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HARMONY - HARMONY INCREASES CASH OPERATING PROFITS BY 23% TO R163 MILLION

Release Date: 03/02/2005 11:31:02      Code(s): HAR
HARMONY - HARMONY INCREASES CASH OPERATING PROFITS BY 23% TO R163 MILLION       
HARMONY GOLD MINING COMPANY LIMITED                                             
Registration number 1950/038232/06                                              
Incorporated in the Republic of South Africa                                    
ISIN: ZAE000015228                                                              
JSE Securities Exchange South Africa   HAR                                      
New York Stock Exchange, Inc.          HMY                                      
PRESS RELEASE                                                                   
HARMONY INCREASES CASH OPERATING PROFITS BY 23% TO R163 MILLION                 
Johannesburg, Thursday 3 February 2005 - Harmony Gold Mining Company Limited    
(NYSE: HMY JSE: HAR) today announced that its restructuring programme was       
delivering solid results.  Cash operating profit improved by 23%, from          
R133 million in the September 2004 quarter to R163 million.  In line with its   
restructuring plan, production decreased by 5% to 24 604 kg (Sept 2004 -        
25 822 kg).  The company"s focus on mining according to optimum cut-offs        
continued to deliver the anticipated returns, with the average grade of the     
South African underground operations increasing by 4% to 5,74 g/t.              
Quarter on quarter, working costs decreased by R106,3 million or 5%. In R/kg    
terms, costs decreased by 1% to R77 415/kg.                                     
"For the financial year ending June 2004, Harmony reported costs of R79 599/kg. 
Even after the inclusion of the 7% annual wage increases, and industry costs    
pressures, we have managed to decrease costs by 3% over the past six months, an 
excellent cost performance." commented Chief Executive Bernard Swanepoel        
Although the company reported cash earnings of 47 cents per share, extraordinary
expenses for mainly retrenchment and restructuring charges, resulted in a loss  
of 80 cents per share.                                                          
The company"s balance sheet remains strong, with the inclusion of its 11,5%     
shareholding in Gold Fields, which is valued at approximately R3,8 bn.          
"This allows us to continue investing in our range of growth projects in South  
Africa and Australasia.  These projects will deliver real production growth to  
the company in the near future, Elandsrand"s progress being a good example of   
the future quality of our asset profile," continued Bernard.                    
Commenting on the progress of Harmony"s bid for Gold Fields, Bernard said:      
"Harmony today consists of a combination of assets, a grouping consisting of    
operating mines which, in terms of its low cash cost profile compares with the  
best in the South African Industry and some ore bodies which continue to offer  
optionality and leverage to a higher R/kg gold price scenario.  The same applies
to Gold Fields if the shafts are evaluated on a stand alone profitability basis.
This supports our compelling logic for the merging of the two companies to      
create the world"s largest gold producer with a low cash cost profile, but with 
significant optionality that comes with its South African exposure.  A true     
value proposition to all stakeholders, i.e. shareholders, employees and         
communities."                                                                   
Both Harmony, on 5 November 2004, and Gold Fields, on 15 December 2004, filed   
their notifications on the proposed merger to the Competition Authorities.  In  
terms of the process, the Competition Commission is to submit its written       
recommendation to the Competition Tribunal by 11 February 2005.                 
