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HARMONY GOLD MINING COMPANY LIMITED - RESULTS

Release Date: 17/07/2000 12:18:13      Code(s): HAR HARO
HARMONY GOLD MINING CO. LTD
REPORT TO SHAREHOLDERS FOR THE QUARTER ENDED 30 JUNE 2000
"FURTHER OPERATIONAL IMPROVEMENTS YIELD RECORD FINANCIAL RESULTS"
BERNARD SWANEPOEL CHIEF EXECUTIVE
FINANCIAL
                                      JUNE 2000         MARCH 2000
CASH OPERATING PROFIT
- RAND                                182 MILLION       140 MILLION
- US$                                 26 MILLION        22 MILLION
EARNINGS
- RAND                                111 MILLION       110 MILLION
- US$                                 16 MILLION        17 MILLION
EARNINGS PER SHARE
- SA CENTS PER SHARE                   115               114
- US CENTS PER SHARE                   17                18
KEY INDICATORS
                                      JUNE 2000         MARCH 2000
GOLD PRODUCED
-  KG                                 16 951            17 003
-  OZ                                 544 986           546 659
CASH COSTS
-  R/KG                               51 740            51 424
-  $/OZ                               234               254
CHIEF EXECUTIVE'S REVIEW
OVERVIEW
AT THE COMPANY'S QUARTERLY RESULTS PRESENTATION IN APRIL 2000, I STATED THAT
ALTHOUGH THE COMPANY DELIVERED GOOD FINANCIAL RESULTS, THE OPERATIONAL
PERFORMANCE WAS LESS THAN SATISFACTORY.
FOR THE QUARTER ENDED 30 JUNE 2000, I CAN REPORT AN OVERALL IMPROVEMENT IN
OPERATIONAL PERFORMANCE WITH BETTER RESULTS FROM MAINLY EVANDER, BISSETT AND
KALGOLD. THE FREE STATE OPERATIONS CONTINUE TO BE STEADY PERFORMERS, DESPITE A
NEGATIVE GRADE VARIANCE, AND THE INCORPORATION OF RANDFONTEIN IS STARTING TO
SHOW IMPROVED OPERATIONAL RESULTS.
THE INCORPORATION OF RANDFONTEIN MARKS THE COMPANY'S FOURTEENTH ACQUISITION
SINCE THE INSTALLMENT OF NEW MANAGEMENT IN 1995. A YEAR ON YEAR ANALYSIS FOR
THE LAST THREE YEARS ILLUSTRATES THE REMARKABLE GROWTH IN RESPECT OF HARMONY'S
PRODUCTION, OVERALL PERFORMANCE AND THE CREATION OF SHAREHOLDER VALUE.
THE LAST THREE YEARS AT A GLANCE
                                    JUNE 2000     JUNE 1999     JUNE 1998
GOLD PRODUCED
- KG                                55 771        39 997        23 853
- OZ                                1 793 077     1 285 931     766 890
CASH OPERATING PROFIT
- SA RAND                           477 MILLION   399 MILLION   24 MILLION
- US$                               75 MILLION    66 MILLION    5 MILLION
CASH OPERATING COSTS
- R/KG                              50 172        46 435        47 991
- $/OZ                              246           239           305
EARNINGS
- SA RAND                           334 MILLION   171 MILLION   (19 MILLION)
- SA CENTS/SHARE                    409           256           (40)
- US$                               53 MILLION    28 MILLION    (4 MILLION)
- US CENTS/SHARE                    64            42            (7)
DIVIDENDS
- SA RAND                           109 MILLION   76 MILLION    -
- SA CENTS/SHARE                    120           110           -
- US$                               17 MILLION    13 MILLION    -
- US CENTS/SHARE                    19            18            -
EXCHANGE RATE R=US$1.00             R6,35         R6,04         R5,48
THE RESULTS OF OUR STRATEGY ENABLED THE COMPANY TO INCREASE ITS PRODUCTION FROM
766 890 OUNCES IN THE 1997/98 FINANCIAL YEAR TO 1 793 077 OUNCES FOR THE
CURRENT YEAR, AN INCREASE OF 134% OVER THE LAST TWO YEARS. CASH OPERATING
PROFITS INCREASED FROM R24 MILLION TO OVER R477 MILLION OVER THE SAME PERIOD.
ALTHOUGH GENERALLY ACQUIRING OPERATIONS, WHICH OPERATED AT HIGHER WORKING COST
LEVELS AND NEEDED MANAGEMENT ATTENTION, OUR FOCUS ON LOW WORKING COSTS AND
PROFITABILITY HAS YIELDED RESULTS. OVER THIS PERIOD HARMONY'S WORKING COSTS
INCREASED ON AVERAGE BY A MERE 4,5% FROM R47 991/KG TO R50 172/KG.
