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Harmony Review for the quarter and financial year ended 30 June 2003

Release Date: 13/08/2003 08:03:21      Code(s): HAR HARW
Harmony Review for the quarter and financial year ended 30 June 2003            
Harmony Gold Mining Company Limited                                             
JSE:        HAR   HAR                                                           
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
JSE:        HARW                                                                
NYSE:       HMYWS                                                               
ISIN No.:   ZAE000031209                                                        
HARMONY REVIEW for the quarter and financial year ended 30 June 2003            
Key indicators                                                                  
Highlights for the quarter                                                      
Final dividend of 150 SA cents per share                                        
Strong Rand impacts on results                                                  
Good operational performance on all operations except Elandsrand                
Two year wage agreement with NUM                                                
Merger on track                                                                 
26% exposure to Avgold, and                                                     
Excellent exploration results at Wafi                                           
. and for the financial year                                                    
Record production of 3.0 million ounces (12% increase)                          
Cash operating profit decreases by 8% to R2 374 million, mainly due to          
inflationary cost pressures                                                     
Earnings per share before impairment of 695 SA cents                            
Total dividend of 275 SA cents for financial year                               
Quarterly financial highlights                                                  
                                        30 June 2003         31 March 2003      
Cash operating profit                                                           
- Rand                                  183 million          478 million        
- US$                                   24 million           57 million         
Earnings                                                                        
- Rand                                  (478 million)        235 million        
- US$                                   (62 million)         28 million         
Earnings before impairment                                                      
- Rand                                  120 million          235 million        
- US$                                   16 million           28 million         
Earnings per share                                                              
- SA cents per share                    (259)                130                
- US cents per share                    (34)                 16                 
Earnings per share before impairment                                            
- SA cents per share                    65                   130                
- US cents per share                    8                    16                 
Gold produced                                                                   
- kg                                    21 992               22 211             
- oz                                    707 053              714 096            
Cash costs                                                                      
- R/kg                                  75 433               73 150             
- $/oz                                  303                  272                
Chief executive"s review                                                        
"The proposed merger between ARMgold and Harmony and the subsequent acquisition 
of 34,5% of Avmin which was announced earlier in the quarter, is in line with   
our strategy of delivering a leveraged, unhedged pure gold play with operating  
assets mainly in South Africa."                                                 
Safety report                                                                   
The past quarter saw continued focus on empowering our working teams to         
understand and implement continuous risk assessment in the stopes and           
development areas on a daily basis. This ensures that awareness levels to all   
dangers are sustained, subsequently assisting in building a safety culture.     
During the last quarter, six of our employees lost their lives in mining related
accidents. We offer our condolences to the grieving families.                   
Year on year, there was a 23% improvement in the company"s fatality rate.       
- Merriespruit 3 Shaft ended the quarter on 1,3 million fatality-free shifts. It
has been 5 years since the last fatality at this mine.                          
- Masimong Mine achieved 500 000 fatality free shifts on 5 June 2003.           
- Brand 3 achieved 500 000 fatality free shifts on 28 June 2003.                
- St Helena and Evander 8 Shaft both achieved a million fatality-free shifts    
status after quarter end.                                                       
The past quarter in review - adjusting to a stronger Rand                       
As expected, the company reported lower operational profits of R183 million, a  
decrease of 62%, compared to the R478 million reported previously. Kilograms    
recovered were 1% lower or 219 kg less at 21 992 kg. Due to the current low R/kg
gold price environment, our focus has been on scaling down tonnages from        
marginal surface operations. Should the gold price continue at these levels,    
further incremental cutbacks from marginal mining operations are expected. Being
unhedged, the company has always focused on ounces which can be mined at total  
costs below the spot price of gold.                                             
The impact of the stronger Rand on the cash generating potential of the company 
is evident from the graph above.                                                
A QUARTER ON QUARTER VARIANCE ANALYSIS                                          
Cash operating profit - March 2003            R478 million                      
Volume increase (tonnes)              +2%      R83 million                      
Working costs increase (%)           (2%)    (R34 million)                      
Recovery grade reduction (g/t)       (3%)   (R103 million)                      
Rand gold price reduction (R/kg)    (12%)   (R241 million)                      
Net variance                                (R295 million)                      
Cash operating profit - June 2003             R183 million                      
The main contributing feature of the quarter was undeniably the lower R/kg and  
A$/kg gold price received, which explains 82% of the total negative variance. An
12% quarter on quarter decrease in gold price resulted in a R241 million adverse
variance on cash operating profits.                                             
Working costs increased marginally by 2% from R1 625 million to R1 659 million, 
mainly due to higher tonnes from underground and provision for annual wage      
increases for mine officials. Costs related to the 10% annual increases for     
members of the National Union of Mineworkers (NUM) will be reflected in the     
September 2003 quarter.                                                         
Headline earnings per share before the adjustment for profit on sale of assets  
total 65 SA cents, a decrease of 48% compared to the 126 SA cents of the March  
2003 quarter. Quarterly earnings were adversely affected by non-cash items, i.e.
