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Harmony Gold Mining Company Limited - Quarterly Results

Release Date: 27/01/2003 12:00:39      Code(s): HAR
Harmony Gold Mining Company Limited - Quarterly Results                         
Harmony Gold Mining Company Limited                                             
(Registration number 1950/038232/06)                                            
ISIN:          ZAE000015228                                                     
Trading Symbols                                                                 
Ordinary Shares                                                                 
JSE Securities Exchange      HAR                                                
NYSE                         HMY                                                
London Stock Exchange        HRM                                                
Euronext Paris                HG                                                
Euronext Brussels            HMY                                                
Berlin Stock Exchange       HAM1                                                
Warrants                                                                        
JSE Securities Exchange     HARW                                                
NYSE                       HMYWS                                                
Options                                                                         
Chicago Board Options                                                           
Exchange                     QHG                                                
HARMONY REVIEW for the quarter ended 31 December 2002                           
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 may 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                                                                  
* Successful listing on NYSE on 27 November 2002                                
* Agreement on HIV/Aids                                                         
* Official launch of Doornkop South Reef Project on 22 January 2003             
* Cash operating profit of R763 million                                         
* Half-year earnings per share of 509 cents, up 89% on corresponding period for 
  last year                                                                     
* Interim dividend of 125 cents, up 67%                                         
* Strategic investments continue to deliver value                               
Financial highlights                                                            
                         31 December 2002  30 September 2002                    
Cash operating profit                                                           
- Rand                        763 million        950 million                    
- US$                          79 million         91 million                    
Earnings                                                                        
- Rand                        457 million        426 million                    
- US$                          48 million         41 million                    
Earnings per share                                                              
- SA cents per share                  262                247                    
- US cents per share                   27                 24                    
                         31 December 2002  30 September 2002                    
Gold produced                                                                   
- kg                               24 078             24 778                    
- oz                              774 121            796 497                    
Cash costs                                                                      
- R/kg                             68 500             68 110                    
- $/oz                                222                204                    
Chief executive`s review December 2002                                          
"Concerns that a gold price of above US$350/oz would see producers returning to 
their bad habits of hedging has been shown to be unfounded. The low interest    
rate environment resulted in a low gold contango and not even the most prolific 
hedgers are prepared to continue to ignore the clearly expressed wishes of      
investors when the potential benefits of hedging are negligible. Exotic         
financial instruments are out of favour with investors and simple ("vanilla")   
hedging is not worth the risk of further alienating investors who want exposure 
to a rising gold price. The record long positions held by speculators show that 
they expect the two year rising trend to continue."                             
Safety Report                                                                   
During the past quarter, six of our employees lost their lives in 6 separate    
incidents underground. Our deep felt sympathy and condolences go to their       
families, friends and colleagues.                                               
Most indicators, i.e., Fall of Ground (FOG), Fatal Injury Frequency Rate (FIFR),
Total Injury Accident Frequency Rate (TIAFR), Lost Time Injury Frequency Rate   
(LTIFR) show a declining trend.                                                 
Evander 8 shaft achieved 500 000 fatality free shifts on 9 October 2002.        
The second quarter saw audits of all working areas at every Harmony shaft being 
completed. Reports from these audits will assist the shafts to draw up site     
specific safety plans and update baseline risk assessments. Our current policies
and codes of practices were reviewed to ensure that these are applicable and    
relevant.                                                                       
Strategic Overview                                                              
6% Growth in earnings per share                                                 
The company reported a 6% increase in earnings per share, up from 247 cents to  
262 cents quarter on quarter despite receiving 6% less in R/kg gold price. The  
board has approved an interim dividend of 125 cents up 67% on last year`s       
interim dividend of 75 cents. In US Dollar terms the dividends could increase by
100% from 7 cents to 14 cents if the Rand is at R9,00 to the US Dollar.         
To show the effect of the appreciation of the South African Rand, the first 6   
months of the current financial year has been compared to the corresponding     
period in the previous financial year.                                          
Earnings per share for the first six months of the financial year totals 509    
cents, which is an increase of 89% over the 270 cents reported for the          
corresponding period in the previous financial year.                            
6 months        6 months                        
                                  ending          ending                        
                             31 Dec 2002     31 Dec 2001   % Variance           
Gold produced Kgs                 48 852          37 645           30           
Gold produced oz               1 570 618       1 210 310           30           
Yield g/t                           3,50            3,75          (7)           
Cash operating costs              68 302          63 473          (8)           
R/Kg                                                                            
Cash operating costs                 213             213            0           
US$/oz                                                                          
Gold price R/Kg                  103 362          81 199           27           
Cash operating profit          1 712 751         667 277          157           
(R)                                                                             
Earnings per share -                 509             270           89           
cents                                                                           
Dividends per share -                125              75           67           
cents                                                                           
Assumptions                                                                     
US$ Exchange rate                 R10,00           R9,28          (8)           
Shares in issue            173,5 million   149,1 million         (16)           
In terms of growth in production and e.p.s. the company is well on track to     
improve on the previous year`s performance. We are confident that our planned   
16% year on year growth in production, which will see the company produce in    
excess of 3,1 million ounces per annum, is achievable.                          
Cash operating profits quarter on quarter decreased by 20% from R950 million to 
R763 million.                                                                   
The stronger Rand alone contributed R150 million to the R187 million drop in    
cash operating profits.                                                         
The performance of the operations is highlighted in the following table:        
                       Dec 2002  Sept 2002   % Variance                         
Production - kg          24 078     24 774          (3)                         
Production - oz         774 121    796 497          (3)                         
Revenue - R/kg          100 171    106 463          (6)                         
Revenue - US$/oz            324        319            2                         
Cash cost - R/kg         68 500     68 110          (1)                         
Cash cost - US$/oz          222        204          (9)                         
Exchange rate R/US$        9,61      10,39            8                         
The company achieved a US$102/oz or 31% cash-operating profit margin with cash  
costs of US$222/oz. A profit margin of US$115/oz or 36%, was achieved during the
September 2002 quarter.                                                         
Quarter on quarter, the gold price received in South African Rand terms         
decreased by 6% from R106 463/kg to R100 171/kg.                                
Grade from the underground operations decreased from 5,5 g/t to 5,2 g/t. The    
grade variances of the Free State (4,41 g/t to 4,28 g/t) and Randfontein (5,29  
g/t to 5,06 g/t) are simply statistical deviations from the optimum mining      
grades at those operations. The most significant drop in grade (7,6 g/t - 7,0   
g/t) occurred, as predicted, at Free Gold (50% JV with ARMGold). The inclusion  
of St Helena for the first time masks the planned grade reduction at Free Gold  
to its long-term sustainable grade of 7,2 g/t to 7,4 g/t. Grade underperformance
at Evander and Elandsrand is receiving attention and is expected to be corrected
in the medium term.                                                             
Cash operating costs decreased by 2% or R38 million from R1 687 million to R1   
649 million quarter on quarter. In cost terms, the operations performed well,   
despite South African inflation reaching a recent high of 12%. Rand/tonne costs 
decreased by 4% from R244/tonne to R235/tonne. Despite the 3% decrease in       
overall production, 24 078 kgs compared to 24 774 kgs previously, R/kg costs    
remained flat at R68 500.                                                       
The effects of the appreciation of the South African Rand is clear with Dollar  
cash costs increasing from US$204/oz using a R10,39 exchange rate to US$222/oz  
at R9,61 to the Dollar.                                                         
Gold price and South African Rand performance                                   
The increase in the US Dollar price of gold (2%) helped despite the fact that   
the 8% stronger rand has seen our price received drop to just over R100 000/kg. 
The rising Dollar gold price is great news as it reflects interest from         
investors and speculators in gold as an alternative investment, hedging         
themselves against the current uncertainty in world markets. The current Dollar 
weakness is as always good for the gold price.                                  
