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HARMONY GOLD MINING COMPANY LIMITED REPORT TO SHAREHOLDERS

Release Date: 24/01/2000 12:39:15      Code(s): HAR HARO
HARMONY GOLD MINING COMPANY LIMITED
WEBSITE: HTTP://WWW.HARMONY.CO.ZA
REPORT TO SHAREHOLDERS FOR THE QUARTER ENDED 31 DECEMBER 1999
HIGHLIGHTS
- RANDFONTEIN ESTATES LIMITED ACQUIRED
- CASH OPERATING PROFIT UP 102%
- EARNINGS PER SHARE INCREASED BY 48%
FINANCIAL
                                          DEC 1999       SEPT 1999
CASH OPERATING
PROFIT
- SA RAND                                 R103 MILLION   R51 MILLION
- US$                                     $17 MILLION    $8 MILLION
EARNINGS
- SA RAND                                 R67 MILLION    R45 MILLION
- US$                                     $11 MILLION    $7 MILLION
EARNINGS PER SHARE
- SA CENTS PER SHARE                      82 CENTS       56 CENTS
- US CENTS PER SHARE                      13 CENTS       9 CENTS
KEY INDICATORS
                                          DEC 1999       SEPT 1999
GOLD PRODUCED
- KG                                      11 000         10 817
- 0Z                                      353 658        347 774
CASH COSTS
- R/KG                                    48 992         46 945
- $/0Z                                    249            240
INTERIM DIVIDEND DECLARATION OF 50 CENTS (8 US CENTS)
ACQUIRING RANDFONTEIN ESTATES LIMITED
ON JANUARY 2000, THE COMPANY MADE AN OFFER TO ACQUIRE RANDFONTEIN ESTATES
LIMITED. THE SUCCESSFUL COMPLETION OF THE TRANSACTION WILL RESULT IN HARMONY
BEING THE 6TH LARGEST GOLD PRODUCER IN THE WORLD, PRODUCING APPROXIMATELY 2.2
MILLION OUNCES PER ANNUM.
OPERATING AND FINANCIAL RESULTS (RAND/METRIC)
                      FREE STATE  EVANDER  EVANDER  BISSETT   KALGOLD
                      TOTAL       U/G      SURFACE  OPENCAST          TOTAL
ORE MILLED - T'000
            DEC 1999  1 486       512      113      60        453     2 624
            SEPT 1999 1 347       485      94       63        409     2 398
GOLD PRODUCED - KG
            DEC 1999  6 981       3 013    89       283       634     11 000
            SEPT 1999 6 732       3 036    71       348       630     10 817
YIELD - G/T
            DEC 1999  4.70        5.88     0.79     4.72      1.40    4.19
            SEPT 1999 5.00        6.26     0.76     5.52      1.54    4.51
CASH OPERATING
COSTS - R/KG
            DEC 1999  49 831      45 533   41 573   65 576    49 834  48 992
            SEPT 1999 48 138      43 633   49 775   53 207    46 383  46 945
CASH OPERATING
COSTS - R/T
            DEC 1999  234         269      33       309       70      206
            SEPT 1999 241         273      38       294       71      212
WORKING
REVENUE (R'000)
            DEC 1999  407 105     175 887  5 209    17 065    36 854 642 120
            SEPT 1999 345 770     156 293  3 649    20 951    32 430 559 093
CASH OPERATING
COSTS (R'000)
            DEC 1999  347 868     137 191  3 700    18 558    31 595 538 912
            SEPT 1999 324 066     132 470  3 534    18 516    29 221 507 807
CASH OPERATING
PROFIT
(R'000)     DEC 1999  59 237      38 696   1 509    (1 493)   5 259  103 208
            SEPT 1999 21 704      23 823   115      2 435     3 209  51 286
FINANCIAL RESULTS - TOTAL OPERATIONS (RAND/METRIC)
UNAUDITED                                  QUARTER     QUARTER
                                           ENDED       ENDED
                                           31 DEC      30 SEPT
                                           1999        1999
ORE MILLED - T'000                         2 624       2 398
GOLD PRODUCED - KG                         11 000      10 817
GOLD PRICE RECEIVED - R/KG                 58 375      51 687
CASH OPERATING COSTS R/KG                  48 992      46 945
                                           R'000       R'000
