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HARMONY GOLD MINING COMPANY LIMITED QUARTERLY REPORT

Release Date: 19/04/2000 12:04:51      Code(s): HAR HARO
HARMONY GOLD MINING COMPANY LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/38232/06)
NASDAQ TRADING SYMBOL HGMCY
REPORT TO SHAREHOLDERS FOR THE QUARTER ENDED 31 MARCH 2000
SUMMARY OF QUARTERLY RESULTS
"GOOD FINANCIAL RESULTS DESPITE LESS THAN SATISFACTORY OPERATIONAL PERFORMANCE"
BERNARD SWANEPOEL
CHIEF EXECUTIVE
KEY INDICATORS
                                    MARCH 2000          DEC 1999
GOLD PRODUCED
-  KG                               17 003              11 000
-  OZ                               546 659             353 658
CASH COSTS
-  R/KG                             51 424              48 992
-  $/OZ                             254                 249
FINANCIAL
                                    MARCH 2000          DEC 1999
CASH OPERATING
PROFIT
- RAND                              R140 MILLION        R103 MILLION
- US$                               $22 MILLION         $17 MILLION
EARNINGS
- RAND                              R110 MILLION        R67 MILLION
- US$                               $17 MILLION         $11 MILLION
EARNINGS PER SHARE
- SACENTS PER SHARE                 114 CENTS           82 CENTS
- USCENTS PER SHARE                 18 CENTS            13 CENTS
THIS REPORT IS ALSO AVAILABLE AT WEBSITE: HTTP://WWW.HARMONY.CO.ZA
MESSAGE FROM THE CHIEF EXECUTIVE
STRATEGIC OVERVIEW
THE FINALISATION AND INCORPORATION OF RANDFONTEIN MADE FOR AN EXCITING QUARTER
FROM A STRATEGIC POINT OF VIEW, WHILST FROM AN OPERATIONAL VIEW, THE OVERALL
RESULTS WERE LESS THAN SATISFACTORY. THE RANDFONTEIN TRANSACTION IS IN THE
PROCESS OF BEING COMPLETED WITH APPROXIMATELY 94% OF THE SHARES HAVING BEEN
ACQUIRED TO DATE. OF THE 67,7 MILLION SHARES, 43% WERE ACQUIRED FOR CASH AND
57% EXCHANGED FOR SHARES. THE TOTAL NUMBER OF HARMONY SHARES OUTSTANDING
FOLLOWING THE TRANSACTION WILL BE 96,7 MILLION.
THE POSITIVE IMPACT OF THE ACQUISITION ON THE NET OPERATING PROFIT OF THE
COMPANY WAS SIGNIFICANT AND AGAIN ENFORCED THE SUCCESS OF OUR STRATEGY.
WE SEE THE CONSOLIDATION OF THE INDUSTRY CONTINUING AND WILL BE FOCUSING ON
OPPORTUNITIES TO BULK UP OPERATIONS IN NORTH AMERICA AND EVALUATING OUR
INVESTMENT IN AUSTRALASIA.
EVEN AFTER OUR MOST RECENT ACQUISITION INITIATIVES, OUR BALANCE SHEET TO FUND
FUTURE GROWTH REMAINS STRONG WITH NET DEBT OF R123 MILLION.
OPERATIONAL OVERVIEW
THE COMPANY REPORTED A 39% INCREASE IN EARNINGS PER SHARE, UP FROM 82 CENTS IN
THE DECEMBER 1999 QUARTER TO 114 CENTS FOR THE MARCH QUARTER. IT WAS A
DIFFICULT QUARTER WITH THE NUMBER OF PUBLIC HOLIDAYS AND THE EXTRAORDINARY
RAINFALL EXPERIENCED IN THE COUNTRY, AFFECTING OPERATIONS. WHILST THE FREE
STATE OPERATIONS REPORTED AN IMPROVED PERFORMANCE WITH A 12% INCREASE IN CASH
OPERATING PROFIT, THE EVANDER UNDERGROUND OPERATIONS RETURNED LOWER TONNAGE AT
SIMILAR GRADES RESULTING IN A 4% DECREASE IN GOLD PRODUCTION. THE COST PER TON
AT EVANDER SHOWED A 7% INCREASE. THE OPERATIONAL PROBLEMS WERE RELATED MAINLY
TO THE CONTINUED IMPACT OF INTRODUCING THE NEW WORK ARRANGEMENTS, PUBLIC
HOLIDAYS AND AN UNDERGROUND FIRE AFFECTING 2 AND 5 SHAFTS.
