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HARMONY- RESULTS

Release Date: 16/10/2000 13:12:42      Code(s): HAR HARO
HARMONY GOLD MINING CO. LTD
HARMONY
WINNING BUSINESS THE HARMONY WAY PRINCIPLES NO FRILLS APPROACH GROWTH
ORIENTATION
REPORT TO SHAREHOLDERS FOR THE QUARTER ENDED 30 SEPTEMBER 2000
FINANCIAL
                                    SEPTEMBER 2000         JUNE 2000
CASH OPERATING PROFIT
- RAND                                 143 MILLION       182 MILLION
- US$                                   20 MILLION        26 MILLION
EARNINGS
- RAND                                  80 MILLION       111 MILLION
- US$                                   12 MILLION        16 MILLION
EARNINGS PER SHARE
- SACENTS PER SHARE                             81               115
- USCENTS PER SHARE                             12                17
KEY INDICATORS
                                    SEPTEMBER 2000         JUNE 2000
GOLD PRODUCED
-  KG                                       16 639            16 951
-  OZ                                      534 956           544 986
CASH COSTS
-  R/KG                                     54 872            51 740
-  $/OZ                                        245               234
"OUR GROWTH ASPIRATIONS REMAIN AS STRONG AS EVER AND WE BELIEVE THAT THE LOCAL
AND INTERNATIONAL CONSOLIDATION OF THE INDUSTRY WILL CONTINUE TO PRESENT
OPPORTUNITIES TO OUR COMPANY."
CHIEF EXECUTIVE'S REVIEW
OVERVIEW
SAFETY REPORT
BEFORE DEALING WITH THE OPERATIONAL PORTION OF THE QUARTERLY RESULTS, I MUST
EXPRESS MY CONDOLENCES TO THE FAMILY, FRIENDS AND COLLEAGUES OF THE SIX
EMPLOYEES WE LOST AS A RESULT OF FATAL ACCIDENTS AT OUR OPERATIONS DURING THE
REPORTING PERIOD.
ON THE BRIGHTER SIDE, WE CONGRATULATE OUR EMPLOYEES FOR THEIR CONTINUED
IMPROVEMENT IN SAFETY. THE TEAMS AT OUR EVANDER OPERATIONS ACHIEVED A MILLION
FATALITY FREE SHIFTS DURING SEPTEMBER 2000. OUR TEAMS AT COOKE 2 AND DOORNKOP
ACHIEVED THE SAME IN AUGUST 2000.
WE REMAIN COMMITTED TO ERADICATING ALL LIFE-THREATENING RISKS FROM OUR
OPERATIONS AND TO HAVE A SAFE WORKING ENVIRONMENT FOR ALL OUR EMPLOYEES.
STRATEGIC OVERVIEW
OUR GROWTH ASPIRATIONS REMAIN AS STRONG AS EVER AND WE BELIEVE THAT THE LOCAL
AND INTERNATIONAL CONSOLIDATION OF THE INDUSTRY WILL CONTINUE TO PRESENT
OPPORTUNITIES TO OUR COMPANY.
DURING SEPTEMBER 2000, THE COMPANY ISSUED TWO MILLION SHARES AT R37.45 A SHARE
IN ORDER TO RAISE R74.9 MILLION TO FUND THE INCREASE IN ITS STAKE IN THE
AUSTRALIAN GOLD PRODUCER, GOLDFIELDS LIMITED OF AUSTRALIA, TO 22.96% AT A COST
OF US$7 MILLION (A$1.43 PER SHARE). HARMONY PREVIOUSLY HAD A 19.9% STAKE, WHICH
HAD BEEN DILUTED TO 17.3% AS A RESULT OF THE RECENT GOLDFIELDS RIGHTS ISSUE. IN
TERMS OF THE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION (ASIC), HARMONY
IS PERMITTED TO INCREASE ITS SHAREHOLDING BY NO MORE THAN 3% EVERY SIX MONTHS
IN ORDER TO AVOID HAVING TO MAKE A COMPULSORY OFFER TO MINORITY SHAREHOLDERS.
AN ASIC RULING, HOWEVER, ALLOWED THE COMPANY TO RAISE ITS STAKE TO 19.9% AND TO
PROCEED WITH THE PURCHASE OF AN ADDITIONAL 3%.
WE RECEIVED A 5 CENTS (AUSTRALIAN) PER SHARE DIVIDEND ON OUR 17.3% HOLDING
DURING THE QUARTER
OPERATIONAL OVERVIEW
THE COMPANY REPORTED A CASH OPERATING PROFIT OF R142.6 MILLION. THIS WAS R39.0
MILLION OR 21.5% LOWER THAN THAT OF THE JUNE QUARTER. NET PROFIT OF R80.3
MILLION WAS ALSO 27.9% LOWER QUARTER ON QUARTER.
THE OPERATIONAL RESULTS RETURNED FOR THE QUARTER WERE BELOW OUR EXPECTATIONS.
AT THE JUNE QUARTERLY RESULTS PRESENTATION, I REPORTED A GENERAL OPERATIONAL
IMPROVEMENT AT ALL OUR SHAFTS, BUT HIGHLIGHTED GRADE PROBLEMS SPECIFICALLY IN
THE FREE STATE. THE NEGATIVE GRADE PERFORMANCE FROM THIS REGION CONTINUED
DURING THIS QUARTER. THE SLIGHT NEGATIVE TRENDS AT THE EVANDER AND RANDFONTEIN
OPERATIONS ARE IN LINE WITH EXPECTATIONS. AN OVERALL IMPROVEMENT IN GRADE AND
TONNAGES COULD BE EXPECTED IN OUR FORTHCOMING QUARTER.
AS CAN BE SEEN FROM THE TABLE BELOW, THE COMPANY SHOULD BE ABLE TO PRODUCE GOLD
AT AN AVERAGE GRADE OF 5.1G/T. THE MAKE-UP OF THIS AVERAGE GRADE WILL DIFFER IN
FUTURE, IN THAT RANDFONTEIN WILL PRODUCE AT MARGINALLY LOWER GRADES, WHILST
KALGOLD AND THE FREE STATE OPERATIONS WILL PRODUCE AT SUBSTANTIALLY HIGHER
GRADES.
