##### Table of Contents



As filed with the Securities and Exchange Commission on October 26, 2009
   UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 20-F
  o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended June 30, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report
 For the transition period from       to
 Commission file number: 001 - 31545
 HARMONY GOLD MINING COMPANY LIMITED
 (Exact name of registrant as specified in its charter)
 REPUBLIC OF SOUTH AFRICA
 (Jurisdiction of incorporation or organization)
 RANDFONTEIN OFFICE PARK, CNR WARD AVENUE AND MAIN REEF ROAD,
RANDFONTEIN, SOUTH AFRICA, 1760
 (Address of principal executive offices)
 khanya.maluleke@harmony.co.za
 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person
 
 (Title of Class)
 
 (Title of Class)
 
 (Title of Class)
 
 (Title of Class)
     þ o
  o þ
  þ o
  o o
  Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o  U.S. GAAP o
    
    International Financial Reporting Standards as issued
by the International Accounting Standards Board þ
    
    Other o
  o þ
  o þ
  þ o
 
 *
    
    Not for trading, but only in connection with the registration of American Depositary Shares,
pursuant to the requirements of the Securities and Exchange Commission.




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##### 



TABLE OF CONTENTS
 Part I
    
    
    5Item 1. Identity of Directors, Senior Management and Advisors
    
    
    5Item 2. Offer Statistics and Expected Timetable
    
    
    5Item 3. Key Information
    
    
    5Item 4. Information on the Company
    
    
    19Item 4A. Unresolved Staff Comments
    
    
    90Item 5. Operating and Financial Review and Prospects
    
    
    90Item 6. Directors, Senior Management and Employees
    
    
    118Item 7. Major Shareholders and Related Party Transactions
    
    
    136Item 8. Financial Information
    
    
    138Item 9. The Offer and Listing
    
    
    140Item 10. Additional Information
    
    
    143Item 11. Quantitative and Qualitative Disclosures About Market Risk
    
    
    159Item 12. Description of Securities Other than Equity Securities
    
    
    162Part II
    
    
    168Item 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    168Item 14. Material Modifications to the Rights of Security and Use of Proceeds
    
    
    169Item 15. Disclosure Controls and Procedures
    
    
    170Item 16A. Audit Committee Financial Expert
    
    
    171Item 16B. Code of Ethics
    
    
    171Item 16C. Principal Accountant Fees and Services
    
    
    172Item 16D. Exemptions from Listing Standards for Audit Committees
    
    
    172Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    172Item 16F. Change in Registrants Certifying Accountant
    
    
    173Item 16G. Corporate Governance
    
    
    173Part III
    
    
    174Item 17. Financial Statements
    
    
    174Item 18. Financial Statements
    
    
    175Item 19. Exhibits
    
    
    176SIGNATURE
    
    
    179INDEX TO FINANCIAL STATEMENTS
    
    
    F-1Deed of Extinguishment of Royalty (Wafi-Golpu Project)Master Purchase and Farmin AgrementHidden Valley Joint Venture AgreementMaster Co-operation AgreementSignificant subsidiaries of Harmony Gold Mining Company LimitedCEO CertificationCFO CertificationSection 906 CEO CertificationSection 906 CFO Certification
  2




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USE OF TERMS AND CONVENTIONS IN THIS ANNUAL REPORT
 Harmony South Africa we us our Group
 R Rand c A$ K Kina $ U.S.$ U.S. dollars
 Item 3. Key
Information  Risk Factors  Harmonys gold reserve figures are estimated based on a number of
assumptions, including assumptions as to mining and recovery factors, future cash costs or
production and the price of gold and may yield less gold under actual production conditions than
currently estimated.
  PRESENTATION OF FINANCIAL INFORMATION
 IFRS IASB SEC U.S. GAAP
 Item 5 Operating and Financial Review and Prospects 
Costs  Reconciliation of Non-GAAP Measures
  3




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##### Table of Contents



FORWARD-LOOKING STATEMENTS
 Item 4. Information on
the Company, Item 5. Operating and Financial Review and Prospects Item 11. Quantitative and
Qualitative Disclosures About Market Risk Exchange
Act
  
    
    overall economic and business conditions in South Africa and elsewhere;
    
    the ability to achieve anticipated efficiencies and other cost savings in connection with
past and future acquisitions;
    
    fluctuations in the market price of gold;
    
    the occurrence of hazards associated with underground and surface gold mining;
    
    the occurrence of labor disruptions;
    
    availability, terms and deployment of capital;
    
    changes in government regulation, particularly mining rights and environmental
regulation;
    
    fluctuations in exchange rates;
    
    currency devaluations/appreciations and other macroeconomic monetary policies; and
    
    socio-economic instability in South Africa and other countries in which we operate.
  4




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##### Table of Contents



PART I
 
 Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS
  
 Item 2. OFFER STATISTICS AND EXPECTED TIMETABLE
  
 Item 3. KEY INFORMATION
 SELECTED FINANCIAL DATA
 The selected consolidated financial data below should be read in conjunction with, and are
qualified in their entirety by reference to, our consolidated financial statements and the notes
thereto and with Item 5. Operating and Financial Review and Prospects, both included elsewhere in
this annual report. Historical results are not necessarily indicative of results to be expected for
any future period.
 SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
    Monarch Item 4 Information of
the Company  Business  International
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Operations Information of the Company  Business  Orkney Operations, Item 4 Information of the Company  Business  Cooke Operations
 Fiscal year ended June 30,2009
    
    2008
    
    2007
    
    2006
    
    2005($ in millions, except per share amounts)Income Statement DataRevenue
    
    
    1,277
    
    
    
    1,325
    
    
    
    1,202
    
    
    
    1,017
    
    
    
    1,030Operating profit/(loss)
    
    
    214
    
    
    
    103
    
    
    
    82
    
    
    
    (98
    )
    
    
    (409
    )Profit/(loss) from associates
    
    
    1
    
    
    
    (11
    )
    
    
    (3
    )
    
    
    (17
    )
    
    
    Profit/(loss) from continuing operations before
taxation
    
    
    216
    
    
    
    (10
    )
    
    
    83
    
    
    
    (85
    )
    
    
    (607
    )Taxation
    
    
    (23
    )
    
    
    (68
    )
    
    
    (50
    )
    
    
    (22
    )
    
    
    94Profit/(loss) from continuing operations
    
    
    193
    
    
    
    (78
    )
    
    
    33
    
    
    
    (107
    )
    
    
    (513
    )Profit from discontinued operations
    
    
    118
    
    
    
    48
    
    
    
    18
    
    
    
    16
    
    
    
    13Net profit/(loss)
    
    
    311
    
    
    
    (30
    )
    
    
    51
    
    
    
    (91
    )
    
    
    (500
    )Basic earnings/(loss) per share from continuing
operations ($)
    
    
    0.47
    
    
    
    (0.20
    )
    
    
    0.08
    
    
    
    (0.27
    )
    
    
    (1.42
    )Diluted earnings/(loss) per share from continuing
operations ($)
    
    
    0.46
    
    
    
    (0.20
    )
    
    
    0.08
    
    
    
    (0.27
    )
    
    
    (1.42
    )Basic earnings/(loss) per share ($)
    
    
    0.75
    
    
    
    (0.08
    )
    
    
    0.12
    
    
    
    (0.23
    )
    
    
    (1.38
    )Diluted earnings/(loss) per share ($)
    
    
    0.74
    
    
    
    (0.08
    )
    
    
    0.12
    
    
    
    (0.23
    )
    
    
    (1.38
    )Weighted average number of shares used in the
computation of basic earnings/(loss) per share
    
    
    414,120,732
    
    
    
    400,750,167
    
    
    
    397,910,797
    
    
    
    393,727,012
    
    
    
    361,816,512Weighted average number of shares used in the
computation of diluted earnings/(loss) per share
    
    
    415,962,899
    
    
    
    402,894,248
    
    
    
    402,382,011
    
    
    
    393,727,012
    
    
    
    361,817,512Dividends per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.05Other Financial DataCash cost per ounce of gold from continuing operations
($/oz) (1)
    
    
    583
    
    
    
    598
    
    
    
    487
    
    
    
    444
    
    
    
    378Total cash cost per ounce of gold ($/oz) (1)
    
    
    586
    
    
    
    602
    
    
    
    577
    
    
    
    443
    
    
    
    380
 Balance Sheet DataAssetsProperty, plant and equipment
    
    
    3,614
    
    
    
    3,531
    
    
    
    3,484
    
    
    
    3,263
    
    
    
    3,385Assets of disposal groups classified as held-for-sale
    
    
    
    
    
    
    197
    
    
    
    182
    
    
    
    
    
    
    
    Other assets
    
    
    1,311
    
    
    
    982
    
    
    
    1,494
    
    
    
    1,432
    
    
    
    1,433Total assets
    
    
    4,925
    
    
    
    4,710
    
    
    
    5,160
    
    
    
    4,695
    
    
    
    4,818Equity and liabilitiesTotal equity
    
    
    3,824
    
    
    
    3,172
    
    
    
    3,366
    
    
    
    3,249
    
    
    
    3,489Borrowings (current and non-current)
    
    
    47
    
    
    
    525
    
    
    
    653
    
    
    
    500
    
    
    
    563Other liabilities
    
    
    1,054
    
    
    
    1,013
    
    
    
    1,141
    
    
    
    946
    
    
    
    766Total equity and liabilities
    
    
    4,925
    
    
    
    4,710
    
    
    
    5,160
    
    
    
    4,695
    
    
    
    4,818
 
 (1)
    
    Total cash costs and total cash costs per ounce are non-GAAP measures. Previously,
we calculated cash costs per ounce by dividing total cash costs, as determined using the guidance
provided by the Gold Institute, by gold ounces sold. During fiscal 2009, we changed the
calculation, using gold produced as the denominator and therefore excluded the effect of the
movement in the gold inventory from the cash cost amount. We believe that this change provides a
better indication of the cash generating capabilities of our operations and also allows for a
better comparison with other companies. The cash costs and cash cost per ounce have been
re-presented for all periods presented. The Gold Institute was a non-profit industry association
comprised of leading gold producers, refiners, bullion suppliers and manufacturers. This institute
has now been incorporated into the National Mining Association. The guidance was first issued in
1996 and was revised in November 1999. Total cash costs, as defined in the guidance provided by the
Gold Institute, include mine production costs, transport and refinery costs, applicable general and
administrative costs, ongoing environmental rehabilitation costs as well as transfers to and from
deferred stripping and costs associated with royalties. Ongoing employee termination costs are
included, however, employee termination costs associated with major restructuring and shaft
closures are excluded. Total cash costs have been calculated on a consistent basis for all periods presented. Changes in cash costs per ounce are affected by
operational 6




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performance, as well as changes in the currency exchange rate between the Rand and the
U.S. dollar. Because total cash costs and total cash costs per ounce are non-GAAP measures, they
should therefore not be considered by investors in isolation or as an alternative to production
costs, cost of sales, or any other measure of financial performance calculated in accordance with
IFRS as issued by the IASB. While the Gold Institute has provided a definition for the calculation
of total cash costs and total cash costs per ounce, the calculation of cash costs per ounce may
vary from company to company and may not be comparable to other similarly titled measures of other
companies. However, we believe that cash costs per ounce is a useful indicator to investors and
management of a mining companys performance as it provides (1) an indication of the cash
generating capacities of the mining operations, (2) the trends in cash costs as the companys
operations mature, (3) a measure of a companys performance, by comparison of cash costs per ounce
to the spot price of gold and (4) an internal benchmark of performance to allow for comparison
against other companies. For further information, See Item 5. Operating and Financial Review and
Prospects  Costs  Reconciliation of non-GAAP measures. EXCHANGE RATES
    Fiscal Year EndedJune 30,
    
    Average(1)
    
    Period End2005
    
    
    6.18
    
    
    
    6.672006
    
    
    6.36
    
    
    
    7.172007
    
    
    7.20
    
    
    
    7.042008
    
    
    7.26
    
    
    
    7.802009
    
    
    9.00
    
    
    
    7.72
 Month of
    
    High
    
    LowMay 2009
    
    
    8.71
    
    
    
    7.93June 2009
    
    
    8.21
    
    
    
    7.72July 2009
    
    
    8.26
    
    
    
    7.65August 2009
    
    
    8.15
    
    
    
    7.72September 2009
    
    
    7.87
    
    
    
    7.32October 2009 (through October 19, 2009)
    
    
    7.70
    
    
    
    7.26
 
 (1)
    
    The average of the noon buying rates provided by the Federal Reserve Bank of New
York on the last day of each full month during the relevant period ADSs
 7




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CAPITALIZATION AND INDEBTEDNESS
  REASONS FOR THE OFFER AND USE OF PROCEEDS
  RISK FACTORS
 In addition to the other information included in this annual report and the exhibits, you
should also carefully consider the following factors related to our ordinary shares and ADSs. There
may be additional risks that we do not currently know of or that we currently deem immaterial based
on information currently available to us. Although Harmony has a formal risk policy framework in
place, the maintenance and development of which is undertaken on an ongoing basis so as to help
management address systematic categories of risk associated with its business operations, any of
these risks could have a material adverse effect on our business, financial condition or results of
operations, leading to a decline in the trading price of our ordinary shares or our ADSs. The risks
described below may, in retrospect, turn out to be incomplete and therefore may not be the only
risks to which we are exposed. Additional risks and uncertainties not presently known to us or that
we now believe are immaterial (and have therefore not been included), could also adversely affect
our businesses, results of operations or financial condition. The order of presentation of the risk
factors below does not indicate the likelihood of their occurrence or the magnitude or the
significance of the individual risks. The risks described below could occur individually or
cumulatively and intensify in case of a cumulative occurrence.
 Risks Relating to Our Business and the Gold Mining Industry
 The profitability of our operations, and the cash flows generated by those operations, are affected
by changes in the Rand price of gold, such that a fall in the price of gold below our cash cost of
production for any sustained period may lead us to experience losses and to curtail or suspend
certain operations.
  
    
    the demand for gold for industrial uses and for use in jewelry;
    
    international or regional political and economic trends;
    
    the strength or weakness of the U.S. dollar (the currency in which gold prices generally
are quoted) and of other currencies;
    
    financial market expectations regarding the rate of inflation;
    
    interest rates;
    
    speculative activities;
    
    actual or expected purchases and sales of gold bullion held by central banks or other
large gold bullion holders or dealers;
    
    forward sales by other gold producers; and
    
    the production and cost levels for gold in major gold-producing nations, such as South
Africa, China, the United States and Australia.
  8




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Price per ounceHigh
    
    Low
    
    AverageCalendar Year
    
    ($)
    
    ($)
    
    ($)1999
    
    
    326
    
    
    
    253
    
    
    
    2792000
    
    
    313
    
    
    
    264
    
    
    
    2822001
    
    
    293
    
    
    
    256
    
    
    
    2712002
    
    
    332
    
    
    
    278
    
    
    
    3092003
    
    
    412
    
    
    
    322
    
    
    
    3612004
    
    
    427
    
    
    
    343
    
    
    
    3892005
    
    
    476
    
    
    
    411
    
    
    
    4342006
    
    
    725
    
    
    
    525
    
    
    
    6042007
    
    
    841
    
    
    
    608
    
    
    
    6952008
    
    
    1,011
    
    
    
    713
    
    
    
    8722009 (through October 19, 2009)
    
    
    1,059
    
    
    
    810
    
    
    
    938
   As the majority of our production costs are incurred in Rand and other non-U.S. currencies, and
gold is sold in U.S. dollars, our financial condition could be materially harmed by an appreciation
in the value of the Rand and other non-U.S. currencies against the U.S. dollar.
  As we currently do not enter into forward sales, commodity, derivatives or hedging arrangements
with respect to our future gold production, we are exposed to the impact of any significant
decrease in the gold price.
  Estimations of our gold reserves are based on a number of assumptions, including assumptions as to
mining and recovery factors, future cash costs of production and the price of gold and may yield
less gold under actual production conditions than currently estimated.
  
    
    future cash costs (which in some cases are assumed to decrease significantly);
    
    future gold prices; and
    
    future currency exchange rates.
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In order to maintain gold production beyond the expected lives of our existing mines or to increase
production materially above projected levels, we will need to access additional reserves through
exploration or discovery.
  
    
    locating orebodies;
    
    identifying the metallurgical properties of orebodies;
    
    estimating the economic feasibility of mining orebodies;
    
    developing appropriate metallurgical processes;
    
    obtaining necessary governmental permits; and
    
    constructing mining and processing facilities at any site chosen for mining.
  
    
    future gold and other metal prices;
    
    anticipated tonnage, grades and metallurgical characteristics of ore to be mined and
processed;
    
    anticipated recovery rates of gold and other metals from the ore, and
    
    anticipated total costs of the project, including capital expenditure and cash costs.
 Actual cash costs of exploration, production and economic returns may differ significantly from
those anticipated by our feasibility studies for new development projects.
  
    
    the availability and timing of necessary environmental and governmental permits;
    
    the timing and cost of constructing mining and processing facilities, which can be
considerable;
    
    the availability and cost of skilled labor, power, water and other materials;
    
    the accessibility of transportation and other infrastructure, particularly in remote
locations;
    
    the availability and cost of smelting and refining arrangements; and
    
    the availability of funds to finance construction and development activities.
 10




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PNG
 The costs associated with the pumping of water inflows from closed mines adjacent to our operations
could adversely affect our results of operations.
  The supply of electricity and increases in the cost of power may adversely affect our results of
operations and our financial condition.
 ECS
 NERSA
 We may experience problems in identifying, financing and managing new acquisitions and integrating
them with our existing operations.
  
    
    our ability to identify appropriate assets for acquisition and/or to negotiate
acquisitions on favorable terms;
    
    obtaining the financing necessary to complete future acquisitions;
    
    difficulties in assimilating the operations of the acquired business;
    
    difficulties in maintaining our financial and strategic focus while integrating the
acquired business;
    
    problems in implementing uniform standards, controls, procedures and policies;
    
    increasing pressures on existing management to oversee a rapidly expanding company; and
    
    to the extent we acquire mining operations outside South Africa or Australasia,
encountering difficulties relating to operating in countries in which we have not previously
operated.
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Certain factors may affect our ability to support the carrying value of our property, plant and
equipment, goodwill and other assets on our balance sheet.
    Given the nature of mining and the type of gold mines we operate, we face a material risk of
liability, delays and increased cash costs of production from environmental and industrial
accidents and pollution.
  
    
    rock bursts;
    
    seismic events;
    
    underground fires;
    
    cave-ins or falls of ground;
    
    discharges of gases and toxic chemicals;
    
    release of radioactive hazards;
    
    flooding;
    
    pillar mining;
    
    accidents; and
    
    other conditions resulting from drilling, blasting and the removal and processing of
material from a deep-level mine.
  
    
    flooding of the open-pit;
    
    collapse of the open-pit walls;
    
    accidents associated with the operation of large open-pits and rock transportation
equipment; and
    
    accidents associated with the preparation and ignition of large-scale open-pit blasting
operations.
  
    
    accidents associated with operating a waste dump and rock transportation; and
    
    production disruptions caused by weather.
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The nature of our mining operations presents safety and security risks.
  Item 4 Health and Safety
Matters
 Our insurance coverage may prove inadequate to satisfy future claims against us.
  Our operations may be negatively impacted by inflation.
 SARB
 The socio-economic framework in the regions in which we operate may have an adverse effect on our
operations and profits.
  Actual and potential shortages of production inputs may have an adverse effect on our operations
and profits.
  Our financial flexibility could be materially constrained by exchange control regulations as
imposed by the SARB.
  
    
    generally not permitted to export capital from South Africa, to hold foreign currency or
incur indebtedness denominated in foreign currencies without the approval of the South
African exchange control authorities;
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
    
    generally not permitted to acquire an interest in a foreign venture without the approval
of the South African exchange control authorities and first having complied with the
investment criteria of the South African exchange control authorities;
    
    generally required to repatriate to South Africa profits of foreign operations; and
    
    limited in our ability to utilize profits of one foreign business to finance operations
of a different foreign business.
   We compete with mining and other companies for key human resources
 HDSAs Item 6.  Employees
 Since our South African labor force has substantial trade union participation, we face the risk of
disruption from labor disputes and new South African labor laws.
  Item 6. Employees
   We may suffer adverse consequences as a result of our reliance on outside contractors to conduct
our operations.
  
    
    negotiating agreements with contractors on acceptable terms;
    
    the inability to replace a contractor and its operating equipment in the event that
either party terminates the agreement;
    
    reduced control over those aspects of operations which are the responsibility of the
contractor;
    
    failure by a contractor to perform in terms of its agreement with us;
    
    interruption of operations in the event that a contractor ceases to operate due to
insolvency or other unforeseen events;
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##### Table of Contents




    
    failure of a contractor to comply with applicable legal and regulatory requirements, to
the extent it is responsible for such compliance; and
    
    contractors problems regarding management of its workforce, labor unrest or other
employment issues.
 Item 6. Directors, Senior
Management and Employee s  Employees
 HIV & AIDS poses risks to us in terms of productivity and costs.
 Item 4.  Regulation 
Health and Safety Matters.
 The cost of occupational healthcare services may increase in the future.
 Mine Health and
Safety Act
 Occupational Diseases Act
 Laws governing mineral rights affect our business.
 MPRDA Item 4. Regulation  South Africa
 Mining Charter
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Item 4. Regulation
 We are subject to extensive environmental regulations.
     Item 4. Regulation
 Environmental Matters
 Investors in the United States may have difficulty bringing actions, and enforcing judgments,
against us, our directors and our executive officers based on the civil liabilities provisions of
the federal securities laws or other laws of the United States or any state thereof.
  16




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
    
    the court that pronounced the judgment had jurisdiction to entertain the case according
to the principles recognized by South African law with reference to the jurisdiction of
foreign courts;
    
    the judgment is final and conclusive;
    
    the judgment has not lapsed;
    
    the recognition and enforcement of the judgment by South African courts would not be
contrary to public policy, including observance of the rules of natural justice which
require that the documents initiating the United States proceeding were properly served on
the defendant and that the defendant was given the right to be heard and represented by
counsel in a free and fair trial before an impartial tribunal;
    
    the judgment does not involve the enforcement of a penal or revenue law; and
    
    the enforcement of the judgment is not otherwise precluded by the provisions of the
Protection of Business Act 99 of 1978, as amended, of the Republic of South Africa.
 Compliance with new and changing corporate governance and public disclosure requirements adds
uncertainty to our compliance policies and increases our costs of compliance.
  Item 15 Disclosure Controls and Procedures
  Sales of large quantities of our ordinary shares and ADSs, or the perception that these sales may
occur, could adversely affect the prevailing market price of such securities.
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Because we have a significant number of outstanding share options, our ordinary shares are subject
to dilution.
  We may not pay dividends or make similar payments to our shareholders in the future.
   18




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Item 4. INFORMATION ON THE COMPANY
 BUSINESS
 History and Development
  Item 4. Information on the
Company  Business  Harmonys Mining Operations  Overview Item 4. Information on the Company  Regulation Item 10.
Additional Information Memorandum and Articles of Association
  Item 4. Disposals
  South African Operations
   Item 4 Operational Strategy: Back-to-Basics Harmonys
Management Structure
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
    
    Tshepong, Phakisa, Bambanani, Doornkop, Elandsrand, Target, Evander, Masimong, Virginia
(the Cooke operations were considered to be a reportable segment in fiscal 2008 and have
been disclosed under discontinued operations for all periods presented); and
    
    all other shafts and surface operations, including those that treat historic sand dumps,
rock dumps and tailings dams, are grouped together under Other  Underground or Other 
Surface. Other includes Joel, Kalgold and Phoenix.
 International Operations
  Dioro
   Morobe Wafi Newcrest Item 8. Recent Developments
 Strategy
  20




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##### Table of Contents




    
    Stabilization Phase  this phase extended over a five-month period and included the
focused implementation of the first component of the strategy, called Back-to-Basics.
Back-to-Basics, which continued until the end of fiscal 2009, has now become a guiding
philosophy for the overall strategy.
    
    Recovery Phase  the second component of the strategy, which focuses on
Recovery/Organic Growth, began in fiscal 2008 and will extend into the third phase.
    
    Growth Phase  the third and final Organic/Acquisition component will be initiated
as the Recovery/Organic Growth component of the strategy delivers results, and will
extend through 2012.
 Back-to-Basics
  
    
    Disciplined mining
    
    Cost control
    
    Ore reserve management
    
    Efficiency
  
    
    Safety
 
    
    The commitment to zero harm initiated at top management, filtering to every level
through a deliberate and programmed effort.
    
    Comprehensive safety auditing.
    
    Agreement on key non-negotiable principles, specifically management to lead by
example; continuous verbal communication with all team members; visible creation of
awareness of safety-related issues; recognition of and rewarding for safety
achievements; and involving all stakeholders.
    
    Management focus on improving underground conditions, in particular areas deemed
to be of the highest risk  shaft infrastructure and the underground workplace.
 
    
    Empowered management teams
 
    
    Establishment of small, multi-disciplinary, focused management teams at each
mining site, responsible for planning and implementing mining operations.
    
    Setting of annual operational goals  including volume, grade and cost targets
  by each mining site management team in consultation with the executive committee;
development by each management team of an operational plan to attain set goals; and
regular review of results by the executive committee.
 
    
    Focus on increased productivity:
 
    
    To maximize productivity by structuring the operations such that 60% of the
workforce is directly engaged in production mining.
 
    
    Commitment to cost control including the benchmarking of costing parameters, internally between operations and externally against other
gold producers:
 
    
    In particular, the control of labor costs which average 50% of operating costs at the South African operations.
 21




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##### Table of Contents




    
    Pro-active maintenance practices.
    
    Application of the appropriate maintenance principle, involving capital
expenditure commensurate with the life of the operation.
    
    Implementation of cost accounting, ore accounting and reserve management systems
to track and measure costs and ore reserve depletion accurately.
 
    
    Increasing operational consistency:
 
    
    Commitment to increasing operational consistency in respect of both grade and
production in order to extract optimal value from orebodies by increasing
development expenditure and a focus on comprehensive ore reserve management.
 
    
    Review of opportunities to develop certain assets  uranium in particular, underground resources of which are not
currently reflected in the balance sheet or reserve statement  independently of the core gold business:
 
    
    Selected acquisitions to diversify the companys operations and complement its competitive strengths.
    
    Targeted disposals to upgrade the companys overall portfolio quality.
 Organic growth
  
    
    extracting high-quality ounces; and
    
    developing and operating the companys long-life mines.
  
    
    the Companys extensive experience in and established track record for identification, exploration and development of
its own projects;
    
    its ongoing exploration programme focused on both on-mine exploration targeting resources within the economic radius of
existing mines and new mine exploration targeting early to advanced stage projects around the world;
    
    expansion of the production base in South Africa and PNG, with a focus on developing new mines at competitive cash
costs and upgrading the overall quality of the companys portfolio;
    
    a diverse project pipeline comprising five well-advanced projects  Elandsrand new mine, Doornkop South Reef, Tshepong
sub-66 and 71 Declines, Phakisa in South Africa, and Hidden Valley in PNG  which could deliver up to 1.4 million
low-cost production ounces by 2012 and a reduction in overall cash costs per ounce;
    
    a number of additional development projects  including surface sand dumps, rock dumps and tailings dams; the
companys uranium deposits; and the Wafi-Golpu copper-gold deposit in PNG  which could increase production ounces;
and
    
    expansion of the Companys exploration skills base.
 
 22




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##### Table of Contents



Delivering on strategy
  
    
    improvements in two key safety indicator rates  the frequency rates of lost-time injuries and of reportable injuries
  and the receipt of several safety-related industry awards;
    
    reversal of five years of accumulated losses;
    
    achievement of zero net debt;
    
    strong cash flow;
    
    establishment of Rand Uranium (Proprietary) Limited (Rand Uranium), a significant step in turning to account its
uranium resources;
    
    creation of the Morobe Mining Joint Venture, a 50:50 partnership in the PNG assets with Newcrest of Australia;
    
    start of production at all five of the companies major projects  Phakisa, Doornkop South Reef, Elandsrand and
Tshepong in South Africa and Hidden Valley in PNG; and
    
    stepping up of the companys exploration programme, with a focus on the Wafi-Golpu copper-gold tenements in PNG and the
Evander South project, the St Helena tailings project and several underground areas associated with existing operations
in South Africa.
 Competitive Strengths
  Leading market position in the attractive gold industry
 
    
    We believe that our size and leading market position enables us to undertake exploration
and simultaneously develop multiple projects around the world, as well as secure capital on
competitive terms.
    
    The global gold industry offers a number of attractive industry fundamentals from which
we benefit. This includes the absence of available substitutes, relatively high barriers to
entry, and increasing gold producer concentration.
    
    We are developing new mines at a planned lower cost per ounce than our current
operations, which we believe will help make them robust enough to survive any margin squeeze
and to withstand any reversal in the gold price. We expect the gold price to continue its
upward trend in the medium term.
 Significant reserves with long mine lives
 
    
    Our ore reserves as of June 30, 2009 amounted to 48.2 million ounces of gold spread across
our assets in South Africa and PNG. This ore reserve base is sufficient to support our existing
production profile in excess of 10 years at current production levels. There has been a 2.3 million
ounces year-on-year negative variance in ore reserves due to normal depletion of 1.6 million ounces
and the equity adjustment at Papua New Guinea to 50% attributable to Harmony which resulted in a
further decrease of 0.9 million ounces. On the positive side, there is a net addition of 0.2
million ounces of ore reserves from surface stockpiles and other positive adjustments from the
operations.
    
    Of our 48.2 million ounces of reserves, 36.4 million ounces are classified as above
infrastructure and 11.8 million ounces are classified as below infrastructure (reserves for
which capital expenditure has still to be approved).
 
 23




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##### Table of Contents



Highly attractive project pipeline
 
    
    We have a diverse portfolio of gold development projects spread across South Africa and
PNG. These projects include Elandsrand, Doornkop, Tshepong and Phakisa in South Africa, and
Hidden Valley in PNG, which, when developed, could deliver up to 1.4 million ounces of
additional production by 2012.
    
    We believe the relatively higher grade of these South African deposits and/or lower cost
base will result in these ounces being produced at highly competitive cash costs. This in
turn may result in a reduction in our overall cash cost position as these new projects are
commissioned.
    
    In addition to these projects, we have a number of additional development prospects that
are being considered and progressed, including the processing of sand dumps and tailings
dams in our tailings projects, the processing of rock dumps, and developing the Wafi-Golpu
copper/gold deposit in PNG, which, when all developed, could increase production ounces per
annum.
    
    We have also expanded our exploration skill base, evidenced by our progress in PNG.
    
    We formed Rand Uranium, to which we have transferred our Cooke assets to optimize the
value of our uranium deposits.
 Positive gold market outlook
 
    
    In the midst of volatile tumultuous global investment markets, the gold market has
demonstrated great resilience and a positive upside. The price performance throughout fiscal
2009 supports our positive outlook for gold and, given our operational imperatives, we will
seek to contain costs, increase output and optimize our margins.
    
    Post June 30, 2009, the gold price hit a high of U.S.$1,059.50 per ounce and, while it
was U.S.$1,050.50 per ounce as of October 19, 2009, this is 32% higher than it was for the
same time the previous year.
    
    We believe the fundamental drivers behind increased demand and decreased new supply of
gold will remain in the future, which will in turn support a higher gold price over this
period. As an unhedged gold producer, we will benefit from a rising gold price environment.
 Increased focus on earnings margins and cost
 
    
    Our aim remains to return to profitability. At an operational level we have put in place
an intensive process of business planning, with benchmarks and targets we believe to be
realistic.
    
    We are committed to lower our cost base and extensively benchmark our costing parameters
both internally among our operations, and externally against other gold producers. Stringent
cost cutting and cost control programs have been implemented.
    
    We are confident that the benefits of our restructuring process and ongoing cost focus
will be sustained in the long term, and as a result, our ability to withstand any future
adverse market conditions has been significantly enhanced.
 Conservative balance sheet and low gearing
 
    
    We maintain a conservative gearing policy and seek to fund ongoing capital expenditure
(excluding growth projects) through cash generated from existing operations.
    
    Our low level of gearing should provide us with the ability to utilize debt to fund
capital and development expenditure requirements for our new projects.
 24




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##### Table of Contents



Experienced management team with significant industry expertise
 
    
    Our senior management team consists of experienced mining executives with extensive
industry backgrounds combined with geological and metallurgical expertise.
    
    Our senior management team has a proven track record in developing and managing the
operations under its control, and has demonstrated an ability to optimize underperforming
assets as well as developing new projects around the world.
 Leading Black Economic Empowerment strategy
 
    
    We are proud to be a South African company that fully embraces the countrys
transformation initiatives. We are approximately 15% owned by African Rainbow Minerals
Limited (ARM Limited), a black empowerment company in which our chairman, Patrice Motsepe,
owns an interest. Of our total production profile, 36% of our South African ounces are
attributed empowerment ounces.
    
    We believe that we have gone beyond the requirements of the Mining Charter by ensuring
that our HDSA partners are truly empowered, that we are largely managed by a HDSA Board, and
that we continue to engage with black shareholders and/or partners to find more
opportunities to invest in BEE transactions and involve HDSA partners.
    
    We will continue to embrace empowerment as part of our growth strategy and we acknowledge
that empowerment forms a fundamental part of our business into the future.
 Principal Investments
 Item 8. Recent Developments
  Avoca Item 4. Disposals
 Rio Tinto
 Item 4. Disposals
 Pamodzi Item 4 Disposals
  Western Areas Gold Fields Item 4 Disposals Item
4 Disposals
 25




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##### Table of Contents



Disposals
  PRF
         26




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##### Table of Contents



Hedging Policy
    Description of Mining Business
 Exploration
   
    
    on-mine exploration, which looks for resources within the economic radius of existing
mines, and
    
    new mine exploration, which is the global search for early to advanced stage projects.
   Mining
  
    
    Accessing the orebody.In our South African underground mines, access to the orebody is by means of shafts sunk from
the surface to the lowest economically and practically mineable level. Horizontal development
at various intervals of a shaft (known as levels) extends access to the horizon of the reef to
be mined. On-reef development then provides specific mining access. Horizontal development at
various intervals of the decline extends access to the horizon of the ore to be mined. The
declines are advanced on a continuous basis to keep ahead of the mining taking place on the
levels above. In our open-pit mines, access to the orebody is provided by overburden
stripping, which removes the covering layers of topsoil or rock, through a combination of
drilling, blasting, loading and hauling, as required.
 27




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##### Table of Contents




    
    Mining the orebody.The process of ore removal starts with drilling and blasting the accessible ore. The blasted
faces are then cleaned, and the ore is transferred to the transport system. In open-pit mines,
gold-bearing material may require drilling and blasting, and is usually collected by
bulldozers or shovels to transfer it onto trucks, which transport it to the mill.
  Processing
   
    
    Comminution.Comminution is the process of breaking up the ore to expose and liberate the gold and make it
available for treatment. Conventionally, this process occurs in multi-stage crushing and
milling circuits, which include the use of jaw and gyratory crushers and rod and tube and ball
mills. Our more modern milling circuits include semi- or fully-autogenous milling where the
ore itself is used as the grinding medium. Typically, ore must be ground to a minimum size
before proceeding to the next stage of treatment.
    
    Treatment.In most of our metallurgical plants, gold is extracted into a leach solution from the host ore
by leaching in agitated tanks. Gold is then extracted onto activated carbon from the solution
using the CIL or CIP processes.
   Item 4. Information on the Company-Regulation  Mineral Rights.
 Harmonys Management Structure
  28




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##### Table of Contents



Capital Expenditures
    Business  Harmonys Mining Operations Item 4. Information on the Company  Business  Harmonys Mining Operations  Evander Operations .
 Reserves
  
    
    normal depletion of 1.6 million ounces;
    
    the equity adjustment at Papua New Guinea to 50% attributable to Harmony resulted in a
further decrease of 0.9 million ounces; and
    
    a net addition of 0.2 million ounces of ore reserves from surface stockpiles and other
positive adjustments from the operations.
 SAMREC Code JORC
  29




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##### Table of Contents




    
    the database of measured and indicated resource blocks (per shaft section);
    
    an assumed gold price which, for this ore reserve statement, was taken as R225,000 per
kilogram;
    
    planned production rates;
    
    the mine recovery factor (MRF) which is equivalent to the mine call factor (MCF)
multiplied by the plant recovery factor; and
    
    planned cash costs (cost per tonne).
       30




---



##### Table of Contents



Ore Reserves statement (Imperial) as at June 30, 2009
 PROVEN RESERVES
    

    PROBABLE RESERVES
    

        TOTAL RESERVESOPERATIONS
    
    Tons
    
    Grade
    
    Gold oz (1)
    
    Tons
    
    Grade
    
    Gold oz (1)
    
    Tons
    
    Grade
    
    Gold oz (1)GOLD
    
    (million)
    
    (oz/ton)
    
    (000)
    
    (million)
    
    (oz/ton)
    
    (000)
    
    (million)
    
    (oz/ton)
    
    (000)South Africa UndergroundBambanani
    
    
    3.9
    
    
    
    0.247
    
    
    
    965
    
    
    
    1.3
    
    
    
    0.318
    
    
    
    420
    
    
    
    5.2
    
    
    
    0.265
    
    
    
    1,385Joel
    
    
    1.0
    
    
    
    0.168
    
    
    
    161
    
    
    
    2.5
    
    
    
    0.161
    
    
    
    404
    
    
    
    3.5
    
    
    
    0.163
    
    
    
    565Masimong
    
    
    4.9
    
    
    
    0.152
    
    
    
    751
    
    
    
    1.5
    
    
    
    0.154
    
    
    
    233
    
    
    
    6.4
    
    
    
    0.152
    
    
    
    984Phakisa
    
    
    0.4
    
    
    
    0.145
    
    
    
    56
    
    
    
    22.2
    
    
    
    0.236
    
    
    
    5,239
    
    
    
    22.6
    
    
    
    0.235
    
    
    
    5,295Target
    
    
    5.3
    
    
    
    0.178
    
    
    
    942
    
    
    
    9.9
    
    
    
    0.163
    
    
    
    1,617
    
    
    
    15.2
    
    
    
    0.168
    
    
    
    2,559Tshepong
    
    
    14.1
    
    
    
    0.154
    
    
    
    2,184
    
    
    
    12.6
    
    
    
    0.169
    
    
    
    2,130
    
    
    
    26.7
    
    
    
    0.161
    
    
    
    4,314Virginia
    
    
    7.3
    
    
    
    0.129
    
    
    
    940
    
    
    
    3.1
    
    
    
    0.133
    
    
    
    407
    
    
    
    10.4
    
    
    
    0.130
    
    
    
    1,347Doornkop
    
    
    0.7
    
    
    
    0.104
    
    
    
    70
    
    
    
    1.3
    
    
    
    0.113
    
    
    
    153
    
    
    
    2.0
    
    
    
    0.110
    
    
    
    223Elandsrand
    
    
    12.6
    
    
    
    0.190
    
    
    
    2,395
    
    
    
    28.9
    
    
    
    0.178
    
    
    
    5,146
    
    
    
    41.5
    
    
    
    0.182
    
    
    
    7,541Evander
    
    
    3.1
    
    
    
    0.169
    
    
    
    522
    
    
    
    7.9
    
    
    
    0.181
    
    
    
    1,434
    
    
    
    11.0
    
    
    
    0.177
    
    
    
    1,956Evander(below infrastructure)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    54.5
    
    
    
    0.217
    
    
    
    11,849
    
    
    
    54.5
    
    
    
    0.217
    
    
    
    11,849Total South Africa Underground
    
    
    53.3
    
    
    
    0.169
    
    
    
    8,986
    
    
    
    145.7
    
    
    
    0.199
    
    
    
    29,032
    
    
    
    199.0
    
    
    
    0.191
    
    
    
    38,018South Africa SurfaceKalgold
    
    
    17.3
    
    
    
    0.025
    
    
    
    425
    
    
    
    9.8
    
    
    
    0.031
    
    
    
    307
    
    
    
    27.1
    
    
    
    0.027
    
    
    
    732Free State Surface
    
    
    928.3
    
    
    
    0.007
    
    
    
    6,459
    
    
    
    112.2
    
    
    
    0.008
    
    
    
    845
    
    
    
    1,040.5
    
    
    
    0.007
    
    
    
    7,304Total South Africa Surface
    
    
    945.6
    
    
    
    0.007
    
    
    
    6,884
    
    
    
    122.0
    
    
    
    0.009
    
    
    
    1,152
    
    
    
    1,067.6
    
    
    
    0.008
    
    
    
    8,036Total South Africa
    
    
    998.9
    
    
    
    
    
    
    
    15,870
    
    
    
    267.7
    
    
    
    
    
    
    
    30,184
    
    
    
    1,266.6
    
    
    
    
    
    
    
    46,054Papua New 
Guinea(2)Hidden Valley and Kaveroi
    
    
    1.5
    
    
    
    0.068
    
    
    
    105
    
    
    
    19.4
    
    
    
    0.058
    
    
    
    1,126
    
    
    
    20.9
    
    
    
    0.059
    
    
    
    1,231Hamata
    
    
    0.2
    
    
    
    0.064
    
    
    
    7
    
    
    
    2.1
    
    
    
    0.078
    
    
    
    164
    
    
    
    2.3
    
    
    
    0.078
    
    
    
    171Golpu
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39.0
    
    
    
    0.018
    
    
    
    694
    
    
    
    39.0
    
    
    
    0.018
    
    
    
    694Total Papua New Guinea
    
    
    1.7
    
    
    
    0.068
    
    
    
    112
    
    
    
    60.5
    
    
    
    0.033
    
    
    
    1,984
    
    
    
    62.2
    
    
    
    0.034
    
    
    
    2,096GRAND TOTAL
    
    
    1,000.6
    
    
    
    
    
    
    
    15,982
    
    
    
    328.2
    
    
    
    
    
    
    
    32,168
    
    
    
    1,328.8
    
    
    
    
    
    
    
    48,150
 
 (1)
    
    Metal figures are fully inclusive of all mining dilutions and gold losses, and are
reported as mill delivered tonnes.Metallurgical recovery factors have not been applied to the reserve figures stated above. The
approximate metallurgical recovery factors for the table above are as follows: Bambanani 96%, Joel
96%, Masimong 95%, Phakisa 95%, Target 96%, Tshepong 97%, Virginia 95%, Doornkop 95%, Elandsrand
96%, Evander 97%, Kalgold 90%, Free State Surface 47%, Hidden Valley/Kaveroi 93%, Hamata 93%,
Golpu 56%.In order to derive the appropriate plant recovery factors for ore reserve estimates a process have
been followed where realistic assumptions based on historical performance have been applied. There
may be short term fluctuation either positive or negative which can lead to small discrepancies
between actual and planned recovery factors.(2)
    
    Represents Harmonys equity portion of 50%.  31




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##### Table of Contents



PROVEN RESERVES
    
    PROBABLE RESERVES
    
    TOTAL RESERVESTons
    
    Grade
    
    Silver oz(1)
    
    Tons
    
    Grade
    
    Silver oz(1)
    
    Tons
    
    Grade
    
    Silver oz(1)OPERATIONS SILVER
    
    (million)
    
    (oz/ton)
    
    (000)
    
    (million)
    
    (oz/ton)
    
    (000)
    
    (million)
    
    (oz/ton)
    
    (000)Papua New Guinea(2)Hidden Valley and Kaveroi
    
    
    1.5
    
    
    
    1.137
    
    
    
    1,755
    
    
    
    19.4
    
    
    
    1.070
    
    
    
    20,767
    
    
    
    20.9
    
    
    
    1.075
    
    
    
    22,522Tons
    
    Grade
    
    Cu lbs
    
    Tons
    
    Grade
    
    Cu lbs
    
    Tons
    
    Grade
    
    Cu lbsCOPPER
    
    (million)
    
    (%)
    
    (million)
    
    (million)
    
    (%)
    
    (million)
    
    (million)
    
    (%)
    
    (million)Papua New Guinea(2)Golpu
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39.0
    
    
    
    1.025
    
    
    
    882
    
    
    
    39.0
    
    
    
    1.025
    
    
    
    882Tons
    
    Grade
    
    Mo lbs
    
    Tons
    
    Grade
    
    Mo lbs
    
    Tons
    
    Grade
    
    Mo lbsMOLYBDENUM
    
    (million)
    
    (lbs/ton)
    
    (million)
    
    (million)
    
    (lbs/ton)
    
    (million)
    
    (million)
    
    (lbs/ton)
    
    (million)Papua New Guinea(2)Golpu
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39.0
    
    
    
    0.231
    
    
    
    9
    
    
    
    39.0
    
    
    
    0.231
    
    
    
    9
 
 (1)
    
    Metal figures are fully inclusive of all mining dilutions and metal losses, and are
reported as mill delivered tonnes(2)
    
    Represents Harmonys equity portion of 50%   Worldwide Operations
 Description of Property
  
 32




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##### Table of Contents



Hectares
    
    AcresDoornkop
    
    
    2,941
    
    
    
    7,267Elandsrand
    
    
    5,113
    
    
    
    12,634Free State (includes Masimong and Virginia)
    
    
    22,583
    
    
    
    55,802Tshepong and Phakisa
    
    
    10,799
    
    
    
    26,683Bambanani
    
    
    2,356
    
    
    
    5,821Joel
    
    
    2,162
    
    
    
    5,342Kalgold
    
    
    615
    
    
    
    1,520Evander
    
    
    36,898
    
    
    
    91,174Target (includes Loraine)
    
    
    7,952
    
    
    
    19,649Total
    
    
    91,419
    
    
    
    225,892
  Hectares
    
    AcresMount Magnet
    
    
    80,123
    
    
    
    197,988PNG
    
    
    327,600
    
    
    
    809,514Total Worldwide Operations
    
    
    499,142
    
    
    
    1,233,394
 Item 8. Recent
Developments
  Geology
    33




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##### Table of Contents



Harmonys Mining Operations  Overview
  
    
    Tshepong
    
    Phakisa
    
    Bambanani
    
    Doornkop
    
    Elandsrand
    
    Masimong
    
    Virginia (consists of Harmony 2, Merriespruit 1 & 3, Unisel and Brand 3 & 5)
    
    Target
    
    Evander (consists of Evander 2, 5, 7 and 8)
    
    Joel (included under Other  Underground)
   
    
    Free State (also known as Phoenix)
    
    Freegold
    
    Kalgold
    
    Target
    
    
    Mount Magnet  The site was put on care and maintenance at the end of December 2007. We
have commenced with a drilling program in order to further define the orebody. Management
may decide to resume the sale process as soon as the drilling results are available.  See
International Operations above.
    