ALTHOUGH SOME OF THE ACQUISITIONS LED TO THE INCREASE IN SHARE CAPITAL OF THE
COMPANY, REAL GROWTH WAS ACHIEVED ON AN EARNINGS PER SHARE BASIS. EARNINGS OF
409 CENTS PER SHARE FOR THE PAST FINANCIAL YEAR WAS REALISED COMPARED WITH A
LOSS SITUATION IN JUNE 1998.
DESPITE THE DEPRECIATION OF OUR LOCAL CURRENCY OVER THE SAME PERIOD, THE
COMPANY HAS ESTABLISHED ITSELF AS A CONSISTENT DIVIDEND PAYER AND INCREASED
DIVIDEND PAYMENTS FROM 110 CENTS IN 1998/1999 TO 120 CENTS FOR THE FINANCIAL
YEAR ENDING JUNE 2000.
WITH THE RATE AT WHICH THE INDUSTRY IS CONSOLIDATING, WE BELIEVE THAT HARMONY
REMAINS WELL POSITIONED TO DELIVER CONTINUED GROWTH AND SHAREHOLDER VALUE
DURING THE NEXT FINANCIAL YEAR.
QUARTERLY REVIEW
THE COMPANY REPORTED AN INCREASED CASH OPERATING PROFIT OF R181,6 MILLION FOR
THE QUARTER ENDED JUNE 2000. THIS IS AN INCREASE OF R41 MILLION OVER THE
PREVIOUS PERIOD, DESPITE THE NUMEROUS PUBLIC HOLIDAYS THAT NEGATIVELY IMPACTED
ON THE COMPANY'S OVERALL RESULTS.
THE INCREASED OPERATING PROFITS WERE ATTRIBUTABLE MAINLY TO A COMBINATION OF
PERFORMANCE IMPROVEMENTS FROM THE VARIOUS OPERATIONS AND THE INCREASE IN GOLD
PRICE IN RAND TERMS.
TONNAGES OF 4,243 MILLION AT 4 G/T ACHIEVED FOR THE QUARTER WAS SIMILAR TO THE
4,229 MILLION AT 4,02 G/T FOR THE PREVIOUS QUARTER, WHICH RESULTED IN THE
RECOVERY OF ONLY 16 951 KG. OVERALL UNIT CASH OPERATING COSTS WERE ALSO
COMPARABLE AT R207/TON.
THE QUARTER'S OPERATIONAL HIGHLIGHT WAS THE RECOVERY GRADE AT EVANDER RETURNING
TO ABOVE 6,0 G/T. AT THE END OF THE PREVIOUS QUARTER WE STATED THAT THE
OPERATIONS AT EVANDER WERE NOT PERFORMING TO THEIR TRUE POTENTIAL. OPERATIONAL
IMPROVEMENT MEASURES WERE BEING IMPLEMENTED. WE BELIEVE THAT THESE OPERATIONS
ARE RETURNING TO THEIR FULL POTENTIAL AND EXPECT THEM TO DELIVER AVERAGE CASH
OPERATING PROFITS OF MORE THAN R50,0 MILLION PER QUARTER. THE CURRENT R301/TON
LEVEL SHOULD BE SEEN AS TEMPORARY. WE FORECAST IT TO DECREASE TO APPROXIMATELY
R275/TON BY THE SEPTEMBER 2000 QUARTER. THE R220/TON TARGET SET FOR JUNE 2001
REMAINS ACHIEVABLE.
THE BISSETT OPERATIONS SHOWED THE GREATEST IMPROVEMENT BY REPORTING AN
INCREASED TONNAGE LEVEL OF 63 000 TONNES AT HIGHER GRADES OF 5.9 G/T. THIS
FOLLOWED THE COMPLETION OF MAJOR CAPITAL DEVELOPMENTS AND A MORE FAVOURABLE
STOPING RATIO FOR DEVELOPMENT TONNAGES REPORTING TO THE MILL. WE EXPECT THE
OPERATIONS TO DELIVER ADDITIONAL STOPE TONNES AT SIMILAR GRADES DURING THE
COMING QUARTER, WHILE CAPITAL EXPENDITURE DECREASES.
KALGOLD RETURNED TO PROFITABILITY WITH A CASH OPERATING PROFIT OF R3,8 MILLION
COMPARED TO THE R2,6 MILLION LOSS INCURRED DURING THE PREVIOUS REPORTING
PERIOD. TONNAGE WAS DOWN FROM 377 000 TONNES TO 282 000 TONNES - IN LINE WITH
OUR DECISION TO DISCONTINUE THE HEAP LEACHING OF DEEPER LOW GRADE SULPHIDES.
TEST WORK TO DETERMINE THE VIABILITY OF THE HEAP LEACH TREATMENT OF LOW GRADE
SULPHIDES FROM THE D ZONE PIT CONTINUES. DURING THE QUARTER OXIDE TONNAGE FROM
THE A-ZONE, WHICH HAS A RESERVE OF 930 000 TONS OF OXIDE ORE, WAS DEVELOPED.
