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 2005

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 2005

SHAREHOLDER INFORMATION

Issued share capital at 30 June 2005

393 341 194

MARKET CAPITALISATION

At 30 June 2005 – R49.70

R19 549 million

At 30 June 2005 – US$7.80

US$3 068 million

US$ per production ounce per annum – 3.0 million oz

US$1 022

US$ per reserve ounce – 54.1 million oz

US$57

US$ per resource ounce – 521.2 million oz

US$6

SHARE PRICE

12 month high (July 2004 – June 2005)

R92.50

12 month low (July 2004 – June 2005)

R36.50

12 month high (July 2004 – June 2005)

US$14.13

12 month low (july 2004 – June 2005)

US$5.96

FREE FLOAT

100%

ADR RATIO

1:1

JSE SECURITIES EXCHANGE SOUTH AFRICA

HAR

Range for the quarter

R36.40 – R58.80

Average volume for the quarter

793 715 shares per day

NEW YORK STOCK EXCHANGE, INC

HMY

Range for the quarter

US$5.96 – US$8.80

Average volume for the quarter

1 639 147 shares per day

REVIEW FOR THE YEAR AND THE QUARTER ENDED 30 JUNE 2005

QUARTERLY FINANCIAL HIGHLIGHTS

30 June 2005

31 March 2005

Cash operating profit
– Rand

45 million

(55) million

– US$

7 million

(9) million

Cash earnings
– SA cents per share

(14)

– US cents per share

(2)

Basic loss
– SA cents per share

(291)

(432)

– US cents per share

(45)

(72)

Headline loss
– SA cents per share

(102)

(107)

– US cents per share

(16)

(18)

Fully diluted loss
– SA cents per share

(291)

(432)

– US cents per share

(45)

(72)

Gold produced
– kg

19 886

21 126

– oz

639 346

679 251

Cash operating costs
– R/kg

87 461

85 863

– $/oz

424

445

• Reversal the R55 million cash operating loss in March

to a cash operating profit of R45 million in the June
Quarter.

• Cash operating costs increase to R87 461/kg versus

R85 863/kg in March.

• Balance sheet restructuring completed.

QUARTERLY HIGHLIGHTS

• Agreement reached with Unions on the Free State

restructuring.

• Hidden Valley moves toward construction scheduled

for December 2005 following a reserves and
resource upgrade and final approval of all land holder
agreements.

• The benefits of CONOPS and Harmony’s cost

initiatives begin to show.

TABLE OF CONTENTS

Chief Executive’s Review

Safety report

Annual review

The past quarter in review

Quarterly operational review

Quality ounces

Leveraged ounces

Growth projects

Australasian operations

Papua New Guinea

Exploration

Operating and financial results (Rand/metric)

Total operations – financial results (Rand/metric)

Abridged balance sheet (Rand)

Operating and financial results (US$/imperial)

Total operations – financial results (US$/imperial)

Abridged balance sheet (US$)

Condensed statement of changes in equity for the year ended 30 June 2005

Summarised cash flow statement for the year ended 30 June 2005

Summarised cash flow statement for the three months ended 30 June 2005

Reconciliation between cash operating profit/(loss) and cash (utilised)/generated by operations –
period ended 30 June 2005

Notes to the consolidated financial statements for the quarter ended 30 June 2005

Developmental results

Contact details

CHIEF EXECUTIVE’S REVIEW – JUNE 2005

“We are through the largest and most difficult part of the group restructuring, both operationally and
financially. For the next while we intend focusing our energies on achieving the cost and production
targets we have set and making sure that all of the new mines we are building achieve their nameplate
production and cost parameters. Harmony is currently in a very intense part of its organic growth profile
and we look forward to reaping the long-term benefits of this process, which we can already almost touch
and feel.”

SAFETY REPORT

Safety achievements during this quarter:

•

Joel achieved 1 000 000 fatality free shifts on 23 June 2005.

•

Bambanani Lower Section achieved 1 000 000 fatality free shifts on 24 June 2005.

•

Cooke 1 achieved 500 000 fatality free shifts on 11 June 2005.

The key safety indicators namely Lost Time Injury Frequency Rate (LTIFR) and Shift Loss Injury Frequency Rate
(SLIFR) continued to improve. Our progressive LTIFR for the year ended June 2005 was 16,53 compared to 16,73 at
March 2005, a 1,2% improvement. The progressive SLIFR for the year ended 30 June 2005 are 395 compared to
405 reported in March 2005, a 2,4% improvement. The progressive Fatality Injury Frequency Rate (FIFR) declined
by 24,1% to 0,22 from 0,29 in the 2004 financial year, which is Harmony’s best performance to date.

Fatality injury rate (per million hours worked)

Annual Review – Production base restructured for profitability and growth

Operationally our focus in the past year has been three-fold:

• we have focused on restructuring our South African Operations for profitability in a low Rand gold price

environment;

• we have continued to spend on the development of our new projects that will see us build three new mines in

South Africa, one in Papua New Guinea (PNG) and three significant brownfields expansion projects; and

• we have restructured the company’s balance sheet through the sale of some of our non-strategic listed

investments resulting in lower financial leverage and allowing us to fund our expansions internally.

We are doing the final project optimisation on the Hidden Valley project in PNG with a view to commencing with the
project towards the end of 2005. The combination of all Harmony’s projects will result in a significant upgrade to our
production portfolio adding around 1,5 million ounces per annum at an operating cost of less than US$ 250/oz
(at R7.00/US$). The restructuring of the South African operations has been a lengthy and costly process but is now
by and large complete and, we anticipate, will enable us to produce an annualised 2,95 million ounces from our
existing portfolio at a cost of R75 000/kg by September 2005.

In 2005 we produced 2,97 million ounces (decrease of 11%) compared to 3,3 million ounces in the previous year.
The decrease in production is the result of the restructuring of the South African operations to deal with the low Rand
gold price. This has resulted in the downscaling and in some cases mothballing of some of our leveraged
operations.

This was achieved against a backdrop that saw South African gold production fall (in calendar 2004) by 9% to
343 tonnes, the lowest level seen since 1931. The fall in production is ascribed to the maturity of the industry but more
importantly to the fall in the Rand gold price and the continued increase in costs, especially administered costs.

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

Year-on-year variance

Year ended

Variance

June 2005

June 2004

Production

– kg

92 230

103 127

(11)

– oz

2 965 250

3 315 595

(11)

Revenue

– R/kg

84 799

85 219

(0,5)

– US$/oz

427

385

Working cost

– R/kg

81 839

79 599

– US$/oz

412

360

U/g working costs

– R/tonne

474

413

Cash operating profit

– ( R’m)

273

580

(53)

Cash earnings per share – cents

229

(67)

Loss per share

– cents

(955)

(206)

364

Over the period the average Rand gold price received decreased by 0,5% to R84 799/kg compared to R85 219/kg
in FY2004. In addition, this was in a cost environment where our input costs increased by over 10,0%. As a result of
the lower Rand gold price and lower production, group revenues fell by 11,0% to R7,82 billion (from 8,79 billion in
FY04). Operating costs fell by 8,1% to R7,55 billion and operating unit costs increased by only 2,8% to R81 839/kg,
which compares with CPIX of 3,9%.

FY2005 was also a year in which we experienced strike activity related to the restructuring and strong Rand
environment. In January 2005, The National Union of Mineworkers (NUM) withdrew support of Sunday work
permission at our Free State operations, key to our CONOPS work practise, which resulted in the loss of CONOPS
at our Free State operations despite being fully staffed for CONOPS. The restructuring of the group’s Free State
operations was further hindered by a labour court interdict on 6 May 2005, which prevented Harmony from
implementing the process. As a result, a “new” restructuring process was initiated on 19 May 2005 with Section 189,
60-day notices being (re-)served on the affected shafts and personnel. Union agreement was reached on 19 July
2005 and is in the process of being implemented. Total expenditure on restructuring during FY05 was R638 million,
which includes severance payments, working losses at the restructured operations and other incidentals associated
with the restructuring.

As a result of the tough operating conditions, the company’s ongoing commitment to expenditure on its long-term
growth projects and the need to conserve cash, no dividends were declared in FY05.

Financial year ended

Earnings per share (SA cents)

30 June 2005

30 June 2004

Cash earnings

229

Basic loss

(955)

(206)

Headline loss

(408)

(308)

Fully diluted loss

(955)

(306)

Adjusted headline loss*

(411)

(225)

* Excludes all unrealised gains/(losses) on financial instruments as well as the tax implications.

Focus on our growth projects remains

Despite the harsh financial and operating conditions encountered in the past year the company has remained
focused in its resolve to complete and implement its growth strategy. Accordingly expenditure on all of the local and
international growth projects continued at pace. In the past year R510 million was spent on project capital, a further
R317 million on operational capital and projects and R73 million on exploration. Good progress has continued to be
made at the Phakisa, Elandsrand New Mine and Doornkop South Reef growth projects locally, and during the year,
Harmony received board approval and final licensing for the development of the Hidden Valley Project in PNG. This
project is scheduled to go into construction in December 2005. Furthermore we also made good progress at our
Masimong, Tshepong and Evander expansion/replacement projects.

Harmony remains the only local gold mining company that continues to develop three new mines in the country and
has another three major expansion or replacement projects in progress.

Completion of the Gold Fields bid

On 20 May 2005 our Gold Fields bid was brought to a close through a High Court Ruling that deemed the second
part of the two-stage offer invalid effectively closing the bid on 18 December 2004. This coincided with the date of
the expiration of the Norilsk irrevocable and the expiry of the second stage of the offer. As a result, Harmony did
not acquire any additional Gold Fields shares and its holding in Gold Fields remained at 11,5% (56,6 million shares).

The costs incurred on the investment Harmony made in Gold Fields was divided into three components:

– Costs relating to the acquisition of the 11,5% initial investment in Gold Fields incurred to acquire the investment;

– Costs relating to the acquisition of the 11,5% initial investment in Gold Fields incurred to issue the shares to pay

for the investment;

– Costs incurred subsequent to the acquisition of the 11,5% investment in Gold Fields.

The costs amounting to R86 million incurred to acquire the initial investment was accounted for as part of the
investment and therefore included in the carrying value of the investment on the balance sheet.

The costs of R80 million relating to the issue of the shares to pay for the investment in Gold Fields was accounted
for as a cost for issuing equity.

The costs of R18 million incurred subsequent to the initial investment was included in the income statement, as these
costs were not incurred as part of the acquisition of an asset.

Subsequently Harmony sold 30 million shares (6,5%) of its Gold Fields holding to raise US$315 million. The
proceeds have been used to settle most of Harmony’s short-term debt, buy-back 23,5% of its HAR1 corporate bond
(subsequent to 30 June 2005) and provide funding for the development of the Hidden Valley Mine. Harmony retains
5,4% of Gold Fields (26,6 million shares) and will appropriately deploy the stake in the best interests of
shareholders in the short to medium term.

Cost of the Gold Fields Bid

Quarter ended

September 2004

46,5

December 2004

39,3

March 2005

64,7

June 2005

33,1

Total

183,6

Cost allocation

Investment banking fees

26,7

Legal fees

51,9

Creation and share issue expenses

76,6

Printing and publication

17,9

CPR report*

3,5

Other

7,0

Total

183,6

*Included in creation and share issue expenses

Ore Reserve Update

Despite depleting 3,1 million ounces (based on ROM/head grades) in the past financial year and implementing a
wide-ranging restructuring of the local operations the group’s reserves only declined by 13% to 54,1 million
ounces. The gold price used to state our reserves is unchanged at R92 000/kg and A$540/oz and continues to be
our expectation of the sustainable gold price in real terms. A big source of negative variance for the reserves in
FY05 was the loss of 1,3 million ounces brought about by the downscaling of the local operations, which resulted in
several of our leveraged shafts being put on care and maintenance. The other changes in the reserves relate to
depletion (decrease of 3,1 million ounces at head grade), a restatement published in January 2005 (decrease of
4,8 million ounces) and the addition of 1,1 million ounces of new reserves brought about by the conversion of
resources and the discovery of new ounces.

A year on year reconciliation of our ore reserves follows:

Gold tonnes

Gold Moz

Balance at 30 June 2004

1 936

62,2

Re-statements

(149)

(4,8)*

Mined during FY05

(96)

(3,1)**

Less: Impact of restructuring shafts

(40)

(1,3)***

Added through exploration

1,1

Balance at 30 June 2005

1 685

54,1

* Exclusive of depletion, inclusive of shaft closures between July 2004 and January 2005.
** Ounces based on ROM grades.
*** Post-January 2005 restructuring.

Target Reserves and Resources increase with new information

Target just gets better and better as our understanding of the ore body increases. The updated and revised
resource calculations show an increase of 11%. Also despite the depletion of 210 000 ounces of FY05, reserves have
declined by only 77 000 ounces. The changes have been brought about by additional mining information, intensive
re-modelling of the orebody taking into account new drill hole, structural geological and development information.
With the lowered Target cost structure this makes more of the orebody economic to mine for longer!

