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Harmony - Reviewed results for the quarter ended 30 June 2005

Release Date: 08/08/2005 08:00:01      Code(s): HAR
Harmony - Reviewed results for the quarter ended 30 June 2005                   
Harmony Gold Mining Company Limited                                             
Trading Symbols                                                                 
JSE Securities Limited                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                                                              
Reviewed results for the quarter ended 30 June 2005                             
OPERATING AND FINANCIAL RESULTS (Rand/metric) (unaudited)                       
                                Underground production - South Africa           
Leve-                     
                           Quality       Growth       raged                     
                            Ounces     Projects      Ounces       Sub total     
Ore milled                                                                      
- t"000         Jun-05       1 508          331         1 095         2 934     
                Mar-05       1 570          323         1 062         2 955     
Gold produced                                                                   
- kg            Jun-05       9 073        1 933         5 181        16 187     
Mar-05       9 819        2 119         5 481        17 419     
Yield                                                                           
- g/tonne       Jun-05        6.02         5.84          4.73          5.52     
                Mar-05        6.25         6.56          5.16          5.89     
Cash operating                                                                  
costs                                                                           
- R/kg          Jun-05      78 462       99 609       111 162        91 455     
                Mar-05      76 518       91 828       107 805        88 225     
Cash operating                                                                  
costs                                                                           
- R/tonne       Jun-05         472          582           526           505     
                Mar-05         479          602           556           520     
Working revenue                                                                 
(R"000)         Jun-05     816 768      172 999       468 577     1 458 344     
                Mar-05     818 078      176 389       459 366     1 453 833     
Cash operating                                                                  
costs (R"000)   Jun-05     711 887      192 544       575 931     1 480 362     
                Mar-05     751 329      194 583       590 878     1 536 790     
Cash operating                                                                  
profit (R"000)  Jun-05     104 881     (19 545)     (107 354)      (22 018)     
Mar-05      66 749     (18 194)     (131 512)      (82 957)     
Capital                                                                         
expenditure                                                                     
(R"000)         Jun-05      37 237       95 065         4 706       137 008     
Mar-05      34 933       74 870         1 809       111 612     
Quality Ounces - Evander Shafts, Randfontein Cooke Shafts, Target, Tshepong,    
Masimong Growth Projects - Doornkop shaft and South Reef Project, Elandsrand    
shaft and New Mine Project, Phakisa shaft, Tshepong Decline Project             
Leveraged Ounces - Deelkraal, Bambanani, Joel, Eland, 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, Welkom 1                                          
OPERATING AND FINANCIAL RESULTS (Rand/metric) (unaudited)                       
South Africa  South Africa   Australia       Harmony     
                            Surface         Total       Total         Total     
Ore milled                                                                      
- t"000          Jun-05       1 415         4 349         849         5 198     
Mar-05       1 533         4 488         975         5 463     
Gold produced                                                                   
- kg             Jun-05       1 536        17 723       2 163        19 886     
                 Mar-05       1 564        18 983       2 143        21 126     
Yield                                                                           
- g/tonne        Jun-05        1.09          4.08        2.55          3.83     
                 Mar-05        1.02          4.23        2.20          3.87     
Cash                                                                            
operating        Jun-05      70 815        89 665      69 398        87 461     
costs                                                                           
- R/kg           Mar-05      76 187        87 233      73 729        85 863     
Cash                                                                            
operating        Jun-05          77           365         177           335     
costs                                                                           
- R/tonne        Mar-05          78           369         162           332     
Working                                                                         
revenue          Jun-05     135 789     1 594 133     190 463     1 784 596     
(R"000)          Mar-05     128 104     1 581 937     177 293     1 759 230     