THIS NEW PIT WILL YIELD APPROXIMATELY 50 000 TONNES OF HEAP LEACH ORE PER
MONTH. THIS WILL RESULT IN SIGNIFICANT INCREASES IN TONNAGE THROUGHPUT AND
WELCOME IMPROVEMENTS IN GOLD PRODUCTION AND UNIT COSTS.
THE RANDFONTEIN OPERATIONS REPORTED A 99 PER CENT INCREASE IN CASH OPERATING
PROFIT TO R99,7 MILLION, COMPARED TO R50,2 MILLION FOR THE PREVIOUS PERIOD.
UNDERGROUND TONNAGE OF 1.16 MILLION TONNES WAS SLIGHTLY HIGHER THAN THAT OF THE
PREVIOUS QUARTER, RESULTING IN 6 106 KILOGRAMS BEING PRODUCED AT A GRADE OF
5,27 G/T. WHEN MEASURED ON A COST/KG BASIS, THE COSTS DECREASED BY 5 PER CENT
FROM R50 517/KG TO R47 870/KG. ON A COST/TON BASIS THE COSTS DECREASED BY 7 PER
CENT FROM R272/TON TO R252/TON. OUR TARGET OF DECREASING WORKING COSTS TO
R235/TON IN THE NEXT TWELVE MONTHS REMAINS ATTAINABLE. THE RANDFONTEIN SURFACE
OPERATIONS RETURNED TO PROFITABILITY AFTER THE ABNORMAL RAINFALL LEVELS IN THE
PREVIOUS QUARTER. THE 24 PER CENT INCREASE IN TONNAGE TO 775 000 TONNES AT A
HIGHER RECOVERY GRADE OF 1,19 G/T, COMPARED TO 1,07 G/T REPORTED PREVIOUSLY,
ILLUSTRATES THE GEARING OF THIS OPERATION AND RESULTED IN CASH OPERATING
PROFITS OF R12,9 MILLION, COMPARED TO THE LOSS OF R2,0 MILLION FOR THE PREVIOUS
PERIOD UNDER REVIEW.
WE ARE MAKING GOOD PROGRESS WITH RANDFONTEIN NO. 4 SHAFT COMPLEX'S TURNAROUND.
THE LOSSES INCURRED WERE DOWN FROM R28,0 MILLION IN THE MARCH 2000 QUARTER TO
R9,8 MILLION FOR THE CURRENT QUARTER. OUR INVESTIGATION INTO THE LONG-TERM
OPERATIONAL VIABILITY OF THIS COMPLEX CONTINUES, AS THE COMPANY'S FOCUS IS NOT
MERELY ON PRODUCING OUNCES, BUT RATHER ON OPERATING WITH SUSTAINABLE LOW
WORKING COSTS AND LONG-TERM PROFITABILITY.
THE AGGREGATE PERFORMANCE OF THE OPERATIONS OF WIDELY DIFFERING CHARACTER THAT
NOW COMPRISE THE FREE STATE COMPLEX, WAS SLIGHTLY BELOW EXPECTED LEVELS. THIS
COMPLEX SHOULD, UNDER CURRENT CIRCUMSTANCES, RETURN AVERAGE CASH OPERATING
PROFITS OF APPROXIMATELY R50,0 MILLION PER QUARTER. THE PREVIOUS SIX MONTHS
HAVE BEEN MOST REWARDING WITH CASH OPERATING PROFIT LEVELS OF ABOVE R60,0
MILLION PER QUARTER. DUE TO SLIGHTLY LOWER TONNAGE OF 1,4 MILLION TONNES AT A
LOWER GRADE OF 4,37 G/T, COMPARED TO 4,69 G/T REPORTED PREVIOUSLY, THE COMPLEX
RETURNED A CASH OPERATING PROFIT OF R42,0 MILLION, DOWN 37% FROM THE R66,4
MILLION REPORTED IN THE PREVIOUS QUARTER.
THE DEVELOPMENT OF THE OREBODY IN TARGETED SECTIONS OF THE FREE STATE MINING
LEASE, MORE SPECIFICALLY THE MASIMONG COMPLEX, WAS PURSUED AGGRESSIVELY - NOT
ONLY TO SUSTAIN PLANNED PRODUCTION LEVELS, BUT ALSO TO INCREASE FUTURE
PRODUCTION. THE INCREASED INVESTMENT LEVEL IN THE FREE STATE OPERATIONS'
OREBODIES IS ILLUSTRATED IN THE FOLLOWING TABLE:
                                    SEPT      DEC      MARCH       JUNE
                                    1999      1999     2000        2000
TOTAL METRES DEVELOPED              10 472    11 773   11 263      13 225
M2 STOPED/TOTAL
METRES DEVELOPED                    24        25       23          19
THE ACQUISITION OF THE MASIMONG SHAFTS IN SEPTEMBER 1998 ENABLED THE COMPANY TO
FOCUS ON THE ESTABLISHMENT OF A NEW GROWTH AREA WHICH WILL ENHANCE THE
OPERATIONAL PROFILE OF THE FREE STATE REGION.