Target Resources (’000 oz)

FY 2005

FY 2004

% variance

Measured

2 234

3 019

(26)

Indicated

9 180

7 112

Inferred

3 315

3 083

Total

14 729

13 214

Target Reserves (’000 oz)

Proven

1 584

1 620

(2)

Probable

3 198

3 239

(1)

Total

4 782

4 859

(2)

Target North – Exciting Times

Work on the Target North and Sun South properties has been stepped up. This involves a full re-assessment of all
drill hole and geophysical information with the view to identifying new drill sites as part of the drill programme.
Preliminary work has resulted in a re-interpretation of the stratigraphy to the north of the Target Mine, which shows
evidence for the existance of the multiple stacked fan-type Elsburg Reefs mined at Target and previously thought
to have been eroded in this area.

Finalising the Free State Restructuring – Union agreement reached on 19 July 2005

The past financial year has seen an intensive phase of restructuring to adjust to the low Rand gold price
environment. The Free State restructuring has taken the longest and received a set back of more than two months
on 6 May 2005 following a Labour Court ruling that interdicted the restructuring planned to be implemented in mid-
April and ordered the re-instatement of all people that had already left the company as part of the retrenchment.

This resulted in the re-issuance of Section 189 restructuring notification to all employees and unions on 19 May
2005. To this end agreement was reached with the company’s largest labour unions, the National Union of
Mineworkers (“NUM”), on 19 July 2005 regarding the proposed job loss avoidance measures as part of the
restructuring of Harmony’s Free State operations.

The agreement makes provision for the following:

(i)

The opening of voluntary retrenchments for a stipulated period.

(ii)

The replacement of non-specialised contract workers with Harmony employees.

(iii) The transfer of employees to vacancies at other group operations in South Africa.

(iv) The re-implementation of CONOPS work cycles at Bambanani, Tshepong and Masimong shafts.

(v)

And, as a final measure, involuntary severance.

The implementation of the CONOPS agreement is subject to a successful Sunday work permission application and
will be for a period of 14 months. The agreement also makes provision for a three-month notice period of
termination of CONOPS from either party. The agreement provides for the monitoring of the implementation of the
job loss avoidance measures and for dispute resolution under the auspices of the CCMA.

The transfer of employees to vacancies in other areas of the group bodes well, especially at operations such as
Evander and Elandsrand where key vacancies in production are waiting to be filled.

The group restructuring process is largely completed and Harmony’s Free State operations should be in a position
to produce normalised operating results from the month of September 2005.

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 Free State shafts that will be put on care and maintenance are:

Free State restructuring shafts to be put onto care and maintenance

Average per month over the past 12 months

Nyala

Kudu/Sable

Masimong 4

St Helena 4

Welkom 1

Eland

Tonnes milled (‘000)

Kg’s

61 65 55 38 7

Yield

4,07 4,44 3,70 4,02

4,92

5,20

R/kg costs

172 910

149 162

151 653

162 526

559 290

152 619

R/tonne

costs

703 662 561 654

753

793

These shafts produced a combined average of 296kg per month or 114 000oz per annum for the previous financial
year.

In addition, the scope of several other of the Free State operations will be reduced in the restructuring.
As mentioned in the March Quarter, Bambanani will be reduced to 250 000 ounces per annum at a cash cost of
R72 000/kg. Production at Merriespruit 1 and 3 will be around 110 000 ounces per annum at cash costs
of R83 000 /kg and the combined Unisel – St Helena 8 will produce 100 000 ounces per annum at approximately
R85 000/kg.

We maintain our estimate that group annualised production of 2,95 million ounces at a cash operating cost of
R75 000/kg is the current annualised operating level for the restructured group and we still expect to achieve this
in the September month of 2005.

Estimated Annualised Production

Cash costs

plus capex

Ounces

(R/kg)

($/oz)

(R/kg)

($/oz)

Leveraged shafts

865 000

84 394

404

85 387

409

Quality shafts

1 383 000

66 881

320

70 497

337

Project shafts

323 000

80 626

386

111 244

532

South Africa underground
sources

2 571 000

74 497

356

80 624

386

Australia

273 000

71 875

344

83 854

401

Surface operations

103 000

71 214

341

71 214

341

Total Harmony

2 947 000

74 140

355

80 595

386

The year ahead is an exciting period for Harmony and is the most capital intensive phase of the group’s recent
history. We take comfort in the quality of the projects, which will not only enable us to grow our production profile,
but also add significant value. In FY06 we have budgeted R1,55 billion in capex of which R1,08 billion is project
capex, R311 million is ongoing operational capex and R160 million is a combination of surface infrastructure
upgrades and systems replacement.

Operational capital expenditure (Rm)

Forecast

Operational Capex

FY06

South African Operations

160

Australasian Operations

151

Total Operational Capex

311

Project Capex

Doornkop South Reef

163

Elandsrand New Mine

134

Tshepong North Decline

104

Phakisa Shaft

190

Target Shaft

Papua New Guinea

431

Total Project Capex

1 081

Other

160

TOTAL CAPEX

1 552

The past quarter in review

A higher gold price and a steady operating result saw Harmony’s cash operating profit increase by R100 million
from an operating loss of R55 million in March 2005 to an operating profit of R45 million (US$7,08 million) in the June
period. Production in the June quarter declined by 5,9% to 639 346 oz (quarter on quarter) and cash operating
costs increased by 1,9% to R87 461/kg. In dollars terms, costs dropped by 4,7% to US$424/oz helped by
6,8% depreciation in the USD/ZAR exchange rate to R6,41/US$ for the June Quarter. Unit revenues increased
by 7,7% to R89 711/kg from R83 273/kg in March also largely as a result of the weaker Rand, and in dollars revenues
increased by a more modest 1% to US$435/oz as a result of the higher gold price.

The performance of the company is best highlighted in the following table:

30 June

31 March

Variance

2005

Production

– kg

19 886

21 126

(6)

Production

– oz

639 346

679 251

(6)

Revenue

– R/kg

89 711

83 273

Revenue

– US$/oz

435

431

Cash cost

– R/kg

87 461

85 863

Cash cost

– US$/oz

424

445

(5)

Exchange rate – USD/ZAR

6.41

6.00

Operationally the quarter was characterised by disruptions in the Free State operations in April related to the strike
started in March and the ongoing restructuring of the Free State region. As a result, production in April at the Free
State Operations was significantly lower than planned. Ongoing disruptions at Free State operations associated with
restructuring resulted in below planned operating performances at these operations for most of the June Quarter.
Free State gold production fell 14% to 7 848 kg. We expect the performance of these operations to improve with the
successful completion of the restructuring, which is now largely complete.

In other areas of the group, operating performances improved, helped by the 8% increase in the Rand gold price,
the benefits of CONOPS, a better performance in Australia and, to some extent, the depreciation of the Australian
dollar.

June 2005

March 2005

Cash operating profit (Rm)

(55)

Cash operating profit margin (%)

2,5

(3,0)

Cash earnings/(loss) per share (cents)

(14)

Headline loss (cents)

(102)

(107)

South African underground working costs decreased from the R1 536,8 million in the March 2005 quarter to
R1 480,4 million in the June period. On a group basis, working costs decreased by 4,1% from R1 813,9 million to
R1 739,2 million.

A quarter on quarter cash operating profit variance analysis

Cash operating profit – 31 March 2005

(R54,7) million

– volume change

(R43,1) million

– working cost change

R74,7 million

– recovery grade change

(R60,4) million

– Rand gold price change

R128,9 million

Net variance

R100,1 million

Cash operating profit – 30 June 2005

R45,4 million

Analysis of earnings per share

Quarter ended

Earnings per share (SA cents)

30 June 2005

31 March 2005

Cash earnings

(14)

Basic loss

(291)

(432)

Headline loss

(102)

(107)

Fully diluted loss

(291)

(432)

Adjusted headline loss*

(102)

(117)

* Excludes all unrealised gains/(losses) in financial instruments as well as the tax implications.

Reconciliation between basic and headline loss

Quarter ended

Headline earnings in cents per share (SA cents)

30 June 2005

Basic loss

(291)

Profit on sale of mining assets

(7)

Profit on sale of Bendigo – net of tax

(8)

Loss on sale of ARM Limited – net of tax

Loss on sale of Gold Fields – net of tax

Diminution in carrying value of listed investments

Mark-to-market of listed investments

Impairment of fixed assets

(5)

Headline loss

(102)

Quarterly Financial Review

Revenues increased by 1,4% to R1 784 million largely as a result of the 7,8% increase in the Rand gold price
resulting in an increase in operating profits of R100 million to R45 million. This increased the cash earnings per
share (“EPS”) to 12 cents from a loss of 14 cents in the previous quarter. The net loss was R1141 million (loss per
share 291 cents) compared to a net loss before impairments of R515 million (loss per share 131 cents) for the
previous quarter. The current quarter’s results were negatively affected by the loss on the disposal of a stake of the
investment in Gold Fields of R372 million and an additional provision for employment termination costs due to the
restructuring. In addition, we reflect a diminution in the carrying value of the 13,68% stake of ARM sold into an
empowerment trust designed to broaden ARM empowerment base of R337 million. The loss on disposal of listed
investments was the loss relating to the sale of the balance of our investment in ARM of R103 million, offset by a small
profit on the sale of Bendigo of R30 million. A provision of R57 million has been made for post retirement benefits
following the latest actuarial valuation.

The net loss for the previous quarter after impairments was R1,697 million (loss per share of 432 cents).

The negative movement in the mark-to-market of the hedge portfolio is as a result of the movement in the Australian
dollar gold price, as well as the cash payments on the Avgold currency hedge and a weaker Rand associated with
the currency hedge inherited with the acquisition of Avgold. This hedge matures in December 2005.

Balance sheet restructuring and cash position

We have transformed our balance sheet in the last quarter. This has involved the sale of a number of our non-core
listed investments, including the sale of 30 million (6,5% of the investment in Gold Fields), the sale of the remaining
balance of our ARM investment to parties other than the ARM Empowerment Trust and the sale of our remaining
stake in Bendigo. These sales raised a total of R3 175,9 million and the proceeds have amongst other things been
used in the June quarter to reduce short-term debt by some R720 million, fund restructuring costs of R217 million,
capex of R202,5 million, financing costs of R134 million and R66 million of foreign exchanges losses on the Avgold
Hedge book. The cash balance at 30 June 2005 was R1 830 million.

Harmony Cash Reconciliation for the June 2005 quarter

March to June

R million

Cash and equivalents on 31 March 2005

(233,2)

Operational

(344,8)

Operating profit

45,4

Re-statement

(12,8)

Capex – net

(202,5)

Corporate/Exploration expenditure

(96,9)

Retrenchments and restructuring

(217,3)

Interest paid

(133,7)

Movement in working capital

153,3

Other non-cash items

119,7

Financing activities

2 408,4

Net sundry revenue and foreign exchange losses

34,7

Avgold hedge payments

(65,7)

Settlement of ST-debt

(720,4)

Proceeds of sale of ARM

976,4

Proceeds of sale of Gold Fields

2 041,2

Proceeds of sale of Bendigo

158,3

Other

(16,1)

Cash and equivalents on 30 June 2005

1 830,4

The sale of 13,68% of our ARM stake into a trust designed to facilitate the broadening of ARM’s black economic
empowerment base has made for some interesting accounting issues, The purchase by the trust of our 13,68%
stake in ARM was financed and underwritten by Harmony. Harmony disposed of the remaining portion of the
investment in ARM Limited to the ARM Broad-Based Economic Empowerment Trust (“The Trust”). As part of the
various agreements put in place to arrange the sale of the shares to The Trust, Harmony has accepted terms which
resulted in the majority of the risk not being transferred to the Trust. This relates mainly to a “Put Option” whereby
the loan of R480 million can be put to Harmony by Nedbank in the event of default of the loans obtained by the Trust
in acquiring the shares from Harmony. Based on accounting rules governing the accounting for “Special Purpose

Entities” it is required that Harmony consolidate the Trust and therefore the total Trust liability and the total
investment in ARM Limited is accounted for on the consolidated Harmony balance sheet, as the Trust is deemed to
form part of the Harmony Group. This will be unwound as the shares in the trust are taken up by the incumbent
owners. In the interim the value of the shares in the trust have been written down to R29 per shares which is the
maximum realisable price under the terms of the agreement. The net write down is R337 million.

ARM transaction effects

Before After

consolidation

30 June 2005*

30 June 2005

31 March 2005

Investments

3 301

4 154

6 531

Long-term borrowings

1 569

2 422

2 944

Fair value and other reserves

(610)

(670)

(1 501)

Contingent

liability

489 – –

Loss of sale of investment

(440)

(103)

(110)

Diminution of carrying value of investment

–

(337)

–

Interest paid

(117)

(134)

(96)

Diminution of carrying value of investment

–

* Note: If the sale of the investment to ARM Empowerment Trust has been accounted for as a 100% sale then the

effect would have been:

Effect of consolidating ARM Trust

Investments increased by R853 million.

Long-term liabilities increased by R853 million.

Excluding the consolidated ARM trust debt of R853 million, our gross debt has been reduced to R2,90 billion from
R3,55 billion at 31 March 2005 and net debt (excluding the value of the remaining 5,4% of Gold Fields) has been
reduced to R1 072 million from R3,78 billion. On this basis, gross debt to shareholders equity has reduced to 13,1%,
from 15,8% in the previous quarter. Including the debt associated with the sale of the ARM stake of R836 million,
gross debt to shareholders equity was 16,9% or R3,74 billion as at the June 2005 period-end.

