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Merged Harmony To Be Worlds Largest Gold Resource Company
Release Date: 05/08/2003 12:43:30 Code(s): HAR HARW
MERGED HARMONY TO BE WORLD"S LARGEST GOLD RESOURCE COMPANY
Harmony Gold Mining Company Limited
JSE: HAR HAR
NYSE: HMY
ISIN No.: ZAE000015228
JSE: HARW
NYSE: HMYWS
ISIN No.: ZAE000031209
MERGED HARMONY TO BE WORLD"S LARGEST GOLD RESOURCE COMPANY
Johannesburg, 5 August 2003 - Harmony Gold Mining Company Limited
(NYSE: HMY JSE: HAR) today announced details on its annual re-statement of its
ore reserves.
"Excluding the ore reserves from ARMgold, Harmony will have grown its reserve
base by 1 million ounces to 50 million ounces, year on year. This is over and
above the 3 million ounces of gold mined during our previous financial year, and
the reduction of 800 000 ounces in our Australian reserves," commented Bernard
Swanepoel, Harmony Chief Executive.
Using a gold price of R93 000 per kilogram, the merged company will have grown
its reserve base by 26% from 49 million ounces in June 2002, to 62 million
ounces at a 3% higher underground grade of 6,24g/t. Harmony will also own the
world"s largest gold resource base, comprising some 410 million ounces.
The company has, in the light of the current strength of the Australian Dollar
and the closure of the inherited hedge positions at these operations, restated
its Australian reserve base. Although Harmony"s resource base in Australia
remains at 11 million ounces, reserves have decreased from 2,3 million ounces in
2002 to 1,5 million ounces. This will result in the company taking a nett non-
cash impairment charge of R598 million during its current financial year.
"Due to limited exploration expenditure in the industry, reserve replacement has
become crucial to the future of gold mining companies globally. With its larger,
higher quality ore reserve base, the merged Harmony, as an unhedged producer, is
ideally positioned to deal with the volatility of both the US Dollar gold price
and the South African Rand," concluded Bernard.
ORE RESERVES 30 JUNE 30 JUNE %
AS AT:- 2003 2002 VARIANCE
Gold price per kg R93 000 R95 000 (2)
Average exchange
rate (SA Rand per R8,50 R10,00 (15)
US$)
Total resources
including 410,2 295,6 39
project ounces
(Moz)
Reserve base (Moz) 61,9 49,1 26
NOTE:
Ore Reserve calculations include 100% of ARMgold reserves
Excludes Target"s ounces
RESERVES 2003 2002
Harmony 50,1m 49,1m
ARMgold 11,8m -
TOTAL 61,9m 49,1m
RESOURCES 2003 2002
Harmony 319,9m 295,6m
ARMgold 90,3m -
TOTAL 410,2m 295,6m
Issued by Harmony Gold Mining Company Limited
For more details contact:
Bernard Swanepoel
on +27(0)83 303 9922
or
Ferdi Dippenaar
on +27(0)82 807 3684
Investor Relations Officer
Corne Bobbert
Tel +27 11 684 0146
Fax +27 11 684 0188
Mobile +27(0)83 380 6614
cbobbert@harmony.co.za
www.harmony.co.za
Date: 05/08/2003 12:43:36 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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