HARMONY GOLD MINING COMPANY LIMITED
HARMONY REVIEW for the quarter ended 31 March 2003
This review includes certain information that is based on management's
reasonable expectations and assumptions. These "forward-looking statements"
include, but are not limited to, statements regarding estimates, intentions and
beliefs, as well as anticipated future production, mine life, market conditions
and costs. While management has prepared this information using the best of
their experience and judgment, and in all good faith, there are risks and
uncertainties involved which could cause results to differ from projections.
Cautionary Note to US Investors - The United States Securities and Exchange
Commission (the "SEC") permits mining companies, in their filings with the SEC,
to disclose only those mineral deposits that a company can economically and
legally extract or produce. We may use certain terms in this quarterly review,
such as "resources", that the SEC guidelines strictly prohibit us from
including in our filings with the SEC.
Key indicators
* Operations well geared for strong South African Rand
* Strengthening of local currency has a R125 million adverse impact on cash
operating profit
* Impact of public holidays contributes R142 million to decline in
profitability
* Good cost control results in actual working costs decreasing for 2nd quarter
in a row
* Close out of 614 000 ounces of Australian hedging contracts
Financial highlights
31 March 2003 31 December 2002
Cash operating profit
- Rand 478 million 763 million
- US$ 57 million 79 million
Earnings
- Rand 235 million 457 million
- US$ 28 million 48 million
Earnings per share
- SA cents per share 130 262
- US cents per share 16 27
31 March 2003 31 December 2002
Gold produced
- kg 22 211 24 078
- oz 714 096 774 121
Cash costs
- R/kg 73 150 68 500
- $/oz 272 222
Chief executive's review March 2003
"Whilst the current gold price environment is becoming more challenging with
the unexpected strengthening of the South African currency, this is the
environment which is similar to that in which Harmony grew substantially. It
was during this time, with South African producers' margins under pressure that
the company grew its production base from 580 000 ounces per annum in 1995 to
the plus 3,0 million ounces for the current financial year."
SAFETY REPORT
The previous quarter's safety performance indicates a delicate balance between
ensuring good production practices and long holiday disruptions. To this
effect, a risk assessment performed after the holiday season indicates a high
correlation between long closure periods and the occurrence of incidents both
naturally and behavioural.
Incidents
We regretfully report that during the past quarter, eight employees lost their
lives.
The following tabulation reflects the quarter on quarter performance in terms
of the key safety indicators:
Indicator/
Frequency rate Objective Mar 2003 Dec 2002 % Change
Total injury/accident - 55.8 55.7 (0.01)
frequency rate*
Lost time incidents* 20.0 25.4 23.5 (7.5)
Shifts lost* 340 401 406 1.1
Fall of ground incidents* 6.0 3.4 9.2 63.5
Fatalities* 0.0 0.4 0.3 (28.9)
* Measured in per million man hours worked.
Some highlights:
* Merriespruit 1 achieved 750 000 fatality free shifts on 6 January 2003.
* Masimong mine achieved 250 000 fatality free shifts on 5 March 2003.
* Mt Magnet Gold Mill, Admin and Geology departments achieved over
1 100 days LTI free during the quarter.
STRATEGIC OVERVIEW
The past quarter has been a challenging period with cash operating profit
decreasing by 37% or R285 million from R762,6 million to R478,4 million. The
company's performance was severely influenced by the;
* continued strengthening of the SA Rand, increasing from R9,61 to the US
Dollar, to R8,37 per US Dollar for the past quarter. This 13% improvement
contributed significantly (R125 million) to cash operating profit decreasing
quarter on quarter. The SA Rand has subsequently strengthened to below R7,60 to
the US Dollar, which, if it continues at these levels, will impact further on
the profitability of the company in the June 2003 quarter,
* the number of public holidays over the Christmas and New Year period.
Although the operations managed to maintain recovery grades at similar levels
as the previous quarter, the loss of six working days (8%) resulted in an 8%
reduction in tonnages from underground. This translates into a direct loss of 1
500 kg from underground and an impact of R142 million on revenue. Although the
current quarter also has a significant number of holidays, we anticipate the
effect to be not so severe,
* in US Dollar per ounce terms, the gold price was higher at US$352/oz compared
to the US$324 for the December 2002 quarter. The strength of our local currency
more than negated the benefits from a higher US Dollar gold price.
The performance of the operations is highlighted in the following table:
%
March 2003 Dec 2002 Variance
Production - kg 22 211 24 078 (8)
Production - oz 714 096 774 121 (8)
Revenue - R/kg 94 687 100 171 (5)
Revenue - US$/oz 352 324 9
Cash cost - R/kg 73 150 68 500 (7)
Cash cost - US$/oz 272 222 (23)
Exchange rate R/US$ 8,37 9,61 .13
The company achieved a US$80/oz or 23% cash operating profit margin with cash
costs of US$272/oz. A profit margin of US$102/oz or 32%, was achieved during
the December 2002 quarter. Over the past 3 quarters, the gold price received in
SA Rand terms decreased by 11% from R106 463/kg to R94 687/kg.
In R/kg terms costs increased by 7% from R68 500/kg to R73 150/kg. This cost
increase can directly be related to the decrease in tonnage from underground,
as the overall recovery grade from the combined operations were slightly lower
at 3,14g/t.
Actual working costs were a very pleasing 2% lower at R1 625 million compared
to the R1 649 million reported previously. Despite the lower tonnage from
underground, unit costs in Rand/tonne were lower at R230/tonne, compared to the
R235/tonne for December 2002. This is the main short-term measure we have to
counter the lower R/kg gold price.
When measured in R/kg terms, the gold price received was 5,5% lower at R94 687/
kg to the R100 171/kg received previously.
After lower taxation in South Africa and the mark to market movement of the
hedge positions in Australia, net earnings at R234,7 million was 49% lower than
the R456,6 million reported previously. Earnings per share decreased from 262
SA cents to 130 SA cents. Earnings per share for the financial year to date
totals 639 SA cents. This compares with the 646 SA cents per share for the same
nine month period of the previous year.
The higher US Dollar gold price levels created an opportunity to further
restructure the Australian hedge books. As at 31 December 2002, the company's
total commitments within the Australian portfolio totalled 1 608 675 ounces.
The outstanding commitments have decreased to 995 000 ounces as at 31 March
2003. The decrease of 613 675 ounces of hedge commitments was achieved with a
combination of hedge close-outs and deliveries into existing positions.
