Harmony Gold Mining Company Limited ("Harmony" or "Company") Incorporated in the Republic of South Africa Registration number 1950/038232/06 JSE share code: HAR NYSE share code: HMY ISIN: ZAE000015228 RESULTS FOR THE THIRD QUARTER FY13 AND NINE MONTHS ENDED 31 MARCH 2013 KEY FEATURES Quarter on quarter - Lowest recorded quarterly LTIFR² - Evander sale transaction completed - 6% decrease in underground grade – after increasing 3 consecutive quarters - Gold production decreased by 15% to 7 699kg (247 529oz) - Headline loss per share* of 47 SA cents (5 US cents) - Operating profit¹ lower at R821 million (US$92 million) - Substantial reduction in services costs, corporate costs and capital expenditure planned - Watershed agreement signed with Kusasalethu labour All figures represent continuing operations unless stated otherwise * Includes discontinued operations ¹ Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the operating profit line in the income statement ² LTIFR = Lost Time Injury Frequency Rate FINANCIAL SUMMARY FOR THE THIRD QUARTER FY13 AND NINE MONTHS ENDED 31 MARCH 2013 9 months 9 months Quarter Quarter Q-on-Q YTD² YTD² March December variance March March Variance 2013# 2012# % 2013# 2012# % – kg 7 699 9 074 (15) 26 786 27 004 (1) Gold produced – oz 247 529 291 734 (15) 861 188 868 230 (1) – R/kg 362 491 310 858 (17) 319 548 273 625 (17) Cash operating costs – US$/oz 1 264 1 115 (13) 1 154 1 112 (4) – kg 7 506 9 614 (22) 26 824 26 849 – Gold sold – oz 241 322 309 097 (22) 862 379 863 247 – Underground grade – g/t 4.50 4.77 (6) 4.60 4.28 7 – R/kg 470 030 479 801 (2) 462 982 419 007 10 Gold price received – US$/oz 1 639 1 722 (5) 1 672 1 703 (2) – R million 821 1 633 (50) 3 863 3 964 (3) Operating profit¹ – US$ million 92 188 (51) 449 519 (13) Basic (loss)/earnings – SAc/s (29) 169 >(100) 262 589 (56) per share* – USc/s (3) 19 >(100) 30 77 (62) – Rm (202) 680 >(100) 1 008 2 460 (59) Headline (loss)/profit* – US$m (23) 78 >(100) 117 322 (64) Headline (loss)/earnings – SAc/s (47) 158 >(100) 234 571 (59) per share* – USc/s (5) 18 >(100) 27 75 (64) Exchange rate – R/US$ 8.92 8.67 3 8.61 7.65 13 # Figures represent continuing operations unless stated otherwise ¹ Operating profit is comparable to the term production profit in the segment report in the financial statements and not to the operating profit line in the income statement * Includes discontinued operations ² YTD: year to date Shareholder information Issued ordinary share capital at 31 March 2013 435 257 691 Issued ordinary share capital at 31 December 2012 435 257 691 Market capitalisation At 31 March 2013 (ZARm) 25 728 At 31 March 2013 (US$m) 2 804 At 31 December 2012 (ZARm) 32 209 At 31 December 2012 (US$m) 3 796 Harmony ordinary share and ADR prices 12-month high (1 April  2012 – 31 March 2013) for ordinary shares 89.00 12-month low  (1 April  2012 – 31 March 2013) for ordinary shares 53.40 12-month high (1 April  2012 – 31 March 2013) for ADRs 10.78 12-month low (1 April  2012 – 31 March 2013) for ADRs 5.94 Free float 100% ADR ratio 1:1 JSE Limited HAR Range for quarter (1 January – 31 March 2013 closing prices) R53.40 – R75.64 Average daily volume for the quarter (1 January – 31 March 2013) 1 580 745 shares Range for quarter (1 October – 31 December 2012 closing prices) R65.20 – R74.05 Average daily volume for the quarter (1 October – 31 December 2012) 1 577 597 shares New York Stock Exchange, Inc including other US trading platforms HMY Range for quarter (1 January – 31 March 2013 closing prices) US$5.94 – US$8.88 Average daily volume for the quarter (1 January – 31 March 2013) 2 423 016 Range for quarter (1 October – 31 December 2012 closing prices) US$7.50 – US$8.96 Average daily volume for the quarter (1 October – 31 December 2012) 2 392 671 Investors' calendar 2013 Q4 FY13 results 14 August 2013# Investor Day 28 August 2013# Q1 FY14 8 November 2013# #These dates may change in future Harmony's Integrated 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 2012 are available on our website: www.harmony.co.za 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 judgement 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 the countries in which we operate; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions; increases or 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 regulations, particularly mining rights and environmental regulations; fluctuations in exchange rates; currency devaluations and other macro-economic monetary policies; and socio-economic instability in the countries in which we operate. Competent person's declaration Harmony reports in terms of the South African Code for the Reporting of Exploration results, Mineral Resources and Ore Reserves (SAMREC). Harmony employs an ore reserve manager at each of its operations who takes responsibility for reporting mineral resources and mineral reserves at his operation. The mineral resources and mineral reserves in this report are based on information compiled by the following competent persons: Reserves and resources South Africa: Jaco Boshoff, Pri Sci Nat, who has 16 years' relevant experience and is registered with the South African Council for Natural Scientific Professions (SACNASP). Reserves and resources PNG: Gregory Job for the Wafi-Golpu and Hidden Valley mineral resources, German Flores for the Golpu mineral reserve and Anton Kruger for the Hidden Valley mineral reserve. Messers Job, Francis and Kruger are corporate members of the Australian Institute of Mining and Metallurgy. All have relevant experience in the type and style of