| Mon 28 Jan 2002, 0:00 | | Harmony Gold Mining Company Limited - Financial Re |
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Report to shareholders for the quarter ended 31 December 2001
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
JSE code: HAR NASDAQ trading code: HGMCY
ISIN: ZAE000015228
Report to shareholders for the quarter ended 31 December 2001
"The depreciation of the rand has made the company significantly more
profitable. However, now is the time to double our efforts to control
working costs as all stakeholders will be aggressively increasing their
demands for a larger slice of this windfall profit. Our main focus will be
on enhancing the value of the company by increasing the profit margin of the
ounces we produce."
Key indicators
* Conclusion of JV agreement to acquire AngloGold's Freegold assets
* Offer to shareholders of Hill 50 in Australia
* Current cash cost of US$198/oz, cash operating profit margin of 28%
* On track for annualised production of 3 million ounces
* Achieved payback of R750 million nett investment for Randfontein in eight
quarters
* Record cash operating profit of R455,2 million
* 222% increase in e.p.s. from 64 cents to 206 cents
* Interim dividend declaration of 75 cents per share
* Excellent all round operational performance
* Increase in R/kg gold price results in extended life of shafts at various
operations
Directors: A R Fleming*# (Chairman), Z B Swanepoel (Chief executive),
F Abbott, F Dippenaar, Dr. A M Edwards*,
T S A Grobicki, M F Pleming*, Lord Renwick of Clifton KCMG*#,
Dr. G S Sibiya*, *Non executive directors #British
It is with regret that I have to report the loss of life of fourteen
employees following mine accidents during the previous quarter. I wish to
offer my sincere condolences to the family, friends and colleagues of these
employees.
Operating and financial results
Free Rand-
State Evander Evander Kalgold fontein
Total U/g Surface Opencast U/g
Ore milled
- t'000 Dec-01 1 074 538 59 256 860
Sept-01 1 224 521 72 256 880
Gold produced
- kg Dec-01 4 884 3 296 31 575 4 485
Sept-01 4 867 3 237 70 561 4 421
Yield
- g/tonne Dec-01 4.55 6.13 0.53 2.25 5.22
Sept-01 3.98 6.21 0.97 2.19 5.02
Cash
operating Dec-01 70 152 54 963 46 968 56 675 56 565
costs
- R/kg Sept-01 73 666 56 348 25 700 55 137 56 920
Cash
operating Dec-01 319 337 25 127 295
costs
- R/
tonne Sept-01 293 350 25 121 286
Working
revenue Dec-01 430 075 291 084 2 946 50 342 399 847
(R'000) Sept-01 367 451 240 076 5 100 41 620 332 066
Cash
operating Dec-01 342 620 181 159 1 456 32 588 253 692
costs
(R'000) Sept-01 358 533 182 400 1 799 30 932 251 644
Cash
operating Dec-01 87 455 109 925 1 490 17 754 146 155
profit
(R'000) Sept-01 8 918 57 676 3 301 10 688 80 422
Operating and financial results
Rand- Elands- Elands- Offshore
fontein kraal kraal Opera-
Surface U/g Surface tions Total
Ore milled
- t'000 Dec-01 339 551 284 1 009 4 970
Sept-01 306 552 290 963 5 064
Gold produced
- kg Dec-01 186 3 452 178 1 397 18 484
Sept-01 324 3 669 221 1 791 19 161
Yield
- g/tonne Dec-01 0.55 6.26 0.63 1.38 3.72
Sept-01 1.06 6.65 0.76 1.86 3.78
Cash
operating Dec-01 68 473 65 056 48 517 88 034 63 863
costs
- R/kg Sept-01 52 429 63 803 43 620 68 664 63 097
