##### 



As
filed with the Securities and Exchange Commission on November 2, 2005
   SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 Form 20-F
 ANNUAL REPORT PURSUANT TO SECTION 13 OF THE
SECURITIES EXCHANGE ACT OF 1934,
 for the fiscal year ended June 30, 2005
 Commission File Number: 001-31545
 Harmony Gold Mining Company Limited
 (Exact name of registrant as specified in its charter)
 Republic of South Africa  (Jurisdiction of incorporation or organization)
 
 Suite No. 1
Private Bag X1
Melrose Arch, 2076
South Africa  (Address of principal executive offices)
 
 Securities registered or to be registered pursuant to Section 12(b) of the Act: None
 Securities registered or to be registered pursuant to Section 12(g) of the Act:
 Ordinary shares, with nominal value Rand 50 cents per share*
 (Title of Class)
 each representing one ordinary share
 (Title of Class)
 
 Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
 The number of outstanding shares of each of the issuers classes of capital or common stock as of
the close of the last full fiscal year covered by this Annual Report was:
  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days:
 Yes þ No o
 Indicate by check mark which financial statement item the registrant has elected to follow:
 Item 17 o Item 18 þ




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##### 



TABLE OF CONTENTS  PART IItem 1. Identity of Directors, Senior Management and AdvisersItem 2. Offer Statistics and Expected TimetableItem 3. Key InformationItem 4. Information on the CompanyItem 5. Operating and Financial Review and ProspectsItem 6. Directors, Senior Management and EmployeesItem 7. Major Shareholders and Related Party TransactionsItem 8. Financial InformationItem 9. The Offer and ListingItem 10. Additional InformationItem 11. Quantitative and Qualitative Disclosures About Market RiskItem 12. Description of Securities Other than Equity SecuritiesPART IIItem 13. Defaults, Dividend Arrearages and DelinquenciesItem 14. Material Modifications to the Rights of Security Holders and Use of ProceedsItem 15. Controls and ProceduresItem 16A. Audit Committee Financial ExpertItem 16B. Code of EthicsItem 16C. Principal Accountant Fees and ServicesItem 16D. Exemptions from Listing Standards for Audit CommitteesItem 16E. Purchases of Equity Securities by the IssuerItem 17. Financial StatementsItem 18. Financial StatementsItem 19. ExhibitsSIGNATUREREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMExhibit 1.2Exhibit 2.1Exhibit 2.2Exhibit 4.4Exhibit 4.9Exhibit 4.10Exhibit 4.11Exhibit 4.12Exhibit 4.13Exhibit 4.14Exhibit 4.15Exhibit 4.16Exhibit 4.17Exhibit 4.18Exhibit 4.19Exhibit 8.1Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2 TABLE OF CONTENTS




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##### 



Use of Terms and Conventions in this Annual Report
   Item 3. Key
Information  Risk Factors  Harmonys gold reserve figures may yield less gold under actual
production conditions than Harmony currently estimates.
  Presentation of financial information
 Item 5. Operating and Financial Review and Prospects -
Costs  Reconciliation of Non-GAAP Measures.
  Forward-looking statements
 Item 4. Information on
the Company, Item 5. Operating and Financial Review and Prospects and Item 11. Quantitative and
Qualitative Disclosures About Market Risk
  1




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##### 




    
    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.
  2




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##### 



PART I
 Item 1. Identity of Directors, Senior Management and Advisors
  Item 2. Offer Statistics and Expected Timetable
  Item 3. Key Information
 SELECTED FINANCIAL DATA
 The selected consolidated financial data below should be read in conjunction with, and are
qualified in their entirety by reference to, our consolidated financial statements and the notes
thereto and with Item 5. Operating and Financial Review and Prospects, both included elsewhere in
this annual report. Historical results are not necessarily indicative of results to be expected
for any future period.
 3




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##### 



Selected Historical Consolidated Financial Data
  Item
5. Operating and Financial Review and Prospects  Costs  Reconciliation of Non-GAAP Measures.
 FISCAL YEAR ENDED JUNE 30,2005
    
    2004
    
    2003
    
    2002
    
    2001(in $ thousands, except per share amounts)Income statement dataRevenues1
    
    
    1,265,200
    
    
    
    1,240,339
    
    
    
    781,792
    
    
    
    675,287
    
    
    
    590,634Operating (loss)/income
    
    
    (498,116
    )
    
    
    (98,714
    )
    
    
    (21,580
    )
    
    
    75,017
    
    
    
    21,978Equity income of joint venture
    
    
    
    
    
    
    7,918
    
    
    
    52,843
    
    
    
    13,176
    
    
    
    Equity income/(loss) of associate companies
    
    
    
    
    
    
    2,020
    
    
    
    (1,233
    )
    
    
    (473
    )
    
    
    (Loss)/Income before taxes and minority interests
    
    
    (717,159
    )
    
    
    (74,568
    )
    
    
    97,515
    
    
    
    103,659
    
    
    
    29,804Minority interests
    
    
    
    
    
    
    1,281
    
    
    
    (468
    )
    
    
    (1,575
    )
    
    
    (349
    )(Loss)/income before cumulative effect of change
in accounting principles
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    71,792
    
    
    
    87,716
    
    
    
    14,830Cumulative effect of change in accounting
principles, net of tax
    
    
    
    
    
    
    
    
    
    
    14,770
    
    
    
    
    
    
    
    (5,822
    )Net (loss)/income
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    86,562
    
    
    
    87,716
    
    
    
    9,008Basic (loss)/earnings per share ($) before
cumulative effect of change in accounting
principles
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.40
    
    
    
    0.57
    
    
    
    0.15Basic (loss)/earnings per share ($)
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.49
    
    
    
    0.57
    
    
    
    0.09Diluted (loss)/earnings per share before
cumulative effect of change in accounting
principles
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.39
    
    
    
    0.53
    
    
    
    0.14Diluted (loss)/earnings per share
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.47
    
    
    
    0.53
    
    
    
    0.09Weighted average number of shares used in the
computation of basic earnings per share
    
    
    362,499,012
    
    
    
    254,240,500
    
    
    
    177,954,245
    
    
    
    153,509,862
    
    
    
    102,156,205Weighted average number of shares used in the
computation of diluted earnings per share
    
    
    362,499,012
    
    
    
    254,240,500
    
    
    
    182,721,629
    
    
    
    165,217,088
    
    
    
    105,504,328Cash
dividends per share ($)
2
    
    
    0.05
    
    
    
    0.26
    
    
    
    0.57
    
    
    
    0.07
    
    
    
    0.16Cash
dividends per share (R) 2
    
    
    0.30
    
    
    
    1.90
    
    
    
    5.50
    
    
    
    0.75
    
    
    
    1.20Other financial dataCash cost per ounce of gold ($/oz) 3
    
    
    412
    
    
    
    362
    
    
    
    253
    
    
    
    196
    
    
    
    234
 
 1
    
    Revenues comprise only product (gold) sales.
See note 2 to the consolidated financial statements 
Comparatives.2
    
    Reflects dividends related to fiscal 2004, 2003
and 2002 that were declared on July 30, 2004, August 1, 2003 and August 2, 2002
respectively.3
    
    Total cash costs and total cash costs per ounce
are non-GAAP measures. Harmony has calculated cash costs per ounce by dividing
total cash costs, as determined using the guidance provided by the Gold
Institute, by gold ounces sold for all periods presented. The Gold Institute
was a non-profit industry association comprised of leading gold producers,
refiners, bullion suppliers and manufacturers. This institute has now been
incorporated into the National Mining Association. The guidance was first
issued in 1996 and was revised in November 1999. Total cash costs, as defined
in the guidance provided by the Gold Institute, include mine production costs,
transport and refinery costs, applicable general and administrative costs,
costs associated with movements in production inventories and ore stockpiles,
ongoing environmental rehabilitation costs as well as transfers to and from
deferred stripping and costs associated with royalties. Ongoing employee
termination costs are included, however, employee termination costs associated
with major restructuring and shaft closures are excluded. Total cash costs have
been calculated on a consistent basis for all periods presented. Changes in
cash costs per ounce are affected by operational performance, as well as
changes in the currency exchange rate between the Rand and the US dollar. Total
cash costs and total cash costs per ounce are non GAAP measures. Total cash
costs and total cash costs per ounce should therefore 4




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##### 



AT JUNE 30,2005
    
    2004
    
    2003
    
    2002
    
    2001(in $ thousands)Balance sheet dataCash and cash equivalents
    
    
    266,746
    
    
    
    217,022
    
    
    
    189,040
    
    
    
    90,223
    
    
    
    144,096Other current assets
    
    
    323,903
    
    
    
    294,502
    
    
    
    162,487
    
    
    
    109,397
    
    
    
    136,794Property,
plant and equipment 
net
    
    
    3,271,019
    
    
    
    3,636,773
    
    
    
    1,121,592
    
    
    
    812,753
    
    
    
    667,113Goodwill
    
    
    30,367
    
    
    
    32,480
    
    
    
    
    
    
    
    
    
    
    
    Restricted cash
    
    
    7,798
    
    
    
    9,992
    
    
    
    
    
    
    
    
    
    
    
    Investments in associates
    
    
    
    
    
    
    19,908
    
    
    
    63,782
    
    
    
    42,791
    
    
    
    Investment in joint venture
    
    
    
    
    
    
    
    
    
    
    272,754
    
    
    
    102,578
    
    
    
    Other long-term assets
    
    
    656,844
    
    
    
    451,216
    
    
    
    89,183
    
    
    
    137,399
    
    
    
    81,822Total assets
    
    
    4,556,677
    
    
    
    4,661,823
    
    
    
    1898,838
    
    
    
    1,295,141
    
    
    
    1,029,825Current liabilities
    
    
    428,755
    
    
    
    393,764
    
    
    
    189,668
    
    
    
    138,677
    
    
    
    152,886Provision for environmental
rehabilitation
    
    
    120,450
    
    
    
    125,917
    
    
    
    62,977
    
    
    
    63,125
    
    
    
    53,136Provision of social plan
    
    
    2,109
    
    
    
    1,958
    
    
    
    
    
    
    
    
    
    
    
    Deferred income and mining taxes
    
    
    510,298
    
    
    
    558,812
    
    
    
    209,628
    
    
    
    99,789
    
    
    
    47,050Provision for post-retirement
benefits
    
    
    13,275
    
    
    
    1,584
    
    
    
    1,017
    
    
    
    737
    
    
    
    1,002Deferred financial liability
    
    
    76,720
    
    
    
    91,513
    
    
    
    37,228
    
    
    
    87,226
    
    
    
    49,374Long-term loans
    
    
    409,486
    
    
    
    509,195
    
    
    
    301,572
    
    
    
    152,461
    
    
    
    151,466Preference shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    681Minority interest
    
    
    
    
    
    
    
    
    
    
    18,408
    
    
    
    
    
    
    
    331Shareholders equity
    
    
    2,995,584
    
    
    
    2,979,080
    
    
    
    1,078,340
    
    
    
    573,126
    
    
    
    573,899Total liabilities and
shareholders equity
    
    
    4,556,677
    
    
    
    4,661,823
    
    
    
    1898,838
    
    
    
    1,295,141
    
    
    
    1,029,825
 
 not be considered by
investors in isolation or as an alternative to operating income/(loss) or net
income/(loss) or any other U.S. GAAP measure or an indicator of
our performance. In particular depreciation and amortization would be
included in a measure of total costs of producing gold under U.S. GAAP, but it
is not included in total cash costs under the guidance provided by the Gold
Institute. While the Gold Institute has provided a definition for the
calculation of total cash costs and total cash costs per ounce, the calculation
of cash costs per ounce may vary from company to company and may not be
comparable to other similarly titled measures of other companies. However,
Harmony believes that cash costs per ounce is a useful indicator to investors
and management of a mining companys performance as it provides (1) an
indication of the cash generating capacities of the mining operations, (2) the
trends in cash costs as the companys operations mature, (3) a measure of
a companys performance, by comparison of cash costs per ounce to the
spot price of gold and (4) an internal benchmark of performance to allow for
comparison against other companies. For further information, see Item 5.
Operating and Financial Review and Prospects  Costs 
Reconciliation of non-GAAP measures. 5




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EXCHANGE RATES
    Fiscal year ended June 30,
    
    Average1
    
    Period End2001
    
    
    7.61
    
    
    
    8.042002
    
    
    10.20
    
    
    
    10.392003
    
    
    9.13
    
    
    
    7.512004
    
    
    6.89
    
    
    
    6.232005
    
    
    6.18
    
    
    
    6.67
 Month of
    
    High
    
    LowApril 2005
    
    
    6.28
    
    
    
    6.03May 2005
    
    
    6.75
    
    
    
    5.96June 2005
    
    
    6.92
    
    
    
    6.63July 2005
    
    
    6.90
    
    
    
    6.53August 2005
    
    
    6.55
    
    
    
    6.34September 2005
    
    
    6.45
    
    
    
    6.26October (through October 21)
    
    
    6.65
    
    
    
    6.44
 
 1
    
    The average of the noon buying rates provided by the Federal Reserve Bank of New York
on the last day of each full month during the relevant period.  CAPITALIZATION AND INDEBTEDNESS
  REASONS FOR THE OFFER AND USE OF PROCEEDS
  6




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RISK FACTORS
 In addition to the other information included in this annual report and the exhibits, you should
carefully consider the following factors related to an investment in Harmonys ordinary shares and
ADSs. There may be additional risks that Harmony does not currently know of or that Harmony
currently deems immaterial based on information currently available to it. Any of these risks
could have a materially adverse affect on Harmonys business, financial condition or results of
operations, resulting in a decline in the trading price of Harmonys shares (or ADSs).
 The profitability of Harmonys operations, and the cash flows generated by those operations, are
affected by changes in the market price of gold, such that a fall in the price of gold below
Harmonys cash operating cost of production for any sustained period may lead Harmony to experience
losses and curtail or suspend certain operations.
  
    
    the demand for gold industrial uses and for use in jewelry;
 
    
    international or regional political and economic trends;
 
    
    the strength of the US dollar (the currency in which gold prices
generally are quoted) and of other currencies;
 
    
    financial market expectations regarding the rate of inflation;
 
    
    interest rates;
 
    
    speculative activities;
 
    
    actual or expected purchases and sales of gold bullion holdings by
central banks or other large gold bullion holders or dealers
(which are likely to result in a decrease in the price of gold);
 
    
    forward sales by other gold producers (because Harmony does not
normally enter into forward sales, derivatives or other hedging
arrangements to establish a price in advance for the sale of its
future gold production, Harmony is not protected against decreases
in the gold price and if the gold price decreases significantly,
Harmony runs the risk of reduced revenues in respect of any gold
production that is not hedged); and
 
    
    the production and cost levels for gold in major gold-producing
nations, such as South Africa, the rest of Africa and Australia.
   Price per OunceYear
    
    High
    
    Low
    
    Average($)
    
    ($)
    
    ($)1995
    
    
    396
    
    
    
    372
    
    
    
    3841996
    
    
    415
    
    
    
    367
    
    
    
    3881997
    
    
    367
    
    
    
    283
    
    
    
    3311998
    
    
    313
    
    
    
    273
    
    
    
    2941999
    
    
    326
    
    
    
    253
    
    
    
    2792000
    
    
    313
    
    
    
    264
    
    
    
    2822001
    
    
    293
    
    
    
    256
    
    
    
    2712002
    
    
    332
    
    
    
    278
    
    
    
    3092003
    
    
    412
    
    
    
    322
    
    
    
    3612004
    
    
    427
    
    
    
    343
    
    
    
    3892005 (through October 21, 2005)
    
    
    476
    
    
    
    411
    
    
    
    434
  7




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##### 



Due to the fact that the majority of Harmonys production costs are incurred in Rand and that gold
is sold in US dollars, Harmonys financial condition could be materially harmed by an appreciation
in the value of the Rand against the US dollar.
   Harmonys gold reserve figures are estimated based on a number of assumptions, including
assumptions as to mining and recovery factors, future cash costs of production and the price of
gold and may yield less gold under actual production conditions than currently estimated.
   Part of Harmonys strategy depends on its ability to make additional acquisitions.
  
    
    it will be able to identify appropriate acquisition candidates or negotiate acquisitions on favorable terms;
 
    
    it will be able to obtain the financing necessary to complete future acquisitions; or
 
    
    the issuance of Harmonys ordinary shares or other securities in connection with any future acquisition will not result
in a substantial dilution in ownership interests of holders of Harmonys ordinary shares.
  8




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To maintain gold production beyond the expected lives of Harmonys existing mines or to increase
production materially above projected levels, Harmony will need to access additional reserves
through exploration or discovery.
  
    
    locating orebodies;
 
    
    identifying the metallurgical properties of orebodies;
 
    
    estimating the economic feasibility of mining orebodies;
 
    
    developing appropriate metallurgical processes;
 
    
    obtaining necessary governmental permits; and
 
    
    constructing mining and processing facilities at any site chosen for mining.
  
    
    future gold and other metal prices;
 
    
    anticipated tonnage, grades and metallurgical characteristics of ore to be mined and processed;
 
    
    anticipated recovery rates of gold and other metals from the ore, and
 
    
    anticipated total costs of the project, including capital expenditure and cash operating costs.
  
    
    the availability and timing of necessary environmental and governmental permits;
 
    
    the timing and cost necessary to construct mining and processing facilities, which can be considerable;
 
    
    the availability and cost of skilled labor, power, water and other materials;
 
    
    the accessibility of transportation and other infrastructure, particularly in remote locations;
 
    
    the availability and cost of smelting and refining arrangements; and
 
    
    the availability of funds to finance construction and development activities.
   Harmony may experience problems in managing new acquisitions and integrating them with its existing
operations.
  
    
    difficulties in assimilating the operations of the acquired business;
 
    
    difficulties in maintaining the financial and strategic focus of Harmony while
integrating the acquired business;
 
    
    problems in implementing uniform standards, controls, procedures and policies;
 
    
    increasing pressures on existing management to oversee a rapidly expanding company; and
 
    
    to the extent Harmony acquires mining operations outside South Africa or Australia
encountering difficulties relating to operating in countries in which Harmony has not
previously operated.
  9




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##### 



Due to the nature of mining and the type of gold mines it operates, Harmony faces a material risk
of liability, delays and increased cash costs from environmental and industrial accidents and
pollution.
  
    
    rockbursts;
 
    
    seismic events;
 
    
    underground fires;
 
    
    cave-ins or falls of ground;
 
    
    discharges of gases and toxic chemicals;
 
    
    release of radioactive hazards;
 
    
    flooding;
 
    
    accidents; and
 
    
    other conditions resulting from drilling, blasting and the removal and processing of material from a
deep-level mine.
  
    
    flooding of the open pit;
 
    
    collapse of the open pit walls;
 
    
    accidents associated with the operation of large open pit mining and rock transportation equipment; and
 
    
    accidents associated with the preparation and ignition of large scale open pit blasting operations.
 
    
    accidents associated with operating a waste dump and rock transportation; and
 
    
    production disruptions due to weather.
  Harmonys land and mineral rights in South Africa could be subject to land restitution claims which
could impose significant costs and burdens.
   Harmonys insurance coverage may prove inadequate to satisfy future claims against it.
  10
      The results of Harmonys South African operations may be negatively impacted by inflation.
  The socio-economic framework in the regions of which we operate may have an adverse effect on
Harmonys operations and profits.
  Harmonys financial flexibility could be materially constrained by exchange control regulations as
imposed by the South African Reserve Bank.
  
    
    is generally not permitted to export capital from South Africa or to hold foreign currency without the approval of the
South African exchange control authorities;
 
    
    is generally required to repatriate to South Africa profits of foreign operations; and
 
    
    is limited in its ability to utilize profits of one foreign business to finance operations of a different foreign
business.
  Since Harmonys South African labor force has substantial trade union participation, Harmony faces
the risk of disruption from labor disputes and new South African labor laws.
   HIV/AIDS poses risks to Harmony in terms of productivity and costs.
  11
      The cost of occupational healthcare services may increase in the future.
  Laws governing mineral rights ownership have changed in South Africa.
  
    
    to recognize the internationally accepted right of the state of South Africa to exercise full and permanent sovereignty
over all the mineral and petroleum resources within South Africa;
 
    
    to give effect to the principle of the States custodianship of the nations mineral and petroleum resources;
 
    
    to promote equitable access to South Africas mineral and petroleum resources to all the people of South African and
redress the impact of past discrimination;
 
    
    to substantially and meaningfully expand opportunities for historically disadvantaged persons, including women, to
enter the mineral and petroleum industry and to benefit from the exploitation of South Africas mineral and petroleum
resources;
 
    
    to promote economic growth and mineral and petroleum resources development in South Africa;
 
    
    to promote employment and advance the social and economic welfare of all South Africans;
 
    
    to provide security of tenure in respect of prospecting, exploration, mining and production operations;
 
    
    to give effect to Section 24 of the South African Constitution by ensuring that South Africas mineral and petroleum
resources are developed in an orderly and ecologically sustainable manner while promoting justifiable social and
economic development;
 
    
    to follow the principle that mining companies keep and use their mineral rights, with no expropriation and with
guaranteed compensation for mineral rights; and
 
    
    to ensure that holders of mining and production rights contribute towards the socio-economic development of areas in
which they are operating.
    12
      Harmony is subject to extensive environmental regulations.
      13
      Harmony may not pay cash dividends to its shareholders in the future.
  Non-South African shareholders of Harmony face additional investment risk from currency exchange
rate fluctuations since any dividends will be paid in Rand.
  Because Harmony has a significant number of outstanding options, Harmonys ordinary shares are
subject to dilution.
  Investors in the United States may have difficulty bringing actions, and enforcing judgments,
against Harmony, its directors and its executive officers based on the civil liabilities provisions
of the federal securities laws or other laws of the United States or any state thereof.
  
    
    the court that pronounced the judgment had jurisdiction to entertain the case according to the principles recognized by
South African law with reference to the jurisdiction of foreign courts;
 
    
    the judgment is final and conclusive (that is, it cannot be altered by the court which pronounced it);
 
    
    the judgment has not lapsed;
 
    
    the recognition and enforcement of the judgment by South African courts would not be contrary to public policy,
including observance of the rules of natural justice which require that the documents initiating the United States
proceeding were properly served on the defendant and that the defendant was given the right to be heard and represented
by counsel in a free and fair trial before an impartial tribunal;
 
    
    the judgment does not involve the enforcement of a penal or revenue law; and
 
    
    the enforcement of the judgment is not otherwise precluded by the provisions of the Protection of Business Act 99 of
1978, as amended, of the Republic of South Africa.
  14
      Item 4. Information on the Company
 BUSINESS
 History and Development
      Item 4. Information on the Company  Business  Harmonys Mining Operations Geographical and Segment Information
  Item 4. Information on the Company 
Regulation Item 10. Additional Information  Memorandum and Articles of Association.
 15
      South African Operations
    
    
    quality shafts, which are typically those with a larger reserve base
and longer life, which form the core of the groups production;
 
    
    leveraged shafts, which are those that supplement production and
provide the upside in the event of a positive swing in the Rand gold
price;
 
    
    growth shafts, which comprise the expansion projects established
through existing infrastructure, as well as the three new mines we are
building in South Africa; and
 
    
    surface operations, which comprise the Kalgold opencast mine, all
previously mined rock, whether waste or reef and any clean-up
operations as well as plant and other infrastructure.
 Quality Shafts
    
    Leveraged Shafts
    
    Growth Shafts
    
    Surface OperationsTarget
    
    Bambanani
    
    Elandsrand mine and
project
    
    KalgoldTshepong
    
    Joel
    
    Doornkop mine and
project
    
    FreegoldMasimong
shaft complex
    
    West Shaft
    
    Phakisa project
    
    Free StateEvander 5
    
    St. Helena
    
    
    
    RandfonteinEvander 7
    
    Harmony 2
    
    
    
    TargetEvander 8
    
    Merriespruit 1Cooke 1
    
    Merriespruit 3Cooke 2
    
    UniselCooke 3
    
    Brand 3Orkney 2Orkney 4
  Australasian Operations
   16
      Principal Investments
  Item 5. Operating and Financial Review and Prospects
 Overview.
        17
      Item 7.
Major Shareholders and Related Party Transactions .
      18
      See Item 7. Major Shareholders and Related Party Transactions
 Strategy
      Continuing to implement Harmonys unique management structure and philosophy.
  
    
    Empowered management teams.At each mining site Harmony has
established small, multi-disciplinary, focused management teams
responsible for planning and implementing the mining operations at
the site. Each of these teams is accountable for the results at
its particular site and reports directly to Harmonys Board.
 
    
    Active strategic management by the Board.Annual operational goals
and targets, including cost, volume and grade targets are
established in consultation with the Harmonys executive committee
for each mining site. Each management team develops an operational
plan to implement the goals and targets for its mine site.
Harmonys executive committee reviews and measures the results at
each mining site on a regular basis throughout the year.
 19
      
    
    Increased productivity.Gold mining in South Africa is very labor
intensive with labor accounting for approximately 50% of Harmonys
costs. To control these costs, Harmony structures its operations
to achieve maximum productivity with the goal of having 60% of
Harmonys workforce directly engaged in stoping, or underground
excavation, and development rock breaking activities. In addition,
Harmony has implemented productivity-based bonuses designed to
maximize productivity.
 
    
    A no-frills, low cost ethic.Harmony has an obsession about
lowering its cost base and, to this end, Harmony extensively
benchmarks its costing parameters both internally between
operations within Harmony and externally against other gold
producers.
 
    
    Systems.Harmony has implemented sophisticated cost accounting
systems and strict ore accounting and ore reserve management
systems to measure and track costs and ore reserve depletion
accurately, so as to enable it to be proactive in its decision
making.
  Growing through acquisitions in South Africa and internationally.
  
    
    to make acquisitions in addition to pursuing greenfield and
brownfield developments when it is economical to do so;
 
    
    to acquire mature assets with turnaround potential;
 
    
    to acquire assets that fit Harmonys management model; and
 
    
    to acquire assets that enhance Harmonys overall resource base.
   Hedge Policy
   20
      June 30, 2005
    
    June 30, 2006
    
    TotalForward exchange contracts & calls sold
US$ million
    
    
    
    
    
    
    39.5
    
    
    
    39.5Average Strike US$/R
    
    
    
    
    
    
    9.54
    
    
    
    9.54
     Description of Mining Business
 Exploration
     Ø
    
    on-mine exploration which looks for resources within the economic radius of existing mines, andØ
    
    new mine exploration, which is the global search for early to advanced stage projects.
 South Africa
 21
      Australasia
 Papua New Guinea Item 4.  Information on the Company  Business  Papua
New Guinea Operations  Hidden Valley Project. Item 4. Information on the Company  Business  Papua New Guinea Operations  Wafi
Project.
  Australia
 22
      Item 8. Recent Developments.
  Peru:
 Mining
  
    
    Access to the orebody.In Harmonys South African underground mines, access to the orebody
is by means of shafts sunk from the surface to the lowest economically and practically
mineable level. Horizontal development at various intervals of a shaft (known as levels)
extends access to the horizon of the reef to be mined. On-reef development then provides
specific mining access. In Harmonys Australian underground mines access to the orebody is by
means of declines. Horizontal development at various
 23
      intervals of the decline extends access to the horizon of the ore to be mined.
The declines are advanced on a continuous basis to keep ahead of the mining
taking place on the levels above. In Harmonys open pit mines, access to the
orebody is provided by overburden stripping, which removes the covering layers
of topsoil or rock, through a combination of drilling, blasting, loading and
hauling, as required.
    
    Mining the orebody.The process of ore removal starts
with drilling and blasting the accessible ore. The
blasted faces are then cleaned and the ore is
transferred to the transport system. In open pit
mines, gold-bearing material may require drilling and
blasting and is usually collected by bulldozers or
shovels to transfer it onto trucks which transport it
to the mill.
  Processing
   
    
    Comminution.Comminution is the process of
breaking up the ore to expose and liberate the
gold and make it available for treatment.
Conventionally, this process occurs in
multi-stage crushing and milling circuits, which
include the use of jaw and gyratory crushers and
rod and tube and ball mills. Our more modern
milling circuits include semi or fully
autogenous milling where the ore itself is used
as the grinding medium. Typically, ore must be
ground to a minimum size before proceeding to
the next stage of treatment.
 
    
    Treatment.In most of our metallurgical plants,
gold is extracted into a leach solution from the
host ore by leaching in agitated tanks. Gold is
then extracted onto activated carbon from the
solution using the CIL, CIP or CIS process.
     24
      Item
4. Information on the Company  Regulation-Mineral Rights.
 Services and Supplies
   Item 4. Information on the Company  Regulation  Mineral Rights
 Harmonys Management Structure
    25
      Capital Expenditures
 Item 4. Information on
the Company  Business  Harmonys Mining Operations  Evander Operations.
 Description of Property
    26
      WORLDWIDE OPERATIONS
 
 Geology
       27
      Reserves
   Year-on-year reconciliation of Harmonys ore reserves
 Gold(millionounces)Balance at June 30, 2004
    
    
    62.2Re-statements
    
    
    (3.1
    )*Mined during fiscal 2005
    
    
    (3.1
    )**Less impact of re-structuring shafts
    
    
    (3.0
    )Added through exploration
    
    
    1.1Balance at June 30, 2005
    
    
    54.1
 
 *
    
    Exclusive of depletion**
    
    Ounces based on mill delivered grades   28
      
    
    the database of measured and indicated resource blocks (per shaft section);
 
    
    an assumed gold price which, for this ore reserve statement, was taken as R92,000 per kilogram;
 
    
    planned production rates;
 
    
    the mine recovery factor (MRF) which is equivalent to the mine call factor multiplied by the plant recovery factor; and
 
    
    planned cash operating costs (Rand per tonne).
     29
      Ore reserve statement (Imperial) as at June 30, 2005
 Operations
    
    Proven Reserves
    
    Probable Reserves
    
    Total ReservesTons
    
    Grade
    
    Gold oz
    
    Tons
    
    Grade
    
    Gold oz
    
    Tons
    
    Grade
    
    Gold oz1(million)
    
    (oz/ton)
    
    (million)
    
    (million)
    
    (oz/ton)
    
    (million)
    
    (million)
    
    (oz/ton)
    
    (million)S.A. UndergroundElandskraal
    
    
    4.72
    
    
    
    0.251
    
    
    
    1.18
    
    
    
    23.59
    
    
    
    0.275
    
    
    
    6.48
    
    
    
    28.31
    
    
    
    0.271
    
    
    
    7.66Free State
    
    
    11.55
    
    
    
    0.146
    
    
    
    1.69
    
    
    
    17.72
    
    
    
    0.141
    
    
    
    2.49
    
    
    
    29.27
    
    
    
    0.143
    
    
    
    4.18Randfontein
    
    
    5.22
    
    
    
    0.180
    
    
    
    0.94
    
    
    
    12.42
    
    
    
    0.141
    
    
    
    1.75
    
    
    
    17.64
    
    
    
    0.153
    
    
    
    2.69Evander
    
    
    8.40
    
    
    
    0.182
    
    
    
    1.53
    
    
    
    20.04
    
    
    
    0.200
    
    
    
    4.02
    
    
    
    28.44
    
    
    
    0.195
    
    
    
    5.55Evander (below infrastructure)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44.61
    
    
    
    0.219
    
    
    
    9.78
    
    
    
    44.61
    
    
    
    0.219
    
    
    
    9.78Target
    
    
    7.68
    
    
    
    0.206
    
    
    
    1.58
    
    
    
    19.72
    
    
    
    0.162
    
    
    
    3.20
    
    
    
    27.40
    
    
    
    0.175
    
    
    
    4.78Kalgold (open cast)
    
    
    0.30
    
    
    
    0.078
    
    
    
    0.02
    
    
    
    1.62
    
    
    
    0.067
    
    
    
    0.11
    
    
    
    1.91
    
    
    
    0.069
    
    
    
    0.13Free Gold
    
    
    16.94
    
    
    
    0.204
    
    
    
    3.45
    
    
    
    46.49
    
    
    
    0.211
    
    
    
    9.81
    
    
    
    63.42
    
    
    
    0.209
    
    
    
    13.26Orkney (ARMgold)
    
    
    6.30
    
    
    
    0.186
    
    
    
    1.17
    
    
    
    7.56
    
    
    
    0.136
    
    
    
    1.03
    
    
    
    13.87
    
    
    
    0.159
    
    
    
    2.20Total S.A. Underground
    
    
    61.12
    
    
    
    0.189
    
    
    
    11.57
    
    
    
    193.76
    
    
    
    0.200
    
    
    
    38.66
    
    
    
    254.88
    
    
    
    0.197
    
    
    
    50.23S.A. SurfaceTarget
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.24
    
    
    
    0.018
    
    
    
    0.004
    
    
    
    0.24
    
    
    
    0.018
    
    
    
    0.004Free State
    
    
    24.17
    
    
    
    0.012
    
    
    
    0.29
    
    
    
    2.89
    
    
    
    0.014
    
    
    
    0.04
    
    
    
    27.06
    
    
    
    0.012
    
    
    
    0.33Randfontein
    
    
    2.16
    
    
    
    0.021
    
    
    
    0.05
    
    
    
    0.53
    
    
    
    0.043
    
    
    
    0.02
    
    
    
    2.69
    
    
    
    0.025
    
    
    
    0.07Kalgold (surface stockpile)
    
    
    0.59
    
    
    
    0.037
    
    
    
    0.02
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    0.59
    
    
    
    0.037
    
    
    
    0.02Free Gold
    
    
    2.73
    
    
    
    0.012
    
    
    
    0.03
    
    
    
    7.00
    
    
    
    0.022
    
    
    
    0.16
    
    
    
    9.73
    
    
    
    0.020
    
    
    
    0.19Total S.A. Surface
    
    
    29.65
    
    
    
    0.013
    
    
    
    0.39
    
    
    
    10.66
    
    
    
    0.021
    
    
    
    0.22
    
    
    
    40.31
    
    
    
    0.015
    
    
    
    0.61Australian Operations2Northern Territory
    
    
    0.06
    
    
    
    0.406
    
    
    
    0.02
    
    
    
    0.99
    
    
    
    0.083
    
    
    
    0.08
    
    
    
    1.05
    
    
    
    0.101
    
    
    
    0.11Mt. Magnet
    
    
    2.03
    
    
    
    0.047
    
    
    
    0.10
    
    
    
    3.87
    
    
    
    0.138
    
    
    
    0.53
    
    
    
    5.91
    
    
    
    0.106
    
    
    
    0.63South Kalgoorlie
    
    
    2.25
    
    
    
    0.050
    
    
    
    0.11
    
    
    
    2.30
    
    
    
    0.091
    
    
    
    0.21
    
    
    
    4.55
    
    
    
    0.070
    
    
    
    0.32Total Australian Operations
    
    
    4.34
    
    
    
    0.053
    
    
    
    0.23
    
    
    
    7.16
    
    
    
    0.115
    
    
    
    0.82
    
    
    
    11.50
    
    
    
    0.092
    
    
    
    1.05Papua New Guinea3Hidden Valley
    
    
    3.00
    
    
    
    0.099
    
    
    
    0.30
    
    
    
    19.57
    
    
    
    0.086
    
    
    
    1.69
    
    
    
    22.57
    
    
    
    0.088
    
    
    
    1.99Hamata
    
    
    0.82
    
    
    
    0.080
    
    
    
    0.07
    
    
    
    2.25
    
    
    
    0.085
    
    
    
    0.19
    
    
    
    3.07
    
    
    
    0.084
    
    
    
    0.26Total Papua New Guinea Operations
    
    
    3.82
    
    
    
    0.095
    
    
    
    0.37
    
    
    
    21.82
    
    
    
    0.086
    
    
    
    1.88
    
    
    
    25.64
    
    
    
    0.087
    
    
    
    2.25TOTAL OPERATIONS
    
    
    98.93
    
    
    
    0.127
    
    
    
    12.56
    
    
    
    233.40
    
    
    
    0.178
    
    
    
    41.58
    
    
    
    332.33
    
    
    
    0.163
    
    
    
    54.14
 
 1
    
    Gold oz figures are fully inclusive of all mining dilutions and gold losses,
and are reported as mill delivered tons and head grades.2
    
    Includes reserves from underground and surface mining at each of the
Australian operations.3
    
    Includes reserves from underground and surface mining at the Papua New
Guinea operations. 30
      Harmonys Mining Operations  Overview
  Ø
    
    Elandskraal
 Ø
    
    the Free State
 Ø
    
    Randfontein
 Ø
    
    Evander
 Ø
    
    Free Gold
 Ø
    
    ARMgold and
 Ø
    
    Avgold
  Ø
    
    the Free State
 Ø
    
    Randfontein
 Ø
    
    Free Gold
 Ø
    
    Kalgold and
 Ø
    
    Target
    South African Mining Operations  General
 Elandskraal Operations
 Introduction.
 History.
 31
      Geology.
   Mining Operations.
     32
      See Item 6. Directors and Senior Management  Board
Practices.
 Plants.
  Averagemilled for theProcessing
    
    fiscal yearCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Elandsrand Plant
    
    
    190,000
    *
    
    
    84,877
  
  Randfontein Operations
 Introduction.
 History.
  Geology.
   33
      Mining Operations.
      See Item 6. Directors, Senior Management and Employees  Directors and Senior
Management  Board Practices.
 Plants.
  34
      Averagemilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Cooke
    
    
    280,000
    
    
    
    205,030Doornkop
    
    
    220,000
    
    
    
    207,234
   Free State Operations
 Introduction.
 History.
 Geology.
 Mining Operations.
    35
      See
Item 6. Directors, Senior Management and Employees  Directors and Senior Management  Board
Practices.
 Plants.
  Averagemilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Central
    
    
    220,000
    
    
    
    151,017Saaiplaas
    
    
    195,000
    
    
    
    101,413
  Evander Operations
 Introduction.
 History.
 36
      Geology.
 Mining Operations. see Item 6. Directors, Senior Management and
Employees  Unionized Labor.
   See Item 6. Directors, Senior Management and Employees  Directors and Senior Management  Board
Practices.
 Plants.
  Averagemilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Kinross-Winkelhaak
    
    
    148,000
    
    
    
    143,300
  Kalgold Operations
 Introduction.
 History.
 37
      Geology.
   Mining Operations.
 See Item 6. Directors, Senior Management and
Employees  Directors and Senior Management  Board Practices.
 Plants.
  Averagemilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)CIL
    
    
    150,000
    
    
    
    154,320Heap Leach
    
    
    
    
    
    
    
    *
 
 *
    
    Active use of heap leaching was discontinued in July 2001; however, Harmony expects to apply
leaching solution occasionally in the future to recover any available gold.  Free Gold Operations
 Introduction.
 38
      History.
 Geology.
 Mining Operations.
 39
      Item 6.
Employees-Unionized Labor.
  Item 6. Employees-Unionized Labor.
    Directors, Senior Management and Employees 
Directors and Senior Management  Board Practices.
 Plants.
 40
      Averagemilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)FS 1
    
    
    440,000
    
    
    
    413,366Joel
    
    
    53,000
    
    
    
    55,116St. Helena
    
    
    110,200
    
    
    
    80,469
   ARMgold Operations
 Introduction
 History.
 Geology
  Mining operations
   41
      See Item 6.
Directors and Senior Management  Board Practices.
 Plants
 Avgold operations  Target
 Introduction.
  History.
 Geology.
    42
      Mining operations.
    See Item 6. Directors, Senior Management and Employees  Directors and Senior
Management  Board Practices.
 Plants.
  AveragemilledFor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Target Plant
    
    
    115,000
    
    
    
    112,436
  South African Operations  Production Analysis
  Quality shafts
 Leveraged shafts
 43
      Growth shafts
 Surface operations
 Quality shafts
  Fiscal year ended June 30,2005
    
    2004
    
    2003ProductionTons (000)
    
    
    7,464
    
    
    
    7,756
    
    
    
    7,730Recovered grade (ounces/ton)
    
    
    0.185
    
    
    
    0.173
    
    
    
    0.172Gold sold (ounces)
    
    
    1,378,167
    
    
    
    1,343,713
    
    
    
    1,332,180Results of operations ($)Product sales (000)
    
    
    588,360
    
    
    
    523,305
    
    
    
    438,156Cash cost (000)
    
    
    491,369
    
    
    
    428,238
    
    
    
    274,468Cash profit (000)
    
    
    96,991
    
    
    
    95,067
    
    
    
    163,688Cash costsPer ounce of gold ($)
    
    
    357
    
    
    
    319
    
    
    
    206Capex(000) ($)
    
    
    27,028
    
    
    
    26,936
    
    
    
    18,368
      Fiscal year ended June 30,Target
    
    2005
    
    2004*
    
    2003ProductionTons (000)
    
    
    1,178
    
    
    
    228
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.178
    
    
    
    0.234
    
    
    
    Gold sold (ounces)
    
    
    209,847
    
    
    
    53,434
    
    
    
    
 44
      Fiscal year ended June 30,Target
    
    2005
    
    2004*
    
    2003Results of operations ($)Product sales (000)
    
    
    89,233
    
    
    
    19,772
    
    
    
    Cash cost (000)
    
    
    57,273
    
    
    
    11,514
    
    
    
    Cash profit (000)
    
    
    31,960
    
    
    
    8,258
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    273
    
    
    
    215
    
    
    
    Capex(000) ($)
    
    
    8,699
    
    
    
    1,175
    
    
    
    
 
 *
    
    The fiscal 2004 operating and production results for Target comprise of the two months ended June
30, 2004.    See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may
yield less gold under actual production conditions than Harmony currently estimates.
 Capital expenditure.
 Fiscal year ended June 30,Tshepong
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,700
    
    
    
    1,814
    
    
    
    1,834Recovered grade (ounces/ton)
    
    
    0.224
    
    
    
    0.215
    
    
    
    0.232Gold sold (ounces)
    
    
    380,695
    
    
    
    390,747
    
    
    
    424,766Results of operations ($)Product sales (000)
    
    
    162,958
    
    
    
    158,161
    
    
    
    139,552Cash cost (000)
    
    
    117,592
    
    
    
    103,321
    
    
    
    67,966Cash profit (000)
    
    
    45,366
    
    
    
    54,840
    
    
    
    71,586Cash costsPer ounce of gold ($)
    
    
    309
    
    
    
    264
    
    
    
    160Capex(000) ($)
    
    
    6,845
    
    
    
    8,731
    
    
    
    2,228
   45
      See Item 5. Operating and Financial Review
and Prospects  Exchange Rates.
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
   See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Masimong shaft complex
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,046
    
    
    
    1,378
    
    
    
    1,266Recovered grade (ounces/ton)
    
    
    0.153
    
    
    
    0.170
    
    
    
    0.142Gold sold (ounces)
    
    
    159,981
    
    
    
    234,307
    
    
    
    179,632Results of operations ($)Product sales (000)
    
    
    68,342
    
    
    
    90,164
    
    
    
    60,857Cash cost (000)
    
    
    72,282
    
    
    
    76,269
    
    
    
    43,898Cash profit (000)
    
    
    (3,940
    )
    
    
    13,895
    
    
    
    16,959Cash costsPer ounce of gold ($)
    
    
    452
    
    
    
    326
    
    
    
    244Capex(000) ($)
    
    
    3,736
    
    
    
    4,120
    
    
    
    7,169
  46
      See Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
  See Item 5. Operating and Financial Review
and Prospects  Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Evander 2
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    357
    
    
    
    491
    
    
    
    522Recovered grade (ounces/ton)
    
    
    0.137
    
    
    
    0.176
    
    
    
    0.170Gold sold (ounces)
    
    
    48,764
    
    
    
    86,172
    
    
    
    88,575Results of operations ($)Product sales (000)
    
    
    20,695
    
    
    
    33,216
    
    
    
    28,881Cash cost (000)
    
    
    30,967
    
    
    
    32,428
    
    
    
    20,373Cash profit (000)
    
    
    (10,272
    )
    
    
    788
    
    
    
    8,508Cash costsPer ounce of gold ($)
    
    
    635
    
    
    
    376
    
    
    
    230Capex(000) ($)
    
    
    15
    
    
    
    619
    
    
    
    459
  See
 47
      Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
  See Item 5. Operating and
Financial Review and Prospects  Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Evander 5
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    245
    
    
    
    223
    
    
    
    227Recovered grade (ounces/ton)
    
    
    0.192
    
    
    
    0.216
    
    
    
    0.219Gold sold (ounces)
    
    
    47,093
    
    
    
    48,103
    
    
    
    49,769Results of operations ($)Product sales (000)
    
    
    20,078
    
    
    
    18,559
    
    
    
    16,293Cash cost (000)
    
    
    19,353
    
    
    
    16,095
    
    
    
    11,356Cash profit (000)
    
    
    725
    
    
    
    2,464
    
    
    
    4,937Cash costsPer ounce of gold ($)
    
    
    411
    
    
    
    335
    
    
    
    228Capex(000) ($)
    
    
    2
    
    
    
    498
    
    
    
    259
  See Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
 48
      See Item 5. Operating and
Financial Review and Prospects  Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Evander 7
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    541
    
    
    
    577
    
    
    
    566Recovered grade (ounces/ton)
    
    
    0.240
    
    
    
    0.160
    
    
    
    0.188Gold sold (ounces)
    
    
    130,009
    
    
    
    92,505
    
    
    
    106,419Results of operations ($)Product sales (000)
    
    
    55,502
    
    
    
    35,566
    
    
    
    34,644Cash cost (000)
    
    
    36,872
    
    
    
    32,968
    
    
    
    22,518Cash profit (000)
    
    
    18,630
    
    
    
    2,598
    
    
    
    12,126Cash costsPer ounce of gold ($)
    
    
    284
    
    
    
    356
    
    
    
    212Capex(000) ($)
    
    
    3,871
    
    
    
    5,034
    
    
    
    4,044
   49
      See Item 5. Operating and
Financial Review and Prospects  Exchange Rates.
  See Item 3. Key Information  Risk
Factors  Harmonys gold reserve figures may yield less gold under actual production conditions
than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Evander 8
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    734
    
    
    
    692
    
    
    
    676Recovered grade (ounces/ton)
    
    
    0.207
    
    
    
    0.158
    
    
    
    0.139Gold sold (ounces)
    
    
    151,936
    
    
    
    109,513
    
    
    
