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Harmony Gold Mining Co. Ltd. - Harmony Reports 48% Increase in ORE Reserves

Release Date: 25/07/2002 16:41:54      Code(s): HAR
Harmony Gold Mining Co. Ltd. - Harmony Reports 48% Increase in ORE Reserves     
NEWS RELEASE                                                                    
HARMONY REPORTS 48% INCREASE IN ORE RESERVES                                    
Johannesburg, 25 July 2002 - Harmony today announced details on the company`s   
ore reserves and resources as at the financial year ending June 2002.           
The company has, for the financial year ended June 2002, declared resources in  
excess of 295 million ounces, with 49 million ounces being in the reserve       
category. These ore reserves were calculated at a gold price of R95 000 per     
kilogram or approximately US$295/oz.                                            
For the previous financial year, Harmony reported resources of 224 million oz of
which 33 million oz were in ore reserves category. This is a 48% year on year   
increase in reserves.                                                           
"Harmony has always been very conservative in its valuation of its ore reserves.
One of the reasons being the company`s policy of not hedging production and     
thereby allowing our shareholders exposure to increases in the gold price, if   
and when it occurs.                                                             
"The current gold price and Rand exchange rate environment,                     
however, has allowed us to use a higher gold price of R95 000                   
per kilogram.                                                                   
"We will continue to apply this conservative approach at our mining operation   
since Harmony, unlike its hedged competitors, cannot rely on a fixed gold       
price," said Bernard Swanepoel, chief executive.                                
"The increase will allow the company`s mines more flexibility, both in terms of 
mining as well as optimising the profit levels of the operations. Harmony will  
remain focussed on its working costs since this is one aspect the company can   
actually control," concluded Bernard.                                           
The increase in ore reserves can mainly be ascribed to the higher gold price and
an overall improvement in ore reserve quality through the acquisition of 50% of 
the Free Gold assets in South Africa and Hill 50 in Australia.                  
Date: 25/07/2002 04:41:34 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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