impairment charges (R598 million) and foreign exchange losses on offshore cash  
holdings (R133 million), which was however offset by a year end re-evaluation of
financial instruments (R220 million) resulting in a net loss of 259 SA cents per
share.                                                                          
Net earnings per share before impairment for the year total 695 SA cents. After 
net impairment of R598 million on assets in Australia, net earnings total 359 SA
cents per share. A final dividend of 150 SA cents per share has been declared,  
bringing the total for the year to 275 SA cents. The Board feels that the 275 SA
cent dividend which is 40% of the 695 SA cents before impairment, rewards our   
current and future shareholders appropriately, whilst it leaves the company with
a strong balance sheet going into a period which may still prove to be the most 
challenging of our recent history.                                              
Our orebodies remain extremely leveraged to a changing gold price:-             
JUNE QUARTERS RESULTS AT DIFFERENT GOLD PRICES                                  
Cash                                                        
               operating                                                        
Gold price        profit                      % Gold price   % profit           
    (R/kg)   (R"million)                          variance   variance           
80 000           100                               (5)       (45)           
    84 000           183       Actual results for June 2003 quarter             
    88 000           276                                 5         51           
    94 000           408                                12        123           
100 000           540                                19        195           
From an operational perspective, the next quarter will be steady although       
further operational improvements, especially at Elandsrand, will be forthcoming.
Negotiations with the various unions on wage increases were concluded at the end
of July 2003. Our focus on absorbing these additional costs through productivity
and efficiency improvements continue in earnest. The parties agreed to a two-   
year wage agreement with a 10% increase in the 2003/04 financial year, and an   
inflation linked increase (Consumer Price Index + 2% with a guaranteed minimum  
of 7%) in the following year. The implementation of continuous operations at    
Free Gold, and potentially at the rest of our South African operations, could   
assist us in achieving our productivity improvement objectives.                 
Annual financial review - US Dollar gold price improves                         
The company achieved an increase of 12% in production, increasing from 2,7      
million to a record 3,0 million ounces, over a period in which no significant   
acquisitions were made and continued operational improvements were achieved.    
Further economic and political uncertainty over the past year has resulted in a 
steady rise in the US Dollar price of gold. Our decision to remain unhedged,    
even when the gold price was at the US$250/oz level, was the correct one and our
shareholders have, over the past 5 years, experienced the benefits thereof.     
These benefits were however somewhat eroded during the last six months by the   
strength of the South African Rand and the Australian Dollar against the US     
Dollar.                                                                         
On average the company realised a price of US$ 329/oz for the financial year, a 
15% improvement over the US$287/oz reported previously.                         
A year on year analysis of the performance of the company indicates the         
following:-                                                                     
                             30 June     30 June    Actual          %           
Year ending                     2003        2002  variance   variance           
Production - kg               93 054      82 971    10 083         12           
Production - oz            2 991 734   2 667 572   324 162         12           
Revenue - R/kg                96 663      94 080     2 583          3           
Revenue - US$/oz                 329         287        42         15           
Working costs -               71 146      62 848   (8 298)       (13)           
R/kg                                                                            
                               30 June   30 June    Actual          %           
Year ending                       2003      2002  variance   variance           
Working costs - US$/oz             242       192      (50)       (26)           
Cash operating profit                                                           
- R/million                      2 374     2 591     (217)        (8)           
Cash operating profit                                                           
- US$/million                      260       254         6          2           
Earnings per share before          695     1 330     (635)       (48)           
impairment (SA cents)                                                           
Earnings per share after           359     1 094     (735)       (67)           
impairment (SA cents)                                                           
Exchange rate -R/US$             R9,13    R10,20   (R1,07)       (10)           
Whilst revenues increased by only 3% in R/kg terms, inflationary cost pressures,
lower cut-offs applied, as well as the full incorporation of higher cost        
acquisitions in Australia, eroded our margins. The company continued to generate
improved cash operating profits of US$260 million compared to US$254 million for
the previous year. Increased charges related mainly to interest paid, reversal  
in the mark to market of listed investments and higher amortisation charges,    
resulted in lower earnings before impairment at US$136 million, compared to     
US$199 million for the previous reporting period. The company is well positioned
to generate solid cash operating profits and earnings in the forthcoming        
financial year, subject to the relative strength of the South African Rand.     