It is pleasing to see gold trading above US$350,00 per ounce as this shows there
is solid support for gold at these levels and in the continued absence of       
significant hedging activities, we could see the gold price supported at these  
levels.                                                                         
Concerns that a gold price of above US$350/oz would see producers returning to  
their bad habits of hedging has been shown to be unfounded. The low interest    
rate environment resulted in a low gold contango and not even the most prolific 
hedgers are prepared to continue to ignore the clearly expressed wishes of      
investors when the potential benefits of hedging is negligible. Exotic financial
instruments are out of favour with investors and simple ("vanilla") hedging is  
not worth the risk of further alienating investors who want exposure to a rising
gold price. The record long positions held by speculators show that they expect 
the two year rising trend to continue.                                          
However, from a South African perspective, the benefits from the increase in   
the US Dollar gold price have been eroded by the strengthening of the SA Rand.  
The South African Rand is well known for its volatility. During 2002 it was the 
strongest currency against the Dollar in the world. Although the Rand has       
strengthened to R8,50 to the Dollar, it is our view that it will tend to        
depreciate for the remainder of 2003.                                           
Harmony is renowned for its cost control and we will continue to focus on       
working costs to retain the competitive advantage we built up during the time   
that the Rand price of gold was higher.                                         
To buy or to build?                                                             
Harmony has been a phenomenal growth story over the past seven years. The       
initial two years was a period of survival, establishing the profitability of   
the company and preparing for growth. Market conditions, i.e. the declining US  
Dollar gold price and shrinking profit margins of mainly the South African gold 
producers, positioned the company ideally for our strategy of growth through    
acquisitions. The cost of acquiring marginal operations when compared to the    
cost of developing greenfields projects was low and affordable to Harmony at the
time.                                                                           
With the 23 acquisitions that we have completed to date came a portfolio of     
probably the most prospective shallow to medium depth mining project areas      
remaining in South Africa, at no cost. The returns from these acquisitions have 
been spectacular.                                                               
Return on investments                                                           
                            Acquisition cost  Cash operating profit             
Project/Operation                      (R`m)                  (R`m)             
Evander - June `98                       415                  1 190             
Randfontein - Dec` 00                    750                  1 590             
Elandskraal - Mar` 01                    988                    651             
Free Gold (50%) - Dec `01              1 350                    916             
The rising gold price may mean that now is not the smartest time to be buying   
growth opportunities. At these prices excellent returns are available from      
internal or organic growth projects which your company today owns. A simple     
example will demonstrate my point.                                              
                          Doornkop South Reef   Free Gold Tshepong              
                                     (74% JV)             (50% JV)              
Project Status                       Approved             Approved              
Acquisition Cost                        -$26m                  Nil              
                             sold 26%) to BEE                                   
Construction cost                       $134m                 $30m              
Total capital                           $108m                 $30m              
Ounces recoverable                   3,75m oz             1,25m oz              
Capital Cost/oz                        $29/oz               $24/oz              
Total Cash Cost @                     $190/oz              $160/oz              
R9,5/$                                                                          
Total Cost                            $219/oz              $184/oz              
Gold Price                            $350/oz              $350/oz              
Profit Margin                  $131/oz or 37%       $166/oz or 47%              
(Exchange rate of US$1,00 = R9,50)                                              
Projects that have been evaluated and will yield excellent returns under the    
current gold price environment are:                                             
i.   Doornkop South Reef Project, Randfontein - approved                        
The detailed project which was announced on 22 January 2003, will allow for     
significant production growth at Randfontein.                                   
It is estimated that the South Reef project has an in situ resource of 6,6      
million ounces. For project purposes, it is estimated that 117 tonnes or 3,75   
million ounces of gold will be recovered from the resource at a recovery grade  
of 6,37g/t.                                                                     
The life of the project will be 20 years with gold production building up from  
approximately 9 000 ounces in the first year to    42 000 ounces in year four.  
After year four, gold production will increase rapidly to approximately 330 000 
ounces per annum for 10 years, whereafter it will start declining. The estimated
capital expenditure using July 2002 as a base, is R1 270 million with a maximum 
funding requirement of R500 million. Using a gold price of R95 000/kg the       
project has a NPV of R876 million (real discount rate of 7,5%) and IRR of 48%.  
At the full production level of 330 000 oz/annum, 2 798 employment opportunities
will have been created.                                                         
In line with an undertaking to ensure compliance with the Mineral and Petroleum 
Resources Development Bill, 26% of the project has been offered to Africa       
Vanguard Resources (Doornkop) (Pty) Limited for a consideration of R250 million.
In terms of the sale agreement AVR acquires 26% of the Doornkop mineral rights  
with payment being R140 million in cash and R110 million in call options on 290 
000 oz of gold. (The 290 000 oz of gold being equal to 16% of the gold produced 
at Doornkop during the first 10 years).                                         
The project will be managed as a joint venture in which Randfontein will fund   
all the project capital. The profits will be shared, 84% to Randfontein and 16% 
to AVR.                                                                         
ii.  Tshepong North Decline Project at Free Gold                                
The project involves the sinking of a decline, at a cost of approximately R280  
million, from the bottom of the current shaft system. The project returns a     
robust NPV of R765 million (discount rate of 10%) and an IRR of 51%. An area    
comprising approximately     1 210 000 m at 1 300 cmg/t containing 39 tonnes of 
recoverable gold will be accessed.                                              
Production rates of 49 000 tonnes per month at an average grade of 8,8 g/t will 
add an additional 5 194 kgs (167 000 oz per annum) to the current production    
profile of the Tshepong North mine. The upgrading of the current infrastructure 
commences in March 2003 and the shaft will reach full production in July 2007.  
Some 980 employment opportunities will be created through this project.         
iii. Tshepong South Shaft at Free Gold - commissioning of new shaft             
infrastructure                                                                  
The project was started by AngloGold in October 1993 and sinking commenced      
during February 1994. The project was subsequently twice suspended, in August   
1995 and again in mid-1999. The shaft has been completed to 120 metres from full
design depth. The shaft was designed to hoist 80 000 tonnes of reef per month at
a recovered grade of 7,24 g/t over a 19 year period, producing 106 tonnes of    
gold at an average of 6 843 kgs or 220 000 oz/annum.                            
A proposal on the project will be presented to the Freegold board during the    
following quarter.                                                              
iv.  Joel North Shaft Project - getting to understand the orebody               
Joel mine has had a chequered history, not delivering the returns originally    
planned. Since the acquisition thereof by Freegold from AngloGold, the          
operations were immediately restructured for optimal profitability.             
Although underground tonnage decreased significantly, the ensuing profitability 
allowed the re-evaluation of the orebody available for mining.                  
Although the process to re-evaluate the current Joel North Shaft projectis at an
early stage, we are slowly becoming comfortable with the orebody. Joel`s current
results warrant a re-look at the viability of this resource.                    
v.   Evander - growth projects being evaluated                                  
Much has been said about the Poplar and Roslpruit project areas which were      
included in the acquisition of Evander in 1998 at no cost.                      
