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Harmony invests to secure its long term future

Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today released their operational results for the quarter and financial year ended 30 June 2003. The company indicated that although operating conditions were tough following the 12% decrease in the Rand/kg price of gold, the company was still confident that it could generate sufficient cash to fund its future growth and deliver solid returns to its shareholders through dividends.

As forecasted, the company reported lower operational profits of R183 million. This was significantly down from the R478 million reported for the previous quarter. The lower gold price contributed R241 million of the R295 million quarter on quarter reduction. Operationally the company performed well despite Elandsrand not having recovered from the dilution in grade following orepass scaling, with total production being only 1% lower at 21 992 kgs.

Headline earnings per share total 65 SA cents, a decrease of 48% to the 126 SA cents for the March 2003 quarter. After year-end non-cash adjustments, mainly related to the write-down of its Australian assets, the company reported a loss of 259 SA cents per share for the quarter.

Net earnings for the year totalled 359 cents per share. A final dividend of 150 cents per share was declared, bringing the total dividend for the year to 275 SA cents.

“The Board feels that the 275 SA cents dividend, which is 40% of the 695 SA cents before impairment, rewards our shareholders appropriately, whilst it leaves the company with a strong balance sheet going into a period which may prove to be challenging.” commented Bernard Swanepoel, Chief Executive.

During the past financial year, the company produced a record 3 million ounces, a 12% increase year on year. Although Rand/kg working costs increased by 13% year on year, following inflationary cost pressures, lower cut-offs being applied and the incorporation of higher cost acquisitions in Australia, cash operating profits were only 8% lower at R2 374 million. In US Dollar terms the company reported a record cash operating profit of US$260 million.

Regarding its merger with ARMgold, the process was well on track with the completion thereof expected by 23 September 2003 with the termination of the ARMgold listing.

The merger with ARMgold will create South Africa’s largest gold producer with an exciting portfolio of growth projects which will ensure its future for the next 20 years. Production from these growth projects increases from 400 000 ounces in the 2005/06 financial year to 1,6 million ounces in 2009/10.

“The future of Harmony in South Africa has been secured through the development of these long life, quality production ounces. Whilst there will be more acquisition opportunities in South Africa, we will have served our shareholders well by securing the long-term future of the company. We can claim to be the most leveraged, unhedged, pure gold play operating mainly from South Africa.” concluded Bernard Swanepoel.

For more details contact:
Bernard Swanepoel
on +27(0)83 303 9922

or

Ferdi Dippenaar
on +27(0)82 807 3684

Investor Relations Officer
Corné Bobbert
Tel +27 11 684 0146
Fax +27 11 684 0188
Mobile +27(0)83 380 6614

Disclaimer

This document 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 document, such as “resources”, that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our public filings with the SEC available from us at Harmony Gold Mining Company Limited, Suite Nr. 1, Private Bag X 1, Melrose Arch, 2076 South Africa, for the attention of: Mr. Ferdi Dippenaar, Marketing Director. You can also obtain these filings from the SEC by calling 1-800-SEC-0330.

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Investor brief

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