AS PREVIOUSLY INDICATED THE OPENCAST OPERATIONS AT KALGOLD WERE AFFECTED BY
ABNORMAL LEVELS OF RAINFALL OVER THE COUNTRY DURING THE QUARTER. TONNAGE
DECREASED BY 76 000 TONS. THE LOWER RECOVERY GRADE OF 1,10 G/T RESULTED IN
PRODUCTION OF 415 KGS, WHICH IS 219 KGS LESS THAN THE PREVIOUS QUARTER.
FOLLOWING LOWER THAN EXPECTED RECOVERIES FROM THE HEAP LEACH PAD, AN EVALUATION
HAS BEEN INITIATED TO ASCERTAIN WHETHER THE DEEPER SULPHIDE ORE CAN CONTINUE TO
BE TREATED ECONOMICALLY BY HEAP LEACH TECHNOLOGIES. THIS COULD RESULT IN MINING
TONNAGE BEING REDUCED AND BEING TREATED THROUGH THE CIL PLANT ONLY. ALTHOUGH
GOLD PRODUCTION COULD BE 15% LOWER, THE FOCUS OF THIS EXERCISE WOULD BE TO
ACHIEVE THE TARGET CASH COST OF US$220/OUNCE.
ALTHOUGH RETURNING AN OPERATING LOSS OF R7,6 MILLION, THE CAPITAL EXPANSION
PROGRAMME AT THE BISSETT OPERATIONS CONTINUES ACCORDING TO PLAN. THE MAIN FOCUS
REMAINS THE EXTENSION OF THE DECLINE TO INCREASE FLEXIBILITY AND ACCESS THE
HIGHER GRADE LOWER LEVELS OF THE OREBODY. THIS RESULTED IN THE MILL FEED MAINLY
COMING FROM DEVELOPMENT, LEADING TO LOWER GOLD GRADES AND HIGHER UNIT COSTS.
IMPROVED RESULTS ARE EXPECTED FOR THE JUNE QUARTER AFTER WHICH TIME THE
MAJORITY OF THE DEVELOPMENT PROGRAMME WILL BE COMPLETED. WE EXPECT GRADES TO
INCREASE AS MORE TONNAGES FROM STOPING AREAS BECOME AVAILABLE.
THE INCORPORATION OF THE RANDFONTEIN OPERATIONS HAS GONE WELL WITH MOST OF THE
INITIAL RESTRUCTURING AT MANAGEMENT LEVEL BEHIND US. SPECIAL ATTENTION IS
DIRECTED AT 4 SHAFT WHERE LOSSES HAVE CONTINUED AND A PLAN TO REACH A BREAK
EVEN POINT BY SEPTEMBER 2000 IS CURRENTLY BEING IMPLEMENTED. AS THIS IS THE
FIRST QUARTER THAT WE ARE REPORTING ON RANDFONTEIN, NO COMPARATIVE INFORMATION
IS PRESENTED. THE SIGNIFICANCE OF THIS ACQUISITION TO HARMONY SHAREHOLDERS IS
DEMONSTRATED WITH THESE OPERATIONS CONTRIBUTING 36% OF THE CASH OPERATING
PROFIT FOR AN INCREASE OF 17% IN SHARE CAPITAL. THE BENEFITS FROM FURTHER
OPERATIONAL RESTRUCTURING AND COST SAVINGS WILL CONTINUE TO ADD TO THE BOTTOM
LINE OVER THE NEXT FEW QUARTERS.
LOOKING FORWARD
WE EXPECT THE JUNE 2000 QUARTER TO BE ANOTHER TOUGH ONE WITH EXCESSIVE HOLIDAYS
CONTINUING TO AFFECT PRODUCTION. WE WILL FOCUS ON OPERATIONAL IMPROVEMENTS AT
EVANDER AND KALGOLD. AT BISSETT THE COMPLETION OF THE CAPITAL EXPANSION PROJECT
WILL RESULT IN THE REQUIRED AMOUNT OF MINING FLEXIBILITY. THE FOCUS AT
RANDFONTEIN WILL BE DIRECTED AT CONTINUOUS IMPROVEMENTS, AS THE IMPLEMENTATION
OF THE HARMONY WAY KICKS IN AT THE OPERATIONS. ALL STAKEHOLDERS WILL BE
INVOLVED IN THE BUILDING OF A SUSTAINABLE PLAN FOR 4 SHAFT. SHAREHOLDERS CAN
EXPECT MORE RESTRUCTURING BENEFITS FROM RANDFONTEIN IN THE SHORT-TERM.
