Edgar Filing: HARMONY GOLD MINING CO LTD

Page 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO

RULE 13a-16 OR 15d-16 UNDER THE SECURITIES

EXCHANGE ACT OF 1934

For the Month of August 2004

Harmony Gold Mining Company

Limited

Suite No. 1

Private Bag X1

Melrose Arch, 2076

South Africa

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-

F or Form 40-F.)

Form 20-F X

Form 40-F

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.)

Yes

No X

REVIEW FOR THE QUARTER ENDED 30 JUNE 2004

SHAREHOLDER INFORMATION

Issued share capital as at 30 June 2004

320 741 577

MARKET CAPITALISATION

At 30 June 2004

R20 928 million

At 30 June 2004

US$3 396 million

US$ per production ounce per annum - 3.3 million oz

US$1 029

US$ per reserve ounce - 66.2 million oz

US$55

US$ per resource ounce - 521,2 million oz

US$7

SHARE PRICE

12 month high (July 2003 - June 2004)

R122,60

12 month low (July 2003 - June 2004)

R59,50

12 month high (July 2003 - June 2004)

US$17.68

12 month low (July 2003 - June 2004)

US$9.25

FREE FLOAT

100%

ADR RATIO

1:1

JSE SECURITIES EXCHANGE SOUTH AFRICA

HAR

Range for the quarter

R59,50 - R98,50

Average volume for the quarter

1 270 792 shares per day

NEW YORK STOCK EXCHANGE

HMY

Range for the quarter

US$9.25 - US$15.61

Average volume for the quarter

1 162 484 shares per day

REVIEW FOR THE QUARTER AND FINANCIAL YEAR ENDED 30 JUNE 2004

QUARTERLY FINANCIAL HIGHLIGHTS

30 June 2004

31 March 2004

Cash operating profit
- Rand

(43 million)

134 million

- US$

(7 million)

20 million

Cash earnings
- SA cents per share

(15)

- US cents per shar

(2)

Basic earnings
- SA cents per share

(191)

(31)

- US cents per shar

(29)

(5)

Headline earnings
- SA cents per share

(131)

(16)

- US cents per shar

(20)

(2)

Fully diluted earnings
- SA cents per share

(191)

(31)

- US cents per shar

(29)

(5)

Gold produced
- kg

26 373

24 735

- oz

847 908

795 239

Cash costs
- R/kg

83 173

82 852

- $/oz

392

381

• growth projects on track
• restatement of ore reserves
• final dividend of 30 SA c.p.s.

(70 SA c.p.s. for 2003/04 financial year)

KEY INDICATORS

• record production - 11% annual increase
• R/kg gold price impacts on results
• restructuring for profitability at R75 000/kg
• CONOPS benefits start to show

CHIEF EXECUTIVE'S REVIEW

"If the performance of the re-structured shafts is excluded, Harmony proved its ability during the current quarter to operate at cash costs of R80 918/kg. As we make furtherprogress with our re-structuring initiatives, we do expect the company to operate at cashcost levels below R80 000/kg. As in the past, we have proven our ability to survive and growduring these low gold price cycles in R/kg terms."

SAFETY REPORT

Although the company integrated the ARMgold and Free Gold Operations over the past year, the fatality injury rate improved, year on year. We achieved one million fatality free shifts as a company on 14 July 2004. It is the first time that this milestone has been reached since the merger between the companies was concluded. Eland Shaft and Welkom 1 achieved one million fatality free shifts on 21 June 2004.

Fatality injury rate (per million hours worked)

We regretfully report that during the June 2004 quarter, ten of our employees lost their lives at our operations. We offer our sincere condolences to the families, friends and relatives of the deceased.

RECORD PRODUCTION (+11% YEAR ON YEAR)

The impact of the strength of the South African Rand has clouded what can be described as a difficult but rewarding twelve months. The company continued to show an increase in gold produced, increasing by 11% from 3,0 million ounces to over 3,3 million ounces, year on year.

This was achieved against a background where total gold production from South Africa decreased by approximately 6% over the same period. The falling local gold price and rising working cost environment has seen South African gold production decrease by 13% to 338 tonnes year on year. In 1999 South Africa produced 425 tonnes of gold.

Even with the downscaling of some of our more marginal shafts, the benefits from CONOPS and the inclusion of Target Mine will see Harmony produce approximately 3,6 million ounces during the 2004/05 financial year.

A year on year analysis of our results indicates the following:

Year-on-year variance analysis

Year ended

Variance

June 2004

June 2003

Production

- kg

103 127

93 054

- oz

3 315 595

2 991 734

Revenue

R/kg

85 219

96 663

(12)

- US$/oz

385

329

Working costs

- R/kg

79 599

71 146

(12)

- US$/oz

360

242

(49)

U/g working costs

- R/tonne

433

384

(13)

Cash operating profit

- (R'm)

580

2 374

(76)

Cash operating profit margin

- %

(73)

Cash earnings per share

cents

229

1 334

(83)

EPS (cents)

- cents

(206)

359

(157)

During the year we concluded the ARMgold merger as well as the acquisition of Avgold. Both these transactions have impacted positively on the company's sustainability under the declining gold price scenario.

It has however also been a period in which our revenue in R/kg terms decreased by 12% from R96 663/kg to R85 219/kg. As a result of the growth in production, the company managed to sustain revenue levels of R8,8 billion (R9,0 billion - for year ending 2002/03). A 24% increase in actual working costs following a 9% increase in underground tonnages and a 12% increase in cost per tonne resulted in a net cash operating profit of R580 million compared to R2,4 billion previously reported. Cash operating profit margins decreased from 26% to 7%.

The past six months has probably been the most difficult period we have experienced in our recent history of seven years. Over the past few years we have built up a track record of paying dividends in good and in challenging times and proved that we can survive and grow the company.

Due to the company's consistent ability to generate cash earnings, the board felt that a final dividend of 30 cents would be appropriate at this time. Dividends declared for the 2003/04 financial year totals 70 cents.

Financial year

Earnings per share

ended

(South African cents)

June 2004

June 2003

Cash earnings

229

1 334

Basic (loss)/earnings

(206)

359

Headline (loss)/earnings

(287)

661

Fully diluted (loss)/earnings

(205)

359

Delivery of our growth projects continue

The company continued with the development and delivery of its five growth projects in South Africa. During the quarter the board approved the A$177 million Hidden Valley Project in PNG. Capital expenditure increased by 68% from R519 million to R871 million during the year. These projects will deliver growth in production at higher recovery grades and lower cash working costs.

By continuing the capital expenditure programmes, we aim to optimise the value from these growth projects. The legacy of the South African mining industry has been one of expanding during times when the gold price is high, and mine them during low gold price cycles, thereby diluting returns. By being able to build these projects during difficult times, we plan to optimise the returns to all stakeholders during good times.

Harmony successfully concludes the acquisition of Avgold

On 11 May 2004 the company announced that the scheme of arrangements to acquire Avgold has been sanctioned by the High Court of South Africa and was subsequently registered by the Registrar of Companies. This concluded the acquisition of Avgold and the scheme became operative on 24 May 2004. Results for two months have been included in our annual and June 2004 quarterly results.

We now own Target Mine in the Free State. This mine is expected to produce in excess of 300 000 ounces per annum at a cash cost of US$230/oz. This operation has an expected life of mine in excess of 18 years with a declared ore resource of some 13,2 million ounces of which 5,4 million ounces are in the reserve category.

Included in the transaction is the prospective Target North Project area which has a resource of 59,6 million ounces.

We own the world's largest ore resource

Despite the current gold price scenario, we continue to be bullish on the longer term outlook for the gold price in R/kg terms, using R92 000/kg for our ore resource calculations. We still own the world's largest ore resource, a total of 521 million ounces, which is an increase of 27% from the previous year's 410 million ounces. With the inclusion of the ARMgold, Target and Abelle reserves and the exclusion of the reserves from the marginal shafts (both on ongoing operations as well as on the shafts which have been downscaled or placed on "care and maintenance" programmes), the company today has 62,2 million ounces available for mining.

A year on year reconciliation of our ore reserves is as follows:

AU tonnes

AU Moz

Balance at June 2003

1 926

61,9

Mined during current financial year

(113)

(3,3)

Added through acquisitions

233

7,4

Less: Impact of downscaling marginal shafts

(119)

(3,8)

Balance at June 2004

1 927

62,2

At a gold price of R82 800 per kg, the company's ore reserves, at a higher average grade of 5,35 g/t, decrease to 55 million ounces. The opposite applies in the case of a higher gold price of R101 200/kg. The available ore reserves increase from 62 million ounces to 65 million ounces, whilst the average grade decreases from 5,10 g/t to 4,74 g/t

Finalising our agreement with the National Union of Mineworkers (NUM)

The past financial year has also been a period in which our good working relationships with the respective labour unions were reinforced. We made significant progress with the restructuring and rightsizing activities that were announced during the previous quarter.

On 2 April 2004, we announced that the company had commenced a restructuring process following the current weakness of the gold price in R/kg terms. Some of our older shafts, which had come to the end of their economic lives, were jointly evaluated and a process to down-scale production at the shafts was initiated.

