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Harmony Fixes Exchange Rate For Free State Operations

Release Date: 07/12/2001 14:07:00      Code(s): HAR
Harmony Gold Mining Co. Ltd.
Johannesburg, 7 December 2001 - Harmony announced today that it had fixed a
Rand/US$ exchange rate for its Free State operations' planned production
(excluding Freegold) for calendar year 2002.
Harmony chief executive, Bernard Swanepoel, says the Harmony board decided
to make use of the opportunity presented by the current weakness of the Rand
to lock in a 50 per cent margin for its highest cost operations.  The
company had accordingly fixed the Rand/US$ exchange rate at an average of
R11,20 to the Dollar in respect of its Free State operations' planned
production for calendar year 2002. This excludes the Freegold mines that
form part of the Harmony/ARM joint venture.
At the current gold price of US$275/oz, the Free State operations will earn
R99 000/kg during 2002 and accordingly realise an estimated R30 000/kg for
the calendar year at current production levels.
"We firmly believe in not hedging the gold price, and will not sell gold
forward into the market," Swanepoel says, but adds that the opportunity
presented by the currency weakness to secure favourable forward exchange
rates was too good to pass by.

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