SA rand   US dollar
20092010Figures in million20102009


Cash generated by operations

   All amounts disclosed include discontinued operations.  
   Reconciliation of profit before taxation to cash generated by operations:  
3 851143 Profit before taxation(1)20405
   Adjustments for:  
1 4671 375 Amortisation and depreciation181167
484331 Impairment of assets4361
(2 751)(104) Profit on sale of mining assets(14)(287)
6(14) Net (decrease)/increase in provision for post retirement benefits(3)1
318 Net increase in provision for environmental rehabilitation2
(12)(56) (Profit)/loss from associates(7)(1)
112 Impairment of investment in associate14
113148 Share-based payments2013
101(38) Net (gain)/loss on financial instruments(5)10
(1) Profit on sale of investment in associate
24 Loss on sale of investment in subsidiary3
(2)(3) Dividends received
(455)(184) Interest received(25)(51)
232229 Interest paid3026
100(16) Provision for doubtful debts(2)11
3129 Bad debts written off43
542 Other non cash transactions8
   Effect of changes in operating working capital items:  
(132)(100) Receivables(13)(15)
(177)(153) Inventories(20)(20)
(162)(60) Accounts payable and accrued liabilities(8)(18)
2 8131 611 Cash generated by operations214319
   (1) Includes discontinued operations  
   Additional cash flow information   
   The income and mining taxes paid in the statement of cash flow represents actual cash paid less refunds received.  
    Acquisitions and disposals of subsidiaries/businesses:  
   For the financial year ended June 2010  
    (a)Disposal of Big Bell Operations  
     On 10 January 2010, the group concluded the sale of Big Bell Operations (Proprietary) Limited, a wholly owned subsidiary operating in Western Australia, for a total consideration of R24 million (US$3.2 million).  
     The aggregate fair values of assets and liabilities sold were:  
64   Property, plant and equipment8
(45)   Rehabilitation liability(6)
5   Profit on disposal1
24   Proceeds received in cash3
    (b)Acquisition of Pamodzi FS assets.  
     On 18 February 2010, the group concluded the acquisition of the Pamodzi FS assets for a total consideration of R405 million, of which R280 million (US$36 million) is attributable to property, plant and equipment and R120 million (US$16 million) to inventories.  
   The principal non-cash transactions for the year were the issue of shares for the acquisition of 26% share of the mining titles on Doornkop South Reef from AVRD (refer to note 25) and share-based payments (refer to note 34).  
   For the financial year ended June 2009  
    (a)Disposal of Randfontein Cooke Assets  
     During the year, the group disposed of its Cooke and Old Randfontein assets to Rand Uranium, a wholly owned subsidiary. In a related transaction, 60% of Rand Uranium’s shares were disposed of to PRF in two tranches. For details, refer to note 21(b).  
     The aggregate fair value of the assets and liabilities sold were:  
     Transaction one  
449   Property, plant and equipment42
35   Environmental trust fund3
(41)   Rehabilitation liability(4)
(19)   Other costs(2)
(25)   Foreign exchange movements5
1 627   Profit on disposal153
2 026   Proceeds received in cash197
     Transaction two  
12   Property, plant and equipment1
73   Environmental trust fund8
(116)   Rehabilitation liability(13)
(19)   Foreign exchange movements(2)
159   Profit on disposal18
109   Proceeds received in cash12
     During the year Harmony and Newcrest entered into a joint venture agreement, which provided that Newcrest would purchase a 30.01 participating interest and a further buy-out of an additional 19.99% participating interest in Harmony's MMJV gold and copper assets.  
     The aggregate fair value of the assets and liabilities sold were:  
     Stage 1: 30.01% participating interest  
1 404   Property, plant and equipment185
42   Trade and other receivables6
7   Inventory1
(74)   Long-term loans(10)
(3)   Rehabilitation liability
   Foreign exchange movements(11)
416   Profit on disposal58
1 792   Proceeds received in cash229
   Stage 2: 10% participating interest  
512 Property, plant and equipment52
7 Trade and other receivables1
8 Inventory1
(30) Long-term loans(3)
(50) Trade and other payables(5)
(1) Rehabilitation liability
439 Profit on disposal44
885 Disposal proceeds90
- Proceeds received in cash
885 Proceeds received by way of the farm-in agreement90
   Stage 3: 9.99% Participating interest  
556 Property, plant and equipment72
13 Trade and other receivables2
24 Inventory3
(21) Long-term loans(3)
(45) Trade and other payables(6)
(22) Rehabilitation liability(3)
76 Profit on disposal10
581 Disposal proceeds75
(47) Proceeds received in cash(6)
534 Proceeds received by way of the farm-in agreement69
   The principal non-cash transactions for the year were the acquisition of PNG royalty agreement (refer to note 16(c)), share-based payments (refer to note 34) and share exchange of Dioro for Avoca (refer to note 20(b)).