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HARMONY GOLD MINING COMPANY LIMITED - REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER
Release Date: 25/10/2004 11:55:01 Code(s): HARHARMONY GOLD MINING COMPANY LIMITED - REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER
2004
HARMONY GOLD MINING COMPANY LIMITED
Registration number: 1950/038232/06
JSE code: HAR ISIN: ZAE000015228
REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2004
OPERATING AND FINANCIAL RESULTS (Rand/metric)
Underground production - South Africa
Free State Free State Rand-
Growth Marginal Evander fontein
Ore milled
- t"000 Sep-04 1,453 1,065 468 554
Jun-04 1,341 1,132 478 615
Gold produced
- kg Sep-04 8,923 4,080 3,485 2,740
Jun-04 8,148 4,460 2,959 2,797
Yield - g/tonne Sep-04 6,14 3,83 7,45 4,95
Jun-04 6,08 3,94 6,19 4,55
Cash operating Sep-04 67,612 101,412 65,226 81,859
costs - R/kg Jun-04 73,194 95,393 80,859 78,156
Cash operating Sep-04 415 389 486 405
costs - R/tonne Jun-04 445 376 501 355
Working revenue Sep-04 747,677 338,165 289,565 227,203
(R"000) Jun-04 663,484 361,238 239,843 222,388
Cash operating Sep-04 603,304 413,761 227,314 224,295
costs (R"000) Jun-04 596,387 425,452 239,263 218,602
Cash operating Sep-04 144,373 (75,596) 62,251 2,908
profit (R"000) Jun-04 67,097 (64,214) 580 3,786
Elands- Sub-
rand Orkney total
Ore milled - t"000 Sep-04 257 227 4,024
Jun-04 268 236 4,070
Gold produced - kg Sep-04 1,497 1,368 22,093
Jun-04 1,867 1,264 21,495
Yield - g/tonne Sep-04 5,82 6,03 5,49
Jun-04 6,97 5,36 5,28
Cash operating Sep-04 109,265 81,020 78,897
costs - R/kg Jun-04 96,102 82,460 82,036
Cash operating Sep-04 636 488 433
costs - R/tonne Jun-04 669 442 433
Working revenue Sep-04 124,575 111,961 1,839,146
(R"000) Jun-04 154,083 104,431 1,745,467
Cash operating Sep-04 163,570 110,836 1,743,080
costs (R"000) Jun-04 179,423 104,229 1,763,356
Cash operating Sep-04 (38,995) 1,125 96,066
profit (R"000) Jun-04 (25,340) 202 (17,889)
OPERATING AND FINANCIAL RESULTS (Rand/metric)
South South Aus-
Africa Africa tralia
Surface Total Total
Ore milled - t"000 Sep-04 1,591 5,615 950
Jun-04 2,497 6,567 1,137
Gold produced - kg Sep-04 1,297 23,390 2,432
Jun-04 1,501 22,996 2,216
Yield - g/tonne Sep-04 0,82 4,17 2,56
Jun-04 0,60 3,50 1,95
Cash operating Sep-04 83,791 79,169 65,494
costs - R/kg Jun-04 82,576 82,071 68,949
Cash operating Sep-04 68 330 168
costs - R/tonne Jun-04 50 287 134
Working revenue Sep-04 106,684 1,945,830 198,025
(R"000) Jun-04 121,692 1,867,159 187,700
Cash operating Sep-04 108,677 1,851,757 159,282
costs (R"000) Jun-04 123,947 1,887,303 152,790
Cash operating Sep-04 (1,993) 94,073 38,743
profit (R"000) Jun-04 (2,255) (20,144) 34,910
Harmony
excluding * Harmony
Restruct Restruct Total
Ore milled - t"000 Sep-04 6,565 0 6,565
Jun-04 7,704 268 7,972
Gold produced - kg Sep-04 25,822 0 25,822
Jun-04 25,212 1,161 26,373
Yield - g/tonne Sep-04 3,93 0,00 3,93
Jun-04 3,27 4,33 3,31
Cash operating Sep-04 77,881 0 77,881
costs - R/kg Jun-04 80,918 132,146 83,174
Cash operating Sep-04 306 0 306
costs - R/tonne Jun-04 265 572 275
Working revenue Sep-04 2,143,855 0 2,143,855
(R"000) Jun-04 2,054,859 95,677 2,150,536
Cash operating Sep-04 2,011,039 0 2,011,039
costs (R"000) Jun-04 2,040,093 153,421 2,193,514
Cash operating Sep-04 132,816 0 132,816
profit (R"000) Jun-04 14,766 (57,744) (42,978)
* The restructured shafts consist of the Deelkraal operations, Eland shaft
(part of Freegold operations), Orkney 3 and 6 shafts and Welkom 1 shaft.
