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HARMONY - REVIEW FOR THE QUARTER ENDED 31 DECEMBER 2004

Release Date: 03/02/2005 11:30:02      Code(s): HAR
HARMONY - REVIEW FOR THE QUARTER ENDED 31 DECEMBER 2004                         
HARMONY GOLD MINING COMPANY LIMITED                                             
Registration number 1950/038232/06                                              
Incorporated in the Republic of South Africa                                    
ISIN: ZAE000015228                                                              
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                                     
REVIEW FOR THE QUARTER ENDED 31 DECEMBER 2004                                   
Operating and Financial Results (Rand/Metric)                                   
Harmony Gold Mine Co. Ltd       Underground production - South Africa           
Leve-                   
                           Quality       Growth         raged                   
                            Ounces     Projects        Ounces     Sub total     
Ore milled -                                                                    
t"000         Dec-04         1,815          360         1,426         3,601     
              Sep-04         1,929          386         1,708         4,023     
Gold produced                                                                   
- kg          Dec-04        11,676        2,022         6,956        20,654     
Sep-04        12,323        2,015         7,755        22,093     
Yield -                                                                         
g/tonne       Dec-04          6.43         5.62          4.88          5.74     
              Sep-04          6.39         5.22          4.54          5.49     
Cash                                                                            
operating                                                                       
costs - R/kg  Dec-04        65,224       93,376        98,600        79,222     
              Sep-04        66,118      101,121        93,430        78,897     
Cash operating                                                                  
costs -                                                                         
R/tonne       Dec-04           420          524           481           454     
              Sep-04           422          528           424           433     
Working revenue                                                                 
(R"000)       Dec-04       979,664      169,677       584,249     1,733,590     
              Sep-04     1,028,768      167,492       642,886     1,839,146     
Cash operating                                                                  
costs (R"000) Dec-04       761,558      188,806       685,859     1,636,223     
              Sep-04       814,772      203,759       724,549     1,743,080     
Cash operating                                                                  
profit                                                                          
(R"000)       Dec-04       218,106     (19,129)     (101,610)        97,367     
              Sep-04       213,996     (36,267)      (81,663)        96,066     
Capital                                                                         
expenditure                                                                     
(R"000)       Dec-04        50,790      106,448        13,214       170,452     
              Sep-04        47,384       92,227        21,566       161,177     
Quality Ounces - Evander Shafts, Randfontein Cooke Shafts, Target, Tshepong,    
Masimong                                                                        
Growth Projects - Doorkop shaft and South Reef Project, Elandsrand shaft and    
New Mine Project, Phakisa shaft, Tshepong Decline Project                       
Leveraged Ounces - Bambanani, Joel, Kudu/Sable, West, Nyala, St Helena,         
Harmony 2, Merriespruit 1 and 3, Unisel, Brand 3 and 5, Saaiplaas 3, Evander 9, 
Orkney 2 and 4                                                                  
OPERATING AND FINANCIAL RESULTS (Rand/metric)                                   
                       South Africa  South Africa   Australia       Harmony     
                            Surface         Total       Total         Total     
Ore milled -                                                                    
t"000            Dec-04       1,334         4,935         981         5,916     
                 Sep-04       1,591         5,614         950         6,564     
Gold produced -                                                                 
kg               Dec-04       1,454        22,108       2,496        24,604     
                 Sep-04       1,297        23,390       2,432        25,822     
Yield - g/tonne  Dec-04        1.09          4.48        2.54          4.16     
                 Sep-04        0.82          4.17        2.56          3.93     
Cash operating   Dec-04      80,183        79,284      60,859        77,415     
costs - R/kg     Sep-04      83,791        79,169      65,494        77,881     
Cash operating   Dec-04          87           355         155           322     
costs - R/tonne  Sep-04          68           330         168           306     
Working Revenue  Dec-04     122,780     1,856,370     211,123     2,067,493     
(R"000)          Sep-04     106,684     1,945,830     198,025     2,143,855     
Cash operating   Dec-04     116,586     1,752,809     151,904     1,904,713     
costs (R"000)    Sep-04     108,677     1,851,757     159,282     2,011,039     
Cash operating   Dec-04       6,194       103,561      59,219       162,780     
profit (R"000)   Sep-04     (1,993)        94,073      38,743       132,816     
Capital                                                                         
expenditure      Dec-04           0       170,452      60,060       230,512     
(R"000)          Sep-04           0       161,177      76,800       237,977     
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)        
                                  Quarter ended Quarter ended Quarter ended     
                                    31 December  30 September   31 December     
2004          2004          2003     
Ore milled            t"000               5 916         6 564         8 183     
Gold produced         kg                 24 604        25 822        29 294     
Gold price received   R/kg               84 031        83 023        85 139     
Cash operating costs  R/kg               77 415        77 881        75 888     
                                      R million     R million     R million     
Gold sales                                2 068         2 144         2 494     
Cash operating costs                      1 905         2 011         2 223     
Cash operating profit                       163           133           271     
Other income - net                           11            37            65     
Employment termination and                                                      
