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HARMONY GOLD MINING COMPANY LIMITED - RESULTS

Release Date: 18/04/2001 13:03:21      Code(s): HAR HARO
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
key indicators
                                 31 March 2001        December 2000
Gold produced
- kg                             15 345              16 199
- oz                             493 351              520 809
Cash costs
- R/kg                           58 927                55 578
- $/oz                           234                   227
financial
                                31 March 2001       December 2000
Cash operating profit
- Rand                          141 million         185 million
- US$                           18 million           24 million
Earnings
- Rand                          71 million           110 million
- US$                           9 million            14 million
Earnings per share
- SAcents per share             68                   107
- UScents per share             9                    14
"We, as an industry,  are still guilty of over-supplying the market, producing
gold at a total cost above spot price. This value destruction needs to stop
before we can appeal to rational investors as an investment alternative."
Chief executive's review
Overview
Safety Report
I must express my sincere condolences to the family, friends and colleagues of
the three employees we lost as a result of fatal accidents at our operations
during the reporting period.
I would, however, like to extend our congratulations to our employees for their
continued efforts to improve the safety performance of our company. The Evander
8 Shaft team has passed the 750,000 fatality free shift milestone proving that
good safety is the foundation for excellent production results. They will be
awarded a certificate of excellence by the Mine Health and Safety Council in
recognition of their efforts. The team at Saaiplaas Metallurgical Plant
achieved 1 000 000 reportable free hours. It took them two years and twelve
days.
Our commitment to the eradication of risk from our operations and the creation
of a healthy and safe working environment remains our highest priority.
Strategic Overview
Before I discuss the company's progress in terms of our growth strategy, I need
to give you my impressions on the global gold industry following the Australian
Gold Conference held in Perth earlier this month. The time has probably come
for gold producers to be transparent to their shareholders in respect of the
true outlook for production and earnings growth at the current gold prices.
Whilst all regional trends are indicating a decline in global gold production,
companies still all tend to promise growth in production. The gold industry
needs to own up and reflect its true status, i.e. an industry which is heavily
indebted, mining unprofitable ounces when measured on a total cost per ounce
basis and not delivering real returns for shareholders. The "great shakeout"
will come if the gold price continues at these levels for the next twelve
months.
Whilst significant progress had been made with our latest acquisitions,
Elandsrand and Deelkraal (Elandskraal) in South Africa and New Hampton
Goldfields Limited in Australia, the company also announced the purchase of a
large block (9,6%) of Harmony shares by a Black empowerment group in South
Africa in return for a cash investment of R400 million.
With this transaction Harmony acts proactive rather than reactive with regards
to the changing empowerment environment in South Africa, potentially giving the
company a strategic competitive advantage. It will result in the broadening of
our shareholder base, with Komanani (the empowerment group) being the single
largest shareholder in Harmony, without affecting the company's free float.
Progress in Elandsrand and Deelkraal
During the quarter the company announced that it had received commitments from
a group of banks to provide the necessary financing for the acquisition of the
Elandsrand and Deelkraal mines and the refinancing of existing indebtedness.
This was achieved despite the current low gold price, as well as the company's
policy not to sell forward production from acquired operations.
As part of the process of securing these commitments, the company has completed
price protection arrangements for an initial period of twelve months through
the purchase of one million ounces of put options at a strike price of
approximately R64 000 per kg. This arrangement will protect the company from
potential adverse movements in the gold price, and ensure full participation in
any increase in the gold price.
As at 9 April 2001, all conditions precedent to the transaction have been met
and the acquisition has been completed.
Elandskraal will be fully incorporated in our results from next quarter.
Operating results from 1 February 2001 for the two months which amounted to a
loss of R10,9 million, will be treated as pre-acquisition costs and
capitalised. We will provide more detail on these operations at our quarterly
presentation scheduled for June 2001 reporting period.
New Hampton
On 22 March 2001 the company announced that Normandy Mining Limited accepted
Harmony's offer for the remaining 13,2% in New Hampton Goldfields Limited. In
addition the entire New Hampton board recommended that shareholders accept the
company's unconditional offer of A$27,5 cents per share. This was an increase
on the company's previous offer of A$26,5 cents per share.