mineralisation for which they are reporting, and are competent persons as defined by the code. These competent persons consent to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mr Boshoff and Mr Job are full-time employees of Harmony Gold Mining Company Limited. Mr Flores and Mr Kruger are full-time employees of Newcrest Mining Limited (Newcrest). Newcrest is Harmony's joint venture partner in the Morobe Mining Joint Venture on the Hidden Valley mine and Wafi-Golpu project. There has been no material changes in the mineral reserves declared as at 30 June 2012. Chief executive officer's review "My message to employees is a simple one – produce safe, profitable gold ounces in line with our company values. Keep your eyes off the gold price and on your plans. We continue to focus on what we can control – production and costs. We knew that the March 2013 quarter may be difficult and our results reaffirmed that we need to do more to meet expectations", said Graham Briggs, chief executive officer of Harmony. 1. SAFETY It is with regret that I report that two people were fatally injured during the quarter. They are John Naile, a contractor at the Saaiplaas demolition site and Rameno Steven Tapolosi, a driller at Masimong. We extend our deepest sympathy to their families and colleagues. All quarter on quarter and year on year safety parameters showed improvement, with some significant safety achievements, which includes the lowest quarterly lost time injury frequency rate of 5.15 in Harmony's history. See Health and Safety below for more details. 2. OPERATIONAL AND FINANCIAL RESULTS Gold production for the March 2013 quarter was 15% lower compared to the December 2012 quarter at 7 699kg, mainly as a result of the temporary closure of Kusasalethu due to safety and security reasons, the damage to the ventilation shaft at Phakisa and a slow start-up at the other operations post the festive season. Cash operating cost in the March 2013 quarter decreased by R30 million when compared to the previous quarter. This was mainly as a result of a decrease in consumables, due to lower volumes, as well as a saving in electricity at Kusasalethu. The rand per kilogram unit cost for the March 2013 quarter increased by 17% to R362 491/kg. The costs are however skewed, as Kusasalethu was not in production during the March 2013 quarter. If we were to exclude Kusasalethu from both the second and the third quarters, the cash cost would have been R322 767/kg (U$1 125/oz) in quarter 3 versus R285 498/kg (US$1 024/oz) in quarter 2 of financial year 2013. Capital expenditure for the March 2013 quarter was R677 million, R189 million less than the December 2012 quarter. 3. EMPLOYEE RELATIONS 3.1 Kusasalethu The temporary closure of Kusasalethu, due to safety and security reasons, was resolved after a watershed agreement was signed with all the unions on 14 February 2013, which facilitated the re-opening of the mine. The process of returning Kusasalethu to production is underway and remains peaceful. A pre-condition for reopening the mine was the acceptance by all employees of various conditions, all broadly relating to employees committing to full compliance with policies and procedures and safe and orderly conduct. These conditions were agreed to by the unions. In terms of the agreement, it was also agreed that each employee would sign a code of conduct to show their individual commitment to ensuring that Kusasalethu is mined in a safe and secure way with full respect for the rule of law. Closing the mine was a difficult and costly decision, but we believe that it has re-established our employer-employee relationship and gave us an opportunity to ensure that the mine is operated in a safe and profitable manner, supported by healthy employee relations. The Association of Mineworkers and Construction Union (AMCU) has gained the majority union status at Kusasalethu, representing close to 60% of the workforce at the mine and as a result, approximately 10% of Harmony's total workforce. 3.2 Wage negotiations It is envisaged that the wage negotiations in the gold sector will start early in June 2013. This is amidst uncertainties due to new role players (companies as well as unions) and union rivalry. Harmony has implemented measures to ensure stable industrial relations, such as engaging unions on the Harmony reality, obtaining agreement on a code of conduct similar to that of Kusasalethu and to continue building strong relationships with both our employees and the unions. 4. BENEFICIATION All of Harmony's South African gold is currently refined and sold by Rand Refinery (Pty) Limited (Rand Refinery). Rand Refinery plays a key role in gold beneficiation. With access to gold within a secure environment, they have established an initiative called the Gold Zone. The aim is for the Gold Zone to become a major hub for precious metal fabrication in South Africa for global export, while at the same time assisting local communities with skills development. Entrepreneurs, start-up businesses, jewellery manufacturers and tourism will all benefit from this initiative in the future. Up to November 2012, Harmony held only 1.8% of the total shares in Rand Refinery, even though all our South African gold production is refined there. Rand Refinery has been and will continue to have good returns and is thus a good investment. We therefore decided to increase our holding in Rand Refinery to 9%, not only from an investment point of view, but also from a beneficiation perspective. 