restructuring costs                       (109)         (154)          (20)     
Corporate, marketing and new business                                           
expenditure                                (41)          (38)          (43)     
Exploration expenditure                    (20)          (24)          (35)     
Loss from associates                          -             -          (34)     
Profit on sale of Highland and High                                             
River                                         -             -           522     
Interest paid                             (104)         (100)         (107)     
Depreciation and amortisation             (216)         (239)         (246)     
Provision for rehabilitation costs         (14)          (14)          (18)     
Gain/(loss) on financial instruments       (29)             1            11     
Profit on Australian-listed                                                     
investments                                   -             4             -     
Profit/(loss) on foreign exchange            14           (1)          (50)     
(Loss)/income before tax                  (345)         (395)           316     
Current tax - benefit/(expense)              56          (17)          (84)     
Deferred tax - benefit                       12            72            10     
Net (loss)/income before minority                                               
interests                                 (277)         (340)           242     
Minority interests                            -             -           (6)     
Net (loss)/income                         (277)         (340)           236     
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)        
                             Quarter ended    Quarter ended   Quarter ended     
                               31 December     30 September     31 December     
                                      2004             2004            2003     
R million        R million       R million     
(Loss)/earnings per share                                                       
(cents)*                                                                        
- Basic (loss)/earnings               (80)            (106)              92     
- Headline loss                       (88)            (110)            (66)     
- Fully diluted                                                                 
(loss)/earnings** ***                 (80)            (106)              92     
Dividends per share (cents)                                                     
- Interim                                -                -              40     
- Proposed final                         -                -               -     
Prepared in accordance with International Financial Reporting Standards.        
  * Calculated on weighted average number of shares in issue at quarter end     
December 2004: 345.0 million                                                
    (September 2004: 320.8 million) (December 2003: 257.9 million).             
 ** Calculated on weighted average number of diluted shares in issue at         
    quarter end December 2004: 344.7 million                                    
(September 2004: 320.9 million) (December 2003: 256.5 million).             
*** The effect of the dilution of shares is anti-dilutive.                      
Reconciliation of headline loss:                                                
Net (loss)/earnings                   (277)            (340)            236     
Adjustments:                                                                    
- Profit on sale of assets             (25)             (10)            (3)     
- Profit on disposal of Highland                                                
and High River - net of tax               -               -           (444)     
- Profit on Australian-listed investments -              (4)             -      
- Amortisation of goodwill                -               -              41     
Headline loss                         (302)            (354)          (170)     
ABRIDGED BALANCE SHEET AT 31 DECEMBER 2004 (Rand)                               
At 31 December     At 30 September     At 31 December     
                                2004                2004               2003     
                           R million           R million          R million     
                         (unaudited)         (unaudited)        (unaudited)     
ASSETS                                                                          
Non-current assets                                                              
Property, plant and                                                             
equipment                     22,390              22,489             14,911     
Intangible assets              2,268               2,268              2,803     
Investments                    6,364               2,795              1,098     
Investments in                                                                  
associates                         -                   -              2,564     
31,022              27,552             21,376     
Current assets                                                                  
Inventories                      550                 518                463     
Receivables                      383                 401                551     
Cash and cash                                                                   
equivalents                      296               1,013              2,888     
                               1,229               1,932              3,902     
Total assets                  32,251              29,484             25,278     
EQUITY AND LIABILITIES                                                          
Share capital and                                                               
reserves                                                                        
Issued capital                25,313              20,889             14,673     
Fair value and other                                                            
reserves                     (2,061)               (963)              (243)     
Retained earnings                364                 642              1,821     
                              23,616              20,568             16,251     
Minority interest                  -                   -                155     
Non-current                                                                     
liabilities                                                                     
Long-term borrowings           2,861               2,801              2,863     
Net deferred taxation                                                           
liabilities                    2,549               2,647              2,779     
Net deferred                                                                    
financial liabilities            529                 573                432     
