

25 426

15 165

34 719

43 037

118 347

1 149 292

17 498

1 166 790

Production profit
($'000)
Jun-19
50 152

96 560

34 068

(1 035)

25 912

6 602

40 959

 
10 819

10 462

274 499

6 505

9 151

13 772

3 499

32 927

307 426

157 184

464 610

Jun-18
123 738

56 021

56 047

2 649

42 534

24 235

35 564

 
27 277

(2 952)

365 113

5 489

7 639

12 733

12 204

38 065

403 178

13 119

416 297

Capital expenditure
($'000)
Jun-19
79 709

39 417

4 308

13 195

21 744

20 966

22 281

 
7 714

3 205

212 539

406

500

542

4 315

5 763

218 302

112 229

330 531

Jun-18
78 475

13 478

4 945

19 491

21 317

24 082

22 474

 
10 014

6 592

200 868

239

1 737

197

8 377

10 550

211 418

121 404

332 822

Cash operating costs
$/oz
Jun-19
1 103

876

859

1 354

1 068

1 222

1 045

 
1 153

1 029

1 043

999

804

1 001

1 220

1 040

1 042

483

965

Jun-18
987

761

776

1 347

1 001

1 131

1 143

 
1 071

1 463

1 026

1 071

923

1 007

1 095

1 039

1 027

669

1 018

Cash operating costs
$/t
Jun-19
159

209

273

144

140

160

205

 
129

142

170

4

4

10

27

8

53

23

48

Jun-18
157

224

274

141

144

139

221

 
127

145

164

4

4

11

26

8

53

26

52

Cash operating cost
and Capital²
$/oz
Jun-19
1 415

1 031

912

1 616

1 275

1 468

1 184

 
1 257

1 111

1 235

1 016

831

1 012

1 328

1 083

1 219

1 044

1 194

Jun-18
1 246

889

831

1 718

1 194

1 394

1 301

 
1 190

1 623

1 222

1 081

1 030

1 013

1 303

1 131

1 213

941

1 207

All-in sustaining cost
$/oz
Jun-19
1 396

1 048

968

1 539

1 255

1 454

1 221

 
1 302

1 149

1 243

1 015

829

1 014

1 369

1 098

1 225

1 090

1 207

Jun-18
1 245

1 017

873

1 602

1 230

1 409

1 342

 
1 242

1 642

1 250

1 080

1 017

1 010

1 336

1 139

1 234

1 094

1 231

Operating free cash flow margin³
%
Jun-19
(10
)%
17
%
29
%
(21
)%
2
%
(12
)%
9
%
 
3
%
14
 %
4
%
19
%
36
%
20
%
(1
)%
16
%
5
%
16
%
7
%
Jun-18
10
 %
28
%
40
%
(22
)%
14
%
(1
)%
4
%
 
14
%
(17
)%
11
%
17
%
27
%
26
%
5
 %
17
%
11
%
24
%
11
%
¹No production for Hidden Valley was capitalised during FY19. Ore milled for FY18 includes 2 111 000 tonnes that was capitalised as part of the pre-stripping of stages 5 & 6. Gold produced for FY18 includes 66 499 ounces and gold sold 64 976 ounces that was capitalised.
²Excludes investment capital for Hidden Valley of US$114 million for FY18.
³Excludes run of mine costs for Kalgold (Jun-19:US$0.139m, Jun-18:-US$0.24m) and Hidden Valley (Jun-19:-US$3.941m, Jun-18:US$0.618m) as well as Hidden Valley's investment capital as per note 2.




CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)



 
 
Year ended
 
 
30 June 2019
(Reviewed)

30 June 2018
(Audited)

Figures in million
Notes
 
Restated*

 
 
 
 
Revenue
2
26 912

20 452

Cost of sales
3
(28 869
)
(23 596
)
 
 
 
 
Production costs
 
(20 324
)
(15 084
)
Amortisation and depreciation
 
(4 054
)
(2 570
)
Impairment of assets
 
(3 898
)
(5 336
)
Other items
 
(593
)
(606
)
 
 
 
 
 
 
 
 
Gross profit/(loss)
 
(1 957
)
(3 144
)
Corporate, administration and other expenditure
 
(731
)
(813
)
Exploration expenditure
 
(148
)
(135
)
Gains on derivatives
4
484

99

Other operating income/(expenses)
5
(186
)
(667
)
 