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)
Quarter ended Quarter ended Quarter ended
30 September 30 June 30 September
2004 2004 2003
Ore milled t"000 6 564 7 972 6 856
Gold produced kg 25 822 26 373 22 725
Gold price received R/kg 83 023 81 543 86 258
Cash operating costs R/kg 77 880 83 173 76 693
R million R million R million
Gold sales 2 144 2 151 1 960
Cash operating costs 2 011 2 194 1 743
Cash operating
profit/(loss) 133 (43) 217
Other income - net 37 40 70
Employment termination
and restructuring costs (154) (184) (12)
Corporate, marketing, new
business expenditure (38) (32) (31)
Exploration expenditure (24) (21) (14)
Income/(loss) from
associates - 46 (7)
Loss on dilution of ARM
Limited - (124) -
Interest paid (100) (99) (55)
Depreciation and amor-
tisation (239) (280) (142)
(Provision for)/reversal
of rehabilitation costs (14) 58 (10)
Gain/(loss) on financial
instruments 1 (110) (172)
Profit on
Australian-listed
investments 4 - -
(Loss)/profit on foreign
exchange (1) 14 (31)
Impairment of investments
and assets - (75) -
Loss before tax (395) (810) (187)
Current tax -
(expense)/benefit (17) 30 (18)
Deferred tax - benefit 72 203 86
Net loss before minority
interests (340) (577) (119)
Minority interests - 18 -
Net loss (340) (559) (119)
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (rand/metric) (unaudited)
Quarter ended Quarter ended Quarter ended
30 September 30 June 30 September
2004 2004 2003
R million R million R million
Loss per share (cents)*
- Basic loss (106) (191) (62)
- Basic loss before
impairment (106) (165) (62)
- Headline loss (110) (131) (67)
- Fully diluted loss ** *** (106) (191) (62)
Dividends per share (cents)
- Interim - - -
- Proposed final - 30 -
Prepared in accordance with International Financial Reporting Standards.
* Calculated on weighted number of shares in issue at quarter end September
2004: 320,8 million (June 2004: 292,9 million) (September 2003: 192,3 million).
** Calculated on weighted average number of diluted shares in issue at quarter
end September 2004: 320,9 million (June 2004: 293,2 million) (September 2003:
190,9 million).
*** The effect of the dilution of shares is anti-dilutive.
Reconciliation of headline loss:
Net loss (340) (559) (119)
Adjustments:
- Profit on sale of assets (10) (44) (9)
- Profit on disposal of Kalplats - (39) -
- Profit on disposal of Bissett - (1) -
- Loss on dilution of ARM Limited - 163 -
- Profit on Australian-listed
investments (4) - -
- Amortisation of goodwill - 21 -
- Impairment of Bendigo - 75 -
Headline loss (354) (384) (128)
ABRIDGED BALANCE SHEET AT 30 SEPTEMBER 2004 (Rand)
At 30 September At 30 June At 30 September
2004 2004 2003
R million R million R million
(unaudited) (audited) (unaudited)
ASSETS
Non-current assets
Property, plant and
equipment 22 489 22 244 14 729
Intangible assets 2 268 2 267 2 843
Investments 2 795 2 612 1 260
Investments in
associates - 124 2 896
27 552 27 247 21 728
Current assets
Inventories 518 531 444
Receivables 401 859 554
Cash and cash
equivalents 1 013 1 414 2 561
1 932 2 804 3 559
Total assets 29 484 30 051 25 287
EQUITY AND LIABILITIES
Share capital and reserves
Issued capital 20 889 20 889 14 698
Fair value and other
reserves (963) (1 186) (346)
Retained earnings 642 1 078 1 585
20 568 20 781 15 937
Minority interest - - 139
Non-current liabilities
Long-term borrowings 2 801 2 790 2 881
Net deferred taxation
liabilities 2 647 2 659 2 742
Net deferred financial
liabilities 573 570 450
Long-term provisions 817 798 840
6 838 6 817 6 913
Current liabilities
Payables and accrued
liabilities 2 044 2 385 1 762
Income and mining taxes 26 60 528
Shareholders for
dividends 8 8 8
2 078 2 453 2 298
Total equity and
liabilities 29 484 30 051 25 287
Number of ordinary
shares in issue 320 819 739 320 741 577 257 858 784
Net asset value per
share (cents) 6 411 6 479 6 234
Basis of accounting
The unaudited results for the quarter 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.