WHILE MASIMONG PRODUCES ONLY 19 PER CENT OF THE FREE STATE OPERATIONS' TOTAL
GOLD PRODUCTION, THIS OPERATION CONTRIBUTES 29 PER CENT TO THAT COMPLEX'S
BOTTOM-LINE!  A FURTHER CAPITAL INVESTMENT OF R29 MILLION IS, HOWEVER, REQUIRED
FOR THIS OREBODY TO CONTINUE TO DELIVER INCREASED PRODUCTION AND PROFITS TO
THIS REGION
EXPLORATION RESULTS HAVE BEEN MOST ENCOURAGING WITH SAMPLING RETURNING AVERAGE
VALUES OF 1 475 CMG/T OVER 2 018 METRES OF DEVELOPMENT:
MASIMONG 5 SHAFT EXPLORATION RESULTS
WASTE METRES DEVELOPED (M)                           11 242
REEF METRES DEVELOPED (M)                            2 018
REEF METRES ABOVE CUT OFF (%)                        70
AVERAGE GRADE ABOVE CUT OFF (CMG/T)                  1 475
PROSPECT HOLES ABOVE CUT OFF (%)                     67
PROSPECT HOLES AVERAGE GRADE ABOVE CUT OFF (CMG/T)   1 589
AN ESTIMATED 1,1 MILLION OUNCES HAVE BEEN INCLUDED IN THE RESERVE BASE AND 22,7
MILLION OUNCES IN THE RESOURCE CATEGORY.
MASIMONG ORE RESERVES
                                                                   ANNUAL
SAMREC                           MM4#       MM5#        TOTAL      INCREASE
RESERVE
CUT-OFF (CMG/T)                  827        624         753
TONS '000                        3 148      3 121       6 270      36%
G/T                              5.24       6.16        5.70
KG                               16 488     19 227      35 715     40%
OUNCES                           530 110    618 173     1 148 283
RESOURCE
CUT-OFF (CMG/T)                  250        250         250
TONS '000                        39 146     125 305     164 951
G/T                              6.04       3.75        4.30
KG                               236 553    470 288     706 841
OUNCES                           7 605 486  15 120 370  22 725 857
THE COMPLETION OF THIS ADDITIONAL CAPITAL EXPENDITURE PROGRAMME WILL RESULT IN
INCREASED PRODUCTION LEVELS FROM 86 000 TONNES PER MONTH TO 100 000 TONNES PER
MONTH BY JUNE 2001. AT EXPECTED HIGHER GRADES, WE ENVISAGE PRODUCTION FROM THIS
REGION TO INCREASE BY 31% TO 590 KG PER MONTH.
MASIMONG MONTHLY PROFILE
                                        JUNE       JUNE    DEC       JUNE
                                        1999       2000    2000      2001
TONS '000                               66         86      93        100
GRADE (G/T)                             4.98       5.20    5.75      5.90
R/TON                                   281        240     253       250
R/KG                                    56 521     46 067  44 350    43 000
CAPITAL DEVELOPMENT
METRES                                  561        766     1 381     1 364
MINERAL RESOURCES AND RESERVES
THE COMPANY HAS REBLOCKED AND UPDATED THE ESTIMATION OF MINERAL RESOURCES AND
RESERVES OF ALL ITS OPERATIONS AT THE START OF THE NEW FINANCIAL YEAR.
THE RESULTS OF THIS EXERCISE ARE REPORTED FOR THE FIRST TIME IN A NEW FORMAT
AND ARE IN ALL RESPECTS COMPLIANT WITH THE SPECIFICATIONS EMBODIED IN THE SOUTH
AFRICAN CODE FOR REPORTING OF MINERAL RESOURCES AND RESERVES (SAMREC CODE). IN
ACCORDANCE WITH THE JOHANNESBURG STOCK EXCHANGE'S LISTING REGULATIONS, IT IS
ANTICIPATED THAT THE REST OF THE SOUTH AFRICAN INDUSTRY WILL REPORT THEIR
MINERAL RESOURCES AND RESERVES SIMILARLY.
AS REQUIRED, THE MINERAL RESOURCES AND RESERVES WERE AUDITED BY INDEPENDENT
CONSULTANTS AND WERE REVIEWED IN TERMS OF:
- GEOLOGICAL MODELS
- EVALUATION METHODS
- ORE FLOW FACTORS; DILUTION & GOLD LOSSES (MCF)
- CUT-OFF CALCULATIONS; COST (R/T), GOLD PRICE AT R60 000KG
- SAMREC CLASSIFICATION
THE PRINCIPAL DIFFERENCE BETWEEN THE PREVIOUS METHODOLOGIES AND SAMREC IS THAT
MINERAL RESERVES ARE DECLARED AS METALLURGICAL PLANT (MILL) DELIVERED TONNES
AND HEAD GRADE, AS OPPOSED TO THE PAST PRACTICE OF REPORTING BOTH RESERVES AND
RESOURCES ON AN IN SITU BASIS.