    South Kalgoorlie  we finalized the sale of this operation with Dioro on November 30,
2007  See Disposals above.
  34




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##### Table of Contents




    
    an overview of our South African mining operations with a discussion and production
analysis of each of our operating segments; and
    
    an overview of our International (Australian and PNG) operations.
 Item 3 Selected Financial Data  Selected
Historical Consolidated Financial Data
  South African Mining Operations
 
 Unless indicated otherwise, the discussions below are for continuing operations.
 35




---



##### Table of Contents



Underground
 Tshepong, Phakisa and Bambanani
 Introduction: Anglogold ARMgold
 History:
 Geology:
 Mining Operations:
     36




---



##### Table of Contents



Safety: LTIFR FFIR
 LTIFR
    
    FFIRTshepong
    
    
    15.18
    
    
    
    0.62Phakisa
    
    
    2.48
    
    
    
    0.00Bambanani
    
    
    7.48
    
    
    
    0.15
  37




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##### Table of Contents



Plants:
  Average Milled forProcessing
    
    the Fiscal YearPlant
    
    Capacity
    
    Ended June 30, 2009(tons/month)
    
    (tons/month)FS 1
    
    
    420,000
    
    
    
    410,682
  Production analysis:
 Fiscal Year Ended June 30,Tshepong
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    1,516
    
    
    
    1,649
    
    
    
    1,824Recovered grade (ounces/ton)
    
    
    0.152
    
    
    
    0.161
    
    
    
    0.175Gold produced (ounces)
    
    
    230,778
    
    
    
    265,914
    
    
    
    319,192Gold sold (ounces)
    
    
    227,113
    
    
    
    273,119
    
    
    
    318,887Results of operations($)Product sales (000)
    
    
    197,726
    
    
    
    223,185
    
    
    
    202,757Cash cost (000)
    
    
    108,605
    
    
    
    124,720
    
    
    
    112,043Cash profit(000)
    
    
    89,121
    
    
    
    98,465
    
    
    
    90,714Cash costsPer ounce of gold ($)
    
    
    483
    
    
    
    455
    
    
    
    360Capex(000)($)
    
    
    27,711
    
    
    
    26,834
    
    
    
    26,072
    38




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##### Table of Contents



Capital Expenditure:
 Fiscal Year Ended June 30,Phakisa
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    204
    
    
    
    34
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.109
    
    
    
    0.118
    
    
    
    Gold produced (ounces)
    
    
    22,216
    
    
    
    4,024
    
    
    
    Gold sold (ounces)
    
    
    21,477
    
    
    
    4,212
    
    
    
    Results of operations ($)Product sales (000)
    
    
    19,009
    
    
    
    3,891
    
    
    
    Cash cost (000)
    
    
    11,903
    
    
    
    2,348
    
    
    
    Cash profit (000)
    
    
    7,106
    
    
    
    1,543
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    555
    
    
    
    497
    
    
    
    Capex (000) ($)
    
    
    51,210
    
    
    
    40,335
    
    
    
    31,593
     Capital Expenditure:
 39




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##### Table of Contents



Fiscal Year Ended June 30,Bambanani
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    570
    
    
    
    912
    
    
    
    1,283Recovered grade (ounces/ton)
    
    
    0.213
    
    
    
    0.170
    
    
    
    0.154Gold produced (ounces)
    
    
    121,530
    
    
    
    154,879
    
    
    
    197,084Gold sold (ounces)
    
    
    119,665
    
    
    
    158,985
    
    
    
    197,060Results of operations($)Product sales (000)
    
    
    102,645
    
    
    
    128,346
    
    
    
    125,324Cash cost (000)
    
    
    72,343
    
    
    
    101,962
    
    
    
    115,469Cash profit (000)
    
    
    30,302
    
    
    
    26,384
    
    
    
    9,855Cash costsPer ounce of gold ($)
    
    
    611
    
    
    
    639
    
    
    
    599Capex(000) ($)
    
    
    5,779
    
    
    
    14,737
    
    
    
    17,306
       Capital Expenditure:
 Doornkop
 Introduction Randfontein
 History
 Geology
 40




---



##### Table of Contents



Mining Operations:
    41




---



##### Table of Contents



Safety
  Plants
  Average Milled for theProcessing
    
    Fiscal Year EndedPlant
    
    Capacity
    
    June 30, 2009(tons/month)
    
    (tons/month)Doornkop
    
    
    220,000
    
    
    
    138,735
  Production analysis:
 Fiscal Year Ended June 30,Doornkop
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    605
    
    
    
    494
    
    
    
    597Recovered grade (ounces/ton)
    
    
    0.070
    
    
    
    0.089
    
    
    
    0.095Gold produced (ounces)
    
    
    42,150
    
    
    
    44,038
    
    
    
    56,810Gold sold (ounces)
    
    
    43,211
    
    
    
    44,143
    
    
    
    57,364Results of operations($)Product sales (000)
    
    
    38,128
    
    
    
    35,489
    
    
    
    36,503Cash cost (000)
    
    
    31,253
    
    
    
    31,014
    
    
    
    25,210Cash profit (000)
    
    
    6,875
    
    
    
    4,475
    
    
    
    11,293Cash costsPer ounce of gold ($)
    
    
    804
    
    
    
    749
    
    
    
    438Capex(000) ($)
    
    
    43,918
    
    
    
    48,039
    
    
    
    37,557
     42




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##### Table of Contents



Capital Expenditure:
 Elandsrand
 Introduction:
 History:
 Geology:
 43




---



##### Table of Contents



Mining Operations:
     Safety
 Plants:
  Average Milled for theProcessing
    
    Fiscal YearPlant
    
    Capacity
    
    June 30, 2009(tons/month)
    
    (tons/month)Elandsrand Plant
    
    
    185,000
    (1)
    
    
    83,951
 
 (1)
    
    Processing capacity will reach its optimal capacity upon completion of the
Elandsrand New Mine Project. 44




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##### Table of Contents



Production analysis:
 Fiscal Year Ended June 30,Elandsrand
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    1,061
    
    
    
    981
    
    
    
    1,117Recovered grade (ounces/ton)
    
    
    0.164
    
    
    
    0.167
    
    
    
    0.175Gold produced (ounces)
    
    
    174,321
    
    
    
    164,215
    
    
    
    195,412Gold sold (ounces)
    
    
    183,676
    
    
    
    158,631
    
    
    
    194,710Results of operations($)Product sales (000)
    
    
    157,956
    
    
    
    132,699
    
    
    
    124,347Cash cost (000)
    
    
    117,321
    
    
    
    103,351
    
    
    
    102,534Cash profit (000)
    
    
    40,635
    
    
    
    29,348
    
    
    
    21,813Cash costsPer ounce of gold ($)
    
    
    660
    
    
    
    652
    
    
    
    535Capex(000) ($)
    
    
    46,915
    
    
    
    43,830
    
    
    
    33,094
       45




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##### Table of Contents



Capital Expenditure:
  Masimong
  History:
 Geology:
 Mining Operations:
     Safety
 Plants
 46




---



##### Table of Contents



Production analysis:
 Fiscal Year Ended June 30,Masimong Shaft Complex
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    981
    
    
    
    892
    
    
    
    1,074Recovered grade (ounces/ton)
    
    
    0.157
    
    
    
    0.131
    
    
    
    0.136Gold produced (ounces)
    
    
    154,034
    
    
    
    116,424
    
    
    
    146,575Gold sold (ounces)
    
    
    154,581
    
    
    
    117,575
    
    
    
    147,958Results of operations($)Product sales (000)
    
    
    135,025
    
    
    
    96,147
    
    
    
    94,534Cash cost (000)
    
    
    73,494
    
    
    
    87,630
    
    
    
    82,833Cash profit (000)
    
    
    61,531
    
    
    
    8,517
    
    
    
    11,701Cash costsPer ounce of gold ($)
    
    
    476
    
    
    
    756
    
    
    
    543Capex(000) ($)
    
    
    14,479
    
    
    
    15,686
    
    
    
    15,141
        Capital Expenditure:
 47




---



##### Table of Contents



Virginia operations
 Introduction:
 History:
 Geology:
       Mining Operations:
   48




---



##### Table of Contents



Safety:
 Plants:
  Average Milledfor the Fiscal YearProcessing
    
    EndedPlant
    
    Capacity
    
    June 30, 2009(tons/month)
    
    (tons/month)Central
    
    
    168,000
    
    
    
    161,768Phoenix
    
    
    500,000
    
    
    
    480,262
 49




---



##### Table of Contents



Fiscal Year Ended June 30,Virginia operations
    
    2009
    
    2008
    
    2007ProductionTons (000)
    
    
    2,493
    
    
    
    2,349
    
    
    
    2,507Recovered grade (ounces/ton)
    
    
    0.104
    
    
    
    0.106
    
    
    
    0.106Gold produced (ounces)
    
    
    258,170
    
    
    
    247,820
    
    
    
    264,890Gold sold (ounces)
    
    
    259,070
    
    
    
    250,324
    
    
    
    266,948Results of operations($)Product sales (000)
    
    
    225,897
    
    
    
    204,807
    
    
    
    171,297Cash cost (000)
    
    
    165,274
    
    
    
    180,133
    
    
    
    145,739Cash profit (000)
    
    
    60,623
    
    
    
    24,674
    
    
    
    25,558Cash costsPer ounce of gold ($)
    
    
    638
    
    
    
    726
    
    
    
    528Capex(000) ($)
    
    
    22,133
    
    
    
    20,868
    
    
    
    18,860
           50




---



##### Table of Contents



Capital Expenditure
 Target
 Introduction:
 History:
 Geology:
     51




---



##### Table of Contents



Mining operations:
      Safety:
  Plants:
  52




---



##### Table of Contents



Average Milled For theProcessing
    
    Fiscal Year EndedPlant
    
    Capacity
    
    June 30, 2009(tons/month)
    
    (tons/month)Target Plant
    
    
    105,000
    
    
    
    103,834
  Production analysis:
 Fiscal Year Ended June 30,Target
    
    2009
    
    
    2008
    
    
    2007ProductionTons (000)
    
    
    710
    
    
    
    686
    
    
    
    904Recovered grade (ounces/ton)
    
    
    0.123
    
    
    
    0.116
    
    
    
    0.158Gold produced (ounces)
    
    
    87,225
    
    
    
    79,602
    
    
    
    142,653Gold sold (ounces)
    
    
    87,611
    
    
    
    85,006
    
    
    
    142,433Results of operations($)Product sales (000)
    
    
    76,435
    
    
    
    69,469
    
    
    
    91,228Cash cost (000)
    
    
    59,599
    
    
    
    51,463
    
    
    
    52,730Cash profit (000)
    
    
    16,836
    
    
    
    18,006
    
    
    
    38,498Cash costsPer ounce of gold ($)
    
    
    645
    
    
    
    716
    
    
    
    403Capex(000) ($)
    
    
    37,994
    
    
    
    35,307
    
    
    
    16,745
     
    
    infrastructural problems with the belts, fridge plants and other environmental
infrastructure, resulting in higher face temperatures and lower efficiencies.
    
    water handling.
    
    low availability of massive stopes.
   53




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##### Table of Contents



Capital Expenditure:
  Evander Operations
 Introduction:
 History:
 Geology:
 Mining Operations:
 54




---



##### Table of Contents




    
    Project currently at an exploration stage following the prefeasibility study.
    
    Surface exploration drilling for phase one is progressing as planned and is intended to
improve the quality of and confidence in the geological model and resource estimates.
  
    
    Project at exploration stage following the geological study.
    
    Underground development, to be used as an underground drilling platform, advanced 233
meters (or 19%). This is intended for investigation of the 7 Shaft flank of the postulated
2010 payshoot.
    
    Feasibility study to follow, pending confirmation of the ore resource in this area.
  
    
    Joint Venture with the African Precious Minerals (APM) was formed to explore these two
target areas.
    
    APM will earn in the 52% equity stake upon completion of the full bankable feasibility
study for each area.
    
    The geological studies are under way and drilling will commence in fiscal 2010.
  
    
    This is a future mining area on the downdip extension of the 8 shaft payshoot.
    
    Synergies with the current 8 Shaft deepening are being considered.
 55




---



##### Table of Contents




    
    Surface exploration drilling is required to bring this project into the full bankable
feasibility study.
    
    The surface exploration drilling at Evander South is likely to produce information that
will enhance the Poplar geological interpretation.
  Safety:
 Plants:
  Average Milled for theProcessing
    
    Fiscal Year EndedPlant
    
    Capacity
    
    June 30, 2009(tons/month)
    
    (tons/month)Kinross-Winkelhaak
    
    
    200,000
    
    
    
    99,083
  Production analysis:
 Fiscal Year Ended June 30,Evander operations
    
    2009
    
    
    2008
    
    
    2007ProductionTons (000)
    
    
    1,241
    
    
    
    1,447
    
    
    
    1,667Recovered grade (ounces/ton)
    
    
    0.153
    
    
    
    0.160
    
    
    
    0.141Gold produced (ounces)
    
    
    190,075
    
    
    
    231,799
    
    
    
    235,857Gold sold (ounces)
    
    
    195,668
    
    
    
    240,037
    
    
    
    235,443Results of operations($)Product sales (000)
    
    
    168,180
    
    
    
    192,978
    
    
    
    151,039Cash cost (000)
    
    
    110,869
    
    
    
    125,995
    
    
    
    113,348Cash profit (000)
    
    
    57,311
    
    
    
    66,983
    
    
    
    37,691Cash costsPer ounce of gold ($)
    
    
    572
    
    
    
    526
    
    
    
    495Capex(000) ($)
    
    
    23,352
    
    
    
    33,388
    
    
    
    28,389
  56




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##### Table of Contents



Capital Expenditure:
 Other  Underground
 Introduction:
 History:
 Geology
 Mining operations
   57




---



##### Table of Contents



Safety
 Plants:
 Production analysis:
 Fiscal Year Ended June 30,Joel
    
    2009
    
    
    2008
    
    
    2007ProductionTons (000)
    
    
    566
    
    
    
    449
    
    
    
    504Recovered grade (ounces/ton)
    
    
    0.116
    
    
    
    0.133
    
    
    
    0.159Gold produced (ounces)
    
    
    65,684
    
    
    
    59,557
    
    
    
    79,894Gold sold (ounces)
    
    
    64,784
    
    
    
    61,215
    
    
    
    79,927Results of operations($)Product sales (000)
    
    
    55,862
    
    
    
    51,557
    
    
    
    50,839Cash cost (000)
    
    
    40,649
    
    
    
    39,131
    
    
    
    33,412Cash profit (000)
    
    
    15,213
    
    
    
    12,426
    
    
    
    17,427Cash costsPer ounce of gold ($)
    
    
    636
    
    
    
    638
    
    
    
    428Capex(000) ($)
    
    
    6,183
    
    
    
    5,375
    
    
    
    3,911
   58




---



##### Table of Contents



Capital Expenditure:
 Other  Surface
 Introduction
 Kalgold
 Introduction:
 History:
 Geology:
 59




---



##### Table of Contents



Mining Operations:
   Safety:
 Plants:
  Average Milled for theProcessing
    
    Fiscal Year EndedPlant
    
    Capacity
    
    June 30, 2009(tons/month)
    
    (tons/month)CIL
    
    
    150,000
    
    
    
    128,387Heap Leach(1)
    
    
    
    
    
    
    
 
 (1)
    
    Active use of heap leaching was discontinued in July 2001. 60




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##### Table of Contents



Production analysis:
 Fiscal Year Ended June 30,Kalgold
    
    2009
    
    
    2008
    
    
    2007ProductionTons (000)
    
    
    1,700
    
    
    
    1,687
    
    
    
    1,740Recovered grade (ounces/ton)
    
    
    0.038
    
    
    
    0.055
    
    
    
    0.033Gold produced (ounces)
    
    
    64,784
    
    
    
    92,229
    
    
    
    56,714Gold sold (ounces)
    
    
    66,841
    
    
    
    93,172
    
    
    
    56,135Results of operations($)Product sales ($) (000)
    
    
    56,915
    
    
    
    76,685
    
    
    
    35,743Cash cost ($) (000)
    
    
    32,390
    
    
    
    38,272
    
    
    
    27,218Cash profit ($) (000)
    
    
    24,525
    
    
    
    38,413
    
    
    
    8,525Cash costsPer ounce of gold ($)
    
    
    506
    
    
    
    401
    
    
    
    506Capex($) (000)
    
    
    1,090
    
    
    
    1,347
    
    
    
    376
        Capital Expenditure:
 61




---



##### Table of Contents



Phoenix
 Introduction
 History
 Safety:
 Mining operations
 TSFs
  Production analysis:
 Fiscal Year Ended June 30,Free State (Phoenix)
    
    2009
    
    
    2008
    
    
    2007ProductionTons (000)
    
    
    6,578
    
    
    
    7,033
    
    
    
    2,368Recovered grade (ounces/ton)
    
    
    0.003
    
    
    
    0.005
    
    
    
    0.009Gold produced (ounces)
    
    
    22,345
    
    
    
    32,215
    
    
    
    21,346Gold sold (ounces)
    
    
    22,345
    
    
    
    32,215
    
    
    
    21,348Results of operations($)Product sales (000)
    
    
    19,448
    
    
    
    26,247
    
    
    
    13,628Cash cost (000)
    
    
    11,924
    
    
    
    12,286
    
    
    
    6,489Cash profit (000)
    
    
    7,524
    
    
    
    13,961
    
    
    
    7,139Cash costsPer ounce of gold ($)
    
    
    534
    
    
    
    381
    
    
    
    293Capex(000) ($)
    
    
    0.279
    
    
    
    0.492
    
    
    
    
   62




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##### Table of Contents



Capital Expenditure:
 Cooke operations
 Introduction
  Geology
   Mining Operations:
     63




---



##### Table of Contents



Plants:
  Production analysis:
 Fiscal Year Ended June 30,Cooke operations
    
    2009(1)
    
    
    2008
    
    
    2007ProductionTons (000)
    
    
    1,419
    
    
    
    3,905
    
    
    
    2,327- Underground
    
    
    514
    
    
    
    1,322
    
    
    
    1,432- Surface
    
    
    905
    
    
    
    2,583
    
    
    
    895Recovered grade (ounces/ton)
    
    
    0.057
    
    
    
    0.060
    
    
    
    0.105- Underground
    
    
    0.137
    
    
    
    0.152
    
    
    
    0.155- Surface
    
    
    0.011
    
    
    
    0.013
    
    
    
    0.025Gold produced (ounces)
    
    
    80,377
    
    
    
    236,170
    
    
    
    244,056- Underground
    
    
    70,378
    
    
    
    201,884
    
    
    
    221,463- Surface
    
    
    9,999
    
    
    
    34,286
    
    
    
    22,593Gold sold (ounces)
    
    
    85,746
    
    
    
    236,242
    
    
    
    243,219- Underground
    
    
    75,747
    
    
    
    201,939
    
    
    
    224,245- Surface
    
    
    9,999
    
    
    
    34,305
    
    
    
    18,974Results of operations($)Product sales(000)
    
    
    68,204
    
    
    
    193,613
    
    
    
    154,711Cash cost (000)
    
    
    49,625
    
    
    
    121,978
    
    
    
    117,603Cash profit (000)
    
    
    18,579
    
    
    
    71,635
    
    
    
    37,108Cash costsPer ounce of gold ($)
    
    
    644
    
    
    
    511
    
    
    
    475- Underground
    
    
    613
    
    
    
    545
    
    
    
    497- Surface
    
    
    868
    
    
    
    525
    
    
    
    256Capex (000)($)
    
    
    9,655
    
    
    
    22,357
    
    
    
    19,494
 
 (1)
    
    As the operations were sold on November 21, 2008, the results are for the five
months then ended and are not comparable with the prior years.    64




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##### Table of Contents



Other  Discontinued operations
 Introduction: Western Australia
  Introduction:
 History:
 Geology:
 Mining operations:
   Plants: VRO
 Production analysis:
 Fiscal Year Ended June 30,Orkney operations
    
    2009
    
    
    2008(1)
    
    
    2007ProductionTons (000)
    
    
    
    
    
    
    571
    
    
    
    947Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.100
    
    
    
    0.126Gold produced (ounces)
    
    
    
    
    
    
    46,655
    
    
    
    119,061Gold sold (ounces)
    
    
    
    
    
    
    57,132
    
    
    
    119,109Results of operations($)Product sales (000)
    
    
    
    
    
    
    42,810
    
    
    
    75,499Cash cost (000)
    
    
    
    
    
    
    51,482
    
    
    
    64,603Cash (loss)/profit (000)
    
    
    
    
    
    
    (8,672
    )
    
    
    10,896Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    1,093
    
    
    
    544Capex($)
    
    
    
    
    
    
    3,579
    
    
    
    15,119
 
 (1)
    
    The results are for the eight months ended February 2008.  65




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##### Table of Contents



International Mining Operations
 
 Western Australia Operations
    66




---



##### Table of Contents



Mount Magnet Operations
 Introduction.
 History:
 Geology:
 Mining Operations: .
    Plant
 67




---



##### Table of Contents



Production analysis:
 Fiscal Year Ended June 30,2009(1)
    
    2008(1)
    
    2007ProductionTons (000)
    
    
    
    
    
    
    966
    
    
    
    1,875Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.080
    
    
    
    0.073Gold produced (ounces)
    
    
    
    
    
    
    75,297
    
    
    
    136,415Gold sold (ounces)
    
    
    
    
    
    
    77,097
    
    
    
    136,415Results of operations($)Product sales (000)
    
    
    
    
    
    
    56,215
    
    
    
    85,760Cash cost (000)
    
    
    
    
    
    
    41,405
    
    
    
    70,528Cash profit (000)
    
    
    
    
    
    
    14,810
    
    
    
    15,232Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    545
    
    
    
    517Capex(000) ($)
    
    
    
    
    
    
    3,909
    
    
    
    20,199
 
 (1)
    
    The operation was on care and maintenance as of December 31, 2007.    Capital Expenditure:
 Exploration:
 South Kalgoorlie Operations
 Introduction:
  History:
 68




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##### Table of Contents



Geology:
 Mining Operations:
 Item 3. Key Information  Risk Factors  Risks Relating to Our
Business and Our Industry  To maintain gold production beyond the expected lives of Harmonys
existing mines or to increase production materially above projected levels, Harmony will need to
access additional reserves through development or discovery.
 Plant: .
 Production analysis:
 Fiscal Year Ended June 30,2009(1)
    
    2008(1)
    
    2007ProductionTons (000)
    
    
    
    
    
    
    477
    
    
    
    1,391Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.058
    
    
    
    0.064Gold produced (ounces)
    
    
    
    
    
    
    27,778
    
    
    
    88,375Gold sold (ounces)
    
    
    
    
    
    
    27,778
    
    
    
    88,371Results of operations($)Product sales (000)
    
    
    
    
    
    
    18,858
    
    
    
    56,253Cash cost (000)
    
    
    
    
    
    
    14,453
    
    
    
    44,567Cash profit (000)
    
    
    
    
    
    
    4,405
    
    
    
    11,686Cash costsPer ounce of gold($)
    
    
    
    
    
    
    517
    
    
    
    504Capex(000) ($)
    
    
    
    
    
    
    12,526
    
    
    
    6,859
 
 (1)
    
    The South Kal Operations sales process was concluded on November 30, 2007. The
results for fiscal 2008 are for the five months ended November 2007.  69




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##### Table of Contents



PNG Operations and Exploration
 Overview
 Introduction:
 1.
    
    the Hidden Valley Operation;2.
    
    the Wafi-Golpu Project; and3.
    
    an Exploration Joint Venture on the surrounding tenement package.
      Recent Developments
 Harmony PNG tenement locations .
  Hidden Valley Operation
 Introduction: ML
 HVK
   70




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##### Table of Contents



History: EL
 Project Overview:
   Geology:
  HVZ KCZ
 Reserves:
 71




---



##### Table of Contents



GradeReserve
    
    Ore
    
    Gold
    
    Silver
    
    Gold
    
    SilverPit
    
    Category
    
    Tons
    
    [ oz/st Au ]
    
    [ oz/st Ag ]
    
    MOz
    
    MOzHidden
    
    Proven
    
    
    1,543,234
    
    
    
    0.068
    
    
    
    1.14
    
    
    
    0.105
    
    
    
    1.8Valley
    
    Probable
    
    
    19,400,656
    
    
    
    0.058
    
    
    
    1.07
    
    
    
    1.126
    
    
    
    20.8Sub-Total
    
    
    20,943,890
    
    
    
    0.059
    
    
    
    1.08
    
    
    
    1.231
    
    
    
    22.5Hamata
    
    Proven
    
    
    110,231
    
    
    
    0.064
    
    
    
    
    
    
    
    0.007
    
    
    
    Probable
    
    
    2,094,389
    
    
    
    0.078
    
    
    
    
    
    
    
    0.164
    
    
    
    Sub-Total
    
    
    2,204,620
    
    
    
    0.078
    
    
    
    
    
    
    
    0.171
    
    
    
    Proven
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Golpu
    
    Probable
    
    
    39,021,774
    
    
    
    0.018
    
    
    
    
    
    
    
    0.694
    
    
    
    Sub-Total
    
    
    39,021,774
    
    
    
    0.018
    
    
    
    
    
    
    
    0.694
    
    
    
    TOTAL
    
    Proven
    
    
    1,653,465
    
    
    
    0.068
    
    
    
    1.14
    
    
    
    0.112
    
    
    
    1.8Probable
    
    
    60,516,819
    
    
    
    0.033
    
    
    
    1.07
    
    
    
    1.984
    
    
    
    20.8Total
    
    
    62,170,284
    
    
    
    0.034
    
    
    
    1.08
    
    
    
    2.096
    
    
    
    22.5
 
 
    
    Stockpiled Tons Site Access
 Engineering Procurement and Construction Management Contract
 Power Supply
  Customs and Excise.
 Environment: EIS
  72




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##### Table of Contents



EMP AMD
 TSF
 Community affairs/landowner discussions. MOA
  Mining and Mining Fleet.
  Plant:
 (a)
    
    a primary crushing, grinding (with the incorporation of a gravity gold recovery circuit),
CIL, Merrill-Crowe zinc precipitation, goldroom and tailings detox plant for the low silver
Hamata ores, and(b)
    
    will revert to a primary and secondary crushing, grinding, flotation, concentrate regrind,
counter-current decantation circuit with Merrill-Crowe zinc precipitation, flotation
concentrate and tailing CIL, goldroom and tailings detox for the high silver oxide/transition
ores, and(c)
    
    then a similar circuit without flotation tail CIL for high silver sulphide ores from Hidden
valley/Kaveroi ores.
   Government royalty and other rights
 73




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##### Table of Contents



Third Party Royalties
  Capital Expenditure:
 Wafi-Golpu Project
 Introduction:
  Geography:
 Mining Reserves: Item 4. Reserves
   1.
    
    The PFS was completed to industry accepted standards but the outcome of further more
detailed studies may affect the reserve.2.
    
    The location for a tailings storage facility has not been finalized, however two
potential sites proximal to the project were identified.
 74




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##### Table of Contents



3.
    
    There are outstanding issues associated with traditional land owners that need to be
resolved before the project is able to be constructed.4.
    
    The Board has not yet committed to completing subsequent phases of study, or to project
construction.
  Government Royalty and Other Rights :
 Capital Expenditures:
 Pre-Feasibility Studies:
 Golpu PFS
 Wafi PFS
 
    
    Golpu stand alone (an update of the Golpu PFS scenario);
    
    Golpu + Link Zone; and
    
    Golpu + Link Zone + NRG1;
  Wafi Gold Projects
 Introduction:
 Geology:
 Metallurgy:
 NRG1
 Project Status:
 75




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##### Table of Contents



Porphyry Copper-Gold Projects
 Introduction:
 Geology:
  Project Status:
 Morobe Mining Joint Venture Tenement Exploration
  1.
    
    Hidden Valley Joint Venture (ML151 and associated infrastructure tenure ME82 and LMP80);2.
    
    Wafi-Golpu Joint Venture (EL440 and EL1105); and3.
    
    Morobe Exploration Joint Venture (EL497, EL677, EL1193, EL1103, EL1316, EL1590, EL1612,
EL1629, EL1630, EL1631, and EL1403).
   
    
    Major new stand alone discoveries;
    
    High-grade drivers to improve cash flows of the Hidden Valley Operation;
    
    Additional reserves to substantially increase mine life or production profile of the
Hidden Valley Operation; and
    
    Additional resources to drive the development of the Wafi-Golpu Project.
  76




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##### Table of Contents



Hidden Valley Joint Venture (ML151)
 Introduction:
 1.
    
    Resource definition to test down plunge extensions of the known orebodies; and2.
    
    Exploration drilling to test for new satellite resources.
   Project Status:
   77




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##### Table of Contents



Wafi Joint Venture (EL440 & EL1105)
 Introduction:
  Nambonga North
 Introduction:
 Project Status:
 78




---



##### Table of Contents



Miapilli
 Introduction:
  Project Status:
 Morobe Exploration Joint Venture EL497, EL677, EL1193, EL1103, EL1316, EL1590, EL1612, EL1629,
EL1630, EL1631, and EL1403 )
 Introduction:
   Kesiago
 Introduction:
  Status:
 Biamena
 Introduction:
 Project Status:
 79




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##### Table of Contents



Pekumbe
 Introduction:
 Status:
 Wiwo
 Introduction:
  Status:
 80




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##### Table of Contents



REGULATION
 Mineral Rights
 South Africa
  
    
    to recognize the internationally accepted right of the state of South Africa to exercise
full and permanent sovereignty over all the mineral and petroleum resources within South
Africa;
    
    to give effect to the principle of South Africas custodianship of its mineral and
petroleum resources;
    
    to promote equitable access to South Africas mineral and petroleum resources to all the
people of South Africa;
    
    to substantially and meaningfully expand opportunities for HDSAs including women, to
enter the mineral and petroleum industry and to benefit from the exploitation of South
Africas mineral and petroleum resources;
    
    to promote economic growth and mineral and petroleum resources development in South
Africa;
    
    to promote employment and advance the social and economic welfare of all South Africans;
    
    to provide security of tenure in respect of prospecting, exploration, mining and
production operations;
    
    to give effect to Section 24 of the South African Constitution by ensuring that South
Africas mineral and petroleum resources are developed in an orderly and ecologically
sustainable manner while promoting justifiable social and economic development; and
    
    to ensure that holders of mining and production rights contribute towards socio-economic
development of the areas in which they are operating.
   DMR
 81




---



##### Table of Contents




    
    give effect to the Ministers stated intention to promote investment in the South African
mining industry;
    
    establish objective criteria for compliance with the MPRDAs socio- economic objectives;
    
    remove the technical deficiencies of the MPRDA;
    
    align the MPRDA with the Promotion of Administrative Justice Act, 2000; and
    
    coordinate the environmental requirements between the MPRDA and the National
Environmental Management Act.
 PNG
     82




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##### Table of Contents



Environmental Matters
 South Africa
   
    
    ComplianceWe will strive to comply with all applicable municipal, provincial and national laws and
regulations, as well as the other requirements to which the company subscribes that are
relevant to the environmental aspects of our activities.
    
    Continual ImprovementWe will evaluate and continually improve the effectiveness of our Environmental Management
System (EMS) through periodic audits and management reviews, and we will review our
environmental policy on an annual basis.
    
    Pollution PreventionWe will actively design our operations and undertake our mining activities so as to prevent
pollution. We will strive towards the continual reduction of adverse environmental effects and
support the principle of sustainable development.
    
    AwarenessWe will communicate our environmental policies to our employees, contractors and suppliers,
and will provide appropriate training to all employees to ensure their continuing awareness of
our environmental responsibilities.
  Emissions to air
 
    
    to reduce electricity usage by 15% in line with DME 2005 Energy Accord;
    
    to reduce fuel usage (diesel and petrol) by 15%;
    
    to reduce all dust emissions (from tailings dams) by 15%;
    
    to reduce methane emissions by 30%; and
    
    to reduce domestic coal usage by 50%.
 83




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##### Table of Contents



Water
 
    
    to reduce water usage by 10%; and
    
    to reduce metals/salt discharge by 70% to surface water, and by 20% to
groundwater.
 Recycling
 
    
    all steel, plastic and timber waste to be handled through designated areas,
to improve levels of recycling, and 50% of all oil and grease to be recycled.
 Land use
 
    
    a 10% reduction in the companys land use footprint will be effected
through rehabilitation.
 Environmental performance
 ISO14001 implementation
  
    
    Doornkop shaft  90% and plant  started. Stage 2 certification audit
scheduled for October 2009;
    
    Target  12%. Certification audit planned for March 2011;
    
    Elandsrand  20%.  Certification
audit planned for March 2011;
    
    Phakisa  20%.  Certification
audit planned for November 2010;
    
    Evander  10%.  Certification
audit planned for March 2011; and
    
    Kalgold  12%.  Certification
audit planned for December 2010.
 EMPR
   Significant environmental incidents
  
    
    water seepage from slimes dams (one incident);
    
    unexpected water discharged, particularly as a result of electricity
interruptions and equipment failure (two incidents); and
 84




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##### Table of Contents




    
    the failure of a clay-lined return water dam that resulted in the flooding of an
agricultural area (one incident). Incidents involving water are reported using a
specific water related incident reporting system, as required in terms of Regulation
704 of the National Water Act.
 Financial provision
    Australia
 DMP DEC
      85




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##### Table of Contents



PNG
 DEC
   SBMS
 86




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##### Table of Contents



Health and Safety Matters
 South Africa
 The Mine Health and Safety Act
  
    
    to protect the health and safety of employees and other persons at mines;
    
    to promote a culture of health and safety;
    
    to require employers and employees to identify hazards and eliminate, control and
minimize the risks relating to health and safety at mines;
    
    to give effect to the public international law obligations of South Africa that concern
health and safety at mines;
    
    to provide for employee participation in matters of health and safety through health and
safety representatives and health and safety committees at mines;
    
    to provide for the effective monitoring of health and safety conditions at mines;
    
    to provide for the enforcement of health and safety measures at mines; and
    
    to foster and promote co-operation and consultation on health and safety between the DMR,
employers, employees and their representatives.
  
    
    Training records to be kept
    
    Employer investigations
    
    Permanent committees of the MHSC
    
    Health and Safety Management system
    
    Administrative fines increased from R200,000 to R1 million
    
    Offences  applicable to the Employer
   87




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##### Table of Contents



Criminal mining
  HIV & AIDS Policy
 Item 3. Key Information  Risk
Factors  Risks Relating to Our Business and Our Industry  HIV & AIDS poses risks to Harmony in
terms of productivity and costs Item 3. Key Information  Risk Factors  Risks Relating to
Our Business and Our Industry  The cost of occupational healthcare services may increase in the
future
 NUM UASA
 Management of HIV & AIDS & Tuberculosis (TB)
  
    
    At a clinical level, the symptoms of the illness are managed by the Groups health care
services.
    
    Company-wide and mine-specific initiatives are conducted. Shaft-based HIV & AIDS
committees form an integral part of the Health and Safety Committees, which meet on a monthly basis.
    
    Group policy and practice is overseen by a specialist health care professional.
   
    
    Concerted efforts will be made to enhance and sustain the groups Voluntary Counselling
and Testing (VCT) programs, and to implement a pre-employment testing program.
    
    Enhanced education and counselling will be provided to employees who are HIV-negative.
    
    Anti-retroviral therapy (ART) will be introduced at an earlier stage, which is expected
to have a significant impact on reducing TB incidence rates.
 88




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##### Table of Contents




    
    In addition, efforts will be made to intensify case findings, introduce isoniazid (INH)
preventative treatment and improve infection control with further infection control measures
such as the use of masks, ultra-violet lights, etc.
 HIV & AIDS performance
   
    
    Prevention
    
    VCT
    
    Treatment, care and support
    
    Community-based interventions
  Australia
  PNG
  Item 3. Risk Factors  Risks Relating
to Our Business and Our Industry  HIV/AIDS poses risks to Harmony in terms of productivity and
costs Item 3.Key Information  Risk Factors  Risks Relating to Our Business and Our
Industry  The cost of occupational healthcare services may increase in the future
 89




---



##### Table of Contents



Item 4A. UNRESOLVED STAFF COMMENTS
  
 Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
 You should read the following discussion and analysis together with the consolidated financial
statements, including the related notes, appearing elsewhere in this annual report.
 Overview
    
    
    Tshepong, Phakisa, Bambanani, Doornkop, Elandsrand, Target, Evander, Masimong, Virginia,
Cooke operations (sold in November 2008 and classified as discontinued operations) and PNG;
and
    
    all other shafts and surface operations, including those that treat historic sand dumps,
rock dumps and tailings dams, are grouped together under Other  Underground or Other 
Surface.
 Critical Accounting Policies and Estimates
  Item 18. Financial Statements
 Gold mineral reserves
   90




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##### Table of Contents



Item 3. Key Information  Risk Factors 
Harmonys gold reserve figures are estimated based on a number of assumptions, including
assumptions as to mining and recovery factors, future cash costs of production and the price of
gold and may yield less gold under actual production conditions than currently estimated.
 Impairment of Property, Plant and Equipment
     Carrying Value of Goodwill
  91




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##### Table of Contents



Provision for environmental rehabilitation
  Deferred Tax Asset
  Revenue
 Item 3. Key Information  Risk Factors  The profitability of Harmonys operations,
and the cash flows generated by those operations, are affected by changes in the market price for
gold, which in the past has fluctuated widely.
    92




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##### Table of Contents



Harmonys Realized Gold Price
 Item 3. Key Information Risk Factors  The profitability of Harmonys operations, and the cash flows generated by those
operations, are affected by changes in the market price for gold, which in the past has fluctuated
widely.
  Fiscal Year Ended June 30,2009
    
    
    2008
    
    
    2007($/oz)Average
    
    
    874
    
    
    
    821
    
    
    
    638High
    
    
    989
    
    
    
    1,011
    
    
    
    692Low
    
    
    713
    
    
    
    649
    
    
    
    561Harmonys average sales price  continuing operations(1)
    
    
    867
    
    
    
    813
    
    
    
    638
 
 (1)
    
    Our average sales price differs from the average gold price due to the timing of our
sales of gold within each year. Costs
   Item 5. Operating and Financial Review and Prospects
 Exchange Rates. Item 3. Key Information  Risk Factors  Because most of Harmonys production costs are in Rand
and other non-U.S. currencies, while gold is generally sold in U.S. dollars, Harmonys financial
condition could be materially harmed by an appreciation in the value of the Rand and other non-U.S.
currencies.
  Reconciliation of Non-GAAP Measures
    93




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##### Table of Contents



Continuing operations
  Fiscal year ended June 30,2009
    
    2008
    
    2007(in $ millions, except per ounce amounts)Total cost of sales from continuing operations  under IFRS
    
    
    1,104
    
    
    
    1,162
    
    
    
    1,084Depreciation and amortization expense
    
    
    (167
    )
    
    
    (117
    )
    
    
    (134
    )(Provision)/reversal of provision for rehabilitation costs
    
    
    (3
    )
    
    
    (2
    )
    
    
    6Care and maintenance costs of restructured shafts
    
    
    (6
    )
    
    
    (10
    )
    
    
    (8
    )Employment termination and restructuring costs
    
    
    (4
    )
    
    
    (32
    )
    
    
    Share-based payments
    
    
    (13
    )
    
    
    (6
    )
    
    
    (6
    )Impairment of assets
    
    
    (61
    )
    
    
    (35
    )
    
    
    (37
    )Provision for post retirement benefits
    
    
    
    
    
    
    (1
    )
    
    
    2Gold inventory movement
    
    
    2
    
    
    
    (2
    )
    
    
    10Total cash costs from continuing operations  using Gold Institute guidance
    
    
    852
    
    
    
    957
    
    
    
    917Per ounce calculation:Ounces produced
    
    
    1,460,831
    
    
    
    1,599,854
    
    
    
    1,881,908Total cash cost per ounce from continuing operations  using Gold Institute guidance
    
    
    583
    
    
    
    598
    
    
    
    487
 94




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##### Table of Contents



Discontinued operations
  Fiscal year ended June 30,2009
    
    2008
    
    2007(in $ millions, except per ounce amounts)Total cost of sales from discontinued operations  under IFRS
    
    
    50
    
    
    
    196
    
    
    
    263Depreciation and amortization expense
    
    
    
    
    
    
    (7
    )
    
    
    (29
    )Provision for rehabilitation costs
    
    
    
    
    
    
    (1
    )
    
    
    (6
    )Care and maintenance costs of restructured shafts
    
    
    
    
    
    
    
    
    
    
    (1
    )Employment termination and restructuring costs
    
    
    
    
    
    
    (1
    )
    
    
    Share-based payments
    
    
    
    
    
    
    
    
    
    
    (1
    )Gold inventory movement
    
    
    2
    
    
    
    6
    
    
    
    Total cash costs from discontinued operations  using Gold Institute guidance
    
    
    52
    
    
    
    193
    
    
    
    226Per ounce calculation:Ounces produced
    
    
    80,377
    
    
    
    310,603
    
    
    
    451,492Total cash cost per ounce from discontinued operations  using Gold
Institute guidance
    
    
    644
    
    
    
    621
    
    
    
    499
 Total Harmony  Continuing and discontinued operations
  Fiscal year ended June 30,2009
    
    2008
    
    2007(in $ millions, except per ounce amounts)Total production costs  under IFRS
    
    
    1,154
    
    
    
    1,358
    
    
    
    1,347Depreciation and amortization expense
    
    
    (167
    )
    
    
    (124
    )
    
    
    (163
    )(Provision)/reversal of provision for rehabilitation costs
    
    
    (3
    )
    
    
    (3
    )
    
    
    Care and maintenance costs of restructured shafts
    
    
    (6
    )
    
    
    (10
    )
    
    
    (9
    )Employment termination and restructuring costs
    
    
    (4
    )
    
    
    (33
    )
    
    
    Share-based payments
    
    
    (13
    )
    
    
    (6
    )
    
    
    (7
    )(Impairment)/reversal of impairment of assets
    
    
    (61
    )
    
    
    (35
    )
    
    
    (37
    )Provision for post retirement benefits
    
    
    
    
    
    
    (1
    )
    
    
    2Gold inventory movement
    
    
    4
    
    
    
    4
    
    
    
    10Total cash costs  using Gold Institute guidance
    
    
    904
    
    
    
    1,150
    
    
    