As at 12 April 2001 Harmony is entitled to 92,6% of the shares in New Hampton
and the offer was scheduled to close on 17 April 2001.
Following our extensive analysis of the New Hampton mining operations and in
line with our strategy to mine profitable reserves only, it is anticipated that
production will be cut back by 70 000 ozs to 200 000 ozs per annum. This level
of production will be reviewed once the sustainability of the underground
operations at Big Bell have been determined.
Empowerment group takes major stake in your company
On 4 April 2001 it was announced that Komanani Mining (Pty) Limited, a South
African empowerment group, acquired a 9,6% stake in the company at a cost of
R400 million.
Komanani will subscribe to 10,96 million new Harmony ordinary shares at
an issue price of R36,00 per share. The price represents a discount of 6% to
the 30-day value weighted average traded price and a 3,5% discount to the
closing market price of Harmony shares on 3 April 2001. The shares are issued
subject to a restrictive sale clause, preventing the sale of these shares for a
period of 18 months.
In addition, Komanani will subscribe for 10,96 million redeemable convertible
preference shares at a par value of 50 cents per share. These shares will be
convertible within five years and upon conversion an additional top up payment
of R41,50 per preference share will be payable.
The cash flow from the R400 million investment will lower the company's debt
levels. The interest savings will offset the dilution of earnings as a result
of the new shares in issue. Conditions precedent for the transaction is
approval by Harmony shareholders.
Platinum Exploration Activities
Evaluation work on the Stella PGM project continued during the quarter. A total
of 355 rotary air blast (13 500m), 230 reverse circulation percussion (12 900m)
and 11 diamond core (1 760m) boreholes have been drilled to date. An additional
30 boreholes (12 500m) will be completed during the next month.
The following in situ inferred mineral resource is estimated from the borehole
intersections:
                            Tonnage       Grade g/t    Kgs
                            000's         Pt+Pd+Au     000's    Ounces
TOTAL                       53 000        1,50         79 450   2 554 370
There is potential to increase resources below 150m and from strike extensions
to the known mineralized zones. Several targets for new discoveries have been
identified from geochemical anomalies.
Preliminary metallurgical testwork using standard mill-float procedures
indicates PGM recoveries for fresh ores at 60% to 65% with concentrate grades
of about 150 to 200 g/t Pt+Pd+Au. Near surface weathered material returned
recoveries below 50%. Much additional testwork is required to determine optimal
metal recoveries and concentrate grades.
Harmony is considering various options to turn to account the Stella PGM asset.
To date 25 parties have expressed an interest in the project. Detailed
technical presentations and site visits will be undertaken during the next
quarter
Operational Review
The company reported a cash operating profit of R141,1 million. This was R43,7
million or 23,6% less than the R184,8 million reported during the previous
quarter. Net profit of R70,6 million was R39 million or 35,6% lower quarter on
quarter. The significant movement in net profit can largely be attributed to
the loss on financial instruments recognised for the current quarter of R4,2
million compared to the gain on financial instruments of R43,9 million
recognised in the previous quarter.
Cash operating profit vs US$ Gold Price
During the past four quarters we have managed to generate cash operating
profits between R140,0 million and R184,0 million per quarter. These levels of
operating profit are significantly higher than the approximately R90,0 million
on average per quarter achieved during the preceeding four quarters.
The decrease in cash operating profit quarter on quarter, can mainly be
attributed to the decrease in underground tonnage at Randfontein, along with
weaker operational performances from the opencast operations at Randfontein and
Kalgold. During the past few quarters we have informed our shareholders that
the surface reserves at Randfontein were of a finite nature and the profit
levels should decrease as the reserves are depleted. Although we are evaluating
the acquisition of additional surface reserves in this area, should this not be
successful, the surface operations will be scaled down until closure at the end
of June 2001.
Metallurgical throughput and gold recovery problems at Kalgold impacted on cash
operating profits. These problems have been adequately resolved.
The impact of these under performances is reflected in the US$ per ounce costs
which were higher at US$234/oz compared to the US$227/oz reported for the
previous quarter.