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2004
Issued Fair value
share and other Retained
capital reserves earnings Total
R million R million R million R million
(unaudited) (unaudited)(unaudited)(unaudited)
Balance at 1 July 2004 20 889 (1 186) 1 078 20 781
Currency translation adjustment and
other - 223 - 223
Net earnings - - (340) (340)
Dividends paid - - (96) (96)
Balance at 30 September 2004 20 889 (963) 642 20 568
Balance at 1 July 2003 6 875 (242) 1 995 8 628
Issue of share capital 7 823 - - 7 823
Currency translation adjustment and
other - (104) - (104)
Net earnings - - (119) (119)
Dividends paid - - (291) (291)
Balance at 30 September 2003 14 698 (346) 1 585 15 937
Issued Fair value
share and other Retained
capital reserves earnings Total
US$ million US$ million US$ million US$ million
(unaudited) (unaudited) (unaudited) (unaudited)
Balance at 1 July 2004 3 225 (183) 166 3 208
Currency translation adjustment
and other - 34 - 34
Net earnings - - (52) (52)
Dividends paid - - (15) (15)
Balance at 30 September 2004 3 225 (149) 99 3 175
Balance at 1 July 2003 988 (35) 287 1 240
Issue of share capital 1 124 - - 1 124
Currency translation adjustment
and other - (15) - (15)
Net earnings - - (17) (17)
Dividends paid - - (42) (42)
Balance at 30 September 2003 2 112 (50) 228 2 290
Balances translated at closing rates of: September 2004:
US$1 = R6,48 (September 2003: US$1 = R6,96).
SUMMARISED CASH FLOW STATEMENT
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2004 (unaudited)
Three Three
months months
ended ended
30 September 30 September
2003 2004
US$ million US$ million
Cash flow from operating activites
Cash generated by operations 76 (7)
Interest and dividends received 7 6
Interest paid (7) (9)
Income and mining taxes paid - -
Cash (utilised in)/generated by operating
activities 76 (10)
Cash flow from investing activities
Cash held by subsidiaries at acquisition 98 -
Net additions to property, plant and equipment (28) (35)
Other investing activities 1 9
Cash (utilised in)/generated by investing
activities 71 (26)
Cash flow from financing activities
Long-term loans repaid - -
Ordinary shares issued - net of expenses 13 -
Dividends paid (39) (15)
Cash utilised in financing activities (26) (15)
Foreign currency translation adjustments 22 (10)
Net (decrease)/increase in cash and
equivalents 143 (61)
Cash and equivalents - 1 July 225 217
Cash and equivalents - 30 September 368 156
Three Three
months months
ended ended
30 September 30 September
2004 2003
R million R million
Cash flow from operating activites
Cash generated by operations (44) 565
Interest and dividends received 36 52
Interest paid (56) (52)
Income and mining taxes paid - -
Cash (utilised in)/generated by operating
activities (64) 565
Cash flow from investing activities
Cash held by subsidiaries at acquisition - 729
Net additions to property, plant and equipment (224) (211)
Other investing activities 62 7
Cash (utilised in)/generated by investing
activities (162) 525
Cash flow from financing activities
Long-term loans repaid - (3)
Ordinary shares issued - net of expenses - 98
Dividends paid (96) (291)
Cash utilised in financing activities (96) (196)
Foreign currency translation adjustments (17) (20)
Net (decrease)/increase in cash and
equivalents (339) 874
Cash and equivalents - 1 July 1 352 1 687
Cash and equivalents - 30 September 1 013 2 561
Operating activities translated at average rates of: September 2004:
US$1 = R6,38 (September 2003: US$1 = R7,42).
