HRM Harmony Gold

 
TIDMHRM 
 
Harmony 
 
Press Release 
 
Harmony stronger year on year 
 
Johannesburg: 15 August 2011: Harmony Gold Mining Company Limited (`Harmony' or 
the `Company') today released its financial results for the quarter and the 
year ended 30 June 2011. 
 
Graham Briggs, Harmony's Chief Executive Officer commented, "The 2011 financial 
year was filled with some notable achievements for Harmony. We improved our 
safety rates, secured excellent exploration results, continued to build up our 
operations and future production potential, with certain operations already 
generating free operational cash flow. Hidden Valley in Papua New Guinea (PNG) 
is now an operating mine and is Harmony's first greenfields offshore 
development, which was formally opened in September 2010. Within our South 
Africa portfolio, Kusasalethu, Doornkop and Phakisa, all of which are in 
build-up, along with Tshepong and Masimong have been steady contributors to 
production. We have also dealt positively with the challenges encountered at 
mines such as Evander, Target and Joel to ensure they are positioned to deliver 
on their production targets". 
 
Year on year 
 
The operations in the build-up phase showed an increase in gold production of 
22%. Hidden Valley increased its production by 64% to 3 118kg, from 1 903kg 
produced in the previous financial year. Doornkop's production increased by 
562kg (29%), Phakisa's by 391kg (29%) and Kusasalethu's by 165kg (3%) on a year 
on year basis. Underground grade also increased to 4.60g/t. 
 
Headline earnings improved to R957 million, in comparison to R4 million in the 
previous year. Harmony recorded a net profit of R617 million (R192m in FY 2010) 
for financial year 2011. 
 
Gold production for the year under review decreased by 9% - mainly as a result 
of the shaft closures during the 2011 financial year. Year on year cash 
operating costs in Rand terms increased by R686 million or 8%, mainly due to 
restructuring costs, the inclusion of Target 3 (which started commercial 
production in the past quarter), higher electricity costs and higher labour 
costs. This resulted in the cash operating cost in R/kg terms increasing by 16% 
from R195 162/kg in FY10 to R226 667/kg FY11. Rand per tonne unit costs 
remained stable at R469/tonne. 
 
Capital expenditure was spent responsibly and decreased by R317million (10%) 
compared to the previous financial year. This is mainly attributed to a 
reduction in capital spent on Hidden Valley by 47% or R252 million. In 
addition, the capital spent at the South African operations decreased by R65 
million (2%), due to reduced expenditure at Phakisa (R117 million), Doornkop 
(R50 million) and Kusasalethu (R50 million). 
 
Harmony has invested a great deal in the expansion of its production base in 
South Africa and PNG over the last couple of years. The resource base in PNG 
now represents 10% of Harmony's total gold resources (or 21% of the resource on 
a gold equivalent basis1), which is in line with the Company's long term 
strategy of geographic diversification. 
 
Quarter on quarter 
 
Gold production for the June 2011 quarter is 3% higher than the previous 
quarter, despite days lost to public holidays. The past quarter saw excellent 
improvements in development metres, mainly at the build-up operations. Quarter 
on quarter, cash operating costs in R/kg terms were 12% higher, mainly due to 
higher electricity and stores costs, as well as the inclusion of Target 3 in 
our operating results. Higher stores costs are due to additional maintenance 
performed during public holidays. Electricity costs are higher due to a 25% 
increase in tariffs as from April 2011 and the inclusion of one month's winter 
tariff. 
 
Operating profit at R901 million was 5% higher, primarily attributable to the 
increase in the average Rand gold price received. 
 
Harmony secures US$300m debt facility 
 
Harmony has strengthened its financial flexibility through obtaining a 4 year 
US$300 million revolving credit facility with Nedbank Limited and FirstRand 
Bank Limited.  This facility is specifically 
ear-marked for its activities in PNG. 
 
In conclusion 
 
Graham Briggs concluded, "Harmony is positioned to deliver long term value. We 
have made good progress in getting the Company where we want it to be - 
producing safe and quality ounces. Paying a dividend demonstrates our belief 
that Harmony is in a healthy state, and as such are pleased to pay a dividend 
of 60 cents. This also serves as a sign of gratitude towards our shareholders 
for their continued support". He also added, "We remain focused on delivering 
in line with market expectations through the course of 2012." 
 
¹ Gold equivalent based on US$1150/oz Au, US$2.50/lb Cu, US$13.50/oz Ag at 100% 
recovery for metals. 
 
ends. 
 
Issued by Harmony Gold Mining Company Limited 
 
15 August 2011 
 
For more details contact: 
 
Henrika Basterfield 
 
Investor Relations Officer 
 
+27 (0) 82 759 1775 (mobile) 
 
Marian van der Walt 
 
Executive: Corporate and Investor Relations 
 
+27 (0) 82 888 1242 (mobile) 
 
Corporate Office: 
 
Randfontein Office Park 
 
P O Box 2 
 
Randfontein 
 
South Africa 1760 
 
T +27 (11) 411 2000 
 
www.harmony.co.za 
 
JSE: HAR          HAR 
 
NYSE: HMY 
 
ISIN No.: ZAE000015228 
 
Registration number: 1950/038232/06 
 
 
 
END 
 

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