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Harmony Gold Mining Company Limited - Financial Report

Release Date: 28/01/2002 12:56:00      Code(s): HAR
Report to shareholders for the quarter ended 31 December 2001
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
JSE code: HAR     NASDAQ trading code: HGMCY
ISIN: ZAE000015228
Report to shareholders for the quarter ended 31 December 2001
"The depreciation of the rand has made the company significantly more
profitable. However, now is the time to double our efforts to control
working costs as all stakeholders will be aggressively increasing their
demands for a larger slice of this windfall profit. Our main focus will be
on enhancing the value of the company by increasing the profit margin of the
ounces we produce."
Key indicators
* Conclusion of JV agreement to acquire AngloGold's Freegold assets
* Offer to shareholders of Hill 50 in Australia
* Current cash cost of US$198/oz, cash operating profit margin of 28%
*  On track for annualised production of 3 million ounces
* Achieved payback of R750 million nett investment for Randfontein in eight
quarters
*  Record cash operating profit of R455,2 million
* 222% increase in e.p.s. from 64 cents to 206 cents
*  Interim dividend declaration of 75 cents per share
* Excellent all round operational performance
* Increase in R/kg gold price results in extended life of shafts at various
operations
Directors: A R Fleming*# (Chairman), Z B Swanepoel (Chief executive),
F Abbott, F Dippenaar, Dr. A M Edwards*,
T S A Grobicki, M F Pleming*, Lord Renwick of Clifton KCMG*#,
Dr. G S Sibiya*, *Non executive directors #British
It is with regret that I have to report the loss of life of fourteen
employees following mine accidents during the previous quarter. I wish to
offer my sincere condolences to the family, friends and colleagues of these
employees.
Operating and financial results
                        Free                                Rand-
                        State   Evander Evander   Kalgold   fontein
                        Total   U/g     Surface   Opencast  U/g
Ore milled
- t'000 Dec-01          1 074   538     59        256       860
        Sept-01         1 224   521     72        256       880
Gold produced
- kg    Dec-01          4 884   3 296   31        575       4 485
        Sept-01         4 867   3 237   70        561       4 421
Yield
- g/tonne Dec-01        4.55    6.13    0.53      2.25      5.22
          Sept-01       3.98    6.21    0.97      2.19      5.02
Cash
operating Dec-01        70 152  54 963  46 968    56 675    56 565
costs
- R/kg    Sept-01       73 666  56 348  25 700    55 137    56 920
Cash
operating Dec-01        319     337     25        127        295
costs
- R/
tonne     Sept-01       293     350     25        121        286
Working
revenue   Dec-01       430 075  291 084 2 946     50 342     399 847
(R'000)   Sept-01      367 451  240 076  5 100    41 620     332 066
Cash
operating Dec-01       342 620  181 159  1 456    32 588     253 692
costs
(R'000)   Sept-01      358 533  182 400  1 799    30 932     251 644
Cash
operating Dec-01       87 455   109 925  1 490    17 754     146 155
profit
(R'000)   Sept-01      8 918    57 676   3 301    10 688     80 422
Operating and financial results
                     Rand-      Elands-      Elands-  Offshore
                     fontein    kraal        kraal    Opera-
                     Surface    U/g          Surface  tions     Total
Ore milled
- t'000 Dec-01       339        551          284      1 009     4 970
        Sept-01      306        552          290      963       5 064
Gold produced
- kg    Dec-01       186        3 452        178      1 397     18 484
        Sept-01      324        3 669        221      1 791     19 161
Yield
- g/tonne Dec-01     0.55       6.26         0.63     1.38      3.72
          Sept-01    1.06       6.65         0.76     1.86      3.78
Cash
operating Dec-01     68 473     65 056       48 517   88 034    63 863
costs
- R/kg Sept-01       52 429     63 803       43 620   68 664    63 097
Cash
operating Dec-01     38         408          30       122       238
costs
- R/
tonne Sept-01        56         424          33       128       239
Working
revenue Dec-01       16 927     304 032      16 429   123 979   1 635 661
(R'000) Sept-01      24 092     270 726      16 329   123 605   1 421 065
Cash
operating Dec-01     12 736     224 575      8 636    122 983   1 180 445
costs
(R'000) Sept-01      16 987     234 092      9 640    122 977   1 209 004
Cash
operating Dec-01     4 191      79 457       7 793    996       455 216
profit
(R'000) Sept-01      7 105      36 634       6 689    628       212 061
Financial results (unaudited)
6 Months    6 Months                             Quarter     Quarter
ended       ended                                ended       ended
31 Dec      31 Dec                               31 Dec      30 Sept
2000        2001                                 2001        2001
8 361       10 034       Ore milled - t'000      4 970       5 064
32 838      37 645       Gold produced - kg      18 484      19 161
                         Gold price received
65 189      81 199       - R / kg                88 491      74 164
                         Cash operating costs
55 220      63 473       - R / kg                63 863      63 097
R'000       R'000                                R'000       R'000
2 140 660   3 056 726    Gold sales              1 635 661   1 421 065
1 813 319   2 389 449    Cash operating
                         costs                   1 180 445   1 209 004
327 341     667 277      Cash operating profit   455 216     212 061
(89 938)    (104 741)    Amortisation            (54 086)    (50 655)
                         Mark to market of
77 500      (136 714)    financial
                         instruments             11 141      (147 855)
                         Employment termination
(8 547)     (23 840)     costs                   (10 432)    (13 408)
                         Other (expenses)/income
28 942      16 304       - net                   (8 690)     24 994
(27 865)    (79 269)     Interest paid           (40 437)    (38 832)
(12 376)    (28 461)     Corporate
                         expenditure             (14 302)    (14 159)
                         Exploration and new
(16 843)    (23 078)     business                (12 923)    (10 155)
                         Mark to market of
-           246 285      listed investments      86 939      159 346
278 214     533 763      Profit before
                         taxation                412 426     121 337
                         South African normal
                         taxation
(30 995)    (103 365)    - Current tax           (83 851)    (19 514)
(31 775)    (29 338)     - Deferred tax          (20 872)    (8 466)
215 444     401 060      Net earnings            307 703     93 357
                         Adjustments:
                         - Profit on sale of
                         property, plant and
24 691      11 677       equipment               6 985       4 692
190 753     389 383      Headline earnings       300 718     88 665
                         Earnings per share - cents *
213         270          - Basic earnings        206     64
188         263          - Headline earnings     202     61
50          75           Dividends per share -
                         (cents)                 75      -
* Calculated on number of shares in issue at quarter end: 149.1 million
(September: 145.1 million).