MINERAL RESERVES (METRIC)
                    PREVIOUS                      JUNE 2000 - SAMREC
              TONNES      GRADE    GOLD       TONNES      GRADE     GOLD
              (MILLIONS)  (G/T)    (TONNES)   (MILLIONS)  (G/T)     (TONNES)
FREE STATE    44.1        7.36     325        45.5        5.33      242
EVANDER       50.8        8.40     427        49.4        6.11      302
RANDFONTEIN   20.8        5.64     117        50.5        5.13      259
LINDUM        8.3         1.54     13         3.0         1.54      5
BISSETT       1.9         8.44     16         2.1         6.67      14
KALGOLD       13.0        1.81     24         7.8         2.37      18
HARMONY
RESERVES      109.8       7.22     792        158.3       5.31      840
MINERAL RESERVES (IMPERIAL)
                   PREVIOUS                      JUNE 2000 - SAMREC
              TONS        GRADE    GOLD       TONS        GRADE    GOLD
              (MILLIONS)  (OZ/T)   (OZ MILL)  (MILLIONS)  (OZ/T)   (OZ MILL)
FREE STATE    48.6        0.215    10.44      50.2        0.155    7.80
EVANDER       56.0        0.245    13.73      54.5        0.178    9.70
RANDFONTEIN   22.9        0.164    3.77       55.7        0.149    8.32
LINDUM        9.1         0.045    0.41       3.3         0.045    0.15
BISSETT       2.1         0.248    0.51       2.3         0.196    0.45
KALGOLD       14.3        0.053    0.76       8.6         0.070    0.60
HARMONY
RESERVES      121.0       0.210    25.44      174.6       0.155    27.02
MINERAL RESOURCES
MINERAL RESOURCES ARE INCLUSIVE OF RESERVE FIGURES
                    METRIC                       IMPERIAL
              TONNES      GRADE    GOLD       TONS        GRADE    GOLD
             (MILLIONS)   (G/T)    (TONNES)   (MILLIONS)  (OZ/T)   (OZ MILL)
FREE STATE   452.31       4.12     1 862      498.59      0.120    59.85
EVANDER      290.86       6.56     1 909      320.62      0.191    61.39
RANDFONTEIN  1 108.51     4.56     5 058      1 221.92    0.133    162.61
KALGOLD      41.49        1.56     65         45.73       0.046    2.09
BISSETT      2.94         8.63     25         3.24        0.252    0.81
TOTAL        1 896.11     4.70     8 919      2 090.10    0.137    286.75
NOTE: UNDERGROUND MINERAL RESOURCES ARE DECLARED USING A CUT-OFF OF 250 CMG/T
(APPROXIMATELY 2 G/T).
CAPITAL EXPENDITURE
                           JUNE        SEPTEMBER
                           QUARTER     QUARTER
OPERATIONS                 ACTUALS     (FORECAST)
FREE STATE                 26          22
EVANDER                    20          16
BISSETT                    7           6
KALGOLD                    3           3
RANDFONTEIN                8           10
TOTAL                      64          57
NOTICE OF FINAL DIVIDEND
A DIVIDEND NO. 71 OF 70 CENTS PER ORDINARY SHARE, BEING THE FINAL DIVIDEND FOR
THE FINANCIAL YEAR ENDED 30 JUNE 2000, HAS BEEN DECLARED PAYABLE ON 8 SEPTEMBER
2000 TO THOSE SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE
OF BUSINESS ON 4 AUGUST 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 7 SEPTEMBER
2000.
THIS ANNOUNCEMENT WILL BE MAILED TO ALL REGISTERED SHAREHOLDERS ON OR ABOUT 18
JULY 2000.