    94,008Results of operations ($)Product sales (000)
    
    
    64,912
    
    
    
    41,945
    
    
    
    30,123Cash cost (000)
    
    
    46,245
    
    
    
    39,708
    
    
    
    27,293Cash profit (000)
    
    
    18,667
    
    
    
    2,237
    
    
    
    2,830Cash costsPer ounce of gold ($)
    
    
    304
    
    
    
    363
    
    
    
    290Capex(000) ($)
    
    
    3,472
    
    
    
    5,091
    
    
    
    3,977
     50
      See Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Cooke 1
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    520
    
    
    
    605
    
    
    
    741Recovered grade (ounces/ton)
    
    
    0.152
    
    
    
    0.172
    
    
    
    0.163Gold sold (ounces)
    
    
    79,101
    
    
    
    104,168
    
    
    
    120,819Results of operations ($)Product sales (000)
    
    
    33,888
    
    
    
    39,891
    
    
    
    39,722Cash cost (000)
    
    
    33,660
    
    
    
    31,632
    
    
    
    23,017Cash profit (000)
    
    
    228
    
    
    
    8,259
    
    
    
    16,705Cash costsPer ounce of gold ($)
    
    
    426
    
    
    
    304
    
    
    
    191Capex(000) ($)
    
    
    266
    
    
    
    825
    
    
    
    
  See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  See Item 5.
Operating and Financial Review and Prospects 
 51
      Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Cooke 2
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    403
    
    
    
    749
    
    
    
    790Recovered grade (ounces/ton)
    
    
    0.135
    
    
    
    0.121
    
    
    
    0.148Gold sold (ounces)
    
    
    54,441
    
    
    
    90,761
    
    
    
    116,639Results of operations ($)Product sales (000)
    
    
    23,274
    
    
    
    34,748
    
    
    
    38,255Cash cost (000)
    
    
    26,560
    
    
    
    34,237
    
    
    
    22,281Cash profit (000)
    
    
    (3,286
    )
    
    
    511
    
    
    
    15,974Cash costsPer ounce of gold ($)
    
    
    488
    
    
    
    377
    
    
    
    191Capex(000) ($)
    
    
    122
    
    
    
    789
    
    
    
    
  See Item 5. Operating and Financial
Review and Prospects  Exchange Rates.
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
   52
      See Item 3. Key Information  Risk
Factors  Harmonys gold reserve figures may yield less gold under actual production conditions
than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Cooke 3
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    740
    
    
    
    999
    
    
    
    1,108Recovered grade (ounces/ton)
    
    
    0.157
    
    
    
    0.134
    
    
    
    0.137Gold sold (ounces)
    
    
    116,300
    
    
    
    134,003
    
    
    
    151,553Results of operations ($)Product sales (000)
    
    
    49,478
    
    
    
    51,283
    
    
    
    49,829Cash cost (000)
    
    
    50,565
    
    
    
    50,066
    
    
    
    35,766Cash profit (000)
    
    
    (1,087
    )
    
    
    1,217
    
    
    
    14,063Cash costsPer ounce of gold ($)
    
    
    435
    
    
    
    374
    
    
    
    236Capex(000) ($)
    
    
    
    
    
    
    54
    
    
    
    232
  See Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
 2 2
 See Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 53
      Leveraged shafts
  Fiscal year ended June 30,2005
    
    2004
    
    2003ProductionTons (000)
    
    
    5,990
    
    
    
    9,238
    
    
    
    7,550Recovered grade (ounces/ton)
    
    
    0.140
    
    
    
    0.140
    
    
    
    0.146Gold sold (ounces)
    
    
    841,280
    
    
    
    1,295,315
    
    
    
    1,101,204Results of operations ($)Product sales (000)
    
    
    358,139
    
    
    
    491,690
    
    
    
    367,665Cash cost (000)
    
    
    429,619
    
    
    
    518,392
    
    
    
    278,619Cash profit (000)
    
    
    (71,480
    )
    
    
    (26,702
    )
    
    
    89,046Cash costsPer ounce of gold ($)
    
    
    511
    
    
    
    400
    
    
    
    253Capex(000) ($)
    
    
    6,144
    
    
    
    18,824
    
    
    
    15,664
      Fiscal year ended June 30,Bambanani
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,090
    
    
    
    1,606
    
    
    
    1,652Recovered grade (ounces/ton)
    
    
    0.181
    
    
    
    0.181
    
    
    
    0.226Gold sold (ounces)
    
    
    197,535
    
    
    
    290,210
    
    
    
    373,258Results of operations ($)Product sales (000)
    
    
    84,165
    
    
    
    110,244
    
    
    
    123,362Cash cost (000)
    
    
    91,573
    
    
    
    102,703
    
    
    
    73,938Cash profit (000)
    
    
    (7,408
    )
    
    
    7,541
    
    
    
    49,424Cash costsPer ounce of gold ($)
    
    
    464
    
    
    
    354
    
    
    
    198Capex(000) ($)
    
    
    3,893
    
    
    
    7,500
    
    
    
    2,660
  54
      See Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
  See Item 5. Operating and
Financial Review and Prospects  Exchange Rates.
   See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Evander 9
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    31
    
    
    
    202
    
    
    
    153Recovered grade (ounces/ton)
    
    
    0.083
    
    
    
    0.116
    
    
    
    0.113Gold sold (ounces)
    
    
    2,573
    
    
    
    23,440
    
    
    
    17,297Results of operations ($)Product sales (000)
    
    
    1,078
    
    
    
    9,079
    
    
    
    5,698Cash cost (000)
    
    
    3,005
    
    
    
    9,042
    
    
    
    4,660Cash profit (000)
    
    
    (1,927
    )
    
    
    37
    
    
    
    1,038Cash costsPer ounce of gold ($)
    
    
    1,168
    
    
    
    386
    
    
    
    269Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
   55
      See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
 Capital Expenditure.
 Fiscal year ended June 30,Joel
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    498
    
    
    
    565
    
    
    
    520Recovered grade (ounces/ton)
    
    
    0.129
    
    
    
    0.122
    
    
    
    0.119Gold sold (ounces)
    
    
    64,464
    
    
    
    68,694
    
    
    
    61,652Results of operations ($)Product sales (000)
    
    
    27,282
    
    
    
    25,526
    
    
    
    20,148Cash cost (000)
    
    
    31,408
    
    
    
    26,162
    
    
    
    17,584Cash profit (000)
    
    
    (4,126
    )
    
    
    (636
    )
    
    
    2,564Cash costsPer ounce of gold ($)
    
    
    487
    
    
    
    381
    
    
    
    285Capex(000) ($)
    
    
    165
    
    
    
    
    
    
    
    
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
   56
      See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
   See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Kudu/Sable
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    194
    
    
    
    275
    
    
    
    210Recovered grade (ounces/ton)
    
    
    0.130
    
    
    
    0.145
    
    
    
    0.161Gold sold (ounces)
    
    
    25,175
    
    
    
    39,848
    
    
    
    33,814Results of operations ($)Product sales (000)
    
    
    10,764
    
    
    
    14,612
    
    
    
    11,026Cash cost (000)
    
    
    18,885
    
    
    
    16,073
    
    
    
    8,912Cash profit (000)
    
    
    (8,121
    )
    
    
    (1,461
    )
    
    
    2,114Cash costsPer ounce of gold ($)
    
    
    750
    
    
    
    403
    
    
    
    264Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    194
  See Item 5. Operating and
Financial Review and Prospects  Exchange Rates.
   57
      See Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
   Capital Expenditure.
 Fiscal year ended June 30,West shaft
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    176
    
    
    
    200
    
    
    
    154Recovered grade (ounces/ton)
    
    
    0.160
    
    
    
    0.180
    
    
    
    0.169Gold sold (ounces)
    
    
    28,165
    
    
    
    36,071
    
    
    
    26,034Results of operations ($)Product sales (000)
    
    
    12,049
    
    
    
    14,039
    
    
    
    8,626Cash cost (000)
    
    
    13,014
    
    
    
    11,616
    
    
    
    6,112Cash profit (000)
    
    
    (965
    )
    
    
    2,423
    
    
    
    2,514Cash costsPer ounce of gold ($)
    
    
    462
    
    
    
    322
    
    
    
    235Capex(000) ($)
    
    
    
    
    
    
    1
    
    
    
    205
        58
      See Item 3. Key Information  Risk
Factors  Harmonys gold reserve figures may yield less gold under actual production conditions
than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Nyala
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    198
    
    
    
    112
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.119
    
    
    
    0.108
    
    
    
    Gold sold (ounces)
    
    
    23,503
    
    
    
    12,073
    
    
    
    Results of operations ($)Product sales (000)
    
    
    9,897
    
    
    
    4,645
    
    
    
    Cash cost (000)
    
    
    17,587
    
    
    
    4,063
    
    
    
    Cash profit (000)
    
    
    (7,690
    )
    
    
    582
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    748
    
    
    
    337
    
    
    
    Capex(000) ($)
    
    
    1,440
    
    
    
    7,276
    
    
    
    
      Capital Expenditure.
 Fiscal year ended June 30,Eland
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    175
    
    
    
    347
    
    
    
    402Recovered grade (ounces/ton)
    
    
    0.153
    
    
    
    0.146
    
    
    
    0.238Gold sold (ounces)
    
    
    26,782
    
    
    
    50,697
    
    
    
    95,670Results of operations ($)Product sales (000)
    
    
    11,436
    
    
    
    17,447
    
    
    
    31,664Cash cost (000)
    
    
    13,404
    
    
    
    24,501
    
    
    
    19,016Cash profit (000)
    
    
    (1,968
    )
    
    
    (7,054
    )
    
    
    12,648Cash costsPer ounce of gold ($)
    
    
    500
    
    
    
    483
    
    
    
    199Capex(000) ($)
    
    
    
    
    
    
    274
    
    
    
    164
  59
      Capital Expenditure.
 Fiscal year ended June 30,Deelkraal
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1
    
    
    
    522
    
    
    
    598Recovered grade (ounces/ton)
    
    
    2.284
    
    
    
    0.131
    
    
    
    0.138Gold sold (ounces)
    
    
    2,284
    
    
    
    68,127
    
    
    
    82,751Results of operations ($)Product sales (000)
    
    
    958
    
    
    
    26,206
    
    
    
    27,520Cash cost (000)
    
    
    714
    
    
    
    37,796
    
    
    
    26,077Cash profit (000)
    
    
    244
    
    
    
    (11,590
    )
    
    
    1,443Cash costsPer ounce of gold ($)
    
    
    313
    
    
    
    555
    
    
    
    315Capex(000) ($)
    
    
    
    
    
    
    1,305
    
    
    
    2,070
    Capital Expenditure.
 60
      Fiscal year ended June 30,St. Helena
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    245
    
    
    
    507
    
    
    
    406Recovered grade (ounces/ton)
    
    
    0.122
    
    
    
    0.140
    
    
    
    0.127Gold sold (ounces)
    
    
    29,965
    
    
    
    71,027
    
    
    
    51,370Results of operations ($)Product sales (000)
    
    
    12,660
    
    
    
    25,124
    
    
    
    16,100Cash cost (000)
    
    
    25,092
    
    
    
    31,402
    
    
    
    20,140Cash profit (000)
    
    
    (12,432
    )
    
    
    (6,278
    )
    
    
    (4,040
    )Cash costsPer ounce of gold ($)
    
    
    837
    
    
    
    442
    
    
    
    392Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    8,240
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  See Item 5. Operating and Financial Review and Prospects  Exchange
Rates.
   Capital Expenditure.
 61
      Fiscal year ended June 30,Harmony 2
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    559
    
    
    
    643
    
    
    
    586Recovered grade (ounces/ton)
    
    
    0.123
    
    
    
    0.136
    
    
    
    0.118Gold sold (ounces)
    
    
    68,547
    
    
    
    87,472
    
    
    
    69,174Results of operations ($)Product sales (000)
    
    
    29,295
    
    
    
    33,541
    
    
    
    23,816Cash cost (000)
    
    
    33,576
    
    
    
    32,216
    
    
    
    15,765Cash profit (000)
    
    
    (4,281
    )
    
    
    1,325
    
    
    
    8,051Cash costsPer ounce of gold ($)
    
    
    490
    
    
    
    368
    
    
    
    228Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    46
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 62
      Fiscal year ended June 30,Harmony 4
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    
    
    
    
    3Recovered grade (ounces/ton)
    
    
    
    
    
    
    
    
    
    
    0.096Gold sold (ounces)
    
    
    
    
    
    
    
    
    
    
    289Results of operations ($)Product sales (000)
    
    
    
    
    
    
    
    
    
    
    105Cash cost (000)
    
    
    
    
    
    
    
    
    
    
    496Cash profit (000)
    
    
    
    
    
    
    
    
    
    
    (391
    )Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    
    
    
    
    1,716Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Fiscal year ended June 30,Merriespruit 1
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    414
    
    
    
    477
    
    
    
    438Recovered grade (ounces/ton)
    
    
    0.110
    
    
    
    0.124
    
    
    
    0.115Gold sold (ounces)
    
    
    45,559
    
    
    
    59,062
    
    
    
    50,545Results of operations ($)Product sales (000)
    
    
    19,428
    
    
    
    22,681
    
    
    
    17,191Cash cost (000)
    
    
    24,552
    
    
    
    24,235
    
    
    
    12,340Cash profit (000)
    
    
    (5,124
    )
    
    
    (1,554
    )
    
    
    4,851Cash costsPer ounce of gold ($)
    
    
    539
    
    
    
    410
    
    
    
    244Capex(000) ($)
    
    
    
    
    
    
    315
    
    
    
    221
  See Item 5. Operating and Financial
Review and Prospects  Exchange Rates.
  See Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
 63
      See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Merriespruit 3
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    548
    
    
    
    743
    
    
    
    718Recovered grade (ounces/ton)
    
    
    0.100
    
    
    
    0.104
    
    
    
    0.091Gold sold (ounces)
    
    
    54,690
    
    
    
    76,956
    
    
    
    65,189Results of operations ($)Product sales (000)
    
    
    23,325
    
    
    
    29,570
    
    
    
    22,327Cash cost (000)
    
    
    25,447
    
    
    
    32,507
    
    
    
    18,696Cash profit (000)
    
    
    (2,122
    )
    
    
    (2,937
    )
    
    
    3,631Cash costsPer ounce of gold ($)
    
    
    465
    
    
    
    422
    
    
    
    287Capex(000) ($)
    
    
    628
    
    
    
    
    
    
    
    
  See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  64
      See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Unisel
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    494
    
    
    
    677
    
    
    
    778Recovered grade (ounces/ton)
    
    
    0.132
    
    
    
    0.134
    
    
    
    0.097Gold sold (ounces)
    
    
    65,011
    
    
    
    91,020
    
    
    
    75,439Results of operations ($)Product sales (000)
    
    
    27,798
    
    
    
    35,014
    
    
    
    26,102Cash cost (000)
    
    
    35,202
    
    
    
    37,105
    
    
    
    21,362Cash profit (000)
    
    
    (7,404
    )
    
    
    (2,091
    )
    
    
    4,740Cash costsPer ounce of gold ($)
    
    
    541
    
    
    
    408
    
    
    
    283Capex(000) ($)
    
    
    
    
    
    
    1,329
    
    
    
    1,825
  See item 5. Operating and
Financial Review and Prospects  Exchange Rates.
  See Item 5.
Operating and Financial Review and Prospects  Exchange Rates.
   65
      See Item 3. Key Information  Risk
Factors  Harmonys gold reserve figures may yield less gold under actual production conditions
than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Brand 3
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    448
    
    
    
    531
    
    
    
    422Recovered grade (ounces/ton)
    
    
    0.103
    
    
    
    0.112
    
    
    
    0.111Gold sold (ounces)
    
    
    46,299
    
    
    
    59,558
    
    
    
    46,736Results of operations ($)Product sales (000)
    
    
    19,807
    
    
    
    22,985
    
    
    
    16,044Cash cost (000)
    
    
    24,150
    
    
    
    24,015
    
    
    
    14,009Cash profit (000)
    
    
    (4,343
    )
    
    
    (1,030
    )
    
    
    2,035Cash costsPer ounce of gold ($)
    
    
    522
    
    
    
    403
    
    
    
    300Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  See Item 5. Operating and Financial
Review and Prospects  Exchange Rates.
  See Item 5.
Operating and Financial Review and Prospects  Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 66
      Fiscal year ended June 30,Brand 5
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    153
    
    
    
    507Recovered grade (ounces/ton)
    
    
    0
    
    
    
    0.126
    
    
    
    0.102Gold sold (ounces)
    
    
    33
    
    
    
    19,262
    
    
    
    51,696Results of operations ($)Product sales (000)
    
    
    8
    
    
    
    7,442
    
    
    
    17,832Cash cost (000)
    
    
    2,120
    
    
    
    13,331
    
    
    
    19,261Cash profit (000)
    
    
    (2,112
    )
    
    
    (5,889
    )
    
    
    (1,429
    )Cash costsPer ounce of gold ($)
    
    
    64,242
    
    
    
    692
    
    
    
    373Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    39
   See Item 5. Operating and Financial
Review and Prospects  Exchange Rates.
 Capital Expenditure.
 Fiscal year ended June 30,Virginia
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    
    
    
    
    3Recovered grade (ounces/ton)
    
    
    
    
    
    
    
    
    
    
    0.097Gold sold (ounces)
    
    
    
    
    
    
    
    
    
    
    290Results of operations ($)Product sales (000)
    
    
    
    
    
    
    
    
    
    
    104Cash cost (000)
    
    
    
    
    
    
    
    
    
    
    251Cash profit (000)
    
    
    
    
    
    
    
    
    
    
    (147
    )Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    
    
    
    
    866Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  67
      Fiscal year ended June 30,Orkney 1
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    3
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.107
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    322
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    123
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    194
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    (71
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    602
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Fiscal year ended June 30,Orkney 2
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    413
    
    
    
    387
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.190
    
    
    
    0.210
    
    
    
    Gold sold (ounces)
    
    
    78,449
    
    
    
    81,434
    
    
    
    Results of operations ($)Product sales (000)
    
    
    33,279
    
    
    
    31,435
    
    
    
    Cash cost (000)
    
    
    32,938
    
    
    
    26,892
    
    
    
    Cash profit (000)
    
    
    341
    
    
    
    4,543
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    420
    
    
    
    330
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
   See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  See Item 3. Key information  Risk Factors  Harmonys
gold reserve figures may yield less gold under actual production conditions than Harmony currently
estimates.
 68
      Capital Expenditure.
 Fiscal year ended June 30,Orkney 3
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    137
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.083
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    11,413
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    4,425
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    6,440
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    (2,015
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    564
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    464
    
    
    
    
  Fiscal year ended June 30,Orkney 4
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    455
    
    
    
    401
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.169
    
    
    
    0.169
    
    
    
    Gold sold (ounces)
    
    
    76,971
    
    
    
    67,931
    
    
    
    Results of operations ($)Product sales (000)
    
    
    32,720
    
    
    
    26,269
    
    
    
    Cash cost (000)
    
    
    30,517
    
    
    
    20,243
    
    
    
    Cash profit (000)
    
    
    2,203
    
    
    
    6,026
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    396
    
    
    
    298
    
    
    
    Capex(000) ($)
    
    
    14
    
    
    
    160
    
    
    
    
   See Item 5.
Operating and Financial Review and Prospects  Exchange Rates.
   69
      See
Item 3. Key information  Risk Factors  Harmonys gold reserve figures may yield less gold under
actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Orkney 6
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    157
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.070
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    11,060
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    4,304
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    5,378
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    (1,074
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    486
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Fiscal year ended June 30,Orkney 7
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    28
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.162
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    4,533
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    1,760
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    1,970
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    (210
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    435
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  70
      Fiscal year ended June 30,Saaiplaas 3
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    30
    
    
    
    254
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.085
    
    
    
    0.105
    
    
    
    Gold sold (ounces)
    
    
    2,541
    
    
    
    26,783
    
    
    
    Results of operations ($)Product sales (000)
    
    
    1,026
    
    
    
    10,331
    
    
    
    Cash cost (000)
    
    
    4,831
    
    
    
    13,485
    
    
    
    Cash profit (000)
    
    
    (3,805
    )
    
    
    (3,154
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    1,901
    
    
    
    503
    
    
    
    Capex
    
    
    4
    
    
    
    200
    
    
    
    
    Capital Expenditure.
 Fiscal year ended June 30,Welkom 1
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    21
    
    
    
    159
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.130
    
    
    
    0.121
    
    
    
    Gold sold (ounces)
    
    
    2,734
    
    
    
    19,226
    
    
    
    Results of operations ($)Product sales (000)
    
    
    1,164
    
    
    
    7,415
    
    
    
    Cash cost (000)
    
    
    1,604
    
    
    
    9,939
    
    
    
    Cash profit (000)
    
    
    (440
    )
    
    
    (2,524
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    587
    
    
    
    517
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
    Capital Expenditure.
 71
      Fiscal year ended June 30,Welkom 2
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    12
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.113
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    1,350
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    525
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    547
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    (22
    )
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    405
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Fiscal year ended June 30,Welkom 3
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    15
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.101
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    1,511
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    592
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    581
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    11
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    385
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Fiscal year ended June 30,Welkom 4
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    13
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.302
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    3,922
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    1,531
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    1,496
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    35
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    381
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  72
      Fiscal year ended June 30,Welkom 6
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    24
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.100
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    2,411
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    935
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    894
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    41
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    371
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Fiscal year ended June 30,Welkom 7
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    88
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.113
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    9,902
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    3,890
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    3,566
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    324
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    360
    
    
    
    Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    
  Growth shafts
  Fiscal year ended June 30,2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,545
    
    
    
    2,004
    
    
    
    1,991Recovered grade (ounces/ton)
    
    
    0.168
    
    
    
    0.158
    
    
    
    0.166Gold sold (ounces)
    
    
    260,066
    
    
    
    315,815
    
    
    
    330,431Results of operations ($)Product sales (000)
    
    
    111,055
    
    
    
    121,744
    
    
    
    108,476Cash cost (000)
    
    
    126,121
    
    
    
    123,706
    
    
    
    84,990Cash profit (000)
    
    
    (15,066
    )
    
    
    (1,962
    )
    
    
    23,486Cash costsPer ounce of gold ($)
    
    
    485
    
    
    
    392
    
    
    
    257Capex(000) ($)
    
    
    59,509
    
    
    
    47,218
    
    
    
    14,392
 73
      Fiscal year ended June 30,Elandsrand
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,019
    
    
    
    1,437
    
    
    
    1,468Recovered grade (ounces/ton)
    
    
    0.204
    
    
    
    0.174
    
    
    
    0.180Gold sold (ounces)
    
    
    207,371
    
    
    
    250,581
    
    
    
    264,525Results of operations ($)Product sales (000)
    
    
    88,577
    
    
    
    96,831
    
    
    
    86,926Cash cost (000)
    
    
    99,150
    
    
    
    100,657
    
    
    
    69,864Cash profit (000)
    
    
    (10,573
    )
    
    
    (3,826
    )
    
    
    17,062Cash costsPer ounce of gold ($)
    
    
    478
    
    
    
    402
    
    
    
    264Capex(000) ($)
    
    
    15,530
    
    
    
    16,057
    
    
    
    12,757
  See Item 5. Operating and Financial Review and Prospects Exchange Rates
  See Item 5. Operating and Financial Review and Prospects Exchange
Rates
  74
      See Item 3. Key Information  Risk Factors  Harmonys gold
reserve figures may yield less gold under actual production conditions than Harmony currently
estimates.
 Elandsrand New Mine Project.
 Capital Expenditure. South African Operations  General  Elandskraal Operations.
 Fiscal year ended June 30,Doornkop
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    526
    
    
    
    567
    
    
    
    523Recovered grade (ounces/ton)
    
    
    0.100
    
    
    
    0.115
    
    
    
    0.126Gold sold (ounces)
    
    
    52,695
    
    
    
    65,234
    
    
    
    65,906Results of operations ($)Product sales (000)
    
    
    22,478
    
    
    
    24,913
    
    
    
    21,550Cash cost (000)
    
    
    26,971
    
    
    
    23,049
    
    
    
    15,126Cash profit (000)
    
    
    (4,493
    )
    
    
    1,864
    
    
    
    6,424Cash costsPer ounce of gold ($)
    
    
    512
    
    
    
    353
    
    
    
    230Capex(000) ($)
    
    
    25,223
    
    
    
    14,316
    
    
    
    1,635
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
   See Item 5. Operating and Financial Review and Prospects  Exchange
Rates.
 75
      See Item 3. Key Information  Risk Factors  Harmonys gold reserve
figures may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure. South African Operations  General 
Randfontein Operations 
 Fiscal year ended June 30,Phakisa
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    
    
    
    
    Recovered grade (ounces/ton)
    
    
    
    
    
    
    
    
    
    
    Gold sold (ounces)
    
    
    
    
    
    
    
    
    
    
    Results of operations ($)Product sales (000)
    
    
    
    
    
    
    
    
    
    
    Cash cost (000)
    
    
    
    
    
    
    
    
    
    
    Cash profit (000)
    
    
    
    
    
    
    
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    
    
    
    
    Capex(000) ($)
    
    
    18,756
    
    
    
    16,845
    
    
    
    
  See Item 3. Key Information  Risk Factors  Harmonys gold
reserve figures may yield less gold under actual production conditions than Harmony currently
estimates.
 Capital Expenditure. South African Operations 
General  Free Gold Operations 
 Surface operations
  76
      Fiscal year ended June 30,2005
    
    2004
    
    2003ProductionTons (000)
    
    
    6,528
    
    
    
    11,026
    
    
    
    11,146Recovered grade (ounces/ton)
    
    
    0.029
    
    
    
    0.019
    
    
    
    0.022Gold sold (ounces)
    
    
    188,904
    
    
    
    208,744
    
    
    
    248,075Results of operations ($)Product sales (000)
    
    
    80,222
    
    
    
    80,321
    
    
    
    81,546Cash cost (000)
    
    
    84,892
    
    
    
    71,498
    
    
    
    55,636Cash profit (000)
    
    
    (4,670
    )
    
    
    8,823
    
    
    
    25,910Cash costsPer ounce of gold ($)
    
    
    449
    
    
    
    343
    
    
    
    224Capex(000) ($)
    
    
    5,675
    
    
    
    14,099
    
    
    
    11,691
       Fiscal year ended June 30,Kalgold
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,855
    
    
    
    1,530
    
    
    
    1,195Recovered grade (ounces/ton)
    
    
    0.058
    
    
    
    0.054
    
    
    
    0.062Gold sold (ounces)
    
    
    108,195
    
    
    
    82,756
    
    
    
    74,590Results of operations ($)Product sales (000)
    
    
    46,331
    
    
    
    31,532
    
    
    
    24,536Cash cost (000)
    
    
    51,554
    
    
    
    28,511
    
    
    
    16,552Cash profit (000)
    
    
    (5,223
    )
    
    
    3,021
    
    
    
    7,984Cash costsPer ounce of gold ($)
    
    
    476
    
    
    
    345
    
    
    
    222Capex(000) ($)
    
    
    (4,145
    )
    
    
    4,405
    
    
    
    4,265
  See Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
 77
      See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
   See Item 3. Key Information  Risk Factors  Harmonys gold reserve figures
may yield less gold under actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Elandsrand
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    451
    
    
    
    1,228Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.012
    
    
    
    0.016Gold sold (ounces)
    
    
    
    
    
    
    5,301
    
    
    
    19,323Results of operations ($)Product sales (000)
    
    
    
    
    
    
    2,047
    
    
    
    6,442Cash cost (000)
    
    
    
    
    
    
    2,640
    
    
    
    4,518Cash profit (000)
    
    
    
    
    
    
    (593
    )
    
    
    1,924Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    498
    
    
    
    234Capex(000) ($)
    
    
    7
    
    
    
    294
    
    
    
    161
   See Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
 Capital Expenditure.
 78
      Fiscal year ended June 30,Evander
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    
    
    
    
    101
    
    
    
    201Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.019
    
    
    
    0.020Gold sold (ounces)
    
    
    
    
    
    
    1,961
    
    
    
    4,116Results of operations ($)Product sales (000)
    
    
    
    
    
    
    756
    
    
    
    1,278Cash cost (000)
    
    
    
    
    
    
    496
    
    
    
    913Cash profit (000)
    
    
    
    
    
    
    260
    
    
    
    365Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    253
    
    
    
    221Capex(000) ($)
    
    
    
    
    
    
    2,367
    
    
    
    1,181
   See
Item 5. Operating and Financial Review and Prospects  Exchange Rates.
 Capital Expenditure.
 Fiscal year ended June 30,Freegold
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,361
    
    
    
    4,148
    
    
    
    5,146Recovered grade (ounces/ton)
    
    
    0.027
    
    
    
    0.018
    
    
    
    0.017Gold sold (ounces)
    
    
    36,420
    
    
    
    73,122
    
    
    
    88,864Results of operations ($)Product sales (000)
    
    
    15,407
    
    
    
    28,507
    
    
    
    28,924Cash cost (000)
    
    
    15,436
    
    
    
    23,972
    
    
    
    19,108Cash profit (000)
    
    
    (29
    )
    
    
    4,535
    
    
    
    9,816Cash costsPer ounce of gold ($)
    
    
    424
    
    
    
    328
    
    
    
    215Capex(000) ($)
    
    
    314
    
    
    
    21
    
    
    
    25
  See Item 5. Operating and Financial
Review and Prospects  Exchange Rates.
 79
      See Item 5. Operating and Financial Review and Prospects 
Exchange Rates.
  See Item 3. Key Information  Risk Factors  Harmonys gold
reserve figures are estimated based on a number of assumptions, including assumptions as to mining
and recovery factors, future cash operating costs and the price of gold and may yield less gold
under actual production conditions than currently estimated.
 Capital Expenditure.
 Fiscal year ended June 30,Free State
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    467
    
    
    
    2,368
    
    
    
    1,164Recovered grade (ounces/ton)
    
    
    0.020
    
    
    
    0.011
    
    
    
    0.021Gold sold (ounces)
    
    
    9,542
    
    
    
    26,732
    
    
    
    24,209Results of operations ($)Product sales (000)
    
    
    3,720
    
    
    
    10,215
    
    
    
    8,067Cash cost (000)
    
    
    3,318
    
    
    
    9,289
    
    
    
    6,550Cash profit (000)
    
    
    402
    
    
    
    926
    
    
    
    1,517Cash costsPer ounce of gold ($)
    
    
    348
    
    
    
    347
    
    
    
    271Capex(000) ($)
    
    
    1,589
    
    
    
    2,501
    
    
    
    4,364
    80
      See Item 5.
Operating and Financial Review and Prospects  Exchange Rates.
 Capital Expenditure.
 Fiscal year ended June 30,Randfontein
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    2,757
    
    
    
    2,428
    
    
    
    2,212Recovered grade (ounces/ton)
    
    
    0.012
    
    
    
    0.008
    
    
    
    0.017Gold sold (ounces)
    
    
    33,397
    
    
    
    18,872
    
    
    
    36,973Results of operations ($)Product sales (000)
    
    
    14,185
    
    
    
    7,264
    
    
    
    12,299Cash cost (000)
    
    
    14,117
    
    
    
    6,590
    
    
    
    7,995Cash profit (000)
    
    
    68
    
    
    
    674
    
    
    
    4,304Cash costsPer ounce of gold ($)
    
    
    423
    
    
    
    349
    
    
    
    216Capex(000) ($)
    
    
    6,120
    
    
    
    4,511
    
    
    
    1,695
   See Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
  See Item 5. Operating and Financial Review and Prospects  Exchange Rates.
  81
      See
Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield less gold under
actual production conditions than Harmony currently estimates.
 Capital Expenditure.
 Fiscal year ended June 30,Target
    
    2005
    
    2004
    
    2003ProductionTons (000)
    
    
    88
    
    
    
    
    
    
    
    Recovered grade (ounces/ton)
    
    
    0.015
    
    
    
    
    
    
    
    Gold sold (ounces)
    
    
    1,350
    
    
    
    
    
    
    
    Results of operations ($)Product sales (000)
    
    
    579
    
    
    
    
    
    
    
    Cash cost (000)
    
    
    467
    
    
    
    
    
    
    
    Cash profit (000)
    
    
    112
    
    
    
    
    
    
    
    Cash costsPer ounce of gold ($)
    
    
    346
    
    
    
    
    
    
    
    Capex(000) ($)
    
    
    1,790
    
    
    
    
    
    
    
    
  Capital Expenditure.
 Australian Operations
 Overview
    82
      Fiscal year ended June 30,2005
    
    20041
    
    20032ProductionTons (000)
    
    
    4,139
    
    
    
    5,227
    
    
    
    7,883Recovered grade (ounces/ton)
    
    
    0.072
    
    
    
    0.065
    
    
    
    0.065Gold sold (ounces)
    
    
    296,848
    
    
    
    338,288
    
    
    
    509,654Results of operations ($)Product sales (000)
    
    
    125,669
    
    
    
    131,435
    
    
    
    165,351Cash cost (000)
    
    
    100,176
    
    
    
    110,475
    
    
    
    138,808Cash profit (000)
    
    
    25,493
    
    
    
    21,960
    
    
    
    31,246Cash costsPer ounce of gold ($)
    
    
    337
    
    
    
    327
    
    
    
    272Capex(000) ($)
    
    
    40,042
    
    
    
    30,502
    
    
    
    157,100
 
 1
    
    Includes gold sales from Abelles Gidgee Operations for 5 months until November
2003.2
    
    Includes gold sales from Abelles Gidgee Operations for two months from May 1, 2003.   83
      Capital expenditure
 Big Bell Operations
 History
   Geology.
 Mining Operations Item 3. Key Information  Risk Factors  To maintain gold production beyond the
expected lives of Harmonys existing mines or increase production materially above projected
levels, Harmony will need to access additional reserves through development or discovery.
  84
      Fiscal year ended June 30,2005
    
    20041
    
    2003ProductionTons (000)
    
    
    
    
    
    
    120
    
    
    
    2,147Recovered grade (ounces/ton)
    
    
    
    
    
    
    0.096
    
    
    
    0.062Gold sold (ounces)
    
    
    
    
    
    
    11,574
    
    
    
    132,579Results of operations ($)Product sales (000)
    
    
    
    
    
    
    4,079
    
    
    
    42,922Cash cost (000)
    
    
    
    
    
    
    3,713
    
    
    
    44,824Cash profit (000)
    
    
    
    
    
    
    366
    
    
    
    (1,902
    )Cash costsPer ounce of gold ($)
    
    
    
    
    
    
    321
    
    
    
    338Capex(000) ($)
    
    
    
    
    
    
    
    
    
    
    1,080
 
 1
    
    Production consists of plant clean up tons and ounces during
July 2003. Big Bell ceased operations for the remainder of
fiscal 2004 and was subject to cleanup and rehabilitation
work.   Plant.
  Capital Expenditure.
 Rehabilitation Expenditure
 Mt. Magnet Operations
 History.
 Geology.
 85
      Mining Operations.
   Item 3. Key Information  Risk Factors  To maintain gold production beyond
the expected lives of Harmonys existing mines or increase productivity materially above projected
levels, Harmony will need to access additional reserves through development or discovery.
  Fiscal year ended June 30,2005
    
    2004
    
    2003ProductionTons (000)
    
    
    2,743
    
    
    
    3,058
    
    
    
    2,922Recovered grade (ounces/ton)
    
    
    0.066
    
    
    
    0.057
    
    
    
    0.063Gold sold (ounces)
    
    
    181,233
    
    
    
    173,228
    
    
    
    182,690Results of operations ($)Product sales (000)
    
    
    77,242
    
    
    
    67,714
    
    
    
    61,676Cash cost (000)
    
    
    60,914
    
    
    
    58,202
    
    
    
    42,595Cash profit (000)
    
    
    16,328
    
    
    
    9,512
    
    
    
    19,081Cash costsPer ounce of gold ($)
    
    
    336
    
    
    
    336
    
    
    
    233Capex(000) ($)
    
    
    15,652
    
    
    
    13,596
    
    
    
    14,870
  86
      Item 3. Key Information  Risk Factors 
Harmonys gold reserve figures may yield less gold under actual production conditions than Harmony
currently estimates.
 Plant.
 AverageMilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Mt. Magnet
    
    
    243,000
    
    
    
    228,583
  Capital Expenditure.
 South Kalgoorlie Operations
 History.
 87
      Geology.
 Mining Operations.
 Item 3. Key
Information  Risk Factors  To maintain or increase productivity materially above projected
levels, Harmony will need to access additional reserves through development or discovery.
    88
      Fiscal year ended June 30,2005
    
    2004
    
    2003ProductionTons (000)
    
    
    1,266
    
    
    
    1,843
    
    
    
    2,749Recovered grade (ounces/ton)
    
    
    0.091
    
    
    
    0.065
    
    
    
    0.067Gold sold (ounces)
    
    
    115,615
    
    
    
    120,532
    
    
    
    182,851Results of operations ($)Product sales (000)
    
    
    48,427
    
    
    
    46,651
    
    
    
    57,372Cash cost (000)
    
    
    39,262
    
    
    
    38,848
    
    
    
    49,139Cash profit (000)
    
    
    9,165
    
    
    
    7,803
    
    
    
    8,233Cash costsPer ounce of gold ($)
    
    
    340
    
    
    
    322
    
    
    
    269Capex(000) ($)
    
    
    10,161
    
    
    
    5,435
    
    
    
    6,299
  Item 3. Key
Information  Risk Factors  Harmonys gold reserve figures may yield less gold under actual
production conditions than Harmony currently estimates.
 Plants.
   AverageMilledfor the fiscalProcessing
    
    year endedCapacity
    
    June 30, 2005Plant
    
    (tons/month)
    
    (tons/month)Jubilee
    
    
    122,000
    
    
    
    105,500New Celebration
    
    
    138,000
    
    
    
    *
  
 *
    
    The New Celebration plant is currently on care-and-maintenance. 89
      Capital Expenditure.
 Burnside Joint Venture  Northern Territory Operations
 History.
 Burnside Joint Venture.
  Geology.
    90
      Item 8. Recent
Developments.
 Abelle
 History.
 Introduction.
  Gidgee Gold Mine
 History.
 Geology.
 91
      Operations Summary.
    Five months
    
    Fiscal yearended
    
    endedNovember 30,
    
    June 30,20031
    
    20032ProductionTons (000)
    
    
    206
    
    
    
    65Recovered grade (ounces/ton)
    
    
    0.160
    
    
    
    0.177Gold sold (ounces)
    
    
    32,954
    
    
    
    11,534Results of operations ($)Product sales (000)
    
    
    12,991
    
    
    
    3,381Cash cost (000)
    
    
    9,712
    
    
    
    2,251Cash profit (000)
    
    
    3,279
    
    
    
    1,130Cash costsPer ounce of gold ($)
    
    
    295
    
    
    
    195Capex(000) ($)
    
    
    9,614
    
    
    
    123,575
 
 1
    
    Consists of 5 months of production up to November 2003 included in Harmony Australias results.2
    
    Consists of 2 months of production included in Harmony Australias results. Mining operations.
 Papua New Guinea Operations
 Introduction.
  92
      Geology.
      Hidden Valley Project
 Background.
    93
      Project Overview.
    Location and access.
 Government royalty and other rights.
  Third Party Royalties.
 Gold production (oz)
    
    Royalty (%)< 200,000
    
    
    0.0200,001  1,000,000
    
    
    2.01,000,001  5,000,000
    
    
    3.5> 5,000,000
    
    
    2.0
 Additional Prospects and Exploration Potential.
 94
      Capital Expenditure.
 Wafi Project
 Background.
 Project Overview.
  
    
    Oxide mineralization with recoveries of 95% by conventional cyanidation
    
    Transitional mineralization with recoveries of 86% via conventional cyanidation, and
    
    Primary mineralization which is further divided into two ore types these being Zones A and B primary mineralization
with conventional cyanidation recoveries of 50% and the high grade (5 g/t) Link Zone mineralization with conventional
cyanidation recoveries of 20%.
   95
      Capital Expenditure.
 Golpu Copper-Gold Project
     
    
    Gold Cap  which has had no metallurgical test work, but
indications are the ore will be free milling, however the presence
of copper will need to be considered.
    
    Supergene /transitional zone  which consists of an oxidized
supergene copper enriched zone overlaying a lower grade
covellite-enargite porphyry. Preliminary metallurgical test work
undertaken by Rio Tinto has shown that the flotation response is
poor with copper recoveries of 70% into a copper concentrate of
25% copper. Blending has been proposed for this ore zone.
    
