| Wed 13 Aug 2003, 8:51 | | Harmony Review for the quarter and financial year |
|
Harmony Gold Mining Company Limited
JSE: HAR HAR
NYSE: HMY
ISIN No.: ZAE000015228
JSE: HARW
NYSE: HMYWS
ISIN No.: ZAE000031209
HARMONY REVIEW for the quarter and financial year ended 30 June 2003
Key indicators
Highlights for the quarter
Final dividend of 150 SA cents per share
Strong Rand impacts on results
Good operational performance on all operations except Elandsrand
Two year wage agreement with NUM
Merger on track
26% exposure to Avgold, and
Excellent exploration results at Wafi
. and for the financial year
Record production of 3.0 million ounces (12% increase)
Cash operating profit decreases by 8% to R2 374 million, mainly due to
inflationary cost pressures
Earnings per share before impairment of 695 SA cents
Total dividend of 275 SA cents for financial year
Quarterly financial highlights
30 June 2003 31 March 2003
Cash operating profit
- Rand 183 million 478 million
- US$ 24 million 57 million
Earnings
- Rand (478 million) 235 million
- US$ (62 million) 28 million
Earnings before impairment
- Rand 120 million 235 million
- US$ 16 million 28 million
Earnings per share
- SA cents per share (259) 130
- US cents per share (34) 16
Earnings per share before impairment
- SA cents per share 65 130
- US cents per share 8 16
Gold produced
- kg 21 992 22 211
- oz 707 053 714 096
Cash costs
- R/kg 75 433 73 150
- $/oz 303 272
Chief executive"s review
"The proposed merger between ARMgold and Harmony and the subsequent acquisition
of 34,5% of Avmin which was announced earlier in the quarter, is in line with
our strategy of delivering a leveraged, unhedged pure gold play with operating
assets mainly in South Africa."
Safety report
The past quarter saw continued focus on empowering our working teams to
understand and implement continuous risk assessment in the stopes and
development areas on a daily basis. This ensures that awareness levels to all
dangers are sustained, subsequently assisting in building a safety culture.
During the last quarter, six of our employees lost their lives in mining related
accidents. We offer our condolences to the grieving families.
Year on year, there was a 23% improvement in the company"s fatality rate.
- Merriespruit 3 Shaft ended the quarter on 1,3 million fatality-free shifts. It
has been 5 years since the last fatality at this mine.
- Masimong Mine achieved 500 000 fatality free shifts on 5 June 2003.
- Brand 3 achieved 500 000 fatality free shifts on 28 June 2003.
- St Helena and Evander 8 Shaft both achieved a million fatality-free shifts
status after quarter end.
The past quarter in review - adjusting to a stronger Rand
As expected, the company reported lower operational profits of R183 million, a
decrease of 62%, compared to the R478 million reported previously. Kilograms
recovered were 1% lower or 219 kg less at 21 992 kg. Due to the current low R/kg
gold price environment, our focus has been on scaling down tonnages from
marginal surface operations. Should the gold price continue at these levels,
further incremental cutbacks from marginal mining operations are expected. Being
unhedged, the company has always focused on ounces which can be mined at total
costs below the spot price of gold.
The impact of the stronger Rand on the cash generating potential of the company
is evident from the graph above.
A QUARTER ON QUARTER VARIANCE ANALYSIS
Cash operating profit - March 2003 R478 million
Volume increase (tonnes) +2% R83 million
Working costs increase (%) (2%) (R34 million)
Recovery grade reduction (g/t) (3%) (R103 million)
Rand gold price reduction (R/kg) (12%) (R241 million)
Net variance (R295 million)
Cash operating profit - June 2003 R183 million
The main contributing feature of the quarter was undeniably the lower R/kg and
A$/kg gold price received, which explains 82% of the total negative variance. An
12% quarter on quarter decrease in gold price resulted in a R241 million adverse
variance on cash operating profits.
Working costs increased marginally by 2% from R1 625 million to R1 659 million,
mainly due to higher tonnes from underground and provision for annual wage
increases for mine officials. Costs related to the 10% annual increases for
members of the National Union of Mineworkers (NUM) will be reflected in the
September 2003 quarter.