Since quarter-end we spent R295 million in a partial buy-back of our June 2006 HAR1 bond. A total of R281,7 million
of the bond’s notional value has been repurchased, which represents 23,5% of the total issue. The re-purchase was
done at a spread of 195 bps above the benchmark government issue (R152). The bond has a semi-annual coupon
of 13% and was launched in 2001.

Operational capital expenditure (Rm)

Actual Forecast

Operational Capex

30 June 2005

30 September 2005

South African Operations

Australasian Operations

Total Operational Capex

120

Project Capex

Doornkop South Reef

Elandsrand New Mine

Tshepong North Decline

Phakisa Shaft

Target Shaft

PNG

Total Project Capex

127

146

TOTAL CAPEX

202

266

COST INITIATIVES

Buying back our mines

We have initiated several cost and efficiency initiatives in the past quarter. Firstly we have assembled a crack due
diligence team of our best operational and financial people that we would traditionally use in the event of an
acquisition. The intention here is to have a clean re-look at our cost structures and operating efficiencies with the
view to reducing costs by at least 10%. The process involves benchmarking, assessing infrastructure requirements,
shaft specific constraints and service requirements. Where necessary this involves inserting temporary
supplemental management capacity to oversee the implementation. Three shafts have been completed to date with
a reduction in total costs on the shafts of almost 15%!

Services Transformation Project

Harmony has embarked on a group-wide Services Transformation Project (STP). The objectives are to reduce the
cost of service provision by 20% and improve the quality of services. This involves a complete re-look at required
services, associated systems and staffing. Opportunities are enormous. We expect a saving of R50 million in the
second half of 2005 and expectations are for another R100 million in 2006.

QUARTERLY OPERATIONAL REVIEW

The June quarter was a quarter of three very different months with the operating performance of the South African
operations progressively improving as the quarter wore on. The month of April was badly impacted by the
continuation of the strike at our Free State operations, which started in March and the ongoing restructuring of the
Free-State operations. The Free State operations remain the area of biggest negative operating variance, which
should be addressed and rectified through the completion of the restructuring.

Operating performance in the rest of the group were much improved. The Randfontein region increased production
by 6,4% to 2 403kg and decreased operating costs by 11,0% to R92 558/kg, The Evander region increased
production by 9,2% to 2 868kg and decreased operating costs by 6,7% to R72 063/kg, the Orkney region increased
production by 18,7% to 1 198kg and decreased operating costs by 22,8% to R70 274/kg, and although production
at the Australian operations remained steady, operating costs decreased by 11,7% to US$337/oz.

Operational highlights were as follows:

•

The group restructuring is largely complete.

•

Tshepong continues on its winning ways.

•

Strong turnaround at Evander 8 shaft.

•

Consistency from Kalgold.

•

Strong performance at Mt Magnet.

•

Resource/Reserves upgrade at Hidden Valley and Target mine.

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

30 June 2005

31 March 2005

Variance

Operations

(R’million)

Quality ounces

104,9

66,7

38,2

Growth projects

(19,5)

(18,2)

(1,3)

Leveraged ounces

(107,4)

(131,4)

24,0

Surface operations

27,0

8,9

18,1

Total South Africa

5,0

(74,0)

79,0

Australasian operations

40,4

19,3

21,1

Total

45,4

(54,7)

100,1

The tables below show a strong and consistent improvement through the quarter and also illustrate how the
problems associated with the Free State restructuring have made this area by far the worst in terms of operating
performance. With the Free State restructuring now basically complete, and key positions in the other operations
being filled as a result of the transfers, we look forward to better performances.

Group Production

Month ended

30 April

31 May

30 June

2005

Tonnes milled (’000)

1 685

1 755

1 758

Kg’s

5 929

6 587

7 370

Yield

3,52

3,75

4,19

R/kg costs

92 927

86 974

83 506

R/tonne costs

327

326

350

US$/oz costs

469

425

386

SA UG Production

Month ended

30 April

31 May

30 June

2005

Tonnes milled (‘000)

827

1 011

1 097

Kg’s

4 627

5 323

6 237

Yield

5,60

5,27

5,69

R/kg costs

99 208

92 097

85 154

R/tonne costs

555

485

484

US$/oz costs

501

450

394

Free State UG Production

Month ended

30 April

31 May

30 June

2005

Tonnes milled (’000)

414

570

665

Kg’s

2 186

2 880

3 325

Yield

5,29

5,05

5,00

R/kg costs

111 044

96 773

94 302

R/tonne costs

587

489

472

US$/oz costs

561

473

436

A detailed analysis of the operations is as follows:

1. Quality ounces – Strong turnaround at Evander 8 showing the benefits of

CONOPS and restructuring

Includes the following shafts: Target, Tshepong, Masimong, Evander and Randfontein’s Cooke Shafts.

30 June

31 March*

2005

U/g tonnes milled

(‘000)

1 508

1 570

U/g recovery grade

(g/t)

6,02

6,25

U/g kilograms produced

(kg)

9 073

9 819

U/g working costs

(R/kg)

78 462

76 518

U/g working costs

(R/tonne)

472

479

*Includes Target surface production of 51 000 tonnes at 0,51g/t.

Operating profits at these operations increased to R104,9 million from a profit of R66,8 million in the March
quarter. The improved operating performance was driven by the higher gold price. Volumes were negatively
effected in part due to the strike in the Free State and due to lower underground volumes at Target. Importantly,
total working costs decreased by 5,2% to R711,9 million compared to the R751,3 million reported in the March
2005 period. The drop in total working costs stands to significantly benefit the company’s unit costs at higher
volumes. As part of the NUM agreement signed on 19 July 2005 CONOPS will be re-implemented at Tshepong,
Masimong 5 and Bambanani mines which should help restore optimum volumes at these operations. The
implementation of CONOPS at Masimong 5 will commence after four months to allow for adequate
development to be done in the interim.

Target continued to battle with flexibility, machine availability and grade issues in the June quarter.
Underground tonnage milled decreased from 255 000 tonnes in the March quarter to 203 000 tonnes in June
and recovered grade decreased from 6,19 g/t to 4,47 g/t. Grade was in part impacted by a lack of access to
some of the higher grade stopes due to backfill constraints. Increased development also contributed to lower
grades. Operating costs increased to R79 503/kg (US$384/oz) compared with R60 887/kg (US$319/oz) in
March. Importantly, total operating costs declined by a further 18% keeping unit costs at an impressive
R356/tonne and paving the way for significant further unit cost reductions with increased volumes. Surface
production decreased to 16kg in the June quarter compared to the 26kg reported in the March period.

Please take note that from the June quarter we have removed the surface production from Target reported
production to reflect only underground operations.

Tshepong continues to deliver excellent operational results and now faces the prospect of the re-implementation
of CONOPS, which should further increase production. In the June quarter underground tonnages increased by
6,7% to 350 000 tonnes. As expected grades dropped to a more normalised 7,15g/t from 9,11g/t in March and
as a result production dropped by 16% to 2 502kg. Despite the higher volumes, total operating costs dropped
by an impressive 3,2% to R168,9 million resulting in a 9,3% drop in unit costs to R483/tonne from R529/tonne in
the previous quarter. Operating costs increased by 15% to R67 484/kg (US$326/oz).

Tshepong decline project review

Following the decision taken during the March quarter to complete the project in-house, site has been
re-established and good progress was made during the June period to make up time lost in the contractor
replacement, and more recently (March – April) the 14-day strike in the Free State. The Tshepong decline
project is scheduled for completion in FY08 with full production 130 000 ounces per year scheduled for FY07.

Access Development

Total of 3 492m of 6 281m development has been completed.

Chair lift Decline

67% of the 900m is completed.

Material decline

67% of the 1 000m is completed. The strike and poor ground conditions delayed progress during the period.

69 Level

Development on the 69 station is 53% completed. Pipe installation to sub-66 – 69 level is completed.

CAPITAL UPDATE

Approved capital

R280,2 million

Final Estimated cost

R280,8 million

Expenditure to date

R140,1 million

Remaining capital

R140,8 million

FINANCIAL EVALUATION UPDATE

Gold price (R/kg)

92 000

NPV at 7,5% (Rm)

738

IRR

32,4%

Masimong had a poor quarter relating to a fire which stopped production at Masimong 5 for seven days and
the strike that started on 23 March 2005. The largest source of variance was however the closure of Masimong
4 and the fact that, due to the restructuring delays, labour costs were anomalously high in the quarter.
Production fell by 11,9% to 998kg from 1 133kg in the March period. Operating costs decreased by a modest
1% to R103 614/kg despite a 12,6% fall in total operating costs to R103,4 million. Tonnes milled dropped by
13,8% to 186 584 tonnes from 217 000 tonnes in the March period. Masimong reported a cash operating loss
of R13,1 million in the June quarter compared to a loss of R21 million in the March period. The result belies a
much improved performance at Masimong 5 despite the fire and strike. Masimong 5 increased volumes by
7,2% to 177 586 tonnes and production by 5,6% to 968kg. This bodes well for Masimong 5 pending the
implementation of CONOPS before year-end and restructuring of Masimong 4.

The Masimong Expansion Project was delayed in the June quarter due to a fire on the mine and the strike
that commenced on 23 March 2005 and extended into April. During the June quarter a total of R3,3 million was
spent on capital development and a total of 361 metres of capital development was achieved.

The scope of the Masimong expansion project has been increased with the view to increasing its production
profile up to 135 000 tons per month in five years. This has resulted in the total project capex increasing to
R314 million from R138 million previously but has similarly increased the NPV of the project from R49 million to
R189 million and increased the IRR from 30% to 111%.

The project is due for completion in 2010 and will contribute a total of 260 000 ounces per year.

CAPITAL COST UPDATE

R million

Final estimated cost

314,0

Sunk capital

110,7

Remaining capital

203,3

ANNUAL CAPITAL EXPENDITURE PROFILE

Table (R million)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Actual
Sunk

26,4

38,7

24,5

21,1

110,7

Forecast

29,8

39,4

44,0

44,2

45,9

203,3

Total

26,4

38,7

24,5

21,1

29,8

39,4

44,0

44,2

45,9

314,0

FINANCIAL EVALUATION UPDATE

Gold price (R/kg)

81,000

NPV at 10% (Rm)

189

IRR

111%

Evander’s performance improved materially in the June quarter thanks in part to the region’s exposure to
CONOPS for a year, but more specifically due to a much improved performance at Evander 8. Production in
the period increased by 9,1% to 2 868kgs from 2 628kg in the March quarter driven by a 10% increase in
grades to 7,1g/t. Operating costs decreased by 6,7% to R72 069/kg helped by a 17,0% increase in volumes at
Evander 8 to 186 000 tonnes and a 16,1% increase in grade at Evander 8 to 6,3g/t. During the quarter the
operations of Evander 2 and 5 were combined with all production from the two shafts being hoisted from
Evander 5, which will continue to realise cost synergies as the process is bedded down.

Evander is a good example of how CONOPS is working for Harmony and Evander 8 is an excellent
example of this. Despite having low flexibility, an increase in development rates and the addition of the extra
CONOPS shifts has enabled crew advance on the shaft to be increased from 10,5 metres in the March quarter
to 15,7 metres in the June month despite the fact that the CONOPS implementation has only recently been
completed at Evander 8. Similarly at Evander 2 and 5 shafts we are seeing increases in face advance of over
20% and increases in development efficiencies of over 30%.

Decline No. 3 Project (Phase 3) at Evander 7 Shaft is progressing well. The No. 3 Decline shaft barrel
advanced 60 metres during the period and the horizontal development on 20 Level advanced 120 metres.
The 20 level pumpstation and the temporary conveyor tips were completed during May 2005. The whole of
20 Level was equipped with rails and two loaders and two locos with hoppers were moved to 20 Level. The next
stage of equipping is focused on the completion of the No. 8 Conveyor and the construction of the main tips and
sacrificial conveyor on 20 Level.

The Phase 3 project is due for completion in 2008 and full production of around 65 000 ounces is estimated in
the FY07 financial year.

CAPITAL COST UPDATE

R million

Final estimated cost

79,9

Sunk capital

46,9

Remaining capital

33,0

ANNUAL CAPITAL EXPENDITURE PROFILE

Table (R million)

2003

2004

2005

2006

Actual sunk

–

23,2

23,7

Forecast

–

33,0

Total

–

23,2

23,7

33,0

FINANCIAL EVALUATION UPDATE

Gold price (R/kg)

85 000

NPV at 7,5% (Rm)

117

IRR

211%

Gold Price (R/kg)

80 000

NPV at 7,5% (Rm)

IRR

162%

Actual Sunk

Forecast

The Cooke section of Randfontein also posted a much improved performance in the June quarter as the benefits
of CONOPS start to be realised. The majority of production parameters showed improvement in the June quarter.
Volumes increased by 9% to 366 000 tons milled, grades improved by 2% to 4,91g/t, cost/tonne decreased by
12% to R442/ton, production increased by 12% to 1 797kg, total operating costs decreased by 4% to
R162 million and operating costs decreased by 14% to R90 112/kg – a good all round performance!