Cash                                                                            
operating        Jun-05     108 772     1 589 134     150 108     1 739 242     
costs                                                                           
(R"000)          Mar-05     119 157     1 655 947     158 002     1 813 949     
Cash                                                                            
operating        Jun-05      27 017         4 999      40 355        45 354     
profit                                                                          
(R"000)          Mar-05       8 947      (74 010)      19 291      (54 719)     
Capital                                                                         
expenditure      Jun-05           0       137 008      65 514       202 522     
(R"000)          Mar-05           0       111 612      44 590       156 202     
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)        
                                  Quarter ended Quarter ended Quarter ended     
                                        30 June      31 March       30 June     
2005          2005          2004     
Ore milled           t"000                5 198         5 463         7 972     
Gold produced        kg                  19 886        21 126        26 373     
Gold price received  R/kg                89 711        83 273        81 543     
Cash operating costs R/kg                87 461        85 863        83 173     
                                      R million     R million     R million     
Gold sales                                1 784         1 759         2 151     
Cash operating costs                      1 739         1 814         2 194     
Cash operating profit/(loss)                 45          (55)          (43)     
Other income - net                           54             9            40     
Employment termination and                                                      
restructuring costs                       (217)         (171)         (184)     
Corporate, marketing, new business                                              
expenditure                                (81)          (46)          (32)     
Exploration expenditure                    (16)          (13)          (21)     
Income from associates                        -             -            46     
Loss on sale of listed investments                                              
and subsidiaries                           (73)         (111)            39     
Dilution of investment in ARM Limited         -             -         (163)     
Loss on sale of investment in                                                   
Goldfields                                (372)             -             -     
Mark-to-market of listed investments         13             -             -     
Interest paid                             (134)          (96)          (99)     
Depreciation and amortisation             (177)         (197)         (280)     
Provision for rehabilitation costs          (6)          (14)            58     
Gain/(loss) on financial instruments        (7)            51         (110)     
Gain/(loss) on foreign exchange            (18)            21            14     
Diminution in carrying value of ARM                                             
investment                                (337)             -             -     
Impairment of assets                          -       (1 513)             -     
Impairment of investments                     -             -          (75)     
Provision for post-retirement benefits     (57)             -             -     
Loss before tax                         (1 383)       (2 135)         (810)     
Current tax - (expense)/benefit           (110)           (5)            30     
Deferred tax - benefit                      352           443           203     
Net loss before minority interests      (1 141)       (1 697)         (577)     
Minority interests                            -             -            18     
Net loss                                (1 141)       (1 697)         (559)     
TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS (Rand/metric) (unaudited)        
                                    Quarter ended Quarter ended Quarter ended   
30 June      31 March       30 June   
                                             2005          2005          2004   
Loss per share - cents *                                                        
- Basic loss                                (291)         (432)         (191)   
- Basic loss before impairment              (291)         (131)         (165)   
- Headline loss                             (102)         (107)         (131)   
- Fully diluted loss ** ***                 (291)         (432)         (191)   
Dividends per share - (cents)                                                   
- Interim                                       -             -             -   
- Proposed final                                -             -            30   
  * Calculated on weighted average number of shares in issue at quarter end     
    June 2005: 392.2 million (March 2005: 393.2 million)                        
(June 2004: 292.9 million).                                                 
 ** Calculated on weighted average number of diluted shares in issue at         
    quarter end June 2005: 392.2 million (March 2005: 392.9 million)            
    (June 2004: 293.2 million).                                                 
