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ACQUISITION BY HARMONY OF A STAKE IN GOLDFIELD LIMITED OF AUSTRALIA

Release Date: 08/02/2000 07:30:50      Code(s): HAR HARO
HARMONY HARMONY GOLD MINING COMPANY LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/38232/06)
("HARMONY" OR "THE COMPANY")
ACQUISITION BY HARMONY OF A STRATEGIC STAKE IN GOLDFIELDS LIMITED OF AUSTRALIA
THE BOARD OF DIRECTORS OF HARMONY IS PLEASED TO ADVISE THAT IT HAS REACHED
AGREEMENT WITH HANSON PLC IN TERMS OF WHICH IT WILL ACQUIRE 32.77 MILLION
SHARES IN AUSTRALASIAN GOLD PRODUCER, GOLDFIELDS LIMITED ("GOLDFIELDS")
COMPRISING 19,95% OF THE ENTIRE ISSUED SHARE CAPITAL OF GOLDFIELDS, WITH EFFECT
FROM 4 FEBRUARY 2000, SUBJECT TO THE FULFILMENT OF THE CONDITIONS PRECEDENT
REFLECTED BELOW (THE "ACQUISITION"). THE CONSIDERATION PAYABLE IN TERMS OF THE
ACQUISITION AMOUNTS TO A PRICE OF A$1.25 PER SHARE, A$40.96 MILLION IN
AGGREGATE (APPROXIMATELY R162.67 MILLION), PAYABLE IN CASH. GOLDFIELDS
GOLDFIELDS IS A GOLD MINING COMPANY REGISTERED IN AUSTRALIA AND LISTED ON THE
AUSTRALIAN STOCK EXCHANGE. GOLDFIELDS IS THE 5TH LARGEST GOLD PRODUCER IN THE
AUSTRALASIAN REGION ON AN EQUITY ACCOUNTED BASIS. GOLDFIELDS OPERATIONS AND
ACTIVITIES INCLUDE:
MINING:
* PORGERA MINE, PAPAU NEW GUINEA - 25% INTEREST, (OPERATION MANAGED BY PLACER
DOME INC.);
- HENTY MINE, TASMANIA - 100% INTEREST, 90% REVENUE SHARE;
- PADDINGTON MINE, WESTERN AUSTRALIA - 87.7% INTEREST; AND
- KUNDANA MINE, WESTERN AUSTRALIA - 87.7% INTEREST. EXPLORATION: INTERESTS IN
AUSTRALIA AND PAPAU NEW GUINEA. GOLDFIELDS, ATTRIBUTABLE GOLD PRODUCTION IN THE
FINANCIAL YEAR ENDING JUNE 1999 AMOUNTED TO 500 194 OUNCES AT AN AVERAGE CASH
COST OF A$335 PER OUNCE (APPROXIMATELY US$ 218 PER OUNCE). IN THE SIX MONTHS
ENDING DECEMBER 1999, GOLDFIELDS, ATTRIBUTABLE PRODUCTION AMOUNTED TO 263 339
OUNCES AT AN AVERAGE CASH COST OF A$253 PER OUNCE (APPROXIMATELY US$ 165 PER
OUNCE). AS AT 31 DECEMBER 1999, THE TOTAL RESOURCES AT PORGERA AMOUNTED TO 16.0
MILLION OUNCES (OF WHICH 4.0 MILLION OUNCES ARE ATTRIBUTABLE TO GOLDFIELDS).
INCLUDED IN THIS ARE PROVEN AND PROBABLE RESERVES OF 10.7 MILLION OUNCES (OF
WHICH 2.7 MILLION OUNCES ARE ATTRIBUTABLE TO GOLDFIELDS) . AS AT 30 JUNE 1999
THE TOTAL ATTRIBUTABLE RESOURCES AT HENTY, PADDINGTON AND KUNDANA AMOUNTED TO
3.O MILLION OUNCES. RATIONALE
THE BOARD OF HARMONY BELIEVES THAT THE TREND OF RATIONALISATION IN THE LOCAL
AND INTERNATIONAL GOLD INDUSTRY WILL CONTINUE AND THAT THE FUTURE SHAPE OF THE
INDUSTRY WILL BE DETERMINED BY INTERNATIONAL PLAYERS WITH CRITICAL MASS -
MEASURED IN TERMS OF ANNUAL OUNCES OF GOLD PRODUCTION AND MARKET
CAPITALISATION. HARMONY HAS CONSISTENTLY BEEN PURSUING A GROWTH STRATEGY,
PARTICULARLY IN SOUTH AFRICA, BY MEANS OF THE ACQUISITION OF ASSETS SUCH AS
EVANDER GOLD MINES LIMITED, KALAHARI GOLDRIDGE MINES LIMITED AND RANDFONTEIN
ESTATES LIMITED. HARMONY HAS IDENTIFIED AUSTRALASIA AND NORTH AMERICA AS
POTENTIAL AREAS OF FUTURE INTERNATIONAL GROWTH. IN 1998 HARMONY MADE ITS FIRST
INVESTMENT IN THE NORTH AMERICAN GOLD SECTOR WITH THE PURCHASE OF THE BISSETT
MINE. HARMONY HAS BEEN INVESTIGATING THE AUSTRALIAN GOLD SECTOR FOR SOME TIME.
THE ACQUISITION REPRESENTS A STRATEGIC ENTRY INTO THE AUSTRALASIAN REGION AND
WILL PROVIDE THE COMPANY WITH A PLATFORM FOR FURTHER EXPANSION.