    1,143Per ounce calculation:Ounces produced
    
    
    1,541,208
    
    
    
    1,910,457
    
    
    
    2,333,400Total cash cost per ounce  using Gold Institute guidance
    
    
    586
    
    
    
    602
    
    
    
    489
  Item 4 Information on the Company  Business  Strategy
 95




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##### Table of Contents



Exchange Rates
   Item 3 Key Information  Risk
Factors  Because most of Harmonys production costs are in Rand and other non-U.S. currencies,
while gold is generally sold in U.S. dollars, Harmonys financial condition could be materially
harmed by an appreciation in the value of the Rand and other non-U.S. currencies
 Inflation
  South African Socio-Economic Environment
 Item 3. Key Information  Risk Factors 
Socio-economic instability in South Africa or regionally may have an adverse effect on Harmonys
operations and profits.
 Item 10. Additional Information  Exchange Controls.
   96




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Royalties
  Costs
    Conops
    Productivity
  Electricity Supply
 ECS
 97




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##### Table of Contents



NMD
   98




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##### Table of Contents



Results of Operations
 Years Ended June 30, 2009 and 2008
 Continuing Operations
 Revenues
            99




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##### Table of Contents



Cost of sales
  Production costs
  PercentageYear Ended June 30,
    
    Year Ended June 30,
    
    (Increase)/decrease2009
    
    2008
    
    in Cash(oz)
    
    ($/oz)
    
    (oz)
    
    ($/oz)
    
    Costs per ounceSOUTH AFRICATshepong
    
    
    230,778
    
    
    
    483
    
    
    
    265,914
    
    
    
    455
    
    
    
    (6.2
    )Phakisa
    
    
    22,216
    
    
    
    555
    
    
    
    4,024
    
    
    
    497
    
    
    
    (11.7
    )Bambanani
    
    
    121,530
    
    
    
    611
    
    
    
    154,879
    
    
    
    639
    
    
    
    4.4Doornkop
    
    
    42,150
    
    
    
    804
    
    
    
    44,038
    
    
    
    749
    
    
    
    (7.3
    )Elandsrand
    
    
    174,321
    
    
    
    660
    
    
    
    164,215
    
    
    
    652
    
    
    
    (1.2
    )Target
    
    
    87,225
    
    
    
    645
    
    
    
    79,602
    
    
    
    716
    
    
    
    9.9Masimong
    
    
    154,034
    
    
    
    476
    
    
    
    116,424
    
    
    
    756
    
    
    
    37.0Evander
    
    
    190,075
    
    
    
    572
    
    
    
    231,799
    
    
    
    526
    
    
    
    (8.7
    )Virginia
    
    
    258,170
    
    
    
    638
    
    
    
    247,820
    
    
    
    726
    
    
    
    12.1Other  underground
    
    
    65,684
    
    
    
    636
    
    
    
    67,862
    
    
    
    752
    
    
    
    15.4Other  surface
    
    
    114,648
    
    
    
    521
    
    
    
    147,980
    
    
    
    378
    
    
    
    (37.8
    )INTERNATIONALPNG
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    75,297
    
    
    
    545
    
    
    
    100Total continuing operations
    
    
    1,460,831
    
    
    
    
    
    
    
    1,599,854Weighted average
    
    
    
    
    
    
    583
    
    
    
    
    
    
    
    598
    
    
    
    2.5
       100




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##### Table of Contents



Depreciation and amortization
  Employment termination and restructuring costs
  Impairment of assets
 Non-current
Assets Held For Sale and Discontinued
 Share based compensation
  Corporate, administration and other expenditure
  Profit on sale of property, plant and equipment
  101




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Other expenses  net
  Profit/(loss) from associates
  Impairment of investment in associate
  Fair value movement of financial instruments
  Loss on sale of listed investments
  Investment income
  Finance costs
  Income and Mining Taxes
 South Africa.
 102




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##### Table of Contents



STC
 Income and Mining Tax
    
    2009
    
    2008Effective tax rate expense
    
    
    (10
    %)
    
    
    680
    %
  Australia
    PNG
   103




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Discontinued Operations
 Revenues
  Costs
  Profit/(loss) on sale of property, plant and equipment
  Income and Mining Taxes
 South Africa Income and Mining Taxes Continuing Operations
  Australia
 Continuing and discontinued operations
 Net profit/(loss)
  Years Ended June 30, 2008 and 2007
 Continuing Operations
 Revenues
   104




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Cost of sales
  Production costs
  PercentageYear Ended June 30,
    
    Year Ended June 30,
    
    (Increase)/decrease2008
    
    2007
    
    in Cash(oz)
    
    ($/oz)
    
    (oz)
    
    ($/oz)
    
    Costs per ounceSOUTH AFRICATshepong
    
    
    265,914
    
    
    
    455
    
    
    
    319,192
    
    
    
    360
    
    
    
    (26
    )Phakisa
    
    
    4,024
    
    
    
    497
    
    
    
    
    
    
    
    
    
    
    
    (100
    )Bambanani
    
    
    154,879
    
    
    
    639
    
    
    
    197,084
    
    
    
    599
    
    
    
    (7
    )Doornkop
    
    
    44,038
    
    
    
    749
    
    
    
    56,810
    
    
    
    438
    
    
    
    (71
    )Elandsrand
    
    
    164,215
    
    
    
    652
    
    
    
    195,412
    
    
    
    535
    
    
    
    (22
    )Target
    
    
    79,602
    
    
    
    716
    
    
    
    142,653
    
    
    
    403
    
    
    
    (78
    )Masimong
    
    
    116,424
    
    
    
    756
    
    
    
    146,575
    
    
    
    543
    
    
    
    (39
    )Evander
    
    
    231,799
    
    
    
    526
    
    
    
    235,857
    
    
    
    495
    
    
    
    (6
    )Virginia
    
    
    247,820
    
    
    
    726
    
    
    
    264,890
    
    
    
    528
    
    
    
    (38
    )Other  underground
    
    
    67,862
    
    
    
    752
    
    
    
    104,553
    
    
    
    504
    
    
    
    (49
    )Other  surface
    
    
    147,980
    
    
    
    378
    
    
    
    82,467
    
    
    
    443
    
    
    
    15INTERNATIONALPNG
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    75,297
    
    
    
    545
    
    
    
    136,415
    
    
    
    517
    
    
    
    (5
    )Total continuing operations
    
    
    1,599,854
    
    
    
    
    
    
    
    1,881,908Weighted average
    
    
    
    
    
    
    598
    
    
    
    
    
    
    
    487
    
    
    
    (23
    )
 105




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Depreciation and amortization
  Employment termination and restructuring costs
  Impairment of assets
  106




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##### Table of Contents



Profit on sale of property, plant and equipment
  Other expenses  net
   Loss from associates
  Profit on sale of investment in associate
  Impairment of investment in associate
  Fair value movement of financial instruments
  Loss on sale of listed investments
  Investment income
  107




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Finance costs
  Income and Mining Taxes
 South Africa.
  Income and Mining Tax
    
    2008
    
    2007Effective tax rate expense
    
    
    680
    %
    
    
    (1
    %)
  Australia
    108




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##### Table of Contents



PNG
     Discontinued Operations
 Revenues
  Costs
  Loss on sale of property, plant and equipment
  Income and Mining Taxes
 South Africa. Income and Mining Taxes Continuing Operations
  Australia. Income and Mining Taxes Continuing Operations
 109




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Continuing and discontinued operations
 Net (loss)/profit
  Recent Accounting Pronouncements
   IFRIC
 dividends in specie
   110




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111




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112




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##### Table of Contents



Liquidity and Capital Resources
  Cash Resources
 Fiscal year ended June 30,2009
    
    2008
    
    2007($ in millions)Continuing operationsOperating cash flows
    
    
    234
    
    
    
    169
    
    
    
    176Investing cash flows
    
    
    (105
    )
    
    
    (310
    )
    
    
    (318
    )Financing cash flows
    
    
    (234
    )
    
    
    78
    
    
    
    132Foreign exchange differences
    
    
    16
    
    
    
    4
    
    
    
    6Total cash flows from continuing operations
    
    
    (88
    )
    
    
    (59
    )
    
    
    (4
    )Discontinued operationsOperating cash flows
    
    
    20
    
    
    
    67
    
    
    
    (17
    )Investing cash flows
    
    
    199
    
    
    
    (19
    )
    
    
    Financing cash flows
    
    
    
    
    
    
    
    
    
    
    Foreign exchange differences
    
    
    69
    
    
    
    (6
    )
    
    
    Total cash flows from discontinued operations
    
    
    288
    
    
    
    42
    
    
    
    (17
    )
 Operations
    Investing
   113




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##### Table of Contents



Financing
   Outstanding Credit Facilities and Other Borrowings
 AVRD Nedbank JIBAR
  Recently Retired Credit Facilities and Other Borrowings
    114




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Safex Overnight Rate
 AHJIC
      115




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##### Table of Contents



Contractual Obligations and Commercial Commitments
  Contractual Obligations on the Balance Sheet
  Payments Due by PeriodLess Than
    
    12-36
    
    36-60
    
    After 6012 Months
    
    Months
    
    Months
    
    MonthsJuly 1, 2009
    
    July 1, 2010
    
    July 1, 2012
    
    Subsequentto June 30,
    
    to June 30,
    
    To June 30,
    
    June 30,Total
    
    2010
    
    2012
    
    2014
    
    2014($million)
    
    ($million)
    
    ($million)
    
    ($million)
    
    ($million)Africa Vanguard Resources(1)
    
    
    4
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    Nedbank  AVR(1)
    
    
    29
    
    
    
    29
    
    
    
    
    
    
    
    
    
    
    
    Westpac Bank(1)
    
    
    14
    
    
    
    4
    
    
    
    5
    
    
    
    5
    
    
    
    Post retirement health care(2)
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Environmental obligations(3)
    
    
    198
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    198Total contractual obligations
    
    
    265
    
    
    
    37
    
    
    
    5
    
    
    
    5
    
    
    
    218
 
 (1)
    
    See Item 5. Operating and Financial Review and Prospects  Liquidity and Capital
Resources  Credit Facilities and Other Borrowings  Outstanding Credit Facilities and Other
Borrowings.(2)
    
    This liability relates to post-retirement medical benefits of former employees who
retired prior to December 31, 1996 and is based on actuarial valuations conducted during fiscal
2009.(3)
    
    We make provision for environmental rehabilitation costs and related liabilities
based on managements interpretations of current environmental and regulatory requirements. See
Item 5. Operating and Financial Review and Prospects  Critical Accounting Policies. Contractual Obligations off the Balance Sheet
  Capital Expenditure
  $millionAuthorized and contracted for(1)
    
    
    62Authorized but not yet contracted for
    
    
    95Total
    
    
    157
 
 (1)
    
    Including our share of the PNG joint ventures capital expenditure of U.S.$30
million. 116




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##### Table of Contents



Commercial Commitments
  Amount of Commitments Expiring by PeriodLessThan 12
    
    12-36
    
    36-60Months
    
    Months
    
    Months
    
    After 60July 1,
    
    July 1,
    
    July 1,
    
    Months2009 to
    
    2010 to
    
    2012 to
    
    SubsequentJune 30,
    
    June 30,
    
    June 30,
    
    to June 30,Total
    
    2010
    
    2013
    
    2014
    
    2014($million)
    
    ($million)
    
    ($million)
    
    ($million)
    
    ($million)Guarantees(1)
    
    
    42
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42Capital commitments(2)
    
    
    32
    
    
    
    32
    
    
    
    
    
    
    
    
    
    
    
    Total commitments expiring by period
    
    
    74
    
    
    
    32
    
    
    
    
    
    
    
    
    
    
    
    42
 
 (1)
    
    Amount of Commitments Expiring by Period.(2)
    
    Capital commitments consist only of amounts committed to external suppliers,
although a total of U.S.$127 million has been approved by the Board for capital expenditures. Trend Information
 Item 4 Information on the
Company  Business  Strategy  Results of Operations
 Working Capital and Anticipated Financing Needs
  Capital Expenditures Item 4. Information on the Company  Business  Harmonys Mining Operations. Item 3. Key Information  Risk Factors  Harmonys strategy depends
on its ability to make additional acquisitions. Item 10. Additional information 
Memorandum and Articles of Association  Directors  Borrowing Powers. Item 10. Additional Information
 Exchange Controls.
 Other Financial Information
 Export Sales
  117




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##### Table of Contents



Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
 Directors and Senior Management
  Board of directors
 Name
    
    Date of appointmentPatrice Motsepe(1)
    
    September 23, 2003Frank Abbott
    
    October 1, 1994Graham Briggs
    
    August 6, 2007Joaquim Chissano (1) (2)
    
    April 20, 2005Fikile De Buck(1) (2)
    
    March 30, 2006Ken Dicks (1) (2)
    
    February 13, 2008Cheick Diarra (1) (2)
    
    March 5, 2008Dr Simo Lushaba (1) (2)
    
    October 18, 2002Cathie Markus (1) (2)
    
    May 1, 2007Modise Motloba (1) (2)
    
    July 30, 2004Cedric Savage(1) (2)
    
    September 23, 2003André Wilkens (1)
    
    August 6, 2007
 
 (1)
    
    Non-executive directors(2)
    
    Independent Non-Executive Chairman
 Patrice Motsepe (47) BA (Legal), LLB. Avmin ARM BUSA
 Executive Directors
 Graham Briggs (56), BSc (Hons) (Geology), PrSciNat, Chief Executive Officer.
 Frank Abbott (54), BComm, CA (SA), MBL, Interim Financial Director.
 118




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##### Table of Contents



Non-Executive Directors
 Joaquim Chissano (69), Independent Non-Executive Director.
 Fikile De Buck (48), BA (Economics), FCCA (UK), Independent Non-Executive Director.
 Dr Cheick Diarra (57), PhD (Mechanical and Aerospace Engineering), Independent Non-Executive
Director.
 Ken Dicks (70), Mine Managers Certificates (Metalliferous and Fiery Coal Mines), Management
Development Diploma and Management Diploma, Independent Non-Executive Director.
 Dr Simo Lushaba (43), BSc (Hon), MBA and DBA, Independent Non-Executive Director.
 Cathie Markus (52), BA LLB, Independent Non-Executive Director.
 Modise Motloba (43), BSc, Diploma in Strategic Management, Independent Non-executive Director.
 Cedric Savage (70), BSc (Eng), MBA, ISMP (Harvard), Independent Non-executive Director.
 119




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##### Table of Contents



André Wilkens (60), Mine Managers Certificate of Competency, MDPA, RMIIA, Non-Executive
Director.
 Management
  Bob Atkinson (57), NHD (Metalliferous Mining), Executive: New Business and Projects.
 Jaco Boshoff (40), BSc (Hons), MSc (Geology), MBA, PrSciNat, Executive: Reserves and
Resources.
 Matthews Pheello Dikane (43), LLB, LLM (Labour Law), Postgraduate Diploma In Management
Practice, Executive: Legal and Compliance
 Leon le Roux (53), NHD (Mechanical and Electrical Engineering), Executive: Risk Management and
Engineering.
 Mashego Mashego (45), BA Ed, BA (Hons), GEDP, JMDP, Executive: Human Resources.
 Jackie Mathebula (39), B Admin Honours, MBA, Master of Management (MM, HR), Executive:
Corporate Affairs.
 Hannes Meyer (39), CA (SA), BCom (Hons), Financial Director Designate. TEAL
 120




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##### Table of Contents



Melanie Naidoo-Vermaak (35), MSc (Sustainable Development), Executive: Environment.
 Alwyn Pretorius (38), BSc Mining Engineering, BSc Industrial Engineering, Chief Operating
Officer: North Region.
 Tom Smith (53), NHD (Mine Surveying and Metalliferous Mining), Chief Operating Officer: South
Region.
 Marian van der Walt (36), BCom (Law), LLB, Higher Diploma in Tax, Diploma in Corporate
Governance, Diploma in Insolvency Law, Certificate in Business Leadership; Executive: Corporate and
Investor Relations.
 Johannes van Heerden (37), BCompt (Hons), CA(SA), Chief Executive Officer: South East Asia
 Abre van Vuuren (49), BComm, MDP, DPLR, Executive: Services. Grootvlei
 121




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##### Table of Contents



Board Practices
     Executive Management Committee
   Graham Briggs
    
    Chief Executive OfficerFrank Abbott
    
    Interim Chief Financial OfficerBob Atkinson
    
    New Business and ProjectsJaco Boshoff
    
    Ore ReservesMashego Mashego
    
    Human ResourcesJackie Mathebula
    
    Corporate AffairsAlwyn Petorius
    
    North Operations South AfricaTom Smith
    
    South Operations South AfricaMarian van der Walt
    
    Corporate and Investor RelationsJohannes van Heerden
    
    Chief Executive Officer: South East AsiaAbre van Vuuren
    
    ServicesLeon le Roux
    
    Risk Management and EngineeringMelanie Naidoo- Vermaak
    
    Environmental ManagementHannes Meyer
    
    Financial Director DesignateMatthews Dikane
    
    Legal and Compliance
 122




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##### Table of Contents



Audit Committee
 Members
   Cedric Savage
    
    Chairman; appointed to the committee on January 26, 2004 and chairman as from August 5, 2005Fikile De Buck
    
    Appointed to the committee on March 30, 2006Dr. Simo Lushaba
    
    Appointed to the committee on January 24, 2003Modise Motloba
    
    Appointed to the committee on July 30, 2004
  Frequency of meetings
  Purpose and function
   Independence/compliance
   123




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##### Table of Contents



Empowerment Committee
 Members
   Joaquim Chissano
    
    Chairman; Appointed as chairman with effect from May 3, 2006Modise Motloba
    
    Appointed to the committee on May 3, 2006Cathie Markus
    
    Appointed to the committee on October 29, 2007
  Frequency of meetings
  Purpose and function
   Independence/compliance
  Investment Committee
 Members
   Dr. Simo Lushaba
    
    Chairman; Appointed to the committee on January 26, 2004
and as Chairman with effect from August 5, 2005)Fikile De Buck
    
    Appointed to the committee on May 3, 2006Cedric Savage
    
    Appointed to the committee on January 26, 2004André Wilkens
    
    Appointed to the committee on August 7, 2007Cathie Markus
    
    Appointed to the committee on October 29, 2007Ken Dicks
    
    Appointed to the committee on February 13, 2008
  124




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##### Table of Contents



Frequency of meetings
  Purpose and function
  Independence/compliance
  Nomination Committee
 Members
   Patrice Motsepe
    
    Chairman; Appointed to the committee on October 24, 2003Joaquim Chissano
    
    Appointed to the committee on May 3, 2006Frank Abbott
    
    Appointed to the committee August 5, 2005
 Frequency of meetings
  Purpose and function
  Independence/compliance
  125




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##### Table of Contents



Remuneration Committee
 Members
   Cedric Savage
    
    Chairman; Appointed to the committee on January 24, 2004, and as chairman from May 3, 2006Simo Lushaba
    
    Appointed to the committee on August 5, 2005Patrice Motsepe
    
    Appointed to the committee on January 26, 2004André Wilkens
    
    Appointed to the committee on August 7, 2007
  Frequency of meetings
  Purpose and function
   Independence/compliance
  Sustainable Development Committee
 Members
   Modise Motloba
    
    Chairman; Appointed as chairman on August 5, 2005Joaquim Chissano
    
    Appointed to the committee on May 3, 2006Fikile De Buck
    
    Appointed to the committee on May 3, 2006
  126




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##### Table of Contents



Frequency of meetings
  Purpose and function
   Independence/compliance
  Technical Committee
 Members
   Andre Wilkens
    
    Chairman; Appointed as chairman on January 22, 2008Ken Dicks
    
    Appointed to the committee on January 22, 2008Fikile De Buck
    
    Appointed to the committee on July, 14, 2008Modise Motloba
    
    Appointed to the committee on January 22, 2008Cedric Savage
    
    Appointed to the committee on January 22, 2008
  Frequency of meetings
  Purpose and function
   127




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Independence/compliance
  Compensation of Directors and Senior Management
  RetirementContributionsDirectors
    
    Salaries and
    
    during
    
    BonusesFee
    
    Benefits
    
    the year
    
    Paid
    
    Total($000)
    
    ($000)
    
    ($000)
    
    ($000)
    
    ($000)Name
    
    2009
    
    2009
    
    2009
    
    2009
    
    2009Non-executivePatrice Motsepe
    
    
    83
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    83Joaquim Chissano
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41Fikile De Buck
    
    
    43
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43Cheick Diarra
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16Ken Dicks
    
    
    31
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31Dr Simo Lushaba
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    38Cathie Markus
    
    
    26
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26Modise Motloba
    
    
    51
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51Cedric Savage
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    55André Wilkens
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41ExecutiveFrank Abbott
    
    
    
    
    
    
    270
    
    
    
    29
    
    
    
    58
    
    
    
    357Graham Briggs
    
    
    
    
    
    
    470
    
    
    
    
    
    
    
    271
    
    
    
    741TOTAL
    
    
    425
    
    
    
    740
    
    
    
    29
    
    
    
    329
    
    
    
    1,523
 128




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##### Table of Contents



Directors Terms of Employment
       Annual FeeBoard
    
    R 140,000 annuallyAudit Committee
    
    R 70,000 annuallyEmpowerment Committee
    
    R 45,000 annuallyInvestment Committee
    
    R 45,000 annuallyNomination Committee
    
    R 45,000 annuallyRemuneration Committee
    
    R 45,000 annuallySustainable Development Committee
    
    R 60,000 annuallyTechnical Committee
    
    R 60,000 annuallyChairman of Board
    
    R 650,000  annuallyChairman of Board committees
    
    Double the amount that the individual Board committee
member received annually
  129




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##### Table of Contents



Share Options
  AverageNumber of
    
    StrikeDirectors and
    
    Share
    
    Price
    
    ExpirationSenior Management
    
    Options
    
    (R)
    
    DatesFrank Abbott
    
    
    
    
    
    Graham Briggs
    
    91,938
    
    48.55
    
    2012-2015Senior Management (as a group)
    
    386,182
    
    50.17
    
    2012-2015Total
    
    478,120
    
    49.86
    
    2012-2015
  Shares issued in terms of the Harmony 2006 Share Plan
  PSDirectors and
    Share Appreciation
    
    
    Performance Shares
    
    Price
    
    ExpirationSenior Management
    
    Rights (SAR)
    
    SAR Price (R)
    
    (PS)
    
    (R)
    
    DatesFrank Abbott
    
    
    
    
    
    
    
    
    
    Graham Briggs
    
    237,488
    
    78.14
    
    214,216
    
    n/a
    
    2014/2015Senior Management (as a group)
    
    656,809
    
    73.36
    
    577,937
    
    n/a
    
    2014/2015Total
    
    894,297
    
    74.63
    
    792,153
    
    n/a
    
    2014/2015
 Share Ownership
  OrdinaryOrdinary
    
    
    
    
    
    SharesShares Number
    
    
    
    
    
    Number as atas at
    
    
    
    
    
    OctoberHolder
    
    June 30, 2009
    
    Percentage
    
    19, 2009
    
    PercentageNon-executive chairmanPatrice
Motsepe(1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Directors Non-executiveJoaquim Chissano
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Fikile De Buck
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cheick Diarra
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Ken Dicks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Dr Simo Lushaba
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cathie Markus
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Modise Motloba
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cedric Savage
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    André Wilkens
    
    
    101,303
    
    
    

(2)
    
    
    
    101,303
    
    
    

(2)Executive DirectorsFrank Abbott
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Graham Briggs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Directors (12 persons)
    
    
    101,303
    
    
    
    
    
    
    
    101,303
    
    
    
    
 
 (1)
    
    Patrice Motsepe, our Chairman, has an indirect holding in ARM Limited.(2)
    
    Less than 1%. 130




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##### Table of Contents



Employees
 General
  Harmony Employees at
    
    Outside Contractors atJune 30,
    
    June 30,2009
    
    2008
    
    2007
    
    2009
    
    2008
    
    2007South Africa
    
    
    37,316
    
    
    
    40,751
    
    
    
    47,600
    
    
    
    4,962
    
    
    
    6,309
    
    
    
    9,075International
    
    
    979
    
    
    
    862
    
    
    
    516
    
    
    
    2,482
    
    
    
    846
    
    
    
    350Grand total
    
    
    38,295
    
    
    
    41,543
    
    
    
    48,325
    
    
    
    7,390
    
    
    
    7,155
    
    
    
    9,851
  South Africa
  
    
    minimum conditions of employment (note there is no prescribed basic minimum wage, but
laws cover most aspects of employment, from hours of work to prohibitions on child labor);
    
    trade union access and membership;
    
    training and development;
    
    mandatory compensation in the event of termination for operational reasons;
    
    affirmative action policies and programs;
    
    compensation for occupational illness and injury;
    
    mechanisms for collective bargaining;
    
    procedures for the resolution of disputes; and
    
    regulation of strikes and dismissals.
   131




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##### Table of Contents



 NUM
    
    
    28,124 Solidarity
    
    
    812 UASA
    
    
    3,668 Collective Bargaining Fund
    
    
    1,134 Un-unionized
    
    
    3,558
       
    
    establish whether Conops has been successfully implemented at the mines where it was
introduced and to what extent the original objective of improved profitability without
compromising safety was met;
    
    understand the gap that exists between the current performance of the operations and the
potential performance after implementation of Conops at these operations; and
 132




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##### Table of Contents




    
    understand the reasons for the underperformance versus the Conops potential and propose
actions to the operations to close the gap.
  Work Stoppages
     Women in mining
    Australia
  PNG
   133




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##### Table of Contents



Long Term Incentive Schemes
  Existing share option schemes
    Broad-Based Employee Scheme
  The Harmony 2006 Share Plan
     inter alia
 134




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##### Table of Contents



Annual incentive scheme
   135




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##### Table of Contents



Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
 Major Shareholders
   Related Party Transactions.
  Number ofHolder
    
    Shares
    
    Percentage1. Bank of New York (1)
    
    
    123,013,456
    
    
    
    28.90%2. ARM
Limited (2)
    
    
    63,632,922
    
    
    
    14.99%3. Allan Gray
    
    
    56,383,055
    
    
    
    13.29%4. Blackrock Investment Management (UK) Ltd.
    
    
    41,496,772
    
    
    
    9.78%
 
 (1)
    
    Depository with respect to the ADRs held on the U.S. register.(2)
    
    Patrice Motsepe, our Chairman, has an indirect holding in ARM Limited.  Capital Raising
   Related Party Transactions
    136




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##### Table of Contents



BEE Trust
 INTERESTS OF EXPERTS AND COUNSEL
  137




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##### Table of Contents



Item 8. FINANCIAL INFORMATION
 CONSOLIDATED STATEMENTS
 Item 18. Financial Statements
 Legal Proceedings
  Class Action
  ArcelorMittal South Africa Limited ArcelorMittal
  Dividends and Dividend Policy
   Recent Developments
 PNG exploration acquisition
    138




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##### Table of Contents



Pamodzi Gold Free State (Proprietary) Limited
     Avoca
Resources Limited
  Big
Bell Operations (Proprietary) Limited
  139




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##### Table of Contents



Item 9. THE OFFER AND LISTING
 Markets
 Stock Exchange Listings and Ticker Codes
  JSE Limited
    
    HARNew York Stock Exchange
    
    HMYNASDAQ
    
    HMYLondon Stock Exchange
    
    HRMEuronext Brussels
    
    HMYEuronext Paris
    
    HGBerlin Stock Exchange
    
    HAM1
 Offering and Listing Details
  Harmony OrdinaryShares(Rand per OrdinaryShare)High
    
    LowFiscal year ended June 30, 2007First Quarter
    
    
    121.54
    
    
    
    86.10Second Quarter
    
    
    123.00
    
    
    
    101.00Third Quarter
    
    
    113.45
    
    
    
    90.85Fourth Quarter
    
    
    117.85
    
    
    
    94.30Full Year
    
    
    123.00
    
    
    
    86.10Fiscal year ended June 30, 2008First Quarter
    
    
    104.05
    
    
    
    60.00Second Quarter
    
    
    83.05
    
    
    
    63.00Third Quarter
    
    
    118.50
    
    
    
    69.00Fourth Quarter
    
    
    104.41
    
    
    
    82.98Full Year
    
    
    118.52
    
    
    
    60.00Fiscal year ended June 30, 2009First Quarter
    
    
    97.00
    
    
    
    54.99Second Quarter
    
    
    103.75
    
    
    
    62.50Third Quarter
    
    
    129.50
    
    
    
    92.50Fourth Quarter
    
    
    104.40
    
    
    
    75.50Full Year
    
    
    129.50
    
    
    
    54.99Month ofJuly 2009
    
    
    79.00
    
    
    
    69.05August 2009
    
    
    76.50
    
    
    
    70.80September 2009
    
    
    87.51
    
    
    
    71.60As of October 19, 2009
    
    
    87.00
    
    
    
    80.00
   140




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##### Table of Contents



NYSE
    
    NASDAQHarmony ADRs
    
    Harmony ADRs($ per ADR)
    
    ($ per ADR)High
    
    Low
    
    High
    
    LowFiscal year ended June 30, 2007First Quarter
    
    
    17.10
    
    
    
    11.91
    
    
    
    17.10
    
    
    
    12.93Second Quarter
    
    
    17.26
    
    
    
    13.44
    
    
    
    15.75
    
    
    
    13.44Third Quarter
    
    
    15.27
    
    
    
    13.90
    
    
    
    15.27
    
    
    
    13.90Fourth Quarter
    
    
    14.31
    
    
    
    14.27
    
    
    
    14.31
    
    
    
    14.27Full Year
    
    
    17.26
    
    
    
    11.91
    
    
    
    16.76
    
    
    
    12.67Fiscal year ended June 30, 2008First Quarter
    
    
    15.27
    
    
    
    8.42
    
    
    
    15.27
    
    
    
    8.42Second Quarter
    
    
    11.90
    
    
    
    10.31
    
    
    
    11.90
    
    
    
    10.31Third Quarter
    
    
    11.51
    
    
    
    10.75
    
    
    
    11.51
    
    
    
    10.75Fourth Quarter
    
    
    12.25
    
    
    
    11.51
    
    
    
    12.25
    
    
    
    11.51Full Year
    
    
    15.27
    
    
    
    8.42
    
    
    
    15.27
    
    
    
    8.42Fiscal year ended June 30, 2009First Quarter
    
    
    12.51
    
    
    
    6.39
    
    
    
    12.51
    
    
    
    6.39Second Quarter
    
    
    10.97
    
    
    
    5.58
    
    
    
    10.97
    
    
    
    5.58Third Quarter
    
    
    13.06
    
    
    
    8.95
    
    
    
    13.06
    
    
    
    9.12Fourth Quarter
    
    
    12.10
    
    
    
    8.17
    
    
    
    12.10
    
    
    
    8.17Full Year
    
    
    13.06
    
    
    
    5.58
    
    
    
    13.06
    
    
    
    5.58Month ofJuly 2009
    
    
    10.35
    
    
    
    8.50
    
    
    
    10.34
    
    
    
    8.50August 2009
    
    
    9.62
    
    
    
    8.93
    
    
    
    9.58
    
    
    
    8.91September 2009
    
    
    11.75
    
    
    
    9.03
    
    
    
    11.78
    
    
    
    9.05As of October 19, 2009
    
    
    11.98
    
    
    
    10.23
    
    
    
    11.94
    
    
    
    10.22
   The Securities Exchange In South Africa
    History
  SENS
 141




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STRATE
 STRATE Settlement
  PLAN OF DISTRIBUTION
  SELLING SHAREHOLDERS
  DILUTION
  EXPENSES OF THE ISSUE
  142




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Item 10. ADDITIONAL INFORMATION
 Share Capital
  Memorandum and Articles of Association
 This section summarizes certain material provisions of Harmonys Memorandum and Articles of
Association, the Companies Act and the JSE listings requirements, each as currently in effect.
These descriptions do not purport to be complete and are qualified in their entirety by reference
to all of the provisions of those sources. Directions on how to obtain a complete copy of Harmonys
Articles of Association are provided under  Documents on Display below.
 General
 Item 4 Information on the
Company Regulation
 Objects and Purposes
  
    
    to acquire by purchase, cession, grant, lease, exchange or otherwise any movable or
immovable property, mines, mineral property, claims, mineral rights, mining rights, mining
leases, mining titles, mynpachts, lands, farms, buildings, water rights, concessions, grants,
rights, powers, privileges, surface rights of every description, servitudes or other limited
rights or interests in land and mineral contracts of every description; and any interest
therein and rights over the same; and to enter into any contract, option or prospecting
contract in respect thereof, and generally to enter into any arrangement that may seem
conducive to our objects or any of them;
    
    to carry out all forms of exploration work and in particular to search for, prospect,
examine, explore and obtain information in regard to mines, mineral properties, claims,
mineral rights, mining rights, mining leases, mining titles, mynpachts, mining districts or
locations and ground and soil supposed to contain or containing precious stones, minerals or
metals of every description;
    
    to open, work, develop and maintain gold, silver, diamond, copper, coal, iron and other
mines, mineral and other rights, properties and works, and to carry on and conduct the
business of raising, crushing, washing, smelting, reducing and amalgamating ores, metals,
minerals and precious stones, and to render the same merchantable and fit for use and to
carry on all or any of the businesses of miners, mineralogists, metallurgists, amalgamators,
geophysicists, smelters, quarry owners, quarrymen and brickmakers;
    
    to buy, sell, refine and deal in bullion, specie, coin and precious and base metals, and
also precious stones and other products of mining; and
    
    to employ and pay mining experts, agents and other persons, partnerships, companies or
corporations, and to organize, equip and dispatch expeditions for prospecting, exploring,
reporting on, surveying, working and developing lands, farms, districts, territories and
properties in any part of the world, whether the same are our property or otherwise.
 Directors
 Disclosure of Interests
  143




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
    
    any arrangement for giving the director a security or indemnity in respect of money lent,
or an obligation undertaken, by such director for our benefit;
    
    any arrangement by which we give any security to a third party in respect of our debt or
obligation for which the director himself or herself has assumed responsibility, in whole or
in part, whether under a guarantee or indemnity or by the deposit of a security;
    
    any contract by the director to subscribe for or underwrite our shares or debentures;
    
    any contract or arrangement with a company other than us, in which the director holds or
controls, directly or indirectly, no more than 1% of shares representing either (i) any class
of the equity share capital of that company or (ii) the overall voting rights of that
company; or
    
    any retirement scheme or fund which relates to both directors and to employees (or a class
of employees) and does not accord to any director, as such, any privilege or advantage not
generally accorded to the employees to which such scheme or fund relates.
    Compensation
  Borrowing Powers
   Rotation
  144




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Qualifications
  Share Capital
  Description of Ordinary Shares
 This section summarizes the material provisions of Harmonys ordinary shares as set out in
Harmonys Memorandum and Articles of Association, the Companies Act and the JSE listings
requirements, each as currently in effect. It does not purport to be complete and is qualified in
its entirety by reference to all of the provisions of those sources.
 Dividends
     145




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Voting Rights
  Distribution of Assets on Liquidation
  Redemption/Purchase of Shares
     146




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Issue of Additional Shares and Pre-emptive Rights
   
    
    pursuant to an employee share incentive scheme the terms of which have been approved by the
holders of the relevant class of shares in a general meeting;
    
    for the acquisition of an asset, provided that if the issue is more than 30% of the
companys issued share capital, a simple majority of holders of ordinary shares present and
voting, must vote in favor of the acquisition;
    
    to raise cash by way of a general issue in the discretion of the directors (but not to
related parties) of up to 15% of the issued share capital in any one fiscal year at an issue
price with a discount not exceeding 10% of the 30-day weighted average trading price prior to
the determination date, provided that the holders of ordinary shares, present and voting at a
general meeting, must approve the granting of such authority to the directors by a 75% vote;
or
    
    to raise cash by way of a specific issue of a specified number or a maximum number of
shares for cash provided that the holders of ordinary shares, other than controlling
shareholders, present and voting, vote in favor of the resolution to issue the shares at a
general meeting by a 75% vote. In terms of JSE listings requirements, the circular to be sent
to all shareholders informing them of the general meeting must include, inter alia:
    
    details of the persons to whom the shares are to be issued if such persons fall into the
following categories or other categories identified by the JSE: directors of the company or
its subsidiaries or their associates; trustees of employee or directors share scheme or
pension funds; any person having the right to nominate directors of the company; and certain
shareholders holding more than 10% of the issued share capital;
    
    if the persons to whom the shares are to be issued are related parties, an independent
experts opinion that the issue price is fair and reasonable; and
    
    should the maximum size of the issue equal or exceed 30% of the companys issued share
capital, full listing particulars, which include, inter alia, a reporting accountants report
and, in the case of a mining company, a competent persons report setting out technical
details of the companys operations and assets.
 Transfer of Shares
   Rights of Minority Shareholders and Fiduciary Duties
  147




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Variation of Rights
 pari passu
 Changes in Capital or Objects and Powers of Harmony
  
    
    increase our authorized or paid-up share capital;
    
    consolidate and divide all or any part of our shares into shares of a larger amount;
    
    increase the number of our no par value shares without an increase of our stated capital;
    
    sub-divide all or any part of our shares having a par value;
    
    convert all of our ordinary or preference share capital consisting of shares having a par
value into stated capital constituted by shares of no par value and vice versa;
    
    convert our stated capital constituted by ordinary or preference shares of no par value
into share capital consisting of shares having a par value;
    
    vary the rights attached to any shares whether issued or not yet issued;
    
    convert any of our issued or unissued shares into shares of another class;
    
    convert any of our paid-up shares into stock, and reconvert any stock into any number of
paid-up shares of any denomination;
    
    convert any of our issued shares into preference shares which can be redeemed;
    
    cancel shares which, at the date of passing of the resolution, have not been taken or
agreed to be taken by any person, and diminish the amount of the authorized share capital by
the amount of the shares so cancelled; or
    
    reduce the authorized share capital.
  
    
    reduce our issued share capital;
    
    reduce our stated capital; or
    
    reduce our capital redemption reserve fund and share premium account.
 148




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##### Table of Contents



Meetings of Shareholders
   
    
    to every member of Harmony except any member who has not supplied to Harmony a registered
address for the giving of notices;
    
    to every person entitled to a share in consequence of the death or insolvency of a member;
    
    to the directors and auditor for the time being of Harmony; and
    
    by advertisement to the holders of share warrants to bearer.
    
    
    the consideration of the annual financial statements and report of the auditors;
    
    the election of directors;
    
    the appointment of auditors; and
    
    any business arising from the annual financial statements considered at the meeting.
  149




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Title to Shares
  
    
    that the registered holder or holders hold such shares upon trust for, or as the nominee
of, any other person; or
    
    that any person, other than the registered holder or holders, holds any contingent, future
or partial interest in such shares or any interest in any fractional part of any of such
shares.
   Non-South African Shareholders
  Disclosure of Interest in Shares
  Changes in Control
  150




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##### Table of Contents



Register of Members
   
    
    the names and address of the members;
    
    the shares held by each member, distinguishing each share by its denoting number, if any,
by its class or kind, and by the amount paid or deemed to be paid thereon;
    
    the date on which the name of any person was entered in the register as a member; and
    
    the date on which any person ceased to be a member.
 Annual Report and Accounts
    Material Contracts
 Item 4.
Information on the Company  Business Item 5. Operating and Financial Review and Prospects  Liquidity and Capital
Resources
 Exchange Controls
 Introduction
  SARB
   151




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Government Regulatory Considerations
 Shares
   Loans
   Investments
  Dividends
    152




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##### Table of Contents



Certain South African Tax Considerations
 Treaty
 Dividends
 STC
  Capital Gains Tax
 CGT
  
    
    80% or more of the market value of the equity shares at the time of disposal thereof
is attributable directly or indirectly to immovable property held otherwise than as
trading stock; and
    
    The person directly or indirectly holds at least 20% of the equity share capital of
that company.
  153




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##### Table of Contents



Security Transfer Tax
 STT
    Capitalization Shares
  Voting Rights
  Certain United States Federal IncomeTax Considerations
   
    
    an individual who is a citizen or resident of the United States;
    
    a U.S. domestic corporation, or other entity treated as a domestic corporation for U.S.
federal income tax purposes;
    
    an estate whose income is subject to U.S. federal income tax regardless of its source; or
    
    a trust if a U.S. court can exercise primary supervision over the trusts administration
and one or more U.S. persons are authorized to control all substantial decisions of the
trust.
  154




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Taxation of Dividends
     155




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Capital Gains
   transfer or withdrawal of ordinary shares as described
under  Certain South African Tax Considerations  Security Transfer Tax
 Non-U.S. Holders
   PFIC Rules
   
    
    at least 75% of our gross income for the taxable year is passive income; or
 156




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##### Table of Contents




    
    at least 50% of the value, determined on the basis of a quarterly average, of our assets is
attributable to assets that produce or are held for the production of passive income.
   
    
    any gain you realize on the sale or other disposition of your ordinary shares; and
    
    any excess distribution that we make to you (generally, any distributions to you during a
single taxable year that are greater than 125% of the average annual distributions received
by you in respect of the ordinary shares during the three preceding taxable years or, if
shorter, your holding period for the ordinary shares).Under these rules:
    
    the gain or excess distribution will be allocated rateably over your holding period for the
ordinary shares;
    
    the amount allocated to the taxable year in which you realized the gain or excess
distribution will be taxed as ordinary income;
    
    the amount allocated to each prior year, with certain exceptions, will be taxed at the
highest tax rate in effect for that year; and
    
    the interest charge generally applicable to underpayments of tax will be imposed in respect
of the tax attributable to each such year.
     U.S. Information Reporting and Backup Withholding Rules
  157




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THE PRECEDING DISCUSSION OF CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES IS INTENDED
FOR GENERAL INFORMATION ONLY AND DOES NOT CONSTITUTE TAX ADVICE. ACCORDINGLY, EACH INVESTOR SHOULD
CONSULT ITS OWN TAX ADVISER AS TO PARTICULAR TAX CONSEQUENCES TO IT OF PURCHASING, HOLDING AND
DISPOSING OF THE ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL OR
FOREIGN LAWS, AND PROPOSED CHANGES IN APPLICABLE LAWS .
 DIVIDENDS AND PAYING AGENTS
  STATEMENTS BY EXPERTS
  158




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DOCUMENTS ON DISPLAY
  
 www.sec.gov.
 SUBSIDIARY INFORMATION
  
 Item 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 General
    
    
    in the case of a hedge of an anticipated future transaction, there is a high probability
that the transaction will occur.
 Foreign Currency Sensitivity
  Item 3. Key Information  Exchange
Rates Item 3. Key Information  Risk Factors  Because most of Harmonys production costs
are in Rand and other non-U.S. currencies, while gold is generally sold in U.S. dollars, Harmonys
financial condition could be materially harmed by an appreciation in the value of the Rand and
other non-U.S. currencies.
 159




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##### Table of Contents



Commodity Price Sensitivity
 General
  Item 3. Key Information  Risk Factors  The
profitability of Harmonys operations, and the cash flows generated by those operations, are
affected by changes in the market price for gold, which in the past has fluctuated widely.
 Harmonys Hedging Policy
 Item 4. Information on the Company  Business  Hedge
Policy.
  Commodity Sales Agreements
  Commodity Hedging Experience
   Foreign Currency Sensitivity
   160




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Interest Rate Sensitivity
  Sensitivity analysis
  June 30,2009
    
    2008
    
    2007($ in millions)Increase in 100 basis points
    
    
    
    
    
    
    3
    
    
    
    16Decrease in 100 basis points
    
    
    
    
    
    
    (3
    )
    
    
    (16
    )
   161




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##### Table of Contents



Item 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
  162




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GLOSSARY OF MINING TERMS
 The following explanations are not intended as technical definitions, but rather are intended to
assist the general reader in understanding certain terms as used in this annual report.
 Alluvial:
 Arenaceous:
 Auriferous:
 Beneficiation:
 Carbon In Pulp (CIP):
 Carbon In Solution (CIS):
 Cash cost:
 Conglomerate:
 Crosscut:
 Cut and fill:
 Cut-off grade:
 Cyanide leaching:
 Decline:
 Deferred Stripping:
 Depletion:
 Development:
 Electro-winning:
 Elution:
 163




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##### Table of Contents



Exploration:
 Fabricated gold:
 Fatal injury frequency rate:
 Fluvial:
 Footwall:
 Forward purchase:
 Forward sale:
 Gold reserves:
 Gold lease rate swap:
 Grade:
 Greenfield:
 Greenstone:
 Grinding:
 Head grade:
 Heap leaching:
 Leaching:
 Level:
 Littoral:
 Longhole sub-level caving:
 Lost time injury frequency rate:
 Mark-to-market:
 164




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##### Table of Contents



Measures:
 Metric unit
    
    
    
    U.S. equivalent1 tonne
    
    = 1 t
    
    = 1.10231 short tons1 gram
    
    = 1 g
    
    = 0.03215 ounces1 gram per tonne
    
    = 1 g/t
    
    = 0.02917 ounces per short ton1 kilogram per tonne
    
    = 1 kg/t
    
    = 29.16642 ounces per short ton1 kilometer
    
    = 1 km
    
    = 0.621371 miles1 meter
    
    = 1 m
    
    = 3.28084 feet1 centimeter
    
    = 1 cm
    
    = 0.3937 inches1 millimeter
    
    = 1 mm
    
    = 0.03937 inches1 hectare
    
    = 1 ha
    
    = 2.47105 acres
 Metallurgical plant:
 Mill delivered tons:
 Milling/mill:
 Mineable:
 Mineralization:
 Mineralized material:
 Morphology:
 Open-pit/Open cast/Open cut:
 Ore:
 Ore grade:
 Ore reserves:
 
    
    development of additional reserves;
    
    depletion of existing reserves through production;
    
    actual mining experience; and
    
    price forecasts.
  Orebody:
 165




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##### Table of Contents



Ounce:
 Overburden:
 Overburden tons:
 Palaeotopography:
 Pay limit:
 Placer:
 Precipitate:
 Probable reserves:
 Prospect:
 Prospecting license:
 Proven reserves:
 Pyrite:
 Quartz:
 Recovery grade:
 Reef:
 Refining:
 Rehabilitation:
 Sampling:
 Shaft:
 Slimes:
 Slurry:
 Smelting:
 Spot price:
 166




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##### Table of Contents



Stockpile:
 Stockwork:
 Stope:
 Stripping:
 Sulphide:
 Syncline:
 Tailings:
 Ton:
 Tonnage:
 Tonne:
 Trend:
 Unconformity:
 Waste:
 Waste rock:
 Yield:
 Zinc precipitation:
 167




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##### Table of Contents



PART II
 
 Item 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
  168




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##### Table of Contents



Item 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
    USE OF PROCEEDS
  169




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##### Table of Contents



Item 15. DISCLOSURE CONTROLS AND PROCEDURES
 (a) Disclosure Controls and Procedures
 CEO CFO
 (b) Managements Annual Report on Internal Control over Financial Reporting
   Internal Control  Integrated Framework COSO
  (c) Attestation Report of the Registered Public Accounting Firm
  (d) Changes in Internal Control over Financial Reporting
  170




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##### Table of Contents



Item 16A. AUDIT COMMITTEE FINANCIAL EXPERT
  Item 7. Directors and
Management  Board Practices  Audit Committee.
 
