 
HARMONY GOLD MINING COMPANY LIMITED - RESULTSRelease 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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