The Poplar Project is a greenfields area, which contains 10,8 million ounces of 
gold. A feasibility study which evaluates the exploration of this perspective   
orebody, through a twin shaft system from surface to a depth of 1 200 metres    
below surface, is currently underway.                                           
The resource from the Rolspruit Project which is contiguous to Evander 8 Shaft  
is situated between 1 535m to 2 515m below surface. Various options are         
currently being evaluated to exploit this geological resource of 17,4 million   
ounces of gold.                                                                 
Strategic investments                                                           
In line with our growth strategy it has in the past, and definitely will in the 
future, become necessary for the company to make strategic investments in       
corporate entities. To date these activities have seen Harmony establish a      
sizeable international production base.                                         
i.   Investment in Goldfields Limited of Australia                              
The company`s acquisition of a 21% stake in Goldfields Limited of Australia at a
cost of R165 million, which was concluded in February 2000, is a good example of
making good returns from strategic investments. The South African exchange rate 
and funding constraints at the time resulted in the cost of acquiring Goldfields
Limited of Australia being too high for Harmony. The additional investment by   
Harmony of R60 million and subsequent corporate activity with Delta and Placer  
Dome has seen the value of our initial R225 million investment increasing to    
R855 million.                                                                   
The investment in Goldfields was a step in the phased approach in building a    
sizeable operational base in Australia.                                         
Subsequent corporate activity with New Hampton and Hill 50 has established the  
Australasian production base of the company to the current level of             
approximately 20% or 580 000 oz per annum.                                      
ii.  Bendigo                                                                    
The 32% stake, which the company acquired on 14 December 2001, at a cost of A$50
million, is currently valued at A$83 million.                                   
Initial sampling of the D3 and S3 orebodies has been completed. Bulk samples are
currently being processed. Results to date confirm the existence of the robust  
but highly variable orebodies that were predicted in the original reports. The  
underground development is on schedule but the surface treatment has been       
unnecessarily delayed by bureaucratic environmental issues relating to tailings 
and water discharge, which has since been overcome.                             
Harmony has until 31 December 2003 to exercise an A$104 million option to take a
+ 50% control of the company and develop the mine.                              
iii. The listing of Highland Gold Limited                                       
On 18 December 2002, Highland Gold Limited successfully listed on AIM           
("Alternative Investment Market of London Stock Exchange plc").                 
Highland Gold is the owner of Mnogovershinoe ("MNV"), Russia`s fourth largest   
producing gold mine in 2001, as well as two development projects - Darasun and  
Novoshirokinskoye which together comprise four gold deposits.                   
MNV estimated a production target of 175 000 oz for 2002 and has proven and     
probable reserves of 2,3 million ounces. Measured, indicated and inferred       
resources total 3,0 million ounces of gold. Of the above 31% is for our account.
Highland Gold believes that the abundance of natural resources and the recent   
positive developments in the Russian gold industry will provide an opportunity  
for the company to establish a portfolio of Russian gold projects.              
The acquisition of a 31% at US$18,9 million stake in Highland Gold on 29        
September 2002 and subsequent investment of US$7,5 million allows for a         
promising entry point for Harmony into the re-emerging Russian gold sector. Our 
total investment of US$26,4 million is currently valued at approximately US$134 
million.                                                                        
iv.  Acquiring a 21% stake in High River Gold Mines Limited                     
On 21 November the company completed the acquisition of 17 074 861 ordinary     
shares, or a 21% interest, of High River Gold. High River Gold (TSA:HRG) is a   
Toronto based company with gold interests in Russia, Canada and West Africa.    
The total purchase consideration amounted to R141 million (US$14,5 million)     
which represented a 16% discount on the weighted average share price for the 30 
day trading period prior to the execution of the agreement. Following a         
significant rise in the High River share price our investment is now valued at  
approximately US$24 million.                                                    
The principle assets of High River Gold are:                                    
* a 53% equity interest in OJSC Buryatzoloto, the 5th largest gold producer in  
Russia, with two operating mines producing approximately 150 000 oz per year,   
* a 100% interest in the Berezitovoye Project, which is a deposit amenable to   
low cost open-pit mining,                                                       
* a 50% interest and joint operatorship of the New Britannia gold mine situated 
in Manitoba Canada, producing approximately 110 000 oz per year, and            
* an 80% interest in the Taparko gold project in Bukino Faso which has a gold   
resource of approximately 1 million ounces.                                     
Kalplats - metallurgical results feedback by end March 2003                     
Our Kalplats project is progressing well with an amount of R8,5 million spent   
during the quarter. The programme to collect bulk samples will be completed by  
the end of January 2003 to fit in with the work schedule of the Mintek pilot    
plant. Results from the pilot plant flotation tests are expected by the end of  
the March quarter.                                                              
Based on the outcome of these tests we will be taking a decision on the mining  
of the orebody and whether any further activities will be undertaken to enhance 
our understanding and valuation of the demarcated 5 orebodies.                  
An agreement on HIV/AIDS - Harmony declares war on AIDS                         
On 19 September 2002, Harmony, the National Union of Mineworkers (NUM) and the  
United Association of South Africa (UASA) entered into an historical agreement  
whereby the stakeholders will develop and maintain programmes to reverse the    
impact of HIV/AIDS.                                                             
The objectives are:                                                             
* reducing the number of infections among employees and consequently their      
families and communities,                                                       
* to ensure that the rights of employees living with HIV/AIDS are upheld and in 
compliance with existing legislation,                                           
* to create a conducive environment in the workplace for dealing with the       
epidemic constructively, and                                                    
* to ensure that the parties remain committed to the health, safety and well    
being of employees in relation to HIV/AIDS by implementing HIV/AIDS programmes. 
Activities which have been identified to assist in achieving these objectives   
are; focussing on prevention, ongoing counselling, appointment of a Group       
HIV/AIDS Co-ordinator, adequate medical care and access to medical facilities.  
Progress will be monitored, evaluated, reviewed and adjusted accordingly.       
Social Plan                                                                     
Much has been said about the Social Plan, which forms part of the Mineral and   
Petroleum Resources Development Bill.                                           
The Social Plan, which emphasises the tripartite relationship between           
government, the company and the respective unions, calls for stakeholders to be 
proactive in devising strategies to deal with:                                  
* skills development of current employees,                                      
* retraining of employees to be retrenched, and                                 
* the redeployment of employees to their communities in a way through which     
social upliftment is achieved.                                                  
Harmony, which focuses on all matters of sustainable development, sees this as  
an opportunity to contribute to the alleviation of the social and economic      
impact on individuals and the economies of the regions in which we operate.     
In addition, the company will participate in:                                   
* re-aligning procurement activities to allow for broader participation for new 
entrants, and                                                                   
* the promotion and support of economic activities in mining communities that   
will ensure sustainability of those regional economies beyond mine closure.     
Expanding our beneficiation activities                                          
i.   Musuku to deliver value downstream                                         
On 11 December 2002 the company announced that it had entered into an agreement 
with Mintek, the leader in minerals and metals technology in South Africa, to   
create Musuku Beneficiation Systems. Musuku means gold in the Venda language.   
Musuku combines the business management systems and practices that have been    
established at the Harmony refinery and the specialised refining technologies   
from Mintek, thereby potentially integrating value-adding processes into the    
company and the gold industry.                                                  
This relationship is expected to unlock significant value in the value chain of 
the precious metals industry and help South Africa and the company to gain a    
significant position in the downstream value-adding industries such as jewellery
manufacturing and industrial applications for precious metals.                  
ii.  The Lord of the Rings Project - spreading the benefits                     
The company was successful in acquiring the rights to distribute various gold   
products associated with the "Lord of the Rings" trilogy in the United States,  
Canada and South Africa.                                                        
The products have been extremely popular with sales increasing as market        
awareness of the product range has increased.                                   
Benefits from our involvement have been extended to our communities in the Free 
State region with both the Virginia Jewellery School and Emthuthwini, a local   
jewellery manufacturer, supplying Harmony with finished products for            
international distribution. Employment opportunities have been created and      
significant skills transfer is taking place. This success has enhanced our      
initiative of establishing a jewellery manufacturing hub, focussing on the      
international market, in the Free State goldfields.                             
