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Harmony Gold Mining Limited - Review for the quarter ended 30 September 2001

Release Date: 24/10/2001 12:34:57      Code(s): HAR
Harmony
Review for the quarter ended 30 September 2001
This review includes certain information that is based on management's
reasonable expectations and assumptions. These "forward-looking statements"
include, but are not limited to, statements regarding estimates, intentions
and beliefs, as well as anticipated future production, mine life, market
conditions and costs. While management has prepared this information using
the best of their experience and judgment, and in all good faith, there are
risks and uncertainties involved which could cause results to differ from
projections.
Cautionary Note to US Investors - The United States Securities and Exchange
Commission (the "SEC") permits mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. We use certain terms in this quarterly
review, such as "resources", that the SEC guidelines strictly prohibit us
from including in our filings with the SEC.
Key indicators
 Quarterly production of 616 000 ounces
 On track for annualised production of 2,5 million ounces
 Record cash operating profit of R212,1 million
 73% increase in e.p.s.from 37 cents to 64 cents
 Excellent all round operational performance
 Acquisition of stake in Bendigo Mining NL
 18% increase in R/kg gold price results in 25% increase in reserves (8
million ounces)
 Consolidation of Free State goldfields gaining momentum
Financial highlights
                         30 September                30 June
                                 2001                   2001
Cash operating
profit
- Rand                    212 million            191 million
- US$                      25 million             24 million
Earnings
- Rand                     93 million             40 million
- US$                      11 million              5 million
Earnings per share
- SA cents per share               64                     37
- US cents per share                8                      5
                         30 September                30 June
                                 2001                   2001
Gold produced
- kg                           19 161                 18 380
- oz                          616 038                590 927
Cash costs
- R/kg                         63 097                 59 350
- $/oz                            233                    230
"Over the past five years Harmony has consistently pursued a strategy of
growth through acquisitions. Through this process we have played a leading
role in the logical consolidation of the South African gold industry to the
benefit of all stakeholders. On the back of a record quarter and prospects
of improved results due to the depreciating Rand, we believe that we made a
competitive offer for AngloGold's assets which will set the stage to
consolidate the Free State goldfields."
BERNARD's review
Safety report
It is with regret that I have to report the loss of life, as a result of
mine accidents, of ten employees and one illegal miner for the 1st quarter.
I wish to offer my sincere condolences to the family, friends and colleagues
of these employees.
I would like to extend my thanks and offer my congratulations to the
management and employees of Harmony 4 and Merriespruit 3 shafts. They have
respectively attained 500,000 and 750,000 fatality free shifts thereby
qualifying for certificates of excellence in terms of the Mine Health and
Safety Council's Awards Scheme.
Although our safety performance is less than satisfactory we take heart from
the desire and commitment displayed by our managers and employees to improve
on current performance.
Our efforts to establish in the company a culture of health and safety
continue unabated. Health and safety responsibility and accountability is
being entrenched at the operational level.
In order to secure lasting change in this regard we are equipping our
managers and their teams with the necessary knowledge and skill to manage
risk effectively in the workplace.
Strategic overview
From an operational perspective the company experienced a good quarter and
reported an 11% increase in cash operating profit to R212,1 million.
Earnings per share however increased by 73% from 37 cents to 64 cents
quarter on quarter.
The company continued with its strategy of growth through acquisitions
during the quarter. In an industry which is undergoing change with a wave of
mergers and acquisitions, Harmony continues to identify acquisition
opportunities both locally and abroad, which will impact significantly on
the future production profile of the company.
Bendigo Mining NL
On 25 September 2001 the company invested A$50 million (R215 million) to
subscribe for 294 million shares, or 31,1% of Bendigo Mining NL. In
addition, Harmony has been granted 360 million options to acquire in Bendigo
at any time before 31 December 2003 at a price of A$0,30 per share. On
exercise of these options Harmony would own approximately 50,1% of the
diluted capital of the company.