When measured over a period of five years, the company continues to deliver     
shareholder value:-                                                             
                   June       June        June       June        June           
                   2003       2002        2001       2000        1999           
Gold             93 054     82 971      66 563     50 572      39 997           
produced -                                                                      
kg                                                                              
Gold          2 991 734  2 667 572   2 140 043  1 625 925   1 285 931           
produced -                                                                      
oz                                                                              
Underground        5,33       5,37        4,88       5,08        5,27           
recovery                                                                        
grade g/t                                                                       
Cash              2 374       2591         673        461         386           
operating                                                                       
profit SA                                                                       
Rand - R"m                                                                      
US$ -               260        254          88         73          64           
million                                                                         
Cash             71 146     62 848      57 416     50 121      46 759           
operating                                                                       
cost R/kg                                                                       
Cash                234        227         224        213         240           
operating                                                                       
cost                                                                            
R/tonne                                                                         
Cash                242        192         234        246         240           
operating                                                                       
cost US$/oz                                                                     
Harmony"s growth story - taking stock one year later                            
The past financial year has been an unpredictable period in which the company"s 
performance was influenced by a number of factors. Negative factors include the 
strengthening of the South African Rand as well as the effect of, and the       
uncertainty surrounding, the Mining Charter and the unresolved Royalty Bill.    
On the bright side, the company is well poised for further expansion through the
proposed merger with ARMgold, the purchase of a 34,5% stake in Avmin and the    
acquisition of Abelle Limited in Australia. These three transactions are        
expected to have a tangible and positive effect on the future operational       
performance of the company.                                                     
During the last few quarters we announced the organic growth projects at        
Randfontein (Doornkop South Reef Project) and Free Gold (Tshepong North Decline 
Project and the development of the Phakisa Shaft). This resulted in investors   
questioning us as to whether Harmony"s growth strategy, which has built the     
company to the fifth largest in the world today, has changed? Have we stopped   
acquiring turnaround assets and are we now focusing only on building projects?  
The answer is that our strategy has never been an "either/or" approach. We      
believe that there will be further turnaround opportunities to acquire in South 
Africa in the near future, which will deliver similar value upliftment as to    
what we have experienced in the past with such acquisitions. This is our core   
competency!                                                                     
The progress of the company, from survival in 1995, the subsequent growth       
through acquisitions and the focus on long life quality, low cost production    
ounces in 2002/03 can be summarised as follows:-                                
                               Long life    Project                             
               Quality         quality      growth         Potential            
Marginal ounces  ounces        ounces       ounces         projects             
Harmony        Evander         Masimong     Tshepong       Morobe/              
                                            North          Wafi                 
Joel           Kalgold         Elandskraal  Phakisa        Poplar               
Rest of Free   Randfontein     Tshepong     Doornkop       Rolspruit            
Gold                                                                            
St Helena      Highland Gold   Bambanani    Target (26%)   Kalplats             
Australian     Bendigo                                                          
Operations                                                                      
Orkney Shafs   9,8% of Aurion                                                   
               (onsold)                                                         
Included with the acquisition of Randfontein in January 2000, Elandskraal in    
April 2001 and Free Gold in April 2002, came a number of highly prospective     
project areas at zero cost. On acquisition of such turnaround assets, our       
initial focus is to achieve an operational turnaround as quickly as possible.   
During the low gold price scenario which applied at the time, the project areas,
although initially financially evaluated, provided insuficient returns for the  
investment required.                                                            
After the restructuring of the acquired operations for profitability and under  
the higher current gold price scenario, the projects were revisited. When       
compared to other potential acquisitions or growth projects in the company, the 
abovementioned projects promise greater returns to all stakeholders and in each 
case an investment decision was taken to proceed.                               
