14 | Investments in subsidiaries | | |
| | Shares at cost (a)(b) | 22 524 | 21 764 |
| | Loans to subsidiary companies (c) | 4 437 | 4 362 |
| | Loans from subsidiary companies | (740) | (928) |
| | Total investments in subsidiaries | 26 221 | 25 198 |
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| | Refer to Annexure A for a detailed listing of the company's investments in subsidiaries and the loans to and from these companies. | | |
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| | (a) |
During the 2010 financial year, the liquidation process of Harmony Precious Metal Services SAS, Harmony Gold (Peru) SA, Harmony Gold (Isle of Man) Limited and Harmony Gold Netherland BV was finalised. The investments in these companies, amounting to R6 million, were written-off in 2009 in anticipation of the liquidations. | | |
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| | | The investment in the Investment Company of R0.8 million was impaired when it was determined that the carrying value exceeded the Investment Company's net asset value. | | |
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| | (b) | During the 2010 financial year, Harmony Gold (Australia) (Proprietary) Limited (Harmony Australia) issued 212.9 million (2009: 435.2 million) ordinary shares, valued at R762 million (2009: R1 370 million), when the loan to Harmony Australia was capitalised as part of the company's net investment in Harmony Australia. | | |
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| | (c) | During the 2010 financial year, R483 million was provided as irrecoverable for the investment in and loan to Investment Company (refer to note 2). The remaining loan balance of R1.2 billion will be evaluated periodically to determine whether further provision is required. | | |
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| | | During the 2009 financial year, R94 million was provided as irrecoverable for loans to subsidiaries. These subsidiaries are dormant and will be liquidated in due course. Included in the balance are provisions raised for the following loans: | | |
| | | Musuku Benefication Systems (Proprietary) Limited | – | 57 |
| | | Harmony Gold (Marketing) (Proprietary) Limited | – | 25 |
| | | Harmony HIV/AIDS Company (Proprietary) Limited | – | 10 |
| | | ARMGold/Harmony Joint Investment Company (Proprietary) Limited | 483 | – |