5. WAFI-GOLPU The drill fleet at Wafi-Golpu in Papua New Guinea (PNG) achieved 14 664m for the quarter – the best quarterly drill production ever recorded by the project. The gold recovery test work program determined a material improvement in both gold and copper recoveries. The drilling has increased and improved the orebody knowledge, showing an increase in the content of both gold and copper. In the current gold market climate, the project team was given a revised project development brief, which is aimed at optimising capital cost and improving the risk profile to align with owner and investor expectations, prior to starting with the feasibility study phase. The revised approach presents an opportunity to reconsider a new strategic approach for the project, possibly a staged approach. The project team is in the process of defining the scope, cost and schedule to complete an optimisation study. 6. PROPOSED CHANGE IN MOROBE MINING JOINT VENTURE (MMJV) MANAGEMENT STRUCTURE (Harmony holds 50%) The MMJV has been in operation since August 2008, based on a management model agreed to as part of the joint venture agreement with Newcrest Limited (Newcrest). At that stage, in-country activity was mainly focused on the Hidden Valley mine development, with a limited exploration program that incorporated Wafi-Golpu. The management structure consisted of various general managers in the business reporting through various operating committees to the joint venture committee, which had representatives of Harmony and Newcrest as members. The scope of the business has dramatically changed since then. With the Hidden Valley mine in operation, the world-class Golpu project on the development track and a significant exploration portfolio, a rethink of an appropriate management structure for the MMJV was required. It was agreed to establish a unified and empowered management team responsible for managing all MMJV activities under the direction of a chief executive officer who is responsible to the Operating Committee and ultimately the Joint Venture Committee. The MMJV (incorporating Hidden Valley operations, Wafi-Golpu project, Morobe exploration and related support services) will be managed by an empowered unified in-country management team led by its own chief executive officer as one integrated, independent Papua New Guinean business. This business will be supported by an integrated centralised support service. 7. EVANDER TRANSACTION The agreement in terms of which Harmony disposed of its 100% interest in Evander Gold Mines Limited ("Evander") to Pan African Resources Plc ("PAR") became unconditional on 14 February 2013 and closed on 28  February 2013. Harmony is in receipt of the full consideration price. 8. DOWNTURN IN THE GOLD PRICE The rand gold price received during the March 2013 quarter decreased by 2% to R470 030/kg (R479 801/kg in the December 2012 quarter). The rand average weakened by 3%, from R8.67/US$ in the December 2012 quarter to R8.92/US$ in the March 2013 quarter. The US dollar gold price decreased by 5% from US$1 722/oz to US$1 639/oz in the quarter under review. However, since the end of the March 2013 quarter, the gold price has been fluctuating dramatically. Harmony is a high cost producer with our total all-in cost (cash costs and capital costs) for the first six months of financial year 2013 being R393  354/kg (or U$1 446/oz), excluding exploration and corporate costs. We have therefore initiated action to reduce costs and capital using a planned gold price of R400 000/kg. Immediate actions to reduce costs were implemented during April 2013. Some of the actions include: reducing services and corporate cost, various labour initiatives and renewing/renegotiating all external consultants and supply contracts. Our aim is to reduce services and corporate costs in South Africa by R400 million and overall capital expenditure in both South Africa and PNG by R1.4 billion for the financial year 2014. Larger cost-cutting measures such as shaft or mine closures are not envisaged at present. Hidden Valley in PNG has been underperforming. Three areas of improvement are being focused on to return the mine to profitability: 1. the primary crusher is being replaced, which will allow full use of the overland conveyor, this will result in a huge cost saving, as ore will no longer have to be hauled to the plant and will also enable the ramp-up of mining and improved mining grades; 2. improvement projects in the plant and improvement of mobile equipment; and 3. restructuring the operations and removing 20% or more of the cost and returning the mine to profitability. 9. CONCLUSION We cannot influence or predict the future price of gold. For the past year the high gold price has assisted us in producing strong margins. With the gold price decreasing to levels close to $1 400/oz, it means that we have to do more to improve production while reducing costs at the same time. We are using our annual budgeting sessions, which takes place from April to June every year, to find ways of doing just that. Harmony has been able to fund its capital, exploration and dividends while maintaining its balance sheet strength. Our aim is to continue to focus on strengthening our earnings per share and pay dividends. Graham Briggs Chief executive officer Health and Safety At Harmony we are dedicated to providing and maintaining a safe and healthy work environment for our employees, who deserve to work in the safest possible environment. We regard their safety, health and well- being as a core value of our business success. Safety is Harmony's first priority and it is in no