NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
1. ACCOUNTING POLICIES
Basis of accounting
The condensed consolidated interim financial report for the half year reporting period ended 31 December 2019 has been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting. The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2019 and any public announcements made by Harmony during the interim reporting period. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the adoption of new and amended standards as set out below.
Impact of the adoption of IFRS 16 - Leases
Scope of IFRS 16
IFRS 16 replaces the previous accounting standard on leases, IAS 17 Leases and related Interpretations. The new standard introduces a single lease accounting model and requires a lessee to capitalise most leases with certain exemptions. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments.
Transition
The group has elected to apply IFRS 16 utilising the modified retrospective approach, under which the cumulative effect of adopting the new standard is recognised as an adjustment to the opening balance of retained earnings at 1 July 2019 with no restatement of comparative information. The cumulative effect of adopting the standard had no impact on opening retained earnings as the group has elected to recognise the right-of-use assets at an amount equal to the lease liability at 1 July 2019 together with the ability to set off deferred tax assets and liabilities resulting from the leased assets and liabilities. The lease liabilities were measured at the present value of the remaining lease payments at 1 July 2019 and discounted using the relevant incremental borrowing rate. The group has reassessed all contracts in determining the lease population. Refer to note 9 for details on the amount of right-of-use assets and lease liabilities recognised as well as the incremental borrowing rates used.
Expedients applied
The group has also applied the following practical expedients upon transition to the new standard:
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|
•
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The low value lease exemption - the group has elected to take the low value exemption with a value of R50 000 for the individual leased asset value;
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|
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•
|
The short-term lease exemption - leases with a duration of less than a year will be expensed in the income statement on a straight-line basis;
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|
•
|
The accounting for operating leases with a remaining lease term of less than 12 months as at date of adoption will be classified as short-term leases and will not be recorded on the statement of financial position;
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|
|
•
|
Use of hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease where appropriate;
|
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|
|
•
|
Non-lease components - the group has applied the practical expedient not to separate non-lease components from lease components, and instead account for each lease component and any associated non-lease components as a single lease component for the classes of underlying asset where it is appropriate to do so; and
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|
•
|
Exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application.
|
Accounting policy
The leases accounting policy applicable from 1 July 2019 is as follows:
The group assesses whether a contract is or contains a lease at inception of a contract. The lease contracts are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease contracts do not impose any covenants, but leased assets may not be used as security for borrowing purposes.
The group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases and leases of low value assets. For these exceptions, the group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease. The lease contracts are typically made for fixed periods between 12 to 48 months.
Measurement and classification
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the group uses its incremental borrowing rate. The group has applied the IFRS 16 portfolio approach in determining the discount rate for leases. As such a single discount rate has been used for contracts that share similar characteristics. The group has determined that a portfolio of contracts that are denominated in the same currency may use a single discount rate. This rate has been determined using various factors including in-country borrowings as well as other sources of finance. The nature of the right-of-use assets was also considered.
Lease payments included in the measurement of the lease liability comprise:
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•
|
fixed lease payments (including in-substance fixed payments), less any lease incentives;
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|
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•
|
variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
|
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|
|
•
|
the amount expected to be payable by the lessee under residual value guarantees;
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|
|
•
|
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
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|
|
•
|
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
1. ACCOUNTING POLICIES continued
Basis of accounting continued
Impact of the adoption of IFRS 16 - Leases continued
Measurement and classification continued
The non-current and current portions of the lease liability is included in other non-current liabilities and trade and other payables in the consolidated statement of financial position respectively.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
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•
|
the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
|
|
|
|
|
•
|
the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).
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•
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a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
|
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the
commencement day, any initial direct costs and restoration costs as described below. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Lease term
The lease term shall be determined as the non-cancellable period of a lease, together with:
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•
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Periods covered by an option to extend the lease if management is reasonably certain to make use of that option; and / or
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•
|
Periods covered by an option to terminate the lease, if management is reasonably certain not to make use of that option.
|
Treatment of right-of-use assets
Whenever the group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are presented in the Property, Plant and Equipment line in the consolidated statement of financial position.
The group applies its existing accounting policy on impairment of non-financial assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss accordingly.
2. RESTATEMENT OF DECEMBER 2018 FINANCIAL RESULTS
The group applies IAS 23 Borrowing Costs which requires finance costs directly attributable to the construction of qualifying assets to be capitalised. The group's investment into the stage 5 and 6 cut-backs at Hidden Valley met the requirements of a qualifying asset up until commercial levels of production were reached in June 2018. Borrowing costs amounting to R84 million attributable to Hidden Valley were erroneously capitalised to property, plant and equipment between July and December 2018. During that period additional depreciation of R10 million was not recognised whilst the asset was available for use. Even though management does not consider the error to be material to the previously issued interim financial statements, a choice was made to revise the comparative interim financial results. The impact of the correction of the error on the December 2018 financial statement line items is disclosed below.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
2. RESTATEMENT OF DECEMBER 2018 FINANCIAL RESULTS continued
Condensed consolidated income statement
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|
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|
|
For the six months ended 31 December 2018
|
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Previously reported
|
|
Adjustment
|
|
Restated
|
|
|
Figures in million
|
|
|
|
|
|
|
Cost of sales
|
(12 919
|
)
|
(10
|
)
|
(12 929
|
)
|
|
Amortisation and depreciation
|
(2 119
|
)
|
(10
|
)
|
(2 129
|
)
|
|
Gross profit/(loss)
|
870
|
|
(10
|
)
|
860
|
|
|
Operating profit/(loss)
|
166
|
|
(10
|
)
|
156
|
|
|
Finance costs
|
(208
|
)
|
(84
|
)
|
(292
|
)
|
|
Profit/(loss) before tax
|
123
|
|
(94
|
)
|
29
|
|
|
Net profit/(loss) for the period
|
75
|
|
(94
|
)
|
(19
|
)
|
|
Attributable to:
|
|
|
|
|
Owners of the parent
|
75
|
|
(94
|
)
|
(19
|
)
|
|
Earnings/(loss) per ordinary share (cents)
|
|
|
|
|
Basic earnings/(loss)
|
15
|
|
(19
|
)
|
(4
|
)
|
|
Diluted earnings/(loss)
|
13
|
|
(19
|
)
|
(6
|
)
|
Condensed consolidated balance sheet
|
|
|
|
|
|
|
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|
|
|
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At 31 December 2018
|
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|
Previously reported
|
|
Adjustment
|
|
Restated
|
|
|
Figures in million
|
|
|
|
|
|
|
Property, plant and equipment
|
31 538
|
|
(94
|
)
|
31 444
|
|
|
Total non-current assets
|
36 061
|
|
(94
|
)
|
35 967
|
|
|
Total assets
|
40 679
|
|
(94
|
)
|
40 585
|
|
|
Accumulated loss
|
(9 028
|
)
|
(94
|
)
|
(9 122
|
)
|
|
Total equity
|
25 686
|
|
(94
|
)
|
25 592
|
|
|
Total equity and liabilities
|
40 679
|
|
(94
|
)
|
40 585
|
|
There was no impact on the cash flow statement. Management has reviewed and updated the group's internal control processes in response to the error. The error was detected and corrected by June 2019 and therefore does not require a restatement of the June 2019 financial statements.
3. REVENUE
|
|
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|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
31 December
2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Revenue from contracts with customers
|
15 794
|
|
13 424
|
|
26 459
|
|
|
Gold1
|
15 326
|
|
13 107
|
|
25 693
|
|
|
Silver2
|
409
|
|
227
|
|
589
|
|
|
Uranium3
|
59
|
|
90
|
|
177
|
|
|
Hedging gain/(loss)4
|
(317
|
)
|
365
|
|
453
|
|
|
|
|
|
|
|
Total revenue5
|
15 477
|
|
13 789
|
|
26 912
|
|
1 The increase is mainly due to the higher gold price. The average gold price received increased by 19% to R683 158/kg from R572 898/kg in
December 2018.
2 Derived primarily from the Hidden Valley operation in Papua New Guinea which had 48 498kg sold for December 2019 (December 2018: 33 106kg).
The average silver price received increased by 17% to R7 948/kg from R6 775/kg in December 2018.