Our growth strategy continues
Whilst the current gold price environment is becoming more challenging with the
unexpected strengthening of the South African currency, this is the environment
which is similar to that in which the company grew substantially. It was during
this time, with South African producers' margins under pressure that the
company grew its production base from 580 000 ounces per annum in 1995 to the
plus 3,0 million ounces for the current financial year.
Progress on optimising our returns on our company-building acquisitions to date
are:
Return on investments as at march 2003
Acquisition Cash operating
cost profit to date Payback
Project/Operation (R'm) (R'm) Achieved
Evander - June `98 R415 R1 235 10 quarters
Randfontein R750 R1 695 8 quarters
- Jan `00
Elandskraal R988 R695 -
- Mar `01
Free Gold (50%) R1 350 R1 057 -/+ 8 quarters
- Dec `01
Our strategy of growth through acquisitions has left the company in an
extremely robust situation, as we have a range of assets in our portfolio. The
bulk of our production growth will come from our "steady state" and "under
construction" assets. Production growth of 16% is anticipated from the 2,7
million ounces for the past financial year to 3,1 million ounces for the 2002/
03 financial year.
Even if we did not do any further acquisitions, the production profile from
"steady state" and "under construction" assets will allow for further
production growth, peaking at approximately 3,5 million ounces per annum in the
2005/06 financial year.
We are however confident that the projects currently in "feasibility" and
"exploration" stages, will also allow for future growth in production. Work on
proving up the resource base at Bendigo is progressing according to plan.
Preparation of feasibility studies on Joel and Phakisa Shaft (Tshepong South
Shaft), both part of the 50/50 Free Gold Joint Venture, continues.
From a production perspective, Harmony remains a South African producer with
the bulk of its production coming from this country thereby exposing investors
to the volatility of the SA Rand. As much as we now experience the effect of a
strengthening SA Rand, investors in Harmony have leveraged exposure to a
weakening Rand as well as a rising US Dollar gold price.
Bidding for Abelle Limited - increasing our Australasian production base
On 26 February 2003 Harmony announced that we had agreed to subscribe for new
shares and intended to make a public takeover offer for Australian listed gold
producer Abelle Limited. Harmony's offer of A$0,75 cents for the ordinary
shares and A$0,45 cents per option, values the company at A$155 million or
US$90 million on a fully diluted basis. 35 000 000 new shares are to be placed
with Harmony at a price of A$75 cents per share. This placement, which is
subject to Abelle shareholder approval, represents approximately 18% of the
company's share capital. With the inclusion of the 19,95% acquired from the
Guinness Peat Group, Harmony had a relevant interest of 34% in Abelle's issued
share capital on the date of announcement.
As at 24 April 2003, Harmony's total interest in Abelle was 115 915 732 (71,8%)
ordinary shares and 33 014 410 (43,5%) listed options. The offer is now
scheduled to close on 30 April 2003.
Harmony has, through this and other investments over the past few years,
established access and exposure to world class deposits. The Harmony bid values
the Morobe and Wafi assets, which are two of the largest undeveloped gold
deposits in the world, at a cost of US$8,00 per resource ounce.
The acquisition of Abelle Limited is in line with our strategy of creating a
significant gold production base in Australasia. In addition to our current
producing assets, we now have significant interests in three high quality,
prospective growth projects in Bendigo, Morobe and Wafi.
Morobe Project Area
Identified Mineral Resources (IMR) estimates of the Morobe Project total 73,9
million tonnes at 2,2 g/t gold and 30 g/t silver for a combined 5,2 million
ounces of gold and 71 million ounces of silver.
A feasibility study completed by Lycopodium of Australia in October 2002,
estimates a single open pit mine containing 2,8 million ounces of gold and 48
million ounces of silver. Morobe is capable of producing 300 000 ounces of gold
and 4,5 million ounces of silver per annum from a 5 million tonne per annum
processing plant for a period of approximately eight years
The Morobe ore is free milling and cash operating costs are estimated at US$175
/oz.
Although the feasibility study indicated that capital expenditure of A$275
million would be required to complete the project, we are confident that by
applying the "Harmony Way" this estimate will be adjusted downwards
substantially.
Wafi Project Area
Abelle also owns the Wafi Project situated 60 km to the east of Morobe. The
project is in an advanced exploration stage, with a further phase of 5 000 m of
diamond drilling underway.
Wafi consists of two large orebodies, approximately 1 km apart. One is a
substantial porphyry copper-gold deposit with a total identified IMR estimate
of 100 million tonnes at 1,3% copper and 0,6 g/t gold. The other is a
significant gold discovery which contains an IMR estimate of 26 million tonnes
at 3,5 g/t gold (3 million gold ounces), open on strike and dip.
Papua New Guinea (PNG) has in the recent past been a challenging environment in
which to operate. However this area of excellent geological endowment hosts
some of the world's largest and most profitable operating mines such as Porgera
(Placer Dome) and Lihir (Rio Tinto). We are enthusiastic about the fiscal and
political developments in PNG and believe that the region will continue to hold
its place as one of the world's most important gold mining regions.
ROYALTY BILL
On 20 March 2003, the South African Government released the draft Mineral and
Petroleum Royalty Bill.
The Royalty Bill proposes to impose a royalty charge of 3% on revenue to
holders of gold mineral rights in South Africa. The purpose of the Bill being
that the country is entitled to a consideration/royalty for the extraction of
its non-renewable mineral resources. The Bill has been submitted for public
comment until 30 April 2003, whereafter it will be referred back to parliament.
We are of the opinion that any royalty imposed will impact significantly on our
financial results and the cost of mining in South Africa.
In our submission to the Treasury Department we have highlighted the following
points:-
* the current proposed royalty is too high and it will significantly impact on
Harmony's profitability,
* it unfairly penalises lower grade and lower margin operations (most of
Harmony's operations fall into these categories),
* it will result in an increase in costs,
* it will have a negative impact on the pay limits and cut-off's, thus
impacting on the mineable reserves resulting in the reduction of the life of
the operations, which in turn will lead to the loss of jobs,
* it will dampen the drive in organic growth, greenfield and brownfield
projects, and will have a significant impact on the viability of new projects.
It will severely affect the cash flows, which will make a significant impact
especially in the early stages of the project.
* it has a greater negative impact at lower gold prices (Rand/kilogram),
* the other great impact is that it will unfairly penalise the operations that
decide to commence immediately with the conversion of mineral rights, from old
order rights to new order rights, instead of waiting for 5 years to convert,
and
* it will negatively impact on the financing of BEE participation in operations
and/or projects
Although the royalty in isolation is already high compared to other gold
producing countries in the world, any attempt to introduce a new cost without
changing the tax regime of the industry will result in higher costs to
companies. As a concerned custodian of our shareholders' investment, we have
submitted our comments to both the Treasury Department and the Department of
Minerals and Energy.