Our cash investment will be used to continue development of a high grade,
mechanised underground mine with a potential life of 25 years. The potential
resource of the orebodies is estimated at 12 million ounces of gold. The
proposed mine will be developed in stages and is planned to reach design
capacity over a six year period. At a recovery grade of 10-12 g/t, the mine
would be producing more than 400 000 ounces of gold per annum at a cash cost
of approximately US$100 per ounce. Total cash costs, including capital, for
the project are estimated at approximately US$135 per ounce.
Harmony earlier in the year acquired New Hampton operations in Western
Australia which produce an estimated 220 000 ounces per annum.
Offer to purchase Free State assets
During the quarter the company reopened negotiations with AngloGold to
purchase all its Free State assets i.e. Bambanani, Tshepong, Matjhabeng,
Joel and its remaining mineral rights.
We have previously stated that the need for consolidation in the region is
strong and has the potential to unlock value through the logical
exploitation and optimisation of assets. Surface and underground synergies,
once realised, will impact on the long term sustainability of the region as
a gold producer. The impact on the socio-economic environment of the Free
State goldfields will be to the benefit of all stakeholders. The gold
industry, labour, surrounding communities and supporting industries all have
a role to play in this process which will ensure the long term viability and
economic importance of this region. The national and provincial governments
have repeatedly expressed their support for this initiative which will
assure the economic regeneration of the Free State goldfields.
Harmony has submitted a joint offer to AngloGold with ARM
(African Rainbow Minerals). The 50/50 Joint Venture is an ideal vehicle to
realise the benefits of a consolidated mining region. ARM established itself
as operator in the region some four years ago, following the purchase of
mature AngloGold operations at that time. Both companies have a solid
presence in and knowledge of the region and are well positioned to
successfully consolidate and exploit these assets.
Further consolidation of the Free State assets in the short term could
include other assets which will offer further synergies to the proposed
Joint Venture. The fragmented nature of the current operations are evident
from the accompanying plan.
Both companies have sufficient financial reserves to conclude the
transaction. Harmony successfully completed its capital raising programme at
the end of June 2001 which resulted in the company having sufficient cash
resources available to finance its portion of the offer. If successful, such
a transaction will enhance Harmony's earnings in both the short and the long
term.
Gearing to changes in our gold price environment
Over the last few years the South African Rand has consistently depreciated
against mainly the United States Dollar. This depreciation has allowed the
company to receive a higher R/kg gold price despite the decreasing US$ price
of gold over the same period.
Subsequent to events on the 11 September 2001 in New York, the gold price
has found support at levels between US$280/oz and US$290/oz. This, with the
subsequent depreciation of our local currency to levels of above R9,25 to
the Dollar, will result in the company receiving significantly increased
revenues during the forthcoming quarter. The company's gearing to these
changes are substantial and will impact significantly on cash operating
profits realised.
Gearing to gold price
Quarterly cash operating profit estimates
    Gold price     R/million     US$      Gearing       Gearing
          R/kg               million       in US$       in Rand
     74 200(i)         212,1    25,2           -              -
    84 000(ii)         364,5    39,4          56%           72%
(i) Exchange rate at R74 200 per kg - US$1,00 = R8,41
(ii) Exchange rate at R84 000 per kg - US$1,00 = R9,25
At a gold price of R84 000/kg the company would increase cash operating
profits by 72% from an average R212,1 million per quarter to R364,5 million
per quarter. Due to the depreciation of the South African currency the
gearing decreases to 56% when expressed in US$ terms.
Substantial gearing exists when applying the changes in gold price to the
company's reserve base. At the current gold price levels of R84 000/kg, the
reserves available for mining increase by 25% from 33 million ounces to 41
million ounces. These reserves are available for mining at no additional
capital expense to the operations and would also positively affect the
amortisation charges per quarter.
Kalplats project
Evaluation work on the Kalplats project near Stella continued at a cost of
R2.3m for the quarter. Pre-feasibility studies on priority deposits included
additional drilling (16 boreholes representing 2 210m) to confirm reef
geometry and to obtain representative samples for metallurgical testwork.
Orebody models are being reviewed to determine the continuity and tonnage
potential of a higher grade reef zone (q4.5 g/t Pt + Pd + Au over 2 to 4m
width) within certain of the mineralised units.