Headline earnings per share before the adjustment for profit on sale of assets
total 65 SA cents, a decrease of 48% compared to the 126 SA cents of the March
2003 quarter. Quarterly earnings were adversely affected by non-cash items, i.e.
impairment charges (R598 million) and foreign exchange losses on offshore cash
holdings (R133 million), which was however offset by a year end re-evaluation of
financial instruments (R220 million) resulting in a net loss of 259 SA cents per
share.
Net earnings per share before impairment for the year total 695 SA cents. After
net impairment of R598 million on assets in Australia, net earnings total 359 SA
cents per share. A final dividend of 150 SA cents per share has been declared,
bringing the total for the year to 275 SA cents. The Board feels that the 275 SA
cent dividend which is 40% of the 695 SA cents before impairment, rewards our
current and future shareholders appropriately, whilst it leaves the company with
a strong balance sheet going into a period which may still prove to be the most
challenging of our recent history.
Our orebodies remain extremely leveraged to a changing gold price:-
JUNE QUARTERS RESULTS AT DIFFERENT GOLD PRICES
Cash
operating
Gold price profit % Gold price % profit
(R/kg) (R"million) variance variance
80 000 100 (5) (45)
84 000 183 Actual results for June 2003 quarter
88 000 276 5 51
94 000 408 12 123
100 000 540 19 195
From an operational perspective, the next quarter will be steady although
further operational improvements, especially at Elandsrand, will be forthcoming.
Negotiations with the various unions on wage increases were concluded at the end
of July 2003. Our focus on absorbing these additional costs through productivity
and efficiency improvements continue in earnest. The parties agreed to a two-
year wage agreement with a 10% increase in the 2003/04 financial year, and an
inflation linked increase (Consumer Price Index + 2% with a guaranteed minimum
of 7%) in the following year. The implementation of continuous operations at
Free Gold, and potentially at the rest of our South African operations, could
assist us in achieving our productivity improvement objectives.
Annual financial review - US Dollar gold price improves
The company achieved an increase of 12% in production, increasing from 2,7
million to a record 3,0 million ounces, over a period in which no significant
acquisitions were made and continued operational improvements were achieved.
Further economic and political uncertainty over the past year has resulted in a
steady rise in the US Dollar price of gold. Our decision to remain unhedged,
even when the gold price was at the US$250/oz level, was the correct one and our
shareholders have, over the past 5 years, experienced the benefits thereof.
These benefits were however somewhat eroded during the last six months by the
strength of the South African Rand and the Australian Dollar against the US
Dollar.
On average the company realised a price of US$ 329/oz for the financial year, a
15% improvement over the US$287/oz reported previously.
A year on year analysis of the performance of the company indicates the
following:-
30 June 30 June Actual %
Year ending 2003 2002 variance variance
Production - kg 93 054 82 971 10 083 12
Production - oz 2 991 734 2 667 572 324 162 12
Revenue - R/kg 96 663 94 080 2 583 3
Revenue - US$/oz 329 287 42 15
Working costs - 71 146 62 848 (8 298) (13)
R/kg
30 June 30 June Actual %
Year ending 2003 2002 variance variance
Working costs - US$/oz 242 192 (50) (26)
Cash operating profit
- R/million 2 374 2 591 (217) (8)
Cash operating profit
- US$/million 260 254 6 2
Earnings per share before 695 1 330 (635) (48)
impairment (SA cents)
Earnings per share after 359 1 094 (735) (67)
impairment (SA cents)
Exchange rate -R/US$ R9,13 R10,20 (R1,07) (10)
Whilst revenues increased by only 3% in R/kg terms, inflationary cost pressures,
lower cut-offs applied, as well as the full incorporation of higher cost
acquisitions in Australia, eroded our margins. The company continued to generate
improved cash operating profits of US$260 million compared to US$254 million for
the previous year. Increased charges related mainly to interest paid, reversal
in the mark to market of listed investments and higher amortisation charges,
resulted in lower earnings before impairment at US$136 million, compared to
US$199 million for the previous reporting period. The company is well positioned
to generate solid cash operating profits and earnings in the forthcoming
financial year, subject to the relative strength of the South African Rand.