way compromised. Despite our best efforts to curb fatalities, it is with deep regret that we report two fatalities which occurred in two separate incidences at the Saaiplaas demolition site and Masimong in South Africa. We continually pursue improvements in health and safety by regularly reviewing our policies, setting objectives and targets and providing the resources to uphold and advance our health and safety performance. All safety parameters showed improvements quarter on quarter and several operations have recorded significant safety achievements. Fall of ground free shifts have increased and we have achieved a number of consecutive injury free days during the quarter. The year to date Fatality Injury Frequency Rate (FIFR) improved by 25% from 0.16 to 0.12 when compared to the previous year and by 23% quarter on quarter to 0.10 (from 0.13 in the preceding quarter).  The Lost Time Frequency Rate (LTIFR) for the year to date improved by 22% when compared to the actual figure in the previous year (from 5.73 to 5.15). The quarter on quarter LTIFR improved by 10% (from 5.73 to 5.15) – the lowest recorded quarterly rate in Harmony's history. During the quarter, high level safety audits were conducted at Bambanani, Steyn 2 and Masimong by the chief executive officer and various other executives. These on-going audits by the chief executive officer and his executive team illustrate the commitment to safety at all levels. Other significant achievements during the quarter were: - Masimong and Free State Metallurgy achieved 1 500 000 fatality free shifts respectively; - Target 3 achieved 1 000 000 fatality free shifts; - Doornkop achieved 6 000 000 fall of ground fatality free shifts; and - Bambanani and Target 3 achieved 1 000 000 fall of ground fatality free shifts respectively. Financial overview Net loss The net loss for the March 2013 quarter was R124 million compared to a net profit of R731 million in the previous quarter. This was as a result of a 22% decrease in gold sold and 2% decrease in the rand gold price received in the March 2013 quarter. The decrease in gold sold was due to a 15% decrease in gold production as well as an increase in gold inventory. Other expenses – net Included in other expenses – net in the March 2013 quarter, is a foreign exchange loss of R150 million (December 2012: R35  million) on the US$  denominated loan, resulting from the Rand weakening from R8.50/$1 to R9.22/$1 during the quarter. Impairment of investments The impairment of investments amounting to R39 million in the March 2013 quarter relates to the reduction in the fair market value on the investment in Witwatersrand Consolidated Gold Resources Limited (Wits Gold). Discontinued operations In February 2013, following the fulfilment of all conditions precedent, the Evander sale to Pan African Resources plc was completed. Profit from discontinued operations includes the group profit of R102 million recorded on the sale of Evander. The remaining R41 million represents profits for Evander for the two months ended February 2013. Loss per share Total basic loss per share was 29 SA cents per share in the March 2013 quarter compared with earnings of 169 SA cents in the December 2012 quarter. Total headline loss was 47 SA cents per share (December 2012: earnings of 158 SA cents). Investment in financial assets Investment in financial assets decreased from R159 million to R139  million at 31 March 2013, following the downward fair value movement in the investment in Wits Gold. This was offset by the purchase of additional shares in Rand Refinery for R33 million. Borrowings and cash Borrowings increased by R152 million to R2 525 million due to the effect of translating the US dollar denominated borrowings into Rand. Cash and cash equivalents increased by R588 million to R3 099 million at 31 March 2013. This was mainly as a result of the receipt of proceeds of R1 264 million on the sale of Evander. The net surplus cash position of the group improved to R574 million. Employee Share Option Plan (ESOP) shares vesting In August 2012, qualifying employees were awarded Scheme Shares (SS) and Share Appreciation Rights (SARs). The vesting of the first tranche of SS and SARs in the ESOP took place at the end of March 2013 and the payments to all eligible employees were made in April 2013. All qualifying employees received a minimum of R1 912 before tax, amounting to a total of R58 million. Results for the third quarter FY13 and nine months ended 31 March 2013 CONDENSED CONSOLIDATED INCOME STATEMENTS (Rand) Quarter ended Nine months ended Year ended 31 March 31 December 31 March 31 March 31 March 30 June 2013 2012 2012 2013 2012 2012 Figures in million Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Continuing operations Revenue 3 528 4 613 3 222 12 419 11 235 15 169 Cost of sales 2 (3 283) (3 524) (2 721) (10 295) (8 811) (12 137) Production costs (2 707) (2 980) (2 273) (8 556) (7 271) (9 911) Amortisation and depreciation (459) (501) (431) (1 441) (1 373) (1 921) Other items (117) (43) (17) (298) (167) (305) Gross profit 245 1 089 501 2 124 2 424 3 032 Corporate, administration and other expenditure (121) (111) (96) (338) (261) (352) Social investment expenditure (25) (25) (22) (70) (50) (72) Exploration expenditure (157) (160) (143) (454) (339) (500) Profit on sale of property, plant and equipment 4 15 69 – 139 28 63 Other (expenses)/income – net 5 (138) (47) (5) (182) 24 (50) Operating (loss)/profit (181) 815 235 1 219 1 826 2 121 Reversal of impairment of investment in associate – – 6 – 56 56 Impairment