                        Reef Zones Identified                 Thickness
                    Pt       Pd         Au          TPM
Lower Grade Reef  0,61 g/t   0,59 g/t   0,01 g/t    1,21 g/t      8-14m
Middle Reef       0,48 g/t   0,93 g/t   0,02 g/t    1,43 g/t      5-10m
Main Reef         1,11 g/t   0,95 g/t   0,14 g/t    2,20 g/t     10-18m
High Grade Reef   2,40 g/t   1,81 g/t   0,32 g/t    4,60 g/t       2-5m
Pre-Reef          0,28 g/t   0,04 g/t   0,42 g/t    0,70 g/t       0-3m
Follow-up metallurgical testwork to optimise recoveries from different
grades and reef types is in progress and provisional results will be
available next quarter. Exploration drilling programmes were implemented in
the region to investigate new target areas which have the potential to add
to the existing 3,4 million ounce inferred mineral resource. It is worth
noting that this resource estimate is still only to a depth of 150m below
surface. A total of 130 overburden boreholes (1140m) was completed during
the quarter.
Inclusion in Philadelphia Gold and Silver Index (XAU)
As from 8 October 2001, the company had been included in the Philadelphia
Gold and Silver Index (XAU). This inclusion is significant as the company
received this recognition on the basis of its market capitalisation and
liquidity in the offshore trading of its shares. The main benefit from the
inclusion to the XAU is the increased visibility to institutions and fund
managers.
Quarterly operational review
The company reported improved operational results with R22,0 million or 11%
increase in cash operating profit, increasing from R190,5 million to a
record R212,1 million. This increase was mainly due to an increase in gold
production from the various operations and the higher gold price.
Net profit after other income/(expenses) at R93,4 million was R53,3 million
higher than the R40,1 million reported previously. This was mainly due to
decreased interest charges following the successful restructuring of the
company's balance sheet and lower depreciation charges.
Earnings per share increased sharply by 27 cents at 73% from 37 cents for
the June 2001 quarter to 64 cents for the September 2001 quarter.  The
earnings per share for September 2001 is more significant as it was
calculated at 145 million shares outstanding compared to approximately 108
million shares outstanding for the previous reporting period.
cash operating profit vs US$ gold price
A summary of the quarterly results reflect the following;
                  September 2001     June 2001       Variance
Kilograms Produced        19 161        18 380          4,3%
Revenue          R/kg     74 164        69 715          6,4%
Working Costs    R/kg     63 097        59 350         (6,3%)
Working Costs  R/tonne       239           223         (7,2%)
Revenue        US$/oz        274           270          1,5%
Working Costs  US$/oz        233           230         (1,3%)
Exchange Rate
         R = US$ 1,00       8,41          8,03          4,7%
The impact of the annual salary increases is clear from the 7,2% increase in
cost per tonne. This increase in US$ terms was negated by the 4,7%
depreciation of the local currency. On an overall basis cash operating
profits increased by 11% quarter on quarter.
A quarter on quarter analyses of the various operations is as follows;
TOTAL WORKING PROFIT R'MILLION
Operation         September 2001      June 2001       Variance
Free State                  8,9             4,6           4,3
Evander                    61,0            64,8          (3,8)
Randfontein                87,5            58,9          28,6
Elandskraal                43,3            59,2         (15,9)
Kalgold                    10,7             1,0           9,7
Offshore operations         0,7             2,0          (1,3)
Total                     212,1           190,5          21,6
Free State operations
The Free State Operations reported improved performances in all aspects
despite the adverse impact of a two day stayaway by employees during the
reporting period. Tonnage milled increased by 5,0% from 1,166 million tonnes
to 1,224 million tonnes. At a slightly higher recovery grade of 3,98 g/t
versus the 3,95 g/t of the previous quarter, these operations produced an
additional 263 kg gold. Total gold recovered was 4 867 kg.
Most cost indicators for these operations show the impact of the salary
increases and two-day stayaway by employees when compared with the previous
reporting period with R/kg and R/tonne costs increasing by 6,8% and 7,9%
respectively. The Brand operations were affected by a fire on a neighbouring
mine which curtailed production for more than two weeks.
