Edgar Filing: HARMONY GOLD MINING CO LTD

Page 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO

RULE 13a-16 OR 15d-16 UNDER THE SECURITIES

EXCHANGE ACT OF 1934

For 7 February 2011

Harmony Gold Mining Company

Limited

Randfontein Office Park

Corner Main Reef Road and Ward Avenue

Randfontein, 1759

South Africa

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-

F or Form 40-F.)

Form 20-F X Form 40-F

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.)

Yes No X

SHAREHOLDER INFORMATION

Issued ordinary share capital

429 506 618

at 31 December 2010

Market capitalisation

At 31 December 2010 (ZARm)

35 649

At 31 December 2010 (US$m)

5 412

Harmony ordinary share
and ADR prices

12 month high (1 January 2010 to

31 December 2010) for ordinary shares R88.02

12 month low (1 January 2010 to

31 December 2010) for ordinary shares R68.65

12 month high (1 January 2010 to

31 December 2010) for ADRs

US$12.75

12 month low (1 January 2010 to

31 December 2010) for ADRs

US$8.79

Free float

Ordinary shares

100%

ADR ratio

1:1

JSE Limited

HAR

Range for quarter

(1 October 2010 to

R76.18 –

31 December 2010 – closing prices)

R88.02

Average volume for the

quarter (1 October 2010 to

1 178 082

31 December 2010)

shares per day

New York Stock
Exchange, Inc.

HMY

Range for quarter

(1 October 2010 to

US$10.75 –

31 December 2010 – closing prices)

US$12.75

Average volume for the

quarter (1 October 2010 to

1 961 517

31 December 2010)

shares per day

Key features

Closed non-profitable operations

Growth projects in South Africa

• increased production

• quality ounces

Majority of capital expenditure spent

Hidden Valley a great mine

• gold and silver recoveries improved

• commissioned and building-up

Wafi/Golpu growing quarter on quarter

Experienced and focused management team

Financial summary for the second quarter and six months ended
31 December 2010

Quarter

6 months

Year-on-

December

September

Q-on-Q

December

year

2010

variance

2010

2009

variance

Gold produced

(1)

– kg

10 055

10 471

(4)

20 526

23 283

(12)

– oz

323 275

336 650

(4)

659 925

748 555

(12)

Cash costs

– R/kg

216 595

228 658

222 787

190 172

(17)

–

US$/oz

979

974

(1)

965

775

(25)

Gold sold

– kg

10 046

10 869

(8)

20 915

23 111

(10)

– oz

322 986

349 447

(8)

672 433

743 034

(10)

Gold price

– R/kg

303 354

287 401

295 069

251 968

received

– US$/oz

1 371

1 224

1 294

1 028

Cash operating

– R million

867

652

1 519

1 351

profit

– US$ million

126

215

178

Basic

– SAc/s

>100

earnings –

USc/s 10 3

>100 13 3

>100

per share*

Headline

– Rm

294

141

>100

435

158

>100

profit* –

US$m 43

>100

Headline

– SAc/s

>100

101

>100

earnings –

USc/s 10 5

100 14 5

>100

per share*

Exchange rate

– R/US$

6.88

7.31

(6)

7.09

7.63

(7)

* Reported amounts include continuing operations only

(1) Production statistics for Steyn 2 and Target 3 have been included. These mines are in a build-up phase and
revenue and costs are currently capitalised. Revenue capitalised includes: Quarter ending Dec 2010 Steyn 2, 18
kg (September 2010 – 31 kg) and Target 3, 170 kg (September 2010 – 111 kg), 6 months ending Dec 2010 Steyn
2, 49 kg (December 2009 – Nil) and Target 3, 281 kg (December 2009 – Nil).

Harmony’s Annual Report, Notice of Annual General Meeting, its Sustainable Development Report and its annual report filed on a Form 20F with the United States’ Securities and Exchange Commission for the year ended 30 June 2010 are available on our website (www.harmony.co.za).

Incorporated in the Republic of South Africa

Registration number 1950/038232/06

(“Harmony” or “Company”)

Results for the second quarter and six months ended 31 December 2010

JSE Share code: HAR | NYSE Share code: HMY | ISIN: ZAE 000015228

Results for the second quarter and six months
ended 31 December 2010

Forward-looking statements

This quarterly report contains forward-looking
statements within the meaning of the United
States Private Securities Litigation Reform Act
of 1995 with respect to Harmony’s financial
condition, results of operations, business
strategies, operating efficiencies, competitive
positions, growth opportunities for existing
services, plans and objectives of management,
markets for stock and other matters. Statements
in this quarter that are not historical facts are
“forward-looking statements” for the purpose of
the safe harbour provided by Section 21E of the
U.S. Securities Exchange Act of 1934, as amended,
and Section 27A of the U.S. Securities Act of
1933, as amended. Forward-looking statements
are statements that are not historical facts.
These statements include financial projections
and estimates and their underlying assumptions,
statements regarding plans, objectives and
expectations with respect to future operations,
products and services, and statements regarding
future performance. Forward-looking statements
are generally identified by the words “expect”,
“anticipates”, “believes”, “intends”, “estimates”
and similar expressions. These statements are
only predictions. All forward-looking statements
involve a number of risks, uncertainties and
other factors and we cannot assure you that
such statements will prove to be correct. Risks,
uncertainties and other factors could cause actual
events or results to differ from those expressed or
implied by the forward-looking statements.

These forward-looking statements, including,
among others, those relating to the future
business prospects, revenues and income of
Harmony, wherever they may occur in this
quarterly report and the exhibits to this quarterly
report, are necessarily estimates reflecting the
best judgment of the senior management of
Harmony and involve a number of risks and
uncertainties that could cause actual results to
differ materially from those suggested by the
forward-looking statements. As a consequence,
these forward-looking statements should be
considered in light of various important factors,
including those set forth in this quarterly report.
Important factors that could cause actual results
to differ materially from estimates or projections
contained in the forward looking statements
include, without limitation:

overall economic and business conditions in
South Africa and elsewhere;

the ability to achieve anticipated efficiencies
and other cost savings in connection with past
and future acquisitions;

increases/decreases in the market price of
gold;

the occurrence of hazards associated with
underground and surface gold mining;

the occurrence of labour disruptions

availability, terms and deployment of capital;

changes in Government regulation, particularly
mining rights and environmental regulations;

fluctuations in exchange rates;

currency devaluations and other macro-
economic monetary policies; and

socio-economic instability in South Africa and
regionally.

Contents

Page

Chief Executive’s Review

Safety and health

Financial overview

Operational overview

– Group operational results

– Build-up and steady operations

– Doornkop

– Kusasalethu

– Phakisa

– Masimong

– Target 1

– Target 3

– Tshepong

– Hidden Valley

– Other underground South African operations

– Bambanani

– Steyn 2

– Evander

– Joel

– Virginia operations

– Total South African surface operations

– Kalgold

– Phoenix

– Surface dumps

Development

Exploration

Operating results (Rand/Metric) (US$/Imperial)

Condensed consolidated income statement (Rand)

Condensed consolidated statement of other comprehensive income (Rand)

Condensed consolidated balance sheet (Rand)

Condensed consolidated statement of changes in equity (Rand)

Condensed consolidated cash flow statement (Rand)

Notes to the condensed consolidated financial statements

Segment report (Rand/Metric)

Operating results (US$/Imperial)

Condensed consolidated income statement (US$)

Condensed consolidated statement of other comprehensive income (US$)

Condensed consolidated balance sheet (US$)

Condensed consolidated statement of changes in equity (US$)

Condensed consolidated cash flow statement (US$)

Segment report (US$/Imperial)

Development results – metric and imperial

Contact details

Chief Executive’s Review

Overview

During the course of the second quarter of financial year 2011 we

continued to see the benefits of the numerous management initiatives

coming through, with higher production and lower costs evident from

our growth projects, namely Doornkop, Phakisa and Hidden Valley.

It was particularly pleasing to see good progress in our Papua New

Guinean operations with improved production at Hidden Valley and

positive developments at Wafi-Golpu. However, we also faced certain

operational challenges, such as the unplanned production stoppage

at Kusasalethu during the quarter. The necessary measures to rectify

this issue are implemented and we are confident the operation will

meet its targets next quarter. Throughout the company our operational

management teams remain focused and as such we are confident

about meeting our long term production targets.

Safety

It is with deep regret we report that four of our colleagues died in

mining-related incidents during the quarter. They were Jackson

Morena (a rigger at Kusasalethu), Msiphani Mashwama (member of

the stope team) and Lehlohonolo Nchaka (rock drill operator), both

from Bambanani, and Petrose Rapeane (tramming supervisor at

Tshepong). We extend our deepest condolences to their families,

friends and colleagues.

Safety is the primary priority for every manager at Harmony and we

share a common vision with the union leadership with regard to safety

in the workplace. Progress on this front can only be addressed through

a co-operative approach that ensures that the right environment from a

systems, planning, communication and training perspective is in place,

combined with an acceptance of joint responsibility by management

and employees for our actions. It is important too that such an

environment empowers people; management, supervisors, workers

and union representatives to stop work and withdraw when they feel

it is unsafe, or prevent others from acting in an unsafe way. During

the past quarter Harmony restructured its central safety function by

transferring more senior and experienced personnel to assist and

advise operational teams. Our continued focus on safety has resulted

in an improved underlying safety performance (see page 5).

Gold market

In Rand per kilogram terms, the received gold price increased by

6% from R287 401/kg in the previous quarter to R303 354/kg in the

current quarter. Over the course of calendar year 2010, the gold price

in dollar terms increased by 29%. The strength of the Rand continues

to place pressure on the R/kg price which, in turn, continues to place

further pressure on gold miners whose costs are in Rand. We feel

the continued investment demand for gold will be the critical factor

supporting the gold price in 2011 and believe that even higher gold

prices may be achieved this year.

Operating performance

Production at Doornkop, Phakisa and Hidden Valley improved

substantially, by 19%, 34% and 23%, respectively. However, overall

total gold production for the past quarter decreased by 4% quarter

on quarter from 10 471kg to 10 055kg, mainly as a result of safety

stoppages at Bambanani and Kusasalethu. While volumes were 8%

lower than the previous quarter at 4 675 000t, the average yield was

4% higher at 2.11g/t. Underground gold production was 5% lower at

8 273kg, as volumes were 4% lower at 1 759 000t and the underground

grade declined by 2% to 4.6g/t.

Both Tshepong and Masimong showed a steady production

performance, with Masimong still the lowest cost producer at

R168 907/kg. Target 3 is back on track, with a 57% improvement in

tonnes mined, and Joel is also back in production. Following the

closure of Merriespruit 1, the Virginia operations, now comprising

solely of Unisel, produced net free cash of R43 million (the Virginia

operations recorded a loss of R36 million in the previous quarter),

validating the decision to close the loss-making shafts.

The gold production at Hidden Valley increased by 23% to 53 169oz

and silver production increased by 44% to 382 655oz quarter on

quarter (50% attributable to Harmony). Hidden Valley is a high value

asset for Harmony and it is particularly pleasing to see the improving

results after some commissioning problems.

Countering these production improvements was Evander 8, which

experienced a drop in face grade causing gold production to decrease

by 6%. Kalgold’s grade and volume was lower quarter on quarter and

gold production decreased by 8%. Bambanani’s volume was down by

19%, with grade only increasing by 3%. The Steyn 2 production plan

was revised and the major focus will now be to get the shaft pillar into

production by August 2011.

The rock/ventilation shaft accident which occurred in October 2010 at

Kusasalethu restricted hoisting and was the main contributor to the

group’s overall lower production. The shaft is now back to hoisting

capacity and the underground accumulations of the December 2010

quarter will be rectified.

Financial performance

The Rand per kilogram unit cost for the December 2010

quarter decreased by 5% quarter on quarter to R216 595/kg from

R228 658/kg. This is mainly attributable to the decrease in cash

operating costs, which decreased by R225 million (10%) quarter on

quarter. The primary factors for the decrease were the lower electricity

(winter tariffs of R147 million) and labour costs.

In Rand per kilogram terms, the gold price received increased by 6%

from R287 401/kg in the September 2010 quarter to R303 354/kg in the

current quarter. A decrease in the gold sold for the December 2010

quarter of 823kg (8%) to 10 046 kilograms resulted in a drop in revenue

of 3% compared to the previous quarter.

Capital expenditure increased by R88 million (12%) to R835 million in the

quarter under review compared with R747 million in September 2010

quarter, in line with the company’s mine plans.

Operating profit for the quarter increased by R215 million (33%) to

R867 million, compared with R652 million in the September 2010 quarter.

