HARMONY GOLD MINING COMPANY LIIMTED - PRESS RELEASE
HARMONY GOLD MINING COMPANY LIMITED
(Registration number 1950/038232/06)
("Harmony" or the "company")
JSE Share code: HAR
HARMONY ON TARGET WITH AVGOLD
Johannesburg, 13 November 2003 - Harmony Gold Mining Company Limited (NYSE: HMY
JSE: HAR) today announced that it had reached in principle agreement regarding
the acquisition of Avmin"s 286 305 263 shares or 42,2% interest in Avgold
Limited (Avgold) at R10.11 per share. The consideration of R2,894 million will
be settled by the issue of 28 630 526 new Harmony shares.
On 15 July 2003 the company announced that it had acquired 11,5% or 77 540 830
shares in Avgold at a consideration of R7,91 per Avgold share.
If the acquisition of the Avgold shares becomes unconditional, the company will
own approximately 54% of Avgold, and a mandatory offer of 1 Harmony share per 10
Avgold shares will be made to Avgold minorities. On an assumption of a 100%
acceptance of the offer a total of 60 059 379 Harmony shares will be issued. At
a Harmony share price of R98.50 per share the company will have a market
capitalisation of R31.3 billion.
Avgold owns the Target Mine in the Free State. The mine is expected to produce
350 000 ounces per annum at a cash cost of US$180,00 per ounce over a life of
mine of 18 years. Avgold also owns the prospective Target North Project area
that has a resource of some 59,6 million ounces.
"Harmony has over the past three years upgraded its production base with arange
of value enhancing acquisitions. This has resulted in the company being in a
fortunate position compared to its peer group in that it is currently developing
five mines, which should result in the company"s underground recovery grade
increasing by some 13% over the next four years. The acquisition of the Target
Mine will further enhance the overall quality of the company"s production base,"
commented Bernard Swanepoel, Chief Executive.
Harmony, South Africa"s largest gold producer, owns operations locally and in
Australasia. The company already has a significant operational presence in the
Free State, and with the inclusion of the Target Mine, sees this position
increasing and realising a range of synergistic benefits.
Issued by Harmony Gold Mining Company Limited
For more details contact:
Bernard Swanepoel on +27(0)83 303 9922
or Ferdi Dippenaar on +27(0)82 807 3684
Investor Relations Officer
Tel +27 11 684 0146
Mobile +27(0)83 380 6614
Date: 13/11/2003 08:03:02 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department