OPERATIONAL IMPROVEMENTS NORMALLY DELIVER RESULTS OVER THE MEDIUM- TO LONG-TERM
EXPANDING THE MARKET FOR HARMONY'S GOLD
AS THE ONLY GOLD PRODUCER REFINING ITS GOLD, THE COMPANY HAS BEEN SUCCESSFUL IN
DISTRIBUTING ITS BRANDED PRODUCTS TO THE INDIAN MARKETS. HARMONY HAS NOW
ESTABLISHED AN INNOVATIVE E-COMMERCE VENTURE. TO SATISFY DEMAND FROM OUR
EUROPEAN AND NORTH AMERICAN SHAREHOLDERS AND INVESTMENT MARKETS WE ARE, IN
ASSOCIATION WITH BRANDEIS AND BAIRD AND COMPANY FROM LONDON, MAKING OUR UNIQUE
10-TOLA BAR AVAILABLE FOR SALE OVER THE INTERNET. THE RANGE WILL BE EXPANDED TO
INCLUDE FURTHER PRODUCTS IN THE NEAR FUTURE.
SOUTH AFRICAN LAW STILL CLASSIFIES OUR HARMONY 10-TOLA BAR AS UNWROUGHT
PRECIOUS METAL AND THEREFORE SOUTH AFRICAN RESIDENTS ARE AT PRESENT PROHIBITED
FROM OWNING IT.
AS WE DO NOT AGREE THAT THE HARMONY 10-TOLA BAR IS UNWROUGHT GOLD, WE ARE
PURSUING THIS MATTER WITH THE RESERVE BANK ON BEHALF OF OUR SHAREHOLDERS AND
THE INVESTMENT COMMUNITY.
VISIT OUR WEBSITE AT WWW.HARMONY.CO.ZA AND INVEST A PORTION OF YOUR PORTFOLIO
IN HARMONY PHYSICAL GOLD TODAY.
MANAGEMENT'S DISCUSSION
OVERVIEW
PURSUANT TO THE OFFER TO THE SHAREHOLDERS OF RANDFONTEIN ESTATES LIMITED
("RANDFONTEIN"), 94% OF THE RANDFONTEIN SHARES HAVE BEEN ACQUIRED BY HARMONY.
PROCEDURES FOR THE COMPULSORY ACQUISITION OF THE BALANCE OF THE OUTSTANDING
SHARES HAVE BEEN INITIATED. RANDFONTEIN'S FIGURES HAVE, FOR THE FIRST TIME,
BEEN CONSOLIDATED AND INCLUDED WITH HARMONY'S RESULTS FOR THIS QUARTER.
GOLD PRODUCTION FOR THE ENLARGED HARMONY GROUP INCREASED BY 55% TO 547 000 OZ
AND CASH OPERATING PROFIT BY 36% TO R140.6 MILLION COMPARED WITH THE PREVIOUS
QUARTER. HOWEVER WITH THE EXCEPTION OF THE FREE STATE OPERATIONS, RESULTS WERE
GENERALLY DISAPPOINTING WITH SURFACE OPERATIONS BEING ADVERSELY AFFECTED BY
UNUSUALLY HIGH RAINFALL AND PRODUCTION PROBLEMS EXPERIENCED AT CERTAIN
UNDERGROUND WORKINGS.
FREE STATE
THE GOOD PRODUCTION RESULTS REPORTED BY THE FREE STATE OPERATIONS FOR THE
PREVIOUS QUARTER WERE MAINTAINED DURING THIS PERIOD. A CASH OPERATING PROFIT OF
R66,4 MILLION WAS REPORTED, UP R7,2 MILLION ON LAST QUARTER. CASH OPERATING
COSTS WERE WELL CONTROLLED AT R234 A TON.
THE RESULTS OF THE LAST TWO QUARTERS HAVE CONFIRMED THAT THE FREE STATE
CONTINUES TO BE AN INTEGRAL PART OF THE COMPANY'S FUTURE SUCCESS.