 Item 16B. CODE OF ETHICS
  171




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##### Table of Contents



Item 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
 AUDIT FEES
  Fiscal year ended June 30, 2008
    
    U.S.$1.949 millionFiscal year ended June 30, 2009
    
    U.S.$1.631 million
 AUDIT-RELATED FEES
  Fiscal year ended June 30, 2008
    
    U.S.$0.752 millionFiscal year ended June 30, 2009
    
    U.S.$0.331 million
  TAX FEES
  Fiscal year ended June 30, 2008
    
    U.S.$0.052 millionFiscal year ended June 30, 2009
    
    U.S.$0.038 million
  ALL OTHER FEES
  Fiscal year ended June 30, 2008
    
    
    U.S.$0.759 millionFiscal year ended June 30, 2009
    
    U.S.$0.300 million
 AUDIT COMMITTEE APPROVAL
  
 Item 16D. EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT COMMITTEES
  
 Item 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
  
  172




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##### Table of Contents



Item 16F. CHANGE IN REGISTRANTS CERTIFYING ACCOUNTANT
  
 Item 16G. CORPORATE GOVERNANCE
 Significant ways in which Harmonys corporate governance practices differ from practices
followed by publicly-listed US companies.
       173




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##### Table of Contents



PART III
 
 Item 17. FINANCIAL STATEMENTS
  174




---



##### Table of Contents



Item 18. FINANCIAL STATEMENTS
 Financial Statements
  175




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##### Table of Contents



Item 19. EXHIBITS
 1.1
    
    Memorandum of Association of Harmony, as amended (incorporated by reference to Harmonys Registration
Statement (file no. 333-13516) on Form F-3 filed on June 21, 2001).1.2
    
    Articles of Association of Harmony, as amended (incorporated by reference to Harmonys Annual Report on
Form 20-F for the fiscal year ended June 30, 2005, filed on November 3, 2005).2.1
    
    Notice to shareholders dated September 25, 2007 in respect of the Annual General Meeting held on November
26, 2007 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June
30, 2007, filed on December 7, 2007).2.2
    
    Share Exchange Agreement between Avmin and Harmony to acquire the shareholding in Avgold dated February 16,
2004 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30,
2004, as amended, filed on October 14, 2004).2.3
    
    Deposit Agreement among Harmony, The Bank of New York, as Depositary, and owners and holders of American
Depositary Receipts, dated as of August 12, 1996, as amended and restated as of October 2, 1996, as further
amended and restated as of September 15, 1998 (incorporated by reference to Post-Effective Amendment No. 1
to Harmonys Registration Statement (file no. 333-5410) on Form F-6 filed on May 17, 2001).2.4
    
    Form of ADR (included in Exhibit 2.3).2.5
    
    Form of Harmonys senior unsecured 13% bonds due June 14, 2006 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2001 filed on September 26, 2001).2.6
    
    Form of Global Bond (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year
ended June 30, 2004, as amended, filed on October 14, 2004).2.7
    
    Bond Offering Circular dated October 14, 2004 (incorporated by reference to Harmonys Annual Report on Form
20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).4.1
    
    Harmony (2003) Share Option Scheme, as amended (incorporated by reference to Harmonys Annual Report on
Form 20-F for the fiscal year ended June 30, 2005, filed on November 3, 2005).4.2
    
    Harmony 2006 Share Scheme (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal
year ended June 30, 2007, filed on December 7, 2007).4.3
    
    Sale of Shares Agreement amongst Harmony, ARMgold Harmony Joint Investment Company (Proprietary) Limited,
and The ARM Broad-Based Empowerment Trust signed on April 15, 2005 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2005, filed on November 3, 2005).4.4
    
    Subordination Agreement amongst Harmony, Nedbank Limited and The ARM Broad-Based Empowerment Trust signed
on April 15, 2005 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year
ended June 30, 2005, filed on November 3, 2005).4.5
    
    First Loan Agreement between Nedbank Limited and The ARM Broad-Based Empowerment Trust signed on April 15,
2005 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30,
2005, filed on November 3, 2005).4.6
    
    First Ranking Cessation and Pledge between The ARM Broad-Based Empowerment Trust and Nedbank Limited signed
on April 15, 2005 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year
ended June 30, 2005, filed on November 3, 2005).4.7
    
    Second Loan Agreement between Nedbank Limited and The ARM Broad-Based Empowerment Trust signed on April 15,
2005 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30,
2005, filed on November 3, 2005).
 176




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##### Table of Contents



4.8
    
    Second Ranking Cessation and Pledge between The ARM Broad-Based Empowerment Trust and Nedbank Limited
signed on April 15, 2005 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal
year ended June 30, 2005, filed on November 3, 2005).4.9
    
    Flow of Funds Agreement amongst Nedbank Limited, ARMgold Harmony Joint Investment Company (Proprietary)
Limited, Harmony and The ARM Broad-Based Empowerment Trust signed on April 15, 2005 (incorporated by
reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2005, filed on
November 3, 2005).4.10
    
    Harmony Undertaking amongst Harmony, ARMgold Harmony Joint Investment Company (Proprietary) Limited and
Nedbank Limited signed on April 15, 2005 (incorporated by reference to Harmonys Annual Report on Form 20-F
for the fiscal year ended June 30, 2005, filed on November 3, 2005).4.11
    
    Term Loan Agreement with Rand Merchant Bank dated March 9, 2006 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2006, filed on October 31, 2006).4.12
    
    Pledge Agreement in favor of FirstRand Bank Limited (acting through its Rand Merchant Bank division) dated
March 9, 2006 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended
June 30, 2006, filed on October 31, 2006).4.13
    
    Senior Facility Agreement among Nedbank Limited and Harmony Gold Mining Company Limited and the Guarantors
named therein dated on or about September 28, 2007 (incorporated by reference to Harmonys Annual Report on
Form 20-F for the fiscal year ended June 30, 2007, filed on December 7, 2007).4.14
    
    Cessation and Pledge in Security by African Rainbow Minerals Gold Limited in favour of Nedbank dated on or
about September 28, 2007 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal
year ended June 30, 2007, filed on December 7, 2007).4.15
    
    Cessation and Pledge in Security by Harmony Gold Mining Company Limited in favour of Nedbank dated on or
about September 28, 2007 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal
year ended June 30, 2007, filed on December 7, 2007).4.16
    
    Preference Share Subscription Agreement dated March 20, 2007 by and among FirstRand Bank Limited (RMB),
Harmony and the subsidiaries named therein (incorporated by reference to Harmonys Annual Report on Form
20-F for the fiscal year ended June 30, 2007, filed on December 7, 2007).4.17
    
    Senior Bridge Loan Facility with RMB dated June 29, 2007 (incorporated by reference to Harmonys Annual
Report on Form 20-F for the fiscal year ended June 30, 2007, filed on December 7, 2007).4.18
    
    Draw Down Facility Agreement with Westpac Bank dated June 27, 2007 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2007, filed on December 7, 2007).4.19
    
    Sale Agreement with Randfontein Estates Limited, Clidet No. 726 (Proprietary) Limited and Clidet No. 770
(Proprietary) Limited dated December 18, 2007 (incorporated by reference to Harmonys Annual Report on Form
20-F for the fiscal year ended June 30, 2008, filed on October 29, 2008).4.20
    
    Shareholders Agreement between ARMGold/Harmony Joint Investment Company (Proprietary) Limited, Clidet No.
770 (Proprietary) Limited and Clidet No. 726 (Proprietary) Limited dated December 18, 2007 (incorporated by
reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2008, filed on October
29, 2008).4.21
    
    Sale of Shares and Claim Agreement with Randfontein Estates Limited, ARMGold/Harmony Joint Investment
Company (Proprietary) Limited and Clidet No. 770 (Proprietary) Limited dated December 18, 2007
(incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2008,
filed on October 29, 2008).4.22
    
    Deed of Extinguishment of Royalty (Hidden Valley Project) dated May June 11, 2008 (incorporated by
reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2008, filed on October
29, 2008).
 177




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4.23
    
    Senior Facility Agreement with Nedbank Limited dated September 28, 2007 (incorporated by reference to
Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2008, filed on October 29, 2008).4.24
    
    Master Lease Facility Agreement between Morobe Consolidated Goldfields Limited and Westpac Bank PNG Limited
(Hidden Valley Project) dated June 14, 2007 (incorporated by reference to Harmonys Annual Report on Form
20-F for the fiscal year ended June 30, 2008, filed on October 29, 2008).*4.25
    
    Deed of Extinguishment of Royalty (Wafi-Golpu Project) dated February 16, 2009.*4.26
    
    Master Purchase and Farmin Agrement dated May 22, 2008 between Morobe Consolidated Goldfields Limited, Wafi
Mining Limited, Morobe Exploration Limited, Newcrest PNG 1 Limited, Newcrest PNG 2 Limited and Newcrest PNG
1 Limited.*4.27
    
    Hidden Valley Joint Venture Agreement dated May 22, 2008 between Morobe Consolidated Goldfields Limited,
Newcrest PNG 1 Limited and Hidden Valley Services Limited.*4.28
    
    Master Co-operation Agreement dated on or about August 5, 2008 between Hidden Valley Services Limited,
Wafi-Golpu Services Limited, Morobe Exploration Services Limited, Harmony Gold (PNG Services) Pty Limited
and Newcrest Mining Limited.*8.1
    
    Significant subsidiaries of Harmony Gold Mining Company Limited.*12.1
    
    Certification of the principal executive officer required by Rule 13a-14(a) or Rule 15(d)-14(a), pursuant
to Section 302 of the Sarbanes Oxley Act of 2002.*12.2
    
    Certification of the principal financial officer required by Rule 13a-14(a) or Rule 15(d)-14(a), pursuant
to Section 302 of the Sarbanes Oxley Act of 2002.*13.1
    
    Certification of the principal executive officer, pursuant to Section 906 of the Sarbanes Oxley Act of 2002.*13.2
    
    Certification of the principal financial officer, pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
 
 *
    
    Filed herewith 178




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##### Table of Contents



SIGNATURE
  HARMONY GOLD MINING COMPANY LIMITED
 By:
    /s/ Graham BriggsGraham BriggsChief Executive Officer  179




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##### Table of Contents



Index to Financial Statements
 PageHarmony Gold Mining Company LimitedReport of the Independent Registered Public Accounting Firm
    
    F-2Consolidated Income Statements for the years ended June 30, 2009, 2008 and 2007
    
    F-4Consolidated Statements of Other Comprehensive Income for the years ended June 30, 2009, 2008 and 2007
    
    F-5Consolidated Balance Sheets at June 30, 2009 and 2008
    
    F-6Consolidated Statements of Changes in Shareholders Equity for the years ended June 30, 2009, 2008 and 2007
    
    F-7Consolidated Statements of Cash Flows for the years ended June 30, 2009, 2008 and 2007
    
    F-8Notes to the Consolidated Financial Statements
    
    F-9
 F-1




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
  Internal Control  Integrated Framework
  F-2




---



##### Table of Contents



PricewaterhouseCoopers Inc
 F-3




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##### Table of Contents



US DOLLARFigures in million
    
    Note
    
    
    2009
    
    
    2008*
    
    
    2007*Continuing operationsRevenue
    
    
    
    
    
    
    1,277
    
    
    
    1,325
    
    
    
    1,202Cost of sales
    
    
    5
    
    
    
    (1,104
    )
    
    
    (1,162
    )
    
    
    (1,084
    )Production costs
    
    
    
    
    
    
    (850
    )
    
    
    (959
    )
    
    
    (907
    )Amortisation and depreciation
    
    
    
    
    
    
    (167
    )
    
    
    (117
    )
    
    
    (134
    )Impairment of assets
    
    
    
    
    
    
    (61
    )
    
    
    (35
    )
    
    
    (37
    )Employment termination and restructuring costs
    
    
    
    
    
    
    (4
    )
    
    
    (32
    )
    
    
    Other items
    
    
    
    
    
    
    (22
    )
    
    
    (19
    )
    
    
    (6
    )Gross profit
    
    
    
    
    
    
    173
    
    
    
    163
    
    
    
    118Corporate, administration and other expenditure
    
    
    
    
    
    
    (40
    )
    
    
    (33
    )
    
    
    (31
    )Exploration expenditure
    
    
    
    
    
    
    (32
    )
    
    
    (32
    )
    
    
    (30
    )Profit on sale of property, plant and equipment
    
    
    6
    
    
    
    116
    
    
    
    18
    
    
    
    25Other expenses  net
    
    
    7
    
    
    
    (3
    )
    
    
    (13
    )
    
    
    Operating profit
    
    
    8
    
    
    
    214
    
    
    
    103
    
    
    
    82Profit/(loss) from associates
    
    
    22
    
    
    
    1
    
    
    
    (11
    )
    
    
    (3
    )Profit on sale of investment in associate
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    33Impairment of investment in associate
    
    
    22
    
    
    
    (14
    )
    
    
    (12
    )
    
    
    Fair value (loss)/gain on financial instruments
    
    
    10
    
    
    
    (10
    )
    
    
    5
    
    
    
    15Loss on sale of listed investments
    
    
    11
    
    
    
    
    
    
    
    (63
    )
    
    
    (5
    )Investment income
    
    
    12
    
    
    
    49
    
    
    
    39
    
    
    
    27Finance cost
    
    
    13
    
    
    
    (24
    )
    
    
    (71
    )
    
    
    (66
    )Profit/(loss) before taxation
    
    
    
    
    
    
    216
    
    
    
    (10
    )
    
    
    83Taxation
    
    
    14
    
    
    
    (23
    )
    
    
    (68
    )
    
    
    (50
    )Net profit/(loss) from continuing operations
    
    
    
    
    
    
    193
    
    
    
    (78
    )
    
    
    33Discontinued operationsProfit from discontinued operations
    
    
    15
    
    
    
    118
    
    
    
    48
    
    
    
    18Net profit/(loss)
    
    
    
    
    
    
    311
    
    
    
    (30
    )
    
    
    51Earnings/(loss) per ordinary share (cents):
    
    
    16Earnings/(loss) from continuing operations
    
    
    
    
    
    
    47
    
    
    
    (20
    )
    
    
    8Earnings from discontinued operations
    
    
    
    
    
    
    28
    
    
    
    12
    
    
    
    4Total earnings/(loss) for the period
    
    
    
    
    
    
    75
    
    
    
    (8
    )
    
    
    12Diluted earnings/(loss) per ordinary share (cents):
    
    
    16Earnings/(loss) from continuing operations
    
    
    
    
    
    
    46
    
    
    
    (20
    )
    
    
    8Earnings from discontinued operations
    
    
    
    
    
    
    28
    
    
    
    12
    
    
    
    4Total diluted earnings/(loss) for the period
    
    
    
    
    
    
    74
    
    
    
    (8
    )
    
    
    12
 *
    
    The comparative periods have been re-presented for a change in discontinued operations. Refer to note 15.
  F-4




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##### Table of Contents



Consolidated statements of other comprehensive income
 US DOLLARFigures in million
    
    Note
    
    
    2009
    
    
    2008
    
    
    2007Net profit/(loss) for the period
    
    
    
    
    
    
    311
    
    
    
    (30
    )
    
    
    51Attributable to:Owners of the parent
    
    
    
    
    
    
    311
    
    
    
    (30
    )
    
    
    51Other comprehensive income/(loss) for the
period, net of income tax
    
    
    
    
    
    
    111
    
    
    
    (204
    )
    
    
    41Foreign exchange translation
    
    
    
    
    
    
    105
    
    
    
    (246
    )
    
    
    87Mark-to-market of available-for-sale investments
    
    
    28
    
    
    
    6
    
    
    
    42
    
    
    
    (46
    )Total comprehensive income/(loss) for the period
    
    
    
    
    
    
    422
    
    
    
    (234
    )
    
    
    92Attributable to:Owners of the parent
    
    
    
    
    
    
    422
    
    
    
    (234
    )
    
    
    92
 F-5




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##### Table of Contents



Consolidated balance sheets
 US DOLLARFigures in million
    
    Note
    
    
    2009
    
    
    2008AssetsNon-current assetsProperty, plant and equipment
    
    
    17
    
    
    
    3,614
    
    
    
    3,531Intangible assets
    
    
    18
    
    
    
    288
    
    
    
    283Restricted cash
    
    
    19
    
    
    
    21
    
    
    
    10Restricted investments
    
    
    20
    
    
    
    212
    
    
    
    188Investment in financial assets
    
    
    21
    
    
    
    7
    
    
    
    9Investment in associates
    
    
    22
    
    
    
    43
    
    
    
    19Deferred tax asset
    
    
    14
    
    
    
    222
    
    
    
    190Trade and other receivables
    
    
    24
    
    
    
    10
    
    
    
    18Total non-current assets
    
    
    
    
    
    
    4,417
    
    
    
    4,248Current assetsInventories
    
    
    25
    
    
    
    134
    
    
    
    89Trade and other receivables
    
    
    24
    
    
    
    115
    
    
    
    112Income and mining taxes
    
    
    
    
    
    
    6
    
    
    
    11Cash and cash equivalents
    
    
    26
    
    
    
    253
    
    
    
    53508
    
    
    
    265Assets of disposal groups classified as held-for-sale
    
    
    15
    
    
    
    
    
    
    
    197Total current assets
    
    
    
    
    
    
    508
    
    
    
    462Total assets
    
    
    
    
    
    
    4,925
    
    
    
    4,710Equity and liabilitiesShare capital and reservesShare capital
    
    
    27
    
    
    
    4,004
    
    
    
    3,787Other reserves
    
    
    28
    
    
    
    (72
    )
    
    
    (196
    )Accumulated loss
    
    
    
    
    
    
    (108
    )
    
    
    (419
    )Total equity
    
    
    
    
    
    
    3,824
    
    
    
    3,172Non-current liabilitiesBorrowings
    
    
    29
    
    
    
    14
    
    
    
    31Deferred tax
    
    
    14
    
    
    
    643
    
    
    
    573Provision for environmental rehabilitation
    
    
    30
    
    
    
    198
    
    
    
    145Retirement benefit obligation and other provisions
    
    
    31
    
    
    
    22
    
    
    
    18Total non-current liabilities
    
    
    
    
    
    
    877
    
    
    
    767Current liabilitiesTrade and other payables
    
    
    32
    
    
    
    189
    
    
    
    201Income and mining taxes
    
    
    
    
    
    
    2
    
    
    
    12Borrowings
    
    
    29
    
    
    
    33
    
    
    
    494224
    
    
    
    707Liabilities of disposal groups classified as held-for-sale
    
    
    15
    
    
    
    
    
    
    
    64Total current liabilities
    
    
    
    
    
    
    224
    
    
    
    771Total equity and liabilities
    
    
    
    
    
    
    4,925
    
    
    
    4,710
  F-6




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##### Table of Contents



Consolidated statements of changes in shareholders equity
 Number ofordinary
    
    
    
    
    
    
    Share
    
    
    Accumulatedshares issued
    
    
    Share capital
    
    
    premium
    
    
    loss
    
    
    Other reserves
    
    
    TotalFigures in million (US Dollar)Note
    
    
    
    
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    28Balance  June 30, 2006
    
    
    396,934,450
    
    
    
    32
    
    
    
    3,700
    
    
    
    (438
    )
    
    
    (45
    )
    
    
    3,249Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Issue of shares Exercise of employee share options
    
    
    2,673,934
    
    
    
    
    
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    19Share-based payments
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    6
    
    
    
    7Total comprehensive income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51
    
    
    
    41
    
    
    
    92Balance  June 30, 2007
    
    
    399,608,384
    
    
    
    32
    
    
    
    3,720
    
    
    
    (388
    )
    
    
    2
    
    
    
    3,366Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Issue of shares Exercise of employee share options
    
    
    1,786,213
    
    
    
    
    
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    12 Exchange for PNG Royalty
    
    
    1,859,159
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    20Share-based payments
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    6
    
    
    
    9Total comprehensive loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30
    )
    
    
    (204
    )
    
    
    (234
    )Balance  June 30, 2008
    
    
    403,253,756
    
    
    
    32
    
    
    
    3,755
    
    
    
    (419
    )
    
    
    (196
    )
    
    
    3,172Issue of shares Exercise of employee share options
    
    
    1,322,964
    
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    7 Exchange for PNG Royalty
    
    
    3,364,675
    
    
    
    
    
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    23 Capital raising
    
    
    18,045,441
    
    
    
    1
    
    
    
    186
    
    
    
    
    
    
    
    
    
    
    
    187Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    13Total comprehensive income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    311
    
    
    
    111
    
    
    
    422Balance  June 30, 2009
    
    
    425,986,836
    
    
    
    33
    
    
    
    3,971
    
    
    
    (108
    )
    
    
    (72
    )
    
    
    3,824
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Consolidated cash flow statements
 US DOLLARFigures in million
    
    Notes
    
    
    2009
    
    
    2008
    
    
    2007Cash flow from operating activitiesCash generated by operations
    
    
    33
    
    
    
    319
    
    
    
    268
    
    
    
    164Interest received
    
    
    
    
    
    
    51
    
    
    
    38
    
    
    
    25Dividends received
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    3Interest paid
    
    
    
    
    
    
    (31
    )
    
    
    (57
    )
    
    
    (31
    )Income and mining taxes paid
    
    
    
    
    
    
    (85
    )
    
    
    (18
    )
    
    
    (2
    )Cash generated by operating activities
    
    
    
    
    
    
    254
    
    
    
    236
    
    
    
    159Cash flow from investing activitiesNet increase in amounts invested in environmental trusts
    
    
    
    
    
    
    
    
    
    
    (11
    )
    
    
    (2
    )(Increase)/decrease in restricted cash
    
    
    
    
    
    
    (9
    )
    
    
    28
    
    
    
    (4
    )Proceeds on disposal of South Kal Mine assets
    
    
    33
    
    
    
    
    
    
    
    18
    
    
    
    Proceeds on disposals of Papua New Guinea joint venture
    
    
    33
    
    
    
    235
    
    
    
    
    
    
    
    Proceeds on disposals of Randfontein Cooke assets
    
    
    33
    
    
    
    209
    
    
    
    
    
    
    
    Proceeds on disposal of available-for-sale financial assets
    
    
    
    
    
    
    
    
    
    
    184
    
    
    
    55Acquisition of intangible assets
    
    
    
    
    
    
    (4
    )
    
    
    (3
    )
    
    
    (6
    )Acquisition of other non-current investments
    
    
    
    
    
    
    (4
    )
    
    
    (11
    )
    
    
    (5
    )Proceeds on disposal of property, plant and equipment
    
    
    
    
    
    
    6
    
    
    
    18
    
    
    
    27Additions to property, plant and equipment
    
    
    
    
    
    
    (339
    )
    
    
    (552
    )
    
    
    (383
    )Cash generated/(utilised) by investing activities
    
    
    
    
    
    
    94
    
    
    
    (329
    )
    
    
    (318
    )Cash flow from financing activitiesLong-term borrowings raised
    
    
    
    
    
    
    
    
    
    
    323
    
    
    
    253Long-term borrowings paid
    
    
    
    
    
    
    (427
    )
    
    
    (256
    )
    
    
    (139
    )Ordinary shares issued
    
    
    
    
    
    
    194
    
    
    
    12
    
    
    
    19Dividends paid
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    (1
    )Cash (utilised)/generated by financing activities
    
    
    
    
    
    
    (233
    )
    
    
    78
    
    
    
    132Foreign currency translation adjustments
    
    
    
    
    
    
    85
    
    
    
    (2
    )
    
    
    6Net increase/(decrease) in cash and equivalents
    
    
    
    
    
    
    200
    
    
    
    (17
    )
    
    
    (21
    )Cash and equivalents  beginning of period
    
    
    
    
    
    
    53
    
    
    
    70
    
    
    
    91Cash and equivalents  end of period
    
    
    
    
    
    
    253
    
    
    
    53
    
    
    
    70
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1
    
    General informationHarmony Gold Mining Company Limited (the Company) and its subsidiaries (collectively
Harmonyor the Group) are engaged in gold mining and related activities, including
exploration, extraction and processing. Gold bullion, the Groups principal product, is currently
produced at its operations in South Africa. Harmony has operations in Papua New Guinea, where the
construction of the Hidden Valley mine is being completed, as well as in Western Australia.The Company is a public company, incorporated and domiciled in South Africa. The address of
the registered office is Randfontein Office Park, Corner Main Reef Road and Ward Avenue,
Randfontein, 1759.These consolidated financial statements were authorised for issue by the board of directors
on October 9, 2009.2
    
    Accounting policiesThe principal accounting policies applied in the preparation of the consolidated financial
statements are set out below. These policies have been consistently applied in all years
presented.
 2.1
    
    Basis of preparationThe annual financial statements are prepared on the historical cost basis, as modified by
available-for-sale financial assets, and financial assets and liabilities, which have been brought
to account at fair value. The financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
(IASB).New accounting standards and IFRIC interpretations
 (a)
    
    Standards and interpretations effective in 2009 but not relevant:The following standards and interpretations to published standards are mandatory for
accounting periods beginning on or after July 1, 2008 but are not relevant to the Groups
operations:Amendments to IAS 39 and IFRS 7, IAS 39  Financial Instruments: Recognition and Measurement
and IFRS 7 Financial Instruments: Disclosures  Reclassification of Financial Assets;IFRIC 14, IAS 19  The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction;IFRIC 12, Service concession arrangements; andIFRIC 13, Customer Loyalty Programmes.(b)
    
    Standards and amendments early adopted by the Group in the 2008 year:IAS 1 (Revised)  Presentation of Financial Statements:IAS 23 (Revised)  Borrowing Costs; andIFRS 8  Operating Segments.(c)
    
    Standards, amendments and interpretations to existing standards that are not yet
effective and have not been early adopted by the Group:At the date of authorisation of these financial statements, the standards, amendments and
interpretations listed below were in issue but not yet effective. These new standards and
interpretations have not been early adopted by the Group and a reliable estimate of the impact of
the adoption thereof for the Group cannot yet be determined for all of them, as management is
still in the process of determining the impact of these standards and interpretations on future
financial statements. The Group plans on adopting these standards, amendments and interpretations
on the dates when they become effective.
 Amendments and revised standards:IAS 27 (Revised)  Consolidated and Separate Financial Statements (effective from periods
beginning July 1, 2009).
The revised standard requires the effects of all transactions with non-controlling interests
to be recorded in equity if there is no change in control. They will no longer result in goodwill
or gains and losses. The standard also specifies the accounting when control is lost. Any
remaining interest in the entity is re-measured to fair value and a gain or loss is recognised in
profit or loss. The effect of the amended IAS 27 will be recorded in future periods when such
transactions are entered into.IFRS 3 (Revised)  Business Combinations (effective from periods beginning July 1, 2009).


The new standard continues to apply the acquisition method to business combinations, with
some significant changes. For example, all payments to purchase a business are to be recorded at
fair value at the acquisition date, with some contingent payments subsequently re-measured at fair
value through income. Goodwill may be calculated based on the parents share of net assets or it
may include goodwill related to the minority interest. All transaction costs will be expensed. The
effect of the revised IFRS 3 will be recorded in future periods when such transactions are entered
into.
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IFRS 2 (Amendment)  Share-Based Payment: Vesting Conditions and Cancellations (effective
from periods beginning January 1, 2009).
The amendment deals with two matters. It clarifies that vesting conditions are service
conditions and performance conditions only. Other features of a share-based payment are not
vesting conditions. It also specifies that all cancellations, whether by the entity or by other
parties, should receive the same accounting treatment. The effect of the amended IFRS 2 will be
recorded in future periods when such transactions affecting vesting conditions and cancellations
on share based payment occurs.IAS 32 and IAS 1 (Amendment)  IAS 32 Financial Instruments: Presentation and IAS 1
Presentation of financial statements: Puttable Financial Instruments and Obligations Arising on
Liquidation (effective from periods beginning January 1, 2009).
The amendments require entities to classify the following types of financial instruments as
equity, provided they have particular features and meet specific conditions: a) puttable
financial instruments (for example, some shares issued by co-operative entities); b)
instruments, or components of instruments, that impose on the entity an obligation to deliver to
another party a pro rata share of the net assets of the entity only on liquidation (for example,
some partnership interests and some shares issued by limited life entities). Additional
disclosures are required about the instruments affected by the amendments. The Group does not
expect the adoption of these amendments to have an impact on the consolidated financial
statements.IFRS 1 and IAS 27 (Amendment)  IFRS 1 First-Time Adoption of International Financial
Reporting Standards and IAS 27 Consolidated and Separate Financial Statements: Cost of an
Investment in a Subsidiary, Jointly Controlled Entity or Associate (effective from periods
beginning January 1, 2009).
The amendment allow first-time adopters to use a deemed cost of either fair value or the
carrying amount under previous accounting practice to measure the initial cost of investments in
subsidiaries, jointly controlled entities and associates in the separate financial statements. The
amendment also removed the definition of the cost method from IAS 27 and replaced it with a
requirement to present dividends as income in the separate financial statements of the investor.
The Group is not a first-time adopter of IFRS. The effect of the amended IAS 27 will be recorded
in future periods when such transactions are entered into.IAS 39 (Amendment)  IAS 39 Financial Instruments: Recognition and Measurement Exposures
Qualifying for Hedge Accounting (effective from periods beginning January 1, 2009).
The amendment makes two significant changes. It prohibits designating inflation as a
hedgeable component of a fixed rate debt. It also prohibits including time value in the one-sided
hedged risk when designating options as hedges. The Group currently does not anticipate the change
to affect the financial statements as the Group does not have hedges.IFRS 7 (Amendment)  Financial Instruments disclosures: Improving Disclosures about Financial
Instruments (effective from periods beginning January 1, 2009).
The amendment increases the disclosure requirements about fair value measurement and
reinforces existing principles for disclosure about liquidity risk. The amendment introduces a
three-level hierarchy for fair value measurement disclosure and requires some specific
quantitative disclosures for financial instruments in the lowest level in the hierarchy. In
addition, the amendment clarifies and enhances existing requirements for the disclosure of
liquidity risk primarily requiring a separate liquidity risk analysis for derivative and
non-derivative financial liabilities. The standard will affect the disclosure of financial
instruments in the financial statements.Annual improvements to IFRS issued August 2008 (effective on or after January 1, 2009 unless
otherwise specified).
This is a collection of amendments to IFRSs. These amendments are the result of conclusions
the IASB reached on proposals made in its annual improvements project. The annual improvements
project provides a vehicle for making non-urgent but necessary amendments to IFRSs. Some
amendments involve consequential amendments to other IFRSs. The Group is assessing the impact that
these improvements will have on the financial statements.Annual improvements to IFRS issued April 2009 (effective on or after January 1, 2010 unless
otherwise specified).
This is a collection of amendments to IFRSs. These amendments are the result of conclusions the
IASB reached on proposals made in its annual improvements project. The annual improvements
project provides a vehicle for making non-urgent but necessary amendments to IFRSs. Some
amendments involve consequential amendments to other IFRSs. The Group will assess the impact that
these improvements will have on the financial statements.New interpretations:IFRIC 15  Agreements for the Construction of Real Estate (effective from periods beginning
January 1, 2009)
IFRIC 15 addresses diversity in accounting for real estate sales. IFRIC 15 clarifies how to
determine whether an agreement is within the scope of IAS 11  Construction contracts or IAS 18 -
Revenue and when revenue from construction should be recognised. The guidance replaces example 9
in the appendix to IAS 18. The Group does not expect this interpretation to have an impact on the
financial statements.
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IFRIC 16  Hedges of a Net Investment in a Foreign Operation (effective from periods
beginning October 1, 2008)
IFRIC 16 provides guidance on identifying the foreign currency risks that qualify as a hedged
risk (in the hedge of a net investment in a foreign operation). It secondly provides guidance on
where, within a group, hedging instruments that are hedges of a net investment in a foreign
operation can be held to qualify for hedge accounting. Thirdly, it provides guidance on how an
entity should determine the amounts to be reclassified from equity to profit or loss for both the
hedging instrument and the hedged item. The Group currently does not anticipate the change
affecting our financial statements as the Group does not have hedges on its net investments in
foreign operations.IFRIC 17  Distributions of Non-cash Assets to Owners (effective from periods beginning July
1, 2009)
IFRIC 17 applies to the accounting for distributions of non-cash assets (commonly referred to
as dividends in specie) to the owners of the entity. The interpretation clarifies that: a
dividend payable should be recognised when the dividend is appropriately authorised and is no
longer at the discretion of the entity; an entity should measure the dividend payable at the fair
value of the net assets to be distributed; and an entity should recognise the difference between
the dividend paid and the carrying amount of the net assets distributed in profit or loss. The
effect of the interpretation will be recorded in future periods when such transactions are entered
into.IFRIC 18  Transfers of assets from customers (effective from periods beginning July 1, 2009)
The interpretation clarifies the accounting treatment for transfers of property, plant and
equipment received from customers. This Interpretation applies to agreements with customers in
which the entity receives cash from a customer when that amount of cash must be used only to
construct or acquire an item of property, plant and equipment and the entity must then use the
item of property, plant and equipment either to connect the customer to a network or to provide
the customer with ongoing access to a supply of goods and services, or to do both. The Group
currently does not expect this interpretation to have any effect on the financial statements.2.2
    
    ConsolidationThe consolidated financial information includes the financial statements of the Company, its
subsidiaries, its proportionate interest in joint ventures, special purpose entities (SPEs) and
its interests in associates.
 (i)
    
    Subsidiaries, which are those entities in which the Group has an interest of more than
one half of the voting rights or otherwise has power to govern the financial and operating
policies, are consolidated. Subsidiaries are consolidated from the date on which control is
acquired and are no longer consolidated when control ceases. The purchase method of accounting is
used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the
fair value of the assets given up, shares issued or liabilities assumed at the date of acquisition
plus costs directly attributable to the acquisition.Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date, irrespective of
the extent of any non-controlling interests. Non-controlling interests are carried at a proportion
of the net identifiable assets acquired.The excess of the cost of acquisition over the fair value of the Groups share of the
identifiable net assets acquired is recorded as goodwill (refer to 2.7).In situations of successive share purchases when control already existed at the date of
further acquisition, no fair value adjustment is made to the identifiable net assets acquired and
any excess/deficit purchase price over the carrying value of non-controlling interests acquired is
accounted for in equity.Intercompany transactions, balances and unrealized gains on transactions between group
companies are eliminated on consolidation. Unrealized losses are also eliminated and may provide
evidence of an impairment that should be recognized. Where necessary, accounting policies of
subsidiaries have been changed to ensure consistency with the policies adopted by the Group.(ii)
    
    Associatesare those entities, other than a subsidiary, in which the Group has a
material interest and in respect of which the Group exercises significant influence over
operational and financial policies, normally owning between 20% and 50% of the voting equity, but
which it does not control.Investments in associates are accounted for by using the equity method of accounting, and are
initially recognized at cost. The cost of an acquisition is measured as the fair value of the
assets given up, shares issued or liabilities assumed at the date of acquisition plus costs
directly attributable to the acquisition.
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The Groups share of the associates post-acquisition profits or losses is recognized in the
income statement, and its share of post-acquisition movement in reserves is recognized in other
reserves. Cumulative post-acquisition movements are adjusted against the carrying amount of the
investment. When the Groups shares of losses in an associate equals or exceeds its interest in
the associate, including any other unsecured receivables, the Group does not recognize further
losses, unless it has incurred obligations or made payments on behalf of the associate.The Groups investment in associates includes goodwill identified on acquisition.The carrying value of an associate is reviewed on a regular basis and, if an impairment in
the carrying value has occurred, it is written off in the period in which such impairment is
identified.Unrealized gains on transactions between the Group and its associates are eliminated to the
extent of the Groups interest in the associates. Unrealized losses are also eliminated and may
provide evidence of an impairment that should be recognized.Accounting policies of associates have been reviewed to ensure consistency with the policies
adopted by the Group.(iii)
    
    Joint venturesare those entities in which the Group holds a interest and which is
jointly controlled by the Group and one or more ventures under a contractual arrangement. The
Groups interest in jointly controlled entities is accounted for by proportionate consolidation.
Under this method, the Group includes its share of the joint ventures individual income and
expenses, assets and liabilities and cash flows on a line-by-line basis with similar items in the
Groups financial statements.The Group recognizes the portion of gains or losses on the sale of assets by the Group to the
joint venture that is attributable to the other ventures. The Group does not recognize its share
of profits or losses from the joint venture that result from the purchase of assets by the Group
from the joint venture until it resells the assets to an independent party. However, if a loss on
the transaction provides evidence of a reduction in the net realizable value of current assets or
an impairment loss, the loss is recognized immediately.(iv)
    
    Special purpose entities (SPEs)are those undertakings that are created to satisfy
specific business needs of the Group, These are consolidated where the Group has the right to the
majority of the benefits of the SPE and/or is exposed to the majority of the risk thereof. SPEs
are consolidated in the same manner as subsidiaries when the substance of the relationship
indicates that the SPE is controlled by the Group.(v)
    
    Transactions with non-controlling interests.The Group applies a policy of treating
transactions with minority interests as transactions with equity owners of the Group. For
purchases from non-controlling interests, the difference between any consideration paid and the
relevant share acquired of the carrying value of net assets of the subsidiary is recorded in
equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
 2.3
    
    Foreign currency transactions
 (i)
    
    Functional and presentation currency:Items included in the financial statements of each
of the Groups entities are measured using the currency of the primary economic environment in
which the entity operates (the functional currency).For translation of the Rand financial statement items to US dollar, the average of R9.00
(2008: R7.26; 2007:R7.20) per US$1 was used for income statement items (unless this average was
not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction
dates, in which case these items were translated at the rate on the date of the transactions) and
the closing rate of R7.72 (2008: R7.80) per US$1 for asset and liability items. Equity items were
translated at historic rates.References to A$ refers to Australian currency, R to South African currency, $ or US$
to United States currency and K or Kina to Papua New Guinean currency.
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(ii)
    
    Transactions and balances:Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the
translation to year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognized in the income statement. These transactions are included in the
determination of other expenses  net.Changes in the fair value of monetary securities denominated in a foreign currency classified
as available-for-sale are analyzed between translation differences resulting from changes in the
amortized cost of the security, and other changes in the carrying amount of the security.
Translation differences are recognized in profit or loss, and other changes in carrying amount are
recognized in other reserves.Translation differences on non-monetary financial assets and liabilities are reported as part
of fair value gains or losses. Translation differences on non-monetary financial assets and
liabilities such as equities held at fair value through profit or loss are recognized in profit or
loss as part of the fair value gain or loss. Translation differences on non-monetary financial
assets such as equities classified as available-for-sale are included in other comprehensive
income.(iii)
    
    Group companies:The results and financial position of all Group entities (none of
which has the currency of a hyperinflationary economy) that have a functional currency different
from the presentation currency are translated into the presentation currency as follows:
 a) assets and liabilities for each balance sheet presented are translated at the closing rate
at the date of that balance sheet;b) income and expenses for each income statement are translated at average exchange rates
(unless this average is not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are translated at the rate
on the date of the transactions);c) all resulting exchange differences are recognized as a separate component of other
reserves; andd) equity items are translated at historic rates.
 On consolidation, exchange differences arising from the translation of the net investment in
foreign operations, and of borrowings and other currency instruments designated as hedges of such
investments, are taken to other reserves. When a foreign operation is sold or the loans included
in the net investment in foreign operations are repaid or partially repaid, exchange differences
that were recorded in equity are recognized in profit or loss in the period in which the sale or
repayment takes place.Goodwill and fair value adjustments arising on the acquisition of a foreign operation are
treated as assets and liabilities of the foreign operation and translated at the closing rate.
 2.4
    
    Segmental reportingOperating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision-maker. The chief operating decision-maker has been identified as
the executive committee. The accounting policies of the segments are the same as those described
in the accounting policy notes to the financial statements.2.5
    
    Property, plant and equipment
 (i)
    
    Mining assetsincluding mine development costs and mine plant facilities are initially
recorded at cost, where after it is measured at cost less accumulated amortization and impairment.At the Groups surface mines, when it has been determined that a mineral property can be
economically developed as a result of establishing proven and probable reserves, costs incurred to
develop the property are capitalized as incurred until the mine is considered to have moved into
the production phase. These costs include costs to further delineate the ore body and remove
overburden to initially expose the ore body. Stripping costs incurred during the production phase
to remove waste ore are deferred and charged to production costs on the basis of the average
life-of-mine stripping ratio. The average stripping ratio is calculated as the number of tonnes of
waste material removed per tonne of ore mined. The average life-of-mine ratio is revised annually
in the light of additional knowledge and change in estimates. The cost of excess stripping is
capitalized as mine development costs when the actual stripping ratio exceeds the average life of
mine stripping ratio. Where the average life of mine stripping ratio exceeds the actual stripping
ratio, the cost is charged to the income statement.At the Groups underground mines, all costs incurred to develop the property, including costs
to access specific ore blocks or other areas of the underground mine, are capitalized to the
extent that such costs will provide future economic benefits as a result of establishing proven
and probable reserves associated with specific ore blocks or areas of operations. These costs
include the cost of shaft sinking and access, the costs of building access ways, lateral
development, drift development, ramps, box cuts and other infrastructure development.
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During the development stage, the Group may enter into arrangements whereby it agrees to
transfer a part of its mineral interest in consideration for an agreement by another party (the
farmee) to meet certain expenditure which would otherwise have to be undertaken by the Group. Such
arrangements, referred to as farm-in transactions, are accounted for as executory contracts 
particularly when the expenditures to be incurred by the farmee are discretionary in nature, and
the mineral interest to be transferred may vary depending upon such discretionary spend. At the
date of completion of each partys obligations under the farm-in arrangement, the Group
derecognizes the proportion of the mining assets and liabilities associated with the joint venture
that it has sold to the farmee, and recognizes its interest in the capital expenditure
(consideration received) at fair value within operating assets. The difference between the net
disposal proceeds and the carrying amount of the asset disposed of is recognized in profit or
loss.Borrowing costs are capitalized to the extent that they are directly attributable to the
acquisition and construction of qualifying assets. Qualifying assets are assets that take a
substantial time to get ready for their intended use. These costs are capitalized until the asset
moves into the production phase. Other borrowing costs are expensed.The net assets of operations placed on care and maintenance are impaired to their recoverable
amount. Expenditure on the care and maintenance of these operations is charged against income, as
incurred.Where a depreciable asset is used in the construction or extension of a mine, the
depreciation is capitalized against the mines cost.(ii)
    
