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 04 February 2016

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

RESULTS

FOR THE SECOND QUARTER

FY16 AND SIX MONTHS ENDED

31 DECEMBER 2015

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

KEY FEATURES

Quarter on quarter

Safety parameters improving; working towards zero harm
7% increase in underground recovered grade
2% increase in production
AISC down by 7% at R434 834/kg (down 15% to US$950/oz)
84% increase in production profit to R1.29 billion (up 68% to US$91 million)
Headline earnings of R74 million (US$5 million)
Net debt reduction of R127 million (US$29 million)

Q2 FY16

HARMONY’S ANNUAL REPORTS

Harmony’s Integrated Annual Report and the Form 20-F filed with the United States’ Securities and Exchange Commission

for the financial year ended 30 June 2015 are available on our website at

http://www.harmony.co.za/investors/reporting/annual-reports.

FORWARD-LOOKING STATEMENTS

PRIVATE SECURITIES LITIGATION REFORM ACT

Safe Harbour Statement

This report contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities

Act of 1933, as amended, with respect to our 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. These include all statements other than statements of historical fact, including, without limitation, any statements proceeded by,

followed by, or that include the words “targets”, “believes”, “expects”, “aims” “intends” “will”, “may”, “anticipates”, “would”, “should”, “could”, “estimates”, “forecast”, “predict”, “continue”

or similar expressions or the negative thereof.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, wherever they may occur in this report and the exhibits to this

report, are essentially estimates reflecting the best judgement of our senior management 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 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, Papua New Guinea, Australia and elsewhere, estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices, estimates of future gold and

other metals production and sales, estimates of future cash costs, estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices, statements regarding future debt

repayments, estimates of future capital expenditures, the success of our business strategy, development activities and other initiatives, estimates of reserves statements regarding future exploration

results and the replacement of reserves, the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, fluctuations in the market price of gold, the

occurrence of hazards associated with underground and surface gold mining, the occurrence of labour disruptions, power cost increases as well as power stoppages, fluctuations and usage constraints,

supply chain shortages and increases in the prices of production imports, availability, terms and deployment of capital, changes in government regulation, particularly mining rights and environmental

regulation, fluctuations in exchange rates, the adequacy of the Group’s insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea and other countries in

which we operate.
For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the Company’s latest Integrated Annual Report on Form 20-F which is on

file with the Securities and Exchange Commission, as well as the Company’s other Securities and Exchange Commission filings. The Company undertakes no obligation to update publicly or release

any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unanticipated events, except as required by law.

Q-on-Q

Quarter

variance

Dec-15

Sep-15

Gold produced

– kg

8 929

8 752

– oz

287 074

281 385

Cash operating costs

– R/kg

360 153

384 810

– US$/oz

787

921

Gold sold

– kg

8 999

8 743

– oz

289 323

281 094

Underground grade

– g/t

5.33

4.99

Total costs and capital

– R/kg

417 368

443 730

– US$/oz

912

1 062

All-in sustaining costs

– R/kg

434 834

466 061

– US$/oz

950

1 115

Gold price received

– R/kg

507 490

473 567

– US$/oz

1 109

1 133

(2)

Production profit

– R million

1 292

701

– US$ million

Basic profit/(loss) per share

– SAc/s

(120)

>100

– USc/s

(9)

>100

Headline earnings/(loss)

– Rm

(523)

>100

– US$m

(40)

>100

Headline earnings/(loss) per share

– SAc/s

(120)

>100

– USc/s

(9)

>100

Exchange rate

– R/US$

14.24

13.00

CONTACT DETAILS

CORPORATE OFFICE

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

DIRECTORS

P T Motsepe* Chairman
M Motloba*^ Deputy chairman
P W Steenkamp Chief executive officer
F Abbott Financial director
H E Mashego Executive director
F F T De Buck*^ Lead independent director
J A Chissano*

^, K V Dicks*^, Dr D S S Lushaba*^,

C Markus*^, M Msimang*^, K T Nondumo*^,
V P Pillay *^, J L Wetton*^, A J Wilkens*
* Non-executive
^ Independent

Mozambican

INVESTOR RELATIONS TEAM

Email: HarmonyIR@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za

Henrika Ninham
Investor Relations Manager
Tel: +27 (0)11 411 2314
Mobile: +27 (0)82 759 1775
Email: henrika@harmony.co.za

COMPANY SECRETARY

Riana Bisschoff
Tel: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
Email: 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
Tel: +27 86 154 6572
Fax: +27 86 674 2450
Email: meetfax@linkmarketservices.co.za

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
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334

ADR: American Depository Receipts

SPONSOR

J.P. Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo
Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
Tel: +27 11 507 0300
Fax: +27 11 507 0503

TRADING SYMBOLS

JSE Limited: HAR
New York Stock Exchange, Inc: HMY
Berlin Stock Exchange: HAM1

REGISTRATION NUMBER

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

ISIN

ZAE000015228

COMPETENT PERSON’S DECLARATION

In South Africa, Harmony employs an ore reserve manager at
each of its operations who takes responsibility for the compilation
and reporting of mineral resources and mineral reserves at
their operations. In Papua New Guinea, competent persons are
appointed for the mineral resources and mineral reserves for
specific projects and operations.

These competent persons, who are full-time employees of Harmony,
consent to the inclusion in the report of the matters based on the
information in the form and context in which it appears.

• Resources and reserves of South Africa:
Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM,
MGSSA, who has 20 years’ relevant experience, is registered
with the South African Council for Natural Scientific Professions
(SACNASP) and is a member of the South African Institute of
Mining and Metallurgy (SAIMM).

Mr Boshoff is Harmony’s Lead Competent Person.

• Resources and reserves of Papua New Guinea:

Gregory Job, BSc, MSc, who has 27 years’ relevant experience and
is a member of the Australian Institute of Mining and Metallurgy
(AusIMM).

For more information on Harmony’s reserves and resources as
at 30 June 2015, please refer to https://www.harmony.co.za/
investors/reporting/annual-reports.

Mineral resource and reserve information as at 30 June 2015
has not changed.