When measured over a period of five years, the company continues to deliver
shareholder value:-
June June June June June
2003 2002 2001 2000 1999
Gold 93 054 82 971 66 563 50 572 39 997
produced -
kg
Gold 2 991 734 2 667 572 2 140 043 1 625 925 1 285 931
produced -
oz
Underground 5,33 5,37 4,88 5,08 5,27
recovery
grade g/t
Cash 2 374 2591 673 461 386
operating
profit SA
Rand - R"m
US$ - 260 254 88 73 64
million
Cash 71 146 62 848 57 416 50 121 46 759
operating
cost R/kg
Cash 234 227 224 213 240
operating
cost
R/tonne
Cash 242 192 234 246 240
operating
cost US$/oz
Harmony"s growth story - taking stock one year later
The past financial year has been an unpredictable period in which the company"s
performance was influenced by a number of factors. Negative factors include the
strengthening of the South African Rand as well as the effect of, and the
uncertainty surrounding, the Mining Charter and the unresolved Royalty Bill.
On the bright side, the company is well poised for further expansion through the
proposed merger with ARMgold, the purchase of a 34,5% stake in Avmin and the
acquisition of Abelle Limited in Australia. These three transactions are
expected to have a tangible and positive effect on the future operational
performance of the company.
During the last few quarters we announced the organic growth projects at
Randfontein (Doornkop South Reef Project) and Free Gold (Tshepong North Decline
Project and the development of the Phakisa Shaft). This resulted in investors
questioning us as to whether Harmony"s growth strategy, which has built the
company to the fifth largest in the world today, has changed? Have we stopped
acquiring turnaround assets and are we now focusing only on building projects?
The answer is that our strategy has never been an "either/or" approach. We
believe that there will be further turnaround opportunities to acquire in South
Africa in the near future, which will deliver similar value upliftment as to
what we have experienced in the past with such acquisitions. This is our core
competency!
The progress of the company, from survival in 1995, the subsequent growth
through acquisitions and the focus on long life quality, low cost production
ounces in 2002/03 can be summarised as follows:-
Long life Project
Quality quality growth Potential
Marginal ounces ounces ounces ounces projects
Harmony Evander Masimong Tshepong Morobe/
North Wafi
Joel Kalgold Elandskraal Phakisa Poplar
Rest of Free Randfontein Tshepong Doornkop Rolspruit
Gold
St Helena Highland Gold Bambanani Target (26%) Kalplats
Australian Bendigo
Operations
Orkney Shafs 9,8% of Aurion
(onsold)
Included with the acquisition of Randfontein in January 2000, Elandskraal in
April 2001 and Free Gold in April 2002, came a number of highly prospective
project areas at zero cost. On acquisition of such turnaround assets, our
initial focus is to achieve an operational turnaround as quickly as possible.
During the low gold price scenario which applied at the time, the project areas,
although initially financially evaluated, provided insuficient returns for the
investment required.
After the restructuring of the acquired operations for profitability and under
the higher current gold price scenario, the projects were revisited. When
compared to other potential acquisitions or growth projects in the company, the
abovementioned projects promise greater returns to all stakeholders and in each
case an investment decision was taken to proceed.
The long term future of Harmony in South Africa has been secured through the
development of these long life, quality production ounces. The underground
recovery grade is planned to incrementally increase from the 5,33 g/t for the
2002/03 financial year to in excess of 6,0 g/t by 2009. Whilst there will be
more acquisition opportunities in South Africa, especially if the Rand remains
strong, we will have served the interests of our shareholders well by securing
the long term future of the company.
The proposed merger between ARMgold and Harmony and the subsequent acquisition
of 34,5% of Avmin, which was announced earlier in the quarter, is in line with
our strategy of delivering a leveraged, unhedged pure gold play with operating
assets mainly in South Africa. Although the strategic positioning of Harmony to
consolidate and grow its production base in Australasia and Russia, remains
intact, we will continue to regularly re-evaluate these investments.
Merging ARMgold and Harmony to create South Africa"s largest gold producer
On 2 May 2003, the two companies announced details on a proposal to create a
world class, unhedged gold producer, with the bulk of its production from South
Africa.