The company met with the respective unions and associations involved on numerous occasions, and an agreement was concluded on Friday, 16 July 2004. The main objective of the agreement is to avoid or minimise compulsory retrenchment as a result of the restructuring process.

The agreement makes provision for the following:

(i)

the re-training and redeployment of employees affected by the down-scaling and mothballing of certain shafts. The extent of the success of this exercise will be dependent on the implementation of CONOPS at Randfontein, Elandsrand, Masimong and the original Harmony shafts;

(ii)

it was agreed that by identifying areas where production was either in a decline or growth phase, the effective utilisation of employees could be addressed;

(iii)

it was acknowledged that the implementation of CONOPS at the abovementioned operations is crucial to the success of the plan, and discussions to this extent should continue at operational level;

(iv)

it was proposed that joint task teams be established at operational level to continue with the activities related to the retraining and redeployment of employees, and the implementation of the agreed principles;

(v)

the joint task teams will also monitor applications for voluntary retrenchment, and

(vi)

the company would consider proposals put forward by the union to investigate the creation of a vehicle to accommodate mines/shafts that have been identified for downscaling or will be put on a care and maintenance programme.

CONOPS (continuous operations) refers to the practice where a mine operates on all the days of the year, including Sundays. Workers operate on a roster or shift arrangement which sees them work the same amount of hours per week and therefore the company needs to employ more people in order to facilitate working the additional days.

Currently most gold mines in South Africa operate for approximately 273 days per year. The successful introduction of CONOPS can increase this number to 353 days per year (excluding the 12 public holidays). This will result in a 12% increase in labour on the shafts as well as a 5% reduction in unit cost/tonne.

The shafts currently affected by downscaling activities are:

Average per month

Merriespruit

Deel-

Eland

Orkney

Welkom

kraal

Shaft

Nyala

Tonnes ('000)

Kg's

134

154

125

Yield

3,8

4,8

5,0

3,7

2,4

4,4

R/kg costs

128 469

134 661

119 564

179 858

118 099

117 129

R/tonne costs

484

640

595

662

286

519

The shafts produced an average of 569 kg per month or 220 000 oz per annum for the previous financial year.

Currently CONOPS has been agreed to on approximately half of our mines. CONOPS is currently being phased in, allowing for the establishment of working places and re-training of employees who are being redeployed. Cost and volume benefits from the successful introduction of CONOPS will become evident as the phasing-in continues.

THE PAST QUARTER IN REVIEW

The company reported cash operating profits of R14,8 million from our "steady state" shafts, down from R174,8 million for the March 2004 quarter. If the operating loss of R57,8 million from the shafts currently in a re-structuring phase is included, the company made an operational loss of R43,0 million.

The company's performance is highlighted in the following tables:

Quarter ended

Variance

Production

June 2004

March 2004

Steady state shafts (kg)

25 212

23 399

Restructured shafts (kg)

1 161

1 336

(13)

Total production (kg)

26 373

24 735

Total production (oz)

847 908

795 239

Revenue R/kg

81 543

88 277

(8)

Revenue US$/oz

384

406

(5)

CONOPS, although not completely implemented throughout the operations, has started to deliver benefits.

Underground tonnage from our steady state shafts increased by 302 000 tonnes or 8% to 4 070 000 tonnes. Target accounted for 207 000 tonnes of the increase. Recovery grade for these shafts was 1% higher at 5,28 g/t. This resulted in a 1 824 kg or 9% increase in gold produced.

Due to the downscaling activities underway, shafts under re-structuring reported a decline in production. Overall production increased by 7% from 24 735 kg to 26 373 kg.

In US Dollar terms the gold price was 5% lower at US$384/oz. The impact of the further strengthening of the South African Rand was evident in R/kg terms where the price received was 8% lower at R81 543/kg.

Quarter ended

Variance

June 2004

March 2004

Cash costs R/kg
Steady state shafts

80 918

80 801

Restructured shafts

132 146

118 760

(11)

Total operations

83 173

82 852

Cash costs US$/oz
Steady state shafts

381

371

(3)

Restructured shafts

623

546

(14)

Total operations

392

382

(3)

Exchange rate

6,60

6,77

(3)

Despite the inclusion of additional costs related to CONOPS, the company maintained the cash costs from our steady state operations at the R81 000/kg levels reported for the March 2004 quarter. Due to the lower production at the shafts currently being re-structured, the cash costs of these shafts increased by 11% to R132 146/kg.

We anticipate that the benefits from our re-structuring initiatives throughout the company will start to show during the September 2004 quarter and cash costs are expected to be reduced to below R80 000/kg. This will be the case despite the implementation of the annual wage increase of 7% for the forthcoming year, which is part of the two- year wage agreement negotiated during the previous year.

We plan to increase our cash operating profit margin levels back to 10%.

A number of extra-ordinary charges were incurred during the quarter:

•

costs incurred and provided for relating to the re-structuring of the loss-making shafts totalled R183,8 million;

•

during the year Harmony's equity investment in Avmin (ARM) was diluted from 34,5% to 19%. This was the result of a scheme of arrangement between Avmin, Harmony and ARMI, effective 23 April 2004. As from this date it was no longer appropriate for them to continue equity accounting for the investment in ARM.

The net result of this was that at an accounting loss of R163,3 due to the dilution of Harmony's interest was brought to book. This was offset by the profit Harmony made on the Kalplats disposal of R38,5. In future ARM will be reflected as a listed investment with no equity accounting for income from it as an associate in Harmony's books. This listed investment will be marked to market on the balance sheet on a quarterly basis;

•

negative movement in the mark to market of financial instruments of R109,5 million. This is a result of the stronger Rand associated with the currency hedge inherited with the acquisition of Avgold and the settlement of the hedge obligations as they were due. The higher Australian Dollar gold price resulted in a negative mark to market on the Australian hedge book of R31 million;

•

amortisation charges increased by R28,3 million with the inclusion of Target;

•

during the quarter Bendigo, in which Harmony had a 31,8% stake, announced that it had secured A$115 million through the placement of shares for the development of its New Bendigo Gold project. Our stake was subsequently diluted to 13%. An impairment of R75,0 million was brought to book.

A quarter on quarter cash operating profit variance analysis

Cash operating profit - March 2004

R134,2 million

volume increase (tonnes)

R73,0 million

working cost increase

(R149,4 million)

recovery grade increase (g/t)

R87,0 million

Rand gold price decrease (R/kg)

(R170,6 million)

loss at re-structured operations (R57,7 million)

previous quarter re-structuring costs

R40,5 million

net variance

(R177,2 million)

Cash operating loss - June 2004

(R43,0 million)

Analysis of earnings per share (SA cents)

Earnings per share

Quarter ended

(SA cents)

June 2004

March 2004

Cash (loss)/earnings

(15)

Basic loss

(191)

(31)

Headline loss

(131)

(16)

Fully diluted loss

(191)

(31)

Reconciliation between basic and headline loss

Headline loss in cents

per share

Quarter ended

June 2004

March 2004

Basic loss

(191)

(31)

Profit on sale of mining assets

(15)

(1)

Profit on sale of Kalplats

(13)

Loss on dilution of ARM Limited

Bendigo impairment

Amortisation on ARMgold goodwill

Headline loss

(131)

(16)

Our cash earnings for the year to date total 229 cents per share. Fully diluted loss per share for the financial year totals 205 cents per share. During the corresponding period in the 2003 financial year, the company returned earnings of 359 cents per share.

STRATEGIC INVESTMENTS

•

Abelle Limited

On 15 March 2004 Harmony announced that it had made an off market cash offer to acquire all the ordinary shares, listed options and unlisted options in Abelle Limited that it did not already own.

The Harmony offer, valued at approximately R620 million or A$125 million, consisted of the following:

A$2.00 for each Abelle share;

A$1.70 for each of the listed options in Abelle; and

a price equal to the difference between the cash price offered to Abelle shareholders and the exercise price for each of the unlisted options.

The offers were made by Harmony's wholly-owned subsidiary, Harmony Gold Australia Pty Limited, which held 83.2% of Abelle's ordinary shares and 69,7% of Abelle's listed options.

All the conditions precedent were met and Harmony proceeded with the compulsory acquisition of the outstanding shares. At 30 June 2004 Abelle was a 100% owned subsidiary of Harmony.

Abelle has been a majority owned subsidiary of Harmony since the close of Harmony's initial offer to Abelle shareholders in May 2003. Since then, Abelle has pursued a strategy of focusing on its three major world-class projects in Papua New Guinea.

At Hidden Valley, where a resource of 4.72 million ounces of gold and 56 million ounces of silver has been identified, a feasibility study has been completed for the development of this asset and the permitting process is currently underway. Phase I of the project, which was approved by the board, will include the building of an open pit mine and processing facility, which will produce an average of approximately 300 000 oz of gold and 4.5 million ounces of silver per annum, commencing early in 2006. The capital requirements of the project envisage a maximum cash outflow of A$177 million (±US$124 million) and the project has a rate of return of 28% at current precious metal prices and exchange rates. It is expected that significant quantities of gold currently in the resource category will in due course be converted to reserves thus enhancing the life and value of this project.

