Fitch downgrades Harmony Gold

Fitch Ratings downgraded Harmony Gold Mining Co. Ltd.'s national long-term rating to A-(zaf) from A(zaf) and its short-term national rating to F2(zaf) from F1(zaf). The rating on Harmony's senior, unsecured ZAR1.2 billion bond issue maturing in June 2006 is also downgraded to A-(zaf) from A(zaf).

The outlook is negative.

Fitch said the ratings downgrade reflects losses at the cash operating level incurred by Harmony in the last quarter of fiscal year 2004 and the pre-tax loss of ZAR813 million reported for the year to June 30.

Notwithstanding the poor results, Fitch said Harmony achieved a record production of 3.3 million ounces of gold in fiscal 2004.

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