The long term future of Harmony in South Africa has been secured through the    
development of these long life, quality production ounces. The underground      
recovery grade is planned to incrementally increase from the 5,33 g/t for the   
2002/03 financial year to in excess of 6,0 g/t by 2009. Whilst there will be    
more acquisition opportunities in South Africa, especially if the Rand remains  
strong, we will have served the interests of our shareholders well by securing  
the long term future of the company.                                            
The proposed merger between ARMgold and Harmony and the subsequent acquisition  
of 34,5% of Avmin, which was announced earlier in the quarter, is in line with  
our strategy of delivering a leveraged, unhedged pure gold play with operating  
assets mainly in South Africa. Although the strategic positioning of Harmony to 
consolidate and grow its production base in Australasia and Russia, remains     
intact, we will continue to regularly re-evaluate these investments.            
Merging ARMgold and Harmony to create South Africa"s largest gold producer      
On 2 May 2003, the two companies announced details on a proposal to create a    
world class, unhedged gold producer, with the bulk of its production from South 
Africa.                                                                         
The merger creates the fifth largest gold producer in the world, producing      
approximately 4,0 million ounces per annum. The transaction will be effected by 
the issue of two Harmony shares for every three ARMgold shares held after       
ARMgold has paid a special dividend of R5 per share. It is anticipated that     
approximately 63,67 million Harmony shares will be issued, increasing the       
companies" outstanding shares to 257,8 million. At a price of R90,00 per share, 
the new company will have a market capitalisation of R23,2 billion (US$3,1      
billion at R7,50 to the US Dollar).                                             
Post merger, the aggregate number of Harmony shares issued to ARMgold           
shareholders will represent 25% of the enlarged issued share capital of the     
merged company. Our largest shareholder, holding approximately 14% of the new   
company will be African Rainbow Minerals and Exploration Investments (Pty.) Ltd 
(ARMI), represented by Patrice Motsepe, who will become Harmony"s new non-      
executive chairman.                                                             
We have made good progress in concluding the proposed merger, i.e. approval for 
the scheme has been received from the Competition Commission and Tribunal on 2  
July and 16 July respectively. The scheme will be presented to the shareholders 
of both companies during the next few weeks for approval and it is anticipated  
that the merger will be concluded in the latter half of September 2003.         
We are excited with the assets which will be incorporated into the new Harmony. 
This transaction has as its focus not only BEE compliance or short-term         
operational synergies, but is rather a long-term value proposition to our       
shareholders. Operational synergies, and more specifically at the Free State    
operations will add some R10,0 million per month to the bottom line. In addition
the growth projects at Free Gold, i.e. Tshepong North Decline and Phakisa Shaft 
will enhance the future cash generating potential of these orebodies.           
QUARTERLY OPERATIONAL REVIEW                                                    
A quarter on quarter cash operating profit analysis of the various operations is
as follows:                                                                     
TOTAL CASH OPERATING PROFIT (R"MILLION)                                         
                        June  March       Variance                              
Operations              2003   2003   (R" million)                              
Free State                 4     53           (49)                              
Evander                   39     45            (6)                              
Randfontein               40    105           (65)                              
Elandskraal             (33)     44           (77)                              
Kalgold                   11     21           (10)                              
Australian Operations     23     69           (46)                              
Sub-total                 84    337          (253)                              
Free Gold (50%)           99    141           (42)                              
Total                    183    478          (295)                              
CAPITAL EXPENDITURE                                                             
                                Actual        Forecast                          
Operational capex            June 2003  September 2003                          
Free State                          29              18                          
Evander                             21              27                          
Randfontein                          2              18                          
Elandskraal                         12              10                          
Kalgold                              8               1                          
Free Gold (50%)                     11              10                          
Australian Operations               64              67                          
Sub total                          147             151                          
                                Actual        Forecast                          
Project capex                June 2003  September 2003                          
Doornkop South Reef                 13              34                          
Elandsrand Shaft Deepening          22              29                          
Tshepong Decline (50%)               9              15                          
Phakisa Shaft (50%)                  -              14                          
Nyala Shaft (50%)                    6               7                          
Sub total                           50             135                          
                           Actual        Forecast                               
Total capex             June 2003  September 2003                               
Free State                     29              18                               
Evander                        21              27                               
Randfontein                    15              52                               
Elandskraal                    34              39                               
Kalgold                         8               1                               
Free Gold (50%)                26              46                               
Australian Operations          64              67                               
Total capex                   197             250                               
Capex after merger                            296                               
Notice of final dividend                                                        
A dividend No. 77 of 150 cents per ordinary share, being the final dividend for 
the financial year ended 30 June 2003 has been declared payable on 8 September  
2003 to those shareholders registered as such in the books of the company at the
close of business on 5 September 2003.                                          
The dividend is declared in the currency of the Republic of South Africa.       