RECOVERED GRADES
                                                  AVERAGE    SHORT-    LONG-
                        JUNE         SEPT.       GRADE OF     TERM      TERM
                        2000         2000      OREBODY  POTENTIAL  POTENTIAL
                       (G/T)        (G/T)        (G/T)       (G/T)     (G/T)
FREE STATE              4.37         4.00         5.09        4.40      4.90
EVANDER                 6.09         5.86         6.00       5.90       6.00
RANDFONTEIN             5.27         5.01         4.90       5.20       5.00
BISSETT                 5.90         5.99         6.30       6.10       6.30
SURFACE OPERATIONS
EVANDER                 0.81         0.80         0.80        0.80         -
RANDFONTEIN             1.19         1.25         1.20        1.20      1.20
KALGOLD                 1.63         1.58         2.10        1.90      2.10
YOUR COMPANY'S GEARING TO THE GOLD PRICE, AS WELL AS RECOVERED GRADES CAN
CLEARLY BE SEEN FROM THESE RESULTS. IF WE COULD HAVE ACHIEVED A 0.3G/T HIGHER
GRADE DURING THE QUARTER, WE WOULD HAVE PRODUCED AN ADDITIONAL 959KG, THEREBY
POTENTIALLY INCREASING CASH OPERATING PROFIT BY SOME R65 MILLION.
THE AVERAGE 8.5% ANNUAL INCREASE IN WAGES RESULTED IN A R32 MILLION OR 4%
INCREASE IN WORKING COSTS ON A QUARTER TO QUARTER BASIS. IN LINE WITH OUR PAST
PERFORMANCE, WE EXPECT THE HIGHER WORKING COST TO DECREASE THROUGH PRODUCTIVITY
AND EFFICIENCY IMPROVEMENTS AT OPERATIONAL LEVEL.
THE INCREASE IN WORKING COST WAS NEGATED ON A COST PER TON BASIS AS THE
OPERATIONS REPORTED SIMILAR UNDERGROUND COSTS OF R260.00 PER TON FOR BOTH
QUARTERS. LOWER RECOVERY GRADES RESULTED IN COST PER KILOGRAM INCREASING BY R3
131/KG TO R54 873/KG. WORKING COST SHOULD RETURN TO A LEVEL CLOSER TO R50
000/KG BY THE END OF THE CALENDAR YEAR.
WE BELIEVE THAT THE OPERATIONAL PROBLEMS EXPERIENCED DURING THE MOST RECENT
QUARTERS HAVE BEEN ADDRESSED AND THAT OUR SHAREHOLDERS CAN EXPECT A BETTER
OVERALL PERFORMANCE FROM THE COMPANY.
ON AN ANNUALISED BASIS THE COMPANY IS STILL ON TRACK TO PRODUCE 2.2 MILLION
OUNCES.
FREE STATE OPERATIONS
ALTHOUGH REPORTING INCREASED TONNAGE OF 1 484 MILLION COMPARED WITH THE 1 386
MILLION FOR THE JUNE 2000 QUARTER, A LOWER RECOVERY GRADE OF 4.0 G/T RESULTED
IN A DECREASE OF 128 KG RECOVERED FROM THESE OPERATIONS.
WORKING COST INCREASED BY R27.6 MILLION OR 8.1% FROM R339.8 MILLION TO R367.4
MILLION ON A QUARTER TO QUARTER BASIS. THIS CAN BE ATTRIBUTED TO WAGE INCREASES
AND A 7.1% INCREASE IN VOLUME. THE REDUCTION IN GRADES RESULTED IN UNIT COSTS
AT THESE OPERATIONS INCREASING FROM US$254 PER OUNCE TO US$277/OZ.
AS WE HAVE NOTED IN THE PAST, THESE OPERATIONS ARE CAPABLE OF RETURNING CASH
OPERATING PROFITS OF APPROXIMATELY R50.0 MILLION PER QUARTER AND THE R9.4
MILLION REPORTED FOR THE CURRENT QUARTER IS WAY BELOW THE POTENTIAL OF THIS
REGION. THE SHAFT MANAGEMENT TEAMS HAVE TAKEN ON THE CHALLENGE OF RETURNING THE
FREE STATE TO ITS TRUE OPERATING POTENTIAL THROUGH ADDRESSING THE GRADE
UNDERPERFORMANCE.
EVANDER OPERATIONS
THE EVANDER OPERATIONS EXPERIENCED AN IMPROVED QUARTER WITH CASH OPERATING
PROFITS OF R39.2 MILLION, 8% HIGHER THAN THE R36.4 MILLION REPORTED FOR THE
JUNE 2000 QUARTER. UNDERGROUND TONNAGE INCREASED BY 11% FROM 485 000 TONNES TO
539 000 TONNES, MAINLY DUE TO THE BUILD UP OF THE NO.2 AND 5 SHAFTS. AN
EVALUATION TO REOPEN NO.3 SHAFT IS CURRENTLY UNDERWAY AND IF REOPENED IT WILL
IMPACT FAVOURABLY ON THE TONNAGE FROM THIS OPERATION. DESPITE THE RECOVERY
GRADE DECREASING FROM 6.1 G/T TO 5.9 G/T, THE RESULT WAS STILL A 201KG OR 7%
INCREASE IN GOLD RECOVERED FROM UNDERGROUND OPERATIONS.
WORKING COSTS AT THE EVANDER OPERATIONS INCREASED BY R1 334/KG OR 2.7% FROM R49
469/KG TO R50 803/KG. THESE COSTS INCLUDE THE AVERAGE 8.5% INCREASE IN THE WAGE
BILL. ON A COST/TON BASIS COSTS DECREASED BY 1.3% FROM R301/TON TO R297/TON.
TONNAGE FROM SURFACE OPERATIONS DECREASED BY 17 000 TONNES TO 76 000 TONNES
COMPARED TO THE 93 000 TONNES PROCESSED DURING THE JUNE 2000 QUARTER. AT A
SIMILAR GRADE OF 0.81 G/T, GOLD RECOVERY DECREASED SLIGHTLY FROM 75 KG TO
61 KG.
TOTAL KILOGRAMS FROM THESE OPERATIONS INCREASED BY 187 KG OR 6.2%.
IN LINE WITH THE "HARMONY WAY", OUR FOCUS ON THESE OPERATIONS REMAINS ON
INCREASING OPERATIONAL FLEXIBILITY. DEVELOPMENT METRES INCREASED BY 66% TO
7 594 METRES FOR THE CURRENT QUARTER COMPARED WITH 4 581 METRES IN DECEMBER
1998. THE INCREMENTAL EFFECT OF THIS ADDITIONAL DEVELOPMENT ON UNIT COST
(R25/T) HAS BEEN INCLUDED IN THE R297/T UNDERGROUND COST.