3 Derived from the Moab Khotsong operation.
4 Relates to the realised effective portion of the hedge-accounted gold derivatives.
5 A geographical analysis of revenue is provided in the segment report.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
4. COST OF SALES
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
31 December
2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
Restated*
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Production costs - excluding royalty1
|
11 233
|
|
10 308
|
|
20 131
|
|
|
Royalty expense
|
133
|
|
96
|
|
193
|
|
|
Amortisation and depreciation
|
1 926
|
|
2 129
|
|
4 054
|
|
|
Impairment of assets2
|
—
|
|
—
|
|
3 898
|
|
|
Rehabilitation expenditure
|
47
|
|
51
|
|
33
|
|
|
Care and maintenance cost of restructured shafts
|
73
|
|
62
|
|
134
|
|
|
Employment termination and restructuring costs
|
26
|
|
162
|
|
242
|
|
|
Share-based payments
|
64
|
|
92
|
|
155
|
|
|
Other
|
(4
|
)
|
29
|
|
29
|
|
|
Total cost of sales
|
13 498
|
|
12 929
|
|
28 869
|
|
*Refer to note 2 for detail.
1 The increase is mainly because of annual and inflationary increases. Major contributors to the increase are as follows:
- Labour costs increased by R380 million (8%), mainly due to annual increases;
- Electricity costs increased by R220 million (13%) as a result of the 14% increase in the price by Eskom;
- Consumable stores increased by R215 million, which includes the cost of Hidden Valley which mined 21% more tonnes during the six month period ending December 2019.
2 At 31 December 2019, management assessed the potential triggers for impairment. Due to unexpected geological complexity as well as seismicity at Kusasalethu, a revised life-of-mine (LOM) plan was drawn up. The performance at Target 1 was hampered by flexibility during the December 2019 period. These circumstances were considered to be impairment triggers and an impairment test was performed. All key assumptions disclosed remained the same as at 30 June 2019 with the exception of the gold price, which was increased from R585 000/kg to R630 000/kg. The recoverable amounts of the cash generating units were determined on a fair value less cost to sell basis. This is a fair value measurement classified as level 3. The impairment test performed did not result in any impairments or reversals at the operations that were tested.
5. EXPLORATION EXPENDITURE
Capitalisation of certain project expenses on Wafi-Golpu was halted from 1 July 2019 following delays in the permitting of the project. The expenses were for holding purposes and did not result in future economic benefit.
6. OTHER OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
31 December
2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Social investment expenditure
|
65
|
|
56
|
|
155
|
|
|
Foreign exchange translation (gain)/loss1
|
(36
|
)
|
164
|
|
86
|
|
|
Silicosis settlement reversal of provision
|
—
|
|
—
|
|
(62
|
)
|
|
Bad debts provision
|
12
|
|
38
|
|
—
|
|
|
Other operating (income)/expenses - net
|
(5
|
)
|
6
|
|
7
|
|
|
|
|
|
|
|
Total other operating expenses
|
36
|
|
264
|
|
186
|
|
1 The foreign exchange gain is driven primarily by the prevailing exchange rates at the drawdown and repayment dates of the US$ denominated loans
as well as the exchange rate movements during the year. Refer to note 13 for the details of the foreign exchange translation gain/(loss) on the US$
borrowings.
7. TAXATION
The deferred tax expense for the six months ended 31 December 2019 is higher than the comparative period due to an increase in temporary differences related to unredeemed capital expenditure, following an increase in taxable mining income. The current taxation expense for the six months ended 31 December 2019 is higher than the comparative period due to a foreign exchange gain on the USD loans compared with a loss in December 2018, higher derivative gains from the foreign exchange hedging contracts and mining profits earned during the six months ended 31 December 2019.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
8. EARNINGS(LOSS) PER ORDINARY SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
|
31 December
2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
Restated*
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Weighted average number of shares (million)
|
535
|
|
515
|
|
524
|
|
|
Weighted average number of diluted shares (million)
|
549
|
|
537
|
|
533
|
|
|
|
|
|
|
|
Total earnings/(loss) per share (cents):
|
|
|
|
|
|
|
|
|
|
Basic earnings profit/(loss)
|
249
|
|
(4
|
)
|
(498
|
)
|
|
Diluted earnings profit/(loss)1
|
240
|
|
(6
|
)
|
(500
|
)
|
|
Headline earnings/(loss)
|
249
|
|
(4
|
)
|
204
|
|
|
Diluted headline earnings/(loss)1
|
240
|
|
(6
|
)
|
197
|
|
|
|
|
|
|
*Refer to note 2 for detail.
1 The dilution is as a result of the effect of including share options issued to employees as potential ordinary shares and the potential reduction in earnings attributable to equity holders of the parent company as a result of the exercise of the Tswelopele Beneficiation Operation (Phoenix) option. Phoenix contributed a profit and therefore the reduction in earnings attributable to Harmony would reduce the profit and profit per share or increase the loss and loss per share. Refer to note 11 for further information.
Reconciliation of headline earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
31 December
2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
Restated*
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Net profit/(loss) for the period
|
1 332
|
|
(19
|
)
|
(2 607
|
)
|
|
Adjusted for:
|
|
|
|
|
Impairment of assets
|
—
|
|
—
|
|
3 898
|
|
|
Taxation effect on impairment of assets
|
—
|
|
—
|
|
(239
|
)
|
|
Profit on sale of property, plant and equipment
|
(1
|
)
|
(2
|
)
|
(5
|
)
|
|
Loss on scrapping of property, plant and equipment
|
—
|
|
—
|
|
21
|
|
|
Taxation effect on loss on scrapping of property, plant and equipment
|
—
|
|
—
|
|
(1
|
)
|
|
Headline earnings
|
1 331
|
|
(21
|
)
|
1 067
|
|
*Refer to note 2 for detail.
9. LEASES
Key judgements applied in determining the right-of-use assets and lease liability were:
•assessing whether an arrangement contains a lease: various factors are considered, including whether a service contract includes the implicit right to the majority of the economic benefit from assets used in providing the service;
•determining the lease term: management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee. The group applies the considerations for short-term leases where leases are modified to extend the period by 12 months or less on expiry and these modifications are assessed on a standalone basis; and
•determining the discount rate: in determining the incremental borrowing rates, management considers the term of the lease, the nature of the asset being leased, in country borrowings as well as other sources of finance.
The group leases various assets including buildings, plant, equipment, containers and machinery. The right-of-use assets arising from these leases are included in the property, plant and equipment balance in the consolidated balance sheet. The movement in the right-of-use assets is as follows:
9. LEASES continued
|
|
|
|
|
|
|
|
Six months ended
31 December 2019
(Reviewed)
|
|
|
Figures in million
|
|
|
|
|
Balance at beginning of the period
|
—
|
|
|
Impact of adopting IFRS 16 - 1 July 2019
|
99
|
|
|
Additions
|
68
|
|
|
Depreciation
|
(20
|
)
|
|
Translation
|
(1
|
)
|
|
|
|
|
Balance at end of the period
|
146
|
|
The non-current and current portions of the lease liability is included in other non-current liabilities and trade and other payables in the consolidated balance sheet respectively.
The movement in the lease liabilities is as follows:
|
|
|
|
|
|
|
|
As at
31 December 2019
(Reviewed)
|
|
|
Figures in million
|
|
|
|
|
Balance at beginning of the period
|
—
|
|
|
Impact of adopting IFRS 16 - 1 July 2019
|
99
|
|
|
Additions
|
56
|
|
|
Interest expense on lease liabilities
|
4
|
|
|
Lease payments made
|
(21
|
)
|
|
Translation
|
(2
|
)
|
|
|
|
|
Balance at end of the period
|
136
|
|
|
|
|
|
Current portion of lease liabilities
|
(55
|
)
|
|
Non-current portion of lease liabilities
|
81
|
|
The maturity of the group's undiscounted lease payments is as follows:
|
|
|
|
|
|
|
|
As at
31 December 2019
(Reviewed)
|
|
|
Figures in million
|
|
|
|
|
Less than and including one year
|
59
|
|
|
Between one and five years
|
90
|
|
|
Five years and more
|
—
|
|
|
|
|
|
Total
|
149
|
|
Reconciliation between lease commitments as at 30 June 2019 and IFRS 16 lease liability as at 1 July 2019:
|
|
|
|
|
|
|
|
As at
31 December 2019
(Reviewed)
|
|
|
Figures in million
|
|
|
|
|
Lease commitments as at 30 June 20191
|
40
|
|
|
Effect of options to extend the lease term
|
86
|
|
|
Discounting of lease liabilities
|
(27
|
)
|
|
|
|
|
Impact of adopting IFRS 16 - 1 July 2019
|
99
|
|
1 The lease commitments represent solely payments under non-cancellable periods per the contracts and exclude any options to extend the lease term.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
9. LEASES continued
The weighted average incremental borrowing rate at the date of initial application is 9.82% for the South African operations and 5.84% for the South-east Asian region.