Wafi/Golpu

The Golpu resource continues to expand to the north as drilling

continues to define further mineralisation. A significant intersection

of 595m @ 2.03% copper and 1.65g/t gold (5.0g/t gold equivalent)

Results for the second quarter and six months
ended 31 December 2010

has been reported in WR363. The drilling campaign this quarter

included holes to gain metallurgical samples of Wafi and geotechnical

information for the Watut decline. The pre-feasibility study technical

work packages have been allocated to various consultants and is

progressing well.

Due to the continuing robustness of the Golpu resource, the study group

is considering upgrading early works to accommodate likely operating

scenarios, including the construction of twin declines and purchase

of land for early infrastructure. This will be assessed by management

and, if considered appropriate, will be submitted for board approval.

Recent exploration has produced better than expected results and we

are very pleased with the progress here.

Looking ahead

We remain confident that we will reach our long term targets and our

focus is to increase production to 2Moz of gold by FY13, with costs

per tonne milled in the lowest quartile of South African producers.

The company has turned the corner, with the closure of unprofitable

operations, our longer-life lower cost operations are profitable

and sustainable. With the closure of some shafts and unplanned

production setbacks during the first six months of financial year 2011,

production for the financial year 2011 will most likely be between

1.45Moz and 1.5Moz.

Harmony is well positioned to reap the benefits of a number of the

initiatives we have implemented over the last three years aimed at

optimising the asset portfolio and increasing operational efficiency.

We will continue to strive for an improved safety performance and

as ever, our employees have the right to withdraw from unsafe

areas. Overall, we have seen improved safety figures and we hope to

continue this trend.

Given the expertise of our operational management teams, I feel

confident in our ability to clear any hurdles in reaching our goal of

being a sustainable low cost high quality producer.

Graham Briggs

Chief Executive Officer

Safety and health

Safety

Our approach to safety is comprehensive and includes training,

auditing, communication, specific management interventions and

programmes and on-going campaigns. There is not a safety-related

event or issue that is not considered or addressed in a co-operative

way on-mine between unions and management, from the introduction

of new standards, to training needs, to investigations into accidents –

and that is the way it should be. We are in this together and together

our safety target can be reached. Our number one safety rule – that

every employee has the right to withdraw from an unsafe area –

stands and is non-negotiable.

Tragically, four fatalities occurred in three incidents at the South African

operations during the December 2010 quarter.

Harmony achieved a single digit figure in respect of its Lost Time Injury

Frequency Rate (LTIFR) for the ninth quarter in a row. For the year

to date, the LTIFR (per million hours worked) improved by 3% when

compared to the actual figure for the previous year (from 7.73 to 7.47)

and by 15% quarter on quarter (from 8.06 to 6.88).

The Reportable Injury Frequency Rate (RIFR) (per million hours worked)

to date regressed by 6% when compared to the actual figure for the

previous year (from 4.19 to 4.43) but improved by 15% quarter on

quarter (from 4.78 to 4.08).

The Fatal Injury Frequency Rate (FIFR) to date rate rose by 5% when

compared to the actual figure for the previous year (from 0.21 to 0.22),

but improved by 33% quarter on quarter (from 0.27 to 0.18).

Safety achievements for the quarter included:

Total Harmony surface and

underground operations:

1 000 000 fatality free shifts

South African surface and

underground operations:

1 000 000 fatality free shifts

South African surface operations:

2 000 000 fatality free shifts

Kusasalethu, Doornkop,

Evander and Kalgold:

2 000 000 fatality free shifts

Masimong:

1 000 000 fatality free shifts

Evander 8:

500 000 fatality free shifts

Unisel and Merriespruit 1:

500 000 fatality free shifts

Doornkop:

500 000 fatality free shifts.

The following operations completed the December 2010 quarter

without an injury:

• Masimong 4

• Phoenix Plant

• Target Plant

• Harmony 1 Plant

• Free State Commercial Services and Transport

• Randfontein Commercial Services and Transport

• Evander Workshops

• Evander Services

• Randfontein Surface Operations

• Merriespruit 3

The following operations completed two consecutive quarters without

an injury:

• Phoenix Plant

• Target Plant

• Free State Commercial Services and Transport

• Randfontein Commercial Services and Transport

• Evander Workshops

• Evander Services

Health

During the quarter our pro-active approach to the health and wellness

of our employees continued. Our objective remains to improve health

management programmes and effectively utilise clinical information.

This includes the review of policies, procedures, and processes as

well as training, on an on-going basis. These efforts have resulted in

improved health and a better quality of life for our employees.

See our Sustainable Development Report for more details on our

website www.harmony.co.za.

Results for the second quarter and six months
ended 31 December 2010

Financial overview

Cash operating profit increased by 33% to R867 million in the December

2010 quarter. This was mainly due to a decrease in production cost of

R225 million as a result of lower electricity tariffs and restructuring

efforts. This decrease was offset by a decrease in revenue, as a result

of a 4% lower gold production, which resulted in lower gold sales.

Earnings per share

Basic earnings per share increased from 24 SA cents to 69 SA cents.

Similarly headline earnings per share increased from 33 SA cents to

earnings of 69 SA cents.

Revenue

Revenue decreased from R3 083 million to R2 990 million as a result of

the lower gold production. This decrease was offset by an increase in

the Rand gold price received from R287 401/kg to R303 354/kg.

Cost of sales

Cost of sales decreased from R2 995 million to R2 506 million in the

December 2010 quarter. This was due to the decrease of R225 million

in production costs and insurance credits to the value of R179 million

following the unwinding of the previous insurance scheme.

Other income/expenses

Other income amounted to R6 million in the December 2010 quarter,

compared to an expense of R54 million in the September 2010 quarter,

which included R47 million foreign exchange losses from other

reserves on the liquidation of foreign subsidiaries.

Gain on financial instruments

The net gain on financial instruments amounted to R78 million in

the December 2010 quarter, which was an increase in fair value of

the Nedbank Equity Linked Deposits held by the Environmental

Trusts. In the September 2010 quarter this amount was R311 million,

which comprised mainly of the revaluation of the Freegold option by

R273 million following the conclusion of the sales agreement to sell the

option to Wits Gold.

Capital expenditure

Total capital expenditure increased by 12% to R835 million in the

December 2010 quarter with R750 million spent in South Africa and

R85 million in PNG.

Borrowings

During the quarter an additional R750 million funding facility was

arranged with Nedbank Limited on similar terms to the existing facility.

Of this, R500 million was drawn down while R90 million was repaid on

the existing facility. The undrawn facility at balance sheet date was

R550 million.

Operational overview

Group operational results

December

September

Indicator Units

2010

variance

Tonnes (’000)

4 675

5 098

(8)

Grade (g/t) 2.11 2.03 4

Gold produced

(kg)

10 055

10 471

(4)

Gold sold

(kg)

10 046

10 869

(8)

Cash operating costs (R/kg)

216 595

228 658

Operating profit

(R’000) 867 489

651 902

Quarter on quarter cash operating profit increased by 33% to

R867 million, mainly as a result of production trends moving in the right

direction at our build-up operations and a higher gold price received.

Gold production declined by 4% to 10 055kg, with volumes 8% lower at

4 675 000 tonnes and steady grade at 2.11g/t.

The decline in total cash operating costs was pleasing at

R216 595/kg compared to R228 658/kg in the previous quarter, mainly

due to restructuring efforts and lower electricity tariffs.

Build-up and steady operations

Doornkop

December

September

Indicator Units

2010

variance

Tonnes (’000) 171 140 22

Grade (g/t) 3.76 3.86 (3)

Gold produced

(kg) 643 541

Cash operating costs (R/kg)

229 894

249 294

Operating profit

(R’000)

44 938

20 502

>100

Tonnes milled improved by 22% quarter on quarter. This improvement

was driven by higher volumes mined at both the Kimberley Reef and the

South Reef. The improvement on the Kimberley Reef can be attributed

to the improved availability of trackless equipment and the arrival of a

new fleet of equipment. The South Reef improvement was driven by a

22% improvement in the square metres mined. On the South Reef all

12 additional stoping crews transferred from Merriespruit 1 assisted

with higher production.

Gold production increased by 19% to 643kg this quarter, mainly due to

the 12% increase in reef square metres mined and a very high mine

call factor (MCF). The MCF increased from 86% to 94% quarter on

quarter.

Cash cost increased by 10% to R148 million compared with the

previous quarter’s figure of R135 million, due to additional labour being

employed. Higher production has offset this cost resulting in unit cost

improving by 8% to R229 894/kg.

Kusasalethu

December

September

Indicator Units

2010

variance

Tonnes (’000)

228

269

(15)

Grade (g/t)

4.59

5.62

(18)

Gold produced

(kg)

1 046

1 513

(31)

Cash operating costs

(R/kg)

274 201

225 164

(22)

Operating profit

(R’000)

40 192

88 758

(55)

Planned build-up at Kusasalethu was hampered by a fatal accident

that caused damage to the hoisting shaft and restricted hoisting of ore

to the surface. As a result, production and tonnes milled decreased

by 31% and 15% respectively and recovery grade decreased by

18% at 4.59g/t.

The R/kg unit cost increased by 22% quarter on quarter due to lower

kilograms produced when compared to the previous quarter.

The mechanical construction work on the refrigeration plants was

delayed due to the shaft accident and will be completed by the

end of March 2011. Sinking has progressed 38m down to 113 level

from 109 level although this was also delayed as a result of the shaft

accident. The turbine on 92 level’s mechanical installation will be

completed end of February 2011.

Phakisa

December

September

Indicator Units

2010

variance

Tonnes (’000)

107

Grade (g/t)

4.72

4.38

Gold produced

(kg)

505

377

Cash operating costs

(R/kg)

221 491

296 520

Operating profit

(R’000)

43 769

320

>100

An improvement of 40% in development metres quarter on quarter,

resulted in higher tonnes mined at 107 000 tonnes, compared to

86 000 tonnes in the previous quarter. Gold production increased by

34% to 505kg and grade increased by 8% to 4.72.

Higher production resulted in operating profit increasing substantially

to R44 million for the quarter.

Phakisa’s ice plants achieved a new record of 1 763 tonnes of ice per

day during the quarter, resulting in lower water temperatures, which

improved ventilation as well as productivity at this operation.

Masimong

December

September

Indicator Units

2010

variance

Tonnes (’000)

219

243

(10)

Grade (g/t)

5.26

5.20

Gold produced

(kg)

1 151

1 263

(9)

Cash operating costs

(R/kg)

168 907

161 372

(5)

Operating profit

(R’000)

160 961

172 532

(7)

Masimong remains the lowest R/kg producer in the company at

R168 907/kg. Tonnes mined decreased by 10%, despite an increase of

13% in square metres mined, due to an underground lock-up of tonnes.

A ventilation change over process and unwarranted stoppages by the

Department of Mineral Resources resulted in the lock-up. The whole

ventilation circuit had to be changed, as it was originally done through

a booster fan system. The process was completed within three days

and improved ventilation conditions are already evident.

A decrease in production of 9% to 1 151kg, resulted in slightly higher

cash operating costs at R168 907/kg. Recovery grades increased

to 5.26 g/t.

Target 1

December

September

Indicator Units

2010

variance

Tonnes (’000)

196

205

(4)

Grade (g/t)

4.41

4.08

Gold produced

(kg)

865

836

Cash operating costs

(R/kg)

191 083

215 050

Operating profit

(R’000)

98 380

54 702

Gold production increased by 4%, a result of an 8% improvement in

grade to 4.41g/t from 4.08g/t the previous quarter, despite a 4% decline

in tonnage quarter on quarter. The improved grade was a result of the

higher grade ore mined in the 272 EA sub-level pillar and the reduced

incidence of development waste in the system.

Costs were 8% down on the previous quarter, mainly owing to reduced

electricity, labour and rehabilitation costs. Much of the rehabilitation

work on the infrastructure has now been done.

Target 3

December

September

Indicator Units

2010

variance

Gold produced

(kg)

170

111

Build-up of the shaft was an impressive improvement of 57% to

55 000 tonnes and 170 kilograms during the quarter. This despite the

extensive infrastructure improvements in the shafts and one fridge

plant which is only due to be commissioned in the March 2011 quarter.

Results for the second quarter and six months
ended 31 December 2010

Tshepong

December

September

Indicator Units

2010

variance

Tonnes (’000)

345

338

Grade (g/t)

4.72

4.99

(5)

Gold produced

(kg)

1 628

1 688

(4)

Cash operating costs

(R/kg)

176 052

175 322

–

Operating profit

(R’000)

212 948

206 436

Tshepong’s performance remains steady, with a 2% increase in tonnes

milled to 345 000 tonnes, whilst the grade and gold production declined

by 5% and 4% respectively. Tshepong’s grade remains sensitive to

stoping width, which is rigorously controlled by the under-cut mining

method used at this mine.

