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Bernard's review   
  

MARKETING OF GOLD

As a major producer, the company accepts its responsibility towards marketing the industry and its products. The consolidation of the industry will result in fewer but larger producers who should be more responsible in the investment decisions taken. In support of the abovementioned, these producers have a role to play in stimulating the demand for gold, be it for jewellery fabrication, bar hoarding, investment purposes or industrial use. Harmony is currently involved in the following initiatives in the production and marketing of our gold products:

Gold Producers Marketing Initiative
This consists of a group of gold producers who are evaluating the benefits of launching a significant marketing initiative to stimulate demand for gold jewellery. An investigation to ascertain independently and objectively whether investment in a large scale marketing initiative would be of economic benefit to the gold industry, is being undertaken. One of the outcomes of the investigation will be to develop and implement a marketing plan with the approval and support of producers.
World Gold Council
Harmony supports this organisation that collectively promotes and focuses on expanding the market for gold. This includes both the private and institutional ownership of gold and all gold products. The work done by the organisation in the deregulation of previously closed markets is commendable.
Direct Marketing of Harmony Bullion Products
Over the past year the company has ceased the distribution of its branded bullion products through an office in Nice. The distribution of these Harmony branded bullion products to the Indian and European markets has continued through an exclusive agreement with Credit Suisse First Boston.
Technology Drive
The company is currently involved in initiatives which are investigating the application of new technologies in the manufacture of gold products. This technology focus, combined with the fact that we operate our own refinery, could enable the company to participate in the higher margin industry of semi-finished jewellery and industrial products. The technology programme is a joint development between the company and Mintek with the support of BAE Systems plc. Under this arrangement the benefits from this programme will be for the exclusive use of Harmony.

In addition, the company has embarked on a programme to optimise the revenue generating potential of the refurbished refinery at our Freestate operations. The products currently produced at the facility are of a high quality and are suitable for the next phase of value adding. An economic evaluation of the potential of such a project is underway.