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About this report

Join us on our integrated reporting journey.

This report tells the Harmony story – about the company, its people and assets, and how they contribute to our success. We share with you information about our operating context, our strategy, the risks and opportunities we face, our targets, and how we have performed and intend to perform against these. + ABOUT THIS REPORT

About Harmony

We measure, we measure up and we deliver.

Harmony is a gold-mining and exploration company, with over six decades of experience, with operations in South Africa and Papua New Guinea. In 2014, Harmony was the third largest producer of gold in South Africa and the eleventh largest gold producer in the world. + WHO HARMONY IS

Letter from the chairman of the social and ethics committee

I am again honoured to write this report as the chairman of the Harmony social and ethics committee. Sustainability is the crux of Harmony’s objective to leave lasting legacies for our employees, for our operations’ host communities and for the countries in which we operate.

Modise Motloba – Chairman: social and ethics committee+ APPROACH TO SUSTAINABILITY

KEY FEATURES FY14

  • PRODUCTION

    1.17Moz
    GOLD (FY13: 1.14Moz)

  • EMPLOYED

    34 746
    PEOPLE (FY13: 36 579)

  • MINERAL RESERVES

    49.5Moz
    GOLD AND GOLD
    EQUIVALENTS (FY13: 51.5Moz)

  • MINERAL RESOURCES

    133.8Moz
    GOLD AND GOLD
    EQUIVALENTS (FY13: 147.7Moz)

  • REVENUE

    R15 682
    MILLION (FY13: R15 902 million)

OUR 2014 SUITE OF REPORTS

Our 2014 Integrated Report is the primary report in the suite. Other reports in this suite are the Report to shareholders, Financial Report 2014 and the Mineral Resources and Mineral Reserves 2014, these are available for download in pdf format.

ABOUT THIS REPORT

This integrated report tells the story of Harmony Gold Mining Company Limited (Harmony) for our 2014 financial year (FY14), from 1 July 2013 to 30 June 2014. This report is not limited to this time period only, as it also addresses some comparative historical information where this is relevant and provides some insight into how we envisage our future.

In this report we aim to show readers what Harmony has done and achieved, what we plan to do and what we plan to achieve in the future and how we intend to get there. The report reflects on our journey in FY14 – in it we explain external and internal environments, our strategy and business model, and the objectives we have set. For the purpose of integrated reporting we have defined our readers as the primary providers of financial capital – that is shareholders. But, we understand that other stakeholders have a deep and vested interest in our company, and we have tried to address their interests and concerns where it has been possible and appropriate to do so.

Our company, however, is about more than strategy and material risks – it is built on the strengths of our actions. This report examines the way in which we act on our strategy, and the effects this has on our business, our relationships and our prospects.

This report has been compiled through conversations with a range of stakeholders so that it addresses and captures our full story.

We included extensive feedback from stakeholders, which can be seen throughout the report and have highlighted key actions by Harmony during the year that showcase our commitment to both our values and strategy, as well as how we are mitigating key risks. The use of podcasts and case studies also allows us to bring our reporting alive, by providing insight into the Harmony story. A consistent thread throughout this report is the way in which we address our most material risks and issues.

This report comprises a full online report and a summary report which cover all of Harmony’s wholly–owned operations in South Africa as well as its joint venture and own exploration activities in Papua New Guinea. They exclude discontinued operations, unless otherwise stated. In addition, this report details the environmental, socio–economic and governance aspects of these operations, and Harmony as a whole.

For the purposes of this report we define short, medium and long term as follows:

  • Short term –six months to a year
  • Medium term – one year to three years
  • Long–term – longer than three years

In addition to this report, Harmony produces an annual report prepared on a Form 20–F, filed with the United States Securities and Exchange Commission, in compliance with the listing requirements of the New York Stock Exchange. Copies of this will be available from the end of October 2014, free of charge on the Electronic Data Gathering, Analysis and Retrieval system at www.sec.gov and on our corporate website. Any additional information can be found on our website www.harmony.co.za.

This integrated report has been developed in line with the International Integrated Reporting Council Framework, the Global Reporting Initiative G4 guidelines, and the King III Report on Governance for South Africa. In addition, our annual financial statements, including the summarised consolidated statements (which has been sent to shareholders), have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board, the SAICA Financial Reporting Guideline as issued by the Accounting Practice Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council (FRSC), the South African Companies Act 71 of 2008, as amended (Companies Act) and the Listing Requirements of the Johannesburg Stock Exchange.

This year we chose not to produce a separate sustainable development report, deciding rather to make our online integrated report a fully integrated document that gives insight into both our financial and non-financial performance. We decided on this approach as we felt it highlighted our integrated approach to our business: everything we do, from risk assessment and decision making to reporting, is informed by our understanding of how various elements of the business fit together. Our online report has been prepared in line with Global Reporting Initiative G4 requirements, the first year we have met these new reporting guidelines. See the full Global Reporting Initiative index.

Summarised information on mineral resources and reserves appears in this report, with comprehensive information in the Mineral Resources and Mineral Reserves 2014. The resource and reserve statements have been compiled in accordance with the South African Code for Reporting of Exploration Results, Mineral Reserves and Mineral Resources, the Australian Code for Reporting or Mineral Resources and Mineral Reserves and Industry Guide 7 of the United States’ Securities and Exchange Commission. This information was gathered, reviewed and confirmed by the relevant competent persons.

The following restatements were made:

  • The comparative financial figures for 2012 and 2013 have been restated following the adoption of IFRIC20 Stripping Activities in the Production Phase of a Surface Mine. Refer to note 2 of the group financial statements
  • There has also been a restatement of the Scope 3 emissions for FY13 – please refer to energy usage in the environmental performance section
  • The local economic development expenditure for FY13 has been restated due to the change in definition. Refer to how we performed for more

At Harmony we acknowledge that this report is made meaningful by ensuring that the information contained in it is accurate and appropriate. As per previous years, this report has had its most material key performance indicators assured by PwC, Inc. See a copy of their assurance report.

FEEDBACK

Our reporting, and the activities that it discusses, can be improved through feedback. As a result, if you have any comments or suggestions on this report send them to our Investor Relations team: HarmonyIR@harmony.co.za

DIRECTORS’ RESPONSIBILITY FOR THE INTEGRATED REPORT 2014

Our board of directors have read and considered this report, and signed it off on 23 October 2014. For more on this see the assurance report.

To be noted:
  • Throughout this report, “$” or “dollar” refers to US dollar, unless otherwise stated
  • “K” refers to kina, the currency of Papua New Guinea
  • “Moz” refers to million ounces
  • All production volumes are in metric tonnes (t) unless specifically stated as imperial tons

A full glossary of terms and acronyms is available as part of this report.

Important note

For printing purposes only, Harmony’s annual financial statements are presented in a seperate document, the Financial Report 2014. This document is also available in the download manager.