The impact of the proposed Royalty Bill on the previously announced mining
projects is as follows:-
Effect of 3% Royalty bill
Project Pre-royalty bill Post-royalty bill
Doornkop South Reef NPV R876m R802m
IRR 48% 44%
NPV R765m R716m
Tshepong Decline IRR 51% 47%
NPV R120m R100m
Nyala Shaft IRR 46% 44%
Elandsrand Shaft NPV R1 406m R1 304m
Deepening IRR 33% 32%
Due to the robustness of the Net Present Values (NPV's) and Internal Rates of
Return (IRR's), the future of none of the projects is threatened. The impact on
the returns to our shareholders is however severe with a reduction of R245
million in NPV. This can be translated into 134 SA cents per share value
reduction.
When adjudicating projects or acquisition opportunities, the company has always
assured a conservative approach in the evaluation thereof. Using a real
discount rate of between 7% and 10%, the projects will deliver returns way in
excess of our WACC of approximately 16%.
A gold price of R95 000/kg was used in the evaluation of the above projects. We
do not believe that we need to change the long-term gold price expectation to
below R95 000/kg. Work on the projects will continue and ensure the future
production growth of Harmony.
Both the Joel and Phakisa projects are severely impacted upon by the new
royalties and a decision to proceed or not will be postponed until the Royalty
Bill is finalised.
Strategic investments
i. Bendigo
The 32% stake which Harmony acquired on 14 December 2001, at a cash cost of
A$50 million, is currently valued at A$61 million.
The major activities over the 2002/2003 evaluation programme includes the
development of a production size decline to access several ore bodies that had
previously been defined by drilling, and to mine and process approximately 60
000 tonnes of ore. The objective being to establish orebody shapes, grades and
to determine metallurgical processing parameters.
In a briefing on 25 February 2003, the management of Bendigo indicated that the
Swan Decline had reached a depth of 770 m below surface, and had accessed the
first four reefs in the 12,3 million ounce potential resource. A further 5
reefs are to be evaluated in the next six months. The current on-reef
development and bulk sampling programme is designed to convert the Inferred
Resources, which were previously identified within these reefs, into Reserves.
Management is refining a conceptual plan which indicates a three stage build-up
to full production over four to five years. Subject to the successful
establishment of reserves during the bulk sampling and evaluation programme,
the plan envisages the following stages;
* Stage 1 - 300 000 tonnes per annum to produce approximately 100 000 ounces
per annum. Capital of A$30 to A$40 million is required to start-up the mine
plan.
* Stage 2 - after a two to three year period, production is anticipated to
increase to 250 000 ounces for two years.
* Stage 3 - production increasing to 500 000 ounce per annum.
Total funding requirement is estimated to be approximately A$100 million. At a
production rate of 500 000 ounces per annum, and assuming confirmation of the
grades in the conceptual plan, cash costs of approximately A$200/oz is planned.
Maintenance operating capital costs are estimated at A$50/oz.
ii. Highland Gold Limited
The company's investment of US$26,4 million for a 31% stake in Highland Gold is
currently valued at US$112 million.
For the 2002 financial year, Highland Gold produced 178 000 ounces at cash and
total costs of US$145/oz and US$179/oz respectively. For the quarter ending
March 2003, the company produced 41 000 ounces at cash and total costs of
US$188/oz and US$218/oz respectively.
Highland Gold is pursuing a strategy of acquiring new opportunities in Russia.
iii. High River Gold Mines Limited
The company's 21% interest acquired on 21 November 2002, at a cash cost of
US$14,5 million, is currently valued at US$20,8 million.
Although being diluted through a placement of shares by High River Gold, we are
evaluating areas of possible co-operation with the current management.
iv. Crystallising our stake in Placer Dome
On 30 January 2003 the company announced that we had disposed of our 1,9%
shareholding or 7 586 424 shares in Placer Dome. This investment, which was
classified as non-core, was sold at an average price of US$11,52 per share,
realising some US$87 million.
The proceeds from the investment, originally made in Goldfields Limited of
Australia, at a cost of R225 million, has been used to strengthen the company's
balance sheet as we continue with our strategy of growth.
v. Kalplats (Kalahari Platinum) - positive pilot plant tests
The pilot plant testwork on the Kalplats bulk sample has been completed. The
500 tonne sample was collected at a depth of 40m below surface across the 20m
width of the Main Reef in the Crater Deposit at a head grade of 3.0g/t PGM.
Recoveries of 73-75% with concentrate grades above 100 g/t PGM were achieved
with the two-stage mill float circuit.
Of particular significance is that a 60% recovery was achieved from the primary
mill-float. This is an exciting option for a lower risk phased start up with
significantly reduced capital and operating costs. Kalplats has advanced to the
full feasibility study stage which should be completed by the end of 2003. R4,0
million was spent on the project during the quarter.
Social Plan
On 19 March 2003, Harmony and the National Union of Mineworkers (NUM) signed an
agreement on the company's Social Plan Framework. We are the first South
African mining company to sign an agreement of this nature. As soon as
legislation is finalised the company will establish a Social Plan Fund with a
contribution of R15 million, and an undertaking to contribute a further amount
of R35 million over a 10 year period.
The agreement calls for the establishment of Future Forums at all our
operations, which will liaise with both local and national government to
formulate and implement integrated development plans for the communities
surrounding our operations. Areas from which our labour is sourced will also be
included in the Future Forums.
Harmony has also pledged its commitment to the development of its workforce and
to the necessary skills transfer processes, as per the Social Plan Regulations.
The company also actively participates in a management/labour partnership which
incorporates strong community involvement.
COMPETITION COMMISSION COMPLAINT AGAINST ISCOR
The complaints against Iscor by mainly Harmony and other interested parties
refer to excessive pricing of steel products in South Africa and are based on
the argument that import parity amounts to excessive pricing.
The criteria for excessive pricing being that the company charging these prices
needs to be in a dominant position as supplier. We believe that Iscor is
dominant in South Africa and therefore is guilty of excessive pricing. They
claim, however that they are not dominant internationally and therefore cannot
be guilty of excessive pricing.
The whole pricing structure from Iscor and other steel suppliers is distorted
by the widespread use of tariffs and subsidies. Comparable pricing is therefor
difficult.
Import parity pricing is applicable where a company sells a product to a local
consumer at the price at which it would cost to import that product, including
all other expenses that would have been incurred, i.e. tariffs, transport
costs, etc. The situation is that the consumer gets charged costs which not
even the supplier has incurred which results in excessive pricing and in the
case of the supplier, excessive profits.
