Go Back Email this Link to a friend

Harmony - Mid-quarter and Gold Fields bid update from Harmony

Release Date: 10/03/2005 16:30:00      Code(s): HAR
Harmony - Mid-quarter and Gold Fields bid update from Harmony                   
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
Share code: HAR     ISIN: ZAE000015228                                          
NEWS RELEASE FROM HARMONY GOLD                                                  
10 March 2005                                                                   
Mid-quarter and Gold Fields bid update from Harmony                             
At a media and analyst briefing held today, Harmony provided an update on both  
its operations and its bid for Gold Fields.                                     
CE Bernard Swanepoel"s presentation covered details of the Competent Person"s   
Report ("CPR") on the company"s reserves, the timetable for competition         
authority approval and progress on the Papua New Guinea Hidden Valley growth    
project and exploration portfolio following the allocation of its mining        
license. He also confirmed that Harmony would be extending its deadline for Gold
Fields shareholders to tender into its subsequent offer.                        
The CPR, now in the process of being filed with the JSE, shows that Harmony"s   
audited proven and probable reserves total 52,1 million ounces. Another 8,3     
million ounces of inferred reserves bring Harmony"s total to 60,4 million       
ounces, in line with the guidance given at the December quarterly results       
presentation and representing only a 3% difference between Harmony"s and SRK"s  
reserve estimates.                                                              
Swanepoel said that due to the December Christmas holiday, the current reporting
period was traditionally a slow quarter, much in line with what the local       
industry experiences every year. Harmony would also be testing its balance sheet
for any impairment charges under the new macroeconomic assumptions due to the   
`stronger-for-longer" South African Rand environment. Any such charges would be 
reported at the end of the March quarter.                                       
With regard to Harmony"s offers for Gold Fields, Swanepoel said the company"s   
expected closing date for the subsequent offer would be extended to 12 p.m.     
(South African time) on the 20th of May and that 128 910 Gold Fields shares had 
been tendered so far, in line with what is customary for a conditional offer.   
"We are extending the date to allow for as much flexibility as possible to      
accommodate the delay due to the process at the Competition Tribunal," said     
"Harmony"s balance sheet is strong and sustainable and our operations have been 
restructured to exist profitably with a strong Rand. We are currently building  
five growth projects in South Africa and have exciting projects that will be    
developed in Papua New Guinea.  We don"t need Gold Fields. We will not pursue   
this merger if it is not justifiable at the right price and on the right terms."
Swanepoel said the current ratio between the two company"s share prices was     
`crazy" and that any decisions about the offer would be taken solely with the   
best interests of Harmony and its shareholders in mind.                         
He said that despite the rumours floating around, the only certainty in the     
market remains Harmony"s offer to Gold Fields" shareholders.                    
Copies of this announcement and the update briefing presentation are available  
on Harmony"s transaction website (www.harmony.co.za)                            
Issued by (direct line, mobile, email):                                         
Harmony Gold                                                                    
Ferdi Dippenaar     +27 11 684 0140     +27 82 807 3684                         
Vusi Magadana       +27 11 684 0140     +27 72 157 5986                         
South Africa - Beachhead Media & Investor Relations                             
Jennifer Cohen      +27 11 214 2401     +27 82 468 6469   jennifer@bmsa.co.za   
Patrick Lawlor      +27 11 214 2410     +27 82 459 6709   patrick@bmsa.co.za    
United States - Financial Dynamics Business Communications                      
Hollis Rafkin-Sax   +1 212 850 5789     +1 917 509 0255   hrafkin-sax@fd-us.com 
Torie Pennington    +1 212 850 5629     +1 917 838 1369   tpennington@fd-us.com 
United Kingdom - Financial Dynamics Business Communications                     
Nic Bennett         +44 207 269 7115   +44 7979 536 619   nic.bennett@fd.com    
Charles Watenphul   +44 207 269 7216   +44 7866 438 013 charles.watenphul@fd.com
US Information Agent - MacKenzie Partners, Inc                                  
Daniel Burch        +212 929 5500                    proxy@mackenziepartners.com
Steve Balet         +800 322 2885                                               
Unless the context otherwise requires, the definitions contained in the offer   
document or the registration statement sent to Gold Fields shareholders have the
same meaning in this announcement.                                              
The directors of Harmony accept responsibility for the information contained in 
this announcement.  To the best of the knowledge and belief of the directors of 
Harmony (who have taken all reasonable care to ensure that such is the case),   
the information contained in this announcement is in accordance with the facts  
and does not omit anything likely to affect the import of such information.     
In connection with the proposed acquisition of Gold Fields, Harmony has filed a 
registration statement (File no: 333-120975) on Form F-4 (which was declared    
effective by the Securities and Exchange Commission ("SEC") on February 28,     
2005) and filed a final prospectus, dated February 25, 2005, with the SEC       
pursuant to Rule 424(b)(3) of the Securities Act of 1933, to register the       
Harmony ordinary shares (including Harmony ordinary shares represented by       
Harmony American Depositary Shares ("ADSs")) to be issued in exchange for Gold  
Fields ordinary shares held by Gold Fields shareholders located in the United   
States and for Gold Fields ADSs held by Gold Fields shareholders wherever       
located, as well as a Statement on Schedule TO. Investors and holders of Gold   
Fields securities are strongly advised to read the registration statement, the  
related exchange offer materials and the final prospectus,  the Statement on    
Schedule TO and any other relevant documents filed with the SEC, as well as any 
amendments and supplements to those documents, because they contain important   
information. Investors and holders of Gold Fields securities may obtain free    
copies of the registration statement, related exchange offer materials, the     
final prospectus and the Statement on Schedule TO, as well as other relevant    
documents filed or to be filed with the SEC, at the SEC"s web site at           
www.sec.gov. Investors and holders of Gold Fields securities will receive       
information at an appropriate time on how to obtain transaction-related         
documents for free from Harmony or its duly designated agent.  The final        
prospectus and other transaction-related documents may be obtained for free from
MacKenzie Partners, Inc., the information agent for the U.S. offer, at the      
following address: 105 Madison Avenue, New York, New York 10016; telephone 1    
(212) 929 5500 (call collect) or 1 (800) 322 2885 (toll-free call); e-mail      
This communication is for information purposes only. It shall not constitute an 
offer to purchase or exchange or the solicitation of an offer to sell or        
exchange any securities of Gold Fields or an offer to sell or exchange or the   
solicitation of an offer to buy or exchange any securities of Harmony, nor shall
there be any sale or exchange of securities in any jurisdiction in which such   
offer, solicitation or sale or exchange would be unlawful prior to the          
registration or qualification under the laws of such jurisdiction. The          
distribution of this communication may, in some countries, be restricted by law 
or regulation. Accordingly, persons who come into possession of this            
communication should inform themselves of and observe these restrictions. The   
solicitation of offers to buy Gold Fields ordinary shares (including Gold Fields
ordinary shares represented by Gold Fields ADSs) in the United States will only 
be made pursuant to a prospectus and related offer materials that Harmony has   
sent to holders of Gold Fields securities. The Harmony ordinary shares          
(including Harmony ordinary shares represented by Harmony ADSs) may not be sold,
nor may offers to buy be accepted, in the United States prior to the time the   
registration statement becomes effective. No offering of securities shall be    
made in the United States except by means of a prospectus meeting the           
requirements of Section 10 of the United States Securities Act of 1933, as      
Date: 10/03/2005 04:30:04 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2021 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.