The increased gold price resulted in the higher cash operating profit of
R8,9 million compared to the R4,6 million for the June 2001 quarter.
These operations will continue to improve and remain highly geared to
benefit from the anticipated increase in the Rand gold price in the
following quarter. Similar operational results will see the cash operating
profit soar to above R40 million for the quarter.
Evander operations
Evander again returned a spectacular performance with cash operating profits
of R61,0 million. Although this is 5,9% or R3,8 million less than the R64,8
million reported for the previous period, it is in line with expectations
for these operations.
Tonnage was 2,1% less at 521 000 tonnes and at a lower recovery grade of
6,21 g/t resulted in gold recovery from underground of 3 237 kg. The current
recovery grades are more in line with the average mining grade of the
Evander orebody and is expected to continue at these levels.
Surface clean-up contributed 70 kg which resulted in total gold recovered of
3 307 kg, 172 kg less than in the June 2001 quarter.
Despite lower tonnage, working costs were similar at R311/tonne, but in
US$/oz terms, the lower recovery grade resulted in these costs increasing by
6,0% to US$206/oz. Evander as a low cost producing region continues to be a
significant contributor to the performance of the company.
Randfontein operations
The benefits from the restructuring process at these operations which was
completed during the previous quarter, was evident as these operations
returned a R28,5 million improvement in cash operating profit. The R87,5
million is a 48,3% improvement over the R59,0 million for the June 2001
quarter.
Tonnage increased by 142 000 tonnes at 19,2% from 738 000 tonnes to 880 000
tonnes. At a higher recovery grade of 5,02 g/t compared to 4,93 g/t, gold
recovered from underground was 780 kg or 21,4% higher. The winding down of
surface operations contributed 324 kg which resulted in total gold recovery
from these operations of 4 745 kg.
Working costs increased marginally from R54 834/kg to R56 613/kg. When
measured on a cost/tonne basis, costs increased by 9,6% from R207/tonne to
R227/tonne. On a US$/oz basis, costs decreased from US$212/oz to US$209/oz
mainly due to the currency depreciation.
recoupment of randfontein investment
Randfontein, as in the case of Evander, is well on its way to recover the
investment made at the time of acquiring the operation. Our decision to
curtail the loss making sections on the operations are paying dividends and
Randfontein will remain an important contributor to our financial
performance.
Elandskraal operations
These operations continue to make good progress as the "Harmony Way" is
implemented.
At the previous quarterly announcements it was stated that the R59,2 million
cash operating profit for the period ending June 2001 was unsustainable in
the short term as further operational adjustments had to take place. These
operations returned an excellent R43,3 million cash operating profit for the
current quarter.
Tonnage was 4,5% or 26 000 tonnes less at 552 000 tonnes. At a higher
recovery grade of 6,65 g/t compared to the 6,4 g/t for the June 2001
quarter, kilograms produced were only 29 kg less at 3 669 kilograms. 221 kg
from surface operations resulted in total gold recovered of 3 890 kilograms.
Good progress with addressing working costs at these newly acquired
operations is being made. When measured on a cost/tonne basis, costs
decreased by 1,0% from R292/tonne to R289/tonne for the current reporting
period. In R/kg terms, costs increased by R8 701/kg or 16,1% to R62 656/kg
mainly due to the effect of the annual salary increases. At US$232/oz the
Elandskraal operations are well on track to deliver value to our
shareholders.
At the time of acquiring these operations the importance of generating cash
operating profits to cover the capital expenditure programme for the Shaft
Deepening Project was stressed. On the current performance of these
operations, the cash operating profits have been more than adequate to cover
the expenditure on the project which will extend the life of Elandskraal to
2017.
Kalgold operations
These operations performed in line with expectations, returning
significantly improved cash operating profits of R10,7 million compared to
the R1,0 million in the June 2001 quarter.
Improvements in both tonnage and grade resulted in a 39,9% or 160 kg
increase in gold recovered. Gold recovered was up from 401 kg to 561 kg in
the current quarter.