Although the SA Rand has appreciated more than 40% over the past year, prices
charged by Iscor have only been decreased by 0,8%.
We believe that the pricing structure is unfair and has resulted in unnecessary
cost increases in various areas of our industry. Most administrative costs in
South Africa are increasing at a rate significantly higher than the
government's stated inflation target rate. Controlling working costs has always
been our area of expertise and we will continue to focus and highlight
anomalies such as these.
QUARTERLY OPERATIONAL REVIEW
A quarter on quarter cash operating profit analysis of the various operations
is as follows:
Total cash operating profit (R'million)
Variance
Operations Mar 2003 Dec 2002 (R'million)
Free State 53 117 (64)
Evander 45 87 (43)
Randfontein 105 180 (75)
Elandskraal 44 70 (26)
Kalgold 21 17 4
Australian Operations 69 92 (23)
Sub-total 337 564 (227)
Free Gold (50%) 141 199 (58)
Total 478 763 (285)
Free State Operations - steady operational performance
The Free State operations reported a 55% decrease in cash operating profits
from R117 million to R53 million. Underground tonnage was 3% lower at 1 025 000
tonnes. At a slightly lower recovery grade of 4,20 g/t compared to the 4,28 g/t
of the previous quarter, underground production was 4% lower at 4 306 kg.
Working cost expenditure of R367,4 million was well contained at R8,3 million
or 2% lower. Due to the lower tonnage, costs in R/tonne and US$/oz terms
increased to R345/tonne and US$305/oz respectively.
These operations were also affected by the approximate R20 million per quarter
SA Rand hedge benefit which was put in place some 15 months ago and which came
to an end during the December 2002 quarter.
The Masimong Expansion Project is progressing well. Although these operations
were also affected by the impact of the public holidays, increased efficiencies
resulted in only a 2% reduction in underground tonnage. Recovery grades were
higher at 5,48 g/t compared to the 5,06 g/t of the previous quarter. Resultant
gold recovered was 88 kg higher at 1 469 kg. Working costs decreased
spectacularly by 16% from R75 300/kg to R63 320/kg. We anticipate this shaft to
continue to deliver operational performance of this standard as they progress
in the delivery of this important growth project.
Evander Operations - grade recovery continues
Cash operating profits at Evander decreased by 49% from R87 million to R45
million.
The impact of the public holidays were most evident at Evander with underground
tonnage being 10% or 55 000 tonnes lower at 471 000 tonnes. At a higher
underground recovery grade of 5,5 g/t, gold recovery was 8% lower at 2 589 kg
compared to 2 804 kg for the December 2002 quarter.
Working costs were R3,8 million higher at R200,6 million which, due to the
lower tonnage, resulted in higher unit costs. In R/kg terms, working costs
increased by 11% from R69 289/kg to R76 878/kg.
The operational performance of Evander 8 Shaft continues to improve
satisfactorily when measured on a quarter on quarter basis. Underground tonnage
is returning back to levels of 60 000 tonnes per month whilst the grade is
showing similar improvement to recovery grades of 6,0 g/t. With Evander 8 Shaft
performing at these levels, the overall production results from Evander are
expected to return to the levels achieved before the seismic event of some nine
months ago.
Randfontein Operations - a tough quarter
The Randfontein operations reported a R75 million or 41% decrease in cash
operating profits. This was mainly due to a combination of lower tonnages from
underground and lower recovery grades. Underground tonnage decreased by 10% or
78 000 tonnes to 690 000 tonnes. Underground recovery grades were 0,38 g/t or
8% lower at 4,68 g/t compared to the 5,06 g/t reported previously.
Although surface tonnages and grades increased quarter on quarter, total gold
recovered was 15% or 626 kg lower at 3 569 kg.
Total working costs of R229,2 million was R11,4 million lower than the R240,6
million for the December 2002 quarter. The benefit of a high variable cost
structure resulted in the operations reporting cost of R190/tonne, which is
similar to the unit costs achieved during the previous quarter. Due to lower
recovery grades, working costs in R/kg terms increased by 13% from R56 562/kg
to R65 112/kg.
As in the case of the Evander operations, these operations should report
increased tonnages at higher recovery grades for the June 2003 quarter.
Expenditure on the recently announced Doornkop South Reef Project started with
commitments to date totalling R16,6 million of which an amount of R12,7 million
is expected to be spent by June 2003.
Activities to date have been focussed on mobilising the contractors for shaft
sinking, procurement of major components to increase hoisting capacity in the
Sub Vertical Shaft and equipment required for development to open up the
orebody for mining.
Elandskraal Operations - improved infrastructure and flexibility
These operations experienced a R26 million or 37% decrease in cash operating
profits, decreasing from R70 million to R44 million. Over and above the effect
of the public holidays and strengthening of the SA Rand, these operations
experienced problems with the current shaft orepass system.
The sub shaft orepass system comprises two reef and one waste orepass from 73
to 98 levels. These orepasses were not lined previously, and as a result of the
depth they have scaled considerably with time.
The reef orepasses started to hang up regularly due to scaling in mid 2000 but
were temporarily rectified. Since October 2002 more serious delays started to
occur and a decision was taken to rehabilitate one of the orepasses at a cost
of R3.0 million. This is now in progress, hence one orepass is unavailable. The
rehabilitation of this orepass is expected to be completed by July 2003.
At the beginning of January 2003 the remaining reef orepass deteriorated
further with scaling causing severe obstructions in the orepass. This backed up
all the way into the stopes causing full stope boxes. Ore backed up in the 92 -
95 level orepass totals approximately 6 000 tonnes.
At the end of February 2003 a decision was taken to stop using the remaining
reef orepass and to temporarily mix the reef and waste, as the scaling was not
as problematic in the waste orepass system. This is still the system in use and
it does not appear to have any scaling problems at present. However due to the
loading arrangements this orepass system could only deliver ore to one of the
two ore hoists only on the sub shaft, which severely affected the hoisting
capacity. Hoisting was done with one hoist for approximately two months, whilst
changes were being made on the belt level. Both hoists are now able to hoist
ore.
The orepass was originally a 3,0 m diameter raisebore hole but has now scaled
to an ellipse measuring 30 m x 19 m at the worst section.
Actual production loss experienced is estimated at approximately 15 000 tons
for the months of January and February and 6 000 for March 2003.
Underground tonnage was 5% or 22 000 tonnes lower at 457 000 tonnes.
Underground recovery grades were marginally lower at 5,92 g/t compared to the
6,0 g/t reported previously. Total gold recovered of 2 868 kg was 6% lower.