Cooke 2 is another good example of how CONOPS is working for Harmony. In the June quarter production at
the shaft increased by 25,5% to 453kg driven by a 23% increase in tonnes milled to 95 000 tonnes and a 1,7%
increase in grades to 4,76 g/t. Total operating costs remained unchanged at R37 million resulting in a massive
18% decrease in unit operating costs to R393/tonne and a 20% decrease in operating costs to R82 465/kg.
The performance was driven in part by higher crew advance and a 40% increase in development metres, which
is providing the flexibility needed to produce and sustain higher production levels.

Leveraged Operations – Restructuring delays hurts performance

Shafts included under this section are Bambanani, Joel, Kudu, Sable, West Shaft, Nyala, St Helena, Harmony 2,
Merriespruit 1 and 3 Shafts, Unisel and Brand 3 and 5 Shafts, Saaiplaas 3, Orkney 2 and 4 Shafts as well as Eland.

30 June

31 March

2005

U/g tonnes milled

(’000)

1 095

1 062

U/g recovery grade

(g/t)

4,73

5,16

U/g kilograms produced

(kg)

5 181

5 481

U/g working costs

(R/kg)

111 162

107 805

U/g working costs

(R/tonne)

526

556

These operations which consist of shafts which are either in the process of being restructured, downscaled in
line with available ore reserves or being mothballed, returned a cash operating loss of R107,4 million versus
the loss recorded in the March period of R131,4 million. Gold production decreased by 5,5% to 5 181kg driven
largely by a 8,3% fall in grades to 4,73g/t versus the 5,16g/t achieved in the March quarter. Total operating costs
decreased by 2,5% to R575,9 million from R590,9 million achieved in the March period. Pleasingly unit
operating costs also fell by 5,4% to R526/tonne, but this was offset by the lower grades resulting in an increase
in operating costs by 3,1% to R111 162/kg. Pleasingly the poor individual shaft performances were largely
restricted to areas with outstanding restructuring and in fact more than 50% of the leveraged shafts posted lower
operating costs per kilogram and more than 70% posted lower cost per tonne, some of them significantly so.

Examples of this are Harmony 2 with 21% lower cost per kilogram and 21% lower cost per tonne, Joel with 11%
lower cost per kilogram and 17% lower cost per tonne, Orkney 2 with 22,5% lower cost per kilogram and 12,6%
lower cost per tonne, and Orkney 4 with 23% lower cost per kilogram to R66 173 and 13,3% lower cost
per tonne.

The shafts that have been put on care and maintenance are Masimong No 4, Nyala, St Helena 4, Saaiplaas 3,
Eland, Brand 5 and Welkom No 1 shaft. Production at Bambanani will be decreased and CONOPS will be
re-implemented. In addition, Merriespruit 1 and 3, Brand 3, Unisel, St Helena 8 will all be right-sized. The
restructuring is now largely completed and should see the operations return to “normality” in the September
month once the process is bedded down. Following the completion of the restructuring we expect the region
to produce approximately 920 000 ounces per year at an operating cost of R85 000/kg.

SA Surface Operations (includes Kalgold)

30 June

31 March

2005

Surface tonnes milled

(’000)

1 415

1 533

Surface recovery grade

(g/t)

1,09

1,02

Kilograms produced

(kg)

1 536

1 564

Working costs

(R/kg)

70 815

76 187

Working costs

(R/tonne)

Kalgold stole the show (again!). Kalgold reported a cash operating profit of R24,8 million compared to a cash
operating profit of R8,1 million in the March 2005 quarter. Tonnages increased by 6,8% from 425 000 tonnes to
454 000 tonnes, quarter on quarter. Recovery grade decreased by 5,0% to 2,03 g/t (March 2005 – 2,14 g/t) as
a result of slightly lower mining grades. Despite this, production increase by 1,3% to a new record of 922kg.
The biggest driver of the strong result was an impressive 20,8% decrease in unit operating costs to R126/ton
driven by reductions in both the plant and mining costs and higher volumes.

Please note we have included the Target surface production in the SA Surface Operations from June 2005. In the
June quarter this consisted of 29 000 tons at a recovered grade of 0,565g/t.

GROWTH PROJECTS – ELANDSRAND AND DOORNKOP AND PHAKISA

30 June

31 March

2005

U/g tonnes milled

(’000)

331

323

U/g recovery grade

(g/t)

5,84

6,56

U/g kilograms produced

(kg)

1 933

2 119

U/g working costs

(R/kg)

99 609

91 828

U/g working costs

(R/tonne)

582

602

Good progress continues to be made on the growth projects. Production from this segment however declined
by 8,8% to 1 933 kg and operating costs increased by 8,4% to R99 609/kg driven by a 11% decrease in grades
to 5,84 g/t. Good progress has been made however on unit and total operating cost reductions. Total operating
costs fell by 1,1% to R192,5 million and unit operating costs fell by 3,3% to R582/ton. Particularly pleasing was
the 11,9% drop in unit operating costs at Doornkop to R331/tonne.

Elandsrand New Mine Project

Elandsrand remains focused on the completion and commissioning of the New Mine Project, but in the interim,
production from the upper section of the mine continues to be hampered by a lack of flexibility. The operation
made an operating loss of R10,9 million in the June quarter compared to an operating loss of R4,9 million in March.
Production decreased by 12,1% to 1 559kg driven by a 8,9% drop in grades to 7,64g/t and a 3,8% fall in volumes
to 204 000 tonnes milled. Operating costs increased by 12,2% to R96 523/kg.

The deterioration at Elandsrand is related to a drop in Mine Call Factor (“MCF”) to 78% and a drop in sweepings
in the June period to 78%, respectively. Mining grades remained constant at 10,9g/t and initiatives that have been
put in place to address both volumes and improve the quality of mining should see Elandsrand improve despite
the flexibility problems. In the longer term the commissioning of Elandrand New Mine will alleviate the
flexibility problems and allow the operation to achieve its full potential. We remain very excited about the future
of Elandsrand.

The Elandsrand New Mine Project is scheduled for completion in 2010 and full production of 500 000 ounces is
scheduled for 2012.

Infrastructure

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 102 L Booster fan installation was completed in April. The fan ducting (from fan to ventilation shaft) will
be installed during the next quarter.

•

100 L 22 kV sub-station track work has been completed. The civil work will start during the next quarter.

•

Civil construction on 115 L mud pumps was completed as well as the crane gantry, which will be
commissioned in September.

•

Reinforcing of No. 3 Settler dam floor was completed. The concreting is planned for August.

•

The design of No. 3 Settler dam wall has been checked and additional support and reinforcing will be
required, due to bad ground conditions.

•

Sinking No. 2 Service Shaft is progressing, following the electrical delays experienced during April and May.

This shaft is currently sunk to 35 metres below 98 L.

•

The 92 L Turbine dam chamber excavation has been completed and raiseboring is planned in the
September quarter.

•

Commissioning of the rock loading system from 115 L was done during this quarter. Both reef and waste can
now be hoisted from 115 L. The joining of the ore pass system at 100 L is planned for this quarter.

•

115 L No. 3 sub-station has been completed.

Access Development

102 Level

With the vent-cross over on 105 L complete, the vent raise bore holes between 102 L and 105 L commenced but
encountered difficulties related to an incorrect survey position. This necessitated blasting a 3-metre cubby out
of the vent-cross over to link up with the raise bore hole, which has now been completed.

105 Level

The vent cross-over holed in January 2005. All the capital development on this level is now complete. Ventilation
raisebore holes are in progress.

109 Level

With the main haulage and Return Airway (“RAW”) now through the Cobra dyke development rates have
normalised.

113 Levels

Both the RAW and haulage are now through the Cobra Dyke with its associated high-pressure gas pockets
allowing normal development to be resumed.

CAPITAL COST UPDATE

R million

Final estimated cost

609,8

Sunk capital

450,4

Remaining capital

159,4

ANNUAL CAPITAL EXPENDITURE PROFILE

Table (R million)

2001

2002

2003

2004

2005

2006

2007

2008

Actual sunk

107

106

105

450

Forecast

105

160

Total

107

106

105

610

FINANCIAL EVALUATION UPDATE

Gold price (R/kg)

85 000

NPV at 7,5% (Rm)

1 351

IRR

33,1%

Doornkop South Reef Capital Project

Doornkop delivered a much improved mining performance in the June quarter. Volumes increased by 14,4% to
127 000 tonnes and despite the increased volumes, total operating costs remained constant at R42 million
resulting in a 12% reduction in unit operating costs to R331/tonne from R376/tonne in the March period and
reducing operating costs by 7,7% to R112 504/kg. Doornkop continues to battle with recovered grades, which
fell 5% to 2,94g/t resulting in only a 8,7% increase in production to 374kg in the June quarter. Doornkop reduced
its operating losses to R8,6 million in the June quarter compared to losses of R13,3 million in the March period.
Although mining the Kimberly reefs at the Doornkop shaft remains loss making, the operation contributes
R3,5 million per month to the capital project by way of shaft overheads.

The Doornkop South Reef Project made excellent progress in the June quarter. Doornkop is now the only
developing shaft in the industry that has two separate sinking operations at different elevations in the same shaft
– another first for Harmony! Capital expenditure at Doornkop totalled R29,2 million in the June quarter.

The Doornkop South Reef Project is scheduled for completion in 2011 with full production of 310 000 ounces
per year scheduled in 2009. Production build-up will commence in October 2006.

Highlights of the Doornkop project progress in the June quarter 2005 include:

•

Access development on 192, 197 and 202 Levels continue while in-circle development is underway on
212 level. Three reef raises are also being developed on 192 Level for over-stopping operations to
commence in August 2005.

•

The 1.8m diameter raise-bore hole between 192 Level and 132 Level (currently main shaft bottom) is
complete. This task was executed on time with no gas or water intersections encountered en-route. Shaft
sinking is commencing from 132 Level shaft bottom in August 2005.

•

Sliping of the shaft to final diameter from 197 Level is being done. An independent sinking bank and
infrastructure has been commissioned on 197 Level that enables sinking to take place on two locations on
one shaft. It is planned that the portion of shaft between 197m to 50m below 212 Level will be sliped to final
diameter by the time the sinking operation above reaches 192 Level in March 2006.

•

The second outlet facility was commissioned in July 2005 with the final installation and commissioning of the
second outlet winder, headgear and other infrastructure. The second outlet shaft is also being used to
circulate additional air in the sub-shaft.

•

The updated schedule provides for the main shaft to be partially commissioned (excluding the additional
rock winder) by the end of 2006. Production will ramp-up over the next three years to 135 000 tons per month
of reef.

•

The project financial evaluation model has been updated during the quarter. Gold price amended to
R92 000/kg. The working cost model update indicates estimated working unit costs of average R420/ton for
the life of mine in June 2005 money terms. Projected final estimated costs for the capital program have been
reduced to R959 million.

Capital Cost Update (End June 2005)

R million

Final estimated cost

959

Sunk capital

225

Remaining capital

734

Annual Capital Expenditure Profile

Table (R million)

2003

2004

2005

2006

2007

2008

2009

2010

2011

Actual sunk

114

225

Forecast

163

183

167

124

734

Total

114

163

183

167

124

959

FINANCIAL EVALUATION UPDATE

Gold price (R/kg)

92 000

NPV at 7,5% (Rm)

412

IRR

45%

Actual Sunk

Forecast

Mine infrastructure layout and general arrangements

Doornkop South Reef Project

AUSTRALASIAN OPERATIONS – DELAYED CUE OPEN PIT START-UP IMPACTS
PRODUCTION

Highlights

•

Continued good drilling results on Wafi project in PNG.

•

Good underground performance at Mt Magnet as a result of better underground grades.

•

Blocked escape way at Mt Marion severely impacts on underground production at South Kal Mines.

•

Good exploration drill results showing potential for open pit resource at South Kal Mines.

AUSTRALIAN OPERATIONS

30 June

31 March

2005

Tonnes milled

(’000)

849

975

Recovery grade

(g/t)

2,56

2,14

Ounces produced

(’000)

69 542

68 903

Working costs

(US$/oz)

337

382

Working costs

(US$/tonne)

25,0

24,5

The Australian Operations had a substantially better quarter compared to the March quarter with operating profit
improving to A$8.2 million from A$4.1 million in March. A good underground performance at Mt Magnet was offset
by lower underground production at Mt Marion, where production was severely affected by a blocked escape way.
This resulted in 69 542 oz produced in June 2005 compared to 68 903 oz produced in March.

Mount Magnet

Mount Magnet reported a working profit of A$7.2 million (March A$1.8 million), mainly due to a good performance
from underground operations. Underground tonnages were 2% up compared to the previous quarter, but a 29%
improvement in grade resulted in 26 431 underground ounces being produced in the quarter compared to
20 070 ounces in the previous quarter. Underground mining has now ceased at the Star mine, and this ore will be
replaced by ore from the St George underground mine from the end of the September quarter onwards.

Decline development advance improved significantly at the St George mine as a result of improved ground
conditions and focused contractor management. The commencement of stope production will be delayed until the
end of the September quarter as a result of these conditions. There was a slight improvement in open pit production
at Mt Magnet with the Cue open pits coming on line and better ore being accessed.

In aggregate the site produced 44 632 ounces of gold from the processing of 521 751 tonnes of ore and low grade
stockpiles.