Cash
operating Dec-01 38 408 30 122 238
costs
- R/
tonne Sept-01 56 424 33 128 239
Working
revenue Dec-01 16 927 304 032 16 429 123 979 1 635 661
(R'000) Sept-01 24 092 270 726 16 329 123 605 1 421 065
Cash
operating Dec-01 12 736 224 575 8 636 122 983 1 180 445
costs
(R'000) Sept-01 16 987 234 092 9 640 122 977 1 209 004
Cash
operating Dec-01 4 191 79 457 7 793 996 455 216
profit
(R'000) Sept-01 7 105 36 634 6 689 628 212 061
Financial results (unaudited)
6 Months 6 Months Quarter Quarter
ended ended ended ended
31 Dec 31 Dec 31 Dec 30 Sept
2000 2001 2001 2001
8 361 10 034 Ore milled - t'000 4 970 5 064
32 838 37 645 Gold produced - kg 18 484 19 161
Gold price received
65 189 81 199 - R / kg 88 491 74 164
Cash operating costs
55 220 63 473 - R / kg 63 863 63 097
R'000 R'000 R'000 R'000
2 140 660 3 056 726 Gold sales 1 635 661 1 421 065
1 813 319 2 389 449 Cash operating
costs 1 180 445 1 209 004
327 341 667 277 Cash operating profit 455 216 212 061
(89 938) (104 741) Amortisation (54 086) (50 655)
Mark to market of
77 500 (136 714) financial
instruments 11 141 (147 855)
Employment termination
(8 547) (23 840) costs (10 432) (13 408)
Other (expenses)/income
28 942 16 304 - net (8 690) 24 994
(27 865) (79 269) Interest paid (40 437) (38 832)
(12 376) (28 461) Corporate
expenditure (14 302) (14 159)
Exploration and new
(16 843) (23 078) business (12 923) (10 155)
Mark to market of
- 246 285 listed investments 86 939 159 346
278 214 533 763 Profit before
taxation 412 426 121 337
South African normal
taxation
(30 995) (103 365) - Current tax (83 851) (19 514)
(31 775) (29 338) - Deferred tax (20 872) (8 466)
215 444 401 060 Net earnings 307 703 93 357
Adjustments:
- Profit on sale of
property, plant and
24 691 11 677 equipment 6 985 4 692
190 753 389 383 Headline earnings 300 718 88 665
Earnings per share - cents *
213 270 - Basic earnings 206 64
188 263 - Headline earnings 202 61
50 75 Dividends per share -
(cents) 75 -
* Calculated on number of shares in issue at quarter end: 149.1 million
(September: 145.1 million).
Abridged balance
sheet
(unaudited) *At At At
31 Dec 30 Sept 31 Dec
2001 2001 2000
R'000 R'000 R'000
Employment of Capital
Mining assets after
amortisation 5 868 014 5 481 074 3 878 791
Investments 694 253 250 708 199 152
Net current liabilities (447 079) (165 442) (45 100)
(excluding cash)
Short-term investments
- Goldfields of Australia 488 647 401 708 303 583
- Western Areas - - 86 537
Cash 1 213 343 1 228 680 326 883
7 817 178 7 196 728 4 749 846
Capital Employed
Shareholders' equity 4 924 354 4 620 746 3 186 246
Loans 1 337 570 1 235 183 596 747
Preference Shares 5 479 5 479 -
Long-term provisions 475 360 438 703 375 229
Unrealised hedging loss 663 830 508 864 238 005
Deferred tax 410 585 387 753 353 619
7 817 178 7 196 728 4 749 846
Accounting Policies
The financial statements are prepared on the historical cost basis and in
accordance with South African Statements of Generally Accepted Accounting
Practice and International Accounting Standards. The accounting policies
are, in all material respects, consistent with the annual financial
statements for the year ended 30 June 2001.
Issued share capital: 149,1 million ordinary shares of 50 cents each.
