Page
 Harmony Gold Mining Company Limited
               Index to Financial Statements
 F-1


Report of Independent Registered Public Accounting Firm
 /s/ PricewaterhouseCoopers Inc.Johannesburg, Republic of South Africa23 October 2015
 In our opinion, the accompanying consolidated balance sheets and the related consolidated income statements, statements of 
  comprehensive income, statements of changes in shareholders’ equity and cash flow statements present fairly, in all material respects, the financial position of Harmony Gold Mining Company Limited and its subsidiaries at June 30, 2015 and 2014, and theresults of their operations and their cash flows for each of the three years in the period ended June 30, 2015 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, theCompany maintained, in all material respects, effective internal control over financial reporting as of June 30, 2015, based oncriteria established in Internal Control—Integrated Framework (2013 Framework) issued by the Committee of Sponsoring Organizations  of the Treadway Commission (COSO). The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15 (b). Our responsibility is to express opinions on these financial statements and on the Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based onthe assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
  A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 F-2


GROUP INCOME STATEMENTS
 for the years ended 30 June 2015
 Figures in million
  2015
   CONTINUING OPERATIONS
  1 348
     (1 645)
    (1 103)
    (216)
    (285)
    (22)
    (19)
   Gross loss
 (297)
    (33)
    (6)
    (23)
     1
     (42)
     (33)
   Operating loss
  (433)
     (2)
     -
     1
     20
     (22)
   Loss before taxation
 (436)
     62
   Net loss from continuing operations
 (374)
   DISCONTINUED OPERATIONS
   -
   Net loss for the year
 (374)
   Attributable to:Owners of the parent
 (374)
    -
   Loss per ordinary share (cents)
   (86)
    -
   Total loss
 (86)
   Diluted loss per ordinary share (cents)
   (86)
    -
   Total diluted loss
 (86)
     F-3


GROUP STATEMENTS OF COMPREHENSIVE INCOME
 for the years ended 30 June 2015
 Figures in million
  2015
    (374)
    (367)
    (368)
     (368)
     -
     -
     -
    1
       1
      -
    Total comprehensive loss for the year
 (741)
   Attributable to:Owners of the parent
 (741)
    -
     F-4


GROUP BALANCE SHEETS
 Figures in million
  ASSETS
 Non-current assets
   2 430
    73
    4
    196
    -
    -
    3
    7
  Total non-current assets
 2 713
  Current assets
   106
    62
   2
    1
   88
  Total current assets
 259
  Total assets
 2 972
  EQUITY AND LIABILITIES
 Share capital and reserves
   4 035
    (1 238)
   (597)
  Total equity
 2 200
  Non-current liabilities
   157
    182
    13
    3
    280
  Total non-current liabilities
 635
  Current liabilities
 Income and mining taxes
 -
  Trade and other payables
  137
  Total current liabilities
 137
  Total equity and liabilities
 2 972
    At 30 June
 2015
   F-5


GROUP STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
 for the years ended 30 June 2015
     Figures in million (US dollar)
   
       Balance - 30 June 2012
        Issue of shares- Exercise of employee share options
        
 
  
      
    
      
 
    
 
   
 
 1
  
    Balance - 30 June 2013
         Issue of shares- Exercise of employee share options
  
 
 
 
    
 
 
 
   
      
 
   Balance - 30 June 2014
         Issue of shares- Exercise of employee share options
 361 686
 -
 -
 -
 - 16
 -
  -
 -
 -
 - (374)
 16 (374)
  -
 -
 -
 
 -
  -
 -
 -
 -
 (367)
 (367)
 Balance - 30 June 2015
 436 187 133
 
 33
 4 002
 (597)
 (1 238)
 2 200
 1 Dividends per share is disclosed under the earnings per share note. Refer to note 13.
    - Shares issued to the Tlhakanelo Employee Share Trust
 Share of retained earnings on acquisition of associate
 F-6


GROUP CASH FLOW STATEMENTS
 for the years ended 30 June 2015
 Figures in million
  2015
   CASH FLOW FROM OPERATING ACTIVITIES
   168
    9
    (9)
    8
   Cash generated by operating activities
 176
   CASH FLOW FROM INVESTING ACTIVITIES
  1
     2
     -
    -
    -
    -
     (10)
    1
    (1)
    (246)
   Cash utilised by investing activities
 (253)
   CASH FLOW FROM FINANCING ACTIVITIES
  80
    (65)
    -
   Cash generated by financing activities
 15
   Foreign currency translation adjustments
 (22)
    (84)
    172
   Cash and cash equivalents - end of year
 88
     F-7


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 1
 GENERAL INFORMATION
 2
 ACCOUNTING POLICIES
 Title
 Effective date
 Title
 The following standards or amendments to standards are not relevant to the group:
 Pronouncement
 Title
 Regulatory Deferral Accounts
 Pronouncement
 Title
 The company is a public company, incorporated and domiciled in South Africa. The address of its registered office is Randfontein Office Park, Corner Main Reef Road and Ward Avenue, Randfontein, 1759.
  Harmony 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 and Papua New Guinea (PNG).
 BASIS OF PREPARATION
       Pronouncement
 IFRS 10, IFRS 12 and IAS 27 (Amendments)
 RECENT ACCOUNTING DEVELOPMENTS
 New standards, amendments to standards and interpretations to existing standards adopted by the group
   The following standards or amendments to standards are not expected to have an impact on the results of the group but will affect the disclosure in the financial statements:
 Effective date
  Amendments to Property, Plant and Equipment and Intangible Assets– Clarification of acceptable methods of depreciation and amortisation
    New standards, amendments to standards and interpretations to existing standards that are not yet effective and have not been early adopted
 At the date of authorisation of these financial statements, the standards, amendments to standards 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 the group plans on adopting these standards, amendments to standards and interpretations on the dates when they become effective.
 Effective date
  Annual improvements 2010-2012 cycle
 Financial Instruments: Presentation
 Impairment of Assets
 The principal accounting policies applied in the preparation of the consolidated financial statements have been consistently applied in all years presented, except as stated under the heading ‘Recent accounting developments’.
 The financial statements of the group have been prepared in accordance with, and are in compliance with, International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and IFRIC Interpretations (collectively IFRS).
 The following standards or amendments to standards have become effective but had no impact on the results of the group:
   Amendments to Consolidated Financial Statements, Disclosures of Interests in Other Entities and Separate Financial Statements- Investment entities
 Annual improvements 2011-2013 cycle
 Employee Benefits
 Financial Instruments: Recognition and measurement - Novation of derivatives and continuation of hedge accounting
 Levies
    The following standards or amendments to standards have become effective and had an impact on the disclosure:
 Pronouncement
  Effective date
    Amendments to Property, Plant and Equipment and Agriculture
 F-8


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 2
 ACCOUNTING POLICIES
 Pronouncement
 Title
  RECENT ACCOUNTING DEVELOPMENTS
 Amendments to Consolidated Financial Statements and Investments in Associates and Joint VenturesThese amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.
   Joint arrangements -Acquisitions of interests in joint operationsAmends IFRS 11 Joint Arrangements to require an acquirer of an interest in a joint operation in which the activity constitutes a business (as defined in IFRS 3 Business Combinations) to:Apply all of the business combinations accounting principles in IFRS 3 and other IFRSs, except for those principles that conflict with guidance in IFRS 11.      Disclose the information required by IFRS 3 and either IFRSs for business combinations.
 The amendments apply both to the initial acquisition of an interest in joint operation, and the acquisition of an additional interest in a joint operation (in the latter case, previously held interests are not remeasured).
   Hedge accountingThe new requirements in IFRS 9 align hedge accounting more closely with risk management, and so should result in more ‘decision-useful’ information to users of financial statements. The revised standard also establishes a more principles-based approach to hedge accounting and addresses inconsistencies and weaknesses in the current model in IAS 39.
 Expected credit lossesIFRS 9 introduces a new model for the recognition of impairment losses – the expected credit losses (ECL) model. The ECL model constitutes a change from the guidance in IAS 39 and seeks to address the criticisms of the incurred loss model which arose during the economic crisis. In practice, the new rules mean that entities will have to record a day 1 loss equal to the 12-month ECL on initial recognition of financial assets that are not credit impaired (or lifetime ECL for trade receivables).
 IFRS 9 contains a ‘three stage’ approach which is based on the change in credit quality of financial assets since initial recognition. Assets move through the three stages as credit quality changes and the stages dictate how an entity measures impairment losses and applies the effective interest rate method. Where there has been a significant increase in credit risk, impairment is measured using lifetime ECL rather than 12-month ECL. The model includes operational simplifications for lease and trade receivables.
 DisclosuresExtensive disclosures are required, including reconciliations from opening to closing amounts of the ECL provision, assumptions and inputs and a reconciliation on transition of the original classification categories under IAS 39 to the new classification categories in IFRS 9.
  IFRS 10, IFRS 12 and IAS 28 (Amendments)
 The following standards, amendments to standards and interpretations to existing standards may possibly have an impact on the group:
 Effective date
  Financial InstrumentsThis standard on classification and measurement of financial assets and financial liabilities will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 has two measurement categories: amortised cost and fair value. All equity instruments are measured at fair value.
 A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. For liabilities, the standard retains most of the IAS 39 requirements. These include amortised-cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch.
  F-9


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 2
 ACCOUNTING POLICIES
 Pronouncement
 Title
    MEASUREMENT BASIS
 GROUP ACCOUNTING POLICIES
 2.1
 Consolidation
 Control
 (i) Subsidiaries
 The following standards, amendments to standards and interpretations to existing standards may possibly have an impact on the group:
 RECENT ACCOUNTING DEVELOPMENTS
   Separate Financial StatementsAmends IAS 27 to restore the option to use the equity method to account for investments in subsidiaries, joint ventures and associates in an entity’s separate financial statements.
   Revenue from contracts with customersThe core principle is that revenue must be recognised when goods or services are transferred to the customer, at the transaction price. The most significant changes that flow from the principle are:1. Any bundled goods or services that are distinct must be separately recognised, and any discounts or rebates on the contract price must generally be allocated to the separate elements.2. Revenue may be recognised earlier than under current standards if the consideration varies for any reasons (such as for incentives, rebates, performance fees, royalties, success of an outcome etc.) - minimum amounts must be recognised if they are not at significant risk of reversal.3. The point at which revenue is able to be recognised may shift: some revenue which is currently recognised at a point in time at the end of a contract may now be recognised over the contract term and vice versa.
   Effective date
 Annual Improvements 2012-2014 cycleIFRS 5 – Non-current Assets Held for Sale and Discontinued Operations – Addresses changes in methods of disposal.IFRS 7 – Financial Instruments: Disclosures– Addresses servicing contracts and the applicability of the amendments to IFRS 7 to condensed interim financial statements. IFRS 19 – Employee Benefits – Addresses issues related to regional markets when determining discount rates. IFRS 34 – Interim Financial Reporting – Addresses disclosure of information ‘elsewhere in the interim financial report’.
   Presentation of Financial StatementsIn December 2014 the IASB issued amendments to clarify guidance in IAS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies.
  The group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
 Subsidiaries are entities over which the group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the group up until when that control ceases.
 Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the group.
 The financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities at fair value through profit or loss and cash-settled share-based payments.
 Accounting policies are included in the relevant notes to the consolidated financial statements and have been highlighted in grey shading in the notes to the group financial statements. The accounting policies below are applied throughout the financial statements:
 The group recognises that control is the single basis for consolidation for all types of entities in accordance with IFRS 10 - Consolidated Financial Statements.
 The consolidated financial information includes the financial statements of the company, its subsidiaries, interest in associates and joint arrangements and structured entities. Where the group has no control over an entity, that entity is not consolidated.
 The group, regardless of the nature of its involvement with an entity, shall determine whether it is a parent by assessing whether it controls the investee.
 F-10


NOTES TO THE GROUP FINANCIAL STATEMENTS continued
 for the years ended 30 June 2015
 2
 ACCOUNTING POLICIES continued
 2.1  
  Consolidation continued
 (i) Subsidiaries continued
 (ii) Associates
 (iii) Joint arrangements
 (iv) Structured entities
 The excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the income statement.
 Associates are entities in which the group has significant influence, but not control, over operational and financial policies. This may be when there is a shareholding of between 20% and 50% of the voting rights or when significant influence can be otherwise demonstrated, for example where the group has the right of representation on the board of directors of the entity.
 The group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, liabilities incurred and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the group recognises any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.
 GROUP ACCOUNTING POLICIES continued
 Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment that should be recognised.
 Accounting policies of associates have been reviewed to ensure consistency with the policies adopted by the group.
 Joint arrangements are arrangements of which two or more parties have joint control and are contractually bound. The joint arrangement can either be a joint operation or a joint venture.  A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement and have the right to the assets, and obligations for the liabilities, relating to the arrangement. These parties are called joint operators. A joint venture is a joint arrangement where the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Those parties are called joint venturers.
 For interest in joint operations, the group includes its share of the joint operations' 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 recognises the portion of gains or losses on the sale of assets by the group to the joint operation that is attributable to the other joint operators. The group does not recognise its share of profits or losses from the joint operation that result from the purchase of assets by the group from the joint operation until it resells the assets to an independent party. However, if a loss on the transaction provides evidence of a reduction in the net realisable value of current assets or an impairment loss, the loss is recognised immediately.
 Investments in associates are accounted for by using the equity method of accounting, and are initially recognised at cost. The group’s investment in associates includes goodwill identified on acquisition. Cumulative post-acquisition movements are adjusted against the carrying amount of the investment. The group’s share of the associates’ post-acquisition profits or losses is recognised in the income statement, and its share of post-acquisition movement in reserves is recognised in other reserves.
 When the group’s share of losses in an associate equals or exceeds its interest in the associate, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
 If an associate is acquired in stages, the cost of the associate is measured as the sum of the consideration paid for each purchase plus a share of investee’s profits and other equity movements. Any acquisition-related costs are treated as part of the investment in associate. Any related goodwill is calculated at each stage of the acquisition based on the consideration paid and the share of fair value of net assets acquired at the date of each acquisition.
 Where the previously held interest was classified as an available-for-sale financial instrument, any existing gains or losses recognised in the available-for-sale revaluation reserve are reversed through other comprehensive income. The cost basis of the investment is then further adjusted by including the group’s share of profits after dividends, other comprehensive income and other equity movements relating to the previously held interest is accounted for in equity.
 The carrying value of an associate is reviewed on a regular basis and, if impairment in the carrying value has occurred, it is written off in the period in which such impairment is identified.
 The group recognises its interest in a joint venture as an investment and accounts for it using the equity accounting method.
 A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.
 The accounting treatment for a structured entity will fall into one of the aforementioned categories (i to iii) depending on whether the group has control over that structured entity.
 F-11