The Wafi project, which lies 70 km from Hidden Valley and which is located on a major epithermal gold mineralisation system, has been the focus of an intensive drilling campaign over the past year. The activities have to date successfully increased the gold resources within the higher grade portion of the orebody from 4,3 million ounces to 6,3 million ounces. In addition, a further 2 million ounces of gold in low grade ores have been identified to date. This project will in 2004 be the focus of continued intensive drilling programmes aimed at increasing resources and reserves and at optimising the treatment process for these ores. Feasibility studies aimed at establishing a major gold mine at this site will be undertaken as soon as reasonably practical.

Gulpu Copper - Gold project is a classic porphyry style mineralised system located only 1.4 km from Wafi. To date a resource of 118 million tonnes @ 1,4 % copper and 0,84 g/t gold containing 1,63 million tonnes of copper metal and 2,8 million ounces of gold have been identified. This project is currently the subject of a pre feasibility study.

QUARTERLY OPERATIONAL REVIEW

A quarter on quarter operating profit analysis of the various operations is as follows:

Operations

June 2004

March 2004

Variance

(R million)

Free State growth

118

(51)

Free State marginal

(70)

(8)

(62)

Evander

(4)

Randfontein

(10)

Elandsrand

(25)

(27)

Welkom/Orkney

(31)

Kalgold

(4)

Operations under restructuring

(58)

(41)

(17)

Australian Operations

Total

(43)

134

(177)

A detailed analysis of the operations is as follows:

Free State Growth Operations - Target starts to contribute

June 2004

March 2004

U/g tonnes milled

('000)

1 341

1 091

U/g recovery grade

(g/t)

6,08

6,21

U/g kilograms produced

(kg)

8 148

6 780

U/g working costs

(R/kg)

73 194

71 029

U/g working costs

(R/tonne)

445

441

These operations reported a 43% or R50,4 million reduction in cash operating profit, down from R117,5 million to R67,1 million.

Total working costs of R596,4 million were 24% or R114,8 million higher than the R481,6 million reported for the March 2004 period. Costs of approximately R110 million can be associated with the 23% increase in underground tonnage.

Target Mine has been included in our results for the first time. For this quarter a total of 207 000 tonnes at a grade of 8,04 g/t (1 662 kg) is attributable to Harmony. Cash working costs of R47 703/kg were achieved. In R/tonne terms, costs were R383/tonne. This operation remains extremely profitable, even in this R/kg gold price environment, delivering a cash operating profit of R56,9 million for the period.

Negotiations for the introduction of CONOPS at Masimong 5 Shaft continues. The shaft however reported similar tonnages of 225 000 for the current quarter (March 2004 - 227 000 tonnes). A lower recovery grade of 5,63 g/t compared to the previous quarter's 5,94 g/t resulted in gold recovered being lower at 1 268 kg (March 2004 - 1 347 kg). Cash operating profit from the shaft declined from R28,7 million to R15,9 million, mainly as a result of the lower gold price and marginally lower gold production.

Production at Bambanani was affected by three fires in the higher-grade section of the mine. All three were sealed and are in the process of being extinguished. Despite a lack of flexibility, tonnage from underground was supplemented by mining in lower-grade areas. The shaft managed to increase tonnage by 12% quarter on quarter, up from 334 000 to 347 000 tonnes. At a lower recovery grade of 5,31 g/t compared to the 6,07 g/t of the previous quarter, net gold recovery was 9% lower at 1 845 kg. Cash costs following the increase in tonnage and the cost of implementing CONOPS saw an increase of 6% to R175,5 million. Further performance improvements are expected from this shaft.

The implementation of CONOPS at Tshepong has made good progress. Increased development to allow for increased production is proceeding to plan. During May and June 2004, the shaft achieved record centares broken of 41 022 and 41 075 respectively. Underground tonnages increased by 10% from 392 000 tonnes to 433 000 tonnes. Despite a slightly lower recovery grade of 6,64 g/t (March 2004 - 7,30 g/t) net gold recovered was higher at 2 874 kg. In line with the increased tonnage from CONOPS and increased development, working costs increased by only 4% from R420/tonne to R438/tonne. When measured in R/kg terms, cash costs increased by 15% from R57 520/kg to R66 013/kg.

Masimong 4 Shaft, which has been under a 60 day review period, showed some improvement during the June 2004 quarter. However better results need to be achieved and the introduction of CONOPS could make this shaft profitable. Although tonnages milled only increased from 67 000 tonnes to 68 000 tonnes, a higher recovery grade of 4,19 g/t (March 2004 - 3,98 g/t) resulted in a 6% improvement in gold recovered. Total gold recovered was 285 kg. Working costs in R/kg terms decreased by 10% from R118 010/kg to R105 742/kg.

Tshepong Decline Expansion Project

The project is proceeding well with the installation of the conveyor belt system being completed by September 2004.

Development metres are expected to increase as the 69 Level Station breakaway has been reached. More development ends are now available.

Progressive expenditure on the project to date totals R99,4 million.

Phakisa Shaft Project

A re-evaluation of the project by the Harmony project team indicated that by shortening the main shaft to 54 metres below 77 Level and developing a decline to access the three levels below, the project returns could be enhanced. A further benefit was that an additional 500 000 m² would be added to the current life of mine plan.

The production start-up date of November 2007 remains intact.

Despite the expenditure of an additional R63,3 million for the decline, the NPV of the project improved from R965 million to R1 030 million and the IRR from 25% to 27%, respectively.

Phakisa Shaft

Masimong Expansion Project

The development project for opening up the orebodies on the Basal Reef as well as B - Reef is on target, with the required metres being achieved (within cost budget) in the last quarter.

Capital cost update

R million

Final estimated cost

152,6

Capital spent

89,6

Remaining capital

63,0

Financial evaluation update

Gold price (kg)

R80 000

NPV at 7,5%

R54,7 m

IRR

35%

Masimong Expansion Project - capital expenditure profile

2002

2003

2004

2005

2006

Act sunk

Forecast

Free State Leverage Operations - downscaling to profitability

June 2004

March 2004

U/g tonnes milled

('000)

1 132

989

U/g recovery grade

(g/t)

3,94

4,11

U/g kilograms produced

(kg)

4 460

4 065

U/g working costs

(R/kg)

95 393

92 668

U/g working costs

(R/tonne)

376

381

These operations which consist of the original Harmony shafts and some Free Gold shafts, returned a cash operating loss of R64,2 million. The operations reported a 14% increase in underground tonnage at a lower recovery grade of 3,94 g/t, which resulted in a 10% net increase of gold recovery from 4 065 kg to 4 460 kg.

Costs increased in line with the increase in tonnage to R425,5 million. Due to the lower recovery grade, working costs in R/kg increased from R92 668/kg to R95 393/kg. These shafts will see improvements as downscaling activities are implemented. By ensuring their profitability, albeit at lower production levels, significant optionality to a change in gold price in R/kg terms is retained.

Shafts included under this section are Joel, Kudu, West Shaft, Nyala, St Helena, Harmony 2, Merriespruit 1 and 3 Shafts, Unisel and Brand 3 and 5 Shafts.

The introduction of CONOPS at these shafts could ensure profitability. The future of these shafts will in the short- term be determined by their ability to address both their working cost and grade profiles.

Evander Operations - CONOPS assist in turnaround

Evander reported a profit of R0,6 million for the quarter compared to a loss of R4,4 million for the March 2004 quarter.

June 2004

March 2004

U/g tonnes milled

('000)

478

482

U/g recovery grade

(g/t)

6,19

5,08

U/g kilograms produced

(kg)

2 959

2 448

U/g working costs

(R/kg)

80 859

89 919

U/g working costs

(R/tonne)

501

457

As planned, both Evander 7 and 8 Shafts reported higher recovery grades. As the main contributors to this operation, good performance from these two shafts ensures profitability.

CONOPS has been fully implemented at Evander 7 Shaft. This, together with the action plan focussed on addressing the low mine call factor, has delivered returns. Tonnage increased from 129 000 to 132 000 tonnes. More significant was the 38% increase in recovery grade, up from 4,47 g/t to 6,16 g/t. When measured in R/kg terms, cash costs decreased from R95 617/kg to R75 347/kg. Due to the costs related to increased tonnage from underground and CONOPS related activities, net costs increased from R428/tonne to R464/tonne.

Due to an initial lack in mining flexibility, CONOPS has so far only been partially introduced at Evander 8 Shaft. Due to the lack of higher grade mining areas, less emphasis was placed on delivering lower grade volumes, but rather focussed on profitability. Tonnage was 7% lower at 139 000 tonnes. At a higher recovery grade of 7,10 g/t compared to the 4,75 g/t of the March 2004 quarter, net gold recovered increased by 39% to 984 kg. Cash costs in R/kg terms decreased by R21 794/kg or 23% to R72 621/kg. Due to our focus on smaller volumes at higher grades, net costs increased from R448/tonne to R 516/tonne.