GOLD SALES                                 642 120     559 093
CASH OPERATING COSTS                       538 912     507 807
CASH OPERATING PROFIT                      103 208     51 286
AMORTISATION                               (28 344)    (23 601)
REHABILITATION PROVISION                   (1 674)     (1 428)
OTHER INCOME - NET                         10 672      28 878
CORPORATE EXPENDITURE                      (3 122)     (1 943)
EXPLORATION AND NEW BUSINESS               (3 014)     (2 230)
PROFIT BEFORE TAXATION                     77 726      50 962
SOUTH AFRICAN NORMAL TAXATION
- CURRENT TAX                              (8 811)     (8 114)
- DEFERRED TAX                             (1 858)     2 583
NET EARNINGS AFTER TAX                     67 057      45 431
EARNINGS PER SHARE - CENTS
- CASH OPERATING EARNINGS                  126         64
- NET EARNINGS                             82          56
DIVIDENDS PER SHARE - (CENTS)              50          -
ABRIDGED BALANCE SHEET (RAND)
UNAUDITED                                  AT          AT
                                           31 DEC      30 SEPT
                                           1999        1999
                                           R'000       R'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER
AMORTISATION                               2 353 770   2 344 217
INVESTMENTS                                51 351      69 494
LOANS TO SHARE TRUSTS                      17 748      20 935
NET CURRENT LIABILITIES
(EXCLUDING CASH)                           (67 461)    (88 993)
CASH AND
SHORT-TERM INVESTMENTS                     371 744     296 472
                                           2 727 152   2 642 125
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                       2 174 579   2 084 717
LOANS                                      129 289     135 651
LONG-TERM PROVISIONS                       251 278     247 999
DEFERRED TAX                               172 006     173 758
                                           2 727 152   2 642 125
ISSUED SHARE CAPITAL: 81.7 MILLION ORDINARY SHARES OF 50 CENTS EACH (SEPT 1999:
80.5 MILLION SHARES).
DEVELOPMENT RESULTS (METRIC)
                           CHANNEL       CHANNEL    AU
                      SAMPLED    WIDTH   VALUE      CONTENT
                      METRES     (CM)    (G/T)      (CM.G/T)
FREE STATE
BASAL REEF            1 150      97      7.68       745
LEADER REEF           1 732      141     3.87       546
"A" REEF              564        162     5.15       834
EVANDER
KIMBERLEY REEF        2 016      58      23.59      1 368
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS. CURRENCY
CONVERSION RATES: US$1 = R6.11 (SEPT 1999: R6.09)
MESSAGE FROM THE CHIEF EXECUTIVE
THE PAST QUARTER WAS REWARDING TO OUR SHAREHOLDERS AS THE COMPANY DOUBLED ITS
OPERATING PROFIT ON THE BACK OF A 12% INCREASE IN THE GOLD PRICE.
AT THE TIME OF ANNOUNCING OUR QUARTERLY RESULTS IN OCTOBER 1999, WE STATED THAT
THE EFFECT OF AN INCREASE IN THE GOLD PRICE ON OUR RESULTS WOULD BE DRAMATIC AS
THE COMPANY IS UNHEDGED. THE RESULTS CONFIRM THIS AND HAVE ENABLED THE COMPANY
TO DECLARE AN INTERIM DIVIDEND OF 50 CENTS. PERFORMANCE SIMILAR TO OUR
ACHIEVEMENT OVER THE PAST SIX MONTHS, WILL SEE THE COMPANY CONTINUE WITH ITS
POLICY OF BEING A CONSISTENT DIVIDEND PAYER. ON A QUARTER TO QUARTER BASIS,
EARNINGS PER SHARE INCREASED BY 48% TO 82 CENTS.
THE OPERATIONS PERFORMED WELL OVERALL, WITH THE FREE STATE INCREASING TONNAGE
BY 10% TO 1 486 000 TONS FOR THE QUARTER. DESPITE A LOWER RECOVERY GRADE, THE
OPERATIONS INCREASED PRODUCTION LEVELS FOR THE LAST THREE QUARTERS. THIS TREND
IS EXPECTED TO BE INTERRUPTED TEMPORARILY DURING THE COMING QUARTER, DUE TO THE
ADDITIONAL PUBLIC HOLIDAYS.
THE EVANDER OPERATIONS INCREASED TONNAGES, ALTHOUGH AT SLIGHTLY LOWER GRADES.