Total cash operating costs in R/kg terms are the second lowest in

the group at R176 052/kg and remained steady quarter on quarter.

Operating profit increased by 3% from the previous quarter mainly due

a higher gold price.

Hidden Valley (held in Morobe Mining Joint Venture – 50% of

attributable production reflected)

December

September

Indicator Units

2010

variance

Tonnes (’000)

425

427

(1)

Grade (g/t)

1.95

1.57

Gold produced

(kg)

827

671

Cash operating costs

(R/kg)

195 605

244 720

Operating profit

(R’000)

99 265

18 946

>100

Hidden Valley had an excellent quarter, with an increase in gold

production of 23% to 827kg, due to higher gold feed grades

and improved recoveries. Silver production increased by 44% at

191 327 ounces quarter on quarter, as a result of higher recoveries.

The average plant head grade for the quarter was 2.21 g/t Au, while

the silver grade was 26.6 g/t Ag, with unit costs lower at R195 605/kg

(US$884/oz), in comparison to R244 720/kg ($1 042/oz) in the previous

quarter.

Plant throughput was maintained at 850 000 tonnes, mainly due to mill

constraints, which will be resolved once a higher proportion of primary

ore is delivered to the processing plant. Significant increases in gold

and silver recovery rates, reflect ongoing improvements in both the

flotation and CIL (carbon in leach) circuit.

Cash operating cost, decreased by 20% to R195 605/kg (US$/884/oz).

An operating profit of R99 million was reported for this quarter.

Other underground South African operations

Bambanani

December

September

Indicator Units

2010

variance

Tonnes (’000)

104

129

(19)

Grade (g/t)

7.27

7.06

Gold produced

(kg)

756

911

(17)

Cash operating costs

(R/kg)

260 147

245 750

(6)

Operating profit

(R’000)

34 468

46 485

(26)

Bambanani’s tonnage and gold production declined by 19% and 17%

respectively, largely as a result of the seismic event that occurred

in October 2010. After the seismic event, a full risk assessment was

undertaken and it was decided to stop mining four pillars that posed a

safety risk, which will reduce Bambanani’s tonnage profile.

The grade improved by 3% to 7.27g/t from 7.06g/t in the previous

quarter. Better grades are expected in the next quarter, following the

implementation of a number of improvement initiatives.

Cash operating costs increased by 6% to R260 147/kg, mainly due to

the decline in gold production, offset by lower electricity tariffs. The

lower gold production had a negative effect on operating profit, which

declined by 26% to R34 million.

Steyn 2

December

September

Indicator Units

2010

variance

Gold produced

(kg)

(42)

During the quarter it was decided to abandon the pillars in the main

shaft for safety reasons. In addition, given the deterioration in the rock

hoisting decline over time, it was decided to abandon the decline too

and create another route to Bambanani for rock hoisting. This was

completed towards the end of December 2010.

As a result of these decisions, the original plan for the build-up of

production at Steyn 2 will be amended. The major focus will now be on

bringing the shaft pillar into production in the 2011/12 financial year.

A small amount of mining will continue in the decline section during

this time.

Evander

December

September

Indicator Units

2010

variance

Tonnes (’000)

139

140

(1)

Grade (g/t)

3.72

3.94

(6)

Gold produced

(kg)

517

552

(6)

Cash operating costs

(R/kg)

300 698

290 188

(4)

Operating profit/(loss)

(R’000)

1 330

(2 192)

>100

Tonnes milled and kilograms produced decreased quarter on quarter

by 1% and 6% respectively. Environmental conditions improved, with

the chilled water reducing the heat load in the decline section.

Grade decreased by 6% from 3.94g/t to 3.72g/t. The lower recovery

grade and tonnes locked up underground resulted in a decrease

in gold produced of 35kg quarter on quarter, while the face grade

remained steady.

Total cash cost decreased by 3% quarter on quarter mainly as a result

of lower summer electricity tariffs and reduced labour costs following

the restructuring. R/kg costs increased by 4%, due to lower gold

production.

Joel

December

September

Indicator Units

2010

variance

Tonnes (’000)

128

>100

Grade (g/t)

3.19

3.70

(14)

Gold produced

(kg)

408

148

>100

Cash operating costs

(R/kg)

276 787

588 101

Operating (loss)/profit

(R’000)

2 127

(31 153)

>100

Joel resumed production in mid-September 2010, on completion of

the repairs to the North shaft bottom. As a result volumes produced

improved dramatically to 128 000 tonnes, with gold production higher

at 408kg.

Grade was down by 14% at 3.19g/t compared to 3.70g/t the previous

quarter. This was influenced by the lift shaft as the higher grades on

129 level cannot be mined until the lift shaft has been commissioned.

Equipping of the lift shaft is progressing well and will be completed

during the forthcoming quarter. A feasibility study on the possible

mining of 137 level and testing the upside potential of 145 level is well

underway and the final feasibility presentation is planned for the June

2011 quarter.

Unit costs improved significantly, up 53% to R276 787/kg compared to

R588 101/kg the previous quarter.

Virginia operations

December

September

Indicator Units

2010

variance

Tonnes milled

(’000)

122

244

(50)

Grade (g/t)

4.64

3.11

Gold produced

(kg)

566

760

(26)

Cash operating costs

(R/kg)

197 512

300 593

Operating (loss)/profit

(R’000)

51 426

(2 136)

>100

The past quarter reflected Unisel’s production and a small portion of

Merriespruit 1 prior to its closure. Grade improved by 49% to 4.64g/t

from 3.11g/t in the previous quarter. This resulted in impressive

financial results. The Virginia operations milled 50% less tonnes and

produced 26% less gold during this quarter, following the closure of

Merriespruit 1, but recorded a cash operating profit of R51 million this

quarter, compared to a R2 million loss in the previous quarter. The R/kg

costs improved by 34% to R197 512/kg from R300 593/kg the previous

quarter.

Total South African surface operations

December

September

Indicator Units

2010

variance

Tonnes (’000)

2 491

2 837

(12)

Grade (g/t) 0.38 0.38 –

Gold produced

(kg) 955

069

(11)

Gold sold

(kg) 898

103

(19)

Cash operating costs (R/kg)

215 422

216 260

–

Operating profit

(R’000)

77 685

78 702

(1)

Tonnes mined decreased by 12% and gold produced by 11%, while

grade remained stable at 0.38g/t. The cash operating cost in Rand per

kilogram remained steady.

Kalgold

December

September

Indicator Units

2010

variance

Tonnes (’000)

413

433

(5)

Grade (g/t)

0.82

0.85

(4)

Gold produced

(kg)

339

368

(8)

Cash operating costs

(R/kg)

246 475

238 840

(3)

Operating profit

(R’000)

16 976

26 036

(35)

Production volumes milled and gold production declined by 5% and 8%

respectively. Milling was adversely affected by breakdowns on the mill

girth gears in November 2011, which have been repaired.

Cash cost decreased by 5% to R84 million, while unit cash costs in

Rand increased by 3%. The decrease in costs was mainly a result of a

reduction in plant costs

in lieu

of improved control over engineering

consumables and lower summer rates for electricity.

Results for the second quarter and six months
ended 31 December 2010

Phoenix (tailings)

December

September

Indicator Units

2010

variance

Tonnes

(’000)

1 266

1 546

(18)

Grade (g/t)

0.11

–

Gold produced

(kg)

138

165

(16)

Cash operating costs

(R/kg)

241 659

231 606

(4)

Operating profit

(R’000)

8 728

9 133

(4)

Both tonnes and kilograms produced by the Phoenix tailings

decreased by 18% and 16% respectively. This decrease was

attributable to breakdowns in December 2010, due to excessive rain

and pump failures.

Total cash operating cost decreased by 13% from the previous quarter

and the operating profit is down by 4%.

Surface dumps

December

September

Indicator Units

2010

variance

Tonnes (’000)

812

858

(5)

Grade (g/t)

0.59

0.62

(5)

Gold produced

(kg)

478

536

(11)

Gold sold

(kg)

478

536

(11)

Cash operating costs

(R/kg)

185 824

196 034

Operating profit

(R’000)

51 981

43 533

Tonnes milled and kilograms produced decreased by 5% and 11%

respectively, mainly due to mill failures at Joel plant in November and

December 2010. Plant capacity was well utilised and during the break

period, increased waste rock dump (WRD) material was delivered to

the plants.

Grade at 0.59g/t was 5% lower than in the previous quarter, due to

grades at the Joel and Freddies waste rock dumps being lower than

planned – influencing the overall grade from surface sources. The

Bambanani waste rock dump also had slightly lower grades. The

grade of material sourced from the plant clean-up remained high for

the quarter.

Costs were well controlled and in line with the lower tonnages

processed, assisted by the reduction in electricity tariffs.

Development

Note: The ore reserve block grades reflect the grades of the blocks in the life-of-mine plans for the various operations. These blocks are to a large degree the blocks

above a certain cut-off grade that has been targeted for mining. The development grades are those as sampled in the ongoing on-reef development at the
operations and no selectivity has been applied from a grade point of view.

Bambanani

In the southern part of the mine, development grades are in line with
expected grades. In line with expectations, high grades averaging
3.855cmg/t were sampled in the wide raise development in the shaft
pillar area.

Doornkop

In general, South Reef development grades at Doornkop were better
than expected owing to the presence of carbon in some areas and
because of the intersection of thicker reef packages in certain areas.
No on-reef development was planned for the Kimberly Reef.

Evander

Almost all on-reef development is now concentrated on the Kinross
payshoot in the decline area. The development grade also improved
quarter on quarter, in line with expectations.

Joel

Development grades were in line with expectations and remain good
in the winzes being developed from 121 to 129 levels.

Kusasalethu

On-reef development returned better-than-expected grades in both
the old and new mine areas. In the new mine, some very good grades,
above 2.500cmg/t were encountered in areas where the Elsburg reef
sub-crops against the VCR.

Masimong

The Basal reef development values were maintained in the region of
the reserve grade while there was a drop in B reef grades since some
of the wide raises advanced into areas that are outside of the main
B reef channels.

Phakisa

While being lower than the ore reserve grade, the development
grades were as expected for the areas currently being developed. As
discussed previously, most of the development at Phakisa is still taking
place in the lower grade central block with its very erratic nature in
terms of grade. The major drive is still on the development of the area
to the north to access the higher grade Black Chert facies and move
closer to the average reserve grade. New raise lines towards the north
will be developed in the next quarter and an improved development
grade is expected.

Target (narrow reef mining)

At the Target 1 shaft, good values were sampled in the one raise that
is being developed for narrow reef stoping. It is important to note
that this is not representative of the Target 1 shaft as a whole as it
excludes the massive mining as well as the raises developed for rock
engineering requirements.

At the recently restarted Target 3 shaft, the focus remained on getting
development here up to planned levels.

Tshepong

Quarter on quarter, both the Basal and B reef development grades
increased more than satisfactorily as did the development metres.
In the Tshepong B reef project area, grades sampled averaged
3.339cmg/t.

Virginia (Unisel)

At Unisel, the development grades of all the reefs being developed
(Leader, Basal and Middle reefs) improved. The grades achieved were
mostly in line with expectations. Since development of the high-grade
Middle reef was completed during the December quarter, a decrease
in the average development grade is expected in the next quarter.

Ore reserve block grades v development grades

Results for the second quarter and six months
ended 31 December 2010

Exploration

International (Papua New Guinea)*

Morobe Mining Joint Venture

Wafi-Golpu

Drilling at the Wafi-Golpu project in Papua New Guinea (PNG) has

indicated further significant exploration drill intersections at Golpu.

Golpu is a copper-gold porphyry deposit. The best intersections are

listed below:

Hole_ID

Target Depth Width

Au g/t

(m)

Cu % Au g/t equivalent*

WR361 Golpu 446 186

2.01

0.35

3.25

WR362 Golpu 160 274

1.07

0.29

1.83

WR359 Golpu

017 860

1.37

0.70

2.68

WR363 Golpu 914 595

2.03

1.65

4.58

* Based on gold price of US$950/oz and copper price of US$2/lb.

The results at Golpu indicate that the mineralised porphyry continues

to the north at grades higher than currently declared in the resource.

The intersection is deep and infill drilling will test the up-dip extent of

the porphyry.