The introduction of CONOPS at Evander 2 Shaft is progressing well but the results have been inconsistent to date. The shaft managed to increase its production by 14% from 101 000 tonnes to 115 000 tonnes quarter on quarter. At a higher recovery grade of 5,78 g/t (March 2004 - 5,73 g/t) net gold produced increased by 15% from 580 kg to 666 kg. Although actual working costs increased by 9%, costs when measured in both R/kg and R/tonne terms decreased. In R/kg cash costs decreased from R93 705/kg to R90 313/kg and from R537/tonne to R522/tonne.

Both Evander 5 and 9 Shafts experienced difficult quarters. Evander 5 Shaft, although being down on tonnage due to difficult ground conditions in shaft pillar areas, saw recovery grades increase from 6.9 g/t to 7.4 g/t. Due to lower kg recovered, cash costs increased from R77 388/kg to R79 949/kg. An improved performance is expected during the current quarter.

The future of Evander 9 Shaft under the current R/kg gold price conditions is being revisited.

Randfontein Operations - good performance during difficult times

June 2004

March 2004

U/g tonnes milled

('000)

615

623

U/g recovery grade

(g/t)

4,55

4,54

U/g kilograms produced

(kg)

2 797

2 828

U/g working costs

(R/kg)

78 156

82 825

U/g working costs

(R/tonne)

355

376

Randfontein reported a cash operating profit of R4,4 million compared to R13,7 million for the previous quarter. This excellent performance followed a R15,6 million or 7% reduction in underground working costs.

Underground tonnages were 8 000 tonnes lower at 615 000 tonnes at a similar recovery grade of 4,55 g/t, resulting in gold recovered being slightly lower at 2 797 kg.

Cooke 1 Shaft reported a 6% decline in production, down from 134 000 tonnes to 126 000 tonnes. At similar recovery grades of 6,02 g/t (March 2004 - 6,00 g/t), net gold recovered was 6% lower at 755 kg. Good working cost control however resulted in cash costs decreasing from R67 172/kg to R64 522/kg and in unit costs reducing from R403/tonne to R388/tonne.

Cooke 2 Shaft also experienced a drop in tonnage, down by 4% from 155 000 tonnes to 149 000 tonnes. Recovery grades at this shaft were marginally lower at 4,01 g/t (March 2004 - 4,07 g/t). As in the case of Cooke 1, this shaft also managed their costs well with cash costs decreasing from R92 325/kg to R87 648/kg and R376/tonne to R352/tonne. This shaft needs to return to profitability in the short term with higher grade areas being targeted.

Underground tonnage from Cooke 3 Shaft was marginally lower at 210 000 tonnes (March 2004 - 212 000 tonnes). At a slightly higher recovery grade of 4,51 g/t compared to the 4,46 g/t of the previous quarter, net gold recovered decreased by 2% to 936 kg. Despite reporting improvements in the cash cost structure of the shaft, costs remain too high. Cash costs of R85 648/kg and R382/tonne were reported.

Doornkop Shaft reported much improved results. Tonnage increased by 7% from 122 000 tonnes to 131 000 tonnes. At a higher recovery grade of 3,89 g/t (March 2004 - 3,59 g/t) the shaft increased net gold recovered by 16% to 509 kg. In both R/kg and R/tonne costs, the shaft made significant improvements. Cash costs in R/kg terms decreased by 18% to R73 458/kg and by 11% to R286/tonne.

Doornkop South Reef Project

Access development on 197 Level has commenced and will be ramped up. A raise line on 192 Level, West 3 has been started for the purpose of overstoping.

Preparatory work in the main shaft, which will provide for autonomous sinking operations below 132 Level, commenced at the end of June 2004.

Raise boring operations for the second outlet shaft and the main shaft sinking operation have commenced on both 126 Level and 192 Level. The second outlet shaft is due for completion in September 2004. This multipurpose shaft will provide for a doubling of ventilation air to the sub shaft, serve as a second outlet and will have the ability to transport material. The main shaft has been raise bored between 192 and 197 Levels and the pilot hole between 197 and 212 is complete. Reaming was completed by 17 July 2004.

The updated schedule provides for the main shaft to be commissioned in July 2006 and for production to ramp up to 135 000 tonnes per month by October 2008.

Capital cost update

R million

Final estimated cost

1 270,6

Capital spent

111,2

Remaining capital

1 159,4

Capital expenditure profile

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Actual spent

111

Forecast

145

173

160

161

142

117

1,160

Total

145

173

160

161

142

117

1,271

Financial evaluation update

Gold price (kg)

R80 000

NPV at 7,5%

R430 m

IRR

36%

The Harmony shaft project team is currently re-engineering the project and an update will be provided by next quarter.

Elandsrand Operations - more focus and attention required

June 2004

March 2004

U/g tonnes milled

('000)

268

317

U/g recovery grade

(g/t)

6,97

6,11

U/g kilograms produced

(kg)

1 867

1 938

U/g working costs

(R/kg)

96 103

86 706

U/g working costs

(R/tonne)

669

530

Our Elandsrand Operations reported a cash operating loss of R25,3 million compared to a profit of R2,0 million for the March 2004 quarter.

Underground tonnages were 49 000 tonnes or 15% less at 268 000 tonnes. Although recovery grades improved by 15% to 7,0g/t from the 6,1g/t, net gold recovered was lower at 1 867 kg compared to 1 938 kg for the previous quarter.

During the quarter, production at the shaft was influenced by a blockage in the orepass system and a seismic event which affected tonnes and grade.

Working costs were R11,4 million or 7% higher at R179,4 million. Due to the lower gold recovered, costs in R/kg terms increased from R86 706/kg to R96 102/kg.

Cost/tonne increased by approximately 26% from R530/tonne to R669/tonne due to the separation of waste and reef tonnes. Run of mine hoisting was stopped at the end of February 2004. Although the mine hoisted 17 000 tonnes less waste this quarter, cash costs did not decrease in line with production. Our aim is to return this mine to profitability in the short-term. One of our senior managers, as well as an experienced engineer, has been re- deployed to the mine to effect the turnaround. Our focus is on optimising mining activities in the old section of the mine whilst developing the New Mine Project.

Elandsrand New Mine Project

Work in this section of the deepened mine continues as per plan. Sub projects that were completed or progressed in the past quarter include:

•

the reef silos between 113 and 115 Levels are complete;

•

the 113 Level conveyor installation is 60% complete. Completion of this conveyor installation will ensure availability of a reef system within the next quarter;

•

settler dam No. 1, lining and sealing complete. Steelwork equipping of this dam commenced and will be completed by the end of August 2004.

102 Level

The 35 line will hole during the quarter and equipping commenced in July 2004. 37 raise line development commenced. Crosscut development is currently up to the 39 line.

105 Level

33 crosscut intersected the reef during May 2004. Capital crews will be moving to the lower levels during August 2004.

109 and 113 Levels

50% of the problematic Cobra Dyke has been negotiated successfully. Development progressed well in the past month and the cover- drilling programme remains in place to ensure safe progress through the dyke.

Capital expenditure update

R million

Final estimated cost

609,8

Capital spent to date

354,3

Capital to be spent

255,5

Annual capital expenditure profile

2001

2002

2003

2004

2005

2006

2007

2008

Total

Actual sunk

107

106

105

354

Forecast

256

Total

107

106

105

610

Financial evaluation update

Gold price (kg)

R80 000

NPV at 7,5%

R670 m

IRR

26%

Welkom/Orkney Operations - we need to re-establish profitability

June 2004

March 2004

U/g tonnes milled

('000)

236

266

U/g recovery grade

(g/t)

5,36

6,06

U/g kilograms produced

(kg)

1 264

1 612

U/g working costs

(R/kg)

82 460

69 708

U/g working costs

(R/tonne)

442

422

These operations reported a R31,3 million reduction in cash operating profit, down from R31,5 million to R0,2 million. As planned underground tonnage decreased by 30 000 tonnes to 236 000 tonnes and at a lower recovery grade of 5,36g/t, net gold recovery was 22% or 348 kg less at 1 264 kg. In line with the lower tonnages, cash working costs were R8,2 million lower at R104,2 million. Establishing profitability is the focus in the short term and improvements are expected in the current quarter.

Kalgold Operations - return to form

June 2004

March 2004

Opencast tonnes milled

('000)

379

315

Opencast recovery grade

(g/t)

1,75

1,55

Kilograms produced

(kg)

664

488

Working costs

(R/kg)

75 693

95 777

Working costs

(R/tonne)

133

148

These operations were returned to Harmony during the previous quarter following the cancellation of the sale agreement with the Afrikander Lease Limited. As expected these operations reported significantly improved results, reporting a cash operating profit of R2,5 million compared to a loss of R3,9 million for the March 2004 quarter.

Tonnage treated increased by 20% or 64 000 tonnes to 379 000 tonnes. The recovery grade improved from 1,55 g/t to 1,75 g/t. Overall gold recovery increased by 36% to 664 kg.