Our focus in the next quarter will be to extensively analyse all our production
units and restructure them with the intention of optimising profitability.
"The Harmony Way" has been the foundation on which our growth strategy has been
built to date, and we do believe that it will continue to deliver results at
our current operations, as well as Elandskraal and New Hampton.
Production units that have come to the end of their economical life will be
closed and others in the process of scaling down will be restructured for
profitability during that phase. We will continue to focus on delivering value
to our shareholders.
Free State operations
Despite the impact of a shortened quarter, the Free State operations continued
to make small improvements with cash operating profits increasing from R15,1
million to R17,2 million. Tonnage increased marginally from 1,316 million
tonnes to 1,322 million tonnes. The grade increased to 4,12 g/t for the quarter
which resulted in a small increase in gold recovery to 5 447 kgs compared to
the 5 363 kgs reported previously.
Underground working costs increased by 2,7% from R343,8 million to R353,1
million. Measured on a cost/tonne basis, costs increased from R261 per tonne to
R267 per tonne. At US$258/oz costs decreased compared to the December 2000
quarter.
The Free State operations have delivered improved operational results over the
past two quarters. Various restructuring alternatives are being considered at
this time. Due to the change in scale of operations at Masimong 5, Masimong 4
will be downscaled to a service shaft. In addition the Brand shafts as a stand
alone unit are being evaluated as a junior mining operation with empowerment
participation.
Evander  operations
The Evander operations continued to deliver strong performances with cash
operating profits increasing to R78,2 million, up 1% from the R77,4 million
reported for the previous quarter. The benefits from investing in the increased
development rates over the last 24 months are evident from the increase in
underground tonnage which improved by 6% or 34 000 tonnes for the quarter.
We have previously stated that Evander should, on average, consistently deliver
cash operating profits of R60,0 million per quarter. From the table below the
improved performance of the past two quarters is clearly evident:
                                        U/G                    Total Cash
                         U/G Tonnes     Recovery    U/G        Operating
Quarter Ending           Milled         Grade       Kgs Sold   Profit
March 2001               599 000        6,22        3 723      78,2 m
December 2000            565 000        6,56        3 707      77,4 m
September 2000           539 000        5,86        3 156      39,8 m
June 2000                485 000        6,09        2 955      36,9 m
March 2000               490 000        5,93        2 907      34,2 m
Compared to March 2000, underground tonnage has increased by a remarkable 109
000 tonnes or 22,2%. Over the same period the recovery grade improved from 5,93
g/t to 6,22 g/t. Gold recovery has subsequently increased by 816 kgs or 28,1%
over the same period.
Underground tonnage increased from 565 000 tonnes to 599 000 tonnes on a
quarter to quarter basis. At a slightly lower recovery grade of 6,22 g/t, gold
recovery was similar at 3 723 kgs when compared to the 3 707 kgs for the
December 2000 quarter. As predicted, the recovery grade returned to the average
recovery grade of the orebody of 6,2 g/t.
Recoupment of Evander Investment
Working costs increased by R1 051/kg or 2,3% from R46 177/kg to R47 228/kg,
mainly due to the decrease in recovery grade. On a cost/tonne basis the costs
have decreased by 3,0% from R303/tonne to R294/tonne. In dollar cash costs per
ounce terms the costs remained constant at US$189/oz.
During the June 2001 quarter, all mining operations at No. 9 Shaft (Leslie
Mine), except for the extraction of the shaft pillar, will cease as it has come
to the end of its economical life.
The Leslie Plant, which has over the past two years treated tonnage from the
waste rock dumps, will also be closed as these surface reserves have been
depleted.
Although the closure of this shaft will result in a loss of 20 000 tonnes per
month to the Evander operations, it is expected that the overall profitability
will not be affected.
Randfontein  operations
The Randfontein operations were most affected by the working arrangements
during the Christmas break and a total of eleven milling shifts were lost in
the quarter.
Recoupment of Randfontein Investment
Total cash operating profits decreased from R90,7 million to R55,4 million.
This was mainly due to the decrease in tonnage from underground and the
decrease in contribution from the surface operations.