BY ORDER OF THE BOARD
FW BAKER
COMPANY SECRETARY
VIRGINIA
17 JULY 2000
OPERATING AND FINANCIAL RESULTS (RAND/METRIC)
                                                    RAND-    RAND-
         FREE      EVANDER EVANDER BISSETT KALGOLD  FONTEIN  FONTEIN
         STATE        U/G SURFACE       OPENCAST      U/G SURFACE     TOTAL
         TOTAL
ORE MILLED -
T'000
JUNE
2000     1 386     485     93         63      282    1 159   775      4 243
MARCH
2000     1 467     490     132        49      377    1 090   624      4 229
GOLD
PRODUCED -
KG JUNE
2000     6 058     2 955   75         372     459    6 106   926      16 951
MARCH
2000     6 879     2 907   85         183     415    5 868   666      17 003
YIELD -
G/T JUNE
2000     4.37      6.09    0.81       5.90    1.63   5.27    1.19     4.00
MARCH
2000     4.69      5.93    0.64       3.73    1.10   5.38    1.07     4.02
CASH
OPERATING
COSTS -
R/KG JUNE
2000     56 099    49 469  55 867     68 744  53 220 47 870  48 089   51 740
MARCH
2000     49 887    8 711   54 847     108 240 6 080  50 517  61 943   51 424
CASH
OPERATING
COSTS - R/T
JUNE
2000     245       301     45         406     87     252     57       207
MARCH
2000     234       289     35         404     73     272     66       207
WORKING
REVENUE
(R'000) JUNE
2000   381 875    182 626  4 615    24 715  28 266  379 082 57 460 1 058 639
MARCH
2000   409 587    175 330  5 116    12 250  24 785  348 626 39 219 1 014 913
CASH
OPERATING
COSTS
(R'000) JUNE
2000    339 846   146 182  4 190    25 573  24 428  292 293 44 530   877 042
MARCH
2000    343 173   141 603  4 662    19 808  27 423  296 435 41 254   874 358
CASH
OPERATING
PROFIT
(R'000) JUNE
2000    42 029    36 444   425      (858)   3 838   86 789  12 930   181 597
MARCH
2000    66 414    33 727   454      (7 558) (2 638) 52 191  (2 035)  140 555
FINANCIAL RESULTS -
TOTAL OPERATIONS
(RAND/METRIC) (UNAUDITED)
                          QUARTER       QUARTER        YEAR        YEAR
                          ENDED         ENDED          ENDED       ENDED
                          30 JUNE       31 MARCH       30 JUNE     30 JUNE
                          2000          2000           2000        1999
ORE MILLED - T'000        4 243         4 229          13 494      7 795
GOLD PRODUCED - KG        16 951        17 003         55 771      39 997
GOLD PRICE RECEIVED -
R/KG                      62 453        59 690         58 718      56 404
CASH OPERATING COSTS -
R/KG                      51 740        51 424         50 172      46 435
                          R'000         R'000          R'000       R'000
GOLD SALES                1 058 639     1 014 913      3 274 765   2 255 995
CASH OPERATING COSTS      877 042       874 358        2 798 119   1 857 269
CASH OPERATING PROFIT     181 597       140 555        476 646     398 726
AMORTISATION              (42 341)      (39 717)       (134 003)   (98 405)
IMPAIRMENT                -             -              -           (112 000)
REHABILITATION PROVISION  3 531         (3 951)        (3 522)     (5 986)
EMPLOYMENT TERMINATION
  COSTS                   -             (16 222)       (16 222)    (32 865)
OTHER INCOME - NET        13 765        48 719         102 034     48 296
CORPORATE EXPENDITURE     (3 826)       (3 408)        (12 299)    (12 800)
EXPLORATION AND NEW
  BUSINESS                (7 191)       (4 595)        (17 030)    (155)
PROFIT BEFORE TAXATION    145 535       121 381        395 604     184 811
SOUTH AFRICAN NORMAL
TAXATION
- CURRENT TAX             3 924         (12 897)       (25 898)    (12 943)
- DEFERRED TAX            (38 091)      2 036          (35 330)    (924)
NET EARNINGS AFTER TAX    111 368       110 520        334 376     170 944
EARNINGS PER SHARE -
CENTS
- CASH OPERATING EARNINGS 186           145            583         597
- NET EARNINGS            115           114            409         256
DIVIDENDS PER SHARE -
(CENTS)                   70            -              120         110
*CALCULATED ON THE PROJECTED NUMBER OF ISSUED SHARES OF 97,5 MILLION AFTER THE
REMAINING RANDFONTEIN SHARES HAVE BEEN ACQUIRED.
EARNINGS PER SHARE CALCULATED ON A WEIGHTED AVERAGE NUMBER OF SHARES IN ISSUE
OF 81,6 MILLION FOR THE YEAR.
ABRIDGED BALANCE SHEET
(RAND) (UNAUDITED)
                                    AT               AT
                                    30 JUNE 2000     31 MARCH 2000
                                    R'000            R'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER AMORTISATION    3 781 840        3 746 104
INVESTMENTS                         302 651          294 677
LOANS TO SHARE TRUSTS               14 853           15 548
NET CURRENT LIABILITIES
(EXCLUDING CASH)                    (117 364)        (142 383)
SHORT-TERM INVESTMENTS
P WESTERN AREAS                     85 299           119 150
CASH                                524 574          203 312
                                    4 591 853        4 236 408
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                2 899 436        2 801 565
LOANS                               678 900          440 105
LONG-TERM PROVISIONS                397 216          407 563
UNREALISED HEDGING LOSS             312 022          320 467
DEFERRED TAX                        304 279          266 708
                                    4 591 853        4 236 408
ISSUED SHARE CAPITAL: 97,5 MILLION ORDINARY SHARES OF 50 CENTS EACH (MARCH
2000: 95,2 MILLION SHARES).