The amounts included in the income statement relating to leases:
|
|
|
|
|
|
|
|
Six months ended
31 December 2019
(Reviewed)
|
|
|
Figures in million
|
|
|
|
|
Depreciation of right-of-use assets1
|
20
|
|
|
Interest expense on lease liabilities2
|
4
|
|
|
Short-term leases expensed3, 4
|
147
|
|
|
Leases of low value assets expensed3
|
16
|
|
|
Variable lease payments expensed3, 5
|
201
|
|
1 Included in depreciation and amortisation.
2 Included in finance costs.
3 Included in production costs and corporate, administration and other expenditure.
4 The amount includes leases that expire within 12 months of adoption as management elected the short-term expedient.
5 These were driven by consumption patterns and are not linked to a rate or index.
10. DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
Rand gold hedging contracts
|
|
US$ commodity contracts
|
|
Foreign exchange hedging contracts
|
|
Total
|
|
|
|
|
|
|
|
|
Six months ended 31 December 2019 (Reviewed)
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial assets
|
104
|
|
13
|
|
622
|
|
739
|
|
|
|
|
|
|
|
|
Non-current
|
86
|
|
8
|
|
109
|
|
203
|
|
|
Current
|
18
|
|
5
|
|
513
|
|
536
|
|
|
|
|
|
|
|
|
Derivative financial liabilities
|
(578
|
)
|
(115
|
)
|
—
|
|
(693
|
)
|
|
|
|
|
|
|
|
Non-current
|
(142
|
)
|
(20
|
)
|
—
|
|
(162
|
)
|
|
Current
|
(436
|
)
|
(95
|
)
|
—
|
|
(531
|
)
|
|
|
|
|
|
|
|
Net derivative financial instruments
|
(474
|
)
|
(102
|
)
|
622
|
|
46
|
|
|
|
|
|
|
|
|
Unamortised day one net loss included above
|
24
|
|
13
|
|
—
|
|
37
|
|
|
|
|
|
|
|
|
Realised gains/(losses) included in revenue
|
(289
|
)
|
(28
|
)
|
—
|
|
(317
|
)
|
|
Unrealised losses included in other reserves
|
291
|
|
101
|
|
—
|
|
392
|
|
|
|
|
|
|
|
|
Gains/(losses) included in gains on derivatives
|
(56
|
)
|
(8
|
)
|
243
|
|
179
|
|
|
Day one loss amortisation
|
(20
|
)
|
(2
|
)
|
—
|
|
(22
|
)
|
|
|
|
|
|
|
|
Total gains on derivatives
|
(76
|
)
|
(10
|
)
|
243
|
|
157
|
|
|
|
|
|
|
|
|
Hedge effectiveness
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative changes in the fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness
|
(463
|
)
|
(80
|
)
|
—
|
|
(543
|
)
|
|
Cumulative changes in the fair value of the hedged item used as the basis for recognising hedge ineffectiveness.
|
463
|
|
80
|
|
—
|
|
543
|
|
|
|
|
|
|
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
10. DERIVATIVE FINANCIAL INSTRUMENTS continued
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
Rand gold hedging contracts
|
|
US$ commodity contracts
|
|
Foreign exchange hedging contracts
|
|
Total
|
|
|
Six months ended 31 December 2018 (Reviewed)
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial assets
|
166
|
|
41
|
|
122
|
|
329
|
|
|
|
|
|
|
|
|
Non-current
|
47
|
|
—
|
|
76
|
|
123
|
|
|
Current
|
119
|
|
41
|
|
46
|
|
206
|
|
|
|
|
|
|
|
|
Derivative financial liabilities
|
(86
|
)
|
—
|
|
(272
|
)
|
(358
|
)
|
|
|
|
|
|
|
|
Non-current
|
(29
|
)
|
—
|
|
(26
|
)
|
(55
|
)
|
|
Current
|
(57
|
)
|
—
|
|
(246
|
)
|
(303
|
)
|
|
|
|
|
|
|
|
Net derivative financial instruments
|
80
|
|
41
|
|
(150
|
)
|
(29
|
)
|
|
|
|
|
|
|
|
Unamortised day one net loss included above
|
30
|
|
—
|
|
—
|
|
30
|
|
|
|
|
|
|
|
|
Realised gains included in revenue
|
365
|
|
—
|
|
—
|
|
365
|
|
|
Unrealised gains included in other reserves
|
125
|
|
—
|
|
—
|
|
125
|
|
|
|
|
|
|
|
|
Gains/(losses) included in gains on derivatives
|
(30
|
)
|
36
|
|
29
|
|
35
|
|
|
Day one loss amortisation
|
(15
|
)
|
—
|
|
—
|
|
(15
|
)
|
|
|
|
|
|
|
|
Total gains on derivatives
|
(45
|
)
|
36
|
|
29
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge effectiveness
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative changes in the fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness
|
362
|
|
—
|
|
—
|
|
362
|
|
|
Cumulative changes in the fair value of the hedged item used as the basis for recognising hedge ineffectiveness.
|
(362
|
)
|
—
|
|
—
|
|
(362
|
)
|
|
|
|
|
|
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
10. DERIVATIVE FINANCIAL INSTRUMENTS continued
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
Rand gold hedging contracts
|
|
US$ commodity contracts
|
|
Foreign exchange hedging contracts
|
|
Total
|
|
|
|
|
|
|
|
|
Year ended 30 June 2019 (Audited)
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial assets
|
45
|
|
5
|
|
456
|
|
506
|
|
|
|
|
|
|
|
|
Non-current
|
23
|
|
1
|
|
173
|
|
197
|
|
|
Current
|
22
|
|
4
|
|
283
|
|
309
|
|
|
|
|
|
|
|
|
Derivative financial liabilities
|
(383
|
)
|
(57
|
)
|
(2
|
)
|
(442
|
)
|
|
|
|
|
|
|
|
Non-current
|
(158
|
)
|
(14
|
)
|
—
|
|
(172
|
)
|
|
Current
|
(225
|
)
|
(43
|
)
|
(2
|
)
|
(270
|
)
|
|
|
|
|
|
|
|
Net derivative financial instruments
|
(338
|
)
|
(52
|
)
|
454
|
|
64
|
|
|
|
|
|
|
|
|
Unamortised day one net loss included above
|
36
|
|
5
|
|
—
|
|
41
|
|
|
|
|
|
|
|
|
Realised gains included in revenue
|
453
|
|
—
|
|
—
|
|
453
|
|
|
Unrealised losses included in other reserves
|
165
|
|
49
|
|
—
|
|
214
|
|
|
|
|
|
|
|
|
Gains/(losses) included in gains on derivatives
|
(51
|
)
|
13
|
|
554
|
|
516
|
|
|
Day one loss amortisation
|
(31
|
)
|
(1
|
)
|
—
|
|
(32
|
)
|
|
|
|
|
|
|
|
Total gains on derivatives
|
(82
|
)
|
12
|
|
554
|
|
484
|
|
|
|
|
|
|
|
|
Hedge effectiveness
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative changes in the fair value of the hedging instrument used as the basis for recognising hedge ineffectiveness
|
288
|
|
(49
|
)
|
—
|
|
239
|
|
|
Cumulative changes in the fair value of the hedged item used as the basis for recognising hedge ineffectiveness.