The merger creates the fifth largest gold producer in the world, producing
approximately 4,0 million ounces per annum. The transaction will be effected by
the issue of two Harmony shares for every three ARMgold shares held after
ARMgold has paid a special dividend of R5 per share. It is anticipated that
approximately 63,67 million Harmony shares will be issued, increasing the
companies" outstanding shares to 257,8 million. At a price of R90,00 per share,
the new company will have a market capitalisation of R23,2 billion (US$3,1
billion at R7,50 to the US Dollar).
Post merger, the aggregate number of Harmony shares issued to ARMgold
shareholders will represent 25% of the enlarged issued share capital of the
merged company. Our largest shareholder, holding approximately 14% of the new
company will be African Rainbow Minerals and Exploration Investments (Pty.) Ltd
(ARMI), represented by Patrice Motsepe, who will become Harmony"s new non-
executive chairman.
We have made good progress in concluding the proposed merger, i.e. approval for
the scheme has been received from the Competition Commission and Tribunal on 2
July and 16 July respectively. The scheme will be presented to the shareholders
of both companies during the next few weeks for approval and it is anticipated
that the merger will be concluded in the latter half of September 2003.
We are excited with the assets which will be incorporated into the new Harmony.
This transaction has as its focus not only BEE compliance or short-term
operational synergies, but is rather a long-term value proposition to our
shareholders. Operational synergies, and more specifically at the Free State
operations will add some R10,0 million per month to the bottom line. In addition
the growth projects at Free Gold, i.e. Tshepong North Decline and Phakisa Shaft
will enhance the future cash generating potential of these orebodies.
QUARTERLY OPERATIONAL REVIEW
A quarter on quarter cash operating profit analysis of the various operations is
as follows:
TOTAL CASH OPERATING PROFIT (R"MILLION)
June March Variance
Operations 2003 2003 (R" million)
Free State 4 53 (49)
Evander 39 45 (6)
Randfontein 40 105 (65)
Elandskraal (33) 44 (77)
Kalgold 11 21 (10)
Australian Operations 23 69 (46)
Sub-total 84 337 (253)
Free Gold (50%) 99 141 (42)
Total 183 478 (295)
CAPITAL EXPENDITURE
Actual Forecast
Operational capex June 2003 September 2003
Free State 29 18
Evander 21 27
Randfontein 2 18
Elandskraal 12 10
Kalgold 8 1
Free Gold (50%) 11 10
Australian Operations 64 67
Sub total 147 151
Actual Forecast
Project capex June 2003 September 2003
Doornkop South Reef 13 34
Elandsrand Shaft Deepening 22 29
Tshepong Decline (50%) 9 15
Phakisa Shaft (50%) - 14
Nyala Shaft (50%) 6 7
Sub total 50 135
Actual Forecast
Total capex June 2003 September 2003
Free State 29 18
Evander 21 27
Randfontein 15 52
Elandskraal 34 39
Kalgold 8 1
Free Gold (50%) 26 46
Australian Operations 64 67
Total capex 197 250
Capex after merger 296
Notice of final dividend
A dividend No. 77 of 150 cents per ordinary share, being the final dividend for
the financial year ended 30 June 2003 has been declared payable on 8 September
2003 to those shareholders registered as such in the books of the company at the
close of business on 5 September 2003.
The dividend is declared in the currency of the Republic of South Africa.
Dividend cheques will be posted and electronic funds transferred on 8 September
2003.
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 29
August 2003.
This announcement will be mailed to all shareholders recorded in the register on
15 August 2003.
Last day to trade ordinary shares
cum dividend 29 August 2003
Ordinary shares trade ex
dividend 1 September 2003
Record date 5 September 2003
Payment date 8 September 2003
Share certificates may not be dematerialised or rematerialised between Monday,
1 September 2003 and Friday 5 September 2003, both days inclusive.
By order of the Board.