 
 
 
 
 
 
 
Operating profit/(loss)
 
(2 538
)
(4 660
)
Acquisition related costs
8
—

(98
)
Share of profits from associates
 
59

38

Investment income
 
308

343

Finance costs
 
(575
)
(330
)
 
 
 
 
 
 
 
 
Profit/(loss) before taxation
 
(2 746
)
(4 707
)
Taxation
6
139

234

Current taxation
 
(144
)
(204
)
Deferred taxation
 
283

438

 
 
 
 
Net profit/(loss) for the year
 
(2 607
)
(4 473
)
 
 
 
 
Attributable to:
 
 
 
Owners of the parent
 
(2 607
)
(4 473
)
 
 
 
 
Earnings/(loss) per ordinary share (cents)
7
 
 
Basic earnings /( loss)
 
(498
)
(1 003
)
Diluted earnings /( loss)
 
(500
)
(1 004
)

* Refer to note 1 for detail. The restated amounts are unaudited.

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


The provisional condensed consolidated financial statements (condensed consolidated financial statements) for the year ended 30 June 2019 have been prepared by Harmony Gold Mining Company Limited’s corporate reporting team headed by Boipelo Lekubo CA(SA). This process was supervised by the financial director, Frank Abbott CA(SA) and approved by the board of Harmony Gold Mining Company Limited on 20 August 2019. These condensed consolidated financials have been reviewed by the group's external auditors, PricewaterhouseCoopers Incorporated (see note 23).

















CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (RAND)

 
 
Year ended
Figures in million
Notes
30 June 2019
(Reviewed)

30 June 2018
(Audited)

 
 
 
 
Net profit/(loss) for the year
 
(2 607
)
(4 473
)
Other comprehensive income for the year, net of income tax
 
(684
)
(660
)
 
 
 
 
Items that may be reclassified subsequently to profit or loss:
 
(677
)
(647
)
Foreign exchange translation gain/(loss)
 
(50
)
83

Remeasurement of gold hedging contracts
10
 
 
Unrealised gain/(loss) on gold contracts
 
(351
)
273

Released to revenue
 
(453
)
(1 197
)
Deferred taxation thereon
 
177

194

 
 
 
 
Items that will not be reclassified to profit or loss:
 
(7
)
(13
)
Remeasurement of retirement benefit obligation
 
 
 
Actuarial loss recognised during the year
 
(7
)
(11
)
Deferred taxation thereon
 
—

(2
)
 
 
 
 
Total comprehensive income for the year
 
(3 291
)
(5 133
)
 
 
 
 
Attributable to:
 
 
 
Owners of the parent
 
(3 291
)
(5 133
)
 
 
 
 

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

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (RAND)

FOR THE YEAR ENDED 30 JUNE 2019
Figures in million
 
Share capital

Accumulated loss

Other
reserves

Total

 
 
 
 
 
 
Balance - 30 June 2018
 
29 340

(9 103
)
5 145

25 382

 
 
 
 
 
 
Impact of adopting IFRS 9 (refer to note 1)
 
—

—

82

82

 
 
 
 
 
 
Restated opening balance - 1 July 2018
 
29 340

(9 103
)
5 227

25 464

 
 
 
 
 
 
Issue of shares
 
211

—

—

211

Share-based payments
 
—

—

230

230

Net loss for the year
 
—

(2 607
)
—

(2 607
)
Other comprehensive income for the year
 
—

—

(684
)
(684
)
 
 
 
 
 
 
Balance - 30 June 2019 (Reviewed)
 
29 551

(11 710
)
4 773

22 614

 
 
 
 
 
 
Balance - 30 June 2017
 
28 336

(4 486
)
5 441

29 291

 
 
 
 
 
 
Issue of shares
 
1 004

—

—

1 004

Share-based payments
 
—

—

374

374

Net loss for the year
 
—

(4 473
)
—

(4 473
)
Other comprehensive income for the year
 
—

—

(660
)
(660
)
Reclassification from other reserves
 
 
10

(10
)
—

Dividends paid 1
 
—

(154
)
—

(154
)
 
 
 
 
 
 
Balance - 30 June 2018 (Audited)
 
