| Thu 17 Nov 2005, 7:00 | | Harmony Disposes Of Its Remaining Interest In Gold |
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Harmony Disposes Of Its Remaining Interest In Gold Fields Limited
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE
UNITED STATES, CANADA OR JAPAN
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
Share code: HAR & ISIN: ZAE000015228
NYSE: HMY
("Harmony")
HARMONY DISPOSES OF ITS REMAINING INTEREST IN GOLD FIELDS LIMITED ("the
disposal")
Harmony (NYSE: HMY; JSE: HAR) today announced that it had disposed of its
remaining 26,5 million Gold Fields Limited ("Gold Fields") shares at an average
price of R93.228 per share. The process was concluded through market disposals
which commenced on 10 November 2005 and an open market offering on 15 and 16
November 2005.
"The disposal of our remaining shares in Gold Fields has significantly
strengthened our balance sheet. In addition, with Harmony"s re-structuring
process being concluded during the previous quarter, the company is well-
positioned to fully exploit the current higher gold price in Rand/kg terms.
This bodes well for Harmony which, through the development of our range of
growth projects in South Africa and Papua New Guinea, will be transformed from a
high cost marginal producer to producing high margin quality ounces", commented
Harmony CEO, Bernard Swanepoel.
The proceeds of the disposal will be utilised to continue to invest in Harmony"s
pipeline of long life high-quality new mines and expansion projects, to retire
short-term liability and as working capital within the Harmony operations.
The table below shows the pro forma per share effects of the sale of the Gold
Fields shares on Harmony for the financial year ended 30 June 2005. The pro
forma financial effects have been prepared for illustrative purposes only and,
because of their nature, may not fairly present Harmony"s financial position,
changes in equity, results of operation or cash flows at and for the financial
year ended 30 June 2005, or the effect on future earnings. The financial
effects are determined in accordance with the Listings Requirements of the JSE
Limited.
Historical After the %
Before the disposal(2) Change
disposal(1) (cents)
(cents)
Net asset value 5630 5735 1.87
Tangible net asset value 5054 5159 2.09
Basic earnings (955) (855) 10.48
Headline earnings (408) (393) 3.75
Number of shares (`000) 393 341 393 341 0.00
Weighted average number 361 817 361 817 0.00
of shares in issue (`000)
Notes:
1.Extracted from the published financial results of Harmony for the financial
year ended 30 June 2005.
2. Pro forma financial effects after the disposal.
3. In relation to the pro forma net asset value per share it is assumed that the
disposal was effective on 30 June 2005.
4. In relation to the pro forma earnings and headline earnings per share, it is
assumed that the transaction was effective on 1 July 2004.
5. It is assumed that the proceeds of the disposal were received on 30 November
2004, being the effective date of acquisition of the Gold Fields shares and
remained in cash and cash equivalents, earning interest at a weighted average
after tax interest rate of 5.04%, after taking into account the payment of
transaction costs.
6. The profit on the disposal was excluded in the calculation of headline
earnings per share.
Johannesburg
16 November 2005
Sole Bookrunner
Merrill Lynch South Africa (Pty) Limited
Sponsor to Harmony
Merrill Lynch South Africa (Pty) Limited
Reporting accountants to Harmony
PWC
Attorneys to Harmony
Cliffe Dekker Inc.
This communication is for information purposes only.
This announcement does not constitute an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States or any
other jurisdiction in which such an offer or solicitation is unlawful. The
securities referred to in this announcement have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States, except pursuant to registration or an
applicable exemption from registration. No public offering of securities is
being made into the United States.
Within the United Kingdom, this announcement is directed only at persons who
have professional experience in matters relating to investments who fall within
article 19(5) of the United Kingdom Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended) (the `Order") or are persons
falling within article 49(2)(a) to (d) (`high net worth individuals,
unincorporated associations etc.") of the Order (all such persons together being
referred to as `relevant persons"). This communication must not be acted on or
relied on by persons who are not relevant persons. Any investment or investment
activity to which this communication relates is available only to relevant
persons and will be engaged in only with relevant persons. As regards all
persons other than relevant persons, the details of the placing and bookbuilding
set out in this announcement are for information purposes only.
Forward-looking Statements
Statements in this communication include "forward-looking statements" that
express or imply expectations of future events or results. Forward-looking
statements are statements that are not historical facts. These statements
include financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance.
Forward-looking statements are generally identified by the words "expect,"
"anticipates," "believes," "intends," "estimates" and similar expressions. All
forward-looking statements involve a number of risks, uncertainties and other
factors, and Harmony cannot give assurances that such statements will prove to
be correct. Risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied by the forward-
looking statements include, without limitation, the satisfaction of closing
conditions, the acceptance or rejection of any agreement by regulators, delays
in the regulatory processes, changes in the economic or political situation in
South Africa, the European Union, the United States of America and/or any other
relevant jurisdiction, changes in the gold industry within any such country or
area or worldwide and the performance of (and cost savings realised by) Harmony.
Although Harmony"s management believes that the expectations reflected in such
forward-looking statements are reasonable, investors and holders of Harmony"s
securities are cautioned that forward-looking information and statements are
subject to various risks and uncertainties, many of which are difficult to
predict and generally beyond the control of Harmony, that could cause actual
results and developments to differ materially from those expressed in, or
implied or projected by, the forward-looking information and statements.
Harmony does not undertake any obligation to update any forward-looking
information or statements.
This announcement has been issued by, and is the sole responsibility of,
Harmony.
Date: 17/11/2005 07:01:01 AM Produced by the JSE SENS Department