IN LINE WITH THE OPERATIONAL IMPROVEMENTS WORKING COST ON A PER TON UNIT BASIS
DECREASED TO R269/TON. UNDERGROUND CASH OPERATING PROFIT AT EVANDER INCREASED
BY 64% FROM R23,8M TO R39M.
WHEN WE ACQUIRED EVANDER, WE SAID THAT THE ASSETS WERE CAPABLE OF DELIVERING
ORGANIC GROWTH TO HARMONY'S OVERALL PRODUCTION BASE. DETAILS OF THE "220 PLAN"
AT THESE OPERATIONS WERE RELEASED DURING THE QUARTER. THE EVANDER SHAFT
MANAGEMENT TEAMS ARE CONFIDENT OF INCREASING PRODUCTION LEVELS FROM THE CURRENT
180 000 TONS PER MONTH TO 210 000 TONS PER MONTH BY JUNE 2000. THESE INCREASED
PRODUCTION LEVELS WILL RESULT IN THE OPERATION DELIVERING TONNAGE TO THE
METALLURGICAL PLANTS AT A COST OF R220/TON, RESULTING IN SIGNIFICANT PROFIT
MARGINS BASED ON GOLD REVENUE OF R320/TON OR R55 000/KG.
THE BISSETT AND KALGOLD OPERATIONS PERFORMED REASONABLY WELL DESPITE BOTH
EXPERIENCING SHORT-TERM OPERATIONAL PROBLEMS. AT BISSETT RECOVERY GRADES WERE
LOWER DUE TO MORE TONNAGES COMING FROM DEVELOPMENT RESULTING IN A 19% DECREASE
IN GOLD PRODUCED DURING THE PERIOD UNDER REVIEW. PROBLEMS LIKE THESE ARE
EXPERIENCED DURING CAPITAL EXPANSION PHASES. THE MINE IS CONTINUING WITH ITS
AGGRESSIVE DEVELOPMENT AND DIAMOND DRILLING PROGRAMME WHICH WILL ENSURE FURTHER
IMPROVEMENTS IN FLEXIBILITY.
EXCESSIVE RAINFALL DURING DECEMBER 1999 AND JANUARY OF THIS YEAR, IMPACTED ON
MINING FLEXIBILITY IN THE KALGOLD PIT. DESPITE HIGHER TONNAGES (AT A NEW RECORD
LEVEL) A DISAPPOINTING RECOVERY GRADE RESULTED IN ONLY A 4KG IMPROVEMENT IN
GOLD RECOVERY AT 634KG.
BID FOR RANDFONTEIN ESTATES LIMITED
ON 6 JANUARY 2000, HARMONY ANNOUNCED ITS INTENTION TO BID FOR RANDFONTEIN
ESTATES LIMITED. RANDFONTEIN, WHICH PRODUCED 800 000 OZ DURING ITS PREVIOUS
FINANCIAL YEAR, IS A NATURAL FIT WITH THE ASSETS OF THE COMPANY. WHILST
INCREASING THE COMPANY'S PRODUCTION BASE BY 57% TO APPROXIMATELY 2.2 MILLION
OUNCES PER ANNUM, IT ALSO EXPANDS HARMONY'S GEOGRAPHICAL PRESENCE TO THE WEST
WITS LINE, ONE OF THE RICHEST GOLD PRODUCING REGIONS IN SOUTH AFRICA.
DURING NEGOTIATIONS WITH WESTERN AREAS LIMITED, CAM AND THE RANDFONTEIN BOARD,
THE INITIAL OFFER WAS REVISED UPWARDS TO R12.25 PER SHARE TO ENSURE THAT THE
TRANSACTION, NOW VALUED AT R827 MILLION, WAS SUPPORTED AND RECOMMENDED BY
RANDFONTEIN'S BOARD.
ALL CONDITIONS PRECEDENT HAVE BEEN FULFILLED, WITH ONLY REGULATORY APPROVALS
BEING AWAITED. AS INDICATED ELSEWHERE IN THE DOCUMENT, THE OFFER OPENED ON 17
JANUARY 2000. WE ARE CONFIDENT THAT SUFFICIENT SHAREHOLDER SUPPORT WILL BE
OBTAINED FOR RANDFONTEIN BECOMING A WHOLLY-OWNED SUBSIDIARY OF HARMONY.