Long-term provisions             825                 817                860     
                               6,764               6,838              6,934     
Current liabilities                                                             
Payables and accrued                                                            
liabilities                    1,834               2,044              1,658     
Income and mining                                                               
taxes                             27                  26                272     
Shareholders for                                                                
dividends                         10                   8                  8     
                               1,871               2,078              1,938     
Total equity and                                                                
liabilities                   32,251              29,484             25,278     
Number of ordinary                                                              
shares in issue          392,993,004         320,819,739        258,350,934     
Net asset value per                                                             
share (cents)                  6,009               6,411              6,351     
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 SIX MONTHS ENDED 31 DECEMBER 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 as at 1 July 2004           20,889     (1,186)     1,078     20,781     
Issue of share capital               4,424                            4,424     
Currency translation adjustment and                                             
other                                            (875)                (875)     
Net loss                                                   (617)      (617)     
Dividends paid                                              (96)       (96)     
Balance as at 31 December 2004      25,313     (2,061)       365     23,617     
Balance as at 1 July 2003            6,875       (242)     1,995      8,628     
Issue of share capital               7,798                            7,798     
Currency translation adjustment and                                             
other                                              (1)                  (1)     
Net earnings                                                 117        117     
Dividends paid                                             (291)      (291)     
Balance as at 31 December 2003      14,673       (243)     1,821     16,251     
                                    Issued  Fair value                          
share   and other   Retained               
                                   capital    reserves   earnings        Total  
                               US$ million US$ million US$ million US$ million  
                               (unaudited) (unaudited) (unaudited) (unaudited)  
Balance as at 1 July 2004            3,711       (211)        192        3,692  
Issue of share capital                 786                                 786  
Currency translation adjustment and                                             
other                                            (155)                   (155)  
Net loss                                                     (110)       (110)  
Dividends paid                                                (17)        (17)  
Balance as at 31 December 2004       4,497       (366)         65        4,196  
Balance as at 1 July 2003            1,026        (36)        298        1,288  
Issue of share capital               1,164                               1,164  
Currency translation adjustment and                                             
other                                               -                        -  
Net earnings                                                   17           17  
Dividends paid                                               (43)         (43)  
Balance as at 31 December 2003       2,190       (36)         272        2,426  
Balances translated at closing rates of: December 2004: US$1 = R5.63            
(December 2003: US$1 = R6.70).                                                  
SUMMARISED CASH FLOW STATEMENT                                                  
FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 (unaudited)                           
                                                        Six             Six     
                                                     months          months     
ended           ended     
                                                31 December     31 December     
                                                       2003            2004     
                                                US$ million     US$ million     
Cash flow from operating activities                                             
Cash generated by operations                             73            (62)     
Interest and dividends received                          14              10     
Interest paid                                          (18)            (19)     
Income and mining taxes paid                           (50)               -     
Cash (utilised)/generated by operating                                          
activities                                               19            (71)     
Cash flow from investing activities                                             
Cash held by subsidiaries at acquisition                103               -     
Net (additions)/proceeds on disposal of listed                                  
investments                                             140             (9)     
Net additions to property, plant and equipment         (58)            (66)     
Other investing activities                                -               -     
Cash (utilised)/generated by investing                                          
activities                                              185            (75)     
Cash flow from financing activities                                             
Long-term loans raised/(repaid)                         (9)               3     
Ordinary shares issued - net of expenses                 10             (6)     
Dividends paid                                         (41)            (15)     
Cash utilised by financing activities                  (40)            (18)     
Foreign currency translation adjustments                 42               -     
Net (decrease)/increase in cash and equivalents         206           (164)     
Cash and equivalents - 1 July                           225             217     
Cash and equivalents - 31 December                      431              53     
Six             Six     
                                                     months          months     
                                                      ended           ended     
                                                31 December     31 December     
2004            2003     
                                                  R million       R million     