Total working costs were 4% or R9,3 million lower at R224,6 million. These
operations reported an excellent reduction of 12% in cost in R/tonne terms,
decreasing from R322/tonne to R283/tonne. In R/kg terms costs increased by only
2% from R77 046/kg to R79 152/kg.
The benefits from a development programme to improve the flexibility at
Elandsrand will deliver increased tonnages and grade over a period of six
months.
Deelkraal, which has been suffering from the lack of face availability, have
holed two new raises in March. These will be available for mining within the
next two months. A third raise line is expected to hole during May 2003.
Kalgold - installation of third mill completed
The Kalgold operations reported a 6% reduction in tonnage, decreasing from 267
000 tonnes to 250 000 tonnes. At a lower recovery grade of 2,27 g/t gold
recovery was 8% lower at 568 kg.
Working costs were well controlled with a 27% or R11,9 million reduction to
R32,2 million. This allowed these operations to retain similar costs in R/kg
terms of R56 722/kg. In R/tonne terms, working costs decreased by 22% from R165
/tonne to R129/tonne.
The project to increase the milling capacity at Kalgold by 50 000 tonnes per
month to 130 000 tonnes, has been completed with the construction of the third
mill. Lower grade tonnage, available from a 1,1 million tonne stockpile, will
be treated resulting in gold recovered planned to increase from 189 kg to
approximately 260 kg per month. The average overall feed grade to the plant is
expected to decrease from 2,5 g/t to 2,2 g/t.
Free Gold Joint Venture - Tshepong and Joel deliver good performances
The Free Gold Joint Venture operations reported a 29% or R58 million reduction
in cash operating profit on a 50% attributable basis, down from R199 million to
R141 million for the March 2003 quarter.
Underground tonnage decreased by 6% or 34 000 tonnes to 581 000 tonnes.
Underground recovery grade was marginally lower at 6,97 g/t compared to the
7,04 g/t reported previously. Underground gold recovery at 4 052 kg was 6%
lower.
The benefit of a 165 000 tonne increase in surface tonnage milled at a higher
recovery grade of 0,62 g/t resulted in a total gold recovery of 4 472 kg, which
was 3% or 159 kg less than the 4 631 kg reported for the December 2002 quarter.
Whilst working costs in R/kg terms increased by 11% to R62 545/kg, working
costs in R/tonne terms decreased by 4% to R223/tonne. At US$232/oz the Free
Gold operations remain the most profitable assets in our portfolio.
Tshepong shaft continues to deliver world class performance with gold
recovered, increasing by 3% to 3 392 kgs. Although tonnage was 6% lower, the
recovery grade at the operations increased to 8,35 g/t from 7,62 g/t. In R/kg
terms costs at this shaft decreased from R47 760 /kg to R45 561/kg.
Whilst Joel continues to deliver steady operational performance, encouraging
development results are being achieved in the North Shaft ore reserve area.
This bodes well for the shaft's future production programme as an increase in
ore reserves could result in either an extension of mining operations or
increased production in the medium term.
St. Helena, assets acquired from Gold Fields Limited on 29 October 2002,
delivered a poor performance with cash operating costs of R134 435/kg. The
increase in working costs was mainly the result of costs incorrectly allocated
at the time of acquiring the assets. Management have however realised the need
to restructure the operations for profitability and their focus on reducing
working costs will deliver benefits in the forthcoming reporting period.
Australian Operations - our focus directed at profitable ounces on total cost
basis
Our Australian production units, in aggregate, had a weak quarter with a range
of production problems and incidents at the various sites each contributing to
the overall result. The combined operations produced a total of 117 028 ounces
of gold at a working cost of US$297/oz.
Mt Magnet's quarterly production decreased to 40 484 ounces. The most serious
production problems arose at our Hill 50 mine where a series of rockfall
incidents starting in February blocked the main ventilation raises near the
bottom of the mine. These incidents not only affected all of the high grade
production stopes for the whole of the month of March, but also revealed the
need for a redesign of the stope configurations and the positioning of the
ventilation systems at the deeper levels of the mine. This will adversely
affect the production levels and overall costs at this high grade mine for
several months until the issues are rectified.
The Star underground mine and the open pits took up a significant portion of
the tonnage shortfall but could not fully make up for the gold production
shortfall from this high grade source.
Excellent exploration results continued to be received from underground
extensions to the Watertank Hill area at Mt Magnet where the size of this
high-grade discovery continues to grow. It is estimated that resources will
exceed 250 000 ounces and drilling is continuing.
South Kal Mines had a better quarter on production volumes (45 718 ounces).
Good tonnage, costs and development rates were achieved from the Mt Marion
underground mine. Open pit operations did not live up to grade expectations,
and high maintenance costs in the mills adversely influenced processing costs.
A study to assess the economics of developing a "mega pit" to access the large
resource which exists beneath the combined Jubilee and Hampton-Boulder open
pits was completed. This project needs a gold price in excess of A$600/oz
(US$360/oz) to provide an acceptable return on investment and will therefore
not be developed at this time.
Big Bell, which is in "harvest mode", produced 30 825 ounces, and again managed
to reduce its overall cost structure, producing gold at close to the prevailing
spot price.
The operational issues referred to above combined with the lower US Dollar gold
price and stronger Australian Dollar are affecting the operating margins at all
our existing Australian operations. There will be an ongoing need for capital
to explore and develop replacements for the existing short life projects. Our
focus will however be on restricting mining activities to only those areas
which will produce profitable ounces on a total cost basis.
Consistent with this approach, we have together with our Joint Venture
partners, Northern Gold NL, suspended the commissioning schedule of the Brocks
Creek project in the Northern Territories postponing full development of this
project to a time when higher Australian Dollar gold prices prevail.
The reduction in hedge agreements, dealt with elsewhere in this report, will
accommodate the planned future lower levels of production from our Australian
operations.