EVANDER
THE EVANDER OPERATIONS HAD A DIFFICULT QUARTER. OPERATIONS AT 2 AND 5 SHAFTS
WERE ADVERSELY AFFECTED BY AN UNDERGROUND FIRE WHICH HAS SUBSEQUENTLY BEEN
EXTINGUISHED.
THIS, TOGETHER WITH THE CHRISTMAS BREAK, RESULTED IN A 4% REDUCTION IN TONNAGE
THROUGHPUT AND INCREASED THE COST PER TON MILLED TO R289 (DECEMBER - R269).
THE JUNE QUARTER WILL BE AFFECTED BY A FLOODING INCIDENT AT A PUMP STATION AT 9
SHAFT WHICH RESULTED IN APPROXIMATELY 75 KG OF LOST PRODUCTION.
BISSETT
BISSETT'S ACTIVITIES CONTINUED TO FOCUS ON THE COMPLETION OF CAPITAL PURCHASES
AND THE DEVELOPMENT PROJECTS TO INCREASE PRODUCTION TO 1 000 TONS PER DAY.
A CASH OPERATING LOSS OF R7.6 MILLION (DECEMBER - LOSS R1.5 MILLION) WAS
INCURRED DURING THE QUARTER MAINLY AS A RESULT OF LOW THROUGHPUT AND GRADES
CAUSED BY LACK OF MINING FLEXIBILITY. THE CAPITAL AND DEVELOPMENT PROJECTS WILL
BE COMPLETED DURING THE CURRENT QUARTER LEADING TO EXPECTED PROFITABILITY AT
THE OPERATIONS AFTER JUNE 2000.
KALGOLD
AS A RESULT OF THE HEAVY RAINS AND FLOODING DURING THE QUARTER, KALGOLD'S OPEN
PIT OPERATIONS WERE SEVERELY DISRUPTED. STOCKPILED LOW GRADE ORE HAD TO BE
BLENDED INTO THE PLANT FEED, SIGNIFICANTLY REDUCING GOLD PRODUCTION. AS A
RESULT OF THE LOW THROUGHPUT, UNIT OPERATING COSTS ROSE TO R73 PER TON
(DECEMBER - R70 PER TON).
RANDFONTEIN
HARMONY ASSUMED MANAGEMENT CONTROL OF RANDFONTEIN ON 14 JANUARY 2000 AND
IMMEDIATELY COMMENCED WITH THE IMPLEMENTATION OF ITS OPERATIONAL SYSTEMS.
FLATTENING OF THE MANAGEMENT STRUCTURE NECESSITATED RETRENCHMENT AT SENIOR
MANAGEMENT LEVEL AT A COST OF R16,2 MILLION. UNDERGROUND OPERATIONS PRODUCED 5
868 KGS OF GOLD AT A COST OF R50 517/KG RESULTING IN A CASH OPERATING PROFIT OF
R52,2 MILLION. SURFACE OPERATIONS SUFFERED FROM EXCESSIVE RAINFALL AND INCURRED
A LOSS OF R2,0 MILLION.
OTHER INCOME
A DIVIDEND OF R34 MILLION RECEIVED BY RANDFONTEIN FROM THE SHAREHOLDING IN
WESTERN AREAS LTD IS INCLUDED IN OTHER INCOME.
HEDGING
RANDFONTEIN HAD ENTERED INTO A LARGE RANGE OF HEDGING AGREEMENTS PRIOR TO ITS
ACQUISITION BY HARMONY. THE BOARD CONSIDERS THESE CONTRACTS INAPPROPRIATE AND
HAS RESOLVED TO AMELIORATE AND CLOSE POSITIONS AS MARKET CONDITIONS PERMIT.
DURING THE QUARTER ALL CONTRACTS MATURING DURING CALENDAR YEARS 2000 AND 2001
WERE CLOSED AT A COST OF $10 MILLION AND THE HEDGING EXPOSURE WAS REDUCED BY A
NET 1.4 MILLION OUNCES.
THE REMAINING POSITIONS ARE DETAILED BELOW.