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

CONTENTS

Contact details and competent person’s declaration

Message from the chief executive officer

Operating results – quarter on quarter (Rand/Metric)
(US$/Imperial)

Condensed consolidated income statements (Rand)

Condensed consolidated statements of
comprehensive income (Rand)

Condensed consolidated statements of changes in
equity (Rand)

Condensed consolidated balance sheets (Rand)

Condensed consolidated cash flow statements (Rand)

Notes to the condensed consolidated financial
statements

Segment report (Rand/Metric)

Condensed consolidated income statements (US$)

Condensed consolidated statements of
comprehensive income (US$)

Condensed consolidated statements of changes in
equity (US$)

Condensed consolidated balance sheets (US$)

Condensed consolidated cash flow statements (US$)

Segment report (US$/Imperial)

Development results – Metric and Imperial

SHAREHOLDER INFORMATION

Issued ordinary share capital at 31 December 2015

436 789 929

Issued ordinary share capital at 30 September 2015

436 187 133

MARKET CAPITALISATION

At 31 December 2015 (ZARm)

6 814

At 31 December 2015 (US$m)

440

At 30 September 2015 (ZARm)

3 764

At 30 September 2015 (US$m)

272

HARMONY ORDINARY SHARES AND

ADR PRICES

12-month high (1 January 2015 – 31 December 2015)
for ordinary shares

16.25

12-month low (1 January 2015 – 31 December 2015)
for ordinary shares

8.13

12-month high (1 January 2015 – 31 December 2015)
for ADRs

1.34

12-month low (1 January 2015 – 31 December 2015)
for ADRs

0.53

FREE FLOAT

100%

ADR RATIO

1:1

JSE LIMITED

HAR

Range for quarter (1 October – 31 December 2015
closing prices)

R16.25 – R8.13

Average daily volume for the quarter (1 October –
31 December 2015)

1,740,583 shares

Range for quarter (1 July – 30 September 2015
closing prices)

R15.99 – R8.40

Average daily volume for the quarter (1 July –
30 September 2015)

2,196,866 shares

NEW YORK STOCK EXCHANGE

including other US trading platforms

HMY

Range for quarter (1 October – 31 December 2015
closing prices)

US$1.03 – US$0.53

Average daily volume for the quarter (1 October –
31 December 2015)

1,991,128

Range for quarter (1 July – 30 September 2015
closing prices)

US$1.34 – US$0.60

Average daily volume for the quarter (1 July –
30 September 2015)

3,565,559 shares

INVESTORS’ CALENDAR

Q3 FY16 presentation (webcast and conference
calls only)

27 May 2016

Q4 FY16 live presentation from Johannesburg

17 August 2016

Release of FY16 Integrated Report and Form 20-F

26 October 2016

Q1 FY17 presentation (webcast and conference
calls only)

14 November 2016

Annual General Meeting

25 November 2016

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

During my first five weeks at Harmony, I have spent time with
senior management, visited the various operations and met
with the operational teams in both South Africa and Papua New
Guinea. I am very impressed with the quality of our management
and mining teams. The company owns excellent ore bodies. I have
no doubt that the teams can deliver on their plans during financial
year 2016.

Harmony recorded another solid set of results for the second
quarter of financial year 2016 – three consecutive quarters of
increased delivery. Underground grade was 7% higher, the
majority of our operations produced higher kilograms with most
of the operations generating net free operational cash flow
except for Kalgold, Kusasalethu and Hidden Valley. Combined
with a 7% increase in the average R/kg gold price received from
R473 567/kg in the September 2015 quarter to R507 490/kg
during the quarter under review, revenue increased by 10% to
R4.57 billion (to US$321 million).

Higher production, combined with an increase in the R/kg gold
price, means that Harmony’s cash flow is strengthened, our
margins are growing, we are able to repay our debt and able
to fund Golpu. During December 2015 we repaid R1.12 billion
(US$78 million) of our debt. At quarter end our net debt was at
R2.52 billion (US$162 million).

Despite the gold price trading around multi-year lows in US dollar
terms, Harmony, with 94% of its operating revenue generated
in South Africa, benefits from the weak rand which more than
offsets the impact of the low US dollar gold price.

SAFETY

Harmony’s safety statistics are improving – both quarter on
quarter as well as year on year. Regrettably the South African
operations did report two fatalities during the quarter. The men
who lost their lives were Carlos Sitoe (stoper at Masimong) and
Moeketsi Mongoako (rock drill operator at Target). Our heartfelt
condolences go to the families, friends and colleagues of these
men. We will continue to work towards zero harm.

OPERATIONAL

After a good performance in gold production in Q1FY16, gold
production for the December 2015 quarter increased by a further
2% to 8 929 kilograms/287 074 ounces. The increase was mainly
due to our mines keeping their momentum most notably Hidden
Valley recovering after the previous quarter and the improved
results flowing through from Doornkop post its restructuring.

Overall, Harmony’s production profit increased by 84% to
R1.29 billion (68% to US$91 million) quarter on quarter, mainly
due to a 7% increase in the gold price received and supported by
a 2% increase in gold production.

All-in sustaining costs for all operations decreased by 7%
to R434 834/kg in the December 2015 quarter, compared

to R466 061/kg in the September 2015 quarter (15% decrease to
US$950/oz). Cash operating costs for the December 2015 quarter
decreased by 6% to R360 153/kg (15% decrease to US$787/oz).

Gold production at the following operations increased during the
December 2015 quarter:

•

Hidden Valley (+189kg)(+ 6 077oz). Tonnes milled increased
by 103 000t (33%) whilst recovered grade improved by
17% to 1.28g/t, resulting in a 55% improvement in gold
produced. Hidden Valley’s performance during the December
2015 quarter is not in line with plan as yet, as it was adversely
affected by poor grade and road closures which restricted
mining activity. Although an improvement on the prior
quarter, which had significant production stoppages due to a
fatality, the continued high cost nature of this operation has
resulted in the suspension of pre-strip activities until metal
prices significantly improve. Currently accessible ore sources
remain available for the remainder of calendar year 2016,
with the site remaining focused on safely operating at a free
cash flow neutral or better position. The joint venture partners
are concurrently assessing all strategic options in relation to
the future of the asset.

•

Joel (+112kg) (+3 601oz) improved gold production by 21%,
due to a 21% increase in recovered grade to 4.69g/t;

•

Target 1 (+76kg) (+2 443oz) increased tonnes milled by 8%
resulting in an 8% increase in gold produced;

•

Phakisa (+62kg) (+1 993oz) increased gold production by 6%,
due to a 6% improvement in the recovered grade to 5.87g/t;

•

Dumps (+45kg) (+1 447oz) increased tonnes milled by 11%
and recovered grade improved by 5% to 0.39g/t, resulting in
an 18% increase in gold produced;

•

Doornkop (+44kg) (+1 415oz) recorded a 7% increase in gold
produced post the restructuring of the mine, as a result of a
7% improvement in the recovered grade to 4.73g/t, partially
offset by a 9% decrease in tonnes milled resulting in a 7%
increase in gold produced;

•

Kalgold (+33kg) (+1 061oz) increased gold production by

12% when compared to the September 2015 quarter. This
was mainly due to an 8% improvement in the recovery grade
to 0.81g/t and a 4% increase in tonnes milled.

The following operations recorded a decrease in production
quarter on quarter:

•

Masimong (-122kg) (-3 923oz) was impacted by the fatal

accident and milled 29 000 tonnes (15%) less than in the
September 2015 quarter which was the main reason for the
17% decrease in gold production;

•

Tshepong (-113kg) (-3 633oz) recorded a 6% decrease in the
recovery grade to 4.43g/t and a 3% decrease in tonnes milled.
Production results were however in line with the operation’s
plan;

•

Bambanani’s (-82kg) (-2 637oz) recovered grade decreased

by 6% to 13.82g/t for the quarter under review, but still
higher than the 11.5g/t guided for the year and tonnes milled
decreased by 3%;

•

Kusasalethu (-51kg) (-1 640oz) milled 72 000 (32%) tonnes
less than in the September 2015 quarter. This was mainly
due to the reduction of waste after the re-commissioning of
the waste pass system. The reduction of the waste to reef
ratio combined with a 7% increase in the face grade for
the December 2015 quarter, resulted in a 39% increase in
the recovered grade to 6.25g/t.