Capital Expenditure
Actual Forecast
March 2003 June 2003
Free State 31 30
Evander 26 25
Randfontein 9 22
Elandskraal 26 27
Kalgold 17 4
Free Gold (50%) 12 10
Australian Operations 63 35
Total 184 153
Operating and Financial Results (Rand/metric)
Free Free
State State Evander Evander
U/g Surface U/g Surface
Ore milled Mar-03 1 025 290 471 52
- t'000 Dec-02 1 053 332 526 44
Gold Mar-03 4 306 165 2 589 34
produced - kg Dec-02 4 507 233 2 804 33
Yield - g/t Mar-03 4,20 0,57 5,50 0,65
Dec-02 4,28 0,70 5,33 0,75
Cash
operating Mar-03 82 117 83 164 76 878 46 265
costs - R/kg Dec-02 78 708 89 742 69 289 75 394
Cash
operating
costs Mar-03 345 47 423 30
- R/tonne Dec-02 337 63 369 57
Working
revenue Mar-03 404 873 15 485 242 726 2 713
(R'000) Dec-02 468 760 23 430 280 987 3 280
Cash
operating Mar-03 353 597 13 722 199 036 1 573
costs (R'000) Dec-02 354 738 20 910 194 285 2 488
Cash operating Mar-03 51 276 1 763 43 690 1 140
profit (R'000) Dec-02 114 022 2 520 86 702 792
Rand- Rand- Elands- Elands-
fontein fontein kraal kraal
U/g Surface U/g Surface
Ore milled Mar-03 690 514 457 337
- t'000 Dec-02 768 498 479 248
Gold Mar-03 3 229 340 2 707 161
produced - kg Dec-02 3 887 308 2 876 161
Yield - g/t Mar-03 4,68 0,66 5,92 0,48
Dec-02 5,06 0,62 6,00 0,65
Cash
operating Mar-03 65 112 55 676 79 152 64 404
costs - R/kg Dec-02 56 562 67 295 77 890 61 963
Cash
operating
costs Mar-03 305 37 469 31
- R/tonne Dec-02 286 42 468 40
Working
revenue Mar-03 302 448 32 031 253 332 15 364
(R'000) Dec-02 389 511 30 810 288 207 16 026
Cash
operating Mar-03 210 246 18 930 214 264 10 369
costs (R'000) Dec-02 219 855 20 727 224 013 9 976
Cash operating Mar-03 92 202 13 101 39 068 4 995
profit (R'000) Dec-02 169 656 10 083 64 194 6 050
Free Gold Free Gold Australian
Kalgold (50%) (50%) Operations
Opencast U/g Surface Total Total
Ore milled Mar-03 250 581 674 1 729 7 070
- t'000 Dec-02 267 615 509 1 676 7 015
Gold Mar-03 568 4 052 420 3 640 22 211
produced - Dec-02 617 4 331 300 4 021 24 078
kg
Yield - g/t Mar-03 2,27 6,97 0,62 2,11 3,14
Dec-02 2,31 7,04 0,59 2,40 3,43
Cash
operating Mar-03 56 722 62 670 61 338 79 967 73 150
costs - R/ Dec-02 71 580 56 498 58 930 73 565 68 500
kg
Cash
operating
costs Mar-03 129 437 38 168 230
- R/tonne Dec-02 165 398 35 176 235
Working
revenue Mar-03 53 098 381 314 39 481 360 223 2 103 088
(R'000) Dec-02 61 365 431 632 29 785 388 129 2 411 922
Cash
operating Mar-03 32 218 253 940 25 762 291 079 1 624 736
costs Dec-02 44 165 244 692 17 679 295 804 1 649 332
(R'000)
Cash Mar-03 20 880 127 374 13 719 69 144 478 352
operating
profit Dec-02 17 200 186 940 12 106 92 325 762 590
(R'000)
Prepared in accordance with International Accounting Standards.
Total Operations - quarterly financial results (Rand/metric)
Quarter Quarter
ended ended
31 March 31 December
2003 2002
Ore milled - t'000 7 070 7 015
Gold produced - kg 22 211 24 078
Gold price received - R / kg 94 687 100 171
Cash operating costs - R / kg 73 150 68 500
R million R million
Gold sales 2 103 2 412
Cash operating costs 1 625 1 649
Cash operating profit 478 763
Income from associates 24 -
Amortisation (132) (121)
Mark to market of financial instruments 133 12
Rehabilitation cost provision (13) (11)
Employment termination costs (8) (15)
Other income - net 40 53
Interest paid (63) (60)
Corporate, marketing and new business (32) (30)
expenditure
Exploration expenditure (23) (27)
Foreign exchange loss (49)
Mark to Market of listed investments (17) 105
Profit before taxation 338 669
South African normal taxation
- Current tax (30) (87)
- Deferred tax (73) (125)
Net earnings 235 457
Adjustments:
- Profit on sale of property, plant and (7) (11)
equipment
Headline earnings 228 446
Earnings per share - cents *
- Basic earnings 130 262
- Headline earnings 126 255
- Fully diluted earnings ** 129 257
Dividends per share - (cents) - -
Prepared in accordance with International Accounting Standards.
* Calculated on weighted number of shares in issue at quarter end March 2003:
180.6 million (December 2002: 174.4 million)
** Calculated on weighted average number of diluted shares in issue at quarter
end March 2003: 182.5 million (December 2002: 177.4 million)
Abridged balance sheet (Rand)
At At
31 March 31 December
2003 2002
R million R million
Employment of capital
Mining assets after amortisation 8 986 8 945
Investments 1 375 1 409
Net current (liabilities)/assets (excluding cash) (514) (431)
Short-term investments
- Placer Dome - 723
Cash 3 128 1 439
Total Assets 12 975 12 085
Capital employed
Shareholders' equity 8 932 7 863
Loans 2 015 2 009
Long-term provisions 686 698
Unrealised hedging loss 491 736
Deferred tax 851 779
Total equity and liabilities 12 975 12 085
Prepared in accordance with International Accounting Standards.
Basis of Accounting
The unaudited results for the quarter and the 6 months have been prepared on
the International Accounting Standards basis. The accounting policies are
consistent with those applied in the previous financial year.