The intersection in WR363, 595m @ 2.03% copper and 1.65g/t gold

(4.58g/t gold equivalent) extends the resource to the north and pushes

the metasediment halo significantly further to the west. This will have

the effect of increasing in tonnes as well as grade.

WR347 intersected the resource as predicted but at a higher average

grade than had been identified in the resource. The hole also indicates

that the resource is wider and pushes out further to the west.

At Wafi, where we have targeted infill drilling for the metallurgical test

work, we are also receiving significant intersections which confirm our

previous estimates.

Hidden Valley satellite deposit exploration

Work to establish satellite resources and capitalise on the infrastructure

around Hidden Valley has focused almost entirely on the Kulang

prospect. Activities peripheral to this have included:

• Apu Creek sterilisation drilling (2 holes/987m)

• Surface mapping, trenching and sampling at Avina/Yafo

(245 samples)

• ML structural interpretation and integration with geological

data sets.

Target area locations and prospect details are outlined below:

Waterfall Prospect – Hidden Valley ML151

Final assay results were received for the Waterfall prospect drilling

with only broad, low grade anomalism intersected near surface and

limited gold mineralisation associated with the Waterfall and Keru

faults. Results included:

• TCDH004:

53m @ 0.5 g/t Au from 0m

• TCDH005:

131m @ 0.3 g/t Au from 0m

Apart from some interpretative work to contextualise these results

geologically, no further work is planned at this stage.

Kulang prospect – EL497

Exploration activities for the quarter focused on developing the Kulang

prospect, located approximately 7km east of the Hamata processing

plant, and approximately 4km southwest of Wau.

Mapping to date has outlined a major zone of strong clay-pyrite

(argillic) alteration extending from Kerimenge in the south, to Kulang

in the north over 5km of strike. Within the alteration zone, areas of

mineralised quartz-carbonate-base metal sulphide veins are developed

which include the Kulang prospect area.

Channel sampling of mineralised outcrop at Kulang has returned

excellent first pass results including:

KUL CK TR3:

38m @ 1.74 g/t Au, 20.22 g/t Ag

38m @ 3.96 g/t Au, 11.48 g/t Ag

Drilling commenced late in the quarter and several zones of epithermal

style base metal carbonate veins have already been intersected in the

first hole.

PNG exploration (Harmony 100%)

Mount Hagen project (EL1611 and EL1596)

Exploration activities for the past quarter at the Mount Hagen project

included:

• Bakil prospect diamond drilling (two holes completed for 396.5m)

• Reconnaissance mapping and sampling at Bakil Prospect

• Mt Hagen detailed regional airborne magnetic survey

Kurunga prospect

Final assay results for drill hole KUDD007 were received. These

were disappointing as the zone of intense veining and alteration in

the hole failed to return any significant gold or copper intercepts.

The best intercept in KUDD007 was 9m grading 0.39g/t Au from

59m, including 1m grading 1.88 g/t Au from 65m. This mineralisation

corresponds with the fault-related mineralisation outcropping in

Borgopana Creek. Geological work to integrate drill hole data, geology,

and geochemistry, with recently obtained detailed magnetics is

underway.

Bakil prospect

Bakil phase 1 diamond drilling comprised two holes (396.5m) drilled

from the same pad. The initial hole collapsed, and had to be re-drilled

at a shallower dip.

The hole was designed to test anomalous copper rock-chip values

associated with a major zone of clay-pyrite (argillic) alteration. The

alteration coincides with the contact of metasediments and diorite

porphyry. Several zones of argillic altered porphyry were obtained in

the drill core.

Amanab projects (EL1708)

Ongoing work at the Amanab project has focused on grid-based

mapping and soil sampling of the Aiyule magnetic target at Yup West.

A total of 307 soil samples were collected during the quarter together

with 16 rock chip samples. Results are pending.

Programme planning to follow up on highly anomalous soil (13.8g/t)

and rock chip values (4.54g/t) received last quarter is underway.

* The technical information was compiled by Greg Job, Harmony’s New Business Executive for South-East Asia, who has the overall responsibility and accountability for the Golpu project, in terms of the South African Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (SAMREC) 2007. Mr Job has 21 years’ experience in mine and resource geology and is a member of the Australian Institute of Mining and Metallurgy. He is a full time employee of Harmony and qualifies as Competent Person as defined in the SAMREC Code and the Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC). Mr Job has consented to the inclusion of the exploration details based on the information in the form and context in which it appears.

South Africa

Joel North

Following completion of a successful R20 million surface drilling

programme, the project advanced to the pre-feasibility stage to

determine whether the depth extension to 137 and 145 levels could

be mined profitably.

The pre-feasibility was completed during the quarter and a gate-

keeping session held at which it was decided to take the project

through to feasibility. It was decided, in line with the recommendation

in the pre-feasibility, to take the twin decline from 129 level down to

just below 145 level, which will mine out both the 137 and 145 levels.

The feasibility will investigate the possibility of re-equipping the shaft

for rock, men and equipment, as we believe that there may be a

significant reduction in operating cost if the use of the south shaft

could be minimised.

Poplar

The Poplar project is in the Evander region, immediately north of

Evander South. Exploration drilling was carried out by previous

owners over a fifty-year period, resulting in numerous feasibility

reports. A feasibility study was completed for Harmony in June 2003

which delineated resources of 25.5Mt @ 7.58g/t and reserves of

13.5Mt @ 7.45 g/t. The resource occurs between 500m and 1 300m

below surface and the relatively shallow depth allows the project to

produce first gold within five years.

Drilling during the quarter progressed exceedingly well and to such an

extent that the contractor was able to demobilise and leave site early,

prior to Christmas. Results from the majority of holes had been received

by the beginning of December when a decision was taken to drill only

those holes that could be expected to add significant resources to the

total. A total of 5 186 metres were drilled during the quarter out of a

final total of 17 835 metres. The programme was scheduled to cost

over R40 million but is likely to finally cost a little under R30 million

after re-opening of previously drilled pilot holes proved successful and

minimal adverse ground conditions were encountered.

Uranium Project Tshepong, Phakisa, Masimong (TPM)

Project TPM was established to evaluate the potential for the economic

recovery of uranium from the ore mined at the Tshepong, Phakisa and

Masimong operations in the Free State. The resource totals 169.6Mt

and contains 82Mlbs of uranium (to be used in the feasibility study

mining model). The project is expected to produce an average of

600 000 lbs of uranium per annum from 280 000 tonnes per month

of underground ore over an 18-year life. The uranium processing has

the added benefit of enhancing gold recovery by 0.1g/t resulting in

increased gold production from these operations increasing by

some 28kg per month. By treating the uranium as a by-product, it is

accounted for as a credit, resulting in a reduction in the operating costs

of the contributing shafts by approximately R20 000 per kg.

A recovered uranium grade of 100 ppm continues to be used and

will be updated in the feasibility study. Current head grade assay data

received is in the order of 122 ppm.

The feasibility study is progressing well and remains due for completion

in May 2011. NNR (National Nuclear Regulator) and Department of

Energy approval were received shortly before the end of December

2010 and the pilot plant has just been hot commissioned with further

test work in progress. The testing period is expected to last 45 days

and the results will be incorporated into the feasibility study.

Results for the second quarter and six months
ended 31 December 2010

Operating results (Rand/Metric) (US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Total

South

Quarter

Kusasa-

Under-

Total

Africa

Hidden

Harmony

ended

Bambanani Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn 2

Target 1

Target 3 Tshepong

Virginia

ground

Kalgold Phoenix Dumps Surface

Other

Total

Valley

Total

Ore milled

– t’000

Dec-10

104

171

139

128

228

219

107

–

196

–

345

122

1 759

413

1 266

812

2 491

–

4 250

425

4 675

Sep-10

129

140

269

243

–

205

–

338

244

1 834

433

1 546

858

2 837

–

4 671

427

5 098

Gold produced

– kg

Dec-10

756

643

517

408

1 046

1 151

505

865

170

1 628

566

8 273

339

138

478

955

–

9 228

827

10 055

Sep-10

911

541

552

148

1 513

1 263

377

836

111

1 688

760

8 731

368

165

536

1 069

–

9 800

671

10 471

Gold produced

– oz

Dec-10

24 306

20 673

16 622

13 117

33 630

37 005

16 236

579

27 810

5 466

52 341

18 197

265 982

10 899

4 437

15 368

30 704

–

296 686

26 589

323 275

Sep-10

29 289

17 394

17 747

4 758

48 644

40 606

12 121

997

26 878

3 569

54 270

24 435

280 708

11 831

5 305

17 233

34 369

–

315 077

21 573

336 650

Yield

–

g/tonne

Dec-10

7.27 3.76 3.72 3.19 4.59 5.26

4.72

– 4.41 – 4.72 4.64 4.60

0.82

0.11

0.59 0.38

– 2.13

1.95 2.11

Sep-10

7.06 3.86 3.94 3.70 5.62 5.20

4.38 – 4.08 – 4.99 3.11 4.68

0.85

0.11

0.62 0.38

– 2.07

1.57 2.03

Cash operating costs

– R/kg

Dec-10

260 147

229 894

300 698

276 787

274 201

168 907

221 491

–

191 083

–

176 052

197 512

218 881 246 475 241 659 185 824

215 422

–

218 516

195 605

216 595

Sep-10

245 750

249 294

290 188

588 101

225 164

161 372

296 520

–

215 050

–

175 322

300 593

228 946

238 840

231 606

196 034

216 260

–

227 542

244 720

228 658

Cash operating costs

– $/oz

Dec-10

1 176

1 039

1 359

1 251

1 239

763

1 001

–

864

–

796

893

989

1 114

1 092

840

974

–

988

884

979

Sep-10

1 046

1 061

1 236

2 504

959

687

1 263

–

916

–

746

1 280

975

1 017

986

835

921

–

969

1 042

974

Cash operating costs

– R/tonne

Dec-10

1 891

864

1 118

882

1 258

888

1 045

–

843

–

831

916

1 006

202

109

–

465

381

457

Sep-10

1 735

963

1 144

2 176

1 266

839

1 300

–

877

–

876

936

1 072

203

122

–

470

385

463

Gold sold

– Kg

Dec-10

765

634

464

413

981

1 176

511

881

170

1 648

578

8 239

282

138

478

898

–

9 137

909

10 046

Sep-10

939

585

608

152

1 661

1 302

388

847

111

1 739

776

9 139

402

165

536

1 103

–

10 242

627

10 869

Gold sold

– oz

Dec-10

24 595

20 384

14 918

13 278

31 540

37 809

16 429

579

28 325

5 466

52 984

18 583

264 890

9 066

4 437

15 368

28 871

–

293 761

29 225

322 986

Sep-10

30 190

18 808

19 548

4 887

53 402

41 860

12 474

997

27 232

3 569

55 910

24 949

293 826

12 925

5 305

17 233

35 463

–

329 289

20 158

349 447

Revenue

(R’000)

Dec-10

231 965

192 144

140 589

125 035

296 220

356 059

155 108

–

267 003

–

500 078

175 198

2 439 399

85 258

42 077 145 633

272 968

– 2 712 367

278 094

2 990 461

Sep-10

269 901

168 047

174 211

43 915

475 433

374 366

111 701

–

244 091

–

500 096

222 842

2 584 603

115 562

47 348

153 582

316 492

–

2 901 095

181 854

3 082 949

Cash operating

(R’000)

Dec-10

196 671

147 822

155 461

112 929

286 814

194 412

111 853

–

165 287

–

286 612

111 792

1 769 653

83 555

33 349

88 824

205 728

– 1 975 381

161 765

2 137 146

costs

Sep-10

223 878

134 868

160 184

87 039

340 673

203 813

111 788

–

179 782

–

295 944

228 451

1 966 420

87 893

38 215

105 074

231 182

–

2 197 602

164 207

2 361 809

Inventory

(R’000)

Dec-10

826

(616)

(16 202)

9 979

(30 786)

686

(514)

–

3 336

–

518

11 980

(20 793) (15 273)

–

4 828

(10 445)

–

(31 238)

17 064

(14 174)

movement

Sep-10

(462)

12 677

16 219

(11 971)

46 002

(1 979)

(407)

–

9 607

–

(2 284)

(3 473)

63 929

1 633

–

4 975

6 608

–

70 537

(1 299) 69 238

Operating costs

(R’000)

Dec-10

197 497

147 206

139 259

122 908

256 028

195 098

111 339

–

168 623

–

287 130

123 772

1 748 860

68 282

33 349

93 652

195 283

– 1 944 143

178 829

2 122 972

Sep-10

223 416

147 545

176 403

75 068

386 675

201 834

111 381

–

189 389

–

293 660

224 978

2 030 349

89 526

38 215

110 049

237 790

–

2 268 139

162 908

2 431 047

Operating profit

(R’000)