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 2
 ACCOUNTING POLICIES
 2.2  
  Foreign currency translation
 (i) Functional and presentation currency
 (ii) Transactions and balances
 (iii) Group companies
 2.3  
  Revenue recognition
 2.4  
  Exploration expenditure
 •
  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 comprehensive income. When a foreign operation is sold or control is otherwise lost, exchange differences that were recorded in other comprehensive income are recognised in profit or loss in the period of the disposal or change in control.
 Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign entity and translated at the closing rate.
 The group has determined that gold is its primary product and other metals produced as part of the extraction process are considered to be by-products of gold. Revenue arising from metal sales is only recognised when the significant risks and rewards of ownership have been transferred, neither continuing managerial involvement nor effective control over the metals sold has been retained, the amount of revenue and costs incurred can be measured reliably and it is probable that the economic benefits associated with the sale will flow to the group. These conditions are satisfied when the gold has been delivered in terms of the contract and the sales price fixed, as evidenced by the certificate of sale issued by the refinery. The sales price for the majority of the group’s gold is based on the gold spot price according to the afternoon London Bullion Market fixing price for gold on the date the sale is concluded.
 For translation of the rand financial statement items to US dollar, the average of R11.45 (2014: R10.35) (2013: R8.82) 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 R12.16 (2014: R10.61) per US$1 for asset and liability items. Equity items were translated at historic rates. The profit from discontinued operations for the 2013 financial year was translated at the average rate for the eight months (being the period that Evander was part of the group during 2013) of R8.55 per US$1.
  References to “A$” refers to Australian currency, “R” to South African currency, “$” or “US$” to United States currency and “K” or “kina” to Papua New Guinean currency.
 Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation to year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Gains and losses recognised in the income statement are included in the determination of “other expenses (net)”.
 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).
 GROUP ACCOUNTING POLICIES
  The group has elected to expense all exploration and evaluation expenditures until it is concluded that the project is technically feasible and commercially viable, and that future economic benefits are therefore probable. The information used to make that determination depends on the level of exploration as well as the degree of confidence in the ore body as set out below.
  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 the technical and commercial viability of the project has been demonstrated usually through the completion of a final feasibility study. However, in certain instances, the technical and commercial viability of the deposit may be demonstrated at an earlier stage, for example where an extended feasibility study is conducted and the underlying feasibility study in respect of specific components of the mineral deposit has advanced to such a stage that significant commercially viable reserves have been established, and the other criteria for the recognition of an asset have been met.
  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 group is able to demonstrate that future economic benefits are probable through the completion of a feasibility study, after which the expenditure is capitalised as mine development cost. A ‘feasibility study’ consists of a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method 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 feasibility 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 group to conclude that the project is technically feasible and commercially viable.
 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:
 •
   •
   F-12


NOTES TO THE GROUP FINANCIAL STATEMENTS continued
 for the years ended 30 June 2015
 2
 ACCOUNTING POLICIES continued
 2.4  
  Exploration expenditure continued
 2.5   
  Impairment of non-financial assets
 3
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
 GROUP ACCOUNTING POLICIES continued
 The 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 judgements 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 areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the group statements are:
 • Estimate of taxation – note 11;
 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.
 Impairment losses on goodwill are recognised immediately in the income statement and are not reversed. The impairment testing is performed annually on 30 June or when events or changes in circumstances indicate that it may be impaired.
 Non-financial assets other than goodwill that suffered an impairment are reviewed annually for possible reversal of the impairment at 30 June. Reversal of impairments is also considered when there is objective evidence to indicate that the asset is no longer impaired. Where an impairment subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not higher than the carrying value that would have been determined had no impairment been recognised in prior years.
 Exploration and evaluation expenditure relating to extensions of mineral deposits which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, is capitalised 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, allows the directors to conclude that the project is technically feasible and commercially viable.
 Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or when there is an indication of impairment.
 Assets that are subject to amortisation are reviewed annually on 30 June for impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
 An impairment loss is recognised in the income statement 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.
 Fair value less costs to sell is generally determined by using discounted estimated after-tax 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, capital expenditure and cash costs of production, all based on life-of-mine plans. Future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and risk specific to the asset. Refer to note 14 for detail.
 The term “recoverable minerals” refers to the estimated amount of gold that will be obtained from reserves and resources 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.
 Please refer to the specific notes for further information on the key accounting estimates and assumptions applied.
 • Valuation of interest in associate – note 20;• Estimate of exposure and liabilities with regard to rehabilitation costs – note 25;• Estimate of employee benefit liabilities – note 26;• Fair value of share-based payments – note 32;• Assessment of contingencies – note 34.
 • Gold mineral reserves and resources – note 14;• Production start date – note 14;• Impairment of assets – note 14;• Depreciation of property plant and equipment – note 14;• Impairment of goodwill – note 15;
 F-13


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 4
 FINANCIAL RISK MANAGEMENT
  Figures in million (US dollars)
 Loans and
 receivables
 Available-for-
 sale financial
 assets
 Held-to-
 maturity
 investments
 Fair value
 through
 profit or loss
 Financial
 liabilities at
 amortised
 cost
 At 30 June 2015
  5
 
 -
 
 -
 
 -
 
 -
  39
 
 -
 
 113
 
 44
 
 -
  52
 
 -
 
 -
 
 -
 
 -
  88
 
 -
 
 -
 
 -
 
 -
  -
 
 -
 
 -
 
 -
 
 280
  -
 
 -
 
 -
 
 -
 
 2
  -
 
 -
 
 -
 
 -
 
 48
 At 30 June 2014
                                                                       MARKET RISK
 (i) Foreign exchange risk
 Figures in million
 2015
  Sensitivity analysis - borrowings
 Rand against US$
  25
   (25)
  Closing rate
 12.16
  Sensitivity analysis - financial assets
 Kina against A$
  -
   -
  Closing rate
 2.11
  US$ against Kina
  -
   (1)
  Closing rate
 0.37
  The group's financial instruments expose it to a variety of financial risks: market risk (including currency 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.
 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 cooperation 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.
 The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar (US$). Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency. Harmony’s revenues are sensitive to the R/US$ 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 an exchange rate in advance for the sale of its future gold production.
 The group is exposed to foreign exchange risk arising from borrowings and cash denominated in a currency other than the functional currency of that entity. Harmony generally does not enter into forward sales, derivatives or other hedging arrangements to manage this risk.
 The 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 that would affect profit or loss. Management considers a range between 10% and 20% to be a reasonable change.
  F-14


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 4
 FINANCIAL RISK MANAGEMENT
 MARKET RISK continued
 (ii) Other price risk
 Sensitivity analysis
 Commodity price sensitivity
 (iii) Interest rate risk
 Sensitivity analysis - borrowings
 Figures in million
 2015
   (3)
   3
  Sensitivity analysis - financial assets
 Figures in million
 2015
   3
   (3)
  CREDIT RISK
  The group is exposed to the risk of fluctuations in the fair value of the available-for-sale and fair value through profit or loss 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.
 A 1% increase in the share price of the available-for-sale investments at the reporting date, with all other variables held constant, would not have had a material impact on other comprehensive income for 2014 and 2015.
 Certain of the restricted investments are linked to the Shareholder Weighted Top 40 Index (SWIX 40) and the Top 40 index on the JSE. A 1% increase in the SWIX 40 and Top 40 index at the reporting date, with all other variables held constant, would have increased profit or loss by US$0.3 million (2014: US$0.4 million); an equal change in the opposite direction would have decreased profit or loss by US$0.1 million (2014: US$0.2 million).
 The profitability of the group's operations, and the cash flows generated by those operations, are affected by changes in the market price of gold. Harmony generally does not enter into forward sales, derivatives or others hedging arrangements to establish a price in advance for the sale of future gold production.
 The group's interest rate risk arises mainly from long-term borrowings. The group has variable interest rate borrowings. Variable rate borrowings expose the group to cash flow interest rate risk. The group has not entered into interest rate swap agreements.
 A 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 2014.
   A 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 2014.
 Credit 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 instruments) and cash and cash equivalents.
 Exposure to credit risk on trade and other receivables is monitored on a regular basis. Refer to note 19 for management's assessment. 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.
 F-15


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 4
 FINANCIAL RISK MANAGEMENT
 CREDIT RISK continued
 Cash and cash equivalents and restricted cash
 Financial institutions' credit rating by exposure
 Figures in million
 2015
  Credit rating
  -
   35
  1
 26
  1
 26
  1
 6
  Cash and cash equivalents and restricted cash
 93
   3
   -
   2
  Total restricted cash
 5
  1
 Includes restricted cash.
 LIQUIDITY RISK
  Figures in million
 Current
  -
 
 2
   5
 
 -
  5
 
 -
  -
 
 42
  -
 
 255
  48
 
 -
 58
 
 299
                               Environmental trust funds are held with financial institutions who have the following credit ratings: AA+ US$40.8 million (2014: US$55.6 million), AA US$135.9 million (2014: US$147.4 million) and A+ US$15.5 million (2014: US$9.3 million).
 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$341.0 million as at 30 June 2015 (2014: US$459.8 million).
 Prudent 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.
  More than 1
 year
 2015
 2014
 F-16


background image NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 4
 FINANCIAL RISK MANAGEMENT
 CAPITAL RISK MANAGEMENT
  Figures in million
 2015
   88
   (280)
  Net debt
 (192)
   FAIR VALUE DETERMINATION OF FINANCIAL ASSETS AND LIABILITIES
          Level 1
 Level 2
 Level 3
 Figures in million (US dollar)
 1
 -
 
 -
 
 -
 2
 
 -
 
 44
 
 -
      Figures in million (US dollar)
 1
 
      2
 
      The 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 optimises 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. In doing so, the group ensures it stays within the debt covenants agreed with lenders. The group may also sell assets to reduce debt or schedule projects to manage the capital structure.
  
 1 Refer to note 18. Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
 
 2 Level 2 fair values are directly derived from the Shareholders Weighted Top 40 (SWIX 40) or the Top 40 index on the JSE, and are discounted at market interest rate. The fair value
 of US$3.8 million (2014: US$4.5 million) of the balance in 2015 and 2014 is derived by reference to quoted prices of the shares held within the unit trust portfolio.
 The fair values of the available-for-sale financial assets are determined by reference to quoted market prices. The fair value of other non-current financial instruments is determined using a discounted cash flow model with market observable inputs, such as market interest rates.
 Inputs other than quoted prices included within level 1 that are observable for the asset, either directly (that is, as prices) or indirectly (that is, derived from other prices) (level 2);
 F-17


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 5
 COST OF SALES
 Figures in million
 2015
    1 103
     211
     5
     (1)
     9
     22
     18
     285
     (7)
    Total cost of sales
 1 645
     Figures in million
 2015
    678
     303
    175
     9
     15
     17
     (133)
     (21)
     (18)
     8
     70
    Total production costs
 1 103
          Figures in million
 2015
    174
     85
     23
     3
     -
     -
    Total impairment of assets
 285
    During the 2015 financial year, the group embarked on a restructuring process at Kusasalethu, Masimong and Hidden Valley. Target 3 was placed on care and maintenance and Ernest Oppenheimer Hospital was closed in December 2014. Voluntary severance packages were offered to management in September 2014.
 For the 2014 financial year, the programme embarked on by the group's South African operations whereby voluntary severance packages were offered to all employees and significant restructuring process at Hidden Valley, both having started during 2013, was completed in June 2014.
  Following the decision to restructure Doornkop in May 2015, a revised life-of-mine plan was completed. In addition, the resource value reduced owing to the decrease in resources declared for Doornkop. The revised life-of-mine plan includes lower production levels and focuses on higher grade areas. Resources below the existing shaft infrastructure which were previously included in the additional resource value were removed. The new plan and lower resource value resulted in a lower recoverable amount and an impairment of US$85.2 million was recognised. The recoverable amount of Doornkop is US$151.8 million.
 During the 2015 year, an impairment of US$173.8 million was recognised on Hidden Valley following a change in the life-of-mine plan during the annual planning process. Low US$ commodity prices and high operating costs resulted in the shortening of the life of mine of the operation. Stripping activities in the new plan have been significantly reduced, resulting in a decrease in the reserves to be mined and the lower recoverable amount at 30 June 2015. The recoverable amount of Hidden Valley is US$53.7 million.
     Production costs include mine production and transport and refinery costs, applicable general administrative costs, movement in inventories and ore stockpiles, ongoing environmental rehabilitation costs and transfers for stripping activities. Employee termination costs are included, except for employee termination costs associated with major restructuring and shaft closures, which are separately disclosed. Production costs, analysed by nature, consist of the following:
 For the assumptions used to calculate the rehabilitation costs, refer to note 25. This expense includes the change in estimate for the rehabilitation provision where a rehabilitation asset no longer exists as well as rehabilitation costs. For 2015, US$5.8 million (2014: US$5.1 million) (2013: US$7.3 million) was spent on rehabilitation.
 Included in the total for the 2015 financial year is an amount of US$1.7 million in reparation costs relating to the explosion that occurred in March 2015 at the Brand 1A ventilation shaft, which was in the process of being rehabilitated.
  F-18