    Non-mining assets:Land is shown at cost and not depreciated. Other non-mining fixed
assets are shown at cost less accumulated depreciation and accumulated impairment losses.(iii)
    
    Undeveloped propertiesare initially valued at the fair value of resources obtained
through acquisitions. The carrying value of these properties are annually tested for impairment.
Once development commences, these properties are transferred to mining properties and accounted
for in accordance with the related accounting policy.(iv)
    
    Mineral and surface use rights represent mineral and surface use rights for parcels of
land both owned and not owned by the Group. Mineral and surface rights include acquired mineral
use rights in production, development and exploration phase properties. The amount capitalized
related to a mineral and surface right represents its fair value at the time it was acquired,
either as an individual asset purchase or as part of a business combination, and is recorded at
cost of acquisition.Production phase mineral interests represent interests in operating properties that contain
proven and probable reserves. Development phase mineral interests represent interests in
properties under development that contain proven and probable reserves. Exploration phase mineral
interests represent interests in properties that are believed to potentially contain (i) other
mineralized material such as inferred material within pits; measured, indicated and inferred
material with insufficient drill spacing to qualify as proven and probable reserves; (ii)
around-mine exploration potential such as inferred material not immediately adjacent to existing
reserves and mineralization but located within the immediate mine infrastructure; (iii) other
mine-related exploration potential that is not part of measured, indicated or inferred material
and is comprised mainly of material outside of the immediate mine area; or (iv) greenfield
exploration potential that is not associated with any production, development or exploration phase
property as described above.The Groups mineral use rights are enforceable regardless of whether proven or probable
reserves have been established. In certain limited situations, the nature of a use changes from an
exploration right to a mining right upon the establishment of proven and probable reserves. The
Group has the ability and intent to renew mineral use rights where the existing term is not
sufficient to recover all identified and valued proven and probable reserves and/or undeveloped
mineral interests.(v)
    
    Leased assets:The Group leases certain property, plant and equipment. Leases of
property, plant and equipment where the Group has substantially all the risks and rewards of
ownership are classified as finance leases. The assets are capitalized at the leases commencement
at the lower of the fair value of the leased property and the present value of the minimum lease
payments.Finance lease payments are allocated using the rate implicit in the lease, which is included
in finance costs, and the capital repayment, which reduces the liability to the lessor. The
corresponding rental obligations, net of finance charges, are included in Borrowings, with the
current portion included under Current Liabilities.Capitalized lease assets are depreciated over the shorter of their estimated useful lives and
the lease terms.(vi)
    
    Depreciation and amortization of mining assets:Depreciation and amortization of
mineral property interests, mineral and surface rights, mine development costs and mine plant
facilities are computed principally by the units of production method based on estimated proved
and probable reserves. Changes in managements estimates of the quantities of economically
recoverable reserves impact amortization and depreciation on a prospective basis.
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Costs incurred and capitalized to enable access to specific ore blocks or areas of the mine,
and which only provide an economic benefit over the period of mining that ore block or area, are
amortized using the units-of-production method where the denominator is the proven and probable
reserves within that ore block or area.If capitalized underground development costs provide an economic benefit over the entire
life-of-mine, the costs are amortized using the unit-of-production method, where the denominator
is the total accessible proven and probable reserves.Proved and probable ore reserves reflect estimated quantities of economically recoverable
reserves which can be recovered in future from known mineral deposits. Amortization is first
charged on mining ventures from the date on which the mining ventures are considered to have moved
into the production phase.(vii)
    
    Depreciation and amortization of non-mining fixed assets:Other non-mining fixed assets
are depreciated on a straight line basis over their estimated useful lives as follows:
 
    
    Vehicles at 20% per year;
    
    Computer equipment at 33.3% per year; and
    
    Furniture and equipment at 16.67% per year.
 The assets residual values and useful lives are reviewed, and adjusted if appropriate, at
each balance sheet date.Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in the income statement.(viii)
    
    Depreciation and amortization of mineral and surface use rights:Mineral rights
associated with production phase mineral interests are amortized over the life of mine using the
units-of-production method in order to match the amortization with the expected underlying future
cash flows. Mineral interests associated with development and exploration phase mineral interests
are not amortized until such time as the underlying property is converted to the production stage.For details on the Groups accounting policy on impairments, refer to note 2.8.
 2.6
    
    Exploration costsThe Group expenses all exploration and evaluation expenditures until the directors conclude
that a future economic benefit is more likely to be realized than not, i.e. probable. The
information that the directors use to make that determination depends on the level of exploration
as well as the degree of confidence in the ore body.Exploration and evaluation expenditure on greenfield sites, being those where the Group does
not have any mineral deposits which are already being mined or developed, is expensed as incurred
until a final feasibility study has been completed, after which the expenditure is capitalized
within development costs if the final feasibility study demonstrates that future economic benefits
are probable.Exploration and evaluation expenditure on brownfield sites, being those adjacent to mineral
deposits which are already being mined or developed, is expensed as incurred until the directors
are able to demonstrate that future economic benefits are probable through the completion of a
prefeasibility study, after which the expenditure is capitalized as a mine development cost. A
prefeasibility study consists of a comprehensive study of the viability of a mineral project
that has advanced to a stage where the mining method, in the case of underground mining, or the
pit configuration, in the case of an open pit, has been established, and which, if an effective
method of mineral processing has been determined, includes a financial analysis based on
reasonable assumptions of technical, engineering, operating economic factors and the evaluation of
other relevant factors. The prefeasibility study, when combined with existing knowledge of the
mineral property that is adjacent to mineral deposits that are already being mined or developed,
allows the directors to conclude that it is more likely than not that the Group will obtain future
economic benefit from the expenditures.Exploration and evaluation expenditure relating to extensions of mineral deposits which are
already being mined or developed, including expenditure on the definition of mineralization of
such mineral deposits, is capitalized as a mine development cost following the completion of an
economic evaluation equivalent to a feasibility study. This economic evaluation is distinguished
from a feasibility study in that some of the information that would normally be determined in a
feasibility study is instead obtained from the existing mine or development. This information when
combined with existing knowledge of the mineral property already being mined or developed allow
the directors to conclude that more likely than not the Group will obtain future economic benefit
from the expenditures.Costs relating to property acquisitions are also capitalized. These costs are capitalized
within development costs.
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2.7
    
    Intangible assetsIntangible assets consist of all identifiable non-monetary assets without physical substance.
They are stated at cost less accumulated amortization and accumulated impairment losses, if any.
The following are the main categories of intangible assets:
 i)
    
    Intangible assets with an indefinite useful lifeIntangible assets with an indefinite useful life are not amortized but tested for impairment
on an annual basis. Goodwill represents the excess of the cost of an acquisition over the fair
value of the Groups share of the net assets of the acquired subsidiary, associate, joint venture
or business at the date of acquisition. Goodwill on acquisition of subsidiaries, joint ventures
and businesses are included in intangible assets. Goodwill on acquisition of associates is
included in investments in associates and tested for impairment as part of the overall balance.Goodwill is tested annually for impairment and carried at cost less accumulated impairment
losses. Impairment losses on goodwill are not reversed. The impairment testing is performed on
June 30.Goodwill is allocated to cash-generating units for the purpose of impairment testing. The
allocation is made to those cash-generating units or groups of cash-generating units that are
expected to benefit from the business combination in which the goodwill arose. If the composition
of one or more cash-generating units to which goodwill has been allocated changes due to a
re-organization, the goodwill is re-allocated to the units affected.The gain or loss on disposal of an entity includes the carrying amount of goodwill relating
to the entity sold.(ii)
    
    Intangible assets with a finite useful lifeAcquired computer software licenses are capitalized on the basis of costs incurred to acquire
and bring to use the specific software. Intangible assets with a finite useful life are amortized
on a straight line basis of over their estimated useful lives, which are reviewed annually, as
follows:
 
    
    Computer software at 20% per year.
 2.8
    
    Impairment of non-financial assetsAssets that have an indefinite useful life are not subject to amortization and are tested
annually for impairment.Assets that are subject to amortization are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable.An impairment loss is recognized for the amount by which the assets carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an assets fair value less costs
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash generating units). Each
operating shaft, along with allocated common assets such as plants and administrative offices, is
considered to be a cash generating unit as each shaft is largely independent from the cash flows
of other shafts and assets belonging to the Group.The assets recoverable amount is generally determined using discounted estimated future cash
flows. Future cash flows are estimated based on quantities of recoverable minerals, expected gold
prices (considering current and historical prices, price trends and related factors), production
levels and cash costs of production, all based on life-of-mine plans.The term recoverable minerals refers to the estimated amount of gold that will be obtained
from proven and probable reserves and all related exploration stage mineral interests (except for
other mine-related exploration potential and greenfields exploration potential discussed
separately below) after taking into account losses during ore processing and treatment. Estimates
of recoverable minerals from such related exploration stage mineral interests will be risk
adjusted based on managements relative confidence in such materials. In estimating future cash
flows, assets are grouped at the lowest level for which there are identifiable cash flows that are
largely independent of cash flows from other asset groups. With the exception of other
mine-related exploration potential and greenfields exploration potential,
estimates of future undiscounted cash flows are included on an area of interest basis, which
generally represents an individual operating mine, even if the mines are included in a larger mine
complex.In the case of mineral interests associated with other mine-related exploration potential and
greenfields exploration potential, cash flows and fair values are individually evaluated based
primarily on recent exploration results and recent transactions involving sales of similar
properties, if any. Assumptions underlying future cash flow estimates are subject to significant
risks and uncertainties.Non-financial assets other than goodwill that suffered an impairment are reviewed for
possible reversal of the impairment at each reporting date. Reversal of impairments is also
considered when there is objective evidence to indicate that the asset is no longer impaired.
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2.9
    
    Financial instrumentsFinancial instruments are initially measured at fair value when the Group becomes a party to
their contractual arrangements. Transaction costs are included in the initial measurement of
financial instruments, with the exception of financial instruments classified as at fair value
through profit or loss. The subsequent measurement of financial instruments is discussed below.A financial asset is derecognized when the right to receive cash flows from the asset has
expired or the Group has transferred its rights to receive cash and either (a) has transferred
substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the assets.A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or expires.On derecognition of a financial asset, the difference between the carrying amount and the sum
of the consideration received and any cumulative gain or loss recognized in equity is recognized
in profit or loss.On derecognition of a financial liability, the difference between the carrying amount of the
liability extinguished or transferred to another party and the amount paid is recognized in profit
or loss.Financial assetsThe Group classifies its financial assets in the following categories: loans and receivables,
available-for-sale, held-to-maturity and at fair value through profit or loss. The classification
depends on the purpose for which the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition.Purchases and sales of financial assets are recognized on trade-date, the date on which the
Group commits to purchase or sell the asset.
 (i)
    
    Loans and receivables,are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise when the Group provides money, goods
or services directly to a debtor with no intention of trading the receivable. Loans and
receivables are subsequently measured at amortized cost using the effective interest method. They
are included in current assets, except for those with maturities greater than 12 months after the
balance sheet date which are classified as non-current assets. Loans and receivables include trade
and other receivables (excluding VAT and prepayments), restricted cash and cash and cash
equivalents.Cash and cash equivalentsCash and cash equivalents are defined as cash on hand, deposits held at call with banks and
short-term highly liquid investments with original maturities of three months or less. Cash and
cash equivalents exclude restricted cash (discussed below).Restricted cashRestricted cash consists of cash held for guarantees and performance bonds related to
environmental rehabilitation.Trade and other receivablesTrade and other receivables are recognized initially at fair value and subsequently measured
at amortized cost using the effective interest method, less provision for impairment. A provision
for impairment of receivables is established when there is objective evidence that the Group will
not be able to collect all amounts due according to the original terms of receivables. Significant
financial difficulties of the debtor, probability that the debtor will enter bankruptcy or
financial reorganization, and default or delinquency in payments are considered indicators that
the trade receivable is impaired. The amount of the provision is the difference between the
assets carrying amount and the present value of estimated future cash flows, discounted at the
effective interest rate. The carrying amount of the asset is reduced through the use of a
provision for impairment (allowance account) and the amount of the loss is recognized in the
income statement. When a trade receivable is uncollectible, it is written off against the
allowance account for trade receivables. Subsequent recoveries of amounts previously written off
are credited in the income statement.(ii)
    
    Available-for-sale financial assets, are non-derivatives that are either designated in
this category or not classified in any of the other categories. They are included in non-current
assets unless management intends to dispose of the investment within 12 months of the balance
sheet date.
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Available-for-sale financial assets are subsequently carried at fair value. Changes in the
fair value of monetary securities denominated in a foreign currency and classified as
available-for-sale are analyzed between translation differences resulting from changes in
amortized cost of the security and other changes in the carrying amount of the security. The
translation differences on monetary securities are recognized in profit or loss, while translation
differences on non-monetary securities are recognized in other reserves. Changes in the fair value
of monetary and non-monetary securities classified as available-for-sale are recognized in other
reserves.When securities classified as available-for-sale are sold or impaired, the accumulated fair
value adjustments recognized in other comprehensive income are reclassified in the income
statement as profit or loss on sale of listed investments. Dividends on available-for-sale equity
instruments are recognized in the income statement as part of investment income when the Groups
right to receive payments is established.The fair values of quoted investments are based on current bid prices. If the value for a
financial instrument cannot be obtained from an active market, the Group establishes fair value by
using valuation techniques. These include the use of recent arms length transactions, reference
to other instruments that are substantially the same, discounted cash flow analysis, and option
pricing models refined to reflect the issuers specific circumstances. The valuation techniques
make maximum use of market inputs and rely as little as possible on entity-specific inputs.The Group assesses at each balance sheet date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. In the case of equity securities
classified as available-for-sale, a significant or prolonged decline in the fair value of the
security below its cost is considered in determining whether the securities are impaired. If, in
the opinion of the directors, permanent diminution in value exists for available-for-sale
financial assets, the cumulative loss  measured as the difference between the acquisition cost
and the current fair value, less any impairment loss on that financial asset previously recognized
in profit or loss  is removed from other reserves and recognized in the income statement.
Subsequent increases in the fair value are recognized in equity  impairment losses recognized in
the income statement on equity instruments are not reversed through the income statement.(iii)
    
    Held-to-maturity investmentsare non-derivative financial assets with fixed or
determinable payments and fixed maturities that the Groups management has the positive intention
and ability to hold to maturity. The Groups held-to-maturity investments are subsequently
measured at amortized cost using the effective interest method.The restricted investments held by the trust funds (refer note 20) are classified as
held-to-maturity investments.(iv)
    
    Financial assets at fair value through profit or losshave two sub-categories: financial
assets held-for-trading, and those designated at fair value through profit and loss at inception.
A financial asset is classified in this category if acquired principally for the purpose of
selling in the short term or if so designated by management in terms of specified criteria.
Derivatives are also categorized as held-for-trading unless they are designated as hedges. Assets
in this category are classified as current assets if they are either held-for-trading or are
expected to be realized within 12 months of the balance sheet date. These assets are subsequently
measured at fair value with gains or losses arising from changes in fair value recognized in the
income statement in the period in which they arise.Financial liabilitiesBorrowingsBorrowings are initially recognized at fair value net of transaction costs incurred and
subsequently measured at amortized cost, comprising original debt less principal payments and
amortization, using the effective yield method.The fair value of the liability portion of a convertible bond is determined using a market
interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an
amortized cost basis until extinguished on conversion or maturity of the bonds. The remainder of
the proceeds are allocated to the conversion option. This is recognized and included in equity,
net of income tax effects.Borrowings are classified as current liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months after the balance sheet date.Trade and other payablesTrade and other payables are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method.
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2.10
    
    InventoriesInventories which include bullion on hand, gold in process, ore stockpiles and stores and
materials, are measured at the lower of cost and net realizable value after appropriate allowances
for redundant and slow moving items. Cost of bullion and gold in process is determined by
reference to production cost, including amortization and depreciation at the relevant stage of
production. Ore stockpiles are valued at average production cost. Stockpiles are classified as a
non-current asset where the stockpile exceeds current processing capacity.Stores and materials consist of consumable stores and are valued at weighted average cost.Net realizable value is the estimated selling price in the ordinary course of business less
the estimated cost of completion and the estimated cost necessary to perform the sale.Gold in process inventories represent materials that are currently in the process of being
converted to a saleable product. Conversion processes vary depending on the nature of the ore and
the specific mining operation, but include mill in-circuit, leach in-circuit, flotation and column
cells, and carbon in-pulp inventories. In-process material is measured based on assays of the
material fed to process and the projected recoveries at the respective plants. In-process
inventories are valued at the average cost of the material fed to process attributable to the
source material coming from the mine, stockpile or leach pad plus the in-process conversion costs,
including the applicable depreciation relating to the process facility, incurred to that point in
the process. Bullion on hand and gold in process at certain of the underground operations include
gold in lockup which can be reliably measured, and generally this is from the smelter onwards.
Where mechanized mining is used in underground operations, in-progress material is accounted for
at the earliest stage of production when reliable estimates of quantities and costs are capable of
being made, normally from when ore is broken underground. Given the varying nature of the Groups
open pit operations, gold in process represents either production in broken ore form or production
from the time of placement on heap leach pads.2.11
    
    Non-current assets or disposal group held-for-sale and discontinued operationsA non-current asset or disposal group (a business grouping of assets and their related
liabilities) is designated as held-for-sale when its carrying amount will be recovered principally
through a sale transaction rather than through continuing use. The classification as
held-for-sale of a non-current asset or disposal group occurs when it is available for immediate
sale in its present condition and the sale is highly probable. A sale is considered highly
probable if management is committed to a plan to sell the non-current asset or disposal group, an
active divestiture programme has been initiated, the non-current assets or disposal group is
marketed at a price reasonable to its fair value and the disposal will be completed within one
year from classification.Upon classification of a non-current asset or disposal group as held-for-sale, it is reviewed
for impairment. The impairment charged to the income statement is the excess of the carrying
value of the non-current asset or disposal group over its expected net selling price (fair value
less costs to sell). At each subsequent reporting date, the carrying values are remeasured for
possible impairment. A gain is recognized for any subsequent increase in net selling price but
not in excess of the cumulative impairment loss already recognized.No depreciation is provided on non-current assets from the date they are classified as
held-for-sale.When a disposal group is classified as held-for-sale it is also necessary to assess whether
or not the criteria for discontinued operations are met. If the criteria are met, the results of
the disposal group are classified as discontinued operations in the income statement and the
comparative amounts restated for all periods presented.If a non-current asset or disposal group is classified as held-for-sale but the criteria for
classification as held-for-sale are no longer met, the disclosure of such non-current asset or
disposal group as held-for-sale is ceased.On ceasing such classification, the non-current assets are reflected at the lower of:
 
    
    the carrying amount before classification as held for sale adjusted for any depreciation or
amortization that would have been recognized had the assets not been classified as held-for-sale;
or
    
    the recoverable amount at the date the classification as held-for-sale ceases. The
recoverable amount is the amount at which the asset would have been recognized after the
allocation of any impairment loss arising on the cash generating unit as determined in accordance
with the groups policy on impairment of non-financial assets.
 Any adjustment required to be made on reclassification is charged to the income statement on
reclassification, and included in income from continuing operations.Where the disposal group was also classified as a discontinued operation, the subsequent
classification from held-for-sale also requires that the discontinued operation be included in
continuing operations. Comparative information in the income statement and cash flow note
disclosures relating to the classification as a discontinued operation is re-presented
accordingly. Comparative information in the balance sheet is not re-presented for this change.
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2.12
    
    Environmental obligationsEstimated long term environmental obligations, comprising pollution control, rehabilitation
and mine closure, are based on the Groups environmental management plans in compliance with
current technological, environmental and regulatory requirements.Based on disturbances to date, the net present value of expected rehabilitation cost
estimates are recognized and provided for in full in the financial statements. The estimates are
reviewed annually and are discounted using a pre-tax risk-free rate that is adjusted to reflect
the current market assessments of the time value of money and the risks specific to the
obligation.Annual changes in the provision consist of finance costs relating to the change in the
present value of the provision and inflationary increases in the provision estimate, as well as
changes in estimates. The present value of environmental disturbances created are capitalized to
mining assets against an increase in the rehabilitation provision. Rehabilitation projects
undertaken, included in the estimates are charged to the provision as incurred. The cost of
ongoing current programmes to prevent and control pollution is charged against income as incurred.
Over time, the liability is increased to reflect an interest element, and the capitalized cost is
depreciated over the life of the related asset.2.13
    
    Environmental trust fundsContributions are made to the Groups trust funds, created in accordance with statutory
requirements, to fund the estimated cost of pollution control, rehabilitation and mine closure at
the end of the life of the Groups mines. Contributions are determined on the basis of the
estimated environmental obligation over the life of the mine. The trusts are consolidated into the
Group. Income earned on monies paid to environmental trust funds is accounted for as investment
income. The funds contributed to the trusts plus growth in the trust funds are included under
restricted investments on the balance sheet.2.14
    
    ProvisionsProvisions are recognized when the Group has a present legal or constructive obligation as a
result of past events where it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate of the amount of the
obligation can be made.The amount recognized as a provision is the present value of the best estimate of the
expenditure required to settle the present obligation at balance sheet date. This estimate takes
into account the associated risks and uncertainties. The increase in the provision due to the
passage of time is recognized as interest expense.Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate. If it is no longer probable that an outflow of economic benefits will be required, the
provision is reversed.2.15
    
    Current and deferred taxationThe current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the balance sheet date in the countries where the Group operates and
generates taxable income. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulations is subject to interpretation and
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.The Group follows the comprehensive liability method of accounting for deferred tax using the
balance sheet approach. Under this method deferred income taxes are recognized for the tax
consequences of temporary differences by applying expected tax rates to the differences between
the tax base of all assets or liabilities and its balance sheet carrying amount. Deferred tax is
charged to the income statement, except to the extent that deferred tax arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and does
not affect the accounting or taxable profit or loss at the time of the transaction. The effect on
deferred tax of any changes in tax rates is recognized in the income statement, except to the
extent that it relates to items previously charged or credited directly to equity.The principal temporary differences arise from amortization and depreciation on property,
plant and equipment, provisions, post retirement benefits, unutilized tax losses and unutilized
capital allowances carried forward. Deferred tax assets relating to the carry forward of
unutilized tax losses and unutilized capital allowances are recognized to the extent that it is
probable that future taxable profit will be available against which the unutilized tax losses and
unutilized capital allowances can be utilized.Deferred income tax is provided on temporary differences arising from investments in
subsidiaries, joint ventures and associates, except where the timing of the reversal of the
temporary difference is controlled by the Group and it is probable that the temporary difference
will not reverse in the foreseeable future.2.16
    
    Employee benefits
 (i)
    
    Pension and provident plansare funded through annual contributions. The Groups
contributions to the defined contribution pension and provident plans are charged to the income
statement in the year to which they relate. The Groups liability is limited to its annually
determined contributions.
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(ii)
    
    Medical plans:The Group provides medical cover to current employees and certain
retirees through certain funds. The medical accounting costs for the defined benefit plan are
assessed using the projected unit credit method. The health care obligation is measured as the
present value of the estimated future cash outflows using market yields consistent with the term
and risks of the obligation. Actuarial gains and losses as a result of these valuations are
recognized in the income statement at revaluation date. The future liability for current and
retired employees and their dependents is accrued in full based on actuarial valuations obtained
annually.(iii)
    
    Equity compensation benefits:The Group operates an equity-settled, share-based
payments plan, where the Group grants share options to certain employees. Equity share-based
payments are measured at fair value of the equity instruments at the date of the grant. The
share-based payments are expensed over the vesting period, based on the Groups estimate of the
 shares that are expected to eventually vest. The Group used an appropriate option pricing model in
determining the fair value of the options granted. Non-market vesting conditions are included in
assumptions about the number of options that are expected to vest. At each balance sheet date,
the estimates of the number of options that are expected to become exercisable are revised. The
impact of the revision of original estimates, if any, are recognized in the income statement, with
a corresponding adjustment to equity. The proceeds received net of any directly attributable
transaction costs are credited to share capital (nominal value) and share premium when the options
are exercised.(iv)
    
    Termination benefitsare payable when employment is terminated before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these
benefits. The Group recognizes termination benefits when it is demonstrably committed to either:
terminating the employment of current employees according to a detailed formal plan without
possibility of withdrawal; or providing termination benefits as a result of an offer made to
encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date
are discounted to present value.(v)
    
    Leave pay:The Group accrues for the cost of the leave days granted to employees during
the period in which the leave days accumulate.
 2.17
    
    Share capitalOrdinary shares are classified as equity. Incremental costs directly attributable to the
issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.2.18
    
    LeasesLeases in which a significant portion of the risk and rewards of ownership are retained by
the lessor are classified as operating leases. Payments made under operating leases (net of any
incentives received from the lessor) are charged to the income statement on a straight-line basis
over the period of the lease.For the Groups policy on finance leases, refer to note 2.5 (v).2.19
    
    Revenue recognition
 (i)
    
    Revenuearising from gold sales is recognized when the price is determinable, the product
has been delivered in accordance with the terms of the contract, the significant risks and rewards
of ownership have been transferred to the customer and collection of the sales price is reasonably
assured. These criteria are typically met when the gold arrives at the refinery.Revenue further excludes value-added tax. Revenues from silver and other by-products sales
are credited to production costs as a by-product credit.(ii)
    
    Interest income:Interest is recognized on a time proportion basis, taking into account
the principal outstanding and the effective rate over the period to maturity, when it is
determined that such income will accrue to the Group.(iii)
    
    Dividend incomeis recognized when the shareholders right to receive payment is
established. This is recognized at the last date of registration.
 2.20
    
    Dividends declaredDividends declared are recognized in the period in which they are approved by the
shareholders. Dividends are payable in South African Rand.
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3
    
    Critical accounting estimates and judgmentsThe preparation of the financial statements in conformity with IFRS requires the Groups
management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.Estimates and judgments are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under
the circumstances.The resulting accounting estimates may differ from actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed below:
 3.1
    
    Impairment of mining assetsThe recoverable amount of mining assets is generally determined utilizing discounted future
cash flows. Management also considers such factors as the quality of the individual orebody and
country risk in determining the fair value.Key assumptions for the calculations of the mining assets recoverable amounts are the
forward gold price and the annual life of mine plans. In determining the gold price to be used,
management assess the long term views of several reputable institutions on the gold price and
based on this, derive the forward gold price. The life of mine plans are based on the proven and
probable reserves as included in the Reserve Declaration, which are determined in terms of SAMREC
and JORC.During the year under review, the Group calculated the recoverable amounts (generally fair
value less costs to sell) based on updated life of mine plans, a gold price of R225 000 per
kilogram and a discount rate of 9.34% (2008: R180 000 per kilogram and a 11.36% discount rate;
2007: R115 000 and a discount rate of 9.18%). Cash flows used in the impairment calculations are
based on life of mine plans which exceed five years for the majority of the mines. Refer to note 5
for details of impairments recorded.Should managements estimate of the future not reflect actual events, further impairments may
be identified. Factors affecting the estimates include:
 
    
    changes to proven and probable ore reserves;
    
    the grade of the ore reserves may vary significantly from time to time;
    
    review of strategy;
    
    differences between actual commodity prices and commodity price assumptions;
    
    unforeseen operational issues at the mines;
    
    changes in capital, operating mining, processing and reclamation costs.
 It is impracticable to disclose the extent of the possible effects of the changes in
assumptions for the forward gold price and life of mine plans at June 30, 2009, as these
assumptions are inextricably linked.3.2
    
    Impairment of investment in associateThe investments in associates are evaluated for impairment by comparing the entire carrying
value of the investment to the recoverable amount, which is the higher of value in use or fair
value less costs to sell. In calculating
fair value less cost to sell, the cash flows from disposal are looked at with reference to the
closing share price at year end.3.3
    
    Valuation of available-for-sale financial assetsIf the value of financial instruments cannot be obtained from an active market, the Group
establishes fair value by using valuation techniques. These include the use of recent arms length
transactions, reference to other instruments that are substantially the same, discounted cash flow
analysis and option pricing models refined to reflect the issuers specific circumstances. When
considering indications of an impairment, management considers a prolonged decline to be longer
than 12 months. The significance of the decline is assessed for each security individually.3.4
    
    Estimate of exposure and liabilities with regard to rehabilitation costsEstimated long term environmental obligations, comprising pollution control, rehabilitation
and mine closure, are based on the Groups environmental management plans in compliance with
current technological, environmental and regulatory requirements.Management used an inflation rate of 6% (2008: short-term (two years): 9% and long-term: 6%;
2007: 5%) and the expected life of the mines according to the life-of-mine plans in the
calculation of the estimated net present value of the rehabilitation liability. The discount rates
used for the calculation are dependant on the shafts life of mine and are as follows: for 12
months  6.75% (2008: 12.25%; 2007: 13.77%); for 1 - 5 years  8.25% (2008: 11.75%; 2007:10.61%);
for 5 - 9 years  8.25% (2008: 10.5%; 2007: 9.49%) and for 10 years or more  8.75% (2008: 10.25%;
2007: 9.25%). These estimates were based on recent yields determined on government bonds.
 F-22




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##### Table of Contents



3.5
    
    Estimate of employee benefit liabilitiesAn updated actuarial valuation is carried out at the end of each financial year. Assumptions
used to determine the liability included a discount rate of 10%, no increases in employer
subsidies (in terms of the agreement) and mortality rates according to the SA 1956/62 mortality
table ( SA a mf tables) (60 years) and a medical inflation rate of 7.8% (2008: discount rate of
12%, 60 years and 9.8% inflation rate; 2007: discount rate of 9%, 60 years and 6.34% inflation
rate).Management determined the discount rate by assessing financial instruments with similar terms
to the liability. The decreases to the discount rate and medical inflation rate are similar to
changes in interest and inflation rates in South Africa.3.6
    
    Estimate of taxationThe Group is subject to income tax in numerous jurisdictions. Significant judgment is
required in determining the worldwide provision for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain during the ordinary course of
business. The Group recognizes liabilities for anticipated tax audit issues based on estimates of
whether additional taxes will be due. Where the final tax outcome of these matters are different
from the amounts that were initially recorded, such differences will impact the income tax and
deferred tax provisions in the period in which such determination is made.Management has to exercise judgment with regards to deferred tax assets. Where the
possibility exists that no future taxable income may flow against which these assets can be
offset, the deferred tax assets are not raised.3.7
    
    Fair value of share-based paymentsThe fair value of options granted are being determined using either a binominal,
Black-Scholes or a Monte Carlo valuation model. The significant inputs into the model are: vesting
period, risk free interest rate, volatility, price on date of grant and dividend yield. (Refer to
note 36 for detail on each of the share option schemes.)3.8
    
    Impairment of goodwillDue to the wasting nature of mining assets and the finite life of a mines reserves, the
allocation of goodwill to a shaft will eventually result in an impairment charge for the goodwill.
The Group tests annually whether separately identifiable goodwill has suffered any impairment, in
accordance with the accounting policy stated in note 2.8. These calculations require the use of
estimates as stated in note 3.1.3.9
    
    Gold in lock-upGold in lock-up in certain plants is estimated based on the calculated plant call factor.
Plant call factor is the efficiency measurement of the percentage of gold extracted from the ore.3.10
    
    Assessment of contingenciesContingencies will only realize when one or more future events occur or fail to occur. The
exercise of significant judgment and estimates of the outcome of future events are required during
the assessment of the impact of such contingencies.3.11
    
    Gold mineral reservesGold mineral reserves are estimates of the amount of ounces that can be economically and
legally extracted from the Groups properties. In order to calculate the gold mineral reserves,
estimates and assumptions are required about a range of geological, technical and economic
factors, including quantities, grades, production techniques, recovery rates, production costs,
commodity prices and exchange rates.Estimating the quantities and/or grade of the reserves requires the size, shape and depth of
the orebodies to be determined by analyzing geological data such as the logging and assaying of
drill samples. This process may require complex and difficult geological judgments and
calculations to interpret the data.Because the economic assumptions used to estimate the gold mineral reserves change from year
to year, and because additional geological data is generated during the course of operations,
estimates of the mineral reserves may change from year to year. Changes in the proven and probable
reserves may affect the Groups financial results and financial position in a number of ways,
including:
 
    
    asset carrying values may be affected due to changes in estimated cash flows;
    
    depreciation and amortization charged in the income statement may change as they are
calculated on the units-of-production method; and
    
    environmental provisions may change as the timing and/or cost of these activities may be
affected by the change in mineral reserves.
 F-23




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At the end of each financial year, the estimate of proven and probable gold mineral reserve
is updated. Depreciation of mining assets is prospectively adjusted, based on these changes.3.12
    
    Production start dateVarious relevant criteria are considered in order to assess when the mine is substantially
complete and ready for its intended use and moves into the production phase. Some of the criteria
would include but are not limited to the following:
 
    
    the level of capital expenditure compared to the total project cost estimates;
    
    the ability to produce gold in a saleable form (where more than an insignificant amount of
gold has been produced); and
    
    the ability to sustain the ongoing production of gold.
 F-24




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4
    
    Financial risk managementThe Groups financial instruments expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk, cash flow interest rate risk and other
price risk), credit risk and liquidity risk. The Group may use derivative financial instruments
to hedge certain risk exposures.The Groups financial instruments are set out below:
 Available-
    
    
    
    
    
    
    Financialfor-sale
    
    
    Held-to-
    
    
    liabilities atLoans and
    
    
    financial
    
    
    maturity
    
    
    amortizedFigures in US dollar million
    
    receivables
    
    
    assets
    
    
    investments
    
    
    costAt June 30, 2009:Restricted cash
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    Restricted investments
    
    
    
    
    
    
    
    
    
    
    212
    
    
    
    Investments in financial assets
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    Trade and other receivables
    
    
    90
    
    
    
    
    
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    253
    
    
    
    
    
    
    
    
    
    
    
    Borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    47Trade and other payables
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    71At June 30, 2008:Restricted cash
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    Restricted investments
    
    
    
    
    
    
    
    
    
    
    188
    
    
    
    Investments in financial assets
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    Trade and other receivables
    
    
    87
    
    
    
    
    
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    53
    
    
    
    
    
    
    
    
    
    
    
    Borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    525Trade and other payables
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    94
 Risk management is carried out by a central treasury department (Group Treasury) under
policies approved by the Board of Directors. Group Treasury identifies, evaluates and hedges
certain selected financial risks in close co-operation with the Groups operating units. The Board
provides written principles for overall risk management, as well as written
policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk,
use of derivative financial instruments and non-derivative financial instruments, and the
investment of excess liquidity.
 (a)
    
    Market risk(i) Foreign exchange riskThe Group operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the US dollar (US$). Foreign exchange risk
arises from future commercial transactions, recognized assets and liabilities and net investments
in foreign operations. Foreign exchange risk arises when future commercial transactions or
recognized assets or liabilities are denominated in a currency that is not the entitys functional
currency. Harmonys revenues are sensitive to the ZAR/US$ exchange rate as all revenues are
generated by gold sales denominated in US$. Harmony generally does not enter into forward sales,
derivatives or other hedging arrangements to establish a ZAR/US$ exchange rate in advance for the
sale of its future gold production.The Group is exposed to foreign exchange risk arising from inter-company loans denominated in
a currency other than the functional currency of that entity (A$ and Kina). Harmony generally does
not enter into forward sales, derivatives or other hedging arrangements to manage this risk.
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Sensitivity analysisThe group has reviewed its foreign currency exposure on financial assets and financial
liabilities and has identified the following sensitivities for a 10% change in the exchange rate.
 US DOLLARFigures in million
    
    2009
    
    
    2008A$ against US$Increase by ten percent
    
    
    1
    
    
    
    3Decrease by ten percent
    
    
    (1
    )
    
    
    (3
    )Closing rate
    
    
    0.81
    
    
    
    0.96A$ against RandIncrease by ten percent
    
    
    
    
    
    
    30Decrease by ten percent
    
    
    
    
    
    
    (30
    )Closing rate
    
    
    7.72
    
    
    
    7.51Kina against A$Increase by ten percent
    
    
    17
    
    
    
    35Decrease by ten percent
    
    
    (17
    )
    
    
    (35
    )Closing rate
    
    
    2.71
    
    
    
    2.42
 (ii) Other price riskThe Group is exposed to the risk of fluctuations in the fair value of the available-for-sale
financial assets as a result of changes in market prices (other than changes in interest rates and
foreign currencies). Harmony generally does not use any derivative instruments to manage this
risk.Sensitivity analysisThe equity investments are listed on the Australian Securities Exchange. A one percent
increase in the share price at the reporting date, with all other variables held constant, would
have increased other comprehensive income by US$0.07 million (2008: US$0.1 million; an equal
change in the opposite direction would have decreased other comprehensive income by US$0.07
million (2008: US$0.1 million). The analysis is performed on the same basis for 2008.Commodity price sensitivityThe profitability of the Groups operations, and the cash flows generated by those
operations, are affected by changes in the market price of gold. Harmony generally does not enter
into forward sales, derivatives or other hedging arrangements to establish a price in advance for
the sale of future gold production.(iii) Cash flow and fair value Interest rate riskThe Groups interest rate risk arises mainly from long-term borrowings. The Group has both
fixed and variable interest rate borrowings. Fixed rate borrowings expose the Group to fair value
interest rate risk. Variable rate borrowings expose the Group to cash flow interest rate risk. The
Group has not entered into interest rate swap agreements.
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##### Table of Contents



Sensitivity analysisA change of 100 basis points in interest rates at the reporting date would have
increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes
that all other variables remain constant. The analysis is performed on the same basis for 2008.
 US DOLLARFigures in million
    
    2009
    
    
    2008Increase by 100 basis points
    
    
    
    
    
    
    3Decrease by 100 basis points
    
    
    
    
    
    
    (3
    )
 The above table excludes the fixed rate convertible bond. As it is accounted for at amortized
cost, interest rate changes do not affect reported profit or loss.(b)
    
    Credit riskCredit risk is the risk that a counterparty may default or not meet its obligations
timeously. Financial instruments, which subject the Group to concentrations of credit risk,
consist predominantly of restricted cash, restricted investments, trade and other receivables
(excluding non-financial assets) and cash and cash equivalents.Exposure to credit risk on trade and other receivables is monitored on a regular basis. The
credit risk arising from restricted cash, cash and cash equivalents and restricted investments is
managed by ensuring amounts are only invested with financial institutions of good credit quality.
The Group has policies that limit the amount of credit exposure to any one financial institution.It is the policy of the Group to renegotiate credit terms with long-standing customers who
have a good credit history with the Group. These customers are monitored on an ongoing basis to
ensure that the customer remains within the renegotiated terms.The Groups maximum exposure to credit risk is represented by the carrying amount of all
financial assets determined to be exposed to credit risk, amounting to US$610.8 million as at June
30, 2009 (2008: US$361.2 million).(c)
    
    Liquidity RiskPrudent liquidity risk management implies maintaining sufficient cash and marketable
securities, and the availability of funding through an adequate amount of committed credit
facilities.In the ordinary course of business, the Group receives cash from its operations and is
required to fund working capital and capital expenditure requirements. The cash is managed to
ensure that surplus funds are invested in a manner to achieve market-related returns and to
provide sufficient liquidity at the minimum risk. The Group is able to actively source financing
at competitive rates.The following are the contractual maturities of financial liabilities (including principal
and interest payments):
 US DOLLARMore thanFigures in million
    
    Current
    
    
    1 year2009Borrowings(1)(2)
    
    
    33
    
    
    
    15Trade and other payables (excluding non-financial liabilities)
    
    
    71
    
    
    
    104
    
    
    
    152008Borrowings(1)(2)
    
    
    518
    
    
    
    29Trade and other payables (excluding non-financial liabilities)
    
    
    94
    
    
    
    Trade and other payables (Discontinued operations, Note 15)
    
    
    8
    
    
    
    620
    
    
    
    29
 (1)
    
    US$32.9 million is due between 6 to 12 months. (2008: US$226.8 million).(2)
    
    US$4.6 million is due between 1 to 2 years. (2008: US$7.4 million). F-27




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##### Table of Contents



(d)
    
    Capital risk managementThe primary objective of managing the Groups capital is to ensure that there is sufficient
capital available to support the funding requirements of the Group, in a way that optimizes the
cost of capital and matches the current strategic business plan.The Group manages and makes adjustments to the capital structure which consists of debt and
equity as and when borrowings mature or when funding is required. This may take the form of
raising equity, market or bank debt or hybrids thereof. The Group may also adjust the amount of
dividends paid, sell assets to reduce debt or schedule projects to manage the capital structure.There were no changes to the Groups approach to capital management during the year.(e)
    
    Fair value determinationThe carrying values (less any impairment allowance) of short-term financial instruments are
assumed to approximate their fair values.The fair value of available-for-sale financial assets are determined by reference to quoted
market prices. The fair value of other non-current financial instruments are determined using a
discounted cash flow model with market observable inputs, such as market interest rates.The carrying values of financial assets and liabilities are assumed to approximate their fair
value. The exception is the unsecured convertible fixed rate bond which had a fair value of R1
632 million (US$209.2 million) being 96% of the normal value of R1 700 million for the year ended
June 30, 2008.
 F-28




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US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 5
    
    Cost of sales
 Production costs (a)
    
    
    850
    
    
    
    959
    
    
    
    907Amortization and depreciation of mining properties, mine
development costs and mine plant facilities (b)
    
    
    158
    
    
    
    107
    
    
    
    130Amortization and depreciation of assets other than mining
properties, mine development costs and mine plant facilities
(c)
    
    
    9
    
    
    
    10
    
    
    
    4Provision/(reversal of provision) for rehabilitation costs (d)
    
    
    3
    
    
    
    2
    
    
    
    (6
    )Care and maintenance cost of restructured shafts
    
    
    6
    
    
    
    10
    
    
    
    8Employment termination and restructuring costs (e)
    
    
    4
    
    
    
    32
    
    
    
    Share-based payments (f)
    
    
    13
    
    
    
    6
    
    
    
    6Impairment of assets (g)
    
    
    61
    
    
    
    35
    
    
    
    37Provision for post retirement benefits
    
    
    
    
    
    
    1
    
    
    
    (2
    )Total cost of sales
    
    
    1,104
    
    
    
    1,162
    
    
    
    1,084
 (a)
    
    Production costs include mine production, transport and refinery costs, applicable
general and administrative costs, movement in inventories and ore stockpiles and ongoing
environmental rehabilitation costs as well as transfers to and from deferred stripping. Ongoing
employee termination costs are included, however employee termination costs associated with major
restructuring and shaft closures are excluded. Production costs, analyzed by nature, consist of
the following:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Labor costs, including contractors
    
    
    540
    
    
    
    632
    
    
    
    612Stores and materials
    
    
    215
    
    
    
    229
    
    
    
    196Water and electricity
    
    
    93
    
    
    
    90
    
    
    
    91Insurance
    
    
    25
    
    
    
    19
    
    
    
    21Transportation
    
    
    15
    
    
    
    9
    
    
    
    5Changes in inventory
    
    
    (2
    )
    
    
    9
    
    
    
    (10
    )Capitalization of mine development costs
    
    
    (106
    )
    
    
    (109
    )
    
    
    (70
    )By-products sales
    
    
    (3
    )
    
    
    (4
    )
    
    
    (3
    )Other
    
    
    73
    
    
    
    84
    
    
    
    65Total production cost
    
    
    850
    
    
    
    959
    
    
    
    907
 (b)
    
    While Mount Magnet was classified as held-for-sale, no depreciation was recorded as per
the requirements of IFRS 5, Non-current assets held-for-sale and Discontinued Operations. When
Mount Magnet ceased being classified as held-for-sale, depreciation was calculated for the period
from April 2007 to June 2009 and US$28 million recorded in the 2009 year.(c)
    
    Amortization and depreciation of assets other than mining properties, mine development
costs and mine plant facilities consist of the following:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Other non-mining assets
    