Dividend cheques will be posted and electronic funds transferred on 8 September 
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 29   
August 2003.                                                                    
This announcement will be mailed to all shareholders recorded in the register on
15 August 2003.                                                                 
Last day to trade ordinary shares                                               
cum dividend                                           29 August 2003           
Ordinary shares trade ex                                                        
dividend                                               1 September 2003         
Record date                                            5 September 2003         
Payment date                                           8 September 2003         
Share certificates may not be dematerialised or rematerialised between Monday,  
1 September 2003 and Friday 5 September 2003, both days inclusive.              
By order of the Board.                                                          
M P van der Walt                                                                
Company Secretary                                                               
Virginia                                                                        
1 August 2003                                                                   
Operating and financial results (Rand/metric)                                   
     Underground production   Surface production                                
                           Free            Rand-                                
                          State Evander  fontein                                
Ore milled      Jun-03    1,098     471      649                                
- t"000         Mar-03    1,025     471      690                                
Gold produced   Jun-03    4,570   2,943    3,024                                
- kg            Mar-03    4,306   2,589    3,229                                
Yield           Jun-03     4.16    6.25     4.66                                
- g/tonne       Mar-03     4.20    5.50     4.68                                
Cash operating  Jun-03   82,587  69,873   70,037                                
costs - R/kg    Mar-03   82,117  76,878   65,112                                
Cash operating  Jun-03      344     437      326                                
costs - R/tonne Mar-03      345     423      305                                
Working revenue Jun-03  380,584 243,341  249,194                                
(R"000)         Mar-03  404,873 242,726  302,448                                
Cash operating  Jun-03  377,424 205,637  211,792                                
costs (R"000)   Mar-03  353,597 199,036  210,246                                
Cash operating  Jun-03    3,160  37,704   37,402                                
profit (R"000)  Mar-03   51,276  43,690   92,202                                
Free                                        
                         Elands-    Gold        Sub   Free                      
                           kraal   (50%)      Total  State                      
Ore milled      Jun-03       480     611      3,309    215                      
- t"000         Mar-03       457     581      3,224    290                      
Gold produced   Jun-03     2,221   4,092     16,850    123                      
- kg            Mar-03     2,707   4,052     16,883    165                      
Yield           Jun-03      4.63    6.70       5.09   0.57                      
- g/tonne       Mar-03      5.92    6.97       5.24   0.57                      
Cash operating  Jun-03    95,752  64,343     75,419 76,959                      
costs - R/kg    Mar-03    79,152  62,670     72,918 83,164                      
Cash operating  Jun-03       443     431        384     44                      
costs - R/tonne Mar-03       469     437        382     47                      
Working revenue Jun-03   182,144 353,883  1,409,146 10,254                      
(R"000)         Mar-03   253,332 381,314  1,584,693 15,485                      
Cash operating  Jun-03   212,665 263,290  1,270,808  9,466                      
costs (R"000)   Mar-03   214,264 253,940  1,231,083 13,722                      
Cash operating  Jun-03  (30,521)  90,593    138,338    788                      
profit (R"000)  Mar-03    39,068 127,374    353,610  1,763                      
                                                    Free                        
Rand-  Elands-    Gold      Sub               
                        Evander fontein    kraal   (50%)    Total               
Ore milled      Jun-03       54     535      299     594    1,697               
- t"000         Mar-03       52     514      337     674    1,867               
Gold produced   Jun-03       35     145       98     381      782               
- kg            Mar-03       34     340      161     420    1,120               
Yield           Jun-03     0.65    0.27     0.33    0.64     0.46               
- g/tonne       Mar-03     0.65    0.66     0.48    0.62     0.60               
Cash operating  Jun-03   59,771  65,679  107,224  62,094   70,649               
costs - R/kg    Mar-03   46,265  55,676   64,404  61,338   62,818               
Cash operating  Jun-03       39      18       35      40       33               
costs - R/tonne Mar-03       30      37       31      38       38               
Working revenue Jun-03    2,905  12,118    8,409  33,148   66,834               
(R"000)         Mar-03    2,713  32,031   15,364  39,481  105,074               
Cash operating  Jun-03    2,092   9,524   10,508  23,658   55,248               
costs (R"000)   Mar-03    1,573  18,930   10,369  25,762   70,356               
Cash operating  Jun-03      813   2,595  (2,099)   9,490   11,587               
profit (R"000)  Mar-03    1,140  13,101    4,995  13,719   34,718               
                        Kalgold     South                                       
                          Open-    Africa  Australia   Harmony                  
cast     Total      Total     Total                  
Ore milled      Jun-03      315     5,321      1,907     7,228                  