of investments 6 (39) – – (88) – (144) Net gain on financial instruments 15 92 36 181 73 86 Investment income 47 38 25 118 64 97 Finance cost (65) (75) (65) (198) (214) (286) (Loss)/profit before taxation (223) 870 237 1 232 1 805 1 930 Taxation (44) (221) 636 (416) 323 123 Normal taxation (124) (115) (16) (349) (115) (199) Deferred taxation 80 (106) 652 (67) 438 322 Net (loss)/profit from continuing operations (267) 649 873 816 2 128 2 053 Discontinued operations Profit from discontinued operations 7 143 82 141 314 410 592 Net (loss)/profit for the period (124) 731 1 014 1 130 2 538 2 645 Attributable to: Owners of the parent (124) 731 1 014 1 130 2 538 2 645 (Loss)/earnings per ordinary share (cents) 8 (Loss)/earnings from continuing operations (62) 150 202 189 494 477 Earnings from discontinued operations 33 19 33 73 95 137 Total (loss)/earnings (29) 169 235 262 589 614 Diluted (loss)/earnings per ordinary share (cents) 8 (Loss)/earnings from continuing operations (62) 150 202 188 492 476 Earnings from discontinued operations 33 19 32 73 95 136 Total (loss)/diluted earnings (29) 169 234 261 587 612 The accompanying notes are an integral part of these condensed consolidated financial statements. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Rand) Quarter ended Nine months ended Year ended 31 March 31 December 31 March 31 March 31 March 30 June 2013 2012 2012 2013 2012 2012 Figures in million Note (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Net (loss)/profit for the period (124) 731 1 014 1 130 2 538 2 645 Other comprehensive income/(loss) for the period, net of income tax 510 197 (153) 733 981 1 587 Foreign exchange translation 523 174 (157) 723 979 1 485 (Loss)/gain on fair value movement of available-for-sale investments 6 (52) 23 4 (29) 2 (42) Impairment of available-for-sale investments recognised in profit or loss 6 39 – – 39 – 144 Total comprehensive income for the period 386 928 861 1 863 3 519 4 232 Attributable to: Owners of the parent 386 928 861 1 863 3 519 4 232 The accompanying notes are an integral part of these condensed consolidated financial statements. All items in Other comprehensive income will be reclassified subsequently to profit or loss when specific conditions are met. The condensed consolidated financial statements have been prepared by Harmony Gold Mining Company Limited's corporate reporting team headed by Mr Herman Perry, supervised by the financial director, Mr Frank Abbott. They have been approved by the Board of Harmony Gold Mining Company Limited. CONDENSED CONSOLIDATED BALANCE SHEETS (Rand) At At At At 31 March 31 December 30 June 31 March 2013 2012 2012 2012 Figures in million Notes (Unaudited) (Audited) (Unaudited) ASSETS Non-current assets Property, plant and equipment 34 911 34 028 32 853 31 949 Intangible assets 2 190 2 192 2 196 2 194 Restricted cash 38 37 36 30 Restricted investments 2 050 2 020 1 842 1 808 Deferred tax assets 652 554 486 1 042 Investments in financial assets 9 139 159 146 187 Inventories 57 57 58 165 Trade and other receivables 6 13 28 35 Total non-current assets 40 043 39 060 37 645 37 410 Current assets Inventories 1 206 1 085 996 1 086 Trade and other receivables 1 482 1 292 1 245 1 259 Income and mining taxes 3 – 118 142 Cash and cash equivalents 3 099 2 511 1 773 1 427 5 790 4 888 4 132 3 914 Assets of disposal groups classified as held for sale 7 – 1 822 1 423 1 326 Total current assets 5 790 6 710 5 555 5 240 Total assets 45 833 45 770 43 200 42 650 EQUITY AND LIABILITIES Share capital and reserves Share capital 28 331 28 331 28 331 28 329 Other reserves 3 392 2 797 2 444 1 815 Retained earnings 4 002 4 342 3 307 3 200 Total equity 35 725 35 470 34 082 33 344 Non-current liabilities Deferred tax liabilities 3 244 3 270 3 106 3 568 Provision for environmental rehabilitation 1 961 1 912 1 865 1 905 Retirement benefit obligation 188 184 177 177 Other provisions 48 40 30 4 Borrowings 10 2 238 2 072 1 503 1 277 Total non-current liabilities 7 679 7 478 6 681 6 931 Current liabilities Borrowings 10 287 301 313 318 Income and mining taxes 92 16 1 7 Trade and other payables 2 050 2 050 1 747 1 543 2 429 2 367 2 061 1 868 Liabilities of disposal groups classified as held for sale 7 – 455 376 507 Total current liabilities 2 429 2 822 2 437 2 375 Total equity and liabilities 45 833 45 770 43 200 42 650 The accompanying notes are an integral part of these condensed consolidated financial statements. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Rand) (Unaudited) for the nine months ended 31 March 2013 Share Other Retained Figures in million capital reserves earnings Total Balance – 30 June 2012 28 331 2 444 3 307 34 082 Share-based payments – 215 – 215 Net profit for the period – – 1 130 1 130 Other comprehensive income for the period – 733 – 733 Dividends paid ¹ – – (435) (435) Balance – 31 March 2013 28 331 3 392 4 002 35 725 Balance – 30 June 2011 28 305 762 1 093 30 160 Issue of shares 24 – – 24 Share-based payments – 72 – 72 Net profit for the period – – 2 538 2 538 Other comprehensive income for the period – 981 – 981 Dividends paid ² – – (431) (431) Balance – 31 March 2012 28 329 1 815 3 200 33 344 1. Dividend of 50 SA cents declared on 13 August 2012 and 50 SA cents on 1 February 2013 2. Dividend of 60 SA cents declared on 12 August 2011 and 40 SA cents on 2 February 2012 The accompanying notes are an integral part of these condensed consolidated financial statements. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Rand) Quarter ended Nine month hs ended Year ended 31 March 31 December 31 March 31 March 31 March 30 June 2013 2012 2012 2013 2012 2012 Figures in million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Cash flow from operating activities Cash generated by operations 204 1 392 682 2 933 3 340 4 551 Interest and dividends received 34 30 32 90 60 80 Interest paid (27) (29) (26) (85) (103) (141) Income and mining taxes (paid)/refunded (70) (221) 35 (183) (114) (277) Cash generated by operating activities 141 1 172 723 2 755 3 183 4 213 Cash flow from investing activities Restricted cash transferred from/(to) disposal group 252 (90) – – – – Proceeds on disposal of Evander 1 264 – – 1 264 – – Proceeds on disposal of investment in associate – – 193 – 193 222 Proceeds on disposal of Evander 6 and Twistdraai – – – – – 125 Proceeds on disposal of Merriespruit South – 61 – 61 – – Purchase of investments in financial assets (33) (39) – (72) – – Other investing activities 3 (6) (33) (3) (30) (85) Net additions to property, plant and equipment(1) (835) (1 047) (740) (2 775) (2 187) (3 140) Cash generated/(utilised) by investing activities 651 (1 121) (580) (1 525) (2 024) (2 878) Cash flow from financing activities Borrowings raised – 348 302 678 1 101 1 443 Borrowings repaid (4) (164) (17) (177) (1 087) (1 248) Ordinary shares issued - net of expenses – – 3 – 23 26 Dividends paid (217) – (173) (435) (431) (431) Cash (utilised)/generated by financing activities (221) 184 115 66 (394) (210) Foreign currency translation adjustments 17 10 (36) 30 (31) (45) Net increase in cash and cash equivalents 588 245 222 1 326 734 1 080 Cash and cash equivalents - beginning of period 2 511 2 266 1 205 1 773 693 693 Cash and cash equivalents - end of period 3 099 2 511 1 427 3 099 1 427 1 773 1. Includes capital expenditure for Wafi-Golpu and other international projects of R148 million in the March 2013 quarter (December 2012: R124 million) (March 2012: R78 million) and R403 million in the nine months ended 31 March 2013 (March 2012: R192 million) The accompanying notes are an integral part of these condensed consolidated financial statements. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS for the period ended 31 March 2013 (Rand) 1. Accounting policies Basis of accounting The condensed consolidated financial statements for the nine months ended 31 March 2013 have been prepared in accordance with IAS 34, Interim Financial Reporting, JSE Listings 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 2012, 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. 2. Cost of sales Quarter ended Nine months ended Year ended 31 March 31 December 31 March 31 March 31 March 30 June 2013 2012 2012 2013 2012 2012 Figures in million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Production costs – excluding royalty 2 658 2 912 2 244 8 384 7 166 9 791 Royalty expense 49 68 29 172 105 120 Amortisation and depreciation 459 501 431 1 441 1 373 1 921 Reversal of impairment of assets – – – – – (60) Rehabilitation expenditure/(credit) 10 (1) (43) 16 (37) (17) Care and maintenance cost of restructured shafts 16 16 20 52 69 88 Employment termination and restructuring costs1 – – 19 7 70 81 Share-based payments2 95 21 21 221 66 87 Other (4) 7 – 2 (1) 126 Total cost of sales 3 283 3 524 2 721 10 295 8 811 12 137 1. The amounts for the 2012 financial year relates to restructuring at the Bambanani shaft 2. Refer to note 3 for details 3. Share-based payments This includes the cost relating to the new Employee Share Ownership Plan (ESOP) awards that were granted in August 2012. In terms of the ESOP rules, all employees other than management were awarded a minimum of 100 Scheme Shares and 200 Share Appreciation Rights (SARs), with employees with service longer than ten years receiving an additional ten percent. Both the Scheme Shares and SARs vest in five equal portions on each anniversary of the award. In addition these employees qualify for an additional cash bonus under the SARs in the event that the share price growth is less than R18 per share. The effect of the bonus puts the employees in the position they would have been in had the share price increased by R18 per share since issue date. Harmony issued 3.5 million shares to the Tlhakanelo Share Trust on 31 August 2012. In addition, 6 817 880 SARs were issued. In terms of IFRS 2, Share-based Payment, the SARs includes an equity-settled portion as well as a cash-settled portion related to the cash bonus. The cash- settled portion has been recognised in the balance sheet, the fair value of which will be re-measured at each reporting date. At the annual general meeting on 28 November 2012, the shareholders authorised the acceleration of the vesting from August to March each year. During the March 2013 quarter, the first portion of the Scheme Shares and SARs awarded in August 2012 vested, resulting in all qualifying employees receiving a minimum of R1 912 before tax, amounting to a total of R58 million paid in April 2013. During March 2013, new qualifying employees who have not previously received an offer were awarded 80 Scheme Shares and 160 SARs which will vest in four equal portions on each anniversary of the award. A total of 97 040 Scheme Shares and 194 080 SARs were issued by the Tlhakanelo Share Trust. 4. Profit on sale of property, plant and equipment During December 2012, the transaction for the sale of the Merriespruit South mining right to Witwatersrand Consolidated Gold Resources Limited (Wits Gold) was completed, resulting in a profit of R60 million. 