    High Arsenic Zone  which consists of a complex suite of copper
minerals including arsenic rich enargite and tennatite. Flotation
response is good, however the arsenic floats with the concentrate
resulting in copper concentrates containing 1 to 3% arsenic, which
would incur significant smelter penalties. Controlled blending is
also proposed for this ore zone.
 96
      
    
    Low Arsenic Zone  which consists of almost exclusively
chalcopyrite, the flotation response is excellent with recoveries
of 92% into a 30% copper concentrate.
   ̈ Geotechnical and resource definition drilling ̈ Road upgrades to improve site access ̈ Mining optimisation studies ̈ Metallurgical testwork and conceptual process route selection ̈ Infrastructure studies ̈ Human Resource management ̈ Environment data collection and studies ̈ External Relation data collection and studies ̈ Concentrate marketing development
 Geography.
  Mining reserves.
 Government royalty and other rights.
  Third Party Royalties.
 Capital Expenditure.
 Mt. Muro Project Indonesia
    97
      Canadian Operations
 Bissett
 Introduction.
 98
      REGULATION
 Mineral Rights  South Africa
     
    
    to recognize the internationally accepted right of the state of South Africa to exercise full and permanent sovereignty
over all the mineral and petroleum resources within South Africa;
    
    to give effect to the principle of South Africas custodianship of its mineral and petroleum resources;
    
    to promote equitable access to South Africas mineral and petroleum resources to all the people of South Africa and
redress the impact of past discrimination;
    
    to substantially and meaningfully expand opportunities for historically disadvantaged persons including women, to enter
the mineral and petroleum industry and to benefit from the exploitation of South Africas mineral and petroleum
resources;
    
    to promote economic growth and mineral and petroleum resources development in South Africa;
    
    to promote employment and advance the social and economic welfare of all South Africans;
    
    to provide security of tenure in respect of prospecting, exploration, mining and production operations;
    
    to give effect to Section 24 of the South African Constitution by ensuring that South Africas mineral and petroleum
resources are developed in an orderly and ecologically sustainable manner while promoting justifiable social and
economic development;
    
    to follow the principle that mining companies keep and use their mineral rights, with no expropriation and with
guaranteed compensation for mineral rights; and
    
    to ensure that holders of mining and production rights contribute towards socio-economic development of the areas in
which they are operating.
    99
      Mineral Rights  Australia
    Environmental Matters
 South Africa
   100
      
    
    clean up the surface environment after mining and ensure certificates of closure;
    
    promote clean mining and minerals processing;
    
    support the companys social plan requirements (such as the Mineral and Petroleum
Resources Development Act (MPRDA) and Mining Charter), BEE and local community
involvement;
    
    reduce environmental liabilities by 10% per annum; and
    
    self-fund environmental rehabilitation through economic activities/savings, thus
contributing to the bottom line.
  
    
    all relevant environmental risks should be identified and prioritized;
    
    environmental issues should be dealt with promptly;
    
    environmental issues, particularly relating to continuous non-compliance or
potentially serious environmental impacts, should be dealt with at the board
level; and
    
    we will adopt the best practicable environmental option; that is, the option that
has most benefit, or causes the least damage to the environment, at a cost
acceptable to society and affordable to us.
  
    
    that environmental management is a corporate priority;
    
    that environmental policies, programs and practices will be integrated into the activities of the company;
    
    that we will strive for continued improvement and efficiency;
    
    that we will work with government departments and the public to come up with the best sustainable solutions;
    
    that contractors and suppliers will be required to comply with the Harmony policy; and
    
    that employees will be informed and educated regarding their environmental responsibilities.
     101
      
    
    environmental inspection: general inspections are performed routinely and systematically with collected data entered
into the system to enable follow up actions.
    
    risk assessment: detailed and specific risk assessments are conduced to help identify deviations that may not have been
otherwise anticipated.
    
    stakeholder communication: all communication is managed and may result in action items for the organization for which
the stakeholder will require follow up feedback. All such communication is logged.
    
    monitoring: impact monitoring is focused on collecting and analyzing environmental data that may well result in follow
up actions.
    
    licenses/permits: all details relating to licenses or permits can be registered in the system.
    
    major loss, incident and accident notification: when an incident occurs, initial information about the incident is
recorded to trigger a notification process.
     102
      Australia
        103
      Health and Safety Matters
 The Mine Health and Safety Act.
 
    
    to protect the health and safety of persons at mines;
    
    to require employers and employees to identify hazards and eliminate, control and minimize the risks
relating to health and safety at mines;
    
    to give effect to the public international law obligations of South Africa that concern health and safety
at mines;
    
    to provide for employee participation in matters of health and safety through health and safety
representatives and the health and safety committees at mines;
    
    to provide for effective monitoring of health and safety conditions at mines;
    
    to provide for enforcement of health and safety measures at mines;
    
    to provide for investigations and inquiries to improve health and safety at mines; and
    
    to promote:
 
    
    a culture of health and safety in the mining industry;
    
    training in health and safety in the mining industry; and
    
    co-operation and consultation on health and safety between the State,
employers, employees and their representatives.
   HIV/AIDS Policy. Item 3. Key Information  Risk Factors  HIV/AIDS
poses risks to Harmony in terms of productivity and costs and Key Information  Risk Factors 
The cost of occupational healthcare services may increase in the future.
  104
      105
      Item 5. Operating and Financial Review and Prospects
 You should read the following discussion and analysis together with the consolidated financial
statements, including the related notes, appearing elsewhere in this annual report.
 OVERVIEW
   o
    
    quality shafts, which are typically those with a larger reserve base
and longer life, which form the core of the groups production;o
    
    leveraged shafts, which are those that supplement production and
provide the upside in the event of a positive swing in the Rand gold
price;o
    
    growth shafts, which comprise the expansion projects established
through existing infrastructure, as well as the three new mines we are
building in South Africa; ando
    
    surface operations, which comprise the Kalgold opencast mine, all
previously mined rock, whether waste or reef and any clean-up
operations as well as plant and other infrastructure.
 Quality Shafts
    
    Leveraged Shafts
    
    Growth Shafts
    
    Surface OperationsTarget
    
    Bambanani
    
    Elandsrand mine and
    
    KalgoldprojectTshepong
    
    Joel
    
    Doornkop mine and
    
    FreegoldprojectMasimong
shaft complex
    
    West Shaft
    
    Phakisa project
    
    Free StateEvander 5
    
    St. Helena
    
    
    
    RandfonteinEvander 7
    
    Harmony 2
    
    
    
    TargetEvander 8
    
    Merriespruit 1Cooke 1
    
    Merriespruit 3Cooke 2
    
    UniselCooke 3
    
    Brand 3Orkney 2Orkney 4
 CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   106
      Depreciation and amortization of mining assets
  Item 3. Key Information  Risk Factors  Harmonys gold reserve figures may yield
less gold under actual production conditions than Harmony currently estimates.
 Business combinations
  Carrying value of goodwill
  Impairment of long-lived assets
  107
      Hedging and financial derivatives
 Item 11. Quantitative and Qualitative Disclosures About
Market Risk  General.
 Remediation obligations (asset retirement obligations)
    Item 3. Key Information  Risk Factors  Harmonys operations are subject to extensive
government regulations, Item 3. Key Information  Regulation  Environmental Matters.
 Share-based compensation
  108
      Deferred tax asset
  REVENUE
 Item 3. Key Information  Risk Factors -The profitability of Harmonys operations,
and the cash flows generated by those operations, are affected by changes in the market price for
gold, which in the past has fluctuated widely.
 Item 11. Quantitative and Qualitative Disclosures About Market Risk.
     109
      Item 11.
Quantitative and Qualitative Disclosures About Market Risk  Foreign Currency Sensitivity.
  Harmonys Realized Gold Price
 Item 3. Key Information  Risk Factors  The profitability of
Harmonys operations, and the cash flows generated by those operations, are affected by changes in
the market price for gold, which in the past has fluctuated widely.
  Fiscal year ended June 302005
    
    2004
    
    2003($/oz)Average
    
    
    422
    
    
    
    389
    
    
    
    333High
    
    
    454
    
    
    
    427
    
    
    
    382Low
    
    
    387
    
    
    
    343
    
    
    
    302Harmonys average sales price 1
    
    
    427
    
    
    
    385
    
    
    
    330
 
 1
    
    Harmonys average sales price differs from the average gold
price due to the timing of its sales of gold within each
year and due to the effect of delivering under the commodity
hedge contracts acquired in the New Hampton and Hill 50
transactions. COSTS
  Item 5. Operating and
Financial Review and Prospects  Exchange Rates. Item 3. Key Information  Risk Factors  Because most of Harmonys production
costs are in Rand, while gold is generally sold in US dollars, Harmonys financial condition could
be materially harmed by an appreciation in the value of the Rand.
 Reconciliation of non-GAAP measures
  110
      2005
    
    2004
    
    2003$000
    

$000
    

$000Production costs per financial statements
    
    
    1,217,561
    
    
    
    1,172,483
    
    
    
    601,143Deferred stripping costs
    
    
    15,362
    
    
    
    (4,119
    )
    
    
    (1,397
    )Total cash costs for per ounce
calculation  using Gold Institute
guidance
    
    
    1,232,923
    
    
    
    1,168,364
    
    
    
    599,746Depreciation and amortization (excluding
depreciation on non-mining assets)
    
    
    110,826
    
    
    
    100,943
    
    
    
    56,752Other items to be included in GAAP measure
    
    
    16,155
    
    
    
    (3,646
    )
    
    
    (1,081
    )Total production cost for per ounce
calculation  under U.S. GAAP
    
    
    1,359,904
    
    
    
    1,265,661
    
    
    
    655,417
 Per ounce calculation:
 Ounces sold
    
    
    2,965,265
    
    
    
    3,225,187
    
    
    
    2,366,116Total cash cost per ounce  using
Gold Institute guidance
    
    
    416
    
    
    
    362
    
    
    
    253Total production cost per ounce 
under U.S. GAAP
    
    
    459
    
    
    
    392
    
    
    
    277
 1
    
    Includes corporate costs and decrease in rehabilitation cost.   111
      Item 3. Key information  Risk Factors  Harmonys gold reserve figures may yield less gold
under actual production conditions than Harmony currently estimates.
   Item 4. Information on the Company  Business  Strategy.
 EXCHANGE RATES
    112
      Item 3. Key Information  Risk Factors  Because most of Harmonys
production costs are in Rand, while gold is generally sold in US dollars, Harmonys financial
condition could be materially harmed by an appreciation in the value of the Rand.
 INFLATION
  SOUTH AFRICAN SOCIO-ECONOMIC ENVIRONMENT
 Item 3. Key Information  Risk Factors 
socio-economic instability in South Africa or regionally may have an adverse effect on Harmonys
operations and profits.
 Item 10. Additional Information  Exchange Controls.
 RESULTS OF OPERATIONS
 Years ended June 30, 2005 and 2004
 Revenues
       113
      Costs
  Year ended
    
    Year ended
    
    PercentageJune 30, 2005
    
    June 30, 20041
    
    increase in(oz)
    
    ($/oz)
    
    (oz)
    
    ($/oz)
    
    cash costsSOUTH AFRICAFree State operationsQuality ouncesMasimong
    
    
    159,981
    
    
    
    452
    
    
    
    234,307
    
    
    
    326
    
    
    
    39Leveraged ouncesHarmony 2
    
    
    68,547
    
    
    
    490
    
    
    
    87,472
    
    
    
    368
    
    
    
    33Merriespruit 1
    
    
    45,559
    
    
    
    539
    
    
    
    59,062
    
    
    
    410
    
    
    
    31Merriespruit 3
    
    
    54,690
    
    
    
    465
    
    
    
    76,956
    
    
    
    422
    
    
    
    10Unisel
    
    
    65,011
    
    
    
    541
    
    
    
    91,020
    
    
    
    408
    
    
    
    33Brand 3
    
    
    46,299
    
    
    
    522
    
    
    
    59,558
    
    
    
    403
    
    
    
    30Brand 5
    
    
    33
    
    
    
    64,242
    
    
    
    19,262
    
    
    
    692
    
    
    
    9,184Saaiplaas 3
    
    
    2,541
    
    
    
    1,901
    
    
    
    26,783
    
    
    
    503
    
    
    
    278Surface
    
    
    9,542
    
    
    
    348
    
    
    
    26,732
    
    
    
    347
    
    
    
    Evander operationsQuality ouncesEvander 2
    
    
    48,764
    
    
    
    635
    
    
    
    86,172
    
    
    
    376
    
    
    
    69Evander 5
    
    
    47,093
    
    
    
    411
    
    
    
    48,103
    
    
    
    335
    
    
    
    23Evander 7
    
    
    130,009
    
    
    
    284
    
    
    
    92,505
    
    
    
    356
    
    
    
    (20
    )Evander 8
    
    
    151,936
    
    
    
    304
    
    
    
    109,513
    
    
    
    363
    
    
    
    (16
    )Leveraged ouncesEvander 9
    
    
    2,573
    
    
    
    1,168
    
    
    
    23,440
    
    
    
    386
    
    
    
    203Surface
    
    
    
    
    
    
    
    
    
    
    1,961
    
    
    
    253
    
    
    
    Randfontein operationsQuality ouncesCooke 1
    
    
    79,101
    
    
    
    426
    
    
    
    104,168
    
    
    
    304
    
    
    
    40Cooke 2
    
    
    54,441
    
    
    
    488
    
    
    
    90,761
    
    
    
    377
    
    
    
    29Cooke 3
    
    
    116,300
    
    
    
    435
    
    
    
    134,003
    
    
    
    374
    
    
    
    16Growth projectsDoornkop
    
    
    52,695
    
    
    
    512
    
    
    
    65,234
    
    
    
    353
    
    
    
    45Surface
    
    
    33,397
    
    
    
    423
    
    
    
    18,872
    
    
    
    349
    
    
    
    21Elandskraal operationsGrowth projectsElandsrand
    
    
    207,371
    
    
    
    478
    
    
    
    250,581
    
    
    
    402
    
    
    
    19Leveraged ouncesDeelkraal
    
    
    2,284
    
    
    
    313
    
    
    
    68,127
    
    
    
    555
    
    
    
    (44
    )Surface
    
    
    
    
    
    
    
    
    
    
    5,301
    
    
    
    498
    
    
    
    Freegold operationsQuality ouncesTshepong
    
    
    380,695
    
    
    
    309
    
    
    
    287,771
    
    
    
    359
    
    
    
    (14
    )
 114
      Year ended
    
    Year ended
    
    PercentageJune 30, 2005
    
    June 30, 20041
    
    increase in(oz)
    
    ($/oz)
    
    (oz)
    
    ($/oz)
    
    cash costsGrowth projectsPhakisa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Leveraged ouncesBambanani
    
    
    197,535
    
    
    
    464
    
    
    
    213,730
    
    
    
    481
    
    
    
    94
    )Joel
    
    
    64,464
    
    
    
    487
    
    
    
    50,590
    
    
    
    5179
    
    
    
    (6
    )Eland
    
    
    26,782
    
    
    
    500
    
    
    
    37,337
    
    
    
    656
    
    
    
    (24
    )Kudu/Sable
    
    
    25,175
    
    
    
    750
    
    
    
    29,347
    
    
    
    548
    
    
    
    37West Shaft
    
    
    28,165
    
    
    
    462
    
    
    
    26,565
    
    
    
    437
    
    
    
    6Nyala
    
    
    23,503
    
    
    
    748
    
    
    
    8,891
    
    
    
    4578
    
    
    
    64St. Helena
    
    
    29,965
    
    
    
    837
    
    
    
    52,309
    
    
    
    600
    
    
    
    40Surface
    
    
    36,420
    
    
    
    424
    
    
    
    49,262
    
    
    
    487
    
    
    
    (913
    )ARMgold operationsLeveraged ouncesOrkney 1
    
    
    
    
    
    
    
    
    
    
    322
    
    
    
    602
    
    
    
    Orkney 2
    
    
    78,449
    
    
    
    420
    
    
    
    81,434
    
    
    
    330
    
    
    
    27Orkney 3
    
    
    
    
    
    
    
    
    
    
    11,413
    
    
    
    564
    
    
    
    Orkney 4
    
    
    76,971
    
    
    
    396
    
    
    
    67,931
    
    
    
    298
    
    
    
    33Orkney 6
    
    
    
    
    
    
    
    
    
    
    11,060
    
    
    
    486
    
    
    
    Orkney 7
    
    
    
    
    
    
    
    
    
    
    4,533
    
    
    
    435
    
    
    
    Welkom 1
    
    
    2,734
    
    
    
    587
    
    
    
    19,226
    
    
    
    517
    
    
    
    14Welkom 2
    
    
    
    
    
    
    
    
    
    
    1,350
    
    
    
    405
    
    
    
    Welkom 3
    
    
    
    
    
    
    
    
    
    
    1,511
    
    
    
    385
    
    
    
    Welkom 4
    
    
    
    
    
    
    
    
    
    
    3,922
    
    
    
    381
    
    
    
    Welkom 6
    
    
    
    
    
    
    
    
    
    
    2,411
    
    
    
    371
    
    
    
    Welkom 7
    
    
    
    
    
    
    
    
    
    
    9,902
    
    
    
    360
    
    
    
    Avgold operationsQuality ouncesTarget
    
    
    209,847
    
    
    
    273
    
    
    
    53,434
    
    
    
    215
    
    
    
    27Surface
    
    
    1,350
    
    
    
    346
    
    
    
    
    
    
    
    
    
    
    
    Kalgold operationsSurface
    
    
    108,195
    
    
    
    373
    
    
    
    82,756
    
    
    
    345
    
    
    
    8AUSTRALASIAMt. Magnet
    
    
    181,233
    
    
    
    336
    
    
    
    173,228
    
    
    
    336
    
    
    
    South Kal
    
    
    115,615
    
    
    
    340
    
    
    
    120,532
    
    
    
    322
    
    
    
    6Papua New Guinea
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other entities
    
    
    
    
    
    
    
    
    
    
    44,528
    
    
    
    302
    
    
    
    Total
    
    
    2,965,265
    
    
    
    
    
    
    
    3,225,187Weighted average
    
    
    
    
    
    
    412
    
    
    
    
    
    
    
    362
    
    
    
    14
 
 1
    
    Includes nine months of production from Free Gold and ARMgold and two months from production from Avgolds Target operations Item 5. Operating and Financial Review and
Prospects  Exchange Rates.
  115
      Depreciation and amortization
  116
      Impairment of assets
   Employment termination costs
  Care and maintenance cost of restructured shafts
  Corporate expenditure, exploration expenditure and marketing and new business expenditure
 Item 4. Information on the Company  Business  Exploration.
 Share-based compensation
   Decrease in rehabilitation costs
  117
      Provision for former employees post-retirement benefits
  Dividends received
  Loss on financial instruments
  (Loss)/profit on sale of other assets and listed investments
  Impairment of listed investments
 Item 7. Related Party Transactions
 Profit on sale and loss on dilution of investment in associates
   (Loss)/profit on sale of subsidiary
  118
      Interest received
  Interest paid
  Other (expenses)/income
  Income and mining taxes
 South Africa.
  Income and mining tax
    
    2005
    
    2004Effective tax rate expense
    
    
    15
    %
    
    
    56
    %
  Australia.
 119
      Papua New Guinea.
     Minority interests
  Equity income of joint venture
  Equity profit / (loss) of associate companies
  120
      Impairment of investment in associate
  (Loss) / income before cumulative effect of change in accounting principle
  Cumulative effect of change in accounting principle, net of tax
  Net(Loss) Income
  Years ended June 30, 2004 and 2003
 Revenues
         121
      Costs
  Year ended
    
    Year ended
    
    PercentageJune
30, 20041
    

June
30, 20032
    
    increase in(oz)
    
    ($/oz)
    
    (oz)
    
    ($/oz)
    
    cash costsSOUTH AFRICAFree State operationsQuality ouncesMasimong
    
    
    234,307
    
    
    
    326
    
    
    
    179,632
    
    
    
    244
    
    
    
    34Leveraged ouncesHarmony 2
    
    
    87,472
    
    
    
    368
    
    
    
    69,174
    
    
    
    228
    
    
    
    61Harmony 4
    
    
    
    
    
    
    
    
    
    
    292890
    
    
    
    1,716
    
    
    
    Merriespruit 1
    
    
    59,062
    
    
    
    410
    
    
    
    50,545
    
    
    
    244
    
    
    
    68Merriespruit 3
    
    
    76,956
    
    
    
    422
    
    
    
    65,189
    
    
    
    287
    
    
    
    47Unisel
    
    
    91,020
    
    
    
    408
    
    
    
    75,439
    
    
    
    283
    
    
    
    44Brand 3
    
    
    59,558
    
    
    
    403
    
    
    
    46,736
    
    
    
    300
    
    
    
    34Brand 5
    
    
    19,262
    
    
    
    692
    
    
    
    51,696
    
    
    
    373
    
    
    
    85Virginia
    
    
    
    
    
    
    
    
    
    
    290
    
    
    
    866
    
    
    
    Saaiplaas 3
    
    
    26,783
    
    
    
    503
    
    
    
    
    
    
    
    
    
    
    
    Surface
    
    
    26,732
    
    
    
    347
    
    
    
    24,209
    
    
    
    271
    
    
    
    28Evander operationsQuality ouncesEvander 2
    
    
    86,172
    
    
    
    376
    
    
    
    88,575
    
    
    
    230
    
    
    
    63Evander 5
    
    
    48,103
    
    
    
    335
    
    
    
    49,769
    
    
    
    228
    
    
    
    47Evander 7
    
    
    92,505
    
    
    
    356
    
    
    
    106,419
    
    
    
    212
    
    
    
    68Evander 8
    
    
    109,513
    
    
    
    363
    
    
    
    94,008
    
    
    
    290
    
    
    
    25Leveraged ouncesEvander 9
    
    
    23,440
    
    
    
    386
    
    
    
    17,297
    
    
    
    269
    
    
    
    43Surface
    
    
    1,961
    
    
    
    253
    
    
    
    4,116
    
    
    
    221
    
    
    
    14Randfontein operationsQuality ouncesCooke 1
    
    
    104,168
    
    
    
    304
    
    
    
    120,819
    
    
    
    191
    
    
    
    59Cooke 2
    
    
    90,761
    
    
    
    377
    
    
    
    116,639
    
    
    
    191
    
    
    
    97Cooke 3
    
    
    134,003
    
    
    
    374
    
    
    
    151,553
    
    
    
    236
    
    
    
    58Growth projectsDoornkop
    
    
    65,234
    
    
    
    353
    
    
    
    65,906
    
    
    
    230
    
    
    
    53Surface
    
    
    18,872
    
    
    
    349
    
    
    
    36,973
    
    
    
    216
    
    
    
    62Elandskraal operationsGrowth projectsElandsrand
    
    
    250,581
    
    
    
    402
    
    
    
    264,525
    
    
    
    264
    
    
    
    52Leveraged ouncesDeelkraal
    
    
    68,127
    
    
    
    555
    
    
    
    82,751
    
    
    
    315
    
    
    
    76Surface
    
    
    5,301
    
    
    
    498
    
    
    
    19,323
    
    
    
    234
    
    
    
    113Freegold operationsQuality ouncesTshepong
    
    
    287,771
    
    
    
    359
    
    
    
    
    
    
    
    
    
    
    
    Growth projectsPhakisa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Leveraged ouncesBambanani
    
    
    213,730
    
    
    
    481
    
    
    
    
    
    
    
    
    
    
    
    Joel
    
    
    50,590
    
    
    
    517
    
    
    
    
    
    
    
    
    
    
    
    Eland
    
    
    37,337
    
    
    
    656
    
    
    
    
    
    
    
    
    
    
    
    
 122
      Year ended
    
    Year ended
    
    PercentageJune 30, 20041
    
    June 30, 20032
    
    increase in(oz)
    
    ($/oz)
    
    (oz)
    
    ($/oz)
    
    cash costsKudu/Sable
    
    
    29,347
    
    
    
    548
    
    
    
    
    
    
    
    
    
    
    
    West Shaft
    
    
    26,565
    
    
    
    437
    
    
    
    
    
    
    
    
    
    
    
    Nyala
    
    
    8,891
    
    
    
    457
    
    
    
    
    
    
    
    
    
    
    
    St. Helena
    
    
    52,309
    
    
    
    600
    
    
    
    
    
    
    
    
    
    
    
    Surface
    
    
    49,262
    
    
    
    487
    
    
    
    
    
    
    
    
    
    
    
    ARMgold operationsLeveraged ouncesOrkney 1
    
    
    322
    
    
    
    602
    
    
    
    
    
    
    
    
    
    
    
    Orkney 2
    
    
    81,434
    
    
    
    330
    
    
    
    
    
    
    
    
    
    
    
    Orkney 3
    
    
    11,413
    
    
    
    564
    
    
    
    
    
    
    
    
    
    
    
    Orkney 4
    
    
    67,931
    
    
    
    298
    
    
    
    
    
    
    
    
    
    
    
    Orkney 6
    
    
    11,060
    
    
    
    486
    
    
    
    
    
    
    
    
    
    
    
    Orkney 7
    
    
    4,533
    
    
    
    435
    
    
    
    
    
    
    
    
    
    
    
    Welkom 1
    
    
    19,226
    
    
    
    517
    
    
    
    
    
    
    
    
    
    
    
    Welkom 2
    
    
    1,350
    
    
    
    405
    
    
    
    
    
    
    
    
    
    
    
    Welkom 3
    
    
    1,511
    
    
    
    385
    
    
    
    
    
    
    
    
    
    
    
    Welkom 4
    
    
    3,922
    
    
    
    381
    
    
    
    
    
    
    
    
    
    
    
    Welkom 6
    
    
    2,411
    
    
    
    371
    
    
    
    
    
    
    
    
    
    
    
    Welkom 7
    
    
    9,902
    
    
    
    360
    
    
    
    
    
    
    
    
    
    
    
    Avgold operationsQuality ouncesTarget
    
    
    53,434
    
    
    
    215
    
    
    
    
    
    
    
    
    
    
    
    Kalgold operationsSurface
    
    
    82,756
    
    
    
    345
    
    
    
    74,590
    
    
    
    222
    
    
    
    55AUSTRALASIABig Bell
    
    
    
    
    
    
    
    
    
    
    132,579
    
    
    
    338
    
    
    
    Mt. Magnet
    
    
    173,228
    
    
    
    336
    
    
    
    182,690
    
    
    
    233
    
    
    
    44South Kal
    
    
    120,532
    
    
    
    322
    
    
    
    182,851
    
    
    
    269
    
    
    
    20Abelle
    
    
    
    
    
    
    
    
    
    
    11,534
    
    
    
    195
    
    
    
    Other entities
    
    
    44,528
    
    
    
    302
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    3,225,187
    
    
    
    
    
    
    
    2,366,116Weighted average
    
    
    
    
    
    
    362
    
    
    
    
    
    
    
    253
    
    
    
    43
 
 1
    
    Includes nine months of production from Free Gold and ARMgold and two months from
production from Avgolds Target operations2
    
    Includes two months of production from Abelle.  Item 5. Operating and Financial Review and Prospects  Exchange
Rates.
 123
      Depreciation and amortization
  Impairment of assets
   Employment termination costs
  Corporate expenditure, exploration expenditure and marketing and new business expenditure
 Item 4. Information on the Company  Business  Exploration.
 Share-based compensation
  124
      Decrease in rehabilitation costs
  Provision for former employees post-retirement benefits
  Dividends received
  Gain / (loss) on financial instruments
  Profit on sale of other assets and listed investments
  Profit on sale and loss on dilution of investment in associates
   Profit on sale of subsidiary
  125
      Interest received
  Interest paid
  Other income/(expenses)
  Income and mining taxes
 South Africa.
  Income and mining tax
    
    2004
    
    2003Effective tax rate expense
    
    
    56
    %
    
    
    25.9
    %
  Australia.
 126
      Minority interests
  Equity income of joint venture
  Equity profit / (loss) of associate companies
  Impairment of investment in associate
  (Loss) / income before cumulative effect of change in accounting principle
  127
      Cumulative effect of change in accounting principle (SFAS No. 143), net of tax
  Net(Loss)/Income
  RECENT ACCOUNTING PRONOUNCEMENTS
    LIQUIDITY AND CAPITAL RESOURCES
  128
      Cash Resources
 Operations
  Item 5.
Operating and Financial Review and Prospects  Exchange Rate
 Item 5. Operating and Financial Review and Prospects  Exchange Rate
 Investing
   Financing
   Outstanding Credit Facilities and Other Borrowings
  129
      - Recently Retired Credit Facilities and Other
Borrowings.
       Recently Retired Credit Facilities and Other Borrowings
  130
      Contractual Obligations and Commercial Commitments
  Contractual Obligations on the Balance Sheet
  Payments Due by PeriodLess than12 months
    
    12-36 Months
    
    36-60 Months
    
    AfterJuly 1, 2005
    
    July 1, 2006
    
    July 1, 2008
    
    60 Monthsto
    
    to
    
    to
    
    SubsequentDollars in thousands
    
    Total
    
    June 30, 2006
    
    June 30, 2008
    
    June 30, 2010
    
    June 30, 2010Senior unsecured fixed-rate
bonds 1
    
    
    192,495
    
    
    
    192,495
    
    
    
    
    
    
    
    
    
    
    
    Convertible uncollaterized
bonds 1
    
    
    304,710
    
    
    
    12,431
    
    
    
    24,861
    
    
    
    267,418
    
    
    
    BoE Bank Limited loan
facility 1
    
    
    26,543
    
    
    
    26,543
    
    
    
    
    
    
    
    
    
    
    
    Africa Vanguard Resources
1
    
    
    4,800
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,800Nedbank  AVR 1
    
    
    20,970
    
    
    
    
    
    
    
    
    
    
    
    20,970
    
    
    
    
 131
      Payments Due by PeriodLess than12 months
    
    12-36 Months
    
    36-60 Months
    
    AfterJuly 1, 2005
    
    July 1, 2006
    
    July 1, 2008
    
    60 Monthsto
    
    to
    
    to
    
    SubsequentDollars in thousands
    
    Total
    
    June 30, 2006
    
    June 30, 2008
    
    June 30, 2010
    
    June 30, 2010Gold Fields 1
    
    
    822
    
    
    
    308
    
    
    
    514
    
    
    
    
    
    
    
    Nedbank  ARM 1 1
    
    
    80,149
    
    
    
    
    
    
    
    
    
    
    
    80,149
    
    
    
    Nedbank  ARM 2 1
    
    
    104,938
    
    
    
    
    
    
    
    
    
    
    
    104,938
    
    
    
    Post retirement health care
2
    
    
    13,275
    
    
    
    153
    
    
    
    721
    
    
    
    722
    
    
    
    11,679Environmental
obligations3
    
    
    208,561
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208,561Total contractual
obligations
    
    
    957,263
    
    
    
    231,930
    
    
    
    26,096
    
    
    
    474,197
    
    
    
    225,040
 
 1
    
    See Item 5. Operating and Financial Review and Prospects 
Liquidity and Capital Resources  Credit Facilities and
Other Borrowings  Outstanding Credit Facilities and Other
Borrowings.2
    
    This liability relates to post-retirement medical benefits
of former employees who retired prior to December 31, 1996
and is based on actuarial valuations conducted during fiscal
2002.3
    
    Harmony makes provision for environmental rehabilitation
costs and related liabilities based on managements
interpretations of current environmental and regulatory
requirements. See Item 5. Operating and Financial Review
and Prospects  Critical Accounting Policies. Contractual Obligations off the Balance Sheet
  Payment Due by PeriodLess than
    
    
    
    
    
    
    
    
    
    After12 Months
    
    12-36 Months
    
    36-60 Months
    
    60 MonthsJuly 1, 2005
    
    July 1, 2006
    
    July 1, 2008
    
    Subsequentto
    
    to
    
    to
    
    toTotal
    
    June 30, 2006
    
    June 30, 2008
    
    June 30, 2010
    
    June 30, 2010($000)
    
    ($000)
    
    ($000)
    
    ($000)
    
    ($000)Melrose Arch, South
Africa
    
    
    223
    
    
    
    114
    
    
    
    109
    
    
    
    
    
    
    
    Musuku
    
    
    72
    
    
    
    33
    
    
    
    39
    
    
    
    
    
    
    
    Perth Office, Australia
    
    
    336
    
    
    
    112
    
    
    
    224
    
    
    
    
    
    
    
    Peru Office
    
    
    12
    
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    Peru flat
    
    
    7
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    650
    
    
    
    278
    
    
    
    372
    
    
    
    
    
    
    
    
  Capital Expenditure
    
    $000Authorized and contracted for
    
    
    4,226Authorized but not yet contracted for
    
    
    274,318278,544
 Commercial Commitments
  132
      Amount of Commitments Expiring by PeriodLess than
    
    
    
    
    
    
    
    
    
    After12 Months
    
    12-36 Months
    
    36-60 Months
    
    60 MonthsJuly 1, 2004
    
    July 1, 2005
    
    July 1, 2007
    
    Subsequentto
    
    to
    
    to
    
    toTotal
    
    June 30, 2005
    
    June 30, 2007
    
    June 30, 2009
    
    June 30, 2009($000)
    
    ($000)
    
    ($000)
    
    ($000)
    
    ($000)Guarantees 1
    
    
    22,773
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,773Capital commitments
2
    
    
    4,226
    
    
    
    4,226
    
    
    
    
    
    
    
    
    
    
    
    Total commitments
expiring by period
    
    
    26,999
    
    
    
    4,226
    
    
    
    
    
    
    
    
    
    
    
    22,773
 
 1
    
    Reflects guarantees for environmental rehabilitation
expenses, principally environmental performance bonds
required for Harmonys Australian operations. See Item
4. Information on the Company  Regulation 
Environmental Matters.2
    
    Capital commitments consist only of amounts committed
to external suppliers, although a total of $683.3
million has been approved by the Board for capital
expenditures. Trend Information
  Working Capital and Anticipated Financing Needs
   Capital Expenditures Item 4. Information on the Company 
Business  Harmonys Mining Operations. Item 3.
Key Information  Risk Factors  Harmonys strategy depends on its ability to make additional
acquisitions. Item 5. Operating and
Financial Review and Prospects  Liquidity and Capital Resources  Credit Facilities and Other
Borrowings  Outstanding Credit Facilities and Other Borrowings. Item 10.
Description of Ordinary Shares  Memorandum and Articles of Association  Directors Borrowing
Powers. Item 10. Additional Information  Exchange
Controls and Other Limitations Affecting Security Holders.
 OTHER FINANCIAL INFORMATION
 Export Sales
  133
      Item 6. Directors, Senior Management and Employees
 DIRECTORS AND SENIOR MANAGEMENT
  Executive Directors
 Bernard Swanepoel
 Ferdi Dippenaar
 Ted Grobicki
 Nomfundo Qangule
 Non-Executive Directors
 Patrice Motsepe
 Frank Abbott
 134
      Joaquim Chissano
 Nolitha Fakude
 Dr. Simo Lushaba
 Rick Menell
 Modise Motloba
 Cedric Savage
 135
      Secretary
 Marian van der Walt
 Senior Management
  Bob Atkinson
 Jaco Boshoff
 Graham Briggs
 Yusuf Jardien
 Tracey Jonkheid
 Philip Kotze .
 136
      Jackie Mathebula
 Dawie Mostert
 De Wet Schutte
 Peter Steenkamp
 Boetie Swanepoel
 Johannes van Heerden
 Abre van Vuuren
 
   BOARD PRACTICES
     137
      Executive Committee
   Bob Atkinson
    
    Sustainable Development (Safety, Health and Environment), Operations
Director (growth shafts)Jaco Boshoff
    
    Ore ReservesGraham Briggs
    
    Chief Executive, Harmony AustraliaFerdi Dippenaar
    
    Service Delivery Departments, Corporate Affairs and Investor RelationsTed Grobicki
    
    Strategic PlanningYusuf Jardien
    
    Information Technology and Change ManagementTracey Jonkheid
    
    Internal StrategyPhilip Kotze
    
    Operations Director (quality shafts)Jackie Mathebula
    
    Sustainable Development (Training, Human Resource Development and
Occupational Health)Dawie Mostert
    
    Industrial RelationsNomfundo Qangule
    
    Group FinanceDe Wet Schutte
    
    Exploration and New BusinessPeter Steenkamp
    
    Operations Director (leveraged shafts)Bernard Swanepoel
    
    Chief ExecutiveBoetie Swanepoel
    
    Operational FinanceJohannes van Heerden
    
    Finance (Australasia)Abre van Vuuren
    
    Human Resources Processes and Strategy
 Audit Committee
      
    
    Cedric Savage (chairman)
 
    
    Dr Simo Lushaba
 
    
    Modise Motloba
 Nomination Committee
  138
      
    
    Patrice Motsepe (chairman)
 
    
    Nolitha Fakude
 
    
    Frank Abbott
 Remuneration Committee
    
    
    Patrice Motsepe (chairman)
 
    
    Dr Simo Lushaba
 
    
    Cedric Savage
 Investment Committee
   
    
    Dr Simo Lushaba (chairman)
 
    
    Frank Abbott
 
    
    Cedric Savage
 Sustainable Development Committee
  Ø
    
    to develop the framework, policies and guidelines for safety, health, social,
HIV/AIDS and environmental management;Ø
    
    to review the policies and performance of the company, its divisions and its managed
subsidiaries and the progressive implementation of its policies;Ø
    
    to encourage independently managed subsidiaries, associates and significant
investments to develop policies, guidelines and practices congruent with our safety,
health, social, HIV/AIDS and environmental policies;
 139
      Ø
    
    to monitor key indicators on accidents and incidents and, where appropriate, ensure
that they are communicated to other companies managed by or associated with the
company;Ø
    
    to consider material national and international regulatory and technical
developments in the fields of safety, health, social, HIV/AIDS and environmental
management; andØ
    
    to facilitate participation, co-operation and consultation on safety, health,
social, HIV/AIDS and environmental matters with government, industry, national and
international organizations and institutions.
   
    
    Modise Motloba (chairman)
 
    
    Nolitha Fakude
 
    
    Rick Menell
 Employment Equity Committee
   Ø
    
    ensuring that a sustainable organizational culture, structures and processes are in
place that will support the development of employees and to optimize their potential, in
line with the Companys needs and requirements;Ø
    
    auditing, monitoring and reviewing the development and progress of these employees;Ø
    
    addressing inequalities that may exist in staff profiles and organizational practices;Ø
    
    reviewing and monitoring whether appropriate support is given to previously
disadvantaged staff in order to equip them for successful careers within Harmony.
   
    
    Nolitha Fakude (chairman)
 
    
    Modise Motloba
 
    
    Rick Menell
 COMPENSATION OF DIRECTORS AND SENIOR MANAGEMENT  FISCAL 2005
 Salaries
    
    RetirementDirectors
    
    and
    
    contributions
    
    
    
    
    
    Totalfees
    
    benefits1
    
    during the
    
    Bonuses
    
    CompensationName
    
    ($000)
    
    ($000)
    
    year ($000)
    
    paid ($000)
    
    ($000)Patrice Motsepe
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Frank Abbott2
    
    
    Nolitha Fakude
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Dr. Simo Lushaba
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Rick Menell
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 140
      Salaries
    
    RetirementDirectors
    
    and
    
    contributions
    
    
    
    
    
    Totalfees
    
    benefits1
    
    during the
    
    Bonuses
    
    CompensationName
    
    ($000)
    
    ($000)
    
    year ($000)
    
    paid ($000)
    
    ($000)Dr. Morley Nkosi
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Modise Motloba
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mike Pleming3
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Lord Robin Renwick4
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cedric Savage
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Executive5Bernard Swanepoel
    
    
    
    
    
    
    296
    
    
    
    44
    
    
    
    
    
    
    
    340Ferdi Dippenaar
    
    
    
    
    
    
    196
    
    
    
    32
    
    
    
    
    
    
    
    228Ted Grobicki6
    
    
    
    
    
    
    382
    
    
    
    34
    
    
    
    
    
    
    
    416Mangisi Gule7
    
    
    
    
    
    
    69
    
    
    
    2
    
    
    
    
    
    
    
    71Nomfundo Qangule8
    
    
    
    
    
    
    175
    
    
    
    15
    
    
    
    
    
    
    
    190Senior Management (as a
group)9
    
    
    
    
    
    
    2,423
    
    
    
    
    
    
    
    
    
    
    
    2,423TOTAL
    
    
    154
    
    
    
    3,541
    
    
    
    127
    
    
    
    
    
    
    
    3,668
 
 1
    
    4% increase granted to executive directors in October 2004.2
    
    Frank Abbott has waived his non-executive Directors fee. Frank was the
financial director of Harmony until June 30, 2004.3
    
    Retired from the Board on June 30, 2005.4
    
    Resigned from the Board October 17, 2004.5
    
    Our executive directors have waived their Directors fees in terms of our
Articles of Association.6
    
    Ted Grobickis salary is paid in $Aus.7
    
    Mangisi Gules salary was paid from July 1, 2004 to December 24, 2004, when he
resigned from the Board.8
    
    Appointed on 26 July 2004, Nomfundo Qangules salary is reflected for the 11
month period since the date of her appointment.9
    
    Includes salaries paid to Brenton Saunders and Mohamed Madhi who resigned on
September 2, and September 30, 2005, respectively. Directors Terms of Employment
     141
      Share Options
   Number of
    
    Average strikeDirectors
    
    Share Options
    
    price
    
    Expiration DatesBernard Swanepoel
    
    
    469,767
    
    
    
    51.58
    
    
    August 2014Ferdi Dippenaar
    
    
    237,141
    
    
    
    51.58
    
    
    August 2014Ted Grobicki
    
    
    303,700
    
    
    
    44.19
    
    
    August 2014Nomfundo Qangule
    
    
    186,124
    
    
    
    52.58
    
    
    August 2014Patrice Motsepe
    
    
    
    
    
    
    
    
    
    
    Frank Abbott
    
    
    73,400
    
    
    
    49.6
    
    
    June 2006Joaquim Chissano
    
    
    
    
    
    
    
    
    
    
    Nolitha Fakude
    
    
    
    
    
    
    
    
    
    
    Dr. Simo Lushaba
    
    
    
    
    
    
    
    
    
    
    Rick Menell
    
    
    
    
    
    
    
    
    
    
    Modise Motloba
    
    
    
    
    
    
    
    
    
    
    Cedric Savage
    
    
    
    
    
    
    
    
    
    
    Senior Management (13 persons)
    
    
    2,184,395
    
    
    
    54.03
    
    
    August 2014
 Share
Ownership
  Ordinary Shares
    
    
    
    
    
    Ordinary SharesNumber
    
    
    
    
    
    Numberas at
    
    
    
    
    
    as atHolder
    
    June 30, 2005
    
    Percentage
    
    October 21, 2005
    
    PercentageDirectorsNon-executiveP. Motsepe**
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    F. Abbott
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    J. Chissano
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    N. Fakude
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Dr. S. Lushaba
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    R. Menell
    
    
    800
    
    
    
    
    *
   
    
    800
    
    
    
    
    *M. Motloba
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Dr. M. Nkosi 
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    M. Pleming 
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    C. Savage
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Executive Directors
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    B. Swanepoel
    
    
    
    
    
    
    
    
    
    
    10,000
    
    
    
    
    *F. Dippenaar
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    N. Qangule
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    T. Grobicki ***
    
    
    30,000
    
    
    
    
    *
    
    
    30,000
    
    
    
    
    *Total Directors (12 persons)
    
    
    30,800
    
    
    
    
    *
    
    
    40,800
    
    
    
    
    *Total Senior Management (13 persons)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 142
      
    
    Resigned from the Board on June 30, 2005.*
    
    Indicates beneficial ownership of less than 1% of the relevant class of securities.**
    
    The 14% indirect shareholding held by P Motsepe was transferred to ARM Limited in
accordance with the ARM transaction in April 2004. See Related Party
Transactions.***
    
    All holdings are beneficial, other than the 30,000 held by T. Grobicki on behalf
of a trust of which he is a trustee, but not a beneficiary.  EMPLOYEES
 General
  Harmony employees at June 30,
    
    Outside contractors at June 30,2005
    
    2004
    
    2003
    
    2005
    
    2004
    
    2003South AfricaElandskraal
    
    
    4,149
    
    
    
    6,213
    
    
    
    6,611
    
    
    
    14
    
    
    
    24
    
    
    
    490Free State (old)
    
    
    11,365
    
    
    
    10,974
    
    
    
    12,317
    
    
    
    78
    
    
    
    69
    
    
    
    686Free Gold
    
    
    15,404
    
    
    
    17,975
    
    
    
    8,573
    1,2
    
    
    61
    
    
    
    84
    
    
    
    839Evander
    
    
    5,895
    
    
    
    7,344
    
    
    
    6,770
    
    
    
    7
    
    
    
    15
    
    
    
    1,425Randfontein
    
    
    5,640
    
    
    
    6,756
    
    
    
    7,154
    
    
    
    86
    
    
    
    92
    
    
    
    589Kalgold
    
    
    180
    
    
    
    188
    
    
    
    229
    
    
    
    2
    
    
    
    
    
    
    
    282ARMgold
    
    
    3,530
    
    
    
    4,746
    
    
    
    
    
    
    
    78
    
    
    
    75
    
    
    
    Avgold
    
    
    435
    
    
    
    534
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    Other
    
    
    71
    
    
    
    667
    
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    Australia
    
    
    198
    
    
    
    516
    
    
    
    255
    
    
    
    555
    
    
    
    512
    
    
    
    309CanadaBissett
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    Papua New Guinea
    
    
    200
    
    
    
    269
    
    
    
    215
    
    
    
    35
    
    
    
    5
    
    
    
    12Total
    
    
    47,067
    
    
    
    55,913
    
    
    
    41,927
    
    
    
    921
    
    
    
    871
    
    
    
    4,945
 
 1
    
    This represents Harmonys 50% interest in the Free Gold Joint Venture for 2003 and
2004.2
    
    This includes St. Helenas employees. Unionized Labor
 South Africa
  
    
    prescribed minimum levels of compensation and benefits;
 
    
    trade union access and membership;
 143
      
    
    the right to strike;
 
    
    mandatory compensation in the event of termination for operational reasons;
 
    
    affirmative action policies and programs;
 
    
    compensation in the event of occupational illness or injury; and
 
    
    financing of training programs.
    o
    
    NUM 78.5%o
    
    UASA 7.2%o
    
    Solidarity 2.0%o
    
    SAEWA 0.2%o
    
    Balance (not unionized) 12.10%.
   
    
    reskilling, retraining and redeployment of surplus employees for alternative vacant positions that may exist at a
particular operation or other Harmony operations;
 
    
    implementation of CONOPS (described below) to create additional job opportunities;
 
    
    transferring surplus or redundant employees to other Harmony operations that have placement opportunities;
 
    
    opening up voluntary retrenchment to minimize the impact of restructuring and/or closure of shafts/mines; and
 
    
    replacing contractors, who are involved in non-specialized work, with Harmony employees;
   144
      th
       Australia
   Share Option Scheme
  145
      Broad-Based Scheme
  Amendment to 2003 Scheme
    146
      Share Purchase Scheme
  Item 7. Major Shareholders and Related Party Transactions
 MAJOR SHAREHOLDERS
   Related Party Transactions
  Number ofHolder
    
    Shares
    
    

Percentage1.  The Bank of New York 1
    
    
    145,265,225
    
    
    
    36.9
    %2.  ARM Ltd.2
    
    
    63,632,922
    
    
    
    16.2
    %3.  Allan Gray Ltd.
    
    
    55,349,494
    
    
    
    14.1
    %4.  JP Morgan Chase Bank 3
    
    
    24,096,371
    
    
    
    6.13
    %
 
 1
    
    Depository with respect to the ADRs held on the U.S. register.2
    
    Patrice Motsepe has an indirect holding in ARM Limited.3
    
    Depository with respect to Harmonys International Depository Shares.   RELATED PARTY TRANSACTIONS
    147
      INTERESTS OF EXPERTS AND COUNSEL
  148
      Item 8. Financial Information
 CONSOLIDATED STATEMENTS
  Legal Proceedings
     Gold Fields Proceedings
  Dividends and Dividend Policy
   149
      Total net dividendsper ordinary share(in ZAR)Final Dividend June 30, 2002
    
    
    4.25Interim Dividend December 31, 2002
    
    
    1.25Final Dividend June 30, 2003
    
    
    1.50Interim Dividend December 31, 2003
    
    
    0.40Final Dividend June 30, 2004
    
    
    0.30
  Recent Developments
    
    
    A non-refundable deposit of A$0.25 million.
    
    A cash payment of A$4.0 million and an issue of A$5.0 million of shares (20 million
Northern Gold shares) on completion (within six months) and the replacement of a A$1.0
million performance bond.
    