South Kal Mines

South Kal Mines produced 24 903 oz of gold in June quarter compared to 30 318 ounces in March quarter from the
milling of 314 857 tonnes of ore.

Underground production at Mt Marion was severely affected by a blockage in the secondary escape route, which
resulted in no stope mining allowed to take place for 20 days until the route was cleared. Tonnage from underground
operations decreased 50% to 71 072 tonnes. As predicted in the previous quarter underground grade continued to
be low at 3,69 g/t.

Open pits had significantly higher production than the previous quarter with 15 318 ounces produced compared
to 12 595 ounces in the previous quarter, with 195 483 tonnes being processed. More low grade stock piles were
processed in the quarter compared to the previous quarter as a result of open pit mill feed being in the process of
depletion and higher than normal rainfall affecting surface haulage capacity.

Some good drill results were returned during the quarter from an RAB air core drill program at the Shirl Prospect,
located on one of our tenements at South Kal Mines. Some of the best intervals are:

05BSRB284

8m @ 12.3g/t gold, from 16m

05BSRB309

6m @ 3.6g/t gold, from 24m

05BSRB310

8m @ 2.17g/t gold, from 14m

05BSRB315

10m @ 15.18g/t gold, from 34m

4m @ 5.48g/t gold, from 48m

05BSRB316

14m @ 7.94g/t gold, from 34m

05BSRB342

6m @ 12.77g/t gold, from 28m

Geological logs are in the process of being entered into the database and the interpretation of sections and plans
is well underway. These are in the process of being finalised and further drilling will be planned as soon as possible.

The site showed a profit for the quarter of A$1 million compared with A$2.4 million in March.

PAPUA NEW GUINEA

Offshore Project Update

The development concept for the Hidden Valley Project remains unchanged with a two-phase project being
planned. Phase 1 (the first eight years) constructs the plant and infrastructure, develops, mines and processes
reserves from the Hamata and Hidden Valley – Kaveroi open pit mines. Phase 2 aims to progressively extend gold
production around a centralised process plant being fed from a number of regional ore sources.

Drilling has been completed during this year; in general the results have as expected further enhanced the quality
of the orebody with most of the inferred resource being upgraded to indicated. The mining optimisation studies
conducted on the new resource model indicate that the orebody will yield a higher tonnage at a higher grade than
previously envisaged.

Reserve/Resource upgrade

The final phase of the Hidden Valley validation drilling programme, was successfully completed this quarter with
excellent results. A total of 2 093m of diamond drilling from six holes was done. The objective(s) of this drill
programme was to fill in gaps in geology and geochemical data and to increase the Indicated Resources at the
Hidden Valley Zone. In addition the drilling programme sought to test lateral and down dip continuity of interpreted
ore outlined in Kaveroi resource model.

The additional drilling ahead of the finalisation of the project has resulted in an upgrade to both the reserve and
resource. Measured and Indicated resources have increased by 310 600 ounces of gold and 1,46 million ounces of
silver in the measured and indicated category portion of the resource. This represents a conversion of almost all of
the inferred material to indicated for the Hidden Valley deposit. The slight drop in inferred gold ounces is due to
the “tightening up” of the resource interpretation in the Kaveroi deposit. Importantly, the 4,6% increase in the
resource grade has in turn led to a significant improvement in the projected mining grade with all of the
accompanying benefits that follow. It goes a long way towards reducing the risk of negative cost surprises and
potentially lowers the cost per ounce or increasing the life of the ore body.

Hidden Valley, Kaveroi and Hamata Resource Estimate >1.0 g/t gold

June 2005 Model

Variance

Gold

Silver

Gold

Silver

Deposit

Category

Tonnes

g/t

Ounces

g/t

Ounces

Tonnes

g/t

Ounces

g/t

Ounces

Total

Measured

3 212 609

3,69

381 447

58,98

4 756 426

1 086 909

0,26

215 355

2,28

2 650 921

Total

Indicated

22 555 586

3,29

2 385 603

51,99

33 908 968

(674 014)

0,09

95 286

(1,25)

(1 185 537)

Total

Inferred

6 532 222

3,04

638 208

59,69

10 268 569

(4 285 078)

0,31

(514 408)

1,46

(8 249 622)

Total

TOTAL

32 300 417

3,28

3 405 258

54,08

48 933 963

(3 872 183)

0,21

(203 767)

(0,85)

(6 784 238)

There has been a 205 905 ounce increase in Proven and Probable reserves made up of a 1,9 million ton increase
and a 0,04 g/t increase in the grades to 3,00 g/t.

Hidden Valley, Kaveroi and Hamata Reserve Estimate

June 2005 Model

Variance

Gold

Silver

Gold

Silver

Category

Tonnes

g/t

Ounces

g/t

Ounces

Tonnes

g/t

Ounces

g/t

Ounces

proven

2 718 532

3,39

296 181

52,47

4 585 701

1 618 532

0,29

186 181

1,47

2 782 044

Hamata

proven

747 823

2,74

65 838

(152 177)

(0,36)

(23 863)

TOTAL

3 466 355

3,2

362 019

52,47

4 585 701

1 466 355

0,14

162 318

1,47

2 782 044

probable

17 751 546

2,96

1 687 856

47,88

27 328 430

151 546

0,06

47 856

(1,12)

(398 380)

Hamata

probable

2 037 441

2,92

191 493

237 441

(0,48)

(5,270)

TOTAL

19 788 987

2,95

1 879 349

47,88

27 328 430

388 987

0,01

42 586

(1,12)

(398 380)

GRAND
TOTAL

23 255 342

3,00

2 241 368

48,49

31 914 131

1 855 342

0,04

204 904

(0,63)

2 383 664

Reserve cut-off used – 1g/t

*Hidden Valley medium grade cut-off – 0.75g/t

Project changes

The Reserve/Resource upgrade of Phase 1 has increased the planned Life of Mine production by 10% to
2 065 million ounces of gold from 1,875 million ounces previously. In addition, the planned Life of Mine silver
production has increased by 5% to 26 744 million ounces.

Progress towards final project release and construction has progressed slower than anticipated with the main delays
arising from the final phases of the licensing process which required detailed interdependent negotiations with
Papua New Guinea Central Government, Provincial Government, Local Government and Landowners respectively.
The final agreements were concluded and signed at a ceremony on 5 August 2005.

With all licensing, environmental permitting and compensation agreements now completed, the final project
engineering updates are being completed. The mine construction finance will only be released after the feasibility
has passed through a final assessment. The change in timing comes in the light of cost pressures in the capital
construction industry as a consequence of the continuing commodities boom that has persisted since the results of
the original feasibility study were announced two years ago. The final assessment is planned for completion by the
end of November.

Assuming project release is given pending the final cost and return estimates, the commencement of the mine site
project construction is now scheduled for December 2005 and the revised capital estimate is AU$277 million versus
the AU$260 million previously estimated.

The changes to capex are largely related to increases in the cost of steel and infrastructure whilst there have also
been offsetting changes to the operating costs. The positive variances in operating costs relate largely to the

increased grades and the negative variances relate to a modest increase in the stripping ratio and higher diesel
price assumptions.

Key operating parameters

Average annual Gold production (’000 oz)

300

Average annual Silver production (’000 oz)

4 500

Average annual Gold equivalent production (’000 oz)

362 000

Life of mine Gold production (’000 oz)

2 065

Life of mine Silver production (’000 oz)

26 744

Mine construction period (months)

Life of Mine (years)

Average Cash operating costs – By-product basis (US$/oz)

165

Average Royalty cost (US$/oz)

Average tax and PRI cost (US$/oz)

Total cost (US$/oz)

219

Total Project Capital (A$m)

277

Project IRR (%)

Project NPV at 7,5% (A$m)

112

Offshore Exploration

This is an area of Harmony’s business that continues to gain momentum and receive increasing attention. We are
currently involved in scoping studies on a number of potential opportunities globally and have formulated strategy
on how best to execute the growth of Harmony’s offshore ambitions with Harmony’s skill set and areas of relative
competitiveness.

Wafi Gold

The Wafi Diamond drilling program that commenced during the end of last year is now completed. A total of
11 holes were drilled for 4,147.40m. The overall objective of drilling in the Link Zone was to test for a potential
continuation of the high grade (7.0 g/t) gold mineralization below the Diatreme Breccia, to test the lateral extent of
the Western Zone and to drill test the Nabonga Prospect (rock chip results of 2m @ 23.52 g/t and 10m @ 2.16 g/t).

The first phase of exploration for the northern extensions of the high-grade core of the Wafi gold resource was
completed during the quarter. The most encouraging results received to date are from the Western Zone where
hole WR200 intersected mineralization 50m south of the main drilling anomaly. Initial inspection of the assay results
appears to support a flat-lying, bedding parallel interpretation that would be consistent with the B-Zone to the south.
If this is true then there is potential for further up dip and hence shallower mineralization (to the west) to the Western
Zone. Drillhole WR199, targeting the northern extensions of the Link Zone, intersected low-grade, B-Zone style
mineralization. The result suggests that the high grade zone is further to the west.

Drillhole WR198 returned a significant width of low-grade mineralisation from the A-Zone which is located on the
eastern side of the Wafi system. This result follows up the previously reported intersection from the same hole of
31m grading 6,00g/tAu from 71m. Within this new 110m thick intersection are several higher-grade zones. This
result shows that mineralization continues to a considerable depth and hence could impact positively on an
integrated Wafi-Golpu underground operation.

Significant results reported to date from Wafi include:

Hole ID

From

Interval

Average Grade

(m)

(g/tAu)

WR198

342

452

110

2,64

Includes

363

373

5,82

387

401

4,67

434

444

3,55

WR199

280

287

2,50

WR199

386

404

1,59

WR200

339

351,4

12,4

5,50

WR200

397

404

8,92

WR200

419

424

5,65

Metallurgical borehole results

Hole ID

From

Interval

Grade (g/tAu)

WR197

204

211

1,38

WR197

216

242

2,01

WR197

246

255

1,20

WR197

258

273

4,09

WR197

292

311

16,16

WR197

427

437

1,26

A bulk metallurgical sample from Wafi diamond hole WR 197 was recovered. Whole core representing B Zone and
Link Zone ore was collected from 150m to 461m depth. Ore samples were cold stored and shipped to Australia for
metallurgical test work. Interval assay work was almost completed at the end of the quarter.

Selected mineralised intervals will be tested over the next six months to determine the suitability of alternative
bioxidation processing options. A pre-feasibility budget and schedule were compiled to investigate underground
mining of high grade Link Zone ore, which includes limited geotechnical drilling. Mine optimisations and financial
models will be re-run based upon outcomes from the first pass mining study and process evaluation and latest
resource model.

Golpu Copper Porphyry

In preparation for the forthcoming pre-feasibility study the creation of an updated geological model commenced.
This will aid the design of the geotechnical and resource definition holes required for the study. A team has been
assembled to carry out the pre-feasibility programme.

REGIONAL EXPLORATION

Moa Creek Prospect

Anomalous gold results have been reported from manual trenches within the immediate mineralised area further
confirm in-situ gold mineralisation. Gold mineralisation occurred as oxidised, manganese stockwork veins and as
replacement style mineralisation. Replacement style mineralisation was further exposed in a manual trench
(Trench 5) located 300m west of the main zone of gold mineralisation. The mineralisation is in a form of massive
bedded sulphide mineralisation hosted in bedded metaphyllite. This strongly suggests a “foot print” of a
replacement style mineralisation.

Significant trench results:

Trench 5
•

1,0m @ 15,36 g/t Au

•

1,0m @ 4,40 g/t Au

Trench 2 (east – west extension)
•

1,0m @ 345,80 g/t Au

Mt Watut

Regional Structural Analysis conducted in February, suggests this area as particularly interesting especially from
historical airborne magnetic survey which defined a N-S trending complex of small circular magnetic lows flanked
by magnetic highs that strongly suggest a large intrusive complex. A field visit resulted in the discovery of one felsic
porphyry sample containing disseminated malachite.

AUSTRALIA

Northern Territory Burnside Joint Venture (50%)

Drilling was completed during the quarter on the Cosmo deep resources. Intersections on the Eastern lodes
section upper level have successfully in-filled the resource model and intersections on the lower levels are
indicating a potential increase in average grade at depth. Western lode intersections will extend the current
resource model, as they are in the upper levels, where the Burnside JV has not previously undertaken any drilling.
Work is continuing on the Cosmo Deeps pre-feasibility study. The Kazi open pit resource was reviewed in the June
quarter and will be converted to reserve status in the September quarter following pit design and evaluation work.
We are in discussions with our Joint Venture partners on how to take the project forward.

Maude Creek tenements

The counter-party interested in these tenements, located in the Northern Territory, has exercised its option to
acquire these tenements by paying an upfront purchase price of A$ 3 million in cash, with deferred cash payments
of A$4 million plus a royalty payable when they make the decision to start mining and on commissioning of the mill.

Other

During the quarter the company disposed of its 30% stake in PT IMK, an Indonesian project inherited with the
acquisition of Abelle, for A$2.6 million, as well as its 15% interest in Yilgarn Mining for A$1.2 million. The interest in
Yilgarn was acquired as part of the Abelle transaction.

Harmony Australia is currently investigating options to turn prospective Nickel ground around its South Kalgoorlie
Mines to account.