M P van der Walt
Company Secretary
Virginia
1 August 2003
Operating and financial results (Rand/metric)
Underground production Surface production
Free Rand-
State Evander fontein
Ore milled Jun-03 1,098 471 649
- t"000 Mar-03 1,025 471 690
Gold produced Jun-03 4,570 2,943 3,024
- kg Mar-03 4,306 2,589 3,229
Yield Jun-03 4.16 6.25 4.66
- g/tonne Mar-03 4.20 5.50 4.68
Cash operating Jun-03 82,587 69,873 70,037
costs - R/kg Mar-03 82,117 76,878 65,112
Cash operating Jun-03 344 437 326
costs - R/tonne Mar-03 345 423 305
Working revenue Jun-03 380,584 243,341 249,194
(R"000) Mar-03 404,873 242,726 302,448
Cash operating Jun-03 377,424 205,637 211,792
costs (R"000) Mar-03 353,597 199,036 210,246
Cash operating Jun-03 3,160 37,704 37,402
profit (R"000) Mar-03 51,276 43,690 92,202
Free
Elands- Gold Sub Free
kraal (50%) Total State
Ore milled Jun-03 480 611 3,309 215
- t"000 Mar-03 457 581 3,224 290
Gold produced Jun-03 2,221 4,092 16,850 123
- kg Mar-03 2,707 4,052 16,883 165
Yield Jun-03 4.63 6.70 5.09 0.57
- g/tonne Mar-03 5.92 6.97 5.24 0.57
Cash operating Jun-03 95,752 64,343 75,419 76,959
costs - R/kg Mar-03 79,152 62,670 72,918 83,164
Cash operating Jun-03 443 431 384 44
costs - R/tonne Mar-03 469 437 382 47
Working revenue Jun-03 182,144 353,883 1,409,146 10,254
(R"000) Mar-03 253,332 381,314 1,584,693 15,485
Cash operating Jun-03 212,665 263,290 1,270,808 9,466
costs (R"000) Mar-03 214,264 253,940 1,231,083 13,722
Cash operating Jun-03 (30,521) 90,593 138,338 788
profit (R"000) Mar-03 39,068 127,374 353,610 1,763
Free
Rand- Elands- Gold Sub
Evander fontein kraal (50%) Total
Ore milled Jun-03 54 535 299 594 1,697
- t"000 Mar-03 52 514 337 674 1,867
Gold produced Jun-03 35 145 98 381 782
- kg Mar-03 34 340 161 420 1,120
Yield Jun-03 0.65 0.27 0.33 0.64 0.46
- g/tonne Mar-03 0.65 0.66 0.48 0.62 0.60
Cash operating Jun-03 59,771 65,679 107,224 62,094 70,649
costs - R/kg Mar-03 46,265 55,676 64,404 61,338 62,818
Cash operating Jun-03 39 18 35 40 33
costs - R/tonne Mar-03 30 37 31 38 38
Working revenue Jun-03 2,905 12,118 8,409 33,148 66,834
(R"000) Mar-03 2,713 32,031 15,364 39,481 105,074
Cash operating Jun-03 2,092 9,524 10,508 23,658 55,248
costs (R"000) Mar-03 1,573 18,930 10,369 25,762 70,356
Cash operating Jun-03 813 2,595 (2,099) 9,490 11,587
profit (R"000) Mar-03 1,140 13,101 4,995 13,719 34,718
Kalgold South
Open- Africa Australia Harmony
cast Total Total Total
Ore milled Jun-03 315 5,321 1,907 7,228
- t"000 Mar-03 250 5,341 1,729 7,070
Gold produced Jun-03 554 18,186 3,806 21,992
- kg Mar-03 568 18,571 3,640 22,211
Yield Jun-03 1.76 3.42 2.00 3.04
- g/tonne Mar-03 2.27 3.48 2.11 3.14
Cash operating Jun-03 66,711 74,949 77,747 75,433
costs - R/kg Mar-03 56,722 71,814 79,967 73,150
Cash operating Jun-03 117 256 155 230
costs - R/tonne Mar-03 129 250 168 230
Working revenue Jun-03 47,685 1,523,665 318,605 1,842,270
(R"000) Mar-03 53,098 1,742,865 360,223 2,103,088
Cash operating Jun-03 36,958 1,363,014 295,906 1,658,920
costs (R"000) Mar-03 32,218 1,333,657 291,079 1,624,736
Cash operating Jun-03 10,727 160,652 22,699 183,351
profit (R"000) Mar-03 20,880 409,208 69,144 478,352
Total Operations - annual financial results (Rand/metric)
Year Year
ended ended
30 June 30 June
2003 2002
Ore milled - t"000 28,238 22,934
Gold produced - kg 93,054 82,971
Gold price received - R/kg 96,663 94,080
Cash operating costs - R/kg 71,146 62,848
R million R million
(reviewed) (audited)
Gold sales 8,994 7,806
Cash operating costs 6,620 5,215
Cash operating profit 2,374 2,591
Income from associates 57 -
Amortisation (542) (308)
Mark to market of financial instruments 381 46
Rehabilitation cost provision (5) (20)
Employment termination and restructuring (45) (83)
costs
