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Harmony Gold Mining Company Limited - Press Release

Release Date: 05/08/2002 12:04:41      Code(s): HAR
Harmony Gold Mining Company Limited - Press Release                             
OF EXCELLENT QUARTERLY PERFORMANCE                                              
ISIN code.: ZAE000015228                                                        
JSE       : HAR                                                                 
NASDAQ    : HGMCY                                                               
Johannesburg, 5 August 2002 - Harmony Gold Mining                               
Company Limited today reported improved record operational profits for the fifth
quarter in a row. Earnings per share increased by 4% to 402 cents. Earnings     
after write-downs for the past financial year totals 1 094 cents, an increase of
882% from the 111,5 cents reported for the previous financial year.             
A dividend of 425 cents per ordinary share, being the final dividend, was       
declared. This dividend together with the 75 cents interim dividend announced in
December 2001, totals 500 cents for the financial year.                         
Harmony increased production to 2,7 million ounces, an increase of 25% year on  
year. For the new financial year, the company expects to produce some 3,1       
million ounces, a further increase of 16%.                                      
Quarter on quarter, the company`s cash operating profit increased by 25% from   
R850.9 million to R1 067,7 million. Kilograms recovered was 17% higher at 24 390
kg compared to the 20 936 kg for the previous quarter. This was mainly          
due to improved operational performance by the Free State, Elandskraal and Free 
Gold operations and the inclusion of Hill 50 in Australia.                      
Measured in R/kg terms, working cost decreased by 9% from R65 392/kg to R59     
574/kg, whilst in R/tonne terms, working costs decreased from R228/tonne to     
The company achieved a US$130 or 42% profit margin with cash costs of US$178/oz.
When measured in US$ terms, working                                             
costs increased by 1% from US$176/oz to US$178/oz. This can mainly be attributed
to the 10% improvement in the exchange rate which strengthened from R11,53 / US$
to R10,43 / US$ in the past quarter.                                            
The company used the past three months to integrate the acquisitions of 50% of  
Free Gold in South Africa and Hill 50 in Australia. The current gold price      
environment has resulted in Harmony re-assessing the growth opportunities       
available in other mining areas throughout the world, as well as the various    
prospective organic growth opportunities at its current operations.             
The Free State operations reported a 47% increase in cash operating profits from
R145,4 million to R213,7 million.  Working costs remained under control with    
expenditure of R318,4 million compared to R319,8 million for the March 2002     
Evander reported a satisfactory performance with cash operating profit          
decreasing by 17% from R169,3 million to R140,9 million.  This reduction can be 
attributed to higher working costs in both R/kg and R/tonne terms, due to lower 
tonnage and recovery grade                                                      
Gold produced at the Free Gold Joint Venture operations increased by 19%, from 7
942 to 9 419 kg.  Cash operating cost decreased by 23%, from R56 914/kg to R43  
662/kg or US$130/oz. The 50% profit after tax due to Harmony amounts to R251,8  
million, compared to R170.3 million for the March 2002. Free Gold now operates  
at a profit margin of US$181/oz or 58% at a gold price of US$311/oz.            
The Randfontein operations reported cash operating profits of R172,5 million, a 
13% decrease compared to the R198,0 million reported previously. Working costs  
decreased by 10% from R252,4 million to R227,8 million. These operations`       
results were affected by a strike which lasted 11 days.  The dispute on living- 
out allowances was eventually settled with both the company and the unions      
satisfied with progress made.                                                   
Elandskraal reported a R173,6 million cash operating profit, up 51% from the    
March 2002. The benefits of the development programme that is underway at the   
Elandskraal operations were evident with an increase in recovery grades of 6,44 
g/t compared with 5,74 g/t of March 2002. Whilst the grades have improved by    
12%, it is anticipated that some volatility will be experienced until the       
development programme has been completed. Underground working costs/kg showed   
the most improvement, decreasing by 12% from R71 398/kg to R62 550/kg.  Measured
in cost/tonne, the operations reported costs of R403/tonne compared to          
R410/tonne for the previous quarter.                                            
The Kalgold operations experienced a 40% increase in cash operating profits, up 
from R8,3 million to R11,7 million for the June 2002 quarter, despite employees 
associated with the NUM embarking on a wage related strike for 21 days.         
Cash operating profits for the Australian operationsincreased from R13,3 million
to R70,4 million and is mainly due to the inclusion of the Hill 50 assets.  The 
company`s Australian operations now consist of assets with more reserves of a   
higher quality.  The quarter includes the cleaning up of the Harmony`s          
Australian balance sheet by taking an impairment of q A$90m on the New Hampton  
investment and Harmony`s sale of its stake in AurionGold to Placer Dome. The    
April capital raising significantly strengthened our Australian balance sheet.  
The consolidated Harmony Australia is now debt-free, has qA$17m in cash for its 
capex projects and has the opportunity to pursue further growth opportunities in
that region.  The company`s budget plans exhibit a production profile of in     
excess of 550 000 ounces for the 2002/3 financial year.                         
R3,6 million was spent on the Kalplats project during the quarter. Pre-         
feasibility studies included the updating of orebody models, resource           
calculations, pit optimizations and plant designs. The mineral resource is at   
q3.8m oz at 1.5 g/t TPM (Total Precious Metals) including q1,5m oz at 3,7 g/t   
TPM. Metallurgical extraction is estimated at about 75% for ore with grades     
above 2,0 g/t TPM. The company will proceed with expenditure totalling R25,0    
million on mainly a 500 ton bulk sampling pit and additional drilling activities
in prospective areas.                                                           
"We have grown this company significantly over the past six years, applying our 
value creation model  to mature turnaround assets.  Today we have operations in 
various phases of growth, i.e. the Free State being mature, but delivering      
significant amounts of cash and Elandsrand on the other end which is a new      
quality long life mining operation in the making. We will continue to deliver   
value to our shareholders through smart acquisitions and further developing the 
numerous organic growth projects in our portfolio," concluded Bernard.          
For further details contact:                                                    
Bernard Swanepoel                                                               
on +27(0)83 303 9922                                                            
Ferdi Dippenaar                                                                 
on +27(0)82 807 3684                                                            
Issued by Harmony Gold Mining Company Limited                                   
Corn Bobbert                                                                   
Tel +27 11 684 0146                                                             
Fax +27 11 684 0188 Mobile +27(0)83 380 6614                                    
E-mail: cbobbert@harmony.co.za                                                  
Web site:                                                                       
Date: 05/08/2002 12:03:52 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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