Cash operating profit             Mar'01        Dec'00     Variance
                                                           (R million)
Underground                       54,8          78,8       (-24,0)
Surface                           0,6           11,9       (-11,3)
Underground tonnage decreased by 8,9% from 1,093 million tonnes to 996 000
tonnes. At a lower recovery grade of 4,99 g/t compared to the 5,02 g/t of the
previous quarter, gold recovery was 520 kgs or 9,5% less than the 5 490 kgs
reported previously.
The impact of the lower tonnage was reflected in the Rand per tonne cost which
increased from R264/tonne to R284/tonne. In Rand/kilogram terms, working costs
increased by R4 356/kg or 8,3% from R52 621/kg to R56 977/kg.
The variability of the No. 4 Shaft orebody has resulted in the shaft reporting
a loss of R26,1 million for the quarter. As we are of the opinion that reserves
should not be mined at a loss we have, in consultation with the affected
parties, decided to close the shaft. Only 1 500 employees will be affected as
most of our mine employees will be transferred to other shafts, displacing
contractors.
As reported previously, the current Lindum surface operations have only four
months of ore reserves left at mining levels of approximately 100 000 tonnes
per month. The reduction in quantity and quality of surface reserves mined
during the past quarter is reflected in the results. Tonnage decreased by 129
000 tonnes or 18,3% from 704 000 tonnes to 575 000 tonnes. At a reduced
recovery grade of 1,0 g/t compared to the 1,2 g/t of the December 2000 quarter,
gold recovery was lower at 575 kgs compared to 818 kgs for the previous
quarter. Due to the marginality of surface operations, cash operating profit
decreased from R11,9 million to R0,6 million for the current quarter. The
reduction in surface tonnage has also resulted in the closure of the Lindum
Plant.
The company is currently evaluating the acquisition of additional surface
reserves to replace the depletion of its available reserves.
Kalgold operations
Feed grade from the pit was lower than plan mainly due to mining constraints.
Metallurgical throughput and recovery problems further impacted negatively on
the cash operating profits from these operations.
The Kalgold operation returned a cash operating loss of R3,4 million compared
to the profit of R6,5 million for the December 2000 quarter.
Tonnage decreased by 19 000 tonnes or 8,1% from 234 000 tonnes to 215 000
tonnes. At the lower recovery grade of 1,28 g/t compared to the 1,82 g/t
reported for the previous period, gold recovery was 149 kgs lower at 276 kgs.
Working costs increased from R22 million to R22,2 million for the current
quarter. The cost per kilogram was significantly higher due to the decreased
grade.
The problems experienced have been adequately resolved.
Bissett
The Bissett operations were severely affected by the freezing up of the
ventilation shaft which resulted in sharply reduced production in January.
Although this production shortfall was made up in February and March, there was
a negative impact on the overall recovery grade.
Underground tonnage of 64 000 tonnes was 2 000 tonnes or 3,2% higher than the
62 000 tonnes reported previously. At the lower recovery grade of 4,61 g/t,
gold recovered was 34 kgs lower at 295 kgs. This resulted in a cash operating
loss of R6,3 million compared to the R5,0 million loss reported for the
December 2000 quarter.
We are currently evaluating the feasibility of placing Bissett on a care and
maintenance programme which will be revisited should the gold price recover to
levels above US$300/oz on a sustainable basis.