5. Other expenses – net Included in the March 2013 quarter is a foreign exchange loss of R150 million (December 2012: R35 million) on the US dollar denominated loan. 6. Impairment of investments A decline in the fair value of the investment in Witwatersrand Consolidated Gold Resource Limited (Wits Gold) during the March 2013 quarter resulted in a loss of R52 million. This was offset against the fair value increase that was recognised in the fair value reserve during the December 2012 quarter. The net cumulative loss of R39 million was reclassified to the income statement. 7. Disposal groups classified as held for sale and discontinued operations Evander Gold Mines Limited Harmony entered into an agreement to sell its 100% interest in Evander Gold Mines Limited (Evander) to a wholly owned subsidiary of Pan African Resources Plc for R1.5 billion, less certain distributions, during May 2012. On 14 February 2013 Harmony received the necessary consent of the Minister of Mineral Resources to transfer the interest in accordance with section 11 of the Mineral and Petroleum Resources Development Act, the last remaining condition precedent. The transaction was completed on 28 February 2013. In terms of the agreement Harmony received a distribution of R210 million and a purchase consideration of R1 314 million. A group profit of R102 million was recorded in the March 2013 quarter. 8. Earnings and net asset value per share Quarter ended Nine months ended Year ended 31 March 31 December 31 March 31 March 31 March 30 June 2013 2012 2012 2013 2012 2012 Figures in million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Weighted average number of shares (million) 431.8 431.6 431.3 431.6 430.6 430.8 Weighted average number of diluted shares (million) 432.8 432.6 432.8 432.8 432.2 432.0 Total (loss)/earnings per share (cents): Basic (loss)/earnings (29) 169 235 262 589 614 Diluted (loss)/earnings (29) 169 234 261 587 612 Headline (loss)/earnings (47) 158 234 234 571 565 – from continuing operations (56) 139 201 185 477 465 – from discontinued operations 9 19 33 49 94 100 Diluted headline (loss)/earnings (47) 157 233 233 569 563 – from continuing operations (56) 138 200 184 475 463 – from discontinued operations 9 19 33 49 94 100 Figures in million Reconciliation of headline (loss)/earnings: Continuing operations Net (loss)/profit (267) 649 873 816 2 128 2 053 Adjusted for: Reversal of impairment of investment in associate* – – (6) – (55) (56) Impairment of investments* 39 – – 88 – 144 Reversal of impairment of assets – – – – – (60) Taxation effect on reversal of impairment of assets – – – – – (34) Profit on sale of property, plant and equipment (15) (69) – (139) (28) (63) Taxation effect of profit on sale of property, plant and equipment – 18 (1) 31 7 16 Headline (loss)/earnings (243) 598 866 796 2 052 2 000 Discontinued operations Net profit 143 82 141 314 410 592 Adjusted for: Profit on sale of property, plant and equipment – – – – (2) (232) Taxation effect of profit on sale of property, plant and equipment – – – – – 72 Profit on sale of investment in subsidiary* (102) – – (102) – – Headline earnings 41 82 141 212 408 432 Total headline (loss)/earnings (202) 680 1 007 1 008 2 460 2 432 * There is no taxation effect on these items. Net asset value per share At At At At 31 March 31 December 30 June 31 March 2013 2012 2012 2012 (Unaudited) (Audited) (Unaudited) Number of shares in issue 435 257 691 435 257 691 431 564 236 431 471 444 Net asset value per share (cents) 8 208 8 150 7 897 7 728 9. Investments in financial assets During the March 2013 quarter, an additional 3.25% interest in Rand Refinery was purchased for R33 million in addition to the 3.9% interest purchased for R39 million during the December 2012 quarter. The investment is classified as an available-for-sale investment and subsequent changes in fair value will be recorded in reserves. 10. Borrowings The Nedbank revolving credit facility was repaid in full during the December 2011 quarter and the full R850 million facility is available until December 2013. The balance on Nedbank term facilities at the end of March 2013 quarter is R610 million. Two drawdowns of US$40 million each (R330 million and R348 million) were made from the US$300 million syndicated revolving credit facility during the September and December 2012 quarters, respectively. This takes the drawn level to US$210 million. The facility is repayable by September 2015. The weakening of the Rand against the US dollar resulted in a foreign exchange loss of R150 million being recorded against the borrowings balance in the March 2013 quarter. The effect of foreign exchange changes for the nine months totals a loss of R190 million. 11. Commitments and contingencies At At At At 31 March 31 December 30 June 31 March 2013 2012 2012 2012 Figures in million (Unaudited) (Audited) (Unaudited) Capital expenditure commitments: Contracts for capital expenditure 594 576 519 391 Authorised by the directors but not contracted for 958 1 572 2 257 3 032 1 552 2 148 2 776 3 423 This expenditure will be financed from existing resources and, where appropriate, borrowings. Contingent liability For a detailed disclosure on contingent liabilities refer to Harmony's annual report for the financial year ended 30 June 2012, available on the group's website (www.harmony.co.za). There were no significant changes in contingencies since 30 June 2012, with the exception of the items discussed below. Following the disclosure made in Harmony's annual report for the financial year ended 30 June 2012 relating to silicosis, Harmony and its subsidiaries, alongside other mining companies operating in South Africa (other respondents) were served with another application to certify a class during January 2013. Harmony, its subsidiaries and other respondents are awaiting a consolidated and supplemented certification application of the two separate applications served. 