*** The effect of the share options is anti-dilutive.                           
Reconciliation of headline loss:                                                
Net loss                                   (1 141)      (1 697)       (559)     
Adjustments:                                                                    
- Profit on sale of assets                    (26)         (18)        (44)     
- Mark-to-market of listed investments           4            -           -     
- Profit on disposal of Kalplats                 -            -        (39)     
- Profit on disposal of Bissett                  -            -         (1)     
- Loss on sale and dilution of investment                                       
in ARM Limited                                 103          111         163     
- Profit on disposal of investment in                                           
Bendigo NL                                    (30)            -           -     
- Loss on disposal of investment in                                             
Goldfields                                     372            -           -     
- Loss on disposal of subsidiaries               1            -           -     
- Amortisation of goodwill                      -            -          21      
- Impairment of fixed assets - net of tax     (19)        1 182           -     
- Impairment of Bendigo                          -            -          75     
- Diminution in carrying value of listed                                        
investments                                    337            -           -     
Headline loss                                (399)        (422)       (384)     
ABRIDGED BALANCE SHEET AT 30 JUNE 2005 (Rand)                                   
                                 At 30 June     At 31 March      At 30 June     
                                       2005            2005            2004     
R million       R million       R million     
                                 (reviewed)     (unaudited)       (audited)     
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment        21 177          21 058          22 244     
Intangible assets                     2 268           2 268           2 267     
Investments                           4 154           6 531           2 612     
Investments in associates                 -               -             124     
27 599          29 857          27 247     
Current assets                                                                  
Inventories                             578             571             531     
Receivables                             632             614             859     
Cash and cash equivalents             1 830           (233)           1 414     
                                      3 040             952           2 804     
Total assets                         30 639          30 809          30 051     
EQUITY AND LIABILITIES                                                          
Share capital and reserves                                                      
Issued capital                       25 289          25 325          20 889     
Fair value and other reserves         (671)         (1 501)         (1 186)     
Retained (loss)/earnings            (2 473)         (1 333)           1 078     
22 145          22 491          20 781     
Non-current liabilities                                                         
Long-term borrowings                  2 422           2 944           2 790     
Net deferred taxation                                                           
liabilities                           1 918           2 141           2 659     
Net deferred financial                                                          
liabilities                             386             452             570     
Long-term provisions                    940             847             798     
5 666           6 384           6 817     
Current liabilities                                                             
Payables and accrued liabilities      1 514           1 336           1 806     
Short-term portion of                                                           
long-term borrowings                  1 333             607             579     
Income and mining taxes                (27)            (18)              60     
Shareholders for dividends                8               9               8     
                                      2 828           1 934           2 453     
Total equity and liabilities         30 639          30 809          30 051     
Number of ordinary shares in                                                    
issue                           393 341 194     393 231 894     320 741 577     
Net asset value per share                                                       
(cents)                               5 625           5 720           6 479     
Basis of accounting                                                             
The unaudited results for the quarter and the year have been prepared on the    
International Financial Reporting Standards (IFRS) basis. These consolidated    
quarterly statements are prepared in accordance with IAS 34, Interim Financial  
Reporting. The accounting policies are consistent with those applied in the     
previous financial year.                                                        
The primary reporting segment for the group is by business segment. As there    
is only one business segment, being mining, extraction and production of gold,  
the relevant disclosures have been given in the abridged balance sheet and      
condensed income statement.                                                     
Audit review                                                                    
The year end results have been reviewed in terms of Rule 3.23 of the Listings   
Requirements of JSE Limited by the company"s auditors, PricewaterhouseCoopers   
Inc. The unqualified review opinion is available on request from the Company    
Secretary.                                                                      
CONDENSED STATEMENT OF CHANGES IN EQUITY                                        
FOR THE YEAR ENDED 30 JUNE 2005                                                 
                                 Issued  Fair value                             
                                  share   and other    Retained                 
capital    reserves    earnings       Total     
(Reviewed)                    R million   R million   R million   R million     
Balance at 1 July 2004           20 889     (1 186)       1 078      20 781     
Issue of share capital                                                          
- net of expenses                 4 400           -           -       4 400     
Currency translation adjustment                                                 
and other                             -         515           -         511     