CONDITIONS PRECEDENT
THE ACQUISITION IS SUBJECT TO THE FULFILMENT OF THE FOLLOWING CONDITIONS
PRECEDENT:
- THE APPROVAL OF THE FOREIGN INVESTMENT REVIEW BOARD IN AUSTRALIA; AND
- THE APPROVAL OF THE SOUTH AFRICAN RESERVE BANK.
FINANCIAL EFFECTS
THE FINANCIAL EFFECTS OF THE ACQUISITION ON THE NET ASSET VALUE AND EARNINGS
PER HARMONY SHARE FOR THE FINANCIAL YEAR ENDING 30 JUNE 1999 ARE NOT MATERIAL.
VIRGINIA
8 FEBRUARY 2000
AUSTRALIAN ADVISORS TO HARMONY:
ORD MINNETT
CORPORATE FINANCE LIMITED
ACN 003 309 822
SOUTH AFRICAN ADVISORS TO HARMONY:
FLEMMINGS
ROBERT FLEMING SOUTH AFRICA LIMITED
(REGISTRATION NUMBER 95/11812/06)
PRESS RELEASE
HARMONY INVESTS IN GOLDFIELDS OF AUSTRALIA
HARMONY GOLD MINING COMPANY LIMITED
LEADING GOLD PRODUCER, HARMONY GOLD MINING COMPANY LIMITED ("HARMONY"),
ANNOUNCED TODAY THAT IT HAS PURCHASED A 19.95% INTEREST IN AUSTRALIAN GOLD
PRODUCER, GOLDFIELDS LIMITED ("GOLDFIELDS"), FROM HANSON PLC AT A PRICE OF
A$1.25 PER SHARE.  THE AGGREGATE VALUE OF THE TRANSACTION IS A$41 MILLION.
THIS TRANSACTION MARKS HARMONY'S ENTRY INTO THE AUSTRALIAN MARKET AND IS IN
LINE WITH ITS STRATEGY TO PURSUE LONG-TERM EXPANSION OPPORTUNITIES
INTERNATIONALLY AS WELL AS IN SOUTH AFRICA.
"WE HAVE BEEN INVESTIGATING THE AUSTRALIAN GOLD SECTOR FOR SOME TIME AS IT
CONTAINS SEVERAL HIGHLY PROSPECTIVE REGIONS AND OFFERS A NUMBER OF ATTRACTIVE
OPPORTUNITIES," HARMONY CHIEF EXECUTIVE, BERNARD SWANEPOEL, SAID.
"AS A MAJOR GOLD PRODUCER, HARMONY COULD NOT IGNORE THIS SIGNIFICANT GOLD
PRODUCING COUNTRY."
"AUSTRALIA OFFERS AN ATTRACTIVE INVESTMENT ENVIRONMENT AND WE ARE PLEASED TO
HAVE MADE THIS FIRST STEP TOWARDS ESTABLISHING A LONG-TERM EXPOSURE TO THE
AUSTRALASIAN REGION.  OUR STAKE IN GOLDFIELDS ALLOWS US TO GAIN A FOOTHOLD IN
THIS MARKET AND PROVIDES A BASE FROM WHICH TO INVESTIGATE FURTHER OPPORTUNITIES
IN AUSTRALIA," HE SAID.
HARMONY, CURRENTLY THE THIRD LARGEST GOLD PRODUCER IN SOUTH AFRICA, HAS
EXPANDED IN THE PAST FIVE YEARS FROM A SINGLE LEASE OPERATION TO BECOME ONE OF
THE WORLD'S MAJOR GOLD MINING COMPANIES.  THIS GROWTH HAS BEEN ACHIEVED THROUGH
A COMBINATION OF SOUND MINING PRACTICES AND CAREFULLY SELECTED ACQUISITIONS.
HARMONY'S RECENT TAKEOVER OFFER FOR RANDFONTEIN HAS FURTHER ENHANCED ITS
POSITION. AFTER THE ACQUISITION OF RANDFONTEIN IS COMPLETED HARMONY'S MARKET
PROFILE IN SOUTH AFRICA WILL BE STRENGTHENED SIGNIFICANTLY AND, WITH AN ANNUAL
PRODUCTION OF SOME 2.2 MILLION OUNCES, IT WILL BECOME THE SIXTH LARGEST GOLD
PRODUCER IN THE WORLD.
HARMONY EXPECTS CONSOLIDATION IN THE INTERNATIONAL GOLD SECTOR TO CONTINUE WITH
THE FUTURE SHAPE OF THE INDUSTRY BEING DETERMINED BY INTERNATIONAL PLAYERS WITH
CRITICAL MASS.
THE INVESTMENT IN GOLDFIELDS IS SUBJECT TO APPROVAL FROM THE FOREIGN INVESTMENT
REVIEW BOARD (FIRB) IN AUSTRALIA AND THE SOUTH AFRICAN RESERVE BANK (SARB).
FOR FURTHER INFORMATION, PLEASE CONTACT:
JOHANNESBURG: BERNARD SWANEPOEL, CHIEF EXECUTIVE OF HARMONY ON +27(0)83-303-992
AUSTRALIA:
PETER BACCHUS
ORD MINNETT CORPORATE FINANCE
PH: (+61) (2) 9220 1509
    (+61) (0) 414 371 136 - 24 HOURS
KATE KERRISON
GAVIN ANDERSON & KORTLANG
PH: (+61) (2) 9552 4499 OR
    (+61) (0) 413 946 704 - 24 HOURS
-ENDS-



                                        
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