Notes to the group financial statements

SA rand					US dollar
2009	2010	Figures in million			2010	2009
		24	Trade and other receivables
			Current
			Financial assets:
251	337		Trade receivables (gold)		44	33
259	227		Other trade receivables (a)		30	34
(112)	(96)		Provision for impairment		(13)	(15)
398	468		Trade receivables – net		61	52
112	40		Loans to associates and joint ventures (b)		5	15
85	89		Interest and other receivables (c)		12	11
20	15		Employee receivables		2	2
3	54		Insurance claims receivable (d)		7	–
			Non-financial assets:
74	65		Prepayments		9	10
193	201		Value added tax		26	25
885	932		Total current trade and other receivables		122	115
			Non-current
			Financial assets:
182	179		Loans to associates (e)		23	24
18	12		Other loans receivable		2	2
(125)	(116)		Provision for impairment (f)		(15)	(16)
75	75		Total non-current trade and other receivables		10	10

			(a)	Included in other trade receivables is an amount of R6 million (US$0.7 million) (2009: R70 million (US$9.1 million)) owed by Rand Uranium.

			(b)	An amount of R40 million (US$5 million) (2009: R37 million (US$4.8 million)) is due from Rand Uranium for services and goods supplied in terms of the service level agreements entered into between the group and Rand Uranium. Also included in 2009 is an amount of R75 million (US$9.7 million) receivable by Harmony’s Australian operations, from Newcrest for their portion of the loan to the MMJV companies.

			(c)	Included in interest and other receivables is an amount of R17 million (US$2.2 million) owing by Pamodzi FS in terms of the asset purchase agreements, for rehabilitation trust funds to be released to the group.

			(d)	The insurance claim receivable of R54 million (US$7.1 million) relates to damage caused by an underground fire at the Bambanani operation. The claim was settled subsequent to the 2010 financial year end.

			(e)	Included in the balance for 2010 is a loan of R63 million (US$8.3 million) (2009: R66 million (US$8.5 million)) to Rand Uranium. The loan bears interest at a three-month JIBAR plus 250 basis points and is repayable on 21 November 2015. The loan has been subordinated. Also included in this balance is a loan of R116 million (US$15.2 million), (2009: R116 million (US$15.0 million)) owed by Pamodzi. The loan bore interest at prime rate until March 2009 when Pamodzi was placed into liquidation. Harmony is a concurrent creditor in the Pamodzi Orkney liquidation.

			(f)	Included in this balance is the amount of R116 million (US$15.2 million), (2009: R116 million (US$15.0 million)) relating to the loan owed by Pamodzi. In 2009, an amount of R9 million (US$1.1 million) relating to the loan owed by Ubuntu included in other loans receivable, was also provided for and subsequently written off during the 2010 financial year. Interest of R13 million (US$1.5 million) was charged on these loans in the 2009 financial year. No interest was charged in 2010.

			The movement in the provision for impairment of trade receivables during the year was as follows:

132	112		Balance at beginning of year		15	17
36	13		Provision for impairment of receivables		2	4
(53)	(29)		Unused amounts reversed		(4)	(6)
(3)	–		Receivables written off during the year		–	–
112	96		Balance at end of year		13	15
			The movement in the provision for impairment of loans receivables during the year was as follows:
15	125		Balance at beginning of year		16	2
117	–		Provision for impairments of loans		–	13
(7)	(9)		Loans written off during the year		(1)	(1)
–	–		Translation		–	2
125	116		Balance at end of year		15	16
			The ageing of trade receivables at the reporting date was:
Impairment	Gross				Gross	Impairment
			30 June 2010
–	418		Fully performing		55	–
–	21		Past due by 1 to 30 days		3	–
–	17		Past due by 31 to 60 days		2	–
–	7		Past due by 61 to 90 days		1	–
27	27		Past due by more than 90 days		4	4
69	74		Past due by more than 361 days		9	9
96	564				74	13
Impairment	Gross				Gross	Impairment
			30 June 2009
–	268		Fully performing		35	–
–	106		Past due by 1 to 30 days		14	–
–	8		Past due by 31 to 60 days		1	–
–	6		Past due by 61 to 90 days		1	–
39	49		Past due by more than 90 days		7	6
73	73		Past due by more than 361 days		9	9
112	510				67	15
			The ageing of loans receivable at the reporting date was:
Impairment	Gross				Gross	Impairment
			30 June 2010
–	75		Fully performing		10	–
–	–		Past due by 1 to 30 days		–	–
–	–		Past due by 31 to 60 days		–	–
–	–		Past due by 61 to 90 days		–	–
–	–		Past due by more than 90 days		–	–
116	116		Past due by more than 361 days		15	15
116	191				25	15
Impairment	Gross				Gross	Impairment
			30 June 2009
–	75		Fully performing		10	–
–	–		Past due by 1 to 30 days		–	–
–	–		Past due by 31 to 60 days		–	–
–	–		Past due by 61 to 90 days		–	–
14	14		Past due by more than 90 days		2	2
111	111		Past due by more than 361 days		14	14
125	200				26	16

			Based on past experience, the group believes that no impairment allowance is necessary in respect of fully performing receivables as the amount relates to customers that have a good track record with the group. Similarly, the other loans and receivables noted above, other than those provided for, are fully performing and considered to be a low credit risk.

			During the 2008 financial year, the balance of R50 million (US$6 million) due from Ogoerion Construction CC for the purchase of the Deelkraal surface assets was impaired. In the 2009 financial year, the deal was renegotiated and the Deelkraal plant was excluded from the transaction. The purchase price was revised and as a result, the balance due and the related provision for impairment of trade receivables was reversed.

			During the year 2010 and 2009 financial years there was no renegotiation of the terms of any receivable, other than as discussed above.

			As at 30 June 2010 and 30 June 2009 financial years, there was no collateral pledged or held for any of the receivables.

24

Trade and other receivables