Net earnings                          -           -     (3 455)     (3 455)     
Dividends paid                        -           -        (96)        (96)     
Balance at 30 June 2005          25 289       (671)     (2 473)      22 145     
Balance at 1 July 2003            6 874       (242)       1 996       8 628     
Issue of share capital           14 015           -           -      14 015     
Currency translation adjustment                                                 
and other                             -       (944)           -       (944)     
Net earnings                          -           -       (523)       (523)     
Dividends paid                        -           -       (395)       (395)     
Balance at 30 June 2004          20 889     (1 186)       1 078      20 781     
                                 Issued  Fair value                             
                                  share   and other    Retained                 
                                capital    reserves    earnings       Total     
(Unaudited)                 US$ million US$ million US$ million US$ million     
Balance at 1 July 2004            3,133       (178)         162       3,117     
Issue of share capital                                                          
- net of expenses                   660           -           -         660     
Currency translation adjustment                                                 
and other                             -          77           -          77     
Net earnings                          -           -       (519)       (519)     
Dividends paid                        -           -        (14)        (14)     
Balance at 30 June 2005           3,793       (101)       (371)       3,321     
Balance at 1 July 2003            1,104        (39)         321       1,386     
Issue of share capital            2,250           -           -       2,250     
Currency translation adjustment                                                 
and other                             -       (151)           -       (151)     
Net earnings                          -           -        (85)        (85)     
Dividends paid                        -           -        (63)        (63)     
Balance at 30 June 2004           3,354       (190)         173       3,337     
Balances translated at closing rates of: June 2005:                             
US$1 = R6.67 (June 2004: US$1 = R6.23).                                         
SUMMARISED CASH FLOW STATEMENT                                                  
FOR THE YEAR ENDED 30 JUNE 2005 (unaudited)                                     
12 months       12 months     
                                                      ended           ended     
                                                    30 June         30 June     
                                                       2004            2005     
US$ million     US$ million     
Cash flow from operating activities                                             
Cash (utilised in)/generated by operations               25           (186)     
Interest and dividends received                          30              24     
Interest paid                                          (46)            (44)     
Income and mining taxes paid                           (84)             (9)     
Cash utilised in operating activities                  (75)           (215)     
Cash flow from investing activities                                             
Cash held by subsidiaries at acquisition                106               1     
Net additions of listed investments                     148             397     
Net additions to property, plant and equipment         (99)           (109)     
Other investing activities                             (94)             (2)     
Cash generated by investing activities                   61             287     
Cash flow from financing activities                                             
Long-term loans raised/(repaid)                          56              31     
Ordinary shares issued - net of expenses                  8            (10)     
Dividends paid                                         (57)            (16)     
Cash (utilised in)/generated by financing                                       
activities                                                7               5     
Foreign currency translation adjustments                  9            (19)     
Net increase/(decrease) in cash and equivalents           2              58     
Cash and equivalents - 1 July                           225             217     
Cash and equivalents - 30 June                          227             275     
                                                  12 months       12 months     
ended           ended     
                                                    30 June         30 June     
                                                       2005            2004     
                                                  R million       R million     
Cash flow from operating activities                                             
Cash (utilised in)/generated by operations          (1 151)             172     
Interest and dividends received                         149             207     
Interest paid                                         (269)           (319)     
Income and mining taxes paid                           (55)           (578)     
Cash utilised in operating activities               (1 326)           (518)     
Cash flow from investing activities                                             
Cash held by subsidiaries at acquisition                  5             730     
Net additions of listed investments                   2 454           1 022     
Net additions to property, plant and equipment        (672)           (680)     
Other investing activities                             (12)           (651)     
Cash generated by investing activities                1 775             421     
Cash flow from financing activities                                             
Long-term loans raised/(repaid)                         191             388     
Ordinary shares issued - net of expenses               (60)              53     
Dividends paid                                         (97)           (395)     
Cash (utilised in)/generated by financing                                       
activities                                               34              46     
Foreign currency translation adjustments               (67)           (222)     
Net increase/(decrease) in cash and equivalents         416           (273)     
Cash and equivalents - 1 July                         1 414           1 687     
Cash and equivalents - 30 June                        1 830           1 414     
Operating activities translated at average rates of: June 2005:                 