    A cash payment of A$5.0 million and the issue of
A$4.4 million shares (at an issue price equal to the higher of A$0.25/share and
the prevailing 30 day volume weighted average market price) six
months after completion, and
    
    A cash payment of A$5.35 million payable 18 months after the
completion date.
  Item 9. The Offer and Listing
 MARKETS
 Stock Exchange Listings and Ticker Codes
  JSE Limited
    
    HARNew York Stock Exchange
    
    HMYLondon Stock Exchange
    
    HRMEuronext Brussels
    
    HG
 150
      Euronext Paris
    
    HMYBerlin Stock Exchange
    
    HAM1
 OFFERING AND LISTING DETAILS
  Harmony ordinary shares
    
    Harmony warrants1(Rand per ordinary share)
    
    (Rand per warrant)High
    
    Low
    
    High
    
    LowFiscal year ended June 30, 2003First Quarter
    
    
    179.90
    
    
    
    106.00
    
    
    
    135.00
    
    
    
    68.10Second Quarter
    
    
    161.45
    
    
    
    116.90
    
    
    
    124.00
    
    
    
    76.00Third Quarter
    
    
    154.00
    
    
    
    90.00
    
    
    
    56.21
    
    
    
    56.21Fourth Quarter
    
    
    115.20
    
    
    
    73.44
    
    
    
    59.33
    
    
    
    57.08Full Year
    
    
    179.90
    
    
    
    73.44
    
    
    
    135.00
    
    
    
    56.21Fiscal year ended June 30, 2004First Quarter
    
    
    117.20
    
    
    
    84.00Second Quarter
    
    
    108.50
    
    
    
    92.48Third Quarter
    
    
    122.51
    
    
    
    95.76Fourth Quarter
    
    
    97.25
    
    
    
    61.00Full Year
    
    
    122.51
    
    
    
    61.00Fiscal year ended June 30, 2005Month ofFirst Quarter
    
    
    88.55
    
    
    
    58.00Second Quarter
    
    
    93.30
    
    
    
    51.00Third Quarter
    
    
    58.50
    
    
    
    47.50Fourth Quarter
    
    
    58.80
    
    
    
    36.40Full Year
    
    
    93.30
    
    
    
    36.40Month ofJune 2005
    
    
    58.80
    
    
    
    47.80July 2005
    
    
    61.50
    
    
    
    52.10August 2005
    
    
    58.50
    
    
    
    46.62September 2005
    
    
    71.99
    
    
    
    47.50October 2005
    
    
    74.29
    
    
    
    66.00
 
 1
    
    Warrants expired as of June 30, 2003.  Harmony ADRs($ per ADR)High
    
    LowFiscal year ended June 30, 2003First Quarter
    
    
    17.27
    
    
    
    9.98Second Quarter
    
    
    18.45
    
    
    
    11.62Third Quarter
    
    
    18.47
    
    
    
    11.08Fourth Quarter
    
    
    14.90
    
    
    
    10.14Full Year
    
    
    18.47
    
    
    
    9.98Fiscal year ended June 30, 2004First Quarter
    
    
    15.95
    
    
    
    10.90Second Quarter
    
    
    16.75
    
    
    
    13.10Third Quarter
    
    
    17.80
    
    
    
    13.90Fourth Quarter
    
    
    15.62
    
    
    
    9.25Full Year
    
    
    17.80
    
    
    
    9.25Fiscal year ended June 30, 2005First Quarter
    
    
    13.74
    
    
    
    9.75Second Quarter
    
    
    14.29
    
    
    
    9.05Third Quarter
    
    
    9.58
    
    
    
    7.51
 151
      Harmony ADRs($ per ADR)High
    
    LowFourth Quarter
    
    
    8.80
    
    
    
    5.96Full Year
    
    
    14.29
    
    
    
    5.96Month ofJune 2005
    
    
    8.80
    
    
    
    7.13July 2005
    
    
    9.01
    
    
    
    7.85August 2005
    
    
    8.99
    
    
    
    7.21September 2005
    
    
    11.23
    
    
    
    7.57October
(through October 21, 2005)
    
    
    10.27
    
    
    
    9.83
 THE SECURITIES EXCHANGE IN SOUTH AFRICA
  History
  Integrated and Diversified Exchange
  STRATE Settlement
  PLAN OF DISTRIBUTION
  152
      SELLING SHAREHOLDERS
  DILUTION
  EXPENSES OF THE ISSUE
  Item 10. Additional Information
 SHARE CAPITAL
  MEMORANDUM AND ARTICLES OF ASSOCIATION
 This section summarizes certain material provisions of Harmonys Memorandum and Articles of
Association, the Companies Act and the JSE listings requirements, each as currently in effect.
These descriptions do not purport to be complete and are qualified in their entirety by reference
to all of the provisions of those sources. Directions on how to obtain a complete copy of Harmonys
Articles of Association are provided under   Documents on Display below.
 General
  Objects and Purposes
  
    
    to acquire by purchase, cession, grant, lease, exchange or otherwise any movable
or immovable property, mines, mineral property, claims, mineral rights, mining
rights, mining leases, mining titles, mynpachts, lands, farms, buildings, water
rights, concessions, grants, rights, powers, privileges, surface rights of every
description, servitudes or other limited rights or interests in land and mineral
contracts of every description; and any interest therein and rights over the
same; and to enter into any contract, option or prospecting contract in respect
thereof, and generally to enter into any arrangement that may seem conducive to
Harmonys objects or any of them;
 
    
    to carry out all forms of exploration work and in particular to search for,
prospect, examine, explore and obtain information in regard to mines, mineral
properties, claims, mineral rights, mining rights, mining leases, mining titles,
mynpachts, mining districts or locations and ground and soil supposed to contain
or containing precious stones, minerals or metals of every description;
 
    
    to open, work, develop and maintain gold, silver, diamond, copper, coal, iron
and other mines, mineral and other rights, properties and works, and to carry on
and conduct the business of raising, crushing, washing, smelting, reducing and
amalgamating ores, metals, minerals and precious stones, and to render the same
merchantable and fit for use and to carry on all or any of the businesses of
miners, mineralogists, metallurgists, amalgamators, geophysicists, smelters,
quarry owners, quarrymen and brickmakers;
 
    
    to buy, sell, refine and deal in bullion, specie, coin and precious and base
metals, and also precious stones and other products of mining; and
 
    
    to employ and pay mining experts, agents and other persons, partnerships,
companies or corporations, and to organize, equip and dispatch expeditions for
prospecting, exploring, reporting on, surveying, working and developing lands,
farms, districts, territories and properties in any part of the world, whether
the same are the property of Harmony or otherwise.
 153
      Directors
 Disclosure of Interests
  
    
    any arrangement for giving the director a security or indemnity in respect of money lent, or an obligation undertaken,
by such director for the benefit of Harmony;
 
    
    any arrangement by which Harmony gives any security to a third party in respect of a debt or obligation of Harmony for
which the director himself or herself has assumed responsibility, in whole or in part, whether under a guarantee or
indemnity or by the deposit of a security;
 
    
    any contract by the director to subscribe for or underwrite shares or debentures of Harmony;
 
    
    any contract or arrangement with a company other than Harmony, in which the director holds or controls, directly or
indirectly, no more than one percent of shares representing either (i) any class of the equity share capital of that
company or (ii) the overall voting rights of that company; or
 
    
    any retirement scheme or fund which relates to both directors and to employees (or a class of employees) and does not
accord to any director, as such, any privilege or advantage not generally accorded to the employees to which such
scheme or fund relates.
    Compensation
  Borrowing Powers
   Rotation
  154
      Qualifications
  Share Capital
  Description of Ordinary Shares
 This section summarizes the material provisions of Harmonys ordinary shares as set out in
Harmonys Memorandum and Articles of Association, the Companies Act and the JSE listings
requirements, each as currently in effect. It does not purport to be complete and is qualified in
its entirety by reference to all of the provisions of those sources.
 Dividends
     155
      Voting Rights
  Distribution of Assets on Liquidation
  Redemption/Purchase of Shares
     156
      Issue of Additional Shares and Pre-emptive Rights
   
    
    pursuant to an employee share incentive scheme the terms of which
have been approved by the holders of the relevant class of shares
in a general meeting;
 
    
    for the acquisition of an asset, provided that if the issue is
more than 30% of the companys issued share capital, a simple
majority of holders of ordinary shares present and voting, must
vote in favor of the acquisition;
 
    
    to raise cash by way of a general issue in the discretion of the
directors (but not to related parties) of up to 15% of the issued
share capital in any one fiscal year at an issue price with a
discount not exceeding 10% of the 30-day weighted average trading
price prior to the determination date, provided that the holders
of ordinary shares, present and voting at a general meeting, must
approve the granting of such authority to the directors by a 75%
vote; or
 
    
    to raise cash by way of a specific issue of a specified number or
a maximum number of shares for cash provided that the holders of
ordinary shares, other than controlling shareholders, present and
voting, vote in favor of the resolution to issue the shares at a
general meeting by a 75% vote. In terms of JSE listings
requirements, the circular to be sent to all shareholders
informing them of the general meeting must include, inter alia:
 o
    
    details of the persons to whom the shares are to be issued if such
persons fall into the following categories or other categories identified by the
JSE: directors of the company or its subsidiaries or their associates; trustees of
employee or directors share scheme or pension funds; any person having the right to
nominate directors of the company; and certain shareholders holding more than 10% of
the issued share capital;o
    
    if the persons to whom the shares are to be issued are related parties,
an independent experts opinion that the issue price is fair and reasonable; ando
    
    should the maximum size of the issue equal or exceed 30% of the companys
issued share capital, full listing particulars, which include, inter alia, a
reporting accountants report and, in the case of a mining company, a competent
persons report setting out technical details of the companys operations and
assets.
 Transfer of Shares
   Rights of Minority Shareholders and Fiduciary Duties
  157
      Variation of Rights
  Changes in Capital or Objects and Powers of Harmony
  
    
    increase its authorized or paid-up share capital;
 
    
    consolidate and divide all or any part of its shares into shares of a larger amount;
 
    
    increase the number of its no par value shares without an increase of its stated capital;
 
    
    sub-divide all or any part of its shares having a par value;
 
    
    convert all of its ordinary or preference share capital consisting of shares having a par value into stated
capital constituted by shares of no par value and vice versa;
 
    
    convert its stated capital constituted by ordinary or preference shares of no par value into share capital
consisting of shares having a par value;
 
    
    vary the rights attached to any shares whether issued or not yet issued;
 
    
    convert any of its issued or unissued shares into shares of another class;
 
    
    convert any of its paid-up shares into stock, and reconvert any stock into any number of paid-up shares of
any denomination;
 
    
    convert any of its issued shares into preference shares which can be redeemed;
 
    
    cancel shares which, at the date of passing of the resolution, have not been taken or agreed to be taken by
any person, and diminish the amount of the authorized share capital by the amount of the shares so
cancelled; or
 
    
    reduce the authorized share capital.
  
    
    reduce its issued share capital;
 
    
    reduce its stated capital; or
 
    
    reduce its capital redemption reserve fund and share premium account.
 Meetings of Shareholders
   
    
    to every member of Harmony except any member who has not supplied to Harmony a registered address for the giving of
notices;
 
    
    to every person entitled to a share in consequence of the death or insolvency of a member;
 
    
    to the directors and auditor for the time being of Harmony; and
 158
      
    
    by advertisement to the holders of share warrants to bearer.
    
    
    the consideration of the annual financial statements and report of the auditors;
 
    
    the election of directors;
 
    
    the appointment of auditors; and
 
    
    any business arising from the annual financial statements considered at the meeting.
  Title to Shares
  
    
    that the registered holder or holders hold such shares upon trust
for, or as the nominee of, any other person; or
 
    
    that any person, other than the registered holder or holders,
holds any contingent, future or partial interest in such shares or
any interest in any fractional part of any of such shares.
   Non-South African Shareholders
  Disclosure of Interest in Shares
  159
      Changes in Control
  Register of Members
   
    
    the names and address of the members;
 
    
    the shares held by each member, distinguishing each share by its denoting number, if any, by its class or
kind, and by the amount paid or deemed to be paid thereon;
 
    
    the date on which the name of any person was entered in the register as a member; and
 
    
    the date on which any person ceased to be a member.
 Annual Report and Accounts
   MATERIAL CONTRACTS
  EXCHANGE CONTROLS
 Introduction
  160
      Government Regulatory Considerations
 Shares
   Loans
   161
      Investments
  Dividends
    CERTAIN SOUTH AFRICAN TAX CONSIDERATIONS
  Dividends
  Capital Gains Tax
  Stamp Duty on the Shares
    162
      Capitalization Shares
  Voting Rights
  CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
     ADSs
  Taxation of Dividends
   Capital Gains
  163
      Non-U.S. Holders
  U.S. Information Reporting and Backup Withholding Rules
  The preceding discussion of certain United States federal income tax consequences is intended for
general information only and does not constitute tax advice. Accordingly, each investor should
consult its own tax adviser as to particular tax consequences to it of purchasing, holding and
disposing of the ordinary shares and warrants, including the applicability and effect of any state,
local or foreign laws, and proposed changes in applicable laws.
 DIVIDENDS AND PAYING AGENTS
  STATEMENTS BY EXPERTS
  DOCUMENTS ON DISPLAY
  
 www.sec.gov
 164
      SUBSIDIARY INFORMATION
  Item 11. Quantitative and Qualitative Disclosures About Market Risk
 General
   
    
    both the hedged item and the hedging instrument are specifically identified and documented;
 
    
    management documents the nature of the hedging risk and identifies how the effectiveness of the hedge will be assessed;
 
    
    the effectiveness of the hedge is tested regularly throughout the life of the hedge, and a hedging instrument is
identified as highly effective if it is able to offset changes in the fair value of cash flows from the hedged item by
between 80% and 125% of the price at which it was fixed;
 
    
    any ineffectiveness of hedged instruments is recognized immediately in the income statement; and
 
    
    in the case of a hedge of an anticipated future transaction, there is a high probability that the transaction will
occur.
 Foreign Currency Sensitivity
  Item 5. Operating and Financial Review and Prospects  Credit Facilities and Other Borrowings 
Outstanding Credit Facilities and Other Borrowings. Item 3. Key Information  Exchange Rates and
Item 3. Key Information  Risk Factors  Because most of Harmonys production costs are in Rand,
while gold is generally sold in US dollars, Harmonys financial condition could be materially
harmed by an appreciation in the value of the Rand.
 Commodity Price Sensitivity
 General
  Item 3. Key Information  Risk Factors  The
profitability of Harmonys operations,
 165
      and the cash flows generated by those operations, are affected by changes in the market price for
gold, which in the past has fluctuated widely.
 Harmonys Hedge Policy
 Item 4. Information on the Company  Business  Hedge
Policy.
  Commodity Sales Agreements
  Mark-to-Maturity  Scheduled for Delivery in Fiscal Year
    
    market2006
    
    2007
    
    2008
    
    2009
    
    Total
    
    $000FORWARD SALES
AGREEMENTSOunces
    
    
    108,000
    
    
    
    147,000
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    455,000
    
    
    
    (36,828
    )A$/ounce
    
    
    510
    
    
    
    515
    
    
    
    518
    
    
    
    518
    
    
    
    515CALL OPTIONS SOLDOunces
    
    
    30,000
    
    
    
    10,000
    
    
    
    
    
    
    
    
    
    
    
    40,000
    
    
    
    (994
    )A$/ounce
    
    
    552
    
    
    
    562
    
    
    
    
    
    
    
    
    
    
    
    554Total
    
    
    148,000
    
    
    
    157,000
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    495,000
    
    
    
    (37,822
    )
  Sensitivity Analysis
  Gold spot price at June 30, 2005Sensitivity to $ gold spot price
    
    
    $30
    
    
    
    $20
    
    
    
    $10
    
    
    
    $435
    
    
    
    ($10
    )
    
    
    ($20
    )
    
    
    ($30
    )Mark-to-market ($ million)
    
    
    (23.5
    )
    
    
    (28.2
    )
    
    
    (32.9
    )
    
    
    (37.8
    )
    
    
    (42.6
    )
    
    
    (47.5
    )
    
    
    (52.4
    )
 Weighted average interest rate at June 30, 2005Sensitivity to Australian
dollar interest rates
    
    
    1.5
    %
    
    
    1.0
    %
    
    
    0.5
    %
    
    
    5.83
    %
    
    
    (0.5
    %)
    
    
    (1.0%
    )
    
    
    (1.5
    %)Mark-to-market ($ million)
    
    
    (42.3
    )
    
    
    (40.8
    )
    
    
    (39.3
    )
    
    
    (37.8
    )
    
    
    (36.2
    )
    
    
    (34.6
    )
    
    
    (33.0
    )
 166
      US$/A$ exchange rates at June 30, 2005$1.00=Sensitivity to $/A$
exchange rates
    
    
    A$0.15
    
    
    
    A$0.10
    
    
    
    A$0.05
    
    
    
    A$1.31
    
    
    
    (A$0.05
    )
    
    
    (A$0.10
    )
    
    
    (A$0.15
    )Mark-to-market ($ millions)
    
    
    (55.9
    )
    
    
    (49.5
    )
    
    
    (43.3
    )
    
    
    (37.8
    )
    
    
    (28.4
    )
    
    
    (20.0
    )
    
    
    (12.5
    )
 Commodity Hedging Experience
       Foreign Currency Sensitivity
    167
      Mark-to-Maturity  Scheduled for Fiscal Year
    
    market2006
    
    Total
    
    $000Forward Exchange ContractsUS$ million
    
    
    39.5
    
    
    
    39.5
    
    
    
    16,467Average strike ZAR/US$
    
    
    9.54
    
    
    
    9.54(Buy US$, sell ZAR, at the agreed
exchange rate)Forward Exchange Call Contracts Sold
US$ million
    
    
    39.5
    
    
    
    39.5
    
    
    
    0.4Average strike ZAR/US$
    
    
    9.54
    
    
    
    9.54(Sell US$, buy ZAR, at the agreed
exchange rate)Total
    
    
    
    
    
    
    
    
    
    
    16,467
 Sensitivity Analysis
  US$ /ZAR spot rate June 30, 2005$1=Sensitivity to US $/ZAR spot rate
    
    
    R0.15
    
    
    
    R0.10
    
    
    
    R0.05
    
    
    
    R6.67
    
    
    
    (R0.05
    )
    
    
    (R0.10
    )
    
    
    (R0.15
    )Mark-to-market ($ millions)
    
    
    (15.6
    )
    
    
    (15.9
    )
    
    
    (16.2
    )
    
    
    (16.5
    )
    
    
    (16.8
    )
    
    
    (17.1
    )
    
    
    (17.3
    )
 Weighted average interest rate at June 30, 2005Sensitivity to ZAR interest rates
    
    
    1.5
    %
    
    
    1.0
    %
    
    
    0.5
    %
    
    
    7.00
    %
    
    
    (0.5%
    )
    
    
    (1.0%
    )
    
    
    (1.5%
    )Mark-to-market ($ millions)
    
    
    (16.3
    )
    
    
    (16.3
    )
    
    
    (16.4
    )
    
    
    (16.5
    )
    
    
    (16.5
    )
    
    
    (16.6
    )
    
    
    (16.7
    )
 Interest Rate Sensitivity
 Gold lease rate swaps.
 Interest rate swaps. Item 8. Financial Information  Recent
Developments
  168
      Weighted average ZAR interest rate at June 30, 2005Sensitivity to
South African
Interest Rates
    
    
    1.5
    %
    
    
    1.0
    %
    
    
    0.5
    %
    
    
    7.00
    %
    
    
    (0.5
    %)
    
    
    (1.0
    %)
    
    
    (1.5
    %)Mark-to-market ($
millions)
    
    
    (2.6
    )
    
    
    (2.9
    )
    
    
    (3.2
    )
    
    
    (3.6
    )
    
    
    (3.9
    )
    
    
    (4.2
    )
    
    
    (4.5
    )
    Item 12. Description of Securities Other than Equity Securities
  GLOSSARY OF MINING TERMS
 The following explanations are not intended as technical definitions, but rather are intended to
assist the general reader in understanding certain terms as used in this annual report.
 Alluvial:
 Arenaceous:
 Auriferous:
 Beneficiation:
 Call option:
 Carbon In Pulp (CIP):
 Carbon In Solution (CIS):
 Cash cost:
 Conglomerate:
 Crosscut:
 Cut and fill:
 169
      Cut-off grade:
 Cyanide leaching:
 Decline:
 Deferred Stripping:
 Depletion:
 Development:
 Electro-winning:
 Elution:
 Exploration:
 Fabricated gold:
 Fluvial:
 Footwall:
 Forward purchase:
 Forward sale:
 Gold reserves:
 Gold lease rate swap:
 Grade:
 Greenfield:
 Greenstone:
 Grinding:
 Head grade:
 Heap leaching:
 Leaching:
 Level:
 Littoral:
 170
      Longhole sub-level caving:
 Mark-to-market:
 Measures:
 Metric unit
    
    
    
    U.S. equivalent1 tonne
    
    = 1 t
    
    = 1.10231 short tons1 gram
    
    = 1 g
    
    = 0.03215 ounces1 gram per tonne
    
    = 1 g/t
    
    = 0.02917 ounces per short ton1 kilogram per tonne
    
    = 1 kg/t
    
    = 29.16642 ounces per short ton1 kilometer
    
    = 1 km
    
    = 0.621371 miles1 meter
    
    = 1 m
    
    = 3.28084 feet1 centimeter
    
    = 1 cm
    
    = 0.3937 inches1 millimeter
    
    = 1 mm
    
    = 0.03937 inches1 hectare
    
    = 1 ha
    
    = 2.47105 acres
 Metallurgical plant:
 Mill delivered tons:
 Milling/mill:
 Mineable:
 Mineralization:
 Mineralized material:
 Morphology:
 Open pit/Open cast/Open cut:
 Ore:
 Ore grade:
 Ore reserves:
 
    
    development of additional reserves;
 
    
    depletion of existing reserves through production;
 
    
    actual mining experience; and
 
    
    price forecasts.
  Orebody:
 171
      Ounce:
 Overburden:
 Overburden tons:
 Palaeotopography:
 Pay limit:
 Placer:
 Precipitate:
 Probable reserves:
 Prospect:
 Prospecting license:
 Proven reserves:
 Put option:
 Pyrite:
 Quartz:
 Recovery grade:
 Reef:
 Refining:
 Rehabilitation:
 Sampling:
 Shaft:
 Slimes:
 Slurry:
 Smelting:
 Spot price:
 172
      Stockpile:
 Stockwork:
 Stope:
 Stripping:
 Sulfide:
 Syncline:
 Tailings:
 Ton:
 Tonnage:
 Tonne:
 Trend:
 Unconformity:
 Waste:
 Waste rock:
 Yield:
 Zinc precipitation:
 PART II
 Item 13. Defaults, Dividend Arrearages and Delinquencies
  Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
    173
      USE OF PROCEEDS
  Item 15. Controls and Procedures
  Item 16A. Audit Committee Financial Expert
 Item 7. Directors and Management  Board Practices  Audit
Committee.
 Item 16B. Code of Ethics
  174
      Item 16C. Principal Accountant Fees and Services
 AUDIT FEES
  Fiscal year ended June 30, 2004
    
    $1.1 millionFiscal year ended June 30, 2005
    
    $1.121 million
 AUDIT-RELATED FEES
  Fiscal year ended June 30, 2004
    
    $0.6 millionFiscal year ended June 30, 2005
    
    $0.915 million
  TAX FEES
  Fiscal year ended June 30, 2004
    
    $0.1 millionFiscal year ended June 30, 2005
    
    $0.20 million
  ALL OTHER FEES
  175
      Fiscal year ended June 30, 2004
    
    $0.1 millionFiscal year ended June 30, 2005
    
    $0.123 million
  AUDIT COMMITTEE APPROVAL
  Item 16D. Exemptions from Listing Standards for Audit Committees
  Item 16E. Purchases of Equity Securities by the Issuer
  Item 17. Financial Statements
  Item 18. Financial Statements
 176
      Item 19. Exhibits
 1.1
    
    Memorandum of Association of Harmony, as amended (incorporated by reference to Harmonys
Registration Statement (file no. 333-13516) on Form F-3 filed on June 21, 2001).1.2
    
    Articles of Association of Harmony, as amended.2.1
    
    Notice to shareholders dated September 3, 2004 in respect of the Annual General Meeting held
on November 12, 2004.2.2
    
    Notice to Shareholders dated September 2, 2005 in respect of the Annual General Meeting to be held on November 4, 2005.2.3
    
    Share Exchange Agreement between Avmin and Harmony to acquire the shareholding in Avgold dated
February 16, 2004 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).2.4
    
    Deposit Agreement among Harmony, The Bank of New York, as Depositary, and owners and holders
of American Depositary Receipts, dated as of August 12, 1996, as amended and restated as of
October 2, 1996, as further amended and restated as of September 15, 1998 (incorporated by
reference to Post-Effective Amendment No. 1 to Harmonys Registration Statement (file no.
333-5410) on Form F-6 filed on May 17, 2001).2.5
    
    Form of ADR (included in Exhibit 2.4).2.6
    
    Excerpts of relevant provisions of the South African Companies Act (incorporated by reference
to Harmonys Registration Statement (file no. 0-28798) on Form 20-F filed on September 20,
1996).2.7
    
    Excerpts of relevant provisions of the JSE Securities Exchange South Africa listing
requirements (incorporated by reference to Harmonys Registration Statement (file no. 0-28798)
on Form 20-F filed on September 20, 1996).2.8
    
    Form of Harmonys senior unsecured 13% bonds due June 14, 2006 (incorporated by reference to
Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2001 filed on
September 26, 2001).2.9
    
    Shareholder Circular to Avgold shareholders dated
April 8, 2004 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).2.10
    
    Shareholder Circular to Anglovaal Mining Limiteds
(ARM) shareholders dated March 23, 2004 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).2.11
    
    Trust Deed entered into between Harmony and JPMorgan Corporate Trustee Services Limited dated
May 21, 2004 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).2.12
    
    Agency Agreement between Harmony, JPMorgan Corporate Trustee Services Limited, JPMorgan Chase
Bank and JPMorgan Luxembourg SA dated May 21, 2004 (incorporated
by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).2.13
    
    Form of Global Bond (incorporated by reference to
Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).2.14
    
    Bond Offering Circular dated October 14, 2004
(incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).3
    
    Voting Agreement between ARMI and Clidet 454 (Pty) Ltd signed
on February 16, 2004 (incorporated by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).4.1
    
    Acquisition and Disposal Agreement between ARMI and Anglovaal Mining Limiteds (ARM) holding
in Harmony, ARM Platinum (Pty) Ltd (ARMPlats) and the African Rainbow Minerals Consortium
Limiteds debt, signed on February 16, 2004 (incorporated
by reference to Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).4.2
    
    Addendum to Acquisition and Disposal Agreement between ARMI and Anglovaal Mining Limited
signed on March 15, 2004 (incorporated by reference to
Harmonys Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).
 177
      4.3
    
    Voting Agreement between ARMI and Clidet 454 (Pty) Ltd signed on February 16, 2004 (see Exhibit 3).4.4
    
    Harmony (2003) Share Option Scheme, as amended.4.5
    
    Form of Harmonys senior unsecured 13% bonds due June 14, 2006 (see Exhibit 2.8).4.6
    
    Joint Venture Agreement between ARMgold Limited, Harmony and Clidet 383 (Proprietary) Limited, dated
April 5, 2002 (incorporated by reference to Harmonys
Annual Report on Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).4.7
    
    Merger Agreement between ARMgold Limited and Harmony dated September 22, 2003 (incorporated by
reference to Harmonys Registration Statement on Form 20-F filed on December 17, 2003).4.8
    
    Sale of Business Agreement between Anglogold Limited, Clidet 383 (Pty) Ltd and Harmony Gold Mining
Company Limited and ARM (Pty) Ltd in respect of the Free Gold assets entered into on December 24,
2001 (incorporated by reference to Harmonys Annual Report on
Form 20-F for the fiscal year ended June 30, 2004, as amended, filed on October 14, 2004).4.9
    
    Sale of Shares Agreement amongst Harmony, ARMgold Hamony Joint Investment Company
(Proprietary) Limited, and The ARM Broad-Based Empowerment Trust signed on April 15, 2005.4.10
    
    Subordination Agreement amongst Harmony, Nedbank Limited and The ARM Broad-Based Empowerment
Trust signed on April 15, 2005.4.11
    
    First Loan Agreement between Nedbank Limited and The ARM Broad-Based Empowerment Trust signed
on April 15, 2005.4.12
    
    First Ranking Cessation and Pledge between The ARM Broad-Based Empowerment Trust and Nedbank
Limited signed on April 15, 2005.4.13
    
    Second Loan Agreement between Nedbank Limited and The ARM Broad-Based Empowerment Trust
signed on April 15, 2005.4.14
    
    Second Ranking Cessation and Pledge between The ARM Broad-Based Empowerment Trust and Nedbank
Limited signed on April 15, 2005.4.15
    
    Flow of Funds Agreement amongst Nedbank Limited, ARMgold Harmony Joint Investment Company
(Proprietary) Limited, Harmony and The ARM Broad-Based Empowerment Trust signed on April 15,
2005.4.16
    
    Right of Pre-emption and Deed of Adherence between Nedbank Limited, Harmony, African Rainbow
Minerals & Exploration Investments (Proprietary) Limited and ARMgold Harmony Joint Investment
Company (Proprietary) Limited signed on April 15, 2005.4.17
    
    Agreement of Assignment between African Rainbow Minerals & Exploration Investments
(Proprietary) Limited, Harmony, ARMgold Harmony Joint Investment Company (Proprietary) Limited
and The Trustees of The ARM Broad-Based Empowerment Trust signed on April 15, 2005.4.18
    
    Harmony Option Agreement between Harmony and Nedbank Limited signed on April 15, 2005.4.19
    
    Harmony Undertaking amongst Harmony, ARMgold Harmony Joint Investment Company (Proprietary)
Limited and Nedbank Limited signed on April 15, 2005.8.1
    
    Significant subsidiaries of Harmony Gold Mining Company Limited.12.1
    
    Certification of the principal executive officer required by Rule 13a-14(a) or Rule 15(d)-14(a),
pursuant to Section 302 of the Sarbanes Oxley Act of 2002.12.2
    
    Certification of the principal financial officer required by Rule 13a-14(a) or Rule 15(d)-14(a),
pursuant to Section 302 of the Sarbanes Oxley Act of 2002.13.1
    
    Certification of the chief executive officer, pursuant to Section 906 of the Sarbanes Oxley Act of 2002.13.2
    
    Certification of the chief financial officer, pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
 178
      SIGNATURE
  HARMONY GOLD MINING COMPANY LIMITEDBy:
    /s/ Zacharias Bernardus SwanepoelZ. B. SwanepoelChief Executive OfficerDate: November 2, 2005
      INDEX TO FINANCIAL STATEMENTS
 PageHarmony Gold Mining Company LimitedReport of the Independent Registered Public Accounting Firm
    
    
    F-2Consolidated Income Statements for the years ended June 30, 2005, 2004 and 2003
    
    
    F-3Consolidated Balance Sheets at June 30, 2005 and 2004
    
    
    F-6Consolidated Statements of Cash Flows for the years ended June 30, 2005, 2004 and 2003
    
    
    F-7Consolidated Statements of Changes in Shareholders Equity for the years ended June
30, 2005, 2004 and 2003
    
    
    F-8Notes to the Consolidated Financial Statements
    
    
    F-10
 PageARMgold/Harmony Freegold Joint Venture Company (Proprietary) LimitedReport of the Independent Auditors
    
    
    F-73Income Statement for the three month period ended September 30,
2003, the year ended June 30, 2003 and the six month period ended
June 30, 2002
    
    
    F-74Balance Sheet as at June 30, 2003
    
    
    F-75Statement of Shareholders Equity for the year ended June 30, 2003
and the six month period ended June 30, 2002
    
    
    F-76Statement of Cash Flows for the three month period ended September
30, 2003, the year ended June 30, 2003, and the six month period
ended June 30, 2002
    
    
    F-77Notes to the Financial Statements
    
    
    F-78
 F-1
      REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      PricewaterhouseCoopers Inc.
  F-2
      Harmony Gold Mining Company Limited
 Consolidated Income Statements
For the years ended June 30
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000REVENUESProduct sales
    
    
    1,265,200
    
    
    
    1,240,339
    
    
    
    781,792COSTS AND EXPENSESProduction costs exclusive of depreciation and amortization
    
    
    1,217,562
    
    
    
    1,172,483
    
    
    
    601,143Deferred stripping costs
    
    
    15,362
    
    
    
    (4,119
    )
    
    
    (1,397
    )Depreciation and amortization
    
    
    117,469
    
    
    
    104,045
    
    
    
    60,931Impairment of assets
    
    
    243,124
    
    
    
    3,145
    
    
    
    117,594Employment termination and restructuring costs
    
    
    73,215
    
    
    
    31,668
    
    
    
    5,098Care and maintenance cost of restructured shafts
    
    
    29,975
    
    
    
    
    
    
    
    Corporate expenditure
    
    
    17,969
    
    
    
    14,193
    
    
    
    7,941Exploration expenditure
    
    
    11,676
    
    
    
    15,810
    
    
    
    10,980Marketing and new business expenditure
    
    
    15,310
    
    
    
    12,533
    
    
    
    7,839Share-based compensation
    
    
    14,331
    
    
    
    7,135
    
    
    
    1,761Decrease in rehabilitation costs
    
    
    (1,814
    )
    
    
    (17,839
    )
    
    
    (9,022
    )Post retirement benefits expense
    
    
    9,137
    
    
    
    
    
    
    
    5031,763,316
    
    
    
    1,339,054
    
    
    
    803,371OPERATING LOSS
    
    
    (498,116
    )
    
    
    (98,715
    )
    
    
    (21,579
    )OTHER (EXPENSES)/INCOMEDividends received
    
    
    2,785
    
    
    
    533
    
    
    
    341(Loss)/gain on financial instruments
    
    
    (17,672
    )
    
    
    (32,385
    )
    
    
    43,154(Loss)/profit on sale of listed investments
    
    
    (93,470
    )
    
    
    4,910
    
    
    
    59,243Impairment of listed investment
    
    
    (63,234
    )
    
    
    
    
    
    
    Profit on sale and loss on dilution of investment in associates  net
    
    
    
    
    
    
    65,097
    
    
    
    (Loss)/profit on sale of subsidiaries
    
    
    (114
    )
    
    
    115
    
    
    
    Interest received
    
    
    21,396
    
    
    
    28,029
    
    
    
    21,924Interest paid  net of amounts capitalized of $1.9 million, $1.7
million and $nil in 2005, 2004 and 2003, respectively
    
    
    (65,074
    )
    
    
    (64,289
    )
    
    
    (36,066
    )Other (expenses)/income
    
    
    (3,661
    )
    
    
    14,155
    
    
    
    (21,112
    )(219,044
    )
    
    
    16,165
    
    
    
    67,484(LOSS)/INCOME BEFORE TAX, MINORITY INTERESTS,
EQUITY INCOME, IMPAIRMENT OF ASSOCIATES AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLES
    
    
    (717,160
    )
    
    
    (82,550
    )
    
    
    45,905Income and mining tax benefit/(expense)
    
    
    100,693
    
    
    
    41,884
    
    
    
    (25,255
    )(LOSS)/INCOME BEFORE MINORITY INTERESTS, EQUITY
INCOME, IMPAIRMENT OF ASSOCIATES AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLES
    
    
    (616,467
    )
    
    
    (40,666
    )
    
    
    20,650Minority interests
    
    
    
    
    
    
    1,281
    
    
    
    (468
    )(LOSS)/INCOME BEFORE EQUITY INCOME, IMPAIRMENT
OF ASSOCIATES AND CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLES
    
    
    (616,467
    )
    
    
    (39,385
    )
    
    
    20,182Equity income of joint venture
    
    
    
    
    
    
    7,918
    
    
    
    52,843Equity profit/(loss) of associated companies
    
    
    
    
    
    
    2,020
    
    
    
    (1,233
    )Impairment of investment in associate
    
    
    
    
    
    
    (1,956
    )
    
    
    (LOSS)/INCOME BEFORE CUMULATIVE EFFECT OF
CHANGES IN ACCOUNTING PRINCIPLES
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    71,792Cumulative effect of changes in accounting principles, net of tax
    
    
    
    
    
    
    
    
    
    
    14,770NET (LOSS)/INCOME
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    86,562BASIC (LOSS)/EARNINGS PER SHARE ($) BEFORE
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.40
 F-3
      2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000FULLY DILUTED (LOSS)/EARNINGS PER SHARE ($)
BEFORECUMULATIVE EFFECT OF CHANGES INACCOUNTING PRINCIPLES
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.39BASIC (LOSS)/EARNINGS PER SHARE ($)
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.49FULLY DILUTED (LOSS)/EARNINGS PER SHARE ($)
    
    
    (1.70
    )
    
    
    (0.12
    )
    
    
    0.47WEIGHTED AVERAGE NUMBER OF SHARES USED IN
THECOMPUTATION OF BASIC EARNINGS PER SHARE
    
    
    362,499,012
    
    
    
    254,240,500
    
    
    
    177,954,245WEIGHTED AVERAGE NUMBER OF SHARES USED IN
THECOMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
    
    
    362,499,012
    
    
    
    254,240,500
    
    
    
    182,721,629DIVIDEND PER SHARE ($)
    
    
    0.05
    
    
    
    0.26
    
    
    
    0.57
 The accompanying notes are an integral part of these consolidated financial statements
 F-4
      Harmony Gold Mining Company Limited
 Consolidated Statements of Comprehensive Income
For the years ended June 30
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000(Loss)/income  before cumulative effect of changes in accounting principles
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    71,792Cumulative effect of changes in accounting principles, net of tax
    
    
    
    
    
    
    
    
    
    
    14,770Net (loss)/income
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    86,562Other comprehensive (loss)/incomeMark-to-market of listed and other investments  unrealized
    
    
    (43,656
    )
    
    
    (52,274
    )
    
    
    4,498Mark-to-market of listed and other investments  realized
    
    
    105,892
    
    
    
    (6,006
    )
    
    
    (65,208
    )Mark-to-market of environmental trust funds
    
    
    (1,018
    )
    
    
    (64
    )
    
    
    Mark-to-market of cash flow hedging instruments
    
    
    
    
    
    
    
    
    
    
    (5,088
    )Foreign currency translation adjustment
    
    
    (185,944
    )
    
    
    374,859
    
    
    
    250,142Other comprehensive (loss)/income
    
    
    (124,726
    )
    
    
    316,515
    
    
    
    184,344Comprehensive (loss)/income
    
    
    (741,193
    )
    
    
    285,112
    
    
    
    270,906
 The accompanying notes are an integral part of these consolidated financial statements
 F-5
      Harmony Gold Mining Company Limited
 Consolidated Balance Sheets
At June 30
 2005
    
    
    2004$000
    
    
    $000ASSETSCURRENT ASSETSCash and cash equivalents
    
    
    266,746
    
    
    
    217,022Receivables
    
    
    94,730
    
    
    
    138,118Inventories
    
    
    86,121
    
    
    
    84,659Materials contained in heap leach pads
    
    
    553
    
    
    
    593Income and mining taxes
    
    
    3,980
    
    
    
    Deferred income and mining taxes
    
    
    138,519
    
    
    
    71,132Total current assets
    
    
    590,649
    
    
    
    511,524Property, plant and equipment
    
    
    3,271,019
    
    
    
    3,636,773Other assets
    
    
    14,328
    
    
    
    31,838Goodwill
    
    
    30,367
    
    
    
    32,480Restricted cash
    
    
    7,798
    
    
    
    9,922Investments
    
    
    642,516
    
    
    
    419,378Investments in associates
    
    
    
    
    
    
    19,908TOTAL ASSETS
    
    
    4,556,677
    
    
    
    4,661,823LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable and accrued liabilities
    
    
    427,544
    
    
    
    382,858Income and mining taxes
    
    
    
    
    
    
    9,565Dividends payable
    
    
    1,211
    
    
    
    1,341Total
current liabilities
    
    
    428,755
    
    
    
    393,764Long-term loans
    
    
    409,486
    
    
    
    509,195Deferred income and mining taxes
    
    
    510,298
    
    
    
    558,812Deferred financial liabilities
    
    
    76,720
    
    
    
    91,513Provision for environmental rehabilitation
    
    
    120,450
    
    
    
    125,917Provision for social plan
    
    
    2,109
    
    
    
    1,958Provision for post retirement benefits
    
    
    13,276
    
    
    
    1,584Commitments and contingencies (Note 29)SHAREHOLDERS EQUITYShare
capital  1 200,000,000 (2004: 350,000,000) authorized
ordinary shares of 50 South African cents each. Shares
issued 394,023,694 (2004: 321,424,077)
    
    
    31,448
    
    
    
    25,204Additional paid-in capital
    
    
    3,425,296
    
    
    
    2,624,721(Accumulated loss)/retained earnings
    
    
    (522,891
    )
    
    
    108,029Deferred share-based compensation
    
    
    (38,294
    )
    
    
    (3,624
    )Accumulated other comprehensive income
    
    
    100,024
    
    
    
    224,750Total shareholders equity
    
    
    2,995,583
    
    
    
    2,979,080TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    4,556,677
    
    
    
    4,661,823
 The accompanying notes are an integral part of these consolidated financial statements
 F-6
      Harmony Gold Mining Company Limited
 Consolidated Statements of Cash Flows
For the years ended June 30
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000CASH FLOW FROM OPERATIONSSources of cashCash received from customers
    
    
    1,265,200
    
    
    
    1,240,339
    
    
    
    781,792Interest and dividends received
    
    
    24,181
    
    
    
    28,562
    
    
    
    22,265Cash provided by operating activities
    
    
    1,289,381
    
    
    
    1,268,901
    
    
    
    804,057Uses of cashCash paid to suppliers and employees
    
    
    1,449,346
    
    
    
    1,231,713
    
    
    
    580,516Interest paid
    
    
    42,156
    
    
    
    44,189
    
    
    
    27,396Income and mining taxes paid
    
    
    8,952
    
    
    
    83,881
    
    
    
    43,514Cash used in operating activities
    
    
    1,500,454
    
    
    
    1,359,783
    
    
    
    651,426NET CASH (UTILIZED)/GENERATED BY OPERATIONS
    
    
    (211,073
    )
    
    
    (90,882
    )
    
    
    152,631CASH FLOW FROM INVESTING ACTIVITIESNet increase in amounts invested in environmental trusts
    
    
    (251
    )
    
    
    (5,529
    )
    
    
    (3,733
    )Restricted cash
    
    
    1,585
    
    
    
    (8,973
    )
    
    
    Cash held by subsidiaries on acquisition
    
    
    723
    
    
    
    100,872
    
    
    
    10,770Cash held by subsidiaries at disposal
    
    
    (1,830
    )
    
    
    (69
    )
    
    
    Loan repaid by Free Gold Company
    
    
    
    
    
    
    
    
    
    
    21,768Cash paid for Abelle Mines
    
    
    
    
    
    
    (85,168
    )
    
    
    (105,433
    )Investment in Highland Gold
    
    
    
    
    
    
    
    
    
    
    (7,635
    )Investment in ARM
    
    
    
    
    
    
    
    
    
    
    (115,442
    )Investment in High River
    
    
    
    
    
    
    
    
    
    
    (14,514
    )Other direct costs of acquisition of ARMgold
    
    
    
    
    
    
    (195
    )
    
    
    Other direct costs of acquisition of Avgold
    
    
    
    
    
    
    (256
    )
    
    
    Cash received for Bissett
    
    
    
    
    
    
    2,598
    
    
    
    Other direct costs of investment in Gold Fields
    
    
    (13,802
    )
    
    
    
    
    
    
    Proceeds on disposal of listed investments
    
    
    380,363
    
    
    
    146,350
    
    
    
    89,618Increase in other non-current investments
    
    
    (1,204
    )
    
    
    (7,677
    )
    
    
    (9,352
    )Proceeds on disposal of mining assets
    
    
    20,892
    
    
    
    28,981
    
    
    
    3,055Additions to property, plant and equipment
    
    
    (133,065
    )
    
    
    (112,215
    )
    
    
    (99,114
    )NET CASH GENERATED/(UTILIZED) BY INVESTING ACTIVITIES
    
    
    253,411
    
    
    
    58,719
    
    
    
    (230,012
    )CASH FLOWS FROM FINANCING ACTIVITIESLong-term
borrowings raised  net
    
    
    31,899
    
    
    
    42,767
    
    
    
    102,478Ordinary
shares issued  net of expenses
    
    
    (9,695
    )
    
    
    7,729
    
    
    
    151,285Dividends paid
    
    
    (14,495
    )
    
    
    (54,943
    )
    
    
    (98,632
    )NET CASH GENERATED/(UTILIZED) BY FINANCING ACTIVITIES
    
    
    7,709
    
    
    
    (4,447
    )
    
    
    155,131EFFECTS OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
    
    
    (323
    )
    
    
    64,592
    
    
    
    21,067NET INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    49,724
    
    
    
    27,982
    
    
    
    98,817CASH AND
CASH EQUIVALENTS  JULY 1
    
    
    217,022
    
    
    
    189,040
    
    
    
    90,223CASH AND
CASH EQUIVALENTS  JUNE 30
    
    
    266,746
    
    
    
    217,022
    
    
    
    189,040
 The accompanying notes are an integral part of these consolidated financial statements
  F-7
      Harmony Gold Mining Company Limited
 Consolidated Statements of Changes in Shareholders Equity
For the years ended June 30
 AccumulatedAdditional
    
    
    (Accumulated
    
    
    other
    
    
    Deferred share-Number of
    
    
    Number of
    
    
    Share
    
    
    paid-in
    
    
    loss)/retained
    
    
    comprehensive
    
    
    basedordinary
    
    
    warrants
    
    
    capital
    
    
    capital
    
    
    earnings
    
    
    income/(loss)
    
    
    compensation
    
    
    Totalshares issued
    
    
    issued
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000BALANCE  JUNE 30, 2002
    
    
    169,929,849
    
    
    
    8,013,446
    
    
    
    14,852
    
    
    
    814,491
    
    
    
    206,544
    
    
    
    (276,109
    )
    
    
    (6,652
    )
    
    
    753,126Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86,562
    
    
    
    
    
    
    
    
    
    
    
    86,562Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (98,669
    )
    
    
    
    
    
    
    
    
    
    
    (98,669
    )Issue of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
     Public offerings
    
    
    8,000,000
    
    
    
    
    
    
    
    468
    
    
    
    123,785
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    124,253 Correction of Randfontein offer
    
    
    114,750
    
    
    
    
    
    
    
    7
    
    
    
    479
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    486Exercise of employee share options
    
    
    1,846,600
    
    
    
    
    
    
    
    93
    
    
    
    6,623
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,716Share issue expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,318
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,318
    )Conversion of warrants
    
    
    5,645,416
    
    
    
    (5,645,416
    )
    
    
    292
    
    
    
    24,856
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,148Deferred share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,890
    
    
    
    
    
    
    
    
    
    
    
    (8,890
    )
    
    
    Amortization of deferred share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,986
    
    
    
    3,986Share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,294
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,294
    )Mark-to-market of listed and other investments  unrealized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,498
    
    
    
    
    
    
    
    4,498Mark-to-market of listed and other investments  realized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (65,208
    )
    
    
    
    
    
    
    (65,208
    )Mark-to-market of cash flow hedging instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,088
    )
    
    
    
    
    
    
    (5,088
    )Foreign exchange translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250,142
    
    
    
    
    
    
    
    250,142BALANCE  JUNE 30, 2003
    
    
    185,536,615
    
    
    
    2,368,030
    
    
    
    15,712
    
    
    
    971,512
    
    
    
    194,437
    
    
    
    (91,765
    )
    
    
    (11,556
    )
    
    
    1,078,340Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (31,403
    )
    
    
    
    
    
    
    
    
    
    
    (31,403
    )Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (55,005
    )
    
    
    
    
    
    
    
    
    
    
    (55,005
    )Issue of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
     Acquisition of 11.5% interest in Avgold
    
    
    6,960,964
    
    
    
    
    
    
    
    455
    
    
    
    83,941
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    84,396 Acquisition of ARMgold
    
    
    63,666,672
    
    
    
    
    
    
    
    4,308
    
    
    
    678,089
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    682,397 Acquisition of 42.2% interest in Avgold
    
    
    28,630,526
    
    
    
    
    
    
    
    2,048
    
    
    
    411,927
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    413,975 Acquisition of Avgold minorities
    
    
    33,574,367
    
    
    
    
    
    
    
    2,474
    
    
    
    482,986
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    485,460Exercise of employee share options
    
    
    703,800
    
    
    
    
    
    
    
    51
    
    
    
    4,401
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,452Share issue expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,781
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,781
    )Conversion of warrants
    
    
    2,351,133
    
    
    
    (2,351,133
    )
    
    
    156
    
    
    
    13,222
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,378Warrants expired
    
    
    
    
    
    
    (16,897
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consolidation of share trusts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,425
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,425
    )Deferred share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,151
    )
    
    
    
    
    
    
    
    
    
    
    797
    
    
    
    (1,354
    )Amortization of deferred share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,135
    
    
    
    7,135Mark-to-market of listed and other investments  unrealized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (52,274
    )
    
    
    
    
    
    
    (52,274
    )Mark-to-market of listed and other investments  realized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,006
    )
    