TO DATE 34,9% OF THE RANDFONTEIN SHARES HAVE BEEN ACQUIRED FOR CASH. SHOULD ALL
THE REMAINING SHAREHOLDERS TAKE HARMONY SHARES, 14.3 MILLION NEW HARMONY SHARES
WILL BE ISSUED, A DILUTION OF ONLY 17.7% FOR A PRODUCTION BASE INCREASE OF OVER
57%.
THE RANDFONTEIN OPERATIONS ARE EXPECTED TO BE EARNINGS PER SHARE ENHANCING AS
FROM THE FIRST FULL FINANCIAL YEAR.
MANAGEMENT'S DISCUSSION AND OPERATIONAL ANALYSIS FOR THE DECEMBER 1999 QUARTER
OVERVIEW
CASH OPERATING PROFIT DOUBLED FROM R51 MILLION REPORTED IN THE LAST QUARTER TO
R103 MILLION. DURING THE PERIOD UNDER REVIEW THE GOLD PRICE DECREASED FROM A
HIGH OF R62 000/KG (US$315/OZ) IN THE BEGINNING OF THE QUARTER, TO TRADE LEVELS
OF ABOUT R58 000/KG (US$295/OZ) FOR MOST OF THE QUARTER. THIS RESULTED IN THE
OPERATIONS REPORTING AN AVERAGE SELLING PRICE OF R58 375/KG (R51 688/KG).
TOTAL TONS MILLED FROM UNDERGROUND OPERATIONS IMPROVED BY 9% TO 2 059 000 TONS.
DESPITE THE LOWER YIELD OF 4.19 G/T, COMPARED WITH 4.51 G/T DURING THE PREVIOUS
PERIOD, THE INCREASED THROUGHPUT UPPED GOLD PRODUCED TO 11 000 KG, AN
IMPROVEMENT OF SOME 183 KG. A CONTINUED FOCUS ON WORKING COSTS AND THE HIGHER
VOLUME OF ORE MILLED REFLECTED IN CASH OPERATING COST PER TON DROPPING TO R206
FROM R212 PER TON. THE LOWER YIELD RESULTED IN THE CASH OPERATING COSTS PER
KILOGRAM INCREASING TO R48 992/KG (R46 945/KG).
FREE STATE OPERATIONS
THE FREE STATE OPERATIONS HAD AN EXCELLENT QUARTER WITH CASH OPERATING PROFIT
OF R59.2 MILLION, UP 173% ON SEPTEMBER'S PROFIT OF R21.7 MILLION. IT IS
PLEASING TO NOTE THAT THIS IMPROVEMENT IS NOT ONLY DUE TO A BETTER GOLD PRICE,
BUT ALSO TO A 4% IMPROVEMENT IN GOLD PRODUCTION.
CASH OPERATING COSTS WERE WELL CONTROLLED AND THE CASH OPERATING COST PER TON
MILLED REDUCED TO R234/TON (R241/TON).
EVANDER OPERATIONS
THE EVANDER OPERATIONS EXPERIENCED A DIFFICULT FIRST HALF OF THE QUARTER DUE TO
THE CONVERSION FROM FULL CALENDAR OPERATIONS (FULCO) TO AN ELEVEN SHIFT
FORTNIGHT OPERATION. THE BENEFITS OF THE CONVERSION WERE EXPERIENCED AS EARLY
AS IN DECEMBER WITH INCREASED PRODUCTIVITY LEVELS REPORTED. HIGHER TONNAGE
THROUGHPUT ENABLED GOLD DECLARED OF 3 013 KG (3 036 KG) TO REFLECT ONLY A
MARGINAL DECREASE, DESPITE A DROP IN GRADE TO 5.88 G/T FROM THE 6.26 G/T
REPORTED IN THE SEPTEMBER QUARTER.
KALGOLD OPERATIONS
THROUGHPUT OF 453 000 TONS (409 000 TONS) WAS UP TO A NEW RECORD LEVEL.
HOWEVER, DUE TO HEAVY RAINS IN THE LATTER HALF OF THE QUARTER, PLUS THE REDUCED
MINING FLEXIBILITY IN THE PIT, WHICH HAD BEEN CAUSED BY UNDERPERFORMANCE OF THE
CONTRACTOR, THE YIELD DROPPED FROM 1.54 G/T TO 1.40 G/T. DESPITE THE LOWER
GRADE, THE HIGHER THROUGHPUT AND IMPROVED PLANT RECOVERIES RESULTED IN 634 KG
OF GOLD BEING PRODUCED, UP 4 KG ON THE LAST QUARTER.