AUSTRALIAN OPERATIONS - IMPROVED PERFORMANCE AND RESULTS

Mount Magnet

Mount Magnet showed improvements in all the key parameters of tonnage milled, grade and working costs. The combination of these factors together with a higher Australian Dollar gold price improved the operating profit for the quarter from A$2,85 million for the March quarter to A$3,8 million for June. Production of gold decreased from 46 063 oz to 44 451 oz.

The main contributors to the improved result were increases in tonnage and in grade from both the underground operations due to the continuation of "de-bottlenecking" at Hill 50, following the rehabilitation of the ventilation system, and to better than expected grades from some of the remnant orebodies at Star.

Tonnages were slightly down but grades were up from the open pit operations as the higher-grade ores from the base of the St George and Watertank Hill pits were accessed.

Mt Muro (30%)

Waf

Morobe

Bendigo (13%)

Continued exploration success at the base of the Star Underground Mine will further extend the life of this operation into 2005.

Contracts for establishing the portal and the start of development of the new St George underground mine are being finalised with the aim of starting underground development on exploration discovery in the September 2004 quarter.

South Kal Mines

South Kal Mines had yet another steady quarter with production of 26 814 oz compared to 27 731 oz for March. Operating profits improved from A$2,25 million to A$3,34 million.

Tonnages from underground were slightly down on the previous quarter, but good cost control resulted in similar profit levels. The open pit mines produced higher tonnes at a similar grade but with lower unit costs to register a significant turnaround in profit.

Encouraging results continue to be obtained from the development drive and exploration drilling into the Mount Marion West orebody discovery.

CAPITAL EXPENDITURE

Actual

Forecast

Operational Capex

June 2004

September 2004

Free State Growth

Free State Marginal

Evander

Randfontein

Restructured Operations

Australian Operations

Total Operational Capex

100

Project Capex

Doornkop South Reef

Elandsrand New Mine

Tshepong North Decline

Phakisa Shaft

Target Shaft

Nyala Shaft

Total Project Capex

131

121

Total Capex

Free State Growth

100

Free State Marginal

Evander

Randfontein

Elandsrand New Mine

Restructured Operations

Australian Operations

Total Capex

231

198

NOTICE OF FINAL DIVIDEND

A dividend No. 79 of 30 cents per ordinary share being the final dividend for the financial year ending 30 June 2004, has been declared payable on 6 September 2004 to those shareholders recorded in the register of the company at the close of business on 3 September 2004.

The dividend is declared in the currency of the Republic of South Africa. Dividend cheques will be posted and electronic funds transferred on or about 6 September 2004 to certificated shareholders. Dematerialised shareholders will have their accounts at their CSDP or broker credited on 6 September 2004.

Any change in address or dividend instruction to apply to this dividend must be received by the company's transfer secretaries or registrar not later than 27 August 2004.

This announcement will be mailed to all registered holders on or about 9 August 2004.

SALIENT DATES

Last day to trade ordinary shares cum dividend

27 August

Ordinary shares trade ex dividend from

30 August

Record date

3 September

Payment due

6 September

Share certificates may not be dematerialised or rematerialised between Monday, 30 August 2004 and Friday, 3 September 2004, both days inclusive.

By order of the Board

M P van der Walt
Company Secretary

Virginia
30 July 2004

OPERATING AND FINANCIAL RESULTS

(Rand/metric)

* The restructured shafts consist of the Deelkraal operations, Eland shaft (part of Freegold operations), Orkney 3 and 6 shafts and Welkom 1 shaft.

Underground production - South Africa

Rand-

Elands-

Orkney/

Sub-

Growth Marginal

Evander

fontein

rand

Welkom

total

Ore milled - t'000

Jun-04

1 341

1 132

478

615

268

236

4 070

Mar-04

1 091

989

482

623

317

266

3 768

Gold produced - kg

Jun-04

8 148

4 460

2 959

2 797

1 867

1 264

21 495

Mar-04

6 780

4 065

2 448

2 828

1 938

1 612

19 671

Yield - g/tonne

Jun-04

6,08

3,94

6,19

4,55

6,97

5,36

5,28

Mar-04

6,21

4,11

5,08

4,54

6,11

6,06

5,22

Cash operating

Jun-04

73 194

95 393

80 859

78 156

96 103

82 460

82 036

costs - R/kg

Mar-04

71 029

92 668

89 919

82 825

86 706

69 708

80 984

Cash operating

Jun-04

445

376

501

355

669

442

433

costs - R/tonne

Mar-04

441

381

457

376

530

422

423

Working revenue

Jun-04

663 484

361 238

239 843

222 388

154 083

104 431 1 745 467

(R'000)

Mar-04

599 082

359 090

215 705

247 220

169 987

143 904

1 734 988

Cash operating

Jun-04

596 387

425 452

239 263

218 602

179 423

104 229 1 763 356

costs (R'000)

Mar-04

481 579

376 694

220 122

234 229

168 037

112 369

1 593 030

Cash operating

Jun-04

67 097

(64 213)

580

3 786

(25 341)

202

(17 889)

profit (R'000)

Mar-04

117 503

(17 604)

(4 416)

12 991

1 950

31 535

141 959

OPERATING AND FINANCIAL RESULTS

(Rand/metric)

* The restructured shafts consist of the Deelkraal operations, Eland shaft (part of Freegold operations), Orkney 3 and 6 shafts and Welkom 1 shaft.

Surface production -

South Africa

South

Aus- Harmony-

Free

Rand-

Sub- Opencast

Africa

tralia excluding

Harmony

State

fontein

total

Kalgold

Total

Restruct

Total

1 549

569

2 118

379

6 567

1 137

7 704

268

7 972

1 741

557

2 298

315

6 381

1 061

7 441

329

7 770

678

159

837

664

22 996

2 216

25 212

1 161

26 373

795

150

945

488

21 104

2 295

23 399

1 336

24 735

0,44

0,28

0,40

1,75

3,50

1,95

3,27

4,33

3,31

0,46

0,27

0,41

1,55

3,31

2,17

3,14

4,06

3,18

90 449

77 748

88 037

75 693

82 071

68 948

80 918

132 146

83 173

76 825

82 847

77 781

95 777

81 182

77 280

80 801

118 760

82 851

133

287

134

265

572

275

148

268

167

254

482

264

55 966

12 964

68 930

52 762 1 867 159

187 700 2 054 859

95 677 2 150 536

70 633

13 113

83 746

42 835

1 861 569

203 879

2 065 448

118 071

2 183 519

61 325

12 362

73 687

50 260 1 887 303

152 790 2 040 093

153 421 2 193 514

61 076

12 427

73 503

46 739

1 713 272

177 387

1 890 659

158 664

2 049 323

(5 359)

602

(4 757)

2 502

(20 144)

34 910

14 766

(57 744)

(42 978)

9 557

686

10 243

(3 904)

148 298

26 491

174 789

(40 592)

134 197

Ore milled - t'000

Jun-04

Mar-04

Gold produced - kg

Jun-04

Mar-04

Yield - g/tonne

Jun-04

Mar-04

Cash operating

Jun-04

costs - R/kg

Mar-04

Cash operating

Jun-04

costs - R/tonne

Mar-04

Working revenue

Jun-04

(R'000)

Mar-04

Cash operating

Jun-04

costs (R'000)

Mar-04

Cash operating

Jun-04

profit (R'000)

Mar-04

TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS

(Rand/metric) (unaudited)

Quarter ended

Quarter ended

30 June

31 March

30 June

2004

2004

2003

Ore milled - t'000

7 972

7 770

7 228

Gold produced - kg

26 373

24 735

21 992

Gold price received - R/kg

81 543

88 277

83 770

Cash operating costs - R/kg

83 173

82 852

75 433

R million

R million

Gold sales

2 151

2 183

1 842

Cash operating costs

2 194

2 049

1 659

Cash operating (loss)/profit

(43)

134

183

Other income - net

Employment termination and restructuring costs

(184)

(14)

(11)

Corporate, marketing, new business expenditure

(32)

(34)

(38)

Exploration expenditure

(21)

(14)

(24)

Income from associates

Loss on dilution of ARM Limited

(124)

Interest paid

(99)

(97)

(86)

Depreciation and amortisation

(280)

(251)

(140)

Reversal/(provision) for rehabilitation costs

(12)

(Loss)/gain on financial instruments

(110)

220

Profit/(loss) on foreign exchange

(11)

(133)

Impairment of investments and assets

(75)

(598)

Loss before tax

(810)

(156)

(503)

Current tax - benefit/(expense)

(28)

Deferred tax - benefit

203

Net loss before minority interests

(577)

(78)

(478)

Minority interests

(3)

Net loss

(559)

(81)

(478)

TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS

(Rand/metric) (unaudited) (continued)

Quarter ended

Quarter ended

30 June

31 March

30 June

2004

2004

2003

R million

R million

(Loss)/earnings per share - cents * - Basic loss

(191)

(31)

(259)

Basic (loss)/earnings before impairment

(165)

(31)

Headline (loss)/earnings

(131)

(16)

Fully diluted loss **

(191)

(31)

(259)

Dividends per share - (cents) - Interim

Proposed final

150

Prepared in accordance with International Financial Reporting Standards.