RANDFONTEIN OPERATIONS
RANDFONTEIN CONTINUES TO LIVE UP TO EXPECTATIONS WITH CASH COST PER OUNCE
DECREASING FROM US$218/OZ TO US$211/OZ.
THESE OPERATIONS REPORTED A PROFIT OF R92.3 MILLION, WHICH WAS DOWN 7.4% OR
R7.4 MILLION FROM THE R99.7 MILLION REPORTED PREVIOUSLY.
THE RESULTS OF NO. 4 SHAFT CONTINUE TO IMPACT NEGATIVELY ON THESE OPERATIONS.
ALTHOUGH IMPROVING ITS PERFORMANCE TO A LOSS OF R9.8 MILLION DURING THE
PREVIOUS REPORTING PERIOD, THE SHAFT AGAIN EXPERIENCED DISAPPOINTING VARIANCES
IN TONNAGE AND GRADE, WHICH RESULTED IN THE LOSS DETERIORATING TO R17.5 MILLION
FOR THE CURRENT QUARTER.
FOLLOWING AN EVALUATION BY OPSCO DURING AUGUST 2000, CORRECTIVE ACTION WAS
IMPLEMENTED. THIS RESULTED IN A PLAN WHICH WILL FOCUS ON INCREASING THE AVERAGE
GRADE MINED. WE MAINTAIN THAT THE FUTURE OF THESE OPERATIONS REMAIN AT RISK,
UNLESS PROFITABILITY CAN BE ASSURED. A FINAL DECISION REGARDING THE SHAFT'S
FUTURE WILL BE MADE BY DECEMBER 2000.
DURING THE PREVIOUS QUARTER WE REPORTED THAT THE RANDFONTEIN OPERATIONS WOULD
FEEL THE IMPACT OF SHORTENING THE QUARTER BY TWO DAYS TO ALIGN ITS ACCOUNTING
WITH THE REST OF THE HARMONY OPERATIONS.
THE COOKE SECTION CONTINUES TO MAKE SOLID CONTRIBUTIONS AND REPORTED AN OVERALL
R88.5 MILLION CASH OPERATING PROFIT. OUR FOCUS REMAINS ON ELIMINATING MINING
AREAS BELOW THE CUT-OFF THEREBY INCREASING THE GRADE. AS THE IMPROVEMENTS IN
PRODUCTIVITY FLOW THROUGH WE WILL CONTINUE TO DISPLACE CONTRACT WORKERS WITH
OUR OWN EMPLOYEES.
ALTHOUGH DOORNKOP EXPERIENCED SLIGHTLY LOWER RECOVERY GRADES, THIS SHAFT
CONTINUES TO IMPROVE AND RANKS AS ONE OF THE LOWEST COST AND MOST EFFICIENT
SHAFTS IN THE GROUP. THE GRADE VARIANCE WAS PRIMARILY CAUSED BY EXCESSIVE
DILUTION, WHICH WAS SUBSEQUENTLY BROUGHT UNDER CONTROL.
ON AN OVERALL BASIS THE OPERATIONS MILLED SIMILAR UNDERGROUND TONNAGE BUT AT
THE LOWER RECOVERY GRADE OF 5.01 G/T, GOLD RECOVERED WAS LOWER AT 5 818 KG
COMPARED WITH 6 106 KG REPORTED PREVIOUSLY. DESPITE THE IMPACT OF THE WAGE
INCREASES, THESE OPERATIONS REPORTED AN UNDERGROUND COST PER TON OF R251/TON
COMPARED WITH R252/TON FOR THE JUNE QUARTER.
SURFACE TONNAGE DECREASED FROM 775 000 TONNES IN THE JUNE QUARTER TO 710 000
TONNES FOR THE SEPTEMBER 2000 REPORTING PERIOD. THIS WAS MAINLY AS A RESULT OF
A DECREASE IN TONNAGE SOURCED FROM THE MILLSITE PLANT CLEAN UP AND THE
DISPLACEMENT OF SURFACE TONNAGE WITH UNDERGROUND TONNAGE AT NO. 4 SHAFT PLANT.
THE DISPLACEMENT OF LOW GRADE SURFACE TONNAGE BY HIGHER GRADE TONNAGE RESULTED
IN AN ADDITIONAL LOCK-UP OF APPROXIMATELY 100 KG DURING THE PAST TWO MONTHS.
DESPITE AN INCREASE OF 4.4% FROM R47 870/KG TO R49 990/KG IN UNDERGROUND
WORKING COSTS ON AN UNIT COST BASIS, OVERALL WORKING COSTS WERE R1.5 MILLION
LOWER AT R290.8 MILLION DUE TO THE COST BENEFITS OF OUR TRANSFORMATION
CONTINUING TO FLOW THROUGH TO THE BOTTOM LINE.
THE RATIONALISATION OF THE GDS SERVICES DEPARTMENT, WHICH SUPPLIED MAINLY
ADMINISTRATIVE AND ENGINEERING SERVICES TO RANDFONTEIN AND THE PLACER DOME
WESTERN AREAS LIMITED JOINT VENTURE, WAS COMPLETED DURING SEPTEMBER 2000. IN
ADDITION, MEDICAL SERVICES WERE RESTRUCTURED AND INCORPORATED INTO THE HARMONY
MEDICAL STRUCTURES. ALTHOUGH RETRENCHMENT COSTS OF R4.8 MILLION WERE INCURRED,
THE BENEFITS OF THESE ACTIVITIES, AS WELL AS THOSE FLOWING FROM THE
RATIONALISATION OF THE GDS SERVICES DEPARTMENT, WILL HAVE A POSITIVE EFFECT ON
RANDFONTEIN'S OVERHEAD COST STRUCTURE.
DOORNKOP SOUTH REEF PROJECT
MY REFERENCE TO THIS PROJECT IN THE COMPANY'S 2000 ANNUAL REPORT RAISED
SIGNIFICANT INTEREST FROM VARIOUS LOCAL AND INTERNATIONAL MEDIA. WE BELIEVE
THAT THIS AREA, WITH A RESOURCE OF APPROXIMATELY 107 MILLION OUNCES OF WHICH
ONLY 200 000 OUNCES FALL IN THE RESERVE CATEGORY, HAS TREMENDOUS POTENTIAL AND
WILL CONTRIBUTE TO THE FUTURE GROWTH OF THE COMPANY.