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 5
 COST OF SALES
   6
 PROFIT ON SALE OF PROPERTY, PLANT AND EQUIPMENT
 ACCOUNTING POLICY
 Figures in million
 2015
   Profit on sale of property, plant and equipment
 1
    7
 OTHER EXPENSES (NET)
 Figures in million
 2015
    32
     1
     -
     -
    Total other expenses (net)
 33
      8
 OPERATING LOSS
  Figures in million
 2015
   Auditor's remuneration
 Made up as follows:ExternalFees - current year
 2
     -
    Total auditor's remuneration
 2
    The recoverable amounts for the impaired operations have been determined on a fair value less costs to sell basis using the assumptions per note 14 in discounted cash flow models and attributable resource values. This is a fair value measurement classified as level 3.
  Other impairments include US$22.9 million on Phakisa following the annual life-of-mine plan assessments, and US$3.5 million for Freddies 9 as plans to develop the project further at this stage have been stopped. The recoverable amounts are US$328 million and US$nil for Phakisa and Freddies 9 respectively.
 For the 2013 financial year, US$6.8 million profit relates to the sale of the Merriespruit South mining right to Witwatersrand Consolidated Gold Resources Limited (Wits Gold). Also included is a profit of US$1.7 million for the sale of the Sir Albert Medical Centre and its pharmacy. The remaining profit is the sale of scrap material (including steel) from sites that are closed and being rehabilitated in the Free State.
 During the 2014 financial year, an impairment of US$130.3 million was recognised on Phakisa. The impairment followed a change in the life-of-mine plan during the annual planning process. The previously planned decline shaft that required significant additional capital expenditure, was removed from the life-of-mine plan. The impairment comprised of US$123.1 million goodwill and US$7.1 million mining assets. In 2014, the recoverable amount of Phakisa was US$401.7 million. Impairments on Steyn 2 of US$3.4 million and St Helena of US$2.0 million were recognised following the decision not to mine these operations in future. These operations were impaired to the recoverable amount of US$nil.
   The total for 2015 includes a provision of US$1.3 million for the loan to Rand Refinery (Proprietary) Limited (Rand Refinery). Refer to notes 19 and 20 for further details.
  Included in the total for 2015 is a loss of US$33.4 million (2014: US$15.0 million) (2013: US$39.8 million) related to the translation of the US dollar denominated loans into SA rand (refer to note 28). In 2014, a loss of US$3.4 million was recorded, related to the Australasian intercompany loans not designated as forming part of the net investment in the group's international operations.
 Gains and losses on disposals of property, plant and equipment are determined by comparing the proceeds of the sale with the carrying amount and  are recognised in the income statement.
 During the 2013 financial year, an impairment to the value of US$268.0 million was recognised for Hidden Valley. This was due to the operation's poor performance at that stage and the reductions in the US dollar gold and silver prices.
 Included in Other for the 2015 financial year is a credit of US$7.6 million relating to the reduction in employees qualifying for post-retirement benefits. Refer to note 26. In addition, amounts relating to inventory adjustments are included in Other for the 2015, 2014 and 2013 financial years.
 During the 2014 financial year, a ground swap between Joel mine and Sibanye Gold Limited's (Sibanye) Beatrix mine was completed which resulted in a non-cash profit being recognised for the difference between carrying value of the Joel portion and the fair value of the Beatrix portion. Refer to note 27 for further detail.
 F-19


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 9
 INVESTMENT INCOME
 ACCOUNTING POLICY
 Figures in million
 2015
    20
    1
     9
     9
     1
    Total investment income
 20
     10
 FINANCE COST
 Figures in million
 2015
   Financial liabilities
  10
     -
     10
    Non-financial liabilities
  1
     13
     -
     14
     24
     (2)
    Total finance cost
 22
     11
 TAXATION
  Interest income is recognised 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.
   ACCOUNTING POLICY
 Taxation is made up of current and deferred taxation. The 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 are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to
  be paid to the tax authorities.
 Deferred taxation is recognised on temporary differences existing at each reporting date between the tax base of all assets and liabilities and their carrying amounts. Substantively enacted tax rates are used to determine future anticipated effective tax rates which in turn are used in the determination of deferred taxation, 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. Deferred tax is charged to profit or loss, except where the tax relates to items recognised in other comprehensive income or directly in equity in which case the tax is also recognised in other comprehensive income or directly in equity. The effect on deferred tax of any changes in tax rates is recognised 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 amortisation and depreciation on property, plant and equipment, provisions, unutilised tax losses and unutilised capital allowances carried forward. Deferred tax assets relating to the carry forward of unutilised tax losses and unutilised capital allowances are recognised to the extent that it is probable that future taxable profit will be available against which the unutilised tax losses and unutilised capital allowances can be utilised. The recoverability ofthese assets is reviewed at each reporting date and adjusted if recovery is no longer probable.
 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.
 Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
   F-20


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 11
 TAXATION
  Figures in million
 2015
   SA taxation
  1
    (1)
     2
      -
      -
    -
      67
    67
   68
   Foreign taxation
  (6)
    (1)
    (5)
   Total taxation credit/(expense)
 62
    Figures in million
 2015
   Taxation by type
  1
    -
      61
   62
       
  Mining tax on gold mining income in South Africa is determined according to a formula, based on the taxable income from mining operations. 5% of total revenue is exempt from taxation while the remainder is taxable at a higher rate than non-mining income as a result of applying the gold mining formula.
  CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
 The group is subject to income tax in several jurisdictions. Significant judgement 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. Where the final tax outcome is 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 judgement with regard 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 recognised.
 Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. When different tax rates apply to different levels of taxable income, deferred tax assets and liabilities are measured using the average tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which the temporary differences are expected to reverse. At the group’s South African operations, such average tax rates are directly impacted by the profitability of the relevant mine. The deferred tax rate is therefore based on the current estimate of future profitability of an operation when temporary differences will reverse, based on tax rates and tax laws that have been enacted at the balance sheet date. The future profitability of each mine, in turn, is determined by reference to the life-of-mine (LoM) plan for that operation. The LoM plan is influenced by factors as disclosed in note 14, which may differ from one year to the next and normally result in the deferred tax rate changing from one year to the next.
 All qualifying mining capital expenditure is deducted from taxable mining income to the extent that it does not result in an assessed loss. 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 utilised against mining income generated from the relevant ring-fenced mine.
  The deferred 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 the balance sheet date. Depending on the profitability of the operations, the deferred tax rate can consequently be significantly different from year to year.
 F-21


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 11
 TAXATION
  INCOME AND MINING TAX RATES
  Figures in million
 2015
    148
    (24)
    (63)
    3
      -
     1
 (21)
    2
     2
 45
   3
 (5)
   4
 (23)
   Income and mining taxation
 62
    Effective income and mining tax rate (%)
 (14)
   DEFERRED TAX
  Figures in million
 2015
   (70)
   (52)
   (18)
   227
   212
   15
  Net deferred tax liability
 157
 
 245
   Figures in million
 2015
   227
   227
   -
   (70)
   (41)
   (10)
   (19)
  Net deferred tax liability
 157
 
 245
 Comprises:Net deferred tax liability
 157
   -
    The recoverability of the deferred tax asset for Australia is no longer considered probable, following the revised LoM plan and impairment recognised on Hidden 
  Valley and as a result it was derecognised on 30 June 2015. For the 2013 financial year, the recovery of the deferred tax asset previously recognised for the Hidden Valley operation was deemed unlikely as there are insufficient estimated future taxable profits against which it could be utilised. As a result, it was derecognised on 30 June 2013.
  
 1 This relates to the decrease in the deferred tax rates related to Freegold (Harmony) Pty Ltd (Freegold) (20.3% to 16.7%) and Randfontein Estates Limited (Randfontein) (18.9% to 14.3%) mainly due to the lower estimated profitability. In 2014, the significant decreases in the deferred tax rates related to Harmony Gold Mining Company Limited (Harmony) (26.4% to 13.4%) and Freegold (22.9% to 20.3%) mainly due to the lower estimated profitability. In 2013, the significant decreases related to Freegold (24.3% to 22.9%) and Randfontein (18.6% to 17.4%).
  2 This relates to the additional capital allowance that may be deducted from taxable income from mining operations in South Africa. A significant portion relates to Avgold Limited (Avgold), which has a 0% effective tax rate.
 
 4 This relates primarily to the Hidden Valley operation and represents tax losses and deductible temporary difference arising in the year for which future taxable profits are not considered probable.
 3 In 2015, the Australian deferred tax asset was derecognised as the recoverability is deemed unlikely following the revised LoM for Hidden Valley. For the 2013 financial year, represents the derecognition of the previously recognised deferred tax asset in respect of tax losses for the Hidden Valley operation for which future taxable profits are no longer considered probable.
 F-22


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 11
 TAXATION
 DEFERRED TAX
  Figures in million
 2015
   245
   (61)
   -
   (27)
  Balance at end of year
 157
   Figures in million
 2015
  1
 1 891
  2
 339
  3,5
 47
   595
   4
 1 617
   202
  3
 47
  DIVIDEND TAX (DT)
 12
 DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS
 ACCOUNTING POLICY
   
 1
 
 2
 
 3
 
 4
 A withholding tax of 15% on dividends (excluding a return of capital) and other distributions to the beneficial owners of shares (shareholders) became effective on 1 April 2012. DT is withheld by the company declaring the dividend or the withholding agent, unless specifically exempt. Foreign residents could qualify for an exemption or a reduced DT rate in terms of their relevant tax treaty. The withholding tax is a tax on the shareholder and if applicable will be withheld by the company and will reduce the amount paid to the shareholder.
 A non-current asset or disposal group (a business grouping of assets and their related liabilities) is designated as held for sale and stated at lower of carrying value and fair value less cost to sell, 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 are 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 cost to sell). At each subsequent reporting date, the carrying values are remeasured for possible impairment. A reversal of impairment is recognised for any subsequent increase in net selling price but not in excess of the cumulative impairment loss already recognised.
 No depreciation is provided on non-current assets from the date they are classified as held for sale. Where an investment in associate is classified as held for sale, the group will no longer equity account for the investment.
 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. No restatement of balance sheet comparative amounts is done.
 The assets and liabilities of Evander Gold Mines Limited (Evander), a wholly owned subsidiary of Harmony Gold Mining Company Limited (Harmony), were classifiedas held for sale following the signing of a sale of shares and claims agreement on 30 January 2012. On 30 May 2012, Harmony announced the signing of a new sale of shares and claims agreement with Pan African Resources plc (Pan African).
 All conditions precedent to the sale were fulfilled and the transaction was completed on 28 February 2013. The purchase consideration of US$170.0 million was adjusted for distributions received prior to the effective date of US$23.4 million. A group profit of US$11.4 million was recorded.
  F-23


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 12
 DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS
  Figures in million
 2015
   Income statementRevenue
 -
     -
     -
     -
     -
     -
    Profit for the year from discontinued operations
 -
    Cash flowsOperating cash flows
 -
     -
    Total cash flow from discontinued operations
 -
    13
 EARNINGS/(LOSS) PER SHARE
 BASIC LOSS PER SHARE
 2015
    436 187
     (185)
     436 002
     (1 578)
    Basic weighted average number of shares in issue ('000)
 434 424
    2015
    (374)
     -
    Total net loss attributable to shareholders (millions)
 (374)
     (86)
     -
    Total basic loss per share (cents)
 (86)
    DILUTED LOSS PER SHARE
 2015
    434 424
    3 667
   Weighted average number of ordinary shares for diluted earnings per share ('000)
 438 091
    2015
    (86)
    -
   Total diluted loss per share (cents)
 (86)
    DIVIDENDS
 ACCOUNTING POLICY
    For diluted earnings/(loss) 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.
 The inclusion of share options issued to employees, as potential ordinary shares, has a dilutive effect on the earnings/(loss) per share. The issue price and the exercise price include the fair value of any service to be supplied to the entity in the future under the share option or other share-based payment arrangement.
   Basic 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.
  F-24


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 13
 EARNINGS/(LOSS) PER SHARE
 DIVIDENDS
 Figures in million
 2015
    -
    -
   On 13 August 2012, the board declared a dividend of 50 SA cents (US$6.2 cents) per share related to the year ended 30 June 2012. An interim dividend for the year ended 30 June 2013 of 50 SA cents (US$5.7 cents) per share was declared on 1 February 2013.
  F-25


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 14
 PROPERTY, PLANT AND EQUIPMENT
 Figures in million
 2015
   1 862
   104
   445
   19
  Total property, plant and equipment
 2 430
  (a) Mining assets
 ACCOUNTING POLICY
 Depreciation
 ImpairmentTesting for impairment is done in terms of the group policy as discussed in note 2.5.
 Stripping activities
   Mining assets including mine development costs and mine plant facilities are initially recorded at cost, whereafter they are measured at cost less accumulated depreciation and impairment. Costs include expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably.
 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. 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 capitalised 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.
 The group’s mineral use rights are enforceable regardless of whether proved or probable reserves have been established. In certain limited situations, the nature of use changes from an exploration right to a mining right upon the establishment of proved 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 proved and probable reserves and/or undeveloped mineral interests.
 Depreciation of mining assets is computed principally by the units-of-production method over life-of-mine based on estimated quantities of economically recoverable proved and probable reserves, which can be recovered in future from known mineral deposits.
 In most instances, proved and probable reserves provide the best indication of the useful life of the group’s mines (and related assets). However, in some instances, proved and probable reserves may not provide a realistic indication of the useful life of the mine (and related assets). This may be the case, for example, where management is confident that further inferred resources will be converted into measured and indicated resources and if they are economically recoverable, they can also be classified as proved and probable reserves. Management is approaching economic decisions affecting the mine on this basis, but has chosen to delay the work required to designate them formally as reserves.
 In assessing which resources to include so as to best reflect the useful life of the mine, management considers resources that have been included in the life-of-mine plan. To be included in the life-of-mine plan, resources need to be above the cut-off grade set by management, which means that the resource can be economically mined and is therefore commercially viable. This consistent systematic method for inclusion in the life-of-mine plan takes management’s view of the gold price, exchange rates as well as cost inflation into account. In declaring the resource, management would have had to obtain a specified level of confidence of the existence of the resource through drilling as required by the South African Code for Reporting Exploration Results, Mineral Resources and Mineral Reserves (SAMREC).
 Additional confidence in the existence, commercial viability and economical recovery of such resources may be based on historical experience and available geological information, such as geological information obtained from other operations that are contiguous to the group’s as well as where the group mines continuations of these other operations’ orebodies and reefs. This is in addition to the drilling results obtained by the group and management’s knowledge of the geological setting of the surrounding areas, which would enable simulations and extrapolations to be done with a reasonable degree of accuracy.
 In instances where management is able to demonstrate the economic recovery of such resources with a high level of confidence, such additional resources, which may also include certain, but not all, of the inferred resources, as well as the associated future development costs of accessing those resources, are included in the calculation of depreciation. The future development costs are those costs that need to be incurred to access these inferred resources, for example the costs to complete a decline or level, which may include infrastructure and equipping costs. These amounts have been extracted from the cash flow projections for the life-of-mine plans.
 Mineral rights associated with production phase mineral interests are amortised over the life of mine using the units-of-production method in order to match the amortisation with the expected underlying future cash flows.
 The removal of overburden and other mine waste materials is often necessary during the initial development of a mine site, in order to access the mineral ore deposit. The directly attributable cost of this activity is capitalised in full within mining assets under construction, until the point at which the mine is considered to be capable of commercial production.
 When the waste removal activity improves access to ore extracted in the current period, the costs of production stripping are charged to the income statement as operating costs in accordance with the principles of IAS 2 Inventories.
 F-26