Calculated on weighted number of shares in issue at quarter end June 2004: 292.9 million (March 2004: 258.4 million)
(June 2003: 184.3 million).

** Calculated on weighted average number of diluted shares in issue at quarter end June 2004: 293.2 million (March 2004:
257.0 million)

(June 2003: 184.3 million).

Reconciliation of headline (loss)/earnings:

Net loss

(559)

(81)

(478)

Adjustments:
- Profit on sale of assets

(44)

(2)

(38)

Profit on disposal of Kalplats

(39)

Profit on disposal of Bissett

(1)

Loss on dilution of ARM Limited

163

Amortisation of goodwill

Impairment of mining assets

598

Impairment of Bendigo

Headline (loss)/earnings

(384)

(41)

TOTAL OPERATIONS - ANNUAL FINANCIAL RESULTS

(Rand/metric)

Year ended

Year ended

30 June

30 June

2004

2003

2004

Pro forma

including ARMgold

in September

2003 Quarter

Ore milled - t'000

30 781

28 238

32 519

Gold produced - kg

103 127

93 054

110 547

Gold price received - R/kg

85 219

96 663

85 317

Cash operating costs - R/kg

79 599

71 146

79 029

R million

R million

(reviewed)

(audited)

(unaudited)

Gold sales

8 788

8 995

9 432

Cash operating costs

8 208

6 621

8 736

Cash operating profit

580

2 374

696

Other income - net

231

287

283

Employment termination and restructuring costs

(230)

(47)

(238)

Corporate, marketing, new business expenditure

(160)

(144)

(172)

Exploration expenditure

(83)

(75)

(83)

Income from associates

Profit/(loss) on sale and dilution of listed investments

398

(54)

398

Interest paid

(389)

(321)

(418)

Depreciation and amortisation

(919)

(582)

(943)

Reversal/(provision) for rehabilitation costs

(5)

(Loss)/gain on financial instruments

(223)

440

(223)

Loss on listed investments

(9)

Loss on foreign exchange

(2)

(192)

(2)

Impairment of investments and assets

(88)

(812)

(88)

(Loss)/income before tax

(813)

917

(729)

Current tax - expense

(60)

(294)

(78)

Deferred tax - benefit

354

345

Net (loss)/income before minority interests

(519)

643

(462)

Minority interests

(4)

(4)

Net (loss)/income

(523)

639

(466)

TOTAL OPERATIONS - ANNUAL FINANCIAL RESULTS

(Rand/metric) (continued)

Year ended

Year ended

30 June

30 June

2004

2003

2004

Pro forma

including ARMgold

in September

2003 Quarter

R million

R million

(reviewed)

(audited)

(unaudited)

(Loss)/earnings per share - cents * - Basic (loss)/earnings

(206)

359

(193)

Basic (loss)/earnings before impairment

(172)

815

(157)

Headline (loss)/earnings

(287)

661

(319)

Fully diluted (loss)/earnings **

(205)

359

(192)

Dividends per share - (cents) - Interim

125

Proposed final

150

Prepared in accordance with International Financial Reporting Standards.

* Calculated on weighted number of shares in issue at year ended June 2004: 253.6 million (June 2003: 178.0 million).

** Calculated on weighted average number of diluted shares in issue at year ended June 2004: 254.9 million (June 2003:

178.3 million).

Reconciliation of headline (loss)/earnings:

Net (loss)/earnings

(523)

639

(466)

Adjustments:
- Profit on sale of assets

(58)

(61)

(60)

Profit on disposal of Highland and High River - net of tax

(464)

(464)

Profit on disposal of Kalplats

(39)

(39)

Profit on disposal of Bissett

(1)

(1)

Loss on dilution of ARM Limited

163

163

Amortisation of goodwill

105

105

Impairment of mining assets

598

Impairment of Bendigo and other investments

Headline (loss)/earnings

(729)

1 176

(673)

ABRIDGED BALANCE SHEET AT 30 JUNE 2004

(Rand)

At 30 June 2004

At 31 March 2004

At 30 June 2003

R million

R million

(reviewed)

(unaudited)

(audited)

ASSETS

Non-current assets

Property, plant and equipment

22 244

14 821

9 969

Investments

2 612

1 130

868

Investments in associates

124

2 604

1 398

Intangible assets

2 267

2 761

27 247

21 316

12 235

Current assets

Inventories

531

455

454

Receivables

860

452

771

Cash and cash equivalents

1 413

2 337

1 687

2 804

3 244

2 912

Total assets

30 051

24 560

15 147

At 30 June 2004

At 31 March 2004

At 30 June 2003

R million

R million

(reviewed)

(unaudited)

(audited)

EQUITY AND LIABILITIES

Share capital and reserves

Issued capital

21 166

14 678

6 874

Fair value and other reserves

(1 462)

(376)

(242)

Retained earnings

1 078

1 636

1 996

20 782

15 938

8 628

Minority interest

147

120

Non-current liabilities

Long-term borrowings*

2 846

2 795

2 415

Net deferred taxation liabilities

2 660

2 706

1 534

Net deferred financial liabilities

570

299

283

Long-term provisions

798

852

633

6 874

6 652

4 865

Current liabilities

2 395

1 823

1 534

Total equity and liabilities

30 051

24 560

15 147

Number of ordinary shares in issue

320 741 577

258 469 684

184 854 115

Net asset value per share (cents)

6,479

6,223

4,732

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 statements are prepared in accordance with IAS 34, Interim Financial Reporting. The accounting policies are consistent with those applied in the previous financial year.

Audit review

The year end results have been reviewed in terms of Rule 3.23 of the Listing Requirements of the JSE Securities Exchange South Africa by the company's auditors, PricewaterhouseCoopers Inc. The unqualified review opinion is available on request from the Company Secretary.

* The issue of the convertible bonds was offset by the payment of outstanding long-term loans.

OPERATING AND FINANCIAL RESULTS

(US$/imperial)

* The restructured shafts consist of the Deelkraal operations, Eland shaft (part of Freegold operations), Orkney 3 and 6 shafts and Welkom 1 shaft.

Underground production - South Africa

Rand-

Elands-

Orkney/

Sub-

Growth Marginal

Evander

fontein

rand

Welkom

total

Ore milled - t'000

Jun-04

1,479

1,248

527

678

296

260

4,488

Mar-04

1,202

1,091

532

687

350

293

4,155

Gold produced - oz

Jun-04

261,963

143,392

95,134

89,925

60,025

40,638

691,077

Mar-04

217,980

130,692

78,705

90,922

62,308

51,827

632,434

Yield - oz/t

Jun-04

0.18

0.11

0.18

0.13

0.20

0.16

0.15

Mar-04

0.18

0.12

0.15

0.13

0.18

0.15

Cash operating

Jun-04

345

450

381

368

453

389

387

costs - $/oz

Mar-04

326

426

413

381

398

320

372

Cash operating

Jun-04

costs - $/t

Mar-04

Working revenue

Jun-04

100,555

54,748

36,350

33,704

23,352

15,827

264,536

($'000)

Mar-04

88,491

53,041

31,862

36,517

25,109

21,256

256,276

Cash operating costs

Jun-04

90,386

64,480

36,262

33,130

27,193

15,796

267,247

($'000)

Mar-04

71,134

55,642

32,514

34,598

24,821

16,598

235,307

Cash operating profit

Jun-04

10,169

(9,732)

574

(3,841)

(2,711)

($'000)

Mar-04

17,356

(2,600)

(652)

1,919

288

4,658

20,969

OPERATING AND FINANCIAL RESULTS

(US$/imperial)

* The restructured shafts consist of the Deelkraal operations, Eland shaft (part of Freegold operations), Orkney 3 and 6 shafts and Welkom 1 shaft.