Dec-10

34 468

44 938

1 330

2 127

40 192

160 961

43 769

–

98 380

–

212 948

51 426

690 539

16 976

8 728

51 981

77 685

–

768 224

99 265

867 489

Sep-10

46 485

20 502

(2 192)

(31 153)

88 758

172 532

320

–

54 702

–

206 436

(2 136)

554 254

26 036

9 133

43 533

78 702

–

632 956

18 946

651 902

Operating profit

($’000)

Dec-10

5 008

6 530

193

310

5 840

23 386

6 360

–

14 295

–

30 941

7 472

100 335

2 467

1 268

7 553

11 288

–

111 623

14 423

126 046

Sep-10

6 362

2 807

(300)

(4 265)

12 150

23 618

–

7 487

–

28 260

(291)

75 872

3 564

1 249

5 959

10 772

–

86 644

2 593

89 237

Capital expenditure

(R’000)

Dec-10

29 419

84 573

56 709

21 686

84 178

48 327

102 675

43 886

81 114

52 601

72 715

18 639

696 522

6 726

10 352

15 260

32 338

20 862

749 722

84 971

834 693

Sep-10

38 917

69 496

59 207

18 337

104 357

40 463

91 716

44 290

62 112

56 067

60 650

30 173

675 785

4 645

–

4 645

7 626

688 056

59 218

747 274

Capital expenditure

($’000)

Dec-10

4 275

12 288

8 240

3 151

12 231

7 022

14 919

6 377

11 786

7 643

10 566

2 708

101 206

977

1 504

2 217

4 698

3 031

108 935

12 346

121 281

Sep-10

5 327

9 513

8 105

2 510

14 285

5 539

12 555

6 063

8 502

7 675

8 302

4 130

92 506

636

–

636

1 044

94 186

8 105

102 291

Production statistics for Steyn 2 and Target 3 have been included. These mines are in a build-up phase and revenue and costs are currently capitalised, until commercial production levels are reached.

Results for the second quarter and six months
ended 31 December 2010

CONDENSED CONSOLIDATED INCOME STATEMENT (Rand)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

Note

R million

Continuing operations
Revenue

2 990

3 083

2 971

6 073

5 718

11 284

Cost of sales

(2 506)

(2 995)

(2 656)

(5 501)

(5 256)

(10 484)

Production costs

(2 093)

(2 408)

(2 172)

(4 501)

(4 367)

(8 325)

Royalty

expense

(30)

(23) – (53) –

(33)

Amortisation and depreciation

(442)

(426)

(320)

(868)

(670)

(1 375)

Impairment of assets

–

(104)

–

(104)

(331)

Employment termination and
restructuring

costs

(54)

(78) (3) (132) (3)

(205)

Other items

113

(60)

(57)

(112)

(215)

Gross proﬁ

484 88 315 572 462 800

Corporate, administration and other
expenditure

(96) (94) (95) (190)

(174)

(382)

Social

investment

expenditure

(23) (16) (20) (39) (29) (81)

Exploration

expenditure

(76) (99) (45) (175) (93)

(219)

Profit on sale of property, plant
and

equipment

16 1 17 1

104

Other income/(expenses) – net

(54)

(20)

(48)

(94)

(58)

Operating proﬁ

t/(loss)

296 (159) 136

137 73 164

(Loss)/profit from associates

(19)

(8)

(27)

Profit/(loss) on sale of investment
in

subsidiary

– – – – 5

(24)

Net gain/(loss) on financial instruments

311

389

(2)

Investment

income

38 14 54 52

125

187

Finance

cost

(69) (59) (37) (128) (91)

(246)

Proﬁ t before taxation

324

181

423

166

175

Taxation

(28)

(59)

(22)

(77)

(335)

Normal

taxation

– (9) (14)

(9) (43) (84)

Deferred

taxation

(28) 15 (45) (13) (34)

(251)

Net proﬁ t/(loss) from continuing
operations

296 105 122 401 89

(160)

Discontinued operations
Profit/(loss) from discontinued operations

(3)

(4)

–

(32)

Net

profit/(loss)

319 102 118 421 89

(192)

Attributable to:

Owners of the parent

319

102

118

421

(192)

Non-controlling

interest

– – – – – –

Earnings/(loss) per ordinary share (cents)

– Earnings/(loss) from continuing operations

(38)

– Earnings/(loss) from discontinued operations

(1)

–

(8)

Total earnings/(loss) per ordinary
share

(cents)

74 23 28 98 21

(46)

Diluted earnings/(loss) per ordinary
share (cents)

– Earnings/(loss) from continuing operations

(38)

– Earnings/(loss) from discontinued operations

(1)

–

(8)

Total diluted earnings/(loss) per
ordinary

share

(cents)

74 23 28 98 21

(46)

¹ The comparative ﬁ gures are re-presented due to Mount Magnet being reclassiﬁ ed as a discontinued operation. See note 5 in this regard.

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

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (Rand)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

R million

Net proﬁ t/(loss) for the period

319

102

118

421

(192)

Other comprehensive (loss)/income for

the period, net of income tax

(161)

106

(51)

(55)

(36)

(131)

Foreign exchange translation

(131)

106

(57)

(25)

(38)

(127)

Fair value movement of available-for-sale

investments (30)

–

(30)

(4)

Total comprehensive income/(loss)

for the period

158

208

366

(323)

Attributable to:

Owners of the parent

158

208

366

(323)

Non-controlling

interest

– – – – – –

Results for the second quarter and six months
ended 31 December 2010

CONDENSED CONSOLIDATED BALANCE SHEET (Rand)

At At

31 December

30 September

30 June

31 December

2010 2010

2010 2009

(Unaudited)

(Audited)

Note

R million

ASSETS

Non-current assets

Property, plant and equipment

30 218

29 873

29 556

28 862

Intangible assets

2 199

2 210

2 217

Restricted

cash

26 116

146 167

Restricted investments

1 864

1 787

1 742

1 697

Investments in financial assets

264

296

Investments in associates

358

377

385

Inventories

232

237

214

Trade and other receivables

35 230

34 952

34 340

33 499

Current assets

Inventories

943

902

987

103

Trade and other receivables

962

649

932

1 108

Income and mining taxes

102

Restricted cash

–

280

Cash and cash equivalents

837

772

770

808

2 844

2 396

2 763

3 354

Assets of disposal groups classified as held for sale

–

245

–

2 844

2 396

3 008

3 354

Total assets

38 074

37 348

36 853

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

28 277

28 269

28 261

28 096

Other

reserves

266 395

258 375

Retained

earnings

897 578

690 971

29 440

29 242

29 209

29 442

Non-current liabilities

Deferred tax

3 613

3 572

3 534

3 317

Provision for environmental rehabilitation

1 752

1 723

1 692

1 612

Retirement benefit obligation and other provisions

179

169

167

Borrowings

7 1 243 970

981 565

6 787

6 434

6 376

5 661

Current liabilities

Borrowings

7 344 207

209 460

Income and mining taxes

Trade and other payables

1 493

1 452

1 410

1 279

1 847

1 672

1 628

1 750

Liabilities of disposal groups classified as held for sale

–

135

–

1 847

1 672

1 763

1 750

Total equity and liabilities

38 074

37 348

36 853

Number of ordinary shares in issue

429 506 618

428 850 854

428 654 779

426 079 492

Net asset value per share (cents)

6 854

6 819

6 814

6 910

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Rand)

for the six months ended 31 December 2010

Other

Retained

capital

reserves

earnings

Total

Note

R million

Balance – 30 June 2010

28 261

258

690

29 209

Issue of shares

–

Share-based payments

–

Total comprehensive income for the period

–

(55)

421

366

Dividends paid

–

(214)

Balance as at 31 December 2010

28 277

266

897

29 440

Balance – 30 June 2009

28 091

339

1 095

29 525

Issue of shares

–

Share-based payments

–

Total comprehensive income for the period

–

(36)

Dividends paid

–

(213)

Balance as at 31 December 2009

28 096

375

971

29 442

Results for the second quarter and six months
ended 31 December 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Rand)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

R million

Cash ﬂ ow from operating activities

Cash generated by operations

450

703

183

1 153

408

1 611

Interest and dividends received

120

187

Interest

paid

(35) (30) (11) (65) (20) (90)

Income and mining taxes paid

(30)

(4)

(34)

(59)

(125)

Cash generated by operating activities

423

683

190

1 106

449

1 583

Cash ﬂ ow from investing activities

Decrease/(increase) in restricted cash

(283)

120

(286)

Proceeds on disposal of investment in subsidiary

–

229

–

229

–

Proceeds on disposal of available-for-sale

financial

assets

2 – 29

2 44 50

Other investing activities

(6)

(3)

(12)

Net additions to property, plant and equipment

(846)

(748)

(890)

(1 594)

(1 797)

(3 493)

Cash utilised by investing activities

(760)

(479)

(1 147)

(1 239)

(2 034)

(3 416)

Cash ﬂ ow from ﬁ nancing activities

Borrowings

raised

525

– 686 525 686

236

Borrowings

repaid

(107) (7) (18) (114) (25)

(391)

Ordinary shares issued – net of expenses

Dividends paid

–

(214)

–

(214)

(213)

Cash generated/(utilised) by financing activities

426

(213)

671

213

453

650

Foreign currency translation adjustments

(24)

–

(13)

(10)

Net increase/(decrease) in cash and

cash equivalents

(286)

(1 142)

(1 180)

Cash and cash equivalents – beginning of period

772

770

1 094

770

1 950

Cash and cash equivalents – end of period

837

772

808

837

808

770

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED 31 DECEMBER 2010

1. Accounting policies

Basis of accounting

The condensed consolidated financial statements for the six months ended 31 December 2010 have been prepared in accordance with
IAS 34, Interim Financial Reporting, JSE Listing Requirements and in the manner required by the Companies Act of South Africa. They should be read in conjunction with the annual financial statements for the year ended 30 June 2010, which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are consistent with those described in the annual financial statements, except for the adoption of applicable revised and/or new standards issued by the International Accounting Standards Board.

Cost of sales

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

R million

Production costs

2 093

2 408

2 172

4 501

4 367

8 325

Royalty

expense

23 – 53 –

Amortisation

and

depreciation

442 426 320 868 670

375

Impairment of assets

(2)

–

– 104

– 104 331

Rehabilitation

expenditure

5 4 4 9 8

Care and maintenance cost of
restructured

shafts

28 25 14 53 31 57

Employment termination and
restructuring

costs

78 3 132 3

205

based

payments

32 31 38 63 72

148

Insurance credits

(3)

(179) – – (179) – –

Provision for post-retirement benefits

–

(19)

Total cost of sales

2 506

2 995

2 656

5 501

5 256

10 484

(1)

The comparative figures are re-presented due to Mount Magnet being reclassified as part of discontinued operations. See note 5 in this regard.

(2)

The impairment for the quarter ended 31 December 2009 and year ended 30 June 2010 relates mainly to Virginia and Evander, which was recorded as a result of shaft
closures.

(3)

Proceeds on unwinding of previous insurance agreement.

3. Exploration expenditure

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

R million

Total exploration expenditure

102

101

203

219

Less:

Expenditure

capitalised

(26) (2) – (28) – –

Exploration expenditure
per

income

statement

76 99 45 175 93

219

Net gain/(loss) on financial instruments

On 3 September 2010, Harmony Gold Mining Company Limited (Harmony) entered into two transactions with Witwatersrand Consolidated
Gold Resources Limited (Wits Gold), whereby Wits Gold obtains a prospecting right over Harmony’s Merriespruit South area and the option held by ARMGold/Harmony Freegold Joint Venture Company (Proprietary) Limited (Freegold), a wholly-owned subsidiary of Harmony, is cancelled. The option is to acquire a beneficial interest of up to 40% in any future mines established by Wits Gold on certain properties in the Southern Free State (Freegold option). Harmony will abandon a portion of its mining right in respect of the Merriespruit South area to enable Wits Gold to include this area in its prospecting right, which is located immediately south of the Merriespruit South area.

Results for the second quarter and six months
ended 31 December 2010

The total consideration of the transactions is R336 million of which R275 million was received for the cancellation of the option agreement by the issue of 4 376 194 shares in Wits Gold, following approval by Wits Gold shareholders on 5 November 2010. This represents a 13% investment in Wits Gold. The remaining R61 million for the prospecting area will be settled in cash or a combination of cash and shares in Wits Gold, when all remaining conditions precedent have been fulfilled. The Group classifies the investment in Wits Gold as an available-for-sale financial asset. During the September 2010 quarter, a gain of R273 million was recognised on the Freegold option which was then classified as a financial asset at fair value through profit or loss.