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 14
 PROPERTY, PLANT AND EQUIPMENT
 (a) Mining assets
 ACCOUNTING POLICY
 Stripping activities
 Scrapping of assets
 • 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.
 Estimating the quantities and/or grade of the reserves and resources requires the size, shape and depth of the orebodies to be determined by analysing geological data such as the logging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data.
 Because the economic assumptions used to estimate the gold mineral reserves and resources change from year to year, and because additional geological data is generated during the course of operations, estimates of the mineral reserves and resources may change from year to year. Changes in the reserves and resources 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;• Scrapping of assets to be recorded in the income statement, following the derecognition of assets as no future economic benefit expected;• Depreciation and amortisation charged in the income statement may change as they are calculated on the units-of-production method;• Environmental provisions may change as the timing and/or cost of these activities may be affected by the change in mineral reserves; and• Useful life and residual values may be affected by the change in mineral reserves.
 At the end of each financial year, the estimate of proved and probable gold mineral reserves and resources is updated. Depreciation of mining assets is prospectively adjusted, based on these changes.
 The group includes certain inferred resources in the denominator and future development costs in the numerator when performing the depreciation calculation for certain of its operations, where proved and probable reserves alone do not provide a realistic indication of the useful life of mine (and related assets). During the periods presented, this related to the Doornkop South Reef and Masimong shafts. Had the group only used proved and probable reserves in its calculations, depreciation for 2015 would have amounted to US$226.4 million (2014: US$217.6 million) (2013: US$241.2 million), compared with the reported totals of US$215.8 million (2014: US$207.0 million) (2013: US$226.9 million).
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – GOLD MINERAL RESERVES AND RESOURCES
 SENSITIVITY ANALYSIS - GOLD MINERAL RESERVES AND RESOURCES EFFECT ON DEPRECIATION
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – PRODUCTION START DATE
 Various 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:
 Where production stripping activity both produces inventory and improves access to ore in future periods the associated costs of waste removal are allocated between the two elements. The portion which benefits future ore extraction is capitalised within stripping and development capital expenditure. If the amount to be capitalised cannot be specifically identified it is determined based on the volume of waste extracted compared with expected volume for the identified component of the orebody. Components are specific volumes of a mine’s orebody that are determined by reference to the life-of-mine plan.
 In certain instances significant levels of waste removal may occur during the production phase with little or no associated production. The cost of this waste removal is capitalised in full.
 All amounts capitalised in respect of waste removal are depreciated using the units-of-production method based on proved and probable ore reserves of the component of the orebody to which they relate.
 The effects of changes to the life-of-mine plan on the expected cost of waste removal or remaining reserves for a component are accounted for prospectively as a change in estimate.
 Where significant adverse changes have taken place relating to the useful life of an asset, that asset is tested for impairment in terms of the group policy as discussed in note 2.5. Whether or not an impairment is recognised, it is then necessary to review the useful lives and residual values of the assets within the CGU – this is reviewed at least annually. Where necessary, the useful lives and residual values of the individual assets are revised.
 Where the useful life of an asset is nil as a result of no future economic benefit expected from the use or disposal of that asset, it is necessary to derecognise the asset. The loss arising from the derecognition is included in profit or loss in the period in which the asset was derecognised.
 Gold mineral reserves and resources 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 and resources, 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.
 F-27


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 14
 PROPERTY, PLANT AND EQUIPMENT
 (a) Mining assets
               1 150
 
 1 180
 
 1 200
         14.00
 
 14.50
 
 17.00
         12.17
 
 11.86
 
 11.66
         2.75
 
 2.75
 
 2.75
         450 000
 
 450 000
 
 450 000
        2015
   2015
    40.86
   n/a
    23.35
   15.00
    5.84
   6.00
   Should management’s estimate of the future not reflect actual events, further impairments may be identified.Factors affecting the estimates include:• Changes to proved and probable ore reserves;• Economical recovery of resources;• The grade of the ore reserves may vary significantly from time to time;• Review of strategy;• Unforeseen operational issues at the mines;• Differences between actual commodity prices and commodity price assumptions;• Changes in the discount rate and foreign exchange rates; and• Changes in capital, operating mining, processing and reclamation costs.
 SENSITIVITY ANALYSIS - IMPAIRMENT OF ASSETS
 The sensitivity scenario of a 10% decrease in the commodity prices in the discounted cash flow models and the resource values used would have resulted in an additional impairment at 30 June 2015 for Phakisa of US$103.1 million, Doornkop of US$75.9 million and Hidden Valley of US$37.9 million. The decreases noted would have resulted in impairments at Target 1 of US$77.1 million, Target 3 of US$2.7 million, Tshepong of US$57.0 million (of which US$47.8 million is goodwill), Unisel of US$0.5 million and other Harmony assets of US$32.3 million.
 2015
 The post-tax real discount rate for Hidden Valley was 12.03% (2014: 9.33%) (2013: 8.52%) and the post-tax real discount rates for the South African operations ranged between 7.99% and 11.38% (2014: 7.03% and 11.56%) (2013: 6.21% and 10.20%), depending on the asset, were used to determine the recoverable amounts (generally fair value less costs to sell). 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. The attributable gold resource value assumptions:
   South Africa
 Hidden Valley
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – IMPAIRMENT OF ASSETS
  Management also considers such factors as the quality of the individual orebody, market risk, asset specific risks and country risk in determining the fair value.
 Key assumptions for the calculations of the mining assets’ recoverable amounts are the commodity prices, resource values, marketable discount rates, costs to sell, exchange rates and the annual life-of-mine plans. In determining the commodity prices and resource values to be used, management assesses the long-term views of several reputable institutions on commodity prices and based on this, derives the commodity prices and resource values. The life-of-mine plans are based on the proved and probable reserves as included in the Reserve Declaration, which are determined in terms of SAMREC and The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), as well as resources where management has high confidence in the orebody and economical recovery of gold, based on historic and similar geological experience.
 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 and the following gold price, silver price and exchange rates assumptions:
 F-28


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 14
 PROPERTY, PLANT AND EQUIPMENT
 (a) Mining assets
  Figures in million
 2015
  CostBalance at beginning of year
 4 181
   (55)
   207
   (4)
   (83)
   3
   9
   (527)
  Balance at end of year
 3 731
  Accumulated depreciation and impairmentsBalance at beginning of year
 1 686
   (55)
   285
   (3)
   (41)
   215
   (1)
   (217)
  Balance at end of year
 1 869
  Net carrying value
 1 862
  Scrapping of assets
 Stripping activities
 (b) Mining assets under construction
 ACCOUNTING POLICY
 During the 2015 financial year, Harmony management embarked on a life-of-mine optimisation process in respect of the South African operations. The optimisation ensured greater focus on mining profitable and higher grade areas at our operations and therefore resulted in the abandonment of lower grade and unprofitable areas from the life-of-mine plan for certain of the operations. A loss on scrapping of US$42.2 million (2014: US$nil) (2013: US$nil) was recorded.
 The abandonment of unprofitable areas in the plans resulted in the derecognition of property, plant and equipment as no future economic benefits are expected from their use or disposal and a loss on scrapping of property, plant and equipment amounting to US$20.2 million and US$19.8 million was recorded for Kusasalethu and Masimong respectively. Losses of US$1.9 million and US$0.3 million were also recorded for Tshepong and Phakisa.
 Included in the balance for mining assets is an amount of US$2.5 million (2014: US$43.2 million) for stripping activities. Depreciation of US$24.8 million (2014: US$19.4 million) and impairment of US$32.3 million (2014: US$nil) related to Hidden Valley were recorded for these activities.
 At the group’s surface mines, when it has been determined that a mineral property can be economically developed as a result of establishing proved and probable reserves, costs incurred to develop the property are capitalised as incurred until the mine is considered to have moved into the production phase. These costs include costs to further delineate the orebody and remove overburden to initially expose the orebody. 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 capitalised to the extent that such costs will provide future economic benefits. 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.
 Borrowing costs are capitalised 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 capitalised until the asset moves into the production phase. Other borrowing costs are expensed.
  Exploration properties acquired are recognised in the balance sheet within development cost and are shown at cost less provisions for impairment determined in accordance with the group’s accounting policy on impairment of non-financial assets.
 Mineral interests associated with development and exploration phase mineral interests are not amortised until such time as the underlying property is converted to the production stage.
 Capitalisation of pre-production costs ceases when commercial levels of production are reached. Commercial levels of production are discussed under “production start date” above.
  F-29


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 14
 PROPERTY, PLANT AND EQUIPMENT
 (b) Mining assets under construction
  Figures in million
 2015
  CostBalance at beginning of year
 97
   30
  1
 2
   -
   (11)
   (14)
  Balance at end of year
 104
  
 1 The average capitalisation rate applied was 3.4% (2014: 3.4%).
 (c) Undeveloped properties
 ACCOUNTING POLICY
  Figures in million
 2015
  CostBalance at beginning of year
 512
   -
   (66)
  Balance at end of year
 446
  Accumulated depreciation and impairmentsBalance at beginning of year
 1
   -
   -
  Balance at end of year
 1
  Net carrying value
 445
  (d) Other non-mining assets
 ACCOUNTING POLICY
  Undeveloped properties are initially valued at the fair value of resources obtained through acquisitions. The carrying values 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.
 Land is shown at cost and not depreciated. Other non-mining fixed assets are shown at cost less accumulated depreciation and accumulated impairment losses.
 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.• Furniture and equipment at 16.67% per year.
   F-30


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 14
 PROPERTY, PLANT AND EQUIPMENT
 (d) Other non-mining assets
  Figures in million
 2015
  CostBalance at beginning of year
 45
   (20)
   11
   2
   (4)
  Balance at end of year
 34
  Accumulated depreciation and impairmentsBalance at beginning of year
 32
   (20)
   3
   1
   (1)
  Balance at end of year
 15
  Net carrying value
 19
  15
 INTANGIBLE ASSETS
 ACCOUNTING POLICY
 Figures in million
 2015
   70
   3
  Total
 73
   Intangible assets consist of all identifiable non-monetary assets without physical substance. They are stated at cost less accumulated amortisation and accumulated impairment losses, if any. The following are the main categories of intangible assets:
 Goodwill
 Goodwill is an intangible asset with an indefinite useful life which is not amortised but tested for impairment on an annual basis, or when there is an indication of impairment. The excess of consideration transferred over the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the group’s share of the identifiable net assets acquired is recorded as goodwill. Goodwill on acquisition of subsidiaries, joint ventures and businesses is 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. 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-organisation, the goodwill is re-allocated to the units affected.
  Technology-based assets
 Acquired computer software licences that require further internal development are capitalised on the basis of costs incurred to acquire and bring to use the specific software. These technology-based assets are classified as intangible assets with a finite useful life. These assets are amortised on a straight-line basis over their estimated useful lives, which are reviewed annually, as follows:• Computer software at 20% per year.
 Due 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 2.5. These calculations use estimates as per note 14.
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS - IMPAIRMENT OF GOODWILL
  F-31


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 15
 INTANGIBLE ASSETS
 (a)  Goodwill
 Figures in million
 2015
  CostBalance at beginning of year
 224
   (29)
  Balance at end of year
 195
  Accumulated amortisation and impairmentsBalance at beginning of year
 144
  1
 -
   (19)
  Balance at end of year
 125
  Net carrying value
 70
    19
   48
   3
  Net carrying value
 70
  (b)
 Technology-based assets
 Figures in million
 2015
  CostBalance at beginning of year
 17
   1
   (2)
  Balance at end of year
 16
  Accumulated amortisation and impairmentsBalance at beginning of year
 13
   1
   (1)
  Balance at end of year
 13
  Net carrying value
 3
   ACCOUNTING POLICY - FINANCIAL ASSETS (APPLICABLE TO NOTES 16, 17, 18 AND 19)
 Financial assets are initially measured at fair value when the group becomes a party to their contractual arrangements, with the exception of loans and receivables which are recognised on origination date. 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 assets is discussed below.
 A financial asset is derecognised 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.
 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 recognised in equity is recognised in profit or loss.
 Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.
 
 1 The goodwill of Phakisa amounting to US$123.2 million, was impaired on 30 June 2014 as the carrying value exceeded the fair value less costs to sell of the cash-generating
 unit. Refer to note 14 for details of the assumptions used in the impairment test.
 Technology-based assets includes computer software and intellectual property which has been acquired and developed for the group. These assets are amortised over five years.
  F-32


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 ACCOUNTING POLICY - FINANCIAL ASSETS (APPLICABLE TO NOTES 16, 17, 18 AND 19)
     16
 RESTRICTED CASH
 Figures in million
 2015
  Non-current
 4
   4
   -
  Current
 1
   1
  Total restricted cash
 5
    17
 RESTRICTED INVESTMENTS
 Figures in million
 2015
   192
   4
  Total restricted investments
 196
  Held-to-maturity investments are 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 amortised cost using the effective interest method. The group assesses at the end of each reporting period whether there is objective evidence that a held-to-maturity investment is impaired as a result of an event.
 Financial assets at fair value through profit or loss have two sub-categories: financial assets held-for-trading, and those designated at fair value through profit or loss at inception. These assets are subsequently measured at fair value with gains or losses arising from changes in fair value recognised in the income statement in the period in which they arise.
 The amount relates to funds set aside to serve as collateral against guarantees made to the Department of Mineral Resources (DMR) in South Africa for environmental and rehabilitation obligations. Refer to note 25. A portion of the funds are held on call account and the balance is invested in money market funds.
 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 amortised cost using the effective interest method. Loans and receivables include trade and other receivables (excluding VAT and prepayments), restricted cash and cash and cash equivalents.
   The amount relates to monies released from the environmental trust funds as approved by the DMR. These funds may only be used for further rehabilitation.
 Cash 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.
 Trade and other receivablesare recognised initially at fair value and subsequently measured at amortised 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. 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 recognised 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.
 •
 •
 •
 •
 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 the investment matures or management intends to dispose of the investment within 12 months of the balance sheet date.
 Available-for-sale financial assets are subsequently carried at fair value. The fair values of quoted investments are based on current bid prices. If the fair value for a financial instrument cannot be obtained from an active market, the group establishes fair value by using valuation techniques.
 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 considered impaired, the cumulative loss is removed from other reserves and recognised in the income statement. Subsequent increases in the fair value are recognised in equity as impairment losses recognised in the income statement are not reversed through the income statement.
 F-33