FORWARD SALES AND CALL OPTIONS
                       FORWARD SALES                    CALLS SOLD
PERIOD                 GOLD/$                GOLD/$         GOLD/R
JAN - DEC      OZ '000   $/OZ OZ '000    $/OZ   OZ '000     R/OZ      TOTAL
2002           119       291    100      300      54        2 255     273
2003           256       294    137      307      54        2 504     447
2004           167       295    137      307      4         2 613     308
TOTAL          542              374               112                 1 028
FORWARD PURCHASES
RANDFONTEIN HAS REDUCED ITS FORWARD PURCHASE AGREEMENTS BY 300 000 OZS TO 138
000 OZS AT AN AVERAGE PRICE OF $325/OZ.
LEASE RATE SWAP
RANDFONTEIN HAS LEASE RATE SWAP AGREEMENTS WHEREBY IT RECEIVES A FIXED RATE OF
2% QUARTERLY AND PAYS THE 3 MONTHS FLOATING LEASE RATE ON 789 600 OUNCES. THESE
OUNCES ARE AMORTISED OVER A 5 YEAR PERIOD.
ACCOUNTING POLICY
IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS A PROVISION OF R320
MILLION IS CURRENTLY HELD TO COVER UNREALISED LOSSES IN SPECULATIVE GOLD
DERIVATIVES AT RANDFONTEIN. AT 31 MARCH 2000 THE MARK TO MARKET ESTIMATED
UNREALISED LOSS WAS R60 MILLION LOWER AT R260 MILLION.
THE QUANTUM OF THIS ESTIMATE VARIES WITH MARKET CHANGES IN THE GOLD CONTANGO
RATE, VOLATILITY AND GOLD PRICES, AND THIS FIGURE WILL BE RECALCULATED AND
REPORTED TO SHAREHOLDERS ON A REGULAR BASIS. THE PROVISION WILL BE ADJUSTED AT
FINANCIAL YEAR END.
INVESTMENT
A 19.95% SHAREHOLDING IN GOLDFIELDS LTD OF AUSTRALIA WAS PURCHASED DURING THE
QUARTER FOR R168 MILLION.
R118 MILLION WAS FUNDED THROUGH AN OFF SHORE DEBT FACILITY.
CAPITAL EXPENDITURE
CAPITAL EXPENDITURE DURING THE QUARTER AMOUNTED TO R48 MILLION.
                                  MARCH 2000           JUNE 2000
OPERATION                         R MILLION            R MILLION
                                                       (FORECAST)
FREE STATE                        8                    9
EVANDER                           12                   12
BISSETT                           12                   6
KALGOLD                           1                    3
RANDFONTEIN                       15                   10
TOTAL                             48                   40
OPERATING AND FINANCIAL RESULTS (RAND/METRIC)
          FREE    EVANDER  EVANDER BISSETT KAL      RAND-   RAND-  TOTAL
          STATE   U/G      SURFACE         GOLD     FONTEIN FONTEIN
          TOTAL                            OPENCAST U/G     SURFACE
ORE MILLED - T'000
MARCH 2000 1 467  490      132     49      377      1 090   624    4 229
DEC 1999   1 486  512      113     60      453      -       -      2 624
GOLD PRODUCED - KG
MARCH 2000 6 879  2 907    85      183     415      5 868   666    17 003
DEC 1999   6 981  3 013    89      283     634      -       -      11 000
YIELD - G/T
MARCH 2000 4.69   5.93     0.64    3.73    1.10     5.38    1.07   4.02
DEC 1999   4.70   5.88     0.79    4.72    1.40     -       -      4.19
CASH
OPERATING
COSTS - R/KG
MARCH 2000 49 887 48 711   54 847  108 240 66 080   50 517  61 943 51 424
DEC 1999   49 831 45 533   41 573  65 576  49 834   -       -      48 992
CASH
OPERATING
COSTS - R/T
MARCH 2000 234    289      35      404     73       272     66     207
DEC 1999   234    269      33      309     70       -       -      206
WORKING
REVENUE (R'000)
MARCH 2000 409 587 175 330 5 116   12 250  24 785   348 626 39 219 1 014 913
DEC 1999   407 105 175 887 5 209   17 065  36 854   -       -      642 120
CASH
OPERATING
COSTS (R'000)
MARCH 2000 343 173 141 603 4 662   19 808  27 423   296 435 41 254 874 358