QUARTERLY OPERATIONAL REVIEW                                                    
A quarter on quarter cash operating profit analysis of the various operations is
as follows:                                                                     
Total cash operation profit (R`million)                                         
Operations               Dec 2002  Sept 2002   Variance R`m                     
Free State                    117        190           (73)                     
Evander                        88        101           (13)                     
Randfontein                   180        200           (20)                     
Elandskraal                    70        105           (35)                     
Kalgold                        17         25            (8)                     
Australian Operations          92        100            (8)                     
Sub-total                     564        721          (157)                     
Free Gold (50%)               199        229           (30)                     
Total                         763        950          (187)                     
Free State Operations - leveraged to the gold price                             
The Free State operations reported a 39% decrease in cash operating profits from
R190,0 million to R116,5 million. Underground tonnage milled decreased from 1   
105 000 tonnes to 1 053 000 tonnes. The lower tonnage at a lower underground    
recovery grade of 4,28 g/t compared to the 4,41 g/t reported previously resulted
in a 7% net decrease in overall gold recovered, down from 5 104 kgs to 4 740    
kgs.                                                                            
In line with the lower tonnage working costs decreased by 3% with expenditure of
R375,6 million compared to R388,5 million for the September 2002 quarter. Whilst
underground unit costs in Rand terms were similar the lower grade resulted in   
cost/kg increasing by 3% to R78 708/kg.                                         
Evander Operations - great team effort achieves further improvements            
Evander continued with its operational recovery following the adverse effects of
the seismic event in the second half of 2002. Cash operating profits decreased  
by 14% from R101,2 million to R87,5 million, the main contributing factor being 
the lower gold price and a lower recovery grade.                                
Underground tonnages increased by 10% from 477 000 tonnes to 526 000 tonnes. The
benefit from the increased tonnage was negated by a lower recovery grade of 5,33
g/t compared to 5,74 g/t for the previous period. The net result being a 3%     
increase in gold production. Actual working costs increased by only 3% from     
R190,4 million to R196,8 million.                                               
When measured in R/kg terms, working costs increased marginally from R68 857/kg 
to R69 360/kg and in R/tonne terms decreased by 8% from R374/tonne to           
R345/tonne.                                                                     
Randfontein Operations - a good quarter                                         
Despite slightly lower grades, an increase in volumes resulted in Randfontein   
continuing with its excellent operational performance, returning a cash         
operating profit of R179,7 million, down 10% from the R199,7 million reported   
for the September 2002 quarter.                                                 
Underground tonnage milled increased from 758 000 tonnes to 768 000 tonnes. At a
lower recovery grade of 5,06 g/t compared to the 5,29 g/t reported previously,  
the operations reported lower underground gold recovery at 3% or 3 887 kgs.     
Excellent cost control resulted in working costs decreasing by 8%, from R260,2  
million to R240,6 million. When measured in R/kg terms, working costs decreased 
by 4% from R59 583/kg to R57 350/kg.                                            
In R/tonne terms, working costs decreased by 8% from R312/tonne to R286/tonne.  
Capital expenditure following the announcement of the Doornkop South Reef       
Project is expected to increase from R6 million in the December 2002 quarter to 
R31 million for the March 2003 quarter.                                         
Elandskraal Operations - recovery underway                                      
The Elandskraal operations after experiencing a tough September quarter is      
showing the signs that recovery is underway and more improvements can be        
expected. Although operating profits of R70 million were 33% lower compared to  
R104,8 million achieved during the September 2002 quarter, the adverse variance 
can mainly be attributed to gold price weakness and below average grades.       
Underground tonnage was 5% higher at 479 000 compared to 458 000 tonnes reported
previously. Despite the increased volumes, working costs were lower at R234,0   
million.                                                                        
Underground recovery grades were still low at 6,00 g/t, gold produced being 4%  
lower at 2 876 kgs compared to the 2 998 kgs for the September 2002 quarter.    
The higher tonnage at no increase in costs favourably impacted on working costs 
in R/tonne terms with these costs being 5% lower at R468/tonne. When measured in
R/kg terms, working costs increased by 4% from R75 076/kg to R77 890/kg due to  
the lower grade.                                                                
The R1,4bn Shaft Deepening Project or "new Elandsrand mine project" is          
progressing very well. An amount of R396 million remains as expenditure over a  
period of 4 years. Activities are mainly limited to the development of the four 
haulages to the higher grade pay shoot which has a resource of 26 million tonnes
at 1 067 cmg/t containing 210,8 tonnes of gold. It is planned to recover 152,8  
tonnes (4,9 million ounces) of gold over the project lifetime of 18 years.      
Scheduling to access the pay shoot is as follows:-                              
102 Level on reef                        -   May 2002                           
102 Level ledging for mining commences   -   May 2003                           
105 Level on reef                        -   December 2003                      
105 Level ledging for mining commences   -   December 2004                      
109 Level on reef                        -   June 2005                          
109 Level ledging for mining commences   -   June 2006                          
113 Level on reef                        -   June 2007                          
113 Level ledging for mining commences   -   June 2008                          
Free Gold Operations - good performance, excellent growth opportunities         
The Free Gold Joint Venture operations reported a 13% decrease in cash operating
profit with Harmony`s 50%, down from R229,1 million to R199,1 million. The      
strong rand resulted in a negative variance of R23 million.                     
The Free Gold Joint Venture took control of the St Helena assets on 29 October  
2002. In terms of the agreement concluded on 24 May 2002, the venture acquired  
these assets for a gross sale consideration of R120 million. In addition, a     
royalty of 1% would be payable for a period of 48 months from the effective     
date.                                                                           
St Helena was included for the first time and added 100 000 tonnes and 463      
kilograms at a cost of some R46,5 m to the Free Gold results. (Of this, 50% is  
included in our Free Gold results). It is expected that 3 to 6 months will be   
required to stabilise and restructure the St Helena operations, but higher      
volumes and grades should see it starting to contribute significantly to Free   
Gold`s results.                                                                 
Excluding St Helena, Free Gold had a good, steady quarter. On a 50% attributable
basis underground volume was up 25 000 tonnes or 4,7% to 565 000 tonnes. As     
expected the comparable grade was reduced from 7,62 g/t to a more sustainable   
7,25 g/t (-4,8%). Despite higher volumes cost increases were contained to only  
R7,3 million (3,3%).                                                            
The March quarter will be slightly affected by the Christmas break, but on the  
positive side we should see the implementation of continuous operations on all  
the Free Gold shafts.                                                           
Tonnages from surface were again lower in volume, but a 17% increase in recovery
grade resulted in a higher net recovery of 300 kgs.                             
Significant operational improvements have been made at Free Gold since          
acquisition thereof in December 2001. At Bambanani mine no underground fires    
have been reported over the past 12 months. By optimising the ventilation       
reticulation, more productive working environments have been created.           
Joel mine experienced no reportable injuries for the past 7 consecutive months. 
In order to firm up on our understanding of the Joel orebody, increased         
development charges to the extent of R40,00/tonne have been incurred. This      
approach is similar to our actions undertaken at all our operations.            
Tshepong mine continues to make excellent operational improvements, with its    
latest success being the achievement of a record 39 000 m2 in December 2002.    
Other measurements reflected this achievement with 24,4 m2/stope man, 11,4      
m2/total employee costed and 5,4/m development man being reported.              
In respect of surface operations cost savings of R20 million per quarter were   
made by optimising current plant infrastructure.                                
Hospital treatment cost, both in actual and in unit cost terms, have been       
reduced by more than half since acquisition.                                    