Capital expenditure
                                  March                         June
                                  Quarter                       Quarter
Operations                        Actuals                       Forecast
Free State                        28                            19
Evander                           17                            20
Randfontein                       11                            14
Bissett                           4                             2
Kalgold                           -                             -
Elandskraal                       -                            30
Total                             60                           85
Operating and financial
results (rand/metric)
        Elands- Free                                    Rand-   Rand-
        kraal*  State Evander Evander Bissett Kalgold  fontein fontein
        Total   Total U/g     Surface Total   Opencast U/g     Surface  Total
Ore
milled
- t'000
Mar-01  463     1 322 599     52      64      215      996     575     3 823
Dec-00  -       1 316 565     84      62      234      1 093   704     4 058
Gold
Produced
- kg
Mar-01  2 492   5 447 3 723   59      295     276      4 970   575     15 345
Dec-00  -       5 363 3 707   67      329     425      5 490   818     16 199
Yield
- g/t
Mar-01  5.38    4.12  6.22    1.13    4.61    1.28     4.99    1.00    4.01
Dec-00  -       4.08  6.56    0.80    5.31    1.82     5.02    1.16    3.99
Cash
Operating
Mar-01  70 008  64 822 47 228 51 644  96 495  80 460   56 977  66 807  58 927
Costs
- R/kg
Dec-00   -      64 109 46 177 59 866  83 973  51 649   52 621  52 368  55 578
Cash
Operating
Mar-01   377    267    294    59      445     103      284     67      237
Costs
- R/tonne
Dec-00   -      261    303    48      446     94       264     61     222
Working
Revenue
Mar-01  163 575 370 295 253 080 3 971 22 212  18 770   337 979 39 0591 045 366
(R'000)
Dec-00  -       358 953 248 078 4 468  22 655 28 490   367 707 54 7161 085 067
Cash
Operating
Mar-01  174 461 353 086 175 830 3 047  28 466 22 207   283 178  38 414  904 228
Costs
(R'000)
Dec-00  -      343 815  171 179 4 011   27 627 21 951  288 891  42 837  900 311
Cash
Operating
Mar-01  (10 886) 17     209 77 250  924 (6 254)  (3 437) 54 801 645  141 138
Profit
(R'000)
Dec-00  -        15 138 76 899  457 (4 972) 6 539 78 816  11 879 184 756
* Elandskraal: Excluded from results. Included in this table for illustration
purposes - 2 months under Harmony Management.
Financial results
total operations
(rand/metric) (unaudited)
                                   Quarter ended              Quarter ended
                                   31 March 2001              31 Dec 2000
Ore milled - t'000                 3 823                       4 058
Gold produced - kg                 15 345                      16 199
Gold price received - R / kg       68 124                     66 984
Cash operating costs - R / kg     58 927                     55 578
                                  R'000                      R'000
Gold Sales                        1 045 366                   1 085 067
Cash operating costs              904 228                     900 311
Cash operating profit             141 138                     184 756
Amortisation                      (47 197)                   (45 353)
(Loss)/gain on financial
instruments                       (4 155)                     43 900
Rehabilitation provision reversal 450                         354
Employment termination costs      (449)                       (3 754)
Other income/(expenses) - net     8 952                      (3 211)
Corporate expenditure             (8 953)                     (8 233)
Exploration and new business      (8 831)                     (9 608)
Profit before taxation            80 955                      158 851
South African normal taxation
- Current tax                     (10 908)                    (23 147)
- Deferred tax                    549                         (26 149)
Net earnings after tax            70 596                      109 555
* Earnings per share - cents
- Cash operating earnings         135                         180
- Net earnings                    68                          107
Dividends per share - (cents)     -                           50
* Calculated on 104.3 million issued shares (December 2000: 102.8 million)
Elandskraal excluded in results
Abridged balance sheet (rand) (unaudited)
                                    At                        At
                                    31 March 2001             31 Dec 2000
                                    R'000                      R'000
Employment of Capital
Mining assets after
amortisation                        3 909 732                  3 878 791
Investments                         468 178                    455 071
Loans to share trusts               12 556                     47 664
Net current assets/(liabilities)    45 327                     (45 100)
(excluding cash)
Short-term investments
- Western Areas                     74 457                     86 537
Cash                                340 526                    326 883
                                    4 850 776                  4 749 846
Capital Employed
Shareholders' equity                3 266 670                  3 186 246
Loans                               610 621                    596 747
Long-term provisions                374 448                    375 229
Unrealised hedging loss             238 300                    238 005
Deferred tax                        360 737                    353 619
                                    4 850 776                 4 749 846
Issued share capital: 104.3 million ordinary shares of 50 cents each.