DEC 1999   347 868 137 191 3 700   18 558  31 595   -       -      538 912
CASH
OPERATING
PROFIT (R'000)
MARCH 2000 66 414  33 727  454     (7 558) (2 638)  52 191  (2 035)140 555
DEC 1999   59 237  38 696  1 509   (1 493) 5 259    -       -      103 208
FINANCIAL RESULTS - TOTAL OPERATIONS
(RAND/METRIC) (UNAUDITED)
                                     QUARTER           QUARTER
                                     ENDED             ENDED
                                     31 MARCH          31 DEC
                                     2000              1999
ORE MILLED - T'000                   4 229             2 624
GOLD PRODUCED - KG                   17 003            11 000
GOLD PRICE RECEIVED - R/KG           59 690            58 375
CASH OPERATING COSTS - R/KG          51 424            48 992
                                     R'000             R'000
GOLD SALES                           1 014 913         642 120
CASH OPERATING COSTS                 874 358           538 912
CASH OPERATING PROFIT                140 555           103 208
AMORTISATION                         (39 717)          (28 344)
REHABILITATION PROVISION             (3 951)           (1 674)
EMPLOYMENT TERMINATION COSTS         (16 222)          -
OTHER INCOME - NET                   48 719            10 672
CORPORATE EXPENDITURE                (3 408)           (3 122)
EXPLORATION AND NEW BUSINESS         (4 595)           (3 014)
PROFIT BEFORE TAXATION               121 381           77 726
SOUTH AFRICAN NORMAL TAXATION
- CURRENT TAX                        (12 897)          (8 811)
- DEFERRED TAX                       2 036             (1 858)
NET EARNINGS AFTER TAX               110 520           67 057
EARNINGS PER SHARE - CENTS
- CASH OPERATING EARNINGS            145               126
- NET EARNINGS                       114               82
DIVIDENDS PER SHARE - (CENTS)        -                 50
*CALCULATED ON THE PROJECTED NUMBER OF ISSUED SHARES OF 96.7 MILLION AFTER THE
REMAINING RANDFONTEIN SHARES HAVE BEEN ACQUIRED.
ABRIDGED BALANCE SHEET
(RAND) (UNAUDITED)
                                     AT                AT
                                     31 MARCH          31 DEC
                                     2000              1999
                                     R'000             R'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER
AMORTISATION                         3 806 656         2 353 770
INVESTMENTS                          294 677           51 351
LOANS TO SHARE TRUSTS                15 548            17 748
NET CURRENT LIABILITIES
(EXCLUDING CASH)                     (86 338)          (67 461)
SHORT-TERM INVESTMENTS
- WESTERN AREAS                      119 150           -
CASH                                 203 312           371 744
                                     4 353 005         2 727 152
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                 2 801 565         2 174 579
MINORITY INTEREST - BARNEX           52 933            -
LOANS                                443 217           129 289
LONG-TERM PROVISIONS                 407 563           251 278
UNREALISED HEDGING LOSS              320 467           -
DEFERRED TAX                         327 260           172 006
                                     4 353 005         2 727 152
ISSUED SHARE CAPITAL: 95.2 MILLION ORDINARY SHARES OF 50 CENTS EACH (DEC 1999:
81.7 MILLION SHARES).
THE SIGNIFICANT CHANGES REPORTED ABOVE ARISE FROM THE ACQUISITION OF
RANDFONTEIN AND THE INVESTMENT IN GOLDFIELDS LIMITED OF AUSTRALIA.
