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Harmony Receives Avgold Shareholder Approval And Closes Out Target Hedge Book

Release Date: 03/05/2004 15:03:01      Code(s): HAR
Harmony Receives Avgold Shareholder Approval And Closes Out Target Hedge Book   
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
JSE:          HAR                                                               
NYSE:         HMY                                                               
ISIN No.:     ZAE000015228                                                      
Johannesburg, Monday 3 May 2004 - Harmony Gold Mining Company Limited           
(NYSE: HMY JSE: HAR) today reported that 96% of Avgold minority shareholders    
voted in favour of a scheme of arrangement whereby Harmony intends acquiring    
100% of Avgold"s issued share capital. In addition, Harmony announced more      
details on the restructuring of the Target hedge book.                          
"Target Mine is a low cost operator and should not be burdened by the adverse   
impact of a hedge book. Like all the previous hedge books we inherited through  
our acquisition activities, we undertook to deal with it as soon as possible,"  
commented Bernard Swanepoel,    Chief Executive.                                
The hedge book, consisting of approximately 515 000 ounces, had a negative mark 
to market value of R361 million as at 31 March 2004. The Rand gold portion of   
the hedge book was closed out in full at a cost of R20 million. Included in the 
mark to market value is an amount of R309 million attributable to forward       
exchange contracts entered into in June 2003. Currency call options have been   
sold to cover the residual forward exchange contracts that were calculated at a 
gold price of US$425,50/oz and an exchange rate of R6,36 to the US Dollar.      
Changes in the fair value of the forward exchange contracts due to exchange rate
movement, will be reflected in adjustments to the company"s income statement.   
"During the past quarter, this operation received a gold price which at R67     
425/kg, was 31% lower compared to the R88 277/kg received by Harmony. The       
restructuring of this hedge book leaves Target in an unhedged position with the 
ability to sell its gold freely on the spot market," concluded Bernard.         
Issued by Harmony Gold Mining Company Limited                                   
3 May 2004                                                                      
For more details contact:                                                       
Bernard Swanepoel                                                               
Chief Executive                                                                 
on +27(0)83 303 9922                                                            
Ferdi Dippenaar                                                                 
Marketing Director                                                              
on +27(0)82 807 3684                                                            
Investor Relations Officer                                                      
Corne Bobbert                                                                   
Tel +27 11 684 0146                                                             
Mobile +27(0)83 380 6614                                                        
Date: 03/05/2004 03:03:04 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

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