    
    1
    
    
    
    4
    
    
    
    2Intangible assets
    
    
    3
    
    
    
    2
    
    
    
    1Amortization of issue costs
    
    
    5
    
    
    
    4
    
    
    
    1Total amortization and depreciation
    
    
    9
    
    
    
    10
    
    
    
    4
 (d)
    
    For the assumptions used to calculate the rehabilitation costs, refer to note 3.4.
 F-29




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US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 (e)
    
    Employment termination and restructuring costs consist of the following:
 Free State
    
    
    1
    
    
    
    10
    
    
    
    Randfontein and Elandskraal
    
    
    1
    
    
    
    5
    
    
    
    Evander
    
    
    1
    
    
    
    3
    
    
    
    Freegold
    
    
    1
    
    
    
    10
    
    
    
    Avgold
    
    
    
    
    
    
    1
    
    
    
    Australia
    
    
    
    
    
    
    3
    
    
    
    Total employment termination and restructuring cost
    
    
    4
    
    
    
    32
    
    
    
    
 During the December 2007 quarter, a voluntary retrenchment process was begun, following the
Groups decision to decentralize central services, as well as the restructuring of shafts due to
the cessation of Conops.
 (f)
    
    Refer to note 36 for details on the share-based payments schemes operated by the Group.(g)
    
    Impairment consist of the following:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Virginia (1)
    
    
    7
    
    
    
    
    
    
    
    2Target (1)
    
    
    31
    
    
    
    
    
    
    
    Evander (1)
    
    
    33
    
    
    
    16
    
    
    
    Kalgold (1)
    
    
    
    
    
    
    8
    
    
    
    (19
    )Mount Magnet (2)
    
    
    (10
    )
    
    
    (5
    )
    
    
    56Other underground  assets (1)
    
    
    
    
    
    
    3
    
    
    
    (2
    )Other underground  goodwill (3)
    
    
    
    
    
    
    13
    
    
    
    Total impairment
    
    
    61
    
    
    
    35
    
    
    
    37
 (1)
    
    During 2009 and 2008 impairments were recognized, which resulted primarily from the
revised business (Life-of-Mine) plans that were completed during the June quarter of each year.
Included in the revised plans were increases in labor and electricity costs, Also included in the
revised plans for 2009 for Evander and Target was additional capital expenditure that is needed to
access reserve ounces in areas where geological anomalies have been discovered. These adjustments
impacted negatively on the recoverable amount and contributed to the recognition of the
impairments at the shafts. Impairment tests were performed as required by IAS 36, Impairment of
Assets, and as a result these impairments were recorded. For assumptions used to calculate the
recoverable amount, refer to note 3.1.During June 2007, the Group recorded an impairment at the Free State operations relating to
the cessation of operations at the Refinery. The Group also reversed impairments previously
recorded at its Kalgold and Freegold operations, where the recoverable amounts calculated using
fair value less costs to sell exceeded the carrying values.(2)
    
    In 2009, the impairment recorded for Mount Magnet since being classified as held-for-sale
was reversed when the requirement for IFRS 5 were no longer met and the carrying value was
adjusted for depreciation as per IFRS 5. Refer to note 5(b) in this regard.
 F-30




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During the 2008 year, the disposal group was tested for impairment and as the recoverable
amount exceeded the carrying value, a portion of the impairment previously recognized was
reversed.When Mount Magnet was classified as held-for-sale in April 2007, the carrying value had to be
measured against the recoverable amount, in terms of IFRS 5. The carrying value exceeded the
recoverable amount and therefore an impairment was recorded.(3)
    
    During 2008 goodwill relating to certain underground operations, classified as Other 
underground, was also impaired. For further details on the allocation of goodwill, refer to note
18.
 6
    
    Profit on sale of property, plant and equipment
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Profit on sale of property, plant and equipment
    
    
    116
    
    
    
    18
    
    
    
    25
 Included in the total for 2009 is US$111.9 million profit on sale of 50% of Harmonys gold
and copper assets in Morobe province, Papua New Guinea (PNG), to Newcrest Mining Limited
(Newcrest) in terms of the Master Purchase and Farm-in agreement. The sale was concluded in
three stages.On July 31, 2008, stage 1, being the sale of an initial 30.1% participating interest in the
assets, was concluded at a profit of US$57.9 million. The remaining 19.99% interest was sold in
two further stages, resulting in a profit of US$44.6 million for the 10% interest of stage 2 and a
profit of US$9.9 million for the 9.99% interest of stage 3. These stages were completed on
February 27, 2009 and June 30, 2009 respectively. Refer to note 23.The amount in 2008 includes the sale of tenements by Mount Magnet to BHP Nickel for a profit
of US$10.8 million.The Randfontein 4 Shaft was sold to Ezulwini Mining Company (Proprietary) Limited on December
29, 2006, resulting in a profit of US$9.8 million.The Deelkraal surface assets were disposed of at a profit of US$13.7 million to Ogoerion
Construction CC on April 5, 2007.
 7
    
    Other expenses  net
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Foreign exchange gain  net (a)
    
    
    (14
    )
    
    
    (14
    )
    
    
    (2
    )Loss/(gain) on financial instruments
    
    
    
    
    
    
    1
    
    
    
    (6
    )Bad debts provision expense (b)
    
    
    11
    
    
    
    13
    
    
    
    1Bad debts written off (b)
    
    
    3
    
    
    
    
    
    
    
    Other expenses  net
    
    
    3
    
    
    
    13
    
    
    
    7Total other expenses  net
    
    
    3
    
    
    
    13
    
    
    
    
 F-31




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(a)
    
    (i) During the 2008 year, two intercompany loans, previously designated as forming part
of the net investment of the Groups international operations, were de-designated, mainly as a
result of the expected repayment of these loans from the proceeds from the PNG Partnership
Agreement (refer to note 23).In accordance with the Groups accounting policies, accumulated exchange gains that arose
while the loans were considered to form part of the Groups net investment in its international
operations remain in equity and are only reclassified to the consolidated income statements as and
when the loans are repaid. Therefore, following partial repayment of the loans in 2009 an
accumulated exchange gain of US$53.1 million that arose while the loans were considered to form
part of the Groups net investment in its international operations has been reclassified from
other reserves to the consolidated income statements.On June 30, 2009, the Group converted the remainder of the loan between the Company and
Harmony Gold (Australia) (Proprietary) Limited (Harmony Australia) to ordinary shares, and the
portion of the accumulated exchange gain that arose while the loan to Harmony Australia formed
part of the Groups net investment, continues to be deferred in equity until the investment in
Harmony Australia is sold.Foreign exchange gains/(losses) arising after de-designation of the loans in 2008 have been
included in the consolidated income statements and in 2009 amounted to a loss of US$22.3 million
(2008: gain of US$15.3 million).(ii) During the 2009 year, foreign exchange losses of US$30.0 million were recognised
relating to the exchange movements on the US$ denominated Pamodzi Resources Fund 1 LLP (PRF)
loan for the Cooke transaction. Refer to note 22 for further detail.In anticipation of the receipt of the purchase consideration for the Cooke assets, the Group
arranged a forward exchange contract, allowing the Group to sell the proceeds at R10.27 per US$1
on April 21, 2009. The gain on this arrangement was US$21.1 million.(b)
    
    The amount in 2008 includes a provision for the outstanding balance of US$6.4 million on
the sale of Deelkraal to Ogoerion Construction CC.
 F-32




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During the 2009 year, trade debt and loans of US$3.4 million was written off as the Group
considered the debts irrecoverable. A net provision of US$11.2 million was made, where the
Group considered the recoverability of the debts to be doubtful. Refer to note 24.
 8
    
    Operating profitThe following have been included in operating profit:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Auditors remuneration
    
    
    3
    
    
    
    4
    
    
    
    2ExternalFees  current year
    
    
    2
    
    
    
    2
    
    
    
    2Fees  prior year under provision
    
    
    
    
    
    
    
    
    
    
    Fees  other services
    
    
    
    
    
    
    1
    
    
    
    InternalFees  current year
    
    
    1
    
    
    
    1
    
    
    
    
 9
    
    Profit on sale of investment in associate
 Profit on the sale of Western Areas Limited
    
    
    
    
    
    
    
    
    
    
    33Total profit on sale of investment in associate
    
    
    
    
    
    
    
    
    
    
    33
 On December 8, 2006, the Group disposed of its interest in Western Areas Limited.10
    
    Fair value (loss)/gain on financial instruments
 Fair value through profit or lossMark-to-market adjustment (a)
    
    
    
    
    
    
    5
    
    
    
    15
    
    
    
    5
    
    
    
    15Available-for-saleImpairment recognized in profit or loss (b)
    
    
    (12
    )
    
    
    
    
    
    
    Realized portion of mark-to-market movement (c)
    
    
    2
    
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    Total fair value (loss)/gain on financial instruments
    
    
    (10
    )
    
    
    5
    
    
    
    15
 (a)
    
    The sale agreement of African Rainbow Minerals Limited (ARM) shares gave rise to a
non-derivative financial instrument that is designated as at fair value through profit or
loss. The fair value movement recognized is equivalent to the interest paid on the
Nedbank loans, which were guaranteed by the Group. These guarantees were cancelled in
September 2007.(b)
    
    This amount relates to the portion of the mark-to-market losses reclassified from other
reserves to the income statement when the investments were considered to be permanently
impaired. Refer to note 21(b) and 28 in this regard.(c)
    
    This portion relates to the realised portion of the mark-to-market gains reclassified from
other reserves to the income statement on the disposal of the Dioro investment. Refer to
note 21(b) and 28 for further detail.
 F-33




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US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 11
    
    Loss on sale of listed investments
 Loss on sale of investment in Gold Fields Limited
    
    
    
    
    
    
    (63
    )
    
    
    (5
    )
 The Group acquired its investment in Gold Fields Limited (Gold Fields) in December 2006, in exchange for its interest in Western Areas
Limited (see note 9). The Group disposed of 2 650 000 shares during 2007, and the remaining 7 348 079 shares in 2008 resulting in
realized losses of US$5 million and US$63 million, respectively.12
    
    Investment income
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Interest received
    
    
    49
    
    
    
    34
    
    
    
    24Loans and receivables
    
    
    10
    
    
    
    5
    
    
    
    1Held-to-maturity investments
    
    
    19
    
    
    
    18
    
    
    
    14Cash and cash equivalents
    
    
    20
    
    
    
    11
    
    
    
    9Dividend income on available for sale
    
    
    
    
    
    
    5
    
    
    
    3Total investment income
    
    
    49
    
    
    
    39
    
    
    
    27
 13
    
    Finance costs
 Financial liabilitiesBank and short-term facilities
    
    
    2
    
    
    
    5
    
    
    
    Convertible unsecured fixed rate bonds
    
    
    15
    
    
    
    22
    
    
    
    21Nedbank Limited
    
    
    23
    
    
    
    38
    
    
    
    18Westpac Bank
    
    
    
    
    
    
    
    
    
    
    Rand Merchant Bank
    
    
    
    
    
    
    2
    
    
    
    13Other creditors
    
    
    
    
    
    
    1
    
    
    
    5Total finance costs from financial liabilities
    
    
    40
    
    
    
    68
    
    
    
    57Non-financial liabilitiesPost-retirement benefits
    
    
    2
    
    
    
    1
    
    
    
    1Time value of money and inflation component of rehabilitation costs
    
    
    11
    
    
    
    16
    
    
    
    16South African Revenue Services (SARS)
    
    
    2
    
    
    
    8
    
    
    
    2Total finance costs from non-financial liabilities
    
    
    15
    
    
    
    25
    
    
    
    19Total finance cost before interest capitalized
    
    
    55
    
    
    
    93
    
    
    
    76Interest capitalized
    
    
    (31
    )
    
    
    (22
    )
    
    
    (10
    )Total finance costs
    
    
    24
    
    
    
    71
    
    
    
    66
 The capitalization rate used to determine the amount of borrowing costs eligible for capitalization during the year is 12.3% (2008: 11.7%
and 2007: 9.8%).
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US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 14
    
    Taxation
 SA normal taxationMining tax (a)- current year
    
    
    14
    
    
    
    5
    
    
    
    - prior year
    
    
    5
    
    
    
    15
    
    
    
    Non-mining tax (b)- current year
    
    
    18
    
    
    
    1
    
    
    
    2- prior year
    
    
    1
    
    
    
    1
    
    
    
    (1
    )Deferred tax (c)- deferred tax
    
    
    40
    
    
    
    55
    
    
    
    60Foreign normal taxation- deferred tax (d)
    
    
    (55
    )
    
    
    (9
    )
    
    
    (11
    )Total normal taxation
    
    
    23
    
    
    
    68
    
    
    
    50
 (a)
    
    Mining tax on gold mining income in South Africa is determined according to a formula,
based on the taxable income from mining operations. Gold Mining Companies within the Group
that have elected to be exempt from Secondary Tax on Companies (STC) are taxed at higher
rates than those that have not made the election.All qualifying mining capital expenditure is deducted from taxable mining income to the
extent that it does not result in an assessed loss and accounting depreciation is
eliminated when calculating the South African mining tax income. Excess capital expenditure
is carried forward as unredeemed capital to be claimed from future mining taxable income.
The Group has several tax paying entities in South Africa. In terms of the mining
ring-fencing application, each ring-fenced mine is treated separately and deductions can
normally only be utilized against mining income generated from the relevant ring-fenced
mine.The formulas for determining the South African gold mining tax rates are:Y = 43 - 215/X (elect not to pay STC) (2009 and 2008)Y = 45 - 225/X (elect not to pay STC) (2007)Y = 34 - 170/X (no election made) (2009 and 2008)Y = 35 - 175/X (no election made) (2007)Where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of
any qualifying capital expenditure that bears to mining income so derived, expressed as a
percentage.(b)
    
    Non-mining income is taxed at 35% (exempt from STC) (2008: 35% and 2007: 37%) and 28% (no
election made) (2008: 28% and 2007: 29%). Non-mining companies are taxed at the statutory
corporate rate of 28% (2008: 28% and 2007: 29%).
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##### Table of Contents



(c)
    
    The tax rate used to calculate deferred tax is based on the current estimate of future
profitability when temporary differences will reverse, based on tax rates (and tax laws)
that have been enacted at balance sheet date. Depending on the profitability of the
operations, the tax rate can consequently be significantly different from year to year.(d)
    
    Mining and non-mining income of Australian and PNG operations are taxed at a standard tax
rate of 30% (2008: 30% and 2007: 30%). Deferred tax is provided at the estimated expected
future mining tax rate for temporary differences, based on tax rates (and tax laws) that
have been enacted at balance sheet date.Income and mining tax ratesThe South African taxation rates were changed in the 2008 year after an announcement of a
reduction in the applicable rates by the Finance Minister in his annual budget speech in
February 2008. There was no change in the 2009 year.Major items causing the Groups income tax provision to differ from the maximum mining
statutory tax rate of 43% (2008: 43% and 2007: 45%) were:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Tax on net income/(loss) from continuing operations at the maximum mining statutory tax rate
    
    
    (93
    )
    
    
    4
    
    
    
    (37
    )Non-allowable deductions
    
    
    (42
    )
    
    
    (88
    )
    
    
    (11
    )Difference between effective mining tax rate and statutory mining rate on mining income
    
    
    14
    
    
    
    4
    
    
    
    Difference between non-mining tax rate and statutory mining rate on non-mining income
    
    
    11
    
    
    
    
    
    
    
    (1
    )Effect on temporary differences due to changes in effective tax rates
    
    
    53
    
    
    
    (10
    )
    
    
    Prior year adjustment  mining and non-mining tax
    
    
    (5
    )
    
    
    (16
    )
    
    
    (1
    )Capital allowances
    
    
    39
    
    
    
    38
    
    
    
    Income and mining taxation
    
    
    (23
    )
    
    
    (68
    )
    
    
    (50
    )Effective income and mining tax rate
    
    
    -10
    %
    
    
    680
    %
    
    
    -1
    %
 Deferred tax liabilities and assets on the balance sheet as of June 30, 2009 and 30 June
2008, relate to the following:
 US DOLLARFigures in million
    
    2009
    
    
    2008Deferred taxGross deferred tax liability
    
    
    643
    
    
    
    579Amortization and depreciation
    
    
    620
    
    
    
    540Product inventory not taxed
    
    
    12
    
    
    
    13Convertible bonds
    
    
    
    
    
    
    1Other
    
    
    11
    
    
    
    25Gross deferred tax asset
    
    
    (222
    )
    
    
    (190
    )Deferred financial liability
    
    
    
    
    
    
    Unredeemed capital expenditure
    
    
    (183
    )
    
    
    (105
    )Provisions, including non-current provisions
    
    
    (30
    )
    
    
    (27
    )Tax losses
    
    
    (9
    )
    
    
    (58
    )Disposal groups classified as held-for-sale
    
    
    
    
    
    
    (6
    )Net deferred tax liability
    
    
    421
    
    
    
    383
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Movement in the net deferred tax liability recognized in the balance sheet is as follows:
 US DOLLARFigures in million
    
    2009
    
    
    2008Balance at beginning of year
    
    
    383
    
    
    
    386Total charge per income statement (a)
    
    
    29
    
    
    
    47Foreign currency translation adjustments
    
    
    9
    
    
    
    (41
    )Tax directly charged to equity (b)
    
    
    
    
    
    
    (4
    )Disposal groups classified as held-for-sale
    
    
    
    
    
    
    (5
    )Balance at end of year
    
    
    421
    
    
    
    383The following amounts that will realize or be recovered in the next 12 months have been
included in the deferred tax liabilities and assets:Deferred tax liabilities
    
    
    15
    
    
    
    38Deferred tax assets
    
    
    (12
    )
    
    
    (21
    )Net deferred tax liability
    
    
    3
    
    
    
    17
 (a)
    
    The charge includes the amounts for both continuing and discontinued operations.(b)
    
    The charge relates to deferred tax asset on the downward mark-to-market adjustment during the
year on available-for-sale financial assets by Australian operations. Refer to note 21 and 28
in this regard.As at June 30, certain subsidiaries in the Group had the following tax credits:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Unredeemed capital expenditure available for utilization against future mining taxable income
    
    
    1,586
    
    
    
    1,195
    
    
    
    1,235Tax losses carried forward utilizable against taxable income
    
    
    25
    
    
    
    338
    
    
    
    198Capital Gains Tax (CGT) losses available to be utilized against future CGT gains.
    
    
    74
    
    
    
    73
    
    
    
    As at June 30, the Group has not recognized the following deferred tax asset amounts
    
    
    379
    
    
    
    330
    
    
    
    
 The unrecognized temporary differences are:Unredeemed capital expenditure
    
    
    926
    
    
    
    795
    
    
    
    Tax losses
    
    
    25
    
    
    
    133
    
    
    
    CGT losses
    
    
    74
    
    
    
    73
    
    
    
    Temporary differences relating to investments in associates
    
    
    154
    
    
    
    
    
    
    
    
 Secondary Taxation on CompaniesSTC is a tax levied on South African companies at a rate of 10% with effect from October 1,
2007 (previously 12.5%) on dividends distributed.Current and deferred tax are measured at the tax rate applicable to undistributed income and
therefore only take STC into account to the extent that dividends have been received or paid.
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On declaration of a dividend, the Company includes the STC on this dividend in its computation
of the income tax expense in the period of such declaration.
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Available STC credits at end of year
    
    
    35
    
    
    
    35
    
    
    
    39
 On August 13, 2009, the Board of Directors approved a final dividend for the 2009 financial
year of 50 SA cents per share. The total dividend, paid on September 21, 2009, amounted to
US$28.6 million. As the STC credit exceeded the dividend no STC was payable on this
declaration.
 15
    
    Disposal groups classified as held-for-sale and discontinued operationsThe assets and liabilities related to Mount Magnet and South Kal (operations in Australia), Orkney operations (operations in Northwest province) have been
presented as held-for-sale following approval of the Groups management and Board of Directors on April 20, 2007. These operations also met the criteria to be
classified as discontinued operations and were reported in the Discontinued Operations  other segment in the segment report.On December 6, 2007, the sale relating to the South Kal operation (operation in Australia) was concluded at a loss, net of tax, of US$7.6 million and the assets
were derecognized.On February 27, 2008, the sale relating to the Orkney operations (operations in the Northwest province) was concluded at a profit of US$8.9 million and the
assets were derecognized.The Mount Magnet operations were first classified as held-for-sale in 2007, when Harmony signed a letter of intent for the sale of its Mount Magnet operations
with Monarch. However, in July 2008, Harmony was advised that Monarch placed itself in voluntary administration, and in August 2008, the Administrator
indicated that Monarch would not proceed with the purchase and consequently the purchase agreement was terminated.Harmony resumed management of the operation and re-commenced the sale process early in 2009. However, during the fourth quarter 2009, it was decided that
further drilling at the Mount Magnet operation would enhance the selling potential of the operation and, as a result, the operation no longer met the
requirements to be classified as held-for-sale in terms of IFRS 5. Consequently, the consolidated income statements, earnings per share and related notes for
comparative periods have been re-presented to include income and expenses relating to the Mount Magnet operations in continuing operations. The Mount Magnet
operations continue to be under care and maintenance.On ceasing to be classified as held-for-sale, the carrying value was re-measured as per IFRS 5 (refer to note 2.11) and depreciation amounting to US$28 million
was recorded. This also lead to the recording of a reversal of impairment of US$28 million. Refer to note 5(b) and (g) respectively.
 F-38




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##### Table of Contents



The assets and liabilities relating to the Cooke 1, Cooke 2, Cooke 3, Cooke plant and related surface operations (operations in the Gauteng province) have been
presented as held-for-sale following the approval of the Groups management on October 16, 2007. These operations were also deemed to be discontinued operation.The sale of assets to Rand Uranium (Proprietary) Limited (Rand Uranium) had two tranches, the first being the sale of the Randfontein Cooke assets. The
second tranche relates to the sale of the Old Randfontein assets, which is situated near the Cooke operations and contains gold and uranium. Both tranches were
subject to conditions, including the approval of the Ministerial Consent of the cession of the Mining Right (Section 11). In exchange for 60% of the issued
share capital of Rand Uranium, PRF agreed to pay Harmony a purchase consideration of US$209 million.The conditions precedent for the sale of Randfonteins Cooke assets to Rand Uranium were fulfilled and the transaction became effective on November 21, 2008.
US$40 million of the consideration was received on the effective date with the balance and the interest on the outstanding amount, together amounting to US$172
million, being received on April 20, 2009. The conditions for the second sale were fulfilled on April 22, 2009.The total profit for the transaction is US$171 million before tax.The assets and liabilities for the operations classified as held-for-sale at the reporting dates presented follow below:
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Balance sheetAssets of disposal groups classified as held-for-sale
 Property, plant and equipment
    
    
    
    
    
    
    152Restricted investments
    
    
    
    
    
    
    22Investment in financial assets
    
    
    
    
    
    
    Inventories
    
    
    
    
    
    
    22Trade and other receivables
    
    
    
    
    
    
    1Cash and cash equivalents
    
    
    
    
    
    
    Total assets of disposal groups classified as held-for-sale
    
    
    
    
    
    
    197
 Balance sheetLiabilities of disposal groups classified as held-for-sale
 Borrowings
    
    
    
    
    
    
    Deferred income tax
    
    
    
    
    
    
    6Provisions for other liabilities and charges
    
    
    
    
    
    
    50Trade and other payables
    
    
    
    
    
    
    8Total liabilities of disposal groups classified as held-for-sale
    
    
    
    
    
    
    64- 64
 The results and cash flows relating to these operations are disclosed in the tables below:
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##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 Income statementAnalysis of the results of discontinued operations, and the results recognized on the re-measurement of assets for disposal by the GroupRevenue
    
    
    69
    
    
    
    253
    
    
    
    287Expenses  net
    
    
    (51
    )
    
    
    (199
    )
    
    
    (271
    )Profit on sale of shares
    
    
    171
    
    
    
    9
    
    
    
    Loss on sale of property, plant and equipment
    
    
    
    
    
    
    (13
    )
    
    
    Profit from discontinued operations before tax
    
    
    189
    
    
    
    50
    
    
    
    16Taxation
    
    
    (71
    )
    
    
    (2
    )
    
    
    2Profit for the year from discontinued operations
    
    
    118
    
    
    
    48
    
    
    
    18Cash flowsOperating cash flows
    
    
    20
    
    
    
    67
    
    
    
    (17
    )Investing cash flows
    
    
    199
    
    
    
    (19)
    
    
    
    Foreign exchange translation adjustment
    
    
    69
    
    
    
    (6)
    
    
    
    Total cash flows
    
    
    288
    
    
    
    42
    
    
    
    (17
    )
 16
    
    Earnings/(loss) per shareBasic earnings/(loss) per share is calculated by dividing the net income attributable to shareholders by the weighted number of ordinary shares in issue during
the year.
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Weighted average number of ordinary shares in issue (000)
    
    
    414,121
    
    
    
    400,750
    
    
    
    397,911Net profit/(loss) from continuing operations
    
    
    193
    
    
    
    (78
    )
    
    
    33Net profit from discontinued operations
    
    
    118
    
    
    
    48
    
    
    
    18Total net profit/(loss) attributable to shareholders
    
    
    311
    
    
    
    (30
    )
    
    
    51Basic earnings/(loss) per share from continuing operations (cents)
    
    
    47
    
    
    
    (20
    )
    
    
    8Basic earnings per share from discontinued operations (cents)
    
    
    28
    
    
    
    12
    
    
    
    4Total basic earnings/(loss) per share (cents)
    
    
    75
    
    
    
    (8
    )
    
    
    12
 Fully diluted earnings/(loss) per shareFor diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive ordinary
shares as a result of share options granted to employees under the share option schemes in issue. A calculation is performed to determine the number of shares
that could have been acquired at fair value, determined as the average annual market share price of the Companys shares, based on the monetary value of the
subscription rights attached to the outstanding share options. The number of shares calculated as above is compared with the number of shares that would have
been issued assuming the exercise of the share options.
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##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Weighted average number of ordinary shares in issue (000)
    
    
    414,121
    
    
    
    400,750
    
    
    
    397,911Potential ordinary shares (000)
    
    
    1,842
    
    
    
    2,144
    
    
    
    4,471Weighted average number of ordinary shares for fully diluted earnings per share (000)
    
    
    415,963
    
    
    
    402,894
    
    
    
    402,382Fully diluted earnings/(loss) per share from continuing operations (cents)
    
    
    46
    
    
    
    (20
    )
    
    
    8Fully diluted earnings per share from discontinued operations (cents)
    
    
    28
    
    
    
    12
    
    
    
    4Total fully diluted earnings/(loss) per share (cents)
    
    
    74
    
    
    
    (8
    )
    
    
    12
 The inclusion of share options issued to employees as at June 30, 2009, as potential ordinary shares, had a dilutive effect on the diluted earnings per share. Additionally
for the 2008 and 2007 year, the potential ordinary shares to be issued upon the conversion of the convertible unsecured fixed-rate bond (refer to note 29) had an
anti-dilutive effect on the diluted earnings per share. Accordingly, such additional shares were not taken into account in the determination of the diluted loss per share.
 17
    
    Property, plant and equipment
 US DOLLARFigures in million
    
    2009
    
    
    2008Mining properties, mine development costs and mine plant facilities
    
    
    1,628
    
    
    
    1,532Mining assets under construction
    
    
    725
    
    
    
    561Undeveloped properties
    
    
    1,253
    
    
    
    1,434Other non-mining assets
    
    
    8
    
    
    
    4Total property, plant and equipment
    
    
    3,614
    
    
    
    3,531Mining properties, mine development costs and mine
plant facilitiesCostBalance at beginning of year
    
    
    2,521
    
    
    
    2,745Additions
    
    
    219
    
    
    
    316Disposals
    
    
    (324
    )
    
    
    (174
    )Adjustment to rehabilitation asset
    
    
    27
    
    
    
    13Transfers and other movements
    
    
    160
    
    
    
    166Translation
    
    
    (113
    )
    
    
    (176
    )Net reclassification from/(to) held-for-sale
    
    
    746
    
    
    
    (369
    )Balance at end of year
    
    
    3,236
    
    
    
    2,521Accumulated depreciation and impairmentsBalance at beginning of year
    
    
    989
    
    
    
    1,307Impairment of fixed assets (a)
    
    
    71
    
    
    
    13Disposals
    
    
    (141
    )
    
    
    (104
    )Depreciation for the year (a)
    
    
    153
    
    
    
    118Depreciation for the year capitalized to mining assets under construction
    
    
    5
    
    
    
    6Translation
    
    
    (89
    )
    
    
    (34
    )Net reclassification from/(to) held-for-sale
    
    
    620
    
    
    
    (317
    )Balance at end of year
    
    
    1,608
    
    
    
    989Net book value
    
    
    1,628
    
    
    
    1,532
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US DOLLARFigures in million
    
    2009
    
    
    2008Mining assets under constructionCostBalance at beginning of year (b)
    
    
    561
    
    
    
    404Additions (c)
    
    
    300
    
    
    
    233Finance costs capitalized
    
    
    31
    
    
    
    22Disposals
    
    
    (186
    )
    
    
    (4
    )Transfers and other movements
    
    
    13
    
    
    
    (84
    )Translation
    
    
    6
    
    
    
    (13
    )Net reclassification from held-for-sale
    
    
    
    
    
    
    3Book value
    
    
    725
    
    
    
    561Undeveloped propertyCostBalance at beginning of year
    
    
    1,436
    
    
    
    1,630Additions
    
    
    23
    
    
    
    Disposals
    
    
    (39
    )
    
    
    (24
    )Transfers and other movements
    
    
    (173
    )
    
    
    (74
    )Translation
    
    
    (40
    )
    
    
    (80
    )Net reclassification from/(to) held-for-sale
    
    
    113
    
    
    
    (16
    )Balance at end of year
    
    
    1,320
    
    
    
    1,436Accumulated depreciation and impairmentsBalance at beginning of year
    
    
    2
    
    
    
    9Reversal on impairment of fixed assets (a)
    
    
    (10
    )
    
    
    (6
    )Transfers and other movements
    
    
    
    
    
    
    9Translation
    
    
    (12
    )
    
    
    16Net reclassification from/(to) held-for-sale
    
    
    87
    
    
    
    (26
    )Balance at end of year
    
    
    67
    
    
    
    2Net book value
    
    
    1,253
    
    
    
    1,434Deferred strippingCostBalance at beginning of year
    
    
    8
    
    
    
    12Translation
    
    
    
    
    
    
    (1
    )Reversal of deferred costs
    
    
    
    
    
    
    (3
    )Balance at end of year
    
    
    8
    
    
    
    8Accumulated depreciationBalance at beginning of year
    
    
    8
    
    
    
    Impairment of fixed assets
    
    
    
    
    
    
    8Balance at end of year
    
    
    8
    
    
    
    8Net book value
    
    
    
    
    
    
    
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##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008Other non-mining assetsCostBalance at beginning of year
    
    
    44
    
    
    
    46Additions
    
    
    4
    
    
    
    2Disposals
    
    
    
    
    
    
    (5
    )Transfers and other movements
    
    
    
    
    
    
    4Translation
    
    
    
    
    
    
    (6
    )Net reclassification from held for sale
    
    
    1
    
    
    
    3Balance at end of year
    
    
    49
    
    
    
    44Accumulated depreciationBalance at beginning of year
    
    
    40
    
    
    
    37Disposals
    
    
    
    
    
    
    (4
    )Depreciation for the year
    
    
    1
    
    
    
    4Transfers and other movements
    
    
    
    
    
    
    4Translation
    
    
    
    
    
    
    (4
    )Net reclassification from held for sale
    
    
    
    
    
    
    3Balance at end of year
    
    
    41
    
    
    
    40Net book value
    
    
    8
    
    
    
    4Total net book value
    
    
    3,614
    
    
    
    3,531
 (a)
    
    For the 2008 figures these amounts include both continuing and discontinued operations.(b)
    
    Included in this amount is the balance pertaining to the undivided 26% share of the
mining titles in the Doornkop South Reef Project owned by African Vanguard Resources
(Doornkop) (Proprietary) Limited (AVRD). The Group is required to consolidate AVRD -
refer to note 29 (c).In terms of a revised agreement signed on March 13, 2009, Harmony will purchase this
share back from AVRD in exchange for Harmony ordinary shares. The conditions precedent
to this transaction are expected to be completed by end of February 2010.(c)
    
    The additions include amounts relating to purchase of the royalty agreements that Rio
Tinto had over Hidden Valley and Kerimenge deposits in PNG. During March 2008,
Harmony concluded the buy back of these royalty rights for US$22 million through the
issue of US$20 million Harmony shares and US$2 million in cash.On December 1, 2008, Harmony issued a further 3.4 million Harmony shares to Rio Tinto
to cancel the Rio Tinto royalty rights over Wafi-Golpu in PNG. The value of the
issued shares were US$23 million.
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US DOLLARFigures in million
    
    2009
    
    
    2008
 (d)
    
    Additional disclosures
 Leased assetsCarrying value of capitalized leased assets (included in mining assets under
construction)
    
    
    17
    
    
    
    35Cost
    
    
    21
    
    
    
    38Accumulated depreciation
    
    
    (4
    )
    
    
    (3
    )Finance lease additions
    
    
    1
    
    
    
    28
 18
    
    Intangible assets
 GoodwillCostBalance at beginning of year (a)
    
    
    304
    
    
    
    337Translation
    
    
    3
    
    
    
    (33
    )Balance at end of year
    
    
    307
    
    
    
    304Accumulated depreciationBalance at beginning of year (a)
    
    
    27
    
    
    
    15Impairment loss (b)
    
    
    
    
    
    
    13Translation
    
    
    
    
    
    
    (1
    )Balance at end of year
    
    
    27
    
    
    
    27Net book value
    
    
    280
    
    
    
    277Computer softwareCost (c)Balance at beginning of year
    
    
    8
    
    
    
    6Acquired during the year
    
    
    4
    
    
    
    3Translation
    
    
    1
    
    
    
    (1
    )Balance at end of year
    
    
    13
    
    
    
    8Accumulated depreciationBalance at beginning of year
    
    
    2
    
    
    
    1Amortization charge for the year
    
    
    3
    
    
    
    2Translation
    
    
    
    
    
    
    (1
    )Balance at end of year
    
    
    5
    
    
    
    2Net book value
    
    
    8
    
    
    
    6Total net book value
    
    
    288
    
    
    
    283
 (a)
    
    The 2008 opening carrying value of goodwill amounting US$322 million relates to the
acquisition of ARMgold on September 22, 2003.The net book value of goodwill has been allocated to the cash generating units:
 US DOLLARFigures in million
    
    2009
    
    
    2008Bambanani
    
    
    29
    
    
    
    29Tshepong
    
    
    72
    
    
    
    72Phakisa
    
    
    172
    
    
    
    170Other  underground
    
    
    7
    
    
    
    6280
    
    
    
    277
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##### Table of Contents



(b)
    
    The impairment of goodwill in 2008 relates to goodwill
allocated to other underground segments. The related mining
assets have also been impaired. Refer to note 5(g).(c)
    
    The amount relates to the acquisition of the Oracle ERP
software implemented in December 2006, as well as additional
acquisition and implementation costs for the Oracle ERP
software during the year.
 19
    
    Restricted cash
 US DOLLARFigures in million
    
    2009
    
    
    2008Environmental guarantees call account (a)
    
    
    15
    
    
    
    Cash Management Account (b)
    
    
    6
    
    
    
    10Total restricted cash
    
    
    21
    
    
    
    10
 (a)
    
    The amount relates to funds set aside for guarantees made to
the Department of Mineral Resources in South Africa for
environmental and rehabilitation obligations.(b)
    
    The amount relates to funds set aside by the international
operations for performance bonds related to guarantees in Australia for environmental obligations.
 20
    
    Restricted investments
 US DOLLARFigures in million
    

2009
    
    
2008Held-to-maturity financial assetsInvestments held by Environmental Trust Funds ( a)
    
    
    207
    
    
    
    206Investments held by Social Trust Fund (b)
    
    
    5
    
    
    
    5212
    
    
    
    211Disposal groups classified as held-for-sale
    
    
    
    
    
    
    (23
    )Total restricted investments
    
    
    212
    
    
    
    188
 (a)
    
    The environmental trust funds are irrevocable trusts under the
Groups control. Contributions to the trust are invested in
interest-bearing short-term investments. The costs of these
investments approximate their fair value. These investments
provide for the estimated cost of rehabilitation during and at
the end of the life of the Groups mines. Income earned on the
investments are restricted in use and may only be used to fund
the Groups approved rehabilitation costs.
 US DOLLARFigures in million
    
    2009
    
    
    2008Reconciliation of the movement in the Environmental Trust Funds:Balance at beginning of year
    
    
    206
    
    
    
    198Interest income
    
    
    21
    
    
    
    21Disposal of business
    
    
    (20
    )
    
    
    (4
    )Contributions made
    
    
    
    
    
    
    11Translation
    
    
    
    
    
    
    (20
    )207
    
    
    
    206Disposal groups classified as held-for-sale
    
    
    
    
    
    
    (23
    )Balance at end of year
    
    
    207
    
    
    
    183
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##### Table of Contents



(b)
    
    The social trust fund is an irrevocable trust under the
Groups control. The Group has undertaken to donate
over a period of 10 years to The Harmony Gold Mining
Group Social Plan Trust in terms of an agreement signed
on November 3, 2003. An initial donation of US$2.7
million was made during the 2004 year. The balance will
be donated in installments of US$0.45 million per annum
with the final installment to be made in 2013. The
purpose of the Trust is to fund the social plan to
reduce the negative effects of restructuring on the
Groups workforce, to put measures in place to ensure
that the technical and life skills of the Groups
workforce are developed and to develop the Groups
workforce in such a manner to avoid or minimize the
effect of job losses and a decline in employment
through turnaround or redeployment strategies.
 US DOLLARFigures in million
    
    2009
    
    
    2008Reconciliation of the movement in the Social Trust Fund:Balance at beginning of year
    
    
    5
    
    
    
    5Contributions made*
    
    
    
    
    
    
    1Claims paid*
    
    
    
    
    
    
    (1
    )Balance at end of year
    
    
    5
    
    
    
    5
 *
    
    Please note that for 2009 when these amounts were
translated into US dollars, the amounts were less than
US$0.5 million and were rounded down, resulting in no
movement being shown for the year.
 21
    
    Investment in financial assets
 US DOLLARFigures in million
    
    2009
    
    
    2008Balance at beginning of year
    
    
    9
    
    
    
    361Additions
    
    
    8
    
    
    
    20Disposals
    
    
    (4
    )
    
    
    (362
    )Mark-to-market of available-for-sale investments
    
    
    (3
    )
    
    
    (8
    )Fair value movement of ARM investment (refer to note 10(a))
    
    
    
    
    
    
    5Translation
    
    
    (3
    )
    
    
    (7
    )Balance at end of year
    
    
    7
    
    
    
    9The carrying amount consists of the following:Available-for-sale financial assetsInvestment in Alloy Resources (a)
    
    
    
    
    
    
    Investment in Dioro Exploration NL (b)
    
    
    
    
    
    
    8Investment in Avoca Resource Limited (c)
    
    
    5
    
    
    
    Investment in other unlisted shares (d)
    
    
    2
    
    
    
    1Total available-for-sale financial assets
    
    
    7
    
    
    
    9
 (a)
    
    On April 3, 2006, Big Bell Gold Operations
(Proprietary) Limited, a subsidiary of Harmony
Australia, received 5 000 000 shares, valued at A$0.20
per share, in Alloy Resources, as partial consideration
for the sale of Comet tenements.
 F-46




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The market value of the listed investments was US$0.1 million (A$0.025
per share) on June 30, 2009 (2008: US$0.3 million) (A$0.05 per share).
On March 30, 2009, the investment was considered to be permanently
impaired, resulting in a cumulative loss amounting to US$0.4 million
net of tax recognized in other reserves being reclassified from equity
to profit or loss.Subsequent to the impairment, a gain of US $0.04 million was
recognized in other comprehensive income. Tax on this revaluation
amounted to US $0.01 million, which has been charged directly to
equity.(b)
    
    On December 5, 2007, the Group concluded an agreement with Dioro
Exploration NL (Dioro) to sell its South Kal operation (Australia)
in exchange for 11 428 571 shares in Dioro, constituting an investment
of 17.6% in Dioros issued share capital. At that date the shares were
valued at US$18.9 million, being A$1.75 (R11.80) per share. The shares
are listed on the Australian Securities Exchange. At June 30, 2008,
the shares were valued at A$0.74, resulting in a US$8.1 million loss
being recognized in other comprehensive income, net of tax.At December 31, 2008, as a result of a significant and prolonged
decline in market value, an impairment in value was recognized,
resulting in a cumulative loss of US$7.7 million net of tax,
previously recognized in other reserves, being recognized in the
income statement.Subsequent to this impairment, gains relating to the increase in the
fair value of the investment amounting to US$1.5 million were
recognized in other comprehensive income. Tax of US$0.1 million
relating to these gains were charged directly to equity. These gains
and the related tax were recognized in the income statement on
disposal of the investment (see below).On April 17, 2009, the Group disposed of its investment in exchange
for shares in Avoca Resources Limited (Avoca). This was in terms of
an offer made by Avoca to exchange every 3 Dioro shares held for 1
Avoca share. The market value on that day was US$4.2 million.(c)
    
    On April 17, 2009, the Group received 3 809 524 shares, valued at
A$1.50 per share, or US$4.2 million, in Avoca as consideration for its
Dioro shares. The market value of the investment was US$5.4 million
(A$1.75 per share) on June 30, 2009, with an increase of US$0.5
million, net of tax, since acquisition being reflected as other
comprehensive income. A portion of these shares were sold during
September and October 2009. Refer to note 39.(d)
    
    These investments have been valued by the directors by performing
independent valuations on an annual basis to ensure that no permanent
impairment in the value of the investments has occurred. The
directors valuation is consistent with the stated value above.
During the financial year under review, the Group did not receive any
income from these investments ( 2008: Nil).
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US DOLLARFigures in million
    
    2009
    
    
    2008
 22
    
    Investment in associates
 Balance at beginning of year
    
    
    19
    
    
    
    1Shares acquired at cost (a)
    
    
    
    
    
    
    46Subsidiary becoming associate (b)
    
    
    25
    
    
    
    Elimination of unrealized profits
    
    
    
    
    
    
    (5
    )Share of profit/(loss) after tax
    
    
    1
    
    
    
    (11
    )Impairment of share in associate
    
    
    (14
    )
    
    
    (12
    )Translation
    
    
    12
    
    
    
    Balance at end of year
    
    
    43
    
    
    
    19The carrying amount consists of the following:Pamodzi Gold Limited (a)
    
    
    
    
    
    
    19Rand Uranium (Proprietary) Limited(b)
    
    
    43
    
    
    
    Total investment in associates
    
    
    43
    
    
    
    19
 (a)
    
    On February 27, 2008,
Pamodzi Gold Limited
(Pamodzi) bought the
Orkney operations from
the Group for a
consideration of 30 000 000 Pamodzi
shares. This resulted
in Harmony owning
32.4% of Pamodzi. On
the purchase date the
value of the
investment was US$46.5
million being US$1.54
per share. Pamodzi was
listed on the JSE and
has interests in
operating gold mines
in South Africa.An impairment of the
investment in
associate of US$12.3
million was recognized
at June 30, 2008, as
the market value of
the share had
decreased to US$0.62
per share The fair
value of the
investment was US$18.6
million. For the four
months to June 30,
2008, the Group
recognized US$10.6
million as its share
of losses from
associates.On September 30, 2008,
an impairment test was
performed and an
impairment of US$13.5
million was recorded.
After taking into
account the Groups
share of losses of
US$3.7 million, the
carrying value at
December 31, 2008 was
R0. Subsequently, the
Group has not
recognized its share
of any further losses.
During March 2009,
Pamodzi was placed in
liquidation and the
trading of its shares
on the JSE was
suspended.The audited financial
statements for the
year ended December
31, 2008 and the
financial information
for the six months
ended June 30, 2009
were not available at
the time of this
report being
finalized. As a
result, the unaudited
summarized information
for the nine months
ended March 31, 2009
has been included.
This information is
not comparable with
the four month period
ended June 30, 2008,
disclosed in prior
years.
 US DOLLARFigures in million
    
    2009
    
    
    2008100
    %
    
    
    100
    %Revenue
    
    
    69
    
    
    
    57Production costs
    
    
    (89
    )
    