12. Subsequent events There are no subsequent events to report. 13. Segment report Refer below for the segment report. 14. Reconciliation of segment information to consolidated income statements Nine months ended 31 March 31 March 2013 2012 Figures in million (Unaudited) (Unaudited) The "Reconciliation of segment information to consolidated income statements" 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 and segment report: Reconciliation of production profit to gross profit Total segment revenue 13 293 12 341 Total segment production costs (9 089) (7 834) Production profit per segment report 4 204 4 507 Discontinued operations (341) (543) Production profit from continuing operations 3 863 3 964 Cost of sales items, other than production costs and royalty expense (1 739) (1 540) Gross profit as per income statements * 2 124 2 424 * The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that. 15. Related parties Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, including any director (whether executive or otherwise) of the group. During the September 2012 quarter, Harmony shares were purchased by certain directors as set out below: Graham Briggs 14 347 shares Frank Abbott 73 900 shares Ken Dicks 12 500 shares Segment report (Rand/Metric) (Unaudited) for the nine months ended 31 March 2013 Revenue Production cost Production profit/(loss) Capital expenditure# Kilograms produced Tonnes milled 31 March 31 March 31 March 31 March 31 March 31 March 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 R million R million R million R million kg t’000 Continuing operations South Africa Underground Kusasalethu 1 037 1 678 1 186 1 072 (149) 606 272 312 2 052 4 043 499 860 Doornkop 1 279 939 786 626 493 313 222 201 2 772 2 263 766 667 Phakisa 860 753 730 585 130 168 242 227 1 851 1 800 379 368 Tshepong 1 547 1 694 1 089 935 458 759 227 199 3 339 4 035 829 916 Masimong 1 290 1 032 740 635 550 397 124 166 2 777 2 466 658 702 Target 1 1 385 1 157 675 608 710 549 262 187 3 070 2 822 538 608 Bambanani 626 421 448 480 178 (59) 92 212 1 348 1 068 144 163 Joel 1 152 773 487 406 665 367 116 42 2 529 1 873 460 410 Unisel 647 479 429 366 218 113 57 51 1 386 1 134 332 282 Target 3 546 340 379 308 167 32 104 58 1 207 833 250 236 Surface All other surface operations 1 152 1 074 747 678 405 396 222 96 2 533 2 569 7 365 6 997 Total South Africa 11 521 10 340 7 696 6 699 3 825 3 641 1 940 1 751 24 864 24 906 12 220 12 209 International Hidden Valley 898 895 860 572 38 323 368 175 1 922 2 098 1 387 1 307 Total international 898 895 860 572 38 323 368 175 1 922 2 098 1 387 1 307 Total continuing operations 12 419 11 235 8 556 7 271 3 863 3 964 2 308 1 926 26 786 27 004 13 607 13 516 Discontinued operations Evander 874 1 106 533 563 341 543 140 131 1 955 2 674 390 491 Total discontinued operations 874 1 106 533 563 341 543 140 131 1 955 2 674 390 491 Total operations 13 293 12 341 9 089 7 834 4 204 4 507 2 448 2 057 28 741 29 678 13 997 14 007 Reconciliation of the segment information to the consolidated income statement (refer to note 14) (874) (1 106) (533) (563) 12 419 11 235 8 556 7 271 # Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R403 million (2012: R192 million). CONTACT DETAILS Corporate Office Randfontein Office Park PO Box 2, Randfontein, 1760, South Africa Corner Main Reef Road/Ward Avenue, Randfontein, 1759, South Africa Telephone: +27 11 411 2000 Website: www.harmony.co.za Directors P T Motsepe* Chairman M Motloba*^ Deputy Chairman G P Briggs Chief Executive Officer F Abbott Financial Director H E Mashego Executive Director F F T De Buck*^ Lead independent director J A Chissano*(1)^, K V Dicks*^, Dr D S Lushaba*^, C Markus*^, M Msimang*^, J Wetton*^, A J Wilkens* * Non-executive ^ Independent (1) Mozambican Investor relations team Henrika Basterfield Investor Relations Manager Telephone: +27 11 411 2314 Fax: +27 11 692 3879 Mobile: +27 82 759 1775 E-mail: henrika@harmony.co.za 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 Company Secretary Riana Bisschoff Telephone: +27 11 411 6020 Mobile: +27 83 629 4706 E-mail: riana.bisschoff@harmony.co.za South African Share Transfer Secretaries Link Market Services South Africa (Proprietary) Limited (Registration number 2000/007239/07) 13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 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, Beckenham Kent BR3 4TU, United Kingdom Telephone: 0871 664 0300 (UK) (calls cost 10p a minute plus network extras, lines are open 09:00 am – 17:30 pm, Monday to Friday) or +44 (0) 20 8639 3399 (calls from overseas) E-mail: shareholder.services@capitaregistrars.com ADR Depositary Deutsche Bank Trust Company Americas c/o American Stock Transfer and Trust Company, Peck Slip Station PO Box 2050, New York, NY 10272-2050 E-mail queries: db@amstock.com Toll Free: +1-800-937-5449 Intl: +1-718-921-8137 Fax: +1-718-921-8334 Sponsor JP Morgan Equities Limited 1 Fricker Road, corner Hurlingham Road, Illovo, Johannesburg, 2196 Private Bag X9936, Sandton, 2146, South Africa Telephone: +27 11 507 0300 Fax: +27 11 507 0503 Trading Symbols JSE Limited: HAR New York Stock Exchange, Inc: HMY Euronext, Brussels: HMY Berlin Stock Exchange: HAM1 Registration number 1950/038232/06 Incorporated in the Republic of South Africa ISIN ZAE000015228