Issued share capital: 184.2 million ordinary shares of 50 cents each. (December
2002: 174.6 million)
Operating and financial results (US$/imperial)
Free Free
State State Evander Evander
U/g Surface U/g Surface
Ore milled - Mar-03 1 130 320 519 57
t'000
Dec-02 1 161 366 580 49
Gold Produced - Mar-03 138 440 5 305 83 238 1 093
oz
Dec-02 144 903 7 491 90 150 1 061
Yield - oz/ton Mar-03 0.123 0.017 0.160 0.019
Dec-02 0.125 0.020 0.155 0.022
Cash Operating Mar-03 305 309 286 172
Costs - $/oz
Dec-02 255 290 224 244
Cash Operating Mar-03 37 5 46 3
Costs - $/t
Dec-02 32 6 35 5
Working Revenue Mar-03 48 372 1 850 29 000 324
($'000)
Dec-02 48 778 2 438 29 239 341
Cash Operating Mar-03 42 246 1 639 23 780 188
Costs ($'000)
Dec-02 36 913 2 176 20 217 259
Cash Operating Mar-03 6 126 211 5 220 136
Profit ($'000)
Dec-02 11 865 262 9 022 82
Rand- Rand- Elands-
fontein fontein kraal
U/g Surface U/g
Ore milled - t'000 Mar-03 761 567 504
Dec-02 847 549 528
Gold Produced - oz Mar-03 103 814 10 931 87 032
Dec-02 124 969 9 902 92 465
Yield - oz/ton Mar-03 0.136 0.019 0.173
Dec-02 0.148 0.018 0.175
Cash Operating Mar-03 242 207 294
Costs - $/oz
Dec-02 183 218 252
Cash Operating Mar-03 33 4 51
Costs - $/t
Dec-02 27 4 44
Working Revenue Mar-03 36 135 3 827 30 267
($'000)
Dec-02 40 532 3 206 29 990
Cash Operating Mar-03 25 119 2 262 25 599
Costs ($'000)
Dec-02 22 878 2 157 23 310
Cash Operating Mar-03 11 016 1 565 4 668
Profit ($'000)
Dec-02 17 654 1 049 6 680
Elands- Kalgold Free Gold Free Gold
kraal Open- (50%) (50%)
Surface cast U/g Surface
Ore milled - Mar-03 372 276 641 743
t'000
Dec-02 273 294 678 561
Gold Produced - Mar-03 5 176 18 262 130 274 13 503
oz
Dec-02 5 176 19 837 139 244 9 645
Yield - oz/ton Mar-03 0.014 0.066 0.203 0.018
Dec-02 0.019 0.067 0.205 0.017
Cash Operating Mar-03 239 211 233 228
Costs - $/oz
Dec-02 201 232 183 191
Cash Operating Mar-03 3 14 47 4
Costs - $/t
Dec-02 4 16 38 3
Working Revenue Mar-03 1 836 6 344 45 557 4 717
($'000)
Dec-02 1 668 6 386 44 915 3 099
Cash Operating Mar-03 1 239 3 849 30 339 3 078
Costs ($'000)
Dec-02 1 038 4 596 25 462 1 840
Cash Operating Mar-03 597 2 495 15 218 1 639
Profit ($'000)
Dec-02 630 1 790 19 453 1 259
Australian
Operations
Total Total
Ore milled - t'000 Mar-03 1 907 7 797
Dec-02 1 848 7 734
Gold Produced - oz Mar-03 117 028 714 096
Dec-02 129 278 774 121
Yield - oz/ton Mar-03 0.061 0.092
Dec-02 0.070 0.100
Cash Operating Costs Mar-03 297 272
- $/oz
Dec-02 238 222
Cash Operating Costs Mar-03 18 25
- $/t
Dec-02 17 22
Working Revenue Mar-03 43 037 251 266
($'000)
Dec-02 40 388 250 980
Cash Operating Costs Mar-03 34 776 194 114
($'000)
Dec-02 30 781 171 627
Cash Operating Profit Mar-03 8 261 57 152
($'000)
Dec-02 9 607 79 353
Prepared in accordance with International Accounting Standards.
Total Operations - quarterly financial results (US$/imperial)
Quarter Quarter
ended ended
31 March 31 December
2003 2002
Ore milled - t'000 7 797 7 734
Gold produced - oz 714 096 774 121
Gold price received - $ / oz 352 324
Cash operating costs - $ / oz 272 222
$million $million
Gold sales 251 251
Cash operating costs 194 172
Cash operating profit 57 79
Income from associates 3
Amortisation (16) (13)
Mark to market of financial instruments 16 1
Rehabilitation cost provision (2) (1)
Employment termination costs (1) (2)
Other income - net 5 6
Interest paid (8) (6)
Corporate, marketing and new business (3) (3)
expenditure
Exploration expenditure (3) (3)
Foreign exchange loss (6) -
Mark to Market of listed investments (2) 11
Profit before taxation 40 69
South African normal taxation
- Current tax (3) (9)
- Deferred tax (9) (13)
Net earnings 28 47
Adjustments:
- Profit on sale of property, plant and (1) (1)
equipment
Headline earnings 27 46
Earnings per share - cents *
- Earnings 15.5 27.2
- Headline earnings 15.1 26.6
- Fully diluted earnings ** 15.4 26.8
Dividends per share - (cents) - -
Prepared in accordance with International Accounting Standards
Currency conversion rates average for the quarter: March 2003: US$1= R8.37
(December 2002: US$1=R9.61)
* Calculated on weighted number of shares in issue at quarter end March 2003:
180.6 million (December 2002: 174.4 million)
** Calculated on weighted average number of diluted shares in issue at quarter
end March 2003: 182.5 million (December 2002: 177.4 million)
Abridged balance sheet (US$)
At At
31 March 31 December
2003 2002
US$ million US$ million
Employment of capital
Mining assets after amortisation 1 119 1 046
Investments 171 165
Net current (liabilities)/assets (excluding (64) (50)
cash)
Short-term investments
- Placer Dome - 85
Cash 390 168
Total assets 1 616 1 414
Capital employed
Shareholders' equity 1 112 920
Loans 251 235
Long-term provisions 86 82
Unrealised hedging loss 61 86
Deferred tax 106 91
Total equity and liabilities 1 616 1 414
Prepared in accordance with International Accounting Standards.
Issued share capital: 184.2 million ordinary shares of 50 cents each. (December
2002: 174.6 million)
Currency converted at closing rate: March 2003: US$1=R8.03 (December 2002: US$1
=R8.55)
Condensed statement of changes in shareholders' equity (unaudited)
At At At At
31 March 31 March 31 March 31 March
2003 2002 2003 2002
R million R million US$ million US$ million
Balance as at the 7 963 4 594 992 404
beginning of the
financial year
Currency translation (489) 57 (61) 5
adjustment and other
Issue of share 1 305 590 162 52
capital
Net earnings 1 118 1 023 139 90
Dividends paid (965) (119) (120) (10)
Balance as at the end 8 932 6 145 1 112 541
of March
Prepared in accordance with International Accounting Standards.
Abridged cashflow statements (unaudited)
9 Months 9 Months 9 Months 9 Months
ended ended ended ended
31 March 31 March 31 March 31 March
2002 2003 2003 2002
US$ million US$ R million R million
million
98 177 Cash flow from operating 1 687 980
activities
(201) (24) Cash utilised in (228) (2 005)
investing activities
133 24 Cash utilised in 228 1 332
financing activities
(46) 74 Translation adjustment - -
(Decrease)/Increase in
cash and
(16) 251 equivalents 1 687 307
144 139 Opening cash and 1 441 1 159
equivalents
128 390 Closing cash and 3 128 1 466
equivalents
Prepared in accordance with International Accounting Standards.
