Annual Report 2010 Annual Report 2010

Corporate profile

Harmony, one of the world’s 10 largest gold mining companies, operates in South Africa and in Papua New Guinea (PNG), where the Hidden Valley mine recently came into production. In FY10, Harmony produced 1.43 million ounces of gold of which 51 046 ounces were capitalised (FY09:1.46 million ounces).

In South Africa, the company has 10 underground and several surface operations. In PNG, Harmony has a 50% interest in Morobe Mining Joint Ventures (MMJV), which include Hidden Valley, an open-cast gold and silver mine which began production in FY10, the Wafi-Golpu project, and extensive exploration tenements. Harmony’s partner in MMJV is Newcrest Mining Limited (Newcrest), which acquired its interest in this venture from Harmony, the original developer, in FY09. Harmony’s exploration portfolio focuses principally on highly prospective areas in PNG, through MMJV and the 8 000km2 of exploration tenements which are 100% owned by Harmony, as well as exploration projects in South Africa.

At year-end (30 June 2010), the company employed 42 597 people, mostly in South Africa, of whom 36 893 were full-time employees and 5 704 contractors (FY09: 45 685 people, including contractors).

Harmony’s corporate headquarters are located in Randfontein, Gauteng, South Africa.

Significant capital expenditure in recent years has aimed at accessing the group’s extensive resources and extending the lives of its mines. As at 30 June 2010, Harmony reported mineral reserves of 48.1 million ounces and mineral resources of 189.2 million ounces.

Global map with pullouts of southern Africa and PNG

* The former Pamodzi Gold assets in the Free State, Steyn 2 and Target 3, have been included in Harmony's Bambanani and Target operations respectively


Harmony’s strategy is to produce 2 million safe and profitable ounces of gold by 2013. Following a review of assets during FY10, action was taken and capital committed to increase production at existing operations, further the development of current projects and advance scoping studies so as to ensure the future production pipeline of tomorrow’s gold by growing reserves and resources and strengthening the quality of our asset base. See both the Chairman’s letter and the Chief executive officer’s review for further details on Harmony’s strategy.

Our challenge going forward is to meet our targets and objectives and, more specifically, to deliver consistent production results, improve productivity, curb costs and to create and deliver value to shareholders.

Shareholder information

Geographic distribution of shareholders
– 30 June 2010

Geographic distribution of shareholders<br/>– 30 June 2010

Harmony is a public listed company with its primary listing on the JSE Limited (share code: HAR) in South Africa. Harmony’s ordinary shares are also listed on the London Stock Exchange (HRM) and are quoted in the form of American Depositary Receipts on the New York Stock Exchange (HMY). They are also traded over the counter on the Brussels and Berlin exchanges. Harmony voluntarily delisted from Nasdaq in the United States and Euronext Paris on 21 June 2010 and 30 August 2010 respectively.

Harmony’s shareholders are located around the world, primarily in South Africa (45%), United States (26%) and the United Kingdom (18%). At 30 June 2010, there were 428.7 million ordinary shares in issue and the company had a market capitalisation of R34.89 billion (US$4.5 billion).