RAIN SEVERELY DISRUPTED JANUARY'S PRODUCTION AND WHILE EVERY EFFORT WILL BE
MADE TO RECOVER THE SHORTFALL IN ENSUING MONTHS, KALGOLD'S MARCH PRODUCTION AND
OPERATING RESULTS ARE EXPECTED TO BE DOWN ON FORECAST.
BISSETT OPERATIONS
THE OPERATIONS RECORDED A CASH OPERATING LOSS OF R1.5 MILLION (R2.4 MILLION
PROFIT) FOR THE QUARTER. THE LOSS AROSE MAINLY AS A RESULT OF INCREASED ORE
DEVELOPMENT UNDERTAKEN TO IMPROVE MINING FLEXIBILITY AND THROUGHPUT. PRODUCTION
TARGETS ARE CONSTANTLY IMPROVING AND IT IS ANTICIPATED THAT THE MINE WILL BE
CONSISTENTLY PROFITABLE BY THE SECOND QUARTER OF THIS YEAR.
OTHER INCOME.
NET OTHER INCOME WAS DOWN R18.2 MILLION FROM LAST QUARTER DUE TO THE R15
MILLION SALE OF THE RED RIVER PROJECT BROUGHT TO ACCOUNT IN THE LAST QUARTER.
DURING THE QUARTER THE GROUP'S INVESTMENT IN RANDGOLD AND EXPLORATION COMPANY
LIMITED, WHICH WAS ACQUIRED THROUGH THE ACQUISITION OF WEST RAND CONS, WAS SOLD
AND A PROFIT OF R0.6 MILLION REALISED.
CAPITAL EXPENDITURE
CAPITAL EXPENDITURE DURING THE QUARTER AMOUNTED TO R37 MILLION.
                                DECEMBER 1999       MARCH 2000
OPERATION                       R MILLION           R MILLION
                                                    (FORECAST)
FREE STATE                      9                   7
EVANDER                         16                  13
KALGOLD                         2                   5
BISSETT                         10                  8
TOTAL                           37                  33
NOTICE OF INTERIM DIVIDEND
A DIVIDEND NO. 70 OF 50 CENTS PER ORDINARY SHARE, BEING THE INTERIM DIVIDEND
FOR THE FINANCIAL YEAR ENDING 30 JUNE 2000, HAS BEEN DECLARED PAYABLE ON 10
MARCH 2000 TO THOSE SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE
CLOSE OF BUSINESS ON 11 FEBRUARY 2000.
SHAREHOLDERS ARE ADVISED THAT THE DIVIDEND IS NOT PAYABLE IN RESPECT OF SHARES
ISSUED OR TO BE ISSUED PURSUANT TO THE OFFER MADE BY THE COMPANY TO ACQUIRE
SHARES IN RANDFONTEIN ESTATES LIMITED, AS WAS ANNOUNCED ON 6 JANUARY 2000.
THE DIVIDEND IS DECLARED IN THE CURRENCY OF THE REPUBLIC OF SOUTH AFRICA.
DIVIDEND CHEQUES WILL BE POSTED FROM THE OFFICE OF THE TRANSFER SECRETARIES IN
SOUTH AFRICA OR THE REGISTRARS IN THE UNITED KINGDOM ON OR ABOUT 9 MARCH 2000.
ANY CHANGE IN ADDRESS OR DIVIDEND INSTRUCTION TO APPLY TO THIS DIVIDEND MUST BE
RECEIVED BY THE COMPANY'S TRANSFER SECRETARIES OR REGISTRAR NOT LATER THAN 11
FEBRUARY 2000.
THIS ANNOUNCEMENT WILL BE MAILED TO ALL REGISTERED SHAREHOLDERS ON OR ABOUT 25
JANUARY 2000.