- t"000         Mar-03      250     5,341      1,729     7,070                  
Gold produced   Jun-03      554    18,186      3,806    21,992                  
- kg            Mar-03      568    18,571      3,640    22,211                  
Yield           Jun-03     1.76      3.42       2.00      3.04                  
- g/tonne       Mar-03     2.27      3.48       2.11      3.14                  
Cash operating  Jun-03   66,711    74,949     77,747    75,433                  
costs - R/kg    Mar-03   56,722    71,814     79,967    73,150                  
Cash operating  Jun-03      117       256        155       230                  
costs - R/tonne Mar-03      129       250        168       230                  
Working revenue Jun-03   47,685 1,523,665    318,605 1,842,270                  
(R"000)         Mar-03   53,098 1,742,865    360,223 2,103,088                  
Cash operating  Jun-03   36,958 1,363,014    295,906 1,658,920                  
costs (R"000)   Mar-03   32,218 1,333,657    291,079 1,624,736                  
Cash operating  Jun-03   10,727   160,652     22,699   183,351                  
profit (R"000)  Mar-03   20,880   409,208     69,144   478,352                  
Total Operations - annual financial results (Rand/metric)                       
                                                   Year          Year           
                                                  ended         ended           
30 June       30 June           
                                                   2003          2002           
Ore milled - t"000                               28,238        22,934           
Gold produced - kg                               93,054        82,971           
Gold price received - R/kg                       96,663        94,080           
Cash operating costs - R/kg                      71,146        62,848           
                                              R million     R million           
                                             (reviewed)     (audited)           
Gold sales                                        8,994         7,806           
Cash operating costs                              6,620         5,215           
Cash operating profit                             2,374         2,591           
Income from associates                               57             -           
Amortisation                                      (542)         (308)           
Mark to market of financial instruments             381            46           
Rehabilitation cost provision                       (5)          (20)           
Employment termination and restructuring           (45)          (83)           
costs                                                                           
Net impairment of assets                          (598)         (362)           
CAWMS provision                                     (5)           (2)           
Other income - net                                  204           165           
Foreign exchange (loss)/profit                    (131)            99           
Interest paid                                     (279)         (230)           
Corporate, marketing and new business             (148)         (167)           
expenditure                                                                     
Exploration expenditure                            (82)          (61)           
Mark to market of listed investments               (55)           595           
Profit before taxation                            1,126         2,263           
South African normal taxation                                                   
- Current tax                                     (294)         (266)           
- Deferred tax                                    (193)         (317)           
Net earnings                                        639         1,680           
Earnings per share - cents *                                                    
- Basic earnings                                    359         1,094           
- Headline earnings                                 661         1,316           
- Fully diluted earnings **                         359         1,017           
Dividends per share - (cents)                                                   
- Declared                                          125            75           
- Proposed final                                    150           425           
* Calculated on weighted number of shares in issue:                             
June 2003: 178,0 million (June 2002: 153,5 million)                             
* Calculated on weighted average number of diluted shares in issue:             
June 2003: 178,3 million (June 2002: 165.2 million)                             
Reconciliation of earnings                                                      
Net earnings                                        639         1 680           
Adjustments:                                                                    
- Profit on sale of assets                         (61)          (21)           
- Net impairment of assets                          598           362           
Headline earnings                                 1,176         2,021           
Total Operations - quarterly financial results (Rand/metric) (unaudited)        
                                    Quarter      Quarter      Quarter           
                                      ended        ended        ended           
                                    30 June     31 March      30 June           
2003         2003         2002           
Ore milled - t"000                    7,228        7,070        6,905           
Gold produced - kg                   21,992       22,211       24,390           
Gold price received - R/kg           83,770       94,687      103,349           
Cash operating costs - R/kg          75,433       73,150       59,574           
                                  R million    R million    R million           
Gold sales                            1,842        2,103        2,521           
Cash operating costs                  1,659        1,625        1,453           
Cash operating profit                   183          478        1,068           
Income from associates                   33           24            -           