(December 2000: 102.8 million)
Elandskraal excluded in results
Operating and financial results US$/imperial
        Elands- Free                                     Rand-   Rand-
        kraal*  State Evander Evander  Bissett  Kalgold  fontein fontein
        Total   Total U/g     Surface  Total   Opencast  U/g     Surface  Total
Ore milled
- t'000
  Mar-01 511    1 458 661     57       71      237     1 098    63      4 216
  Dec-00 -      1 451 623     93       68      258     1 205    776     4 474
Gold
Produced
- oz
 Mar-01  80 119 175 124 119 697 1 897  9 484   8 874   159 788  18 487  493 351

 Dec-00  -  172 424 119 183     2 154  10 578  13 664  176 507  26 299  520 809
Yield
- oz/tonne
Mar-01   0.157  0.120  0.181    0.033   0.134  0.037    0.146   0.029   0.117

Dec-00    -     0.119  0.191    0.023   0.156  0.053    0.146   0.034  0.116
Cash
Operating
Mar-01    278   258    189      205     384    320      227     266    234
Costs
- $/oz
Dec-00    -     262    189      245     344    211      215     214    227
Cash
Operating
Mar-01    43.66 30.97   34.02   6.84    51.27  11.98    32.98   7.75   27.43
Costs
 - $/t
Dec-00    -     31.18   36.15   5.68    53.46  11.19    31.55   7.26   26.48
Working
Revenue
Mar-01    20 918 47 352 32 363  508    2 840  2 400   43 220  4 995 133 678
($'000)
Dec-00    -     47 231  32 642  588    2 981  3 749   48 383  7 199 142 773
Cash
Operating
Costs
Mar-01   22 310 45 152  22 485  390    3 640   2 840  36 212  4 912 115 631
($'000)
Dec-00   -      45 239  22 524  528    3 635   2 888  38 012  5 636 118 462
Cash
Operating
Profit
Mar-01  (1 392) 2 200   9 878   118    (800)   (440)  7 008   83   18 047
($'000)
Dec-00  -       1 992   10 118  60     (654)   861    10 371  1 563 24 311
* Elandskraal: Excluded from results. Included in this table for illustration
purposes - 2 months under Harmony management.
Financial results
total operations (US$/imperial) (unaudited)
                                             Quarter ended     Quarter ended
                                             31 March 2001  31 December 2000
Ore milled - t'000                                   4 216             4 474
Gold produced - oz                                 493 351           520 809
Gold price received - $ / oz                           271               274
Cash operating costs - $ / oz                          234               227
                                                   US$'000           US$'000
Gold Sales                                         133 678           142 773
Cash operating costs                               115 631           118 462
Cash operating profit                               18 047            24 311
Amortisation                                       (6 035)           (5 968)
(Loss)/gain on financial instruments                 (531)             5 776
Rehabilitation provision reversal                       58                47
Employment termination costs                          (57)             (494)
Other income/(expenses) - net                        1 145             (423)
Corporate expenditure                              (1 145)           (1 083)
Exploration and new business                       (1 130)           (1 264)
Profit before taxation                              10 352            20 902
South African normal taxation
- Current tax                                      (1 395)           (3 046)
- Deferred tax                                          70           (3 441)
Net earnings after tax                               9 027            14 415
* Earnings per share - cents
- Cash operating earnings                               17                24
- Net earnings                                           9                14
Dividends per share - (cents)                            -                 7
Prepared in accordance with International Accounting Standards.
Currency conversion rates: US$1 = R7.82 (December 2000: R7.60)
Calculated on 104.3 million issued shares (December 2000: 102.8 million)
Elandskraal excluded in results
Abridged balance sheet
(US$) (unaudited)
                                                        At                At
                                             31 March 2001  31 December 2000
                                                   US$'000           US$'000
Employment of Capital
Mining assets after amortisation                   499 966           510 367
Investments                                         59 869            59 878
Loans to share trusts                                1 606             6 272
Net current assets/(liabilities)                     5 796           (5 934)
(excluding cash)
Short-term investments
- Western Areas                                      9 521            11 386
Cash                                                43 545            43 011
                                                   620 303           624 980
Capital Employed
Shareholders' equity                               417 732           419 243
Loans                                               78 085            78 520
Long-term provisions                                47 883            49 372
Unrealised hedging loss                             30 473            31 316
Deferred tax                                        46 130            46 529
                                                   620 303           624 980
Issued share capital: 104.3 million ordinary shares of 50 cents each.
