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Avmin/ ARMI/ Harmony - Financial Effects and Further Joint Cautionary

Release Date: 19/12/2003 07:30:01      Code(s): AIN HAR
Avmin/ ARMI/ Harmony - Financial Effects and Further Joint Cautionary           
Anglovaal Mining Limited                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 1933/004580/06)                                            
(Share code: AIN)                                                               
(ISIN code: ZAE000017141)                                                       
("Avmin")                                                                       
African Rainbow Minerals & Exploration Investments (Proprietary) Limited        
(Incorporated in the Republic of South Africa)                                  
(Registration number 1997/020158/07)                                            
 ("ARMI")                                                                       
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
(Share code: HAR)                                                               
(ISIN code: ZAE000015228)                                                       
("Harmony")                                                                     
* FINANCIAL EFFECTS; AND                                                        
* FURTHER JOINT CAUTIONARY ANNOUNCEMENT                                         
INTRODUCTION                                                                    
Shareholders of Avmin and Harmony are referred to the detailed joint cautionary 
announcement dated 13 November 2003 regarding a range of indivisible            
transactions involving Avmin, Harmony and ARMI ("the Transaction").             
FINANCIAL EFFECTS                                                               
The following tables have been prepared for illustrative purposes only and set  
out the pro forma financial effects of the Transaction per ordinary share of    
Avmin and Harmony, respectively, based on the audited annual financial          
statements of Avmin and Harmony for their financial years ended 30 June 2003.   
Avmin financial effects                                                         
                         (1) Before             (2)     (3) After   Percentage  
                                the     Adjustments           the       change  
Transaction      before the   Transaction               
                         (cents per     Transaction    (cents per               
                             share)      (cents per        share)               
                                             share)                             
Net asset value            4 407           4 407         4 987         13.2  
   Net tangible               4 401           4 401         4 984         13.2  
   asset value                                                                  
   Earnings                   (170)             194         1 171        503.6  
Headline earnings            176             175           291         66.3  
   Weighted average     112 046 000     112 046 000   201 796 417               
   number of shares                                                             
   Number of shares     112 601 980     112 601 980   202 352 397               
issued                                                                       
Notes:                                                                          
-    The `Before the Transaction" financial information has been extracted,     
     without adjustment, from the Avmin published audited results.The           
`Adjustments before the Transaction" include adjusting for the sale of     
     Chambishi Metals plc and the placement of 90 000 000 Avgold Limited        
     ("Avgold") shares in April 2003, on the assumption that both were effective
     1 July 2002 for earnings effects and 30 June 2003 for net asset value      
effects.The `After the Transaction" financial information is based on the  
     following:for earnings and headline earnings per share, the Transaction was
     effective 1 July 2002;                                                     
-    for net asset and net tangible asset value per share, the Transaction was  
effective 30 June 2003;adjusting for the sale of Chambishi Metals plc on   
     the assumption that the Chambishi disposal was effective 1 July 2002 for   
     earnings effects and 30 June 2003 for net asset value effects;             
-    Avmin disposed of 90 000 000 Avgold shares, with effect from 1 July 2002   
for earnings effects and 30 June 2003 for net asset value effects;         
-    Avmin acquired ARMI"s 41.5% effective interest in the Modikwa Joint Venture
     with effect 1 July 2002 for earnings effects and 30 June 2003 for net asset
     value effects;Avmin acquired Kalplats with effect 1 July 2002 for earnings 
effects and 30 June 2003 for net asset value effects;Adjustments have been 
     made to Modikwa"s financial statements to comply with IFRS and accounting  
     policies; and Harmony is equity accounted by bringing in 22.27% of the     
     Harmony earnings for the year to 30 June 2003.A share price of R50 per     
Avmin share, R101.07 per Harmony share and an implied Avgold share price of
     R10.11 has been used.                                                      
Harmony financial effects                                                       
                        (1) Before the             (2)     (3) After  Percentage
Transaction     Adjustments           the      change
                            (cents per      before the   Transaction            
                                share)     Transaction    (cents per            
                                            (cents per        share)            
share)                          
   Net asset value               4 732           6 361         7 174        12.8
   Net tangible asset            4 732           5 208         5 759        10.6
   value                                                                        
Earnings                        359             721           574      (20.4)
   Headline earnings               661             885           715      (19.2)
   Weighted average        177 954 245     241 620 912   278 897 939            
   number of shares                                                             
Number of shares        184 854 115     248 520 782   285 797 809            
   issued                                                                       
Notes:                                                                          
The "Before the Transaction" effects have been extracted from the annual        
financial statements of Harmony for the year ended 30 June 2003.                
The "Adjustments before the Transaction" include adjusting for the effects of:  
-    the merger between Harmony and ARMgold; and the acquisition of a total     
     effective interest of 34.5% in Avmin, after adjusting for the effects of   
Avmin"s interest in Chambishi Metals plc on the assumption that these      
     transactions were effective 1 July 2002 for earnings effects and 30 June   
     2003 for net asset value effects.                                          
The "After the Transaction" effects are based on the following assumptions:     
-    for earnings and headline earnings per share, the Transaction was effective
     1 July 2002;for net asset and net tangible asset value per share, the      
     Transaction was effective 30 June 2003;Avgold disposed of its interest in  
     ETC mine with effect 1 July 2002 for earnings effects and 30 June 2003 for 
net asset value effects; and Avmin acquired ARMI"s 41.5% effective interest
     in the Modikwa Joint Venture with effect 1 July 2002 for earnings effects  
     and 30 June 2003 for net asset value effects.A share price of R50 per Avmin
     share, as announced in the detailed joint cautionary dated 13 November     
2003, has been used.                                                       
FURTHER JOINT CAUTIONARY ANNOUNCEMENT                                           
Shareholders are advised that the requisite legal agreements are still being    
finalised. Accordingly, the shareholders of both Avmin and Harmony are advised  
to continue to exercise caution when trading in their securities until a further
announcement is made.                                                           
Johannesburg                                                                    
18 December 2003                                                                
Financial adviser and sponsor to Avmin                                          
Deutsche Securities (SA) Proprietary Limited                                    
Attorneys to Avmin                                                              
Deneys Reitz                                                                    
Financial adviser and sponsor to Harmony and joint financial adviser to ARMI    
JPMorgan                                                                        
Joint financial adviser to ARMI                                                 
Nedbank Corporate                                                               
Attorneys to Harmony                                                            
Cliffe Dekker                                                                   
Attorneys to ARMI                                                               
Bowman Gilfillan                                                                
Date: 19/12/2003 07:30:05 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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