    
    
    
    
    
    (6,006
    )Mark-to-market of environmental trust funds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (64
    )
    
    
    
    
    
    
    (64
    )Foreign exchange translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    374,859
    
    
    
    
    
    
    
    374,859BALANCE  JUNE 30, 2004
    
    
    321,424,077
    
    
    
    
    
    
    
    25,204
    
    
    
    2,624,721
    
    
    
    108,029
    
    
    
    224,750
    
    
    
    (3,624
    )
    
    
    2,979,080Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (616,467
    )
    
    
    
    
    
    
    
    
    
    
    (616,467
    )Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14,453
    )
    
    
    
    
    
    
    
    
    
    
    (14,453
    )Issue of shares Acquisition of 11.5% interest in Gold Fields
    
    
    72,173,265
    
    
    
    
    
    
    
    6,210
    
    
    
    760,980
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    767,190Exercise of employee share options
    
    
    426,352
    
    
    
    
    
    
    
    34
    
    
    
    3,227
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,261Share issue expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,957
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,957
    )Consolidation of share trusts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    324
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    324Deferred share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49,001
    
    
    
    
    
    
    
    
    
    
    
    (49,001
    )
    
    
    Amortization of deferred share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,331
    
    
    
    14,331Mark-to-market of listed and other investments  unrealized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (43,656
    )
    
    
    
    
    
    
    (43,656
    )Mark-to-market of listed and other investments  realized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    105,892
    
    
    
    
    
    
    
    105,892Mark-to-market of environmental trust funds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,018
    )
    
    
    
    
    
    
    (1,018
    )Foreign exchange translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (185,944
    )
    
    
    
    
    
    
    (185,944
    )BALANCE  JUNE 30, 2005
    
    
    394,023,694
    
    
    
    
    
    
    
    31,448
    
    
    
    3,425,296
    
    
    
    (522,891
    )
    
    
    100,024
    
    
    
    (38,294
    )
    
    
    2,995,583
 The accompanying notes are an integral part of these consolidated financial statements
 F-8
      Harmony Gold Mining Company Limited
 Consolidated Statements of Changes in Shareholders Equity
For the years ended June 30
  Mark-to-market
    
    
    ForeignMark-to-market of
    
    
    of listed and
    
    
    currency
    
    
    Accumulated othercash flow hedging
    
    
    other
    
    
    translation
    
    
    comprehensiveinstruments
    
    
    investments
    
    
    adjustment
    
    
    income/(loss)$000
    
    
    $000
    
    
    $000
    
    
    $000BALANCE  JUNE 30, 2002
    
    
    5,142
    
    
    
    59,771
    
    
    
    (341,022
    )
    
    
    (276,109
    )Mark-to-market of cash flow hedging instruments
    
    
    (5,088
    )
    
    
    
    
    
    
    
    
    
    
    (5,088
    )Mark-to-market of listed and other investments  unrealized
    
    
    
    
    
    
    4,498
    
    
    
    
    
    
    
    4,498Mark-to-market of listed and other investments  realized
    
    
    
    
    
    
    (65,208
    )
    
    
    
    
    
    
    (65,208
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    250,142
    
    
    
    250,142BALANCE  JUNE 30, 2003
    
    
    54
    
    
    
    (939
    )
    
    
    (90,880
    )
    
    
    (91,765
    )Mark-to-market of listed and other investments  unrealized
    
    
    
    
    
    
    (52,274
    )
    
    
    
    
    
    
    (52,274
    )Mark-to-market of listed and other investments  realized
    
    
    
    
    
    
    (6,006
    )
    
    
    
    
    
    
    (6,006
    )Mark-to-market of environmental trust funds
    
    
    
    
    
    
    (64
    )
    
    
    
    
    
    
    (64
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    374,859
    
    
    
    374,859BALANCE  JUNE 30, 2004
    
    
    54
    
    
    
    (59,283
    )
    
    
    283,979
    
    
    
    224,750Mark-to-market of listed and other investments  unrealized
    
    
    
    
    
    
    (43,656
    )
    
    
    
    
    
    
    (43,656
    )Mark-to-market of listed and other investments  realized
    
    
    
    
    
    
    105,892
    
    
    
    
    
    
    
    105,892Mark-to-market of environmental trust funds
    
    
    
    
    
    
    (1,018
    )
    
    
    
    
    
    
    (1,018
    )Foreign currency translation adjustment
    
    
    (54
    )
    
    
    (68
    )
    
    
    (185,822
    )
    
    
    (185,944
    )BALANCE  JUNE 30, 2005
    
    
    
    
    
    
    1,867
    
    
    
    98,157
    
    
    
    100,024
 The accompanying notes are an integral part of these consolidated financial statements
 F-9
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
 1
    
    NATURE OF OPERATIONSHarmony Gold Mining Company Limited (Harmony, the Company or the Group) is engaged in gold mining and related activities, including exploration, extraction, processing and refining. Gold bullion, the
Companys principal product, is currently produced at its operations in South Africa and Australia.2
    
    ACCOUNTING POLICIES
 (a)
    
    USE OF ESTIMATES:The Companys consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the Companys consolidated
financial statements requires the Companys management to make estimates and assumptions about current and future events that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise
of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results ultimately may differ from those estimates.The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates and units-of-production depreciation, depletion and amortization calculations;
environmental, reclamation and closure obligations; estimates of recoverable gold and other materials in heap leach pads; asset impairments (including impairments of goodwill, long-lived assets, and investments); write-downs of inventory to net
realizable value; post employment, post retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; reserves for contingencies and litigation; and the fair value and accounting treatment of financial
instruments.The following are accounting policies used by the Company which, except as described in note 2(m)(iv) and note 2(o) below, have been consistently applied:(b)
    
    CONSOLIDATION:
 (i)
    
    Consolidated entities:The Groups consolidated financial statements include the financial statements of the Company, its subsidiaries, and its investments in joint ventures and associates. A company in which the Group has,
directly or indirectly, through subsidiary undertakings, a controlling interest is classified as a subsidiary undertaking. In addition, the Company reviews its relationships with other entities to assess if the Company is the primary beneficiary of
a variable interest entity. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. See note 4. The results of any subsidiary acquired or disposed of during the year are consolidated from the
effective date of acquisition and up to the effective date of disposal.Any excess between the purchase price and the fair value of the identifiable net assets of subsidiaries, joint ventures and associates at the date of acquisition is capitalized as goodwill.Intercompany profits, transactions and balances have been eliminated.(ii)
    
    Investments in associates:An associate is an entity, other than a subsidiary, in which the Group has a material long-term interest and in respect of which the Group exercises significant influence over operational and financial
policies, normally owning between 20% and 50% of the voting equity.Investments in associates are accounted for by using the equity method of accounting based on the most recent audited financial statements of those entities. Equity accounting involves recognizing in the income statement the Groups
share of the associates profit or loss for the period. The Groups interest in the associate is carried in the balance sheet at an amount that reflects the cost of the investment, the Groups share of post acquisition earnings and
other movement in reserves. The carrying value of an associate is reviewed on a regular basis and, if an impairment in the carrying value has occurred, it is written off in the period in which such permanent impairment is identified.
 F-10
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
 (iii)
    
    Investment in joint ventures:A joint venture is an entity in which the group holds a long-term interest and which is jointly controlled by the Group and one or more venturers under a contractual arrangement. The Groups interest
in jointly controlled entities is accounted for under the equity method as described in note 2(b)(ii) above.(iv)
    
    Goodwillrepresents the excess of the cost of an acquisition over the fair value of the Groups share of the net assets of the acquired subsidiary, associate, joint venture or business at the date of acquisition. Goodwill on
acquisition of subsidiaries and businesses is included in intangible assets. Goodwill on acquisition of associates and joint ventures are included in the carrying value of investments in associates and joint ventures.Goodwill is not subject to amortization. Instead, the Company evaluates, on at least an annual basis, the carrying amount of goodwill to determine whether current events and circumstances indicate that such carrying amount may no longer be
recoverable. To accomplish this, the Company compares the fair value of its reporting units to their carrying amounts. If the carrying value of a reporting unit were to exceed its fair value, the Company would perform the second step of the
impairment test. In the second step, the Company would compare the implied fair value of the reporting units goodwill to its carrying amount and any excess of the carrying value over the implied fair value would be charged to operations.The gain or loss on disposal of an entity includes the carrying amount of goodwill relating to the entity sold.
 (c)
    
    FOREIGN CURRENCIES:
 (i)
    
    Foreign entities:For self-sustaining foreign entities, assets and liabilities are translated using the closing rates at year-end, and income statements are translated at average rates. Differences arising on translation are taken
directly to shareholders equity, until the foreign entity is sold or disposed of when the translation differences are recognized in the income statement as part of the gain or loss on sale.Fair value adjustments arising on the acquisition of the foreign entities are treated as assets and liabilities of the foreign entity are translated at the closing rate.(ii)
    
    Foreign currency transactions:Transactions in foreign currencies are converted at the rates of exchange ruling at the date of these transactions. Monetary assets and liabilities denominated in foreign currencies are translated at
rates of exchange ruling at balance sheet date. Gains, losses and costs associated with foreign currency transactions are recognized in the income statement in the period to which they relate. These transactions are included in the determination of
other income  net.(iii)
    
    Functional currency:The functional currency of the majority of the Groups operations is the South African Rand. The translation differences arising as a result of converting to US dollars using the current exchange rate method
are included as a separate component of shareholders equity.References to A$ refers to Australian currency, R to South African currency, and $ or US$ to United States currency.
 (d)
    
    FINANCIAL INSTRUMENTSare initially measured at cost. Subsequent to initial recognition these instruments are measured as set out below in terms of the applicable accounting policy. Financial instruments carried on the balance sheet
include cash and cash equivalents, money market instruments, investments, receivables, accounts payable, long term loans, interest free loans, forward sales contracts, option contracts, interest rate swaps and gold leases.
 F-11
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (e)
    
    CASH AND CASH EQUIVALENTSare defined as cash on hand, deposits held at
call with banks and short term highly liquid investments with insignificant
interest rate risk and original maturities of three months or less. Cash
and cash equivalents are measured at fair value.(f)
    
    NON-CURRENT INVESTMENTS: Management determines the appropriate
classification of its investments in equity securities at the time of
purchase and re-evaluates such determinations at each reporting date.
Non-current investments comprise of the following:
 (i)
    
    Listed investments: Investments in listed companies, other than
investments in subsidiaries, joint ventures and associates, are
carried at fair value. These investments are considered to be
available-for-sale investments. Changes in the carrying amount of
available-for-sale investments, are excluded from earnings and
included as a separate component of shareholders equity. On disposal
of available-for-sale investments, amounts previously included as a
separate component of shareholders equity, are transferred to
income/(loss) and included in the determination of the gain/(loss) on
disposal of available-for-sale securities. The amount transferred out
of equity is determined by reference to the amounts previously
included as a seperate component of shareholders equity relating to
the specific investment. Unrealized losses are recognized in the
determination of net income/(loss) when it is determined that an,
other than temporary, significant decline in the value of the
investment has occurred.(ii)
    
    Unlisted investmentsare reflected at cost. If the directors are of
the opinion that there has been an impairment in the value of these
investments they are written down, with the write down recognized as
an expense in the period in which the impairment is determined to have
taken place.
 (g)
    
    INVENTORIESare valued at the lower of cost and net realizable value. The
Companys inventories comprise of consumable stores,
gold-in-process and ore stockpiles and are accounted for as follows:
 Consumable
stores
 Gold-in-process
 Stockpiles
 (h)
    
    MATERIALS CONTAINED IN HEAP LEACH PADS:The recovery of gold from
certain oxide ores is best achieved through the heap leaching process.
Under this method, ore is placed on leach pads where it is permeated
with a chemical solution, which dissolves the gold contained in the
ore. The resulting pregnant solution is further processed in a leach
plant where the gold in ( solution is recovered. For accounting
purposes, value is added to leach pads based on current mining costs,
including applicable depreciation and amortization relating to mining
operations. Value is removed from the leach pad as ounces are
recovered in circuit at the leach plant based on the average cost per
recoverable ounce of gold on the leach pad.
 F-12
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
    (i)
    
    RECEIVABLES:Accounts receivable are stated at the gross invoice value
adjusted for payments received and an allowance for doubtful debt,
where appropriate, to reflect the fair value of the anticipated
realizable value. Bad debts are written off during the period in which
they are identified.(j)
    
    ACCOUNTS PAYABLEare stated at cost adjusted for payments made to
reflect the value of the anticipated economic outflow of resources.(k)
    
    HEDGING:The Company accounts for its hedging activities in accordance
with Statement of Financial Accounting Standards (SFAS) No. 133
(SFAS No. 133), Accounting for Derivative instruments and Hedging
Activities, as amended by Statements of Financial Accounting Standards
Nos. 137, 138 and 149.
      F-13
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
   (l)
    
    EXPLORATION COSTSare expensed as incurred prior to the completion of
a final feasibility study to establish proved and probable reserves.(m)
    
    PROPERTY, PLANT AND EQUIPMENT
 (i)
    
    Mining assetsincluding mine
development costs and mine plant facilities are recorded at cost.
   (ii)
    
    Mining operations placed on care and maintenance: The net assets of
operations placed on care and maintenance are written down to net
realizable value. Expenditure on the care and maintenance of these
operations is charged against income, as incurred.(iii)
    
    Non mining fixed assets: Land is shown at cost and not depreciated.
Other non-mining fixed assets are shown at cost less accumulated
depreciation.(iv)
    
    Mineral and surface use rightsrepresent mineral and surface use
rights for parcels of land both owned and not owned by the Company.
Mineral and surface rights include acquired mineral use rights in
production, development and exploration stage properties. The amount
capitalized related to a mineral and surface rights represents its
fair value at the time it was acquired, either as an individual asset
purchase or as part of a business combination and are recorded at cost
of acquisition.
 Production Development Exploration
 F-14
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
   (v)
    
    Depreciation and amortization of mineral property interests, mine
development costs and mine plant facilitiesare computed principally
by the units of production method based on estimated total proven and
probable reserves. Proven and probable ore reserves reflect estimated
quantities of economically recoverable reserves which can be recovered
in future from known mineral deposits. Amortization related to
development projects is first recognized from the date on which the
development project reaches commercial production quantities. Other
non-mining fixed assets are depreciated by straight line over
estimated useful lives of two to five years.(vi)
    
    Amortization of mineral and surface use rights:Mineral rights
associated with production stage mineral interests are amortized over
the life of mine using the units-of-production method in order to
match the amortization with the expected underlying future cash flows.
Mineral interests associated with development and exploration stage
mineral interests are not amortized until such time as the underlying
property is converted to the production stage.
 F-15
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (vii)
    
    Impairment: The Company reviews and evaluates its long-lived assets
for impairment when events or changes in circumstances indicate that
the related carrying amounts may not be recoverable. An impairment is
considered to exist if the total estimated future cash flows on an
undiscounted basis are less than the carrying amount of the assets,
including goodwill, if any. An impairment loss is measured and recorded
based on discounted estimated future cash flows. Future cash flows are
estimated based on quantities of recoverable minerals, expected gold
prices (considering current and historical prices, price trends and
related factors), production levels and cash costs of production and
capital, all based on life-of-mine plans.
  (n)
    
    DEFERRED STRIPPING COSTS: The costs of waste stripping in excess of
the expected pit life average stripping ratio are deferred and charged to
production when the actual ratio is below the expected average ratio. The
expected pit life average stripping ratio is calculated as the ratio of
future anticipated waste tonnes to be mined, to anticipated future ore
tons to be mined. This ratio is recalculated annually in light of
additional knowledge and changes in estimates. The expected pit life
ratio is then compared to waste associated with ore mined during the
period so as to calculate the deferred stripping costs to be deferred or
released for the period.(o)
    
    ENVIRONMENTAL OBLIGATIONS: SFAS No. 143, Accounting for Asset
Retirement Obligations (SFAS No. 143) was adopted by the Company with effect
 from July 1, 2002.
  F-16
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
     (p)
    
    ENVIRONMENTAL TRUST FUNDS: Contributions are made to the Groups
trust funds, created in accordance with statutory requirements, to
fund
the estimated cost of pollution control, rehabilitation and mine closure
at the end of the life of the Groups South African mines. Contributions
are determined on the basis of the estimated environmental obligation
over the life of the mine. Income earned on monies paid to
environmental trust funds is accounted for as investment income. The
funds contributed to the trusts plus growth in the trust funds are
included under investments on the balance sheet.(q)
    
    PROVISIONSare recognized when information is available prior to the
issuance of financial statements which indicates that it is probable that an
asset has been impaired or a liability has been incurred as at the date of the
financial statements and can be reasonably estimated.(r)
    
    DEFERRED TAXATION:The Group follows the comprehensive liability
method of accounting for deferred tax using the balance sheet approach.
Under this method deferred income and mining taxes are recognized for the
tax consequences of temporary differences by applying expected future
mining tax rates to the differences between the tax base of certain
assets or liabilities and their balance sheet carrying amount. The
effect on deferred tax of any changes in tax rates is recognized in the
income statement during the period in which the change in tax rate
occurs.
  (s)
    
    PENSION PLANS AND OTHER EMPLOYEE BENEFITS:
 (i)
    
    Pension plansare funded through annual contributions. The Groups
contributions to the defined contribution pension plans are charged to the
income statement in the year to which they relate. The Groups liability is
limited to its annually determined contributions.
 F-17
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (ii)
    
    Medical plans:The Group provides medical cover to current employees
and certain retirees through certain funds. The medical accounting
costs for the defined benefit plan are assessed using the projected
unit credit method. The health care obligation is measured as the
present value of the estimated future cash outflows using market
yields consistent with the term and risks of the obligation.
Actuarial gains and losses as a result of these valuations are
recognised in the income statement at re-valuation date. A liability
for retirees and their dependents is accrued in full based on
actuarial valuations every year.(iii)
    
    Share-based compensation:Effective July 1, 2001, the Company adopted
SFAS No. 123, Accounting for Stock-Based Compensation (SFAS No. 123)
for all share option grants subsequent to that date. Accordingly, the
Company fair values all share options granted subsequent to July 1,
2001, at the date of the option grant. The total fair value of the
options granted is recorded as deferred share-based compensation as a
seperate component of shareholders equity with a corresponding amount
recorded as additional paid-in capital. The deferred share-based
compensation is amortized as share-based compensation expense in the
income statement over the vesting period of the respective option
grant. Prior to July 1, 2001, the Company applied Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees (APB 25) and its related interpretations in accounting for
its employee stock option plan.
  2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000(Loss)/income before cumulative effect of change
in accounting principle as reported
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    71,792Plus: Share-based compensation expense recognized
    
    
    14,331
    
    
    
    7,135
    
    
    
    1,761Less: Pro forma share-based compensation expense based
on fair value of all awards granted
    
    
    (15,618
    )
    
    
    (9,446
    )
    
    
    (4,821
    )Pro forma (loss)/income before cumulative effect of change in
accounting principle as reported
    
    
    (617,754
    )
    
    
    (33,714
    )
    
    
    68,732Pro forma basic (loss)/earnings per share before cumulative effect of
change in accounting principle - $
    
    
    (1.70
    )
    
    
    (0.13
    )
    
    
    0.39Pro forma fully diluted (loss)/earnings per share before cumulative
effect of change in accounting principle - $
    
    

    (1.70
    )
    
    
    (0.13
    )
    
    
    0.38Net (loss)/income as reported
    
    
    (616,467
    )
    
    
    (31,403
    )
    
    
    86,562Plus: Share-based compensation expense recognized
    
    
    14,331
    
    
    
    7,135
    
    
    
    1,761Less: Pro forma share-based compensation expense
    
    
    (15,618
    )
    
    
    (9,446
    )
    
    
    (4,821
    )Pro forma net (loss)/income
    
    
    (617,754
    )
    
    
    (33,714
    )
    
    
    83,502Pro forma basic (loss)/earnings per share - $
    
    

    (1.70
    )
    
    
    (0.13
    )
    
    
    0.47Pro forma
fully diluted (loss)/earnings per share - $
    
    

    (1.70
    )
    
    
    (0.13
    )
    
    
    0.46
   F-18
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 2001Expected life (in years)
    
    
    6.0Risk free interest rate
    
    
    11.19
    %Volatility
    
    
    53.81
    %Dividend yield
    
    
    3.33
    %
  (t)
    
    REVENUE RECOGNITION: Product sales arising from gold sales is
recognized when the risks and rewards of ownership and title have passed
to the buyer under the terms of the applicable agreement and the pricing
is determinable. Sales revenue excludes value-added tax but includes the
net profit and losses arising from hedging transactions from matched gold
sales contracts, which are designated as normal sales contracts.
Revenues from silver and other by-products sales are credited to
production costs as a by-product credit.(u)
    
    INTEREST INCOME: Interest is recognized on a time proportion basis,
taking into account the principal outstanding and the effective rate over the
period to maturity, when it is determined that such income will accrue to the
Group.(v)
    
    DIVIDEND INCOMEis recognized when the shareholders right to receive
payment is established, recognized at the last date of registration.(w)
    
    DIVIDENDS DECLARED: Dividends proposed and the related transactions
thereon are recognized when declared by the the Board of directors. Dividends
paid therefore relate to those declared in the current fiscal year. Dividends
are payable in South African Rands.
  (x)
    
    EARNINGS PER SHARE: Earnings per share is based on net income divided
by the weighted average number of ordinary shares in issue during the year.
Diluted earnings per share is presented when the inclusion of potential ordinary
shares has a dilutive effect on earnings per share.(y)
    
    COMPARATIVES: The Company changed the presentation of its income
statement in the current year primarily to reflect only Product sales
as a component of Revenue, and to reflect Interest
received, Dividends received and Other (expenses)/income as components of
Other (Expenses)/Income. Therefore, where necessary, comparative
figures have been reclassified to conform with changes in presentation
in the current fiscal year.
 F-19
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (z)
    
    RECENT ACCOUNTING PRONOUNCEMENTS:
    F-20
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 3
    
    ACQUISITION AND DISPOSAL OF BUSINESSES AND INVESTMENTS
 (a) Acquisition and disposal of Highland Gold Limited (Highland Gold)
   (b) Acquisition and disposal of High River Gold Mines Limited (High River)
   (c) Acquisition of Abelle Limited (Abelle)
  F-21
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
    2004
    
    
    2003$000
    
    
    $000Total purchase price
    
    
    85,168
    
    
    
    105,433Plus: Fair value of liabilities assumed by HarmonyAccounts payable and accrued liabilities
    
    
    
    
    
    
    2,320Deferred financial liability
    
    
    
    
    
    
    19Provision for environmental rehabilitation
    
    
    
    
    
    
    1,335Deferred tax
    
    
    24,034
    
    
    
    43,308Less: Fair value of assets acquired by HarmonyCash and cash equivalents at acquisition
    
    
    
    
    
    
    (10,770
    )Inventories
    
    
    
    
    
    
    (1,224
    )Accounts receivable
    
    
    
    
    
    
    (534
    )Investments
    
    
    
    
    
    
    (632
    )Property, plant and equipment
    
    
    (80,115
    )
    
    
    (154,153
    )Minority interest
    
    
    (29,087
    )
    
    
    Minority interest in assets acquired and liabilities assumed
    
    
    
    
    
    
    14,898Residual purchase price allocated to goodwill
    
    
    
    
    
    
    
 (d) Acquisition and disposal of African Rainbow Minerals Limited (ARM)
(formerly Anglovaal Mining Limited) (Avmin)
    F-22
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
    (e) Acquisition of Avgold Limited (Avgold)
    F-23
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
  2004$000Shares issued
    
    
    977,515Direct costs of acquisition
    
    
    257Total purchase price
    
    
    977,772Plus: Fair value of liabilities assumed by HarmonyAccounts payable and accrued liabilities
    
    
    13,536Income and mining taxes
    
    
    7,003Deferred financial liability
    
    
    35,777Provision for environmental rehabilitation
    
    
    1,299Minority interest
    
    
    2,621Less: Fair value of assets acquired by HarmonyCash and cash equivalents at acquisition
    
    
    (183
    )Inventories
    
    
    (6,036
    )Accounts receivable
    
    
    (5,510
    )Investments
    
    
    (5,793
    )Property, plant and equipment
    
    
    (1,020,486
    )Residual purchase price allocated to goodwill
    
    
    
 F-24
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
     (f) Acquisition of African Rainbow Minerals Gold Limited (ARMgold)
   2004$000Shares issued
    
    
    696,775Direct costs of acquisition
    
    
    195Total purchase price
    
    
    696,970Plus: Fair value of liabilities assumed by HarmonyAccounts payable and accrued liabilities
    
    
    57,837Income and mining taxes
    
    
    50,517Long-term loans
    
    
    66,092Deferred tax
    
    
    206,951Provision for environmental rehabilitation
    
    
    30,236Provision for post retirement benefits
    
    
    154Less: Fair value of assets acquired by HarmonyCash and cash equivalents at acquisition
    
    
    (100,689
    )Inventories
    
    
    (4,106
    )Accounts receivable
    
    
    (31,266
    )Investments
    
    
    (171,588
    )Property, plant and equipment
    
    
    (754,795
    )Residual purchase price allocated to goodwill
    
    
    46,313
 F-25
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (g) Disposal of Harmony Gold (Canada) Incorporated (Bissett)
  (h) Disposal of interest in Bendigo Mining NL (Bendigo)
  (i) Acquisition and disposal of Gold Fields Limited (Gold Fields)
    F-26
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (j) Pro-forma information relating to Avgold, ARMgold and Abelle
   2004$000UnauditedRevenues
    
    
    1,479,265(Loss)/income before cumulative effect of change in accounting principles
    
    
    (46,454
    )Net (loss)/income
    
    
    (46,454
    )Basic
(loss)/earnings per share before cumulative effect of change in accounting principles - $
    
    
    (0.18
    )Fully
diluted (loss)/earnings per share before cumulative effect of change in accounting principles - $
    
    
    (0.18
    )Basic
(loss)/earnings per share - $
    
    
    (0.18
    )Fully
diluted (loss)/earnings per share - $
    
    
    (0.18
    )Average shares used in the computation of basic (loss)/earnings
    
    
    254,240,500Average shares used in the computation of fully diluted (loss)/earnings
    
    
    254,240,500
  4 CONSOLIDATION OF VARIABLE INTEREST ENTITIES
 Africa Vanguard Resources (Proprietary) Limited transaction
   F-27
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
  5 OTHER (EXPENSES)/INCOMENET
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Profit on sale of property, plant and equipment
    
    
    12,542
    
    
    
    22,303
    
    
    
    2,129Foreign exchange gains/(losses)
    
    
    452
    
    
    
    (4,279
    )
    
    
    (21,078
    )Non-mining bad debts
    
    
    (6,079
    )
    
    
    
    
    
    
    Other (expenditure)/income  net
    
    
    (10,576
    )
    
    
    (3,869
    )
    
    
    (2,163
    )(3,661
    )
    
    
    14,155
    
    
    
    (21,112
    )
 F-28
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 6 PRODUCTION COSTS
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Production
costs include mine production, transport and refinery costs, general and administrative costs,
movement in inventories and ore stockpiles as well as transfers to and from deferred stripping. Ongoing employee
termination cost is included, however employee termination costs associated with major restructuring and shaft
closures are excluded. These costs, analyzed by nature, consist of the following:Labor costs, including contractors
    
    
    768,053
    
    
    
    673,483
    
    
    
    314,277Stores and materials
    
    
    254,124
    
    
    
    255,121
    
    
    
    145,434Water and electricity
    
    
    139,974
    
    
    
    124,038
    
    
    
    69,634Hospital costs
    
    
    23,838
    
    
    
    16,960
    
    
    
    7,153Changes in inventory
    
    
    (4,003
    )
    
    
    17,656
    
    
    
    (13,265
    )Other
    
    
    35,576
    
    
    
    85,225
    
    
    
    77,9101,217,562
    
    
    
    1,172,483
    
    
    
    601,143
 7 IMPAIRMENT OF ASSETS
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000South African operations:Free State operations
    
    
    42,018
    
    
    
    
    
    
    
    Evander operations
    
    
    15,324
    
    
    
    
    
    
    
    Kalgold operations
    
    
    12,441
    
    
    
    
    
    
    
    Freegold operations
    
    
    52,557
    
    
    
    
    
    
    
    ARMgold operations
    
    
    479
    
    
    
    
    
    
    
    Australian operations
    
    
    120,305
    
    
    
    3,145
    
    
    
    117,594243,124
    
    
    
    3,145
    
    
    
    117,594
   F-29
      Notes to the Consolidated Financial Statements
For the years ended June 30
   8     EMPLOYMENT TERMINATION AND RESTRUCTURING COSTS
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Free State
    
    
    20,909
    
    
    
    9,083
    
    
    
    1,574Evander
    
    
    4,005
    
    
    
    3,841
    
    
    
    1,212Kalgold
    
    
    143
    
    
    
    
    
    
    
    Randfontein and Elandskraal
    
    
    16,721
    
    
    
    8,245
    
    
    
    1,716Australian operations
    
    
    
    
    
    
    
    
    
    
    596Freegold
    
    
    28,076
    
    
    
    6,756
    
    
    
    ARMgold (Welkom and Orkney)
    
    
    1,872
    
    
    
    3,743
    
    
    
    Avgold
    
    
    1,489
    
    
    
    
    
    
    
    73,215
    
    
    
    31,668
    
    
    
    5,098
    F-30
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
  2005
    
    
    2004$000
    
    
    $000Balance at July 1, 2004 and 2003
    
    
    26,368
    
    
    
    Employment termination costs paid
    
    
    (57,244
    )
    
    
    Provision for employment termination costs
    
    
    66,174
    
    
    
    23,847Foreign currency translation adjustment
    
    
    (2,388
    )
    
    
    2,521Balance at June 30, 2005 and 2004
    
    
    32,910
    
    
    
    26,368
 9    (LOSS)/PROFIT ON SALE OF LISTED INVESTMENTS
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Profit on sale of investment in Gindalbie Gold NL
    
    
    9
    
    
    
    
    
    
    
    Loss on sale of investment in ARM Limited
    
    
    (38,242
    )
    
    
    
    
    
    
    Profit on sale of investment in Bendigo NL
    
    
    4,931
    
    
    
    
    
    
    
    Loss on sale of investment in Gold Fields Limited
    
    
    (60,168
    )
    
    
    
    
    
    
    Profit on sale of investment in Legend Mining Limited
    
    
    
    
    
    
    1,755
    
    
    
    Profit on sale of investment in Midas Resources Limited
    
    
    
    
    
    
    12
    
    
    
    Profit on sale of investment in High River Gold Mines Limited
    
    
    
    
    
    
    3,143
    
    
    
    Profit on sale of investment in Placer Dome Pacific Limited
    
    
    
    
    
    
    
    
    
    
    59,243(93,470
    )
    
    
    4,910
    
    
    
    59,243
         F-31
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 10
    
    IMPAIRMENT OF LISTED INVESTMENT
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Impairment of shares in listed companies
    
    
    (63,234
    )
    
    
    
    
    
    
    
  11
    
    PROFIT ON SALE AND LOSS ON DILUTION OF INVESTMENT IN ASSOCIATES  NET
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Profit on sale of investment in Highland Gold Limited
    
    
    
    
    
    
    77,596
    
    
    
    Loss on dilution of investment in African Rainbow Minerals Limited
    
    
    
    
    
    
    (12,499
    )
    
    
    
    
    
    
    65,097
    
    
    
    
   12
    
    (LOSS)/PROFIT ON SALE OF SUBSIDIARIES
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Profit on sale of investment in NACS
    
    
    128
    
    
    
    
    
    
    
    Loss on sale of investment in Future
    
    
    (1,367
    )
    
    
    
    
    
    
    Profit on sale of investment in Ubuntu
    
    
    1,125
    
    
    
    
    
    
    
    Profit on sale of investment in Bissett
    
    
    
    
    
    
    115
    
    
    
    (114
    )
    
    
    115
    
    
    
    
 F-32
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
     13
    
    TAXATION
  2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Current income and mining taxes
    
    
    (12,255
    )
    
    
    (5,820
    )
    
    
    (29,797
    )Deferred income and mining taxes
    
    
    112,948
    
    
    
    47,704
    
    
    
    4,542Total income and mining taxation benefit/(expense)
    
    
    100,693
    
    
    
    41,884
    
    
    
    (25,255
    )
  2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000South Africa
    
    
    (614,592
    )
    
    
    (38,159
    )
    
    
    138,259Foreign
    
    
    (102,568
    )
    
    
    (36,409
    )
    
    
    (40,744
    )Total
    
    
    (717,160
    )
    
    
    (74,568
    )
    
    
    97,515
  F-33
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Income and mining tax benefit/(expense) on (loss)/income before
tax, minority interests and cumulative effect of changes in
accounting principles at the maximum statutory mining tax rate
    
    
    315,417
    
    
    
    33,712
    
    
    
    (36,807
    )Valuation allowance raised against deferred tax assets
    
    
    
    
    
    
    
    
    
    
    1,736Non-taxable income / additional deductions
    
    
    (41,167
    )
    
    
    18,063
    
    
    
    15,548Difference between estimated effective mining tax rate and
maximum mining statutory rate on timing differences
    
    
    18,602
    
    
    
    (2,467
    )
    
    
    (13,870
    )Difference between South African mining formula tax rate and
maximum mining statutory rate on mining income
    
    
    (108,338
    )
    
    
    9,861
    
    
    
    10,306Difference between non-mining tax rate and maximum mining
statutory rate on non-mining income
    
    
    (12,552
    )
    
    
    262
    
    
    
    6,590Change in estimated effective mining tax rate on deferred tax
    
    
    (71,269
    )
    
    
    (17,547
    )
    
    
    (8,758
    )Income and mining tax benefit/(expense)
    
    
    100,693
    
    
    
    41,884
    
    
    
    (25,255
    )Effective income and mining tax rate
    
    
    14
    %
    
    
    56
    %
    
    
    26
    %
  2005
    
    
    2004$000
    
    
    $000Deferred income and mining tax assets:Deferred financial liability
    
    
    11,346
    
    
    
    12,834Unredeemed capital expenditure
    
    
    90,482
    
    
    
    60,227Provisions, including rehabilitation accruals
    
    
    19,515
    
    
    
    17,956Tax losses
    
    
    52,707
    
    
    
    16,389Other
    
    
    173
    
    
    
    174,223
    
    
    
    107,406Valuation allowance for deferred tax assets
    
    
    
    
    
    
    Total deferred income and mining tax assets
    
    
    174,223
    
    
    
    107,406Deferred income and mining tax liabilities:Mining assets
    
    
    (543,679
    )
    
    
    (588,675
    )Product inventory not taxed
    
    
    (2,323
    )
    
    
    (5,794
    )Other
    
    
    
    
    
    
    (617
    )Total deferred income and mining tax liabilities
    
    
    (546,002
    )
    
    
    (595,086
    )Net deferred income and mining tax liabilities
    
    
    (371,779
    )
    
    
    (487,680
    )Net deferred income and mining tax liabilities comprise of:Current deferred income and mining tax assets
    
    
    138,519
    
    
    
    71,132Non-current deferred income and mining tax liabilities
    
    
    (510,298
    )
    
    
    (558,812
    )Net deferred income and mining tax liabilities
    
    
    (371,779
    )
    
    
    (487,680
    )
  F-34
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
  14
    
    EARNINGS PER SHARE
 For the year ended June 30, 2005Loss
    
    
    Shares
    
    
    Per-share(Numerator)
    
    
    (Denominator)
    
    
    amount$000
    
    
    
    
    
    
    ($)Basic loss per shareShares outstanding July 1, 2004
    
    
    
    
    
    
    321,424,077
    
    
    
    Weighted average number of ordinary shares issued
during the year
    
    
    
    
    
    
    41,074,935
    
    
    
    Loss available to common shareholders
    
    
    (616,467
    )
    
    
    362,499,012
    
    
    
    (1.70
    )Effect of dilutive securitiesShare options issued to employees
    
    
    
    
    
    
    
    
    
    
    Diluted loss per share
    
    
    (616,467
    )
    
    
    362,499,012
    
    
    
    (1.70
    )
  For the year ended June 30, 2004Loss
    
    
    Shares
    
    
    Per-share(Numerator)
    
    
    (Denominator)
    
    
    amount$000
    
    
    
    
    
    
    ($)Basic loss per shareShares outstanding July 1, 2003
    
    
    
    
    
    
    185,536,615
    
    
    
    Weighted average number of ordinary shares
issued during the year
    
    
    
    
    
    
    68,703,885
    
    
    
    Loss available to common shareholders
    
    
    (31,403
    )
    
    
    254,240,500
    
    
    
    (0.12
    )Effect of dilutive securitiesShare options issued to employees
    
    
    
    
    
    
    
    
    
    
    Diluted loss per share
    
    
    (31,403
    )
    
    
    254,240,500
    
    
    
    (0.12
    )
  For the year ended June 30, 2003Income
    
    
    Shares
    
    
    Per-share(Numerator)
    
    
    (Denominator)
    
    
    amount$000
    
    
    
    
    
    
    ($)Basic earnings per share before cumulative effect of change in
accounting policyShares outstanding July 1, 2002
    
    
    
    
    
    
    169,929,849
    
    
    
    Weighted average number of ordinary shares issued during the year
    
    
    
    
    
    
    8,024,396
    
    
    
    Income available to common shareholders
    
    
    71,792
    
    
    
    177,954,245
    
    
    
    0.40Effect of dilutive securitiesShare options issued to employees
    
    
    
    
    
    
    3,197,170
    
    
    
    Warrants issued
    
    
    
    
    
    
    1,570,214
    
    
    
    Diluted
earnings per share before cumulative effect of change in accounting
policy
    
    
    71,792
    
    
    
    182,721,629
    
    
    
    0.39
 F-35
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 For the year ended June 30, 2003Income
    
    
    Shares
    
    
    Per-share(Numerator)
    
    
    (Denominator)
    
    
    amount$000
    
    
    
    
    
    
    ($)Basic earnings per shareShares outstanding July 1, 2002
    
    
    
    
    
    
    169,929,849
    
    
    
    Weighted average number of ordinary shares issued during the year
    
    
    
    
    
    
    8,024,396
    
    
    
    Income available to common shareholders
    
    
    86,562
    
    
    
    177,954,245
    
    
    
    0.49Effect of dilutive securitiesShare options issued to employees
    
    
    
    
    
    
    3,197,170
    
    
    
    Warrants issued
    
    
    
    
    
    
    1,570,214
    
    
    
    Diluted earnings per share
    
    
    86,562
    
    
    
    182,721,629
    
    
    
    0.47
 15
    
    RECEIVABLES
 2005
    
    
    2004$000
    
    
    $000Value added tax
    
    
    15,009
    
    
    
    19,596Trade receivables  net of allowance for doubtful accounts of $1.1 million
and $2.9 million in 2005 and 2004, respectively
    
    
    9,779
    
    
    
    25,108Gold receivables
    
    
    43,133
    
    
    
    68,835Prepayments
    
    
    3,688
    
    
    
    4,779Interest and other
    
    
    23,121
    
    
    
    19,80094,730
    
    
    
    138,118
 16
    
    INVENTORIES
 2005
    
    
    2004$000
    
    
    $000Gold in-process
    
    
    49,937
    
    
    
    53,244Consumable stores
    
    
    36,184
    
    
    
    31,41586,121
    
    
    
    84,659
 17
    
    PROPERTY, PLANT AND EQUIPMENT
 2005
    
    
    2004$000
    
    
    $000Mining properties, mine development costs and mine plant facilities  cost
    
    
    4,641,871
    
    
    
    4,764,512Other non-mining assets  cost
    
    
    53,321
    
    
    
    53,356Accumulated depreciation and amortization
    
    
    (1,424,173
    )
    
    
    (1,181,095
    )3,271,019
    
    
    
    3,636,773
   F-36
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 18
    
    OTHER ASSETS
 2005
    
    
    2004$000
    
    
    $000Mineral subscriptions, participation rights and slimes dams
    
    
    7,084
    
    
    
    7,584Deferred stripping
    
    
    1,511
    
    
    
    16,157Bond issue costs, net of amortization
    
    
    5,733
    
    
    
    8,09714,328
    
    
    
    31,838Deferred stripping costs are made up as follows:Opening balance
    
    
    16,157
    
    
    
    9,622(Transfers
from)/additions to assets during the period
    
    
    (4,149
    )
    
    
    4,119Impairment of assets during the period
    
    
    (11,213
    )
    
    
    Foreign currency translation differences
    
    
    716
    
    
    
    2,416Closing balance
    
    
    1,511
    
    
    
    16,157
   19
    
    GOODWILL
  20
    
    RESTRICTED CASH
 2005
    
    
    2004$000
    
    
    $000Bissett proceeds held in trust
    
    
    143
    
    
    
    1,679Australian dissentient shareholders funds
    
    
    1,334
    
    
    
    5,192Security deposits
    
    
    6,321
    
    
    
    3,0517,798
    
    
    
    9,922
    F-37
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 21
    
    INVESTMENTS
 2005
    
    
    2004$000
    
    
    $000Listed investmentsInvestments in listed shares (a)
    
    
    453,712
    
    
    
    234,991Other investmentsUnlisted investments and loans (b)
    
    
    13,109
    
    
    
    11,013Amounts contributed to environmental trust funds (c)
    
    
    175,695
    
    
    
    173,374188,804
    
    
    
    184,387Total non-current investments
    
    
    642,516
    
    
    
    419,378
 
 
     F-38
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
   2005
    
    
    2004$000
    
    
    $000Environmental trust funds
    
    
    13
    
    
    
    1,031ARM
    
    
    
    
    
    
    (58,804
    )San Gold
    
    
    153
    
    
    
    (900
    )Gold City
    
    
    (649
    )
    
    
    (610
    )Gold Fields
    
    
    (20,748
    )
    
    
    (21,231
    )
    
    
    (59,283
    )
 (b)
    
    Unlisted investments comprise of various industry related investments and loans, which
have been recorded at cost. The directors of the Company perform independent valuations of the
investments on an annual basis to ensure that no permanent diminution in the value of the
investments has occurred. No dividends were received from these investments in the 2005, 2004 and
2003 fiscal years.(c)
    
    The environmental trust funds are irrevocable trusts under the Groups control. The cash
in the trusts are invested primarily in interest bearing short-term and other investments and
approximate their fair value.
 22 INVESTMENT IN ASSOCIATES
  Market value
    
    
    Market valueInvestment
    
    Description of business
    
    
    Ownership %
    
    
    2005
    
    
    20042005
    
    
    2004
    
    
    $000
    
    
    $000Bendigo Mining NL
    
    Gold exploration
    
    
    
    
    
    
    31.6
    %
    
    
    
    
    
    
    19,908
  F-39
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
  2005
    
    
    2004$000
    
    
    $000Opening carrying amount
    
    
    19,908
    
    
    
    63,782Shares at cost
    
    
    
    
    
    
    84,491Net share of results of associates
    
    
    
    
    
    
    2,020Dividend received
    
    
    
    
    
    
    338Disposal of associate
    
    
    
    
    
    
    (42,955
    )Associate now consolidated
    
    
    
    
    
    
    (95,137
    )Impairment of investment
    
    
    
    
    
    
    (1,956
    )Associate becoming a listed investment on dilution
    
    
    (20,303
    )
    
    
    Foreign currency translation differences
    
    
    395
    
    
    
    9,325Closing carrying amount
    
    
    
    
    
    
    19,908
   23 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
 2005
    
    
    2004$000
    
    
    $000Trade payables
    
    
    49,664
    
    
    
    70,121Short term portion of long term loans
    
    
    200,451
    
    
    
    93,029Short term borrowings
    
    
    2,726
    
    
    
    12,870Payroll and leave liabilities
    
    
    62,814
    
    
    
    106,001Employment termination costs
    
    
    32,910
    
    
    
    26,368Accrued liabilities
    
    
    45,056
    
    
    
    64,442Other liabilities
    
    
    33,923
    
    
    
    10,027427,544
    
    
    
    382,858
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 24 LONG TERM LOANS
 2005
    
    
    2004$000
    
    
    $000UncollateralizedSenior uncollaterized fixed rate bonds (a)
    
    
    179,991
    
    
    
    192,694Fair value adjustment of cash flow hedge
    
    
    (3,577
    )
    
    
    (2,768
    )Less : amortized discount
    
    
    (245
    )
    
    
    (524
    )176,169
    
    
    
    189,402Less : short term portion
    
    
    (176,169
    )
    
    
    
    
    
    
    189,402Convertible uncollaterized fixed rate bonds (b)
    
    
    254,987
    
    
    
    272,983Africa Vanguard Resources (Proprietary) Limited (c)
    
    
    4,800
    
    
    
    2,149Total uncollateralized long term loans
    
    
    259,787
    
    
    
    464,534CollateralizedBAE Systems Plc (d)
    
    
    
    
    
    
    9,001Less : short term portion
    
    
    
    
    
    
    (9,001
    )
    
    
    
    Nedbank Limited (e)
    
    
    20,970
    
    
    
    20,585AngloGold Limited (f)
    
    
    
    
    
    
    59,769Less: short term portion
    
    
    
    
    
    
    (59,769
    )
    
    
    
    Gold Fields Limited (g)
    
    
    822
    
    
    
    1,011Less : short term portion
    
    
    (308
    )
    
    
    (443
    )514
    
    
    
    568BOE Bank Limited (h)
    
    
    23,864
    
    
    
    47,325Less : short term portion
    
    
    (23,864
    )
    
    
    (23,817
    )
    
    
    
    23,508Nedbank Limited (i)
    
    
    54,542
    
    
    
    Nedbank Limited (j)
    
    
    73,494
    
    
    
    Auriel Alloys (k)
    
    
    248
    
    
    
    Less : short term portion
    
    
    (69
    )
    
    
    179
    
    
    
    Total collateralized long term loans
    
    
    149,699
    
    
    
    44,661Total long term loans
    
    
    409,486
    
    
    
    509,195
 F-41
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (a)
    