Net impairment of assets (598) (362)
CAWMS provision (5) (2)
Other income - net 204 165
Foreign exchange (loss)/profit (131) 99
Interest paid (279) (230)
Corporate, marketing and new business (148) (167)
expenditure
Exploration expenditure (82) (61)
Mark to market of listed investments (55) 595
Profit before taxation 1,126 2,263
South African normal taxation
- Current tax (294) (266)
- Deferred tax (193) (317)
Net earnings 639 1,680
Earnings per share - cents *
- Basic earnings 359 1,094
- Headline earnings 661 1,316
- Fully diluted earnings ** 359 1,017
Dividends per share - (cents)
- Declared 125 75
- Proposed final 150 425
* Calculated on weighted number of shares in issue:
June 2003: 178,0 million (June 2002: 153,5 million)
* Calculated on weighted average number of diluted shares in issue:
June 2003: 178,3 million (June 2002: 165.2 million)
Reconciliation of earnings
Net earnings 639 1 680
Adjustments:
- Profit on sale of assets (61) (21)
- Net impairment of assets 598 362
Headline earnings 1,176 2,021
Total Operations - quarterly financial results (Rand/metric) (unaudited)
Quarter Quarter Quarter
ended ended ended
30 June 31 March 30 June
2003 2003 2002
Ore milled - t"000 7,228 7,070 6,905
Gold produced - kg 21,992 22,211 24,390
Gold price received - R/kg 83,770 94,687 103,349
Cash operating costs - R/kg 75,433 73,150 59,574
R million R million R million
Gold sales 1,842 2,103 2,521
Cash operating costs 1,659 1,625 1,453
Cash operating profit 183 478 1,068
Income from associates 33 24 -
Amortisation (140) (132) (129)
Impairment of mining assets (598) - (355)
Mark to market of financial 220 133 192
instruments
Rehabilitation cost 30 (13) (18)
reversal/(provision)
Employment termination costs (11) (8) (20)
Other income - net 61 40 53
Interest paid (86) (63) (71)
Corporate, marketing and new (38) (32) (25)
business expenditure
Exploration expenditure (24) (23) (14)
Foreign exchange losses (133) (49) -
Mark to Market of listed - (17) 200
investments
Profit before taxation (503) 338 881
South African normal taxation
- Current tax (28) (30) (22)
- Deferred tax 53 (73) (195)
Net earnings (478) 235 664
Earnings per share - cents *
- Basic earnings (259) 130 402
- Basic earnings before 65 130 617
impairment
- Headline earnings 44 126 614
- Fully diluted earnings ** (259) 129 377
Dividends per share - (cents)
- Proposed final 150 - 425
* Calculated on weighted number of shares in issue at quarter end June 2003:
184.3 million (March 2003: 180.6 million)/(June 2002: 165.1 million)
** Calculated on weighted average number of diluted shares in issue at quarter
end June 2003: 184.3 million (March 2003: 182.5 million)/(June 2002: 170.1
million)
Reconciliation of earnings
Net earnings per (478) 235 664
Adjustments:
- Profit on sale assets (38) (7) (5)
- Impairment of mining assets 598 - 355
Headline earnings 82 228 1,014
Abridged balance sheet (Rand)
At At At
30 June 31 March 30 June
2003 2003 2002
R million R million R million
(reviewed) (unaudited) (audited)
Employment of capital
Mining assets after 9,969 8,986 9,433
amortisation
Investments 868 869 1,778
Investments in associates 1,398 506 291
Net current liabilities (309) (514) (748)
(excluding cash)
Cash 1,687 3,128 1,441
Total assets 13,613 12,975 12,195
Capital employed
Shareholders" equity 8,628 8,932 7,963
Loans* 2,415 2,015 1,771
Long-term provisions 632 686 720
Minority interest 120 - -
Unrealised hedging loss 284 491 971
Deferred tax** 1,534 851 770
Total equity and liabilities 13,613 12,975 12,195
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
quarterly statements are prepared in accordance with IFRS 34, Interim Financial
Reporting. The accounting policies are consistent with those applied in the
previous financial year.