THE HISTORY OF THE PROJECT CAN BE SUMMARISED AS FOLLOWS:
* OCTOBER 1991 - APPROVAL OF SOUTH REEF PROJECT
* OCTOBER 1993 - DESPITE SOUTH REEF BEING INTERSECTED ON 192 LEVEL, THE PROJECT
WAS STOPPED
* JULY 1996 - PROJECT RE-STARTED WITH DEEPENING OF SUB-VERTICAL SHAFT
* MARCH 1999 - PROJECT STOPPED
TO DATE AN AMOUNT OF R303 MILLION HAS BEEN SPENT ON THE PROJECT.
THE VENTILATION SHAFT, WHICH WILL ALSO BE USED AS A SECOND OUTLET, HAS BEEN
COMPLETED. THE MAIN SHAFT HAS ONLY BEEN SUNK TO A DEPTH OF 1336 METRES WITH THE
FINAL DEPTH 2 135 METRES BELOW SURFACE.
LIMITED EXPLORATORY MINING HAS TAKEN PLACE ON 192 LEVEL AND THE VALUES ARE
ENCOURAGING, I.E. 10 G/T AT A STOPING WIDTH OF 130CM.
AT THE TIME OF ACQUIRING RANDFONTEIN, WE NOTED THAT WE WOULD REVIEW THE PROJECT
IN ORDER TO MAKE A DECISION ON THE ITS PROGRESS. FOLLOWING THE REPORT ON THE
ESTIMATION OF MINERAL RESOURCES AND RESERVES OF ALL THE COMPANY'S OPERATIONS,
INCLUDING THE DOORNKOP SOUTH REEF PROJECT, THE NEXT STAGE OF THE PROJECT IS THE
COMPLETION OF A PRE-FEASIBILITY STUDY. THE STUDY IS EXPECTED TO BE COMPLETED BY
JUNE 2001, AFTER WHICH A DECISION ON THE FUTURE OF THE PROJECT WILL BE MADE.
KALGOLD OPERATIONS
CASH OPERATING PROFITS AT THIS OPERATION DECREASED FROM R3.8 MILLION TO R1.0
MILLION MAINLY AS A RESULT OF LOWER TONNAGE AND GRADES. TONNAGE WAS AFFECTED BY
THE DISCONTINUATION OF THE HEAP LEACH OPERATIONS AS THE FINANCIAL RETURNS FROM
THE A-ZONE OXIDISED ORE WERE INSUFFICIENT. THIS DECISION WILL RESULT IN A
RESTRUCTURING IN THE MINE'S LABOUR FORCE. NEGOTIATIONS ARE CURRENTLY IN
PROGRESS TO REDEPLOY APPROXIMATELY 108 EMPLOYEES.
OUR FOCUS REMAINS ON INCREASING THE RECOVERY GRADE WHICH WILL IMPACT FAVOURABLY
ON THE PROFITABILITY OF THIS OPERATION IN THE FORTHCOMING QUARTER.
BISSETT OPERATIONS
THE BISSETT OPERATIONS RETURNED TO PROFITABILITY DESPITE AN INCIDENT IN THE
SHAFT AND A MAJOR REGIONAL POWER FAILURE WHICH IMPACTED NEGATIVELY ON THE
TONNES MILLED DURING THE QUARTER. TONNES WERE DOWN BY 6.3% AT 59 000 TONNES AND
AT A HIGHER RECOVERY GRADE OF 5.98 G/T THIS RESULTED IN THE RECOVERY OF 353 KG.
THIS WAS 19 KG LESS THAN THE 372 KG RECOVERED DURING THE JUNE QUARTER.
WORKING COST OF R24.2 MILLION WAS DOWN FROM R25.6 MILLION REPORTED PREVIOUSLY.
GOOD PROGRESS CONTINUES TO BE MADE WITH THE CREATION OF STOPING FLEXIBILITY AND
WE EXPECT TONNAGE TO RETURN TO PREVIOUS LEVELS.
EXPLORATION ACTIVITIES
OUR EXPLORATION ACTIVITIES CONTINUE BOTH LOCALLY AND ABROAD. CONSIDERABLE
PROGRESS WAS MADE WITH THE OVERBURDEN DRILLING PROGRAMMES, AS REGIONAL COVERAGE
WAS COMPLETED OVER THE PHITSANE, GOLDRIDGE MINE, KHUNWANA AND LYNPLAATS BLOCKS
IN THE GOLDRIDGE SECTOR. OVERBURDEN DRILLING OVER THE WONDER AND MOSITA BLOCKS
OF THE STELLA SECTOR COMMENCED DURING THE QUARTER.
INFILL DRILLING ALSO COMMENCED TO DEFINE THE APPROXIMATE POSITION OF MINERAL
ZONES TARGETED FOR BEDROCK DRILLING. TO DATE NO SUBSTANTIAL SYSTEMS OF BEDROCK
ALTERATION AND ANOMALOUS GOLD MINERALISATION HAS BEEN DISCOVERED.
DURING THE PERIOD, THE KHUNWANA JOINT VENTURE WITH GOLD FIELDS WAS TERMINATED.
ALTHOUGH SEVERAL ZONES OF GOLD MINERALISATION WERE INTERSECTED DURING DRILLING
PROGRAMMES, NO POTENTIALLY ECONOMICAL REEFS WERE DISCOVERED.
FOLLOW UP WORK AT MURCHISON WAS FOCUSED ON THE SPITZKOP WEST AREA, WHICH
REFLECTS ONE OF THE LARGER SOIL GEOCHEMICAL ANOMALIES DISCOVERED TO DATE. IT
HAS A STRIKE LENGTH OF 4 000 METRES AND A WIDTH OF APPROXIMATELY 500 METRES.
SOME DRILLING WAS COMPLETED, BUT DESPITE THE PRESENCE OF SIGNIFICANT SULPHIDES,
GOLD VALUES HAVE GENERALLY BEEN DISAPPOINTING TO DATE. GOLD CONTENT VARIES
BETWEEN 0,5 G/T TO 3 G/T OVER INTERSECTED WIDTHS OF 1 METRE TO 10 METRES. OUR
EXPLORATION PROGRAMME TO PROVE A SIZEABLE SIZE/GRADE DEPOSIT IN THIS REGION
CONTINUES.