    On June 16, 2001, Harmony launched and priced an issue of South African Rand denominated
senior uncollateralized fixed rate bonds in an aggregate principal amount of R1,200 million ($115.5
million), with semi-annual interest payable at a rate of 13% per annum. These bonds will be
repayable on June 14, 2006, subject to early redemption at Harmonys option. The bonds are listed
on the Bond Exchange of South Africa. The bonds were issued to settle existing debt and fund the
purchase of Elandskraal and New Hampton. As long as the bonds are outstanding, Harmony will not
permit encumbrances on its present or future assets or revenues to secure indebtedness for borrowed
money, without collateralized the outstanding bonds equally and ratably with such indebtedness,
except for certain specified permitted encumbrances. Issuance costs of $1.9 million were incurred
and capitalized and are being amortized over the life of the bonds. Included in the amortization
charge in the income statement is $0.6 million (2004: $0.7 million) (2003: $0.5 million) for
amortization of the bond issue costs. On July 6, 2005 a total of
$45.0 million of the bonds notional value was repurchased at a cost of some $47.1
million. This represents 23.5% of the total issue due for redemption in June 2006. See note 35(a).(b)
    
    On May 21, 2004, Harmony issued an international unsecured fixed rate convertible bond in
an aggregate principal amount of R1,700 million ($252 million). Interest at a rate of 4.875% per
annum is payable semi-annually in arrears on May 21 and November 21 of each year, commencing
November 21, 2004. The bonds mature 5 years from the issue
date at their nominal value of R1,700 million unless converted into the companys ordinary shares. The bonds are convertible at the
option of the bondholders at any time on or after July 1, 2004 and up to and including May 15,
2009, unless previously redeemed, converted or purchased and cancelled, into fully paid ordinary
shares, at nominal value Rand 0.50 per share. The number of ordinary shares to be issued at such a
conversion shall be determined by dividing the principal amount of each bond by the conversion
price in effect on the elevant conversion date. The bonds are listed on the London Stock Exchange
for Bonds. The terms and conditions of the bonds prohibit Harmony and its material subsidiaries
from creating any encumbrance or security interest over any of its assets to secure any relevant
debt (or any guarantee or indemnity in respect of any relevant debt) without according the
same security to the bondholders or without obtaining the prior approval of the bondholders.
Included in the amortisation charge as per the income statement is $1.4 million (2004: $0.1
million) (2003: $nil million) for amortization of the bond issue costs.(c)
    
    During the year Africa Vanguard borrowed an additional R18 million ($2.8 million) (2004:
R14 million ($2.0 million)) from its holding company Africa Vanguard Resources to service working
capital commitments. The loan is uncollateralized and interest free, with no fixed terms of
repayment.(d)
    
    The loan from BAE Systems Plc was a US dollar denominated term loan of $9.0 million for
financing the design, development and construction of a facility for the manufacture and sale of
value added gold products at Harmonys premises in the Free State. The loan was collateralized by a
notarial covering bond over certain gold proceeds and other assets and was repaid in full on April
2, 2005. The loan accrued interest at LIBOR plus 2% and interest was repayable on a quarterly
basis.(e)
    
    On July 30, 2003, Africa Vanguard Resources (Doornkop) (Proprietary) Limited (AVR) entered
into a term loan facility of R116 million ($16 million) with Nedbank Limited for the purpose of
partially funding AVRs purchase of an undivided 26% share of the Mining titles, to be contributed
to the Doornkop joint venture with Randfontein. Interest at a fixed rate equal to JIBAR plus the
applicable margin plus stamp duties and holding costs shall be repayable to the extent that the
borrower received profit participation interest for the interest periods. Unpaid interest shall be
accrued and repaid with the loan amount. The loan amount and any interest accrued is repayable on
July 30, 2008. Interest capitalized during the year ended June 30, 2005 amounted to $1.9 million
(2004: $1.7 million and 2003: $nil).
 F-42
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (f)
    
    On December 24, 2001 FreeGold entered into an agreement with AngloGold Limited to purchase
its FreeGold assets for R2,881 million ($298 million). R1,800 million ($169 million) was payable on
January 1, 2002 at the call rate from this date until the 10th business day after the date of
fulfilment of the last of the conditions precedent. R400 million ($38 million) was fully repaid on
December 30, 2004 at no interest charge. The balance of the consideration was paid on June 23,
2003, five business days before AngloGold was obliged to pay recoupment tax, capital gains tax and
any other income tax on the disposal of the assets, at no interest charge.(g)
    
    On July 1, 2002 Freegold entered into an agreement with St Helena Gold Mines Limited, a
fully owned subsidiary of Gold Fields Limited, to purchase its St Helena assets for R129 million
($12.8 million). R120 million ($11.9 million) was payable on October 29, 2002, being the effective
date after the fulfilment of all the conditions precedent. The balance of R9 million ($0.9 million)
is payable by way of a 1 % royalty on turnover, monthly in arrears, for a period of 48 months,
commencing on the 10th of the month following the effective date.(h)
    
    On April 5, 2002, ARMgold entered into a term loan facility of R500 million ($45.3
million) with BOE Bank Limited for the purpose of partially funding ARMgolds acquisition of shares
in Freegold and loans made by ARMgold to Freegold in connection with the acquisition of mining
assets from AngloGold Limited. The facility is collateralized by a pledge of the following:
       (i)
    
    On April 15, 2005 the ARM Trust entered into a term loan facility of R356 million ($56.7
million) with Nedbank Limited for the purpose of funding the ARM Trusts partial acquisition of the
shares, the Company held in ARM (Refer note 4). The loan bears interest, compounded monthly, at a
fixed rate of 10.02%. Interest accrued during the year ended June 30, 2005 amounted to $1.3
million. The loan is repayable on the 5th anniversary of the advance date.(j)
    
    On April 15, 2005 the ARM Trust entered into a second term loan facility of R474 million
($75.4 million) with Nedbank Limited for the purpose of funding the balance of the ARM Trusts
acquisition of the shares, the Company held in ARM (Refer note 4). The loan bears interest,
compounded monthly, at a fixed rate of 9.52%. Interest and additional charges accrued during the
year ended June 30, 2005 amounted to $1.4 million and $1.1 million, respectively. The loan is
repayable on the 5th anniversary of the advance date.(k)
    
    During December 2003 Musuku Beneficiation Systems (Proprietary) Limited, a wholly owned
subsidiary of the Company, entered into a long term loan facility of R2 million ($0.3 million) with
Auriel Alloys for the purpose of financing the acquisition of Dental Alloy equipment. The loan
bears interest at 11% and is payable by way of 60 instalments of R50,000 each.
  F-43
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 2005
    
    
    2004$000
    
    
    $000Current
    
    
    200,451
    
    
    
    97,940Between 1 to 2 years
    
    
    693
    
    
    
    208,397Between 2 to 5 years
    
    
    403,993
    
    
    
    293,640Over 5 years
    
    
    4,800
    
    
    
    2,247Total borrowings
    
    
    609,937
    
    
    
    602,224
 25
    
    DEFERRED FINANCIAL LIABILITY
 2005
    
    
    2004$000
    
    
    $000Mark-to-market of financial instruments at year end
    
    
    57,863
    
    
    
    91,513ARM
Empowerment Trust
    
    
    18,857
    
    
    
    76,720
    
    
    
    91,513
 During the fiscal year ended June 30, 2005 Harmony closed out the remaining gold lease rate swaps which were
inherited through the acquisition of New Hampton Gold and Hill 50. During the previous fiscal year, Harmony
closed out 500,000oz of the New Hampton and Hill 50 hedge books at a cost of R105 million (US$15 million).
These close outs are in accordance with Harmonys strategy of being unhedged.All forward-pricing commitments and forward exchange contracts do not meet the criteria to qualify for hedge
accounting and the mark-to-market movements are reflected in the income statement.The liability of $18.9 million represents the fair value of the net increase in the ARM Empowerment Trust.
See note 3(d). Changes in the fair value of this derivative financial liability have been accounted for in
the consolidated income statements.Refer to note 32 for more detail on the outstanding financial instruments.26
    
    PROVISION FOR ENVIRONMENTAL REHABILITATIONThe Companys mining and exploration activities are subject to extensive environmental laws and regulations.
These laws and regulations are continually changing and are generally becoming more restrictive. The Company
has made, and expects to make in the future, expenditures to comply with such laws and regulations, but
cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based
principally on legal and regulatory requirements. The following is a reconciliation of the total liability
for environmental rehabilitation:
 2005
    
    
    2004$000
    
    
    $000Balance as at July 1, 2004 and 2003
    
    
    125,917
    
    
    
    62,977Additions to liabilities due to acquisitions
    
    
    
    
    
    
    66,013Change in estimates due to revisions in timing or amount of cash flows
    
    
    (3,891
    )
    
    
    (13,417
    )Accretion expenses
    
    
    4,053
    
    
    
    8,670Foreign currency translation adjustment
    
    
    (5,629
    )
    
    
    1,674Balance as at June 30, 2005 and 2004
    
    
    120,450
    
    
    
    125,917
 The Company intends to finance the ultimate rehabilitation costs of the South African operations from the
money invested with the environmental trust funds, ongoing contributions, as well as the proceeds on sale of
assets and gold from plant clean-up at the time of mine closure. The Company will finance the ultimate
rehabilitation costs of the non-South African operations from funds to be set aside for that purpose.
 F-44
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 27
    
    PROVISION FOR SOCIAL PLAN
 2005
    
    
    2004$000
    
    
    $000Opening balance
    
    
    1,958
    
    
    
    Recognition of present value of future liability
    
    
    
    
    
    
    1,772Charge to income statement
    
    
    299
    
    
    
    Foreign currency translation adjustment
    
    
    (148
    )
    
    
    186Closing balance
    
    
    2,109
    
    
    
    1,958
 The company has undertaken to donate R50 million ($8.0 million) over a period of 10 years
to The Harmony Gold Mining Company Social Plan Trust in terms of an agreement signed on
November 3, 2003. R18.5 million ($2.7 million) was donated during the 2004 fiscal year and
the balance will be donated in instalments of R3.5 million ($0.6 million) annually over the
next 9 years. The purpose of the trust is to fund the social plan to reduce the negative
effects of retructuring on the companys workforce, to put measures in place to ensure that
the technical and life skills of the companys workforce are developed and to develop the
companys workforce in such a manner to avoid or minimize job losses and a decline in
employment through turnaround or redeployment strategies.28
    
    PROVISION FOR POST-RETIREMENT BENEFITSMost of the supervisory and managerial workers in South Africa participate in the Minemed
defined contribution medical scheme, as well as other medical schemes. The Group
contributes to these schemes on behalf of current employees and retired employees who
retired prior to December 31, 1996 (the Minemed scheme). The Groups contributions to
these schemes on behalf of retired and current employees amounted to $10.0 million, $6.6
million and $4.4 million for 2005, 2004 and 2003
respectively.With the exception of some Freegold employees, included from date of acquisition, no
post-retirement benefits are available to other workers. No liability exists for employees
who were members of these schemes who retired after the date noted above. The medical
schemes pay certain medical expenses for both current and retired employees and their
dependents. Current and retired employees pay an annual fixed contribution to these
schemes.An updated actuarial valuation was carried out during the 2005 fiscal year on the Minemed
medical scheme following the last actuarial valuation in the 2002
fiscal year.Assumptions used to determine the liability relating to the Minemed medical scheme
included, a discount rate of 9%, no increases in employer subsidies (in terms of the
agreement) and mortality rates according to the SA a mf tables, which are generally
used in South Africa to represent the mortality of CAWMs, and a medical inflation rate of
6.34%.The company operates a post retirement medical aid benefit scheme. The amounts were based
on an actuarial valuation conducted during the year ended 30 June 2005 and the liability
was valued using the projected unit credit method. The next actuarial valuation will be
performed on 30 June 2006.The movements in the present value of the unfunded obligations of the accrued
post-retirement health care costs recognised in the balance sheet are as follows:
 F-45
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 2005
    
    
    2004$000
    
    
    $000Opening balance as previously stated
    
    
    1,584
    
    
    
    1,017Acquired through the purchase of subsidiary
    
    
    
    
    
    
    154Additional provision for the current employees
    
    
    6,470
    
    
    
    Contributions paid
    
    
    (971
    )
    
    
    Other expenses included in staff costsCurrent service cost
    
    
    971
    
    
    
    Interest cost
    
    
    3,235
    
    
    
    Net actuarial gains recognised during the year
    
    
    3,074
    
    
    
    Foreign currency translation adjustments
    
    
    (1,087
    )
    
    
    413Balance at the end of the year
    
    
    13,276
    
    
    
    1,584
  Discount rate
    
    
    9
    %
    
    
    4%-12
    %Healthcare inflation rate
    
    
    6.34
    %
    
    
    0%-7
    %Normal retirement age
    
    
    60
    
    
    
    60
  29
    COMMITMENTS AND CONTINGENCIES
 2005
    
    
    2004$000
    
    
    $000Capital expenditure commitmentsContracts for capital expenditure
    
    
    4,226
    
    
    
    12,442Authorized by the directors but not contracted for
    
    
    274,318
    
    
    
    670,878278,544
    
    
    
    683,320
  Contingent liabilitiesGuarantees and suretyships
    
    
    2,666
    
    
    
    3,089Environmental guarantees
    
    
    20,107
    
    
    
    15,80022,773
    
    
    
    18,889
 F-46
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
  Occupational healthcare services are made available by Harmony to employees from its existing facilities. There is a risk that the cost of
providing such services could increase in the future depending upon changes in the nature of underlying legislation and the profile of
employees. This increased cost, should it transpire, is currently indeterminate. The group is monitoring developments in this regard.Action was instituted by 10 Plaintiffs employed at Elandsrand Mine in December 2004. The First Defendant in these matters is Anglo
American Corporation of South Africa Limited (Anglo American), with Harmony cited as the Second Defendant. These 10 claims constitute
test cases in relation to claims for damages for silicosis allegedly contracted by the Plaintiffs over their period of employment with
Anglo American and Harmony at Elandsrand. The Board of directors do not believe that the present 10 test cases present a significant risk
and the probabilities vastly favour a dismissal of the actions. At this stage, any potential liability can not be reasonably quantified.30
    
    DISCLOSURES REGARDING FAIR VALUE OF FINANCIAL INSTRUMENTSCash and equivalents
The carrying amount approximates fair value as a result of the short-term maturity of these instruments.Investments
It is not practical to determine the fair value of unlisted equity investments. These investments are carried at their original cost in
the balance sheet. The fair value of listed equity investments is determined with reference to their market value at the end of each
reporting period.Receivables, acounts payable and accrued liabilities
The carrying amount of receivables, accounts payable and accrued liabilities approximates fair value as a result of the short-term
maturity of these items.Long-term and short-term debt
The fair value of long-term debt is estimated based on the effective interest rate and expected future cash flows. The fair value of
short-term debt approximates the carrying value as a result of the short-term maturity periods.Interest rate swaps
The fair value of interest rate swaps is determined by reference to quoted market prices for similar instruments.The fair values of financial instruments were as follows:
 2005Carrying value
    
    
    Fair Value$000
    
    
    $000Cash and cash equivalents
    
    
    266,746
    
    
    
    266,746Receivables
    
    
    94,730
    
    
    
    94,730Investments in listed securities
    
    
    453,712
    
    
    
    453,712Investments in unlisted securities
    
    
    13,109
    
    
    
    13,109Accounts payable and accrued liabilities
    
    
    427,544
    
    
    
    427,544Long and short-term debt
    
    
    609,937
    
    
    
    609,937Interest rate swaps
    
    
    3,577
    
    
    
    3,577
 F-47
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 2004Carrying value
    
    
    Fair Value$000
    
    
    $000Cash and cash equivalents
    
    
    217,022
    
    
    
    217,022Receivables
    
    
    138,118
    
    
    
    138,118Investments in listed securities
    
    
    234,991
    
    
    
    234,991Investments in unlisted securities
    
    
    11,014
    
    
    
    11,014Accounts payable and accrued liabilities
    
    
    382,858
    
    
    
    382,858Long and short-term debt
    
    
    602,224
    
    
    
    602,224Interest rate swaps
    
    
    2,768
    
    
    
    2,768
 31
    
    EMPLOYEE BENEFIT PLANS(a)
    
    PENSION AND PROVIDENT FUNDS:The Group contributes to several defined contribution pension and
provident funds governed by the Pension Funds Act, 1946 for the employees of its South African
subsidiaries. The pension funds are multi-employer industry plans. The Groups liability is
limited to its annually determined contributions.The provident funds are funded on the money accumulative basis with the members and
employers contributions having been fixed in the constitution of the funds.The Australian group companies make contributions to each employees Superannuation (pension)
funds in accordance with the Superannuation Guarantee Scheme (SGS). The SGS is a Federal
Government initiative enforced by law which compels employers to make regular payments to
regulated funds providing for each employee on their retirement. The Superannuation Guarantee
Contributions were set at a minimum of 9% of gross salary and wages for the 2005 fiscal year
(2004: 9% and 2003: 9%).Substantially all the Groups employees are covered by the above mentioned retirement benefit
plans. Funds contributed by the Group for fiscal 2005 amounted to $56.0 million (2004 : $43.4
million and 2003: $20.5 million).
 F-48
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 (b)
    
    SHARE OPTION SCHEMES(i)
    
    HARMONY SHARE OPTION SCHEMES:The Company
currently has three employee share option schemes,
being the Harmony (1994) Share Option Scheme
(HSOS 1994 Scheme), the Harmony (2001) Share
Option Scheme (HSOS 2001 Scheme) and the Harmony
(2003) Share Option Scheme (HSOS 2003 Scheme).
Pursuant to the rules of the HSOS 1994 Scheme, the
HSOS 2001 Scheme and the HSOS 2003 Scheme certain
qualifying employees may be granted options to
purchase shares in the Companys authorized but
unissued ordinary shares. The HSOS 2001 Scheme was
established following approval by the Companys
shareholders during fiscal 2002. The HSOS 2001
Scheme came into effect on November 16, 2001 and
the HSOS 2003 Scheme came into effect on November
12, 2003, however, options previously issued under
the HSOS 1994 Scheme remain in force. The terms of
the HSOS 2001 Scheme and the HSOS 2003 Scheme are
substantially equivalent to the terms of the HSOS
1994 Scheme, except that the maximum number of
share options that may be granted under the HSOS2001Scheme is a fixed amount (8,000,000), rather
than a percentage of share capital. Options
granted under the HSOS 1994 Scheme are not counted
against this maximum. Of the 8,000,000 ordinary shares under the specific authority of the
directors in terms of the HSOS 2001 Scheme,
7,572,500 shares have been offered to participants
leaving a balance of 427,500 to be offered to
eligible employees. Upon the date of adoption of
the HSOS 2001 Scheme, 1,065,400 shares were still
outstanding under the HSOS 1994 Scheme. Following
the adoption of the HSOS 2001 Scheme, no further
option grants have been made under the HSOS 1994
Scheme. On June 30, 2005 13,532,997 shares of the
23,204,960 ordinary shares have been offered to
participants in terms of the HSOS 2003 Scheme,
leaving a balance of 9,671,963. In terms of the
rules of the HSOS 1994 Scheme, the HSOS 2001
Scheme and the HSOS 2003 Scheme, the exercise
price of the options granted is equal to fair
market value of the shares at the date of the
grant.On November 29, 1999, the Company adopted a share
purchase scheme (the Share Purchase Scheme), in
which eligible employees may participate. The
Share Purchase Scheme provides for a share
purchase trust controlled by the Company. The
share purchase trust provides recourse loans to
enable employees to acquire shares or exercise
their options under the HSOS 1994 Scheme. To date,
the Share Purchase Scheme has only been used for
the purpose of making recourse loans to employees
to enable them to exercise their options under the
HSOS 1994 Scheme. The shares acquired by an
employee pursuant to the exercise of the option
are then pledged by that employee to the share
purchase trust to secure repayment of the recourse
loan granted by the share purchase trust, plus any
interest thereon. The share purchase trust is
funded by a loan from the Company, which it repays
once it receives repayment of the loans granted to
employees. Three non-executive directors of the
Company serve as trustees of the share purchase
trust. The trustees are not eligible to receive
loans from the trust. The Company cancelled the
share purchase scheme on March 21, 2003.Options currently expire no later than 10 years
from the grant date. Pursuant to the HSOS 1994
Scheme rules, annually upon anniversary of the
grant date, a third of the total options granted
are exercisable. Pursuant to the HSOS 2001 Scheme
rules, annually upon anniversary of the grant
date, a third or a fifth of the total options
granted are exercisable, depending on the vesting
terms of the respective grant. Pursuant to the
HSOS 2003 Scheme rules, annually upon anniversary
of the grant date, a fifth of the total options
granted are exercisable. Proceeds received by the
Company from the exercise are credited to share
capital and additional paid in capital.Details of the activity in the HSOS 1994 Scheme,
the HSOS 2001 Scheme and the HSOS 2003 Scheme were
as follows (For convenience of the reader, the
Rand amounts have been converted to US$ at the
balance sheet date for the respective fiscal
years):
 F-49
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Average
    
    
    AverageNumber of
    
    
    exercise price
    
    
    exercise priceAvailable for
    
    
    share options
    
    
    per share
    
    
    per sharegrant
    
    
    granted
    
    
    SA Rand
    
    
    US DollarBalance as at June 30, 2002
    
    
    4,978,700
    
    
    
    8,987,868
    
    
    
    
    
    
    
    Share options granted during the year
    
    
    (1,149,100
    )
    
    
    1,149,100
    
    
    
    
    
    
    
    Share options exercised during the year
    
    
    
    
    
    
    (2,243,300
    )
    
    
    37.04
    
    
    
    4.93Share options forfeited during the year
    
    
    461,800
    
    
    
    (461,800
    )
    
    
    
    
    
    
    Balance as at June 30, 2003
    
    
    4,291,400
    
    
    
    7,431,868
    
    
    
    
    
    
    
    Share options exercised during the year
    
    
    
    
    
    
    (703,800
    )
    
    
    41.82
    
    
    
    6.07Share options forfeited during the year
    
    
    683,934
    
    
    
    (683,934
    )
    
    
    
    
    
    
    Balance as at June 30, 2004
    
    
    4,975,334
    
    
    
    6,044,134
    
    
    
    
    
    
    
    Share options reserved during the year
    
    
    23,204,960
    
    
    
    
    
    
    
    
    
    
    
    Share options granted during the year
    
    
    (13,532,997
    )
    
    
    13,532,997
    
    
    
    
    
    
    
    Share options exercised during the year
    
    
    
    
    
    
    (426,352
    )
    
    
    45.69
    
    
    
    7.39Share options forfeited during the year
    
    
    937,695
    
    
    
    (937,695
    )
    
    
    
    
    
    
    Balance as at June 30, 2005
    
    
    15,584,992
    
    
    
    18,213,084
    
    
    
    
    
    
    
    
    Outstanding options weighted averageExercise
    
    
    ExerciseNumber of
    
    
    Contractual
    
    
    price
    
    
    priceSA Rand
    

Range of prices
    
    
    US$
    
    
    shares
    
    
    life (in years)
    
    
    SA Rand
    
    
    US$22.90 - 27.20
    
    
    
    
    
    
    3.43 - 4.08
    
    
    
    161,450
    
    
    
    4.85
    
    
    
    25.39
    
    
    
    3.8135.40 - 49.60
    
    
    
    
    
    
    5.31 - 7.44
    
    
    
    12,905,548
    
    
    
    8.93
    
    
    
    41.43
    
    
    
    6.2166.00 - 66.15
    
    
    
    
    
    
    9.90 - 9.92
    
    
    
    4,120,686
    
    
    
    9.03
    
    
    
    66.14
    
    
    
    9.9291.60 - 93.00
    
    
    
    
    
    
    13.74 - 13.95
    
    
    
    1,025,400
    
    
    
    7.71
    
    
    
    91.64
    
    
    
    13.75Total
    
    
    
    
    
    
    
    
    
    
    18,213,084
    
    
    
    8.85
    
    
    
    49.70
    
    
    
    7.46
 Exercisable optionsWeighted
    
    
    Weightedaverage
    
    
    averageexercise price
    
    
    exercise priceSA Rand
    
    Range of prices
    
    
    US$
    
    
    Number of shares
    
    
    Rand
    
    
    US$22.90 - 27.20
    
    
    
    
    
    
    3.43 - 4.08
    
    
    
    161,450
    
    
    
    25.39
    
    
    
    3.8135.40 - 49.60
    
    
    
    
    
    
    5.31 - 7.44
    
    
    
    1,900,700
    
    
    
    47.70
    
    
    
    7.1566.00 - 66.15
    
    
    
    
    
    
    9.90 - 9.92
    
    
    
    117,900
    
    
    
    66.00
    
    
    
    9.9091.60 - 93.00
    
    
    
    
    
    
    13.74 - 13.95
    
    
    
    416,200
    
    
    
    91.66
    
    
    
    13.75Total
    
    
    
    
    
    
    
    
    
    
    2,596,250
    
    
    
    54.19
    
    
    
    8.13
  F-50
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 In connection with the share purchase scheme described above, the Company
follows the provisions of EITF 00-23 Issues Related to the Accounting for
Stock Compensation under APB 25 and FASB Interpretation No. 44 for all options
granted subsequent to January 18, 2001 and prior to the adoption of FAS 123 on
July 1, 2001, due to the share purchase scheme described above. Pursuant to the
guidance in EITF 00-23, the Company applied variable accounting for the 700,000
options granted on April 24, 2001, until the earlier of such date upon which
such options were exercised, or the share purchase scheme was cancelled. The
Company recognized a share-based compensation credit of $2.2 million related to
this option grant during fiscal 2003.On July 1, 2001, the Company changed its accounting policy and adopted FAS 123.
FAS 123 requires that all share options granted following the date of adoption,
be fair valued and that the fair value be recognized as share-based
compensation expense over the options vesting period. Accordingly the Company
fair valued the 6,130,100 options granted on November 20, 2001 and recorded
deferred share-based compensation of $8.7 million based on a fair value of
R9.23 per option granted during the 2002 fiscal year. $1.7 million, $2.6
million and $3.1 million were recognized as share compensation expense during
the 2005, 2004 and 2003 fiscal years, respectively, related to the November 20,
2001, option grant. The Company also fair valued the 1,311,000 options granted
on March 27, 2003 and recorded deferred share-based compensation of $7.1
million based on a fair value of R42.78 per option granted during the 2003
fiscal year. $2.1 million, $3.3 million and $0.7 million was recognized as
share compensation expense during the 2005, 2004 and 2003 fiscal years,
respectively, related to the March 27, 2003, option grant. The Company also
fair valued the 3,924,149 options granted on August 10, 2004
and recorded deferred share-based compensation of $21.3 million based on a fair
value of R33.36 per option granted during the 2005 fiscal year. $8.5 million
was recognized as share compensation expense during the 2005 fiscal year,
related to the August 10, 2004, option grant. The Company also fair valued the
9,608,848 options granted on April 26, 2005 and recorded deferred share-based
compensation of $27.7 million based on a fair value of R17.57 per option
granted during the 2005 fiscal year. $2.1 million was recognized as share
compensation expense during the 2005 fiscal year, related to the April 26,
2005, option grant. The Company used the following assumptions in valuing the
option grants:
 April 26,
    
    
    August 10,
    
    
    March 27 ,
    
    
    November2005 option
    
    
    2004 option
    
    
    2003 option
    
    
    20, 2001grant
    
    
    grant
    
    
    grant
    
    
    option grantExpected life (in years)
    
    
    5.0
    
    
    
    5.0
    
    
    
    5.0
    
    
    
    3.5Risk free interest rate
    
    
    8.37
    %
    
    
    9.94
    %
    
    
    11.63
    %
    
    
    11.50
    %Volatility
    
    
    35.00
    %
    
    
    40.00
    %
    
    
    45.00
    %
    
    
    40.00
    %Dividend yield
    
    
    0.00
    %
    
    
    0.00
    %
    
    
    1.52
    %
    
    
    4.00
    %
 The Company used the binomial method in determining the fair value of the options granted.Pro forma financial information required by SFAS No. 123 Accounting for Stock-Based
Compensation regarding net income and earnings per share for the fiscal years 2005, 2004
and 2003 as if the Company had accounted for its employee share options, granted
subsequent prior to July 1, 2001, under the fair value method of that statement is
presented in note 2(s)(iii) to these financial statements.(ii)
    
    ABELLE SHARE OPTION SCHEME:Prior to the Companys acquisition of the entire outstanding
shareholdings in Abelle, Abelle also had a share option scheme (the Abelle Scheme).
Abelle established the Abelle Scheme to incentivize and to assist in the recruitment,
reward and retention of employees of Abelle. All employees may have been granted options
to purchase shares in Abelles authorized but unissued ordinary shares pursuant to the
Abelle Scheme rules. The Abelle Scheme was established following approval by Abelles
shareholders during fiscal 2002. The Abelle Scheme came into effect on April 29, 2002.
The maximum number of share options that may have been granted under the Abelle Scheme
were not to exceed 5% of the total number of Abelle shares in issue. In terms of the
rules of the Abelle Scheme, the exercise price of the options granted must be equal to at
least 112% of the fair market value of the shares at the date the participant is invited
to apply for an option.
 F-51
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
   Average
    
    
    AverageNumber of
    
    
    exercise price
    
    
    exercise priceAvailable for
    
    
    share options
    
    
    per share
    
    
    per sharegrant
    
    
    granted
    
    
    AUS$
    
    
    US$Balance as at April 30, 2003
    
    
    7,260,382
    
    
    
    2,662,500
    
    
    
    
    
    
    
    Share options granted during the year
    
    
    (1,800,000
    )
    
    
    1,800,000
    
    
    
    
    
    
    
    Share options exercised during the year
    
    
    
    
    
    
    (22,500
    )
    
    
    (0.94
    )
    
    
    (0.71
    )Balance as at June 30, 2003
    
    
    5,460,382
    
    
    
    4,440,000
    
    
    
    
    
    
    
    Acquisition of outstanding options by Harmony
    
    
    (5,460,382
    )
    
    
    (4,440,000
    )
    
    
    
    
    
    
    Balance as at June 30, 2004
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  2004Expected life (in years)
    
    
    3.0Risk free interest rate
    
    
    4.64
    %Volatility
    
    
    53.00
    %Dividend yield
    
    
    0.00
    %
  F-52
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
 32
    
    DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE AND CREDIT RISK OF FINANCIAL INSTRUMENTSHarmony is exposed to various market risks, including commodity price risk, foreign currency risk,
interest rate risk, liquidity risk and credit risk associated with the underlying assets and
liabilities of the company as well as with anticipated transactions. Harmony does not issue
derivative financial instruments for trading or speculative purposes. However, following periodic
evaluation of these exposures, Harmony may enter into derivative financial instruments to manage these
exposures.Commodity price sensitivityAs a general rule, the Company sells its gold production at market prices. The Company, generally,
does not enter into forward sales, derivatives or other hedging arrangements to establish a price in
advance for the sale of its future gold production. A significant proportion of New Hampton and Hill
50s production was already hedged when acquired by the Company. During the previous fiscal year, in
accordance with Harmonys strategy, a significant portion of the inherited hedge books of both New
Hampton and Hill 50, were closed out at a cost of US$15 million.It is Harmonys strategy to continuously evaluate the hedge agreements as well as market conditions in
order to close these contracts out at the most beneficial time.The group had the following net forward-pricing commitments against future production at June 30, 2005.Summary of the groups gold hedge position at June 30, 2005
 Mark-to-June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    
    
    
    
    marketYear
    
    
    
    
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    Total
    
    
    $000AUSTRALIAN DOLLAR GOLDForward contracts
    
    
    
    

    Kilograms
    
    
    3,359
    
    
    
    4,572
    
    
    
    3,110
    
    
    
    3,110
    
    
    
    14,151Ounces
    
    
    108,000
    
    
    
    147,000
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    455,000
    
    
    
    (36,828
    )A$ per oz
    
    
    510
    
    
    
    515
    
    
    
    518
    
    
    
    518
    
    
    
    515Call options sold
    

    
    
    
    Kilograms
    
    
    933
    
    
    
    311
    
    
    
    
    
    
    
    
    
    
    
    1,244Ounces
    
    
    30,000
    
    
    
    10,000
    
    
    
    
    
    
    
    
    
    
    
    40,000
    
    
    
    (994
    )A$ per oz
    
    
    552
    
    
    
    562
    
    
    
    
    
    
    
    
    
    
    
    554Total commodity
    

    
    
    
    Kilograms
    
    
    4,292
    
    
    
    4,883
    
    
    
    3,110
    
    
    
    3,110
    
    
    
    15,395contracts
    

    
    
    
    Ounces
    
    
    138,000
    
    
    
    157,000
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    495,000
    
    
    
    (37,822
    )
  Summary of the groups gold hedge position at June 30, 2004
 Mark-to-June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,
    
    
    
    
    
    
    marketYear
    
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    Total
    
    
    $000AUSTRALIAN DOLLAR GOLDForward contracts
    
    Kilograms
    
    
    5,443
    
    
    
    3,359
    
    
    
    4,572
    
    
    
    3,110
    
    
    
    3,110
    
    
    
    19,594Ounces
    
    
    175,000
    
    
    
    108,000
    
    
    
    147,000
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    630,000
    
    
    
    (39,969
    )A$ per oz
    
    
    513
    
    
    
    510
    
    
    
    515
    
    
    
    518
    
    
    
    518
    
    
    
    372Call options sold
    
    Kilograms
    
    
    4,043
    
    
    
    933
    
    
    
    311
    
    
    
    
    
    
    
    
    
    
    
    5,287Ounces
    
    
    130,000
    
    
    
    30,000
    
    
    
    10,000
    
    
    
    
    
    
    
    
    
    
    
    170,000
    
    
    
    (1,849
    )A$ per oz
    
    
    512
    
    
    
    552
    
    
    
    562
    
    
    
    
    
    
    
    
    
    
    
    130Total commodity
    
    Kilograms
    
    
    9,486
    
    
    
    4,292
    
    
    
    4,883
    
    
    
    3,110
    
    
    
    3,110
    
    
    
    24,881contracts
    
    Ounces
    
    
    305,000
    
    
    
    138,000
    
    
    
    157,000
    
    
    
    100,000
    
    
    
    100,000
    
    
    
    800,000
    
    
    
    (41,818
    )
  F-53
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
  Foreign currency sensitivity
   Summary of the groups currency hedge position at June 30, 2005
 Mark-to-June 30,
    
    
    
    
    
    
    marketYear
    
    
    
    2006
    
    
    Total
    
    
    $000Forward exchange contracts
    
    US$ million
    
    
    39
    
    
    
    39
    
    
    
    (16,467
    )(Buy US$, sell ZAR at the agreed exchange rate)
    
    Average strike ZAR/US$
    
    
    9.54
    
    
    
    9.54Forward exchange call contracts sold
    
    US$ million
    
    
    39
    
    
    
    39
    
    
    
    (Sell US$, buy ZAR at the agreed exchange rate)
    
    Average strike ZAR/US$
    
    
    9.54
    
    
    
    9.54(16,467
    )
  Summary of the groups currency hedge position at June 30, 2004
 Mark-to-June 30,
    
    
    June 30,
    
    
    
    
    
    
    marketYear
    
    
    
    2005
    
    
    2006
    
    
    Total
    
    
    $000Forward exchange contracts
    
    US$ million
    
    
    79
    
    
    
    40
    
    
    
    119
    
    
    
    (48,128
    )(Buy US$, sell ZAR at the agreed exchange rate)
    
    Average strike ZAR/US$
    
    
    9.07
    
    
    
    9.54
    
    
    
    9.23Forward exchange call contracts sold
    
    US$ million
    
    
    79
    
    
    
    40
    
    
    
    119
    
    
    
    (358
    )(Sell US$, buy ZAR at the agreed exchange rate)
    
    Average strike ZAR/US$
    
    
    9.07
    
    
    
    9.54
    
    
    
    9.23(48,486
    )
   Interest rates and liquidity risk
  Gold Lease Rate Swaps:
   F-54
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
 Gold lease rate swaps
outstanding as at June 30, 2004:
 2005
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009Ounces
    
    
    585,000
    
    
    
    400,000
    
    
    
    225,000
    
    
    
    125,000
    
    
    
    25,000Lease rate received
    
    
    1.04
    %
    
    
    1.04
    %
    
    
    1.05
    %
    
    
    1.05
    %
    
    
    1.05
    %
  Interest Rate Swaps:
     Surplus Funds
  Concentration of credit risk
    F-55
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
 33 CASH (UTILIZED)/GENERATED BY OPERATIONS
 2005
    
    
    2004
    
    
    2003$000
    
    
    $000
    
    
    $000Reconciliation of profit before taxation to cash generated from operations:(Loss)/income before taxation
    
    
    (717,159
    )
    
    
    (74,568
    )
    
    
    97,515Adjustments for:Loss/(profit) on sale of listed investments
    
    
    93,470
    
    
    
    (4,910
    )
    
    
    (59,243
    )Profit on sale and loss on dilution of investment in associates  net
    
    
    
    
    
    
    (65,097
    )
    
    
    Loss/(profit) on sale of subsidiaries
    
    
    114
    
    
    
    (115
    )
    
    
    Profit on sale of property, plant and equipment
    
    
    (12,542
    )
    
    
    (22,303
    )
    
    
    (2,129
    )Depreciation and amortization
    
    
    117,469
    
    
    
    104,045
    
    
    
    60,931Impairment of assets
    
    
    243,124
    
    
    
    3,145
    
    
    
    117,594(Gain)/loss on financial instruments
    
    
    17,672
    
    
    
    32,385
    
    
    
    (43,154
    )Equity income of joint venture
    
    
    
    
    
    
    (7,918
    )
    
    
    Equity profit of associated companies
    
    
    
    
    
    
    (2,020
    )
    
    
    Impairment of investment in associate
    
    
    
    
    
    
    1,956
    
    
    
    Impairment of listed investment
    
    
    63,234
    
    
    
    
    
    
    
    Net decrease in provision for environmental rehabilitation
    
    
    (2,828
    )
    
    
    (19,461
    )
    
    
    (5,224
    )Provision for post retirement benefits
    
    
    9,137
    
    
    
    
    
    
    
    3Other non cash transactions
    
    
    13,255
    
    
    
    5,564
    
    
    
    8,700Income and mining taxes paid
    
    
    (8,952
    )
    
    
    (83,881
    )
    
    
    (43,514
    )Cash cost to close out hedges
    
    
    (34,248
    )
    
    
    (19,349
    )
    
    
    (8,637
    )Share-based compensation
    
    
    14,331
    
    
    
    7,135
    
    
    
    1,761Decrease/(increase) in deferred stripping assets
    
    
    15,362
    
    
    
    (4,119
    )
    
    
    (1,397
    )Effect of changes in operating working capital items:Receivables
    
    
    38,092
    
    
    
    25,400
    
    
    
    18,346Inventories
    
    
    (7,357
    )
    
    
    (700
    )
    
    
    (13,126
    )Accounts payable and accrued liabilities
    
    
    (53,247
    )
    
    
    33,929
    
    
    
    24,205Cash (utilized)/generated by operations
    
    
    (211,073
    )
    
    
    (90,882
    )
    
    
    152,631
 34 RELATED PARTY TRANSACTIONS
     F-56
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
For the years ended June 30
     35 SUBSEQUENT EVENTS
 (a)
    
    On June 30, 2005 Harmony announced that it would approach the market to purchase up to 25% of the outstanding notional amount
(the Repurchase) of its 13% HAR1 bond listed on the Bond Exchange of South Africa due June 14, 2006 (the Bonds). All holders of
the Bonds were given an equal opportunity to participate in the Repurchase. On July 6, 2005 the partial re-purchase of Harmonys
HAR1 corporate bond was completed. A total of $45.0 million of the bonds notional value was repurchased at a cost of some $47.1
million.This represents 23.5% of the total issue due for redemption in June 2006, compared to an allocated maximum amount for
the repurchase of 25% 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.(b)
    
    On September 23, 2005 Harmony announced that it had reached agreement with Northern Gold NL on the divestment of its 50% stake
in the Burnside Joint Venture for a consideration of A$24 million or $18.3 million. In terms of the agreement Northern Gold will
purchase Harmonys sole purpose subsidiary which holds Harmonys interest in the Burnside JV and the management entity thereof.
The purchase consideration of A$24 million (plus replacement of a A$1 million performance bond) is payable in tranches
comprising:
 
    
    A non-refundable deposit of A$0.25 million;
    
    A cash payment of A$4.0 million and an issue of A$5.0 million of shares (20
million Northern Gold shares) on completion (within six months) and
the replacement of a A$1.0 million performance bond;
    
    A cash payment of A$5.0 million and the issue of A$4.4 million shares (at an
issue price equal to the higher of A$0.25/share and the prevailing 30 day
volume weighted average market price) six months after completion; and
    
    A cash payment of A$5.35 million payable 18 months after the completion date.
 The transaction is subject to normal regulatory approvals that accompany such transactions.
 F-57
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 36
    
    GEOGRAPHICAL AND SEGMENT INFORMATION
     ¢
    
    quality shafts, which are typically those with a larger reserve base and longer life, which form the core of the groups production;¢
    
    leveraged shafts, which are those that supplement production and provide the upside in the event of a positive swing in the Rand gold price;¢
    
    growth shafts, which comprise the expansion projects established through existing infrastructure, as well as the three new mines the Group is building in South Africa; and¢
    
    surface operations, which comprise the Kalgold opencast mine, all previously mined rock, whether waste or reef and any clean-up operations as well as plant
and other infrastructure.
   Year
ended June 30, 2005
 CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000SOUTH AFRICAFree State operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft levelQuality ouncesMasimong
    
    
    68,342
    
    
    
    72,282
    
    
    
    (3,940
    )
    
    
    29,930
    
    
    
    
    
    
    
    29,930
    
    
    Information not allocated at shaft level
    
    
    3,736
    
    
    
    159,981
    
    
    
    1,046Leveraged ouncesHarmony 2
    
    
    29,295
    
    
    
    33,576
    
    
    
    (4,281
    )
    
    
    806
    
    
    
    
    
    
    
    806
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    68,547
    
    
    
    559Merriespruit 1
    
    
    19,428
    
    
    
    24,552
    
    
    
    (5,124
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,559
    
    
    
    414Merriespruit 3
    
    
    23,325
    
    
    
    25,447
    
    
    
    (2,122
    )
    
    
    1,373
    
    
    
    
    
    
    
    1,373
    
    
    
    
    
    
    
    628
    
    
    
    54,690
    
    
    
    548Unisel
    
    
    27,798
    
    
    
    35,202
    
    
    
    (7,404
    )
    
    
    10,631
    
    
    
    
    
    
    
    10,631
    
    
    
    
    
    
    
    
    
    
    
    65,011
    
    
    
    494Brand 3
    
    
    19,807
    
    
    
    24,150
    
    
    
    (4,343
    )
    
    
    1,500
    
    
    
    
    
    
    
    1,500
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    46,299
    
    
    
    448Brand 5
    
    
    8
    
    
    
    2,120
    
    
    
    (2,112
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33
    
    
    
    Saaiplaas 3
    
    
    1,026
    
    
    
    4,831
    
    
    
    (3,805
    )
    
    
    475
    
    
    
    
    
    
    
    475
    
    
    
    
    
    
    
    4
    
    
    
    2,541
    
    
    
    30
 F-58
      CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces gold
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced(*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000Surface
    
    
    3,720
    
    
    
    3,318
    
    
    
    402
    
    
    
    37,481
    
    
    
    
    
    
    
    37,481
    
    
    
    
    
    
    
    1,589
    
    
    
    9,542
    
    
    
    467Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    66,795
    
    
    
    593,781
    
    
    
    660,576
    
    
    
    
    
    
    
    30
    
    
    
    
    
    
    
    Total Free State
    
    
    192,749
    
    
    
    225,478
    
    
    
    (32,729
    )
    
    
    148,991
    
    
    
    593,781
    
    
    
    742,772
    
    
    
    526,506
    
    
    
    5,987
    
    
    
    452,203
    
    
    
    4,006Evander operationsQuality ouncesEvander 2
    
    
    20,695
    
    
    
    30,967
    
    
    
    (10,272
    )
    
    
    3,815
    
    
    
    
    
    
    
    3,815
    
    
    Information not allocated at shaft level
    
    
    15
    
    
    
    48,764
    
    
    
    357Evander 5
    
    
    20,078
    
    
    
    19,353
    
    
    
    725
    
    
    
    3,684
    
    
    
    
    
    
    
    3,684
    
    
    
    
    
    
    
    2
    
    
    
    47,093
    
    
    
    245Evander 7
    
    
    55,502
    
    
    
    36,872
    
    
    
    18,630
    
    
    
    35,750
    
    
    
    
    
    
    
    35,750
    
    
    
    
    
    
    
    3,871
    
    
    
    130,009
    
    
    
    541Evander 8
    
    
    64,912
    
    
    
    46,245
    
    
    
    18,667
    
    
    
    31,482
    
    
    
    
    
    
    
    31,482
    
    
    
    
    
    
    
    3,472
    
    
    
    151,936
    
    
    
    734Leveraged ounces
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft levelEvander 9
    
    
    1,078
    
    
    
    3,005
    
    
    
    (1,927
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,573
    
    
    
    31Surface
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,101
    
    
    
    24,027
    
    
    
    64,128
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Evander
    
    
    162,265
    
    
    
    136,442
    
    
    
    25,823
    
    
    
    114,832
    
    
    
    24,027
    
    
    
    138,859
    
    
    
    32,672
    
    
    
    7,360
    
    
    
    380,375
    
    
    
    1,908Randfontein operationsQuality ouncesCooke 1
    
    
    33,888
    
    
    
    33,660
    
    
    
    228
    
    
    
    9,946
    
    
    
    
    
    
    
    9,946
    
    
    Information not allocated at shaft level
    
    
    266
    
    
    
    79,101
    
    
    
    520Cooke 2
    
    
    23,274
    
    
    
    26,560
    
    
    
    (3,286
    )
    
    
    10,021
    
    
    
    
    
    
    
    10,021
    
    
    
    
    
    
    
    122
    
    
    
    54,441
    
    
    
    403Cooke 3
    
    
    49,478
    
    
    
    50,565
    
    
    
    (1,087
    )
    
    
    8,163
    
    
    
    
    
    
    
    8,163
    
    
    
    
    
    
    
    
    
    
    
    116,300
    
    
    
    740Growth projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft levelDoornkop
    