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

The infrastructure related problems at this mine are however
continuing and management is in the process of assessing the best
way in which to address these issues.

I anticipate that the third quarter will show lower production due
to late start-ups post the December 2015 quarter and the Easter
holidays which also fall within the March quarter. I believe our
annual guidance of approximately 1.1 million ounces will not be
affected.

FINANCIAL RESULTS

Revenue

Revenue increased by 10% as a result of the 3% increase in gold
sold to 8 999kg/289 323 oz and a 7% increase in the average gold
price received at R507 490/kg (decrease of 2% to US$1 109/oz) in
the December 2015 quarter.

Production costs

Production costs decreased by 5% to R3.28 billion (decreased
by 13% to US$230 million) in the December 2015 quarter. The
decrease is mainly a result of the decrease in electricity cost of
R189 million (US$13 million) due to the higher winter electricity
price tariffs included in the September 2015 quarter.

Exploration expenditure

The increase in exploration expenditure quarter on quarter can be
attributed to an additional drill rig commissioned at Kili Teke.

Other expenses – net

The total of R369 million (US$26 million) in the December 2015
quarter is mainly due to a foreign exchange translation loss of
R374 million (US$26 million) recorded on the US$ borrowings. The
rand weakened by 13% from US$/R13.87 at 30 September 2015
to US$/R15.62 at 31 December 2015.

Profit/(loss) per share

We are pleased to report a 17 SA cents (1 US cents) profit per
share for the December 2015 quarter, improved from the loss per
share of 120 SA cents (9 US cents) for September 2015 quarter.

Cash and cash equivalents

Cash and cash equivalents decreased by R611 million
(US$51 million) due to the debt repayment of R1.12 billion
(US$78 million), offset by net cash generated of R501 million
(US$33 million).

Borrowings

Harmony repaid R1.12 billion (US$78 million) of its debt during the
December 2015 quarter. Repayments consisted of US$50 million
on its US$250 million Revolving Credit Facility and R400 million on
its R1.3 billion facility. The repayments were partially offset by the
foreign translation loss recorded due to the weakening of the rand
exchange rate against the US dollar.

GOLPU

Harmony, together with our joint venture partner Newcrest Mining
Limited, continued discussions with the Papua New Guinean
government on the appropriate terms on which to progress the
pre-mining development agreement.

Golpu is a fantastic asset, which the feasibility study confirms.
The study was completed in December 2015 and is subject to
both joint venture partners’ approval before we will be able to
share the results in mid-February 2016.

EXPLORATION

Harmony is one of the few gold mining companies that continue
to spend on exploration. Kili Teke – which is 100% held by
Harmony – is a gold-copper asset which we discovered. A maiden
gold equivalent resource of 4 million ounces was declared for
the Kili Teke copper-gold deposit in November 2015; containing
506 000 tonnes of copper, 1.2 million ounces of gold and 22 000
tonnes of molybdenum.

The Mineral Resource comprises 128 million tonnes at
0.4% copper, 0.3 g/t Au, 170 ppm molybdenum and was
completed in accordance with the guidelines of the SAMREC and
JORC (2012 edition) codes. The Mineral Resource is classified as
Inferred, and has been defined over a zone 600m long, 300m
wide and 400m deep. A second rig was mobilised to site to
accelerate the resource definition and conversion process.

CONCLUSION

Harmony’s share price responded following a weaker rand at the
beginning of December 2015 and Harmony’s announcement
that it started repaying its debt. It continued its upward trend
throughout January 2016. Each of our mines has been positioned
to deliver safe, profitable ounces and my focus will be to deal
with the ones that aren’t, to ensure that Harmony benefits from
a higher gold price.

Peter Steenkamp
Chief Executive Officer

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

Three
months
ended

South Africa

Hidden

Valley

Total

Harmony

Underground production

Surface production

Total

South

Africa

Kusasalethu

Doornkop

Phakisa

Tshepong

Masimong

Target 1

Bambanani

Joel

Unisel

Total

Underground

Phoenix

Dumps

Kalgold

Total

Surface

Ore milled

– t'000

Dec-15

155

150

178

272

160

197

139

110

1 423

1 660

753

374

2 787

4 210

419

4 629

Sep-15

227

164

178

281

189

183

139

112

1 537

1 644

676

360

2 680

4 217

316

4 533

Gold produced

– kg

Dec-15

969

709

1 044

1 206

606

1 082

857

652

462

7 587

209

296

302

807

8 394

535

8 929

Sep-15

1 020

665

982

1 319

728

1 006

939

540

477

7 676

210

251

269

730

8 406

346

8 752

– oz

Dec-15

31 154

22 795

33 565

38 774

19 483

34 787

27 553

20 962

14 854

243 927

6 719

9 517

9 710

25 946

269 873

17 201

287 074

Sep-15

32 794

21 380

31 572

42 407

23 406

32 344

30 190

17 361

15 336

246 790

6 752

8 070

8 649

23 471

270 261

11 124

281 385

Yield

– g/tonne

Dec-15

6.25

4.73

5.87

4.43

3.79

5.49

13.82

4.69

4.20

5.33

0.13

0.39

0.81

0.29

1.99

1.28

1.93

Sep-15

4.49

4.05

5.52

4.69

3.85

5.50

14.67

3.88

4.26

4.99

0.13

0.37

0.75

0.27

1.99

1.09

1.93

Cash
operating
costs

– R/kg

Dec-15

447 254

356 415

316 269

362 768

418 186

286 296

229 501

321 026

404 123

343 965

372 742

355 578

441 887

392 322

348 614

541 196

360 153

Sep-15

479 826

409 116

348 017

347 719

365 380

314 830

222 508

389 857

388 352

358 168

393 214

385 948

515 428

435 751

364 906

868 384

384 810

– $/oz

Dec-15

977

779

691

793

914

626

501

701

883

752

814

777

965

857

762

1 182

787

Sep-15

1 148

979

833

832

874

753

532

933

929

857

941

923

1 233

1 043

873

2 078

921

– R/tonne

Dec-15

2 796

1 685

1 855

1 608

1 584

1 572

3 172

1 506

1 697

1 834

140

357

114

695

691

695

Sep-15

2 156

1 659

1 920

1 632

1 407

1 731

3 265

1 515

1 654

1 789

143

385

119

727

951

743

Gold sold

– kg

Dec-15

944

718

1 070

1 236

621

1 126

879

682

474

7 750

197

288

270

755

8 505

494

8 999

Sep-15

1 072

680

966

1 297

716

970

924

555

470

7 650

212

263

266

741

8 391

352

8 743

– oz

Dec-15

30 350

23 084

34 401

39 738

19 966

36 202

28 260

21 927

15 239

249 167

6 334

9 259

8 681

24 274

273 441

15 882

289 323

Sep-15

34 466

21 862

31 058

41 699

23 020

31 186

29 707

17 844

15 111

245 953

6 816

8 456

8 552

23 824

269 777

11 317

281 094

Revenue

(R'000)