CAPITAL EXPENDITURE
                          SEPTEMBER         DECEMBER
                            QUARTER          QUARTER
OPERATIONS                  ACTUALS       (FORECAST)
FREE STATE                       28               25
EVANDER                          12               12
RANDFONTEIN                      15               12
BISSETT                           5                5
KALGOLD                           -                -
TOTAL                            60               54
OPERATING AND FINANCIAL RESULTS (RAND/METRIC)
                                 FREE STATE  EVANDER   EVANDER   BISSETT
                                      TOTAL      U/G   SURFACE     TOTAL
ORE
MILLED - T'000
SEPT. 2000                            1 484      539        76        59
JUNE 2000                             1 386      485        93        63
GOLD
PRODUCED - KG
SEPT. 2000                            5 930    3 156        61        353
JUNE 2000                             6 058    2 955        75        372
YIELD - G/T
SEPT. 2000                             4.00     5.86      0.80       5.98
JUNE 2000                              4.37     6.09      0.81       5.90
CASH OPERATING
COSTS - R/KG
SEPT. 2000                           61 956   51 804    51 705     68 683
JUNE 2000                            56 099   49 469    55 867     68 744
CASH OPERATING
COSTS - R/T
SEPT. 2000                              248      297        42        411
JUNE 2000                               245      301        45        406
WORKING REVENUE (R'000)
SEPT. 2000                          376 832  199 529     3 769     24 274
JUNE 2000                           381 875  182 626     4 615     24 715
CASH OPERATING
COSTS (R'000)
SEPT. 2000                          367 402  160 338     3 154      24 245
JUNE 2000                           339 846  146 182     4 190      25 573
CASH OPERATING
PROFIT (R'000)
SEPT. 2000                            9 430   39 191       615          29
JUNE 2000                            42 029   36 444       425       (858)
                                                    RAND-     RAND-
                                        KALGOLD   FONTEIN   FONTEIN
                                       OPENCAST      U/G    SURFACE   TOTAL
ORE
MILLED - T'000
SEPT. 2000                                 274     1 161        710    4 303
JUNE 2000                                  282     1 159        775    4 243
GOLD PRODUCED - KG
SEPT. 2000                                 433     5 818        888   16 639
JUNE 2000                                  459     6 106        926   16 951
YIELD - G/T
SEPT. 2000                                1.58      5.01       1.25     3.87
JUNE 2000                                 1.63      5.27       1.19     4.00
CASH OPERATING
COSTS - R/KG
SEPT. 2000                              61 176    49 990     45 651   54 872
JUNE 2000                               53 220    47 870     48 089   51 740
CASH OPERATING
COSTS - R/T
SEPT. 2000                                  97       251         57      212
JUNE 2000                                   87       252         57      207
WORKING REVENUE (R'000)
SEPT. 2000                              27 497   368 039   55 653  1 055 593
JUNE 2000                               28 266   379 082   57 460  1 058 639
CASH OPERATING
COSTS (R'000)
SEPT. 2000                              26 489   290 842   40 538    913 008
JUNE 2000                               24 428   292 293   44 530    877 042
CASH OPERATING
PROFIT (R'000)
SEPT. 2000                               1 008    77 197   15 115    142 585
JUNE 2000                                3 838    86 789   12 930    181 597
FINANCIAL TOTAL OPERATIONS (RAND/METRIC) (UNAUDITED)
                                QUARTER ENDED                 QUARTER ENDED
                            30 SEPTEMBER 2000                  30 JUNE 2000
ORE MILLED - T' 000                     4 303                         4 243
GOLD PRODUCED - KG                     16 639                        16 951
GOLD PRICE RECEIVED - R / KG           63 441                        62 453
CASH OPERATING COSTS - R / KG          54 872                        51 740
                                        R'000                         R'000
GOLD SALES                          1 055 593                     1 058 639
CASH OPERATING COSTS                  913 008                       877 042
CASH OPERATING PROFIT                 142 585                       181 597
AMORTISATION                         (44 585)                      (42 341)
REHABILITATION PROVISION                  286                         3 531
EMPLOYMENT TERMINATION COSTS          (4 793)                             -
OTHER INCOME - NET                      3 648                        13 765
CORPORATE EXPENDITURE                 (4 143)                       (3 826)
EXPLORATION AND NEW BUSINESS          (7 235)                       (7 191)
PROFIT BEFORE TAXATION                 85 763                       145 535
SOUTH AFRICAN NORMAL TAXATION
- CURRENT TAX                         (7 848)                         3 924
- DEFERRED TAX                          2 374                      (38 091)
NET EARNINGS AFTER TAX                 80 289                       111 368
EARNINGS PER SHARE - CENTS
- CASH OPERATING EARNINGS                 143                           186
- NET EARNINGS                             81                           115
DIVIDENDS PER SHARE - (CENTS)               -                            70
CALCULATED ON 99,6 MILLION ISSUED SHARES (JUNE 2000: 97.3)
ABRIDGED BALANCE SHEET
(RAND) (UNAUDITED)
                                                  AT                    AT
                                   30 SEPTEMBER 2000          30 JUNE 2000
                                               R'000                 R'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER
AMORTISATION                               3 823 623             3 785 230
INVESTMENTS                                  344 242               326 479
LOANS TO SHARE TRUSTS                         12 647                14 853
NET CURRENT LIABILITIES                     (74 249)             (208 510)
(EXCLUDING CASH)
SHORT-TERM INVESTMENTS
- WESTERN AREAS                               76 646                83 174
CASH                                         452 209               528 055
                                           4 635 118             4 529 281
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                       3 023 045             2 874 718
LOANS                                        634 244               668 749
LONG-TERM PROVISIONS                         380 642               380 987
UNREALISED HEDGING LOSS                      266 911               272 177
DEFERRED TAX                                 330 276               332 650
                                           4 635 118             4 529 281
ISSUED SHARE CAPITAL: 99.6 MILLION ORDINARY SHARES OF 50 CENTS EACH.
(JUNE 2000: 97.3 MILLION SHARES)
THE DECREASE IN THE WESTERN AREAS SHORT-TERM INVESTMENT IS DUE TO A MARK TO
MARKET ADJUSTMENT OF R6.5 MILLION, WHICH IS REFLECTED AGAINST OTHER RESERVES.