Disposal groups classified as held for sale and discontinued operations

The conditions precedent for the sale of Mount Magnet were fulfilled and the transaction became effective on 20 July 2010. A total purchase consideration of R238 million was received from Ramelius Resources Limited in exchange for 100% of the issued shares of Mount Magnet. The group recognised a total profit of R104 million net of tax, before the realisation of accumulated foreign exchange losses of R84 million from other comprehensive income to the consolidated income statement. The income statement and earnings per share amounts for all comparative periods have been re-presented to disclose the operation as a discontinued operation.

Earnings/(loss) per ordinary share

Earnings/(loss) per ordinary share is calculated on the weighted average number of ordinary shares in issue for the quarter ended
31 December 2010: 429.1 million (30 September 2010: 428.7 million, 31 December 2009: 425.9 million), and six months ended 31 December 2010: 428.9 million (31 December 2009: 425.9 million), and the year ended 30 June 2010: 426.4 million.

The diluted earnings/(loss) per ordinary share is calculated on weighted average number of diluted ordinary shares in issue for the quarter
ended 31 December 2010: 429.9 million (30 September 2010: 429.9 million, 31 December 2009: 427.5 million), and the six months ended
31 December 2010: 429.7 million (31 December 2009: 427.4 million), and the year ended 30 June 2010: 427.8 million.

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

Total earnings/(loss) per ordinary
share (cents):

Basic

earnings/(loss)

74 23 28 98 21

(46)

Diluted

earnings/(loss)

74 23 28 98 21

(46)

Headline

earnings/(loss)

69 33 49 101 37 (7)

– from continuing operations

101

– from discontinued operations

–

(1)

–

(8)

Diluted

headline

earnings/(loss)

69 33 49 101 37 (7)

– from continuing operations

101

– from discontinued operations

–

(1)

–

(8)

R million

Reconciliation of headline
earnings/(loss):

Continuing operations

Net

profit/(loss)

296 105 122 401 89

(160)

Adjusted for:

Profit on sale of property, plant
and equipment

(1)

(16)

–

(17)

(1)

(104)

Taxation effect of profit on sale of
property, plant and equipment

–

Net gain on financial instruments

(1)

–

(3)

(1)

(5)

(7)

Taxation effect of net gain on financial
instruments

– – 1 – 2 2

Foreign exchange loss/(gain) reclassified
from other comprehensive income

–

(22)

Taxation effect of foreign exchange
loss/(gain) reclassified from other
comprehensive

income

– – – – – –

Loss on sale of investment in subsidiary

–

Taxation effect of loss on sale of
investment

subsidiary

– – – – –

(7)

Impairment of other investments

–

Taxation effect of impairment of other
investments

– – – – – –

Impairment of assets

–

104

–

104

331

Taxation effect of impairment of assets

–

(11)

–

(11)

(75)

Headline

earnings

294 141 213 435 158 4

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited)

(Audited)

R million

Discontinued operations

Net profit/(loss)

(3)

(4)

–

(32)

Adjusted for:

Profit on sale of property, plant
and

equipment

– – (2) – (3) –

Taxation effect of profit on sale of
property, plant and equipment

–

Profit on sale of investment in subsidiary

–

(138)

–

(138)

–

(1)

Taxation effect of profit on sale of
investment in subsidiary

–

Foreign exchange (profit)/loss reclassified from
other comprehensive income

(23)

107

–

Taxation effect of foreign exchange loss
reclassified from other comprehensive income

–

Headline

loss

– – (6) – (2)

(33)

Total

headline

earnings/(loss)

294 141 207 435 156 (29)

(1)

The comparative figures are re-presented due to Mount Magnet being reclassified as discontinued operation. See note 5 in this regard.

7. Borrowings

31 December

30 September

30 June 31 December

2010 2010

2010

2009

(Unaudited) (Audited)

R million

Total long-term borrowings

1 243

970

981

565

Total current portion of borrowings

344

207

209

460

Total borrowings

(

) (

)

1 587

1 177

1 190

1 025

(

)

In December 2009, the company entered into a loan facility with Nedbank Limited, comprising of a Term Facility of R900 million and a Revolving Credit Facility of R600 million. Interest accrues on a day to day basis over the term of the loan at a variable interest rate, which is fixed for a three month period, equal to JIBAR plus 3.5%. Interest is repayable quarterly. The Term Facility is repayable bi-annually in equal instalments of R90 million over five years. The first instalment was paid on 30 June 2010.

In December 2010 the Company entered into an additional loan facility with Nedbank Limited, comprising of a Term Facility of
R500 million and a Revolving Credit Facility of R250 million. Interest terms are identical to the original facility. The Term Facility is repayable bi-annually in equal instalments of R62.5 million over four years, with the first instalment payable on 30 June 2011. The terms of the original Revolving Credit Facility was amended to coincide with the repayment terms of the new Revolving Credit Facility, being payable after three years from December 2010.

At 31 December 2010, R550 million of these facilities had not been drawn down.

(

)

Included in the borrowings is R63 million (September 2010: R74 million; June 2010: R91 million; December 2009: R102 million) owed to Westpac Bank Limited in terms of a finance lease agreement. The future minimum lease payments are as follows:

31 December

30 September

30 June 31 December

2010 2010

2010

2009

(Unaudited) (Audited)

R million

Due within one year

Due between one and five years

64 76

105

Future finance charges

(1)

(2)

(3)

Total future minimum lease payments

102

Results for the second quarter and six months
ended 31 December 2010

Commitments and contingencies

31 December

30 September

30 June 31 December

2010 2010

2010

2009

(Unaudited) Audited)

R million

Capital expenditure commitments:
Contracts for capital expenditure

166

188

117

244

Authorised by the directors but not contracted for

2 669

3 406

1 006

2 507

2 835

3 594

1 123

2 751

This expenditure will be financed from existing resources and borrowings where necessary.

Contingent liability

For a detailed disclosure on contingent liabilities refer to Harmony’s annual report for the financial year ended 30 June 2010, available on the group’s website at www.harmony.co.za. There were no significant changes in contingencies since 30 June 2010.

9. Dividends paid

On 13 August 2010, the Board of Directors approved a final dividend for the 2010 financial year of 50 SA cents per share. The total dividend amounting to R214 million was paid on 20 September 2010.

10. Subsequent events

No subsequent events occurred between close of the current quarter and date of this report.

11. Segment report

The segment report follows on page 26.

12. Reconciliation of segment information to consolidated income statements and balance sheets

Six months ended Six months ended

31 December

31 December¹

2010 2009

R million

The “reconciliation of segment data to consolidated financials” line item in the segment report
is broken down in the following elements, to give a better understanding of the differences
between the income statement, balance sheet and segment report:

Revenue from

Discontinued operations

– –

Production costs from:

Discontinued operations

– –

Reconciliation of production profit to gross profit:

Total segment revenue

6 073

5 718

Total segment production costs and royalty expense

(4 554)

(4 367)

Production profit as per segment report

1 519

1 351

Less:

Discontinued operations

– –

1 519

1 351

Cost of sales items other than production costs and royalty expense

(947)

(889)

Amortisation and depreciation

(868) (670)

Impairment of assets

– (104)

Employment termination and restructuring costs

(132)

(3)

Share-based payments

(63) (72)

Insurance credits

179 –

Rehabilitation costs

(9) (8)

Care and maintenance costs of restructured shafts

(53)

(31)

Provision for post-retirement benefits

(1) (1)

Gross profit as per income statements *

572

462

Six months ended Six months ended

31 December

31 December¹

2010 2009

R million

Reconciliation of total segment mining assets to consolidated property, plant and equipment:

Property, plant and equipment not allocated to a segment

Mining assets

862 746

Undeveloped property

5 139

Other non-mining assets

72 66

6 073

5 951

(1) The comparative figures are re-presented due to Mount Magnet being reclassified as discontinued operation. See note 5 in this regard.

The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

13. Review report

The condensed consolidated financial statements for the six months ended 31 December 2010 on pages 16 to 27 have been reviewed
in accordance with International Standards on Review Engagements 2410 – “Review of interim financial information performed by
the Independent Auditors of the entity” by PricewaterhouseCoopers Inc. Their unqualified review report is available for inspection at
the Company’s registered office.

Results for the second quarter and six months
ended 31 December 2010

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2010 (Rand/Metric)

Production

Mining

Capital

Kilograms

Tonnes

Revenue

costs

(1)

profit/(loss)

assets expenditure

produced

milled

R million

kg*

t’000*

Continuing operations

South Africa

Underground

Bambanani

(2)

502

421

1 034

156

1 716

233

Doornkop

360

295

2 973

154

1 184

311

Evander 315

316

(1)

946

116

069

279

Joel 169

198

(29)

187

556

168

Kusasalethu

772

643

129

3 098

189

2 559

497

Masimong

730

397 333 821

89 2 414 462

Phakisa 267

223

207

194

882

193

Target

(2)

511

358

153

2 670

252

1 982

401

Tshepong

1 000

581

419

3 624

133

3 316

683

Virginia 398

349

696

326

366

Surface

All other surface operations

(3)

589

431 158 148

66 2 024

328

Total South Africa

5 613

4 212

1 401

20 404

1 438

19 028

8 921

International

Papua New Guinea

460

342

118

3 741

144

1 498

852

Total international

460

342

118

3 741

144

1 498

852

Total continuing operations

6 073

4 554

1 519

24 145

1 582

20 526

9 773

Discontinued operations

Mount

Magnet

–

– – – – – –

Total discontinued operations

–

Total operations

6 073

4 554

1 519

24 145

1 582

20 526

9 773

Reconciliation of the segment

information to the consolidated

income statement and

balance sheet (refer to note 12)

–

6 073

6 073

4 554

30 218

Notes:

(1) Production costs includes royalty expense.

(2) Production statistics for Steyn 2 and Target 3 are shown for information purposes. These mines are in build-up phase and revenue and costs are currently capitalised until

commercial levels of production are reached.

(3) Includes Kalgold, Phoenix, Dumps and extraction of gold in lock-up at the President Steyn plant.

Production statistics are not reviewed.

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 (Rand/Metric)

Production

Mining

Capital

Kilograms

Tonnes

Revenue

costs

profit

assets

expenditure

produced

milled

R million

kg*

t’000*

Continuing operations

South Africa

Underground

Bambanani

490

369 121 680

51 1 878 270

Doornkop 259

209

699

151

990

278

Evander 599

559

906

106

296

504

Joel 291

209

135

106

248

Kusasalethu

741

571

170

2 894

236

3 012

495

Masimong

648

360 288 711

85 2 601 469

Phakisa 161

139

898

266

610

158

Target

414

308

106

2 301

161

1 700

384

Tshepong

886

583

303

3 627

129

3 395

814

Virginia

813

789

841

3 253

1 015

Surface

All other surface operations

(1)

416

271 145 141

44 1 674

384

Total South Africa

5 718

4 367

1 351

18 833

1 378

22 515

9 019

International

Papua New Guinea

(2)

–

805

429

768

–

Total international

–

3 805

429

768

–

Total continuing operations

5 718

4 367

1 351

22 638

1 807

23 283

9 019

Discontinued operations

Mount Magnet

–

273

–

Total discontinued operations

–

273

–

Total operations

5 718

4 367

1 351

22 911

1 807

23 283

9 019

Reconciliation of the segment

information to the consolidated

income statement and

balance sheet (refer to note 12)

–

5 951

5 718

4 367

28 862

Notes:

(1) Includes Kalgold, Phoenix and Dumps.

(2) At 31 December 2009, production statistics for Hidden Valley was shown for information purposes. This mine was in build-up phase and revenue and costs were capitalised until

commercial levels of production were reached.

Production statistics are not reviewed.