Closing balance translated at closing rates of: September 2004:
US$1 = R6,48 (September 2003: US$1 = R6,96).
SUMMARISED CASH FLOW STATEMENT
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2004 (unaudited)
3 months 3 months
ended ended
30 June 30 September
2004 2004
US$ million US$ million
Cash flow from operating activites
Cash generated by operations (74) (7)
Interest and dividends received 7 6
Interest paid (13) (9)
Income and mining taxes paid (5) -
Cash utilised in operating activities (85) (10)
Cash flow from investing activities
Cash held by subsidiaries at acquisition - -
Net proceeds on disposal of listed investments 2 -
Net additions to property, plant and
equipment (11) (35)
Other investing activities (90) 9
Cash utilised in investing activities (99) (26)
Cash flow from financing activities
Long term loans raised 75 -
Ordinary shares issued - net of expenses (12) -
Dividends paid - (15)
Cash (utilised in)/generated by financing
activities 63 (15)
Foreign currency translation adjustments (22) (10)
Net decrease in cash and equivalents (143) (61)
Cash and equivalents beginning of quarter 370 217
Cash and equivalents - end of quarter 227 156
3 months 3 months
ended ended
30 September 30 June
2004 2004
R million R million
Cash flow from operating activites
Cash generated by operations (44) (486)
Interest and dividends received 36 52
Interest paid (56) (95)
Income and mining taxes paid - (35)
Cash utilised in operating activities (64) (564)
Cash flow from investing activities
Cash held by subsidiaries at acquisition - 1
Net proceeds on disposal of listed investments - 14
Net additions to property, plant and equipment (224) (71)
Other investing activities 62 (599)
Cash utilised in investing activities (162) (655)
Cash flow from financing activities
Long term loans raised - 498
Ordinary shares issued - net of expenses - (76)
Dividends paid (96) -
Cash (utilised in)/generated by financing
activities (96) 422
Foreign currency translation adjustments (17) (126)
Net decrease in cash and equivalents (339) (923)
Cash and equivalents beginning of quarter 1 352 2 337
Cash and equivalents - end of quarter 1 013 1 414
Operating activities translated at average rates of: September 2004:
US$1 = R6,38 (June 2004 quarter: US$1 = R6,60).
Closing balance translated at closing rates of: September 2004:
US$1 = R6,48 (June 2004: US$1 = R6,23).
CONTACT DETAILS
Harmony Gold Mining Company Limited
Corporate Office
Suite No. 1
Private Bag X1
Melrose Arch, 2076
South Africa
First Floor
4 The High Street
Melrose Arch, 2196
Johannesburg
South Africa
Telephone: +27 11 684 0140
Fax: +27 11 684 0188
Website: http://www.harmony.co.za
Directors
P T Motsepe (Chairman)
Z B Swanepoel (Chief Executive)
F Abbott, F Dippenaar, V N Fakude, T S A Grobicki
W M Gule, D S Lushaba, R P Menell, M Motloba, Dr M Z Nkosi
M F Pleming, N Qangule, C M L Savage
Investor Relations
Ferdi Dippenaar
Marketing Director
Telephone: +27 11 684 0140
Fax: +27 11 684 0188
E-mail: fdippenaar@harmony.co.za
Corne Bobbert
Investor Relations Officer
Telephone: +27 11 684 0146
Fax: +27 11 684 0188
E-mail: cbobbert@harmony.co.za
Marian van der Walt
Company Secretary
Telephone: +27 11 411 2037
Fax: +27 11 411 2398
E-mail: mvanderwalt@harmony.co.za
South African Share Transfer Secretaries
Ultra Registrars (Pty) Ltd
PO Box 4844
Johannesburg, 2000
Telephone: +27 11 832 2652
Fax: +27 11 834 4398
United Kingdom Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone: +44 870 162 3100
Fax: +44 208 639 2342
ADR Depositary
The Bank of New York
101 Barclay Street
New York, NY 10286
United States of America
Telephone: +1888-BNY ADRS
Fax: +1 212 571 3050
Trading Symbols
JSE Securities Exchange South Africa HAR
New York Stock Exchange, Inc. HMY
London Stock Exchange plc HRM
Euronext Paris HG
Euronext Brussels HMY
Berlin Stock Exchange HAM1
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
Date: 25/10/2004 11:55:17 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department