OPERATING AND FINANCIAL RESULTS

(Rand/metric) (unaudited)

Underground production – South Africa

Leve-

Quality

Growth

raged

Ounces

Projects

Ounces

Sub total

Ore milled – t’000

Jun-05

1 508

331

1 095

2 934

Mar-05

1 570

323

1 062

2 955

Gold produced – kg

Jun-05

9 073

1 933

5 181

16 187

Mar-05

9 819

2 119

5 481

17 419

Yield – g/tonne

Jun-05

6.02

5.84

4.73

5.52

Mar-05

6.25

6.56

5.16

5.89

Cash operating costs – R/kg

Jun-05

78 462

99 609

111 162

91 455

Mar-05

76 518

91 828

107 805

88 225

Cash operating costs – R/tonne

Jun-05

472

582

526

505

Mar-05

479

602

556

520

Working revenue (R’000)

Jun-05

816 768

172 999

468 577

1 458 344

Mar-05

818 078

176 389

459 366

1 453 833

Cash operating costs (R’000)

Jun-05

711 887

192 544

575 931

1 480 362

Mar-05

751 329

194 583

590 878

1 536 790

Cash operating profit (R’000)

Jun-05

104 881

(19 545)

(107 354)

(22 018)

Mar-05

66 749

(18 194)

(131 512)

(82 957)

Capital expenditure (R’000)

Jun-05

37 237

95 065

4 706

137 008

Mar-05

34 933

74 870

1 809

111 612

Quality Ounces – Evander Shafts, Randfontein Cooke Shafts, Target, Tshepong, Masimong
Growth Projects – Doornkop shaft and South Reef Project, Elandsrand shaft and New Mine Project,
Phakisa shaft, Tshepong Decline Project

Leveraged Ounces – Deelkraal, Bambanani, Joel, Eland, Kudu/Sable, West, Nyala, St Helena,
Harmony 2, Merriespruit 1 and 3, Unisel, Brand 3 and 5, Saaiplaas 3, Evander 9, Orkney 2 and 4,
Welkom 1

OPERATING AND FINANCIAL RESULTS

(Rand/metric) (unaudited)

South Africa

Australia

Harmony

Surface

Total

Ore milled – t’000

Jun-05

1 415

4 349

849

5 198

Mar-05

1 533

4 488

975

5 463

Gold produced – kg

Jun-05

1 536

17 723

2 163

19 886

Mar-05

1 564

18 983

2 143

21 126

Yield – g/tonne

Jun-05

1.09

4.08

2.55

3.83

Mar-05

1.02

4.23

2.20

3.87

Cash operating

Jun-05

70 815

89 665

69 398

87 461

costs – R/kg

Mar-05

76 187

87 233

73 729

85 863

Cash operating

Jun-05

365

177

335

costs – R/tonne

Mar-05

369

162

332

Working revenue

Jun-05

135 789

1 594 133

190 463

1 784 596

(R’000)

Mar-05

128 104

1 581 937

177 293

1 759 230

Cash operating

Jun-05

108 772

1 589 134

150 108

1 739 242

costs (R’000)

Mar-05

119 157

1 655 947

158 002

1 813 949

Cash operating

Jun-05

27 017

4 999

40 355

45 354

profit (R’000)

Mar-05

8 947

(74 010)

19 291

(54 719)

Capital expenditure

Jun-05

137 008

65 514

202 522

(R’000)

Mar-05

111 612

44 590

156 202

TOTAL OPERATIONS – QUARTERLY FINANCIAL RESULTS

(Rand/metric) (unaudited)

Quarter ended

Quarter ended

30 June

31 March

30 June

2005

2005

2004

Ore milled

t’000

5 198

5 463

7 972

Gold produced

19 886

21 126

26 373

Gold price received

R/kg

89 711

83 273

81 543

Cash operating costs

R/kg

87 461

85 863

83 173

R million

R million

Gold sales

1 784

1 759

2 151

Cash operating costs

1 723

1 859

2 194

(Loss)/income for insurance claims

(16)

–

Cash operating profit/(loss)

(55)

(43)

Other income – net

Employment termination and restructuring costs

(217)

(171)

(184)

Corporate, marketing, new business expenditure

(81)

(46)

(32)

Exploration expenditure

(16)

(13)

(21)

Income from associates

–

(Loss)/profit on sale of listed investments and subsidiaries

(73)

(111)

Dilution of investment in ARM Limited

–

(163)

(Loss)/profit on sale of investment in Goldfields

(372)

–

Mark-to-market of listed investments

–

Interest paid

(134)

(96)

(99)

Depreciation and amortisation

(177)

(197)

(280)

Provision for rehabilitation costs

(6)

(14)

(Loss)/gain on financial instruments

(7)

(110)

(Loss)/gain on foreign exchange

(18)

Diminution in carrying value of ARM investment

(337)

–

Impairment of assets

–

(1 513)

–

Impairment of investments

–

(75)

Provision for post-retirement benefits

(57)

–

Loss before tax

(1 383)

(2 135)

(810)

Current tax – (expense)/benefit

(110)

(5)

Deferred tax – benefit

352

443

203

Net loss before minority interests

(1 141)

(1 697)

(577)

Minority interests

–

Net loss

(1 141)

(1 697)

(559)

TOTAL OPERATIONS – QUARTERLY FINANCIAL RESULTS

(Rand/metric) (unaudited)

Quarter ended

Quarter ended

30 June

31 March

30 June

2005

2005

2004

Loss per share – cents *
– Basic loss

(291)

(432)

(191)

– Basic loss before impairment

(291)

(131)

(165)

– Headline loss

(102)

(107)

(131)

– Fully diluted loss ** ***

(291)

(432)

(191)

Dividends per share – (cents)
– Interim

–

– Proposed final

–

* Calculated on weighted average number of shares in issue at quarter end June 2005: 392.2 million (March 2005:

393.2 million) (June 2004: 292.9 million).

** Calculated on weighted average number of diluted shares in issue at quarter end June 2005: 392.2 million

(March 2005: 392.9 million) (June 2004: 293.2 million).

*** The effect of the share options is anti-dilutive.

Reconciliation of headline loss:
Net loss

(1 141)

(1 697)

(559)

Adjustments:
– Profit on sale of assets

(26)

(18)

(44)

– Mark-to-market of listed investments

–

– Profit on disposal of Kalplats

–

(39)

– Profit on disposal of Bissett

–

(1)

– Loss on sale and dilution of investment in ARM Limited

103

111

163

– Profit on disposal of investment in Bendigo NL

(30)

–

– Loss on disposal of investment in Goldfields

372

–

– Loss on disposal of subsidiaries

–

– Amortisation of goodwill

–

– Impairment of fixed assets – net of tax

(19)

1 182

–

– Impairment of Bendigo

–

– Diminution in carrying value of listed investments

337

–

Headline loss

(399)

(422)

(384)

TOTAL OPERATIONS – ANNUAL FINANCIAL RESULTS

(Rand/metric)

Year ended

Year ended

30 June

30 June

2005

2004

(unaudited)

(unaudited)

Ore milled

t’000

23 283

30 781

Gold produced

92 230

103 127

Gold price received

R/kg

84 799

85 219

Cash operating costs

R/kg

81 839

79 599

R million

R million

(reviewed)

(audited)

Gold sales

7 821

8 789

Cash operating costs

7 577

8 209

Income from insurance claims

–

Cash operating profit

273

580

Other income – net

107

266

Employment termination and restructuring costs

(638)

(224)

Corporate, marketing, new business expenditure

(206)

(184)

Exploration expenditure

(73)

(103)

Income from associates

–

Profit on sale of listed investments

–

(Loss)/profit on sale of subsidiary

(1)

Profit on sale and loss on dilution of investment in associate

–

371

Loss on sale and dilution of investment in ARM Limited

(183)

–

Loss on sale of investment in Goldfields

(372)

–

Mark-to-market of listed investments

–

Interest paid

(434)

(412)

Depreciation and amortisation

(829)

(933)

(Provision)/reversal for rehabilitation costs

(48)

Gain/(loss) on financial instruments

(223)

Gain/(loss) on foreign exchange

–

Diminution of carrying value of ARM investment

(337)

–

Impairment of fixed assets

(1 513)

–

Impairment of investments

–

(88)

Provision for post-retirement benefits

(57)

–

Loss before tax

(4 258)

(835)

Current tax – expense

(76)

(41)

Deferred tax – benefit

879

346

Net loss before minority interests

(3 455)

(530)

Minority interests

–

Net loss

(3 455)

(523)

TOTAL OPERATIONS – ANNUAL FINANCIAL RESULTS

(Rand/metric)

Year ended

Year ended

30 June

30 June

2005

2004

R million

R million

(reviewed)

(audited)

Loss per share – cents *
– Basic loss

(955)

(206)

– Headline loss

(408)

(308)

– Fully diluted loss ** ***

(955)

(205)

Dividends per share – (cents)
– Interim

–

– Proposed final

–

Prepared in accordance with International Financial Reporting Standards.

* Calculated on weighted average number of shares in issue at year ended June 2005: 361.8 million (June 2004:

253.6 million).

** Calculated on weighted average number of diluted shares in issue year ended June 2005: 361.8 million (June 2004:

254.9 million).

*** The effect of the share options is anti-dilutive.

Reconciliation of headline loss:
Net loss

(3 455)

(523)

Adjustments:
– Profit on sale of assets

(78)

(116)

– Net profit on sale of listed investment

–

(31)

– Net profit/(loss) on sale of subsidiary

(22)

– Net profit on sale and loss on dilution of investment in associate

–

(282)

– Loss on dilution and disposal of investment in ARM Limited

213

–

– Profit on disposal of investment in Bendigo NL

(30)

–

– Loss on disposal of investment in Goldfields

372

–

– Amortisation of goodwill

–

105

– Impairment of fixed assets – net of tax

1 163

–

– Impairment of Bendigo and other investments

–

– Diminution in carrying value of listed investments

337

–

Headline loss

(1 477)

(781)

ABRIDGED BALANCE SHEET AT 30 JUNE 2005

(Rand)

At 30 June

At 31 March

At 30 June

2005

2005

2004

R million

R million

(reviewed)

(unaudited)

(audited)

ASSETS
Non-current assets
Property, plant and equipment

21 177

21 058

22 244

Intangible assets

2 268

2 268

2 267

Investments

4 154

6 531

2 612

Investments in associates

–

124

27 599

29 857

27 247

Current assets
Inventories

578

571

531

Receivables

632

614

859

Cash and cash equivalents

1 830

(233)

1 414

3 040

952

2 804

Total assets

30 639

30 809

30 051

EQUITY AND LIABILITIES
Share capital and reserves
Issued capital

25 289

25 325

20 889

Fair value and other reserves

(671)

(1 501)

(1 186)

Retained (loss)/earnings

(2 473)

(1 333)

1 078

22 145

22 491

20 781

Non-current liabilities
Long-term borrowings

2 422

2 944

2 790

Net deferred taxation liabilities

1 918

2 141

2 659

Net deferred financial liabilities

386

452

570

Long-term provisions

940

847

798

5 666

6 384

6 817

Current liabilities
Payables and accrued liabilities

1 514

1 336

1 806

Short-term portion of long-term borrowings

1 333

607

579

Income and mining taxes

(27)

(18)

Shareholders for dividends

2 828

1 934

2 453

Total equity and liabilities

30 639

30 809

30 051

Number of ordinary shares in issue

393 341 194

393 231 894

320 741 577

Net asset value per share (cents)

5 625

5 720

6 479

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

The primary reporting segment for the group is by business segment. As there is only one business segment, being mining, extraction and
production of gold, the relevant disclosures have been given in the abridged balance sheet and condensed income statement.

Audit review
The year end results have been reviewed in terms of Rule 3.23 of the Listing Requirement 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.