Surface production -

South Africa

South

Aus- Harmony

Free

Rand-

Sub- Opencast

Africa

tralia excluding

Harmony

State

fontein

total

Kalgold

Total

Restruct

Total

1,708

627

2,335

418

7,242

1,254

8,495

296

8,791

1,920

614

2,534

347

7,036

1,169

8,205

363

8,568

21,798

5,112

26,910

21,348

739,335

71,246

810,581

37,327

847,908

25,560

4,823

30,383

15,689

678,506

73,786

752,292

42,953

795,245

0.01

0.05

0.10

0.06

0.10

0.13

0.10

0.01

0.05

0.10

0.06

0.09

0.12

0.09

426

367

415

357

387

325

381

623

392

353

381

357

440

373

355

371

546

381

8,482

1,965

10,447

7,996

282,979

28,447

311,426

14,500

325,926

10,433

1,937

12,370

6,327

274,973

30,115

305,088

17,440

322,529

9,294

1,874

11,168

7,617

286,032

23,156

309,188

23,252

332,440

9,022

1,836

10,857

6,904

253,068

26,202

279,270

23,436

302,706

(812)

(721)

379

(3,053)

5,291

2,238

(8,752)

(6,514)

1,412

101

1,513

(577)

21,905

3,913

25,818

(5,996)

19,822

Ore milled - t'000

Jun-04

Mar-04

Gold produced - oz

Jun-04

Mar-04

Yield - oz/t

Jun-04

Mar-04

Cash operating

Jun-04

costs - $/oz

Mar-04

Cash operating

Jun-04

costs - $/t

Mar-04

Working revenue

Jun-04

($'000)

Mar-04

Cash operating costs

Jun-04

($'000)

Mar-04

Cash operating profit

Jun-04

($'000)

Mar-04

TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS

(US$/imperial) (unaudited)

Quarter ended

Quarter ended

30 June

31 March

30 June

2004

2004

2003

Ore milled - t'000

8 791

8 568

7 971

Gold produced - oz

847 908

795 245

707 053

Gold price received - $/oz

384

405

337

Cash operating costs - $/oz

392

381

303

$ million

$ million

Gold sales

326

322

239

Cash operating costs

333

302

215

Cash operating (loss)/profit

(7)

Other income - net

Employment termination and restructuring costs

(28)

(2)

(1)

Corporate, marketing, new business expenditure

(5)

(5)

Exploration expenditure

(3)

(2)

(3)

Income from associates

Loss on dilution of ARM Limited

(19)

Interest paid

(15)

(14)

(11)

Depreciation and amortisation

(42)

(37)

(18)

Reversal/(provision) for rehabilitation costs

(2)

Loss/(gain) on financial instruments

(17)

Profit/(loss) on foreign exchange

(2)

(18)

Impairment of investments and assets

(11)

(77)

Loss before tax

(123)

(24)

(65)

Current tax - benefit/(expense)

(4)

Deferred tax - benefit

Net loss before minority interests

(87)

(12)

(62)

Minority interests

Net loss

(85)

(12)

(62)

TOTAL OPERATIONS - QUARTERLY FINANCIAL RESULTS

(US$/imperial) (unaudited) (continued)

Quarter ended

Quarter ended

30 June

31 March

30 June

2004

2004

2003

$ million

$ million

(Loss)/earnings per share - cents * - Basic loss

(29)

(5)

(34)

Basic (loss)/earnings before impairment

(25)

(5)

Headline (loss)/earnings

(20)

(2)

Fully diluted loss **

(29)

(5)

(34)

Dividends per share - (cents) - Interim

Proposed final

Currency conversion rates average for the quarter: June 2004: US$1=R6.60 (March 2004: US$1=R6.77) (June 2003: US$1=R7.73).

* Calculated on weighted number of shares in issue at quarter end June 2004: 292.9 million (March 2004: 258.4 million)

(June 2003: 184.3 million).

** Calculated on weighted average number of diluted shares in issue at quarter end June 2004: 293.2 million (March 2004:
257.0 million)

(June 2003: 184.3 million).

Reconciliation of headline (loss)/earnings:

Net loss

(85)

(12)

(62)

Adjustments: - Profit on sale of assets

(7)

(5)

Profit on disposal of Kalplats

(6)

Loss on dilution of ARM Limited

Amortisation of goodwill

Impairment of mining assets

Impairment of Bendigo

Headline (loss)/earnings

(59)

(6)

TOTAL OPERATIONS - ANNUAL FINANCIAL RESULTS

(US$/imperial) (unaudited)

Year ended

Year ended

30 June

30 June

30 June 2004

2004

2003

Pro forma

including ARMgold

in September

2003 Quarter

Ore milled - t'000

33 943

31 139

35 860

Gold produced - oz

3 315 595

2 991 734

3 554 152

Gold price received - $/oz

385

329

385

Cash operating costs - $/oz

360

242

357

$ million

$ million

Gold sales

1 276

985

1 370

Cash operating costs

1 192

725

1 269

Cash operating profit

260

101

Other income - net

Employment termination and restructuring costs

(33)

(5)

(35)

Corporate, marketing, new business expenditure

(23)

(16)

(25)

Exploration expenditure

(12)

(8)

(12)

Income from associates

Profit/(loss) on sale and dilution of listed investments

(6)

Interest paid

(57)

(35)

(61)

Depreciation and amortisation

(133)

(64)

(137)

Reversal/(provision) for rehabilitation costs

(1)

(Loss)/gain on financial instruments

(32)

(32)

Loss on foreign exchange

(21)

Impairment of investments and assets

(13)

(89)

(13)

(Loss)/income before tax

(118)

100

(106)

Current tax - expense

(9)

(32)

(11)

Deferred tax - benefit

Net (loss)/income before minority interests

(75)

(67)

Minority interests

(1)

(1)

Net (loss)/income

(76)

(68)

TOTAL OPERATIONS - ANNUAL FINANCIAL RESULTS

(US$/imperial) (unaudited) (continued)

Year ended

Year ended

30 June

30 June

30 June 2004

2004

2003

Pro forma

including ARMgold

in September

2003 Quarter

$ million

$ million

(Loss)/earnings per share - cents * - Basic (loss)/earnings

(30)

(28)

Basic (loss)/earnings before impairment

(25)

(23)

Headline (loss)/earnings

(42)

(46)

Fully diluted (loss)/earnings **

(30)

(28)

Dividends per share - (cents) - Interim

Proposed final

Currency conversion rates average for the year ended June 2004: US$1=R6.89 (June 2003: US$1=R9.13).

* Calculated on weighted number of shares in issue at year ended June 2004: 253.6 million (June 2003: 178.0 million).

** Calculated on weighted average number of diluted shares in issue at year ended June 2004: 254.9 million (June 2003:

178.3 million).

Reconciliation of headline (loss)/earnings:

Net (loss)/earnings

(76)

(68)

Adjustments:
- Profit on sale of assets

(8)

(7)

(9)

Profit on disposal of Highland and High River - net of tax

(67)

(67)

Profit on disposal of Kalplats

(6)

(6)

Loss on dilution of ARM Limited

Amortisation of goodwill

Impairment of mining assets

Impairment of Bendigo and other investments

Headline (loss)/earnings

(105)

128

(98)

ABRIDGED BALANCE SHEET AT 30 JUNE 2004

(US$) (unaudited)

At 30 June

At 31 March

At 30 June

2004

2004

2003

US$ million

US$ million

ASSETS

Non-current assets

Property, plant and equipment

3 572

2 345

1 327

Investments

419

179

116

Investments in associates

412

186

Intangible assets

364

437

4 375

3 373

1 629

Current assets

Inventories

Receivables

138

103

Cash and cash equivalents

227

370

225

450

513

388

Total assets

4 825

3 886

2 017

EQUITY AND LIABILITIES

Share capital and reserves

Issued capital

3 399

2 322

915

Fair value and other reserves

(235)

(59)

(32)

Retained earnings

173

258

266

3 337

2 521

1 149

Minority interest

Non-current liabilities

Long-term borrowings*

457

442

322

Net deferred taxation liabilities

427

428

204

Net deferred financial liabilities

Long-term provisions

128

135

1 104

1 052

648

Current liabilities

384

290

204

Total equity and liabilities

4 825

3 886

2 017

Number of ordinary shares in issue

320 741 577

258 469 684

184 854 115

Net asset value per share (US cents)

1 040

984

630

Basis of accounting

* The issue of the convertible bonds was offset by the payment of outstanding long-term loans.

Balance sheet converted at conversion rates of: US$1 = R6.23 (March 2004: R6.32) (June 2003: R7.51).

CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE 12 MONTHS ENDED 30 JUNE 2004

Issued Fair

value

share and

other

Retained

capital

reserves

earnings

Total

R million

(Reviewed)
Balance as 1 July 2003

6 874

(242)

1 996

8 628

Issue of share capital

14 292

Currency translation adjustment and other

(1 220)

Net loss

(523)

Dividends paid

(395)

Balance at 30 June 2004

21 166

(1 462)

1 078

20 782

(Audited)
Balance at 1 July 2002

5 547

2 328

7 963

Issue of share capital

1 327

Currency translation adjustment and other

(330)

Net earnings

639

Dividends paid

(971)

Balance at 30 June 2003

6 874

(242)

1 996

8 628

Issued Fair

value

share and

other

Retained

capital

reserves

earnings

Total

US$ million

(Unaudited)
Balance at 1 July 2003

1 104

(39)

321

1 386

Issue of share capital

2 295

Currency translation adjustment and other

(196)

Net loss

(85)

Dividends paid

(63)

Balance at 30 June 2004

3 399

(235)

173

3 337

(Unaudited)
Balance at 1 July 2002

739

310

1 061

Issue of share capital

176

Currency translation adjustment and other

(44)

Net earnings

Dividends paid

(129)

Balance at 30 June 2003

915

(32)

266

1 149

Balances translated at closing rates of: June 2004: US$1 = R6.23 (June 2003: R7.51).