The Free Gold operations are now well balanced in terms of operational          
efficiency and optimisation of the orebody. The successes achieved at Free Gold 
in respect of mining to the average grade of the orebody and with the benefit of
a lower working cost structure have positioned these operations for further     
production growth. A number of projects are currently being evaluated and       
announcements will be made in due course.                                       
Australian Operations - aggressively delivering into inherited hedgebooks       
The effect of significant movements in the gold price, the A$:US$ exchange rate 
and the R:US$ exchange rate during the quarter makes the financial results for  
the December quarter for the Australian operations not comparable with the      
September results.                                                              
Gold production at 4 021 kgs was 8% below that of September 2002 and the gold   
price received was 5% lower at R96 525/kg. Total costs however decreased by 14% 
resulting in a net cash operating profit of R92,3 million, a decrease of 8% on  
the previous quarter.                                                           
Harmony, being unhedged by choice, has in place a policy to reduce the hedge    
books we inherited from both New Hampton and Hill 50 as soon as possible. The   
best way for us to achieve this is to aggressively deliver into these hedges.   
Our operations saw very little benefit from the improvement in the Australian   
spot gold price in the quarter as more than 85% of our production was delivered 
into our hedging contracts. We intend to continue to deliver into the           
outstanding hedge positions.                                                    
In the last quarter, a total of 537 500 oz of lease rate swaps were fixed or    
closed out because of favourable market movements. Total outstanding lease rate 
swap commitments now stand at 1,4 million oz and this number will reduce as     
these swaps amortise, or if market conditions permitting they will be closed    
out. The close-outs were completed at zero cost.                                
The quarter`s operational results can be summarised as follows:                 
* a generally steady performance from our large range of open pit operations    
across the 3 sites.                                                             
* underground operations at Big Bell, Mount Marion (South Kal) and Star (Mt     
Magnet) generally produced well, but the good production and grades that were   
achieved from the Hill 50 mine in the September quarter did not follow through  
into December.                                                                  
Progress with development initiatives can be summarised as follows:             
* Mt Magnet - as we will achieve a better financial result by continuing with   
our existing truck haulage strategy a decision was taken not to proceed with the
A$21 million (R110 million) shaft at Hill 50. This will be possible by upgrading
the equipment over a period of 8 months to incorporate new "Road Train"         
technology.                                                                     
Excellent exploration results have significantly improved both the tonnage and  
grade potential of the Water Tank Hill area next to the town of Mount Magnet.   
This area will in due course yield 3 open pits and a profitable underground     
operation from the reserve of 150 000 oz delineated to date. Development in this
area is currently constrained by delays in moving some of the town`s            
infrastructure.                                                                 
* South Kal - the first ore production has started from the new Lake Cowan      
complex to the south of our South Kal operations. Initial feasibility studies of
a "super pit" concept at Hampton Boulder shows a marginal four year project     
which could become more exciting if current gold prices prevail. The feasibility
studies should be completed during this quarter.                                
Capital Expenditure                                                             
                                Actual    Forecast                              
                         December 2002  March 2003                              
Free State                          34          31                              
Evander                             27          34                              
Randfontein                          2          31                              
Elandskraal                         41          34                              
Kalgold                              6           4                              
Free Gold (50%)                     12          10                              
Australian Operations               58          60                              
Total                              180         204                              
Notice of interim dividend                                                      
A dividend No.76 of 125 cents per ordinary share, being the interim dividend for
the six month period ended 31 December 2002, has been declared payable on 3     
March 2003 to those shareholders recorded in the books of the company at the    
close of business on 28 February 2003.                                          
The dividend is declared in the currency of the Republic of South Africa.       
Payment will be made on 3 March 2003.                                           
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 21   
February 2003.                                                                  
No dematerialisation or rematerialisation of share certificates may occur       
between 24 February 2003 and 28 February 2003, both dates inclusive, nor may any
transfers between registers take place during this period.                      
This announcement will be mailed to all shareholders recorded in the register on
or about 31 January 2003.                                                       
Last date to trade ordinary shares cum dividend   21 February 2003              
Ordinary shares trade ex dividend                 24 February 2003              
Record date                                       28 February 2003              
Payment date                                          3 March 2003              
By order of the board                                                           
A le Roux                                                 Virginia              
Acting company secretary                           24 January 2003              
Operating and Financial Results (Rand/Metric)                                   
                          Free    Free                     Rand-                
                         State   State  Evander Evander  fontein                
U/g Surface      U/g Surface      U/g                
Ore milled     Dec-02    1 053     332      526      44      768                
- t`000        Sep-02    1 105     220      477      32      758                
Gold           Dec-02    4 507     233    2 804      33    3 887                
produced - kg  Sep-02    4 872     232    2 739      26    4 010                
Yield - g/t    Dec-02     4,28    0,70     5,33    0,75     5,06                
               Sep-02     4,41    1,05     5,74    0,81     5,29                
Cash                                                                            
operating      Dec-02   78 708  89 742   69 289  75 394   56 562                
costs - R/kg   Sep-02   76 504  67 772   68 714  83 962   58 945                
Cash                                                                            
operating                                                                       
costs          Dec-02      337      63      369      57      286                
- R/tonne      Sep-02      337      71      395      68      312                
Working                                                                         
revenue        Dec-02  468 760  23 430  280 987   3 280  389 511                
(R`000)        Sep-02  553 968  24 505  288 766   2 767  422 508                
Cash                                                                            
operating      Dec-02  354 738  20 910  194 285   2 488  219 855                
costs (R`000)  Sep-02  372 728  15 723  188 207   2 183  236 371                
Cash                                                                            
operating      Dec-02  114 022   2 520   86 702     792  169 656                
profit (R`000) Sep-02  181 240   8 782  100 559     584  186 137                
                         Rand-  Elands-  Elands-               Free             
Ore milled     Dec-02  fontein    kraal    kraal  Kalgold      Gold             
- t`000        Sep-02  Surface      U/g  Surface Opencast       U/g             
Gold           Dec-02      498      479      248      267       615             
produced - kg  Sep-02      460      458      231      252       540             
Yield - g/t    Dec-02      308    2 876      161      617     4 331             
               Sep-02      357    2 998      180      581     4 113             
Cash                      0,62     6,00     0,65     2,31      7,04             
operating      Dec-02     0,78     6,55     0,78     2,31      7,62             
costs - R/kg   Sep-02                                                           
Cash                    67 295   77 890   61 963   71 580    56 498             
operating               66 739   75 076   57 583   62 800    51 920             
costs          Dec-02                                                           
- R/tonne      Sep-02                                                           
Working                     42      468       40      165       398             
revenue        Dec-02       52      491       45      145       395             
(R`000)        Sep-02                                                           
Cash                    30 810  288 207   16 026   61 365   431 632             
operating      Dec-02   37 345  321 278   18 981   61 472   433 181             
costs (R`000)  Sep-02                                                           
Cash                    20 727  224 013    9 976   44 165   244 692             
operating      Dec-02   23 826  225 078   10 365   36 487   213 545             
profit (R`000) Sep-02                                                           
                        10 083   64 194    6 050   17 200   186 940             
                        13 519   96 200    8 616   24 985   219 636             
Ore milled     Dec-02     Free Australian                                       
- t`000        Sep-02     Gold Operations                                       
Gold           Dec-02  Surface      Total      Total                            
produced - kg  Sep-02      509      1 676      7 015                            
Yield - g/t    Dec-02      557      1 836      6 926                            
               Sep-02      300      4 021     24 078                            
Cash                       281      4 385     24 774                            
operating      Dec-02     0,59       2,40       3,43                            
costs - R/kg   Sep-02     0,50       2,39       3,58                            
Cash                                                                            
operating               58 930     73 565     68 500                            
costs          Dec-02   71 544     78 162     68 110                            
- R/tonne      Sep-02                                                           
Working                                                                         
revenue        Dec-02       35        176        235                            
(R`000)        Sep-02       36        187        244                            
Cash                                                                            
operating      Dec-02   29 785    388 129  2 411 922                            
costs (R`000)  Sep-02   29 600    443 148  2 637 519                            
Cash                                                                            
operating      Dec-02   17 679    295 804  1 649 332                            
profit (R`000) Sep-02   20 104    342 741  1 687 358                            
                        12 106     92 325    762 590                            
                         9 496    100 407    950 161                            
Prepared in accordance with International Accounting Standards.                 