OPERATING AND FINANCIAL RESULTS

(US$/imperial) (unaudited)

Underground production – South Africa

Leve-

Quality

Growth

raged

Ounces

Projects

Ounces

Sub total

Ore milled – t’000

Jun-05

1,663

365

1,207

3,235

Mar-05

1,731

356

1,172

3,259

Gold produced – oz

Jun-05

291,702

62,147

166,572

520,421

Mar-05

315,688

68,140

176,226

560,054

Yield – oz/t

Jun-05

0.18

0.17

0.14

0.16

Mar-05

0.18

0.19

0.15

0.17

Cash operating costs – $/oz

Jun-05

381

483

539

444

Mar-05

397

476

559

457

Cash operating costs – $/t

Jun-05

Mar-05

Working revenue ($’000)

Jun-05

127,413

26,987

73,096

227,496

Mar-05

136,365

29,402

76,571

242,338

Cash operating costs ($’000)

Jun-05

111,052

30,036

89,843

230,931

Mar-05

125,238

32,435

98,493

256,166

Cash operating profit ($’000)

Jun-05

16,361

(3,049)

(16,747)

(3,435)

Mar-05

11,127

(3,033)

(21,922)

(13,828)

Capital expenditure ($’000)

Jun-05

5,809

14,830

734

21,373

Mar-05

5,823

12,480

302

18,605

Quality Ounces – Evander Shafts, Randfontein Cooke Shafts, Target, Tshepong, Masimong

Growth Projects – Doornkop shaft and South Reef Project, Elandsrand shaft and New Mine Project, Phakisa shaft,
Tshepong Decline Project

Leveraged Ounces – Bambanani, Joel, Kudu/Sable, West, Nyala, St Helena, Harmony 2, Merriespruit 1 and 3, Unisel,
Brand 3 and 5, Saaiplaas 3, Evander 9, Orkney 2 and 4, Welkom 1

OPERATING AND FINANCIAL RESULTS

(US$/imperial) (unaudited)

South Africa

Australia

Harmony

Surface

Total

Ore milled – t’000

Jun-05

1,560

4,795

936

5,731

Mar-05

1,690

4,949

1,075

6,024

Gold produced – oz

Jun-05

49,383

569,804

69,542

639,346

Mar-05

50,294

610,348

68,903

679,251

Yield – oz/t

Jun-05

0.03

0.12

0.07

0.11

Mar-05

0.03

0.12

0.06

0.11

Cash operating

Jun-05

344

435

337

424

costs – $/oz

Mar-05

395

452

382

445

Cash operating

Jun-05

costs – $/t

Mar-05

Working revenue

Jun-05

21,183

248,679

29,712

278,391

($’000)

Mar-05

21,354

263,692

29,553

293,245

Cash operating

Jun-05

16,968

247,899

23,416

271,315

costs ($’000)

Mar-05

19,862

276,028

26,337

302,365

Cash operating

Jun-05

4,215

780

6,296

7,076

profit ($’000)

Mar-05

1,492

(12,336)

3,216

(9,120)

Capital expenditure

Jun-05

21,373

10,220

31,593

($’000)

Mar-05

18,605

7,433

26,038

TOTAL OPERATIONS – QUARTERLY FINANCIAL RESULTS

(US$/imperial) (unaudited)

Quarter ended

Quarter ended

30 June

31 March

30 June

2005

2005

2004

Ore milled

t’000

5,731

6,024

8,791

Gold produced

639,346

679,251

847,908

Gold price received

$/oz

435

431

384

Cash operating costs

$/oz

424

445

392

$ million

$ million

Gold sales

278

293

326

Cash operating costs

268

310

333

(Loss)/income from insurance claims

(3)

–

Cash operating profit/(loss)

(9)

(7)

Other income – net

Employment termination and restructuring costs

(34)

(29)

(28)

Corporate, marketing, new business expenditure

(13)

(8)

(5)

Exploration expenditure

(2)

(2)

(3)

Income from associates

–

(Loss)/profit on sale of listed investments and subsidiaries

(11)

(19)

Dilution of investment in ARM Limited

–

(25)

(Loss)/profit on sale of Goldfields

(58)

–

Mark-to-market of listed investments

–

Interest paid

(21)

(16)

(15)

Depreciation and amortisation

(28)

(33)

(42)

Provision for rehabilitation costs

(1)

(2)

(Loss)/gain on financial instruments

(1)

(17)

(Loss)/gain on foreign exchange

(3)

Diminution in carrying value of ARM investment

(53)

–

Impairment of assets

–

(252)

–

Impairment of investments

–

(11)

Provision for post-retirement benefits

(9)

–

Loss before tax

(218)

(355)

(123)

Current tax – (expense)/benefit

(17)

(1)

Deferred tax – benefit

Net loss before minority interests

(180)

(282)

(87)

Minority interests

–

Net loss

(180)

(282)

(85)

TOTAL OPERATIONS – QUARTERLY FINANCIAL RESULTS

(US$/imperial) (unaudited)

Quarter ended

Quarter ended

30 June

31 March

30 June

2005

2005

2004

Loss per share – cents *
– Basic loss

(45)

(72)

(29)

– Basic loss before impairment

(45)

(22)

(25)

– Headline loss

(16)

(18)

(20)

– Fully diluted loss ** ***

(45)

(72)

(29)

Dividends per share – (cents)
– Interim

–

– Proposed final

–

Currency conversion rates average for the quarter: June 2005: US$1=R6.41 (March 2005: US$1=R6.00) (June 2004:
US$1=R6.60).

* Calculated on weighted average number of shares in issue at quarter end June 2005: 392.2 million (March 2005:

393.2 million) (June 2004: 292.9 million).

** Calculated on weighted average number of diluted shares in issue at quarter end June 2005: 392.2 million

(March 2005: 392.9 million) (June 2004: 293.2 million).

*** The effect of the share options is anti-dilutive.

Reconciliation of headline loss:
Net loss

(180)

(282)

(85)

Adjustments:
– Profit on sale of assets

(4)

(3)

(7)

– Mark-to-market of listed investments

–

– Profit on disposal of Kalplats

–

(6)

– Loss on sale and dilution of investment in ARM Limited

– Profit on disposal of investment in Bendigo NL

(5)

–

– Loss on disposal of investment in Goldfields

–

– Amortisation of goodwill

–

– Impairment of fixed assets – net of tax

(3)

197

–

– Impairment of investment in Bendigo

–

– Diminution in carrying value of listed investments

–

Headline loss

(64)

(69)

(59)

TOTAL OPERATIONS – ANNUAL FINANCIAL RESULTS

(US$/imperial) (unaudited)

Year ended

Year ended

30 June

30 June

2005

2004

Ore milled

t’000

25,675

33,943

Gold produced

2,965,250

3,315,595

Gold price received

$/oz

427

385

Cash operating costs

$/oz

412

360

$ million

$ million

Gold sales

1,265

1,276

Cash operating costs

1,226

1,191

Income from insurance claim

–

Cash operating profit

Other income – net

Employment termination and restructuring costs

(103)

(33)

Corporate, marketing, new business expenditure

(33)

(27)

Exploration expenditure

(12)

(15)

Income from associates

–

Profit on sale of listed investments

Loss on sale and dilution of investment in ARM Limited

(30)

–

Loss on sale of investment in Goldfields

(60)

–

Mark-to-market of listed investments

–

Interest paid

(70)

(60)

Depreciation and amortisation

(134)

(135)

(Provision)/reversal for rehabilitation costs

(8)

Gain/(loss) on financial instruments

(32)

Gain on foreign exchange

–

Diminution in carrying value of ARM investment

(55)

–

Impairment of fixed assets

(245)

–

Impairment of investments

–

(13)

Provision for post-retirement benefits

(9)

–

Loss before tax

(688)

(120)

Current tax – expense

(12)

(6)

Deferred tax – benefit

142

Net loss before minority interests

(558)

(76)

Minority interests

–

Net loss

(558)

(75)

TOTAL OPERATIONS – ANNUAL FINANCIAL RESULTS

(US$/imperial) (unaudited)

Year ended

Year ended

30 June

30 June

2005

2004

Loss per share – cents *
– Basic loss

(154)

(30)

– Headline loss

(66)

(45)

– Fully diluted loss ** ***

(154)

(30)

Dividends per share – (cents)
– Interim

–

– Proposed final

–

Currency conversion rates average for the year ended June 2005: US$1=R6.18 (June 2004: US$1=R6.89).

* Calculated on weighted average number of shares in issue at year ended June 2005: 361.8 million (June 2004:

253.6 million).

** Calculated on weighted average number of diluted shares in issue year ended June 2005: 361.8 million (June 2004:

254.9 million).

*** The effect of the share options is anti-dilutive.

Reconciliation of headline (loss)/earnings:
Net loss

(558)

(75)

Adjustments:
– Profit on sale of assets

(13)

(17)

– Net profit on sale of listed investment

–

(4)

– Net profit on sale of subsidiary

–

(3)

– Net profit on sale and loss on dilution of investment in associate

–

(41)

– Loss on dilution and disposal of ARM Ltd

–

– Profit on disposal of Bendigo NL

(5)

–

– Loss on disposal of Goldfields

–

– Amortisation of goodwill

–

– Impairment of fixed assets – net of tax

188

–

– Impairment of Bendigo and other investments

–

– Diminution in carrying value of listed investments

–

Headline loss

(239)

(112)

ABRIDGED BALANCE SHEET AT 30 JUNE 2005

(US$)

At 30 June

At 31 March

At 30 June

2005

2005

2004

US$ million

US$ million

(unaudited)

(unaudited)

ASSETS
Non-current assets
Property, plant and equipment

3,176

3,388

3,570

Intangible assets

340

365

364

Investments

623

1,051

419

Investments in associates

–

4,139

4,804

4,373

Current assets
Inventories

Receivables

138

Cash and cash equivalents

275

(38)

227

457

153

450

Total assets

4,596

4,957

4,823

EQUITY AND LIABILITIES
Share capital and reserves
Issued capital

3,793

4,074

3,353

Fair value and other reserves

(101)

(241)

(190)

Retained (loss)/earnings

(371)

(214)

173

3,321

3,619

3,336

Non-current liabilities
Long-term borrowings

363

474

448

Net deferred taxation liabilities

288

344

426

Net deferred financial liabilities

Long-term provisions

141

136

128

850

1,027

1,094

Current liabilities
Payables and accrued liabilities

227

214

289

Short-term portion of long-term borrowings

200

Income and mining taxes

(4)

(3)

Shareholders for dividends

424

311

393

Total equity and liabilities

4,595

4,957

4,823

Number of ordinary shares in issue

393,341,194

393,231,894

320,741,577

Net asset value per share (US cents)

844

920

1,040

Basis of accounting
The unaudited results for the quarter have been prepared on the International Financial Reporting Standards (IFRS) basis. These
consolidated quarterly statements are prepared in accordance with IAS 34, Interim Financial Reporting. The accounting policies are
consistent with those applied in the previous financial year.

Balance sheet converted at conversion rate of US$1 = R6.67 (March 2005: R6.22) (June 2004: R6.23).

CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2005

Issued

Fair value

share

and other

Retained

capital

reserves

earnings

Total

(Reviewed)

R million

Balance at 1 July 2004

20 889

(1 186)

1 078

20 781

Issue of share capital – net of expenses

4 400

–

4 400

Currency translation adjustment and other

–

515

–

511

Net loss

–

(3 455)

Dividends paid

–

(96)

Balance at 30 June 2005

25 289

(671)

(2 473)

22 145

Balance at 1 July 2003

6 874

(242)

1 996

8 628

Issue of share capital

14 015

–

14 015

Currency translation adjustment and other

–

(944)

–

(944)

Net loss

–

(523)

Dividends paid

–

(395)

Balance at 30 June 2004

20 889

(1 186)

1 078

20 781

Issued

Fair value

share

and other

Retained

capital

reserves

earnings

Total

(Unaudited)

US$ million

Balance at 1 July 2004

3,133

(178)

162

3,117

Issue of share capital – net of expenses

660

–

660

Currency translation adjustment and other

–

Net loss

–

(519)

Dividends paid

–

(14)

Balance at 30 June 2005

3,793

(101)

(371)

3,321

Balance at 1 July 2003

1,104

(39)

321

1,386

Issue of share capital

2,250

–

2,250

Currency translation adjustment and other

–

(151)

–

(151)

Net loss

–

(85)

Dividends paid

–

(63)

Balance at 30 June 2004

3,354

(190)

173

3,337

Balances translated at closing rates of: June 2005: US$1 = R6.67 (June 2004: US$1 = R6.23).

SUMMARISED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2005

(unaudited)

12 months

ended

30 June

2004

2005

2004

US$ million

R million

Cash flow from operating activities

(186) Cash (utilised in)/generated by operations

(1 151)

172

Interest and dividends received

149

207

(46)

(44) Interest paid

(269)

(319)

(84)

(9) Income and mining taxes paid

(55)

(578)

(75)

(215) Cash utilised in operating activities

(1 326)

(518)

Cash flow from investing activities

106

Cash held by subsidiaries at acquisition

730

148

397

Net proceeds of listed investments

2 454

1 022

(99)

(109) Net additions to property, plant and equipment

(672)

(680)

(94)

(2) Other investing activities

(12)

(651)

287

Cash generated by investing activities

1 775

421

Cash flow from financing activities

Long-term loans raised/(repaid)

191

388

(10) Ordinary shares issued – net of expenses

(60)

(57)

(16) Dividends paid

(97)

(395)

Cash (utilised in)/generated by financing activities

(19) Foreign currency translation adjustments

(67)

(222)

Net increase/(decrease) in cash and equivalents

416

(273)

225

217

Cash and equivalents – 1 July

1 414

1 687

227

275

Cash and equivalents – 30 June

1 830

1 414

Operating activities translated at average rates of: June 2005: US$1 = R6.18 (June 2004: US$1 = R6.89).

Closing balance translated at closing rates of: June 2005: US$1 = R6.67 (June 2004: US$1 = R6.23).

