SA rand
Figures in million		2010	2009
24	Cash generated by operations
	Reconciliation of (loss)/profit before taxation to cash generated by operations:
	(Loss)/profit before taxation	(408)	277
	Adjustments for:
	Amortisation and depreciation	283	363
	Impairment of assets	248	52
	Profit on sale of mining assets	(2)	(1)
	Net increase in provision for post retirement benefits	1	2
	Net increase/(decrease) in provision for environmental rehabilitation	35	(46)
	Impairment of investment in associate	–	145
	Impairment of investments in subsidiaries	1	7
	Share-based payments	38	22
	Net gain on financial instruments	(7)	–
	Loss on sale of investment in associate	–	1
	Interest received	(117)	(211)
	Dividends received	(84)	–
	Interest paid	106	355
	Provision for doubtful debts	475	217
	Bad debts written-off	10	7
	Other non cash transactions	5	(12)
	Effect of changes in operating working capital items:
	Receivables	(7)	(29)
	Inventories	(123)	60
	Accounts payable and accrued liabilities	93	39
	Cash generated by operations	547	1 248

	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 and assets:
	For the financial year ended June 2010
	(a)	Acquisition of President Steyn assets
		On 18 February 2010, the company concluded the acquisition of the Pamodzi FS assets for a total consideration of R280 million of which R180 million was attributed to property, plant and equipment and R100 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 of Doornkop South Reef from AVRD (refer to note 15), the capitalisation of the Harmony Australia intercompany loan (refer to note 14(b)) and the share based-payments (refer to note 19).
	For the financial year ended June 2009
	(a)	Disposal of Village Reef Gold Mining Company (Village)
		On 10 July 2008, the company disposed of its 37.8% interest in Village to To the Point Growth Specialists Investments 2 (Pty) Ltd, for a consideration of R1.1 million. The investment in Village as at 30 June 2008 had a fair value of R0.7 million
		The principal non-cash transactions for the year were the issue of shares to Rio Tinto for the acquisition of the Wafi Royalty on behalf of Harmony Australia (refer to note 18), the capitalisation of the Harmony Australia intercompany loan (refer to note 14(b)) and share-based payments (refer to note 19).