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HARMONY GOLD MINING COMPANY LIMITED - ANNOUNCEMENT

Release Date: 22/06/2001 09:59:01      Code(s): HAR
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
("Harmony" or "the Company")
Successful completion of specific issue
The board of directors of Harmony is pleased to announce an
international specific issue for cash lead managed by J.P. Morgan
Securities Ltd. ("JPMorgan") of ordinary shares in Harmony
("Harmony shares") and warrants, each warrant entitling the holder
to subscribe for one Harmony share on or before 29 June 2003 on
the terms set out in the circular to shareholders of Harmony dated
17 May 2001 ("warrants"), (collectively, the "specific issue").
The Harmony shares and warrants are being issued in multiples of
three shares and one warrant, at a total issue consideration of
R129,00 per three Harmony shares and one warrant. The Company is
issuing 23 550 000 million new Harmony shares at an issue price of
R43,00 per Harmony share ("the issue price") and             7 850
000 million warrants, and has granted an option to the
underwriters to the specific issue to increase the size of the
issue by a further 3 532 500 Harmony shares and 1 177 500 warrants
("the underwriters' option").
1. Financial effects
The issue price was determined following a book-building process
which commenced on 11 June 2001 and closed on 21 June 2001. The
issue price of R43,00 per Harmony share is the same as the closing
price on the JSE Securities Exchange South Africa ("JSE") on 21
June 2001 and  represents a discount of 4,0% to the weighted
average traded price of Harmony shares over the 30 days prior to
the date that the issue price was determined. The pro-forma
effects of the specific issue on earnings and net asset value per
share issue on the basis set out below are as follows:
                                   Before    After    % Increase /
                                                      (Decrease)
Net asset and tangible asset
value per ordinary share (cents)   3 148     3 389    7,7%
Earnings and headline earnings
per share (cents)                  216,4     255,7    18,2%
Notes:
1. Includes the effects of the exercise in full of the
underwriters' option.
2. The pro-forma consolidated income statement has been compiled
from the consolidated income statement of Harmony for the six
months ended 31 December 2000.
3. The adjustment column on the pro-forma consolidated income
statement relates to the following:
- interest of 12% per annum received on cash generated by the
shares issued as indicated below; and
- tax effects related to the above.
4. The pro-forma consolidated balance sheet has been compiled from
the consolidated balance sheet of Harmony as at 31 December 2000,
adjusted for 27 082 500 ordinary shares (includes full potential
exercise of underwriters' option) issued at a price of R43,00  per
share.
2. Fair and Reasonable opinions
At a general meeting of shareholders of Harmony ("shareholders")
held on 8 June 2001, the board of directors of Harmony ("Harmony
Board") was authorised to undertake the specific issue subject to
the provision that after the finalisation of the issue price,
independent experts acceptable to the JSE determine that the issue
of the warrants is fair and reasonable to shareholders in
accordance with Section 3.40 of the JSE Listing Requirements
("Section 3.40").
After the pricing of the specific issue on 21 June 2001, the
Harmony Board was advised by both J.P. Morgan plc and RMB
Resources that the issue of the warrants was fair and reasonable
to shareholders in accordance with Section 3.40.
3. Issue to non-public shareholders
5,9% of the total potential specific issue (including the
underwriters' option) is to be issued to certain directors and
executive officers of Harmony. Prior to the specific issue the
directors and executive officers of Harmony held 3,7% of the
Harmony shares then in issue. A further announcement detailing
allotments to directors of Harmony will be made in due course.
4.  Listings and JSE timetable
The Harmony shares and warrants are to be listed on the JSE and,
in the case of the Harmony shares, in the form of American
Depository Shares which are to be listed on the Nasdaq Stock
Market in the United States of America ("NASDAQ"). The warrants
will be listed on the JSE under the symbol "HARW" and on the
NASDAQ under the symbol "HGMCY".  Application will be made for the
listing of the Harmony shares on the Official List of the United
Kindom Listing Authority and for admission to trading on the
London Stock Exchange. Application is also expected to be made for
listing of the Harmony shares on the Premier March  of the
Euronext Paris. Harmony's International Depository Shares are
listed on Euronext Brussels.
The timing of key JSE-related events is indicated below:
Issue of Harmony shares and
warrants on                            Friday, 29 June 2001
Listing of Harmony shares and
warrants on the JSE on                 Monday, 2 July 2001
Issue of certificates of title
to the Harmony shares and
warrants on or about                   Tuesday, 3 July 2001
Shareholders are cautioned to comply with applicable JSE
settlement requirements particularly, where applicable, the rules
concerning bear trading as set out in the JSE Rules and Related
Legislation.
Randfontein
25 June 2001
Financial adviser and Sponsor
JP Morgan
Legal adviser
Cliffe Dekker Fuller Moore Inc
Reporting accountants and auditors
PricewaterhouseCoopers Inc
Independent merchant bank
RMB Resources



                                        
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