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Harmony Has Spent Over R1,7 Billion In The Past 12 Months On Growth Projects,

Release Date: 25/04/2005 08:31:44      Code(s): HAR
Harmony Has Spent Over R1,7 Billion In The Past 12 Months On Growth Projects,   
Exploration, Restructuring And Capex.                                           
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
Share code: HAR     ISIN: ZAE000015228                                          
("Harmony")                                                                     
PRESS RELEASE                                                                   
HARMONY HAS SPENT OVER R1,7 BILLION IN THE PAST 12 MONTHS ON GROWTH PROJECTS,   
EXPLORATION, RESTRUCTURING AND CAPEX.                                           
Johannesburg, Monday 25 April 2005 - Harmony Gold Mining Company Limited        
(NYSE: HMY JSE: HAR) today announced that its restructuring programme was       
nearing completion.                                                             
"In the past year Harmony has spent over R1,7 billion on improving and growing  
its operations. In the past 12-months Harmony has spent R856 million on capital 
expenditure, R235 million on exploration and corporate expenditure and R 618    
million on restructuring. This is designed to return all of Harmony"s           
operations to profitability, whilst continually upgrading the average quality   
of our portfolio through high-quality organic growth and acquisitive            
opportunities. The benefits of this process should become more evident from the 
June quarter." commented Chief Executive Bernard Swanepoel.                     
Production in the March quarter declined by 14,1% to 679 251 oz compared to the 
December quarter and cash operating costs increased by 10,9% to R85 863/kg      
(US$445/oz) as a result of a number of operational disruptions. The company     
reported a cash operating loss of R54,7 million (US$9,12 million).              
"The normal festive season and public holiday disruptions associated with the   
March quarter were compounded by several period specific events including a     
fire at Bambanani, a strike at the Free State operations, a 1% decrease in the  
rand Gold Price received and loss of Sunday work permission in the Free State." 
continued Bernard.                                                              
Harmony continues to focus on returning the South African operations to         
profitability and seek other growth opportunities.                              
Commenting on Harmony"s new business Bernard said: "At Harmony it"s business as 
usual. The Gold Fields bid is but one of our new business initiatives. In       
addition to all of our organic growth projects in South Africa which continue   
at full steam, we also have a new mine we plan to build in Papua New Guinea     
along with several exciting exploration projects in the area. Furthermore our   
new business arm continues to scour the earth for value -adding opportunities   
that fit our skill set and competitive advantages."                             
The Gold Fields bid now heads to the next stage, the South African Competition  
Tribunal hearing, which is scheduled for 3-6 May 2005. Following this and       
assuming a successful ruling, Harmony"s offer will for the first time be        
unconditional marking the end of a period of extensive delay, interference and  
frustration orchestrated by Gold Fields.                                        
"This tribunal ruling will hopefully allow Gold Fields shareholders to finally  
have a say in how and who runs Gold Fields through having the Harmony bid go    
unconditional." Bernard concluded.                                              
Additional Information                                                          
                                            March         Dec             %     
                                             2005        2004      Variance     
Production                   - kg          21 126      24 604          - 14     
Production                   - oz         679 251     791 033          - 14     
Revenue                      - R/kg        83 273      84 031            -1     
Revenue                      - US$/oz         433         434     No change     
Cash cost                    - R/kg        85 863      77 415           +11     
Cash cost                    - US$/oz         445         400           +11     
Exchange rate                - USDZAR        5.99        6,03            -1     
                                                    March 2005     Dec 2004     
Cash operating profit (Rm)                                (55)          163     
Cash operating profit margin                              (3%)           8%     
Cash earnings (loss) per share                            (14)           47     
Headline EPS (cents)                                     (107)         (88)     
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                                                      
The directors of Harmony accept responsibility for the information contained in 
this announcement.To the best of the knowledge and belief of the directors of   
Harmony (who have taken all reasonable care to ensure that such is the case),   
the information contained in this announcement is in accordance with the facts  
and does not omit anything likely to affect the import of such information      
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 uncerta inties, 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 state ments. 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.                                                     
Issued by Harmony Gold Mining                                                   
Company Limited                                                                 
25 April 2005                                                                   
For more details contact:                                                       
Bernard Swanepoel                                                               
Chief Executive                                                                 
on +27(0)83 303 9922                                                            
or                                                                              
Ferdi Dippenaar                                                                 
Marketing Director                                                              
on +27(0)82 807 3684                                                            
or                                                                              
Brenton Saunders                                                                
Executive, Investor Relations                                                   
on +27(0)83 607 4060                                                            
Investor Relations Officer                                                      
Vusi Magadana                                                                   
Office: +27 11 684 0149                                                         
Mobile: +27(0)72 157 5986                                                       
Vusi.magadan@harmony.co.za                                                      
For the comprehensive set of                                                    
results please visit                                                            
www.harmony.co.za                                                               
Corporate Office: Suite No.1 Private Bag X1 Melrose Arch Johannesburg           
South Africa 2076 T +27 (11) 684 0140 F +27 (11) 684 0188                       
www.harmony.co.za              NYSE : HMY        JSE : HAR                      
Date: 25/04/2005 08:32:12 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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