Amortisation                          (140)        (132)        (129)           
Impairment of mining assets           (598)            -        (355)           
Mark to market of financial             220          133          192           
instruments                                                                     
Rehabilitation cost                      30         (13)         (18)           
reversal/(provision)                                                            
Employment termination costs           (11)          (8)         (20)           
Other income - net                       61           40           53           
Interest paid                          (86)         (63)         (71)           
Corporate, marketing and new           (38)         (32)         (25)           
business expenditure                                                            
Exploration expenditure                (24)         (23)         (14)           
Foreign exchange losses               (133)         (49)            -           
Mark to Market of listed                  -         (17)          200           
investments                                                                     
Profit before taxation                (503)          338          881           
South African normal taxation                                                   
- Current tax                          (28)         (30)         (22)           
- Deferred tax                           53         (73)        (195)           
Net earnings                          (478)          235          664           
Earnings per share - cents *                                                    
- Basic earnings                      (259)          130          402           
- Basic earnings before                  65          130          617           
impairment                                                                      
- Headline earnings                      44          126          614           
- Fully diluted earnings **           (259)          129          377           
Dividends per share - (cents)                                                   
- Proposed final                        150            -          425           
* Calculated on weighted number of shares in issue at quarter end June 2003:    
184.3 million (March 2003: 180.6 million)/(June 2002: 165.1 million)            
** Calculated on weighted average number of diluted shares in issue at quarter  
end June 2003: 184.3 million (March 2003: 182.5 million)/(June 2002: 170.1      
million)                                                                        
Reconciliation of earnings                                                      
Net earnings per                      (478)          235          664           
Adjustments:                                                                    
- Profit on sale assets                (38)          (7)          (5)           
- Impairment of mining assets           598            -          355           
Headline earnings                        82          228        1,014           
Abridged balance sheet (Rand)                                                   
                                          At           At          At           
                                     30 June     31 March     30 June           
2003         2003        2002           
                                   R million    R million   R million           
                                  (reviewed)  (unaudited)   (audited)           
Employment of capital                                                           
Mining assets after                    9,969        8,986       9,433           
amortisation                                                                    
Investments                              868          869       1,778           
Investments in associates              1,398          506         291           
Net current liabilities                (309)        (514)       (748)           
(excluding cash)                                                                
Cash                                   1,687        3,128       1,441           
Total assets                          13,613       12,975      12,195           
Capital employed                                                                
Shareholders" equity                   8,628        8,932       7,963           
Loans*                                 2,415        2,015       1,771           
Long-term provisions                     632          686         720           
Minority interest                        120            -           -           
Unrealised hedging loss                  284          491         971           
Deferred tax**                         1,534          851         770           
Total equity and liabilities          13,613       12,975      12,195           
Basis of accounting                                                             
The unaudited results for the quarter and the year have been prepared on the    
International Financial Reporting Standards (IFRS) basis. These consolidated    
quarterly statements are prepared in accordance with IFRS 34, Interim Financial 
Reporting. The accounting policies are consistent with those applied in the     
previous financial year.                                                        
Issued share capital: 184.9 million ordinary shares of 50 cents each. (March    
2003: 184.2 million shares) (June 2002: 169.2 million)                          
*    The increase in loans was due to the acquisition of Avmin shares.          
**   The increase in deferred tax liability was due to the accounting treatment 
of the acquisition of Abelle and the finalisation of the Free Gold purchase     
price.                                                                          
Audit review                                                                    
The year-end results have been reviewed in terms of Rule 3.23 of the Listing    
Requirements of the JSE Securities Exchange South Africa by the company"s       
auditors, PricewaterhouseCoopers Inc. This unqualified review opinion is        
available on request from the Company Secretary.                                