SUMMARISED CASH FLOW STATEMENT
FOR THE THREE MONTHS ENDED 30 JUNE 2005

(unaudited)

Three

months

ended

31 March

30 June

31 March

2005

US$ million

R million

Cash flow from operating activities

(87)

(38) Cash utilised in operations

(237)

(532)

Interest and dividends received

(12)

(12) Interest paid

(77)

(72)

(8)

(1) Income and mining taxes paid

(4)

(51)

(100)

(44) Cash utilised in operating activities

(273)

(614)

Cash flow from investing activities

–

Cash held by subsidiary at acquisition

–

382

Net proceeds on disposal of listed investments

2 362

149

(21)

(22) Net additions to property, plant and equipment

(136)

(129)

–

(2) Other investing activities

(13)

–

359

Cash generated by investing activities

2 218

Cash flow from financing activities

Long-term loans raised/(repaid)

110

–

(4) Ordinary shares issued – net of expenses

(24)

–

Dividends paid

(2)

–

Cash generated by/(utilised in) financing activities

(4)

(16) Foreign currency translation adjustments

(91)

313

Net increase/(decrease) in cash and equivalents

2 063

(529)

(38) Cash and equivalents – beginning of quarter

(233)

296

(38)

275

Cash and equivalents – end of quarter

1 830

(233)

Operating activities translated at average rates of: June 2005 quarter: US$1 = R6.41 (March 2005 quarter:
US$1 = R6.00).

Closing balance translated at closing rates of: June 2005: US$1 = R6.67 (March 2005: US$1 = R6.22).

RECONCILIATION BETWEEN CASH OPERATING PROFIT/(LOSS) AND CASH
(UTILISED)/GENERATED BY OPERATIONS – PERIOD ENDED 30 JUNE 2005

Quarter

Year to

ended

Year to

30 June

31 March

30 June

2005

2004

R million

Cash operating profit/(loss)

273

(55)

580

Other cash items per income statement:

Other income net

126

207

Employment termination and restructuring costs

(638)

(217)

(171)

(224)

Corporate, administration and other expenditure

(206)

(81)

(46)

(184)

Exploration expenditure

(73)

(16)

(13)

(103)

Provision for rehabilitation costs

(6)

(2)

(1)

(11)

Cash flow statement adjustments:

Cost of Avgold currency hedge and close out
of hedges

(212)

(66)

(52)

(133)

Profit on sale of mining assets

(78)

(26)

(18)

(116)

Interest and dividends received

(149)

(45)

(41)

(207)

Other non-cash items

(57)

(1)

(16)

(41)

Effect of changes in operating working capital items:

Receivables

235

(11)

(231)

175

Inventories

(45)

(5)

(21)

(5)

Accounts payable and accrued liabilities

(321)

150

103

234

Cash (utilised)/generated by operations

1 151

(237)

(532)

172

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED 30 JUNE 2005

Commodity contracts

The Harmony Group’s outstanding commodity contracts against future production, by type at 30 June 2005 are
indicated below. The total net delta of the hedge book at 30 June 2005 was 484,977 oz (15,085 kg).

30 June

2006

2007

2008

2009

Total

AUSTRALIAN DOLLAR GOLD
Forward contracts

Kilograms

3,359

4,572

3,110

14,152

Ounces

108,000

147,000

100,000

455,000

A$ per oz

510

515

518

515

Calls options sold

Kilograms

933

311

–

1,244

Ounces

30,000

10,000

–

40,000

A$ per oz

552

562

–

554

Total commodity contracts Kilograms

4,292

4,883

3,110

15,396

Ounces

138,000

157,000

100,000

495,000

Total net gold**

Delta (kg)

4,155

4,790

3,081

3,058

15,084

Delta (oz)

133,593

153,999

99,068

98,317

484,977

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 R252 million (negative US$38 million) at 30 June 2005 (at
31 March 2005: R225 million or US$36 million). The values at 30 June 2005 were based on a gold price of US$435
(A$571) per ounce, exchange rates of US$1/R6,6670 and A$1/US$0.7622 and prevailing market interest rates and
volatilities at that date. These valuations were provided by independent risk and treasury management experts.

At 29 July 2005, the marked-to-market value of the hedge book was a negative R222 million (negative
US$34 million), based on a gold price of US$427 (A$563) per ounce, exchange rates of US$1/R6,56 and
A$1/US$0,7579 and prevailing market interest rates and volatilities at that time.

These marked-to-market valuations are not predictive of the future value of the hedge position, nor of the future
impact on the revenue of the company. The valuation represents the cost of buying all hedge contracts at the time
of the valuation, at market prices and rates available at the time.

** The Delta of the hedge position indicated above, is the equivalent gold position that would have the same

marked-to-market sensitivity for a small change in the gold price. This is calculated using the Black-Scholes
option formula with the ruling market prices, interest rates and volatilities at 30 June 2005.

Gold lease rates

During the June quarter, Harmony closed out the remaining gold lease rate swaps which were inherited through
the acquisition of Hill 50.

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 ranging 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 R24 million (US$4 million) at 30 June 2005, based on the prevailing interest rates and
volatilities at the time.

Currency contracts

31 December

2005

Total

Forward exchange contracts

US$ million

(Buy US$, sell ZAR at the
agreed exchange rate)

Average strike ZAR/US$

9.54

Forward exchange call contracts sold

US$ million

(Sell US$, buy ZAR at the
agreed exchange rate)

Average strike ZAR/US$

9.54

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 R108 million (US$16 million) at 30 June 2005. These values
were based upon an exchange rate of US$1/R6.6670 and prevailing market interest rates at the time. Independent
risk and treasury management experts provided these valuations.

Z B Swanepoel

N V Qangule

Chief Executive

Financial Director

Virginia
5 August 2005

DEVELOPMENT RESULTS

(metric)

Quarter ended 31 March 2005

Quarter ended 30 June 2005

Channel Channel

Reef Sampled

width

value

Gold

Reef Sampled

width

value

Gold

metres

(cm’s)

(g/t) (cmg/t)

metres

(cm’s)

(g/t) (cmg/t)

Randfontein

VCR Reef

844

845

33.67

2,123

1,293

1,047

43.66

2,956

UE1A

990

746

116

11.30

1,316

1,155

1,083

122

16.24

1,981

E8 Reef

192

163

218

3.83

834

140

187

6.30

1,178

Kimberley Reef

606

417

173

4.98

864

455

451

164

5.59

915

South Reef

All Reefs

2,632

2,171

114

13.20

1,507

3,043

2,721

111

19.20

2,138

Free State

Basal

989

934

12.29

980

999

814

112

11.20

1,257

Leader

594

528

155

5.21

805

586

460

185

3.61

668

A Reef

404

372

131

4.09

536

570

538

113

2.87

324

Middle

117

144

186

7.68

1,427

211

140

127

19.12

2,425

B Reef

479

453

15.59

1,325

383

377

20.27

1,561

All Reefs

2,583

2,431

111

8.68

965

2,749

2,329

122

8.56

1,045

Evander

Kimberley Reef

2,038

1,758

14.74

1,142

2,022

1,869

10.59

860

Elandskraal

VCR Reef

166

144

18.78

1,351

395

394

16.05

1,425

Orkney

Vaal Reef

111

20.38

2,266

VCR

All Reefs

111

20.38

2,266

Target

Elsburg

525

324

252

7.60

1,914

727

513

211

6.86

1,445

Freegold JV

Basal

1,457

1,378

28.57

1,594

973

977

33.49

1,424

Beatrix

305

297

15.49

1,343

260

246

140

9.14

1,282

Leader

173

8.16

1,411

B Reef

3.40

316

All Reefs

1,785

1,722

24.23

1,529

1,233

1,223

22.44

1,396

DEVELOPMENT RESULTS

(imperial)

Quarter ended 31 March 2005

Quarter ended 30 June 2005

Channel Channel

Reef Sampled

width

value

Gold

Reef Sampled

width

value

Gold

feet

feet (inches)

(oz/t) (in.oz/t)

feet

feet (inches)

(oz/t) (in.oz/t)

Randfontein

VCR Reef

2,770

2,772

0.98

4,243

3,435

1.26

UE1A

3,249

2,448

0.33

3,790

3,553

0.48

E8 Reef

629

535

0.12

460

459

0.19

Kimberley Reef

1,987

1,368

0.15

1,494

1,480

0.17

South Reef

0.00

All Reefs

8,635

7,123

0.38

9,987

8,927

0.57

Free State

Basal

3,244

3,064

0.36

3,276

2,671

0.33

Leader

1,950

1,732

0.15

1,923

1,509

0.11

A Reef

1,325

1,220

0.12

1,871

1,765

0.08

Middle

384

472

0.22

692

459

0.56

B Reef

1,572

1,486

0.46

1,258

1,237

0.60

All Reefs

8,475

7,974

0.25

9,020

7,641

0.25

Evander

Kimberley Reef

6,686

5,768

0.44

6,634

6,132

0.31

Elandskraal

VCR Reef

546

472

0.55

1,297

1,293

0.47

Orkney

Vaal Reef

217

299

223

0.59

VCR

All Reefs

217

299

223

0.59

Target

Elsburg

1,722

1,063

0.22

2,385

1,683

0.20

Freegold JV

Basal

4,780

4,521

0.83

3,193

3,205

0.96

Beatrix

1,000

974

0.45

853

807

0.27

Leader

0.24

B Reef

0.10

All Reefs

5,855

5,649

0.70

4,046

4,012

0.67

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*, J A Chissano*

†

, F Dippenaar, V N Fakude*, T S A Grobicki

Dr D S Lushaba*, R P Menell*, M Motloba*, N V Qangule, C M L Savage*
(*non-executive) (

†

Mozambique)

Investor Relations

Brenton Saunders
Executive – Investor Relations
Telephone: +27 11 684 0146
Fax:

+27 11 684 0188

Cell:

+27 (0) 83 607 4060

E-mail:

brenton.saunders@harmony.co.za

Vusi Magadana
Investor Relations Officer
Telephone: +27 11 684 0149
Fax:

+27 11 684 0188

Cell:

+27 (0) 72 157 5986

E-mail:

vusi.magadana@harmony.co.za

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

+27 11 411 2398

Cell:

+27 (0) 82 888 1242

E-mail:

mvanderwalt@harmony.co.za

South African Share Transfer Secretaries

Ultra Registrars (Pty) Ltd
PO Box 4844
Johannesburg, 2000
Telephone: +27 11 832 2652
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 Limited

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

NOTES

PRINTED BY INCE (PTY) LTD

NOTES

Important Information

In connection with the proposed merger, Harmony has filed with the United States Securities and Exchange Commission (“SEC”), a registration statement on Form F-4, which includes a preliminary prospectus and related exchange offer materials, to register the Harmony ordinary shares (including Harmony ordinary shares represented by Harmony American Depository Shares (“ADSs”)) to be issued in exchange for Gold Fields ordinary shares held by holders located in the United States of America (“United States” or “US”) and for Gold Fields ADSs held by holders wherever located, as well as a Statement on Schedule TO. Investors and holders of Gold Fields securities are strongly advised to read the registration statement and the preliminary prospectus, the related exchange offer materials and the final prospectus (when available), the Statement on Schedule TO and any other relevant documents filed with the SEC, as well as any amendments and supplements to those documents, because they contain important information. Investors and holders of Gold Fields securities may obtain free copies of the registration statement, the preliminary and final prospectus and related exchange offer materials and the Statement on Schedule TO, as well as other relevant documents filed with the SEC, at the SEC’s web site at www.sec.gov
and will receive information at an appropriate time on how to obtain transaction-related documents for free from Harmony or its duly designated agent.

This communication is for information purposes only. It shall not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Gold Fields or an offer to sell or exchange or the solicitation of an offer to buy or exchange any securities of Harmony in the US, nor shall there be any sale or exchange of securities in any jurisdiction in which such offer, solicitation or sale or exchange would be unlawful prior to the registration or qualification under the laws of such jurisdiction. The distribution of this communication may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this communication should inform themselves of and observe these restrictions. The solicitation of offers to buy Gold Fields ordinary shares (including Gold Fields ordinary shares represented by Gold Fields ADSs) in the US will only be made pursuant to a prospectus and related offer materials that Harmony is sending to holders of Gold Fields securities. The Harmony ordinary shares (including Harmony ordinary shares represented by Harmony ADSs) may not be sold, nor may offers to buy be accepted, in the US prior to the time the registration statement becomes effective. No offering of securities shall be made in the US except by means of a prospectus meeting the requirements of Section 10 of the United States Securities Act of 1933, as amended.

Forward-looking Statements

This quarterly report contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 with respect to Harmony’s financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters. Statements in this quarterly report that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words “expect,” “anticipates,”“believes,”“intends,”“estimates” and similar expressions. These statements are only predictions. All forward-looking statements involve a number of risks, uncertainties and other factors, and we cannot assure you that such statements will prove to be correct. Risks, uncertainties and other factors could cause actual events or results to differ from those expressed or implied by the forward-looking statements.

These forward-looking statements, including, among others, those relating to the future business prospects, revenues and income of Harmony, wherever they may occur in this quarterly report and the exhibits to this quarterly report, are necessarily estimates reflecting the best judgment of the senior management of Harmony and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this quarterly report. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation:

• overall economic and business conditions in South Africa and elsewhere;

• the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions;

• decreases in the market price of gold;

• the occurrence of hazards associated with underground and surface gold mining;

• the occurrence of labor disruptions;

• availability, terms and deployment of capital;

• changes in government regulation, particularly mining rights and environmental regulation;

• fluctuations in exchange rates;

• currency devaluations and other macroeconomic monetary policies; and

• socio-economic instability in South Africa and regionally.

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:

5 August, 2005

Harmony Gold Mining Company Limited

By:

/s/ Frank Abbott

Name: Frank Abbott
Title: Chief Financial Officer