Results for the second quarter and six months
ended 31 December 2010

Operating results

(US$/Imperial)

Underground production – South Africa

Surface production – South Africa

Total

South

Quarter

Kusasa-

Under-

Total

Africa

Hidden

Harmony

ended

Bambanani Doornkop

Evander

Joel

lethu Masimong

Phakisa

Steyn 2

Target 1

Target 3 Tshepong

Virginia

ground

Kalgold Phoenix Dumps Surface

Other

Total

Valley

Total

Ore milled

– t’000

Dec-10

115

189

153

141

251

241

118

–

216

–

380

135

1 939

455

1 396

895

2 746

–

4 685

469

5 154

Sep-10

142

154

297

268

–

226

–

373

269

2 022

477

1 705

946

3 128

–

5 150

471

5 621

Gold produced

– oz

Dec-10

24 306

20 673

16 622

13 117

33 630

37 005

16 236

579

27 810

5 466

52 341

18 197

265 982

10 899

4 437

15 368

30 704

–

296 686

26 589

323 275

Sep-10

29 289

17 394

17 747

4 758

48 644

40 606

12 121

997

26 878

3 569

54 270

24 435

280 708

11 831

5 305

17 233

34 369

–

315 077

21 573

336 650

Yield

–

oz/t

Dec-10

0.211 0.109 0.109 0.093 0.134 0.154

0.138

– 0.129

– 0.138 0.135 0.134

0.024

0.003

0.017 0.011

– 0.062

0.057 0.062

Sep-10

0.206 0.113 0.115 0.108 0.164 0.152

0.128

– 0.119

– 0.145 0.091 0.137

0.025

0.003

0.018 0.011

– 0.060

0.046 0.059

Cash operating costs

– $/oz

Dec-10

1 176

1 039

1 359

1 251

1 239

763

1 001

–

864

–

796

893

989

1 114

1 092

840

974

–

988

884

979

Sep-10

1 046

1 061

1 236

2 504

959

687

1 263

–

916

–

746

1 280

975

1 017

986

835

921

–

969

1 042

974

Cash operating costs

– $/t

Dec-10

248

114

148

116

166

117

138

–

111

–

110

120

133

–

Sep-10

216 120 142 271 157 104 161 – 109 – 109 116 133 25 3 15 10 – 58 48 58

Gold sold

– oz

Dec-10

24 595

20 384

14 918

13 278

31 540

37 809

16 429

579

28 325

5 466

52 984

18 583

264 890

9 066

4 437

15 368

28 871

–

293 761

29 225

322 986

Sep-10

30 190

18 808

19 548

4 887

53 402

41 860

12 474

997

27 232

3 569

55 910

24 949

293 826

12 925

5 305

17 233

35 463

–

329 289

20 158

349 447

Revenue

($’000)

Dec-10

33 705

27 919

20 428

18 168

43 041

51 735

22 537

–

38 796

–

72 661

25 456

354 446

12 388

6 114

21 161

39 663

–

394 109

40 407

434 516

Sep-10

36 946

23 004

23 848

6 011

65 081

51 247

15 291

–

33 413

–

68 458

30 505

353 804

15 819

6 481

21 024

43 324

–

397 128

24 894

422 022

Cash operating

($’000)

Dec-10

28 577

21 479

22 589

16 408

41 674

28 249

16 252

–

24 016

–

41 645

16 243

257 132

12 140

4 846

12 906

29 892

–

287 024

23 505

310 529

costs

Sep-10

30 647

18 462

21 928

11 915

46 634

27 900

15 303

–

24 611

–

40 511

31 271

269 182

12 031

5 232

14 384

31 647

–

300 829

22 479

323 308

Inventory

($’000)

Dec-10

120

(90)

(2 354)

1 450

(4 473)

100

(75)

–

485

–

1 741

(3 021)

(2 219)

–

702

(1 517)

–

(4 538)

2 479 (2 059)

movement

Sep-10

(63)

1 735

2 220

(1 639)

6 297

(271)

(56)

–

1 315

–

(313)

(475)

8 750

224

–

681

905

–

9 655

(178)

9 477

Operating costs

($’000)

Dec-10

28 697

21 389

20 235

17 858

37 201

28 349

16 177

–

24 501

–

41 720

17 984

254 111

9 921

4 846

13 608

28 375

–

282 486

25 984

308 470

Sep-10

30 584

20 197

24 148

10 276

52 931

27 629

15 247

–

25 926

–

40 198

30 796

277 932

12 255

5 232

15 065

32 552

–

310 484

22 301

332 785

Operating profit

($’000)

Dec-10

5 008

6 530

193

310

5 840

23 386

6 360

–

14 295

–

30 941

7 472

100 335

2 467

1 268

7 553

11 288

–

111 623

14 423

126 046

Sep-10

6 362

2 807

(300)

(4 265)

12 150

23 618

–

7 487

–

28 260

(291)

75 872

3 564

1 249

5 959

10 772

–

86 644

2 593

89 237

Capital expenditure

($’000)

Dec-10

4 275

12 288

8 240

3 151

12 231

7 022

14 919

6 377

11 786

7 643

10 566

2 708

101 206

977

1 504

2 217

4 698

3 031

108 935

12 346

121 281

Sep-10

5 327

9 513

8 105

2 510

14 285

5 539

12 555

6 063

8 502

7 675

8 302

4 130

92 506

636

–

636

1 044

94 186

8 105

102 291

Production statistics for Steyn 2 and Target 3 have been included. These mines are in a build-up phase and revenue and costs are currently capitalised, until commercial production levels are reached.

Results for the second quarter and six months
ended 31 December 2010

CONDENSED CONSOLIDATED INCOME STATEMENT (US$)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December¹

31 December 31 December¹

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

US$ million

Continuing operations
Revenue

434 422 397 856 750

489

Cost

sales

(364) (411) (355) (775) (689)

383)

Production

costs

(304) (330) (290) (635) (572)

099)

Royalty

expense

(4) (3) – (7) – (4)

Amortisation

and

depreciation

(64) (58) (43) (122) (88)

(181)

Impairment of assets

–

(14)

–

(14)

(43)

Employment termination and restructuring
costs

(8)

(11) – (19) –

(27)

Other items

(9)

(8)

(15)

(29)

Gross

profit

70 11 42 81 61

106

Corporate, administration and other expenditure

(14)

(13)

(27)

(23)

(50)

Social

investment

expenditure

(3) (2) (3) (5) (4)

(11)

Exploration

expenditure

(11) (14) (6) (25) (12) (29)

Profit on sale of property, plant and equipment

–

Other income/(expenses) – net

(7)

(2)

(7)

(12)

(8)

Operating

profit/(loss)

43 (23) 18

19 10 22

(Loss)/profit from associates

(3)

(1)

(4)

Profit/(loss) on sale of investment in subsidiary

–

(3)

Net gain on financial instruments

–

Investment

income

6 2 8 7

Finance

cost

(10) (8) (5) (18)

(12)

(32)

Profit

before

taxation

47 13 24 59 22 24

Taxation

(4) 1 (8) (3)

(10)

(44)

Normal

taxation

– (1) (2) (1) (6)

(11)

Deferred

taxation

(4) 2 (6) (2) (4)

(33)

Net profit/(loss) from continuing operations

(20)

Discontinued operations
Profit/(loss) from discontinued operations

–

(1)

–

(4)

Net

profit/(loss)

46 14 15 59 12

(24)

Attributable to:

Owners of the parent

(24)

Non-controlling

interest

– – – – – –

Earnings/(loss) per ordinary share (cents)
– Earnings/(loss) from continuing operations

(5)

– Earnings/(loss) from discontinued operations

–

(1)

Total earnings/(loss) per ordinary share (cents)

(6)

Diluted earnings/(loss) per ordinary share (cents)
– Earnings/(loss) from continuing operations

(5)

– Earnings/(loss) from discontinued operations

–

(1)

Total diluted earnings/(loss) per ordinary
share

(cents)

11 3 4 14 3

(6)

¹ The comparative figures are re-presented due to Mount Magnet being reclassified as a discontinued operation.

The currency conversion average rates for the quarter ended: December 2010: US$1 = R6.88 (September 2010: US$1 = R7.31, December 2009: US$1 = R7.49).

The currency conversion average rates for the six months ended: December 2010: US$1 = R7.09 (December 2009: US$1 = R7.63).

The income statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.

Note on convenience translations

Except where specific statements have been extracted from the 2010 Annual Report, the requirements of IAS 21, The Effects of the Changes in Foreign Exchange Rates, have not necessarily been applied in the translation of the US Dollar financial statements presented on pages 30 to 36.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (US$)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

US$ million

Net proﬁ t/(loss) for the period

(24)

Other comprehensive (loss)/income for

the period, net of income tax

(23)

(7)

(8)

(5)

Foreign exchange translation

(19)

(8)

(4)

(5)

Fair value movement of available-for-sale

investments

(4) – 1 (4) – –

Total comprehensive income for the period

Attributable to:

Owners of the parent

Non-controlling

interest

– – – – – –

The currency conversion average rates for the quarter ended: December 2010: US$1 = R6.88 (September 2010: US$1 = R7.31, December 2009: US$1 = R7.49).

The currency conversion average rates for the six months ended: December 2010: US$1 = R7.09 (December 2009: US$1 = R7.63).

The statement of other comprehensive income for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.

Results for the second quarter and six months
ended 31 December 2010

CONDENSED CONSOLIDATED BALANCE SHEET (US$)

(Convenience translation)

At At

31 December

30 September

30 June

31 December

2010 2010

2010 2009

(Unaudited) (Unaudited) (Audited) (Unaudited)

US$ million

ASSETS

Non-current assets

Property, plant and equipment

4 568

4 289

3 874

3 916

Intangible

assets

332 316

290 301

Restricted

cash

4 17

19 23

Restricted

investments

282 257

228 230

Investments in financial assets

Investments in associates

Inventories

35 34

28 10

Trade and other receivables

5 325

5 020

4 501

4 545

Current assets

Inventories

143 130

129 150

Trade and other receivables

145

122

150

Income and mining taxes

Restricted cash

–

Cash and cash equivalents

127

111

101

110

430 344

362 455

Assets of disposal groups classified as held for sale

–

430 344

394 455

Total assets

5 755

5 364

4 895

5 000

EQUITY AND LIABILITIES

Share capital and reserves

Share capital

4 275

4 059

4 027

3 812

Other reserves

(40)

Retained earnings/(accumulated loss)

136

(159)

132

4 451

4 199

3 828

3 995

Non-current liabilities

Deferred

tax

546 513

463 450

Provisions for other liabilities and charges

265

247

222

219

Retirement benefit obligation and other provisions

Borrowings 188

139

129

026 923

836 769

Current liabilities

Borrowings

52 30

27 62

Income and mining taxes

Trade and other payables

225

210

185

173

278 242

213 236

Liabilities of disposal groups classified as held for sale

–

278 242

231 236

Total equity and liabilities

5 755

5 364

4 895

5 000

Number of ordinary shares in issue

429 506 618

428 850 584

428 654 779

426 079 492

Net asset value per share (cents)

1 036

979

893

937

The balance sheet for December 2010 converted at a conversion rate of US$1 = R6.62 (September 2010: US$1 = R6.96, December 2009: US$1: R7.37).

The balance sheet as at 30 June 2010 has been extracted from the 2010 Annual Report.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (US$) (Unaudited)

for the six months ended 31 December 2010 (Convenience translation)

Retained

earnings/

Share Other

(accumulated

capital reserves

loss)

Total

US$ million

Balance – 30 June 2010

4 272

104

4 415

Issue of shares

–

Share-based payments

–

Total comprehensive income for the period

–

(8)

Dividends paid

–

(32)

Balance as at 31 December 2010

4 275

136

4 451

Balance – 30 June 2009

3 811

149

4 006

Issue of shares

–

Share-based payments

–

Total comprehensive income for the period

–

(5)

Dividends paid

–

(29)

Balance as at 31 December 2009

3 812

132

3 995

The currency conversion closing rates for the year ended: December 2010: US$1 = R6.62 (December 2009: US$1 = R7.37).

Results for the second quarter and six months
ended 31 December 2010

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (US$)

(Convenience translation)

Quarter ended

Six months ended

Year ended

31 December 30 September 31 December

31 December 31 December

30 June

2010 2010 2009 2010 2009 2010

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)

US$ million

Cash ﬂ ow from operating activities

Cash generated by operations

163

214

Interest and dividends received

Interest

paid

(5) (4) (1) (9) (3)

(12)

Income and mining taxes paid

(4)

(1)

(5)

(8)

(17)

Cash generated by operating activities

156

210

Cash ﬂ ow from investing activities

Decrease/(increase) in restricted cash

(38)

(37)

Proceeds on disposal of investment in subsidiary

–

Proceeds on disposal of available-for-sale

financial

assets

– – 4 – 6 7

Other investing activities

(1)

–

(2)

Net additions to property, plant and equipment

(123)

(102)

(117)

(225)

(236)

(463)

Cash utilised by investing activities

(111)

(66)

(151)

(175)

(266)

(453)

Cash ﬂ ow from ﬁ nancing activities

Borrowings

raised

76 – 93 74 90

168

Borrowings

repaid

(16) (1) (2) (16) (3)

(57)

Ordinary shares issued – net of expenses

–

Dividends paid

–

(29)

–

(30)

(29)

Cash generated/(utilised) by financing activities

(29)

Foreign currency translation adjustments

4 12 – 15 6 6

Net increase/(decrease) in cash and

cash equivalents

(35)

(143)

(152)

Cash and cash equivalents – beginning of period

111

101

145

101

253

Cash and cash equivalents – end of period

127

111

110

127

110

101

Operating activities translated at average rates for the quarter ended: December 2010: US$1 = R6.88 (September 2010: US$1 = R7.31,
December 2009: US$1 = R7.49. Six months ended: December 2010: US$1 = R7.09 (December 2009: US$1 = R7.63).