SUMMARISED CASH FLOW STATEMENT
FOR THE THREE MONTHS ENDED 30 JUNE 2004

Three

months

ended

31 March

30 June

31 March

2004

US$ million

R million

(unaudited)

(10)

(82) Cash flow from operating activities

(564)

(68)

Cash flow from investing activities

Cash held by subsidiaries at acquisition

Net proceeds on disposal of listed investments

(33)

(10) Net additions to property, plant and equipment

(71)

(228)

(87) Other investing activities

(600)

(33)

(95) Cash utilised by investing activities

(656)

(228)

Cash flow from financing activities

(13)

Long-term loans - net

498

(92)

(11) Ordinary shares issued - net of expenses

(76)

(15)

Dividends paid

(103)

(27)

Cash generated/(utilised) by financing activities

422

(190)

(27) Foreign currency translation adjustments

(126)

(65)

(61)

(143) Net decrease in cash and equivalents

(924)

(551)

431

370

Cash and equivalents - beginning of quarter

2 337

2 888

370

227

Cash and equivalents - end of quarter

1 413

2 337

Operating activities translated at average rates of: June 2004 quarter: US$1 = R6.60 (March 2004 quarter: R6.77).

Closing balance translated at closing rates of: June 2004: US$1 = R6.23 (March 2004: R6.32).

SUMMARISED CASH FLOW STATEMENT FOR THE 12 MONTHS ENDED 30 JUNE 2004

months

ended

30 June

2003

2004

2003

US$ million

R million

(unaudited)

(reviewed) (unaudited)

144

(72) Cash flow from operating activities

(498)

1 317

Cash flow from investing activities

106

Cash held by subsidiaries at acquisition

730

146

Net proceeds on disposal of listed investments

1 008

876

(102)

(97) Net additions to property, plant and equipment

(669)

(935)

(112)

(87) Other investing activities

(600)

(1 025)

(109)

Cash generated/(utilised) by investing activities

469

(1 005)

Cash flow from financing activities

(52)

Long-term loans - net

343

(477)

140

Ordinary shares issued - net of expenses

1 275

(106)

(57) Dividends paid

(395)

(968)

(18)

(7) Cash utilised by financing activities

(50)

(170)

Foreign currency translation adjustments

(195)

104

Net (decrease)/increase in cash and equivalents

(274)

246

139

225

Cash and equivalents - 1 July

1 687

1 441

225

227

Cash and equivalents - 30 June

1 413

1 687

Operating activities translated at average rates of: June 2004: US$1 = R6,89 (June 2003: R9,13).

Closing balance translated at closing rates of: June 2004: US$1 = R6,23 (June 2003: R7,51).

GROUP COMMODITY, CURRENCY, INTEREST AND LEASE RATE CONTRACTS
AT 30 JUNE 2004

Commodity contracts

Maturity schedule of the Harmony group's commodity contracts by type at 30 June 2004

30 June

2006

2007

2008

2009

Total

Forward sales agreements

Ounces

108 000

147 000

100 000

455 000

A$/ounce

510

515

518

515

Calls contracts sold

Ounces

40 000

A$/ounce

552

148 000

147 000

100 000

495 000

These contracts are classified as speculative and the marked-to-market movement is reflected in the income statement.

The mark-to-market of these contracts was a negative R260 million (US$42 million) at 30 June 2004. These values were based on a gold price of US$393 (A$571) per ounce, exchange rates of US$1/R6.2275 and A$1/US$0.6894 and prevailing market interest rates at the time. These valuations were provided by independent risk and treasury management experts.

Gold lease rates

Harmony holds certain gold lease rate swaps which were acquired through its acquisitions of New Hampton and Hill 50. These instruments are all treated as speculative. The mark-to-market of the above contracts was a positive R8 million (US$1 million) at 30 June 2004, based on valuations provided by independent treasury and risk management experts.

Interest rate swaps

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 floating rate based on JIBAR plus a spread raging from 1.8% to 2.2%.

These transactions which mature in June 2006 are designated as fair value hedges. The marked-to-market value of the transactions was a negative R17 million (US$3 million) at 30 June 2004, based on the prevailing interest rates and volatilities at the time.

Currency contracts

30 June

2005

2006

Total

Forward exchange contracts and calls sold

US$ million

119

Average strike US$/R

9.073

9.543

9.229

Harmony inherited these contracts with the acquisition of Avgold. The contracts are classified as speculative and the mark-to-market movement is reflected in the income statement.

The mark-to-market of these contracts was a negative R300 million (US$48 million) at 30 June 2004. These values were based upon an exchange rate of US$1/R6.2600 and prevailing market interest rates at the time. Independent risk and treasury management experts provided these valuations.

Z B Swanepoel
Chief Executive

Virginia
30 July 2004

DEVELOPMENT RESULTS

(metric)

Quarter ended 30 June 2004

Channel

Reef

Sampled

width

value

Gold

metres

(cm's)

(g/t)

(cmg/t)

Randfontein

VCR Reef

1 277

1 059

14,83

1 314

UE1A

1 966

1 760

121

8,47

1 022

E8 Reef

179

168

155

3,69

572

Kimberley Reef

1 195

827

163

6,37

1 039

South Reef

0,00

All Reefs

4 617

3 814

122

8,88

1 087

Free State

Basal

2 174

1 710

9,47

767

Leader

1 065

702

174

6,86

1 194

A Reef

543

504

148

4,93

729

Middle

140

194

225

3,41

768

B Reef

614

584

38,74

2 092

All Reefs

4 536

3 694

111

9,47

1 052

Evander

Kimberley Reef

2 776

2 544

13,02

781

Elandskraal

VCR Reef

726

464

104

8,28

858

Orkney

Vaal Reef

100

3,77

377

VCR

0,00

All Reefs

100

3,77

377

Free Gold

Basal

2 064

2 000

19,47

1 521

Beatrix

518

408

10,58

845

Leader

177

3,95

700

All Reefs

2 672

2 507

16,75

1 379

Target

Leader

1 019

489

434

5,31

2 303

DEVELOPMENT RESULTS

(imperial)

Quarter ended 30 June 2004

Channel

Reef

Sampled

width

value

Gold

feet

(inches)

(oz/t)

(in.ozt)

Randfontein

VCR Reef

4 188

3 475

0,43

UE1A

6 450

5 774

0,26

E8 Reef

586

551

0,11

Kimberley Reef

3 919

2712

0,19

South Reef

0,00

All Reefs

15 143

12 512

0,25

Free State

Basal

7 133

5 610

0,28

Leader

3 494

2 303

0,20

A Reef

1 781

1 654

0,14

Middle

459

636

0,10

B Reef

2 014

1 916

1,14

All Reefs

14 881

12 119

0,27

Evander

Kimberley Reef

9 108

8 346

0,37

Elandskraal

VCR Reef

2 381

1522

0,24

Orkney

Vaal Reef

112

0,11

VCR

0,00

All Reefs

112

0,11

Free Gold

Basal

6 771

6 562

0,56

Beatrix

1 700

1 339

0,31

Leader

294

325

0,11

All Reefs

8 765

8 226

0,49

Target

Leader

3 342

1 604

171

0,15

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, F Dippenaar, V N Fakude, T S A Grobicki
W M Gule, D S Lushaba, R P Menell, M Motloba, Dr M Z Nkosi
M F Pleming, N Qangule, Lord Renwick of Clifton KCMG*
C M L Savage

*British

Investor Relations

Ferdi Dippenaar
Marketing Director
Telephone: +27 11 684 0140
Fax:

+27 11 684 0188

E-mail:

fdippenaar@harmony.co.za

Corné Bobbert
Investor Relations Officer
Telephone: +27 11 684 0146
Fax:

+27 11 684 0188

E-mail:

cbobbert@harmony.co.za

Marian van der Walt
Company Secretary
Telephone: +27 11 411 2037
Fax:

+27 11 411 2398

E-mail:

mvanderwalt@harmony.co.za

South African Share Transfer Secretaries

Ultra Registrars (Pty) Ltd
PO Box 4844
Johannesburg, 2000
Telephone: +27 11 832 26520
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 Exchange South Africa HAR
New York Stock Exchange, Inc.

HMY

London Stock Exchange plc

HRM

Euronext Paris

Euronext Brussels

HMY

Berlin Stock Exchange

HAM1

Registration number 1950/038232/06

Incorporated in the Republic of South Africa

ISIN: ZAE000015228

This report contains "forward-looking statements" within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. These statements relate to our expectations, beliefs, intentions or strategies regarding the future and include, without limitation: (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales; (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (v) statements regarding future debt repayments; (vi) estimates of future capital expenditures; (vii) estimates of reserves and statements regarding future exploration results and the replacement of reserves; and (viii) statements regarding modifications to our hedge position. Where we expresses or imply an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our current views and assumptions with respect to future events are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries in which we operate and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see Harmony's Annual Report on Form 20-F for the year ended 30 June 2003, which is on file with the U.S. Securities and Exchange Commission, as well as the company's other SEC filings.

Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. We do not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused

this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August ****, 2004

Harmony Gold Mining Company Limited

By:

/s/ Frank Abbott

Name: Frank Abbott
Title: Chief Financial Officer