Total Operations - financial results (Rand/Metric)                              
   6 Months     6 Months                     Quarter      Quarter               
      ended        ended                       ended        ended               
31 Dec       31 Dec                      31 Dec      30 Sept               
       2001         2002                        2002         2002               
     10 034       13 941  Ore milled -         7 015        6 926               
                          t`000                                                 
37 465       48 852  Gold produced       24 078       24 774               
                          - kg                                                  
     81 199      103 362  Gold price         100 171      106 463               
                          received - R /                                        
kg                                                    
     63 473       68 302  Cash operating      68 500       68 110               
                          costs - R / kg                                        
  R million    R million                   R million    R million               
3 057        5 049  Gold sales           2 412        2 638               
      2 390        3 337  Cash operating       1 649        1 687               
                          costs                                                 
        667        1 713  Cash operating         763          950               
profit                                                
      (105)        (271)  Amortisation         (121)        (150)               
      (137)           77  Mark-to-market          12           65               
                          of financial                                          
instruments                                           
          -         (21)  Rehabilitation        (11)         (10)               
                          cost provision                                        
       (24)         (27)  Employment            (15)         (12)               
termination                                           
                          costs                                                 
         16          101  Other income -          53           48               
                          net                                                   
(79)        (119)  Interest paid         (60)         (59)               
       (28)         (58)  Corporate                                             
                          marketing and                                         
                          new business          (30)         (28)               
expenditure                                           
       (23)         (57)  Exploration           (27)         (30)               
                          expenditure                                           
          -          469  Profit on sale           -          469               
of Aurion Gold                                        
                          shares                                                
        246        (506)  Mark-to-market         105        (611)               
                          of listed                                             
investments                                           
        533        1 301  Profit before          669          632               
                          taxation                                              
                          South African                                         
normal                                                
                          taxation                                              
      (103)        (245)  - Current tax         (87)        (158)               
       (29)        (173)  - Deferred tax       (125)         (48)               
401          883  Net earnings           457          426               
                          Adjustments:                                          
       (12)         (16)  - Profit on           (11)          (5)               
                          sale of                                               
property,                                             
                          plant and                                             
                          equipment                                             
        389          867  Headline               445          422               
earnings                                              
                          Earnings per                                          
                          share - cents*                                        
      270.0        508.8  - Basic              261.8        247.0               
earnings                                              
      263.0        499.5  - Headline           255.2        244.2               
                          earnings                                              
      267.3        500.3  - Fully              257.4        242.7               
diluted                                               
                          earnings **                                           
       75.0        125.0  Dividends per            -            -               
                          share -                                               
(cents)                                               
Prepared in accordance with International Accounting Standards.                 
 *   Calculated on weighted number of shares in issue at quarter end December   
2002:  174,4 million (September 2002: 172,6 million). Calculated on weighted    
number of shares in issue at 6 months ended December 2002 (173,5 million).      
(December 2001: 149,1 million)                                                  
**   Calculated on weighted average number of diluted shares in issue at quarter
ended December 2002: 177,4 million (September 2002: 175,6 million). Calculated  
on weighted number of diluted shares in issue at 6 months ended December 2002   
(December 2001: 150,0 million)                                                  
Abridged balance sheet (Rand)                                                   
                                    At              At             At           
31 December    30 September    31 December           
                                  2002            2002           2001           
                             R million       R million      R million           
Employment of capital            8 945           9 434          5 868           
Mining assets after                                                             
amortisation                                                                    
Investments                      1 409           1 133            694           
Net current                                                                     
(liabilities)                                                                   
  (excluding cash)               (431)           (599)          (447)           
Short-term investments                                                          
- Aurion Gold                        -               -            489           
- Placer Dome                      723             746              -           
Cash                             1 439           1 626          1 213           
Total assets                    12 085          12 340          7 817           
Capital employed                                                                
Shareholders` equity             7 863           7 848          4 929           
Loans                            2 009           2 095          1 338           
Long-term provisions               697             725            475           
Unrealised hedging loss            736             854            664           
Deferred tax                       779             819            411           
Total equity and                12 085          12 340          7 817           
liabilities                                                                     
Basis of Accounting                                                             
The unaudited results for the quarter and 6 months ended have been prepared on  
the International Accounting Standards basis. The accounting policies are       
consistent with those applied in the previous financial year.                   
Issued share capital: 174,6 million ordinary shares of 50 cents each.           
September 2002: (174,4 million) (December 2001: 149,1 million)                  
Operating and financial results (US$/Imperial)                                  
                          Free    Free                                          
                         State   State  Evander Evander                         
U/g Surface      U/g Surface                         
Ore milled     Dec-02    1 161     366      580      49                         
- t`000        Sep-02    1 219     243      526      35                         
Gold                                                                            
produced       Dec-02  144 903   7 491   90 150   1 061                         
- oz           Sep-02  156 638   7 459   88 060     836                         
Yield          Dec-02    0,125   0,020    0,155   0,022                         
- oz/ton       Sep-02    0,128   0,031    0,167   0,024                         
Cash                                                                            
operating      Dec-02      255     290      224     244                         
costs - $/oz   Sep-02      229     203      206     251                         
Cash                                                                            
operating      Dec-02       32       6       35       5                         
costs - $/t    Sep-02       29       6       34       6                         
Working                                                                         
revenue        Dec-02   48 778   2 438   29 239     341                         
($`000)        Sep-02   53 317   2 359   27 793     266                         
Cash                                                                            
operating      Dec-02   36 913   2 176   20 217     259                         
costs ($`000)  Sep-02   35 874   1 513   18 114     210                         
Cash                                                                            
operating      Dec-02   11 865     262    9 022      82                         
profit ($`000) Sep-02   17 443     846    9 679      56                         
                      Rand-   Rand-  Elands- Elands-  Kalgold      Free         
fontein fontein    kraal   kraal    Open-      Gold         
                        U/g Surface      U/g Surface     cast       U/g         
Ore milled   Dec-       847     549      528     273      294       678         
             02                                                                 
- t`000      Sep-       836     507      505     255      278       595         
             02                                                                 
Gold                                                                            
produced     Dec-   124 969   9 902   92 465   5 176   19 837   139 244         
02                                                                 
- oz         Sep-   128 924  11 478   96 387   5 787   18 679   132 235         
             02                                                                 
Yield        Dec-     0,148   0,018    0,175   0,019    0,067     0,205         
02                                                                 
- oz/ton     Sep-     0,154   0,023    0,191   0,023    0,067     0,222         
             02                                                                 
Cash                                                                            
operating    Dec-       183     218      252     201      232       183         
             02                                                                 
costs - $/oz Sep-       176     200      225     172      188       155         
             02                                                                 
Cash                                                                            
operating    Dec-        27       4       44       4       16        38         
             02                                                                 
costs - $/t  Sep-        27       5       43       4       13        35         
02                                                                 
Working                                                                         
revenue      Dec-    40 532   3 206   29 990   1 668    6 386    44 915         
             02                                                                 
($`000)      Sep-    40 665   3 594   30 922   1 827    5 916    41 692         
             02                                                                 
Cash                                                                            
operating    Dec-    22 878   2 157   23 310   1 038    4 596    25 462         
02                                                                 
costs        Sep-    22 750   2 293   21 663     998    3 512    20 553         
($`000)      02                                                                 
Cash                                                                            
operating    Dec-    17 654   1 049    6 680     630    1 790    19 453         
             02                                                                 
profit       Sep-    17 915   1 301    9 259     829    2 404    21 139         
($`000)      02                                                                 
Free Australian                                       
                          Gold Operations                                       
                       Surface      Total    Total                              
Ore milled     Dec-02      561      1 848    7 734                              
- t`000        Sep-02      614      2 025    7 638                              
Gold                                                                            
produced       Dec-02    9 645    129 278  774 121                              
- oz           Sep-02    9 034    140 980  796 497                              
Yield          Dec-02    0,017      0,070    0,100                              
- oz/ton       Sep-02    0,015      0,070    0,104                              
Cash                                                                            
operating      Dec-02      191        238      222                              
costs - $/oz   Sep-02      214        234      204                              
Cash                                                                            
operating      Dec-02        3         17       22                              
costs - $/t    Sep-02        3         16       21                              
Working                                                                         
revenue        Dec-02    3 099     40 388  250 980                              
($`000)        Sep-02    2 849     42 651  253 851                              
Cash                                                                            
operating      Dec-02    1 840     30 781  171 627                              
costs ($`000)  Sep-02    1 935     32 988  162 403                              
Cash                                                                            
operating      Dec-02    1 259      9 607   79 353                              
profit ($`000) Sep-02      914      9 663   91 448                              
Prepared in accordance with International Accounting Standards.                 