Dec-15

475 337

364 032

544 357

628 933

315 875

570 371

447 580

347 220

241 147

3 934 852

99 887

146 543

137 278

383 708

4 318 560

248 345

4 566 905

Sep-15

508 322

322 224

457 404

613 671

339 013

462 161

435 752

262 500

222 241

3 623 288

100 421

124 576

125 932

350 929

3 974 217

166 176

4 140 393

Cash operating
costs

(R'000)

Dec-15

433 389

252 698

330 185

437 498

253 421

309 772

196 682

209 309

186 705

2 609 659

77 903

105 251

133 450

316 604

2 926 263

289 540

3 215 803

Sep-15

489 423

272 062

341 753

458 642

265 997

316 719

208 935

210 523

185 244

2 749 298

82 575

96 873

138 650

318 098

3 067 396

300 461

3 367 857

Inventory
movement

(R'000)

Dec-15

(13 278)

8 918

8 183

12 020

6 948

17 234

8 573

13 949

4 218

66 765

(4 055)

(3 580)

(13 824)

(21 459)

45 306

13 755

59 061

Sep-15

25 452

5 400

(5 714)

(6 134)

(4 334)

(10 296)

(4 696)

5 656

(2 725)

2 609

589

5 155

(2 201)

3 543

6 152

65 767

71 919

Operating costs

(R'000)

Dec-15

420 111

261 616

338 368

449 518

260 369

327 006

205 255

223 258

190 923

2 676 424

73 848

101 671

119 626

295 145

2 971 569

303 295

3 274 864

Sep-15

514 875

277 462

336 039

452 508

261 663

306 423

204 239

216 179

182 519

2 751 907

83 164

102 028

136 449

321 641

3 073 548

366 228

3 439 776

Production
profit

(R'000)

Dec-15

55 226

102 416

205 989

179 415

55 506

243 365

242 325

123 962

50 224

1 258 428

26 039

44 872

17 652

88 563

1 346 991

(54 950)

1 292 041

Sep-15

(6 553)

44 762

121 365

161 163

77 350

155 738

231 513

46 321

39 722

871 381

17 257

22 548

(10 517)

29 288

900 669

(200 052)

700 617

($'000)

Dec-15

3 880

7 194

14 469

12 603

3 899

17 095

17 022

8 707

3 528

88 397

1 830

3 151

1 240

6 221

94 618

(3 860)

90 758

Sep-15

(504)

3 444

9 337

12 399

5 951

11 982

17 811

3 563

3 056

67 039

1 328

1 735

(810)

2 253

69 292

(15 392)

53 900

Capital
expenditure

(R'000)

Dec-15

73 426

45 130

75 634

73 790

25 362

82 027

29 526

58 723

14 212

477 830

469

1 686

7 007

9 162

486 992

23 888

510 880

Sep-15

89 877

46 623

84 984

65 588

27 599

79 317

23 780

53 186

15 590

486 544

107

1 511

11 021

12 639

499 183

16 481

515 664

($'000)

Dec-15

5 158

3 170

5 313

5 183

1 782

5 762

2 074

4 125

998

33 565

118

492

643

34 208

1 678

35 886

Sep-15

6 914

3 587

6 538

5 046

2 123

6 102

1 829

4 092

1 199

37 430

116

848

972

38 402

1 268

39 670

Cash Operating
Cost and Capital

– R/kg

Dec-15

523 029

420 068

388 716

423 954

460 038

362 106

263 953

411 092

434 885

406 945

374 986

361 274

465 089

403 675

406 630

585 847

417 368

Sep-15

567 941

479 226

434 559

397 445

403 291

393 674

247 833

488 350

421 036

421 553

393 724

391 968

556 398

453 064

424 290

916 017

443 730

– $/oz

Dec-15

1 143

918

849

926

1 005

791

577

898

950

889

819

789

1 016

882

888

1 280

912

Sep-15

1 359

1 147

1 040

951

965

942

593

1 169

1 007

1 009

942

938

1 331

1 084

1 015

2 192

1 062

All-in
sustaining
costs

– R/kg

Dec-15

543 262

439 592

403 492

439 798

491 644

378 399

274 976

382 904

459 895

420 131

378 183

369 575

496 491

417 208

419 322

702 167

434 834

Sep-15

581 984

490 361

450 652

413 998

428 847

412 106

250 346

451 236

443 126

434 829

393 684

404 837

574 506

462 553

436 751

1 163 868

466 061

– $/oz

Dec-15

1 187

960

882

961

1 074

827

601

837

1 005

918

826

808

1 085

912

916

1 547

950

Sep-15

1 393

1 173

1 078

991

1 026

986

599

1 080

1 060

1 040

942

969

1 375

1 107

1 045

2 836

1 115

OPERATING RESULTS – QUARTER ON QUARTER (RAND/METRIC) (US$/IMPERIAL)

CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)

Year ended

31 December

30 September 31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

Note

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Revenue

4 567

4 140

3 715

8 707

8 146

15 435

Cost of sales

(3 918)

(4 088)

(3 970)

(8 006)

(8 289)

(19 053)

Production costs

(3 275)

(3 439)

(3 096)

(6 715)

(6 614)

(12 632)

Amortisation and depreciation

(531)

(555)

(602)

(1 086)

(1 252)

(2 472)

Impairment of assets

(3 471)

Other items

( 112)

(94)

(272)

(205)

(423)

(478)

Gross profit/(loss)

649

( 255)

701

(143)

(3 618)

Corporate, administration and other expenditure

(93)

(89)

(83)

(182)

(194)

(378)

Social investment expenditure

(14)

(11)

(15)

(25)

(39)

(71)

Exploration expenditure

(60)

(43)

(95)

(103)

(180)

(263)

Profit on sale of property, plant and equipment

Other expenses (net)

(369)

(443)

(52)

(813)

(239)

(378)

Operating profit/(loss)

115

(532)

(929)

(418)

(1 224)

(5 193)

Profit/(loss) from associates

(25)

Profit on disposal of investments

Net gain/(loss) on financial instruments

(5)

( 8)

( 13)

Investment income

114

110

229

Finance cost

(70)

(71)

(67)

(141)

(132)

(264)

Profit/(loss) before taxation

132

(554)

(929)

(423)

(1 231)

(5 240)

Taxation

(56)

( 22)

109

704

Normal taxation

( 1)

(1)

(4)

( 1)

(3)

Deferred taxation

(55)

( 21)

112

699

Net profit/(loss) for the period

(521)

(856)

(445)

(1 122)

(4 536)

Attributable to:
Owners of the parent

(521)

(856)

(445)

(1 122)

(4 536)

Profit/(loss) per ordinary share (cents)

Basic profit/(loss)

(120)

(197)

(102)

(258)

(1 044)

Diluted profit/(loss)

(120)

(197)

(102)

(258)

(1 044)

Figures may not cross-cast as they are rounded independently.