|
(288
|
)
|
49
|
|
—
|
|
(239
|
)
|
|
|
|
|
|
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
10. DERIVATIVE FINANCIAL INSTRUMENTS continued
The following table shows the volume of open positions at the reporting date:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2020
|
FY2021
|
FY 2022
|
TOTAL
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ZAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zero cost collars
|
|
|
|
|
|
|
|
|
|
|
US$m
|
82
|
|
80
|
|
70
|
|
59
|
|
52
|
|
29
|
|
5
|
|
—
|
|
377
|
|
|
Floor
|
14.83
|
|
14.99
|
|
15.28
|
|
15.32
|
|
15.46
|
|
15.62
|
|
15.91
|
|
—
|
|
15.18
|
|
|
Cap
|
15.71
|
|
15.89
|
|
16.24
|
|
16.38
|
|
16.54
|
|
16.76
|
|
17.31
|
|
—
|
|
16.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward contracts
|
|
|
|
|
|
|
|
|
|
|
US$m
|
45
|
|
52
|
|
59
|
|
35
|
|
24
|
|
6
|
|
—
|
|
—
|
|
221
|
|
|
FEC
|
15.61
|
|
15.57
|
|
15.92
|
|
15.82
|
|
15.96
|
|
16.23
|
|
—
|
|
—
|
|
15.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R/gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
95
|
|
96
|
|
79
|
|
78
|
|
75
|
|
66
|
|
40
|
|
4
|
|
533
|
|
|
R'000/kg
|
648
|
|
661
|
|
674
|
|
682
|
|
692
|
|
733
|
|
798
|
|
782
|
|
688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
12
|
|
12
|
|
12
|
|
12
|
|
11
|
|
9
|
|
7
|
|
3
|
|
78
|
|
|
US$/oz
|
1 357
|
|
1 370
|
|
1 413
|
|
1 442
|
|
1 484
|
|
1 502
|
|
1 531
|
|
1 534
|
|
1 438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
107
|
|
108
|
|
91
|
|
90
|
|
86
|
|
75
|
|
47
|
|
7
|
|
611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$/silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
'000 oz
|
360
|
|
360
|
|
330
|
|
290
|
|
240
|
|
210
|
|
170
|
|
30
|
|
1990
|
|
|
Floor
|
17.16
|
|
17.16
|
|
17.44
|
|
17.84
|
|
17.98
|
|
18.18
|
|
18.24
|
|
17.33
|
|
17.61
|
|
|
Cap
|
18.57
|
|
18.57
|
|
18.88
|
|
19.30
|
|
19.43
|
|
19.67
|
|
19.73
|
|
18.73
|
|
19.05
|
|
|
|
|
|
|
|
|
|
|
|
|
Refer to note 14 for details on the fair value measurements.
11. NON-CONTROLLING INTEREST
In 2013 Harmony entered into a transaction to fund an empowerment transaction to sell 25% of its Phoenix operation (now Tswelopele Beneficiation Operation(TBO)) to Black Economic Empowerment (BEE) shareholders. The transaction was accounted for as an in-substance option as the BEE shareholders would only share in the upside of their equity interest in TBO until the date the loans provided by Harmony were fully repaid.
Effective 31 December 2019, the BEE shareholder loans were repaid in full and the option is deemed to have been exercised. The portion of the BEE shareholders' interest in TBO was measured at the net asset value of negative R5 million and reclassified to non-controlling interest on this date. Going forward, the total comprehensive income attributable to the BEE shareholders will be allocated to non-controlling interest.
TBO's negative net asset value of R5 million consists of accumulated profits of R222 million and a historic debit common control reserve of R250 million.
12. PROVISION FOR SILICOSIS SETTLEMENT
On 26 July 2019, the Johannesburg High Court approved the R5.2 billion settlement of the silicosis and tuberculosis class action suit between the Occupational Lung Disease Working Group – representing Gold Fields, African Rainbow Minerals, Anglo American SA, AngloGold Ashanti, Harmony and Sibanye Stillwater – and lawyers representing affected mineworkers. The mandatory three-month period, during which potential beneficiaries could opt out of the settlement agreement, is completed and the Tshiamiso Trust has been set up to track and trace class members, process all submitted claims, including the undertaking of benefit medical examinations, and pay benefits to eligible claimants.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
12. PROVISION FOR SILICOSIS SETTLEMENT continued
Harmony has provided for the estimated cost of the settlement based on actuarial assessments. At 31 December 2019, management had estimated Harmony's share as R912 million (pre-tax). The time value of money recognised during the December 2019 period amounts to R39 million. Payments to the trust set up to administer the settlement amounted to R69 million. A portion has been transferred to current liabilities.
13. BORROWINGS
During the six months ended 31 December 2019:
|
|
|
|
•
|
On 26 September 2019, Harmony and a syndicate of local and international lenders, which was jointly arranged by Nedbank Limited and ABSA Bank Limited, concluded a new US$400 million facility, replacing the previous US$350 million facility. The tenure of three years can be extended by another one year. The key terms and conditions of the facility are included below.
|
As part of the facility, the tangible net worth to net debt covenant has been set to at least 4 times and the same ratio has been applied to all other facilities.
An amount of US$295 million (R4 465 million) was repaid on the old facility, while US$300 million (R4 541 million) was drawn down on the new facility during October 2019.
|
|
|
|
•
|
Harmony repaid US$3.0 million (R44 million) on the Westpac Bank loan.
|
|
|
|
|
•
|
Repayments of R500 million and draw downs of R200 million were made on the R2.0 billion facility with Nedbank and ABSA.
|
The group complied with all debt covenants as at 31 December 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
US$ term loan
US dollar
|
|
US$ RCF
US dollar
|
|
Rand term loan
SA rand
|
|
Rand RCF
SA rand
|
|
Westpac fleet loan US dollar
|
|
|
|
|
|
|
|
|
|
Borrowings summary at 31 December 2019
|
|
|
|
|
|
|
Original facility
|
200
|
|
200
|
|
600
|
|
1 400
|
|
24
|
|
|
Drawn down/ loan balance
|
200
|
|
100
|
|
600
|
|
600
|
|
17
|
|
|
Undrawn committed borrowing facilities
|
—
|
|
100
|
|
—
|
|
800
|
|
N/A
|
|
|
Maturity
|
August
|
|
August
|
|
November
|
|
November
|
|
June
|
|
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
|
Interest rate
|
LIBOR +
3.05%
|
|
LIBOR +
2.90%
|
|
JIBAR +
2.90%
|
|
JIBAR +
2.80%
|
|
LIBOR +
3.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
31 December
2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Translation gain/(loss) on US$ facilities
|
49
|
|
(180
|
)
|
(99
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Rand/US$ exchange rate:
|
|
|
|
|
Closing/spot
|
13.99
|
|
14.38
|
|
14.13
|
|
|
Average
|
14.69
|
|
14.17
|
|
14.18
|
|
|
|
|
|
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
14. FINANCIAL RISK MANAGEMENT ACTIVITIES
Foreign exchange risk
Harmony's revenues are sensitive to the R/US$ exchange rate as all revenues are generated by gold sales denominated in US$. Harmony maintains a foreign currency hedging programme to manage foreign exchange risk. The limit currently set by the Board is 25% of the group's foreign exchange risk exposure for a period of 24 months. Refer to note 10 for the details of the contracts. The audit and risk committee reviews the details of the programme quarterly.
Commodity price sensitivity
The profitability of the group’s operations, and the cash flows generated by those operations, are affected by changes in the market price of gold, and in the case of Hidden Valley, silver as well. Harmony entered into derivative contracts to manage the variability in cash flows from the group’s production, in order to create cash certainty and protect the group against lower commodity prices. The general limit for gold hedging currently set by the Board is 20% for a 24-month period. In response to the increase in the rand gold price, this limit was temporarily increased to 24% to accommodate additional hedging for certain more marginal operations. This increased limit normalizes back to 20% by the end of the 2020 financial year. The limit set by the Board is 50% of silver exposure over a 24-month period.
Management continues to top-up these programmes as and when opportunities arise to lock in attractive margins for the business, but are not required to maintain hedging at these levels. The audit and risk committee reviews the details of the programme quarterly.
Refer to note 10 and the fair value determination section below for further detail on these contracts.
Fair value determination
The fair value levels of hierarchy are as follows:
Level 1: Quoted prices (unadjusted) in active markets;
Level 2: 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);
Level 3: Inputs for the asset that are not based on observable market data (that is unobservable inputs).
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hierarchy level
|
At
31 December 2019 (Reviewed)
|
|
At
30 June
2019 (Audited)
|
|
At
31 December 2018 (Reviewed)
|
|
|
|
|
Figures in million
|
|
|
|
|
|
|
|
Fair value through other comprehensive income financial instruments
|
|
|
|
|
|
Other non-current assets
|
Level 3
|
72
|
|
59
|
|
61
|
|
|
Fair value through profit or loss financial instruments
|
|
|
|
|
|
Restricted investments1
|
Level 2
|
1 259
|
|
1 256
|
|
1 215
|
|
|
Derivative financial assets2
|
Level 2
|
739
|
|
506
|
|
329
|
|
|
Derivative financial liabilities2
|
Level 2
|
693
|
|
(442
|
)
|
(358
|
)
|
|
Loan to ARM BBEE Trust3
|
Level 3
|
285
|
|
271
|
|
270
|
|
|
|
|
|
|
|
1 The majority of the balance is directly derived from the Top 40 index on the JSE, and is discounted at market interest rates. This relates to equity linked deposits in the group's environmental rehabilitation trust funds. The balance of the environmental trust funds are carried at amortised cost and therefore not disclosed here.