(September 2001: 145.1 million, December 2000: 102.8 million)
* Assets and liabilities of offshore operations were revalued at closing
exchange rates resulting in significant movements on the balance sheet
CONDENSED STATEMENT OF
CHANGES IN SHAREHOLDERS' EQUITY
unaudited) At At
31 Dec 31 Dec
2001 2000
R'000 R'000
Balance as at the beginning of the
financial year 4 593 699 2 874 718
Currency translation adjustment
and other (115 815) 44 785
Issue of share capital 157 172 145 199
Net earnings 401 059 172 944
Dividends paid (111 761) (51 400)
Balance as at the end of December 4 924 354 3 186 246
ABRIDGED CASH FLOW
STATEMENT
(unaudited) 6 Months 6 Months
ended ended
31 Dec 31 Dec
2001 2000
R'000 R'000
Cash flow from operations 525 024 65 313
Cash utilised in investing activities (432 038) (201 534)
Cash utilised in financing activities (38 143) (114 401)
Translation adjustment - -
Increase/(decrease) in cash and
equivalents 54 843 (250 622)
Opening cash and equivalents 1 158 500 577 505
Closing cash and equivalents 1 213 343 326 883
NOTICE OF INTERIM DIVIDEND
A dividend No. 74 of 75 cents per ordinary share, being the interim dividend
for the financial year ending 30 June 2002, has been declared payable on 18
February 2002 to those shareholders registered as such in the books of the
company at the close of business on 15 February 2002.
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
18 February 2002.
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 8 February 2002.
Share certificates may not be dematerialised or rematerialised between
Monday 4 February 2002 and Friday 15 February 2002, both days inclusive.
This announcement will be mailed to all registered holders on or about 28
January 2002.
Salient dates:
Last day to trade ordinary shares cum dividend 8 February 2002
Ordinary shares trade ex dividend 11 February 2002
Record date 15 February 2002
Payment date 18 February 2002
By order of the Board
FW Baker Virginia
Company secretary 28 January 2002
This report was approved by the board of directors and is signed on its
behalf by:
Z B Swanepoel F Abbott
Chief executive Financial director 28 January 2002
Business address
Harmony Gold Mining
Company Limited
Randfontein Office Park
C/o Main Reef Road and Ward Avenue
Randfontein, PO Box 2,
Randfontein, 1760
Telephone: +27 (11) 411-2011
Telefax: +27 (11) 692-3879
E-mail: corporate@harmony.co.za
Investor relations contacts
Corne Bobbert
Telephone: +27 (11) 411-2036
Telefax: +27 (11) 411-2169
E-mail: cbobbert@harmony.co.za
Ferdi Dippenaar
Telephone: +27 (11) 411-2011
Telefax: +27 (11) 692-3879
E-mail: fdippenaar@harmony.co.za
Share transfer secretaries
Ultra Registrars (Pty) Ltd
Contact: Polly Pollard
Telephone: +27 (11) 370-5775
Telefax: +27 (11) 370-5780
E-mail: ultra@registrars.co.za
11 Diagonal Street
Johannesburg 2001
(PO Box 4844, Johannesburg, 2000)
United States Depositary
American Depositary Receipts,
The Bank of New York
Contact: Melissa Atheneos
Telephone: +1 (646) 885-3294
Telefax: +1 (646) 885-3043
E-mail: matheneos@bankofny.com
Shareholder Relations Department
101 Barcley Street, New York, NY10286
United States of America
United Kingdom Registrars
Capita IRG Plc
Contact(s): Melvyn Leigh/
Therese Hodgin
Telephone: +44 (208) 639-1001
Telefax: +44 (208) 478-2876
E-mail: mleigh@capita-irg.com/
thodgin@capita-irg.com
Balfour House 390-398
High Road, Ilford
Essex IG1 1NQ, United Kingdom
Directors
A R Fleming*# (Chairman),
Z B Swanepoel (Chief executive),
F Abbott, F Dippenaar,
Dr. A M Edwards*, T S A Grobicki,
M F Pleming*, Lord Renwick of
Clifton KCMG*#,
Dr. G S Sibiya*,
*Non executive directors +British
Trading Symbols
Ordinary Shares
JSE Securities
Exchange : HAR
Nasdaq : HGMCY
London Stock
Exchange : HRM
Euronext Paris : HG
Euronext Brussels: HMY
ISIN : ZAE000015228
Warrants
JSE Securities
Exchange : HARW
Nasdaq : HGMCW
Visit our web site at www.harmony.co.za which includes an updated company
profile. For the 2001 annual report, go to www.har.co.za, and for general
gold and investor information, go to www.harmonyedugold.co.za.
To purchase Harmony gold products, visit www.harmonygold-direct.com.
For a hard copy of the annual report or the quarterly review,
please contact Corne Bobbert on tel +27 11 411-2036
or e-mail cbobbert@harmony.co.za.