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

The condensed consolidated financial statements for the six months ended 31 December 2015 have been prepared by Harmony Gold Mining Company
Limited’s corporate reporting team headed by Herman Perry. This process was supervised by the financial director, Frank Abbott and approved by the board of
Harmony Gold Mining Company Limited. These financials have not been audited or independently reviewed.

Quarter ended

Six months ended

Loss on scrapping of property, plant and

equipment

(430)

(491)

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

Year ended

31 December

30 September 31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Net profit/(loss) for the period

(521)

(856)

(445)

(1 122)

(4 536)

Foreign exchange translation

256

216

(114)

472

Items that will not be reclassified to profit or loss:

Remeasurement of retirement benefit obligation

Actuarial gain recognised during the year

Deferred taxation thereon

(3)

Total comprehensive income/(loss) for the period

332

(305)

(970)

(1 057)

(4 477)

Attributable to:

Owners of the parent

332

(305)

(970)

(1 057)

(4 477)

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

for the six months ended 31 December 2015 (Unaudited)

Balance - 30 June 2015

28 324

3 787

(5 358)

26 753

Share-based payments

Net loss for the period

(445)

Other comprehensive income for the period

472

Balance - 31 December 2015

28 324

4 358

(5 803)

26 879

Balance - 30 June 2014

28 325

3 539

(822)

31 042

Share-based payments

129

Net loss for the period

(1 122)

Other comprehensive income for the period

Balance - 31 December 2014

28 325

3 733

(1 944)

30 114

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (RAND)

(114)

472

Items that may be reclassified subsequently to profit or

loss:

Quarter ended

Six months ended

Other comprehensive income/(loss) for the period, net

of income tax

256

216

(114)

472

256

216

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(RAND)

Accumulated

loss

Total

Other

reserves

Share capital

Figures in million

CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)

31 December

30 September

30 June 31 December

2015

2015

2014

Figures in million

Note

(Unaudited)

(Unaudited)

(Audited)

(Unaudited)

ASSETS

Non-current assets
Property, plant and equipment

30 101

29 808

29 548

32 843

Intangible assets

878

882

885

883

Restricted cash

Restricted investments

2 434

2 408

2 384

2 366

Investments in associates

Investments in financial assets

Inventories

Trade and other receivables

120

Total non-current assets

33 593

33 271

32 986

36 380

Current assets
Inventories

1 260

1 263

1 292

1 337

Trade and other receivables

658

754

746

822

Income and mining taxes

Restricted cash

Cash and cash equivalents

876

1 487

1 067

1 374

Total current assets

2 821

3 548

3 151

3 591

Total assets

36 414

36 819

36 137

39 971

EQUITY AND LIABILITIES

Share capital and reserves
Share capital

28 324

28 324

28 325

Other reserves

4 358

4 045

3 787

3 733

Accumulated loss

(5 803)

(5 879)

(5 358)

(1 944)

Total equity

26 879

26 490

26 753

30 114

Non-current liabilities
Deferred tax liabilities

1 926

1 871

1 906

2 562

Provision for environmental rehabilitation

2 364

2 292

2 218

2 170

Retirement benefit obligation

170

167

163

255

Other non-current liabilities

Borrowings

3 092

4 129

3 399

Total non-current liabilities

7 593

8 498

7 723

5 029

Current liabilities
Borrowings

299

3 121

Income and mining taxes

Trade and other payables

1 642

1 830

1 660

1 707

1 942

1 831

1 661

4 828

Liabilities of disposal groups classified as held for sale

Total current liabilities

1 942

1 831

1 661

4 828

Total equity and liabilities

36 414

36 819

36 137

39 971

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

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)

Year ended

31 December

30 September

31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

Note

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

1 040

696

(64)

1 736

1 007

1 928

101

Interest paid

(39)

(23)

(39)

(46)

(108)

Cash generated/(utilised) by operating activities

1 043

719

( 18)

1 762

1 080

2 006

(Increase)/decrease in restricted cash

(4)

(3)

(4)

(7)

Decrease in restricted investments

Loan to associate

(120)

(568)

(597)

(872)

(1 165)

(1 518)

(2 908)

Borrowings raised

300

300

941

Borrowings repaid

(1 117)

(793)

Cash generated/(utilised) by financing activities

(1 117)

300

( 817)

148

(2)

(17)

(8)

Net increase/(decrease) in cash and cash equivalents

(611)

420

(907)

( 191)

(455)

(762)

Cash and cash equivalents - beginning of period

1 487

1 067

2 281

1 067

1 829

Cash and cash equivalents - end of period

876

1 487

1 374

876

1 374

1 067

Figures may not cross-cast as they are rounded independently.

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

Six months ended

Quarter ended

Cash flow from operating activities
Cash generated/(utilised) by operations

Interest and dividends received

Income and mining taxes refunded

Foreign currency translation adjustments

Cash flow from investing activities

(2 827)

(1 399)

(1 168)

Cash utilised by investing activities

Cash flow from financing activities

Net additions to property, plant and

equipment

(573)

(595)

(748)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the six months ended 31 December 2015 (Rand)

1 Accounting policies

Basis of accounting

2 Cost of sales

Year ended

31 December

30 September

31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Production costs - excluding royalty

3 237

3 414

3 074

6 652

6 560

12 537

Royalty expense

Amortisation and depreciation

531

555

602

1 086

1 252

2 472

Impairment of assets

3 471

Rehabilitation expenditure/(credit)

(6)

Care and maintenance cost of restructured shafts ¹

106

Employment termination and restructuring costs

182

230

251

Share-based payments

105

139

208

Other

(1)

(1)

(1)

(2)

(81)

Total cost of sales

3 918

4 088

3 970

8 006

8 289

19 053

¹ Included in the September 2015 quarter is a credit of R15 million relating to an insurance claim approved on the Brand 1A vent shaft explosion.

3 Earnings/(loss) per share

Year ended

31 December

30 September

31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Weighted average number of shares (million)

435.3

435.1

434.2

435.2

434.1

434.4

Weighted average number of diluted shares (million)

436.9

435.7

435.2

436.9

436.1

438.1

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

Basic loss

(120)

(197)

(102)

(258)

(1 044)

Diluted loss

(120)

(197)

(102)

(258)

(1 044)

Headline earnings/(loss)

(120)

(114)

(103)

(175)

(189)

Diluted headline earnings/(loss)

(120)

(114)

(103)

(175)

(189)

Figures in million

Reconciliation of headline earnings/(loss):

Net profit/(loss)

(521)

(856)

(445)

(1 122)

(4 536)

Adjusted for:
Profit on disposal of investments ¹

(4)

Impairment of assets

3 471

Taxation effect on impairment of assets

(169)

Profit on sale of property, plant and equipment

(2)

(2)

(1)

(4)

(1)

(6)

Loss on scrapping of property, plant and equipment

430

491

Headline earnings/(loss)

(523)

(496)

( 449)

(763)

(821)

¹ There is no taxation effect on this item.