2 The mark-to market remeasurement of the following contracts is derived from:
|
|
|
|
•
|
Forex hedging contracts (zero cost collars): a Black-Scholes valuation technique, derived from spot rand/US$ exchange rate inputs, implied volatilities on the rand/US$ exchange rate, rand/US$ inter-bank interest rates and discounted at market interest rates (zero-coupon interest rate curve). FECs are derived from the forward rand/US$ exchange rate and discounted at market interest rates (zero-coupon interest rate curve).
|
|
|
|
|
•
|
Rand gold hedging contracts (forward sale contracts): spot Rand/US$ exchange rate, Rand and Dollar interest rates (forward points), spot US$ gold price, differential between the US interest rate and gold lease interest rate which is discounted at market interest rates.
|
|
|
|
|
•
|
US$ gold hedging contracts (forward sale contracts): spot US$ gold price, differential between the US interest rate and gold lease interest rates and discounted at market interest rates.
|
|
|
|
|
•
|
Silver hedging contracts (zero cost collars): a Black-Scholes valuation technique, derived from spot US$ silver price, strike price, implied volatilities, time to maturity and interest rates and discounted at market interest rates.
|
3 The fair value was calculated using a discounted cash flow model taking into account projected interest payments and the projected ARM share price on the expected repayment date.
For all other financial instruments, fair value approximates carrying value.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
15. ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
31 December 2019
(Reviewed)
|
|
31 December
2018
(Reviewed)
|
|
30 June
2019
(Audited)
|
|
|
|
|
|
|
|
Capital expenditure - operations
|
1 695
|
|
1 739
|
|
3 490
|
|
|
Capital and capitalised exploration and evaluation expenditure for Wafi-Golpu
|
40
|
|
161
|
|
350
|
|
|
Additions resulting from stripping activities
|
535
|
|
500
|
|
1 196
|
|
|
|
|
|
|
|
Total additions to property, plant and equipment
|
2 270
|
|
2 400
|
|
5 036
|
|
16. COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
At
|
|
|
Figures in million
|
31 December 2019
(Reviewed)
|
|
30 June
2019
(Audited)
|
|
31 December
2018
(Reviewed)
|
|
|
|
|
|
|
|
Capital expenditure commitments:
|
|
|
|
|
Contracts for capital expenditure
|
463
|
|
418
|
|
475
|
|
|
Authorised by the directors but not contracted for
|
1 373
|
|
1 499
|
|
1 370
|
|
|
|
|
|
|
|
Total capital commitments
|
1 836
|
|
1 917
|
|
1 845
|
|
This expenditure will be financed from existing resources and, where appropriate, borrowings.
Contingent liabilities
For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended
30 June 2019.
17. RELATED PARTIES
|
|
|
|
|
|
|
|
|
|
|
Name of director/prescribed officer
|
Shares
purchased
in open
market
|
|
Shares sold
in open
market
|
|
Performance
shares
vested and
retained
|
|
|
|
|
|
|
|
Harry 'Mashego 'Mashego (Executive Director)
|
—
|
|
593
|
|
—
|
|
|
|
|
|
|
18. SEGMENT REPORT
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM).
The segment report follows on page 30.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (Rand)
19. RECONCILIATION OF SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
Figures in million
|
31 December 2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
Restated
|
|
|
|
|
|
|
Reconciliation of production profit to gross profit/(loss)
|
|
|
|
|
|
|
|
Revenue
|
15 477
|
|
13 789
|
|
|
|
15 009
|
|
13 472
|
|
–
Other metal sales treated as by-product credits in the segment report
|
468
|
|
317
|
|
|
Production costs
|
(11 366
|
)
|
(10 404
|
)
|
|
|
(10 898
|
)
|
(10 087
|
)
|
–
Other metal sales treated as by-product credits in the segment report
|
(468
|
)
|
(317
|
)
|
|
|
|
|
|
|
|
|
|
Production profit per segment report
|
4 111
|
|
3 385
|
|
|
Amortisation and depreciation
|
(1 926
|
)
|
(2 129
|
)
|
|
Other cost of sales items
|
(206
|
)
|
(396
|
)
|
|
|
|
|
|
Gross profit/(loss) as per income statements1
|
1 979
|
|
860
|
|
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.
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
|
Figures in million
|
31 December 2019
(Reviewed)
|
|
31 December 2018
(Reviewed)
|
|
|
|
|
|
|
Reconciliation of total segment mining assets to consolidated property, plant and equipment
|
|
|
|
|
|
|
|
Property, plant and equipment not allocated to a segment
|
|
|
|
Mining assets
|
364
|
|
972
|
|
|
Undeveloped property
|
3 681
|
|
3 681
|
|
|
Other non-mining assets
|
126
|
|
111
|
|
|
Wafi-Golpu assets
|
2 450
|
|
2 325
|
|
|
|
|
|
|
|
6 621
|
|
7 089
|
|
20. SUBSEQUENT EVENTS
At 1 January 2020, the group performed an assessment of Joel’s Level 137 decline project and concluded that it was in commercial levels of production per our accounting policy. The decline area is considered substantially complete and ready for its intended use as:
–Capital expenditure is 98% of project cost estimates,
–More than an insignificant amount of gold is being produced in a saleable form and
–The level has the ability to sustain the ongoing production of gold.
Going forward, the accumulated cost of developing the level (approximately R900 million) will be transferred from assets under construction to mining assets within property, plant and equipment. The capitalisation of borrowing costs will cease and depreciation will commence.
21. REVIEW CONCLUSION
These condensed consolidated financial statements for the period ended 31 December 2019 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon. A copy of the auditor's review conclusion is available for inspection at the company's registered office, together with the interim financial statements identified in the auditor's report.