Working cost indicators at these operations all show the benefit of the
increased tonnages and grades with costs decreasing by R12 237/kg to R55
137/kg in the current quarter. In US$/oz terms, the operations reported
costs of US$204/oz compared to the US$261/oz of the June 2001 quarter.
Offshore operations
Offshore operations reported a profit of R0,6 million compared with a profit
of R2 million in the previous quarter. Tonnage reduced by 206 000 tonnes and
gold output by 341kg mainly because of the closure of the Bissett
operations.
Tonnage from underground at the New Hampton operations decreased by 43 000
tonnes from 302 000 tonnes to 259 000 tonnes, the recovery grade was higher
at 1,97 g/t compared to 1,65 g/t previously. This resulted in a net increase
of 13 kg to 510 kg being declared from underground operations.
Tonnage from surface sources decreased by 118 000 tonnes or 15% to 668 000
tonnes mainly due to material being sourced from marginal operations and
shortfalls made up from low grade stockpiles, whilst pre-stoping activities
at the large Trojan pit are being undertaken. Gold recovery decreased by
2,4% to 1 024 kg mainly due to recovery grades being lower at 1,53 g/t
compared to the 1,57 g/t achieved previously. Recovery grades are expected
to increase as mining from the Trojan pit commences.
Capital expenditure
                             September           December
                               Quarter            Quarter
Operations                     Actuals           Forecast
Free State                          17                 14
Evander                             17                 22
Randfontein                          2                  3
Kalgold                              -                  1
Elandskraal                         34                 36
New Hampton                          1                  2
Total                               71                 78
Operating and financial results (rand/metric)
                      Free       Kalgold    Evander    Evander     Rand-
                      State      U/g        Sur-face   Open-cast   fontein
                      Total                                        U/g
Ore milled  Sept-01   1 224      521        72         256         880
- t'000
            June-01   1 166      532        35         236         738
Gold        Sept-01   4 867      3 237      70         561         4 421
Produced
- kg
            June-01   4 604      3 440      39         401         3 641
Yield -     Sept-01   3.98       6.21       0.97       2.19        5.02
g/tonne
            June-01   3.95       6.47       1.11       1.70        4.93
Cash        Sept-01   73 666     56 348     25 700     55 137      56 920
Operating
Costs -     June-01   68 995     50 168     51 795     67 374      53 122
R/kg
Cash        Sept-01   293        350        25         121         286
Operating
Costs -     June-01   272        324        58         114         262
R/tonne
Working     Sept-01   367 451    240 076    5 100      41 620      332 066
Revenue     June-01   322 205    236 763    2 663      28 025      254 465
(R'000)
Cash        Sept-01   358 533    182 400    1 799      30 932      251 644
Operating
Costs       June-01   317 652    172 578    2 020      27 017      193 419
(R'000)
Cash        Sept-01   8 918      57 676     3 301      10 688      80 422
Operating
Profit      June-01   4 553      64 185     643        1 008       61 046
(R'000)
                      Rand       Elands     Elands     Offshore    Total
                      fontein    kraal U/g  kraal      opera-
                      Surface               Surface    tions
Ore milled  Sept-01   306        552        290        963         5 064
- t'000
            June-01   308        578        128        1 169       4 890
Gold        Sept-01   324        3 669      221        1 791       19 161
Produced
- kg
            June-01   301        3 698      124        2 132       18 380
Yield -     Sept-01   1.06       6.65       0.76       1.86        3.78
g/tonne
            June-01   0.98       6.40       0.97       1.82        3.76
Cash        Sept-01   52 429     63 803     43 620     68 664      63 097