(December 2000: 102.8 million)
Balance sheet converted at convenient conversion rate of: US$ 1 = R7.82
(December 2000: R7.60)
Elandskraal excluded in results
Condensed statement
of changes in shareholders' equity
(Unaudited)                   At             At            At             At
                        31 March       31 March      31 March       31 March
                            2001           2000          2001           2000
                         R ' 000        R ' 000     US $' 000      US $' 000
Balance as at the
beginning of the
financial year         2 874 718      1 723 429       367 611        273 560
Currency translation
adjustment and other       6 877          2 280           879            362
Issue of share capital   192 936        893 874        24 672        141 885
Net earnings             192 139        181 982        24 570         28 886
Balance as at the
end of March           3 266 670      2 801 565       417 732        444 693
Development
results - (Metric)
                                                Channel    Channel
                           Reef      Sampled      Width      Value      Gold
                         Meters       Meters     (Cm's)      (g/t)   (Cmg/t)
Quarter ending
March 2001
RANDFONTEIN
VCR REEF                    395          315        127       11.9     1 514
MB REEF                     232          138        226        3.9       884
MI REEF                      54          111        259        3.3       858
MA REEF                      25           12        215        4.9     1 043
ED REEF                     200          216        216        4.1       894
EC REEF                     422          426        238        4.2       999
UE 1A                     1 731        1 612         99        9.1       900
E9EC REEF                   241          156        153        5.0       758
E8 REEF                      27           27         65       14.0       910
KIMBERLEY REEF              556          539        277        3.0       840
SOUTH REEF                    -            -          -          -         -
ALL REEFS                 3 883        3 552        165        5.8       949
FREE STATE
BASAL                     1 803        1 362        102        9.2       940
LEADER                    1 545        1 259        168        5.4       913
A REEF                      609          510        118        6.5       770
MIDDLE                      339          134         54       17.8       959
B REEF                      423            -          -          -         -
ALL REEFS                 4 718        3 265        128        7.1       904
EVANDER
KIMBERLEY REEF            2 593        2 299         62       12.9       798
Development
           results - (imperial)
                                         Channel       Channel
                 Reef       Sampled        Width         Value          Gold
                 Feet          Feet     (inches)        (oz/t)      (in.ozt)
Quarter ending
March 2001
RANDFONTEIN
VCR REEF        1 296         1 034           50         0.348            17
MB REEF           761           453           89         0.114            10
MI REEF           177           364          102         0.097            10
MA REEF            82            39           85         0.141            12
ED REEF           656           709           85         0.121            10
EC REEF         1 385         1 398           94         0.123            11
UE1A            5 679         5 289           39         0.265            10
E9EC REEF         791           512           60         0.144             9
E8 REEF            89            89           26         0.408            10
KIMBERLEY REEF  1 824         1 768          109         0.088            10
SOUTH REEF          -             -            -             -             -
ALL REEFS      12 740        11 654           65         0.168            11
FREE STATE
BASAL           5 914         4 469           40         0.269            11
LEADER          5 069         4 131           66         0.159            10
A REEF          1 997         1 673           46         0.190             9
MIDDLE          1 111           440           21         0.518            11
B REEF          1 388             -            -             -             -
ALL REEFS      15 479        10 713           50         0.206            10
EVANDER
KIMBERLEY REEF  8 508         7 543           24         0.375             9
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
17 April 2001
Investors'
information
Business address
Harmony Gold Mining Company Limited
Randfontein Office Park
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:
Corne Bobbert
Telephone: +27 (11) 412-1450
Telefax:   +27 (11) 692-3879
E-mail: cbobbert@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,
F Dippenaar, Dr. A M Edwards*, TSA Grobicki,
MFPleming*, Lord Renwick of Clifton KCMG* ,
Dr. G S Sibiya*,
*Non executive directors  British
Enquiries concerning this report can be directed to:
Theresa Lee
PO Box 2 Randfontein, 1760
Telephone: +27 (11) 411-2227
Facsimile: +27 (11) 692-3879
E-mail: tlee@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
Corne Bobbert on
+27 11 412-1450
or send an e-mail to
cbobbert@harmony.co.za



                                        
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