SEGMENT REPORT (RAND/METRIC)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 (REVIEWED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Production cost
|
Production profit/(loss)
|
Mining assets
|
Capital expenditure#
|
Kilograms produced*
|
Tonnes milled*
|
|
|
31 December
|
31 December
|
31 December
|
31 December
|
31 December
|
31 December
|
31 December
|
|
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018@
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|
|
R million
|
R million
|
R million
|
R million
|
R million
|
kg
|
t'000
|
|
South Africa
Underground
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tshepong operations
|
3 141
|
|
2 468
|
|
2 310
|
|
2 028
|
|
831
|
|
440
|
|
6 591
|
|
8 325
|
|
572
|
|
584
|
|
4 479
|
|
4 222
|
|
889
|
|
838
|
|
|
Moab Khotsong
|
2 854
|
|
2 475
|
|
1 795
|
|
1 581
|
|
1 059
|
|
894
|
|
3 783
|
|
3 842
|
|
298
|
|
286
|
|
3 987
|
|
4 418
|
|
456
|
|
532
|
|
|
Bambanani
|
910
|
|
747
|
|
565
|
|
492
|
|
345
|
|
255
|
|
488
|
|
612
|
|
31
|
|
32
|
|
1 297
|
|
1 277
|
|
123
|
|
118
|
|
|
Joel
|
599
|
|
440
|
|
546
|
|
493
|
|
53
|
|
(53
|
)
|
1 047
|
|
1 067
|
|
91
|
|
97
|
|
855
|
|
742
|
|
233
|
|
226
|
|
|
Doornkop
|
1 166
|
|
1 035
|
|
923
|
|
802
|
|
243
|
|
233
|
|
2 828
|
|
2 725
|
|
167
|
|
144
|
|
1 632
|
|
1 766
|
|
381
|
|
389
|
|
|
Target 1
|
742
|
|
880
|
|
761
|
|
774
|
|
(19
|
)
|
106
|
|
1 199
|
|
1 317
|
|
192
|
|
152
|
|
1 136
|
|
1 500
|
|
305
|
|
312
|
|
|
Kusasalethu
|
1 189
|
|
1 451
|
|
1 393
|
|
1 237
|
|
(204
|
)
|
214
|
|
1 274
|
|
2 075
|
|
118
|
|
158
|
|
1 648
|
|
2 414
|
|
349
|
|
358
|
|
|
Masimong
|
818
|
|
673
|
|
684
|
|
625
|
|
134
|
|
48
|
|
65
|
|
85
|
|
17
|
|
54
|
|
1 208
|
|
1 152
|
|
311
|
|
312
|
|
|
Unisel
|
397
|
|
390
|
|
320
|
|
290
|
|
77
|
|
100
|
|
29
|
|
47
|
|
5
|
|
22
|
|
586
|
|
665
|
|
136
|
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other surface operations
|
1 373
|
|
1 204
|
|
999
|
|
989
|
|
374
|
|
215
|
|
716
|
|
557
|
|
33
|
|
38
|
|
2 009
|
|
2 092
|
|
7 862
|
|
8 136
|
|
|
Total South Africa
|
13 189
|
|
11 763
|
|
10 296
|
|
9 311
|
|
2 893
|
|
2 452
|
|
18 020
|
|
20 652
|
|
1 524
|
|
1 567
|
|
18 837
|
|
20 248
|
|
11 045
|
|
11 351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hidden Valley
|
1 820
|
|
1 709
|
|
602
|
|
776
|
|
1 218
|
|
933
|
|
3 568
|
|
3 703
|
|
706
|
|
671
|
|
2 574
|
|
3 111
|
|
2 039
|
|
2 037
|
|
|
Total international
|
1 820
|
|
1 709
|
|
602
|
|
776
|
|
1 218
|
|
933
|
|
3 568
|
|
3 703
|
|
706
|
|
671
|
|
2 574
|
|
3 111
|
|
2 039
|
|
2 037
|
|
|
Total operations
|
15 009
|
|
13 472
|
|
10 898
|
|
10 087
|
|
4 111
|
|
3 385
|
|
21 588
|
|
24 355
|
|
2 230
|
|
2 238
|
|
21 411
|
|
23 359
|
|
13 084
|
|
13 388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of the segment information to the consolidated income statement and balance sheet (refer to note 19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
468
|
|
317
|
|
468
|
|
317
|
|
—
|
|
—
|
|
6 621
|
|
7 089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15 477
|
|
13 789
|
|
11 366
|
|
10 404
|
|
4 111
|
|
3 385
|
|
28 209
|
|
31 444
|
|
2 230
|
|
2 238
|
|
21 411
|
|
23 359
|
|
13 084
|
|
13 388
|
|
@ Restated. Refer to note 2 for detail. The restated amounts are not audited.
# Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of R40 million (2018: R161 million).
* Production statistics are unaudited and not reviewed.
CONDENSED CONSOLIDATED INCOME STATEMENTS (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
|
31 December
2019
|
|
31 December
2018
Restated*
|
|
30 June
2019
|
|
|
|
|
|
|
|
|
Revenue
|
|
1 054
|
|
973
|
|
1 898
|
|
|
Cost of sales
|
|
(919
|
)
|
(913
|
)
|
(2 037
|
)
|
|
|
|
|
|
|
|
Production costs
|
|
(774
|
)
|
(734
|
)
|
(1 433
|
)
|
|
Amortisation and depreciation
|
|
(131
|
)
|
(151
|
)
|
(286
|
)
|
|
Impairment of assets
|
|
—
|
|
—
|
|
(276
|
)
|
|
Other items
|
|
(14
|
)
|
(28
|
)
|
(42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit/(loss)
|
|
135
|
|
60
|
|
(139
|
)
|
|
Corporate, administration and other expenditure
|
|
(23
|
)
|
(27
|
)
|
(52
|
)
|
|
Exploration expenditure
|
|
(9
|
)
|
(5
|
)
|
(10
|
)
|
|
Gains on derivatives
|
|
11
|
|
1
|
|
34
|
|
|
Other operating income/(expenses)
|
|
(2
|
)
|
(19
|
)
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
112
|
|
10
|
|
(180
|
)
|
|
Share of profits from associates
|
|
3
|
|
2
|
|
4
|
|
|
Investment income
|
|
10
|
|
10
|
|
22
|
|
|
Finance costs
|
|
(23
|
)
|
(21
|
)
|
(41
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before taxation
|
|
102
|
|
1
|
|
(195
|
)
|
|
Taxation
|
|
(11
|
)
|
(3
|
)
|
10
|
|
|
Current taxation
|
|
(4
|
)
|
(2
|
)
|
(10
|
)
|
|
Deferred taxation
|
|
(7
|
)
|
(1
|
)
|
20
|
|
|
|
|
|
|
|
|
Net profit/(loss) for the period
|
|
91
|
|
(2
|
)
|
(185
|
)
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
Owners of the parent
|
|
91
|
|
(2
|
)
|
(185
|
)
|
|
|
|
|
|
|
|
Earnings per ordinary share (cents)
|
|
|
|
|
|
Basic earnings
|
|
17
|
|
—
|
|
(35
|
)
|
|
Diluted earnings
|
|
16
|
|
—
|
|
(36
|
)
|
* Refer to note 2 for detail.
The currency conversion average rates for the six months ended 31 December 2019: US$1 = R14.69
(31 December 2018: US$1 = R14.17) (30 June 2019: US$1 = R14.18).
|
|
|
|
|
Note on convenience translations
The requirements of IAS 21 The Effects of the Changes in Foreign Exchange Rates have not necessarily been applied in the translation of the US Dollar financial statements presented on page 31 to 35.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
|
31 December
2019
|
|
31 December
2018
Restated*
|
|
30 June
2019
|
|
|
|
|
|
|
|
|
Net profit/(loss) for the period
|
|
91
|
|
(2
|
)
|
(185
|
)
|
|
Other comprehensive income for the period, net of income tax
|
|
(18
|
)
|
(15
|
)
|
(48
|
)
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss:
|
|
(18
|
)
|
(15
|
)
|
(48
|
)
|
|
Foreign exchange translation gain/(loss)
|
|
(29
|
)
|
6
|
|
(5
|
)
|
|
Gain on assets measured at fair value through other comprehensive income
|
|
1
|
|
—
|
|
—
|
|
|
Remeasurement of gold hedging contracts
|
|
|
|
|
|
Unrealised gain/(loss) on gold contracts
|
|
(15
|
)
|
—
|
|
(25
|
)
|
|
Released to revenue
|
|
22
|
|
(26
|
)
|
(32
|
)
|
|
Deferred taxation thereon
|
|
3
|
|
5
|
|
12
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
73
|
|
(17
|
)
|
(233
|
)
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
Owners of the parent
|
|
73
|
|
(17
|
)
|
(233
|
)
|
The currency conversion average rates for the six months ended 31 December 2019: US$1 = R14.69
(31 December 2018: US$1 = R14.17) (30 June 2019: US$1 = R14.18).
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (US$)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 (UNAUDITED) (CONVENIENCE TRANSLATION)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures in million
|
|
Share capital
|
|
Accumulated loss
|
|
Other
reserves
|
|
Non-controlling interest
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Balance - 30 June 2019
|
|
2 112
|
|
(836
|
)
|
342
|
|
—
|
|
1 618
|
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
|
—
|
|
—
|
|
6
|
|
—
|
|
6
|
|
|
Net profit for the period
|
|
—
|
|
95
|
|
—
|
|
—
|
|
95
|
|
|
Other comprehensive income for the period
|
|
—
|
|
—
|
|
(18
|
)
|
—
|
|
(18
|
)
|
|
|
|
|
|
|
|
|
|
Balance - 31 December 2019
|
|
2 112
|
|
(741
|
)
|
330
|
|
—
|
|
1 701
|
|
|
|
|
|
|
|
|
|
|
Balance - 1 July 2018
|
|
2 040
|
|
(633
|
)
|
365
|
|
—
|
|
1 772
|
|
|
|
|
|
|
|
|
|
|
Issue of shares
|
|
15
|
|
—
|
|
—
|
|
—
|
|
15
|
|
|
Share-based payments
|
|
—
|
|
—
|
|
10
|
|
—
|
|
10
|
|
|
Net loss for the period*
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
(1
|
)
|
|
Other comprehensive income for the period
|
|
—
|
|
—
|
|
(15
|
)
|
—
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
Balance - 31 December 2018 (Restated)*
|
|
2 055
|
|
(634
|
)
|
360
|
|
—
|
|
1 781
|
|
* Refer to note 2.
The currency conversion closing rates for the year ended 31 December 2019: US$1 = R14.69 (31 December 2018: US$1 = R14.38).