Operating
Costs -     June-01   75 532     54 673     32 556     69 991      59 350
R/kg
Cash        Sept-01   56         424        33         128         239
Operating
Costs -     June-01   74         350        32         128         223
R/tonne
Working     Sept-01   24 092     270 726    16 329     123 605     1 421 065
Revenue     June-01   20 649     256 820    8 613      151 157     281 360
(R'000)
Cash        Sept-01   16 987     234 092    9 640      122 977     1 209 004
Operating
Costs       June-01   22 735     202 180    4 037      149 221     1 090 859
(R'000)
Cash        Sept-01   7 105      36 634     6 689      628         212 061
Operating
Profit      June-01   (2 086)    54 640     4 576      1 936       190 501
(R'000)
Financial results total operations (rand/metric) (unaudited)
                               Quarter            Quarter
                                 ended             ended
                               30 Sept           30 June
                                  2001              2001
Ore milled - t'000               5 064             4 890
Gold produced - kg              19 161            18 380
Gold price received - R / kg    74 164            69 715
Cash operating costs - R / kg   63 097            59 350
                                 R'000              R'000
Gold sales                    1 421 065         1 281 360
Cash operating costs          1 209 004         1 090 859
Cash operating profit           212 061           190 501
Amortisation                    (50 655)          (70 940)
Mark to market of financial
instruments *                  (147 855)           (1 915)
Employment termination costs    (13 408)           (3 885)
Other income - net               24 994            35 623
Interest paid                   (38 832)          (53 209)
Corporate expenditure           (14 159)          (14 362)
Exploration and new business    (10 155)           (9 047)
Mark to market of listed
investments **                  159 346                 -
Profit before taxation           121 337            72 766
South African normal taxation
- Current tax                   (19 514)           (24 366)
- Deferred tax                   (8 466)            (8 292)
Net earnings                     93 357             40 108
Earnings per share - cents #
- Earnings                           64                37
Dividends per share - (cents)          -                70
* The mark to market of the financial instruments inherited when Randfontein
and New Hampton were purchased is based on a gold price of $291 per ounce,
and on an US$/Au$ exchange rate of US$1 = Au$ 2.13
** The mark to market of listed investments relates to the investment in
Goldfields of Australia of 43.3 million shares valued at Au$ 2.16.
# Calculated on weighted average number of shares in issue during the
quarter: 145,1 million (June 2001: 107,8 million)
Abridged  balance sheet (rand) (unaudited)
                                    At                At
                               30 Sept           30 June
                                  2001              2001
                                 R'000             R'000
Employment of Capital
Mining assets after
amortisation                 5 481 074          5 423 930
Investments                    221 594            221 010
Loans to share trusts            29 114             30 729
Net current liabilities        (165 442)          (129 655)
(excluding cash)
Short-term investments
- Goldfields of Australia       401 708            319 861
Cash                          1 228 680          1 158 427
                              7 196 728          7 024 302
Capital Employed
Shareholders' equity          4 620 746          4 593 699
Loans                         1 235 183          1 212 200
Preference shares                 5 479              5 479
Long-term provisions            438 703            437 671
Unrealised hedging loss         508 864            396 969
Deferred tax                    387 753            378 284
                              7 196 728          7 024 302
Issued share capital: 145.1 million ordinary shares of 50 cents each.
