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Harmony Invests To Secure Its Long Term Future

Release Date: 13/08/2003 08:08:04      Code(s): HAR HARW
Harmony Invests To Secure Its Long Term Future                                  
Press Release                                                                   
Harmony Gold Mining Company Limited                                             
JSE:        HAR   HAR                                                           
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
JSE:        HARW                                                                
NYSE:       HMYWS                                                               
ISIN No.:   ZAE000031209                                                        
Johannesburg, 13 August 2003 - Harmony Gold Mining Company Limited     (NYSE:   
HMY JSE: HAR) today released their operational results for the quarter and      
financial year ended 30 June 2003.  The company indicated that although         
operating conditions were tough following the 12% decrease in the Rand/kg price 
of gold, the company was still confident that it could generate sufficient cash 
to fund its future growth and deliver solid returns to its shareholders through 
As forecasted, the company reported lower operational profits of R183 million.  
This was significantly down from the R478 million reported for the previous     
quarter.  The lower gold price contributed R241 million of the R295 million     
quarter on quarter reduction.  Operationally the company performed well despite 
Elandsrand not having recovered from the dilution in grade following orepass    
scaling, with total production being only 1% lower at 21 992 kgs.               
Headline earnings per share total 65 SA cents, a decrease of 48% to the 126 SA  
cents for the March 2003 quarter.  After year-end non-cash adjustments, mainly  
related to the write-down of its Australian assets, the company reported a loss 
of 259 SA cents per share for the quarter.                                      
Net earnings for the year totalled 359 cents per share.  A final dividend of 150
cents per share was declared, bringing the total dividend for the year to 275 SA
"The Board feels that the 275 SA cents dividend, which is 40% of the 695 SA     
cents before impairment, rewards our shareholders appropriately, whilst it      
leaves the company with a strong balance sheet going into a period which may    
prove to be challenging." commented Bernard Swanepoel, Chief Executive.         
During the past financial year, the company produced a record 3 million ounces, 
a 12% increase year on year.  Although Rand/kg working costs increased by 13%   
year on year, following inflationary cost pressures, lower cut-offs being       
applied and the incorporation of higher cost acquisitions in Australia, cash    
operating profits were only 8% lower at R2 374 million.  In US Dollar terms the 
company reported a record cash operating profit of US$260 million.              
Regarding its merger with ARMgold, the process was well on track with the       
completion thereof expected by 23 September 2003 with the termination of the    
ARMgold listing.                                                                
The merger with ARMgold will create South Africa"s largest gold producer with an
exciting portfolio of growth projects which will ensure its future for the next 
20 years.  Production from these growth projects increases from 400 000 ounces  
in the 2005/06 financial year to 1,6 million ounces in 2009/10.                 
"The future of Harmony in South Africa has been secured through the development 
of these long life, quality production ounces.  Whilst there will be more       
acquisition opportunities in South Africa, we will have served our shareholders 
well by securing the long-term future of the company.  We can claim to be the   
most leveraged, unhedged, pure gold play operating mainly from South Africa."   
concluded Bernard Swanepoel.                                                    
Issued by Harmony Gold Mining Company Limited                                   
For release on                                                                  
13 August 2003                                                                  
For more details contact:                                                       
Bernard Swanepoel                                                               
on +27(0)83 303 9922                                                            
Ferdi Dippenaar                                                                 
on +27(0)82 807 3684                                                            
Investor Relations Officer                                                      
Corne BobbertTel +27 11 684 0146Fax +27 11 684 0188                             
Mobile +27(0)83 380 6614                                                        
JSE:        HAR               HAR                                               
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
JSE:        HARW                                                                
NYSE:       HMYWS                                                               
ISIN No.:   ZAE000031209                                                        
Date: 13/08/2003 08:08:10 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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