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 17
 RESTRICTED INVESTMENTS
 (a) Environmental trust funds
  Figures in million
 2015
   113
   39
   40
  Total environmental trust funds
 192
  ACCOUNTING POLICY
  Figures in million
 2015
   213
   11
   1
   (4)
   (22)
   18
   4
   -
   (29)
  Balance at end of year
 192
  (b) The social trust fund
  Figures in million
 2015
   4
   -
   -
   -
   -
  Balance at end of year
 4
     The environmental trust funds are irrevocable trusts under the group's control. Contributions to the trusts are invested in interest-bearing short-term and medium-term cash investments and medium term equity-linked notes issued by commercial banks that provide guaranteed interest and additional interest or growth linked to the growth of the Shareholder Weighted Top 40 (SWIX 40) or the Top 40 index of the JSE. The equity-linked notes are designated fair value through profit or loss investments and recorded at fair value whilst the interest-bearing short-term investments are classified either as held-to-maturity and recorded at amortised cost or as cash and cash equivalents and recorded at fair value. These investments provide for the estimated cost of rehabilitation at the end of the life of the group's mines. Income earned on the investments is retained in the funds and reinvested.
 The social trust fund is an irrevocable trust under the group's control. The group undertook to donate over a period of 10 years to The Harmony Gold Mining Group Social Plan Trust in terms of an agreement signed on 3 November 2003. An initial donation of US$2.7 million was made during the 2004year. Thereafter instalments of R3.5 million per annum were made with the final instalment 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 as to avoid or minimise the effect of job losses and a decline in employment through turnaround or redeployment strategies.
 The social trust fund investment comprises a unit trust portfolio that is exposed to the fair value changes in the equity market and is classified as a fair value through profit or loss investment.
 Contributions are made to the group's environmental 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. The trusts are consolidated into the group as the group exercises control of the trusts. The measurement of the investments held by the trust funds is dependent on their classification under financial assets. Income received and gains are treated in accordance with these classifications.
 F-34


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 18
 INVESTMENTS IN FINANCIAL ASSETS
 Figures in million
 2015
  Available-for-sale financial assetsBalance at beginning of year
 -
   -
   -
   -
   -
  Balance at end of year
 -
   19
 TRADE AND OTHER RECEIVABLES
 Figures in million
 2015
  Current assets
   35
   10
   (5)
   40
   -
   4
   1
    5
   12
  Total current trade and other receivables
 62
  Non-current assets
   17
   (10)
  Total non-current trade and other receivables
 7
     Figures in million
 2015
   6
   -
   -
   (1)
  Balance at end of year
 5
    At the end of 2015 and 2014, all investments are unlisted shares and 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.
  No impairment allowance is necessary in respect of any balances included in interest and other receivables as all amounts are classified as fully performing.
 (ii) Included in the 2015 balance is a loan of US$9.5 million (2014: US$10.9 million) owed by Pamodzi Gold Limited (Pamodzi). Pamodzi was placed into liquidation during 2009 and the loan was provided in full. Harmony is a concurrent creditor in the Pamodzi Orkney liquidation.
 Included in the amount for 2014 is a net increase in fair value of US$0.7 million for the investment in Wits Gold. During 2014, a cash offer for Wits Gold's entire share capital was made to all Wits Gold shareholders by Sibanye. Harmony accepted the offer and on 14 April 2014 a total consideration of US$4.9 million was received. The accumulated gain of US$1.3 million recognised in equity was reclassified to the income statement, resulting in a profit on disposal.
 Included in the balance for the 2014 financial year is the self-insurance fund of US$16.3 million. The self-insurance fund was terminated during the 2015 financial year.
 (i) During 2015, Rand Refinery drew down on the facility provided by its shareholders. Harmony's portion of the shareholders' loan was US$10 million. As the loan is considered to be part of the net investment in the associate, Harmony's share of Rand Refinery's losses of US$2.1 million was recorded against the loan. At year end, the loan was tested for impairment and an amount of US$1.2 million was provided for. Refer to note 20 for more details.
 F-35


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 19
 TRADE AND OTHER RECEIVABLES
  Figures in million
 2015
   11
   1
   (2)
  Balance at end of year
 10
   Figures in million
 Gross
 30 June 2015
  38
 
 -
  1
 
 -
  -
 
 -
  -
 
 -
  1
 
 1
  5
 
 4
 45
 
 5
 30 June 2014
                             Figures in million
 Gross
 30 June 2015
  7
 
 1
  -
 
 -
  -
 
 -
  -
 
 -
  10
 
 9
 17
 
 10
 30 June 2014
                          Impairment
 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. The majority of fully performing trade receivables are indirectly associated with financial institutions of good credit quality. Similarly, the other loans and receivables noted above, other than those provided for, are fully performing and considered to be a low credit risk.
   Impairment
  F-36


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 20
 INVESTMENTS IN ASSOCIATES
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
    Figures in million
 2015
   -
   -
   -
  Balance at end of year
 -
    Figures in million
 2015
   -
   10
   1
   (1)
   (2)
   (1)
  Balance at end of year
 7
   Harmony acquired a 32.4% interest in Pamodzi on 27 February 2008, initially valued at US$46.5 million. Pamodzi was listed on the JSE and had interests in operating gold mines in South Africa. Pamodzi was placed in liquidation in March 2009 and the trading of its shares on the JSE was suspended. As at 30 June 2015, the liquidation process has not been concluded. No financial information subsequent to 31 March 2009 is available and therefore no information has been disclosed.
 As a precautionary measure following the challenges experienced by the implementation of the software system, Rand Refinery's shareholders have extended Rand Refinery an irrevocable, subordinated loan facility of up to US$114.2 million. The facility is convertible to equity after a period of two years. Harmony's maximum commitment in terms of this facility is US$13.3 million. The agreements relating to the facility were signed on 23 July 2014. In December 2014, Rand Refinery drew down US$88.1 million on the shareholders' loan. Harmony's portion of the shareholders' loan drawn down was US$10.4 million. Interest on the facility is JIBAR plus a margin of 3.5%. During the 2015 financial year, interest received on the drawn loan amounted to US$0.5 million.
 Following the finalisation of Rand Refinery's 2013 and 2014 audited financial statements, which accounted for the known inventory discrepancy at that date, Harmony has recorded a further US$2.1 million loss against the loan to Rand Refinery (loan to associate) for its share of Rand Refinery's losses. The loan, in substance, forms part of Harmony's net investment in Rand Refinery.
 At 30 June 2015, the loan to associate was tested for impairment and a provision for impairment of US$1.2 million was required. This impairment is included in "Other expenses (net)" in the income statement.
 The investments in associates are evaluated annually for impairment by comparing the entire carrying value of the investment (including loans to associates) to the recoverable amount, which is the higher of value in use or fair value less costs to sell. Discounted cash flow models are used to calculate the net present value of the investments. The cash flows in the models include expected interest and capital payments on loans, dividends and proceeds on disposal.
 Rand Refinery provides precious metal smelting and refining services in South Africa. Harmony holds a 10.38% share in Rand Refinery. Although the group holds less than 20% of the equity shares of Rand Refinery, the group is able to exercise significant influence by virtue of having a right to appoint a director on the board. Through the 10% shareholding and the right to appoint a director on the board, the investment has been accounted for as an associate.
 Due to issues experienced at Rand Refinery following the implementation of a new Enterprise Resource Planning (ERP) system on 1 April 2013, a discrepancy between the actual inventory and the accounting records was noted. Harmony provided for its estimated share of loss for the inventory discrepancy and recognised a US$12.0 million loss in the 2014 financial year. This resulted in the investment being written down to US$nil during the 2014 financial year.
    F-37


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 20
 INVESTMENTS IN ASSOCIATES
  Figures in million
 2015
   44
   31
   24
   7
  75
   -
  Total assets
 75
  1
 88
   23
  Total liabilities
 111
   54
   (33)
   -
   (33)
   -
  Percentage interest held
 10%
  
 1 Includes the loans to shareholders.
  21
 INVESTMENT IN JOINT OPERATIONS
 MOROBE MINING JOINT VENTURES (MMJV) PARTNERSHIP AGREEMENT
 22
 INVENTORIES
 ACCOUNTING POLICY
 Figures in million
 2015
   3
   50
   56
   109
   (3)
  Total current portion of inventories
 106
  Included in the balance above is:Inventory valued at net realisable value
 44
    Inventories, which include bullion on hand, gold-in-process, gold in lock-up, ore stockpiles and consumables, are measured at the lower of cost and net realisable value. Net realisable value is assessed at each reporting date and is determined with reference to relevant market prices.
 The cost of bullion, gold-in process and gold in lock-up is determined by reference to production cost, including amortisation and depreciation at the relevant stage of production. Ore stockpiles are valued at average production cost. Stockpiles and gold in lock-up are classified as non-current assets where the stockpile exceeds current processing capacity and where a portion of static gold in lock-up is expected to be recovered more than 12 months after balance sheet date.
  The group has a 50% interest in mining and exploration assets located in the Morobe province, PNG. Newcrest Mining Limited (Newcrest) owns the remaining 50% interest in these assets. The assets include the Hidden Valley mine and the Wafi-Golpu projects. This partnership was formed during the 2009 financial year through a range of transactions, which included Newcrest’s purchase of a 30.01% participating interest and a further farm-in of an additional 19.99% participating interest in the assets. The total value of the transaction was estimated at US$530 million and was completed by 30 June2009. The joint arrangement is accounted for as a joint operation.
 Gold in-process inventories represent materials that are currently in the process of being converted to a saleable product. 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 or stockpile plus the in-process conversion costs, including the applicable depreciation relating to the process facility, incurred to that point in the process. Gold in-process includes gold in lock-up which is generally measured from the plants onwards. Gold in lock-up is expected to be extracted when plants are demolished at the end of their useful lives, which is largely dependent on the estimated useful life of the operations feeding the plants. Where mechanised 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. At the group’s open pit operations, gold in-process represents production in broken ore form.
 F-38


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 22
 INVENTORIES
 23
 SHARE CAPITAL
 ACCOUNTING POLICY
  Authorised
  Issued
  Share issues
 Treasury shares
  24
 OTHER RESERVES
 Figures in million
 2015
   (1 378)
   -
   41
   (57)
   175
   (13)
   (6)
  Total other reserves
 (1 238)
   Figures in million
 2015
   (1 010)
   (368)
  Balance at end of year
 (1 378)
   Ordinary 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.
  During the 2015 financial year, a write-down of US$1.2 million (2014: US$0.7 million) was made for the net realisable value adjustment for gold in lock-up.
 During August 2012, 3.5 million shares were issued to the Tlhakanelo Employee Share Trust. As the trust is controlled by the group, the shares are treated as treasury shares. During 2015, 670 859 (2014: 828 921) shares were exercised by employees and the remaining 1 062 672 shares are still held as treasury shares.
 During the year, an increase of US$4.7 million (2014: US$1.4 million) to the provision for slow moving and redundant stock was made. The increase in 2015 and 2014 in the provision was primarily the result of additional redundant stock items being identified in PNG and taken into account. The total provision at 30 June 2015 was US$10.0 million (2014: US$6.4 million).
   The balance of the foreign exchange translation reserve movement represents the cumulative translation effect of the group's off-shore operations. The US dollar amount includes the translation effect from rand to US dollar.
 F-39


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 24
 OTHER RESERVES
  Figures in million
 2015
   -
   -
   -
  Balance at end of year
 -
     Figures in million
 2015
   159
   16
  Balance at end of year
 175
    ACCOUNTING POLICY - PROVISIONS (APPLICABLE TO NOTES 25, 26 AND 27)
 Provisions are recognised 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 recognised as a provision is the net present value of the best estimate of the expenditure required to settle the present obligation at balance sheet date using a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The estimate takes into account the associated risks and uncertainties. The increase in the provision due to the passage of time is recognised 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.
 The balance of the fair value movement reserve represents the movement in the fair value of the available-for-sale financial assets. For details on the movement, refer to note 18.
 On 19 March 2010, Harmony Gold Mining Company Limited concluded an agreement with African Vanguard Resources (Proprietary) Limited (AVRD), for the purchase of its 26% share of the mining titles of the Doornkop South Reef. The original sale of the 26% share in the mining titles was accounted for as an in-substance call option by AVRD over the 26% mineral right. The agreement to purchase AVRD's 26% interest during the 2010 financial year is therefore considered to be a repurchase of the option (equity interest). The 26% interest was transferred from AVRD to Harmony in exchange for Harmony repaying the AVRD Nedbank loan and the issue of 2 162 359 Harmony shares. The difference between the value of the shares issued of US$20.5 million, the liability to the AVRD and transaction costs, have been taken directly to equity.
 Included in the 2015 financial year is an actuarial gain of US$0.4 million (2014: actuarial loss of US$2.9 million), net of tax of US$0.2 million (2014: US$0.7 million), on post-retirement benefits recognised in other comprehensive income (refer to note 26 for more details).
  The group issues equity-settled instruments to certain qualifying employees under an employee share option scheme and employee share ownership plan (ESOP) 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, based on the group’s estimate of the shares that are expected to eventually vest. During the 2015 financial year, the equity-settled share-based payment expense of US$16.4 million (2014: US$22.9 million) was charged to the income statement (refer to note 32 for more details).
  On 24 May 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. The convertible bonds were repaid in 2009.
 On 15 March 2004, Harmony announced that it had made an off-market cash offer to acquire all the ordinary shares, listed and unlisted options of Abelle Limited, held by non-controlling interests. The excess of the purchase price of US$86.5 million (A$123 million) over the carrying amount of non-controlling interest acquired, amounting to US$57 million, has been accounted for under other reserves.
 F-40


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 25
 PROVISION FOR ENVIRONMENTAL REHABILITATION
 ACCOUNTING POLICY
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
  Figures in million
 2015
  Provision raised for future rehabilitation
  198
   3
   (6)
   13
   (26)
  Total provision for environmental rehabilitation
 182
  Figures in million
 2015
  Future net undiscounted obligation
  237
   (192)
  Total future net undiscounted obligation
 45
    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 undiscounted cost for the mines, in the current monetary terms, is approximately US$237.3 million (2014: US$283.1 million).
 Estimated 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 is recognised 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 capitalised to mining assets against an increase in the rehabilitation provision. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised immediately in the income statement. If the asset value is increased and there is an indication that the revised carrying value is not recoverable, impairment is performed in accordance with the accounting policy dealing with impairments of non-financial assets. 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 capitalised cost is depreciated over the life of the related asset.
 Significant judgement is applied in estimating ultimate rehabilitation cost that will be required in future to rehabilitate the group’s mines. Ultimate cost may significantly differ from current estimates.
 For the South African operations, management used an inflation rate of 6.50% (2014: 6.50%) (2013: 6.00%) 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 dependent on the shaft’s life of mine and are as follows: for 12 months – 6.50% (2014: 6.75%) (2013: 5.30%); for one to five years – 7.30% (2014: 7.75%) (2013: 6.20%); for six to nine years – 7.80% (2014: 8.00%) (2013: 6.40%) and for ten years or more – 8.00% (2014: 8.25%) (2013: 7.25%). These estimates were based on recent yields determined on government bonds.
 In calculating the rehabilitation liability in PNG for 2015, an inflation rate of 5.0% (2014: 2.9%) (2013: 2.5%) was used, together with a discount rate of 6.25% (2014: 6.25%) (2013: 6.80%).
 The group’s mining and exploration activities are subject to extensive environmental laws and regulations. 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 group intends to finance the ultimate rehabilitation costs from the money invested in environmental trust funds as well as the proceeds on sale of assets and gold from plant clean-up at the time of mine closure. The group has guarantees in place, some cash-backed, relating to some of the environmental liabilities. Refer to notes 16 and 34.
 During 2014 and 2015, the group rehabilitated certain decommissioned operations in the Free State as part of its overall strategy of eliminating safety and health exposures and reducing environmental liability. Following several years of working closely with the DMR to determine the best solution for rehabilitating certain pits, Kalgold received a decision from the DMR during 2015 to use tailings to backfill pits that have been mined out and as a result the deposition into these pits is in progress.
 F-41