(June 2001: 144.6 million)
Operating and financial results(US$/imperial)
                      Free       Evander    Evander    Kalgold     Rand-
                      State      U/g        Surface    Opencast    fontein
                      Total                                        U/g
Ore milled  Sept-01   1 350      575        79         282         970
- t'000
            June-01   1 286      587        39         260         814
Gold        Sept-01   156 477    104 071    2 251      18 036      142 138
Produced
- oz
            June-01   148 021    110 598    1 254      12 892      117 060
Yield -     Sept-01   0.116      0.181      0.028      0.064       0.147
oz/ton
            June-01   0.115      0.188      0.032      0.050       0.144
Cash        Sept-01   272        208        95         204         211
Operating
Costs -     Costs -   267        194        201        261         206
$/oz        $/oz
Costs -     Sept-01   32         38         3          13          31
$/oz
Costs -     June-01   31         37         6          13          30
$/ton
Working     Sept-01   43 692     28 546     606        4 949       39 485
Revenue
($'000)     June-01   40 125     29 485     332        3 490       31 689
Cash        Sept-01   42,632     21,688     214        3,678       29,922
Operating
Costs       June-01   39,558     21,492     252        3,365       24,087
($'000)
Cash        Sept-01   1,060      6,858      392        1,271       9,563
Operating
Profit      June-01   567        7,993      80         125         7,602
($'000)
                      Rand       Elands     Elands     Offshore    Total
                      fontein    kraal U/g  kraal      opera-
                      Surface               Surface    tions
Ore milled  Sept-01   337        609        320        1 062       5 584
- t'000
            June-01   340        637        141        1 289       5 393
Gold        Sept-01   10 417     117 961    7 105      57 582      616 038
Produced
- oz
            June-01   9 677      118 893    3 987      68 545      590 927
Yield -     Sept-01   0.031      0.194      0.022      0.054       0.110
oz/ton
            June-01   0.028      0.187      0.028      0.053       0.110
Cash        Sept-01   194        236        161        254         233
Operating
Costs -     June-01   293        212        126        271         230
$/oz
Cash        Sept-01   6          46         4          14          26
Operating
Costs -     June-01   8          40         4          14          25
$/ton
Working     Sept-01   2 865      32 191     1 942      14 697      168 973
Revenue
($'000)     June-01   2 571      31 983     1 073      18 824      159 572
Cash        Sept-01   2,020      27,835     1,146      14,623      143,758
Operating
Costs       June-01   2,831      25,178     503        18,582      135,848
($'000)
Cash        Sept-01   845        4,356      796        74          25,215
Operating
Profit      June-01   (260)      6,805      570        242         23,724
($'000)
Financial results total operations (US$/imperial) (unaudited)
                              Quarter            Quarter
                                ended              ended
                              30 Sept            30 June
                                 2001               2001
Ore milled - t'000              5 584              5 393
Gold produced - oz            616 038            590 927
Gold price received - $ / oz      274                270
Cash operating costs - $ / oz     233                230
                                $'000              $'000
Gold sales                    168 973            159 572
Cash operating costs          143 758            135 848
Cash operating profit          25 215             23 724
Amortisation                   (6 023)            (8 834)
Mark to market of
financial instruments *       (17 581)              (238)
Employment termination costs   (1 594)              (484)
Other income - net              2 972              4 436
Interest paid                  (4 617)            (6 626)
Corporate expenditure          (1 684)            (1 789)
Exploration and new business   (1 207)            (1 127)
Mark to market of listed
investments **                 18 947                 -
Profit before taxation         14 428              9 062
South African normal taxation
- Current tax                  (2 320)            (3 034)
- Deferred tax                 (1 007)            (1 033)
Net earnings                   11 101              4 995
Earnings per share - cents #
- Earnings                          8                  5
Dividends per share - (cents)       -                  9
 Prepared in accordance with International Accounting Standards
 Currency Conversion Rates:  US$1 = R8.41 (June 2001:  R8.03)
*  The mark to market of the financial instruments inherited when
Randfontein and New Hampton were purchased is based on a gold price of $291
per ounce, and on an US$/Au$ exchange rate of US$1 = Au$ 2.13
**  The mark to market of listed investments relates to the investment in
Goldfields of Australia of 43.3 million shares valued at Au$ 2.16.
#  Calculated on weighted average number of shares in issue during the
quarter:  145.1 million (June 2001:  107.8 million)
Abridged balance sheet(US$) (unaudited)
                                  At                 At
                              30 Sept            30 June
                                 2001               2001
                              US$'000            US$'000
Employment of Capital
Mining assets after
amortisation                   651 733            675 458
Investments                    26 349              27 523
Loans to share trusts           3 462               3 827
Net current liabilities       (19 673)            (16 145)
(excluding cash)
Short-term investments
- Goldfields of Australia      47 766              39 833
Cash                          146 098             144 262
                              855 735             874 758
Capital Employed
Shareholders' equity          549 435             572 067
Loans                         146 871             150 959
Preference shares                 651                 682
Long-term provisions           52 165              54 505
Unrealised hedging loss        60 507              49 436
Deferred tax                   46 106              47 109
                              855 735             874 758
 Issued share capital: 145.1 million ordinary shares of 50 cents each.