THE DECREASE IN THE WESTERN AREAS SHORT-TERM INVESTMENT IS DUE TO A MARK TO
MARKET ADJUSTMENT OF R34 MILLION, WHICH IS REFLECTED AGAINST NON- DISTRIBUTABLE
RESERVES.
OPERATING AND FINANCIAL RESULTS (US$/IMPERIAL)
                                                     RAND-   RAND-
            FREE     EVANDER EVANDER BISSETT KALGOLD FONTEIN FONTEIN
            STATE        U/G SURFACE       OPENCAST     U/G SURFACE  TOTAL
            TOTAL
ORE MILLED -
T'000
JUNE 2000   1 528    535     103     69      311     1 277   854     4 677
MARCH 2000  1 617    540     145     54      415     1 201   688     4 660
GOLD PRODUCED - OZ
JUNE 2000   194 769  95 005  2 411   11 960  14 757  196 312 29 772  544 986
MARCH 2000  221 165  93 462  2 733   5 884   13 343  188 660 21 412  546 659
YIELD - OZ/TON
JUNE 2000   0.127    0.178   0.024   0.173   0.047   0.154   0.035   0.117
MARCH 2000  0.137    0.173   0.019   0.109   0.032   0.157   0.031   0.117
CASH OPERATING
COSTS - $/OZ
JUNE 2000   254      224     253     311     241     217     218     234
MARCH 2000  246      240     271     534     326     249     306     254
CASH OPERATING
COSTS - $/T
JUNE 2000   32.37    39.77   5.92    53.94   11.43   33.32   7.59    27.30
MARCH 2000  33.69    41.62   5.10    58.22   10.49   39.18   9.52    29.78
WORKING
REVENUE ($'000)
JUNE 2000   55 586   26 583  672     3 598   4 114   55 179  8 364   154 096
MARCH 2000  65 014   27 830  812     1 944   3 934   55 337  6 225   161 096
CASH OPERATING
COSTS ($'000)
JUNE 2000   49 468   21 278  610     3 722   3 556   42 546  6 482   127 662
MARCH 2000  54 472   22 477  740     3 144   4 353   47 053  6 548   138 787
CASH OPERATING
PROFIT ($'000)
JUNE 2000   6 118    5 305   62      (124)   558     12 633  1 882   26 434
MARCH 2000  10 542   5 353   72      (1 200) (419)   8 284   (323)   22 309
FINANCIAL RESULTS -
TOTAL OPERATIONS
(US$/IMPERIAL) (UNAUDITED)
                                QUARTER     QUARTER     YEAR       YEAR
                                ENDED       ENDED       ENDED      ENDED
                                30 JUNE     31 MARCH    30 JUNE    30 JUNE
                                2000        2000        2000       1999
ORE MILLED - T'000              4 677       4 660       14 873     8 592
GOLD PRODUCED - OZ              544 986     546 659     1 793 077  1 285 931
GOLD PRICE RECEIVED - $/OZ      283         295         288        290
CASH OPERATING COSTS - $/OZ     234         254         246        239
                                $'000       $'000       $'000      $'000
GOLD SALES                      154 096     161 096     515 711    373 509
CASH OPERATING COSTS            127 662     138 787     440 649    307 495
CASH OPERATING PROFIT           26 434      22 309      75 062     66 014
AMORTISATION                    (6 163)     (6 304)     (21 103)   (16 292)
IMPAIRMENT                      -           -           -          (18 543)
REHABILITATION PROVISION        514         (627)       (555)      (991)
EMPLOYMENT TERMINATION COSTS    0           (2 575)     (2 555)    (5 441)
OTHER INCOME - NET              2 004       7 733       16 069     7 996
CORPORATE EXPENDITURE           (557)       (541)       (1 937)    (2 119)
EXPLORATION & NEW BUSINESS      (1 047)     (729)       (2 682)    (26)
PROFIT BEFORE TAXATION          21 185      19 266      62 299     30 598
SOUTH AFRICAN NORMAL TAXATION
- CURRENT TAX                   571         (2 047)     (4 078)    (2 143)
- DEFERRED TAX                  (5 545)     323         (5 564)    (153)
NET EARNINGS AFTER TAX          16 211      17 542      52 657     28 302
EARNINGS PER SHARE - CENTS
- CASH OPERATING EARNINGS       27          23          92         99
- NET EARNINGS                  17          18          64         42
DIVIDENDS PER SHARE - (CENTS)   10          -           19         18
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS.