OPERATING AND FINANCIAL RESULTS(US$ IMPERIAL)

                                     FREE STATE  EVANDER   EVANDER   BISSETT
                                          TOTAL      U/G   SURFACE     TOTAL
ORE
MILLED - T'000
SEPT 2000                                 1 636      594        84        65
JUNE 2000                                 1 528      535       103        69
GOLD PRODUCED - OZ
SEPT 2000                               190 654  101 468     1 961    11 349
JUNE 2000                               194 769   95 005     2 411    11 960
YIELD
- OZ/T
 SEPT 2000                                0.117    0.171     0.023     0.175
JUNE 2000                                 0.127    0.178     0.024     0.173
CASH OPERATING
COSTS - $/OZ
SEPT 2000                                   277      227       231       307
JUNE 2000                                   254      224       253       311
CASH OPERATING
COSTS - $/T
SEPT 2000                                 32.26    38.78      5.39     53.58
JUNE 2000                                 32.37    39.77      5.92     53.94
WORKING REVENUE ($'000)
SEPT 2000                                54 137   28 665       541     3 487
JUNE 2000                                55 586   26 583       672     3 598
CASH OPERATING
COSTS ( ($'000)
SEPT 2000                                52 782   23 035       453     3 483
JUNE 2000                                49 468   21 278       610     3 722
CASH OPERATING
PROFIT ($'000)
SEPT 2000                                 1 355    5 630        88         4
JUNE 2000                                 6 118    5 305        62     (124)
                                                   RAND-    RAND-
                                       KALGOLD   FONTEIN  FONTEIN
                                      OPENCAST       U/G  SURFACE      TOTAL
ORE MILLED - T'000
SEPT 2000                                  302     1 280      783      4 744
JUNE 2000                                  311     1 277      854      4 677
GOLD PRODUCED - OZ
SEPT 2000                               13 921   187 053   28 550    534 956
JUNE 2000                               14 757   196 312   29 772    544 986
YIELD
- OZ/T
 SEPT 2000                               0.046     0.146    0.036      0.113
JUNE 2000                                0.047     0.154    0.035      0.117
CASH OPERATING
COSTS - $/OZ
SEPT 2000                                  273       223      204        245
JUNE 2000                                  241       217      218        234
CASH OPERATING
COSTS - $/T
SEPT 2000                                12.60     32.64     7.44      27.65
JUNE 2000                                11.43     33.32     7.59      27.30
WORKING
REVENUE ($'000)
SEPT 2000                                3 950    52 874    7 995    151 649
JUNE 2000                                4 114    55 179    8 364    154 096
CASH OPERATING
COSTS ( ($'000)
SEPT 2000                                3 806    41 783    5 824    131 166
JUNE 2000                                3 556    42 546    6 482    127 662
CASH OPERATING
PROFIT ($'000)
SEPT 2000                                  144    11 091    2 171     20 483
JUNE 2000                                  558    12 633    1 882     26 434
FINANCIAL TOTAL OPERATIONS (US$/IMPERIAL) (UNAUDITED)
                                             QUARTER ENDED    QUARTER ENDED
                                         30 SEPTEMBER 2000     30 JUNE 2000
ORE MILLED - T' 000                                  4 744            4 677
GOLD PRODUCED - OZ                                 534 956          544 986
GOLD PRICE RECEIVED - $ / OZ                           283              283
CASH OPERATING COSTS - $ / OZ                          245              234
                                                     $'000            $'000
GOLD SALES                                         151 649          154 096
CASH OPERATING COSTS                               131 166          127 662
CASH OPERATING PROFIT                               20 483           26 434
AMORTISATION                                       (6 405)          (6 163)
REHABILITATION PROVISION                                41              514
EMPLOYMENT TERMINATION COSTS                         (689)                -
OTHER INCOME - NET                                     524            2 004
CORPORATE EXPENDITURE                                (595)            (557)
EXPLORATION AND NEW BUSINESS                       (1 039)          (1 047)
PROFIT BEFORE TAXATION                              12 320           21 185
SOUTH AFRICAN NORMAL TAXATION
- CURRENT TAX                                      (1 127)              571
- DEFERRED TAX                                         341          (5 545)
NET EARNINGS AFTER TAX                              11 534           16 211
* EARNINGS PER SHARE - CENTS
- CASH OPERATING EARNINGS                               21               27
- NET EARNINGS                                          12               17
DIVIDENDS PER SHARE - (CENTS)                             -              10
PREPARED IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS.
CURRENCY CONVERSION RATES: US$ 1 = 6.96 (JUNE 2000: R6.87).
* CALCULATED ON 99,6 MILLION ISSUED SHARES (JUNE 2000: 97.3)
ABRIDGED BALANCE SHEET
(US$) (UNAUDITED)
                                                   AT               AT
                                    30 SEPTEMBER 2000     30 JUNE 2000
                                              US$'000          US$'000
EMPLOYMENT OF CAPITAL
MINING ASSETS AFTER
AMORTISATION                                  549 316          558 706
INVESTMENTS                                    49 455           48 189
LOANS TO SHARE TRUSTS                           1 817            2 192
NET CURRENT LIABILITIES                      (10 668)         (30 776)
(EXCLUDING CASH)
SHORT-TERM INVESTMENTS
- WESTERN AREAS                                11 011           12 277
CASH                                           64 967           77 941
                                              665 898          668 529
CAPITAL EMPLOYED
SHAREHOLDERS' EQUITY                          434 302          424 313
LOANS                                          91 118           98 708
LONG-TERM PROVISIONS                           54 684           56 234
UNREALISED HEDGING LOSS                        38 345           40 174
DEFERRED TAX                                   47 449           49 100
                                              665 898          668 529
ISSUED SHARE CAPITAL: 99.6 MILLION ORDINARY SHARES OF 50 CENTS EACH. (JUNE
2000: 97.3 MILLION SHARES).
BALANCE SHEET CONVERTED AT A CONVENIENT CONVERSION RATE OF US$ 1 = R6.96 (JUNE
2000: 6.78).
THE DECREASE IN THE WESTERN AREAS SHORT-TERM INVESTMENT IS DUE TO A MARK TO
MARKET ADJUSTMENT OF R6.5 MILLION, WHICH IS REFLECTED AGAINST OTHER RESERVES.