 (June 2001: 144.6 million)
 Currency conversion rates:  US$1 = R8.41 (June 2001: R8.03)
Condensed statement of changes in shareholders' equity (Unaudited)
                             At          At          At           At
                        30 Sept     30 Sept     30 Sept      30 Sept
                           2001        2000        2001         2000
                          R'000       R'000     US$'000      US$'000
Balance as at the
beginning of the
financial year        4 593 699   2 874 718     546 219      413 034
Currency
translation
adjustment
and other               (79 594)      1 507     (9 465)         216
Issue of
share
capital                  13 284      66 517       1 580        9 557
Net
earnings                 93 357      63 389      11 101        9 108
Balance as at the
end of September    4 620 746    3 006 131     549 435      431 915
Development results - (Metric)
                                   Channel  Channel
                    Reef  Sampled    Width    Value      Gold
                  Meters   Meters    (Cm's)    (g/t)   (Cmg/t)
Randfontein
VCR Reef             521     429      101     13.20     1 331
UE 1A              2 775   2 616       99     12.53     1 243
E8 Reef              73       68      157     7.32    1 150
Kimberley Reef      407      405       316     3.33   1 052
All Reefs         3 776    3 518       125     9.80    1 230
Free State
Basal             1 473    1 008      136     6.17     839
Leader            1 179    1 034      165     6.16   1 016
A Reef               803     602        69     8.80     607
Middle               151      74       169    13.89   2 347
B Reef             19,5       -        -        -       -
All Reefs         3 625    2 718       133     6.74     896
Evander
Kimberley Reef    2 880    2 676        67    14.80     992
Elandskraal
Vcr Reef           737     842       68     14.62     999
Development results - (imperial)
                               Channel   Channel
                 Reef  Sampled    Width     Value    Gold
                 Feet     Feet  (inches)    (oz/t) (in.ozt)
Randfontein
VCR Reef         1 709   1 407       40     0.382      15
UE1A             9 104    8,83       39     0.366      14
E8 Reef            240     223       62     0.213      13
Kimberley Reef   1 335   1 329      124     0.097      12
All Reefs       12 388   11 542       49     0.288      14
Free State
Basal            4 832   3 307       54     0.180      10
Leader           3 870    3 393       65     0.180      12
A Reef           2 636   1 975       27     0.257       7
Middle            495     242       67     0.405      27
B Reef             64       -        -        -       -
All Reefs       11 896   8 918       52     0.196      10
Evander
Kimberley Reef   9 448   8 780     26,4     0.432      11
Elandskraal
VCR Reef         2 419   2 763     26.9     0.430   11.47
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
22 October 2001
Investor relations
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) 412-1450
Telefax:    +27 (11) 692-3879
E-mail: corporate@harmony.co.za
Investor relations contacts
Corn  Bobbert
Telephone: +27 (11) 412-1450
Telefax:   +27 (11) 411-2169
E-mail: cbobbert@harmony.co.za
Ferdi Dippenaar
Telephone: +27 (11) 412-1450
Telefax: +27 (11) 692-3879
E-mail: fdippenaar@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): Melvyn Leigh/Therese Hodgin
Telephone: +44 (208) 639 1001
Telefax: +44 (208) 478 2876
E-mail: mleigh@capita-irg.com/
thodgin@capita-irg.com
Balfour House 390-398
High Road, Ilford
Essex IG1 1NQ, United Kingdom
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
Trading Symbols
Ordinary Shares
JSE Securities Exchange            :    HAR
Nasdaq                            :    HGMCY
London Stock Exchange              :    HRM
Euronext Paris                    :    HG
Euronext Brussels                  :    HMY
Warrants
JSE Securities Exchange             :    HARW
Nasdaq                            :    HGMCW
Visit our new web site at  www.harmony.co.za which includes an updated
company profile. For the 2001 annual report, go to www.har.co.za. For
general gold and investment information, go to www.harmonyedugold.co.za
For a hard copy,
please contact
Corn  Bobbert on
tel +27 11 412-1450
or e-mail to
cbobbert@



                                        
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