 
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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