DEVELOPMENT RESULTS - (METRIC)
                                        CHANNEL      CHANNEL              AU
                             SAMPLED      WIDTH        VALUE         CONTENT
                              METERS       (CM)        (G/T)         (CMG/T)
QUARTER ENDING SEPTEMBER 2000
FREE STATE
BASAL REEF                     1 362        98        10.84            1 062
LEADER REEF                    1 374       157         6.62            1 040
"A" REEF                         236        74         6.55              485
MIDDLE REEF                       84       192         9.33            1 792
"B" REEF                          48       127        10.66            1 354
EVANDER
KIMBERLEY REEF                 2 459        64        14.92              955
RANDFONTEIN
VCR REEF                         429       168          9.3            1,565
MB REEF                          291       226          6.9            1,558
MI 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                           2,134        86         16.0            1,376
E9EC REEF                        177       112          3.3              364
E8 REEF                           46        73          5.4              392
KIMBERLEY REEF                   820       249          0.1               14
SOUTH REEF                        -          -            -                -
DEVELOPMENT RESULTS - (IMPERIAL)
                                                    CHANNEL          CHANNEL
                                   SAMPLED            WIDTH            VALUE
                                      FEET         (INCHES)           (OZ/T)
QUARTER ENDING SEPTEMBER 2000
FREE STATE
BASAL REEF                           4 469               39            0.313
LEADER REEF                          4 508               62            0.193
"A" REEF                               774               29            0.192
MIDDLE REEF                            276               76            0.271
"B" REEF                               157               50            0.311
EVANDER
KIMBERLEY REEF                       8 068            25.20            0.435
RANDFONTEIN
VCR REEF                             1,407               66              5.5
MB REEF                                955               89              3.8
MI REEF                                217               74              7.5
MA REEF                                315               98              5.9
ED REEF                                640               94             16.0
EC REEF                              1,102               89              3.3
UE1A                                 7,001               34              5.4
E9EC REEF                              581               44              0.1
E8 REEF                                151               29              0.0
KIMBERLEY REEF                       2,690               98              7.2
SOUTH REEF                               -                -                -
THIS REPORT WAS APPROVED BY THE BOARD OF DIRECTORS AND IS SIGNED ON ITS BEHALF
BY:
Z B SWANEPOEL         F ABBOTT
CHIEF EXECUTIVE       FINANCIAL DIRECTOR
16 OCTOBER 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
TELEPHONE: +27 (11) 412-1450
TELEFAX:   +27 (11) 692-3879
E-MAIL: CLEONARDI@HARMONY.CO.ZA
SHARE TRANSFER SECRETARIES
ULTRA REGISTRARS (PTY) LTD
CONTACT: POLLY POLLARD
TELEPHONE: +27 (11) 370 5775
TELEFAX: +27 (11) 370 5780
E-MAIL: ULTRA@REGISTRARS.CO.ZA
11 DIAGONAL STREET
JOHANNESBURG 2001
(PO BOX 4844, JOHANNESBURG, 2000)
UNITED STATES DEPOSITARY
AMERICAN DEPOSITARY RECEIPTS,
THE BANK OF NEW YORK
CONTACT: MELISSA ATHENEOS
TELEPHONE: +1(21) 815 5133
TELEFAX: +1(212) 571 3050
E-MAIL: MATHENEOS@BANKOFNY.COM
SHAREHOLDER RELATIONS DEPARTMENT
101 BARCLEY STREET, NEW YORK, NY10286
UNITED STATES OF AMERICA
UNITED KINGDOM REGISTRARS
CAPITA IRG PLC
CONTACT(S): MELVIN LEIGH/TERESA HODGIN
TELEPHONE: +44(208) 639 1001/+44(208) 639 1139
TELEFAX: +44(208) 478 2876
E-MAIL: MLEIGH@CAPITA-IRG.COM/THODGIN@CAPITA-IRG.COM
BOURNE HOUSE 390-398
HIGH ROAD, ILFORD
ESSEX IG1 NQ, UNITED KINGDOM
NORTH AMERICAN INVESTOR AND SHAREHOLDER ENQUIRIES
ROTH INVESTOR RELATIONS, INC.
CONTACT: MICHELLE B. ROTH (PRESIDENT)
TELEPHONE: +1 (732) 792-2200
TELEFAX: +1 (732) 792-2211
E-MAIL: MICHELLEROTH@ROTHIR.COM
215 GORDONS CORNER ROAD, SUITE 2A, MANALAPAN
NEW JERSEY 07726
UNITED STATES OF AMERICA
DIRECTORS
A R FLEMING* (CHAIRMAN), ZBSWANEPOEL (CHIEF EXECUTIVE), FABBOTT, DR. N V
ARMSTRONG, RALATKINSON, F DIPPENAAR, DR. A M EDWARDS*, NJFRONEMAN, TSA
GROBICKI, MFPLEMING*, LORD RENWICK OF CLIFTON KCMG*#,  DR. G S SIBIYA*,
FRSULLIVAN
*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
TRADING SYMBOLS
JOHANNESBURG STOCK EXCHANGE   :  HAR
NASDAQ                      : HGMCY
LONDON STOCK EXCHANGE         :  HRM
PARIS BOURSE                 :  HG
BRUSSELS STOCK EXCHANGE       :  HMY
TO VIEW OUR 2000 ANNUAL REPORT PLEASE VISIT OUR WEBSITE AT
HTTP://WWW.HARMONY.CO.ZA
TO RECEIVE A HARD COPY, PLEASE CALL
CHRISTINE LEONARDI ON
+27 11 412-1450
OR SEND AN E-MAIL TO CLEONARDI@HARMONY.CO.ZA
SATISFACTORY RESULTS FROM HARMONY DESPITE LOWER GRADES
JOHANNESBURG, 16 OCTOBER 2000 - GOLD PRODUCER HARMONY TODAY ANNOUNCED SOFTER
OPERATIONAL RESULTS FOR THE SEPTEMBER QUARTER, LARGELY AS A RESULT OF LOWER
GRADES AT ITS FREE STATE OPERATIONS.  THE COMPANY REPORTED A CASH OPERATING
PROFIT OF R142.6 MILLION, WHICH WAS R39 MILLION LOWER THAT THAT OF THE PREVIOUS
QUARTER.
CHIEF EXECUTIVE BERNARD SWANEPOEL SAID THE AVERAGE 8.5% ANNUAL INCREASE IN
WAGES RESULTED IN A R32 MILLION OR 4% INCREASE IN WORKING COSTS ON A QUARTER TO
QUARTER BASIS.  "IN LINE WITH OUR PAST PERFORMANCE, WE EXPECT THE HIGHER
WORKING COST TO DECREASE THROUGH PRODUCTIVITY AND EFFICIENCY IMPROVEMENTS AT
OPERATIONAL LEVEL," HE ADDED.  THE INCREASE IN WORKING COST WAS NEGATED ON A
COST PER TON BASIS AS THE OPERATIONS REPORTED UNDERGROUND COSTS OF R260 PER TON
FOR BOTH QUARTERS. LOWER RECOVERY GRADES HOWEVER RESULTED IN COST PER KILOGRAM
INCREASING BY R3 131/KG TO R54 873/KG. HE SAID THAT THE WORKING COST WOULD
RETURN TO A LEVEL CLOSER TO R50 000/KG BY THE END OF THE YEAR.