Total Operations - financial results (US$/Imperial)                             
   6 months     6 months                     Quarter      Quarter               
ended        ended                       ended        ended               
     31 Dec       31 Dec                      31 Dec      30 Sept               
       2001         2002                        2002         2002               
     11 064       15 372  Ore milled -         7 734        7 638               
t`000                                                 
  1 210 310    1 570 618  Gold produced      774 121      796 497               
                          - oz                                                  
        274          321  Gold price             324          319               
received - $ /                                        
                          oz                                                    
        213          213  Cash operating         222          204               
                          costs - $ / oz                                        
$million     $million                    $million     $million               
        329          505  Gold sales             251          254               
        257          334  Cash operating         172          162               
                          costs                                                 
72          171  Cash operating          79           91               
                          profit                                                
       (11)         (27)  Amortisation          (13)         (14)               
       (15)            8  Mark-to-market           1            6               
of financial                                          
                          instruments                                           
          -          (2)  Rehabilitation         (1)          (1)               
                          cost provision                                        
(3)          (3)  Employment             (2)          (1)               
                          termination                                           
                          costs                                                 
          2           10  Other income -           6            5               
net                                                   
        (9)         (12)  Interest paid          (6)          (6)               
                          Corporate,                                            
                          marketing and                                         
(3)          (6)  new business           (3)          (3)               
                          expenditure                                           
        (3)          (6)  Exploration            (3)          (3)               
                          expenditure                                           
-           45  Profit on sale           -           45               
                          of Aurion Gold                                        
                          shares                                                
         27         (48)  Mark-to-market          11         (59)               
of listed                                             
                          investments                                           
         57          130  Profit before           69           61               
                          taxation                                              
-  South African                                         
                          normal                                                
                          taxation                                              
       (11)         (24)  - Current tax          (9)         (15)               
(3)         (18)  - Deferred tax        (13)          (5)               
         43           89  Net earnings            48           41               
                          Adjustments:                                          
        (1)          (2)  - Profit on            (1)          (1)               
sale of                                               
                          property,                                             
                          plant and                                             
                          equipment                                             
42           87  Headline                46           41               
                          earnings                                              
                          Earnings per                                          
                          share - cents*                                        
28.0         52.9  - Earnings            27.2         23.8               
       27.0         52.0  - Headline            26.6         23.5               
                          earnings                                              
       26.6         52.1  - Fully               26.8         23.4               
diluted                                               
                          earnings **                                           
        7.0         13.0  Dividends per            -            -               
                          share -                                               
(cents)                                               
Prepared in accordance with International Accounting Standards.                 
Currency conversion rates average for the quarter: December 2002: US$1 = R9,61  
(September 2002: US$1 = R10,39). Currency conversion rates average for 6 months:
December 2002: US$1 = R10,00 (December 2001: US$1 = R10,05).                    
*    Calculated on weighted number of shares in issue at quarter ended December 
2002: 174,4 million (September 2002: 172,6 million) Calculated on weighted      
number of shares in issue for 6 months ended December 2002: 173,5 million.      
(December 2001: 149,1 million)                                                  
**   Calculated on weighted average number of diluted shares in issue at quarter
ended December 2002: 177,4 million (September 2002: 175,6 million). Calculated  
on average number of diluted shares in issue for 6 months ended December 2002:  
176,5 million (December 2001: 150,0 million).                                   
Abridged balance sheet (US$)                                                    
                                    At              At             At           
                           31 December    30 September    31 December           
2002            2002           2001           
                           US$ million     US$ million    US$ million           
Employment of capital                                                           
Mining assets after              1 046             898            471           
amortisation                                                                    
Investments                        165             108             56           
Net current                                                                     
(liabilities)/assets                                                            
(excluding cash)                (50)            (57)           (36)           
Short-term investments                                                          
- Aurion Gold                        -               -             39           
- Placer Dome                       85              71              -           
Cash                               168             155             97           
Total assets                     1 414           1 174            628           
Capital Employed                                                                
Shareholders` equity               920             747            396           
Loans                              235             199            107           
Long-term provisions                82              69             38           
Unrealised hedging loss             86              81             53           
Deferred tax                        91              78             33           
Total equity and                 1 414           1 174            628           
liabilities                                                                     
Prepared in accordance with International Accounting Standards.                 
Issued share capital: 174,6 million ordinary shares of 50 cents each. (September
2002: 174,4 million) (December 2001: 149,1 million)                             
Currency converted at closing rate: December 2002: US$1 = R8,55 (September 2002:
US$1 = R10,51) (December 2001: US$1 = R12,45)                                   
Condensed statement of changes in shareholders` equity (Unaudited)              
At          At            At            At           
                       31 Dec      31 Dec        31 Dec        31 Dec           
                         2002        2001          2002          2001           
                    R million   R million   US$ million   US$ million           
Balance as at the       7 963       4 594           931           369           
beginning of the                                                                
financial year                                                                  
Currency                (454)       (116)          (53)           (9)           
translation                                                                     
adjustment and                                                                  
other                                                                           
Issue of share            213         157            25            13           
capital                                                                         
Net earnings              883         401           103            32           
Dividends paid          (741)       (112)          (87)           (9)           
Balance as at the       7 863       4 924           920           396           
end of December                                                                 
Prepared in accordance with International Accounting Standards.                 
Abridged cashflow statements (unaudited)                                        
 6 Months    6 Months                          6 Months   6 Months              
ended       ended                             ended      ended              
   31 Dec      31 Dec                            31 Dec     31 Dec              
     2001        2002                              2002       2001              
     US $        US $                         R million  R million              
million     million                                                           
       57         125 Cash flow from              1 252        525              
                      operating activites                                       
     (47)        (26) Cash utilised in            (618)      (432)              
investing activities                                      
      (4)        (64) Cash utilised in            (635)       (38)              
                      financing activities                                      
     (53)          30 Translation                     -          -              
adjustment                                                
                      (Decrease)/Increase                                       
                      in cash and                                               
     (47)          30 equivalents                   (2)         55              
144         139 Opening cash and            1 441      1 159              
                      equivalents                                               
       97         168 Closing cash and            1 439      1 213              
                      equivalents                                               
Prepared in accordance with International Accounting Standards.                 