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 26
 RETIREMENT BENEFIT OBLIGATION
 ACCOUNTING POLICY
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
 (a) 
  Pension and provident funds
 (b) 
  Post-retirement benefits other than pensions
  •   Change in bond yields:
 •   Inflation risk:
 The liability is unfunded and will be settled out of cash and cash equivalents when it becomes due. The liability is based on an actuarial valuation conducted during the year ended 30 June 2015, using the projected unit credit method. The next actuarial valuation will be performed on 30 June 2016.
 •   Life expectancy: The obligation is to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the  plan’s liabilities.
 The net actuarial gain for 2015 was mainly a result of exits of current employees being higher than expected (2014: net actuarial loss due to change in medical scheme from Minemed to Bestmed).
 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 at the present value of the estimated future cash outflows using government bond interest rates consistent with the terms and risks of the obligation. Actuarial gains and losses as a result of these valuations are recognised in other comprehensive income (OCI) at revaluation date. Actuarial gains and losses recognised in OCI will not be recycled to profit or loss. The future liability for current and retired employees and their dependants is accrued in full based on actuarial valuations obtained annually.
 The principal actuarial assumptions used to determine the present value of unfunded obligations are discussed above. In addition thefollowing was also considered:
 •   It is assumed that 90% of employed members will be married at retirement or earlier death and that wives are four years younger  than their husbands. It is assumed that the only dependants will be spouses.
 An updated actuarial valuation is carried out at the end of each financial year. Assumptions used to determine the liability include a discount rate of 9%, 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) (retirement age of 60 years) and a medical inflation rate of 7% (2014: discount rate of 10.5%, retirement age of 60 years and 8.6% inflation rate) (2013: discount rate of 9.3%, retirement age of 60 years and 7.45% inflation rate).
 Management determined the discount rate by assessing government bonds with similar terms to the liability. The changes to the discount rate and medical inflation rate are similar to changes in interest and inflation rates in South Africa.
 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 defined contribution industry plans. The group’s liability is therefore limited to its monthly determined contributions.
 The provident funds are funded on a “monetary 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 9.50% of gross salary and wages for the 2015 year (2014: 9.25%). The fund is a defined contribution plan.
 The PNG Superannuation Act 2002 requires a compulsory employer contribution of 8.4% (2014: 8.4%) into an approved superannuation (pension) fund if an employee is appointed for a period of three months or more. The approved superannuation funds are defined contribution plans.
 Substantially all the group’s employees are covered by the above mentioned retirement benefit plans. Funds contributed by the group for the 2015 financial year amounted to US$43.0 million (2014: US$47.7 million).
 Harmony inherited a post-retirement medical benefit obligation, which existed at the time of the Freegold acquisition in 2002. The group’s obligation in this regard is to pay a subsidy of 2% for every completed year of employment up to a maximum of 50% of total medical aid contributions, commencing on date of retirement. Should the employee die, either in service or after retirement, this benefit will transfer to his/her dependants. The medical aid tariffs are based on the Bestmed medical scheme (Bestmed) options. Except for the pre-mentioned employees, Harmony has no other post-retirement obligation for the other group employees.
 •   It is assumed that all Continuation and Widow Members (CAWMs) will remain on the current benefit option and income band. For employed  members, post-employment contributions were assumed to be equal to the average payable for the current CAWMs membership;
 •   It is assumed that not all employed members will remain employed until retirement therefore estimated resignation and ill-health  retirement rates are also taken into account;
 F-42


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 26
 RETIREMENT BENEFIT OBLIGATION
 (b) Post-retirement benefits other than pensions
 Figures in million
 2015
   13
   5
   8
    23
   (1)
   -
  1
 
 (8)
   1
  2
 (1)
   (1)
  Balance at end of year
 13
  
 2 The net actuarial (gain)/loss has been recorded in other comprehensive income.
 Figures in million
 2015
    13
   -
  Balance at end of year
 13
   Figures in million
 2015
  Effect of a 1% increase on:Aggregate of service cost and finance cost
 -
   2
  Effect of a 1% decrease on:Aggregate of service cost and finance cost
 -
   2
    ACCOUNTING POLICY - FINANCIAL LIABILITIES (APPLICABLE TO NOTES 27, 28 AND 29)
  •  Borrowings are initially recognised at fair value net of transaction costs incurred and subsequently measured at amortised cost, comprising original  debt less principal payments and amortisation, using the effective yield method. Any difference between proceeds (net of transaction cost) and the  redemption value is recognised in the income statement over the period of the borrowing using the effective interest rate method.
 Fees paid on the establishment of the loan facilities are capitalised as a pre-payment and amortised over the period of the facility to which it relates,   to the extent it is probable that some or all of the facility will be drawn down. To the extent there is no evidence that it is probable that some or all of   the facility will be drawn down, the fee is expensed.
 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 payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.  Payables are classified as current liabilities if payment is due within a year or less. If not, they are presented as non-current liabilities.
 Financial liabilities 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 liabilities, with the exception of financial liabilities classified at fair value through profit or loss. The subsequent measurement of financial liabilities is discussed below.
  The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The analysis is performed on the same basis for 2014.
 
 1 The curtailment relates to the significant reduction in members qualifying for the post-retirement benefit, mainly arising from the change in the terms of employment of
 members, resulting in a reduction of the liability of US$8.2 million.
    F-43


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 27
 OTHER NON-CURRENT LIABILITIES
 ACCOUNTING POLICY
 Figures in million
 2015
  Financial liabilities
  2
  Non-financial liabilities
  1
   -
  Total
 3
     28
 BORROWINGS
 Westpac Bank
 Nedbank Limited
 In July 2007, Morobe Consolidated Goldfields entered into US dollar finance lease agreements with Westpac Bank for the purchase of mining fleet to be used on the Hidden Valley project. There is no debt covenant clause in the agreements. The repayments on the finance lease from Westpac Bank were completed in December 2013.
 During 2014, Harmony and Sibanye entered into an agreement whereby the Joel mine exchanged two portions of its mining right for two portions of Sibanye's Beatrix mine's mining right, as well as acquiring two additional portions from Beatrix (sale portions). The transaction was completed in May 2014. The purchase consideration of the sale portions acquired by Joel is payable as a royalty of 3% on gold revenue generated from these two portions. The royalty liability recorded is the net present value of 3% of future gold revenue of the sale portions. During 2015, an amount of US$0.2 million was recorded relating to time value of money and US$0.3 million relating to changes in estimates. Refer to note 14(a) for further details on the key assumptions for the calculation of the provision, which is based on the life-of-mine plan of Joel. Refer to note 6 for details on the profit recognised.
 The liability relates to the cash-settled share-based payment transaction following the award of ESOP share appreciation rights (SARs) to qualifying employees through the Tlhakanelo Employee Share Trust. Refer to note 32 for more details.
 Refer to the accounting policy on provisions above, accounting policies on financial liabilities below and note 32 for the accounting policy on share-based payments.
 Included in Other in the 2014 financial year is a provision of US$5.4 million relating to the pumping and treatment costs of fissure water in the Klerksdorp, Orkney, Stilfontein and Hartbeesfontein (KOSH) Basin. This provision was raised following the High Court's dismissal of Harmony's application to have a directive issued by the Department of Water Affairs (DWAF) in November 2005 set aside, as it relates to the Orkney operations, which were sold in 2008. The appeal application heard in November 2013 was unsuccessful and Harmony has consequently entered into separate negotiations with the claimants. During 2015, Harmony made a payment to Simmer and Jack Investments (Proprietary) Limited amounting to US$2.3 million and a payment of US$2.8 million to AngloGold Ashanti Limited, the two claimants in the matter, as full and final settlement.
  On 11 December 2009, the company entered into a loan facility with Nedbank Limited, comprising a term facility of R900 million (US$119.4 million) and a revolving credit facility of R600 million (US$79.6 million). The facility was utilised to fund the acquisition of the Pamodzi Free State assets as well as the group's major capital projects and working capital requirements. Interest accrued on a day-to-day basis over the term of the loan at a variable interest rate. The outstanding amount on the term loan was settled in December 2013 by drawing against the new facility (discussed below).
 On 30 November 2010, the company entered into an additional loan facility with Nedbank Limited, comprising a term facility of R500 million (US$70.1 million) and a revolving credit facility of R250 million (US$35.0 million). Interest terms are identical to the original facility. The repayment terms of the original revolving credit facility were amended to coincide with the repayment on the new facility. The outstanding amount on the term loan was settled in December 2013 by drawing against the new facility (discussed below).
 On 20 December 2013, the company entered into a loan facility with Nedbank Limited, comprising a revolving credit facility of R1 300 million (US$125.6 million). Interest accrues on a day-to-day basis over the term of the loan at a variable interest rate. R467 million (US$45.4 million) was drawn down during December 2013 to repay the outstanding amounts on the Nedbank term loans. The facility was repaid in March 2014. In January 2015, R400 million was drawn down.
 F-44


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 28
 BORROWINGS
 US dollar revolving credit facilities
 Terms and debt repayment schedule at 30 June 2015
 Debt covenants
 • 1
 • 2
 • 3
 
 1 Earnings before interest, taxes, depreciation and amortisation (EBITDA) as defined in the agreement excludes unusual items such as impairment and restructuring cost.
 
 2 Tangible Net Worth is defined as total equity less intangible assets.
 
 3 Leverage is defined as total net debt to EBITDA.
   Cession and pledge of operating subsidiaries' shares
 Nedbank Limited (secured loan - rand revolving credit facility)
 1, 3 or 6 month JIBAR plus 3.5%, payable at the elected interest interval
 3 or 6 month LIBOR plus 3%, payable at the elected interest interval
 US dollar revolving credit facility (secured loan)
  On 11 August 2011, the company entered into a loan facility which was jointly arranged by Nedbank Limited and FirstRand Bank Limited (acting through its Rand Merchant Bank division) (syndicate), comprising a US$300 million syndicated revolving credit facility, of which only US$270 million was drawn down. The facility was utilised to fund exploration projects in PNG. Interest at LIBOR plus 260 basis points was paid quarterly. The syndicated revolving facility was settled in February 2015 by drawing against the new facility (discussed below).
 On 22 December 2014, the company entered into a loan facility agreement which was jointly arranged by Nedbank Limited and Barclays Bank Plc, comprising a revolving credit facility of up to US$250 million. All conditions precedent were met during February 2015 and US$205 million was drawn down to repay the syndicated revolving credit facility, resulting in a net cash outflow of US$65 million. The remaining US$45 million was drawn down during May 2015. Interest accrues on a day-to-day basis over the term of the loan at a variable interest rate.
        Cession and pledge of operating subsidiaries' shares
 F-45


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 28
 BORROWINGS
 Interest-bearing borrowings
 Figures in million
 2015
  Non-current borrowings
  -
   -
   -
   -
   -
   -
   -
   -
   -
   -
   -
   33
   -
   35
   -
   -
   -
   (2)
   -
   270
   -
   (270)
   -
   -
   -
   247
   -
   250
   (4)
   1
   -
  Total non-current borrowings
 280
  Total interest-bearing borrowings
 280
  The maturity of borrowings is as follows:
  -
   33
   247
  280
  Undrawn committed borrowing facilities:
  -
   74
  74
  2015
  %
   n/a
   9.7
   3.0
    F-46


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 29
 TRADE AND OTHER PAYABLES
 ACCOUNTING POLICY
  Figures in million
 2015
  Financial liabilities
  43
   5
  Non-financial liabilities
  27
   26
   22
   9
   1
   4
  Total trade and other payables
 137
  (a) Leave liabilities
 Figures in million
 2015
   31
   (33)
   32
   (4)
  Balance at end of year
 26
  (b) ESOP share-based payment liability
 The liability relates to the cash-settled share-based payment transaction following the award of ESOP SARs to qualifying employees through the Tlhakanelo Employee Share Trust. Refer to note 32 for more details.
 Employee entitlements to annual leave are recognised 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 recognised in the balance sheet is as follows:
   F-47


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 30
 CASH GENERATED BY OPERATIONS
 Figures in million
 2015
    Reconciliation of loss before taxation to cash generated by operations:
  (436)
    Adjustments for:Amortisation and depreciation
 216
     285
     18
     (8)
     (6)
     (1)
     42
     2
     -
     (1)
     -
     (20)
     22
     18
     34
     1
     4
     2
    Effect of changes in operating working capital itemsReceivables
 10
     -
     (14)
    Cash generated by operations
 168
    ADDITIONAL CASH FLOW INFORMATION
   FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
 (a) Principal non-cash transactions
  FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
 (a) Acquisitions and disposal of investments/businesses
 (i)    Profit on sale of property, plant and equipment
 (ii)  
  Investments in financial assets
  (b) Principal non-cash transactions
 Share-based payments (refer to note 32).Joel/Sibanye ground swap (refer to note 27).
  At 30 June 2015, US$74.0 million (2014: US$152.6 million) of borrowing facilities had not been drawn down and is therefore available for future operating activities and future capital commitments. Refer to note 28.
 During May 2014, the ground swap between Joel mine and Sibanye's Beatrix mine was completed, resulting in a non-cash profit being recognised for the difference between the carrying value of the Joel portion and the fair value of the Beatrix portion.
 F-48


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 30
 CASH GENERATED BY OPERATIONS
 FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013
 (a) Acquisitions and disposal of investments/businesses
 Disposal of Evander
 Figures in million
 2015
    -
     -
     -
     -
     -
     -
     -
     -
     -
     -
    Purchase consideration
 -
     -
     -
    Total proceeds received in cash
 -
    (b) Principal non-cash transactions
   The conditions precedent for the sale of Evander Gold Mine Limited were fulfilled and the transaction was completed on 28 February 2013. The purchase consideration of R1.5 billion (US$170.0 million) was adjusted for distribution received prior to the effective date of US$23.4 million. Refer to note 12.
 F-49


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 31
 EMPLOYEE BENEFITS
 ACCOUNTING POLICY
 2015
    26 000
  1
 1 465
  Total number of permanent employees
 27 465
  Figures in million
 2015
  Aggregate earnings
   592
   43
   16
  Total aggregated earnings2
 651
  
 2 These amounts have been included in cost of sales, corporate expenditure and capital expenditure.
 During the 2015 financial year US$25.2 million (2014: US$26.1 million) was included in the payroll costs for termination costs. Termination costs include the cost relating to the voluntary retrenchment and restructuring process as well as retrenchments due to shaft closures (refer to note 5).
 •
 •
 Pension, provident and medical benefit plansare funded through annual contributions. The group pays fixed contributions into a separate entity  in terms of the defined contribution pension, provident and medical plans which are charged to the income statement in the year to which they  relate. The group's liability is limited to its monthly determined contributions and it has no further liability, legal or constructive, if the fund does not  hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Refer to note 26 for details of  the post-retirement medical benefit plan.
 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 recognises termination benefits at the earlier of the following dates: (a) when the group can  no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and  involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are  measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after balance sheet date are  discounted to present value.
  