Operating activities
translated at average rates of: March 2003: US$1 = R9.52
(March 2002: US$1 = R10.00)
Closing balance translated
at closing rates of: March 2003: US$1 = R8.03
(March 2002: US$1 = R11.38)
Group's commodity, currency, interest and lease rate contracts at 31 March 2003
Maturity schedule for the years
AUS Dollar (A$) Gold 2003 2004 2005 2006
Forward sales
agreements
Ounces - 100 000 175 000 108 000
A$/ounce - 513 513 510
Sold call options
Ounces - 95 000 130 000 40 000
A$/ounce - 540 512 552
Total - 195 000 305 000 148 000
Maturity schedule for the years
AUS Dollar (A$) Gold 2007 2008 2009 Total
Forward sales agreements
Ounces 147 000 100 000 100 000 730 000
A$/ounce 515 518 518 514
Sold call options
Ounces - - - 265 000
A$/ounce - - - 528
Total 147 000 100 000 100 000 995 000
Close out of gold hedge contracts
During the quarter 614 000 ounces of gold contracts were closed. The
outstanding contracts are now treated as speculative and the mark-to-market
movement will be reflected in the income statement.
The mark-to-market of these contracts was a negative R422 million (US$53
million) as at 31 March 2003, based on the independent valuations. The value
was based on a gold price of US$ 329 (A$ 549) per ounce, exchange rates of US$
/ R8.03 and A$ / US$ 0.60 and prevailing market interest rates at the time.
Interest rate swap
The Group has interest rate swap agreements to convert R600 million of its R1.2
billion fixed rate bond to variable rate debt. The interest rate swap runs over
the term of the bond, interest is received at a fixed rate of 13% and the
company pays a floating rate based on JIBAR plus a spread ranging from 1.8% to
2.2%.
The mark-to-market value of the transaction making up the positions was a
positive R10 million (US$1.3 million) as at 31 March 2003, the value was based
on an exchange rate of US$ / R8.03 and the prevailing interest rates and
volatilities at the time.
Gold lease rates
The Group holds certain gold lease rate swaps, of which the mark-to-market of
these contracts was a negative R22 million (US$3 million) as at 31 March 2003,
based on valuations provided by independent treasury and risk management
experts.
ZB Swanepoel Virginia
Chief Executive 25 April 2003
Development results (metric)
Channel Channel
Reef Sampled width value Gold
meters meters (cm's) (g/t) (cmg/t)
Randfontein
VCR Reef 1 086 1 008 71 18,30 1 295
UE1A 2 284 2 075 111 10,85 1 207
E8 Reef 411,1 349,4 117 4,15 486
Kimberley Reef 229,5 146,2 189 3,96 749
South Reef 23,9 20 56 24,93 1 396
All Reefs 4 011 3 579 104 11,03 1 143
Free State
Basal 1 990 1 484 79 11,25 889
Leader 1 231 1 032 170 4,84 823
A Reef 467 498 138 3,95 545
Middle 410 324 265 3,75 994
B Reef 528 503 61 13,64 832
All Reefs 4 626 3 841 124 6,65 828
EVANDER
Kimberley Reef 2 178 1 992 68 15,07 1 025
Elandskraal
VCR Reef 641 891 80 13,14 1 046
Free Gold (JV)
Basal 4 242 3 695 57 15,42 886
Leader 00,00
All Reefs 4 242 3 694,5 57 15,42 886
Development results (imperial)
Channel Channel
Reef Sampled width value Gold
feet feet (inches) (oz/t) (in.ozt)
Randfontein
VCR Reef 3 563 3 307 28 0,531 15
UE1A 7 495 6 807 44 0,318 14
E8 Reef 1 349 1 146 46 0,130 6
Kimberley Reef 753 480 74 0,122 9
South Reef 78 66 22 0,727 16
All Reefs 13 159 11 740 41 0,317 13
Free State
Basal 6 529 4 869 31 0,329 10
Leader 4 038 3 386 67 0,141 9
A Reef 1 532 1 634 54 0,116 6
Middle 1 344 1 063 104 0,110 11
B Reef 1 734 1 650 24 0,398 10
All Reefs 15 176 12 602 49 0,194 10
Evander
Kimberley Reef 7 146 6 535 27 0,436 12
Elandskraal
VCR Reef 2 102 2 925 31 0,387 12
Free Gold (JV)
Basal 13 917 12 121 23 0,442 10
Leader - - 0 00,00 0
All Reefs 13 917 12 121 23 0,442 10
Investor relations
Business address
Harmony Gold Mining Company Limited
Suite No. 1
Private Bag X1
Melrose Arch, 2076
Telephone: +27 (11) 684 0140
Telefax: +27 (11) 684 0188
E-mail: corporate@harmony.co.za
Investor relations contacts
Corn� Bobbert
Telephone: +27 (11) 684 0146
Telefax: +27 (11) 684 0188
E-mail: cbobbert@harmony.co.za
Ferdi Dippenaar
Telephone: +27 (11) 684 0147
Telefax: +27 (11) 684 0188
E-mail: fdippenaar@harmony.co.za
Share transfer secretaries
Ultra Registrars (Pty) Ltd
Contact: Polly Pollard
Telephone: +27 (11) 832 2652
Telefax: +27 (11) 834 4398
E-mail: ultra@ultrareg.co.za
PO Box 4844
Johannesburg 2000
United States ADR Depositary
The Bank of New York
Telephone: +1888-BNY ADRS
Telefax: +1 (212) 815 3050
Shareholder Relations Department
101 Barclay Street, 22nd Floor
New York, NY 10286
United States of America
United Kingdom Registrars
Capita Registrars
Contact: Kerry Fitzalan/Chris Burchill
Telephone: +44 870 162 3100
Telefax: +44 (208) 639 2342
The Registry
34 Beckenham Road, Beckenham
Kent BR3 4TU, United Kingdom
Directors
A R Fleming* (Chairman), Z B Swanepoel (Chief executive), F Abbott, F
Dippenaar, T S A Grobicki, T A Mokhobo*, M F Pleming*, Lord Renwick of Clifton
KCMG*, J G Smithies*, S Lushaba*, N Fakude* *Non-executive directors British
Trading Symbols
Ordinary Shares
JSE Securities Exchange HAR
NYSE HMY
London Stock Exchange HRM
Euronext Paris HG
Euronext Brussels HMY
Berlin Stock Exchange HAM1
Warrants
JSE Securities Exchange HARW
NYSE HMYWS
Options
Chicago Board
Options Exchange QHG
ISIN
ZAE000015228
Registration number
1950/038232/06
END