CONDENSED CONSOLIDATED BALANCE SHEETS (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
At
|
|
|
Figures in million
|
|
31 December
2019
|
|
30 June
2019
|
|
31 December
2018
Restated*
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and equipment
|
|
2 016
|
|
1 964
|
|
2 187
|
|
|
Intangible assets
|
|
38
|
|
38
|
|
36
|
|
|
Restricted cash
|
|
7
|
|
6
|
|
6
|
|
|
Restricted investments
|
|
242
|
|
234
|
|
234
|
|
|
Investments in associates
|
|
7
|
|
8
|
|
5
|
|
|
Inventories
|
|
3
|
|
3
|
|
3
|
|
|
Other non-current assets
|
|
26
|
|
24
|
|
22
|
|
|
Derivative financial assets
|
|
15
|
|
14
|
|
9
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
2 354
|
|
2 291
|
|
2 502
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
140
|
|
139
|
|
125
|
|
|
Restricted cash
|
|
4
|
|
3
|
|
3
|
|
|
Trade and other receivables
|
|
94
|
|
75
|
|
83
|
|
|
Derivative financial assets
|
|
38
|
|
22
|
|
14
|
|
|
Cash and cash equivalents
|
|
89
|
|
70
|
|
97
|
|
|
|
|
|
|
|
|
Total current assets
|
|
365
|
|
309
|
|
322
|
|
|
Total assets
|
|
2 719
|
|
2 600
|
|
2 824
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and reserves
|
|
|
|
|
|
Attributable to equity holders of the parent company
|
|
1 701
|
|
1 600
|
|
1 781
|
|
|
Share capital
|
|
2 112
|
|
2 091
|
|
2 055
|
|
|
Other reserves
|
|
330
|
|
338
|
|
360
|
|
|
Accumulated loss
|
|
(741
|
)
|
(829
|
)
|
(634
|
)
|
|
Non-controlling interest
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
Total equity
|
|
1 701
|
|
1 600
|
|
1 781
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Deferred tax liabilities
|
|
54
|
|
49
|
|
77
|
|
|
Provision for environmental rehabilitation
|
|
225
|
|
216
|
|
239
|
|
|
Provision for silicosis settlement
|
|
53
|
|
67
|
|
67
|
|
|
Retirement benefit obligation
|
|
15
|
|
14
|
|
13
|
|
|
Borrowings
|
|
390
|
|
413
|
|
408
|
|
|
Other non-current liabilities
|
|
6
|
|
—
|
|
3
|
|
|
Derivative financial liabilities
|
|
12
|
|
12
|
|
4
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
755
|
|
771
|
|
811
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Provision for silicosis settlement
|
|
13
|
|
—
|
|
—
|
|
|
Borrowings
|
|
6
|
|
6
|
|
6
|
|
|
Trade and other payables
|
|
206
|
|
204
|
|
205
|
|
|
Derivative financial liabilities
|
|
38
|
|
19
|
|
21
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
263
|
|
229
|
|
232
|
|
|
Total equity and liabilities
|
|
2 719
|
|
2 600
|
|
2 824
|
|
The balance sheet for 31 December 2019 converted at a conversion rate of US$1 = R13.99 (30 June 2019: US$1 = R14.13)
(31 December 2018: US$1 = R14.38).
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (US$)
(CONVENIENCE TRANSLATION) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
Year ended
|
|
Figures in million
|
|
31 December
2019
|
|
31 December 2018
|
|
30 June
2019
|
|
|
|
|
|
|
|
|
CASH FLOW FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated by operations
|
|
199
|
|
198
|
|
356
|
|
|
Interest and dividends received
|
|
3
|
|
2
|
|
5
|
|
|
Interest paid
|
|
(11
|
)
|
(13
|
)
|
(27
|
)
|
|
Income and mining taxes paid
|
|
(5
|
)
|
—
|
|
(4
|
)
|
|
|
|
|
|
|
|
Cash generated from operating activities
|
|
186
|
|
187
|
|
330
|
|
|
|
|
|
|
|
|
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Increase in restricted cash
|
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
|
Decrease in amounts invested in restricted investments
|
|
—
|
|
—
|
|
13
|
|
|
Redemption of preference shares from associates
|
|
4
|
|
2
|
|
2
|
|
|
Capital distributions from investments
|
|
—
|
|
2
|
|
2
|
|
|
Additions to property, plant and equipment
|
|
(155
|
)
|
(169
|
)
|
(355
|
)
|
|
|
|
|
|
|
|
Cash utilised by investing activities
|
|
(152
|
)
|
(166
|
)
|
(339
|
)
|
|
|
|
|
|
|
|
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings raised
|
|
323
|
|
79
|
|
107
|
|
|
Borrowings repaid
|
|
(341
|
)
|
(69
|
)
|
(95
|
)
|
|
Proceeds from the issue of shares
|
|
—
|
|
15
|
|
15
|
|
|
Payment of leases
|
|
(1
|
)
|
—
|
|
—
|
|
|
|
|
|
|
|
|
Cash generated/(utilised) from financing activities
|
|
(19
|
)
|
25
|
|
27
|
|
|
Foreign currency translation adjustments
|
|
4
|
|
—
|
|
1
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
19
|
|
46
|
|
19
|
|
|
Cash and cash equivalents - beginning of the period
|
|
70
|
|
51
|
|
51
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - end of the period
|
|
89
|
|
97
|
|
70
|
|
The currency conversion average rates for the six months ended 31 December 2019: US$1 = R14.69
(31 December 2018: US$1 = R14.17) (30 June 2019: US$1 = R14.18).
The closing balance translated at closing rates of 31 December 2019: US$1 = R13.99 (30 June 2019: US$1 = R14.13)
(31 December 2018: US$1 = R14.38).
SEGMENT REPORT (US$/IMPERIAL)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 (CONVENIENCE TRANSLATION) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Production cost
|
Production profit/(loss)
|
Mining assets
|
Capital expenditure#
|
Ounces produced
|
Tons milled
|
|
|
31 December
|
31 December
|
31 December
|
31 December
|
31 December
|
31 December
|
31 December
|
|
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018@
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|
|
US$ million
|
US$ million
|
US$ million
|
US$ million
|
US$ million
|
oz
|
t'000
|
|
South Africa
Underground
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tshepong operations
|
214
|
|
174
|
|
157
|
|
143
|
|
57
|
|
31
|
|
471
|
|
579
|
|
39
|
|
41
|
|
144 003
|
|
135 741
|
|
980
|
|
924
|
|
|
Moab Khotsong
|
194
|
|
175
|
|
122
|
|
112
|
|
72
|
|
63
|
|
270
|
|
267
|
|
20
|
|
20
|
|
128 185
|
|
142 042
|
|
503
|
|
586
|
|
|
Bambanani
|
62
|
|
53
|
|
38
|
|
35
|
|
24
|
|
18
|
|
35
|
|
43
|
|
2
|
|
2
|
|
41 699
|
|
41 057
|
|
136
|
|
130
|
|
|
Joel
|
41
|
|
31
|
|
37
|
|
35
|
|
4
|
|
(4
|
)
|
75
|
|
74
|
|
6
|
|
7
|
|
27 489
|
|
23 855
|
|
257
|
|
249
|
|
|
Doornkop
|
79
|
|
73
|
|
63
|
|
57
|
|
16
|
|
16
|
|
202
|
|
189
|
|
11
|
|
10
|
|
52 470
|
|
56 778
|
|
420
|
|
429
|
|
|
Target 1
|
51
|
|
62
|
|
52
|
|
55
|
|
(1
|
)
|
7
|
|
86
|
|
92
|
|
13
|
|
11
|
|
36 523
|
|
48 226
|
|
336
|
|
345
|
|
|
Kusasalethu
|
81
|
|
102
|
|
95
|
|
87
|
|
(14
|
)
|
15
|
|
91
|
|
144
|
|
8
|
|
11
|
|
52 984
|
|
77 612
|
|
385
|
|
394
|
|
|
Masimong
|
56
|
|
47
|
|
47
|
|
44
|
|
9
|
|
3
|
|
5
|
|
6
|
|
1
|
|
4
|
|
38 838
|
|
37 038
|
|
343
|
|
344
|
|
|
Unisel
|
27
|
|
28
|
|
22
|
|
20
|
|
5
|
|
8
|
|
2
|
|
3
|
|
—
|
|
2
|
|
18 841
|
|
21 380
|
|
150
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other surface operations
|
93
|
|
85
|
|
68
|
|
69
|
|
25
|
|
16
|
|
51
|
|
39
|
|
4
|
|
3
|
|
64 591
|
|
67 258
|
|
8 670
|
|
8 971
|
|
|
Total South Africa
|
898
|
|
830
|
|
701
|
|
657
|
|
197
|
|
173
|
|
1 288
|
|
1 436
|
|
104
|
|
111
|
|
605 623
|
|
650 987
|
|
12 180
|
|
12 516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hidden Valley
|
124
|
|
121
|
|
41
|
|
55
|
|
83
|
|
66
|
|
255
|
|
258
|
|
48
|
|
47
|
|
82 756
|
|
100 021
|
|
2 248
|
|
2 246
|
|
|
Total international
|
124
|
|
121
|
|
41
|
|
55
|
|
83
|
|
66
|
|
255
|
|
258
|
|
48
|
|
47
|
|
82 756
|
|
100 021
|
|
2 248
|
|
2 246
|
|
|
Total operations
|
1 022
|
|
951
|
|
742
|
|
712
|
|
280
|
|
239
|
|
1 543
|
|
1 694
|
|
152
|
|
158
|
|
688 379
|
|
751 008
|
|
14 428
|
|
14 762
|
|
@ Restated. Refer to note 2 for detail.