SWANEPOEL WAS, HOWEVER, CONFIDENT THAT THE GRADE PROBLEMS THE COMPANY
EXPERIENCED AT MAINLY THE FREE STATE OPERATIONS WOULD BE SHORT LIVED.  ALTHOUGH
THE COMPANY REPORTED A GRADE PROBLEM AT THESE OPERATIONS DURING THE PREVIOUS
QUARTER, THE NEGATIVE GRADE PERFORMANCE CONTINUED THROUGH TO THE CURRENT
QUARTER UNDER REVIEW.
"THE SLIGHTLY LOWER GRADES AT EVANDER AND RANDFONTEIN ARE IN LINE WITH
EXPECTATIONS.  WE EXPECT TO REPORT AN OVERALL IMPROVEMENT IN GRADE AND TONNAGE
DURING THE NEXT QUARTER AND THE COMPANY SHOULD IN FUTURE PRODUCE AT AN AVERAGE
GRADE OF 5 G/T.  THE MAKE UP OF THE GRADE WILL DIFFER IN FUTURE IN THAT KALGOLD
AND THE FREE STATE OPERATIONS WILL PRODUCE AT SUBSTANTIALLY HIGHER GRADES,"
SWANEPOEL COMMENTED.
SWANEPOEL SAID THAT HARMONY'S GEARING TO THE GOLD PRICE, AS WELL AS RECOVERED
GRADES WERE CLEAR FROM THEIR SEPTEMBER RESULTS. "IF WE COULD HAVE ACHIEVED A
0.3G/T HIGHER GRADE DURING THE QUARTER, WE WOULD HAVE PRODUCED AN ADDITIONAL
959KG OF GOLD, THEREBY POTENTIALLY INCREASING THE COMPANY'S CASH OPERATING
PROFIT BY SOME R65 MILLION," HE ADDED.
THE EVANDER OPERATIONS EXPERIENCED AN IMPROVED QUARTER WITH CASH OPERATING
PROFITS OF R39.8 MILLION, 8% HIGHER THAN THE R36.9 MILLION REPORTED FOR THE
JUNE 2000 QUARTER. TONNAGE INCREASED BY 11%, MAINLY DUE TO THE BUILD UP OF THE
NO.2 AND 5 SHAFTS, WHILST AN EVALUATION TO REOPEN NO.3 SHAFT WAS UNDERWAY.  ON
A COST/TON BASIS COSTS DECREASED BY 1.3% FROM R301/TON TO R297/TON.
DEVELOPMENT METRES INCREASED BY A STAGGERING 66% TO 7 594 METRES FOR THE
CURRENT QUARTER COMPARED WITH 4 581 METRES IN DECEMBER 1998.  THE INCREMENTAL
EFFECT OF THIS ADDITIONAL DEVELOPMENT ON UNIT COST (R25/T) WAS INCLUDED IN THE
R297/T UNDERGROUND COST.  "IN LINE WITH THE "HARMONY WAY", OUR FOCUS AT EVANDER
REMAINS ON INCREASING OPERATIONAL FLEXIBILITY, SWANEPOEL SAID.
RANDFONTEIN CONTINUES TO LIVE UP TO THE COMPANY'S EXPECTATIONS WITH CASH COST
PER OUNCE DECREASING FROM US$218/OZ TO US$211/OZ.  THESE OPERATIONS REPORTED A
PROFIT OF R92.3 MILLION, WHICH WAS DOWN ONLY R7.4 MILLION FROM THE R99.7
MILLION REPORTED PREVIOUSLY.
THE RESULTS OF NO. 4 SHAFT CONTINUE TO IMPACT NEGATIVELY ON THESE OPERATIONS.
ALTHOUGH IMPROVING ITS PERFORMANCE TO A LOSS OF R9.8 MILLION DURING THE
PREVIOUS REPORTING PERIOD, THE SHAFT AGAIN EXPERIENCED DISAPPOINTING VARIANCES
IN TONNAGE AND GRADE, WHICH RESULTED IN THE LOSS DETERIORATING TO R17.5 MILLION
FOR THE CURRENT QUARTER. THE COMPANY MAINTAINS THAT THE FUTURE OF THESE
OPERATIONS REMAIN AT RISK, UNLESS PROFITABILITY COULD BE ASSURED. A FINAL
DECISION REGARDING THE SHAFT'S FUTURE WILL BE MADE BY DECEMBER 2000.
CASH OPERATING PROFITS AT HARMONY'S KALGOLD OPERATION DECREASED FROM R3.8
MILLION TO R1.0 MILLION MAINLY AS A RESULT OF LOWER TONNAGE AND GRADES.
TONNAGE WAS AFFECTED BY THE DISCONTINUATION OF THE HEAP LEACH OPERATIONS AS THE
FINANCIAL RETURN FROM THE A-ZONE OXIDISED ORE WERE INSUFFICIENT.  THIS WILL
RESULT IN AN INCREASE THE RECOVERY GRADE WHICH WOULD IMPACT FAVOURABLY ON THE
PROFITABILITY OF THIS OPERATION IN THE FORTHCOMING QUARTER.
THE BISSETT OPERATIONS EXPERIENCED AN IMPROVED QUARTER AND RETURNED TO
PROFITABILITY DESPITE AN INCIDENT IN THE SHAFT AND A MAJOR REGIONAL POWER
FAILURE WHICH IMPACTED NEGATIVELY ON THE TONNES MILLED DURING THE QUARTER.
SWANEPOEL SAID THEY BELIEVED THAT THE OPERATIONAL PROBLEMS EXPERIENCED AT THE
OPERATIONS DURING THE MOST RECENT QUARTERS HAD BEEN ADDRESSED AND THAT THE
COMPANY'S SHAREHOLDERS COULD EXPECT A BETTER OVERALL PERFORMANCE FROM THE
COMPANY.  ON AN ANNUALISED BASIS THE COMPANY WAS STILL ON TRACK TO PRODUCE 2.2
MILLION OUNCES.  "OUR GROWTH ASPIRATIONS REMAIN AS STRONG AS EVER.  WE BELIEVE
THAT THE LOCAL AND INTERNATIONAL CONSOLIDATION OF THE INDUSTRY WILL CONTINUE TO
PRESENT OPPORTUNITIES TO OUR COMPANY," HE ADDED.
ENDS
ISSUED BY HARMONY GOLD MINING COMPANY LIMITED.  CONTACT:  CHRISTINE LEONARDI;
PHONE: +2711 412 1450; FAX: +2711 692 3879; E-MAIL: CLEONARDI@HARMONY.CO.ZA;
WEBSITE: WWW.HARMONY.CO.ZA



                                        
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