    
    22,478
    
    
    
    26,971
    
    
    
    (4,493
    )
    
    
    189,448
    
    
    
    
    
    
    
    189,448
    
    
    
    
    
    
    
    25,223
    
    
    
    52,695
    
    
    
    526Surface
    
    
    14,185
    
    
    
    14,117
    
    
    
    68
    
    
    
    2,676
    
    
    
    
    
    
    
    2,676
    
    
    
    
    
    
    
    6,120
    
    
    
    33,397
    
    
    
    2,757Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    69,082
    
    
    
    69,082
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Randfontein
    
    
    143,303
    
    
    
    151,873
    
    
    
    (8,570
    )
    
    
    220,254
    
    
    
    69,082
    
    
    
    289,336
    
    
    
    59,469
    
    
    
    31,731
    
    
    
    335,934
    
    
    
    4,946Elandsrand operationsGrowth projectsElandsrand
    
    
    88,577
    
    
    
    99,150
    
    
    
    (10,573
    )
    
    
    228,343
    
    
    
    
    
    
    
    228,343
    
    
    Information not allocated at shaft level
    
    
    15,530
    
    
    
    207,371
    
    
    
    1,019Leveraged ouncesDeelkraal
    
    
    958
    
    
    
    714
    
    
    
    244
    
    
    
    2,514
    
    
    
    
    
    
    
    2,514
    
    
    
    
    
    
    
    
    
    
    
    2,284
    
    
    
    1Surface
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    334
    
    
    
    
    
    
    
    334
    
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,495
    
    
    
    13,495
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Elandsrand
    
    
    89,535
    
    
    
    99,864
    
    
    
    (10,329
    )
    
    
    231,191
    
    
    
    13,495
    
    
    
    244,686
    
    
    
    5,657
    
    
    
    15,537
    
    
    
    209,655
    
    
    
    1,020
 F-59
      CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000Freegold operationsQuality ouncesTshepong
    
    
    162,958
    
    
    
    117,592
    
    
    
    45,366
    
    
    
    606,626
    
    
    
    
    
    
    
    606,626
    
    
    Information not allocated at shaft level
    
    
    6,845
    
    
    
    380,695
    
    
    
    1,700Growth projectsPhakisa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    258,424
    
    
    
    
    
    
    
    258,424
    
    
    
    
    
    
    
    18,756
    
    
    
    
    
    
    
    Leveraged ounces
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft levelBambanani
    
    
    84,165
    
    
    
    91,573
    
    
    
    (7,408
    )
    
    
    82,322
    
    
    
    
    
    
    
    82,322
    
    
    
    
    
    
    
    3,893
    
    
    
    197,535
    
    
    
    1,090Joel
    
    
    27,282
    
    
    
    31,408
    
    
    
    (4,126
    )
    
    
    4,206
    
    
    
    
    
    
    
    4,206
    
    
    
    
    
    
    
    165
    
    
    
    64,464
    
    
    
    498Eland
    
    
    11,436
    
    
    
    13,404
    
    
    
    (1,968
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26,782
    
    
    
    175Kudu/Sable
    
    
    10,764
    
    
    
    18,885
    
    
    
    (8,121
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,175
    
    
    
    194West Shaft
    
    
    12,049
    
    
    
    13,014
    
    
    
    (965
    )
    
    
    9,640
    
    
    
    
    
    
    
    9,640
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    28,165
    
    
    
    176Nyala
    
    
    9,897
    
    
    
    17,587
    
    
    
    (7,690
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,440
    
    
    
    23,503
    
    
    
    198St Helena
    
    
    12,660
    
    
    
    25,092
    
    
    
    (12,432
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,965
    
    
    
    245Surface
    
    
    15,407
    
    
    
    15,436
    
    
    
    (29
    )
    
    
    3,376
    
    
    
    
    
    
    
    3,376
    
    
    
    
    
    
    
    314
    
    
    
    36,420
    
    
    
    1,361Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    488,840
    
    
    
    488,840
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Freegold
    
    
    346,618
    
    
    
    343,991
    
    
    
    2,627
    
    
    
    964,594
    
    
    
    488,840
    
    
    
    1,453,434
    
    
    
    328,115
    
    
    
    31,413
    
    
    
    812,704
    
    
    
    5,637ARMgold operationsLeveraged ouncesOrkney 2
    
    
    33,279
    
    
    
    32,938
    
    
    
    341
    
    
    
    7,429
    
    
    
    
    
    
    
    7,429
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    78,449
    
    
    
    413Orkney 4
    
    
    32,720
    
    
    
    30,517
    
    
    
    2,203
    
    
    
    9,148
    
    
    
    
    
    
    
    9,148
    
    
    
    
    
    
    
    14
    
    
    
    76,971
    
    
    
    455Welkom 1
    
    
    1,164
    
    
    
    1,604
    
    
    
    (440
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,734
    
    
    
    21Surface
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,887
    
    
    
    13,887
    
    
    
    
    
    
    
    394
    
    
    
    
    
    
    
    Total ARMgold
    
    
    67,163
    
    
    
    65,059
    
    
    
    2,104
    
    
    
    16,577
    
    
    
    13,887
    
    
    
    30,464
    
    
    
    40,604
    
    
    
    408
    
    
    
    158,154
    
    
    
    889Avgold operationsQuality ouncesTarget
    
    
    89,233
    
    
    
    57,273
    
    
    
    31,960
    
    
    
    302,103
    
    
    
    
    
    
    
    302,103
    
    
    Information not allocated at shaft level
    
    
    8,699
    
    
    
    209,847
    
    
    
    1,178Surface
    
    
    579
    
    
    
    467
    
    
    
    112
    
    
    
    942
    
    
    
    
    
    
    
    942
    
    
    
    
    
    
    
    1,790
    
    
    
    1,350
    
    
    
    88Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    770,753
    
    
    
    9,357
    
    
    
    780,110
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Avgold
    
    
    89,812
    
    
    
    57,740
    
    
    
    32,072
    
    
    
    1,073,798
    
    
    
    9,357
    
    
    
    1,083,155
    
    
    
    23,789
    
    
    
    10,489
    
    
    
    211,197
    
    
    
    1,266Kalgold operationsSurface
    
    
    46,331
    
    
    
    51,554
    
    
    
    (5,223
    )
    
    
    20,442
    
    
    
    
    
    
    
    20,442
    
    
    Information not allocated at shaft level
    
    
    (4,145
    )
    
    
    108,195
    
    
    
    1,855Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,217
    
    
    
    7,403
    
    
    
    8,620
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Kalgold
    
    
    46,331
    
    
    
    51,554
    
    
    
    (5,223
    )
    
    
    21,659
    
    
    
    7,403
    
    
    
    29,062
    
    
    
    4,621
    
    
    
    (4,145
    )
    
    
    108,195
    
    
    
    1,855Other entities
    
    
    1,755
    
    
    
    
    
    
    
    1,755
    
    
    
    900
    
    
    
    178,296
    
    
    
    179,196
    
    
    
    128,734
    
    
    
    2,035
    
    
    
    
    
    
    
    TOTAL SOUTH AFRICA
    
    
    1,139,531
    
    
    
    1,132,001
    
    
    
    7,530
    
    
    
    2,792,796
    
    
    
    1,398,168
    
    
    
    4,190,964
    
    
    
    1,150,167
    
    
    
    100,815
    
    
    
    2,668,417
    
    
    
    21,527
 F-60
      CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000AUSTRALASIAMt Magnet
    
    
    77,242
    
    
    
    60,914
    
    
    
    16,328
    
    
    
    78,172
    
    
    
    
    
    
    
    78,172
    
    
    
    52,733
    
    
    
    15,652
    
    
    
    181,233
    
    
    
    2,743South Kal
    
    
    48,427
    
    
    
    39,262
    
    
    
    9,165
    
    
    
    55,289
    
    
    
    
    
    
    
    55,289
    
    
    
    36,802
    
    
    
    10,161
    
    
    
    115,615
    
    
    
    1,396Papua New Guinea
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    200,749
    
    
    
    
    
    
    
    200,749
    
    
    
    1,892
    
    
    
    12,051
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,265
    
    
    
    50,145
    
    
    
    74,410
    
    
    
    36,391
    
    
    
    2,178
    
    
    
    
    
    
    
    TOTAL AUSTRALASIA
    
    
    125,669
    
    
    
    100,176
    
    
    
    25,493
    
    
    
    358,475
    
    
    
    50,145
    
    
    
    408,620
    
    
    
    127,818
    
    
    
    40,042
    
    
    
    296,848
    
    
    
    4,139TOTAL HARMONY
    
    
    1,265,200
    
    
    
    1,232,177
    
    
    
    33,023
    
    
    
    3,151,271
    
    
    
    1,448,313
    
    
    
    4,599,584
    
    
    
    1,277,985
    
    
    
    140,857
    
    
    
    2,965,265
    
    
    
    25,666Reconciliation of
segment data to consolidated
financial statements
    
    
    
    
    
    
    746
    
    
    
    (746
    )
    
    
    105,897
    
    
    
    (148,804
    )
    
    
    (42,907
    )
    
    
    283,108
    
    
    
    
    
    
    
    
    
    
    
    1,265,200
    
    
    
    1,232,923
    
    
    
    32,277
    
    
    
    3,257,168
    
    
    
    1,299,509
    
    
    
    4,556,677
    
    
    
    1,561,093
    
    
    
    140,857
    
    
    
    2,965,265
    
    
    
    25,666
 
 (*) Production statistics are unaudited F-61
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2004
 CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces gold
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000SOUTH AFRICAFree State operationsQuality ouncesMasimong
    
    
    84,119
    
    
    
    70,224
    
    
    
    13,895
    
    
    
    43,132
    
    
    
    
    
    
    
    43,132
    
    
    
    Information not allocated at shaft level
    
    
    
    4,120
    
    
    
    218,325
    
    
    
    1,378Leveraged ouncesHarmony 2
    
    
    31,213
    
    
    
    29,888
    
    
    
    1,325
    
    
    
    1,324
    
    
    
    
    
    
    
    1,324
    
    
    
    
    
    
    
    
    
    
    
    81,317
    
    
    
    643Merriespruit 1
    
    
    20,980
    
    
    
    22,534
    
    
    
    (1,554
    )
    
    
    3,448
    
    
    
    
    
    
    
    3,448
    
    
    
    
    
    
    
    315
    
    
    
    54,565
    
    
    
    477Merriespruit 3
    
    
    27,376
    
    
    
    30,313
    
    
    
    (2,937
    )
    
    
    1,088
    
    
    
    
    
    
    
    1,088
    
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    
    71,156
    
    
    
    743Unisel
    
    
    32,475
    
    
    
    34,566
    
    
    
    (2,091
    )
    
    
    20,382
    
    
    
    
    
    
    
    20,382
    
    
    
    
    
    
    
    1,329
    
    
    
    84,308
    
    
    
    677Brand 3
    
    
    21,412
    
    
    
    22,442
    
    
    
    (1,030
    )
    
    
    6,127
    
    
    
    
    
    
    
    6,127
    
    
    
    
    
    
    
    
    
    
    
    55,400
    
    
    
    531Brand 5
    
    
    5,702
    
    
    
    11,591
    
    
    
    (5,889
    )
    
    
    3,022
    
    
    
    
    
    
    
    3,022
    
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    
    14,662
    
    
    
    153Saaiplaas 3
    
    
    10,331
    
    
    
    13,485
    
    
    
    (3,154
    )
    
    
    5,291
    
    
    
    
    
    
    
    5,291
    
    
    
    
    
    
    
    200
    
    
    
    26,783
    
    
    
    254Surface
    
    
    10,215
    
    
    
    9,288
    
    
    
    927
    
    
    
    55,246
    
    
    
    
    
    
    
    55,246
    
    
    
    
    
    
    
    2,501
    
    
    
    26,732
    
    
    
    2,368Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    71,834
    
    
    
    215,497
    
    
    
    287,331
    
    
    
    
    
    
    
    1,717
    
    
    
    
    
    
    
    Total Free State
    
    
    243,823
    
    
    
    244,331
    
    
    
    (508
    )
    
    
    210,894
    
    
    
    215,497
    
    
    
    426,391
    
    
    
    590,638
    
    
    
    10,182
    
    
    
    633,248
    
    
    
    7,224Evander operationsQuality ouncesEvander 2
    
    
    33,216
    
    
    
    32,428
    
    
    
    788
    
    
    
    13,564
    
    
    
    
    
    
    
    13,564
    
    
    
    Information not available at segmential shaft level
    

    
    
    619
    
    
    
    86,172
    
    
    
    491Evander 5
    
    
    18,559
    
    
    
    16,095
    
    
    
    2,464
    
    
    
    9,793
    
    
    
    
    
    
    
    9,793
    
    
    
    
    
    
    
    498
    
    
    
    48,103
    
    
    
    223Evander 7
    
    
    35,566
    
    
    
    32,968
    
    
    
    2,598
    
    
    
    37,358
    
    
    
    
    
    
    
    37,358
    
    
    
    
    
    
    
    5,034
    
    
    
    92,505
    
    
    
    577Evander 8
    
    
    41,945
    
    
    
    39,708
    
    
    
    2,237
    
    
    
    31,480
    
    
    
    
    
    
    
    31,480
    
    
    
    
    
    
    
    5,091
    
    
    
    109,513
    
    
    
    692Leveraged ouncesEvander 9
    
    
    9,079
    
    
    
    9,042
    
    
    
    37
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    
    23,440
    
    
    
    202Surface
    
    
    756
    
    
    
    496
    
    
    
    260
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,367
    
    
    
    1,961
    
    
    
    101Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42,881
    
    
    
    24,613
    
    
    
    67,494
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Evander
    
    
    139,121
    
    
    
    130,737
    
    
    
    8,384
    
    
    
    135,076
    
    
    
    24,613
    
    
    
    159,689
    
    
    
    35,197
    
    
    
    13,609
    
    
    
    361,694
    
    
    
    2,286
 F-62
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2004
 CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces gold
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000Randfontein operationsQuality ouncesCooke 1
    
    
    39,891
    
    
    
    31,632
    
    
    
    8,259
    
    
    
    14,902
    
    
    
    
    
    
    
    14,902
    
    
    
    Information not allocated at shaft level
    
    
    
    825
    
    
    
    104,168
    
    
    
    605Cooke 2
    
    
    34,748
    
    
    
    34,237
    
    
    
    511
    
    
    
    12,287
    
    
    
    
    
    
    
    12,287
    
    
    
    
    
    
    
    789
    
    
    
    90,761
    
    
    
    749Cooke 3
    
    
    51,283
    
    
    
    50,066
    
    
    
    1,217
    
    
    
    9,774
    
    
    
    
    
    
    
    9,774
    
    
    
    
    
    
    
    54
    
    
    
    134,003
    
    
    
    999Growth projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft levelDoornkop
    
    
    24,913
    
    
    
    23,049
    
    
    
    1,864
    
    
    
    181,018
    
    
    
    
    
    
    
    181,018
    
    
    
    
    
    
    
    14,316
    
    
    
    65,234
    
    
    
    567Surface
    
    
    7,264
    
    
    
    6,590
    
    
    
    674
    
    
    
    5,542
    
    
    
    
    
    
    
    5,542
    
    
    
    
    
    
    
    4,511
    
    
    
    18,872
    
    
    
    2,428Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    62,252
    
    
    
    62,252
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Randfontein
    
    
    158,099
    
    
    
    145,574
    
    
    
    12,525
    
    
    
    223,523
    
    
    
    62,252
    
    
    
    285,775
    
    
    
    93,053
    
    
    
    20,495
    
    
    
    413,038
    
    
    
    5,348Elandsrand operationsGrowth projectsElandsrand
    
    
    96,831
    
    
    
    100,657
    
    
    
    (3,826
    )
    
    
    186,201
    
    
    
    
    
    
    
    186,201
    
    
    
    Information not allocated at shaft level

    
    
    
    16,057
    
    
    
    250,581
    
    
    
    1,437Leveraged ouncesDeelkraal
    
    
    26,206
    
    
    
    37,796
    
    
    
    (11,590
    )
    
    
    50,630
    
    
    
    
    
    
    
    50,630
    
    
    
    
    
    
    
    1,305
    
    
    
    68,127
    
    
    
    522Surface
    
    
    2,047
    
    
    
    2,640
    
    
    
    (593
    )
    
    
    891
    
    
    
    
    
    
    
    891
    
    
    
    
    
    
    
    294
    
    
    
    5,301
    
    
    
    451Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,777
    
    
    
    17,777
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Elandsrand
    
    
    125,084
    
    
    
    141,093
    
    
    
    (16,009
    )
    
    
    237,722
    
    
    
    17,777
    
    
    
    255,499
    
    
    
    23,376
    
    
    
    17,656
    
    
    
    324,009
    
    
    
    2,410Freegold operationsQuality ouncesTshepong
    
    
    130,491
    
    
    
    87,629
    
    
    
    42,862
    
    
    
    660,790
    
    
    
    
    
    
    
    660,790
    
    
    
    

    
    
    
    8,731
    
    
    
    339,259
    
    
    
    1,584Growth projectsPhakisa
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    258,043
    
    
    
    
    
    
    
    258,043
    
    
    
    
    
    
    
    16,845
    
    
    
    
    
    
    
    
 F-63
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2004
 CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces gold
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000Leveraged ounces


    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft levelBambanani
    
    
    96,943
    
    
    
    91,049
    
    
    
    5,894
    
    
    
    102,781
    
    
    
    
    
    
    
    102,781
    
    
    
    
    
    
    
    7,500
    
    
    
    251,970
    
    
    
    1,403Joel
    
    
    22,906
    
    
    
    23,403
    
    
    
    (497
    )
    
    
    7,254
    
    
    
    
    
    
    
    7,254
    
    
    
    
    
    
    
    
    
    
    
    59,642
    
    
    
    494Eland
    
    
    16,952
    
    
    
    22,465
    
    
    
    (5,513
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    274
    
    
    
    44,017
    
    
    
    303Kudu/Sable
    
    
    13,331
    
    
    
    14,473
    
    
    
    (1,142
    )
    
    
    14,341
    
    
    
    
    
    
    
    14,341
    
    
    
    
    
    
    
    
    
    
    
    34,597
    
    
    
    240West Shaft
    
    
    12,061
    
    
    
    10,167
    
    
    
    1,894
    
    
    
    11,106
    
    
    
    
    
    
    
    11,106
    
    
    
    Information not allocated at shaft level
    
    
    
    1
    
    
    
    31,318
    
    
    
    175Nyala
    
    
    4,033
    
    
    
    3,578
    
    
    
    455
    
    
    
    15,663
    
    
    
    
    
    
    
    15,663
    
    
    
    
    
    
    
    7,276
    
    
    
    10,482
    
    
    
    98St Helena
    
    
    23,643
    
    
    
    28,550
    
    
    
    (4,907
    )
    
    
    19,938
    
    
    
    
    
    
    
    19,938
    
    
    
    
    
    
    
    
    
    
    
    61,668
    
    
    
    443Surface
    
    
    23,850
    
    
    
    20,427
    
    
    
    3,423
    
    
    
    3,368
    
    
    
    
    
    
    
    3,368
    
    
    
    
    
    
    
    21
    
    
    
    61,192
    
    
    
    3,538Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    520,795
    
    
    
    520,795
    
    
    
    
    
    
    
    228,305
    
    
    
    
    
    
    
    Total Freegold
    
    
    344,210
    
    
    
    301,741
    
    
    
    42,469
    
    
    
    1,093,284
    
    
    
    520,795
    
    
    
    1,614,079
    
    
    
    438,523
    
    
    
    268,953
    
    
    
    894,145
    
    
    
    8,278ARMgold operationsLeveraged ouncesOrkney 1
    
    
    123
    
    
    
    194
    
    
    
    (71
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    
    322
    
    
    
    3Orkney 2
    
    
    31,435
    
    
    
    26,892
    
    
    
    4,543
    
    
    
    10,090
    
    
    
    
    
    
    
    10,090
    
    
    
    
    
    
    
    
    
    
    
    81,434
    
    
    
    387Orkney 3
    
    
    4,425
    
    
    
    6,440
    
    
    
    (2,015
    )
    
    
    427
    
    
    
    
    
    
    
    427
    
    
    
    
    
    
    
    464
    
    
    
    11,413
    
    
    
    137Orkney 4
    
    
    26,269
    
    
    
    20,243
    
    
    
    6,026
    
    
    
    11,719
    
    
    
    
    
    
    
    11,719
    
    
    
    Information not allocated at shaft level
    
    
    
    160
    
    
    
    67,931
    
    
    
    401Orkney 6
    
    
    4,304
    
    
    
    5,378
    
    
    
    (1,074
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,060
    
    
    
    157Orkney 7
    
    
    1,760
    
    
    
    1,970
    
    
    
    (210
    )
    
    
    19
    
    
    
    
    
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    4,533
    
    
    
    28Welkom 1
    
    
    7,415
    
    
    
    9,939
    
    
    
    (2,524
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,226
    
    
    
    159Welkom 2
    
    
    525
    
    
    
    547
    
    
    
    (22
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,350
    
    
    
    12Welkom 3
    
    
    592
    
    
    
    581
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,511
    
    
    
    15Welkom 4
    
    
    1,531
    
    
    
    1,496
    
    
    
    35
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,922
    
    
    
    13Welkom 6
    
    
    935
    
    
    
    894
    
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    
    2,411
    
    
    
    24Welkom 7
    
    
    3,890
    
    
    
    3,566
    
    
    
    324
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,902
    
    
    
    88Surface
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,097
    
    
    
    20,097
    
    
    
    
    
    
    
    614,962
    
    
    
    
    
    
    
    Total ARMgold
    
    
    83,204
    
    
    
    78,140
    
    
    
    5,064
    
    
    
    22,255
    
    
    
    20,097
    
    
    
    42,352
    
    
    
    73,068
    
    
    
    615,586
    
    
    
    215,015
    
    
    
    1,424
 F-64
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2004
 CashProduction
    
    Operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    Ounces gold
    
    Tons milledRevenue
    
    costs
    
    profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    produced (*)
    
    (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000Avgold operationsQuality ouncesTarget
    
    
    19,772
    
    
    
    11,514
    
    
    
    8,258
    
    
    
    384,862
    
    
    
    
    
    
    
    384,862
    
    
    
    Information not allocated at shaft level

    
    
    
    1,175
    
    
    
    53,434
    
    
    
    228Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    772,158
    
    
    
    22,766
    
    
    
    794,924
    
    
    
    
    
    
    
    1,106,736
    
    
    
    
    
    
    
    Total Avgold
    
    
    19,772
    
    
    
    11,514
    
    
    
    8,258
    
    
    
    1,157,020
    
    
    
    22,766
    
    
    
    1,179,786
    
    
    
    75,671
    
    
    
    1,107,911
    
    
    
    53,434
    
    
    
    228Kalgold operationsSurface
    
    
    31,532
    
    
    
    28,511
    
    
    
    3,021
    
    
    
    38,066
    
    
    
    
    
    
    
    38,066
    
    
    
    Information not allocated at shaft level

    
    
    
    4,405
    
    
    
    82,756
    
    
    
    1,530Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,509
    
    
    
    17,509
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Kalgold
    
    
    31,532
    
    
    
    28,511
    
    
    
    3,021
    
    
    
    38,066
    
    
    
    17,509
    
    
    
    55,575
    
    
    
    3,293
    
    
    
    4,405
    
    
    
    82,756
    
    
    
    1,530Other entities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    278,676
    
    
    
    278,676
    
    
    
    2,617
    
    
    
    1,278
    
    
    
    
    
    
    
    TOTAL SOUTH AFRICA
    
    
    1,144,845
    
    
    
    1,081,641
    
    
    
    63,204
    
    
    
    3,117,840
    
    
    
    1,179,982
    
    
    
    4,297,822
    
    
    
    1,335,436
    
    
    
    2,060,075
    
    
    
    2,977,339
    
    
    
    28,728AUSTRALASIAMt Magnet
    
    
    67,714
    
    
    
    58,202
    
    
    
    9,512
    
    
    
    122,297
    
    
    
    
    
    
    
    122,297
    
    
    
    50,794
    
    
    
    13,596
    
    
    
    173,228
    
    
    
    3,058South Kal
    
    
    46,651
    
    
    
    38,848
    
    
    
    7,803
    
    
    
    81,053
    
    
    
    
    
    
    
    81,053
    
    
    
    28,052
    
    
    
    5,435
    
    
    
    120,532
    
    
    
    1,843Papua New Guinea
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    211,671
    
    
    
    
    
    
    
    211,671
    
    
    
    1,222
    
    
    
    1,857
    
    
    
    
    
    
    
    Other entities
    
    
    17,103
    
    
    
    13,458
    
    
    
    3,645
    
    
    
    12,332
    
    
    
    100,353
    
    
    
    112,685
    
    
    
    73,026
    
    
    
    9,614
    
    
    
    44,528
    
    
    
    326TOTAL AUSTRALASIA
    
    
    131,468
    
    
    
    110,508
    
    
    
    20,960
    
    
    
    427,353
    
    
    
    100,353
    
    
    
    527,706
    
    
    
    153,094
    
    
    
    30,502
    
    
    
    338,288
    
    
    
    5,227TOTAL HARMONY
    
    
    1,276,313
    
    
    
    1,192,149
    
    
    
    84,164
    
    
    
    3,545,193
    
    
    
    1,280,335
    
    
    
    4,825,528
    
    
    
    1,488,530
    
    
    
    2,090,577
    
    
    
    3,315,627
    
    
    
    33,955Reconciliation of segment data to
consolidated financial statements
    
    
    (35,974
    )
    
    
    (23,785
    )
    
    
    (12,189
    )
    
    
    70,261
    
    
    
    (235,781
    )
    
    
    (163,705
    )
    
    
    194,213
    
    
    
    (1,964,093
    )
    
    
    (90,440
    )
    
    
    1,240,339
    
    
    
    1,168,364
    
    
    
    71,975
    
    
    
    3,615,454
    
    
    
    1,044,554
    
    
    
    4,661,823
    
    
    
    1,682,743
    
    
    
    126,484
    
    
    
    3,225,187
    
    
    
    33,955
 
 (*)
    
    Production statistics are unaudited F-65
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2003
 Cash
    
    
    
    
    
    
    
    
    
    
    
    
    
    OuncesProduction
    
    operating
    
    Mining
    
    Unallocated
    
    
    
    
    
    Total
    
    Capital
    
    gold
    
    ToneRevenue
    
    costs
    
    Profit/(loss)
    
    assets
    
    assets
    
    Total assets
    
    liabilities
    
    expenditure
    
    producer (*)
    
    milled (*)$000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    $000
    
    oz
    
    000SOUTH AFRICAFree State operationsQuality ouncesMasimong
    
    
    65,416
    
    
    
    48,458
    
    
    
    16,958
    
    
    
    40,138
    
    
    
    
    
    
    
    40,138
    
    
    
    Information not allocated at shaft level
    
    
    
    7,169
    
    
    
    195,607
    
    
    
    1,266Leveraged ouncesHarmony 2
    
    
    25,572
    
    
    
    17,521
    
    
    
    8,051
    
    
    
    1,573
    
    
    
    
    
    
    
    1,573
    
    
    
    
    
    
    
    46
    
    
    
    75,331
    
    
    
    586Harmony 4
    
    
    105
    
    
    
    496
    
    
    
    (391
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    290
    
    
    
    3Merriespruit 1
    
    
    18,474
    
    
    
    13,623
    
    
    
    4,851
    
    
    
    3,007
    
    
    
    
    
    
    
    3,007
    
    
    
    
    
    
    
    221
    
    
    
    55,044
    
    
    
    438Merriespruit 3
    
    
    23,982
    
    
    
    20,351
    
    
    
    3,631
    
    
    
    745
    
    
    
    
    
    
    
    745
    
    
    
    
    
    
    
    
    
    
    
    70,991
    
    
    
    718Unisel
    
    
    28,018
    
    
    
    23,277
    
    
    
    4,741
    
    
    
    17,023
    
    
    
    
    
    
    
    17,023
    
    
    
    Information not allocated at shaft level
    
    
    
    1,825
    
    
    
    82,147
    
    
    
    778Brand 3
    
    
    17,230
    
    
    
    15,195
    
    
    
    2,035
    
    
    
    5,992
    
    
    
    
    
    
    
    5,992
    
    
    
    
    
    
    
    
    
    
    
    50,896
    
    
    
    422Brand 5
    
    
    19,144
    
    
    
    20,573
    
    
    
    (1,429
    )
    
    
    2,611
    
    
    
    
    
    
    
    2,611
    
    
    
    
    
    
    
    39
    
    
    
    56,298
    
    
    
    507Virginia
    
    
    104
    
    
    
    251
    
    
    
    (147
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    290
    
    
    
    3Surface
    
    
    8,067
    
    
    
    6,550
    
    
    
    1,517
    
    
    
    51,017
    
    
    
    
    
    
    
    51,017
    
    
    
    
    
    
    
    4,364
    
    
    
    24,209
    
    
    
    1,164Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    59,896
    
    
    
    293,009
    
    
    
    352,905
    
    
    
    
    
    
    
    195
    
    
    
    
    
    
    
    Total Free State
    
    
    206,112
    
    
    
    166,295
    
    
    
    39,817
    
    
    
    182,002
    
    
    
    293,009
    
    
    
    475,011
    
    
    
    443,863
    
    
    
    13,859
    
    
    
    611,103
    
    
    
    5,885Evander operationsQuality ouncesEvander 2
    
    
    28,881
    
    
    
    20,373
    
    
    
    8,508
    
    
    
    10,286
    
    
    
    
    
    
    
    10,286
    
    
    
    
    
    
    
    459
    
    
    
    88,575
    
    
    
    522Evander 5
    
    
    16,293
    
    
    
    11,356
    
    
    
    4,937
    
    
    
    9,933
    
    
    
    
    
    
    
    9,933
    
    
    
    
    
    
    
    259
    
    
    
    49,769
    
    
    
    227Evander 7
    
    
    34,644
    
    
    
    22,518
    
    
    
    12,126
    
    
    
    28,649
    
    
    
    
    
    
    
    28,649
    
    
    
    
    
    
    
    4,044
    
    
    
    106,419
    
    
    
    566Evander 8
    
    
    30,123
    
    
    
    27,293
    
    
    
    2,830
    
    
    
    22,377
    
    
    
    
    
    
    
    22,377
    
    
    
    Information not allocated at shaft level
    
    
    
    3,977
    
    
    
    94,008
    
    
    
    676Leveraged ouncesEvander 9
    
    
    5,698
    
    
    
    4,660
    
    
    
    1,038
    
    
    
    154
    
    
    
    
    
    
    
    154
    
    
    
    Information not allocated at shaft level
    
    
    
    
    
    
    
    17,297
    
    
    
    153Surface
    
    
    1,278
    
    
    
    913
    
    
    
    365
    
    
    
    391
    
    
    
    
    
    
    
    391
    
    
    
    
    
    
    
    1,181
    
    
    
    4,116
    
    
    
    201Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,007
    
    
    
    13,173
    
    
    
    53,180
    
    
    
    
    
    
    
    887
    
    
    
    
    
    
    
    Total Evander
    
    
    116,917
    
    
    
    87,113
    
    
    
    29,804
    
    
    
    111,797
    
    
    
    13,173
    
    
    
    124,970
    
    
    
    38,993
    
    
    
    10,807
    
    
    
    360,184
    
    
    
    2,345
 F-66
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2003
 CashProduction
    
    
    operating
    
    
    Mining
    
    
    Unallocated
    
    
    
    
    
    
    Total
    
    
    Capital
    
    
    gold
    
    
    ToneRevenue
    
    
    costs
    
    
    Profit/(loss)
    
    
    assets
    
    
    assets
    
    
    Total assets
    
    
    liabilities
    
    
    expenditure
    
    
    producer (*)
    
    
    milled (*)$000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    $000
    
    
    oz
    
    
    000Randfontein operationsQuality ouncesCooke 1
    
    
    39,722
    
    
    
    23,017
    
    
    
    16,705
    
    
    
    12,738
    
    
    
    
    
    
    
    12,738
    
    
    
    
    
    
    
    
    
    
    
    20,819
    
    
    
    741Cooke 2
    
    
    38,255
    
    
    
    22,281
    
    
    
    15,974
    
    
    
    10,326
    
    
    
    
    
    
    
    10,326
    
    
    
    
    
    
    
    
    
    
    
    116,639
    
    
    
    790Cooke 3
    
    
    49,829
    
    
    
    35,766
    
    
    
    14,063
    
    
    
    10,257
    
    
    
    
    
    
    
    10,257
    
    
    
    Information not allocated at shaft level
    
    
    
    232
    
    
    
    151,553
    
    
    
    1,108Growth projectsDoornkop
    
    
    21,550
    
    
    
    15,126
    
    
    
    6,424
    
    
    
    5,836
    
    
    
    
    
    
    
    5,836
    
    
    
    Information not allocated at shaft level
    
    
    
    1,635
    
    
    
    65,906
    
    
    
    523Surface
    
    
    12,299
    
    
    
    7,995
    
    
    
    4,304
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,695
    
    
    
    36,973
    
    
    
    2,212Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    132,788
    
    
    
    52,413
    
    
    
    185,201
    
    
    
    
    
    
    
    468
    
    
    
    
    
    
    
    Total Randfontein
    
    
    161,655
    
    
    
    104,185
    
    
    
    57,470
    
    
    
    171,945
    
    
    
    52,413
    
    
    
    224,358
    
    
    
    74,129
    
    
    
    4,030
    
    
    
    491,890
    
    
    
    5,374Elandsrand operationsGrowth projectsElandsrand
    
    
    86,926
    
    
    
    69,864
    
    
    
    17,062
    
    
    
    124,182
    
    
    
    
    
    
    
    124,182
    
    
    
    
    
    
    
    12,757
    
    
    
    264,525
    
    
    
    1,468Leveraged ouncesDeelkraal
    
    
    27,520
    
    
    
    26,077
    
    
    
    1,443
    
    
    
    1,367
    
    
    
    
    
    
    
    1,367
    
    
    
    Information not allocated at shaft level
    
    
    
    2,070
    
    
    
    82,751
    
    
    
    598Surface
    
    
    6,442
    
    
    
    4,518
    
    
    
    1,924
    
    
    
    189
    
    
    
    
    
    
    
    189
    
    
    
    
    
    
    
    161
    
    
    
    19,323
    
    
    
    1,228Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    74,063
    
    
    
    74,063
    
    
    
    
    
    
    
    472
    
    
    
    
    
    
    
    Total Elandsrand
    
    
    120,888
    
    
    
    100,459
    
    
    
    20,429
    
    
    
    125,738
    
    
    
    74,063
    
    
    
    199,801
    
    
    
    24,962
    
    
    
    15,460
    
    
    
    366,599
    
    
    
    3,294Freegold operationsQuality ouncesTshepong
    
    
    69,776
    
    
    
    33,983
    
    
    
    35,793
    
    
    
    143,919
    
    
    
    
    
    
    
    143,919
    
    
    
    Information not allocated at shaft level
    
    
    
    2,228
    
    
    
    212,383
    
    
    
    917Leveraged ouncesBambanani
    
    
    61,681
    
    
    
    36,969
    
    
    
    24,712
    
    
    
    52,859
    
    
    
    
    
    
    
    52,859
    
    
    
    
    
    
    
    2,660
    
    
    
    186,629
    
    
    
    826Joel
    
    
    10,074
    
    
    
    8,792
    
    
    
    1,282
    
    
    
    650
    
    
    
    
    
    
    
    650
    
    
    
    
    
    
    
    
    
    
    
    30,827
    
    
    
    260Eland
    
    
    15,832
    
    
    
    9,508
    
    
    
    6,324
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    164
    
    
    
    47,835
    
    
    
    201Nyala
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,550
    
    
    
    
    
    
    
    2,550
    
    
    
    Information not allocated at shaft level
    
    
    
    Kudu/Sable
    
    
    5,513
    
    
    
    4,456
    
    
    
    1,057
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    194
    
    
    
    16,907
    
    
    
    105West Shaft
    
    
    4,313
    
    
    
    3,056
    
    
    
    1,257
    
    
    
    449
    
    
    
    
    
    
    
    449
    
    
    
    
    
    
    
    205
    
    
    
    13,017
    
    
    
    77St Helena
    
    
    8,050
    
    
    
    10,070
    
    
    
    (2,020
    )
    
    
    16,976
    
    
    
    
    
    
    
    16,976
    
    
    
    Information not allocated at shaft level
    
    
    
    8,240
    
    
    
    25,685
    
    
    
    203Surface
    
    
    14,462
    
    
    
    9,554
    
    
    
    4,908
    
    
    
    1,441
    
    
    
    
    
    
    
    1,441
    
    
    
    
    
    
    
    25
    
    
    
    44,432
    
    
    
    2,573Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,372
    
    
    
    53,418
    
    
    
    60,790
    
    
    
    
    
    
    
    23,624
    
    
    
    
    
    
    
    Total Freegold
    
    
    189,701
    
    
    
    116,388
    
    
    
    73,313
    
    
    
    226,216
    
    
    
    53,418
    
    
    
    279,634
    
    
    
    104,130
    
    
    
    37,340
    
    
    
    577,714
    
    
    
    5,162
 F-67
      Harmony Gold Mining Company Limited
Notes to the Consolidated Financial Statements
For the years ended June 30
 Year ended June 30, 2003
 CashProduction
    
    
    operating
    
    
    Mining
    
    
    Unallocated
    
    
    
    
    
    
    Total
    
    
    Capital
    
    
    gold
    
    
    ToneRevenue
    
    
    costs
    
    
    Profit/(loss)
    
    
    assets
    
    
    assets
    
    
    Total assets
    
    
    liabilities
    
    
    expenditure
    
    
    producer(*)
    
    
    milled (*)$'000
    
    
    $'000
    
    
    $'000
    
    
    $'000
    
    
    $'000
    
    
    $'000
    
    
    $'000
    
    
    $'000
    
    
    oz
    
    
    '000Kalgold operationsSurface
    
    
    24,536
    
    
    
    16,552
    
    
    
    7,984
    
    
    
    20,933
    
    
    
    
    
    
    
    20,933
    
    
    
    Information not allocated at shaft level
    
    
    
    4,265
    
    
    
    74,590
    
    
    
    1,195Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,453
    
    
    
    25,704
    
    
    
    27,157
    
    
    
    
    
    
    
    3,355
    
    
    
    
    
    
    
    Total Kalgold
    
    
    24,536
    
    
    
    16,552
    
    
    
    7,984
    
    
    
    22,386
    
    
    
    25,704
    
    
    
    48,090
    
    
    
    2,829
    
    
    
    7,620
    
    
    
    74,590
    
    
    
    1,195Other
entities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    165,793
    
    
    
    165,793
    
    
    
    1,941
    
    
    
    267
    
    
    
    
    
    
    
    TOTAL SOUTH AFRICA
    
    
    819,809
    
    
    
    590,992
    
    
    
    228,817
    
    
    
    840,084
    
    
    
    677,573
    
    
    
    1,517,657
    
    
    
    690,847
    
    
    
    89,383
    
    
    
    2,482,080
    
    
    
    23,255AUSTRALASIABig Bell
    
    
    42,922
    
    
    
    43,600
    
    
    
    (678
    )
    
    
    18,720
    
    
    
    4,489
    
    
    
    23,209
    
    
    
    26,513
    
    
    
    1,080
    
    
    
    132,579
    
    
    
    2,147Mt Magnet
    
    
    61,676
    
    
    
    40,908
    
    
    
    20,768
    
    
    
    124,044
    
    
    
    4,728
    
    
    
    128,772
    
    
    
    100,740
    
    
    
    14,870
    
    
    
    182,690
    
    
    
    2,922South Kal
    
    
    57,372
    
    
    
    47,451
    
    
    
    9,921
    
    
    
    73,444
    
    
    
    7,053
    
    
    
    80,497
    
    
    
    85,227
    
    
    
    6,299
    
    
    
    182,851
    
    
    
    2,749Abelle
    
    
    3,381
    
    
    
    2,145
    
    
    
    1,236
    
    
    
    157,510
    
    
    
    (88,263
    )
    
    
    69,247
    
    
    
    50,411
    
    
    
    123,575
    
    
    
    11,534
    
    
    
    65Other entities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,733
    
    
    
    150,774
    
    
    
    197,507
    
    
    
    (97,231
    )
    
    
    11,276
    
    
    
    
    
    
    
    TOTAL AUSTRALASIA
    
    
    165,351
    
    
    
    134,104
    
    
    
    31,247
    
    
    
    420,451
    
    
    
    78,781
    
    
    
    499,232
    
    
    
    165,660
    
    
    
    157,100
    
    
    
    509,654
    
    
    
    7,883TOTAL HARMONY
    
    
    985,160
    
    
    
    725,096
    
    
    
    260,064
    
    
    
    1,260,535
    
    
    
    756,354
    
    
    
    2,016,889
    
    
    
    856,507
    
    
    
    246,483
    
    
    
    2,991,734
    
    
    
    31,138Reconciliation of segment data
to consolidated financial
statements

    
    
    (203,368
    )
    
    
    (125,350
    )
    
    
    (78,018
    )
    
    
    (277,553
    )
    
    
    159,502
    
    
    
    (118,051
    )
    
    
    (54,417
    )
    
    
    (37,341
    )
    
    
    (625,618
    )
    
    
    (5,162
    )781,792
    
    
    
    599,746
    
    
    
    182,046
    
    
    
    982,982
    
    
    
    915,856
    
    
    
    1,898,838
    
    
    
    802,090
    
    
    
    209,142
    
    
    
    2,366,116
    
    
    
    25,976
 
 (*)
    
    Production statistics are unaudited F-68
      Harmony Gold Mining Company Limited
 Notes to the Consolidated Financial Statements
 For the years ended June 30
Notes to the reconciliation of segment data to the consolidated financial statements
 (a) Reversal of proportionate consolidation
  (b) Exploration costs
  (c) Business
combinations  goodwill
  (d) Business combinations  acquisition date
  (e) Business combinations  purchase price
  (f) Reversal of previously recognized impairments
  (g) Provision for environmental rehabilitation
 F-69
      (i) Method of recognition
  (ii) Amortization of rehabilitation asset
  iii) Revisions to the asset retirement obligation
   (h) Share-based compensation
  F-70
      REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED We have audited the accompanying balance sheets of the ARMGold/Harmony
Freegold Joint Venture (Pty) Limited and its
subsidiaries (the Company) as of June 30, 2003 and 2002, and the related
consolidated statements of income, cash
flows and of changes in shareholders equity for year ended June 30, 2003 and
the six-month period ended 30 June, 2002.
These financial statements are the responsibility of the Companys management.
Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the
amounts and disclosures included in the annual financial statements. An audit
also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statements
presentation. We believe that our audits provides a reasonable basis for our
opinion. In our opinion, the financial statements, referred to above, present fairly, in
all material respects, the financial position of
the Company as at June 30, 2003 and 2002, and the results of their operations
and their cash flows for the year ended
June 30, 2003 and the six-month period ended June 30, 2002, in conformity with
South African Standards of Generally
Accepted Accounting Practice, and in the manner required by the Companies Act
in South Africa. South African Standards of Generally Accepted Accounting Practice vary in
certain significant respects from accounting
principles generally accepted in the United States of America. The application
of the latter would have affected the
determination of the consolidated net income for the year ended June 30, 2003
and the six-month period ended June 30,
2002 and the determination of the shareholders equity at June 30, 2003 and
2002 to the extent summarized in Note 29 to
the financial statements. /S/PRICEWATERHOUSECOOPERS INC. Registered Accountants and AuditorsChartered Accountants (SA)Johannesburg, Republic of South AfricaDecember 12, 2003
 F73
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED INCOME STATEMENT FOR THE THREE MONTH PERIOD
ENDED SEPTEMBER 30, 2003, YEAR ENDED JUNE
30, 2003 AND THE SIX MONTH PERIOD ENDED JUNE 30, 2002 3 months to30 September 2003
    
    12 months
    
    6 months(unaudited)
    
    30 June 2003
    
    30 June 2002Notes
    
    R000
    
    R000
    
    R000Revenue
    
    
    
    
    
    
    745,007
    
    
    
    3,464,045
    
    
    
    1,835,945Cash operating costs
    
    
    4
    
    
    
    (579,534
    )
    
    
    (2,125,466
    )
    
    
    ( 863,262
    )Cash operating income
    
    
    
    
    
    
    165,473
    
    
    
    1,338,579
    
    
    
    972,683Interest received
    
    
    5
    
    
    
    37,638
    
    
    
    217,792
    
    
    
    37,512Profit on sale of property
    
    
    
    
    
    
    5,731
    
    
    
    39,965
    
    
    
    2,256Interest paid
    
    
    6
    
    
    
    (45,917
    )
    
    
    ( 205,842
    )
    
    
    (105,002
    )Other
expenses
    
    
    
    
    
    
    38
    
    
    
    
    
    
    
    Cash income
    
    
    
    
    
    
    162,887
    
    
    
    1,390,494
    
    
    
    907,449Depreciation and amortization
    
    
    
    
    
    
    (32,949
    )
    
    
    (139,186
    )
    
    
    ( 60,426
    )Ongoing rehabilitation expenses
    
    
    
    
    
    
    (6,723
    )
    
    
    (16,932
    )
    
    
    ( 20,000
    )Restructuring and employment termination costs
    
    
    
    
    
    
    (12,157
    )
    
    
    
    
    
    
    Reversal of provision for rehabilitation
    
    
    
    
    
    
    
    
    
    
    5,495
    
    
    
    Provision for post retirement benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ( 2,226
    )Income before tax
    
    
    7
    
    
    
    111,058
    
    
    
    1,239,871
    
    
    
    824,797Taxation
    
    
    8
    
    
    
    (31,021
    )
    
    
    ( 328,369
    )
    
    
    ( 271,680
    )Net income for the period
    
    
    
    
    
    
    80,037
    
    
    
    911,502
    
    
    
    553,117
 F74
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED BALANCE SHEET AS AT JUNE 30, 2003 AND 2002 2003
    
    2002Notes
    
    R000
    
    R000ASSETSNon-current assetsProperty, plant and equipment
    
    
    9
    
    
    
    2,829,594
    
    
    
    2,698,021Investments
    
    
    10
    
    
    
    554,720
    
    
    
    458,647Investments in subsidiaries and group companies
    
    
    11
    
    
    
    2
    
    
    
    Restricted cash
    
    
    14
    
    
    
    89,435
    
    
    
    Total non-current assets
    
    
    
    
    
    
    3,473,751
    
    
    
    3,156,668Current assetsInventories
    
    
    12
    
    
    
    19,765
    
    
    
    15,744Receivables
    
    
    13
    
    
    
    214,962
    
    
    
    118,957Cash and cash equivalents
    
    
    14
    
    
    
    445,810
    
    
    
    1,006,529Total current assets
    
    
    
    
    
    
    680,537
    
    
    
    1,141,230Total assets
    
    
    
    
    
    
    4,154,288
    
    
    
    4,297,898EQUITY AND LIABILITIESShareholders equityShare capital issued
    
    
    15
    
    
    
    20
    
    
    
    20Retained earnings
    
    
    
    
    
    
    1,164,619
    
    
    
    553,117Total shareholders equity
    
    
    
    
    
    
    1,164,639
    
    
    
    553,137Non-current liabilitiesLong term loans
    
    
    16
    
    
    
    1,765,699
    
    
    
    2,112,338Provision for environmental rehabilitation
    
    
    17
    
    
    
    319,959
    
    
    
    267,277Provision for post-retirement benefits
    
    
    18
    
    
    
    2,226
    
    
    
    2,226Deferred tax liability
    
    
    8
    
    
    
    614,216
    
    
    
    333,662Total non-current liabilities
    
    
    
    
    
    
    2,702,100
    
    
    
    2,715,503Current liabilitiesAccounts payable and accrued liabilities
    
    
    19
    
    
    
    244,080
    
    
    
    1,020,627Income and mining tax payable
    
    
    8
    
    
    
    43,469
    
    
    
    8,631Total current liabilities
    
    
    
    
    
    
    287,549
    
    
    
    1,029,258Total equity and liabilities
    
    
    
    
    
    
    4,154,288
    
    
    
    4,297,898
 F75
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED STATEMENT OF SHAREHOLDERS EQUITY FOR THE YEAR ENDED JUNE
30, 2003 AND THE SIX MONTH PERIOD ENDED JUNE 30, 2002 RetainedNumber of
    
    Capital
    
    Earnings
    
    Totalshares
    
    R000
    
    R000
    
    R000Balance at January 1, 2002
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Shares issued
    
    
    20,000
    
    
    
    20
    
    
    
    
    
    
    
    20Net income for the period
    
    
    
    
    
    
    
    
    
    
    553,117
    
    
    
    553,117Balance at June 30, 2002
    
    
    20,000
    
    
    
    20
    
    
    
    553,117
    
    
    
    553,137Net income for the period
    
    
    
    
    
    
    
    
    
    
    911,502
    
    
    
    911,502Dividends paid
    
    
    
    
    
    
    
    
    
    
    (300,000
    )
    
    
    (300,000
    )Balance at June 30, 2003
    
    
    20,000
    
    
    
    20
    
    
    
    1,164,619
    
    
    
    1,164,639
 F76
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED STATEMENT OF CASH FLOWS FOR THE THREE MONTH PERIOD
ENDED SEPTEMBER 30, 2003, YEAR ENDED JUNE 30, 2003 AND THE SIX MONTH PERIOD ENDED JUNE 30, 2002 3 months
    
    12 months
    
    6 months30 September 2003
    
    30 June 2003
    
    30 June 2002Notes
    
    R000
    
    R000
    
    R000(Unaudited)Cash flow
from operationsCash
received from customers
    
    
    
    
    
    
    738,433
    
    
    
    3,462,307
    
    
    
    1,822,898Less: payments made to suppliers and employees
    
    
    
    
    
    
    541,424
    
    
    
    2,339,185
    
    
    
    753,340Cash generated from operations
    
    
    23
    
    
    
    197,009
    
    
    
    1,123,122
    
    
    
    1,069,558Interest received
    
    
    
    
    
    
    37,638
    
    
    
    156,290
    
    
    
    37,512Interest paid
    
    
    
    
    
    
    (33,438
    )
    
    
    (157,123
    )
    
    
    (56,535
    )Taxation paid
    
    
    
    
    
    
    
    
    
    
    (8,631
    )
    
    
    Net cash provided by operations
    
    
    
    
    
    
    201,209
    
    
    
    1,113,658
    
    
    
    1,050,535Cash flow from investing activitiesAcquisition of business
    
    
    24
    
    
    
    
    
    
    
    (120,000
    )
    
    
    (1,800,000
    )Proceed on disposal of mining assets
    
    
    
    
    
    
    9,315
    
    
    
    55,259
    
    
    
    2,507Additions to property, plant and equipment
    
    
    
    
    
    
    (61,034
    )
    
    
    (141,948
    )
    
    
    (31,724
    )Cost of acquisitions capitalized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (32
    )Loans to subsidiaries
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    Unlisted
investments acquired
    
    
    
    
    
    
    (1,599
    )Amounts invested in environmental trusts
    
    
    
    
    
    
    
    
    
    
    (71
    )
    
    
    (14,777
    )Net cash utilized in investing activities
    
    
    
    
    
    
    (53,318
    )
    
    
    (206,762
    )
    
    
    (1,844,026
    )Cash flow from financing activities(Decrease)/Increase in amounts due to holding companies
    
    
    
    
    
    
    32,739
    
    
    
    (391,303
    )
    
    
    1,800,000Decrease in other borrowings
    
    
    
    
    
    
    (481
    )
    
    
    (686,877
    )
    
    
    Ordinary shares issued-net of expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Dividends paid
    
    
    
    
    
    
    
    
    
    
    (300,000
    )
    
    
    Net cash generated by financing activities
    
    
    
    
    
    
    32,258
    
    
    
    (1,378,180
    )
    
    
    1,800,020Net increase in cash and cash equivalents
    
    
    
    
    
    
    180,149
    
    
    
    (471,284
    )
    
    
    1,006,529Cash and
cash equivalents - beginning of period
    
    
    
    
    
    
    535,245
    
    
    
    1,006,529
    
    
    
    Cash and
cash equivalents - end of period
    
    
    14
    
    
    
    715,394
    
    
    
    535,245
    
    
    
    1,006,529
 F77
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED NOTES TO THE FINANCIAL STATEMENTS  1.
    