    
    (74
    )Operating loss
    
    
    (20
    )
    
    
    (17
    )Net loss
    
    
    (40
    )
    
    
    (34
    )
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##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008
 The financial position as at March 31, 2009 and June 30, 2008 is disclosed below:
 Non-current assets
    
    
    260
    
    
    
    214Current assets
    
    
    18
    
    
    
    21Total assets
    
    
    278
    
    
    
    235Current liabilities
    
    
    241
    
    
    
    170Non-current liabilities
    
    
    62
    
    
    
    31Total liabilities
    
    
    303
    
    
    
    201
 (b)
    
    The Group owns a 40% share of Rand Uranium, which is an unlisted company registered in
South Africa, with gold mining operations in the Gauteng province of South Africa.The Groups interest was obtained by the completion of two transactions, discussed below.On November 21, 2008, the Companys wholly-owned subsidiary Randfontein Estates Limited
disposed of its Randfontein Cooke assets to a newly formed wholly owned subsidiary, Rand
Uranium, for a consideration of US$328 million, settled with Rand Uranium shares. In a
related transaction on the same date, 60% of these shares were sold to PRF for US$197
million. US$40 million was paid on the effective date and the balance of US$157 million
was paid on April 20, 2009. Interest was charged on the outstanding balance at 5% per
annum, resulting in US$3.3 million being recognized in the income statement. The
interest was also received on April 20, 2009.The conditions precedent for the second part of the Rand Uranium transaction relating to
the sale of the Old Randfontein assets to Rand Uranium were fulfilled on April 22, 2009.
These assets were valued at US$20 million. Additional shares were issued in settlement
and 60% of these shares were sold to PRF in terms of the agreement. PRF paid its portion
of the purchase price, US$12 million, in cash on April 20, 2009.The shareholders agreement includes certain restrictions on the Groups ability to
dispose of its shares in Rand Uranium for a period of up to four years from the
effective date, being November 21, 2008. In addition, PRF has the right, for a period of
up to four years after the effective date, to have first claim on the proceeds, up to a
specified amount, in the event of a disposal of the operations. Harmony has first right
of refusal in such an event. However due to the contingent nature of the provision, the
Group has made no adjustments to the associates carrying amount.The Group recognised a profit of US$171 million (before tax) on these transactions. This
profit is included in the profit from discontinued operations. Refer to note 15.During the seven months to June 2009, the Group recognized its share of the post
acquisition profits of US$5.1 million. The carrying value of the investment at June 30,
2009 is US$42.6 million.
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##### Table of Contents



Rand Uranium has a year end of June 30. At the time of finalization of this report, the
audited financial statements for Rand Uranium were not available. The unaudited
financial information of Rand Uranium for the period since acquisition of the investment
to June 2009 and as at June 30, 2009 are as follows:
 US DOLLARFigures in million
    
    2009
 100
    %Revenue
    
    
    101Production costs
    
    
    (71
    )Operating profit
    
    
    30Net profit
    
    
    13Non-current assets
    
    
    577Current assets
    
    
    29Total assets
    
    
    606Current liabilities
    
    
    23Non-current liabilities
    
    
    91Total liabilities
    
    
    114
 (c)
    
    On June 21, 2006, Harmony acquired 37.8%, or 2 295 563 ordinary shares, of the issued
share capital of Village Reef Gold Mining Company (1934) Limited at a total cost of
US$0.07 million. The equity stake was purchased from ARM at a price of US$3 cents per
share. Village is listed on the JSE Limited in the gold sector and has been dormant for
some time without any operating mines.At June 30, 2008, the fair value of the investment was US$0.09 million, calculated on a
share price of US$4 cents.During the twelve months to June 2008, the Group did not recognize its share of losses
from the associate. This unrecognized share amounted to US$0.08 million.On July 10, 2008, the Group disposed of its interest in Village Reef Gold Mining Company
to To The Point Growth Specialists Investments 2 (Proprietary) Limited, for a
consideration of US$0.1 million.(d)
    
    On June 18, 2007, the Group disposed of 17% of its share in Orpheo by Harmony
(Proprietary) Limited (Orpheo), which had been accounted for as a joint venture.
After the transaction, the Group held a 34% interest in Orpheo.At June 30, 2008, the fair value of the investment was evaluated by management. It was
determined that the carrying value exceeded the fair value and an impairment of US$0.06
million was recognized. During the 12 months ended June 30, 2008, the Groups share of
post-acquisition profit was US$0.04 million.On September 1, 2008, the Group disposed of its shares held in Orpheo to the remaining
shareholders, in exchange for a consideration of US$0.13.
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##### Table of Contents



23
    
    Investment in Joint Venture
 (a)
    
    Papua New Guinea (PNG) Partnership agreement (50%)On April 22, 2008 Morobe Consolidated Goldfields Limited and Wafi Mining Limited,
subsidiaries of Harmony Australia entered into a Master Purchase and Farm-in Agreement
with Newcrest. This agreement provided for Newcrest to purchase a 30.01% participating
interest (stage 1) and a further farm-in of an additional 19.99% participating interest
in Harmonys PNG gold and copper assets, giving them a 50% interest.On July 16, 2008, the conditions to the Master Purchase and Farm-in agreement were
finalized, which included regulatory and statutory approvals by the PNG Government.
Stage 1 completion took place on July 31, 2008, and a total consideration of US$229.8
million was received on August 7, 2008, of which US$50 million was placed in a jointly
controlled escrow account. This amount was subsequently released to Harmony following
confirmation of approval of an exploration license during September 2008 by the PNG
Mining authorities.Harmony recognized a profit of US$58 million on the completion of stage 1, which
represented a sale of an undivided interest of 30.01% of Harmonys PNG gold and copper
assets and liabilities comprising the joint venture.During the farm-in period, Harmony agreed to transfer a further 19.99% interest to
Newcrest in consideration for an agreement by Newcrest to meet certain expenditure which
would otherwise have to be undertaken by Harmony. The interest to be transferred were
conditional on the level of capital expenditures funded by Newcrest at certain
milestones, and by the end of February 2009, Newcrest acquired another 10% through the
farm-in arrangement. The final 9.99% was acquired by June 30, 2009.At the date of completion of each partys obligations under the farm-in arrangement,
Harmony derecognized the proportion of the mining assets and liabilities in the joint
venture that it has sold to Newcrest, and recognized its interest in the capital
expenditure at fair value. The difference between the net disposal proceeds and the
carrying amounts of the asset disposed of during the farm-in arrangement amounted to a
gain of US$54 million, which has been included in the consolidated income statements for
2009.
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The following are the Groups effective share of income, expenses, assets and
liabilities, which are included in the 2009 consolidated financial statements:
 US DOLLARFigures in million
    
    200950
    %Revenue
    
    
    Production costs
    
    
    Gross profit
    
    
    Other costs
    
    
    (12
    )Net loss
    
    
    (12
    )Non-current assets
    
    
    185Current assets
    
    
    44Total assets
    
    
    229Non-current liabilities
    
    
    161Current liabilities
    
    
    36Total liabilities
    
    
    197
 (b)
    
    Healthshare Health Solutions (Proprietary) LimitedThe Group held a joint venture interest in Healthshare Health Solutions (Proprietary)
Limited (Healthshare) (45%). On January 1, 2008, the Group disposed of its interest to
the remaining shareholders of Healthshare at a loss of US$0.3 million and derecognized
its share in assets and liabilities.For the six months ending December 31, 2007, the Groups share of the joint venture
profit or losses amounted to a profit of US$0.4 million.
 24
    
    Trade and other receivables
 US DOLLARFigures in million
    

2009
    
    
    2008CurrentFinancial assets:Trade receivables (gold)
    
    
    33
    
    
    
    30Other trade receivables (a)
    
    
    34
    
    
    
    44Provision for impairment
    
    
    (15
    )
    
    
    (17
    )Trade receivables  net
    
    
    52
    
    
    
    57Loans to associates and joint ventures (b)
    
    
    15
    
    
    
    Interest and other receivables
    
    
    11
    
    
    
    9Employee receivables
    
    
    2
    
    
    
    3Insurance claims receivable
    
    
    
    
    
    
    Non-financial assets:Prepayments
    
    
    10
    
    
    
    5Value added tax
    
    
    25
    
    
    
    38Total current trade and other receivables
    
    
    115
    
    
    
    112Non-currentFinancial assets:Loans to associates (c)
    
    
    24
    
    
    
    13Other loans receivable (d)
    
    
    2
    
    
    
    7Provision for impairment (e)
    
    
    (16
    )
    
    
    (2
    )Total non-current trade and other receivables
    
    
    10
    
    
    
    18
 F-52




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(a)
    
    Included in other trade receivables is an amount of US$9.1 million owed by Rand Uranium.(b)
    
    Included in this balance is an amount of US$4.8 million due from Rand Uranium for services and
goods supplied in terms of the service level agreements entered into between the Group and Rand
Uranium. Also included is an amount of US$9.7 million due to Harmonys Australian operations,
being the Newcrests portion of the Groups loan to the PNG joint venture companies.(c)
    
    Included in this balance is a loan of US$8.5 million to Rand Uranium. The loan bears interest at
a rate equal to the 91 Day JIBAR plus 250 basis points and is repayable within seven years. The
loan has been subordinated. Also included in this balance is a loan of US$15.0 million (2008:
US$13.2 million) owed by Pamodzi. The loan bore interest at prime rate until March 2009 when
Pamodzi was placed into liquidation. Harmony is a concurrent creditor in the Pamodzi Orkney
liquidation.(d)
    
    Loans comprise various loans, which have been valued by the directors. These loans are unsecured
and bear interest at rates set out in the individual loan agreements. The repayment terms are
also stipulated in the contracts and may vary from each other. Included in this balance is a
loan of US$1.1 million (2008: US$1.0 million) due from Ubuntu Small Scale Mining (Proprietary)
Limited (Ubuntu). The loan bears interest at prime less 3% with no fixed repayment terms.(e)
    
    Included in this balance is the amount of US$15.0 million (2008: US$0) relating to the loan owed
by Pamodzi and an amount of US$1.1 million (2008: US$1.0 million) relating to the loan owed by
Ubuntu. Interest of US$1.5 million was charged on impaired loans in 2009 (2008: US$0).The movement in the provision for impairment of trade receivables during the year was as follows:
 US DOLLARFigures in million
    
    2009
    
    
    2008Balance at beginning of year
    
    
    17
    
    
    
    3Provision for impairment of receivables
    
    
    4
    
    
    
    14Unused amounts reversed
    
    
    (6
    )
    
    
    Receivables written off during the year
    
    
    
    
    
    
    Balance at end of year
    
    
    15
    
    
    
    17
 The movement in the provision for impairment of loans receivables during the year was as follows:
 Balance at beginning of year
    
    
    2
    
    
    
    2Provision for impairments of loans
    
    
    13
    
    
    
    1Loans written off during the year
    
    
    (1
    )
    
    
    (1
    )Translation
    
    
    2
    
    
    
    Balance at end of year
    
    
    16
    
    
    
    2
 F-53




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##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008
 The ageing of trade receivables at the reporting date was:
 Gross
    
    
    ImpairmentJune 30, 2009Fully performing
    
    
    35
    
    
    
    Past due by 1 to 30 days
    
    
    14
    
    
    
    Past due by 31 to 60 days
    
    
    1
    
    
    
    Past due by 61 to 90 days
    
    
    1
    
    
    
    Past due by more than 90 days
    
    
    7
    
    
    
    6Past due by more than 361 days
    
    
    9
    
    
    
    967
    
    
    
    15
 Gross
    
    
    ImpairmentJune 30, 2008Fully performing
    
    
    51
    
    
    
    Past due by 1 to 30 days
    
    
    3
    
    
    
    Past due by 31 to 60 days
    
    
    
    
    
    
    Past due by 61 to 90 days
    
    
    1
    
    
    
    Past due by more than 90 days
    
    
    13
    
    
    
    11Past due by more than 361 days
    
    
    6
    
    
    
    674
    
    
    
    17
 The ageing of loans receivable at the reporting date was:
 Gross
    
    
    ImpairmentJune 30, 2009Fully performing
    
    
    10
    
    
    
    Past due by 1 to 30 days
    
    
    
    
    
    
    Past due by 31 to 60 days
    
    
    
    
    
    
    Past due by 61 to 90 days
    
    
    
    
    
    
    Past due by more than 90 days
    
    
    2
    
    
    
    2Past due by more than 361 days
    
    
    14
    
    
    
    1426
    
    
    
    16
 Gross
    
    
    ImpairmentJune 30, 2008Fully performing
    
    
    18
    
    
    
    Past due by 1 to 30 days
    
    
    
    
    
    
    Past due by 31 to 60 days
    
    
    
    
    
    
    Past due by 61 to 90 days
    
    
    
    
    
    
    Past due by more than 90 days
    
    
    2
    
    
    
    2Past due by more than 361 days
    
    
    
    
    
    
    20
    
    
    
    2
 Based on past experience, the Group believes that no impairment allowance is necessary in
respect of fully performing receivables as the amount relates to customers that have a good
track record with the Group. Similarly, the loans and receivables noted above, other than those
provided for, are fully performing and considered to be a low credit risk.During the 2008 financial year, the balance of US$6 million due from Ogoerion Construction CC
for the purchase of the Deelkraal surface assets was impaired. In the 2009 financial year, the
deal was renegotiated and the Deelkraal plant was excluded from the transaction.
 F-54




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During the year 2009 and 2008 there was no renegotiation of the terms of any receivable, other
than as discussed above.As at June 30, 2009, there was no collateral pledged or held for any of the receivables. At June
30, 2008, the Group held the Deelkraal surface assets as collateral for the amount owed by
Ogoerion Construction CC.
 25
    
    Inventories
 US DOLLARFigures in million
    
    2009
    
    
    2008Gold in lock-up
    
    
    37
    
    
    
    26Gold in process, ore stockpiles and bullion on hand
    
    
    43
    
    
    
    17Stores and materials at weighted average cost
    
    
    54
    
    
    
    46Total inventories
    
    
    134
    
    
    
    89Gold in-process at the following operations is valued at net realizable value:Doornkop
    
    
    30
    
    
    
    
 During the year, US$0.6 million (2008: US$1.4 million) was provided for slow moving stock. The total provision at June 30, 2009 was US$3.6 million (2008:
US$3.3 million).26
    
    Cash and cash equivalents
 US DOLLARFigures in million
    
    2009
    
    
    2008Cash at bank and short term deposits
    
    
    253
    
    
    
    53Disposal groups classified as held-for-sale
    
    
    
    
    
    
    Total cash and cash equivalents
    
    
    253
    
    
    
    53
 27
    
    Share capitalAuthorized1 200 000 000 (2008: 1 200 000 000) ordinary shares of SA 50 cents each10 958 904 (2008: 10 958 904) redeemable convertible preference shares of SA 50 cents eachIssued425 986 836 (2008: 403 253 756) ordinary shares of SA 50 cents each. All issued shares are fully paid.Included in the total of issued shares is an amount of 2 314 shares held by Lydenburg Exploration Limited, a wholly owned subsidiary of the Company.On December 1, 2008, Harmony issued 3 364 675 shares to Rio Tinto Limited. The Harmony shares were issued to cancel the Rio Tinto royalty rights over
Wafi-Golpu in Papua New Guinea. The value of issued shares was US$23 million at R71.98 per share.
 F-55




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##### Table of Contents



Harmony engaged in capital raising by issuing two tranches of shares following the resolution passed by shareholders at the Annual General Meeting held on
November 24, 2008. The first tranche was issued into the open market between November 25, 2008 and December 19, 2008. In this tranche, 10 504 795 Harmony
 shares were issued at an average subscription price of R93.20, resulting in US$97.9 million before costs being raised. The cost of the issue was US$1.9
million, or 1.5%, of the value of shares issued.A second tranche of shares was issued for cash into the open market between February 10, 2009 and March 6, 2009. This tranche consisted of 7 540 646
Harmony shares at an average subscription price of R124.45, resulting in US$93.5 million before costs being raised. The cost of the issue was US$1.6
million or 1.6% of the value of shares issued. The combined share issue amounts to US$192 million, or 4.5%, of the issued share capital as at September
30, 2008.The unissued shares are under the control of the directors until the forthcoming annual general meeting. Note 36 set out details in respect of the share
option scheme and shares held in trust for employees of the Group.The Company has a general authority to purchase its shares up to a maximum of 10% of the issued share capital in any one financial year. This is in terms
of the annual general meeting of shareholders on November 24, 2008. The general authority is subject to the Listings Requirements of the JSE Securities
Exchange South Africa and the Companies Act no 61 of 1973 of South Africa, as amended.28
    
    Other reserves
 US DOLLARFigures in million
    
    2009
    
    
    2008Foreign exchange translation reserve (a)
    
    
    (111
    )
    
    
    (216
    )Mark-to-market of available-for-sale financial assets (b)
    
    
    4
    
    
    
    (2
    )Equity component of convertible bond (c)
    
    
    41
    
    
    
    41Acquisition of non-controlling interest in subsidiary (d)
    
    
    (57
    )
    
    
    (57
    )Share-based payments (e)
    
    
    55
    
    
    
    42Other
    
    
    (4
    )
    
    
    (4
    )Total other reserves
    
    
    (72
    )
    
    
    (196
    )
 The different categories of other reserves are made up as follows:
 Foreign exchange translation reserveBalance at beginning of year
    
    
    (216
    )
    
    
    30Realized portion reclassified through profit or loss
    
    
    (53
    )
    
    
    Current years foreign exchange movement
    
    
    158
    
    
    
    (246
    )Balance at end of year
    
    
    (111
    )
    
    
    (216
    )
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---



##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008Mark-to-market of available-for-sale financial assetsBalance at beginning of year
    
    
    (2
    )
    
    
    (44
    )Impairment recognized in profit or loss
    
    
    12
    
    
    
    Tax on impairment
    
    
    (3
    )
    
    
    Realized portion reclassified through profit or loss
    
    
    (2
    )
    
    
    47Tax on realized portion
    
    
    Mark-to-market  unrealized
    
    
    (3
    )
    
    
    (9
    )Tax on mark-to-market
    
    
    1
    
    
    
    4Translation
    
    
    1
    
    
    
    Balance at end of year
    
    
    4
    
    
    
    (2
    )Equity component of convertible bondBalance at beginning/end of year
    
    
    41
    
    
    
    41Acquisition of non-controlling interest in subsidiaryBalance at beginning/end of year
    
    
    (57
    )
    
    
    (57
    )Share-based paymentsBalance at beginning of year
    
    
    42
    
    
    
    36Share-based payments expensed
    
    
    13
    
    
    
    6Balance at end of year
    
    
    55
    
    
    
    42Other reservesBalance at beginning/end of year
    
    
    (4
    )
    
    
    (4
    )
 (a)
    
    The balance of the foreign exchange translation reserve movement represents the cumulative
translation effect of the Companys off-shore operations as well as the translation effect from
Rand to US dollar.The realised portion reclassified through profit or loss relates to the repayment of the loans
from Harmony Australia and PNG. Refer to note 7(a) for further detail.(b)
    
    The balance of the mark-to-market reserve represents the movement in the fair value of the
available-for-sale financial assets. For details on the movement, refer to note 21.(c)
    
    On May 24, 2004, the Group issued a convertible bond. The amount representing the value of the
equity conversion component is included in other reserves, net of deferred income taxes. The
equity conversion component is determined on the issue of the bonds and is not changed in
subsequent periods. Refer to note 29(a) for more detail.(d)
    
    On March 15, 2004 Harmony announced that it had made an off market cash offer to acquire all the
ordinary shares, listed and unlisted options of Abelle, held by non-controlling interests. The
excess of the purchase price of US $86.5 million (A$123 million) over the carrying amount of the
non-controlling interest acquired, amounting to US$55 million, has been accounted for under
other reserves.
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##### Table of Contents



(e)
    
    The Group issues equity-settled instruments to certain qualifying employees under an Employee
Share Option Scheme to purchase shares in the Companys authorised but unissued ordinary shares.
Equity share-based payments are measured at the fair value of the equity instruments at the date
of the grant. Share-based payments are expensed over the vesting period. During 2009 a
share-based payment expense of US$12.6 million (2008: US$5.9 million was charged to the income
statement. (Refer to note 36 for more detail).
 29
    
    Borrowings
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Unsecured borrowingsConvertible unsecured fixed rate bonds (a)
    
    
    
    
    
    
    Principal amount
    
    
    
    
    
    
    218Equity conversion component, net of deferred tax liability
    
    
    
    
    
    
    (41
    )Deferred tax liability on initial recognition
    
    
    
    
    
    
    (9
    )Liability component on initial recognition
    
    
    
    
    
    
    168Unwinding of time value of money portion
    
    
    
    
    
    
    40Less: amortized bond issue costs
    
    
    
    
    
    
    (1
    )Translation
    
    
    
    
    
    
    1
    
    
    
    208Less: current portion
    
    
    
    
    
    
    (208
    )Africa Vanguard Resources (Proprietary) Limited (b)
    
    
    4
    
    
    
    4Total unsecured long-term borrowings
    
    
    4
    
    
    
    4Secured borrowingsNedbank Limited (c)
    
    
    
    
    
    
    Liability amount
    
    
    29
    
    
    
    25Less: current portion
    
    
    (29
    )
    
    
    (25
    )Westpac Bank (d)
    
    
    10
    
    
    
    27Liability amount
    
    
    14
    
    
    
    33Less: current portion
    
    
    (4
    )
    
    
    (6
    )Nedbank Limited (e)Principal amount
    
    
    
    
    
    
    256Less: amortized issue costs
    
    
    
    
    
    
    (1
    )
    
    
    
    255Less: current portion
    
    
    
    
    
    
    (255
    )Total secured long-term borrowings
    
    
    10
    
    
    
    27Total long-term borrowings
    
    
    14
    
    
    
    31Total current portion of borrowings
    
    
    33
    
    
    
    494Total borrowings
    
    
    47
    
    
    
    525
 F-58




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##### Table of Contents



(a)
    
    On May 21, 2004, Harmony issued an international unsecured fixed rate convertible bond in an
aggregate principal amount of US $251.9 million. The bonds mature five years from the issue date
at their nominal value of R1 700 million unless converted into the companys ordinary shares.
The bonds are convertible at the option of the bondholders at any time on or after July 1, 2004
and up to and including May 15, 2009, unless previously redeemed, converted or purchased and
cancelled, into fully paid ordinary shares, at nominal value Rand 0.50 per share. The number of
ordinary shares to be issued at such a conversion shall be determined by dividing the principal
amount of each bond by the conversion price in effect on the relevant conversion date. The
initial conversion price is R121 per ordinary share subject to certain standard anti-dilutive
provisions such as a rights offering, that are designed to maintain the value of the conversion
option. No bond holders elected to convert their bonds into ordinary shares by May 15, 2009, and
as a result all the fixed rate convertible bonds were redeemed on May 20, 2009.Interest at a rate of 4.875% per annum is payable semi-annually in arrears on May 21 and
November 21 of each year, commencing November 21, 2004. The fair values of the liability
component and the equity conversion component were determined on the issue of the bond. The fair
value of the liability component, included in borrowings, was calculated using a market interest
rate for an equivalent non-convertible bond (10%). The residual amount, representing the value
of the equity conversion component, is included in accumulated other comprehensive income net of
deferred income taxes. In subsequent periods, the liability component continues to be presented
on the amortized cost basis, until extinguished on conversion or maturity of the bonds. The
equity conversion component is determined on the issue of the bonds and is not changed in
subsequent periods. The bonds were listed on the London Stock Exchange for Bonds. The terms and
conditions of the bonds prohibit Harmony and its material subsidiaries from creating any
encumbrance or security interest over any of its assets to secure any relevant debt (or any
guarantee or indemnity in respect of any relevant debt) without according the same security to
the bondholders or without obtaining the prior approval of the bondholders. Included in the
amortization charge as per the income statement is US$0.9 million (2008: US $1.2 million for
amortization of the bond issue costs.(b)
    
    The loan to Africa Vanguard Resources (Doornkop) (Proprietary) Limited (AVRD) from its holding
company African Vanguard Resources (Proprietary) Limited remained unchanged from the previous
year. In 2005 AVRD borrowed an additional US$2.3 million to service working capital commitments.
This increased the initial loan of US$1.8 million to US$4.1 million. The loan is unsecured and
interest free, with no fixed terms of repayment over the short term. Refer to note 29(c).
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##### Table of Contents



(c)
    
    On July 30, 2003, AVRD entered into a term loan facility of US$19.1 million with Nedbank Limited
for the purpose of partially funding AVRDs purchase of an undivided 26% share of the Mining
titles, to be contributed to the Doornkop South Reef project. Interest at a variable rate equal
to JIBAR plus 2% shall be repayable to the extent that the AVRD received a portion of profit
from the project. Unpaid interest shall be capitalized and repaid with the loan amount.
Initially, the loan amount and any interest accrued was repayable on July 30, 2008, but the
repayment date has been extended and negotiations are underway to further extend repayment to
the date that conditions precedent on the sale of the 26% interest back to the Group are
fulfilled. Refer to note 17(b). Interest accrued and capitalized during the year ended June 30,
2009 amounted to US$3.3 million (2008: US$4.1 million).The facility from Nedbank to AVRD is guaranteed by Harmony and certain of its subsidiaries. As a
result of this guarantee and other factors, the Company is required to consolidate AVRD and has
therefore included the loans from Nedbank and Africa Vanguard Resources (Proprietary) Limited in
its consolidated borrowings.(d)
    
    In July 2007, Morobe Consolidated Goldfields (MCG) entered into a finance lease agreement with
Westpac Bank for the purchase of mining fleet to be used on the Hidden Valley project.During the current year, MCG sold 50% of the finance lease liability to Newcrest in terms of the
Master Purchase and Farm-In agreement.Interest is charged at US  LIBOR plus 1.25% per annum. Interest is accrued monthly and lease
installments are repayable quarterly terminating June 30, 2013. The mining fleet financed is
used as security for these loans.The future minimum lease payments are as follows:
 US DOLLARFigures in million
    
    2009
    
    
    2008Due within one year
    
    
    4
    
    
    
    7Due between one and two years
    
    
    5
    
    
    
    7Due between two and five years
    
    
    6
    
    
    
    2315
    
    
    
    37Future finance charges
    
    
    (1
    )
    
    
    (4
    )14
    
    
    
    33
 (e)
    
    On September 28, 2007, the Company entered into a term loan facility of US $283.9 million with
Nedbank Limited, for the purpose of partially funding capital expenditure in respect of
projects, as well as to repay the short term bridging loan amounting to US $68.6 million.
Interest accrues on a day to day basis over the term of the loan at a variable interest rate,
which is fixed for three month periods, equal to the JIBAR plus 2.75% plus banking costs.
Amortization bond cost for the year amounted to US$1.2 million (2008: US$1.5 million).Interest was repayable quarterly commencing on September 28, 2007. The loan was repaid in
several tranches during the 2009 year with the
final payment on April 21, 2009.
 F-60




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The exposure of the Groups borrowings to changes in interest rates
and contractual repricing is as follows:
 US DOLLARFigures in million
    
    2009
    
    
    2008Variable
    
    
    10
    
    
    
    27Current
    
    
    33
    
    
    
    494Between 1 to 2 years
    
    
    
    
    
    
    Between 2 to 5 years
    
    
    
    
    
    
    Over 5 years
    
    
    4
    
    
    
    4Total borrowings
    
    
    47
    
    
    
    525Variable
    
    
    21.6
    %
    
    
    5.1
    %Current
    
    
    69.6
    %
    
    
    94.1
    %Between 1 to 2 years
    
    
    0.0
    %
    
    
    0.0
    %Between 2 to 5 years
    
    
    0.0
    %
    
    
    0.0
    %Over 5 years
    
    
    8.8
    %
    
    
    0.8
    %Total borrowings
    
    
    100.0
    %
    
    
    100.0
    %
 The maturity of borrowings is as follows:
 Current
    
    
    33
    
    
    
    494Between 1 to 2 years
    
    
    4
    
    
    
    6Between 2 to 5 years
    
    
    6
    
    
    
    21Over 5 years
    
    
    4
    
    
    
    4Total borrowings
    
    
    47
    
    
    
    525
 The effective interest rates at the balance sheet date were as follows:
 Convertible unsecured fixed rate bonds (a) *
    
    
    0.0
    %
    
    
    10.0
    %Africa Vanguard Resources (Proprietary) Limited (b)
    
    
    0.0
    %
    
    
    0.0
    %Nedbank Limited (c)
    
    
    11.9
    %
    
    
    13.4
    %Westpac Bank (d)
    
    
    2.0
    %
    
    
    4.1
    %Nedbank Limited (e) *
    
    
    0.0
    %
    
    
    14.5
    %
 *
    
    Loan repaid in fullOther borrowingsThe level of the Harmonys borrowing powers, as determined by its
Articles of Association, shall not, except with the consent of the
Harmonys general meeting, exceed the greater of R40 million or the
aggregate from time to time of the issued and paid-up share capital of
the Company, together with the aggregate of the amounts standing to
the credit of all distributable and non-distributable reserves
(including minority interests in subsidiary companies and provisions
for deferred taxation) and any share premium accounts of the Group. At
year end, total borrowings amounted to US $47 million (2008: US $525
million).
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##### Table of Contents



30
    
    Provision for environmental rehabilitationThe Groups mining and exploration activities are subject to extensive environmental laws and regulations. These laws and regulations
are continually changing and are generally becoming more restrictive. The Group has made, and expects to make in the future,
expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated
future reclamation costs are based principally on legal and regulatory requirements. The following is a reconciliation of the total
liability for environmental rehabilitation:
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Provision raised for future rehabilitationBalance at beginning of year
    
    
    196
    
    
    
    192Disposal of assets
    
    
    (32
    )
    
    
    (16
    )Change in estimate  Balance sheet
    
    
    27
    
    
    
    12Change in estimate  Income statement
    
    
    
    
    
    
    1Inflation present value adjustment and time value of money component
    
    
    13
    
    
    
    22Translation
    
    
    (6
    )
    
    
    (15
    )Balance at end of year
    
    
    198
    
    
    
    196Disposal groups classified as held-for-sale
    
    
    
    
    
    
    (51
    )Total provision for environmental rehabilitation
    
    
    198
    
    
    
    145
 While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, the Group has estimated that, based on
current environmental and regulatory requirements, the total cost for the mines, in current monetary terms, is approximately US$285
million (2008: US$269 million). Refer to note 3.4 for the estimations and judgments used in the calculations.Included in the charge to the income statement is an amount US$4 million (2008: US$6 million) relating to the time value of money.
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Future net obligationsUltimate estimated rehabilitation cost
    
    
    285
    
    
    
    269Amounts invested in environmental trust funds (Refer to note 20)
    
    
    (207
    )
    
    
    (206
    )Total future net obligations
    
    
    78
    
    
    
    64
 The Group intends to finance the ultimate rehabilitation costs from the money invested in environmental trust funds, ongoing
contributions, as well as the proceeds on sale of assets and gold from plant clean-up at the time of mine closure.31
    
    Retirement benefit obligation and other provisions
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Non-currentRetirement benefit obligation (Refer to note 34)
    
    
    20
    
    
    
    17Other
    
    
    2
    
    
    
    1Total non-current provisions
    
    
    22
    
    
    
    18
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32
    
    Trade and other payables
  US DOLLARFigures in million
    
    2009
    
    
    2008
 Financial liabilities:Trade payables
    
    
    63
    
    
    
    86Other liabilities
    
    
    8
    
    
    
    8Non-financial liabilities:Payroll accruals
    
    
    39
    
    
    
    37Leave liabilities
    
    
    31
    
    
    
    27Shaft related accruals
    
    
    20
    
    
    
    16Other accruals
    
    
    27
    
    
    
    21Value added tax
    
    
    1
    
    
    
    6Total trade and other payables
    
    
    189
    
    
    
    201
 Leave liabilityEmployee entitlements to annual leave are recognized on an ongoing basis. An accrual is made for the estimated liability for annual
leave as a result of services rendered by employees up to the balance sheet date. The movement in the liability recognized in the
balance sheet is as follows:
  US DOLLARFigures in million
    
    2009
    
    
    2008
 Balance at beginning of year
    
    
    29
    
    
    
    36Benefits paid
    
    
    (27
    )
    
    
    (36
    )Movement due to sale of business
    
    
    (2
    )
    
    
    (2
    )Translation
    
    
    (1
    )
    
    
    (1
    )Total expense per income statement
    
    
    32
    
    
    
    3231
    
    
    
    29Disposal groups classified as held-for-sale
    
    
    
    
    
    
    (2
    )Balance at end of year
    
    
    31
    
    
    
    27
 33
    
    Cash generated by operationsAll amounts disclosed include discontinued operations.
  US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 Reconciliation of profit/(loss) before taxation to cash generated by operations:Profit before taxation
    
    
    405
    
    
    
    33
    
    
    
    90Adjustments for:Amortization and depreciation
    
    
    167
    
    
    
    123
    
    
    
    163Impairment of assets
    
    
    61
    
    
    
    36
    
    
    
    38Loss/(gain) on financial instruments
    
    
    
    
    
    
    1
    
    
    
    (6
    )Profit on sale of mining assets
    
    
    (287
    )
    
    
    (15
    )
    
    
    (25
    )Net increase/(decrease) in provision for post retirement benefits
    
    
    1
    
    
    
    1
    
    
    
    (2
    )Net increase/(decrease) in provision for environmental rehabilitation
    
    
    
    
    
    
    2
    
    
    
    (1
    )(Profit)/loss from associates
    
    
    (1
    )
    
    
    11
    
    
    
    3Impairment of investment in associate
    
    
    14
    
    
    
    12
    
    
    
    Share-based payments
    
    
    13
    
    
    
    6
    
    
    
    6Fair value loss/(gain) on financial instrument
    
    
    10
    
    
    
    (4
    )
    
    
    (15
    )Loss on sale of listed investments
    
    
    
    
    
    
    63
    
    
    
    3Profit on sale of investment in associate
    
    
    
    
    
    
    
    
    
    
    (33
    )Dividends received
    
    
    
    
    
    
    (5
    )
    
    
    (3
    )Interest received
    
    
    (51
    )
    
    
    (38
    )
    
    
    (25
    )Interest paid
    
    
    26
    
    
    
    76
    
    
    
    66Cost on closure of hedge positions
    
    
    
    
    
    
    
    
    
    
    (80
    )Provision for doubtful debts
    
    
    11
    
    
    
    13
    
    
    
    1Bad debts written off
    
    
    3
    
    
    
    
    
    
    
    Other non cash transactions
    
    
    
    
    
    
    (13
    )
    
    
    (16
    )
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US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Effect of changes in operating working capital items:Receivables
    
    
    (15
    )
    
    
    4
    
    
    
    (27
    )Inventories
    
    
    (20
    )
    
    
    7
    
    
    
    (30
    )Accounts payable and accrued liabilities
    
    
    (18
    )
    
    
    (45
    )
    
    
    57Cash generated by operations
    
    
    319
    
    
    
    268
    
    
    
    164
 Additional cash flow information
  Acquisitions and disposals of Subsidiaries / Businesses:
 For the year ended June 2009
 (a)
    
    Disposal of VillageOn July 10, 2008, the Group disposed of its 37.8% interest in Village
to To The Point Growth Specialists Investments 2 (Proprietary)
Limited, for a consideration of US$0.1 million. The investment in
Village as at June 30, 2009 had a fair value of US$0.09 million.(b)
    
    Disposal of OrpheoOn September 1, 2008, the Group disposed of its 34% interest in Orpheo
for a consideration of US$0.13. The investment had been fully impaired
on the date of sale.(c)
    
    Disposal of Randfontein Cooke AssetsDuring the year, the Group disposed of its Cooke and Old Randfontein
assets to Rand Uranium, a wholly owned subsidiary. In a related
transaction, 60% of Rand Uranium shares were disposed of to PRF in two
tranches. For detail, refer to note 22(b).The aggregate fair value of the assets and liabilities sold were:
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Transaction oneProperty, plant and equipment
    
    
    42
    
    
    
    
    
    
    
    Environmental trust fund
    
    
    3
    
    
    
    
    
    
    
    Rehabilitation liability
    
    
    (4
    )
    
    
    
    
    
    
    Other costs
    
    
    (2
    )
    
    
    
    
    
    
    Foreign exchange movements
    
    
    5
    
    
    
    
    
    
    
    Profit on disposal
    
    
    153
    
    
    
    
    
    
    
    Proceeds received in cash
    
    
    197
    
    
    
    
    
    
    
    Transaction twoProperty, plant and equipment
    
    
    1
    
    
    
    
    
    
    
    Environmental trust fund
    
    
    8
    
    
    
    
    
    
    
    Rehabilitation liability
    
    
    (13
    )
    
    
    
    
    
    
    Foreign exchange movements
    
    
    (2
    )
    
    
    
    
    
    
    Profit on disposal
    
    
    18
    
    
    
    
    
    
    
    Proceeds received in cash
    
    
    12
    
    
    
    
    
    
    
    
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(d)
    
    Profit on disposal of property, plant and equipment-PNG Joint VentureDuring the year Harmony and Newcrest entered into a joint venture agreement, which
provided that Newcrest would purchase a 30.01 participating interest and a further
buy-out of an additional 19.99% participating interest in Harmonys PNG gold and copper
assets.The aggregate fair value of the assets and liabilities sold were:
  
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Stage 1: 30.01% Participating interestProperty, plant and equipment
    
    
    185
    
    
    
    
    
    
    
    Trade and other receivables
    
    
    6
    
    
    
    
    
    
    
    Inventory
    
    
    1
    
    
    
    
    
    
    
    Long-term loans
    
    
    (10
    )
    
    
    
    
    
    
    Rehabilitation liability
    
    
    
    
    
    
    
    
    
    
    Foreign exchange movements
    
    
    (11
    )
    
    
    
    
    
    
    Profit on disposal
    
    
    58
    
    
    
    
    
    
    
    Proceeds received in cash
    
    
    229
    
    
    
    
    
    
    
    Stage 2: 10% Participating interestProperty, plant and equipment
    
    
    52
    
    
    
    
    
    
    
    Trade and other receivables
    
    
    1
    
    
    
    
    
    
    
    Inventory
    
    
    1
    
    
    
    
    
    
    
    Long-term loans
    
    
    (3
    )
    
    
    
    
    
    
    Trade and other payables
    
    
    (5
    )
    
    
    
    
    
    
    Rehabilitation liability
    
    
    
    
    
    
    
    
    
    
    Profit on disposal
    
    
    44
    
    
    
    
    
    
    
    Disposal proceeds
    
    
    90
    
    
    
    
    
    
    
    Proceeds received in cash
    
    
    
    
    
    
    
    
    
    
    Proceeds received by way of the farm-in agreement
    
    
    90
    
    
    
    
    
    
    
    Stage 3: 9.99% Participating interestProperty, plant and equipment
    
    
    72
    
    
    
    
    
    
    
    Trade and other receivables
    
    
    2
    
    
    
    
    
    
    
    Inventory
    
    
    3
    
    
    
    
    
    
    
    Long-term loans
    
    
    (3
    )
    
    
    
    
    
    
    Trade and other payables
    
    
    (6
    )
    
    
    
    
    
    
    Rehabilitation liability
    
    
    (3
    )
    
    
    
    
    
    
    Profit on disposal
    
    
    10
    
    
    
    
    
    
    
    Disposal proceeds
    
    
    75
    
    
    
    
    
    
    
    Proceeds received in cash
    
    
    (6
    )
    
    
    
    
    
    
    Proceeds received by way of the farm-in agreement
    
    
    69
    
    
    
    
    
    
    
    
 The principal non-cash transactions for the year were the acquisition of PNG royalty
agreement (refer to note 17(c)), share-based payments (refer to note 36) and share
exchange of Dioro for Avoca (refer to note 21(b) and( c)).
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For the year ended June 2008
 (a)
    
    On December 6, 2007, the Group disposed of its assets and liabilities in South Kal Mine
to Dioro. The aggregate fair value of the assets and liabilities sold were:
  US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 Property, plant and equipment
    
    
    
    
    
    
    50
    
    
    
    Consumables
    
    
    
    
    
    
    3
    
    
    
    Shares
    
    
    
    
    
    
    3
    
    
    
    Rehabilitation liability
    
    
    
    
    
    
    (8
    )
    
    
    Loss on disposal
    
    
    
    
    
    
    (12
    )
    
    
    Disposal proceeds
    
    
    
    
    
    
    36
    
    
    
    Proceeds received by way of shares
    
    
    
    
    
    
    (18
    )
    
    
    Proceeds received in cash
    
    
    
    
    
    
    18
    
    
    
    
 (b)
    
    On February 27, 2008, the Group disposed of its assets and liabilities in its Orkney
operations to Pamodzi Gold Limited. The aggregate fair value of assets and liabilities
sold were:
  US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 Property, plant and equipment
    
    
    
    
    
    
    38
    
    
    
    Environmental trust fund
    
    
    
    
    
    
    4
    
    
    
    Leave liability
    
    
    
    
    
    
    (2
    )
    
    
    Rehabilitation liability
    
    
    
    
    
    
    (7
    )
    
    
    Profit on disposal
    
    
    
    
    
    
    13
    
    
    
    Disposal proceeds
    
    
    
    
    
    
    46
    
    
    
    Proceeds received by way of shares
    
    
    
    
    
    
    (46
    )
    
    
    Cash and cash equivalent at disposal
    
    
    
    
    
    
    
    
    
    
    
 The principal non-cash transactions for the year were the acquisition of the PNG royalty
agreement (refer to note 17(c)), share-based payments (refer to note 36) and the
purchase of assets under finance lease (refer to note 29).
 For the year ended June 2007
 (a)
    
    On May 28, 2007, the Group disposed of 17% of its 50% share in a joint venture with
Orpheo to AngloGold Ashanti Limited. The aggregate fair value of the assets acquired and
liabilities assumed, and subsequently disposed of, were :
  US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    1Investment in associate
    
    
    
    
    
    
    
    
    
    
    (1
    )Total purchase price
    
    
    
    
    
    
    
    
    
    
    Proceeds received by way of accounts receivable
    
    
    
    
    
    
    
    
    
    
    Cash and cash equivalents at disposal
    
    
    
    
    
    
    
    
    
    
    
 The principal non-cash transactions for the year were the share-based payments (refer to
note 36) and the disposal of the investment in associate in Western Areas (note 9).
 F-66




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34
    
    Retirement benefit obligations
 (a)
    
    Pension and provident funds:The Group contributes to several pension and provident
 funds governed by the Pension Funds Act, 1956 for the employees of its South African
subsidiaries. The pension funds are multi-employer industry plans. The Groups liability
is limited to its annually determined contributions.The provident funds are funded on the ''money accumulative basis with the members and
employers contributions having been fixed in the constitution of the funds.The Australian group companies make contributions to each employees Superannuation
(pension) funds in accordance with the Superannuation Guarantee Scheme (SGS). The SGS is
a Federal Government initiative enforced by law which compels employers to make regular
payments to regulated funds providing for each employee on their retirement. The SGS
were set at a minimum of 9% of gross salary and wages for the 2009 year (2008: 9%). The
fund is a defined contribution plan.Substantially all the Groups employees are covered by the above mentioned retirement
benefit plans. Funds contributed by the Group for the 2009 financial year amounted to
US$39.8 million (2008: US$46.5 million).(b)
    
    Post-retirement benefits other than pensions:Most of the supervisory and managerial
workers in South Africa participate in the Minemed medical scheme, as well as other
medical schemes. The Group contributes to these schemes on behalf of current employees
and retired employees who retired prior to December 31, 1996 (Minemed scheme). The
annual contributions for these retired employees are fixed. The Groups contributions to
these schemes on behalf of current employees amounted to US$8.6 million for 2009 and
US$9.8 million for 2008.With the exception of some Freegold employees included from date of acquisition, no
post-retirement benefits are available to other current workers. No liability exists for
employees who were members of these schemes who retired after the date noted above. The
medical schemes pay certain medical expenses for both current and retired employees and
their dependents. Current and retired employees pay an annual fixed contribution to
these schemes.Assumptions used to determine the liability relating to the Minemed medical scheme
included, a discount rate of 10%, no increases in employer subsidies (in terms of the
agreement) and mortality rates according to the SA ''a mf tables and a medical
inflation rate of 7.8%. It is also assumed that all members will retire at the age of 60
and will remain on the current benefit option.
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The liability is based on an actuarial valuation conducted during the year ended June
30, 2009, using the projected unit credit method. The next actuarial valuation will be
performed on June 30, 2010.
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Present value of unfunded obligations
    