 1 The total number of employees in Australia, including the Brisbane office, at 30 June 2015 was 75 (2014: 59). The total for the international operations includes the MMJV
 employees.
 F-50


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 32
 SHARE-BASED PAYMENTS
 EMPLOYEE SHARE-BASED PAYMENTS
  Figures in million
 2015
   5
   13
  Total employee share-based payments included in cost of sales
 18
   (a) 2012 employee share ownership plan
   Figures in million
 2015
  2012 employee share ownership planEquity-settled
 3
   2
  5
  Subsequent to the annual general meeting held on 1 December 2010, 1 039 794 ordinary shares have been issued in terms of the 2003 scheme and       35 902 437 share option awards have been granted in terms of the 2006 share plan. The Tlhakanelo Employee Share Trust is authorised to allocate     12 864 000 ordinary shares to the employee share ownership plan.
 ACCOUNTING POLICY
  • Equity-settled share-based payments plan where the group grants share options to certain employees in exchange for services received;• Equity-settled and cash-settled employee share ownership plan.
 Equity-settled share-based payments are measured at fair value that includes market performance conditions but excludes the impact of any service and non-market performance conditions 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, is recognised 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.
   The directors are authorised to issue up to 60 011 669 ordinary shares to participants who have received awards in accordance with Harmony's employee share incentive schemes.
 The group has the 2012 employee share ownership plan (ESOP) and the 2006 share plan that are active. The objective of these schemes is to recognise the contributions of employees to the group's financial position and performance and to retain key employees.
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
 The fair value of options granted is being determined using either a binomial, 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.
 During August 2012, Harmony issued the first awards under its ESOP. The ESOP is overseen by the Tlhakanelo Employee Share Trust. In terms of the ESOP rules, qualifying employees are offered one scheme share for every two share appreciation rights (SARs).
 On the fifth anniversary of the first allocation date, any unallocated scheme shares and SARs will be distributed to all employees who participated in the ESOP and who are still employed with the company pro rata in accordance with the number of scheme shares previously allocated to the employees.
 The SARs incorporate a cash bonus with a minimum pay-out guarantee of R18 and a maximum pay-out ceiling of R32 per SAR over the vesting period. The SARs include an equity-settled portion as well as a cash-settled portion related to the cash bonus. The cash-settled portion has been recognised as a liability in the balance sheet (refer to note 27 and 29), the fair value of which will be remeasured at each reporting date.
  F-51


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 32
 SHARE-BASED PAYMENTS
 EMPLOYEE SHARE-BASED PAYMENTS
 (a) 2012 employee share ownership plan
 Activity on awards
 Activity on awards outstanding
 Number of
 awards
 Number of
 awards
 Weighted
 average
 award price
 For the year ended 30 June 2015Balance at beginning of year
 1 699 748
 
 3 399 496
 77.65
  46 760
 
 93 520
 20.47
  (651 442)
 (1 302 884)
 77.95
  (43 034)
 (86 068)
 73.06
 Balance at end of year
 1 052 032
 
 2 104 064
 75.11
 For the year ended 30 June 2014Balance at beginning of year
                 Balance at end of year
     List of awards granted but not yet exercised (listed by grant date)
 Number of
 awards
 Award price
 (SA rand)
 Remaining
 life (years)
 As at 30 June 2015Scheme shares8 August 2012 allocation
 927 232
 n/a
 1.7
  42 600
 n/a
 1.7
  36 520
 n/a
 1.7
  45 680
 n/a
 1.7
 1 052 032
 Share appreciation rights8 August 2012 allocation
 1 854 464
 80.03
 1.7
  85 200
 56.35
 1.7
  73 040
 40.32
 1.7
  91 360
 31.01
 1.7
 2 104 064
 Total awards granted but not yet exercised
 3 156 096
 Figures in million
 2015
   4
   4
      F-52


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 32
 SHARE-BASED PAYMENTS
 EMPLOYEE SHARE-BASED PAYMENTS
 (a) 2012 employee share ownership plan
 Measurement
 (i) Assumptions applied at grant date for awards granted during the year
 Scheme
 shares
 SARs
 Price at date of grant (SA rand per share):15 March 2014 allocation
      Risk-free interest rate:15 March 2014 allocation
      Expected volatility: *15 March 2014 allocation
      Expected dividend yield:for all allocations
   Minimum payout guarantee (SA rand per SAR):for all allocations
  Vesting period (from grant date):15 March 2014 allocation
      (ii) Fair values used as a basis to recognise share-based cost
 Scheme
 shares
 SARs
 Minimum
 payout
 guarantee
         (iii) Cash-settled liability
 Figures in million
 2015
    1
   1
  Total cash-settled liability
 2
    3
   2
   (2)
   (1)
  Balance at end of year
 2
     * The volatility is measured as an annualised 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.
   The fair value of equity instruments granted during the year was valued using the Cox-Ross-Rubinstein binomial tree on the equity-settled portion of the SARs. The minimum payout guarantee is valued at net present value and the spot share price on grant date was used for the scheme shares.
 F-53


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 32
 SHARE-BASED PAYMENTS
 EMPLOYEE SHARE-BASED PAYMENTS
 (b) Options granted under the 2006 share plan
 The 2006 share plan consists of share appreciation rights (SARs), performance shares (PS) and restricted shares (RS).The share plan is equity-settled.
         •
  •
  Activity on share options
   Activity on options and rights granted but not yet exercised
 Number of
 options and
 rights
 Weighted
 average
 option price
 (SA rand)
 Number of
 rights
 Number of
 rights
 For the year ended 30 June 2015Balance at beginning of year
 12 222 725
 54.85
 
 9 123 758
 
 629 056
  6 998 079
 
 18.46
 
 7 255 423
 
 83 000
  (137 276)
 
 20.41
 
 (336 931)
 
 (29 350)
  (2 663 561)
 
 59.55
 
 (1 719 742)
 
 (9 604)
 Balance at end of year
 16 419 967
 38.86
 
 14 322 508
 
 673 102
 For the year ended 30 June 2014Balance at beginning of year
                            Balance at end of year
       Options and rights vested but not exercised at year end
 2015
  2015
  2015
   1 884 175
  -
  -
   82.29
  n/a
  n/a
  The PS will vest after three years from the grant date, if and to the extent that the performance conditions have been satisfied.
  •
 group's performance in comparison to the South African Gold Index.
  •
 number of the rights awarded are linked to the annual gold production of the group in relation to the targets set annually.
 •
 number of the rights awarded are linked to the group's performance in comparison to the South African Gold Index.
      SARs will vest in equal thirds in year three, four and five, subject to the performance conditions having been satisfied.
 The SARs will have an expiry date of six years from the grant date and the offer price equals the closing market prices of the underlying shares on the trading date immediately preceding the grant.
 The group's headline earnings per share must have grown since the allocation date by more than the South African Consumer Price Index (CPI).
 F-54


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 32
 SHARE-BASED PAYMENTS
 EMPLOYEE SHARE-BASED PAYMENTS
 (b) Options granted under the 2006 share plan
 List of options and rights granted but not yet exercised (listed by grant date)
 Number of
 options and
 rights
 Award price
 (SA rand)
 Remaining
 life (years)
 As at 30 June 2015Share appreciation rights16 November 2009
 1 223 601
 77.28
 0.4
  655 746
 84.81
 1.4
  670 229
 104.79
 2.4
  1 602 170
 68.84
 3.4
  5 524 192
 33.18
 4.4
  6 744 029
 18.41
 5.4
 16 419 967
 Performance shares27 September 2012
 6 160
 n/a
 0.2
  1 672 128
 n/a
 0.4
  5 562 559
 n/a
 1.4
  7 081 661
 n/a
 2.4
 14 322 508
 Restricted shares15 November 20101
 
 127 766
 n/a
 1.4
 1
 
 87 000
 n/a
 2.4
  30 802
 n/a
 0.2
  216 768
 n/a
 0.4
 1
 127 766
 n/a
 1.4
 1
 83 000
 n/a
 2.4
 673 102
 Total options and rights granted but not yet exercised
 31 415 577
 Figures in million
 2015
   1
   1
  Measurement
 (i) Assumptions applied at grant date for awards granted during the year
 SARs
 Performance
 shares
 Restricted
 shares
 Price at date of grant (SA rand per share):15 November 2013 allocation
        Risk-free interest rate:15 November 2013 allocation
        Expected volatility: *15 November 2013 allocation
        Expected dividend yield:15 November 2013 allocation
        Vesting period (from grant date)for all allocations
    In all cases, valuation date is the same as the allocation date, except for the 17 November 2014 allocation of performance shares with a valuation date of 2 June 2015.
  * The volatility is measured as an annualised 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.
 1 The 2010 and 2011 restricted shares vested in November 2013 and November 2014 respectively. Restricted shares that were not exercised, partially or fully, at that time
 remain restricted for a further three years, but were supplemented by a matching grant of restricted shares. All restricted shares are then only settled after the end of a further three year period.
  The fair value of equity instruments granted during the year was valued using the Monte Carlo simulation on the market-linked PS, Cox-Ross-Rubinstein binomial tree on the SARs and spot share price on grant date for the RS.
 F-55


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 32
 SHARE-BASED PAYMENTS
 EMPLOYEE SHARE-BASED PAYMENTS
 (b) Options granted under the 2006 share plan
 Measurement
 (ii) Fair values used as a basis to recognise share-based cost
 SARs
 Performance
 shares
 Restricted
 shares
  7.86
 11.19
 17.95
     (c) Options granted under the 2003 scheme
  Activity on share options
 Activity on share options granted but not yet exercised
 Number of
 options
 Weighted
 average
 option price
 (SA rand)
       For the year ended 30 JuneBalance at beginning of year
 614 476
 44.76
     (614 476)
 44.76
    Balance at end of year
 -
 
 -
    OTHER SHARE-BASED PAYMENTS
 Measurement
                   * The volatility was measured in relation to a comparable listed company's share price volatility.
 On 20 March 2013, Harmony signed transaction and funding agreements to give effect to an empowerment transaction to dispose of 30% of its Free State based Phoenix operation (Phoenix) to BEE shareholders, which includes a free-carry allocation of 5% to a community trust that has been created and is currently controlled by Harmony. The transaction closed on 25 June 2013, following the fulfilment of the last condition precedent. In terms of the agreements Phoenix was transferred to a newly incorporated subsidiary (PhoenixCo).
 The awards to the BEE partners have been accounted for as in-substance options as the BEE partners will only share in the upside, and not the downside of their equity interest in PhoenixCo until the date the financing provided by Harmony is fully repaid. On this date the options will be exercised. The award of the options to the BEE partners is accounted for by the group as an equity-settled share-based payment arrangement. The in-substance options carry no vesting conditions and the fair value of the options of R23 million (US$2.3 million) was expensed on the grant date, 25 June 2013.
  The share-based cost was calculated using the Monte Carlo simulation. The fair value of the option is the difference between the expected future enterprise value of PhoenixCo and the expected loan balances at redemption date, and the present value of the trickle dividend determined in accordance with the cash flow waterfall per the signed transaction and funding arrangements.
 2015
  A fifth of the options granted under the 2003 scheme are exercisable annually from the grant date with an expiry date of 10 years from the grant date. The offer price of these options equalled the closing market price of the underlying shares on the trading date immediately preceding the granting of options. The options are equity-settled.
 On resignation and retirement, share options which have vested may be taken up at the employee's election before the last day of service. On death, the deceased estate has a period of twelve months to exercise these options.
  F-56


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 33
 RELATED PARTIES
   2015
   101 303
  1 2
 
 203 243
  1
 
 24 718
  1
 
 3 096
   20 000
  1
 
 7 987
  1
 
 28 184
  
 1 The movement during the year relates to performance shares vested and retained.
 
 2 Purchased 60 000 shares on 28 May 2015 in the open market.
 
 * 2014 only includes shares purchased. Performance shares vested and retained are excluded.
    Figures in million
 2015
  Sales and services rendered to related partiesJoint operations
 1
  1
 
 -
  Total
 1
  Purchases and services acquired from related partiesAssociates
 2
  Outstanding balances due by related partiesAssociates1
 
 6
   -
  Total
 6
  
 1 Refer to note 19 for details relating to the loan to associate.
 34
 COMMITMENTS AND CONTINGENCIES
 COMMITMENTS AND GUARANTEES
 Figures in million
 2015
  Capital expenditure commitments
  11
   2
   21
  Total capital commitments
 34
   African Rainbow Minerals Limited (ARM) currently holds 14.6% of Harmony’s shares. Patrice Motsepe, André Wilkens, Joaquim Chissano and Frank Abbott, who are directors of Harmony, are also directors of ARM.
 The outstanding balances from the related parties are not secured. Refer to note 19 for detail on the items relating to the loans to associates and provisions raised against these loans as well as the terms and conditions that apply.
 None of the directors or major shareholders of Harmony or, to the knowledge of Harmony, their families, had an interest, directly or indirectly, in any transaction from 1 July 2012 or in any proposed transaction that has affected or will materially affect Harmony or its subsidiaries, 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, including any director (whether executive or otherwise) of the group.
   During 2014, the executive directors received remuneration of US$2.1 million, comprising of US$1.6 million for salaries, US$0.03 million for retirement contributions, US$0.4 million for bonuses and US$0.1 million from the exercising of share options. The non-executive directors received US$0.7 million in directors’ fees. The aggregate of remuneration received by executive management was US$5.0 million (including share options exercised).
 During 2015, the executive directors received remuneration of US$1.9 million, comprising of US$1.5 million for salaries, US$0.03 million for retirement contributions, US$0.3 million for bonuses and US$0.04 million from the exercising of share options. The non-executive directors received US$0.7 million in directors’ fees. The aggregate of remuneration received by executive management was US$3.0 million (including share options exercised).
 F-57