OPERATING AND FINANCIAL RESULTS (US$/IMPERIAL)
           FREE    EVANDER EVANDER  BISSETT KALGOLD  RAND-   RAND-   TOTAL
           STATE   U/G     SURFACE          OPENCAST FONTEIN FONTEIN
           TOTAL                                     U/G     SURFACE
 ORE MILLED - T'000
MARCH 2000 1 617   540     145      54      415      1 201   688     4 660
DEC 1999   1 638   564     125      66      499      -       -       2 892
GOLD
PRODUCED - OZ
MARCH 2000 221 165 93 462  2 733    5 884   13 343   188 660 21 412  546 659
DEC 1999   224 444 96 870  2 861    9 099   20 384   -       -       353 658
YIELD - OZ/TON
MARCH 1999 0.137    0.173  0.019    0.109   0.032    0.157   0.031   0.117
DEC 1999   0.137    0.172  0.023    0.138   0.041    -       -       0.122
CASH
OPERATING
COSTS - $/OZ
MARCH 2000 246      240    271      534     326      249     306     254
DEC 1999   254      232    212      334     254      -       -       249
CASH
OPERATING
COSTS - $/T
MARCH 2000 33.69    41.62  5.10     58.22   10.49    39.18   9.52    29.78
DEC 1999   34.76    39.81  4.85     46.02   10.36    -       -       30.50
WORKING
REVENUE ($'000)
MARCH 2000 65 014   27 830 812      1 944   3 934    55 337  6 225   161 096
DEC 1999   66 629   28 787 853      2 793   6 032    -       -       105 094
CASH
OPERATING
COSTS ($'000)
MARCH 2000 54 472   22 477  740     3 144   4 353    47 053  6 548   138 787
DEC 1999   56 934   22 454  606     3 037   5 171    -       -       88 202
CASH
OPERATING
PROFIT ($'000)
MARCH 2000 10 542   5 353   72      (1 200) (419)    8 284   (323)   22 309
DEC 1999   9 695    6 333   247     (244)   861      -       -       16 892
FINANCIAL RESULTS - TOTAL OPERATIONS
(US$/IMPERIAL) (UNAUDITED)
                                   QUARTER           QUARTER
                                   ENDED             ENDED
                                   31 MARCH          30 DEC
                                   2000              1999
ORE MILLED - T'000                 4 660             2 892
GOLD PRODUCED - OZ                 546 659           353 658
GOLD PRICE RECEIVED - $/OZ         295               297
CASH OPERATING COSTS - $/OZ        254               249
                                   $'000             $'000
GOLD SALES                         161 096           105 094
CASH OPERATING COSTS               138 787            88 202
CASH OPERATING PROFIT              22 309            16 892
AMORTISATION                       (6 304)           (4 639)
REHABILITATION PROVISION           (627)             (274)
EMPLOYMENT TERMINATION COSTS       (2 575)           -
OTHER INCOME - NET                 7 733             1 747
CORPORATE EXPENDITURE              (541)             (512)
EXPLORATION & NEW BUSINESS         (729)             (493)
PROFIT BEFORE TAXATION             19 266            12 721
SOUTH AFRICAN NORMAL TAXATION
- CURRENT TAX                      (2 047)           (1 442)
- DEFERRED TAX                     323               (304)
NET EARNINGS AFTER TAX             17 542            10 975
EARNINGS PER SHARE - CENTS
- CASH OPERATING EARNINGS          23                21
- NET EARNINGS                     18                13
DIVIDENDS PER SHARE - (CENTS)      -                 8
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS.
CURRENCY CONVERSION RATES:US$1 = R6.30 (DEC 1999: R6.11)
*CALCULATED ON THE PROJECTED NUMBER OF ISSUED SHARES OF 96.7 MILLION AFTER THE
REMAINING RANDFONTEIN SHARES HAVE BEEN ACQUIRED.
ABRIDGED BALANCE SHEET
(US$) (UNAUDITED)
                                         AT                AT
                                         31 MARCH          30 DEC
                                         2000              1999
                                         $'000             $'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER
AMORTISATION                             604 231           385 232
INVESTMENTS                              46 774            8 404
LOANS TO SHARE TRUSTS                    2 468             2 905
NET CURRENT LIABILITIES
(EXCLUDING CASH)                         (13 704)          (11 041)
SHORT-TERM INVESTMENT
- WESTERN AREAS                          18 913            -
CASH                                     32 272            60 842
                                         690 954           446 342
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                     444 693           355 904
MINORITY INTEREST - BARNEX               8 402             -
LOANS                                    70 352            21 160
LONG-TERM PROVISIONS                     64 693            41 126
UNREALISED HEDGING LOSS                  50 868            -
DEFERRED TAX                             51 946            28 152
                                         690 954           446 342
ISSUED SHARE CAPITAL: 95.2 MILLION ORDINARY SHARES
(DEC 1999: 81.7 MILLION SHARES).
THE SIGNIFICANT CHANGES REPORTED ABOVE ARISE FROM THE ACQUISITION OF
RANDFONTEIN AND THE INVESTMENT IN GOLDFIELDS LIMITED OF AUSTRALIA.
BALANCE SHEET CONVERTED AT A CONVENIENT CONVERSION RATE OF US$1 = R6.30.