Closing balance translated at closing rates of: December 2010: US$1 = R6.62 (September 2010: US$1 = R6.96, December 2009: US$1: R7.37).

The cash ﬂ ow statement for the year ended 30 June 2010 has been extracted from the 2010 Annual Report.

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2010 (US$/Imperial) (Unaudited)

(Convenience translation)

Production

Mining

Capital

Ounces

Tons

Revenue

costs

(1)

proﬁt/(loss)

assets expenditure

produced

milled

US$ million

t’000

Continuing operations

South Africa

Underground

Bambanani

(2)

156

171

257

Doornkop 51

449

067

343

Evander 44

(1)

143

369

307

Joel 24

(4)

875

185

Kusasalethu 109

468

274

548

Masimong 103

124

611

509

Phakisa 38

636

357

213

Target

(2)

404

723

442

Tshepong 141

548

106

611

753

Virginia 56

105

632

404

Surface

All other surface operations

(3)

83 61 22 22

073

874

Total South Africa

792

594

198

3 083

204

611 763

9 835

International

Papua New Guinea

565

48 162

940

Total international

565

48 162

940

Total continuing operations

857

642

215

3 648

224

659 925

10 775

Discontinued operations

Mount

Magnet

– – – – – – –

Total discontinued operations

–

Total operations

857

642

215

3 648

224

659 925

10 775

Notes:

(1)

Production costs includes royalty expense.

(2)

Production statistics for Steyn 2 and Target 3 are shown for information purposes. These mines are in build-up phase and revenue and costs are currently capitalised until

commercial levels of production are reached.

(3)

Includes Kalgold, Phoenix, Dumps and extraction of gold in lock-up at the President Steyn plant.

All income statement items, including capital expenditure, are converted at the currency convertion rate of US$1 = R7.09.

Mining assets are converted at the currency convertion rate of US$1 = R6.62.

Results for the second quarter and six months
ended 31 December 2010

SEGMENT REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 (US$/Imperial) (Unaudited)

(Convenience translation)

Production

Mining

Capital

Ounces

Tons

Revenue

costs

proﬁ

assets

expenditure

produced

milled

US$ million

t’000

Continuing operations

South Africa

Underground

Bambanani

64 48 16 92

379

298

Doornkop 34

366

829

306

Evander 78

123

818

556

Joel

38 27 11 18

559

274

Kusasalethu 97

393

838

546

Masimong

85 47 38 96 11

624

517

Phakisa 21

529

612

174

Target 54

312

656

424

Tshepong 116

492

109

152

898

Virginia

107

104

114

104 586

1 119

Surface

All other surface operations

(1)

56 37 19 19

820

834

Total South Africa

750

572

178

2 554

181

723 873

9 946

International

Papua New Guinea

(2)

–

516

682

–

Total international

–

516

24 682

–

Total continuing operations

750

572

178

3 070

237

748 555

9 946

Discontinued operations

Mount Magnet

–

Total discontinued operations

–

Total operations

750

572

178

3 107

237

748 555

9 946

Notes:

(1) Includes Kalgold, Phoenix and Dumps.

(2) At 31 December 2009, production statistics for Hidden Valley was shown for information purposes. This mine was in build-up phase and revenue and costs were capitalised until

commercial levels of production were reached.

All income statement items, including capital expenditure, are converted at the currency convertion rate of US$1 = R7.63.

Mining assets are converted at the currency convertion rate of US$1 = R7.37.

DEVELOPMENT RESULTS (Metric)

Quarter ended 31 December 2010

Channel

Reef

Sampled

Width

Value

Gold

(metres)

(cm’s)

(g/t)

(cmg/t)

Tshepong

Basal 602

592

10.21

111.10

134

B Reef

103

104.00

14.79

1 538

All Reefs

705 664 20.38

57.80

178

Phakisa & Nyala

Basal 270

287

36.66

22.39

821

All Reefs

270 287 36.66

22.39 821

Total Bambanani

(incl. Bambanani, Steyn 1 & Steyn 2)

Basal 74

126.65

18.96

402

All Reefs

74 68

126.65

18.96

402

Bambanani

Basal 74

126.65

18.96

402

All Reefs

74 68

126.65

18.96

402

Doornkop

Kimberley Reef

120

348.22

2.01

701

South Reef

374

369

59.21

16.20

959

All Reefs

494 462

117.39 7.73 908

Kusasalethu

Vcr Reef

773

742

71.12

18.62

1 324

All Reefs

773 742 71.12

18.62

324

Target

Elsburg 283

151

171.95

14.05

416

A Reef

127.38

13.96

1 779

B Reef

27.20

41.51

1 129

All Reefs

330 183

159.49

14.26

274

Target 1

Elsburg 182

186.74

17.28

227

All Reefs

182 99

186.74

17.28

227

Target 3

Elsburg 101

144.07

6.15

886

A Reef

127.38

13.96

1 779

B Reef

27.20

41.51

1 129

All Reefs

148 84

127.63

9.09

160

Masimong

Basal 449

325

63.68

16.99

082

B Reef

104

86.31

13.94

1 204

All Reefs

552 417 68.72

16.14

109

Evander

Kimberley 364

347

33.71

55.83

882

All Reefs

364 347 33.71

55.83

882

Virginia

(Incl. Unisel & Brand 3)

Basal 726.4

603

112.44

9.23

038

Leader 402.3

360

151.42

8.11

228

A Reef

76.0

44.90

14.71

660

Middle 82.0

123.35

9.10

123

B Reef

47.0

64.66

7.51

486

All Reefs

1 334

1 147

119.01

8.87

1 056

Joel

Beatrix 442

455

130.85

11.17

462

All Reefs

442 455

130.85

11.17

462

Total Harmony

Basal

2 122

1 874

60.61

18.01

1 092

Beatrix 442

455

130.85

11.17

462

Leader 402

360

151.42

8.11

228

B Reef

270

219

85.29

13.60

1 160

A Reef

105.8

97.5

64.78

14.35

929.95

Middle 82.0

123.35

9.10

122.59

Elsburg 282.7

150.75

171.95

14.05

415.93

Kimberley 483.9

439.5

100.26

16.27

632.06

South Ree f

374

369

59.21

16.20

959.48

Vcr 773

742

71.12

18.62

324.31

All Reefs

5 338

4 771

84.91

14.78

1 255

DEVELOPMENT RESULTS Imperial)

Quarter ended 31 December 2010

Channel

Reef

Sampled

Width

Value

Gold

(feet)

(inches)

(oz/t)

(in.oz/t)

Tshepong

Basal

1 975

1 942

3.26

B Reef

337

236

0.43

All Reefs

2 312

2 178

1.69

Phakisa & Nyala

Basal 885

942

0.67

All Reefs

885 942

14 0.67

Total Bambanani

(incl. Bambanani, Steyn 1 & Steyn 2)

Basal 244

222

0.55

All Reefs

244 222

50 0.55 28

Bambanani

Basal 244

222

0.55

All Reefs

244 222

50 0.55 28

Doornkop

Kimberley Reef

394

305

137

0.06

South Reef

1 226

1 211

0.48

All Reefs

1 620

1 516

0.23

Kusasalethu

Vcr Reef

2 537

2 434

0.54

All Reefs

2 537

2 434

0.54

Target

Elsburg 927

495

0.41

A Reef

0.41

B Reef

1.18

All Reefs

1 081

600

0.41

Target 1

Elsburg 597

323

0.50

All Reefs

597 323

74 0.50 37

Target 3

Elsburg 330

171

0.18

A Reef

0.41

B Reef

1.18

All Reefs

484 276

50 0.27 13

Masimong

Basal

1 473

1 065

0.50

B Reef

340

305

0.41

All Reefs

1 812

1 369

0.47

Evander

Kimberley

1 194

1 137

1.66

All Reefs

1 194

1 137

1.66

Virginia

(Incl. Unisel & Brand 3)

Basal

2 383

1 978

0.27

Leader

1 320

1 181

0.24

A Reef

249

243

0.42

Middle 269

210

0.26

B Reef

154

151

0.22

All Reefs

4 376

3 763

0.26

Joel

Beatrix

1 451

1 491

0.32

All Reefs

1 451

1 491

0.32

Total Harmony

Basal 6 960

6149

24.00

0.52

12.54

Beatrix 1 451

1491

52.00

0.32

16.78

Leader 1 320

1181

60.00

0.24

14.10

B Reef

887

720

34.00

0.39

13.32

A Reef

347

320

26.00

0.41

10.68

Middle 269

210

49.00

0.26

12.89

Elsburg 927

495

68.00

0.41

27.74

Kimberley 1 588

1442

39.00

0.48

18.74

South Reef

1 226

1211

23.00

0.48

11.02

Vcr 2 537

2434

28.00

0.54

15.21

All Reefs

17 512

15 652

33.00

0.44

Results for the second quarter and six months
ended 31 December 2010

NOTES

Results for the second quarter and six months
ended 31 December 2010

CONTACT DETAILS

HARMONY GOLD MINING COMPANY LIMITED

Corporate Office

Randfontein Office Park
PO Box 2
Randfontein, 1760
South Africa
Corner Main Reef Road and Ward Avenue
Randfontein, 1759
South Africa
Telephone: +27 11 411 2000
Website: http://www.harmony.co.za

Directors

P T Motsepe (Chairman)*
G P Briggs (Chief Executive Officer)
H O Meyer (Financial Director)
H E Mashego (Executive Director)
F F T De Buck* ^ (Lead independent director)

F Abbott*, J A Chissano*

, Dr C Diarra*

†^

K V Dicks*

, Dr D S Lushaba*

, C Markus*

M Motloba*

, C M L Savage*

, A J Wilkens*

* Non-executive

Mozambican

†

US/Mali Citizen

Independent

Investor Relations Team

Marian van der Walt
Executive: Corporate and Investor Relations
Telephone: +27 11 411 2037
Fax:           +27 86 614 0999
Mobile:        +27 82 888 1242
E-mail:        marian@harmony.co.za

Henrika Basterfield
Investor Relations Officer
Telephone: +27 11 411 2314
Fax:           +27 11 692 3879
Mobile:        +27 82 759 1775
E-mail:        henrika@harmony.co.za

Company Secretary

Khanya Maluleke
Telephone: +27 11 411 2019
Fax:           +27 11 411 2070
Mobile:        27 82 767 1082
E-mail:        Khanya.maluleke@harmony.co.za

South African Share Transfer Secretaries

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
16th Floor, 11 Diagonal Street
Johannesburg, 2001
PO Box 4844
Johannesburg, 2000
South Africa
Telephone: +27 86 154 6572
Fax:           +27 86 674 4381

United Kingdom Registrars

Capita Registrars
The Registry
34 Beckenham Road
Bechenham
Kent BR3 4TU
United Kingdom
Telephone: 0871 664 0300 (UK)
(calls cost 10p a minute plus network extras, lines are open
8:30 am to 5:30 pm (Monday to Friday)
or              +44 (0) 20 8639 3399 (calls from overseas)
Fax:           44 (0) 20 8639 2220

ADR Depositary

BNY Mellon
101 Barclay Street
New York, NY 10286
United States of America
Telephone: +1888-BNY-ADRS
Fax:           1 212 571 3050

Sponsor

JP Morgan Equities Limited
1 Fricker Road, corner Hurlingham Road
Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2146
Telephone: +27 11 507 0300
Fax:           +27 11 507 0503

Trading Symbols

JSE Limited: HAR
New York Stock Exchange, Inc: HMY
London Stock Exchange Plc: HRM
Euronext, Brussels: HMY
Berlin Stock Exchange: HAM1

Registration number 1950/038232/06
Incorporated in the Republic of South Africa

ISIN: ZAE 000015228

PRINTED BY INCE (PTY) LTD

W2CF10173

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused

this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: February 7, 2011

Harmony Gold Mining Company Limited

By:

/s/

Hannes Meyer

Name: Hannes Meyer
Title: Financial Director