(1)

Taxation effect of (loss)/profit on sale of property,

plant and equipment

(69)

The condensed consolidated financial statements for the six months ended 31 December 2015 have been prepared in accordance with IAS 34, Interim

Financial Reporting, JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial

Pronouncements as issued by the Financial Reporting Standards Council, 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 2015, 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.

Quarter ended

Six months ended

Quarter ended

Six months ended

Taxation effect on loss of scrapping of property, plant

and equipment

(67)

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the six months ended 31 December 2015 (Rand)

4 Investment in associate

5 Borrowings

US$ facility

Rand facility

Figures in million

US dollar

SA rand

Borrowings summary at 31 December 2015
Facility

250

1 300

Drawn down

200

300

Undrawn committed borrowing facilities

1 000

February

2018

Interest rate

LIBOR + 3%

JIBAR + 3.5%

The drawn amount of R300 million on the Nedbank facility is repayable during December 2016 and has been reclassified as current.

6 Financial risk management activities

Fair value determination
The fair value levels of hierarchy are as follows:

Level 1:

Quoted prices (unadjusted) in active markets for identical assets;

Level 2:

Level 3:

Inputs for the asset that are not based on observable market data (that is unobservable inputs).

The following table presents the group's assets and liabilities that are measured at fair value by level:

31 December

30 September

30 June

31 December

2015

2015

2014

Figures in million

(Unaudited)

(Unaudited)

(Audited)

(Unaudited)

Available-for-sale financial assets ¹

Level 1

Level 2

Level 3

Fair value through profit or loss ²

Level 1

Level 2

614

532

538

375

Level 3

¹ Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.

² The majority of the level 2 fair values are directly derived from the Top 40 index on the JSE, and are discounted at market interest rate. This relates to equity-linked deposits in

the group's environmental rehabilitation trust funds (included in restricted investments).

December

2016

Maturity

Harmony's portion of the subordinated shareholders' loan extended to Rand Refinery Proprietary Limited (Rand Refinery) in December 2014 amounts to

R120 million. This loan forms part of the net investment in associate. At 30 June 2015, Harmony recorded R25 million against the loan for its share of

losses, as well as a provision for impairment of R15 million.

Harmony's share of profits for the six months to end of December 2015 totalled R35 million. This profit effectively reversed the loss of R25 million

recognised against the loan in June 2015 and an investment in associate of R10 million has been recognised on the balance sheet at 31 December 2015.

The net investment's recoverability was assessed and a provision for impairment of R25 million was recognised in "Other expenses (net)" against the loan.

The fair value measurement of the net investment is classified as level 3 and is non-recurring.

During the December 2015 quarter, R400 million was repaid on the R1.3 billion Nedbank revolving credit facility and US$50 million on the US$ revolving

credit facility. During the September 2015 quarter, R300 million was drawn down on the R1.3 billion Nedbank revolving credit facility. The weakening of the

Rand against the US$ resulted in a foreign exchange translation loss of R374 million being recorded in the December 2015 quarter (September 2015

quarter: R426 million), increasing the Borrowings balance and Other expenses (net) total.

Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is, as prices) or

indirectly (that is derived from prices);

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the six months ended 31 December 2015 (Rand)

7 Net additions to property, plant and equipment

Year ended

31 December

30 September

31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Capital expenditure - operations

511

516

682

1 027

1 278

2 470

Other

(1)

(1)

Net additions

573

595

748

1 168

1 399

2 827

8 Commitments and contingencies

31 December

30 September

30 June

31 December

2015

2015

2014

Figures in million

(Unaudited)

(Unaudited)

(Audited)

(Unaudited)

Capital expenditure commitments:
Contracts for capital expenditure

166

126

158

172

Authorised by the directors but not contracted for

1 607

1 980

257

1 646

1 773

2 106

415

1 818

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

Contingent liabilities

Related parties

Movement in shares owned by directors/prescribed officers for the six months ended 31 December 2015:

Name of director/prescribed officer

Shares

purchased in

open market

Performance

shares vested

and retained

Frank Abbott (Financial director) ¹

300 000

18 547

Graham Briggs (Chief executive officer)

46 874

Harry "Mashego" Mashego (Executive director)

7 760

Ken Dicks (Independent non-executive director) ²

15 000

n/a

Johannes van Heerden

13 153

¹ Purchased on 15 December 2015.

² Purchased on 8 December 2015.

10 Subsequent events

11 Segment report

The segment report follows on page 15.

236

114

119

Six months ended

Additions resulting from stripping activities at Hidden

Valley

105

For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended 30 June 2015. There were no

significant changes in contingencies since 30 June 2015.

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.

Harmony has signed a R150 million guarantee for the ARM Broad Based Economic Empowerment (BBEE) Trust, a member of the African Rainbow

Minerals (ARM) group. The guarantee is for additional security for the ARM BEE Trust loan due to Nedbank Limited. The fair value of the guarantee was

R15 million at 31 December 2015, and has been recorded in Other expenses (net) and Trade and other payables.

Peter Steenkamp was appointed as chief executive officer (CEO) on 1 January 2016, replacing Graham Briggs who resigned as the CEO on 31 December

2015.

Capital and capitalised exploration and evaluation

expenditure for Golpu

Quarter ended

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the six months ended 31 December 2015 (Rand)

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

31 December

31 December

2015

2014

Figures in million

(Unaudited)

(Unaudited)

Reconciliation of production profit to gross profit
Total segment revenue

8 707

8 146

Total segment production costs

(6 715)

(6 614)

Production profit per segment report

1 992

1 532

Depreciation

(1 086)

(1 252)

Other cost of sales items

(205)

(423)

Gross profit as per income statements ¹

701

(143)

31 December

31 December

2015

2014

Figures in million

(Unaudited)

(Unaudited)

Reconciliation of total segment mining assets to consolidated property, plant and equipment
Property, plant and equipment not allocated to a segment

Mining assets

749

791

Undeveloped property

5 139

5 139

Other non-mining assets

183

162

Wafi-Golpu assets

1 814

1 105

7 885

7 197

¹ The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

Six months ended

The "Reconciliation of segment information to condensed consolidated financial statements" line item in the segment

report is broken down in the following elements, to give a better understanding of the differences between the financial

statements and segment report:

SEGMENT REPORT (RAND/METRIC)

for the six months ended 31 December 2015 (Unaudited)

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

South Africa
Underground
Kusasalethu

984

1 005

935

1 065

(60)

3 661

3 526

163

247

1 989

2 109

382

476

Doornkop

686

620

539

566

147

2 237

3 332

129

1 374

1 346

314

298

Phakisa

1 002

720

674

589

328

131

4 274

4 625

161

213

2 026

1 628

356

300

Tshepong

1 243

1 010

902

805

341

205

4 079

3 997

139

171

2 525

2 288

553

528

Masimong

655

620

522

508

133

112

797

879

1 334

1 403

349

373

Target 1

1 032

912

633

596

399

316

2 840

2 799

161

143

2 088

2 052

380

386

Bambanani

883

617

410

347

473

270

810

842

1 796

1 391

126

115

Joel

610

563

439

419

171

144

673

513

112

1 192

1 162

278

285

Unisel

463

420

374

342

567

625

939

948

222

225

Target 3 ^(a)

222

177

528

546

483

Surface

All other surface operations

734

709

617

582

117

127

474

475

1 537

1 565

5 467

5 225

Total South Africa

8 292

7 418

6 045

5 996

2 247

1 422

20 940

22 159

986

1 246

16 800

16 375

8 427

8 301

International

Hidden Valley

415

728

670

618

(255)

110

1 276

3 487

881

1 519

735

905

Total international

415

728

670

618

(255)

110

1 276

3 487

881

1 519

735

905

Total operations

8 707

8 146

6 715

6 614

1 992

1 532

22 216

25 646

1 026

1 279

17 681

17 894

9 162

9 206

7 885

7 197

8 707

8 146

6 715

6 614

30 101

32 843

^# Capital expenditure for international operations excludes expenditure spend on Golpu of R114 million (2014: R16 million).