#Capital expenditure for international operations excludes expenditure spent on Wafi-Golpu of US$3 million (2018: US$11 million).
DEVELOPMENT RESULTS
SIX MONTHS AVERAGE
July 2019 - December 2019
METRIC
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel
|
|
|
Reef
|
Sampled
|
Width
|
Value
|
Gold
|
|
|
Meters
|
Meters
|
(Cm's)
|
(g/t)
|
(Cmg/t)
|
|
Tshepong
|
|
|
|
|
|
|
Basal
|
1 452
|
1 256
|
10.53
|
183.81
|
1 936
|
|
B Reef
|
167
|
154
|
133.42
|
10.30
|
1 374
|
|
All Reefs
|
1 619
|
1 410
|
23.95
|
78.26
|
1 875
|
|
Phakisa
|
|
|
|
|
|
|
Basal
|
820
|
813
|
37.61
|
34.57
|
1 300
|
|
All Reefs
|
820
|
813
|
37.61
|
34.57
|
1 300
|
|
Doornkop
|
|
|
|
|
|
|
South Reef
|
963
|
1 281
|
64.04
|
19.10
|
1 223
|
|
All Reefs
|
963
|
1 281
|
64.04
|
19.10
|
1 223
|
|
Kusasalethu
|
|
|
|
|
|
|
VCR Reef
|
857
|
824
|
83.70
|
17.62
|
1 475
|
|
All Reefs
|
857
|
824
|
83.70
|
17.62
|
1 475
|
|
Target 1
|
|
|
|
|
|
|
Elsburg
|
34
|
44
|
250.36
|
12.83
|
3 213
|
|
All Reefs
|
34
|
44
|
250.36
|
12.83
|
3 213
|
|
Masimong 5
|
|
|
|
|
|
|
Basal
|
450
|
374
|
80.50
|
13.63
|
1 097
|
|
B Reef
|
351
|
401
|
86.59
|
17.42
|
1 509
|
|
All Reefs
|
800
|
775
|
83.65
|
15.66
|
1 310
|
|
Unisel
|
|
|
|
|
|
|
Basal
|
338
|
254
|
147.39
|
9.32
|
1 374
|
|
All Reefs
|
338
|
254
|
147.39
|
9.32
|
1 374
|
|
Joel
|
|
|
|
|
|
|
Beatrix
|
574
|
570
|
57.07
|
15.01
|
857
|
|
All Reefs
|
574
|
570
|
57.07
|
15.01
|
857
|
|
Moab Khotsong
|
|
|
|
|
|
|
VRF
|
690
|
560
|
89.71
|
42.69
|
3 830
|
|
C Reef
|
129
|
72
|
10.03
|
75.76
|
760
|
|
All Reefs
|
819
|
632
|
80.63
|
43.16
|
3 480
|
|
Total Harmony
|
|
|
|
|
|
Basal
|
3 060
|
2 697
|
41.29
|
38.15
|
1 575
|
|
Beatrix
|
574
|
570
|
57.07
|
15.01
|
857
|
|
B Reef
|
517
|
555
|
99.58
|
14.77
|
1 471
|
|
Elsburg
|
34
|
44
|
250.36
|
12.83
|
3 213
|
|
VRF
|
690
|
560
|
89.71
|
42.69
|
3 830
|
|
South Reef
|
963
|
1 281
|
64.04
|
19.10
|
1 223
|
|
VCR
|
857
|
824
|
83.70
|
17.62
|
1 475
|
|
C Reef
|
129
|
72
|
10.03
|
75.76
|
760
|
|
All Reefs
|
6 825
|
6 603
|
62.42
|
25.90
|
1 617
|
VCR: Ventersdorp Contract Reef
MENT RESULTS
S
VERAGE 19 - December 2019
IMPERIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel
|
|
|
Reef
|
Sampled
|
Width
|
Value
|
Gold
|
|
|
Feet
|
Feet
|
(Inch)
|
(oz/t)
|
(In.oz/t)
|
|
Tshepong
|
|
|
|
|
|
|
Basal
|
4 763
|
4 121
|
4.00
|
5.56
|
22
|
|
B Reef
|
548
|
505
|
53.00
|
0.30
|
16
|
|
All Reefs
|
5 310
|
4 626
|
9.00
|
2.39
|
22
|
|
Phakisa
|
|
|
|
|
|
|
Basal
|
2 692
|
2 667
|
15.00
|
1.00
|
15
|
|
All Reefs
|
2 692
|
2 667
|
15.00
|
1.00
|
15
|
|
Doornkop
|
|
|
|
|
|
|
South Reef
|
3 160
|
4 203
|
25.00
|
0.56
|
14
|
|
All Reefs
|
3 160
|
4 203
|
25.00
|
0.56
|
14
|
|
Kusasalethu
|
|
|
|
|
|
|
VCR Reef
|
2 813
|
2 704
|
33.00
|
0.51
|
17
|
|
All Reefs
|
2 813
|
2 704
|
33.00
|
0.51
|
17
|
|
Target 1
|
|
|
|
|
|
|
Elsburg
|
111
|
144
|
99.00
|
0.37
|
37
|
|
All Reefs
|
111
|
144
|
99.00
|
0.37
|
37
|
|
Masimong 5
|
|
|
|
|
|
|
Basal
|
1 475
|
1 227
|
32.00
|
0.39
|
13
|
|
B Reef
|
1 150
|
1 316
|
34.00
|
0.51
|
17
|
|
All Reefs
|
2 625
|
2 543
|
33.00
|
0.46
|
15
|
|
Unisel
|
|
|
|
|
|
|
Basal
|
1 109
|
833
|
58.00
|
0.27
|
16
|
|
All Reefs
|
1 109
|
833
|
58.00
|
0.27
|
16
|
|
Joel
|
|
|
|
|
|
|
Beatrix
|
1 882
|
1 870
|
22.00
|
0.45
|
10
|
|
All Reefs
|
1 882
|
1 870
|
22.00
|
0.45
|
10
|
|
Moab Khotsong
|
|
|
|
|
|
|
VRF
|
2 265
|
1 837
|
35.00
|
1.26
|
44
|
|
C Reef
|
423
|
236
|
4.00
|
2.18
|
9
|
|
All Reefs
|
2 688
|
2 073
|
32.00
|
1.25
|
40
|
|
Total Harmony
|
|
|
|
|
|
Basal
|
10 039
|
8 848
|
16.00
|
1.13
|
18
|
|
Beatrix
|
1 882
|
1 870
|
22.00
|
0.45
|
10
|
|
B Reef
|
1 698
|
1 821
|
39.00
|
0.43
|
17
|
|
Elsburg
|
111
|
144
|
99.00
|
0.37
|
37
|
|
VRF
|
2 265
|
1 837
|
35.00
|
1.26
|
44
|
|
South Reef
|
3 160
|
4 203
|
25.00
|
0.56
|
14
|
|
VCR
|
2 813
|
2 704
|
33.00
|
0.51
|
17
|
|
C Reef
|
423
|
236
|
4.00
|
2.18
|
9
|
|
All Reefs
|
22 390
|
21 664
|
25.00
|
0.74
|
19
|