Condensed statement of changes in shareholders" equity                          
                          At         At            At           At              
                     30 June    30 June       30 June      30 June              
2003       2002          2003         2002              
                   R million  R million   US$ million  US$ million              
                  (reviewed)  (audited)    (reviewed)    (audited)              
Balance as at                                                                   
the beginning                                                                   
of the                                                                          
financial year         7,963      4,594         1,060          442              
Currency               (331)       (35)          (44)          (4)              
translation                                                                     
adjustment and                                                                  
other                                                                           
Issue of share         1,328      1,748           177          168              
capital                                                                         
Net earnings             639      1,775            85          171              
Dividends paid         (971)      (119)         (129)         (11)              
Balance as at          8,628      7,963         1,149          766              
the end of June                                                                 
Abridged cashflow statement                                                     
      Year         Year                            Year       Year              
     ended        ended                           ended      ended              
30 June      30 June                         30 June    30 June              
      2002         2003                            2003       2002              
       US$  US$ million                       R million  R million              
   million                                                                      
(audited)   (reviewed)                      (reviewed)  (audited)              
       221          136 Cash flow from            1 243       2256              
                        operating activites                                     
     (360)         (90) Cash utilised in          (826)     (3668)              
investing                                               
                        activities                                              
       166         (19) Cash utilised in          (171)       1694              
                        financing                                               
activities                                              
      (32)           59 Translation                   -          -              
                        adjustment                                              
       (5)           86 (Decrease)/increase         246        282              
in cash and                                             
                        equivalents                                             
       144          139 Opening cash and           1441       1159              
                        equivalents                                             
139          225 Closing cash and           1687       1441              
                        equivalents                                             
Operating activities translated at average rates of: June 2003: US$1 = R9.13    
(June 2002: US$1 = R10.20)                                                      
Closing balance translated at closing rates of : June 2003: US$1 = R7.51        
(June 2002: US$1 = R10.39)                                                      
Investor relations                                                              
Business address                                                                
Harmony Gold Mining Company Limited                                             
Suite No. 1                                                                     
Private Bag X1                                                                  
Melrose Arch, 2076                                                              
South Africa                                                                    
Telephone: +27 (11) 684 0140                                                    
Fax: +27 (11) 684 0188                                                          
Investor relations contacts                                                     
Corn Bobbert                                                                   
Telephone: +27 (11) 684 0146                                                    
Fax: +27 (11) 684 0188                                                          
E-mail: cbobbert@harmony.co.za                                                  
Ferdi Dippenaar                                                                 
Telephone: +27 (11) 684 0147                                                    
Fax: +27 (11) 684 0188                                                          
E-mail: fdippenaar@harmony.co.za                                                
www.harmony.co.za                                                               
Share Transfer Secretaries                                                      
Ultra Registrars (Pty) Ltd                                                      
11 Diagonal Street                                                              
Johannesburg 2001                                                               
(PO Box 4844, Johannesburg, 2000)                                               
Telephone: +27 (11) 832 2652                                                    
Fax: +27 (11) 834 4398                                                          
ADR Depositary                                                                  
The Bank of New York                                                            
Shareholder Relations Department                                                
101 Barclay Street 22nd Floor, New York, NY 10286                               
United States of America                                                        
Telephone: +1888-BNY ADRS                                                       
Fax: +1 (212) 815 3050                                                          
United Kingdom Registrars                                                       
Capita IRG Plc                                                                  
Balfour House 390-398                                                           
High Road, Ilford                                                               
Essex IG1 1NQ, United Kingdom                                                   
Telephone: +44 (208) 639 1001                                                   
Fax: +44 (208) 478 2876                                                         
Directors                                                                       
A R Fleming*+(Chairman), ZBSwanepoel (Chief Executive), FAbbott, F Dippenaar,   
TSA Grobicki, MVSisulu*, MFPleming*, Lord Renwick of Clifton KCMG*+, J G        
Smithies*, DS Lushaba*, VNFakude*                                               
*Non executive directors +British                                               
Company secretary                                                               
Marian van der Walt                                                             
Telephone: +27 (11) 411 2037                                                    
Telefax: +27 (11) 692 3879                                                      
E-mail: mvanderwalt@harmony.co.za                                               
Trading Symbols                                                                 
Ordinary Shares                                                                 
JSE Securities Exchange: HAR                                                    
New York Stock Exchange: HMY                                                    
London Stock Exchange:   HRM                                                    
Euronext Paris:     HG                                                          
Euronext Brussels:  HMY                                                         
Berlin Stock Exchange:   HAM1                                                   
ISIN                                                                            
ZAE000015228                                                                    
Registration number                                                             
1950/038232/06                                                                  
Date: 13/08/2003 08:04:32 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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