^(a) Target 3 was placed on care and maintenance in October 2014.

Mining assets

31 December

Capital expenditure ^#

31 December

Kilograms produced

31 December

Reconciliation of the segment

information to the condensed

consolidated financial statements

(refer to note 12)

Tonnes milled

31 December

R million

t'000

Revenue

31 December

Production cost

31 December

Production profit/(loss)

31 December

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

Q2 FY16

US$ RESULTS

FOR THE SECOND QUARTER

FY16 AND SIX MONTHS ENDED

31 DECEMBER 2015

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

CONDENSED CONSOLIDATED INCOME STATEMENTS (US$)

(Convenience translation)

Year ended

31 December

30 September 31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Revenue

321

319

327

639

739

1 348

Cost of sales

(275)

(315)

(354)

(588)

(753)

(1 645)

Production costs

(230)

(265)

(276)

(493)

(601)

(1 103)

Amortisation and depreciation

(37)

(43)

(54)

(80)

(114)

(216)

Impairment of assets

(285)

Other items

(8)

(7)

(24)

(15)

(38)

(41)

Gross profit/(loss)

(27)

(14)

(297)

Corporate, administration and other expenditure

(7)

(7)

(8)

(13)

(18)

(33)

Social investment expenditure

(1)

(1)

(2)

(3)

(6)

Exploration expenditure

(4)

(3)

(8)

(7)

(16)

(23)

Profit on sale of property, plant and equipment

Other expenses (net)

(26)

(34)

(5)

(60)

(23)

(33)

Operating profit/(loss)

(41)

(87)

(31)

(112)

(433)

Profit/(loss) from associates

(2)

Net gain/(loss) on financial instruments

(1)

(1)

Investment income

Finance cost

(5)

(5)

(6)

(10)

(12)

(22)

Profit/(loss) before taxation

(43)

(86)

(31)

(112)

(436)

Taxation

(4)

(2)

Normal taxation

Deferred taxation

(4)

(2)

Net profit/(loss) for the period

(40)

(79)

(33)

(102)

(374)

Attributable to:
Owners of the parent

(40)

(79)

(33)

(102)

(374)

Profit/(loss) per ordinary share (cents)

Basic profit/(loss)

(9)

(18)

(7)

(23)

(86)

Diluted profit/(loss)

(9)

(18)

(7)

(23)

(86)

Note on convenience translations

Except where specific statements have been extracted from 2015 annual financial statements, 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 page 17 to 21.

The currency conversion average rates for the quarter ended: December 2015: US$1 = R14.24 (September 2015: US$1 = R13.00, December 2014: US$1 =

R11.22). For year ended: June 2015: US$1 = R11.45. Six months ended: December 2015: US$1 = R13.62 (December 2014: US$1 = R10.99).

The income statement for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

Quarter ended

Six months ended

Loss on scrapping of property, plant and

equipment

(38)

(42)

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

(Convenience translation)

Year ended

31 December

30 September

31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Net profit/(loss) for the period

(40)

(79)

(33)

(102)

(374)

Foreign exchange translation

(11)

(368)

Items that will not be reclassified to profit or loss:

Remeasurement of retirement benefit obligation

Acturial gain recognised during the year

Deferred taxation thereon

Total comprehensive income/(loss) for the period

(23)

(90)

(96)

(741)

Attributable to:
Owners of the parent

(23)

(90)

(96)

(741)

The statement of comprehensive income for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

for the six months ended 31 December 2015 (Convenience translation) (Unaudited)

Figures in million

Balance - 30 June 2015

1 813

242

(343)

1 712

Share-based payments

Net loss for the period

(28)

Other comprehensive income for the period

Balance - 31 December 2015

1 813

278

(371)

1 720

Balance - 30 June 2014

2 448

306

(71)

2 683

Share-based payments

Net loss for the period

(97)

Other comprehensive income for the period

Balance - 31 December 2014

2 448

323

(168)

2 603

The currency conversion closing rates for the period ended 31 December 2015: US$1 = R15.62 (December 2014: US$1 = R11.57).

The statement of changes in equity for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

Share capital

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (US$)

(368)

Quarter ended

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(US$)

The currency conversion average rates for the quarter ended: December 2015: US$1 = R14.24 (September 2015: US$1 = R13.00, December 2014: US$1 =

R11.22). For year ended: June 2015: US$1 = R11.45. Six months ended: December 2015: US$1 = R13.62 (December 2014: US$1 = R10.99).

Six months ended

Other comprehensive income/(loss) for the period, net

of income tax

(11)

(367)

Items that may be reclassified subsequently to profit or

loss:

Total

Accumulated

loss

Other

reserves

(11)

CONDENSED CONSOLIDATED BALANCE SHEETS (US$)

(Convenience translation)

31 December

30 September

30 June 31 December

2015

2015

2014

Figures in million

(Unaudited)

(Unaudited)

ASSETS

Non-current assets
Property, plant and equipment

1 927

2 150

2 430

2 839

Intangible assets

Restricted cash

Restricted investments

156

174

196

205

Deferred tax assets

Inventories

Trade and other receivables

Total non-current assets

2 150

2 401

2 713

3 144

Current assets
Inventories

106

116

Trade and other receivables

Income and mining taxes

Restricted cash

Cash and cash equivalents

107

119

Total current assets

181

255

259

311

Total assets

2 331

2 656

2 972

3 455

EQUITY AND LIABILITIES

Share capital and reserves
Share capital

1 813

2 043

2 329

2 448

Other reserves

278

291

311

323

Accumulated loss

(371)

(423)

(440)

(168)

Total equity

1 720

1 911

2 200

2 603

Non-current liabilities
Deferred tax liabilities

123

135

157

221

Provision for environmental rehabilitation

151

165

182

188

Retirement benefit obligation

Other non-current liabilities

Borrowings

198

298

280

Total non-current liabilities

486

613

635

435

Current liabilities
Borrowings

270

Trade and other payables

105

132

137

147

Total current liabilities

125

132

137

417

Total equity and liabilities

2 331

2 656

2 972

3 455

The balance sheet for December 2015 converted at a conversion rate of US$1 = R15.62 (September 2015 : US$1 = R13.87, June 2015 : US$1 = R12.16,

December 2014 : US$1 = R11.57).