    
    20
    
    
    
    17Movement in the liability recognized in the balance sheetBalance at beginning of year
    
    
    17
    
    
    
    15Contributions paid
    
    
    
    
    
    
    Other expenses included in staff costs/current service cost
    
    
    1
    
    
    
    1Interest cost
    
    
    2
    
    
    
    1Net actuarial loss recognized during the year
    
    
    
    
    
    
    2Translation
    
    
    
    
    
    
    (2
    )Balance at end of year
    
    
    20
    
    
    
    17
 The principal actuarial assumptions used for accounting purposes were:
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Discount rate
    
    
    10.0
    %
    
    
    12.0
    %Healthcare inflation rate
    
    
    7.8
    %
    
    
    9.8
    %Normal retirement age
    
    
    60
    
    
    
    60The net liability of the defined benefit plan is as follows:Present value of defined benefit obligation
    
    
    20
    
    
    
    17Fair value of plan assets
    
    
    
    
    
    
    Net liability
    
    
    20
    
    
    
    17
 The present value of the defined benefit obligation was US$15.2 million in 2007,
US$14.9 million in 2006 and US$13.3 million in 2005.The effect of a one percentage point increase and decrease in the assumed medical cost
trend rates is as follows:
 US DOLLARFigures in million
    
    2009
    
    
    2008
 1%
    
    
    1%Increase
    
    
    IncreaseEffect on:Aggregate of service cost and interest cost
    
    
    
    
    
    
    Defined benefit obligation
    
    
    3
    
    
    
    3
 1%
    
    
    1%Decrease
    
    
    DecreaseEffect on:Aggregate of service cost and interest cost
    
    
    
    
    
    
    Defined benefit obligation
    
    
    3
    
    
    
    2
 The Group expects to contribute approximately US$0.5 million to its benefit plan in 2010.
 35
    
    Employee benefits
 US DOLLARFigures in million
    
    2009
    
    
    2008
 Number of permanent employees as at 30 June:South African operations*
    
    
    37,028
    
    
    
    36,839International operations**
    
    
    48
    
    
    
    873Total number of permanent employees
    
    
    37,076
    
    
    
    37,712
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US DOLLARFigures in million
    
    2009
    
    
    2008
 Aggregated earningsThe aggregate earnings of employees including directors were:
 Salaries and wages and other benefits
    
    
    509
    
    
    
    591Retirement benefit costs
    
    
    40
    
    
    
    47Medical aid contributions
    
    
    9
    
    
    
    10Total aggregated earnings
    
    
    558
    
    
    
    648
 *
    
    There was no employees attributable to the discontinued operations at June 30, 2009 (2008: 3 618).**
    
    The total employees at Australian operations at June 30, 2009 was 48 (2008: 873). Of this total, no employees (2008: 0) were attributable to
the discontinued operations. The employee numbers reduced primarily due to the disposal of 50% of the PNG assets to Newcrest. Our attributable
portion of the JV employees is 425.
 During the 2009 year, US$2 million (2008: US$0.7 million) was included in the payroll cost for termination costs. This excludes the cost for
voluntary retrenchment process (refer to note 5).Directors remunerationDuring the fiscal 2009, the directors received remuneration of US$1.1 million, comprising of US$0.74 million for salaries, US$0.03 million for
retirement contributions and US$0.33 million for bonuses. The non-executive directors received US$0.4 million in directors fees. The aggregate
of remuneration received by senior management was US$2.7 million].During the fiscal 2008, the directors received remuneration of US$1.2 million, comprising of US$0.4 million for salaries, US$0.5 million for
retirement contributions and US$0.3 million for bonuses. The non-executive directors received US$0.3 million in directors fees. The aggregate
of remuneration received by senior management was US$2.7 million.
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36
    
    Share option schemeThe Group currently has the 2001, 2003 schemes and the 2006 share plan that are active. The
objective of these schemes is to recognize the contributions of senior staff to the Groups
financial position and performance and to retain key employees.The options granted under the 2001 and 2003 schemesA fifth of the options granted under the 2001 and 2003 schemes are exercisable annually from
the grant date with an expire date of 10 years from the grant date. The offer price of these
options equaled the closing market price of the underlying shares on the trading date immediately
preceding the granting of the options.On resignation and retirement, share options which have not yet vested will lapse and share
options which have vested may be taken up at the employees election before the last day of
service. Payment of shares forfeited will therefore not be required. On death, all options vest
immediately and the deceased estate has a period of twelve months to exercise these options.Following the introduction of the 2006 share plan, no further options are expected to be
allocated under these two schemes.
 Number of share options relating to the 2001 and 2003 option schemes
    
    2009
    
    
    2008Share options granted
    
    
    28,442,420
    
    
    
    28,442,420Exercised
    
    
    18,570,971
    
    
    
    17,249,668Vested but not exercised
    
    
    1,791,215
    
    
    
    1,792,796Unvested
    
    
    1,059,343
    
    
    
    2,735,443Forfeited and lapsed
    
    
    7,020,891
    
    
    
    6,664,513Vesting periods of unvested sharesWithin one year
    
    
    1,059,343
    
    
    
    1,367,722One to two years
    
    
    
    
    
    
    1,367,721Total number of shares unvested
    
    
    1,059,343
    
    
    
    2,735,443
 No options were granted in the 2008 and 2009 years for the 2001 and 2003 option schemes.
 WeightedaverageoptionpriceActivity on share options granted but not yet exercised
    
    Shares
    
    
    (SA Rand)For the year ended June 30, 2009Balance at beginning of year
    
    
    4,528,239
    
    
    
    49.14Options exercised
    
    
    (1,321,303
    )
    
    
    51.42Options forfeited and lapsed
    
    
    (356,378
    )
    
    
    53.12Balance at end of year
    
    
    2,850,558
    
    
    
    47.58For the year ended June 30, 2008Balance at beginning of year
    
    
    8,129,669
    
    
    
    48.38Options exercised
    
    
    (1,764,132
    )
    
    
    49.16Options forfeited and lapsed
    
    
    (1,837,298
    )
    
    
    45.77Balance at end of year
    
    
    4,528,239
    
    
    
    49.14
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At 30 June
    
    
    Option price
    
    
    RemainingList of options granted but not yet exercised (listed by grant date)
    
    2009
    
    
    (SA Rand)
    
    
    life (years)April 24, 2001
    
    
    17,000
    
    
    
    36.50
    
    
    
    1.8November 20, 2001
    
    
    177,701
    
    
    
    49.60
    
    
    
    2.4September 23, 2002
    
    
    13,647
    
    
    
    66.00
    
    
    
    3.2March 27, 2003
    
    
    125,300
    
    
    
    91.60
    
    
    
    3.7August 10, 2004
    
    
    576,558
    
    
    
    66.15
    
    
    
    5.1April 26, 2005
    
    
    1,940,352
    
    
    
    39.00
    
    
    
    5.8Total option granted but not yet exercised
    
    
    2,850,558
 The number of shares held by the Harmony Share Trust at year end amounted to 63 500 (2008:
107 400). This trust is considered to be an SPE and is therefore consolidated in accordance with
the Groups accounting policies.
 List of options granted but not yet vested (listed by grant date)
    
    2009
    
    
    2008August 10, 2004
    
    
    316,498
    
    
    
    817,660April 26, 2005
    
    
    742,845
    
    
    
    1,917,783Total options granted but not yet vested
    
    
    1,059,343
    
    
    
    2,735,443
 US DOLLARFigures in million
    
    2009
    
    
    2008Average market price options traded during the year
    
    
    11
    
    
    
    22Average fair value of share options vested during the year
    
    
    14
    
    
    
    41Share based cost recognized
    
    
    1
    
    
    
    1
 Option allocationAugust 10,
    
    
    April 26,2004
    
    
    2005The share based cost is calculated using
the binominal valuation model based on
the following assumptions at grant date:Price at date of grant (SA Rand per share)
    
    
    66.15
    
    
    
    39Risk-free interest rate:
    
    
    9.9
    %
    
    
    8.4
    %Expected volatility:
    
    
    40.0
    %
    
    
    35.0
    %Expected dividend yield:
    
    
    0.0
    %
    
    
    0.0
    %Vesting period:
    
    5 years
    
    5 years
 Share based payments are measured at the fair value of the equity instruments at the date of
the grant. The cost is expensed over the vesting period, based on the Groups estimate of the
options that are expected to eventually vest.The only vesting conditions for the 2001 and 2003 schemes is that the employees should be in
the employment of the Group.The volatility measured at the standard deviation of expected share price returns were based
on statistical analysis of daily share prices over the last three years before grant date.The shares granted under the 2006 share planThe 2006 share plan consist of both performance shares (PS) and share appreciation rights
(SARs). The PS will vest after three years from the grant date, if and to the extent that the
performance conditions have been satisfied. The SARs will vest in equal thirds in year 3, 4 and 5
after grant date, subject to the performance conditions having been satisfied. The SARs have an
expiry date of 6 years from the grant date and the offer price equals the closing market price of
the underlying shares on the trading date immediately preceding the grant.
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The aggregate number of shares which may be allocated to the share plan on any day, when
added to the total number of unexercised SARs, unvested performance shares, and restricted shares
which have been allocated for SARs and PS, and any other employee share scheme operating by the
company, shall not exceed 14% of the number of issued ordinary shares of the company from time to
time. On June 30, 2009, 3 718 127 PS and 5 284 500 SARs had been allocated to participating
employees.Termination of employees participation in the share plan is based on No Fault and Fault
definitions.In the case of SARs, if employment is terminated for No Fault reasons, then the value of the
appreciation in all unvested and un-exercised SARs is settled in shares or cash at the option of
the employer as at the date of termination of employment, after the deduction of any tax payable.
The employer has no past practice of settling in cash.In the case of PS, if employment is terminated for No Fault reasons, then
 
    
    First the maximum number conditionally awarded is pro-rated for the time period until the
termination date;
    
    Then this adjusted number is reduced to a third on the assumption that Harmonys
performance was a median one with one third vesting;
    
    And then settled in cash or shares after the deduction of any tax payable.
  Number of shares relating to the 2006 share plan at June 30,
    
    2009
    
    
    2008Shares granted
    
    
    9,002,627
    
    
    
    4,676,720Unvested
    
    
    7,854,749
    
    
    
    4,236,938Performance shares
    
    
    3,302,163
    
    
    
    1,341,444Share appreciation rights
    
    
    4,552,586
    
    
    
    2,895,494Shares forfeited
    
    
    1,147,878
    
    
    
    439,782Performance shares
    
    
    415,964
    
    
    
    170,658Share appreciation rights
    
    
    731,914
    
    
    
    269,124Vesting periods of unvested shares:Within one year
    
    
    503,589
    
    
    
    One to two years
    
    
    1,651,892
    
    
    
    603,399Two to three years
    
    
    3,675,954
    
    
    
    1,932,502Three to four years
    
    
    1,329,960
    
    
    
    965,165Four to five years
    
    
    693,354
    
    
    
    735,872Total number of unvested shares
    
    
    7,854,749
    
    
    
    4,236,938
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##### Table of Contents



2009
    
    
    2008Weighted
    
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    
    averageActivity on PS and SARs granted but not
    
    
    
    
    
    option price
    
    
    
    
    
    
    option priceyet exercised
    
    Shares
    
    
    (SA Rand)
    
    
    Shares
    
    
    (SA Rand)Balance at beginning of year
    
    
    4,236,938
    
    
    
    
    
    
    
    1,468,510Performance shares
    
    
    1,341,444
    
    
    
    n/a
    
    
    
    538,516
    
    
    
    n/aShare appreciation rights
    
    
    2,895,494
    
    
    
    81.04
    
    
    
    929,994
    
    
    
    112.64Options granted
    
    
    4,325,907
    
    
    
    
    
    
    
    3,195,613Performance shares
    
    
    2,206,026
    
    
    
    n/a
    
    
    
    973,586
    
    
    
    n/aShare appreciation rights
    
    
    2,119,881
    
    
    
    77.81
    
    
    
    2,222,027
    
    
    
    71.19Options lapsed
    
    
    (708,096
    )
    
    
    
    
    
    
    (427,185
    )Performance shares
    
    
    (245,306
    )
    
    
    n/a
    
    
    
    (170,658
    )
    
    
    n/aShare appreciation rights
    
    
    (462,790
    )
    
    
    92.79
    
    
    
    (256,527
    )
    
    
    110.27Balance at end of year
    
    
    7,854,749
    
    
    
    
    
    
    
    4,236,938Performance shares
    
    
    3,302,164
    
    
    
    n/a
    
    
    
    1,341,444
    
    
    
    n/aShare appreciation rights
    
    
    4,552,585
    
    
    
    79.38
    
    
    
    2,895,494
    
    
    
    81.04
 List of shares granted but not yet exercised (listed by
    
    At June 30,
    
    
    Strike price
    
    
    Remaininggrant date)
    
    2009
    
    
    (SA Rand)
    
    
    life(years)Performance sharesNovember 15, 2006
    
    
    316,020
    
    
    
    n/a
    
    
    
    0.38November 15, 2007
    
    
    815,410
    
    
    
    n/a
    
    
    
    1.38March 7, 2008
    
    
    12,308
    
    
    
    n/a
    
    
    
    1.68December 5, 2008
    
    
    2,158,425
    
    
    
    n/a
    
    
    
    2.43Share appreciation rightsNovember 15, 2006
    
    
    562,707
    
    
    
    112.64
    
    
    
    3.38November 15, 2007
    
    
    1,863,662
    
    
    
    70.54
    
    
    
    4.38March 7, 2008
    
    
    46,154
    
    
    
    102.00
    
    
    
    4.69December 5, 2008
    
    
    2,080,063
    
    
    
    77.81
    
    
    
    5.44Total options granted but not yet exercised
    
    
    7,854,749
 None of the allocations for the 2006 share plan have vested yet.
 US DOLLARFigures in million
    
    2009
    
    
    2008Share based cost recognized
    
    
    12
    
    
    
    5
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The share based cost is calculated using Monte Carlo simulation on the PS and
Black-Scholes on the SARs, based on the following assumptions at grant date.
 Performanceshares
    
    
    SARsPrice at date of grant (SA Rand per share)- November 15, 2006 share allocation
    
    
    n/a
    
    
    
    112.64- November 15, 2007 share allocation (valuation date December 21, 2007)
    
    
    n/a
    
    
    
    68.44- November 15, 2007 share allocation (valuation date April 21, 2008)
    
    
    n/a
    
    
    
    92.25- March 7, 2008 share allocation
    
    
    n/a
    
    
    
    102.00- December 5, 2008 share allocation (valuation date December 5, 2008)
    
    
    n/a
    
    
    
    77.81- December 5, 2008 share allocation (valuation date February 16, 2009)
    
    
    n/a
    
    
    
    116.90Risk-free interest rate:- November 15, 2006 share allocation
    
    
    9.58
    %
    
    
    8.79
    %- November 15, 2007 share allocation (valuation date December 21, 2007)
    
    
    10.81
    %
    
    
    9.84
    %- November 15, 2007 share allocation (valuation date April 21, 2008)
    
    
    11.71
    %
    
    
    10.68
    %- March 7, 2008 share allocation
    
    
    11.04
    %
    
    
    10.44
    %- December 5, 2008 share allocation (valuation date December 5, 2008)
    
    
    8.55
    %
    
    
    8.43
    %- December 5, 2008 share allocation (valuation date February 16, 2009)
    
    
    8.18
    %
    
    
    8.30
    %Expected volatility*:- November 15, 2006 share allocation
    
    
    34.71
    %
    
    
    26.37
    %- November 15, 2007 share allocation (valuation date December 21, 2007)
    
    
    46.32
    %
    
    
    35.10
    %- November 15, 2007 share allocation (valuation date April 21, 2008)
    
    
    49.52
    %
    
    
    41.72
    %- March 7, 2008 share allocation
    
    
    50.49
    %
    
    
    54.50
    %- December 5, 2008 share allocation (valuation date December 5, 2008)
    
    
    56.62
    %
    
    
    48.61
    %- December 5, 2008 share allocation (valuation date February 16, 2009)
    
    
    70.86
    %
    
    
    49.03
    %Expected dividend yield:- for all allocations
    
    
    0.00
    %
    
    
    0.00
    %Vesting period (from grant date):- for all allocations
    
    3 years
    
    5 years
 Share based costs are measured at the fair value of the equity instruments at the date of the grant as defined in IFRS 2. The grant date is the date at which
the entity and counterparty have a shared understanding of the terms and conditions of the share-based payment arrangement. The cost is expensed over the
vesting period, based on the Groups estimate of the options that are expected to eventually vest.For November 15, 2006, November 15, 2007 and March 7, 2008 issue:The performance criteria imposed by the board and which must be satisfied before settlement of any PS under these awards are linked to the Companys TSR in
comparison to the Philadelphia XAU index of international gold and precious metal mining companies (50%) and the JSE Gold Mining index (50%).The following performance criteria was imposed per the Harmony (2006) Share Plan which must be satisfied before the settlement of any SARs:
 
    
    that the Companys headline earnings per share have grown since the allocation date by a minimum of CPI plus 3%;
    
    that the Companys performance has since the allocation date been a satisfactory achievement in terms of the Companys sustainability index.
 For December 5, 2008 issue:The Performance Criteria imposed by the Board and which must be satisfied before the Settlement of any PS under this Award are linked to the Companys TSR
(Total Shareholder Return) in comparison to the SA Gold Index (50%) and the SA Resource Index (50%);The following performance criteria was imposed per the Harmony (2006) Share Plan which must be satisfied before the settlement of any SARs:
 
    
    that the Companys headline earnings per share have grown since the allocation date by more than the CPI.
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For options granted during the year, the following fair values were used as a basis to recognize share-based
payment cost:
 
    
    For options measured on December 5, 2008, the value is R50.47 and R48.12 per share for PS and SARs respectively.
    
    For options measured on February 16, 2009, the value is R69.17 and R73.67 per share for PS and SARs respectively.*
    
    The volatility is measured as an annualized standard deviation of historical share price returns, using an
exponentially weighted moving average (EWMA) model, with a lambda of 0.99. The volatility is calculated on the
grant date, and takes into account the previous three years of historical data.
 37
    
    Related partiesNone of the directors or major shareholders of Harmony or, to the knowledge of Harmony, their families, had
interest, direct or indirectly, in any transaction or in any proposed transaction that has affected or will
materially affect Harmony or its subsidiaries since July 1, 2008, other than as stated below.Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the Group, directly or indirectly, being any director (whether executive or
otherwise) of the Group.Refer to note 35 for the details of the directors remuneration.African Rainbow Minerals Limited (ARM) currently holds 15% of Harmonys shares. Patrice Motsepe, Andre Wilkens and
Frank Abbott are directors of ARM.Harmony owns a 40% interest in Rand Uranium. Graham Briggs, Frank Abbott and Fikile de Buck are directors of Rand
Uranium.Material transactions with associates and joint ventures:All transactions with related parties are conducted at arms-length.Rand Uranium disposalOn November 21, 2008 the Group disposed of its Randfontein Cooke assets to Rand Uranium in exchange for a 100%
interest in the company. On the same date the Group disposed of 60% of the interest held in Rand Uranium to PRF
which resulted in a 40% interest held and Rand Uranium became an associate.The conditions precedent for the second part of the Rand Uranium transaction relating to the sale of the Old
Randfontein assets were fulfilled on April 22, 2009. Additional shares were issued in settlement and 60% of these
shares were sold to PRF in terms of the agreement. PRF paid its portion of the purchase in cash on April 20,
2009. The total value of these transactions was US$348 million. (Refer to note 22(b) for detail).PNG disposalOn April 22, 2008 Morobe Consolidated Goldfields Limited and Wafi Mining Limited, subsidiaries of Harmony Gold
(Australia) (Proprietary) Limited entered into a Master Purchase and Farm-in Agreement with Newcrest. This
agreement provided for Newcrest to purchase a 30.01% participating interest (stage 1) and a further buy-out of an
additional 19.99% participating interest in Harmonys PNG Gold and copper assets, giving them a 50% interest. The
total value of the transaction was US$530 million. (Refer to note 23(a) for detail).
 US DOLLARFigures in million
    
    2009
    
    
    2008Sales and services rendered to related partiesAssociates
    
    
    24
    
    
    
    6Joint Venture
    
    
    
    
    
    
    24
    
    
    
    6
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##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008Purchases and services acquired from related partiesAssociates
    
    
    1
    
    
    
    Outstanding balances due by related partiesAssociates
    
    
    22
    
    
    
    13Joint Ventures
    
    
    10
    
    
    
    32
    
    
    
    13
 Refer to note 24(a), (b) and (c) for detail on the items
relating to the loans to associates and joint ventures.
Refer to note 24(e) for details on the provisions raised
against these loans.
 38
    
    Commitments and Contingencies
 Capital expenditure commitmentsContracts for capital expenditure
    
    
    32
    
    
    
    149Share of Joint Ventures contract for capital expenditure
    
    
    30
    
    
    
    Authorized by the directors but not contracted for
    
    
    95
    
    
    
    221Total capital commitments
    
    
    157
    
    
    
    370
 This expenditure will be financed from existing
resources and where appropriate, borrowings.The Group is contractually obliged to make the following
payments in respect of operating leases, including for
land and buildings, and for mineral tenement leases:
 Within one year
    
    
    5
    
    
    
    8Between one year and five years
    
    
    1
    
    
    
    6
    
    
    
    8
 This includes US$0.9 million for the PNG Joint Venture.
For details on the Groups finance leases, refer to note
29.
 Contingent liabilitiesGuarantees and suretyships
    
    
    3
    
    
    
    2Environmental guarantees (i)
    
    
    39
    
    
    
    2242
    
    
    
    24
 (i)
    
    Included in the balance for 2009 is an amount of US$16.8 million relating to guarantees
provided for the Rand Uranium transaction. These guarantees will be cancelled once Rand Uranium
puts its own guarantees in place. Also included is an amount of US$14.5 million for which funds
have been set aside. Refer to note 19.
 Contingent liability
 (a)
    
    Class Action.On 18 April 2008, Harmony Gold Mining Company Limited was made aware that
it has been named or may be named as a defendant in a lawsuit filed in the U.S. District Court in
the Southern District of New York on behalf of certain purchasers and sellers of Harmonys
American Depository Receipts (ADRs) with regards to certain of its business practices. Harmony
has retained legal counsel, who advise Harmony on further developments in the U.S.
 F-76




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During January 2009, the plaintiff filed an Amended Complaint with the Court. Subsequently,
the Company filed a Motion to Dismiss all claims asserted in the Class Action Case with the Court.
The plaintiffs have filed an opposing response and the Company has since replied to that response.
It is not possible to predict with certainty when the Court will rule on the Motion to Dismiss as
the timing of the ruling is entirely within the discretion of the Court. It is currently not
possible to estimate if there will be a financial effect, or what that effect might be.(b)
    
    The Group may have a potential exposure to rehabilitate groundwater and radiation that
may exist where the Group has and/or continues to operate. In addition the Group may have an
exposure in relation to obtaining a full closure certificate for the rehabilitation of these
areas.
 The ultimate outcome of the matter cannot presently be determined and no provision for any
liability that may result has been made in the financial statements. It is further not certain
that the Group would be held liable for any or all of these exposures.Should the Group determine that any part of these contingencies require them being recorded
and accounted for as liabilities, i.e. where they become quantifiable and probable, it could have
a material impact on the financial status of the Group.
 39
    
    Subsequent events
 Pamodzi Gold Free State (Proprietary) Limited (In Provisional Liquidation)During June 2009, Harmony reported that the provisional liquidators for Pamodzi Gold
Free State (Proprietary) Limited (In Provisional Liquidation) (Pamodzi Free State) had chosen
Harmony as the preferred bidder of Pamodzi Free States assets. These assets consists of President
Steyn 1 and 2 Shafts, Loraine 3 Shaft, Freddie 7 Shaft and Freddie 9 Shaft, a metallurgical gold
plant, a waste rock dump and a dormant tailings storage facility.Harmonys offer was accepted during July 2009, following the approval from the Industrial
Development Corporation of South Africa and the relevant trade unions.In September 2009, Harmony entered into
four separate agreements to purchase Pamodzi Free States assets. The Pamodzi Free State assets
will be purchased free from all liabilities, save for all associated rehabilitation and
environmental liabilities. The purchase consideration for these assets is US$52.4 million.The major conditions precedent that have to be fulfilled in order for the agreements to
become unconditional are the conversion of the Pamodzi Free State mining rights and the consent
for the cession thereof to Harmony by the Minister of Mines.DividendsOn August 13, 2009, the Board of Directors approved a final dividend for the 2009 financial
year of 50 SA cents per share. The dividend amounting to US$28.6 million was paid on September 21,
2009. As this dividend was declared after the reporting date, it has not been reflected in the
financial statements for the periods ended June 30, 2009.PNG exploration acquisitionOn 27 August 2009, Harmony acquired two new exploration projects, the Amanab and the Mount
Hagen Projects, in PNG.
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Amanab project EL1708 was granted on July 6, 2009 and comprises of about 863 square
kilometers of tenure. The tenement is located approximately 160km north of the OK Tedi copper-gold
mine in the Sandaun Province and was pegged to target the bedrock source of the alluvial goldfield
centered on the Yup River.The Mount Hagen project comprises two contiguous tenements encompassing approximately 1 100
square kilometers of tenure. The tenements are located approximately 20km north-northeast of Mt
Hagen and are readily accessible via the Highlands Highway connecting Lae and Porgera.Harmony acquired 100% of the mineral rights for EL1596 from Frontier Resources for the cash
consideration of A$0.3 million (US$0.25 million).Harmony also acquired the rights to explore the adjacent tenement EL1611 over a four year
period, with the condition that Harmonys exploration program meets the minimum annual expenditure
commitment. At any time during this period Harmony may exercise an option to purchase 100% of the
tenement for a total cash consideration of US$2.4 million.Avoca Resources LimitedDuring September 2009 and October 2009, the Group disposed its
Avoca Resources Limited shares for approximately A$6 million
(US$5.2 million).Big Bell Operations (Proprietary) LimitedDuring the September 2009 quarter, the board approved the sale of Big Bell Operations
(Proprietary) Limited (BBGO), operations in Western Australia. A tender process was completed and
a preferred bidder was identified. The share sale agreement is expected to be completed and
executed during the December 2009 quarter. BBGO has been classified as held-for-sale.
 40
    
    Segment report
 The Group has only one product, being gold. In order to determine operating and reportable
segments, management reviewed various factors, including geographical location as well as
managerial structure. It was determined that an operating segment consists of a shaft or a group
of shafts managed by a single general manager and management team.After applying the quantitative thresholds from IFRS 8, the reportable segments were
determined as:Tshepong, Phakisa, Bambanani, Masimong, Target, Doornkop, Elandskraal, Evander, Virginia,
Cooke (held-for-sale and discontinued) and Papua New Guinea. All other operating segments have
been grouped together under other  underground or other  surface, under their classification as
either continuing or discontinued.When assessing profitability, the chief operating decision maker (CODM) considers the
revenue and cash production costs of each segment. The net of these amounts is the cash operating
profit or loss. Therefore, cash operating profit has been disclosed in the segment report as the
measure of profit or loss.The CODM does not consider depreciation or impairment and therefore these amounts have not
been disclosed in the segment report.Segment assets consist of mining assets which can be attributed to the shaft or group of
shafts. Items such as trade and other receivables and investments in financial assets are not
allocated at a shaft level and therefore form part of the reconciliation to total assets.The comparative segment reports have been restated to reflect Mount Magnet being classified
as a continuing operation.A reconciliation of the segment totals to the Group financial statements has been included in
note 41.
 F-78




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##### Table of Contents



Segment
report for the year ended June 30, 2009.
 Cash
    
    
    Cashproduction
    
    
    operating
    
    
    Mining
    
    
    Capital
    
    
    Ounces
    
    
    TonsRevenue
    
    
    cost
    
    
    profit
    
    
    assets
    
    
    expenditure
    
    
    produced*
    
    
    milled*US$m
    
    
    US$m
    
    
    US$m
    
    
    US$m
    
    
    US$m
    
    
    oz
    
    
    t000Continuing operationsSouth AfricaUndergroundTshepong
    
    
    198
    
    
    
    109
    
    
    
    89
    
    
    
    471
    
    
    
    28
    
    
    
    230,778
    
    
    
    1,516Phakisa
    
    
    19
    
    
    
    12
    
    
    
    7
    
    
    
    474
    
    
    
    51
    
    
    
    22,216
    
    
    
    204Bambanani
    
    
    103
    
    
    
    72
    
    
    
    31
    
    
    
    91
    
    
    
    6
    
    
    
    121,530
    
    
    
    570Doornkop
    
    
    38
    
    
    
    31
    
    
    
    7
    
    
    
    330
    
    
    
    44
    
    
    
    42,150
    
    
    
    605Elandsrand
    
    
    158
    
    
    
    117
    
    
    
    41
    
    
    
    352
    
    
    
    47
    
    
    
    174,321
    
    
    
    1,061Target
    
    
    76
    
    
    
    60
    
    
    
    16
    
    
    
    287
    
    
    
    38
    
    
    
    87,225
    
    
    
    710Masimong
    
    
    135
    
    
    
    73
    
    
    
    62
    
    
    
    86
    
    
    
    14
    
    
    
    154,034
    
    
    
    981Evander
    
    
    168
    
    
    
    111
    
    
    
    57
    
    
    
    122
    
    
    
    24
    
    
    
    190,075
    
    
    
    1,241Virginia
    
    
    226
    
    
    
    165
    
    
    
    61
    
    
    
    116
    
    
    
    22
    
    
    
    258,170
    
    
    
    2,493Other
    
    
    56
    
    
    
    41
    
    
    
    15
    
    
    
    31
    
    
    
    6
    
    
    
    65,684
    
    
    
    566SurfaceOther
    
    
    100
    
    
    
    59
    
    
    
    41
    
    
    
    18
    
    
    
    9
    
    
    
    114,648
    
    
    
    9,778Total South Africa
    
    
    1,277
    
    
    
    850
    
    
    
    427
    
    
    
    2,378
    
    
    
    289
    
    
    
    1,460,831
    
    
    
    19,725InternationalPapua New Guinea
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    458
    
    
    
    198
    
    
    
    
    
    
    
    Other operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    Total international
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    492
    
    
    
    198
    
    
    
    
    
    
    
    Total continuing operations
    
    
    1,277
    
    
    
    850
    
    
    
    427
    
    
    
    2,870
    
    
    
    487
    
    
    
    1,460,831
    
    
    
    19,725Discontinued operationsCooke operations
    
    
    69
    
    
    
    50
    
    
    
    19
    
    
    
    
    
    
    
    10
    
    
    
    80,377
    
    
    
    1,419Total discontinued operations
    
    
    69
    
    
    
    50
    
    
    
    19
    
    
    
    
    
    
    
    10
    
    
    
    80,377
    
    
    
    1,419Total operations
    
    
    1,346
    
    
    
    900
    
    
    
    446
    
    
    
    2,870
    
    
    
    497
    
    
    
    1,541,208
    
    
    
    21,144Reconciliation of the
segment information to the
consolidated income
statement and balance sheet
(refer to note 41)
    
    
    (69
    )
    
    
    (50
    )
    
    
    
    
    
    
    2,0551,277
    
    
    
    850
    
    
    
    
    
    
    
    4,925
 *
    
    Production statistics are unaudited. F-79




---



##### Table of Contents



Segment
report for the year ended June 30, 2008
 Cash
    
    
    Cashproduction
    
    
    operating
    
    
    Mining
    
    
    Capital
    
    
    Ounces
    
    
    TonsRevenue
    
    
    cost
    
    
    profit/(loss)
    
    
    assets
    
    
    expenditure
    
    
    produced*
    
    
    milled*US$m
    
    
    US$m
    
    
    US$m
    
    
    US$m
    
    
    US$m
    
    
    oz
    
    
    t000Continuing operationsSouth AfricaUndergroundTshepong
    
    
    223
    
    
    
    125
    
    
    
    98
    
    
    
    404
    
    
    
    27
    
    
    
    265,914
    
    
    
    1,649Phakisa
    
    
    4
    
    
    
    2
    
    
    
    2
    
    
    
    312
    
    
    
    40
    
    
    
    4,024
    
    
    
    34Bambanani
    
    
    128
    
    
    
    102
    
    
    
    26
    
    
    
    98
    
    
    
    15
    
    
    
    154,879
    
    
    
    912Doornkop
    
    
    35
    
    
    
    31
    
    
    
    4
    
    
    
    273
    
    
    
    48
    
    
    
    44,038
    
    
    
    494Elandsrand
    
    
    133
    
    
    
    103
    
    
    
    30
    
    
    
    304
    
    
    
    44
    
    
    
    164,215
    
    
    
    981Target
    
    
    69
    
    
    
    51
    
    
    
    18
    
    
    
    275
    
    
    
    35
    
    
    
    79,602
    
    
    
    686Masimong
    
    
    96
    
    
    
    88
    
    
    
    8
    
    
    
    94
    
    
    
    16
    
    
    
    116,424
    
    
    
    892Evander
    
    
    193
    
    
    
    127
    
    
    
    66
    
    
    
    131
    
    
    
    33
    
    
    
    231,799
    
    
    
    1,447Virginia
    
    
    204
    
    
    
    180
    
    
    
    24
    
    
    
    107
    
    
    
    20
    
    
    
    247,820
    
    
    
    2,349Other
    
    
    58
    
    
    
    52
    
    
    
    6
    
    
    
    29
    
    
    
    6
    
    
    
    67,862
    
    
    
    535SurfaceOther
    
    
    126
    
    
    
    57
    
    
    
    69
    
    
    
    19
    
    
    
    19
    
    
    
    147,980
    
    
    
    9,524Total South Africa
    
    
    1,269
    
    
    
    918
    
    
    
    351
    
    
    
    2,046
    
    
    
    303
    
    
    
    1,524,557
    
    
    
    19,503InternationalPapua New Guinea
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    580
    
    
    
    197
    
    
    
    
    
    
    
    Other operations
    
    
    56
    
    
    
    41
    
    
    
    15
    
    
    
    66
    
    
    
    4
    
    
    
    75,297
    
    
    
    966Total international
    
    
    56
    
    
    
    41
    
    
    
    15
    
    
    
    646
    
    
    
    201
    
    
    
    75,297
    
    
    
    966Total continuing operations
    
    
    1,325
    
    
    
    959
    
    
    
    366
    
    
    
    2,692
    
    
    
    504
    
    
    
    1,599,854
    
    
    
    20,469Discontinued operationsCooke operations
    
    
    194
    
    
    
    123
    
    
    
    71
    
    
    
    86
    
    
    
    22
    
    
    
    236,170
    
    
    
    3,906Other operations
    
    
    59
    
    
    
    66
    
    
    
    (7
    )
    
    
    
    
    
    
    16
    
    
    
    74,433
    
    
    
    1,048Total discontinued operations
    
    
    253
    
    
    
    189
    
    
    
    64
    
    
    
    86
    
    
    
    38
    
    
    
    310,603
    
    
    
    4,954Total operations
    
    
    1,578
    
    
    
    1,148
    
    
    
    430
    
    
    
    2,778
    
    
    
    542
    
    
    
    1,910,457
    
    
    
    25,423Reconciliation of the
segment information to the
consolidated income
statement and balance sheet
(refer to note 41)
    
    
    (253
    )
    
    
    (189
    )
    
    
    
    
    
    
    1,9321,325
    
    
    
    959
    
    
    
    
    
    
    
    4,710
 *
    
    Production statistics are unaudited. F-80




---



##### Table of Contents



Segment report for the year ended June 30, 2007.
 Cash
    
    
    Cashproduction
    
    
    operating
    
    
    Mining
    
    
    Capital
    
    
    Ounces
    
    
    TonsRevenue
    
    
    cost
    
    
    profit
    
    
    assets
    
    
    expenditure
    
    
    produced*
    
    
    milled*US$m
    
    
    US$m
    
    
    US$m
    
    
    US$m
    
    
    US$m
    
    
    oz
    
    
    t000Continuing operationsSouth AfricaUndergroundTshepong
    
    
    203
    
    
    
    112
    
    
    
    91
    
    
    
    442
    
    
    
    26
    
    
    
    319,192
    
    
    
    1,824Phakisa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    303
    
    
    
    32
    
    
    
    
    
    
    
    Bambanani
    
    
    126
    
    
    
    115
    
    
    
    11
    
    
    
    105
    
    
    
    17
    
    
    
    197,084
    
    
    
    1,283Doornkop
    
    
    37
    
    
    
    25
    
    
    
    12
    
    
    
    247
    
    
    
    38
    
    
    
    56,810
    
    
    
    597Elandsrand
    
    
    124
    
    
    
    103
    
    
    
    21
    
    
    
    299
    
    
    
    33
    
    
    
    195,412
    
    
    
    1,117Target
    
    
    91
    
    
    
    53
    
    
    
    38
    
    
    
    287
    
    
    
    16
    
    
    
    142,653
    
    
    
    904Masimong
    
    
    95
    
    
    
    82
    
    
    
    13
    
    
    
    79
    
    
    
    15
    
    
    
    146,575
    
    
    
    1,074Evander
    
    
    151
    
    
    
    113
    
    
    
    38
    
    
    
    143
    
    
    
    28
    
    
    
    235,857
    
    
    
    1,667Virginia
    
    
    172
    
    
    
    147
    
    
    
    25
    
    
    
    67
    
    
    
    19
    
    
    
    264,890
    
    
    
    2,507Other
    
    
    65
    
    
    
    51
    
    
    
    14
    
    
    
    28
    
    
    
    6
    
    
    
    104,553
    
    
    
    770SurfaceOther
    
    
    52
    
    
    
    35
    
    
    
    17
    
    
    
    66
    
    
    
    17
    
    
    
    82,467
    
    
    
    4,557Total South Africa
    
    
    1,116
    
    
    
    836
    
    
    
    280
    
    
    
    2,066
    
    
    
    247
    
    
    
    1,745,493
    
    
    
    16,300InternationalPapua New Guinea
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    320
    
    
    
    73
    
    
    
    
    
    
    
    Other operations
    
    
    86
    
    
    
    71
    
    
    
    15
    
    
    
    29
    
    
    
    20
    
    
    
    136,415
    
    
    
    1,875Total international
    
    
    86
    
    
    
    71
    
    
    
    15
    
    
    
    349
    
    
    
    93
    
    
    
    136,415
    
    
    
    1,875Total continuing operations
    
    
    1,202
    
    
    
    907
    
    
    
    295
    
    
    
    2,415
    
    
    
    340
    
    
    
    1,881,908
    
    
    
    18,175Discontinued operationsCooke operations
    
    
    154
    
    
    
    118
    
    
    
    36
    
    
    
    72
    
    
    
    19
    
    
    
    244,056
    
    
    
    2,327Other operations
    
    
    133
    
    
    
    109
    
    
    
    24
    
    
    
    96
    
    
    
    22
    
    
    
    207,436
    
    
    
    2,338Total discontinued operations
    
    
    287
    
    
    
    227
    
    
    
    60
    
    
    
    168
    
    
    
    41
    
    
    
    451,492
    
    
    
    4,665Total operations
    
    
    1,489
    
    
    
    1,134
    
    
    
    355
    
    
    
    2,583
    
    
    
    381
    
    
    
    2,333,400
    
    
    
    22,840Reconciliation of the
segment information to the
consolidated income
statement and balance sheet
(refer to note 41)
    
    
    (287
    )
    
    
    (227
    )
    
    
    
    
    
    
    2,5771,202
    
    
    
    907
    
    
    
    
    
    
    
    5,160
 *
    
    Production statistics are unaudited. F-81




---



##### Table of Contents



41
    
    Reconciliation of segment information to consolidated income statements and balance
sheet:The reconciliation of segment data to consolidated financials line item in the
segment reports is broken down into the following elements, to give a better
understanding of the differences between the income statement, balance sheet and the
segment report.
 US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007
 Revenue from:Discontinued operations
    
    
    69
    
    
    
    253
    
    
    
    287Production costs from:Discontinued operations
    
    
    50
    
    
    
    189
    
    
    
    227
 Reconciliation of cash operating profit to consolidated profit/(loss) before
taxation 
and discontinued operations:
 Total segment revenue
    
    
    1,346
    
    
    
    1,578
    
    
    
    1,489Total segment production costs
    
    
    (900
    )
    
    
    (1,148
    )
    
    
    (1,134
    )Cash operating profit
    
    
    446
    
    
    
    430
    
    
    
    355Less discontinued operations
    
    
    (19
    )
    
    
    (64
    )
    
    
    (60
    )427
    
    
    
    366
    
    
    
    295Cost of sales items other than production costs
    
    
    (254
    )
    
    
    (203
    )
    
    
    (177
    )Amortization and depreciation of mining properties, mine development cost and mine
plant facilities
    
    
    (158
    )
    
    
    (107
    )
    
    
    (130
    )Amortization and depreciation of other than mining properties, mine development cost
and mine plant facilities (b)
    
    
    (9
    )
    
    
    (10
    )
    
    
    (4
    )Provision/(reversal of provision) for rehabilitation costs
    
    
    (3
    )
    
    
    (2
    )
    
    
    6Care and maintenance cost of restructured shafts
    
    
    (6
    )
    
    
    (10
    )
    
    
    (8
    )Employment termination and restructuring costs
    
    
    (4
    )
    
    
    (32
    )
    
    
    Share-based payments
    
    
    (13
    )
    
    
    (6
    )
    
    
    (6
    )Impairment of assets
    
    
    (61
    )
    
    
    (35
    )
    
    
    (37
    )Provision for post retirement benefits
    
    
    
    
    
    
    (1
    )
    
    
    2Gross profit
    
    
    173
    
    
    
    163
    
    
    
    118Corporate, administration and other expenditure
    
    
    (40
    )
    
    
    (33
    )
    
    
    (31
    )Exploration expenditure
    
    
    (32
    )
    
    
    (32
    )
    
    
    (30
    )Profit on sale of property, plant and equipment
    
    
    116
    
    
    
    18
    
    
    
    25Other expenses  net
    
    
    (3
    )
    
    
    (13
    )
    
    
    Operating profit
    
    
    214
    
    
    
    103
    
    
    
    82Profit/(loss) from associates
    
    
    1
    
    
    
    (11
    )
    
    
    (3
    )Profit on sale of investment in associate
    
    
    
    
    
    
    
    
    
    
    33Impairment of investment in associate
    
    
    (14
    )
    
    
    (12
    )
    
    
    Fair value (loss)/gain on financial instruments
    
    
    (10
    )
    
    
    5
    
    
    
    15Loss on sale of listed investments
    
    
    
    
    
    
    (63
    )
    
    
    (5
    )Investment income
    
    
    49
    
    
    
    39
    
    
    
    27Finance cost
    
    
    (24
    )
    
    
    (71
    )
    
    
    (66
    )Profit/(loss) before taxation and discontinued operations
    
    
    216
    
    
    
    (10
    )
    
    
    83
 F-82




---



##### Table of Contents



US DOLLARFigures in million
    
    2009
    
    
    2008
    
    
    2007Reconciliation of total segment assets to consolidated assets includes the following:Non-current assetsProperty, plant and equipment not allocated to specific segments
    
    
    744
    
    
    
    906
    
    
    
    1,026Intangible assets
    
    
    288
    
    
    
    283
    
    
    
    328Restricted cash
    
    
    21
    
    
    
    10
    
    
    
    1Restricted investments
    
    
    212
    
    
    
    188
    
    
    
    195Investment in financial assets
    
    
    7
    
    
    
    9
    
    
    
    8Investments in associates
    
    
    43
    
    
    
    19
    
    
    
    1Deferred tax asset
    
    
    222
    
    
    
    190
    
    
    
    216Trade and other receivables
    
    
    10
    
    
    
    18
    
    
    
    8Current assetsInventories
    
    
    134
    
    
    
    89
    
    
    
    105Investment in financial assets
    
    
    
    
    
    
    
    
    
    
    353Trade and other receivables
    
    
    115
    
    
    
    112
    
    
    
    130Income and mining taxes
    
    
    6
    
    
    
    11
    
    
    
    9Restricted cash
    
    
    
    
    
    
    
    
    
    
    39Cash and cash equivalents
    
    
    253
    
    
    
    53
    
    
    
    101Assets of disposal groups classified as held-for-sale
    
    
    
    
    
    
    44
    
    
    
    57Total assets
    
    
    2,055
    
    
    
    1,932
    
    
    
    2,577
 F-83