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HAR - Harmony Gold Mining Company Limited - Trading statement

Release Date: 06/08/2007 14:59:01      Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Trading statement                   
HARMONY GOLD MINING COMPANY LIMITED                                             
Incorporated in 1950                                                            
Registration number 1950/038232/06                                              
Share code: HAR                                                                 
NASDAQ NYSE: HMY                                                                
ISIN: ZAE000015228                                                              
TRADING STATEMENT                                                               
Harmony Gold Mining Company Limited (Harmony) announces that its financial      
results for the quarter ending 30 June 2007 are expected to differ significantly
from those of the three previous quarters as well as from the analysts`         
Shareholders are advised that Harmony expects to announce a headline loss per   
share of between 130 and 160 SA cents per share for the June 2007 quarter,      
compared with the March 2007 quarter headline profit of 58 SA cents per share.  
It is expected that a headline profit of between 20 and 30 SA cents per share   
will be reported for the 2007 financial year compared with a headline loss of   
269 SA cents per share for the 2006 financial year.                             
This quarter-on-quarter variance is attributable to a combination of lower      
production and an increase in costs. Gold production is expected to be down by  
between 8% and 12%, mainly due to, and as previously disclosed, production      
incidents at Bambanani and Joel, lower grades mined at Tshepong as well as the  
underperformance at Mt Magnet`s underground operations in Australia. Progress on
rectifying this situation will be reported at the June 2007 results presentation
to the investment community.                                                    
The combination of lower production and higher cost will result in the June 2007
quarter`s cash cost per kilogram being up by between 35% and 45%. Harmony`s     
total cash operating costs are up by between 25% and 28% quarter-on-quarter. The
company ascribes this in part to the newly installed accounting software system 
that resulted in some of the March quarter`s costs being captured in the June   
2007 quarter and thus the average of the last six months` cost would be a more  
accurate reflection of the company`s current cost base.                         
During the last six months, the company`s cost base increased by between 8% and 
12% on the previous six months. The increase in costs is mainly due to          
consumables (stores) and supervisory labour and detailed plans are being        
implemented to address the production and cost issues.                          
Shareholders are advised of the resignation of the Chief Executive, Bernard     
Swanepoel, with immediate effect and the appointment of Graham Briggs as acting 
Chief Executive.                                                                
"Harmony`s management remains committed to creating shareholder value by        
addressing the company`s cost issues, through disciplined mining and a back to  
basics approach." says acting Chief Executive Graham Briggs.                    
The financial information on which this trading statement is based has not been 
reviewed nor reported on by the company`s auditors. Due to the time taken to    
install new software and the need to have externally audited numbers available, 
the announcement of Harmony`s quarter and year-end financial results has been   
postponed to Monday, 27 August 2007.                                            
6 August 2007                                                                   
Merrill Lynch South Africa (Pty) Limited                                        
Date: 06/08/2007 14:59:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  

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