Operating activities translated at average rates of: December 2002: US$1 =      
R10,00                                                                          
(December 2001: US$1 = R9,28).                                                  
Closing balance translated at closing rates of: December 2002 US$1 = R8,55      
(December 2001: US$1 = R12,45).                                                 
Group`s commodity, currency, interest and lease rate contracts at 31 December   
2002                                                                            
Normal sale contracts      Maturity schedule for the years                      
AUS Dollar (A$) Gold        2003     2004    2005     2006                      
Forward sales agreements                                                        
  Ounces*1               230 000  229 000 225 000  145 500                      
A$/ounce                   519      522     523      525                      
Variable price sales                                                            
  contracts                                                                     
  with ("caps")*2                                                               
Ounces                  67 425  175 500 130 000   40 000                      
  A$/ounce                   566      544     512      552                      
Variable price sales                                                            
  contracts  with                                                               
("floors")*3                                                                  
  Ounces                  19 250        -       -        -                      
  A$/ounce                   500        -       -        -                      
Total                    316 675  404 500 355 000  185 500                      
AUS Dollar (A$) Gold        2007     2008    2009      Total                    
Forward sales agreements                                                        
  Ounces*1               147 000  100 000 100 000  1 176 500                    
  A$/ounce                   515      518     518        520                    
Variable price sales                                                            
  contracts                                                                     
  with ("caps")*2                                                               
  Ounces                       -        -       -    412 925                    
A$/ounce                     -        -       -        538                    
Variable price sales                                                            
  contracts  with                                                               
  ("floors")*3                                                                  
Ounces                       -        -       -     19 250                    
  A$/ounce                     -        -       -        500                    
Total                    147 000  100 000 100 000  1 608 675                    
*1 The Group must deliver into these agreements at the prices indicated.        
*2 The Group must deliver its production into these agreements subject to the   
capped price indicated in the table above.                                      
*3 The Group must deliver its production into these agreements subject to the   
floor price indicated in the table above.                                       
These contracts are treated as normal purchase, normal sale contracts. The mark-
to-market of these contracts was a negative R975 million (US$113 million) as at 
31 December 2002, based on the independent valuations. The value was based on a 
gold price of US$347 (A$615) per ounce, exchange rates of US$/R8,60 and         
A$/US$0,56 and prevailing market interest rates at the time.                    
Interest rate swap                                                              
The Group has interest rate swap agreements to convert R600 million of its R1,2 
billion fixed rate bond to variable rate debt. The interest rate swap runs over 
the term of the bond, interest is received at a fixed rate of 13% and the       
company pays a floating rate based on JIBAR plus a spread ranging from 1,8% to  
2,2%.                                                                           
The mark-to-market value of the transaction making up the positions was a       
negative R2 million (US$0,2 million) as at 31 December 2002, the value was based
on an exchange rates of US$/R8,60 and the prevailing interest rates and         
volatilities at the time.                                                       
Gold lease rates                                                                
The Group holds certain gold lease rate swaps, of which the mark-to-market of   
these contracts was a negative R40 million (US$5 million) as at 31 December     
2002, based on valuations provided by independent treasury and risk management  
experts. During the quarter 537 500 oz of lease rate swaps were fixed or closed.
The total outstanding lease rate swap commitments are 1.4 million oz.           
ZB Swanepoel                                            Virginia                
Chief executive                                  24 January 2003                
Development results (Metric) December 2002                                      
Channel   Channel                          
                     Reef  Sampled     width     value      Gold                
                   meters   meters    (cm`s)     (g/t)   (cmg/t)                
Randfontein                                                                     
VCR Reef            1 181    1 152        76     26,53     2 011                
UE1A                3 630    3 280       106     10,07     1 063                
E8 Reef               314    313,6       107      6,05       647                
Kimberley Reef      1 077      675       244      5,76     1 408                
South Reef            139       87        55     38,40     2 112                
All Reefs           6 201    5 421       117     11,01     1 283                
Free State                                                                      
Basal               2 381    1 770        88     10,34       910                
Leader              1 062      884       176      5,40       950                
A Reef                733      600       163      2,85       464                
Middle                342      274       235      3,28       770                
B Reef                661      645        66     19,09     1 260                
All Reefs           5 180    4 173       124      7,27       899                
EVANDER                                                                         
Kimberley Reef      2 339    2 256        67     17,96     1 203                
Elandskraal                                                                     
VCR Reef              871      506       103      9,57       987                
Free Gold (50%)                                                                 
Basal               2 511    2 112        75     23,52     1 764                
Leader                 17        -                                              
All Reefs           2 528    2 112        75     23,52     1 764                
Development results (Imperial)                                                  
                                         Channel   Channel                      
                       Reef   Sampled      width     value       Gold           
feet      feet   (inches)    (oz/t)   (in.ozt)           
Randfontein                                                                     
VCR Reef              3 875     3 780         30     0,770         23           
UE1A                 11 908    10 761         42     0,286         12           
E8 Reef               1 029     1 029         42     0,167          7           
Kimberley Reef        3 533     2 215         96     0,167         16           
South Reef              456       285         22     1,091         24           
All Reefs            20 345    17 784         46     0,326         15           
Free State                                                                      
Basal                 7 811     5 807         35     0,299         10           
Leader                3 484     2 900         69     0,158         11           
A Reef                2 406     1 969         64     0,083          5           
Middle                1 123       899         93     0,095          9           
B Reef                2 170     2 116         26     0,557         14           
All Reefs            16 994    13 691         49     0,211         10           
Evander                                                                         
Kimberley Reef        7 674     7 402         26     0,531         14           
Elandskraal                                                                     
VCR Reef              2 858     1 660         41     0,276         11           
Free Gold (50%)                                                                 
Basal                 8 238     6 929         30    00,675         20           
Leader                   56         -          -         -          -           
All Reefs             8 293     6 929         30    00,675         20           
Investor relations                                                              
Business address                                                                
Harmony Gold Mining                                                             
Company Limited                                                                 
Suite No. 1                                                                     
Private Bag X1                                                                  
Melrose Arch, 2076                                                              
Telephone: +27 (11) 684 0140                                                    
Telefax:    +27 (11) 684 0188                                                   
E-mail: corporate@harmony.co.za                                                 
Investor relations contacts                                                     
Corn Bobbert                                                                   
Telephone: +27 (11) 684 0146                                                    
Telefax:    +27 (11) 684 0188                                                   
E-mail: cbobbert@harmony.co.za                                                  
Ferdi Dippenaar                                                                 
Telephone: +27 (11) 684 0147                                                    
Telefax:      +27 (11) 684 0188                                                 
E-mail: fdippenaar@harmony.co.za                                                
Share transfer secretaries                                                      
Ultra Registrars (Pty) Ltd                                                      
Contact: Polly Pollard                                                          
Telephone: +27 (11) 832 2652                                                    
Telefax: +27 (11) 834 4398                                                      
E-mail: ultra@registrars.co.za                                                  
11 Diagonal Street                                                              
Johannesburg 2001                                                               
(PO Box 4844, Johannesburg, 2000)                                               
United States ADR Depositary                                                    
The Bank of New York                                                            
Telephone: +1888-BNY ADRS                                                       
Telefax: +1 (212) 815 3050                                                      
Shareholder Relations Department                                                
101 Barclay Street                                                              
22nd Floor, New York, NY 10286                                                  
United States of America                                                        
United Kingdom Registrars                                                       
Capita IRG Plc                                                                  
Contact: Melvyn Leigh                                                           
Telephone: +44 (208) 639 1001                                                   
Telefax: +44 (208) 478 2876                                                     
E-mail: mleigh@capitaregistrars.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,                                                          
T S A Grobicki, T A Mokhobo*,                                                   
M F Pleming*, Lord Renwick of                                                   
 Clifton KCMG*+,                                                                
J G Smithies*, S Lushaba*, N Fakude*                                            
*Non executive directors +British                                               
Harmony`s 2002 Annual Report is available on our website at www.harmony.co.za   
For a hard copy please contact                                                  
Corn Bobbert on                                                                
tel +27 11 684-0146 or e-mail                                                   
cbobbert@harmony.co.za.                                                         
Date: 27/01/2003 12:00:00 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             



                                        
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