    NATURE OF OPERATIONS The ARMgold/Harmony Freegold Joint Venture (Pty) Limited (Free Gold)
operates in the gold mining industry in South
Africa. Gold bullion, the Companys principal product, is produced at its
operations and sold in South Africa and
internationally.  2.
    
    FUNCTIONAL CURRENCY The
functional currency of the Company is the South African Rand.  3.
    
    SIGNIFICANT ACCOUNTING POLICIES3.1
    
    BASIS OF PREPARATION The financial statements are prepared on the historical cost basis except
for certain financial instruments, which are
carried at fair value. The accounting policies as set out below have been
consistently applied, and comply with South
African Statements of Generally Accepted Accounting Practice (SA GAAP)
and the South African Companies Act.  3.2
    
    USE OF ESTIMATES The preparation of the financial statements in conformity with SA GAAP
requires the Companys management to make
estimates and assumptions that effect the reported amounts of assets and
liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the
reporting period. Significant estimates used by management include the
valuation and amortization of long lived assets
as well as estimates of exposure and liabilities with regard to
rehabilitation costs, employee benefit liabilities and
taxation. Actual results could differ from those estimates.  3.3
    
    FINANCIAL INSTRUMENTS Financial instruments are initially measured at cost including transaction
costs. Subsequent to initial recognition, these
instruments are measured as set out below. Financial instruments carried
on the balance sheet include cash and bank
balances, money market instruments, investments, receivables, trade
creditors and borrowings.  3.4
    
    CASH AND CASH EQUIVALENTS Cash and cash equivalents are defined as cash on hand, deposits held at
call with banks and short-term highly liquid
investments with insignificant interest rate risk and original maturities
of three months or less. Cash and cash
equivalents are measured at fair value.  3.5
    
    INVESTMENTS Listed investments Investments in listed companies are carried at market value. Market value
is calculated by reference to stock exchange
quoted selling prices at the close of business on the balance sheet date.
Movement in the carrying amount of trading
securities are charged to the income statement. On disposal of an
investment, the difference between the net disposal
proceeds and the carrying amount is charged to the income
statement. Unlisted investments Unlisted investments are reflected at fair value, or cost, where fair
value cannot reliably be measured. Fair value is
based on directors valuation. If the directors are of the opinion that
there has been a permanent impairment in the
value of any of these investments, they are written down and recognized as
an expense in the period in which the
diminution is determined to have taken place. F78
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED NOTES TO THE FINANCIAL STATEMENTS  3.6
    
    INVENTORIES Inventories, which include gold in process and supplies, are stated at
lower of cost or net realizable value after
appropriate allowances for redundant and slow-moving items. Stores and materials consist of consumable stores and are valued at
average cost after appropriate provision for
redundant and slow moving items. Bullion on hand and gold in process represents production on hand after
the smelting process. It is valued using the
weighted average cost method. Costs include production, amortization and
related administration costs. Net realizable value is the estimated selling price in the ordinary course
of business less the estimated cost of completion
and the estimated cost necessary to make the sale.  3.7
    
    RECEIVABLES Accounts receivable are stated at the gross invoice value, adjusted for
payments received and an allowance for doubtful
debts, where appropriate, to reflect the fair value of the anticipated
realizable value. Bad debts are written off during the
period in which they are identified.  3.8
    
    ACCOUNTS PAYABLE Accounts payable are stated at cost, adjusted for payments made to reflect
the value of the anticipated economic outflow
of resources.  3.9
    
    BORROWINGS Borrowings are recognized at amortized cost, comprising original debt less
principal payments and amortizations. Interest-free loans are shown at cost, as no fair value can be determined
due to the fact that no interest is charged and
there are no fixed terms for repayment.  3.10
    
    EXPLORATION COSTS Exploration costs are expensed as incurred. When a decision is taken that
a mining property is capable of commercial
production, all further pre-production expenditure is capitalized. Costs
related to property acquisitions and mineral and
surface rights are capitalized. Where the directors consider that there is
little likelihood of the properties or rights being
exploited or the value of the exploration rights have diminished below
cost, a write down is effected against exploration
expenditure.  3.11
    
    PROPERTY, PLANT AND EQUIPMENT(a)
    
    Mining assets Mining assets, including mine development costs and mine plant facilities
are initially recorded at cost, whereafter it is
recorded at cost less accumulated amortization and impairment. Costs
include pre-production expenditure incurred in the
development of the mine and the present value of future decommissioning
costs. Interest on borrowings to specifically
finance the establishment of mining assets is capitalized until commercial
levels of production are achieved. Development
costs incurred to evaluate and develop new orebodies, to define
mineralization in existing orebodies to establish or
expand productive capacity are capitalised. Mine development costs in the
ordinary course to maintain production are
expensed as incurred. Initial development and pre-production costs
relating to a new orebody are capitalized until the
orebody achieves commercial levels of production at which time the costs
are amortized as set out below. F79
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED NOTES TO THE FINANCIAL STATEMENTS  3.11
    
    PROPERTY, PLANT AND EQUIPMENT (Continued) (b) Non-mining fixed assets Land is shown at cost and not depreciated. Buildings and other non-mining
fixed assets are shown at cost less
accumulated depreciation. (c) Depreciation and amortization Depreciation and amortization of mineral property interests, mineral and
surface rights, mine development costs and
mine plant facilities are computed principally by the units-of-production
method based on the estimated proven and
probable ore reserves. Proven and probable ore reserves reflect estimated
quantities of economically recoverable
reserves which can be recovered in the future from known mineral
deposits. Amortization is first charged on mining ventures from the date on which
the mining ventures reaches commercial
production quantities. (d) Impairment The recoverability of the carrying value of the long term assets of the
Company, which include development costs, are
annually compared to the net book value of the assets, or whenever events
or change in circumstances indicate that the
net book value may not be recoverable. The recoverable amount is the
higher of value in use and net selling price. In
assessing the value in use, the expected future cash flows from the asset
is determined by applying a discount rate to
the anticipated pre-tax future cash flows. The discount rate used is the
Companys weighted average cost of capital as
determined by the Capital Asset Pricing Model. An impairment is recognized
in the income statement whenever the
carrying amount of the asset exceeds its recoverable amount, to the extent
that the carrying amount exceeds the assets
recoverable amount. The revised carrying amounts are amortized in line
with the Companys accounting policies. A previously recognized impairment loss is reversed if the recoverable
amount increases as a result of a change in the
estimates used to determine the recoverable amount. This reversal is
recognized in the income statement and is limited
to the carrying amount that would have been determined, net of
amortization, had no impairment loss been recognized
in prior years. The estimates of future discounted cash flows are subject to risk and
uncertainties including the future gold price and
exchange rates. It is therefore reasonably possible that changes could
occur which may affect the recoverability of
mining assets.  3.12
    
    ENVIRONMENTAL OBLIGATIONS Estimated long-term environmental obligations, comprising pollution
control, rehabilitation and mine closure, are based
on the Companys environmental management plans in compliance with current
technological, environmental and
regulatory requirements. The net present value of future rehabilitation cost estimates are
recognized and provided for in full in the financial
statements. The estimates are reviewed annually and are discounted using
rates that reflect the time value of money. Annual changes in the provision consist of finance cost relating to the
change in the present value of the provision and
inflationary increases in the provision estimate, as well as changes in
estimates. The present value of environmental
disturbances created are capitalized to mining assets against an increase
in the rehabilitation provision. The
rehabilitation asset is amortized as noted in the Companys accounting
policy. F80
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED NOTES TO THE FINANCIAL STATEMENTS  3.12
    
    ENVIRONMENTAL OBLIGATIONS (Continued) Rehabilitation projects undertaken, included in the estimates are charged
to the provision as incurred. The cost of
ongoing current programmes to prevent and control pollution is charged
against income as incurred.  3.13
    
    ENVIRONMENTAL TRUST FUNDS Annual contributions are made to the Companys trust funds, created in
accordance with statutory requirements, to fund
the estimated cost of pollution control, rehabilitation and mine closure
at the end of the life of the companys mines.
Contributions are determined on the basis of the estimated environmental
obligation over the life of the mine. Income
earned on monies paid to environmental trust funds is accounted for as
investment income. The funds contributed to
the trust plus growth in the trust funds are included under investments on
the balance sheet.  3.14
    
    PROVISIONS Provision are recognized when the Company has a present legal or
constructive obligation as a result of past events
where it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation,
and a reliable estimate of the amount of the obligation can be
made.  3.15
    
    DEFERRED TAXATION The Company follows the comprehensive liability method of accounting for
deferred tax using the balance sheet
approach. Under this method, deferred income and mining taxes are
recognized for the tax consequences of temporary
differences by applying expected tax rates to the differences between the
tax base of certain assets or liabilities and its
balance sheet carrying amount. Deferred tax is charged to the income
statement except to the extent that it relates to a
transaction that is recognized directly in equity, or a business
combination that is an acquisition. The effect on deferred
tax of any change in tax rates is recognized in the income statement,
except to the extent that it relates to items
previously charged or credited directly to equity. The principal temporary differences arise from amortization and
depreciation on property, plant and equipment,
provisions, post-retirement benefits and tax losses carried forward.
Deferred tax assets relating to the carry forward of
unused tax losses are recognized to the extent that it is probable that
future taxable profit will be available against which
the unused tax losses can be utilized.  3.16
    
    PENSION PLANS AND OTHER EMPLOYEE BENEFITS (a) Pension plans Pension plans are funded through annual contributions. The Companys
contributions to the defined contribution
pension plans are charged to the income statement in the period to which
they relate. The Companys liability is limited
to its annually determined contributions. (b) Medical plans The Company provides medical cover to current employees through several
fundss. The medical accounting costs for
the defined benefit plan are assessed using the projected unit credit
method. The health care obligation is measured as
the present value of the estimated future cash outflows using market
yields consistent with the term and risks of the
obligation. Actuarial gains and losses as a result of these valuations are
recognized in the income statement. F81
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED NOTES TO THE FINANCIAL STATEMENTS  3.17
    
    FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are converted at the rates of exchange
ruling at the date of these transactions.
Monetary assets and liabilities denominated in foreign currencies are
translated at rates of exchange ruling at balance
sheet date. Gains and losses and costs associated with foreign currency
transactions are recognised in the income
statement in the period to which they relate. These transactions are
included in the determination of other income  net.  3.18
    
    REVENUE RECOGNITION (a) Revenue Revenue represents gold sales and is recognized when the risks and rewards
of ownership has passed to the buyer
with delivery from the refinery. Sales revenue excludes value-added tax
but includes the net profit and losses arising
from financial derivatives that meet the definition of a normal sale to
the extent that they relate to that metal and have
been matched at the date of the financial statements. (b) Interest income Interest is recognized on a time proportion basis, taking into account the
principal outstanding and the effective rate
over the period to maturity, when it is determined that such income will
accrue to the Company.  3.19
    
    DIVIDENDS DECLARED Dividends
paid are recognized when declared by the Board of directors.  3.20
    
    COMPARATIVES Comparative figures are for the 6 months ended June 30, 2002, as the
Company was operating from effective January 1,
2002. Where necessary the comparative figures have been adjusted to
conform with changes in presentation in the
current year. Unaudited
income statement information has been provided for the period from
July 1, 2003 through September 30, 2003, the effective date
in which the remaining 50% interest in the Company was acquired by
Harmony Goldmining Company Limited.  4.
    
    CASH OPERATING COSTS 3 months to30 September 2003

    12 months
    
    6 months(unaudited)

    30 June 2003
    
    30 June 2002R000

    R000
    
    R000Cash operating costs include mine
production, transport and refinery costs, movement in inventories and
ore stockpiles. These costs, analyzed by nature, consist of the
following:Labour costs, including
contractors
    

371,008


    
    1,279,957
    
    
    
    266,108Stores and materials
    

143,477


    
    538,651
    
    
    
    103,179Water and electricity
    

83,355


    
    255,088
    
    
    
    57,698Changes in inventory
    

(1,786
)

    
    (4,138
    )
    
    
    (11,818
    )Other
    

(16,520
)

    
    55,908
    
    
    
    448,095579,534


    
    2,125,466
    
    
    
    863,2625.
  INTEREST RECEIVEDBank and call accounts
    

17,302


    
    156,033
    
    
    
    17,650AngloGold
    




    
    204
    
    
    
    4,929Rehabilitation funds
    

20,246


    
    61,502
    
    
    
    14,777Other
    

90


    
    53
    
    
    
    15637,638


    
    217,792
    
    
    
    37,512
 F82
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 6. INTEREST PAID 3 months to
    
12 months
    
    6 months30 September 2003
    
    30 June 2003
    
    30 June 2002(unaudited)R000
    
    R000
    
    R000Loans - shareholders
    

32,738

    
    
    157,019
    
    
    
    29,080Loan - Anglo
    

12,479

    
    
    43,224
    
    
    
    75,922Interest portion of rehabilitation provision accretion
    



    
    
    5,495
    
    
    
    Other
    

700

    
    
    104
    
    
    
    45,917

    
    
    205,842
    
    
    
    105,0027. INCOME BEFORE TAXThe following have been included in income before tax:Auditors remuneration
    



    
    
    1,116
    
    
    
    650Fees - current year
    



    
    
    1,116
    
    
    
    6508. TAXATIONCurrent income and mining taxes
    

2,099

    
    
    43,469
    
    
    
    8,631Deferred income and mining taxes
    

28,922

    
    
    284,900
    
    
    
    263,049Total income and mining taxes expense
    

31,021

    
    
    328,369
    
    
    
    271,680Mining tax on mining income is determined on a formula basis which takes
into account the profit and revenue from mining operations during the year.
Non-mining income is taxed at a standard rate. Deferred tax is provided at the
estimated effective mining tax rate for temporary differences. Major items
causing the Companys income tax to differ from the estimated effective
mining rate of 30%(2002: 30%) were:Income before tax at estimated mining statutory rate
    

51,087

    
    
    570,341
    
    
    
    379,407Non-taxable income/additional deductions
    

(2,144
)
    
    
    (117,986
    )
    
    
    25,264Rate adjustment to reflect estimated effective mining tax rate
    

(17,040
)
    
    
    (114,833
    )
    
    
    (131,172
    )Difference between non-mining tax rate and estimated mining statutory rate on
non-mining income
    

(881
)
    
    
    (9,153
    )
    
    
    (1,819
    )Income and mining tax expense
    
    
    31,021
    
    
    
    328,369
    
    
    
    271,680Deferred income and mining tax liabilities and assets on the balance sheet on
30 June 2003, relate to the following:Deferred income and mining tax liabilitiesDepreciation and amortization
    

    820,688
    
    
    
    812,072
    
    
    
    768,152Product inventory not taxed
    

    4,787
    
    
    
    4,787
    
    
    
    3,546Gross deferred income and mining tax liability

    
    
    825,475
    
    
    
    816,859
    
    
    
    771,698
 F-83
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 8. TAXATION (Continued) 3 months to30 September
2003(unaudited)
    
    12 months to30 June 2003
    
    6 months to30 June 2002R000
    
    R000
    
    R000Net deferred income and mining tax assets
    
    
    (181,117
    )
    
    
    (193,058
    )
    
    
    (443,670
    )Unredeemed capital expenditure
    
    
    (210,000
    )
    
    
    (225,563
    )
    
    
    (446,868
    )Provisions, including rehabilitation accruals
    
    
    28,883
    
    
    
    32,505
    
    
    
    3,198Net deferred income and mining tax liabilities/(assets)
    
    
    644,358
    
    
    
    623,801
    
    
    
    327,988Short-term portion included
    
    
    11,377
    
    
    
    9,585
    
    
    
    (5,674
    )632,981
    
    
    
    614,216
    
    
    
    333,662Reconciliation of the movement for the period:Opening balance
    
    
    623,801
    
    
    
    327,988
    
    
    
    Property, plant and equipment
    
    
    8,616
    
    
    
    43,920
    
    
    
    768,152Inventory
    
    
    
    
    
    
    1,241
    
    
    
    3,546Unredeemed capital expenditure
    
    
    15,563
    
    
    
    221,305
    
    
    
    (446,868
    )Provisions
    
    
    (3,622
    )
    
    
    29,347
    
    
    
    3,158Closing balance
    
    
    644,358
    
    
    
    623,801
    
    
    
    327,988As at June 30, 2003, the Company has unredeemed capital expenditure of R752
million (2002 - R 1,489 million) available for deduction against future mining
income. These future deductions are utilizable against mining income
generated only from the Companys current mining operations and does not
expire unless the Company ceases to trade for a period longer than one year.Current mining and non-mining tax liabilityCurrent year
    
    
    45,567
    
    
    
    43,469
    
    
    
    8,631Due to South African Revenue Services
    
    
    45,567
    
    
    
    43,469
    
    
    
    8,6319. PROPERTY, PLANT AND EQUIPMENTMining properties, mine development costs
and mine plant facilitiesCost at beginning of the year
    
    
    
    
    
    
    2,758,447
    
    
    
    Acquired through the purchase of businesses
    
    
    
    
    
    
    145,189
    
    
    
    2,726,974Additions
    
    
    
    
    
    
    132,348
    
    
    
    31,724Disposals
    
    
    
    
    
    
    (6,778
    )
    
    
    (251
    )3,029,206
    
    
    
    2,758,447Accumulated depreciation and amortization at beginning of period
    
    
    
    
    
    
    60,426
    
    
    
    Charge for the period
    
    
    
    
    
    
    139,186
    
    
    
    60,426199,612
    
    
    
    60,426Net book value
    
    
    
    
    
    
    2,829,594
    
    
    
    2,698,021
 F-84
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 9.  PROPERTY, PLANT AND EQUIPMENT (Continued) 2003
    
    2002R000
    
    R000Mining properties, mine development costs and mine plant facilitiesAn amount of R 1 billion has been guaranteed to BoE Merchant Bank and
Harmony Gold Mining Company Ltd in equal portion. This is collateralized
by certain of the assets, including all moveable assets. See note 26 below.10. NON-CURRENT INVESTMENTSAmounts contributed to environmental trust funds
    
    
    
    
    
    
    554,720
    
    
    
    458,647The environmental trust funds are irrevocable trusts under the Companys
control. The monies in the trusts are invested in interest bearing short-term
investments and listed investments and approximate their fair value.11. INVESTMENTS IN SUBSIDIARIES AND GROUP COMPANIESInterestShares
    
    
    %Jeanette Gold Mines Ltd
    
    
    100
    
    
    
    
    
    
    
    (Amount smaller than R 1,000)LoansJeanette Gold Mines Ltd
    
    
    
    
    
    
    2
    
    
    
    12. INVENTORIESGold in-process
    
    
    
    
    
    
    15,956
    
    
    
    11,816Stores and material at average cost
    
    
    
    
    
    
    3,809
    
    
    
    3,92819,765
    
    
    
    15,74413. RECEIVABLESValue added tax
    
    
    
    
    
    
    12,460
    
    
    
    41,163Trade receivables
    
    
    
    
    
    
    16,959
    
    
    
    14,558Metals on consignment
    
    
    
    
    
    
    52,320
    
    
    
    40,239Prepayments
    
    
    
    
    
    
    95
    
    
    
    4,324Interest
    
    
    
    
    
    
    7,771
    
    
    
    4,708Payroll debtors
    
    
    
    
    
    
    11,953
    
    
    
    3,054Anglo Gold  current account
    
    
    
    
    
    
    71,217
    
    
    
    2,027Other
    
    
    
    
    
    
    42,187
    
    
    
    8,884214,962
    
    
    
    118,957
 F-85
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 14. CASH AND CASH EQUIVALENTS 2003
    
    2002R000
    
    R000Cash and cash equivalents
    
    
    445,810
    
    
    
    1,006,529A balance of R 377 million (June 2002 - R 254 million) has been pledged to BoE
Merchant Bank in terms of debt guarantee agreements between the Company
and BoE Merchant Bank.Restricted cash balance
    
    
    89,435
    
    
    
    Under agreement with BoE Merchant Bank, certain of the Companys cash
resources are restricted for specific use. This restriction will apply until the
date that Freegold obtains full title to all mining and lease rights and obtains
the permanent mining authorization.R 48,4 million of the restricted cash is pledged to the Department of Minerals
and Energy.Total cash and cash equivalents
    
    
    535,245
    
    
    
    1,006,52915. SHARE CAPITALShare capitalAuthorized100,000 ordinary shares of R 1.00 each
    
    
    100
    
    
    
    100Issued20,000 ordinary shares of R1.00 eachBalance at beginning of period
    
    
    20
    
    
    
    Issued during the period
    
    
    
    
    
    
    20Balance at end of period
    
    
    20
    
    
    
    2016. BORROWINGSLong-term borrowingsUncollateralizedLoans from shareholdersARMGold Limited
    
    
    718,889
    
    
    
    914,540Harmony Gold Mining Company Limited
    
    
    718,888
    
    
    
    914,5401,437,777
    
    
    
    1,829,080One billion rand of the loans bear interest at a rate of 15,48845%. No interest is
charged on the balance. There is no schedule for repayments on the loans.Other loansGold Fields Limited
    
    
    8,206
    
    
    
    Less: Short-term portion
    
    
    (2,578
    )
    
    
    5,628
    
    
    
    
 F-86
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 16. BORROWINGS (Continued) 2003
    
    2002R000
    
    R000Long-term borrowings (Continued)Uncollateralized (Continued)Other loans (Continued)On July 1, 2002, Free Gold entered into an agreement with Goldfields to
purchase its St Helena operations as a going concern for R 129      million. R 120
million was payable on October 29, 2002 and Free Gold acquired the St Helena
operations assets and liabilities effective October 30, 2002. The balance of the
consideration is the Net Smelter Revenue, which is 1% of the revenue received
from the sale of gold produced by the St Helena operations for 48 months after
the effective date. The payments are to be made monthly in arrears within 10
days after the end of each calendar month.Total uncollateralized long-term borrowings
    
    
    1,443,405
    
    
    
    1,829,080CollateralizedAngloGold
    
    
    322,294
    
    
    
    964,707Less: short-term portion
    
    
    
    
    
    
    ( 681,449
    )Total collateralized long-term borrowings
    
    
    322,294
    
    
    
    283,258Total long-term borrowings
    
    
    1,765,699
    
    
    
    2,112,338
 On December 24, 2001, Free Gold entered into an agreement with AngloGold
Limited to purchase its Free Gold assets for R 2,741 million which comprised of
a cash payment of 1,800 million, R259 million being the fair value of the R400
million interest free loan received from AngloGold of R259 million and R682
million being the reimbursement to AngloGold of the taxes payable on the sale
of the Free Gold assets. R1,800 million was paid during April 2002 at the call
rate from this date until the 10th business day after the date of fulfillment of the
last of the conditions precedent. R400 million is payable on January 1, 2005 at
no interest charge. The balance of the consideration became payable on June
23, 2003, five business days before AngloGold was obliged to pay recoupment
tax, capital gains tax and any other income tax on the disposal of
the assets.
No interest was charged on this amount. Other borrowings The level of the Companys borrowing powers, as determined by its articles of
association, is such that, taking into account the obligations as at June 30,
2003, the Company will have unrestricted access to loan financing for its
reasonable foreseeable requirements. As at June 30, 2003, total borrowings
amounted to R 1,768 million (2002: R 2,861 million) F87
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 17. PROVISION FOR ENVIRONMENTAL REHABILITATION 2003
    
    2002R000
    
    R000Provision raised for future rehabilitationOpening balance
    
    
    267,277
    
    
    
    Acquisition of assets and liabilities from businesses
    
    
    40,390
    
    
    
    247,277Change in estimate and inflation
    
    
    6,797
    
    
    
    20,000Interest cost
    
    
    5,495
    
    
    
    Closing balance
    
    
    319,959
    
    
    
    267,277While the ultimate amount of rehabilitation cost to be incurred in the future is
uncertain, the Company has estimated that based on current environmental and
regulatory requirements, the total costs for the mines, in current monetary
terms, will be R 601 million (June 2002 - R 538 million).The movement
in the investments in the Environmental Trust Funds, were as follows:Opening balance
    
    
    458,647
    
    
    
    Transferred from other trust funds
    
    
    34,500
    
    
    
    443,870Contributions made
    
    
    71
    
    
    
    Interest accrued
    
    
    61,502
    
    
    
    14,777Closing balance
    
    
    554,720
    
    
    
    458,647Ultimate estimated rehabilitation cost
    
    
    600,542
    
    
    
    538,376Amounts invested in Environmental Trust Funds
    
    
    554,720
    
    
    
    458,647Future net obligation
    
    
    45,822
    
    
    
    79,729
 The Company intends to finance the ultimate rehabilitation costs from the
monies invested with the environmental trust funds as well as the proceeds on
sale of assets and gold from plant clean-up at the time of mine closure. 18. PROVISION FOR POST-RETIREMENT BENEFITSThe provision for former employees post-retirement benefits comprise
medical benefits for former employees who have retired. The amounts were
based on an actuarial valuation conducted during the current year.The amounts recognized in the balance sheet are as follows:Present value of unfunded obligation
    
    
    2,226
    
    
    
    2,226The amount recognized in the income statement are as follows:Provision for liability
    
    
    
    
    
    
    2,226The movement in the liability recognized in the balance sheet is as follows:At the beginning of the period
    
    
    2,226
    
    
    
    Total expense as above
    
    
    
    
    
    
    2,226At the end of the period
    
    
    2,226
    
    
    
    2,226
 F88
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 18. PROVISION FOR POST-RETIREMENT BENEFITS (Continued) 2003
    
    2002R000
    
    R000The principal actuarial assumptions used for accounting purposes were:Discount rate
    
    
    12
    %
    
    
    12
    %Assumed medical subsidy inflation
    
    
    7
    %
    
    
    7
    %19. ACCOUNTS PAYABLE AND ACCRUED LIABILITIESShort-term portion of long-term borrowings
    
    
    2,578
    
    
    
    681,449Payroll and leave liabilities
    
    
    145,915
    
    
    
    133,726Short-term portion of deferred tax
    
    
    9,585
    
    
    
    (5,674
    )Harmony Gold Mining Company Ltd
    
    
    
    
    
    
    140,849Other (including accrued liabilities)
    
    
    86,002
    
    
    
    70,277244,080
    
    
    
    1,020,627
 Leave liability Employee entitlements to annual leave are recognized on an ongoing basis. A
provision is made for the estimated liability for annual leave as a result of
services rendered by employees up to the balance sheet date. 20. EMPLOYEE BENEFITSNumber of permanent employees
    
    
    16,860
    
    
    
    13,734Aggregate earnings:The aggregate earnings of employees including directors were:Salaries and wages and other benefits
    
    
    1,011,765
    
    
    
    183,575Retirement benefit costs
    
    
    63,738
    
    
    
    36,732Medical aid contributions
    
    
    19,660
    
    
    
    19,2001,095,163
    
    
    
    239,507
  21.
    
    EMPLOYEE BENEFIT PLANSPension and Provident Funds: The Company contributes to several pension
and provident funds governed by the
Pension Fund Act, 1946. The pension funds are multi-employer industry
plans. The Companys liability is limited to its
annually determined contributions.The provident funds are funded on the money accumulative basis with the
members and employers contributions
having been fixed in the constitution of funds.Substantially, all the Companys employees are covered by the above
mentioned retirement benefit plans. Funds
contributed by the Company for the year ended June 30, 2003 amounted to R
63.7 million (June, 30 2002-R 36.7 million.)Post Retirement Benefits other than Pensions: Skilled workers participate
in the Minemed medical scheme, as well as
other medical schemes. As regards the Company, contributions are limited
to current employees only. The
Companys contribution to the schemes on behalf of the current employees
amounted to R 19.6 million (June 2002 -R
19.2 million) for the year. F89
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS  21.
    
    EMPLOYEE BENEFIT PLANS (Continued)POST RETIREMENT BENEFITS OTHER THAN PENSIONS (Continued)No other post-retirement benefits are available to other workers. The
medical schemes pay certain medical expenses for
current employees and their dependants. Employees pay an annual
contribution to these schemes.An updated actuarial valuation was carried out during the 2002 fiscal year
on the Minemed medical scheme following the
last actuarial valuation in fiscal 2000.Assumptions used to determine the liability relating to the Minemed
medical scheme included, investment returns of
12%, no increases in employer subsidies (in terms of the agreement) and
mortality rates according to the SA a mf
tables and a medical inflation rate of 7%.22.
    
    DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE AND CREDIT OF FINANCIAL
INSTRUMENTSFree Gold is exposed to market risks including credit risk, foreign
currency, commodity price, interest rate and liquidity
risk associated with underlying assets, liabilities and anticipated
transactions. Based on periodic evaluation of these
exposures, Free Gold may enter into derivative financial instruments to
manage these exposures. Free Gold does not
hold or issue derivative financial instruments for trading or speculative
purposes.Commodity price sensitivityAs a general rule, Free Gold sells its gold production at market prices
and normally does not enter into forward sales,
derivatives or other hedging arrangements to establish a price in advance
for the sale of its future gold production.Foreign currency sensitivityIn the ordinary course of business, Free Gold enters into transaction
denominated in foreign currency (primarily US
Dollars). As a result, Free Gold is subject to transaction and translation
exposure from fluctuations in foreign currency
exchange rates. Free Gold does not generally hedge its exposure to foreign
currency exchange rates.Concentration of credit riskFinancial instruments, which potentially subject the Company to
significant concentrations of credit risk , consists
principally of cash and cash equivalents, short-term investments and
various derivatives financial instruments. The
Companys financial instruments do not represent a concentration of credit
risk because the Company deals and
maintains cash and cash equivalents and derivatives financial instruments
with a variety of well-established financial
institutions of high quality and credit standing. The Companys debtors
and loans are regularly monitored and assessed.
An adequate level of provision is maintained.Interest rates and liquidity riskFluctuations in interest rates impacts on the value of the short-term cash
investments and financing activities, giving
rise to interest rate risk. Free Gold generally does not undertake any
specific actions to cover its exposure to interest
rate risk.In the ordinary course of business, the Company receives cash from its
operations and it is required to fund working
capital and capital expenditure requirements. The cash is managed to
ensure surplus funds are invested to provide
sufficient liquidity at minimum risk. F90
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS  22.
    
    DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE AND CREDIT OF FINANCIAL
INSTRUMENTS (Continued)Fair valueThe fair value of financial instruments is defined as the amount at which
the instrument could be exchanged in a current
transaction between willing parties. The carrying amount of receivables,
accounts payables and cash and cash
equivalents are a reasonable estimates of their fair values because of the
short-term maturity investments. The
investments in the environmental trust funds approximates fair values as
the funds are invested in short-term maturity
investments. The investments are carried at market value. Long-term loans
approximate fair value as they are subject to
market-based rates.23.
    
    CASH GENERATED FROM OPERATIONS 3 months to30
September 2003
    
    12 months
    
    6 months(unaudited)
    
    30 June 2003
    
    30 June 2002R000
    
    R000
    
    R000Reconciliation of profit before taxation to cash generated from operations:Income before taxation
    
    
    111,058
    
    
    
    1,239,871
    
    
    
    824,797Adjustments for:Interest received
    
    
    (37,638
    )
    
    
    (217,792
    )
    
    
    (37,512
    )Interest paid
    
    
    45,917
    
    
    
    200,347
    
    
    
    105,002Profit on sale of mining assets
    
    
    (5,731
    )
    
    
    (39,965
    )
    
    
    (2,256
    )Depreciation and amortization
    
    
    32,949
    
    
    
    139,186
    
    
    
    60,426Net change in provision for environmental rehabilitation
    
    
    6,407
    
    
    
    12,292
    
    
    
    20,000Net increase in provision for post-retirement benefits
    
    
    
    
    
    
    
    
    
    
    2,226Movement in gold inventory
    
    
    (1,786
    )
    
    
    (4,138
    )
    
    
    (11,818
    )Bad debts
    
    
    200
    
    
    
    800
    
    
    
    170Other
non-cash transactions
    
    
    (20,245
    )Effect of changes in operating working capital items:Receivables
    
    
    (37,217
    )
    
    
    (96,805
    )
    
    
    (119,127
    )Inventories
    
    
    161
    
    
    
    2,262
    
    
    
    (3,928
    )Accounts payable and accrued liabilities
    
    
    (28,500
    )
    
    
    (112,936
    )
    
    
    231,578Cash generated by operations
    
    
    197,009
    
    
    
    1,123,122
    
    
    
    1,069,55824. ACQUISITION OF BUSINESSES
 With effect
from January 1, 2002, the Company purchased the Free Gold assets
and liabilities from AngloGold for R 2,741 million. The aggregate fair value of
the assets acquired and liabilities assumed were as follows: R000Environmental trust fund
    
    
    
    
    
    
    443,871Property, plant and equipment
    
    
    
    
    
    
    2,726,974Accounts payable and accrued liabilities
    
    
    
    
    
    
    (117,496
    )Long-term liabilities
    
    
    
    
    
    
    (247,277
    )Deferred tax
    
    
    
    
    
    
    (64,940
    )Total purchase price carried forward
    
    
    
    
    
    
    2,741,132
 F91
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 24. ACQUISITION OF BUSINESSES (Continued) R000Total purchase price carried down
    
    
    
    
    
    
    2,741,132Paid for by way of borrowings
    
    
    
    
    
    
    ( 941,132
    )Paid for by cash
    
    
    
    
    
    
    (1,800,000
    )Cash and cash equivalents at acquisition
    
    
    
    
    
    
    With effect from October 30, 2002, the Company purchased the St Helena
assets and liabilities from Gold Fields for R 129 million. The aggregate fair
value of the assets acquired and liabilities assumed were as follows:Environmental trust fund
    
    
    
    
    
    
    34,500Property, plant and equipment
    
    
    
    
    
    
    144,109Inventory
    
    
    
    
    
    
    2,145Provision for environmental rehabilitation
    
    
    
    
    
    
    ( 40,390
    )Deferred tax
    
    
    
    
    
    
    ( 10,912
    )Total purchase price
    
    
    
    
    
    
    129,452Paid for by way of royalties
    
    
    
    
    
    
    ( 9,452
    )Paid for by cash
    
    
    
    
    
    
    ( 120,000
    )Cash and cash equivalents at acquisition
    
    
    
    
    
    
    
 25. COMMITMENTS AND CONTINGENCIES 2003
    
    2002R000
    
    R000Capital expenditure commitmentsContracts for capital expenditure
    
    
    11,193
    
    
    
    2,222Authorized by the directors but not contracted for
    
    
    840,400
    
    
    
    25,072851,593
    
    
    
    27,29426. GUARANTEESBoE Merchant Bank
    
    
    500,000
    
    
    
    500,000Harmony Gold Mining Company Ltd
    
    
    500,000
    
    
    
    500,0001,000,000
    
    
    
    1,000,000
  An amount of R 1 billion has been guaranteed to BoE Merchant Bank and
Harmony Gold Mining Company Ltd in equal portions. This is linked to the
ARMGold loan from BoE and will be triggered if ARMGold fails to meet its
obligation to BoE. The BoE loan is collateralized by certain assets including all
moveable assets. Refer to notes 9 and 14 F92
      ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS  27.
    
    RELATED PARTY TRANSACTIONSHarmony Gold Mining Company and ARMGold have joint control over Freegold
and are therefore related parties.The following related party transactions took place during the year under
review: AmountParty
    
    Transaction
    
    R000
    
    BasisHarmony Gold
    
    Intergroup loan-credit balance
    
    
    718,888Harmony Gold
    
    Interest paid
    
    
    78,510
    
    
    15.5% interest on R 500 millionHarmony Gold
    
    Consumables purchased
    
    
    421,600
    
    
    CostHarmony Gold
    
    Service charge
    
    
    10,791
    
    
    CostHarmony Gold
    
    Assay costs charged
    
    
    8,812
    
    
    CostARMGold
    
    Intergroup loan-credit balance
    
    
    718,889ARMGold
    
    Interest paid
    
    
    78,509
    
    
    15.5% interest on R 500 millionARMGold
    
    Assay costs charged
    
    
    21,639
    
    
    CostARMGold
    
    Transport costs charged
    
    
    74
    
    
    Cost
  All of the above transactions took place on normal arms length basis.28.
    
    GEOGRAPHICAL AND SEGMENTAL ANALYSISThe Company is a one product mine (gold), mining and operating in the Free
State Province in the Republic of
South Africa.29.
    
    US GAAP INFORMATIONThe financial statements have been prepared in accordance with South
African Standards of Generally Accepted
Accounting Practice (SA GAAP) which differs in certain respects from
Generally Accepted Accounting Principles in the
United States (US GAAP). The effect of applying US GAAP principles to
net income and shareholders equity is set out
below along with an explanation of applicable differences between SA GAAP
and US GAAP: 2003
    
    2002R000
    
    R000Net income as reported in accordance with SA GAAP
    
    
    911,502
    
    
    
    553,117Items increasing/(decreasing) net income:Business
combinations-acquisition date (i)
    
    
    
    
    
    
    (312,313
    )Business
combinations-purchase price (ii)
    
    
    21,473
    
    
    
    15,076Environmental rehabilitation (iii)
    
    
    (165
    )
    
    
    4,165Tax effects of the above described adjustments (iv)
    
    
    (6,392
    )
    
    
    8,746Income before cumulative effect of change in accounting principle
    
    
    926,418
    
    
    
    268,791Cumulative effect of change in accounting principle, net of tax
    
    
    (474
    )
    
    
    Net profit in accordance with US GAAP
    
    
    925,944
    
    
    
    268,791
 F93
      ARMGOLD/HARMONY FREEGOLD
JOINT VENTURE (PTY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS 29.
      US GAAP INFORMATION (Continued) 2003
    
    2002R000
    
    R000Shareholders
equity as reported in accordance with SA GAAP
    
    
    1,164,639
    
    
    
    553,137Items increasing/(decreasing) shareholders equity:Business combinations - acquisition date (i)
    
    
    (312,313
    )
    
    
    (312,313
    )Business combinations - purchase price (ii)
    
    
    36,549
    
    
    
    15,076Environmental rehabilitation (iii)
    
    
    3,526
    
    
    
    4,165Tax effects of the above described adjustments (iv)
    
    
    2,354
    
    
    
    8,746Shareholders equity in accordance with US GAAP
    
    
    894,755
    
    
    
    268,811
  (i)
    
    Business combinations-acquisition dateUnder SA GAAP, the Company accounted for the acquisition of the Free Gold
assets from the date upon which the
Company assumed joint operational control of the assets together with the
seller. Under US GAAP, the Company
accounted for the acquisition from May 1, 2002, the first day of the month
after which all the conditions precedent to
the transaction had been fulfilled and the transaction completed.(ii)
    
    Business combinations-purchase priceUnder SA GAAP, the Company determined the final purchase price of the Free
Gold assets to be    R 2,741, being the
sum of a cash payment of R 1,800, the taxes payable by the seller on the
transaction of      R 682 million (this had been
estimated to be R 632 million as at June 30, 2002) and the fair value of a
        R 400 million
interest-free loan being R 259
million. Under US GAAP, the Company determined the purchase price to
be          R
2,264 million, being the sum of a cash
payment of R 1,800 million, the taxes payable
by the seller on the
transaction
of            R 682 million and the fair value of
the R 400 million interest-free loan
being              R 270 million,
offset by the
cash
flows of R 488 million
generated by the Free
Gold assets during the period January 1, 2002(the date upon which the
Company assumed joint operational control)
and April 23, 2002 (the date upon which all the conditions precedent to
the transactio were fulfilled and the transaction
completed).(iii)
    
    Provision for rehabilitation(a) Method of recognitionUnder both SA GAAP and US GAAP, environmental rehabilitation costs are
provided for, based upon the net present
value of the expected future obligation and a corresponding asset raised.
Under US GAAP, prior to fiscal 2003,
environmental rehabilitation costs were provided for, based on the units
of production method based on the expected
ultimate rehabilitation amount.(b) Amortization of the rehabilitation assetThe rehabilitation assets carrying value under SA GAAP is different to
that under US GAAP, which results in a
differing amortization charge.(iv)
    
    Tax effects of the above described adjustmentsReflects the tax effects of the above described US GAAP adjustments. F94