Abridged balance
sheet
(unaudited)                        *At         At         At
                                    31 Dec     30 Sept    31 Dec
                                    2001       2001       2000
                                    R'000      R'000      R'000
Employment of Capital
Mining assets after
amortisation                       5 868 014   5 481 074  3 878 791
Investments                        694 253     250 708    199 152
Net current liabilities            (447 079)   (165 442)  (45 100)
(excluding cash)
Short-term investments
- Goldfields of Australia          488 647     401 708     303 583
- Western Areas                    -           -           86 537
Cash                               1 213 343   1 228 680   326 883
                                   7 817 178   7 196 728   4 749 846
Capital Employed
Shareholders' equity               4 924 354   4 620 746   3 186 246
Loans                              1 337 570   1 235 183   596 747
Preference Shares                  5 479       5 479       -
Long-term provisions               475 360     438 703     375 229
Unrealised hedging loss            663 830     508 864     238 005
Deferred tax                       410 585     387 753     353 619
                                   7 817 178   7 196 728   4 749 846
Accounting Policies
The financial statements are prepared on the historical cost basis and in
accordance with South African Statements of Generally Accepted Accounting
Practice and International Accounting Standards. The accounting policies
are, in all material respects, consistent with the annual financial
statements for the year ended 30 June 2001.
Issued share capital: 149,1 million ordinary shares of 50 cents each.
(September 2001: 145.1 million, December 2000: 102.8 million)
* Assets and liabilities of offshore operations were revalued at closing
exchange rates resulting in significant movements on the balance sheet
CONDENSED STATEMENT OF
CHANGES IN SHAREHOLDERS' EQUITY
 unaudited)                                      At         At
                                                 31 Dec     31 Dec
                                                 2001       2000
                                                 R'000      R'000
Balance as at the beginning of the
financial year                                   4 593 699  2 874 718
Currency translation adjustment
and other                                        (115 815)  44 785
Issue of share capital                           157 172    145 199
Net earnings                                     401 059    172 944
Dividends paid                                   (111 761)  (51 400)
Balance as at the end of December                4 924 354  3 186 246
 ABRIDGED CASH FLOW
STATEMENT
(unaudited)                                      6 Months   6 Months
                                                 ended      ended
                                                 31 Dec     31 Dec
                                                 2001       2000
                                                 R'000      R'000
Cash flow from operations                        525 024    65 313
Cash utilised in investing activities            (432 038)  (201 534)
Cash utilised in financing activities            (38 143)   (114 401)
Translation adjustment                           -          -
Increase/(decrease) in cash and
equivalents                                      54 843     (250 622)
Opening cash and equivalents                     1 158 500  577 505
Closing cash and equivalents                     1 213 343  326 883
NOTICE OF INTERIM DIVIDEND
A dividend No. 74 of 75 cents per ordinary share, being the interim dividend
for the financial year ending 30 June 2002, has been declared payable on 18
February 2002 to those shareholders registered as such in the books of the
company at the close of business on 15 February 2002.
The dividend is declared in the currency of the Republic of South Africa.
Dividend cheques will be posted and electronic funds transferred on or about
18 February 2002.
Any change in address or dividend instruction to apply to this dividend must
be received by the company's transfer secretaries or registrar not later
than 8 February 2002.
Share certificates may not be dematerialised or rematerialised between
Monday 4 February 2002 and Friday 15 February 2002, both days inclusive.
This announcement will be mailed to all registered holders on or about 28
January 2002.
Salient dates:
Last day to trade ordinary shares cum dividend     8 February 2002
Ordinary shares trade ex dividend                  11 February 2002
Record date                                        15 February 2002
Payment date                                       18 February 2002
By order of the Board
FW Baker     Virginia
Company secretary     28 January 2002
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     28 January 2002
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) 411-2011
Telefax:    +27 (11) 692-3879
E-mail: corporate@harmony.co.za
Investor relations contacts
Corne Bobbert
Telephone: +27 (11) 411-2036
Telefax:   +27 (11) 411-2169
E-mail: cbobbert@harmony.co.za
Ferdi Dippenaar
Telephone: +27 (11) 411-2011
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 (646) 885-3294
Telefax: +1 (646) 885-3043
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),
Z B Swanepoel (Chief executive),
F Abbott, F Dippenaar,
Dr. A M Edwards*, T S A Grobicki,
M F Pleming*, 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
ISIN     :           ZAE000015228
Warrants
JSE Securities
Exchange     :       HARW
Nasdaq     :         HGMCW
Visit our web site at www.harmony.co.za which includes an updated company
profile. For the 2001 annual report, go to www.har.co.za, and for general
gold and investor information, go to www.harmonyedugold.co.za.
To purchase Harmony gold products, visit www.harmonygold-direct.com.
For a hard copy of the annual report or the quarterly review,
please contact Corne Bobbert on tel +27 11 411-2036
or e-mail cbobbert@harmony.co.za.



                                        
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