ENDS                                                                            
ADDITIONAL INFORMATION                                                          
                            December       September           %                
                                2004            2004    Variance                
Production     - kg           24 604          25 822          (5)               
Production     - oz          791 033         830 192          (5)               
Revenue        - R/kg         84 031          83 023           1                
Revenue        - US$/oz          434             405           7                
Cash cost      - R/kg         77 415          77 881           1                
Cash cost      - US$/oz          400             380          (5)               
Exchange rate                   6,03            6,38          (5)               
                                 Dec            Sept           %                
2004            2004    Variance                
Cash operating profit (R"m)      163             133          23                
Cash operating profit margin       8%              6%         33                
Cash earnings per share           47              41          15                
EPS (cents)                      (80)           (106)         25                
In connection with the proposed merger, Harmony will file with the United States
Securities and Exchange Commission ("SEC"), a registration statement on Form F- 
4, which will include a preliminary prospectus and related exchange offer       
materials, to register the Harmony ordinary shares (including Harmony ordinary  
shares represented by Harmony American Depository Shares ("ADSs")) to be issued 
in exchange for Gold Fields ordinary shares held by holders located in the      
United States of America ("United States" or "US") and for Gold Fields ADSs held
by holders wherever located, as well as a Statement on Schedule TO.  Investors  
and holders of Gold Fields securities are strongly advised to read the          
registration statement and the preliminary prospectus, the related exchange     
offer materials and the final prospectus (when available), the Statement on     
Schedule TO and any other relevant documents filed with the SEC, as well as any 
amendments and supplements to those documents, because they will contain        
important information.  Investors and holders of Gold Fields securities may     
obtain free copies of the registration statement, the preliminary and final     
prospectus and related exchange offer materials and the Statement on Schedule   
TO, as well as other relevant documents filed with the SEC, at the SEC"s web    
site at www.sec.gov and will receive information at an appropriate time on how  
to obtain transaction-related documents for free from Harmony or its duly       
designated agent.                                                               
This communication is for information purposes only.  It shall not constitute an
offer to purchase or exchange or the solicitation of an offer to sell or        
exchange any securities of Gold Fields or an offer to sell or exchange or the   
solicitation of an offer to buy or exchange any securities of Harmony in the US,
nor shall there be any sale or exchange of securities in any jurisdiction in    
which such offer, solicitation or sale or exchange would be unlawful prior to   
the registration or qualification under the laws of such jurisdiction.  The     
distribution of this communication may, in some countries, be restricted by law 
or regulation.  Accordingly, persons who come into possession of this           
communication should inform themselves of and observe these restrictions.  The  
solicitation of offers to buy Gold Fields ordinary shares (including Gold Fields
ordinary shares represented by Gold Fields ADSs) in the US will only be made    
pursuant to a prospectus and related offer materials that Harmony expects to    
send to holders of Gold Fields securities.  The Harmony ordinary shares         
(including Harmony ordinary shares represented by Harmony ADSs) may not be sold,
nor may offers to buy be accepted, in the US prior to the time the registration 
statement becomes effective.  No offering of securities shall be made in the US 
except by means of a prospectus meeting the requirements of Section 10 of the   
United States Securities Act of 1933, as amended.                               
Forward-looking Statements                                                      
Statements in this announcement include "forward-looking statements" that       
express or imply expectations of future events or results.  Forward-looking     
statements are statements that are not historical facts.  These statements      
include financial projections and estimates and their underlying assumptions,   
statements regarding plans, objectives and expectations with respect to future  
operations, products and services, and statements regarding future performance. 
Forward-looking statements are generally identified by the words "expect,"      
"anticipates," "believes," "intends," "estimates" and similar expressions.  All 
forward-looking statements involve a number of risks, uncertainties and other   
factors, and Harmony cannot give assurances that such statements will prove to  
be correct.  Risks, uncertainties and other factors that could cause actual     
events or results to differ from those expressed or implied by the forward-     
looking statements include, without limitation, the satisfaction of closing     
conditions, the acceptance or rejection of any agreement by regulators, delays  
in the regulatory processes, changes in the economic or political situation in  
South Africa, the European Union, the US and/or any other relevant jurisdiction,
changes in the gold industry within any such country or area or worldwide and   
the performance of (and cost savings realised by) Harmony.  Although Harmony"s  
management believes that the expectations reflected in such forward-looking     
statements are reasonable, investors and holders of Gold Fields securities are  
cautioned that forward-looking information and statements are subject to various
risks and uncertainties, many of which are difficult to predict and generally   
beyond the control of Harmony, that could cause actual results and developments 
to differ materially from those expressed in, or implied or projected by, the   
forward-looking information and statements.  These risks and uncertainties      
include those discussed or identified in the public filings with the SEC made by
Harmony and Gold Fields, including those listed under "Cautionary Statement     
Concerning Forward-Looking Statements" and "Risk Factors" in the preliminary    
prospectus included in the registration statement on Form F-4 that Harmony will 
file with the SEC.  Harmony does not undertake any obligation to update any     
forward-looking information or statements. You may obtain a free copy of the    
registration statement and preliminary and final prospectus (when available) and
other public documents filed with the SEC in the manner described above.        
Date: 03/02/2005 11:31:09 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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