Issued share capital: 184.9 million ordinary shares of 50 cents each. (March
2003: 184.2 million shares) (June 2002: 169.2 million)
* The increase in loans was due to the acquisition of Avmin shares.
** The increase in deferred tax liability was due to the accounting treatment
of the acquisition of Abelle and the finalisation of the Free Gold purchase
price.
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. This unqualified review opinion is
available on request from the Company Secretary.
Condensed statement of changes in shareholders" equity
At At At At
30 June 30 June 30 June 30 June
2003 2002 2003 2002
R million R million US$ million US$ million
(reviewed) (audited) (reviewed) (audited)
Balance as at
the beginning
of the
financial year 7,963 4,594 1,060 442
Currency (331) (35) (44) (4)
translation
adjustment and
other
Issue of share 1,328 1,748 177 168
capital
Net earnings 639 1,775 85 171
Dividends paid (971) (119) (129) (11)
Balance as at 8,628 7,963 1,149 766
the end of June
Abridged cashflow statement
Year Year Year Year
ended ended ended ended
30 June 30 June 30 June 30 June
2002 2003 2003 2002
US$ US$ million R million R million
million
(audited) (reviewed) (reviewed) (audited)
221 136 Cash flow from 1 243 2256
operating activites
(360) (90) Cash utilised in (826) (3668)
investing
activities
166 (19) Cash utilised in (171) 1694
financing
activities
(32) 59 Translation - -
adjustment
(5) 86 (Decrease)/increase 246 282
in cash and
equivalents
144 139 Opening cash and 1441 1159
equivalents
139 225 Closing cash and 1687 1441
equivalents
Operating activities translated at average rates of: June 2003: US$1 = R9.13
(June 2002: US$1 = R10.20)
Closing balance translated at closing rates of : June 2003: US$1 = R7.51
(June 2002: US$1 = R10.39)
Investor relations
Business address
Harmony Gold Mining Company Limited
Suite No. 1
Private Bag X1
Melrose Arch, 2076
South Africa
Telephone: +27 (11) 684 0140
Fax: +27 (11) 684 0188
Investor relations contacts
Corn Bobbert
Telephone: +27 (11) 684 0146
Fax: +27 (11) 684 0188
E-mail: cbobbert@harmony.co.za
Ferdi Dippenaar
Telephone: +27 (11) 684 0147
Fax: +27 (11) 684 0188
E-mail: fdippenaar@harmony.co.za
www.harmony.co.za
Share Transfer Secretaries
Ultra Registrars (Pty) Ltd
11 Diagonal Street
Johannesburg 2001
(PO Box 4844, Johannesburg, 2000)
Telephone: +27 (11) 832 2652
Fax: +27 (11) 834 4398
ADR Depositary
The Bank of New York
Shareholder Relations Department
101 Barclay Street 22nd Floor, New York, NY 10286
United States of America
Telephone: +1888-BNY ADRS
Fax: +1 (212) 815 3050
United Kingdom Registrars
Capita IRG Plc
Balfour House 390-398
High Road, Ilford
Essex IG1 1NQ, United Kingdom
Telephone: +44 (208) 639 1001
Fax: +44 (208) 478 2876
Directors
A R Fleming*+(Chairman), ZBSwanepoel (Chief Executive), FAbbott, F Dippenaar,
TSA Grobicki, MVSisulu*, MFPleming*, Lord Renwick of Clifton KCMG*+, J G
Smithies*, DS Lushaba*, VNFakude*
*Non executive directors +British
Company secretary
Marian van der Walt
Telephone: +27 (11) 411 2037
Telefax: +27 (11) 692 3879
E-mail: mvanderwalt@harmony.co.za
Trading Symbols
Ordinary Shares
JSE Securities Exchange: HAR
New York Stock Exchange: HMY
London Stock Exchange: HRM
Euronext Paris: HG
Euronext Brussels: HMY
Berlin Stock Exchange: HAM1
ISIN
ZAE000015228
Registration number
1950/038232/06
Date: 13/08/2003 08:04:32 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