BY ORDER OF THE BOARD
F W BAKER                                   VIRGINIA
COMPANY SECRETARY                           24 JANUARY 2000
HARMONY GOLD MINING COMPANY LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/38232/06)
JSE CODE: HAR
NASDAQ TRADING SYMBOL HGMCY
DIRECTORS
A R FLEMING* (CHAIRMAN) (BRITISH), Z B SWANEPOEL (CHIEF EXECUTIVE), F ABBOTT, R
A ANDREW* (BRITISH), DR. N V ARMSTRONG, R A L ATKINSON, F DIPPENAAR, N J
FRONEMAN, T S A GROBICKI, L HEWITT*, M F PLEMING*
LORD RENWICK OF CLIFTON KCMG*(BRITISH), F R SULLIVAN
*NON EXECUTIVE DIRECTORS
SHARE TRANSFER SECRETARIES
COMPUTERSHARE SERVICES LIMITED, EDURA HOUSE, 41 FOX STREET, JOHANNESBURG 2001
PO BOX 62391, MARSHALLTOWN 2107, SOUTH AFRICA
TELEPHONE: +27 (11) 370-7700
TELEFAX: +27 (11) 834-4875
HARMONY'S PROFITS DOUBLE IN IMPROVED QUARTER FOR GOLD
JOHANNESBURG, 24 JANUARY 2000 - GOLD PRODUCER HARMONY UPPED ITS CASH OPERATING
PROFIT FOR THE DECEMBER 1999 QUARTER BY 102% TO R103 MILLION.
CHIEF EXECUTIVE BERNARD SWANEPOEL SAID THE EFFECT OF AN INCREASE IN THE GOLD
PRICE ON UNHEDGED HARMONY'S RESULTS WAS DRAMATIC AND HAS ENABLED THE COMPANY TO
DECLARE AN INTERIM DIVIDEND OF 50 CENTS A SHARE. "EARNINGS PER SHARE INCREASED
BY 48% TO 82 CENTS A SHARE.  WE EXPECT TO DELIVER A PERFORMANCE SIMILAR TO OUR
ACHIEVEMENT DURING THE LAST SIX MONTHS AND WILL CONTINUE TO BE A CONSISTENT
DIVIDEND PAYER", COMMENTED SWANEPOEL.
DURING THE PERIOD THE GOLD PRICE RECEIVED DECREASED FROM A US$315 HIGH AT THE
BEGINNING OF THE QUARTER TO A LEVEL OF US$282 AN OUNCE FOR THE QUARTER.  THIS
RESULTED IN THE OPERATIONS REPORTING AN AVERAGE SELLING PRICE OF US$297 (R58
375/KG) COMPARED WITH US$264 (R51 688/KG) FOR THE PREVIOUS QUARTER.
THE FREE STATE OPERATIONS PERFORMED WELL AND INCREASED TONNAGE BY 10% TO 1.5
MILLION TONS FOR THE QUARTER.  THE OPERATIONS HAVE CONSISTENTLY MANAGED TO
INCREASE PRODUCTION LEVELS DURING THE LAST THREE QUARTERS.  THIS TREND IS
EXPECTED TO BE TEMPORARILY INTERRUPTED DURING THE NEXT QUARTER AS A RESULT OF
THE ADDITIONAL PUBLIC HOLIDAYS.
THE EVANDER OPERATIONS ALSO ACHIEVED INCREASED TONNAGES DUE TO OPERATIONAL
IMPROVEMENTS.  CHANGEOVER FROM THE INEFFECTIVE AND UNPOPULAR FULCO OPERATIONS
TO THE MORE CONVENTIONAL SHIFT WORK ARRANGEMENTS NEGATIVELY IMPACTED ON BOTH
TONNAGES AND GRADES DURING OCTOBER AND NOVEMBER.  UNDERGROUND CASH OPERATING
PROFITS INCREASED BY 60% TO R39 MILLION.  "AT THE TIME OF THE EVANDER
ACQUISITION, WE STATED THAT THE OPERATIONAL ASSETS WERE CAPABLE OF DELIVERING
ORGANIC GROWTH TO THE OVERALL PRODUCTION BASE OF THE COMPANY. THE EVANDER SHAFT
MANAGEMENT TEAMS ARE CONFIDENT THAT THEY WILL INCREASE PRODUCTION LEVELS FROM
THE CURRENT 180 000 TONS PER MONTH TO 210 000 TONS PER MONTH BY JUNE THIS YEAR.
THIS WILL RESULT IN THE OPERATION DELIVERING TONNAGE AT A COST OF R240/T,
RETURNING SIGNIFICANT PROFIT MARGINS BASED ON GOLD REVENUE OF R320/T",
SWANEPOEL SAID.