US$1 = R6.18 (June 2004: US$1 = R6.89).                                         
Closing balance translated at closing rates of: June 2005:                      
US$1 = R6.67 (June 2004: US$1 = R6.23).                                         
SUMMARISED CASH FLOW STATEMENT                                                  
FOR THE THREE MONTHS ENDED 30 JUNE 2005 (unaudited)                             
Three           Three     
                                                     months          months     
                                                      ended           ended     
                                                   31 March         30 June     
2005            2005     
                                                US$ million     US$ million     
Cash flow from operating activities                                             
Cash utilised in operations                            (87)            (38)     
Interest and dividends received                           7               7     
Interest paid                                          (12)            (12)     
Income and mining taxes paid                            (8)             (1)     
Cash utilised in operating activities                 (100)            (44)     
Cash flow from investing activities                                             
Cash held by subsidiary at acquisition                    -               1     
Net proceeds on disposal of listed investments           24             382     
Net additions to property, plant and equipment         (21)            (22)     
Other investing activities                                -             (2)     
Cash generated by investing activities                    3             359     
Cash flow from financing activities                                             
Long-term loans raised/(repaid)                          10              18     
Ordinary shares issued - net of expenses                  -             (4)     
Dividends paid                                            -               -     
Cash generated by/(utilised in) financing                                       
activities                                               10              14     
Foreign currency translation adjustments                (4)            (16)     
Net increase/(decrease) in cash and equivalents        (91)             313     
Cash and equivalents - beginning of quarter              53            (38)     
Cash and equivalents - end of quarter                  (38)             275     
Three           Three     
                                                     months          months     
                                                      ended           ended     
                                                    30 June        31 March     
2005            2005     
                                                  R million       R million     
Cash flow from operating activities                                             
Cash utilised in operations                           (237)           (532)     
Interest and dividends received                          45              41     
Interest paid                                          (77)            (72)     
Income and mining taxes paid                            (4)            (51)     
Cash utilised in operating activities                 (273)           (614)     
Cash flow from investing activities                                             
Cash held by subsidiary at acquisition                    5               -     
Net proceeds on disposal of listed investments        2 362             149     
Net additions to property, plant and equipment        (136)           (129)     
Other investing activities                             (13)               -     
Cash generated by investing activities                2 218              20     
Cash flow from financing activities                                             
Long-term loans raised/(repaid)                         110              63     
Ordinary shares issued - net of expenses               (24)               -     
Dividends paid                                          (2)               -     
Cash generated by/(utilised in) financing                                       
activities                                               84              63     
Foreign currency translation adjustments                 34               2     
Net increase/(decrease) in cash and equivalents       2 063           (529)     
Cash and equivalents - beginning of quarter           (233)             296     
Cash and equivalents - end of quarter                 1 830           (233)     
Operating activities translated at average rates of: June 2005 quarter:         
US$1 = R6.41 (March 2005 quarter: US$1 = R6.00).                                
Closing balance translated at closing rates of: June 2005:                      
US$1 = R6.67 (March 2005: US$1 = R6.22).                                        
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*, J A Chissano*,F Dippenaar, V N Fakude*, T S A Grobicki               
Dr D S Lushaba*, R P Menell*, M Motloba*, N V Qangule, C M L Savage*            
(*non-executive) (Mozambique)                                                   
Investor Relations                                                              
Brenton Saunders                                                                
Executive - Investor Relations                                                  
Telephone:   +27 11 684 0146                                                    
Fax:         +27 11 684 0188                                                    
Cell:        +27 (0) 83 607 4060                                                
E-mail:      brenton.saunders@harmony.co.za                                     
Vusi Magadana                                                                   
Investor Relations Officer                                                      
Telephone:    +27 11 684 0149                                                   
Fax:          +27 11 684 0188                                                   
Cell:         +27 (0) 72 157 5986                                               
E-mail:       vusi.magadana@harmony.co.za                                       
Marian van der Walt                                                             
Company Secretary                                                               
Telephone:  +27 11 411 2037                                                     
Fax:        +27 11 411 2398                                                     
Cell:       +27 (0) 82 888 1242                                                 
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 Limited                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: 08/08/2005 08:00:21 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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