
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
dividends.
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
cents.
"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.
Ends
Issued by Harmony Gold Mining Company Limited
For release on
Wednesday
13 August 2003
For more details contact:
Bernard Swanepoel
on +27(0)83 303 9922
or
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
cbobbert@harmony.co.za
www.harmony.co.za
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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