BISSETT AND KALGOLD PERFORMED REASONABLY WELL DESPITE SHORT-TERM OPERATIONAL
PROBLEMS AT BOTH OPERATIONS.  BISSETT RECORDED A CASH OPERATING LOSS OF R1.5
MILLION FOR THE QUARTER, MAINLY AS A RESULT OF CONTINUED HIGH LEVELS OF ORE
DEVELOPMENT UNDERTAKEN TO IMPROVE MINING FLEXIBILITY AND THROUGHPUT.  RECOVERY
GRADES WERE ALSO LOWER DUE TO HIGHER TONNAGES COMING FROM DEVELOPMENT.
"PROBLEMS SUCH AS THESE ARE TYPICALLY EXPERIENCED DURING CAPITAL EXPANSION
PHASES. PRODUCTION TARGETS ARE CONSTANTLY IMPROVING AND WE ANTICIPATE THAT
BISSETT WILL BE CONSISTENTLY PROFITABLE BY THE SECOND QUARTER OF THIS YEAR,"
SWANEPOEL SAID.
DURING DECEMBER 1999 AND JANUARY THIS YEAR PARTS OF SOUTH AFRICA EXPERIENCED A
PERIOD OF EXCESSIVE RAINFALL, WHICH IMPACTED ON THE MINING FLEXIBILITY IN THE
KALGOLD PIT.  DESPITE A NEW RECORD LEVEL THROUGHPUT OF 453 000 TONS AND
IMPROVED PLANT RECOVERIES, A DISAPPOINTING 1.4G/T RECOVERY GRADE RESULTED IN
GOLD RECOVERY ONLY IMPROVING BY 4KG TO 634KG.  SWANEPOEL REMARKED THAT THE
RAINFALL HAD SEVERELY DISRUPTED PRODUCTION IN JANUARY AND WHILE EVERY EFFORT
WOULD BE MADE TO RECOVER THE SHORTFALL IN THE ENSUING MONTHS, KALGOLD'S
PRODUCTION AND OPERATING RESULTS FOR THE NEXT QUARTER WILL BE AFFECTED.
DURING JANUARY 2000, HARMONY ANNOUNCED ITS BID FOR RANDFONTEIN ESTATES LIMITED.
 RANDFONTEIN, AN 800 000 OUNCE PER ANNUM PRODUCER, WILL BE A NATURAL FIT WITH
HARMONY'S CURRENT ASSETS AND WILL INCREASE THE COMPANY'S ANNUALISED PRODUCTION
BASE TO APPROXIMATELY 2.2 MILLION OUNCES.  "WITH RANDFONTEIN IN THE HARMONY
STABLE, THE COMPANY WILL EXPAND ITS GEOGRAPHICAL PRESENCE TO THE WEST RAND, ONE
OF THE RICHEST GOLD PRODUCING REGIONS IN THE COUNTRY.  TO DATE 35% OF
RANDFONTEIN'S SHARES HAVE BEEN ACQUIRED FOR CASH.  WE ARE CONFIDENT THAT
SUFFICIENT SHAREHOLDER SUPPORT WILL BE OBTAINED IN ORDER FOR  RANDFONTEIN TO
BECOME A WHOLLY-OWNED SUBSIDIARY OF HARMONY.  SHOULD THE REMAINING 65% OF
RANDFONTEIN SHAREHOLDERS OPT FOR HARMONY SHARES, 14.3 MILLION NEW HARMONY
SHARES WILL BE ISSUED, A DILUTION OF ONLY 17.7% IN RETURN FOR AN ANNUALISED
INCREASE OF 57% IN GOLD PRODUCTION.  WE EXPECT THE RANDFONTEIN OPERATIONS TO
ENHANCE EARNINGS PER SHARE AFTER THE FIRST FULL YEAR OF PRODUCTION, SWANEPOEL
SAID.
ENDS
FOR FURTHER DETAILS PLEASE CONTACT BERNARD SWANEPOEL ON +27(0)83 303 9922.
ISSUED BY HARMONY GOLD MINING CO. LTD.  CONTACT: CHRISTINE LEONARDI;
PHONE: +2711 802 1822; FAX: +2711 802 2363; E-MAIL: CLEONARDI@HARMONY.CO.ZA;
WEB SITE: WWW.HARMONY.CO.ZA.



                                        
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