CURRENCY CONVERSION RATES:US$1 = R6.87 (MARCH 2000: R6.30)
*CALCULATED ON THE PROJECTED NUMBER OF ISSUED SHARES OF 97.5 MILLION AFTER THE
REMAINING RANDFONTEIN SHARES HAVE BEEN ACQUIRED.
CURRENCY CONVERSION RATES FOR THE YEAR:US$1 = R6.35 (1999: R6.04)
EARNINGS PER SHARE CALCULATED ON A WEIGHTED AVERAGE NUMBER OF SHARES IN ISSUE
OF 81,6 MILLION FOR THE YEAR.
ABRIDGED BALANCE SHEET
(US$) (UNAUDITED)
                                    AT               AT
                                    30 JUNE 2000     31 MARCH 2000
                                    $'000            $'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER AMORTISATION    550 486          594 620
INVESTMENTS                         44 054           46 774
LOANS TO SHARE TRUSTS               2 162            2 468
NET CURRENT LIABILITIES
(EXCLUDING CASH)                    (17 083)         (22 601)
SHORT-TERM INVESTMENT
- WESTERN AREAS                     12 416           18 913
CASH                                76 357           32 272
                                    668 392          672 446
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                422 043          444 692
LOANS                               98 821           69 858
LONG-TERM PROVISIONS                57 819           64 693
UNREALISED HEDGING LOSS             45 418           50 868
DEFERRED TAX                        44 291           42 335
                                    668 392          672 446
ISSUED SHARE CAPITAL: 97.5 MILLION ORDINARY SHARES
(MARCH 2000: 95.2 MILLION SHARES).
BALANCE SHEET CONVERTED AT A CONVENIENT CONVERSION RATE OF US$1 = R6.87.
THE DECREASE IN THE WESTERN AREAS SHORT-TERM INVESTMENT IS DUE TO A MARK TO
MARKET ADJUSTMENT OF R34 MILLION, WHICH IS REFLECTED AGAINST NON- DISTRIBUTABLE
RESERVES.
DEVELOPMENT RESULTS (METRIC)
                                     CHANNEL    CHANNEL    AU
                          SAMPLED    WIDTH      VALUE      CONTENT
                          METRES     (CM)       (G/T)      (CM.G/T)
FREE STATE
BASAL REEF                1 126      96         10.54      1 012
LEADER REEF               1 686      175        3.78       661
"A" REEF                  366        80         4.88       390
MIDDLE REEF               124        84         11.26      946
"B" REEF                  78         85         12.67      1 077
EVANDER
KIMBERLEY REEF            1 674      63         26.33      1 659
RANDFONTEIN
VCR REEF                  420        147        8.4        1 236
MB REEF                   291        226        6.9        1 558
M1 REEF                   66         188        5.5        1 038
MA REEF                   96         250        3.8        945
ED REEF                   195        240        7.5        1 793
EC REEF                   336        227        5.9        1 346
UE1A REEF                 1 867      94         10.6       996
E9EC REEF                 177        112        3.3        364
E8 REEF                   138        143        5.2        736
KIMBERLEY REEF            448        271        0.4        103
DEVELOPMENT RESULTS (IMPERIAL)
                                     CHANNEL    CHANNEL
                          SAMPLED    WIDTH      VALUE
                          FEET       (INCHES)   (OZ/T)
FREE STATE
BASAL REEF                3 694      38         0.308
LEADER REEF               5 532      69         0.110
"A" REEF                  1 201      32         0.142
MIDDLE REEF               407        33         0.329
"B" REEF                  256        33         0.370
EVANDER
KIMBERLEY REEF            5 492      25         0.768
RANDFONTEIN
VCR REEF                  1 378      58         0.245
MB REEF                   955        89         0.201
M1 REEF                   217        74         0.160
MA REEF                   315        98         0.111
ED REEF                   640        94         0.219
EC REEF                   1 102      89         0.172
UE1A REEF                 6 125      37         0.309
E9EC REEF                 581        44         0.096
E8 REEF                   453        56         0.152
KIMBERLEY REEF            1 470      107        0.012
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      17 JULY 2000
INVESTORS 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
CHRISTINE LEONARDI AT
TELEPHONE:  +27 (11) 412-1450
TELEFAX:    +27 (11) 692-3879
E-MAIL: CLEONARDI@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), Z B SWANEPOEL (CHIEF EXECUTIVE),
F ABBOTT, 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* , F R SULLIVAN
*NON EXECUTIVE DIRECTORS  BRITISH
ENQUIRIES CONCERNING THIS REPORT CAN BE DIRECTED TO:
CHRISTINE LEONARDI
PO BOX 2 RANDFONTEIN, 1760
TELEPHONE: +27(11) 412-1450
FACSIMILE: +27(11) 692-3879
E-MAIL: CLEONARDI@HARMONY.CO.ZA
VISIT OUR WEBSITE: HTTP://WWW.HARMONY.CO.ZA



                                        
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