Cash flow from operating activities                                             
Cash generated by operations                          (382)             513     
Interest and dividends received                          63             102     
Interest paid                                         (120)           (127)     
Income and mining taxes paid                              -           (355)     
Cash (utilised)/generated by operating                                          
activities                                            (439)             133     
Cash flow from investing activities                                             
Cash held by subsidiaries at acquisition                  -             729     
Net (additions)/proceeds on disposal of listed                                  
investments                                            (57)             994     
Net additions to property, plant and equipment        (407)           (413)     
Other investing activities                                1               1     
Cash (utilised)/generated by investing                                          
activities                                            (463)           1,311     
Cash flow from financing activities                                             
Long-term loans raised/(repaid)                          18            (63)     
Ordinary shares issued - net of expenses               (36)              73     
Dividends paid                                         (95)           (292)     
Cash utilised by financing activities                 (113)           (282)     
Foreign currency translation adjustments              (103)              39     
Net (decrease)/increase in cash and equivalents     (1,118)           1,201     
Cash and equivalents - 1 July                         1,414           1,687     
Cash and equivalents - 31 December                      296           2,888     
Operating activities translated at average rates of: December 2004:             
US$1 = R6.21 (December 2003: US$1 = R7.08).                                     
Closing balance translated at closing rates of: December 2004: US$1 = R5.63     
(December 2003: US$1 = R6.70).                                                  
SUMMARISED CASH FLOW STATEMENT                                                  
FOR THE THREE MONTHS ENDED 31 DECEMBER 2004 (unaudited)                         
Three           Three     
                                                     months          months     
                                                      ended           ended     
                                               30 September     31 December     
2004            2004     
                                                US$ million     US$ million     
Cash flow from operating activities                                             
Cash generated by operations                            (7)            (54)     
Interest and dividends received                           6               4     
Interest paid                                           (9)            (10)     
Income and mining taxes paid                              -               -     
Cash utilised by operating activities                  (10)            (60)     
Cash flow from investing activities                                             
Cash held by subsidiaries at acquisition                  -               -     
Net additions of listed investments                       -             (9)     
Net additions to property, plant and equipment         (35)            (29)     
Other investing activities                                -               -     
Cash utilised by investing activities                  (35)            (38)     
Cash flow from financing activities                                             
Long-term loans raised                                    -               3     
Ordinary shares issued - net of expenses                  -             (6)     
Dividends paid                                         (15)               -     
Cash utilised by financing activities                  (15)             (3)     
Foreign currency translation adjustments               (11)             (2)     
Net decrease in cash and equivalents                   (71)           (103)     
Cash and equivalents - beginning of quarter            227             156      
Cash and equivalents - end of quarter                   156              53     
                                                     Three            Three     
months           months     
                                                     ended            ended     
                                               31 December     30 September     
                                                      2004             2004     
R million        R million     
Cash flow from operating activities                                             
Cash generated by operations                         (338)             (44)     
Interest and dividends received                         27               36     
Interest paid                                         (64)             (56)     
Income and mining taxes paid                             -                -     
Cash utilised by operating activities                (375)             (64)     
Cash flow from investing activities                                             
Cash held by subsidiaries at acquisition                 -                -     
Net additions of listed investments                   (57)                -     
Net additions to property, plant and equipment       (183)            (224)     
Other investing activities                               -                -     
Cash utilised by investing activities                (240)            (224)     
Cash flow from financing activities                                             
Long-term loans raised                                  18                -     
Ordinary shares issued - net of expenses              (36)                -     
Dividends paid                                           1             (96)     
Cash utilised by financing activities                 (17)             (96)     
Foreign currency translation adjustments              (85)             (17)     
Net decrease in cash and equivalents                 (717)            (401)     
Cash and equivalents - beginning of quarter          1,013            1,414     
Cash and equivalents - end of quarter                  296            1,013     
Operating activities translated at average rates of: December 2004 quarter:     
US$1 = R6.03 (September 2004 quarter: US$1 = R6.38).                            
Closing balance translated at closing rates of: December 2004:                  
US$1 = R5.63 (September 2004: US$1 = R6.48).                                    
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: 03/02/2005 11:30:48 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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