29 340

(9 103
)
5 145

25 382

1 Dividend of 35 SA cents declared on 15 August 2017.

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




CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)


 
 
At

At

 
 
30 June 2019
(Reviewed)

30 June 2018
(Audited)

Figures in million
Notes
 
Restated*

 
 
 
 
ASSETS
 
 
 
 
 
 
 
Non-current assets
 
 
 
Property, plant and equipment
9
27 749

30 969

Intangible assets
9
533

545

Restricted cash
 
92

77

Restricted investments
 
3 301

3 271

Investments in associates
 
110

84

Inventories
 
43

46

Other non-current assets
 
334

264

Derivative financial assets
10
197

84

 
 
 
 
Total non-current assets
 
32 359

35 340

 
 
 
 
Current assets
 
 
 
Inventories
11
1 967

1 759

Restricted cash
 
44

38

Trade and other receivables
 
1 064

1 139

Derivative financial assets
10
309

539

Cash and cash equivalents
 
993

706

 
 
 
 
Total current assets
 
4 377

4 181

Total assets
 
36 736

39 521

 
 
 
 
EQUITY AND LIABILITIES
 
 
 
 
 
 
 
Share capital and reserves
 
 
 
Share capital
12
29 551

29 340

Other reserves
 
4 773

5 145

Accumulated loss
 
(11 710
)
(9 103
)
 
 
 
 
Total equity
 
22 614

25 382

 
 
 
 
Non-current liabilities
 
 
 
Deferred tax liabilities
6
688

1 145

Provision for environmental rehabilitation
13
3 054

3 309

Provision for silicosis settlement
14
942

925

Retirement benefit obligation
 
201

186

Other non-current liabilities
 
5

41

Borrowings
15
5 826

4 924

Derivative financial liabilities
10
172

10

 
 
 
 
Total non-current liabilities
 
10 888

10 540

 
 
 
 
Current liabilities
 
 
 
Borrowings
15
89

690

Trade and other payables
 
2 875

2 704

Derivative financial liabilities
10
270

205

 
 
 
 
Total current liabilities
 
3 234

3 599

Total equity and liabilities
 
36 736

39 521


*Refer to note 8 for the details.

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





CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)


 
 
Year ended
Figures in million
Notes
30 June 2019
(Reviewed)

30 June 2018
(Audited)

 
 
 
 
CASH FLOW FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
Cash generated by operations
 
5 052

4 289

Interest received
 
69

82

Interest paid
 
(387
)
(180
)
Income and mining taxes paid
 
(55
)
(307
)
 
 
 
 
Cash generated from operating activities
 
4 679

3 884

 
 
 
 
CASH FLOW FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
Increase in restricted cash
 
(15
)
(32
)
Decrease in amounts invested in restricted investments
17
187

—

Consideration paid for the acquisition of Moab Khotsong operations
8
—

(3 474
)
Redemption of preference shares from associates
 
32

—

Capital distributions from investments
 
30

—

Proceeds from disposal of property, plant and equipment
 
5

2

Additions to property, plant and equipment
17
(5 036
)
(4 571
)
 
 
 
 
Cash utilised by investing activities
 
(4 797
)
(8 075
)
 
 
 
 
CASH FLOW FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
Borrowings raised
15
1 522

6 937

Borrowings repaid
15
(1 353
)
(4 063
)
Proceeds from the issue of shares
12
211

1 003

Dividends paid
 
—

(154
)
 
 
 
 
Cash generated from financing activities
 
380

3 723

Foreign currency translation adjustments
 
25

(72
)
 
 
 
 
Net increase/(decrease) in cash and cash equivalents
 
287

(540
)
Cash and cash equivalents - beginning of year
 
706

1 246

 
 
 
 
Cash and cash equivalents - end of year
 
993

706



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



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

–
Per segment report
26 146

20 358

–
Other metal sales treated as by-product credits in the segment report
766

93

–
Other adjustments
—

1

Production costs
(20 324
)
(15 084
)
–
Per segment report
(19 558
)
(15 002
)
–
Other metal sales treated as by-product credits in the segment report
(766
)
(93
)
–
Other adjustments
—

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



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.

 
Harmony Gold Mining Company Limited
 
 
Date: August 20, 2019
By: /s/ Frank Abbott
 
Name: Frank Abbott
 
Title: Financial Director





 




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