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 34
 COMMITMENTS AND CONTINGENCIES
 COMMITMENTS AND GUARANTEES
 Figures in million
 2015
   -
   -
  Total commitments for operating leases
 -
  Figures in million
 2015
  Guarantees1
  1
  2
 38
  Total guarantees
 39
  CONTINGENT LIABILITIES
 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
     1 Guarantees and suretyships of US$1.0 million and environmental guarantees of US$3.3 million relating to the Evander group, which are in the process of being replaced by
 Pan African or cancelled, have been excluded.
 2 At 30 June 2015, US$3.8 million (2014: US$3.1 million) has been pledged as collateral for environmental guarantees in favour of certain financial institutions. Refer to note 16.
   Contractual obligations in respect of mineral tenement leases amount to US$57.2 million (2014: US$58.3 million). This includes US$57.1 million (2014: US$58.2 million) for the MMJV.
 Contingencies will only realise when one or more future events occur or fail to occur. The exercise of significant judgement and estimates of the outcome of future events are required during the assessment of the impact of such contingencies.
 Litigation and other judicial proceedings as a rule raise difficult and complex legal issues and are subject to uncertainties and complexities including, but not limited to, the facts and circumstances of each particular case, issues regarding the jurisdiction in which the suit is brought and differences in applicable law. Upon resolution of any pending legal matter, the group may be forced to incur charges in excess of the presently established provisions and related insurance coverage. It is possible that the financial position, results of operations or cash flows of the group could be materially affected by the outcome of the litigation.
 On 18 April 2008, Harmony Gold Mining Company Limited was made aware that it had been named as a defendant in a lawsuit filed in the US District Court in the Southern District of New York on behalf of certain purchasers and sellers of Harmony’s American Depositary Receipts (ADRs) and options with regards to certain of its business practices. Harmony retained legal counsel.
 The company reached a mutually acceptable settlement with the plaintiff class and this settlement was found to be fair and reasonable and was approved by the United States District Court in November 2011. A single class member filed an appeal of the District Court’s order approving the settlement. That appeal resulted in the United States Court of Appeals for the Second Circuit affirming the decision of the District Court on more than one occasion. The objecting plaintiff requested that the United States Supreme Court review the decision of the Second Circuit. Following the denial of the request for review of the case by the Supreme Court in May 2014, the case has been concluded. The distribution of the settlement amount, held in escrow, to the plaintiff class of the lawsuit filed in the United States of America was completed during the 2015 financial year. From both legal and accounting perspectives, the matter is now concluded.
 On 3 March 2011, judgement was handed down in the Constitutional Court, in the case of Mr Thembekile Mankayi v AngloGold Ashanti Limited regarding litigation in terms of the Occupational Diseases in Mines and Works Act (ODIMWA). The judgement allows claimants, such as Mr Mankayi, to institute action against their current and former employers for damages suffered as a result of them contracting occupational diseases which result from their exposure to harmful quantities of dust whilst they were employed at a controlled mine as referred to in ODIMWA. In this regard, should anyone bring similar claims against Harmony in future, those claimants would need to prove that silicosis, as an example, was contracted whilst in the employ of the company and that it was contracted due to negligence on the company’s part to provide a safe and healthy working environment.   The link between the cause (negligence by the company in exposing the claimant to harmful quantities of dust whilst in its employ) and the effect (the silicosis) will be an essential part of any case.
 On 23 August 2012, Harmony and certain of its subsidiaries (Harmony group) were served with court papers in terms of which three former employees made application to the South Gauteng High Court to certify a class for purposes of instituting a class action against the Harmony group. In essence, the applicants want the court to declare them as suitable members to represent a class of current and former mineworkers for purposes of instituting a class action for certain relief and to obtain directions from the court as to what procedure to follow in pursuing the relief required against the Harmony group.
 On 8 January 2013, the Harmony group, alongside other gold mining companies operating in South Africa (collectively the respondents), was served with another application to certify two classes of persons representing a class of current and former mine workers who work or have worked on gold mines owned and/or controlled by the respondents and who allegedly contracted silicosis and/or other occupational lung diseases, and another class of dependents of mine workers who have died of silicosis and who worked on gold mines owned and/or controlled by the respondents. The Harmony group opposed both applications and instructed its attorneys to defend the application.
 F-58


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 34
 COMMITMENTS AND CONTINGENCIES
 CONTINGENT LIABILITIES
       On 1 December 2008, Harmony issued 3 364 675 Harmony shares to Rio Tinto Limited (Rio Tinto) for the purchase of Rio Tinto’s rights to the royalty agreement entered into prior to our acquisition of the Wafi deposits in PNG. The shares were valued at US$23 million on the transaction date. An additional US$10 million in cash will be payable when the decision to mine is made. Of this amount, Harmony is responsible for paying the first US$6 million, with the balance of US$4 million being borne equally by the joint operators.
 The group may have a potential exposure to rehabilitate groundwater and radiation that may exist where the group has and/or continues to operate. The group has initiated analytical assessments to identify, quantify and mitigate impacts if and when (or as and where) they arise. Numerous scientific, technical and legal studies are underway to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The group has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvement in some instances. 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. Should the group determine that any part of these contingencies require them being recorded and accounted for as liabilities, that is where they become estimable and probable, it could have material impact on the financial statements of the group.
 At 30 June 2015, the group was in the process of implementing water treatment facilities at Doornkop and at Kusasalethu. These treatment facilities will reduce our dependency on Rand Water and allow the mines to supply their own water.
 In terms of Free State operations, Harmony has taken the initiative to develop a comprehensive regional closure plan which based on scientific studies will determine any further exposure.
 Due to the interconnected nature of mining operations in South Africa, any proposed solution for potential flooding and potential decant risk posed by deep groundwater needs to be a combined one, supported by all the mines located in these goldfields. As a result, the Department of Mineral Resource and affected mining companies are involved in the development of a regional mine closure strategy. Harmony operations have conducted a number of specialist studies and the risk of surface decant due to rising groundwater levels has been obviated at the entire Free State region and Kalgold.  Therefore there is no contingency arising from these operations. Additional studies have been commissioned at Doornkop and Kusasalethu. In view of the limitation of current information for accurate estimation of a liability, no reliable estimate can be made for these operations.
 The individual Harmony mining operations have applied for the respective National Water Act, Section 21 Water Use Licenses (WUL) to the Department of Water and Sanitation (DWS). As part of the Water Use License Application (WULA) process for the respective operations, Harmony has requested certain exemptions (relevant to the respective mining operations) from GNR 704 of 4 June 1999, “Regulations on the use of water for mining and related activities aimed at the protection of water resources”. The respective WULA’s have subsequently not yet been approved by DWS. The WUL conditions for the respective operations are subsequently not yet known and the subsequent potential water resource impact liability as part of the mine rehabilitation and closure process (to which DWS is an important participant and decision maker) is uncertain.
 In terms of the sale agreements entered into with Rand Uranium, Harmony retained financial exposure relating to environmental disturbances and degradation caused by it before the effective date, in excess of US$6.2 million of potential claims. Rand Uranium is therefore liable for all claims up to US$6.2 million and retains legal liability. The likelihood of potential claims cannot be determined presently and no provision for any liability has been made in the financial statements.
 Legal proceedings commenced in December 2010 against the Hidden Valley mine in PNG over alleged damage to the Watut River (which runs adjacent to the Hidden Valley mine), alleged to have been caused by waste rock and overburden run-off from the mine. The damages sought by the plaintiffs were not specified. The defendants intend to defend the claims. No active steps have been taken by the plaintiffs in this proceeding for more than two years. It is not practicable to make any reasonable assessment of the prospects of the plaintiffs succeeding should they proceed with these claims, nor the potential liability of the defendants if the plaintiffs were to succeed. As a result, no provision has been recognised in the financial statements for this matter.
 Following receipt of the aforesaid application, the Harmony group was advised that there was a potential overlap between the application of 23 August 2012 and the application of 8 January 2013.  After deliberation between the respondents’ attorneys and the applicants’ attorneys, it was resolved that the applicants’ attorneys will consolidate the two applications, together with three other similar applications.  The applicants' attorneys delivered an amended application for consideration by the respondents. On 17 October 2013, the five certification applications were consolidated by order of court. It was agreed between the parties that the respondents have until 30 May 2014 to answer the allegations made in the consolidated class certification application, and to state reasons why a class or classes should not be certified.
 On 30 May 2014, the Harmony group served its answering affidavit to the consolidated class certification application.  On 15 September 2014, the applicants’ attorneys delivered their replying affidavit to the answering affidavit.  The applicants’ attorneys have also joined further applicants to the present proceedings and amended the relief sought against the gold mining companies on a number of occasions.
 On 12 December 2014, the Treatment Action Campaign and Sonke Gender Justice (both non-profit organisations) (applicants) brought a formal application to the consolidated class certification application to be admitted as amici curiae (i.e. friends of the court). On 28 August 2015, the applicants were admitted as amici curiae. However, at the certification application enrolled for hearing between 12 October 2015 and 23 October 2015, they may only present legal submissions as to whether a certification of a class action should be granted or not.
 On 3 May 2013, Harmony and one of its subsidiaries received a summons from Richard Spoor Attorneys on behalf of an employee. The plaintiff is claiming US$2.1 million in damages plus interest from Harmony and one of its subsidiaries, and another gold mining group of companies. The plaintiff alleges to have contracted silicosis with progressive massive fibrosis during the course of his employment. At this stage, and in the absence of a court decision on this matter, it is not yet certain as to whether the company will incur any costs (except legal fees) related to the above claim.
 Due to the limited information available on the above claim and potential other claims, and the uncertainty of the outcome of the consolidated class certification application, no costs estimation can as yet be made for the possible obligation.
 F-59


NOTES TO THE GROUP FINANCIAL STATEMENTS continued
 for the years ended 30 June 2015
 35
 SUBSEQUENT EVENTS
 (a)
 (b)
 36
 SEGMENT REPORT
 ACCOUNTING POLICY
 A reconciliation of the segment totals to the group financial statements has been included in note 37.
 Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The chief operating decision-maker has been identified as the executive committee.
 Harmony has signed a US$12.0 million guarantee for the ARM Broad Based Economic Empowerment (BBEE) Trust, a member of the African Rainbow Minerals (ARM) group. The guarantee is for additional security for the ARM BBEE Trust loan due to Nedbank Limited. The fair value of the guarantee is US$1.1 million at 30 September 2015.
 On 27 September 2015, 2 259 performance shares (ordinary shares) vested in the name of Graham Briggs. There were no further changes in the shares held by directors between 30 June 2015 and 23 October 2015.
 The group has one main economic 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 or open pit mine managed by a single general manager and management team.
 After applying the quantitative thresholds from IFRS 8, the reportable segments were determined as: Kusasalethu, Doornkop, Phakisa, Tshepong, Masimong, Target 1, Bambanani, Joel, Unisel, Target 3 and Hidden Valley. All other operating segments have been grouped together under all other surface operations.
 When assessing profitability, the CODM considers the revenue and production costs of each segment. The net of these amounts is the production profit or loss. Therefore, production profit has been disclosed in the segment report as the measure of profit or loss. The CODM also considers capital expenditure when assessing the overall economic sustainability of each segment. The CODM, however, does not consider depreciation or impairment and therefore these amounts have not been disclosed in the segment report.
 Segment assets consist of mining assets and mining assets under construction included under property, plant and equipment which can be attributed to the segment. Current and non-current group assets that are not allocated at a segment level form part of the reconciliation to total assets.
 F-60


NOTES TO THE GROUP FINANCIAL STATEMENTS continued
 for the years ended 30 June 2015
 36    SEGMENT REPORT continued
 2015
 2014
 2013
 2015
 2014
 2013
 2015
 2014
 2013
 2015
 2014
 2013
 2015
 2014
 2013
 2015
 2014
 2013
 2015
 2014
 2013
 Continuing operations
 South AfricaUndergroundKusasalethu
 169
   174
   ( 5)
   298
   40
   127 092
   1 001
    107
   95
   12
     184
   21
   85 618
   665
    124
   103
   21
   354
   35
   100 246
   674
    170
   141
   29
   331
   27
   137 540
   1 095
    98
   87
   11
   73
   15
   79 187
   739
    152
   104
   48
   229
   26
   122 944
   826
   3
 
 116
   62
   54
   68
   10
   93 495
   253
    91
   67
   24
   48
   16
   72 596
   607
    67
   60
   7
   49
   9
     54 495
   460
   4
 
 19
   15
   4
     44
   2
   15 529
   99
   SurfaceAll other surface operations
 117
    95
    22
    40
    4
    94 105
    11 488
   Total South Africa
 1 230
   1 003
    227
    1 718
    205
    982 847
    17 907
   InternationalHidden Valley
 118
   100
    18
    114
    11
    94 619
    2 012
   Total international
 118
    100
    18
    114
    11
    94 619
    2 012
   Total continuing operations
 1 348
    1 103
    245
    1 832
    216
    1 077 466
    19 919
   Discontinued operations
  -
    -
    -
    -
    -
    -
    -
    Total discontinued operations
 -
    -
    -
    -
    -
    -
    -
    Total operations
 1 348
   1 103
   245
   1 832
   216
   1 077 466
    19 919
   -
    -
    1 140
   1 348
   1 103
    2 972
    
 1 Capital expenditure for international operations excludes expenditure on Golpu of US$10 million (2014: US$1 million) (2013: US$61 million).
 
 2 Production statistics are unaudited.
 
 3 Includes Steyn 2 for the June 2014 amounts.
 
 4 Target 3 was placed on care and maintenance in October 2014.
 Reconciliation of the segment information to the consolidated income statements and balance sheets (refer to note 37)
 Tons milled 2
 
 30 June
 US$ million
 US$ million
 US$ million
 US$ million
 US$ million
 oz
 t'000
 Revenue
 30 June
 Production cost
 30 June
 Production profit/(loss)
 30 June
 Mining assets
 30 June
 Capital expenditure 1
 
 30 June
 Ounces produced 2
 
 30 June
 F-61


NOTES TO THE GROUP FINANCIAL STATEMENTS
 for the years ended 30 June 2015
 37
 Figures in million
 2015
   Revenue from:
  -
    Production costs from:
  -
    Reconciliation of production profit to consolidated loss before taxation
  1 348
     (1 103)
     245
     -
    245
     (542)
     (211)
     (5)
     1
     (9)
     (22)
     (18)
     (285)
     7
     (297)
     (33)
     (6)
     (23)
     1
     (42)
     (33)
     (433)
     (2)
     -
     1
     20
     (22)
    Loss before taxation
 (436)
    Reconciliation of total segment assets to consolidated assets includes the following:
 Non-current assets
  598
     73
     4
     196
     -
     -
     -
     3
     7
    Current assets
  106
     62
     2
     1
     88
    1 140
    RECONCILIATION OF SEGMENT INFORMATION TO CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEETS
  F-62