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (US$)

(Convenience translation)

Year ended

31 December

30 September

31 December

31 December

31 December

30 June

2015

2015

2014

2015

2014

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Cash generated/(utilised) by operations

(6)

127

168

Interest and dividends received

Interest paid

(3)

(2)

(3)

(4)

(9)

Income and mining taxes refunded

Cash flow from investing activities
(Increase)/decrease in restricted cash

Decrease in restricted investments

Loan to associate

(11)

(10)

(40)

(46)

(78)

(85)

(138)

(253)

Borrowings raised

Borrowings repaid

(78)

(82)

(65)

(6)

(14)

(3)

(15)

(14)

(22)

107

119

The cash flow statement for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

Six months ended

Quarter ended

Cash flow from financing activities

Cash utilised by investing activities

Cash flow from operating activities

(86)

(127)

Net additions to property, plant and

equipment

(40)

(46)

(67)

(32)

(53)

(84)

Cash and cash equivalents - beginning of

period

107

Cash and cash equivalents - end of period

Net increase/(decrease) in cash and cash

equivalents

( 51)

(83)

(60)

Foreign currency translation adjustments

176

The currency conversion average rates for the quarter ended: December 2015: US$1 = R14.24 (September 2015: US$1 = R13.00, December 2014: US$1 =

R11.22). For year ended: June 2015: US$1 = R11.45. Six months ended: December 2015: US$1 = R13.62 (December 2014: US$1 = R10.99).

Closing balance translated at closing rates of: December 2015 : US$1 = R15.62 (September 2015 : US$1 = R13.87, June 2015 : US$1 = R12.16, December

2014 : US$1 = R11.57).

172

202

Cash generated/(utilised) by operating
activities

(2)

128

(246)

Cash generated/(utilised) by financing
activities

( 78)

SEGMENT REPORT (US$/IMPERIAL)

for the six months ended 31 December 2015 (Unaudited)

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

South Africa
Underground
Kusasalethu

(6)

234

305

63 948

67 806

421

525

Doornkop

143

288

44 175

43 275

346

329

Phakisa

274

400

65 137

52 341

392

331

Tshepong

261

346

81 181

73 560

610

583

Masimong

42 889

45 107

384

411

Target 1

182

242

67 131

65 973

419

426

Bambanani

57 743

44 722

139

127

Joel

38 323

37 359

306

314

Unisel

30 190

30 479

245

248

Target 3 ^(a)

15 529

Surface

All other surface operations

49 417

50 316

6 028

5 761

Total South Africa

609

673

444

545

165

128

1 340

1 916

112

540 134

526 467

9 290

9 154

International

Hidden Valley

(19)

301

28 325

48 837

810

998

Total international

(19)

301

28 325

48 837

810

998

Total operations

639

739

493

601

146

138

1 422

2 217

115

568 459

575 304

10 100

10 152

^# Capital expenditure for international operations excludes expenditure spend on Golpu of US$8 million (2014: US$1 million).

(a) Target 3 was placed on care and maintenance in October 2014.

Tons milled

31 December

US$ million

t'000

Revenue

31 December

Production cost

31 December

Production profit/(loss)

31 December

Mining assets

31 December

Capital expenditure ^#

31 December

Ounces produced

31 December

Harmony Gold Mining Company Limited

Results for the second quarter FY16 and six months ended 31 December 2015

DEVELOPMENT RESULTS (IMPERIAL)

Quarter ending December 2015

Channel

Reef Sampled

Width

Value

Gold

Meters

(Cm’s)

(g/t) (Cmg/t)

Tshepong

Basal

184

168

9.59

234.46

2 248

B Reef

114

81.79

6.04

494

All Reefs

299

250

33.27

50.27

1 672

Phakisa

Basal

448

456

63.90

21.64

1 383

All Reefs

448

456

63.90

21.65

1 383

Bambabani

Basal

256.00

8.77

2 244

All Reefs

256.00

8.77

2 244

Doornkop

South Reef

512

585

64.00

13.97

892

All Reefs

512

585

64.00

13.93

892

Kusasalethu

VCR Reef

477

390

101.00

6.92

699

All Reefs

477

390

101.00

6.92

699

Target 1

Elsburg

–

All Reefs

–

Masimong 5

Basal

224

134

81.37

17.38

1 414

B Reef

199

231

52.74

19.11

1 008

All Reefs

423

365

63.25

18.29

1 157

Unisel

Basal

127

102

154.43

5.27

814

Leader

262

254

223.80

4.69

1 049

Middle

–

All Reefs

390

356

203.93

4.81

982

Joel

Beatrix

720

708

151.00

7.71

1 164

All Reefs

720

708

151.00

7.71

1 164

Total Harmony

Basal

1 027

876

70.21

21.41

1 503

Beatrix

720

708

151.00

7.71

1 164

Leader

262

254

223.80

4.69

1 049

B Reef

313

60.35

14.47

873

Middle

–

Elsburg

–

South Reef

512

585

64.00

13.93

892

VCR

477

390

101.00

6.92

699

All Reefs

3 311

3 126

102.68

10.83

1 112

DEVELOPMENT RESULTS (METRIC)

Quarter ending December 2015

Channel

Reef Sampled

Width

Value

Gold

Feet

(Inch)

(oz/t) (In.oz/t)

Tshepong

Basal

605

551

4.00

6.45

B Reef

374

269

32.00

0.18

All Reefs

979

820

13.00

1.48

Phakisa

Basal

1 469

1 496

25.00

0.64

All Reefs

1 469

1 496

25.00

0.64

Bambabani

Basal

142

101.00

0.26

All Reefs

142

101.00

0.26

Doornkop

South Reef

1 681

1 919

25.00

0.41

All Reefs

1 681

1 919

25.00

0.41

Kusasalethu

VCR Reef

1 565

1 280

40.00

0.20

All Reefs

1 565

1 280

40.00

0.20

Target 1

Elsburg

–

All Reefs

–

Masimong 5

Basal

735

440

32.00

0.51

B Reef

652

758

21.00

0.55

All Reefs

1 387

1 198

25.00

0.53

Unisel

Basal

417

335

61.00

0.15

Leader

861

833

88.00

0.14

Middle

–

All Reefs

1 278

1 168

80.00

0.14

Joel

Beatrix

2 362

2 323

59.00

0.23

All Reefs

2 362

2 323

59.00

0.23

Total Harmony

Basal

3 368

2 874

28.00

0.62

Beatrix

2 362

2 323

59.00

0.23

Leader

861

833

88.00

0.14

B Reef

1 027

24.00

0.42

Middle

–

Elsburg

–

South Reef

1 681

1 919

25.00

0.41

VCR

1 565

1 280

40.00

0.20

All Reefs

10 863

10 256

40.00

0.32

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 4, 2016

Harmony Gold Mining Company Limited

By:

/s/ Frank Abbott

Name: Frank Abbott
Title: Financial Director