DEVELOPMENT RESULTS (METRIC)
                                         CHANNEL      CHANNEL      AU
                          SAMPLED        WIDTH        VALUE        CONTENT
                          METRES         (CM)         (G/T)        (CM.G/T)
FREE STATE
BASAL REEF                1 212          110          6.72         739
LEADER REEF               1 468          165          3.57         589
"A" REEF                  576            153          4.12         630
"B" REEF                  169            68           4.52         986
EVANDER
KIMBERLEY REEF            1 551          57           25.56        1 457
RANDFONTEIN               4 098          158          7.2          1 131
DEVELOPMENT RESULTS (IMPERIAL)
                                     CHANNEL           CHANNEL
                      SAMPLED        WIDTH             VALUE
                      FEET           (INCHES)          (OZ/T)
FREE STATE
BASAL REEF            3 884          44                0,209
LEADER REEF           4 705          66                0,111
"A" REEF              1 846          61                0,128
"B" REEF              542            68                0,452
EVANDER
KIMBERLEY REEF        4 971          23                0,795
RANDFONTEIN           13 133         63                0,224
THIS REPORT WAS APPROVED BY THE BOARD OF DIRECTORS AND IS SIGNED ON ITS BEHALF
BY:
Z B SWANEPOEL             F ABBOTT                      VIRGINIA
CHIEF EXECUTIVE           FINANCIAL DIRECTOR            19 APRIL 2000
INVESTOR INFORMATION
BUSINESS ADDRESS
HARMONY GOLD MINING COMPANY LIMITED
JAMES PARK COMPLEX
C/O MAIN REEF ROAD AND WARD AVENUE
RANDFONTEIN
PO BOX 2
RANDFONTEIN, 1760
TELEPHONE: +27 (11) 411-2156
TELEFAX:   +27 (11) 692-3879
E-MAIL: CORPORATE@HARMONY.CO.ZA
INVESTOR RELATIONS
FOR FURTHER INFORMATION CONTACT
FERDI DIPPENAAR AT
TELEPHONE: +27 (11) 411-2160
TELEFAX:   +27 (11) 692-3693
E-MAIL: FDIPPENAAR@HARMONY.CO.ZA
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
UNITED STATES DEPOSITARY
AMERICAN DEPOSITARY RECEIPTS
THE BANK OF NEW YORK, SHAREHOLDER RELATIONS DEPARTMENT, 101 BARCLAY STREET
NEW YORK NY 10286, USA
TELEPHONE +1 (212) 815-5800/ +1 (888)-BNY-ADRS
UNITED KINGDOM REGISTRARS
COMPUTERSHARE SERVICES PLC
PO BOX 82, BRIDGWATER ROAD
BRISTOL BS99 7NH ENGLAND
TELEPHONE: +44 (20) 7930-6509
TELEFAX:   +44 (20) 7930-6600
NORTH AMERICAN INVESTOR AND SHAREHOLDERS ENQUIRIES
ROTH INVESTOR RELATIONS, INC.
215 GORDONS CORNER ROAD, SUITE 2A
MANALAPAN
NEW JERSEY 07726
TEL: +1 (732) 792-2200
FAX: +1 (732) 792-2211
MICHELLE B. ROTH (PRESIDENT)
MICHELLEROTH@ROTHIR.COM
JACK MERGOTT
JACKMERGOTT@ROTHIR.COM
DIRECTORS
A R FLEMING* (CHAIRMAN), ZB SWANEPOEL (CHIEF EXECUTIVE), F ABBOTT, DR. N V
ARMSTRONG, RAL ATKINSON, F DIPPENAAR, NJ FRONEMAN, TSA GROBICKI, L HEWITT*, MF
PLEMING*, LORD RENWICK OF CLIFTON KCMG* , FR SULLIVAN                *NON
EXECUTIVE DIRECTORS       BRITISH
ENQUIRIES CONCERNING THIS REPORT CAN BE DIRECTED TO:
FERDI DIPPENAAR
PO BOX 2 RANDFONTEIN, 1760
TELEPHONE: +27(11) 411-2160
FACSIMILE: +27(11) 692-3693
E-MAIL: FDIPPENAAR@HARMONY.CO.ZA
VISIT OUR WEBSITE: HTTP://WWW.HARMONY.CO.ZA



                                        
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